AMB Property Corporation(R) , a leading global developer and owner of industrial real estate, today reported results for the fourth quarter and full year 2007.

Funds from operations per fully diluted share and unit ("FFOPS") was $1.20 for the fourth quarter of 2007, an increase of 18.8% from $1.01 for the same quarter in 2006. FFOPS for the full year 2007 increased 12.5% to $3.51, from $3.12 for 2006.

Net income available to common stockholders per fully diluted share ("EPS") was $0.92 for the fourth quarter of 2007, as compared to $0.91 for the same quarter in 2006. EPS for the full year 2007 was $2.96, as compared to $2.30 for 2006.

Owned and Managed Portfolio Operating Results

AMB's operating portfolio was 96.0% occupied at December 31, 2007. The average occupancy rate for the quarter was 95.6%, up 20 basis points from the prior quarter and up 30 basis points from the fourth quarter of 2006. Benefiting from rising rents and occupancy gains, cash basis same store net operating income, excluding lease termination fees, increased 4.8% in the fourth quarter and 5.5% for the full year, over the same periods in 2006. For the trailing four quarters ended December 31, 2007, average rents on lease renewals and rollovers in AMB's operating portfolio increased 4.9%, following an average increase of 4.4% for the trailing four quarters ended September 30, 2007.

"AMB had an excellent year in 2007 with financial results coming in at the high end of our previous guidance. Given the current environment, our property portfolio's operating performance was especially notable with high occupancy levels and the sixth consecutive quarter of rent increases. Efforts over the past five years to reposition our holdings and focus on major markets tied to global trade will provide us with an important point of differentiation and competitive advantage going forward," said Hamid R. Moghadam, AMB's chairman & CEO. "Importantly, our global customers indicate that the expansion and reconfiguration of the global supply chain should continue to support steady demand, especially for highly-functional and strategically-located facilities in European and Asian markets where trade volumes continue to grow at double-digit paces. With our investment focus on infill locations in the best hub and gateway markets globally, we feel very good about our business prospects for 2008 and beyond."

Investment Activity

During the quarter, the company commenced development on $396 million of industrial distribution space in the Americas, Europe and Asia. Development starts for the full year 2007 totaled $1.1 billion, a 19% increase over development starts in 2006. At year end, AMB's development pipeline comprised approximately 17.8 million square feet globally, with an estimated total investment of $1.7 billion scheduled for delivery through 2009.

The company's development business includes contributions of stabilized projects to affiliated private capital funds and sales of projects or land to third parties. During the quarter, AMB contributed or sold five projects, including contributions to two of its private capital co-investment ventures. During the quarter, the company also sold 106 acres of land. The aggregate sales price for development contributions and sales totaled $245 million for the quarter and $730 million for the full year 2007.

AMB acquired $289 million of industrial properties during the quarter, expanding its presence in several markets in the Americas and Europe. As previously announced, the company entered the United Kingdom during the quarter with the acquisition of a development property located in the greater London area. Acquisitions for the full year 2007 totaled more than $1.0 billion globally, a 25% increase over 2006.

Private Capital

At year end, the company's private capital business had $7.2 billion in assets under management and $2.6 billion of uncommitted investment capacity. During the year, the company announced the formation of AMB Europe Fund I, a Euro-denominated open-end commingled fund that by year end had grown to $1.1 billion of gross book value. "Demand from our institutional clients to invest with partners who demonstrate solid track records of performance remains healthy, as the successful launch of our Europe fund highlights," noted Mr. Moghadam. "AMB's experience investing with private capital now spans more than two decades. Over that time, we have delivered an unleveraged return that has outperformed our benchmark index, the NPI Industrial, by 245 basis points." AMB Institutional Alliance Fund III, the company's U.S. open-end fund launched in 2004, had $2.0 billion of gross book value at year end, with $50 million of third party equity raised in the fourth quarter of 2007 and another $50 million raised subsequent to quarter end.

2008 FFO Guidance

The company confirms its previous full year 2008 FFO guidance of $3.85 to $4.05 per share. Full year 2008 EPS guidance is $2.80 to $3.00 per share.

Additions and Promotions of Company Officers

During the quarter, Tarjindar Singh joined the company as vice president, general manager for the company's real estate activities in India. Also during the quarter, the company announced the following officer promotions: Henk Folmer has been promoted to senior vice president, customer development, Europe and Mark Hansen has been promoted to senior vice president in charge of the company's value-added conversion business. Janet Frentzel, Joop Groenveld, Keiichi Komamura, Steve Kros, Dan Letter, Tom Stuart, Thurai Thavasikkannu and Carlos Valdivia have been promoted to vice president.

Commenting on this addition and promotions, Mr. Moghadam said, "It's a pleasure to welcome Tarjindar Singh to AMB and a distinct honor to acknowledge the achievements of our recently promoted officers. Each demonstrates the kind of leadership and commitment to excellence that continuously drives AMB to new levels of success. I am grateful for their contributions."

Supplemental Earnings Measures

Included in the footnotes to the company's attached financial statements is a discussion of why management believes FFOPS is a useful supplemental measure of operating performance, ways in which investors might use FFOPS when assessing the company's financial performance and FFOPS's limitations as a measurement tool. Reconciliation from net income to funds from operations and FFOPS is provided in the attached tables and published in the company's quarterly supplemental analyst package, available on the company's website at

The company believes that net income, as defined by GAAP, is the most appropriate earnings measure. However, the company considers cash-basis same store net operating income (SSNOI) to be a useful supplemental measure of its operating performance. Properties that are considered part of the same store pool include all properties that were owned as of the end of both the current and prior year reporting periods and exclude development properties for both the current and prior reporting periods. The same store pool is set annually and excludes properties purchased and developments stabilized after December 31, 2005. In deriving SSNOI, the company defines NOI as rental revenues (as calculated in accordance with GAAP), including reimbursements, less straight-line rents, amortization of lease intangibles, and property operating expenses, which excludes depreciation, amortization, general and administrative expenses and interest expense. The company considers SSNOI to be an appropriate and useful supplemental performance measure because it reflects the operating performance of the real estate portfolio excluding effects of non-cash adjustments and provides a better measure of actual cash basis rental growth for a year-over-year comparison. In addition, the company believes that SSNOI helps the investing public compare the company's operating performance with that of other companies. While SSNOI is a relevant and widely used measure of operating performance of real estate investment trusts, it does not represent cash flow from operations or net income as defined by GAAP and should not be considered as an alternative to those measures in evaluating the company's liquidity or operating performance. SSNOI also does not reflect general and administrative expenses, interest expense, depreciation and amortization costs, capital expenditures and leasing costs, or trends in development and construction activities that could materially impact its results from operations. Further, the company's computation of SSNOI may not be comparable to that of other real estate companies, as they may use different methodologies for calculating SSNOI. Reconciliation from net income to SSNOI is published in the company's quarterly supplemental analyst package, available on the company's website at

"Owned and managed" is defined by the company as assets in which the company has at least a 10% ownership interest, is the property or asset manager, and which it intends to hold for the long-term.

Conference Call and Supplemental Information

The company will host a conference call to discuss the quarterly and full year results on Tuesday, January 29, 2008 at 1:00 PM EST. Stockholders and interested parties may listen to a live broadcast of the conference call by dialing 877 447 8218 (from the U.S. and Canada) or +1 706 643 7823 (from all other countries) and using reservation code 30039767. A webcast can be accessed through a link titled "Q4 2007 Earnings Conference Call" located on the home page of the company's website at

If you are unable to listen to the live conference call, a telephone and webcast replay will be available after 3:00 PM EST on Tuesday, January 29, 2008 until 8:00 PM EST on Friday, February 29, 2008. The telephone replay can be accessed by dialing 800 642 1687 (from the U.S. and Canada) or +1 706 645 9291 (from all other countries) and using reservation code 30039767. The webcast replay can be accessed through the link on the company's website at

AMB Property Corporation.(R) Local partner to global trade.(TM)

AMB Property Corporation(R) is a leading global developer and owner of industrial real estate, focused on major hub and gateway distribution markets in the Americas, Europe and Asia. As of December 31, 2007, AMB owned, or had investments in, on a consolidated basis or through unconsolidated joint ventures, properties and development projects expected to total approximately 147.7 million square feet (13.7 million square meters) in 45 markets within 14 countries. AMB invests in properties located predominantly in the infill submarkets of its targeted markets. The company's portfolio is comprised of High Throughput Distribution(R) facilities -- industrial properties built for speed and located near airports, seaports and ground transportation systems.

AMB's press releases are available on the company website at or by contacting the Investor Relations department at +1 415 394 9000.

Some of the information included in this press release contains forward-looking statements, such as those related to demand for our product, occupancy levels, rental rate growth, trade volume growth, future competitive advantages, increasing valuations, our development, value-added conversion, redevelopment and renovation projects (including completion, timing of stabilization, our ability to lease such projects, square feet at stabilization or completion, costs and total investment amounts, and projected gains), our ability to grow our private capital business (including contributions to such funds), returns on invested capital and source of investment opportunities, and our ability to accomplish future business plans (such as expansion into additional markets and of our platform generally) and to meet our forecasts and business goals, which are made pursuant to the safe-harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results to differ materially from those in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future events. The events or circumstances reflected in forward-looking statements might not occur. You can identify forward-looking statements by the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," "seeks," "approximately," "intends," "plans," "pro forma," "estimates" or "anticipates" or the negative of these words and phrases or similar words or phrases. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements are necessarily dependent on assumptions, data or methods that may be incorrect or imprecise and we may not be able to realize them. We caution you not to place undue reliance on forward-looking statements, which reflect our analysis only and speak only as of the date of this press release or the dates indicated in the statements. We assume no obligation to update or supplement forward-looking statements. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: defaults on or non-renewal of leases by tenants, increased interest rates and operating costs, our failure to obtain necessary outside financing, re-financing risks, risks related to our obligations in the event of certain defaults under joint venture and other debt, risks related to debt and equity security financings (including dilution risk), difficulties in identifying properties to acquire and in effecting acquisitions, our failure to successfully integrate acquired properties and operations, our failure to divest properties we have contracted to sell or to timely reinvest proceeds from any divestitures, risks and uncertainties affecting property development and construction (including construction delays, cost overruns, our inability to obtain necessary permits and public opposition to these activities), our failure to qualify and maintain our status as a real estate investment trust, risks related to our tax structuring, failure to maintain our current credit agency ratings, environmental uncertainties, risks related to natural disasters, financial market fluctuations, changes in general economic conditions or in the real estate sector, changes in real estate and zoning laws, a downturn in the U.S., California or global economy, risks related to doing business internationally and global expansion, losses in excess of our insurance coverage, unknown liabilities acquired in connection with acquired properties or otherwise and increases in real property tax rates. Our success also depends upon economic trends generally, including interest rates, income tax laws, governmental regulation, legislation, population changes and certain other matters discussed under the heading "Risk Factors" and elsewhere in our annual report on Form 10-K for the year ended December 31, 2006, our quarterly report on Form 10-Q for the quarter ended June 30, 2007, and any amendments thereto.

                       CONSOLIDATED BALANCE SHEETS
                          (dollars in thousands)

                                                      As of
                                      December 31, 2007    December 31, 2006
    Investments in real estate
      Total investments in properties     $6,709,545            $6,575,733
      Accumulated depreciation              (916,686)             (789,693)
        Net investments in properties      5,792,859             5,786,040
      Investments in unconsolidated
       co-investment ventures                356,194               274,381
      Properties held for contribution,
       net                                   488,339               154,036
      Properties held for divestiture,
       net                                    40,513                20,916
        Net investments in real estate     6,677,905             6,235,373
    Cash and cash equivalents and
     restricted cash                         250,416               195,878
    Accounts receivable, net                 184,270               133,998
    Other assets                             149,812               148,263
    Total assets                          $7,262,403            $6,713,512

  Liabilities and stockholders' equity
    Secured debt                          $1,471,087            $1,395,354
    Unsecured senior debt                  1,003,123             1,101,874
    Unsecured credit facilities              876,105               852,033
    Other debt                               144,529                88,154
    Accounts payable and other
     liabilities                             306,196               271,880
          Total liabilities                3,801,040             3,709,295
    Minority interests
      Co-investment venture partners         517,572               555,201
      Preferred unitholders                   77,561               180,298
      Limited partnership unitholders        102,278               102,061
          Total minority interests           697,411               837,560
    Stockholders' equity
      Common equity                        2,540,540             1,943,240
      Preferred equity                       223,412               223,417
          Total stockholders' equity       2,763,952             2,166,657
  Total liabilities and stockholders'
   equity                                 $7,262,403            $6,713,512

                  (in thousands, except per share data)

                                 For the Quarters ended  For the Years ended
                                      December 31,          December 31,
                                    2007       2006       2007       2006
    Rental revenues(1)            $161,869   $156,876   $637,964   $665,219
    Private capital revenues         9,700     28,563     31,707     46,102
        Total revenues             171,569    185,439    669,671    711,321
  Costs and expenses
    Property operating costs(1)    (44,887)   (42,064)  (174,065)  (173,047)
    Depreciation and amortization  (40,093)   (42,079)  (161,925)  (174,721)
    General and administrative     (34,251)   (30,431)  (129,510)  (104,069)
    Fund costs                        (297)      (503)    (1,076)    (2,091)
    Impairment losses                 (900)      (918)    (1,157)    (6,312)
    Other expenses                  (2,117)    (1,486)    (5,112)    (2,620)
        Total costs and expenses  (122,545)  (117,481)  (472,845)  (462,860)
  Other income and expenses
    Development gains, net of
     taxes                          34,802     36,500    124,288    106,389
    (Losses) gains from sale or
     contribution of real estate
     interests, net                 (1,407)         -     73,436          -
    Equity in earnings of
     unconsolidated co-investment
     ventures                          181     10,635      7,467     23,240
    Other income                     2,318      3,133     22,331     11,849
    Interest expense, including
     amortization                  (30,551)   (37,600)  (126,945)  (165,087)
        Total other income and
         expenses                    5,343     12,668    100,577    (23,609)
    Income from operations before
     minority interests             54,367     80,626    297,403    224,852
    Minority interests' share of
      Co-investment venture
       partners' share of income    (6,599)    (7,878)   (27,748)   (37,190)
      Co-investment venture
       partners' and limited
       partnership unitholders'
       share of development gains   (8,835)    (2,843)   (13,934)    (5,613)
      Preferred unitholders         (1,432)    (3,646)    (8,042)   (16,462)
      Limited partnership
       unitholders                     (33)    (1,434)    (5,121)    (2,367)
        Total minority interests'
         share of income           (16,899)   (15,801)   (54,845)   (61,632)
            Income from continuing
             operations             37,468     64,825    242,558    163,220
    Discontinued operations
      Income attributable to
       discontinued operations,
       net of minority interests     2,049      4,618      9,689     18,217
      Development gains, net of
       taxes and minority
       interests                    49,905          -     49,905          -
      Gains from disposition of
       real estate, net of
       minority interests            7,777     18,312     12,108     42,635
        Total discontinued
         operations                 59,731     22,930     71,702     60,852
            Net income              97,199     87,755    314,260    224,072
    Preferred stock dividends       (3,950)    (3,951)   (15,806)   (13,582)
    Preferred unit redemption
     (issuance costs) discount           -        (66)    (2,930)    (1,070)
  Net income available to common
   stockholders                    $93,249    $83,738   $295,524   $209,420
  Net income per common share
   (diluted)                         $0.92      $0.91      $2.96      $2.30
  Weighted average common shares
   (diluted)                       101,121     92,252     99,809     91,107

  (1) Effective October 1, 2006, AMB deconsolidated AMB Alliance Fund III
      (Fund III) on a prospective basis. Pro forma rental revenues and
      operating expense for the year ended December 31, 2006 would have been
      $585,059 and $154,368, respectively, if Fund III had been
      deconsolidated as of January 1, 2006.

                  (in thousands, except per share data)

                                 For the Quarters ended  For the Years ended
                                      December 31,          December 31,
                                    2007       2006       2007       2006
  Net income available to common
   stockholders                    $93,249    $83,738   $295,524   $209,420
    Gains from sale or
     contribution of real estate,
     net of minority interests      (6,370)   (18,312)   (85,544)   (42,635)
    Depreciation and amortization
        Total depreciation and
         amortization               40,093     42,079    161,925    174,721
        Discontinued operations'
         depreciation                  139      1,468      1,801      5,256
        Non-real estate
         depreciation               (1,658)    (1,477)    (5,623)    (4,546)
    Adjustments to derive FFO
     from consolidated
     co-investment ventures
        Co-investment venture
         partners' minority
         interests (Net income)      6,599      7,878     27,748     37,190
        Limited partnership
         unitholders' minority
         interests (Net income)         33      1,434      5,121      2,367
        Limited partnership
         unitholders' minority
         interests (Development
         profits)                    3,384      1,653      7,148      4,948
        Discontinued operations'
         minority interests (Net
         income)                        94        210        370      1,254
        FFO attributable to
         minority interests        (15,555)   (16,207)   (62,902)   (82,861)
    Adjustments to derive FFO
     from unconsolidated
     co-investment ventures
        AMB's share of net income     (181)   (10,635)    (7,467)   (23,240)
        AMB's share of FFO           6,083      6,703     27,391     16,038
  Funds from operations           $125,910    $98,532   $365,492   $297,912

  FFO per common share and unit
   (diluted)                         $1.20      $1.01      $3.51      $3.12

  Weighted average common share
   and unit (diluted)              105,130     97,088    104,169     95,444

  (1) Funds From Operations ("FFO") and Funds From Operations Per Share and
      Unit ("FFOPS"). AMB believes that net income, as defined by U.S. GAAP,
      is the most appropriate earnings measure. However, AMB considers funds
      from operations, or FFO, and FFO per share and unit, or FFOPS, to be
      useful supplemental measures of its operating performance. AMB defines
      FFOPS as FFO per fully diluted weighted average share of AMB's common
      stock and operating partnership units. AMB calculates FFO as net
      income, calculated in accordance with U.S. GAAP, less gains (or losses)
      from dispositions of real estate held for investment purposes and real
      estate-related depreciation, and adjustments to derive AMB's pro rata
      share of FFO of consolidated and unconsolidated joint ventures.  AMB
      does not adjust FFO to eliminate the effects of non-recurring charges.
      AMB includes the gains from development, including those from value
      added conversion projects, before depreciation recapture, as a
      component of FFO.  AMB believes that value-added conversion
      dispositions are in substance land sales and as such should be
      included in FFO, consistent with the real estate investment trust
      industry's long standing practice to include gains on the sale of land
      in FFO. However, AMB's interpretation of FFO or FFOPS may not be
      consistent with the views of others in the real estate investment
      trust industry, who may consider it to be a divergence from the
      National Association of Real Estate Investment Trusts' (NAREIT)
      definition, and may not be comparable to FFO or FFOPS reported by
      other real estate investment trusts that interpret the current NAREIT
      definition differently than AMB does.

      In connection with the formation of a co-investment venture, AMB may
      warehouse assets that are acquired with the intent to contribute these
      assets to the newly formed venture. Some of the properties held for
      contribution may, under certain circumstances, be required to be
      depreciated under U.S. GAAP.  If this circumstance arises, AMB intends
      to include in its calculation of FFO gains or losses related to the
      contribution of previously depreciated real estate to joint ventures.
      Although such a change, if instituted, will be a departure from the
      current NAREIT definition, AMB believes such calculation of FFO will
      better reflect the value created as a result of the contributions. To
      date, AMB has not included gains or losses from the contribution of
      previously depreciated warehoused assets in FFO.

      AMB believes that FFO and FFOPS are meaningful supplemental measures
      of its operating performance because historical cost accounting for
      real estate assets in accordance with U.S. GAAP implicitly assumes
      that the value of real estate assets diminishes predictably over time,
      as reflected through depreciation and amortization expenses. However,
      since real estate values have historically risen or fallen with market
      and other conditions, many industry investors and analysts have
      considered presentation of operating results for real estate companies
      that use historical cost accounting to be insufficient. Thus, FFO and
      FFOPS are supplemental measures of operating performance for real
      estate investment trusts that exclude historical cost depreciation and
      amortization, among other items, from net income, as defined by U.S.
      GAAP. AMB believes that the use of FFO and FFOPS, combined with the
      required U.S. GAAP presentations, has been beneficial in improving the
      understanding of operating results of real estate investment trusts
      among the investing public and making comparisons of operating results
      among such companies more meaningful. AMB considers FFO and FFOPS to
      be useful measures for reviewing comparative operating and financial
      performance because, by excluding gains or losses related to sales of
      previously depreciated operating real estate assets and real estate
      depreciation and amortization, FFO and FFOPS can help the investing
      public compare the operating performance of a company's real estate
      between periods or as compared to other companies. While FFO and FFOPS
      are relevant and widely used measures of operating performance of real
      estate investment trusts, these measures do not represent cash flow
      from operations or net income as defined by U.S. GAAP and should not
      be considered as alternatives to those measures in evaluating AMB's
      liquidity or operating performance. FFO and FFOPS also do not consider
      the costs associated with capital expenditures related to AMB's real
      estate assets nor are FFO or FFOPS necessarily indicative of cash
      available to fund AMB's future cash requirements.

      The following table reconciles projected FFO from projected net income
      for the year ended December 31, 2008:

                                                    Low              High

      Projected net income                         $2.80             $3.00
      AMB's share of projected depreciation
       and amortization                             1.44              1.46
      AMB's share of projected gains on
       disposition of operating properties         (0.32)            (0.34)
      Impact of additional dilutive
       securities, other, rounding                 (0.07)            (0.07)
      Projected Funds From Operations (FFO)        $3.85             $4.05

      Amounts are expressed per share, except FFO which is expressed per
      share and unit.

First Call Analyst:
FCMN Contact: [email protected]

SOURCE: AMB Property Corporation

CONTACT: Tracy A. Ward, Director, Investor Relations, +1-415-733-9565,
fax, +1-415-477-9565, [email protected], or Rachel E.M. Bennett, Director, Media
Relations, +1-415-733-9532, fax, +1-415-477-9532, [email protected], both of
AMB Property Corporation

Media contact & resources

Jennifer Nelson

SVP, Head of Global Corporate Communications
+1 (415) 733 9409
[email protected]
San Francisco, California USA

Corporate Profile

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