EX-12.2 3 d434687dex122.htm EX-12.2 EX-12.2

Exhibit 12.2

DDR Corp.

COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS

(Amounts in Thousands)

 

     Year Ended December 31,     Six Months Ended June 30,  
     2012     2013     2014     2015     2016     2016     2017  

Pretax income (loss) from continuing operations

    $ 35,166     $ 24,571     $ 26,022     $ (64,024 )    $ 62,980     $ 87,944     $ (23,454 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

               

Interest expense including amortization of deferred costs and capitalized interest

    $ 236,716     $ 242,614     $ 255,744     $ 248,399     $ 220,648     $ 113,856     $ 101,611  

Appropriate portion of rentals representative of the interest factor

      1,405       1,338       1,278       1,151       943       578       330  

Write-off of preferred share original issuance costs

      5,804       5,246       1,943       —         —         —         —    

Preferred Dividends

      28,645       27,721       24,054       22,375       22,375       11,188       11,993  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

    $ 272,570     $ 276,919     $ 283,019     $ 271,925     $ 243,966     $ 125,622     $ 113,934  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Capitalized interest during the period

    $ (13,327 )    $ (8,789 )    $ (8,678 )    $ (6,672 )    $ (3,059 )    $ (1,947 )    $ (876 ) 

Write-off of preferred share original issuance costs

      (5,804 )      (5,246 )      (1,943 )      —         —         —         —    

Preferred Dividends

      (28,645 )      (27,721 )      (24,054 )      (22,375 )      (22,375 )      (11,188 )      (11,993 ) 

Amortization of capitalized interest during the period

      8,722       9,015       9,304       9,526       9,628       4,795       4,829  

Equity Company Adjustments

      (35,250 )      (6,819 )      (10,989 )      3,135       (15,699 )      (15,538 )      2,382  

Equity Company Adjustments Distributed Income

      13,165       15,116       10,749       8,382       8,210       3,779       3,446  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings before income taxes and fixed charges

    $ 246,597     $ 277,046     $ 283,430     $ 199,897     $ 283,651     $ 193,467     $ 88,268  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to combined fixed charges and preferred dividends

      (a )      1.0       1.0       (b )      1.2       1.5       (c ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) For the year ended December 31, 2012, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $26.0 million to achieve a coverage of 1:1. The pretax income from continuing operations for the year ended December 31, 2012, includes consolidated impairment charges of $46.7 million and impairment charges of joint venture investments of $26.7 million, which together aggregated $73.4 million.
(b) Due to the pretax loss from continuing operations for the year ended December 31, 2015, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $72.0 million to achieve a coverage of 1:1. The pretax loss from

continuing operations for the year ended December 31, 2015, includes consolidated impairment charges of $279.0 million and impairment charges of joint venture investments of $1.9 million, which together aggregated $280.9 million that are discussed in our Annual Report on Form 10-K for the year ended December 31, 2016.

(c) Due to the pretax loss from continuing operations for the six months ended June 30, 2017, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $25.7 million to achieve a coverage of 1:1. The pretax loss from continuing operations for the six months ended June 30, 2017, includes consolidated impairment charges of $50.1 million and a reserve of preferred equity interests of $76.0 million, which together aggregated $126.1 million that are discussed in our Quarterly Report on Form 10-Q for the six months ended June 30, 2017.