EX-12.1 7 d598965dex121.htm EX-12.1

Exhibit 12.1

DDR Corp.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Amounts in Thousands)

|  | Year Ended December 31, |  |  | Quarter Ended March 31, |
|  | 2013 |  |  | 2014 |  |  | 2015 |  |  | 2016 |  |  | 2017 |  |  | 2017 |  |  | 2018 |
Pretax income (loss) from continuing operations |  | $ | 24,571 |  |  | $ | 26,022 |  |  | $ | (64,024 | ) |  | $ | 62,980 |  |  | $ | (230,714 | ) |  | $ | (53,805 | ) |  | $ | (53,915 | )
Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense including amortization of deferred costs and capitalized interest |  | $ | 242,614 |  |  | $ | 255,744 |  |  | $ | 248,399 |  |  | $ | 220,648 |  |  | $ | 190,526 |  |  | $ | 52,225 |  |  | $ | 44,363 |
Appropriate portion of rentals representative of the interest factor |  |  | 1,338 |  |  |  | 1,278 |  |  |  | 1,151 |  |  |  | 943 |  |  |  | 740 |  |  |  | 125 |  |  |  | 205 |
Total fixed charges |  | $ | 243,952 |  |  | $ | 257,022 |  |  | $ | 249,550 |  |  | $ | 221,591 |  |  | $ | 191,266 |  |  | $ | 52,350 |  |  | $ | 44,568 |
Capitalized interest during the period |  |  | (8,789 | ) |  |  | (8,678 | ) |  |  | (6,672 | ) |  |  | (3,059 | ) |  |  | (1,879 | ) |  |  | (398 | ) |  |  | (323 | )
Amortization of capitalized interest during the period |  |  | 9,015 |  |  |  | 9,304 |  |  |  | 9,526 |  |  |  | 9,628 |  |  |  | 9,691 |  |  |  | 2,410 |  |  |  | 2,426 |
Equity Company Adjustments |  |  | (6,819 | ) |  |  | (10,989 | ) |  |  | 3,135 |  |  |  | (15,699 | ) |  |  | (8,837 | ) |  |  | 1,665 |  |  |  | (8,786 | )
Equity Company Adjustments Distributed Income |  |  | 15,116 |  |  |  | 10,749 |  |  |  | 8,382 |  |  |  | 8,210 |  |  |  | 7,413 |  |  |  | 1,806 |  |  |  | 1,786 |
Earnings (loss) before income taxes and fixed charges |  | $ | 277,046 |  |  | $ | 283,430 |  |  | $ | 199,897 |  |  | $ | 283,651 |  |  | $ | (33,060 | ) |  | $ | 4,028 |  |  | $ | (14,244 | )
Ratio of earnings (loss) to fixed charges |  |  | 1.1 |  |  |  | 1.1 |  |  |  | (a) |  |  |  | 1.3 |  |  |  | (b) |  |  |  | (c) |  |  |  | (d) |

(a) | 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 $49.7 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, 2017.

(b) | Due to the pretax loss from continuing operations for the year ended December 31, 2017, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $224.3 million to achieve a coverage of 1:1. The pretax loss from continuing operations for the year ended December 31, 2017 includes consolidated impairment charges of $345.6 million and a reserve of preferred equity interests of $61.0 million, which together aggregated $406.6 million that are discussed in our Annual Report on Form 10-K for the year ended December 31, 2017.

(c) | Due to the pretax loss from continuing operations for the quarter ended March 31, 2017, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $48.3 million to achieve a coverage of 1:1. The pretax loss from continuing operations for the quarter ended March 31, 2017, includes consolidated impairment charges of $22.0 million and a reserve of preferred equity interests of $76.0 million, which together aggregated $98.0 million that are discussed in our Quarterly Report on Form 10-Q for the three months ended March 31, 2018.

(d) | Due to the pretax loss from continuing operations for the quarter ended March 31, 2018, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $58.8 million to achieve a coverage of 1:1. The pretax loss from continuing operations for the quarter ended March 31, 2018, includes consolidated impairment charges of $30.4 million, a reserve of preferred equity interests of $4.0 million and debt extinguishment costs of $56.4 million, which together aggregated $90.8 million that are discussed in our Quarterly Report on Form 10-Q for the three months ended March 31, 2018.