EX-12.1 4 a2q17form10-qexx121ratioof.htm EXHIBIT 12.1
Exhibit 12.1
DYNEX CAPITAL, INC.
Ratio of Earnings to Fixed Charges and
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

| Six Months Ended June 30, 2017 |  | Year Ended December 31,
(Amounts in thousands, except ratios) | 2016 |  | 2015 |  | 2014 |  | 2013 |  | 2012
Fixed charges: |  |  |  |  |  |  |  |  |  |  |
Interest expense | $ | 16,233 |  |  | $ | 25,231 |  |  | $ | 22,605 |  |  | $ | 25,915 |  |  | $ | 39,028 |  |  | $ | 35,147 |
Preferred dividend requirements | 5,077 |  |  | 9,185 |  |  | 9,176 |  |  | 9,176 |  |  | 7,902 |  |  | 2,036 |
Total | $ | 21,310 |  |  | $ | 34,416 |  |  | $ | 31,781 |  |  | $ | 35,091 |  |  | $ | 46,930 |  |  | $ | 37,183 |
Earnings: |  |  |  |  |  |  |  |  |  |  |
Income from continuing operations | $ | 1,619 |  |  | $ | 43,099 |  |  | $ | 16,544 |  |  | $ | 27,806 |  |  | $ | 68,069 |  |  | $ | 74,042 |
Add: |  |  |  |  |  |  |  |  |  |  |
Distributed income of equity method investee | — |  |  | 1,316 |  |  | — |  |  | — |  |  | 721 |  |  | — |
Fixed charges, excluding preferred dividend requirements | 16,233 |  |  | 25,231 |  |  | 22,605 |  |  | 25,915 |  |  | 39,028 |  |  | 35,147 |
Less: Equity in income of equity investee | — |  |  | (481 | ) |  | (835 | ) |  | — |  |  | (721 | ) |  | — |
Total | $ | 17,852 |  |  | $ | 69,165 |  |  | $ | 38,314 |  |  | $ | 53,721 |  |  | $ | 107,097 |  |  | $ | 109,189 |
Ratio of earnings to fixed charges | 1.10x |  | 2.74x |  | 1.69x |  | 2.07x |  | 2.74x |  | 3.11x
Ratio of earnings to fixed charges and preferred stock dividends | (a) |  | 2.01x |  | 1.21x |  | 1.53x |  | 2.28x |  | 2.94x

(a) | Earnings for the six-month period ended June 30, 2017 were insufficient to cover combined fixed charges and preferred dividends by approximately $3.5 million.