EX-12.2 8 exhibit122930201510-q.htm EXHIBIT 12.2
EXHIBIT 12.2
EPR PROPERTIES
COMPUTATION OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS
(Dollars in thousands)

|  | Nine Months Ended September 30, |  | Year Ended December 31,
|  | 2015 |  | 2014 |  | 2013 |  | 2012 |  | 2011 |  | 2010
Earnings: |  |  |  |  |  |  |  |  |  |  |  |
Income before equity in income from joint ventures and other items (1) |  | $ | 118,471 |  |  | $ | 177,278 |  |  | $ | 152,193 |  |  | $ | 140,881 |  |  | $ | 127,241 |  |  | $ | 114,793 |
Fixed charges before preferred dividends |  | 73,551 |  |  | 88,996 |  |  | 83,988 |  |  | 77,738 |  |  | 71,980 |  |  | 69,018 |
Distributions from equity investments |  | — |  |  | 810 |  |  | 985 |  |  | 1,046 |  |  | 2,848 |  |  | 2,482 |
Capitalized interest |  | (14,265 | ) |  | (7,525 | ) |  | (2,763 | ) |  | (859 | ) |  | (498 | ) |  | (383 | )
Adjusted Earnings |  | $ | 177,757 |  |  | $ | 259,559 |  |  | $ | 234,403 |  |  | $ | 218,806 |  |  | $ | 201,571 |  |  | $ | 185,910 |
Fixed Charges: |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net (including amortization of deferred financing fees) |  | $ | 59,123 |  |  | $ | 81,270 |  |  | $ | 81,056 |  |  | $ | 76,656 |  |  | $ | 71,295 |  |  | $ | 68,462 |
Interest within rental expense (2) |  | 139 |  |  | 174 |  |  | 145 |  |  | 156 |  |  | 154 |  |  | 136 |
Interest income |  | 24 |  |  | 27 |  |  | 24 |  |  | 67 |  |  | 33 |  |  | 37 |
Capitalized interest |  | 14,265 |  |  | 7,525 |  |  | 2,763 |  |  | 859 |  |  | 498 |  |  | 383 |
Preferred dividends |  | 17,855 |  |  | 23,807 |  |  | 23,806 |  |  | 24,508 |  |  | 28,140 |  |  | 30,206 |
Combined Fixed Charges and Preferred Dividends |  | $ | 91,406 |  |  | $ | 112,803 |  |  | $ | 107,794 |  |  | $ | 102,246 |  |  | $ | 100,120 |  |  | $ | 99,224 |
Ratio of Earnings to Combined Fixed Charges and Preferred Dividends |  | 1.9 | x |  | 2.3 | x |  | 2.2 | x |  | 2.1 | x |  | 2.0 | x |  | 1.9 | x

(1) | E arnings before equity in income in joint ventures and other items for the nine months ended September 30, 2015 includes $18.6 million of retirement severance expense. Earnings before equity in income from joint ventures and other items for the year ended December 31, 2014 includes $3.8 million in provision for loan losses and $0.3 million in costs associated with loan payoff. Earnings before equity in income from joint ventures and other items for the year ended December 31, 2013 includes $6.2 million in costs associated with loan refinancing and a $4.5 million gain on early extinguishment of debt. Earnings before equity in income from joint ventures and other items for the year ended December 31, 2012 includes $3.1 million in impairment c harges for properties held and used and $0.6 million in costs associated with loan refinancing. Earnings before equity in income from joint ventures and other items for the year ended December 31, 2011 includes $2.5 million in impairment charges for properties held and used and $1.9 million in costs associated with loan refinancing. Earnings before equity in income from joint ventures and other items for the year ended December 31, 2010 includes a $0.5 million impairment charge for other assets, $0.7 million in provision for loan losses and $11.4 million in costs associated with loan refinancing.
(2) | Interest within rental expense represents one-third of rental expense (the approximate portion of rental expense representing interest).