- Earnings per share (EPS) for the first quarter was $0.33, reflecting a
     34.0% decrease from the first quarter 2001 EPS of $0.50, which had
     included gains on property dispositions and contributions of $0.20 per
     share

   - Operating earnings per share (Operating EPS), which excludes
     extraordinary items and gains and losses on property dispositions and
     contributions, for the first quarter was $0.34, a 13.3% increase over
     the first quarter 2001 Operating EPS of $0.30, which had included
     impairment charges of $0.05 per share

   - Same store net operating income increased 2.0%; industrial occupancy
     declined slightly from 94.5% at December 31, 2001 to 94.4% at
     March 31, 2002

SAN FRANCISCO, April 8 /PRNewswire-FirstCall/ -- AMB Property Corporation , a nationwide owner and operator of industrial real estate, today reported its first quarter 2002 results. The company's industrial portfolio, concentrated in 8 hub and gateway distribution markets, maintained strong occupancy and same store net operating income growth, with occupancy at 94.4% and same store net operating income growth of 2.0% for the quarter. 74.4% of tenants in the industrial portfolio were retained during the quarter, with total weighted average rental increases of 3.0% on renewals and rollovers.

Commenting on the company's first quarter performance and outlook, chairman and CEO Hamid R. Moghadam noted, "Our continued strong performance in a difficult operating environment reflects the high quality of our real estate portfolio, robust demand in the infill markets where we have strategically chosen to invest and effective management of our operations. Based on this strong foundation, we anticipate increased leasing activity from our customers, leading to improved occupancy in the second half of this year, with growth in rents to follow."

Investment Activity

During the first quarter, AMB acquired 8 industrial buildings for a total investment of $35.0 million and disposed of 2 properties for a cumulative price of $38.5 million, including $36.0 million for one of the Company's few remaining retail centers. AMB President W. Blake Baird stated, "Since early 1999, AMB has disposed of 34 retail assets for $907 million and is redeploying that capital into industrial assets in supply-constrained markets, creating a more focused operating portfolio. The transaction environment has begun to improve and we have significant capital capacity to further take advantage of anticipated market opportunities."

AMB formed a strategic alliance with G. Accion, Mexico's leading publicly held real estate company, to develop, acquire and operate industrial properties in Mexico. AMB and G. Accion will initially target the Mexico City, Guadalajara and Monterrey markets, which are growing areas where customers have the greatest need for industrial facilities.

"As in the U.S., our international customer-driven expansion is based on partnering with the best local entrepreneurial operators. Together with G. Accion we can give our existing and targeted customers the ability to launch or expand their operations in Mexico," said Baird. "We expect to begin investing capital with G. Accion in Mexico later this year," he added.

Corporate Governance Recognition

In March 2002, AMB was awarded an honorable mention for best corporate governance at the seventh annual Investor Relations Magazine US Awards; the company was the first REIT to be nominated in the history of IR Magazine's awards. Moghadam commented, "Since its inception, AMB has adhered to a policy which elects directors annually and uses equity as the primary compensation for Board members. Our industry leading corporate governance prohibits the repricing of stock options and does not employ any 'poison pill' protections. We take our commitment to stockholder value seriously and are honored to be recognized for it." An independent research firm, Erdos & Morgan, polled more than 1,800 US Portfolio managers, security analysts and retail investors to determine the nominees and winners.

Supplemental Reporting Measure

AMB reports Funds from Operations per fully diluted share and unit (FFOPS) in accordance with the standards established by NAREIT, the real estate investment trust industry group, as a supplemental earnings measure. AMB reported first quarter 2002 FFOPS of $0.62, representing an 8.8% increase over first quarter 2001 FFO of $0.57. First quarter 2001 FFOPS included a $4.7 million write-down, or $0.05 per share.

Conference Call Information

AMB will host its first quarter 2002 conference call tomorrow, April 9, 2002 at 11:00 AM PDT/ 2:00 PM EDT. Stockholders and interested parties may listen to a live broadcast of the call by dialing 719-457-2626 and using reservation code 691458. The conference call can also be accessed through the Internet on AMB's website at http://www.amb.com/. Internet users are encouraged to visit the website at least fifteen minutes early to register, download and install any necessary audio software. For those who are not able to listen to the live broadcast, replays will be available until April 30, 2002 on the company's website shortly after the call and via telephone by dialing 719-457-0820 with reservation code 691458.

AMB Property Corporation is a leading owner and operator of industrial real estate nationwide. As of March 31, 2002 AMB owned, managed and had renovation and development projects totaling 94.6 million square feet and 1,023 buildings in 26 metropolitan markets. AMB targets industrial properties located near airports, seaports and ground transportation systems. The company's portfolio is comprised of High Throughput Distribution(R) facilities -- industrial properties built for speed and benefiting from barriers to entry due to their infill locations and proximity to large customer bases.

AMB's press releases are available on the company website at http://www.amb.com/ or by contacting the Investor Relations department toll-free at 877-285-3111.

This press release contains forward-looking statements about business strategy, future leasing activities, acquisition opportunities and future plans, which are made pursuant to the safe-harbor provisions of Section 21E of the Securities Exchange Act of 1934. Forward-looking statements involve numerous risks and uncertainties and should not be relied upon as predictions of future events. The events or circumstances reflected in our forward-looking statements might not occur. In particular, a number of factors could cause AMB's actual results to differ materially from those anticipated, including, among other things, defaults on or non-renewal of leases by tenants, increased interest rates and operating costs, AMB's failure to obtain necessary outside financing, difficulties in identifying properties to acquire and in effecting acquisitions, AMB's failure to successfully integrate acquired properties and operations, AMB's failure to timely reinvest proceeds from any such dispositions, risks and uncertainties affecting property development and construction (including construction delays, cost overruns, AMB's inability to obtain necessary permits and public opposition to these activities), AMB's failure to qualify and maintain its status as a real estate investment trust under the Internal Revenue Code, environmental uncertainties, risks related to natural disasters, financial market fluctuations, changes in real estate and zoning laws, risks of doing business internationally and increases in real property tax rates. AMB's success also depends upon economic trends generally, including interest rates, income tax laws, governmental regulation, legislation and population changes. For further information on these and other factors that could impact AMB and the statements contained herein, reference should be made to AMB's filings with the Securities and Exchange Commission, including AMB's quarterly report on Form 10-K for the year ended December 31, 2001.

                       Consolidated Balance Sheets
                          (dollars in thousands)



                                                      As of
                                       March 31, 2002     December 31, 2001
  Assets
  Investments in real estate:
    Total investments in properties      $4,566,951            $4,530,711
    Accumulated depreciation               (289,701)             (265,653)
      Net investments in properties       4,277,250             4,265,058
    Investment in unconsolidated
     joint ventures                          71,137                71,097
    Properties held for divestiture, net    139,370               157,174
      Net investments in real estate      4,487,757             4,493,329
  Cash and cash equivalents                  99,492                81,732
  Mortgage receivables                       87,214                87,214
  Accounts receivable, net                   75,399                70,794
  Other assets                               31,261                27,824
      Total assets                       $4,781,123            $4,760,893

  Liabilities and Stockholders' Equity
  Secured debt                           $1,229,433            $1,220,164
  Unsecured senior debt securities          800,000               780,000
  Unsecured credit facility                      --                12,000
  Alliance Fund II credit facility          116,000               123,500
  Other liabilities                         155,568               138,601
      Total liabilities                   2,301,001             2,274,265
  Minority interests:
    Preferred units                         275,987               275,987
    Minority interests                      455,428               458,299
      Total minority interests              731,415               734,286
  Stockholders' equity:
    Common stock                          1,652,607             1,656,242
    Preferred stock                          96,100                96,100
      Total stockholders' equity          1,748,707             1,752,342
      Total liabilities and
       stockholders' equity              $4,781,123            $4,760,893



                  Consolidated Statements of Operations
                (dollars in thousands, except share data)


                                                   For the Quarters Ended
                                                         March 31,
                                                    2002           2001
  Revenues
  Rental revenues(A)                              $152,241       $135,801
  Equity in earnings of unconsolidated
   joint ventures                                    1,483          1,474
  Investment management income                       2,588          2,420
  Interest and other income                          2,850          5,139
    Total revenues                                 159,162        144,834
  Expenses
  Property operating                                37,069         32,920
  Interest, including amortization(B)               35,851         31,552
  Depreciation and amortization                     29,675         26,854
  General, administrative, and other                 9,945          8,183
  Loss on investments in other companies                --          4,655
    Total expenses                                 112,540        104,164
      Income before minority interests
       and gains (losses)                           46,622         40,670
  Minority interests' share of income:
    Preferred units                                 (5,857)        (6,858)
    Minority interests                              (9,766)        (6,139)
      Total minority interests                     (15,623)       (12,997)
  Gains (losses) from disposition of
     real estate, net of minority interests           (288)        16,767
      Net income before extraordinary items         30,711         44,440
  Extraordinary items (early debt extinguishments)    (216)            --
      Net income                                    30,495         44,440
  Preferred stock dividends                         (2,125)        (2,125)
  Net income available to common stockholders      $28,370        $42,315
  Net income per common share:
    Basic                                            $0.34          $0.50
    Diluted                                          $0.33          $0.50
  Weighted average common shares:
    Basic                                       83,319,047     83,895,993
    Diluted                                     84,781,872     84,720,917


  (A)  Includes straight-line rents of $3,961 and $1,325 for the quarters
       ended March 31, 2002 and 2001, respectively.
  (B)  Net of capitalized interest of $1,791 and $3,782 for the quarters
       ended March 31, 2002 and 2001, respectively.


             Consolidated Statements of Funds from Operations
                (dollars in thousands, except share data)


                                                  For the Quarters Ended
                                                        March 31,
                                                   2002            2001

  Income before minority interests
   and gains (losses)                              $46,622        $40,670

  Real estate related depreciation and
   amortization:
    Total depreciation and amortization             29,675         26,854
    FF& E depreciation and ground lease
     amortization(A)                                  (674)          (481)
  FFO attributable to minority interests(B)        (12,844)        (7,187)

  Adjustments to derive FFO from
   unconsolidated JV's:(C)
    Company's share of net income                   (1,483)        (1,474)
    Company's share of FFO                           2,129          2,120
  Preferred stock dividends                         (2,125)        (2,125)
  Preferred units distributions                     (5,857)        (6,858)

  Funds from operations                            $55,443        $51,519

  FFO per common share and unit:
    Basic                                            $0.63          $0.57
    Diluted                                          $0.62          $0.57

  Weighted average common shares and units:
    Basic                                       88,262,128     89,669,950
    Diluted                                     89,724,953     90,494,874


  (A)  Ground lease amortization represents the amortization of the
       Company's investments in ground leased properties, for which the
       Company does not have a purchase option.
  (B)  Represents FFO attributable to minority interests in consolidated
       joint ventures whose interests are not exchangeable into common
       stock.  The minority interest's share of cash basis NOI for the
       quarters ended March 31, 2002 and 2001, was $19,375 and $9,946,
       respectively.
  (C)  AMB's share of NOI for the quarters ended March 31, 2002 and 2001,
       was $2,644 and $2,818, respectively.

 

SOURCE: AMB Property Corporation

Contact: investors/analysts, Michael A. Coke, or Michelle C. Wells,
toll-free, 1-877-285-3111, or fax, +1-415-394-9001, or [email protected], or media,
Sara J. Butz, Marketing & Corporate Communications, direct, +1-415-733-9478,
or fax, +1-415-394-9001, or [email protected], all of AMB Property Corporation

Media contact & resources

Jennifer Nelson

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

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