AMB Property Corporation today reported adjusted earnings per share (EPS), before gain, extraordinary and one-time items of $1.33, reflecting an increase of 8.1% for the year. Adjusted EPS for the fourth quarter was $0.34, an increase of 6.3% over the fourth quarter 1999. Fully diluted EPS for the fourth quarter and year ended December 31, 2000 was $0.28 and $1.35, respectively, reflecting a decrease of 51.7% and 30.4% over the same periods in 1999.

Funds from Operations (FFO) rose to a record $2.32 per fully diluted share for the full-year 2000, a 10.5% increase over 1999. Fourth quarter FFO per fully diluted share increased 11.1% over the fourth quarter of 1999 to $0.60. Since going public in the fourth quarter of 1997, AMB has grown FFO per share by an average of 11.9% per year.

The strength of AMB's operating properties, located in major metropolitan markets, was illustrated by an 8.4% increase in internal growth for the year and 11.2% for the quarter, measured by same store cash basis net operating income. Same store growth for the year was driven by a 28.0% increase in same store base rents on leases commencing during the year and 58.9% tenant retention at the same-store properties. For the entire portfolio, rent increases on new leases signed during the year were 26.5% and occupancy was 96.3% at year-end, up from 95.9% at year-end 1999.

"The strong fourth quarter and full-year 2000 financial results, in the face of an economic slowdown and significant stock market declines, affirm our strategy to dispose of nearly $1 billion of retail assets and focus our investment strategy on industrial real estate located in supply-constrained markets nationwide," stated Hamid R. Moghadam, chairman and CEO of AMB.

During the year, AMB continued to sharpen its hub market HTD(TM) focus by exiting smaller, non-strategic markets and through the disposition of non-core assets. Dispositions totaled $176 million in 2000, including $68 million in the fourth quarter. W. Blake Baird, president of AMB, stated "Our long-term capital recycling and private equity funding efforts are on track and we have made significant progress this past year executing our investment strategy."

AMB acquired 57 industrial buildings totaling 4.8 million square feet for $322 million during the fourth quarter, including the acquisition of a 95% interest in 20 on-tarmac air cargo facilities at eight U.S. airports from investors in Aviation Facilities Company (AFCO). This acquisition makes AMB one of the largest owners of on-tarmac air cargo facilities in the U.S. and allows AMB to better serve existing customers and to expand relationships with new airport-related customers.

AMB acquired $730 million of HTD(TM) industrial assets in 2000, totaling 10.5 million square feet. "The AFCO acquisition and the presence we established surrounding New York's JFK airport exemplify our strategy," said Baird.

AMB completed and stabilized 12 industrial development and renovation projects for a total investment of $144 million, including five projects in the fourth quarter totaling $70 million. The company's industrial development pipeline currently stands at $306 million and consists of 5.5 million square feet, of which $163 million, or 53%, has been funded.

AMB Institutional Alliance Fund I, a multi-investor fund including 16 pension funds, foundations and endowments that have co-invested alongside AMB, has invested $315 million in operating assets and committed $63 million to renovation and development projects. "AMB has been able to grow our core business through access to private capital sources," said John T. Roberts, president of AMB Investment Management. "Our private capital strategy continues an 18-year tradition of meeting institutional investors real estate needs, and today, allows us to maximize value for our public stockholders."

Financing activity during the quarter strengthened the balance sheet and provided additional flexibility to the debt maturity schedule. During the fourth quarter AMB issued $75 million of 10-year notes at a fixed rate of 8.0% and $150 million of five-year notes at a fixed rate of 7.2%. In 2000, AMB issued a total of $280 million of notes under the medium-term note (MTN) program at an average rate of 7.6%. "Despite the capital market pressure that the REIT industry faces, AMB has successfully managed its balance sheet through its capital recycling program, the repayment of mortgage debt and by opportunistically tapping the public debt market through our MTN program," said Michael A. Coke, chief financial officer.

AMB will host its fourth quarter 2000 conference call tomorrow, January 23, 2001 at 11:00 A.M. PDT/ 2:00 P.M. EDT. You will have the opportunity to listen to the conference call over the Internet through AMB's website at http://www.amb.com/. To listen to the call live, please go to the web site 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, a replay will be available from our website shortly after the call.

AMB Property Corporation is one of the leading owners and operators of industrial real estate nationwide. As of December 31, 2000, AMB owned, managed and had renovation and development projects totaling 92 million square feet and 1005 buildings in 27 metropolitan markets. AMB targets High Throughput Distribution(TM) properties -- industrial properties located in major distribution markets near airports, seaports and ground transportation systems. These HTD(TM) facilities are built for speed and benefit from barriers to entry due to their supply-constrained locations and proximity to large customer bases. AMB -- A tradition of nontraditional thinking(TM).

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 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 our 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 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-Q for the quarter ended September 30, 2000.

                         CONSOLIDATED BALANCE SHEETS
                            (dollars in thousands)

                      Dec. 31,  Sept. 30,   June 30,  March 31,   Dec. 31,
                        2000       2000       2000      2000        1999
  Assets
  Investments
   in real estate:
    Total
     investments in
     properties      $4,026,597 $3,787,451 $3,564,744 $3,288,333 $3,249,452
   Accumulated
    depreciation       (177,467)  (160,880)  (142,037)  (120,193)  (103,558)
     Net investments
      in properties   3,849,130  3,626,571  3,422,707  3,168,140  3,145,894
    Investment in
     unconsolidated
     joint ventures      80,432     77,981     77,959     67,414     66,357
  Properties held
   for divestiture,
   net                  197,146    149,842    235,359    232,109    181,201
  Net investments
   in real estate     4,126,708  3,854,394  3,736,025  3,467,663  3,393,452
  Cash and cash
   equivalents           42,722     37,840     21,674     89,094    137,019
  Mortgage
   receivables          115,969     77,920         --         --         --
  Accounts
   receivable, net       69,874     67,667     55,157     54,064     35,516
  Investments in
   affiliated
   companies             35,731     27,388      3,436     10,349        150
  Investments in
   other companies,
   net                   15,965     22,371     25,321     25,575     43,512
  Other assets           18,657     15,462     11,408      9,882     11,901
       Total assets  $4,425,626 $4,103,042 $3,853,021 $3,656,627 $3,621,550

  Liabilities and Stockholders' Equity
    Unsecured credit
     facility          $216,000   $233,000   $176,000    $43,000    $83,000
    Unsecured senior
      debt securities   680,000    455,000    400,000    400,000    400,000
    Alliance Fund I
     credit facility         --         --     51,000     53,000     80,000
    Secured debt        940,276    825,477    751,091    766,211    707,037
    Other liabilities   147,042    144,104    136,168    128,720     89,371
      Total
       liabilities    1,983,318  1,657,581  1,514,259  1,390,931  1,359,408

    Minority
     interests:
      Preferred units   318,053    318,176    276,233    276,222    256,641
      Minority
       interests        356,325    354,274    283,729    207,138    176,242
       Total minority
        interests       674,378    672,450    559,962    483,360    432,883

    Stockholders'
     equity:
      Common stock    1,671,830  1,676,911  1,682,700  1,686,236  1,733,159
      Preferred stock    96,100     96,100     96,100     96,100     96,100
       Total
        stockholders'
        equity        1,767,930  1,773,011  1,778,800  1,782,336  1,829,259

       Total
        liabilities and
        stockholders'
        equity       $4,425,626 $4,103,042 $3,853,021 $3,656,627 $3,621,550


               CONSOLIDATED STATEMENTS OF FUNDS FROM OPERATIONS
                  (dollars in thousands, except share data)

                            For the Quarters          For the Years
                                 Ended                    Ended
                              December 31,             December 31,
                           2000         1999        2000         1999
  Income from
   operations             $37,344     $40,775    $ 159,699   $ 158,851

  Real estate
   related depreciation
   and amortization:
    Total depreciation
     and amortization      31,123      18,210       96,258      67,505
    FF&E depreciation
     and ground lease
     amortization (A)        (257)       (353)      (1,114)     (1,002)
  FFO attributable
   to minority
   interests: (B)
    Separate account
     co-investors          (1,258)     (1,147)      (4,935)     (5,148)
    AMB Institutional
     Alliance Fund I       (3,854)       (677)      (7,752)       (804)
    Other joint
     venture partners        (374)       (539)      (2,368)     (2,230)
  Adjustments to
   derive FFO in
   unconsolidated
   JV: (C)
    Company's share
     of net income         (1,206)     (1,122)      (5,212)     (4,701)
    Company's share
     of FFO                 1,700       1,616        7,188       6,677
    Preferred stock
     dividends             (2,125)     (2,125)      (8,500)     (8,500)
    Preferred unit
     distributions         (6,835)     (5,601)     (24,613)    (19,501)

  Funds from
   operations             $54,258     $49,037    $ 208,651   $ 191,147

  FFO per common
   share and unit:
    Basic                   $0.61       $0.54        $2.33       $2.11
    Diluted                 $0.60       $0.54        $2.32       $2.10

  Weighted average
   common shares
   and units:
    Basic              89,619,042  90,779,163   89,566,375  90,792,310
    Diluted (D)        90,332,931  90,779,163   90,024,511  90,867,934

  (A) Ground lease amortization represents the straight-line amortization of
      the Company's investments in ground leased properties, for which the
      Company does not have a purchase option.
  (B) Represents FFO allocated to minority interests in consolidated joint
      ventures whose interests are not exchangeable into common stock.  The
      minority interest's share of NOI for the quarters ended December 31,
      2000 and 1999, was $8,042 and $4,326, respectively, and for the years
      ended December 31, 2000 and 1999, was $24,979 and $12,535,
      respectively.
  (C) AMB's share of NOI for the quarters ended December 31, 2000 and 1999,
      was $1,998 and $1,935, respectively, and for the years ended
      December 31, 2000 and 1999, was $8,338 and $7,983, respectively.
  (D) Includes the dilutive effect of stock options.


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

                              For the Quarters Ended   For the Years Ended
                                   December 31             December 31
                                 2000        1999       2000        1999
  Revenues
  Rental Revenues (A)          $126,808    $108,763    $464,164   $439,658
  Equity in earnings of
   unconsolidated joint
   ventures                       1,206       1,121       5,212      4,701
  Investment management and
   other income                   4,520       1,566       8,331      3,824
    Total revenues              132,534     111,450     477,707    448,183

  Operating Expenses
  Property operating             30,275      25,382     107,730    107,923
  Interest, including
   amortization (B)              27,364      20,976      90,270     88,681
  Depreciation and
   amortization                  31,123      18,210      96,258     67,505
  General, administrative,
   and other                      6,428       6,107      23,750     25,223
    Total expenses               95,190      70,675     318,008    289,332

    Income from operations       37,344      40,775     159,699    158,851

  Minority interests:
    Preferred units              (6,835)     (5,601)    (24,613)   (19,501)
    Minority units               (5,449)     (4,043)    (20,348)   (14,510)
      Total minority interests  (12,284)     (9,644)    (44,961)   (34,011)
      Net income before gain
       from disposition of
       real estate               25,060      31,131     114,738    124,840
    Gain from disposition of
     real estate                    824      22,409       7,044     55,466
      Net income before
       extraordinary items       25,884      53,540     121,782    180,306
    Extraordinary items              --      (1,347)         --    (4,203)
      Net income                 25,884      52,193     121,782    176,103
    Preferred stock dividends    (2,125)     (2,125)     (8,500)    (8,500)
      Net income available to
       common stockholders      $23,759     $50,068    $113,282   $167,603

    Net income per common share:
      Basic                       $0.28       $0.58       $1.35      $1.94
      Diluted                     $0.28       $0.58       $1.35      $1.94

    Weighted average common
     shares:
      Basic                  83,814,658  86,262,815  83,697,170 86,271,862
      Diluted (C)            84,528,547  86,262,815  84,155,306 86,347,487


  (A)Includes straight-line rents of $4,018 and $3,324 for the quarters and
      $10,203 and $10,848 for years ended December 31, 2000 and 1999,
      respectively.
  (B) Net of capitalized interest of $3,938 and $2,574 for the quarters and
      $15,461 and $10,872 for the years ended December 31, 2000 and 1999,
      respectively.
  (C) Includes the dilutive effect of stock options

SOURCE: AMB Property Corporation

Contact: investors, Victoria A. Robinson, Director, Investor Relations,
877-285-3111, or fax, 415-394-9001, or [email protected], or media,
Christine G. Schadlich, Vice President, Marketing & Corporate Communications,
415-733-5233, or fax, 415-394-9001, or [email protected]

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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