AMB Property Corporation , a leading owner, operator and developer of industrial real estate, today reported results for the second quarter 2009. Funds from operations per fully diluted share and unit ("FFOPS") was $0.34 for the second quarter of 2009, which included the recognition of $3.8 million, or $0.03 on a per-share basis, in restructuring charges, as compared to $1.05 for the same quarter in 2008. The year-over-year difference is primarily attributable to the recognition of an incentive distribution and development gains in the prior year, as well as the subsequent increase in share count related to the company's March 2009 equity offering.

Net income available to common stockholders per fully diluted share ("EPS") for the second quarter of 2009 was $0.12, as compared to $0.73 for the same quarter in 2008.

Disposition Activities

As of June 30, 2009, the company has completed property contributions and sales of $461 million, with a stabilized capitalization rate of 6.9 percent, year-to-date.

During the second quarter, the company completed sales totaling $156 million, with a 7.8 percent capitalization rate, consisting of the following:

  --  The sale of three development properties in the Americas for an
      aggregate price of $75 million; and

  --  The sale of eight properties from its U.S. operating portfolio for an
      aggregate sales price of $82 million.


"We have made excellent progress on our top two priorities through the first half of this year. As such, we have reduced our share of outstanding debt by approximately $750 million and our G&A costs by 30 percent on a run-rate basis," said Hamid R. Moghadam, chairman & CEO. "These accomplishments further enable us to navigate the current challenges in the operating environment and have positioned the company to take advantage of opportunities in the future."

Financing Activities

Demonstrating the company's continued ability to access the credit markets and manage its debt maturities, AMB has completed approximately $1.0 billion of debt repayments, repurchases and extensions, year-to-date. In the second quarter of 2009, the company repaid, repurchased and extended approximately $241 million of its overall debt, which included $183 million in bonds repurchased at a yield-to-maturity of 6.3 percent.

As of June 30, 2009, AMB's share of total debt to share of total assets was 44 percent. The company's liquidity was approximately $1.2 billion as of June 30, 2009, consisting of $1.0 billion of availability on its lines of credit and $209 million of cash.

"With our year-to-date disposition activities, equity offering and debt repurchases, we have more than enough liquidity and continue to be well-positioned to address our capital requirements into 2013," said Thomas S. Olinger, AMB's chief financial officer.

Investment Activity

During the quarter, the company commenced developments on a previously committed project in Europe and a pre-leased build-to-suit in the Americas, totaling 221,000 square feet (20,600 square meters), with a total estimated investment of $31 million.

AMB's global development pipeline at quarter end, which included investments held through unconsolidated joint ventures, totaled approximately 9.0 million square feet (836,600 square meters) scheduled for delivery through 2010, with an estimated total investment cost of $758 million. As of June 30, 2009, the company's share of the projected remaining cash to fund the completion of its development pipeline was reduced to $89 million. The development pipeline was approximately 25 percent pre-leased as of June 30, 2009, with approximately 5.8 million square feet (541,300 square meters) of leasing remaining in order to stabilize the pipeline.

Leasing Activity

During the second quarter of 2009, the company commenced leases of approximately 5.8 million square feet (573,000 square meters) in its global operating portfolio. In its development pipeline, the company leased more than 434,000 square feet (40,300 square meters).

"Second quarter lease commencements in our operating portfolio are in line with our four year average and our expectations. Lease up of our development pipeline remains a high priority in this challenging environment. While we expect it will take some time for demand to rebound, we're encouraged by the recent increased number of showings and negotiations," commented Mr. Moghadam.

Owned and Managed Portfolio Operating Results

AMB's operating portfolio was 90.5 percent occupied at June 30, 2009, with an average occupancy rate of 91.1 percent for the second quarter of 2009. Cash basis same store net operating income ("SS NOI"), without the effects of lease termination fees, decreased 4.1 percent in the second quarter, driven primarily by lower average same store occupancies and the effect of foreign currency exchange. Average rent change on renewals and rollovers in AMB's operating portfolio decreased by 2.5 percent for the quarter and remained flat for the trailing four quarters ended June 30, 2009.

2009 FFO Guidance

The company narrows its previous full-year 2009 FFO guidance to $1.41 to $1.45 per share, without recognition of gains from development activities, non-cash impairment charges or restructuring charges. The full-year EPS guidance is a loss of $0.64 to $0.68 per share.

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 charges 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 available to common stockholders 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 www.amb.com.

AMB defines net operating income ("NOI") as rental revenues, including reimbursements, less property operating expenses. NOI excludes depreciation, amortization, general and administrative expenses, restructuring charges, real estate impairment losses, development profits (losses), gains (losses) from sale or contribution of real estate interests, and interest expense. AMB believes that net income, as defined by GAAP, is the most appropriate earnings measure. However, NOI is a useful supplemental measure calculated to help investors understand AMB's operating performance, excluding the effects of costs and expenses which are not related to the performance of the assets. NOI is widely used by the real estate industry as a useful supplemental measure, which helps investors compare AMB's operating performance with that of other companies. Real estate impairment losses have been excluded in deriving NOI because AMB does not consider its impairment losses to be a property operating expense. AMB believes that the exclusion of impairment losses from NOI is a common methodology used in the real estate industry. Real estate impairment losses relate to the changing values of AMB's assets but do not reflect the current operating performance of the assets with respect to their revenues or expenses. AMB's real estate impairment losses are non-cash charges which represent the write down in the value of assets when estimated fair value over the holding period is lower than current carrying value. The impairment charges were principally a result of increases in estimated capitalization rates and deterioration in market conditions that adversely impacted underlying real estate values. Therefore, the impairment charges are not related to the current performance of AMB's real estate operations and should be excluded from its calculation of NOI.

AMB considers cash-basis same store net operating income ("SS NOI") to be a useful supplemental measure of our operating performance for properties that are considered part of the same store pool. AMB defines SS NOI as NOI on a same store basis excluding straight line rents and amortization of lease intangibles. Same store pool includes all properties that are owned as of the end of both the current and prior year reporting periods and excludes 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, 2007. AMB 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, AMB believes that SS NOI helps investors compare the operating performance of AMB's real estate as compared to 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 our liquidity or operating performance. SS NOI also does not reflect general and administrative expenses, interest expenses, real estate impairment losses, depreciation and amortization costs, capital expenditures and leasing costs, or trends in development and construction activities that could materially impact our results from operations. Further, AMB'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. A reconciliation from net income to SS NOI is provided below and published in AMB's quarterly supplemental analyst package, available on AMB's website at www.amb.com.

                                          For the          For the Six
                                       Quarters Ended      Months Ended
                                         June 30,           June 30,
                                     ----------------   -----------------
                                      2009     2008      2009      2008
                                     -------   ------   -------   -------
  Net income (loss)                  $29,034  $88,030  $(94,322) $157,435
  Private capital income              (7,795) (41,413)  (19,490)  (51,336)
  Depreciation and amortization       38,724   39,730    80,460    80,214
  Real estate impairment losses            -        -   161,067         -
  General and administrative and
   fund costs                         25,685   34,128    57,193    69,475
  Restructuring charges                3,824        -     3,824         -
  Total other income and expenses     22,134     (390)   27,943   (14,536)
  Total discontinued operations      (14,544)  (5,167)  (18,020)  (10,621)
                                     -------   ------   -------   -------
  NOI                                 97,062  114,918   198,655   230,631

  Less non same-store NOI            (11,487) (26,839)  (24,030)  (51,783)
  Less non cash adjustments(1)           844     (607)      853    (1,794)
                                     -------   ------   -------   -------
  Cash-basis same-store NOI          $86,419  $87,472  $175,478  $177,054
                                     =======  =======  ========  ========

  (1) Non-cash adjustments include straight line rents and amortization of
      lease intangibles for the same store pool only.

"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 currently intends to hold for the long-term.

Conference Call Information

The company will host a conference call to discuss second quarter 2009 results on Tuesday, July 28, 2009 at 10:00 AM PDT / 1:00 PM EDT. Stockholders and interested parties may listen to a live broadcast of the conference call by dialing 877 264 7865 (from the U.S. and Canada) or +1 706 643 7823 (from all other countries) and using reservation code 16501688. A webcast can be accessed through the company's website at www.amb.com in the Investor Relations section.

If you are unable to listen to the live conference call, a telephone and webcast replay will be available through the company's website at www.amb.com in the Investor Relations section after 12:00 PM PDT / 3:00 PM EDT on Tuesday, July 28, 2009 until 5:00 PM PDT / 8:00 PM EDT on Friday, August 28, 2009 at 800 642 1687 (from the U.S. and Canada) or +1 706 645 9291 (from all other countries), with the reservation code 16501688.

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

AMB Property Corporation 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 June 30, 2009, AMB owned, or had investments in, on a consolidated basis or through unconsolidated joint ventures, properties and development projects expected to total approximately 156.9 million square feet (14.6 million square meters) in 48 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 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 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 our development projects (including completion, timing of stabilization and delivery, our share of remaining funding required, our ability to lease such projects, square feet at stabilization or completion, costs and total investment amounts), our ability to address our future capital commitments and reduce our cost structure, our ability to meet our forecasts (including our FFO, EPS and operating guidance) and business goals, our ability to weather the economic downturn and grow our business, and projected near-term capitalization rates, 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 or failure to lease at all or on expected terms, decreases in real estate values and impairment losses, our failure to obtain, renew or extend financing or re-financing, risks related to debt and equity security financings (including dilution risk), our failure to divest properties we have contracted to sell or to timely reinvest proceeds from any divestitures, failure to maintain our current credit agency ratings or comply with our debt covenants, international currency and hedging risks, financial market fluctuations, changes in general economic conditions, global trade or in the real estate sector, inflation risks, a downturn in the U.S., California or global economy, increased interest rates and operating costs or greater than expected capital expenditures, risks related to suspending, reducing or changing our dividends, our failure to contribute properties to our co-investment ventures, risks related to our obligations in the event of certain defaults under co-investment ventures and other debt, difficulties in identifying properties to acquire and in effecting acquisitions, our failure to successfully integrate acquired properties and operations, risks and uncertainties affecting property development, value-added conversions, redevelopment 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, environmental uncertainties, risks related to natural disasters, changes in real estate and zoning laws, 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, 2008.

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

                                    For the Quarters    For the Six Months
                                      Ended June 30,      Ended June 30,
                                    ----------------   -------------------
                                     2009      2008       2009      2008
                                   --------  --------  ---------  --------
  Revenues
    Rental revenues(1)             $139,575  $161,127   $289,860  $321,323
    Private capital revenues          7,795    41,413     19,490    51,336
                                   --------  --------  ---------  --------
      Total revenues                147,370   202,540    309,350   372,659
                                   --------  --------  ---------  --------
  Costs and expenses
    Property operating costs(1)     (42,513)  (46,209)   (91,205)  (90,692)
    Depreciation and
     amortization                   (38,724)  (39,730)   (80,460)  (80,214)
    General and administrative      (25,363)  (33,744)   (56,609)  (68,869)
    Restructuring charges            (3,824)        -     (3,824)        -
    Fund costs                         (322)     (384)      (584)     (606)
    Real estate impairment
     losses                               -         -   (161,067)        -
    Other expenses(2)                (5,684)   (1,422)    (5,022)   (1,330)
                                   --------  --------  ---------  --------
      Total costs and
       expenses                    (116,430) (121,489)  (398,771) (241,711)
                                   --------  --------  ---------  --------
  Other income and expenses
    Development profits, net
     of taxes                             -    30,402     33,286    48,222
    Gains from sale or
     contribution of real
     estate interests, net                -         -          -    19,967
    Equity in earnings of
     unconsolidated joint
     ventures, net                    4,284     6,059      4,250     8,987
    Other income(2)                   8,595     1,883      1,529     6,293
    Interest expense, including
     amortization                   (29,329)  (36,532)   (61,986)  (67,603)
                                   --------  --------  ---------  --------
      Total other income and
       expenses, net                (16,450)    1,812    (22,921)   15,866
                                   --------  --------  ---------  --------
        Income (loss)
         from continuing
         operations                  14,490    82,863   (112,342)  146,814
                                   --------  --------  ---------  --------
  Discontinued operations
    Income (loss) attributable
     to discontinued
     operations                       4,454     4,008    (10,684)    8,074
    Gains from sale of real
     estate interests, net
     of taxes                        10,090     1,159     28,704     2,547
                                   --------  --------  ---------  --------
      Total discontinued
       operations                    14,544     5,167     18,020    10,621
                                   --------  --------  ---------  --------
        Net income (loss)            29,034    88,030    (94,322)  157,435
  Noncontrolling interests'
   share of net (income) loss
    Joint venture partners'
     share of net (income) loss      (4,949)   (6,424)    (2,771)  (25,687)
    Joint venture partners'
     and limited partnership
     unitholders' share of
     development profits                  -    (1,371)    (1,108)   (6,113)
    Preferred unitholders            (1,432)   (1,432)    (2,864)   (2,864)
    Limited partnership
     unitholders                     (1,279)   (1,784)     4,041    (2,820)
                                   --------  --------  ---------  --------
      Total noncontrolling
       interests' share
       of net (income) loss          (7,660)  (11,011)    (2,702)  (37,484)
                                   --------  --------  ---------  --------
        Net income (loss)
         attributable to AMB
         Property Corporation        21,374    77,019    (97,024)  119,951
    Preferred stock dividends        (3,952)   (3,952)    (7,904)   (7,904)
    Allocation to participating
     securities(3)                     (260)     (666)      (521)   (1,018)
                                   --------  --------  ---------  --------
  Net income (loss) available
   to common stockholders           $17,162   $72,401  $(105,449) $111,029
                                   ========  ========  =========  ========
  Net income (loss) per common
   share (diluted)                    $0.12     $0.73     $(0.86)    $1.12
                                   ========  ========  =========  ========
    Weighted average common
     shares (diluted)               145,380    99,269    121,991    99,482
                                   ========  ========  =========  ========

  (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. Pro forma rental revenues for the three and six
      months ended June 30, 2008 would have been $141,235 and $281,806,
      respectively, and pro forma operating expenses for the three and six
      months ended June 30, 2008 would have been $41,387 and $80,619,
      respectively, if AMB Partners II had been deconsolidated as of
      January 1, 2008.

  (2) Includes changes in liabilities and assets associated with AMB's
      deferred compensation plan for the three and six months ended
      June 30, 2009 of $5,462 and $4,179, respectively.

  (3) Represents net income (loss) attributable to AMB Property Corporation,
      net of preferred stock dividends, allocated to outstanding unvested
      restricted shares. For the three and six months ended June 30, 2009,
      there were 930 unvested restricted shares outstanding. For the three
      and six months ended June 30, 2008, there were 893 unvested restricted
      shares outstanding.



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

                                  For the Quarters   For the Six Months
                                   Ended June 30,      Ended June 30,
                                  -----------------   ------------------
                                   2009      2008       2009      2008
                                  -------  --------   --------  --------
  Net income (loss) available
   to common stockholders         $17,162   $72,401  $(105,449) $111,029
    Gains from sale or
     contribution of
     real estate interests,
     net of taxes                 (10,090)   (1,159)   (28,704)  (22,514)
    Depreciation and
     amortization
      Total depreciation and
       amortization                38,724    39,730     80,460    80,214
      Discontinued operations'
       depreciation                   592     1,162      2,315     2,351
      Non-real estate
       depreciation                (1,953)   (2,155)    (4,090)   (3,789)
    Adjustments to derive
     FFO from consolidated
     joint ventures
      Joint venture partners'
       noncontrolling
       interests (Net income
       (loss))                      4,949     6,424      2,771    25,687
      Limited partnership
       unitholders'
       noncontrolling
       interests (Net
       income (loss))               1,279     1,784     (4,041)    2,820
      Limited partnership
       unitholders'
       noncontrolling
       interests
       (Development profits)            -     1,175      1,108     1,704
      FFO attributable
       to noncontrolling
       interests                   (7,151)  (16,417)   (10,863)  (32,993)
    Adjustments to derive
     FFO from unconsolidated
     joint ventures
      AMB's share of net
       income                      (4,284)   (6,059)    (4,250)   (8,987)
      AMB's share of FFO           11,786    12,276     19,310    21,138
    Allocation to participating
     securities(2)                    (66)     (335)         -      (596)
                                  -------  --------   --------  --------
  Funds from operations           $50,948  $108,827   $(51,433) $176,064
                                  =======  ========   ========  ========
  FFO per common share and
   unit (diluted)                   $0.34     $1.05     $(0.41)    $1.70
                                  =======  ========   ========  ========
  Weighted average common
   shares and units (diluted)     148,815   103,241    125,427   103,457
                                  =======  ========   ========  ========

  Adjustments for impairment
   and restructuring charges
    Real estate impairment
     losses                            $-        $-   $161,067        $-
    Discontinued operations'
     real estate impairment
     losses                             -         -     20,786         -
    AMB's share of real
     estate impairment
     losses from
     unconsolidated
     joint ventures                     -         -      4,611         -
    Joint venture partners'
     noncontrolling
     interest share of
     real estate
     impairment losses                  -         -     (4,876)        -
                                  -------  --------   --------  --------
      AMB's share of total
       impairment charges               -         -    181,588         -
      Restructuring charges         3,824         -      3,824         -
    Allocation to
     participating
     securities(2)                    (24)        -       (497)        -
                                  -------  --------   --------  --------
  Funds from operations,
   excluding impairment
   and restructuring
   charges                         54,748   108,827    133,482   176,064
                                  =======  ========   ========  ========
  FFO, excluding
   impairment and
   restructuring charges
   per common share and
   unit (diluted)                   $0.37     $1.05      $1.06     $1.70
                                  =======  ========   ========  ========

  Weighted average
   common shares and
   units (diluted)                148,815   103,241    125,451   103,457
                                  =======  ========   ========  ========

  (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 available to common
      stockholders, 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.

      Unless stated otherwise, 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. 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 available to common stockholders, 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 available to common
      stockholders, a U.S. GAAP measurement.

      See Consolidated Statements of Funds from Operations for a
      reconciliation of FFO from net income available to common
      stockholders.

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



                                                           2009
                                                      --------------
                                                        Low    High
                                                      ------  ------

  Projected net loss available to common stockholders $(0.68) $(0.64)
  AMB's share of projected depreciation
   and amortization                                     1.20    1.20
  AMB's share of projected gains on disposition of
   operating properties recognized to date             (0.18)  (0.18)
  Impact of additional dilutive securities,
   other, rounding                                     (0.04)  (0.04)
                                                      ------  ------
  Projected Funds From Operations (FFO)                $0.30   $0.34
                                                      ======  ======


  AMB's share of non-cash impairment charges            1.32    1.32
  Restructuring charges                                 0.03    0.03
  AMB's share of development gains recognized to date  (0.24)  (0.24)
                                                      ------  ------
  Projected FFO, excluding AMB's share of non-cash
   impairment charges, restructuring charges and
   development gains(3)                                $1.41   $1.45
                                                      ======  ======



      Amounts are expressed per share, except FFO and FFO, excluding AMB's
      share of non-cash impairment charges, restructuring charges and
      development gains, which is expressed per share and unit.

  (2) Represents amount of FFO allocated to outstanding unvested restricted
      shares. For the three and six months ended June 30, 2009, there were
      930 unvested restricted shares. For the three and six months ended
      June 30, 2008, there were 893 unvested restricted shares.

  (3) As development gains are difficult to predict in the current economic
      environment, management believes Projected FFO, excluding AMB's share
      of non-cash impairment charges, restructuring charges and development
      gains is the more appropriate and useful measure to reflect its
      assessment of AMB's projected operating performance.



                         CONSOLIDATED BALANCE SHEETS
                           (dollars in thousands)

                                                          As of
                                           --------------------------------
                                           June 30, 2009  December 31, 2008
                                           -------------  -----------------
  Assets
    Investments in real estate
      Total investments in properties       $5,835,793         $6,603,856
      Accumulated depreciation and
       amortization                         (1,014,490)          (970,737)
                                            ----------         ----------
          Net investments in properties      4,821,303          5,633,119
      Investments in unconsolidated
       joint ventures                          434,008            431,322
      Properties held for sale or
       contribution, net                     1,072,543            609,023
                                            ----------         ----------
          Net investments in real
           estate                            6,327,854          6,673,464
    Cash and cash equivalents and
     restricted cash                           209,345            251,231
    Accounts receivable, net                   142,288            160,528
    Other assets                               205,761            216,425
                                            ----------         ----------
  Total assets                              $6,885,248         $7,301,648
                                            ==========         ==========

  Liabilities and equity
    Liabilities
      Secured debt                          $1,383,862         $1,522,571
      Unsecured senior debt                    871,369          1,153,926
      Unsecured credit facilities              594,942            920,850
      Other debt                               392,113            392,838
      Accounts payable and other
       liabilities                             351,049            345,259
                                            ----------         ----------
            Total liabilities                3,593,335          4,335,444
    Equity
      Stockholders' equity
        Common equity                        2,647,890          2,291,695
        Preferred equity                       223,412            223,412
                                            ----------         ----------
          Total stockholders' equity         2,871,302          2,515,107
      Noncontrolling interests
        Joint venture partners                 280,714            293,367
        Preferred unitholders                   77,561             77,561
        Limited partnership unitholders         62,336             80,169
                                            ----------         ----------
          Total noncontrolling interests       420,611            451,097
                                            ----------         ----------
            Total equity                     3,291,913          2,966,204
                                            ----------         ----------
  Total liabilities and equity              $6,885,248         $7,301,648
                                            ==========         ==========

First Call Analyst: Robinson, Victoria
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 &
Public Relations, +1-415-733-9532, [email protected], both of AMB

Media contact & resources

Jennifer Nelson

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

Corporate Profile

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