AMB Property Corporation Announces Tax Treatment of 2004 Dividends

AMB Property Corporation today announced the tax treatment of its 2004 distributions on its Common Stock , 6.5% Series L Cumulative Redeemable Preferred Stock , and 6.75% Series M Cumulative Redeemable Preferred Stock .

During 2004, the company paid four quarterly distributions totaling $1.69 per share of Common Stock. These distributions are classified for income tax purposes as follows: $.778 per share (46.0%) is classified as an Ordinary Taxable Dividend; $0.369 per share (21.9%) is classified as a 15% Rate Capital Gain Dividend; $0.151 per share (8.9%) is classified as a 25% Rate Capital Gain Dividend; and $.392 per share (23.2%) is classified as return of capital on the 2004 Form 1099-DIV.

AMB Property Corporation also announced the tax treatment of its 2004 dividends on two series of the company's preferred stock.

For the company's 6.5% Series L Cumulative Redeemable Preferred Stock , the company's reportable 2004 dividends totaling $1.625 per share are classified for income tax purposes as follows: $0.974 per share (59.9%) is classified as an Ordinary Taxable Dividend; $0.462 per share (28.5%) is classified as a 15% Rate Capital Gain Dividend; and $0.189 per share (11.6%) is classified as a 25% Rate Capital Gain Dividend on the 2004 Form 1099-DIV.

The tax treatment of its reportable 2004 dividends on the company's 6.75% Series M Cumulative Redeemable Preferred Stock totaling $1.50 per share are classified for income tax purposes as follows: $0.899 per share (59.9%) is classified as an Ordinary Taxable Dividend; $0.427 per share (28.5%) is classified as a 15% Rate Capital Gain Dividend; and $0.174 per share (11.6%) is classified as a 25% Rate Capital Gain Dividend on the 2004 Form 1099-DIV.

On December 9, 2004, AMB Property Corporation declared dividends on two series of the company's preferred stock. For the company's 6.5% Series L Cumulative Redeemable Preferred Stock , stockholders of record on January 6, 2005, a dividend of $0.40625 per share will be paid on January 17, 2005 and will be classified as 2005 taxable dividends. For the company's 6.75% Series M Cumulative Redeemable Preferred Stock , stockholders of record on January 6, 2005, a dividend of $0.421875 per share will be paid on January 17, 2005 and will be classified as 2005 taxable dividends.

The tables below summarize the income tax treatment of the company's 2004 dividends:

  2004 Dividend Tax Reporting Information (Form 1099-DIV)

  AMB Property Corporation Common Stock
  CUSIP # 00163T109
  Ticker Symbol: AMB


                                                    2004            2004
                                                   Ordinary
                                           Cash    Taxable      15% Capital
  Declaration  Record       Payable     Dividend   Dividend      Gain ($ per
    Dates      Dates         Dates   ($ per share) ($ per share)   share)
  12/4/2003  12/22/2003     1/5/2004    $0.415000   $0.191030    $0.090684
  2/26/2004    4/5/2004    4/15/2004    $0.425000   $0.195635    $0.092869
  5/18/2004    7/5/2004    7/15/2004    $0.425000   $0.195635    $0.092869
  9/23/2004   10/5/2004   10/15/2004    $0.425000   $0.195635    $0.092869

             2004 Totals                $1.690000   $0.777935    $0.369291


                                             2004
                                        25% Capital
                                             Gain
                                        (unrecaptured     2004 Return
                                          Section 1250    of Capital
  Declaration    Record       Payable        Gain)        (nontaxable
    Dates        Dates         Dates      ($ per share)   distribution)

  12/4/2003     12/22/2003     1/5/2004    $0.036979       $0.096307
  2/26/2004       4/5/2004    4/15/2004    $0.037868       $0.098628
  5/18/2004       7/5/2004    7/15/2004    $0.037868       $0.098628
  9/23/2004      10/5/2004   10/15/2004    $0.037868       $0.098628

             2004 Totals                   $0.150583       $0.392191


   AMB Property Corporation
   Series L Cumulative Redeemable Preferred Stock
   CUSIP # 00163T30
   Ticker Symbol: AMB.PrL


                                                                      2004
                                                                 25% Capital
                                              2004                    Gain
                                            Ordinary      2004     (unrecap-
                                 Cash      Taxable   15% Capital     tured
                                Dividend    Dividend      Gain  Section 1250
  Declaration Record   Payable   ($ per      ($ per     ($ per   Gain)($ per
  Dates        Dates    Dates       share)     share)    share)      share)
  12/4/2003  1/5/2004  1/15/2004  $0.406250  $0.243515  $0.115598  $0.047137
  2/26/2004  4/5/2004  4/15/2004  $0.406250  $0.243515  $0.115598  $0.047137
  5/18/2004  7/5/2004  7/15/2004  $0.406250  $0.243515  $0.115598  $0.047137
  9/23/2004 10/5/2004 10/15/2004  $0.406250  $0.243515  $0.115598  $0.047137

             2004 Totals          $1.625000  $0.974060  $0.462392  $0.188548

   AMB Property Corporation
   Series M Cumulative Redeemable Preferred Stock
   CUSIP # 00163T406
   Ticker Symbol: AMB.PrM
                                                                      2004
                                                                 25% Capital
                                              2004                    Gain
                                            Ordinary      2004     (unrecap-
                                 Cash      Taxable   15% Capital     tured
                                Dividend    Dividend      Gain  Section 1250
  Declaration Record   Payable   ($ per      ($ per     ($ per   Gain)($ per
  Dates        Dates    Dates       share)     share)    share)      share)

  12/4/2003  1/5/2004  1/15/2004  $0.234375  $0.140489  $0.066691  $0.027195
  2/26/2004  4/5/2004  4/15/2004  $0.421875  $0.252881  $0.120045  $0.048949
  5/18/2004  7/5/2004  7/15/2004  $0.421875  $0.252881  $0.120045  $0.048949
  9/23/2004 10/5/2004 10/15/2004  $0.421875  $0.252881  $0.120045  $0.048949

             2004 Totals          $1.500000  $0.899132  $0.426826  $0.174042

AMB Property Corporation is a leading owner and operator of industrial real estate, focused on major hub and gateway distribution markets throughout North America, Europe and Asia. As of September 30, 2004, the company's most recent reporting period, AMB owned, managed and had renovation and development projects totaling 109.1 million square feet (10.1 million square meters) and 1,106 buildings in 38 markets within eight 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.

Some of the information included in this report contains forward-looking statements, such as those related to the payment of preferred dividends and the classification of such dividends, 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 report 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, 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, environmental uncertainties, risks related to natural disasters, financial market fluctuations, changes in real estate and zoning laws, risks related to doing business internationally 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 "Management's Discussion and Analysis of Financial Condition and Results of Operations--Business Risks" and elsewhere in our most recent annual report for the year ended December 31, 2003 in Amendment No. 2 on Form 10-K/A.

SOURCE: AMB Property Corporation