EX-12.1 7 d598965dex121.htm EX-12.1 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.