EX-12.1 4 exhibit121630201810-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,
|  | 2018 |  | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013
Earnings: |  |  |  |  |  |  |  |  |  |  |  |
Income before equity in income from joint ventures and other items (1) |  | $ | 122,345 |  |  | $ | 223,353 |  |  | $ | 219,601 |  |  | $ | 170,017 |  |  | $ | 177,278 |  |  | $ | 152,193 |
Fixed charges |  | 73,280 |  |  | 143,532 |  |  | 108,068 |  |  | 98,672 |  |  | 88,996 |  |  | 83,988 |
Distributions from equity investments |  | 567 |  |  | 442 |  |  | 816 |  |  | 540 |  |  | 810 |  |  | 985 |
Capitalized interest |  | (4,538 | ) |  | (9,879 | ) |  | (10,697 | ) |  | (18,547 | ) |  | (7,525 | ) |  | (2,763 | )
Adjusted Earnings |  | $ | 191,654 |  |  | $ | 357,448 |  |  | $ | 317,788 |  |  | $ | 250,682 |  |  | $ | 259,559 |  |  | $ | 234,403 |
Fixed Charges: |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net (including amortization of deferred financing fees) |  | $ | 68,416 |  |  | $ | 133,124 |  |  | $ | 97,144 |  |  | $ | 79,915 |  |  | $ | 81,270 |  |  | $ | 81,056 |
Interest within rental expense (2) |  | 166 |  |  | 337 |  |  | 227 |  |  | 185 |  |  | 174 |  |  | 145 |
Interest income |  | 160 |  |  | 192 |  |  | — |  |  | 25 |  |  | 27 |  |  | 24 |
Capitalized interest |  | 4,538 |  |  | 9,879 |  |  | 10,697 |  |  | 18,547 |  |  | 7,525 |  |  | 2,763 |
Total Fixed Charges |  | $ | 73,280 |  |  | $ | 143,532 |  |  | $ | 108,068 |  |  | $ | 98,672 |  |  | $ | 88,996 |  |  | $ | 83,988 |
Ratio of Earnings to Fixed Charges |  | 2.6 | x |  | 2.5 | x |  | 2.9 | x |  | 2.5 | x |  | 2.9 | x |  | 2.8 | x

(1) | Earnings before equity in income from joint ventures for the six months ended June 30, 2018 includes $16.5 million in impairment charges and $32.0 million in costs associated with loan refinancing or payoff. Earnings before equity in income from joint ventures for the year ended December 31, 2017 includes $10.2 million in impairment charges, $1.5 million in costs associated with loan refinancing or payoff, 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.
(2) | Interest within rental expense represents one-third of rental expense (the approximate portion of rental expense representing interest).