AMB Property Corporation(R) , a leading owner, operator and developer of industrial real estate, today reported results for the fourth quarter and full year 2008. Funds from operations per fully diluted share and unit ("FFOPS") were a $1.69 loss for the fourth quarter of 2008 and income of $0.78 for the full year 2008 compared to income of $1.20 and $3.51 for the same periods in 2007.

Consistent with its previous announcement, the company recognized charges in the fourth quarter 2008 related to the valuation of its development program and reduction in personnel of approximately $218 million or $2.15 per share; these charges were almost entirely non-cash. Excluding the impact of the impairments and restructuring charges, FFO would have been $0.47 for the fourth quarter and $2.89 for the full year 2008.

Net income available to common stockholders per fully diluted share ("EPS") was a loss of $2.07 for the fourth quarter of 2008 compared to income of $0.92 for the same period in 2007. The loss was primarily attributable to impairment charges and restructuring costs that the company incurred in the quarter. For the full year 2008 EPS was a loss of $0.67 compared to income of $2.96 for the same period in 2007.

"In light of significant changes in the capital markets and the global economic outlook, during the quarter, we thought it was prudent to conduct a comprehensive review of our portfolio," said Hamid R. Moghadam, AMB's chairman & CEO. "While the magnitude of the impairment charges was significant, the quality of our assets and our portfolio's long-term earnings capacity remain intact."

Operating Results

AMB's operating portfolio was 95.1 percent occupied at December 31, 2008 and maintained an average occupancy of 94.9 percent throughout the year. Benefiting from occupancy gains and rising rents, cash basis same store net operating income ("SS NOI"), without the effects of lease termination fees, increased 0.2 percent in the fourth quarter and 3.7 percent for the full year, over the same periods in 2007.

Average rent change on renewals and rollovers in AMB's operating portfolio increased 2.5 percent in the quarter, and 3.1 percent for the trailing four quarters ended December 31, 2008.

Leasing Activity

During the fourth quarter of 2008, the company leased more than 2.2 million square feet (206,400 square meters) of its development pipeline, bringing the full-year total to a new annual leasing record of approximately 8.3 million square feet (768,300 square meters) compared to approximately 8.2 million square feet (761,800 square meters) of development leasing in 2007. Customers that initiated and expanded their relationships with AMB in 2008 range from global consumer brands to third party logistics and air freight forwarder companies and include: 3M, DHL, Dorel, KLM, Kuehne + Nagel, Pepsico Canada, Schenker and Wincanton.

In its global operating portfolio, AMB leased more than 5.2 million square feet (480,400 square meters) in the fourth quarter and more than 23.8 million square feet (2.2 million square meters) in the full year 2008. In combination with leasing in its development pipeline, the company leased a total of more than 32.1 million square feet (3.0 million square meters) globally in the full year 2008.

"We were able to maintain strong leasing activity through year end despite our customer's increasing caution regarding new space commitments," stated Mr. Moghadam. "In fact, 2008 represented a record leasing year for our development portfolio. These important results are a testament to our focused investment strategy, the quality of our portfolio, the strength of our customer relationships and the diligence of our local teams."

Investment Activity

The company's development-start and acquisition activities in the quarter were commensurate with its plans to limit capital deployment until the financial and real estate markets stabilize. The company commenced development on previously committed projects totaling 1.4 million square feet (131,200 square meters) during the quarter, with an expected total investment of approximately $79.5 million. Development starts for the full year 2008 totaled $544.7 million, a 50 percent decrease from $1.1 billion in 2007.

AMB's global development pipeline at year end, which included investments held through unconsolidated joint ventures, totaled approximately 16.4 million square feet (1.5 million square meters), with an estimated total investment of $1.3 billion scheduled for delivery through 2010. The company's share of the remaining funding required to complete the development pipeline is projected to be $248.6 million. The development pipeline was more than 36 percent leased as of year end 2008, with approximately 8.9 million square feet (826,800 square meters) of leasing remaining in order to stabilize the portfolio over the next 24 months.

The company closed on a previously committed acquisition of an industrial property in China during the quarter, for a total investment of approximately $12.5 million. Acquisitions for the full year 2008 totaled more than $543 million globally, a 48 percent decrease from more than $1.0 billion in 2007.

"Until the financial and real estate markets stabilize, our capital deployment activity will be limited to situations where we are fulfilling prior commitments," said Mr. Moghadam. "Our focus remains on preserving our balance sheet, reducing our cost structure and preparing our company for future opportunities."

During the quarter, AMB sold two properties and 95 acres of land to third parties; the company also contributed one property to AMB Europe Fund I. The aggregate price for development contributions and sales totaled $23.0 million for the quarter and $592.6 million for the full year 2008.

Private Capital

At year end, the company's private capital business had more than $7.0 billion in assets under management. During 2008, the company added $835 million in properties to the company's funds across Japan, Mexico, Europe and the U.S.

"AMB is committed to the success of its private capital franchise which is a significant part of our business," commented John T. Roberts, AMB's president, Private Capital. "We continue to build on our 26 years of working with institutional investors highlighted by creating innovative funds and joint ventures. We are committed to the continued success of our private capital business by evolving our product offerings and by adapting to market conditions in order to provide investors with attractive investment opportunities."

Capital Markets

The company successfully completed more than 35 capital market transactions for a total of approximately $2.6 billion during 2008, with $323 million in the fourth quarter, including refinancings, extensions and new financings throughout the Americas, Europe and Asia.

"Conversations with our lenders have indicated that their first priority will be rollover of existing maturities, followed by modest new allocations for their best customers especially on well-located and leased assets," said Thomas S. Olinger, AMB's chief financial officer. "Given our long-standing lender relationships, well-laddered and geographically diverse debt maturities, extension options and modest loan-to-values, we believe we are well positioned to address our upcoming maturities."

As of December 31, 2008, the company's total consolidated debt maturities for 2009 were $783 million. Assuming the company exercises available extension options, the company's total 2009 consolidated debt maturities would be $341 million. The company's total unconsolidated debt maturities for 2009 were $212 million as of December 31, 2008. Assuming the company exercises available extension options, the total unconsolidated debt maturities would be $173 million.

Subsequent to quarter end, the company exercised its option to extend the maturity of its $325 million term loan from September 2009 to September 2010.

The company had approximately $934 million of capacity as of December 31, 2008, consisting of $224 million of consolidated cash and cash equivalents and $710 million of availability on its lines of credit. In addition, the company has approximately $1.1 billion of its share of properties available for sale or contribution.

2009 FFO Guidance

Given the uncertainties in the current environment, going forward, the company will provide 2009 guidance for its real estate operations and private capital revenues. Consistent with its previously announced 2009 dividend policy, the company will not provide guidance on asset dispositions and gain activity. The company updated its full year 2009 FFO guidance, without gains from asset dispositions or gain activity, of $1.80 to $1.90. Full year 2009 EPS guidance is $0.55 to $0.65.

Supplemental Earnings Measures

Included in the footnotes to the company's attached financial statements is a discussion of why management believes FFO, FFOPS and FFO, excluding impairment and restructuring charges (the "FFO Measures") are useful supplemental measures of operating performance, ways in which investors might use the FFO Measures when assessing the company's financial performance and the FFO Measures' limitations as a measurement tool. Reconciliation from net income to the FFO Measures are provided in the attached tables and published in the company's quarterly supplemental analyst package, available on the company's website at http://www.amb.com/.

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 (SS NOI) 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, 2006. In deriving SS NOI, the company defines NOI as rental revenues, including reimbursements, less property operating expenses, both of which are calculated in accordance with GAAP. Property operating expenses exclude depreciation, amortization, general and administrative expenses and interest expense. The company defines SS NOI to also exclude straight-line rents and amortization of lease intangibles. The company considers SS NOI 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 SS NOI helps the investing public compare the company's operating performance with that of other companies. While SS NOI 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. SS NOI 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 SS NOI may not be comparable to that of other real estate companies, as they may use different methodologies for calculating SS NOI. Reconciliation from net income to SS NOI is published in the company's quarterly supplemental analyst package, available on the company's website at http://www.amb.com/.

"Owned and managed" is defined by the company as assets in which the company has at least a 10 percent 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 Thursday, January 29, 2009 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 78372583. A webcast can be accessed through a link titled "Q4 2008 Earnings Conference Call" located in the Investor Relations section of the company's website at http://www.amb.com/.

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 Thursday, January 29, 2009 until 8:00 PM EST on Friday, February 20, 2009. 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 78372583. The webcast replay can be accessed through a link in the Investor Relations section of the company's website at http://www.amb.com/.

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

AMB Property Corporation(R) is a leading owner, operator and developer of industrial real estate, focused on major hub and gateway distribution markets in the Americas, Europe and Asia. As of December 31, 2008, AMB owned, or had investments in, on a consolidated basis or through unconsolidated joint ventures, properties and development projects expected to total approximately 160.0 million square feet (14.9 million square meters) in 49 markets within 15 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 http://www.amb.com/ 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 continued demand for our product, status of key operating metrics, our ability to capitalize on trends and realize growth, effectiveness of our strategies, performance of our portfolio, occupancy levels, rent growth, SS NOI growth, our development projects (including completion, timing of stabilization and delivery, our ability to lease such projects, square feet at stabilization or completion, costs, share of remaining funding and total investment amounts), our ability to contribute properties to and acquire properties in our private capital co-investment ventures, our ability to accomplish future business plans, strength of our balance sheet, our ability to access credit markets and enter into credit and financing agreements and to meet our forecasts (including our FFO and EPS guidance), lenders' priorities, our position to address debt maturities, our ability to maintain credit extensions 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 or renewal at lower than expected rent, increased interest rates and operating costs or greater than expected capital expenditures, 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, redevelopment, value-added conversion 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, inflation risks, 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, risks of opening offices globally, risks of changing personnel and roles, 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, 2007 and our quarterly report on Form 10-Q for the quarter ended September 30, 2008.

                   CONSOLIDATED STATEMENTS OF OPERATIONS(1)
                   (in thousands, except per share data)

                                                             For the
                                     For the Quarters       Years ended
                                    ended December 31,      December 31,
                                      2008       2007      2008      2007
  Revenues
    Rental revenues                  $157,112  $162,668  $646,575  $639,583
    Private capital revenues(2)         7,632     9,700    68,470    31,707
      Total revenues                  164,744   172,368   715,045   671,290
  Costs and expenses
    Property operating costs          (45,732)  (45,021) (184,700) (174,406)
    Depreciation and amortization     (39,641)  (40,183) (169,145) (162,311)
    General and administrative(3)     (40,651)  (34,251) (143,982) (129,510)
    Restructuring charges(4)          (13,758)        -   (13,758)        -
    Fund costs                           (159)     (297)   (1,078)   (1,076)
    Real estate impairment losses    (190,400)     (900) (190,400)   (1,157)
    Other expenses(5)(6)               (2,446)   (2,117)     (520)   (5,112)
      Total costs and expenses       (332,787) (122,769) (703,583) (473,572)
  Other income and expenses
    Development profits, net of taxes   4,836    34,802    81,084   124,288
    (Losses) gains from sale or
     contribution of real estate
     interests, net                         -    (1,407)   19,967    73,436
    Equity in earnings of
     unconsolidated joint ventures,
     net                                2,762       181    17,121     7,467
    Other (expenses) income(6)         (5,784)    2,316    (5,835)   22,252
    Interest expense, including
     amortization                     (33,228)  (30,551) (133,533) (126,968)
      Total other income and expenses,
       net                            (31,414)    5,341   (21,196)  100,475
    (Loss) income before minority
     interests and discontinued
     operations                      (199,457)   54,940    (9,734)  298,193
    Minority interests' share of
     loss (income)
      Joint venture partners' share of
       income before discontinued
       operations                      (2,917)   (6,603)  (32,310)  (27,691)
      Joint venture partners' and
       limited partnership unitholders'
       share of development profits    (1,924)   (8,835)   (9,041)  (13,934)
      Preferred unitholders            (1,432)   (1,432)   (5,727)   (8,042)
      Limited partnership unitholders   8,166       (57)    5,464    (5,158)
        Total minority interests' share
         of loss (income)               1,893   (16,927)  (41,614)  (54,825)
          (Loss) income from
           continuing operations     (197,564)   38,013   (51,348)  243,368
  Discontinued operations
     (Loss) income attributable to
     discontinued operations, net of
     minority interests                   (94)    1,504      (401)    8,879
    Development gains, net of taxes
     and minority interests                 -    49,905         -    49,905
    (Losses) gains from sale of real
     estate, net of minority
     interests                           (306)    7,777     1,887    12,108
      Total discontinued operations      (400)   59,186     1,486    70,892
        Net (loss) income            (197,964)   97,199   (49,862)  314,260
  Preferred stock dividends            (3,950)   (3,950)  (15,806)  (15,806)
  Preferred unit redemption
   issuance costs                           -         -         -    (2,930)
  Net (loss) income available to
   common stockholders              $(201,914)  $93,249  $(65,668) $295,524
  Net (loss) income per common
   share (diluted)                     $(2.07)    $0.92    $(0.67)    $2.96
  Weighted average common shares
   (diluted)                           97,584   101,121    97,404    99,808


  (1) On July 1, 2008, the partners of AMB Partners II (previously, a
      consolidated co-investment venture) contributed their interests in
      AMB Partners II to AMB Institutional Alliance Fund III in exchange
      for interests in AMB Institutional Alliance Fund III, an
      unconsolidated co-investment venture.
  (2) Includes incentive and promote distributions for 2008 of $33.0 million
      for AMB Institutional Alliance Fund III received during the quarter
      ended June 30, 2008 and of $1.0 million for the dissolution of AMB
      Erie co-investment venture received during the quarter ended March 31,
      2008.
  (3) For the quarter and year ended December 31, 2008, includes an
      impairment charge of $5.0 million for a reserve against tax assets.
  (4) Restructuring charges represent costs related to the exit of selected
      markets as well as severance expense related to the general
      reorganization of the company.
  (5) For the quarter and year ended December 31, 2008, includes $6.8
      million to write-off pursuit costs.
  (6) Includes changes in liabilities and assets associated with AMB's
      deferred compensation plan.



             CONSOLIDATED STATEMENTS OF FUNDS FROM OPERATIONS(1)
                 (in thousands, except per share data)

                                                             For the
                                     For the Quarters       Years ended
                                    ended December 31,      December 31,
                                      2008       2007      2008      2007
  Net (loss) income available to
   common stockholders              $(201,914)  $93,249  $(65,668) $295,524
    Losses (gains) from sale or
     contribution of real estate, net
     of minority interests                306    (6,370)  (21,854)  (85,544)
    Depreciation and amortization
      Total depreciation and
       amortization                    39,641    40,183   169,145   162,311
      Discontinued operations'
       depreciation                         4        49        54     1,415
      Non-real estate depreciation     (1,484)   (1,658)   (7,270)   (5,623)
    Adjustments to derive FFO from
     consolidated joint ventures
      Joint venture partners'
       minority interests (Net income)  2,917     6,603    32,310    27,691
      Limited partnership unitholders'
       minority interests (Net (loss)
       income)                         (8,166)       57    (5,464)    5,158
      Limited partnership unitholders'
       minority interests (Development
       profits)                           114     3,384     2,822     7,148
      Discontinued operations' minority
       interests (Net (loss) income)       (4)       66       217       390
      FFO attributable to minority
       interests                       (9,036)  (15,555)  (49,957)  (62,902)
    Adjustments to derive FFO from
     unconsolidated joint ventures
      AMB's share of net income        (2,762)     (181)  (17,121)   (7,467)
      AMB's share of FFO               10,015     6,083    42,742    27,391
  Funds from operations             $(170,369) $125,910   $79,956  $365,492
  FFO per common share and unit
   (diluted)                           $(1.69)    $1.20     $0.78     $3.51
  Weighted average common shares
   and units (diluted)                101,102   105,130   102,856   104,169

  Adjustments for impairment and
   restructuring charges
    Real estate impairment losses    $190,400            $190,400
      Pursuit costs and tax reserve    11,834              11,834
    AMB's share of real estate
     impairment losses from
     unconsolidated joint ventures      1,847               1,847
      Joint venture partners' minority
       interest share of real estate
       impairment losses                 (424)               (424)
    Total impairment charges(3)       203,657             203,657
      Restructuring charges(4)         13,758              13,758
  Funds from operations, excluding
   impairment and restructuring
   charges                            $47,046            $297,371

  FFO, excluding impairment and
   restructuring charges per common
   share and unit (diluted)             $0.47               $2.89


  (1) Funds From Operations ("FFO"), Funds From Operations Per Share and
      Unit  ("FFOPS") and FFO, excluding impairment and restructuring
      charges  (together with FFO and FFOPS, the "FFO Measures") 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, FFO per share and unit, or FFOPS, and FFO,
      excluding impairment and restructuring charges, 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 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 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 joint 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.

      In addition to presenting FFO as described above, AMB presents FFO,
      excluding impairment and restructuring charges. AMB calculates FFO,
      excluding impairment and restructuring charges, as FFO less impairment
      and restructuring charges and adjustments to derive AMB's share of
      impairment charges from consolidated and unconsolidated joint
      ventures.

      To the extent that the book value of a land parcel or development
      asset exceeded the fair market value of a property, based on its
      intended holding period, a non-cash impairment charge was recognized
      for the shortfall. The impairment charges were principally a result of
      increases in estimated capitalization rates and deterioration in
      market conditions that adversely impacted values. AMB also recognized
      charges to write-off pursuit costs related to development projects it
      no longer plans to commence and to establish a reserve against tax
      assets associated with the reduction of its development activities.
      The restructuring charges reflected costs associated with AMB's
      reduction in global headcount and cost structure. Although difficult
      to predict, these charges may be recurring given the uncertainty of
      the current economic climate and its adverse effects on the real
      estate markets. While not infrequent or unusual in nature, these
      charges are subject to market fluctuations that can have inconsistent
      effects on AMB's results of operations. The economics underlying these
      charges reflect market conditions in the short-term but can obscure
      the value of AMB's long-term investment decisions and strategies.
      Management believes FFO, excluding impairment and restructuring
      charges, is significant and useful to both it and its investors
      because it more appropriately reflects the value and strength of AMB's
      business model and its potential performance isolated from the
      volatility of the current economic environment. However, in addition
      to the limitations of FFO Measures generally discussed below, FFO,
      excluding impairment and restructuring charges, does not present a
      comprehensive measure of AMB's financial condition and operating
      performance. This measure is a modification of the NAREIT definition
      of FFO and should not be considered a replacement of FFO as AMB
      defines it or used as an alternative to net income or cash as defined
      by U.S. GAAP.

      AMB believes that the FFO Measures 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, the FFO Measures 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 the FFO Measures, 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 the FFO Measures 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, the FFO Measures 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, the FFO 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. The FFO Measures also do not
      consider the costs associated with capital expenditures related to
      AMB's real estate assets nor are the FFO Measures necessarily
      indicative of cash available to fund AMB's future cash requirements.
      Management compensates for the limitations of the FFO Measures by
      providing investors with financial statements prepared according to
      U.S. GAAP, along with this detailed discussion of the FFO Measures and
      a reconciliation of the FFO Measures to net income, a U.S. GAAP
      measurement.

      See Consolidated Statements of Funds from Operations for a
      reconciliation of FFO from net income.



      The following table reconciles projected FFO from projected net income
      for the year ended December 31, 2009:

                                                            2009
                                                    Low              High

  Projected net income                             $0.55             $0.65
  AMB's share of projected depreciation
   and amortization                                 1.55              1.55
  Impact of additional dilutive
   securities, other, rounding                     (0.05)            (0.05)
  Projected Funds From Operations (FFO)            $2.05             $2.15


  AMB's share of development gains
   recognized in January 2009                       0.25              0.25
  Projected FFO, excluding AMB's share
   of development gains(2)                         $1.80             $1.90


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

  (2) As Development gains are difficult to predict in the current economic
      environment, management believes Projected FFO, excluding AMB's share
      of development gains is the more appropriate and useful measure to
      reflect its assessment of AMB's projected operating performance.
  (3) Impairment charges represent the write down of assets due to
      estimated fair value being lower than carry value, as well as certain
      other charges associated with pursuit costs, tax asset reserves and
      restructuring costs.
  (4) Restructuring charges represent costs related to the exit of selected
      markets as well as severance expense related to the general
      reorganization of the company.



                      CONSOLIDATED BALANCE SHEETS(1)(2)
                           (dollars in thousands)
                                                      As of
                                       December 31, 2008   December 31, 2007
  Assets
    Investments in real estate
      Total investments in properties         $6,598,328        $6,709,545
      Accumulated depreciation and
       amortization                             (970,843)         (916,686)
        Net investments in properties          5,627,485         5,792,859
      Investments in unconsolidated joint
       ventures                                  431,322           356,194
      Properties held for contribution, net      600,852           488,339
      Properties held for divestiture, net         8,171            40,513
        Net investments in real estate         6,667,830         6,677,905
    Cash and cash equivalents and
     restricted cash                             251,231           250,416
    Accounts receivable, net                     160,266           184,270
    Other assets                                 213,982           149,812
  Total assets                                $7,293,309        $7,262,403

  Liabilities and stockholders' equity
    Secured debt                              $1,522,571        $1,471,087
    Unsecured senior debt                      1,153,926         1,003,123
    Unsecured credit facilities                  920,850           876,105
    Other debt                                   392,838           144,529
    Accounts payable and other liabilities       335,845           306,196
      Total liabilities                        4,326,030         3,801,040
  Minority interests
    Joint venture partners                       293,367           517,572
    Preferred unitholders                         77,561            77,561
    Limited partnership unitholders               80,205           102,278
      Total minority interests                   451,133           697,411
  Stockholders' equity
    Common equity                              2,292,734         2,540,540
    Preferred equity                             223,412           223,412
      Total stockholders' equity               2,516,146         2,763,952
  Total liabilities and stockholders'
   equity                                     $7,293,309        $7,262,403


  (1) During the quarter ended September 30, 2008, AMB acquired the
      remaining equity interest (approximately 42%) in G. Accion, a Mexican
      real estate company. Total assets and total liabilities include
      $174,206 and $126,003, respectively, related to G. Accion as of
      December 31, 2008.
  (2) On July 1, 2008, the partners of AMB Partners II (previously, a
      consolidated co-investment venture) contributed their interests in AMB
      Partners II to AMB Institutional Alliance Fund III in exchange for
      interests in AMB Institutional Alliance Fund III, an unconsolidated
      co-investment venture.

First Call Analyst:
FCMN Contact: [email protected]

SOURCE: AMB Property Corporation

CONTACT: Tracy A. Ward, Vice President, IR & Corporate Communications,
+1-415-733-9565, [email protected], or Rachel E. M. Bennett, Director, Media and
Public Relations, +1-415-733-9532, [email protected], both 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

Corporate Profile

Older Press Release
AMB Property Corporation(R) Provides Update for the Fourth Quarter and Year-End 2008 Results
Newer Press Release
AMB Property Corporation(R) Pre-Leases 189,000 SF Development to Johnson Controls in Monterrey, Mexico
Park Grande, Building

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