EX-12.1 3 exhibit121630201710-q.htm EXHIBIT 12.1
EXHIBIT 12.1
EPR PROPERTIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)

|  | Six Months Ended June 30, |  | Year Ended December 31,
|  | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013 |  | 2012
Earnings: |  |  |  |  |  |  |  |  |  |  |  |
Income before equity in income from joint ventures and other items (1) |  | $ | 108,364 |  |  | $ | 219,601 |  |  | $ | 170,017 |  |  | $ | 177,278 |  |  | $ | 152,193 |  |  | $ | 140,881 |
Fixed charges |  | 69,252 |  |  | 108,068 |  |  | 98,672 |  |  | 88,996 |  |  | 83,988 |  |  | 77,738 |
Distributions from equity investments |  | 442 |  |  | 816 |  |  | 540 |  |  | 810 |  |  | 985 |  |  | 1,046 |
Capitalized interest |  | (5,341 | ) |  | (10,697 | ) |  | (18,547 | ) |  | (7,525 | ) |  | (2,763 | ) |  | (859 | )
Adjusted Earnings |  | $ | 172,717 |  |  | $ | 317,788 |  |  | $ | 250,682 |  |  | $ | 259,559 |  |  | $ | 234,403 |  |  | $ | 218,806 |
Fixed Charges: |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net (including amortization of deferred financing fees) |  | $ | 63,659 |  |  | $ | 97,144 |  |  | $ | 79,915 |  |  | $ | 81,270 |  |  | $ | 81,056 |  |  | $ | 76,656 |
Interest within rental expense (2) |  | 170 |  |  | 227 |  |  | 185 |  |  | 174 |  |  | 145 |  |  | 156 |
Interest income |  | 82 |  |  | — |  |  | 25 |  |  | 27 |  |  | 24 |  |  | 67 |
Capitalized interest |  | 5,341 |  |  | 10,697 |  |  | 18,547 |  |  | 7,525 |  |  | 2,763 |  |  | 859 |
Total Fixed Charges |  | $ | 69,252 |  |  | $ | 108,068 |  |  | $ | 98,672 |  |  | $ | 88,996 |  |  | $ | 83,988 |  |  | $ | 77,738 |
Ratio of Earnings to Fixed Charges |  | 2.5 | x |  | 2.9 | x |  | 2.5 | x |  | 2.9 | x |  | 2.8 | x |  | 2.8 | x

(1) | Earnings before equity in income from joint ventures for the six months ended June 30, 2017 includes $10.2 million in impairment charges and a $1.0 million gain on early extinguishment of debt. Earnings before equity in income from joint ventures for the year ended December 31, 2016 includes $0.9 million in costs associated with loan refinancing or payoff. Earnings before equity in income from joint ventures and other items for the year ended December 31, 2015 includes $18.6 million of retirement severance expense and $0.3 million in costs associated with loan refinancing or payoff. 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 refinancing or 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 or payoff 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 charges for properties held and used and $0.6 million in costs associated with loan refinancing or payoff.
(2) | Interest within rental expense represents one-third of rental expense (the approximate portion of rental expense representing interest).