EX-12.1 4 rpai-20161231xex121.htm EXHIBIT 12.1 Exhibit
Exhibit 12.1

Retail Properties of America, Inc.
Computation of Ratio of Earnings to Fixed Charges
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends


 
Year Ended December 31,
 
2016
 
2015
 
2014
 
2013
 
2012
Earnings
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
$
37,110

 
$
3,832

 
$
597

 
$
(42,855
)
 
$
(14,368
)
Equity in loss of unconsolidated joint ventures, net
—

 
—

 
2,088

 
1,246

 
6,307

Gain on sales of investment properties, net
129,707

 
121,792

 
42,196

 
5,806

 
7,843

Adjustments added:
 
 
 
 
 
 
 
 
 
Fixed charges (see below)
113,539

 
142,987

 
137,944

 
150,685

 
178,306

Distributions on investments in unconsolidated joint ventures
—

 
—

 
1,360

 
7,105

 
6,168

Adjustments subtracted:
 
 
 
 
 
 
 
 
 
Interest capitalized
(69
)
 
—

 
—

 
—

 
—

Total earnings
$
280,287

 
$
268,611

 
$
184,185

 
$
121,987

 
$
184,256

 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense
$
109,730

 
$
138,938

 
$
133,835

 
$
146,805

 
$
171,295

Co-venture obligation expense (1)
—

 
—

 
—

 
—

 
3,300

Interest capitalized
69

 
—

 
—

 
—

 
—

Estimate of interest within rental expense
3,740

 
4,049

 
4,109

 
3,880

 
3,711

Total fixed charges
$
113,539

 
$
142,987

 
$
137,944

 
$
150,685

 
$
178,306

 
 
 
 
 
 
 
 
 
 
Preferred stock dividends
9,450

 
9,450

 
9,450

 
9,450

 
263

Total fixed charges and preferred stock dividends
$
122,989

 
$
152,437

 
$
147,394

 
$
160,135

 
$
178,569

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
2.47
 
1.88
 
1.34
 
—

(2)
1.03
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to combined fixed charges and preferred stock dividends
2.28
 
1.76
 
1.25
 
—

(3)
1.03


(1)
Represents the preferred return and incentive and other compensation with respect to IW JV 2009, LLC. The Company redeemed the full amount of the noncontrolling interest on April 26, 2012.
(2)
The ratio was less than 1:1 for the year ended December 31, 2013 as earnings were inadequate to cover fixed charges by a deficiency of approximately $28.7 million.
(3)
The ratio was less than 1:1 for the year ended December 31, 2013 as earnings were inadequate to cover fixed charges by a deficiency of approximately $38.1 million.