Exhibit 12.1
POST PROPERTIES, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
(Dollars in thousands)
| Nine Months Ended September 30, 2009(1) |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2008(1) | 2007(1) | 2006(1) | 2005(1) | 2004(1) | ||||||||||||||||||||||||||||||||
| Earnings: |
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| Income (loss) from continuing operations |
$ | (86,796 | ) | $ | (95,823 | ) | $ | 103,845 | $ | 19,788 | $ | (14,665 | ) | $ | (48,935 | ) | ||||||||||||||||||||
| Minority interest in Post Apartment Homes, L.P. (2) |
- | (719 | ) | 1,347 | 235 | (1,177 | ) | (342 | ) | |||||||||||||||||||||||||||
| Minority interest in consolidated property partnerships |
- | 395 | 1,857 | 257 | (239 | ) | (671 | ) | ||||||||||||||||||||||||||||
| Equity in loss (income) of unconsolidated entities |
74,577 | (1,224 | ) | (1,556 | ) | (1,813 | ) | (1,767 | ) | (1,083 | ) | |||||||||||||||||||||||||
| Income (loss) from continuing operations before minority interest and equity in loss (income) of unconsolidated entities |
(12,219 | ) | (97,371 | ) | 105,493 | 18,467 | (17,848 | ) | (51,031 | ) | ||||||||||||||||||||||||||
| Add: |
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| Distribution of income from investments in unconsolidated entities |
1,325 | 2,650 | 2,554 | 2,713 | 2,033 | 1,928 | ||||||||||||||||||||||||||||||
| Fixed charges, less preferred distribution requirement of consolidated subsidiaries |
53,106 | 69,774 | 69,854 | 71,199 | 69,641 | 85,690 | ||||||||||||||||||||||||||||||
| Deduct: |
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| Capitalized interest |
(9,780 | ) | (12,406 | ) | (11,801 | ) | (9,942 | ) | (2,907 | ) | (1,078 | ) | ||||||||||||||||||||||||
| Minority interest in income of consolidated property partnerships not incurring fixed charges |
- | (130 | ) | (1,603 | ) | - | - | - | ||||||||||||||||||||||||||||
| Total Earnings ( A ) |
$ | 32,432 | $ | (37,483 | ) | $ | 164,497 | $ | 82,437 | $ | 50,919 | $ | 35,509 | |||||||||||||||||||||||
| Fixed charges and preferred dividends: |
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| Interest expense (3) |
$ | 40,174 | $ | 52,779 | $ | 53,633 | $ | 56,721 | $ | 61,059 | $ | 69,084 | ||||||||||||||||||||||||
| Termination of debt remarketing agreement (interest expense) (4) |
- | - | - | - | - | 10,615 | ||||||||||||||||||||||||||||||
| Amortization of deferred financing costs |
2,342 | 3,473 | 3,297 | 3,526 | 4,661 | 4,304 | ||||||||||||||||||||||||||||||
| Capitalized interest |
9,780 | 12,406 | 11,801 | 9,942 | 2,907 | 1,078 | ||||||||||||||||||||||||||||||
| Preferred distribution requirements of consolidated subsidiaries, including redemption costs |
- | - | - | - | - | 5,590 | ||||||||||||||||||||||||||||||
| Rentals (5) |
810 | 1,116 | 1,123 | 1,010 | 1,014 | 609 | ||||||||||||||||||||||||||||||
| Total Fixed Charges ( B ) |
$ | 53,106 | $ | 69,774 | $ | 69,854 | $ | 71,199 | $ | 69,641 | $ | 91,280 | ||||||||||||||||||||||||
| Preferred dividends, including redemption costs |
5,728 | 7,637 | 7,637 | 7,637 | 7,637 | 10,041 | ||||||||||||||||||||||||||||||
| Total Fixed Charges and Stock Dividends (C) |
$ | 58,834 | $ | 77,411 | $ | 77,491 | $ | 78,836 | $ | 77,278 | $ | 101,321 | ||||||||||||||||||||||||
| Ratio of Earnings to Fixed Charges ( A / B ) |
0.6 | x | (6) | (0.5 | ) x | (6) | 2.4 | x | 1.2 | x | 0.7 | x | (6) | 0.4 | x | (6) | ||||||||||||||||||||
| Ratio of Earnings to Fixed Charges and Preferred Dividends ( A / C ) |
0.6 | x | (6) | (0.5 | ) x | (6) | 2.1 | x | 1.0 | x | 0.7 | x | (6) | 0.4 | x | (6) | ||||||||||||||||||||
| (1) | Post Properties, Inc. adopted new guidance in ASC Topic 810 (previously SFAS 160) on January 1, 2009. The information in the table above for the years prior to adoption of the new guidance has not been restated. The retrospective adoption of the new guidance would not have a material impact on the Ratio of Earnings to Fixed Charges or the Ratio of Earnings to Fixed Charges and Preferred Distributions for the prior years presented above. |
| (2) | Post Properties, Inc., through its wholly owned subsidiaries, is the general partner and owns a majority interest in the Operating Partnership which, through its subsidiaries, conducts substantially all of its on-going operations. |
| (3) | Interest expense includes interest expense of continuing and discontinued operations. |
| (4) | In 2004, the Company terminated a remarketing agreement related to its $100,000, 6.85% Mandatory Par Put Remarketed Securities due in 2015. In connection with the termination of the remarketing agreement, Post Apartment Homes, L.P. paid $10,615 (interest expense), including transaction expenses. Under the provisions of the remarketing agreement, the remarketing agent had the right to remarket the $100,000, unsecured notes in 2005 for a ten-year term at an interest rate calculated as 5.715% plus Post Apartment Homes, L.P.’s then current credit spread to the ten-year treasury rate. Post Apartment Homes, L.P. re-paid these unsecured notes in 2005. |
| (5) | For the nine months ended September 30, 2009 and for the years ended December 31, 2008, 2007, 2006, 2005 and 2004, the interest factor of rental expense is calculated as one-third of rental expense. Post Properties, Inc. believes these represent appropriate interest factors. |
| (6) | Post Properties, Inc. would need additional earnings of $20,674 for the nine months ended September 30, 2009 and $107,257, $18,722 and $55,771 for the years ended December 31, 2008, 2005 and 2004, respectively, for the Ratio of Earnings to Fixed Charges to equal 1.0. Post Properties, Inc. would need additional earnings of $26,402 for the nine months ended September 30, 2009 and $114,894, $26,359 and $65,812 for the years ended December 31, 2008, 2005 and 2004, respectively, for the Ratio of Earnings to Fixed Charges and Preferred Dividends to equal 1.0. |