Prologis, Inc. - FORM 8-K - EX-99.1

Attached files

file	filename
8-K - FORM 8-K - Prologis, Inc.	f58043e8vk.htm

Exhibit 99.1

Supplemental Analyst Package 2010 Fourth Quarter Earnings Conference Call February 3, 2011


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Company Profile

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 December 31, 2010, AMB owned or had investments in, on a consolidated basis or through unconsolidated joint ventures, properties and development projects expected to total approximately 159.6 million square feet (14.8 million square meters) in 49 markets within 15 countries.

AMB invests in properties located predominantly in the infill submarkets of its targeted markets. AMB’s portfolio is comprised primarily of High Throughput Distribution^{^®}facilities built for efficiency and located near airports, seaports, ground transportation systems, and population concentrations.

Through its private capital group, AMB provides real estate investment, portfolio management and reporting services to co-investment ventures and clients. Private capital revenue consists of asset management distributions and fees, acquisition and development fees as well as incentive distributions.

The Americas

Europe

Asia

Operating Portfolio⁽¹⁾

123.2 msf

Operating Portfolio⁽¹⁾

13.5 msf

Operating Portfolio⁽¹⁾

13.9 msf

Development Portfolio⁽²⁾⁽³⁾

4.0 msf

Development Portfolio⁽²⁾⁽³⁾

1.9 msf

Development Portfolio⁽²⁾⁽³⁾

3.1 msf

Land Inventory⁽³⁾

2,296 acres

Land Inventory⁽³⁾

227 acres

Land Inventory⁽³⁾

118 acres


(1)		The operating portfolio includes the owned and managed portfolio and operating properties held through AMB’s investments in unconsolidated joint ventures that it does not manage (excluded from the owned and managed portfolio), value-added acquisitions and the location of AMB’s global headquarters.
(2)		Includes pre-stabilized development properties.
(3)		Includes investments held through unconsolidated joint ventures.


		© 2011 AMB Property Corporation \| 1
		© 2011 AMB Property Corporation \| 1


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Highlights (dollars in thousands, except per share data)


	For the Quarters Ended December 31,								For the Years Ended December 31,
	2010		2009			% Change			2010		2009			% Change
Revenues	$	165,058	$	159,667			3.4	%	$	633,500	$	618,424			2.4	%
Adjusted EBITDA⁽¹⁾		111,621		100,478			11.1	%		427,446		493,400			(13.4	%)
Net income (loss) available to common stockholders		4,865		(7,565	)		164.3	%		9,967		(50,077	)		119.9	%
FFO, as adjusted⁽¹⁾⁽²⁾		55,988		48,131			16.3	%		210,187		288,841			(27.2	%)
Core FFO, as adjusted⁽¹⁾⁽²⁾		54,975		47,943			14.7	%		203,416		201,210			1.1	%
Per diluted share and unit
EPS	$	0.03	$	(0.05	)		160.0	%	$	0.06	$	(0.37	)		116.2	%
FFO, as adjusted⁽¹⁾⁽²⁾		0.33		0.32			3.1	%		1.27		2.09			(39.2	%)
Core FFO, as adjusted⁽¹⁾⁽²⁾		0.32		0.32			0.0	%		1.22		1.46			(16.4	%)
Dividends per common share		0.28		0.28			0.0	%		1.12		1.12			0.0	%


Financial⁽³⁾		• Completed $1.9 billion in capital markets transactions in the fourth quarter and approximately $4.0 billion in 2010 • Approximately $1.6 billion in liquidity; consisting of approximately $1.4 billion of availability on lines of credit and more than $260 million of unrestricted cash and cash equivalents


Operations⁽³⁾		• 93.7% occupancy at the end of the fourth quarter; 92.6% fourth quarter average occupancy; 91.2% average occupancy for the full year • 0.9% fourth quarter cash basis same store NOI, marking the first positive SS NOI since the fourth quarter of 2008; (3.2)% for the full year • Commenced 7.7 msf of leases in the fourth quarter; totaling more than 32.0 msf for the full year • (11.6)% fourth quarter rent changes on renewals and rollover; (11.9)% for the trailing four quarters


Capital Deployment⁽³⁾		• Leased 1.2 msf in the development portfolio during the fourth quarter, of which 680,000 sf was in the static 12/31/09 development portfolio, and more than 5.7 msf for the full year • Deployed approximately $230.2 million in the fourth quarter ($429.3 million in 2010), including the acquisition of seven⁽⁴⁾properties for $144.2 million (16 properties for $343.3 million in 2010) and an $86.0 million joint venture mortgage debt investment • Commenced $32.9 million of development in the fourth quarter; $102.9 million for the full year in China, Brazil and Mexico, of which 44% is pre-leased • Completed $56.0 million in dispositions in the fourth quarter; $153.3 million for the full year


Private Capital		• Raised $355.1 million in new third-party equity in the fourth quarter; totaling $781.4 million in 2010 marking a record year of fundraising in our 27-year history • Formed AMB Brazil Logistics Partners Fund I with an overall joint venture equity commitment of R$720 million (approximately USD $434 million using the exchange rate in effect on December 31, 2010); one of two new funds created in 2010 • $ 100 million investment in October 2010 by AMB consisting of $50 million in AMB U.S. Logistics Fund and $50 million in AMB Europe Logistics Fund; totaling $300 million invested by AMB in 2010


(1)		See reporting definitions and supplemental financial measures disclosures.
(2)		See page 5 for a reconciliation to derive FFO, as adjusted and Core FFO, as adjusted.
(3)		Owned and managed portfolio.
(4)		Includes value-added acquisitions.


		© 2011 AMB Property Corporation \| 2
		© 2011 AMB Property Corporation \| 2


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Overview of Funds From Operations, as adjusted⁽¹⁾

Funds From Operations, as adjusted⁽¹⁾⁽²⁾

(per diluted common share and unit)

Estimated FFO, as adjusted, by Business⁽¹⁾⁽²⁾

(per diluted common share and unit)


	For the Years Ended December 31,
	2010			2009			2008
Real estate operations, net of unallocated overhead	$	1.07		$	1.19		$	1.53
Overhead reallocation		0.29			0.32			0.46

Real estate operations FFO, as adjusted	$	1.36		$	1.51		$	1.99
% of reported FFO, as adjusted		107.1	%		72.2	%		68.6	%
Development Profits		0.02			0.63			0.72
Overhead allocation		(0.19	)		(0.21	)		(0.33	)

Development FFO, as adjusted	$	(0.17	)	$	0.42		$	0.39
% of reported FFO, as adjusted		(13.4	%)		20.1	%		13.5	%
Private Capital Revenues		0.18			0.27			0.65
Overhead allocation		(0.10	)		(0.11	)		(0.13	)

Private Capital FFO, as adjusted	$	0.08		$	0.16		$	0.52
% of reported FFO, as adjusted		6.3	%		7.7	%		17.9	%

Total FFO, as adjusted	$	1.27		$	2.09		$	2.90

Development Profits⁽¹⁾⁽³⁾

(per diluted common share and unit)

Private Capital Revenue

(per diluted common share and unit)


(1)		See reporting definitions and supplemental financial measures disclosures.
(2)		See page 5 for a reconciliation to derive FFO, as adjusted, for the years ended December 31, 2010 and 2009. For a reconciliation of FFO, as adjusted from net income for the year ended December 31, 2008, please refer to AMB’s Supplemental Analyst Package for the fourth quarter of 2009. As a reconciliation of FFO, as adjusted from FFO for the years ended December 31, 2007 and 2006 as presented in AMB’s Supplemental Analyst Package for the fourth quarter of 2007, the Company has made adjusting increases of $0.3 million for loss on early extinguishment of debt in 2007 and increases of $2.9 million and $1.1 million for preferred unit redemption premiums in 2007 and 2006, respectively.
(3)		Excludes co-investment venture partners’ share of development gains.


		© 2011 AMB Property Corporation \| 3
		© 2011 AMB Property Corporation \| 3


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Consolidated Statements of Operations (in thousands, except per share data)


	For the Quarters Ended December 31,						For the Years Ended December 31,
	2010			2009			2010			2009
Revenues
Rental revenues	$	156,057		$	149,052		$	602,640		$	580,411
Private capital revenues		9,001			10,615			30,860			38,013

Total revenues		165,058			159,667			633,500			618,424

Costs and expenses
Property operating costs		(46,459	)		(48,383	)		(188,710	)		(183,271	)
Depreciation and amortization		(51,353	)		(50,718	)		(196,636	)		(175,334	)
General and administrative		(33,605	)		(31,131	)		(124,364	)		(115,342	)
Restructuring charges		—			(2,544	)		(4,874	)		(6,368	)
Fund costs		(178	)		(238	)		(791	)		(1,062	)
Real estate impairment losses		—			—			—			(172,059	)
Other expenses⁽¹⁾		(1,946	)		(2,176	)		(3,197	)		(8,681	)

Total costs and expenses		(133,541	)		(135,190	)		(518,572	)		(662,117	)

Other income and expenses
Development profits, net of taxes		1,020			1,368			6,739			35,874
Equity in earnings of unconsolidated joint ventures, net		4,956			3,824			17,372			11,331
Other income (expense)⁽¹⁾		1,507			(323	)		3,543			3,440
Interest expense, including amortization		(33,036	)		(30,772	)		(130,338	)		(118,867	)
Loss on early extinguishment of debt		(353	)		(11,614	)		(2,892	)		(12,267	)

Total other income and expenses, net		(25,906	)		(37,517	)		(105,576	)		(80,489	)

Income (loss) from continuing operations		5,611			(13,040	)		9,352			(124,182	)
Discontinued operations
Income attributable to discontinued operations		1,193			1,358			3,994			4,502
Development profits, net of taxes		—			—			—			53,002
Gains from sale of real estate interests, net of taxes		4,505			1,580			20,248			38,718

Total discontinued operations		5,698			2,938			24,242			96,222

Net income (loss)		11,309			(10,102	)		33,594			(27,960	)
Noncontrolling interests’ share of net income (loss)
Joint venture partners’ share of net income		(2,058	)		(2,234	)		(6,278	)		(11,063	)
Joint venture partners’ and limited partnership unitholders’ share of development profits, net of taxes		(16	)		(942	)		(109	)		(3,308	)
Preferred unitholders		—			—			—			(4,295	)
Limited partnership unitholders		(83	)		161			(88	)		3,625

Total noncontrolling interests’ share of net income (loss)		(2,157	)		(3,015	)		(6,475	)		(15,041	)

Net income (loss) attributable to AMB Property Corporation		9,152			(13,117	)		27,119			(43,001	)
Preferred stock dividends		(3,950	)		(3,950	)		(15,806	)		(15,806	)
Preferred unit redemption discount		—			9,759			—			9,759
Allocation to participating securities⁽²⁾		(337	)		(257	)		(1,346	)		(1,029	)

Net income (loss) available to common stockholders	$	4,865		$	(7,565	)	$	9,967		$	(50,077	)

Net income (loss) per common share (diluted)	$	0.03		$	(0.05	)	$	0.06		$	(0.37	)

Weighted average common shares (diluted)		167,311			147,047			161,988			134,321


(1)		Includes changes in liabilities and assets associated with AMB’s deferred compensation plan for the three and twelve months ended December 31, 2010 of $1,069 and $1,460, respectively, and for the three and twelve months ended December 31, 2009 of $969 and $7,823, respectively.
(2)		See reporting definitions and supplemental financial measures disclosures.


		© 2011 AMB Property Corporation \| 4
		© 2011 AMB Property Corporation \| 4


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Consolidated Statements of Funds from Operations, as adjusted⁽¹⁾ (in thousands, except per share data)


	For the Quarters Ended December 31,						For the Years Ended December 31,
	2010			2009			2010			2009
Net income (loss) available to common stockholders	$	4,865		$	(7,565	)	$	9,967		$	(50,077	)
Gains from sale or contribution of real estate interests, net of taxes		(4,505	)		(1,580	)		(20,248	)		(38,718	)
Depreciation and amortization
Total depreciation and amortization		51,353			50,718			196,636			175,334
Discontinued operations’ depreciation		69			1,208			3,447			6,602
Non-real estate depreciation		(1,906	)		(2,576	)		(8,432	)		(8,593	)
Adjustment for depreciation on development profits		—			—			(1,546	)		—
Adjustments to derive FFO, as adjusted from noncontrolling interests
Joint venture partners’ noncontrolling interests (Net income)		2,058			2,234			6,278			11,063
Limited partnership unitholders’ noncontrolling interests (Net income (loss))		83			(161	)		88			(3,625	)
Limited partnership unitholders’ noncontrolling interests (Development profits)		16			11			133			2,377
FFO, as adjusted attributable to joint venture partners’ noncontrolling interests		(7,454	)		(7,245	)		(28,251	)		(31,571	)
Adjustments to derive FFO, as adjusted from unconsolidated joint ventures
AMB’s share of net income		(4,956	)		(3,824	)		(17,372	)		(11,331	)
AMB’s share of FFO, as adjusted		16,070			12,549			61,903			47,549
Adjustments for impairments, restructuring charges and debt extinguishment
Real estate impairment losses		—			—			—			172,059
Discontinued operations’ real estate impairment losses		—			—			—			9,794
Restructuring charges		—			2,544			4,874			6,368
Loss on early extinguishment of debt		353			11,614			2,892			12,267
Preferred unit redemption discount		—			(9,759	)		—			(9,759	)
Allocation to participating securities⁽¹⁾		(58	)		(37	)		(182	)		(898	)

Funds from operations, as adjusted⁽¹⁾	$	55,988		$	48,131		$	210,187		$	288,841

FFO, as adjusted per common share and unit (diluted)	$	0.33		$	0.32		$	1.27		$	2.09

Weighted average common shares and units (diluted)		171,752			150,993			166,127			137,904


Core Funds From Operations, as adjusted
Funds from operations, as adjusted	$	55,988		$	48,131		$	210,187		$	288,841
Development profits, net of taxes		(1,020	)		(1,368	)		(6,739	)		(88,876	)
Joint venture partners’ and limited partnership unitholders’ share of development profits, net of taxes		16			942			61			3,308
Limited partnership unitholders’ noncontrolling interests (Development profits)		(16	)		(11	)		(133	)		(2,377	)
AMB’s share of development gains from unconsolidated joint ventures		—			248			(9	)		(271	)
Allocation to participating securities⁽¹⁾		7			1			49			585

Core Funds From Operations, as adjusted⁽¹⁾	$	54,975		$	47,943		$	203,416		$	201,210

Core FFO, as adjusted per common share and unit (diluted)	$	0.32		$	0.32		$	1.22		$	1.46

Weighted average common shares and units (diluted)		171,752			150,993			166,127			137,904


(1)		See reporting definitions and supplemental financial measures disclosures.


		© 2011 AMB Property Corporation \| 5
		© 2011 AMB Property Corporation \| 5


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Consolidated Balance Sheets (dollars in thousands)


	As of
	December 31, 2010			December 31, 2009
Assets
Investments in real estate
Total investments in properties	$	6,906,176		$	6,708,660
Accumulated depreciation and amortization		(1,268,093	)		(1,113,808	)

Net investments in properties		5,638,083			5,594,852
Investments in unconsolidated joint ventures		883,241			462,130
Properties held for sale or contribution, net		242,098			214,426

Net investments in real estate		6,763,422			6,271,408
Cash and cash equivalents and restricted cash		228,415			206,077
Accounts receivable, net		167,735			155,958
Other assets		213,323			208,515

Total assets	$	7,372,895		$	6,841,958


Liabilities and equity
Liabilities
Secured debt	$	962,434		$	1,096,554
Unsecured senior debt		1,685,956			1,155,529
Unsecured credit facilities		268,933			477,630
Other debt		413,976			482,883
Accounts payable and other liabilities		339,474			338,042

Total liabilities		3,670,773			3,550,638
Equity
Stockholders’ equity
Common equity		3,097,311			2,716,604
Preferred equity		223,412			223,412

Total stockholders’ equity		3,320,723			2,940,016
Noncontrolling interests
Joint venture partners		325,590			289,909
Limited partnership unitholders		55,809			61,395

Total noncontrolling interests		381,399			351,304

Total equity		3,702,122			3,291,320

Total liabilities and equity	$	7,372,895		$	6,841,958


		© 2011 AMB Property Corporation \| 6
		© 2011 AMB Property Corporation \| 6


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Supplemental Cash Flow Information (dollars in thousands)


	For the Quarters Ended						For the Years Ended
	December 31,						December 31,
	2010			2009			2010			2009
AMB’s Owned and Managed Portfolio:⁽¹⁾⁽²⁾
Supplemental Information:
Straight-line rents and amortization of lease intangibles	$	9,261		$	9,040		$	31,471		$	29,181
AMB’s share of straight-line rents and amortization of lease intangibles	$	6,234		$	4,599		$	19,531		$	14,099
Gross lease termination fees	$	2,231		$	581		$	5,561		$	6,067
Net lease termination fees⁽³⁾	$	1,820		$	407		$	4,414		$	4,324
AMB’s share of net lease termination fees	$	639		$	232		$	3,021		$	2,076

Recurring capital expenditures:
Tenant improvements	$	5,931		$	6,488		$	30,167		$	20,185
Lease commissions and other lease costs		7,273			6,936			32,802			26,452
Building improvements		10,106			11,796			34,219			25,415

Sub-total		23,310			25,220			97,188			72,052
Co-investment venture partners’ share of capital expenditures		(8,178	)		(8,728	)		(29,871	)		(26,219	)

AMB’s share of recurring capital expenditures	$	15,132		$	16,492		$	67,317		$	45,833


AMB’s Consolidated Portfolio:
Supplemental Information:
Straight-line rents and amortization of lease intangibles	$	5,253		$	3,628		$	16,305		$	10,531
AMB’s share of straight-line rents and amortization of lease intangibles	$	4,852		$	3,407		$	14,754		$	10,279
Gross lease termination fees	$	272		$	320		$	3,236		$	3,134
Net lease termination fees⁽³⁾	$	—		$	195		$	2,322		$	1,792
AMB’s share of net lease termination fees	$	—		$	187		$	2,293		$	1,509

Recurring capital expenditures:
Tenant improvements	$	3,886		$	4,032		$	21,405		$	11,969
Lease commissions and other lease costs		4,455			4,038			22,040			17,312
Building improvements		5,310			9,759			21,869			19,872

Sub-total		13,651			17,829			65,314			49,153
Co-investment venture partners’ share of capital expenditures		(1,559	)		(2,993	)		(7,830	)		(7,661	)

AMB’s share of recurring capital expenditures	$	12,092		$	14,836		$	57,484		$	41,492


(1)		See Reporting Definitions.
(2)		See Supplemental Financial Measures Disclosure for a discussion of owned and managed supplemental cash flow information.
(3)		Net lease termination fees are defined as gross lease termination fees less the associated straight-line rent balance.


		© 2011 AMB Property Corporation \| 7
		© 2011 AMB Property Corporation \| 7


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Operations Overview⁽¹⁾ (dollars in thousands)

Cash-basis Same Store NOI Growth Without Lease Termination Fees⁽²⁾

Average Occupancy⁽²⁾

Rent Change on Renewals and Rollovers⁽²⁾⁽³⁾

Lease Expirations as % of Annualized Base Rent (ABR)⁽²⁾

Top Customers


		ABR		% of ABR			Sq Ft
1	Deutsche Post World Net (DHL)	$	28,197		3.1	%		3,106,516
2	United States Government		20,349		2.2			1,357,525
3	Sagawa Express		19,968		2.2			1,172,253
4	Nippon Express		15,258		1.7			1,029,170
5	FedEx Corporation		14,369		1.6			1,291,035
6	Kuehne + Nagel Inc.		12,807		1.4			2,044,892
7	Panalpina		10,992		1.2			1,703,945
8	Caterpillar Logistics Services		8,950		1.0			543,039
9	Panasonic Logistics		7,992		0.9			620,273
10	BAX Global/Schenker/Deutsche Bahn		7,697		0.8			811,450

	Top 10 Customers	$	146,579		16.1	%		13,680,098

	Top 11-20 Customers		54,982		5.9			7,308,110

	Top 20 Customers	$	201,561		22.0	%		20,988,208


(1)		Owned and managed portfolio, not including value-added acquisitions.
(2)		See reporting definitions and supplemental financial measures disclosures.
(3)		Represents trailing four quarter data.


		© 2011 AMB Property Corporation \| 8
		© 2011 AMB Property Corporation \| 8


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Operating Statistics


	Owned & Managed Portfolio⁽¹⁾⁽²⁾						Same Store Pool⁽¹⁾⁽²⁾
	Quarter Ended			Quarter Ended			Quarter Ended			Quarter Ended
	December 31, 2010			September 30, 2010			December 31, 2010			September 30, 2010


Square feet		141,879,530			139,822,998			126,035,571			127,051,011
Percentage of owned & managed square feet								88.8	%		90.9	%

Occupancy
Occupancy percentage at period end⁽²⁾		93.7	%		92.6	%		93.2	%		92.1	%
Occupancy percentage at period end (prior year)		91.2	%		91.0	%		90.9	%		91.4	%

Average occupancy percentage⁽²⁾		92.6	%		91.7	%		92.2	%		91.3	%
Average occupancy percentage (prior year)		90.7	%		90.4	%		90.5	%		90.3	%

Weighted average lease terms (years)
Original		6.2			6.2			6.2			6.2
Remaining		3.3			3.4			3.2			3.2

	Owned & Managed Portfolio⁽¹⁾⁽²⁾						Same Store Pool⁽¹⁾⁽²⁾
	Trailing Four Quarters			Trailing Four Quarters			Trailing Four Quarters			Trailing Four Quarters
	December 31, 2010			September 30, 2010			December 31, 2010			September 30, 2010


Tenant retention⁽²⁾		69.6	%		67.1	%		63.5	%		66.0	%

Rent change on renewals and rollovers⁽²⁾
Percentage		(11.9	%)		(11.8	%)		(12.6	%)		(11.9	%)
Same space square footage commencing (millions)		24.4			25.1			23.8			24.7

Second generation TIs and LCs per square foot⁽²⁾
Retained	$	1.42		$	1.43
Re-tenanted	$	2.54		$	2.59
Weighted average	$	2.02		$	2.01
Second generation square footage commencing (millions)		31.1			31.4

Gross operating margin⁽²⁾		71.1	%		70.6	%		71.9	%		71.4	%

	Consolidated Portfolio⁽³⁾						Same Store Pool⁽¹⁾⁽²⁾
	Quarter Ended			Year Ended			Quarter Ended			Year Ended
	December 31, 2010			December 31, 2010			December 31, 2010			December 31, 2010

Cash Basis NOI percent change⁽²⁾
Increase (decrease) in revenues excluding lease termination fees		0.5	%		(3.1	%)		1.1	%		(2.5	%)
Increase (decrease) in expenses		(2.9	%)		0.4	%		1.7	%		(0.7	%)
Increase (decrease) in NOI excluding lease termination fees⁽²⁾		2.0	%		(4.6	%)		0.9	%		(3.2	%)
Increase (decrease) in NOI including lease termination fees⁽²⁾		1.9	%		(4.4	%)		1.8	%		(3.2	%)


(1)		Owned and managed portfolio, excluding value-added acquisitions.
(2)		See reporting definitions and supplemental financial measures disclosures.
(3)		Excludes value-added acquisitions.


		© 2011 AMB Property Corporation \| 9
		© 2011 AMB Property Corporation \| 9


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Portfolio Overview


														% of Total											2010			Trailing 4
														Owned and			AMB’s Share								Same Store NOI			Qrtrs Rent
	Sq Ft					Placed in						Sq Ft		Managed Sq			of Sq			2010					Growth w/out			Change on
	as of		Acquired			Operations			Disposed			as of		Ft as of			Ft as of			Average			ABR psf as		Lease			Renewals and
	9/30/2010		Sq Ft			Sq Ft⁽¹⁾			Sq Ft			12/31/2010		12/31/2010			12/31/2010			Occupancy			12/31/2010		Termination Fees⁽²⁾			Rollovers⁽²⁾

Southern California		18,959,573		—			(35,685	)		(72,239	)		18,851,649		13.3	%		60.3	%		93.1	%	$	6.33		(0.1	%)		(18.4	%)
Chicago		13,092,788		—			—			—			13,092,788		9.2	%		59.4	%		90.8	%		4.90		(2.7	%)		(21.2	%)
No. New Jersey/New York		13,054,990		—			(987	)		(30,960	)		13,023,043		9.2	%		60.6	%		87.8	%		6.99		(9.1	%)		(14.1	%)
San Francisco Bay Area		10,960,044		89,039			—			—			11,049,083		7.8	%		77.6	%		92.8	%		6.31		(1.7	%)		(1.5	%)
Seattle		7,883,361		—			—			—			7,883,361		5.6	%		58.5	%		90.5	%		5.45		(8.2	%)		(10.0	%)
South Florida		7,033,739		—			(51	)		—			7,033,688		5.0	%		69.6	%		96.7	%		6.95		6.5	%		(29.2	%)
U.S. On-Tarmac		2,468,183		129,534			—			—			2,597,717		1.8	%		90.3	%		88.3	%		18.68		(4.6	%)		(5.5	%)
Other U.S. Markets		28,924,678		282,639			75,427			(960,807	)		28,321,937		19.9	%		66.3	%		87.7	%		5.23		(7.9	%)		(19.9	%)

U.S. Total / Wtd Avg		102,377,356		501,212			38,704			(1,064,006	)		101,853,266		71.8	%		65.0	%		90.8	%	$	6.23		(4.1	%)		(15.1	%)

Canada		3,564,450		—			—			—			3,564,450		2.5	%		100.0	%		99.0	%	$	5.70		28.7	%		(19.7	%)

Mexico City		4,584,473		—			18			—			4,584,491		3.2	%		42.4	%		95.5	%	$	5.56		(5.4	%)		(7.3	%)
Guadalajara		2,898,582		—			491,555			—			3,390,137		2.4	%		33.0	%		92.0	%		4.49		(12.8	%)		(4.3	%)
Other Mexico Markets		1,089,347		—			—			—			1,089,347		0.8	%		71.8	%		72.2	%		4.27		(66.4	%)		(20.2	%)

Mexico Total / Wtd Avg		8,572,402		—			491,573			—			9,063,975		6.4	%		42.4	%		91.6	%	$	5.04		(11.1	%)		(7.0	%)


The Americas Total / Wtd Avg		114,514,208		501,212			530,277			(1,064,006	)		114,481,691		80.7	%		64.3	%		90.8	%	$	6.12		(3.8	%)		(14.6	%)


France		4,320,878		796,561			73			—			5,117,512		3.6	%		45.9	%		96.8	%	$	7.31		(6.9	%)		(9.3	%)
Germany		3,183,381		343,594			408,491			—			3,935,466		2.8	%		48.9	%		96.5	%		7.97		(4.5	%)		(7.3	%)
Benelux		3,260,290		—			110,709			—			3,370,999		2.4	%		47.9	%		85.1	%		9.61		(13.0	%)		(10.0	%)
Other Europe Markets		1,065,173		—			—			—			1,065,173		0.7	%		53.3	%		100.0	%		10.89		0.9	%		n/a

Europe Total / Wtd Avg		11,829,722		1,140,155			519,273			—			13,489,150		9.5	%		47.9	%		93.6	%	$	8.32		(7.4	%)		(9.1	%)


Tokyo		6,385,889		—			(2	)		—			6,385,887		4.5	%		34.1	%		93.5	%	$	16.99		5.3	%		(6.4	%)
Osaka		2,000,037		—			423,941			—			2,423,978		1.7	%		34.0	%		92.8	%		13.17		11.1	%		3.6	%

Japan Total / Wtd Avg		8,385,926		—			423,939			—			8,809,865		6.2	%		34.0	%		93.3	%	$	15.92		6.6	%		(4.6	%)

China		3,563,318		—			7			—			3,563,325		2.5	%		100.0	%		85.3	%	$	4.49		(22.7	%)		(0.8	%)
Singapore		935,926		—			5,675			—			941,601		0.7	%		100.0	%		96.4	%		10.36		(5.5	%)		2.0	%
Other Asia Markets		593,898		—			—			—			593,898		0.4	%		100.0	%		92.3	%		7.42		(9.4	%)		(19.3	%)

Asia Total / Wtd Avg		13,479,068		—			429,621			—			13,908,689		9.8	%		58.2	%		91.8	%	$	12.27		(11.6	%)		(0.8	%)


Owned and Managed Total / Wtd Avg⁽²⁾		139,822,998		1,641,367			1,479,171			(1,064,006	)		141,879,530		100.0	%		62.2	%		91.2	%	$	6.95		(3.2	%)		(11.9	%)


Other Real Estate Investments⁽³⁾		7,495,959		—			—			—			7,495,959					51.8	%		86.9	%		5.60

Total Operating Portfolio		147,318,957		1,641,367			1,479,171			(1,064,006	)		149,375,489					61.6	%		91.0	%	$	6.89


Development
Construction-in-Progress (CIP)		1,603,624		695,767	⁽⁴⁾		—	⁽⁵⁾		(125,227	)⁽⁶⁾		2,174,164					61.2	%
Pre-Stabilized Developments (PSD)⁽²⁾		8,256,812		125,227	⁽⁴⁾		(1,455,230	)⁽⁵⁾		(147,160	)⁽⁶⁾		6,779,649					96.5	%

Development Portfolio Subtotal		9,860,436		820,994			(1,455,230	)		(272,387	)		8,953,813					87.9	%

Value-added acquisitions⁽²⁾		1,218,530		85,000			(75,175	)		—			1,228,355					95.5	%

Total Global Portfolio		158,397,923		2,547,361			(51,234	)		(1,336,393	)		159,557,657					63.4	%


(1)		Represents assets placed in operations from development and may include positive/(negative) remeasurements of square footage as operating assets.
(2)		See reporting definitions and supplemental financial measures disclosures.
(3)		Includes AMB’s global headquarters and operating properties held through AMB’s investments in unconsolidated joint ventures that it does not manage and are therefore excluded from the owned and managed portfolio.
(4)		For CIP, represents square footage of development starts. For PSD, represents new projects available.
(5)		For CIP, represents square footage of completed development projects placed in operations. For PSD, represents projects placed in operations.
(6)		For CIP, represents square footage of completed development projects placed in PSD or disposed. For PSD, represents projects disposed.


		© 2011 AMB Property Corporation \| 10
		© 2011 AMB Property Corporation \| 10


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Capital Deployment Overview (dollars in millions)

Development Portfolio by Region as of December 31, 2010⁽¹⁾
(Estimated Total Investment⁽²⁾)

Development Starts⁽¹⁾
(Estimated Total Investment⁽²⁾)

Property Acquisitions by Region for the Quarter Ended December 31, 2010⁽³⁾
(Estimated Total Investment⁽²⁾)

Acquisition Volume⁽³⁾
(Acquisition Cost⁽²⁾)


(1)		Includes investments held through unconsolidated co-investment ventures. Estimated total investment is before the impact of real estate impairment losses.
(2)		See reporting definitions and supplemental financial measures disclosures.
(3)		Owned and managed portfolio and value-added acquisitions, excludes land inventory purchases and mortgage debt investment.


		© 2011 AMB Property Corporation \| 11
		© 2011 AMB Property Corporation \| 11


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Property Acquisitions⁽¹⁾ (dollars in thousands)


	For the Quarter Ended December 31, 2010								For the Year Ended December 31, 2010
			Acquisition			% of Total					Acquisition			% of Total
	Sq Ft		Cost⁽²⁾			Acquisition Cost			Sq Ft		Cost⁽²⁾			Acquisition Cost


The Americas
United States		586,212	$	54,446			37.8	%		3,325,074	$	211,669			61.7	%
Other Americas		—		—			0.0	%		—		—			0.0	%

The Americas Total		586,212	$	54,446			37.8	%		3,325,074	$	211,669			61.7	%

Europe
France		796,561	$	67,068			46.5	%		974,553	$	79,593			23.2	%
Germany		343,594		22,659			15.7	%		343,596		22,659			6.6	%
Benelux		—		—			0.0	%		—		—			0.0	%
Other Europe		—		—			0.0	%		140,264		29,388			8.5	%

Europe Total		1,140,155	$	89,727			62.2	%		1,458,413	$	131,640			38.3	%

Asia
Japan		—	$	—			0.0	%		—	$	—			0.0	%
China		—		—			0.0	%		—		—			0.0	%
Other Asia		—		—			0.0	%		—		—			0.0	%

Asia Total		—	$	—			0.0	%		—	$	—			0.0	%


Total Acquisitions		1,726,367	$	144,173			100.0	%		4,783,487	$	343,309			100.0	%


By Entity
AMB Property Corporation		—	$	—			0.0	%		1,143,355	$	36,886			10.7	%
AMB Europe Logistics Fund		1,140,155		89,727			62.2	%		1,458,413		131,640			38.3	%
AMB U.S. Logistics Fund		586,212		54,446			37.8	%		2,181,719		174,783			51.0	%

Total Acquisitions		1,726,367	$	144,173			100.0	%		4,783,487	$	343,309			100.0	%


AMB’s Weighted Average Ownership Percentage				30.3	%							37.3	%
Weighted Average Stabilized Cash Cap Rate⁽³⁾				6.9	%							7.0	%


(1)		Owned and managed portfolio and value-added acquisitions, excludes mortgage debt investment.
(2)		Includes estimated total acquisition capital expenditures of approximately $1.7 million and $8.6 million for the three and twelve months ended December 31, 2010, respectively.
(3)		Excludes the impact of straight line rents and amortization of lease intangibles. See reporting definitions and supplemental financial measures disclosures.


		© 2011 AMB Property Corporation \| 12
		© 2011 AMB Property Corporation \| 12


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Contributions and Dispositions⁽¹⁾ (dollars in thousands)


	For the Quarter Ended December 31, 2010						For the Year Ended December 31, 2010
	Operating Property			Development Property			Operating Property			Development Property⁽²⁾


AMB’s Ownership Contributed and Disposed		49.3	%		100.0	%		73.4	%		83.1	%
Contribution Value and Disposition Price	$	49,601		$	6,400		$	94,510		$	58,763
Weighted Average Stabilized Cap Rate⁽³⁾⁽⁴⁾		7.5	%		6.7	%		7.3	%		7.3	%
Development Margin, before real estate impairment losses⁽⁴⁾		N/A			(27.7	%)		N/A			(11.7	%)
Development Margin, net of real estate impairment losses⁽⁴⁾		N/A			10.8	%		N/A			7.9	%

Square Footage or Acreage Contributed or Sold


	For the Quarter Ended December 31, 2010						For the Year Ended December 31, 2010
	Operating Property		Development Property				Operating Property		Development Property⁽²⁾
	Square Feet		Square Feet		Land Acreage⁽⁵⁾		Square Feet		Square Feet		Land Acreage⁽⁵⁾

The Americas
United States		1,064,006		147,160		—		1,666,181		485,022		—
Other Americas		—		—		—		—		—		—

The Americas Total		1,064,006		147,160		—		1,666,181		485,022		—

Europe
France		—		—		—		—		37,760		—
Germany		—		—		—		—		—		—
Benelux		—		—		—		—		—		—
Other Europe		—		—		—		—		141,933		5

Europe Total		—		—		—		—		179,693		5

Asia
Japan		—		—		—		—		—		—
China		—		—		—		—		—		—
Other Asia		—		—		—		—		—		—

Asia Total		—		—		—		—		—		—


Total		1,064,006		147,160		—		1,666,181		664,715		5


(1)		Includes investments held through unconsolidated co-investment ventures.
(2)		Includes installment sale of 0.2 million square feet and $12.5 million initiated in the fourth quarter of 2009 and completed in the first quarter of 2010.
(3)		Excludes value-added conversions, development for sale, and land sales.
(4)		See reporting definitions and supplemental financial measures disclosures.
(5)		Represents acreage for land sales and value-added conversion projects.


		© 2011 AMB Property Corporation \| 13
		© 2011 AMB Property Corporation \| 13


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Development Starts and Completions⁽¹⁾ (dollars in thousands)


	Development Starts⁽²⁾																Development Completions⁽²⁾
	For the Quarter Ended								For the Year Ended								For the Quarter Ended								For the Year Ended
	December 31, 2010								December 31, 2010								December 31, 2010								December 31, 2010
			Estimated			% of Total					Estimated			% of Total
	Estimated		Total			Estimated			Estimated		Total			Estimated					Total			% of Total					Total			% of Total
	Sq Ft		Investment⁽²⁾			Investment⁽²⁾			Sq Ft		Investment⁽²⁾			Investment⁽²⁾			Sq Ft		Investment⁽³⁾			Investment⁽²⁾			Sq Ft		Investment⁽³⁾			Investment⁽²⁾
The Americas
United States		—	$	—			0.0	%		—	$	—			0.0	%		—	$	—			0.0	%		389,767	$	36,009			9.1	%
Other Americas		221,233		11,625			35.3	%		860,497		68,146			66.2	%		—		—			0.0	%		607,202		47,854			12.1	%

The Americas Total		221,233	$	11,625			35.3	%		860,497	$	68,146			66.2	%		—	$	—			0.0	%		996,969	$	83,863			21.2	%

Europe
France		—	$	—			0.0	%		—	$	—			0.0	%		—	$	—			0.0	%		692,754	$	53,860			13.6	%
Germany		—		—			0.0	%		—		—			0.0	%		—		—			0.0	%		427,832		47,744			12.1	%
Benelux		—		—			0.0	%		—		—			0.0	%		125,227		24,295			100.0	%		573,350		78,067			19.7	%
Other Europe		—		—			0.0	%		—		—			0.0	%		—		—			0.0	%		—		—			0.0	%

Europe Total		—	$	—			0.0	%		—	$	—			0.0	%		125,227	$	24,295			100.0	%		1,693,936	$	179,671			45.4	%

Asia
Japan		—	$	—			0.0	%		—	$	—			0.0	%		—	$	—			0.0	%		420,847	$	54,415			13.8	%
China		474,534		21,264			64.7	%		755,752		34,718			33.8	%		—		—			0.0	%		1,592,826		77,565			19.6	%
Other Asia		—		—			0.0	%		—		—			0.0	%		—		—			0.0	%		—		—			0.0	%

Asia Total		474,534	$	21,264			64.7	%		755,752	$	34,718			33.8	%		—	$	—			0.0	%		2,013,673	$	131,980			33.4	%


Total		695,767	$	32,889			100.0	%		1,616,249	$	102,864			100.0	%		125,227	$	24,295			100.0	%		4,704,578	$	395,514			100.0	%


AMB’s Weighted Average Ownership Percentage				100.0	%							59.0	%							50.0	%							92.0	%
Weighted Average Estimated Yield⁽²⁾⁽⁴⁾				8.7	%							11.2	%							6.3	%							6.3	%


(1)		Includes investments held through unconsolidated co-investment ventures.
(2)		See reporting definitions and supplemental financial measures disclosures.
(3)		Includes value-added conversions.
(4)		Calculated using estimated total investment before the impact of cumulative real estate impairment losses.


		© 2011 AMB Property Corporation \| 14
		© 2011 AMB Property Corporation \| 14


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Development Portfolio⁽¹⁾ (dollars in thousands)


	2011 Expected Completions⁽²⁾					2012 Expected Completions⁽²⁾					Total Construction-in-Progress					Pre-Stabilized Developments⁽²⁾					Total Development Portfolio
			Estimated					Estimated					Estimated					Estimated					Estimated			% of Total
	Estimated		Total			Estimated		Total			Estimated		Total			Estimated		Total			Estimated		Total			Estimated
	Sq Ft		Investment⁽²⁾⁽³⁾			Sq Ft		Investment⁽²⁾⁽³⁾			Sq Ft		Investment⁽²⁾⁽³⁾			Sq Ft		Investment⁽²⁾⁽³⁾			Sq Ft		Investment⁽²⁾⁽³⁾			Investment⁽²⁾

The Americas
United States		557,915	$	66,701			—	$	—			557,915	$	66,701			1,312,326	$	158,646			1,870,241	$	225,347			24.0	%
Other Americas		639,264		57,462			221,233		11,625			860,497		69,087			1,228,613		87,250			2,089,110		156,337			16.7	%

The Americas Total		1,197,179	$	124,163			221,233	$	11,625			1,418,412	$	135,788			2,540,939	$	245,896			3,959,351	$	381,684			40.7	%

Europe
France		—	$	—			—	$	—			—	$	—			647,976	$	49,299			647,976	$	49,299			5.3	%
Germany		—		—			—		—			—		—			139,608		18,053			139,608		18,053			1.9	%
Benelux		—		—			—		—			—		—			669,881		94,583			669,881		94,583			10.1	%
Other Europe		—		—			—		—			—		—			444,043		44,789			444,043		44,789			4.7	%

Europe Total		—	$	—			—	$	—			—	$	—			1,901,508	$	206,724			1,901,508	$	206,724			22.0	%

Asia
Japan		—	$	—			—	$	—			—	$	—			1,811,434	$	292,730			1,811,434	$	292,730			31.2	%
China		281,218		13,699			474,534		21,264			755,752		34,963			525,768		22,225			1,281,520		57,188			6.1	%
Other Asia		—		—			—		—			—		—			—		—			—		—			0.0	%

Asia Total		281,218	$	13,699			474,534	$	21,264			755,752	$	34,963			2,337,202	$	314,955			3,092,954	$	349,918			37.3	%


Total		1,478,397	$	137,862			695,767	$	32,889			2,174,164	$	170,751			6,779,649	$	767,575			8,953,813	$	938,326			100.0	%

Real estate impairment losses														(985	)				(67,592	)				(68,577	)

Estimated total investment, net of real estate impairment losses													$	169,766				$	699,983				$	869,749


Number of Projects				5					3					8					25					33
AMB’s Weighted Average Ownership Percentage				37.2	%				100.0	%				49.3	%				96.3	%				87.8	%
Remainder to Invest			$	39,752				$	23,725				$	63,477				$	19,384				$	82,861
AMB’s Share of Remainder to Invest^(2)(4)(5)			$	11,421				$	23,725				$	35,146				$	19,277				$	54,423
Weighted Average Estimated Yield⁽²⁾⁽⁵⁾				9.2	%				8.7	%				9.1	%				6.2	%				6.8	%
Weighted Average Estimated Yield, net of real estate impairment losses⁽²⁾				9.2	%				9.0	%				9.2	%				6.8	%				7.3	%
Percent Pre-Leased⁽²⁾				63.2	%				22.1	%				50.0	%				56.2	%				54.7	%


(1)		Includes investments held through unconsolidated co-investment ventures.
(2)		See reporting definitions and supplemental financial measures disclosures.
(3)		Includes value-added conversion projects.
(4)		Amounts include capitalized interest as applicable.
(5)		Calculated using estimated total investment before the impact of cumulative real estate impairment losses.


		© 2011 AMB Property Corporation \| 15
		© 2011 AMB Property Corporation \| 15


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Land, Value-Added Conversion, and Redevelopment Inventory⁽¹⁾⁽²⁾ (dollars in thousands)

Land Inventory


	The Americas						Europe				Asia						Total
				Estimated					Estimated					Estimated						Estimated
				Build Out Potential					Build Out Potential					Build Out Potential						Build Out Potential
	Acres			(Sq Ft)			Acres		(Sq Ft)		Acres			(Sq Ft)			Acres			(Sq Ft)


Balance as of September 30, 2010		2,306			38,596,354			227		4,620,004		130			4,852,918			2,663			48,069,276
Acquisitions		—			—			—		—		—			—			—			—
Sales		—			—			—		—		—			—			—			—
Development starts		(10	)		(221,233	)		—		—		(12	)		(474,534	)		(22	)		(695,767	)
Other		—			—			—		—		—			—			—			—


Balance as of December 31, 2010		2,296			38,375,121			227		4,620,004		118			4,378,384			2,641	⁽³⁾		47,373,509	⁽³⁾


Investment in Land⁽⁴⁾				$	652,230				$	150,863				$	146,823					$	949,916

Cumulative real estate impairment losses																				$	(151,794	)


Investment in land, net of cumulative real estate impairment losses																				$	798,122


AMB’s share of investment in land, net of cumulative real estate impairment losses				$	382,758				$	74,537				$	144,095					$	601,390
AMB Cost per SF				$	4.32				$	13.21				$	28.09					$	6.04
AMB Cost per Floor Area Ratio SF				$	10.52				$	28.77				$	32.91					$	14.05
Weighted Average Purchase Date (in years)					4.8					2.8					4.4						4.4

Value-Added Conversion Inventory⁽¹⁾


	East Region				West Region				The Americas Total
Conversion Time Frame	Acres		Number of Projects		Acres		Number of Projects		Acres			Number of Projects


3 years or less		—		—		9		1		9			1
3+ years		7		2		231		13		238			15

Total		7		2		240		14		247	⁽⁵⁾		16

Redevelopment Inventory⁽¹⁾


	East Region				West Region				The Americas Total
Redevelopment Time Frame	Sq Ft		Number of Projects		Sq Ft		Number of Projects		Sq Ft			Number of Projects


3 years or less		—		—		—		—		—			—
3+ years		—		—		998,372		3		998,372			3

Total		—		—		998,372		3		998,372	⁽⁶⁾		3

(1)		See reporting definitions and supplemental financial measures disclosures.

(2)		Includes investments held through unconsolidated co-investment ventures. Does not include value-added acquisitions.

(3)		AMB’s share of acres and square feet of estimated build out including amounts held in unconsolidated co-investment ventures is 2,278 acres and 40.9 million square feet, respectively.

(4)		Represents actual cost incurred to date including initial acquisition, infrastructure, and associated carry costs.

(5)		AMB’s share is 193 acres.

(6)		AMB’s share is 678,859 square feet.


		© 2011 AMB Property Corporation \| 16
		© 2011 AMB Property Corporation \| 16


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Private Capital Co-investment Ventures Overview (dollars in millions)

Date

Geographic

Functional

Incentive Distribution

Co-investment Venture

Established

Focus

Principal Venture Investors

Currency

Frequency

Term

AMB-SGP

March 2001

United States

Subsidiary of GIC Real Estate Pte Ltd.

USD

10 years

March 2011; extendable 10 years

AMB Institutional Alliance Fund II

June 2001

United States

Various

USD

At dissolution

December 2014 (estimated)

AMB-AMS

June 2004

United States

Various

USD

At dissolution

December 2012; extendable 4 years

AMB U.S. Logistics Fund⁽¹⁾

October 2004

United States

Various

USD

3 years (next 2Q11)

Open end

AMB-SGP Mexico

December 2004

Mexico

Subsidiary of GIC Real Estate Pte Ltd.

USD

7 years

December 2011; extendable 7 years

AMB Japan Fund I

June 2005

Japan

Various

JPY

At dissolution

June 2013; extendable 2 years

AMB DFS Fund I

October 2006

United States

Strategic Realty Ventures, LLC

USD

Upon project sales

Upon final sale⁽²⁾

AMB Europe Logistics Fund⁽¹⁾

June 2007

Europe

Various

EUR

3 years (next 2Q13)

Open end

AMB Mexico Fondo Logistico

July 2010

Mexico

Various

USD

At dissolution

July 2020

AMB Brazil Logistics Partners Fund I

December 2010

Brazil

Major university endowment

BRL

At dissolution

December 2017; extendable 2 years

YTD Additions to Private Capital Co-investment Ventures⁽³⁾

Gross Carrying Value of Private Capital Co-investment Ventures⁽⁴⁾

(1)		Effective January 1, 2010, the name of AMB Institutional Alliance Fund III was changed to AMB U.S. Logistics Fund. Effective October 29, 2010, the name of AMB Europe Fund I, FCP-FIS was changed to AMB Europe Logistics Fund, FCP-FIS.

(2)		For AMB DFS Fund I, the investment period ended in June 2009. The fund will terminate upon completion and disposition of assets currently owned and under development by the fund.

(3)		Additions to private capital co-investment ventures include both acquisitions from third parties as well as assets contributed to co-investment ventures from AMB.

(4)		See reporting definitions and supplemental financial measures disclosures.


		© 2011 AMB Property Corporation \| 17
		© 2011 AMB Property Corporation \| 17


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Joint Ventures Financial Summary (dollars in thousands)


	AMB’s					Gross							AMB’s		Estimated
	Ownership		Square			Book		Property		Other			Net Equity		Investment
Unconsolidated Joint Ventures	Percentage		Feet⁽¹⁾			Value		Debt		Debt			Investment⁽²⁾		Capacity


Operating Co-Investment Ventures
AMB U.S. Logistics Fund		35%		37,521,062		$	3,422,176	$	1,596,010	$	—		$	374,881	$	190,000
AMB Europe Logistics Fund		38%		10,522,627			1,334,753		647,288		—			172,903		300,000
AMB Japan Fund I		20%		7,263,093			1,720,824		929,158		9,857			82,482		—
AMB-SGP Mexico		22%		6,405,922			360,410		163,769		148,438	⁽³⁾		20,646		—

Total Operating Co-investment Ventures		31%		61,712,704			6,838,163		3,336,225		158,295			650,912		490,000

Development Co-investment Ventures:
AMB DFS Fund I		15%		200,027			86,022		—		—			14,426		—
AMB U.S. Logistics Fund		35%		557,915			98,829		—		—			34,496		n/a
AMB Brazil Logistics Partners Fund I⁽⁴⁾		25%		639,264			54,838		—		—			32,910		390,000

Total Development Co-investment Ventures		25%		1,397,206			239,689		—		—			81,832		390,000

Total Unconsolidated Co-investment Ventures⁽⁵⁾		31%		63,109,910			7,077,852		3,336,225		158,295			732,744		880,000

Other Industrial Operating Joint Ventures		51%		7,419,049	⁽⁶⁾		287,932		153,513		—			51,043		n/a

Total Unconsolidated Joint Ventures		32%		70,528,959		$	7,365,784	$	3,489,738	$	158,295		$	783,787	$	880,000


Consolidated Joint Ventures

Operating Co-investment Ventures
AMB-SGP		50%		8,216,247		$	479,635	$	327,301	$	—
AMB Institutional Alliance Fund II		24%		7,321,372			518,516		184,292		54,300
AMB-AMS		39%		2,170,337			160,985		75,650		—

Total Operating Co-investment Ventures		37%		17,707,956			1,159,136		587,243		54,300
Total Consolidated Co-investment Ventures		37%		17,707,956			1,159,136		587,243		54,300

Other Industrial Operating Joint Ventures		80%		2,917,634			372,536		62,210		—
Other Industrial Development Joint Ventures		48%		249,169			181,600		81,776		—

Total Consolidated Joint Ventures		48%		20,874,759		$	1,713,272	$	731,229	$	54,300


Selected Operating Results						FFO, as								FFO, as
For the Quarter Ended December 31, 2010	Cash NOI⁽⁵⁾		Net Income			adjusted⁽⁵⁾			Share of	Cash NOI⁽⁵⁾		Net Income		adjusted⁽⁵⁾


Unconsolidated Joint Ventures	$	103,278	$	5,516	⁽⁷⁾	$	46,959	⁽⁷⁾	AMB’s	$	33,512	$	4,956	$	16,070
Consolidated Joint Ventures	$	23,865	$	4,677		$	14,708		Partner's	$	12,909	$	2,821	$	7,454

Selected Operating Results						FFO, as								FFO, as
For the Years Ended December 31, 2010	Cash NOI⁽⁵⁾		Net Income			adjusted⁽⁵⁾			Share of	Cash NOI⁽⁵⁾		Net Income		adjusted⁽⁵⁾


Unconsolidated Joint Ventures	$	392,973	$	16,088	⁽⁷⁾	$	182,736	⁽⁷⁾	AMB’s	$	120,500	$	17,372	$	61,903
Consolidated Joint Ventures	$	95,623	$	15,777		$	57,469		Partner's	$	52,034	$	8,508	$	28,251


(1)		For development properties, represents the estimated square feet upon completion for the committed phases of development projects.

(2)		Through AMB Property Mexico, AMB held an equity interest in various other non-core unconsolidated ventures for approximately $13.3 million as of December 31, 2010. Additionally, in December 2010, AMB entered into a mortgage debt investment joint venture with a third-party and held an equity interest of $86.2 million as of December 31, 2010.

(3)		Includes $89.6 million of shareholder loans.

(4)		Through AMB Brazil Logistics Partners Fund I, a 50% co-investment venture with a third-party partner, AMB holds a 25% equity interest in a joint venture created with its partner Cyrela Commercial Properties.

(5)		See reporting definitions and supplemental financial measures disclosures.

(6)		Includes investments in 7.3 million square feet of operating properties through AMB’s investment in unconsolidated joint ventures that it does not manage which it excludes from its owned and managed portfolio.

(7)		Includes $4.0 million and $15.5 million of interest expense on shareholder loans for AMB-SGP Mexico for the quarter and twelve months ended December 31, 2010, respectively.


		© 2011 AMB Property Corporation \| 18
		© 2011 AMB Property Corporation \| 18


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Capitalization Summary (dollars in millions)

Value

Coverage and Debt Ratios


	For the Quarter Ended			For the Year Ended
	December 31, 2010			December 31, 2010
Wholly-owned fixed charge coverage⁽²⁾		2.5	x		2.5	x
Fixed charge coverage⁽²⁾		2.1	x		2.1	x
Interest coverage⁽²⁾		2.6	x		2.6	x
Dividends per share-to-FFO, as adjusted per share⁽²⁾		84.8	%		88.2	%
AMB’s share of total debt-to-total market capitalization⁽²⁾		41.3	%		41.3	%
AMB’s share of total debt-to-AMB’s share of total assets⁽²⁾		43.0	%		43.0	%

Capital Structure⁽¹⁾


(1)		Debt amounts represent AMB’s share of debt and preferred securities.

(2)		See reporting definitions and supplemental financial measures disclosures.

(3)		Includes $600 million of estimated investment capacity in AMB Mexico Fondo Logistico.


		© 2011 AMB Property Corporation \| 19
		© 2011 AMB Property Corporation \| 19


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Capitalization Detail (dollars in thousands, except shares and share price)


	AMB Wholly-Owned
	Unsecured												Total			Consolidated			Total			Unconsolidated						AMB’s Share of
	Senior			Credit			Other			Secured			Wholly-Owned			Joint Venture			Consolidated			Joint			Total			Total
	Debt			Facilities⁽¹⁾			Debt			Debt			Debt			Debt			Debt			Venture Debt			Debt			Debt


2011	$	69,000		$	129,443		$	—		$	15,499		$	213,942		$	139,410		$	353,352		$	414,907		$	768,259		$	395,844
2012		—			—			153,903			29,636			183,539			468,361			651,900			434,468			1,086,368			478,649
2013		293,897			—			—			23,366			317,263			103,568			420,831			732,130			1,152,961			547,092
2014		—			139,490			—			4,904			144,394			8,809			153,203			556,096			709,299			357,254
2015		112,491			—			205,773			7,908			326,172			16,943			343,115			464,706			807,821			504,984
2016		250,000			—			—			81,936			331,936			15,499			347,435			170,709			518,144			397,384
2017		300,000			—			—			67,913			367,913			490			368,403			92,414			460,817			388,927
2018		300,000			—			—			—			300,000			595			300,595			96,694			397,289			334,094
2019		250,000			—			—			—			250,000			28,713			278,713			11,778			290,491			270,707
2020		123,213			—			—			—			123,213			645			123,858			211,643			335,501			197,459
Thereafter		—			—			—			—			—			2,450			2,450			377,455			379,905			133,164

Subtotal	$	1,698,601		$	268,933		$	359,676		$	231,162		$	2,558,372		$	785,483		$	3,343,855		$	3,563,000		$	6,906,855		$	4,005,558
Unamortized net (discounts) premiums		(12,645	)		—			—			43			(12,602	)		46			(12,556	)		(4,580	)		(17,136	)		(15,995	)

Subtotal	$	1,685,956		$	268,933		$	359,676		$	231,205		$	2,545,770		$	785,529		$	3,331,299		$	3,558,420		$	6,889,719		$	3,989,563
Joint venture partners’ share of debt⁽²⁾		—			—			—			—			—			(451,335	)		(451,335	)		(2,448,821	)		(2,900,156	)		—

AMB’s share of total debt⁽²⁾	$	1,685,956		$	268,933		$	359,676		$	231,205		$	2,545,770		$	334,194		$	2,879,964		$	1,109,599		$	3,989,563		$	3,989,563


Weighted average interest rate		5.6	%		1.7	%		3.0	%		2.9	%		4.6	%		4.8	%		4.6	%		4.6	%		4.6	%		4.6	%
Weighted average remaining maturity (years)		6.1			1.9			3.6			4.9			5.2			1.9			4.4			4.4			4.4			4.8


Market Equity
Security	Shares			Price		Value


Common Stock		168,736,081	⁽³⁾	$	31.71	$	5,350,621
LP Units		3,041,743		$	31.71		96,454

Total		171,777,824				$	5,447,075


Total options outstanding							8,694,938
Dilutive effect of stock options on net income per common share⁽⁴⁾							—
Dilutive effect of stock options on FFO, as adjusted and Core FFO, as adjusted per common share and unit⁽⁴⁾							1,329,986


Preferred Stock
	Dividend			Liquidation
Security	Rate			Preference


Series L preferred stock		6.50	%	$	50,000
Series M preferred stock		6.75	%		57,500
Series O preferred stock		7.00	%		75,000
Series P preferred stock		6.85	%		50,000

Weighted Average/Total		6.80	%	$	232,500


Capitalization Ratios
AMB’s share of total debt-to-total market capitalization⁽²⁾⁽⁵⁾	41.3	%
AMB’s share of total debt plus preferred-to- AMB’s share of total market capitalization⁽²⁾⁽⁵⁾	43.7	%
AMB’s share of total debt-to-AMB’s share of total assets⁽²⁾	43.0	%
AMB’s share of total debt plus preferred-to- AMB’s share of total assets⁽²⁾	45.5	%


(1)		Represents three credit facilities with total capacity of approximately $1.7 billion. Includes $37.0 million in U.S. dollar borrowings and $139.5 million, $70.1 million and $22.3 million in Yen, Canadian dollar and Singapore dollar-based borrowings outstanding at December 31, 2010, respectively, translated to U.S. dollars using the foreign exchange rates in effect on December 31, 2010.

(2)		See reporting definitions and supplemental financial measures disclosures.

(3)		Includes 1,202,122 shares of unvested restricted stock.

(4)		Computed using the treasury stock method and average share price of $29.23 for the quarter ended December 31, 2010. For net income per common share, all stock options were anti-dilutive as of December 31, 2010.

(5)		Total Market Capitalization is defined as AMB’s share of total debt plus preferred equity liquidation preferences plus market equity.


		© 2011 AMB Property Corporation \| 20
		© 2011 AMB Property Corporation \| 20


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Debt Maturities⁽¹⁾ (dollars in thousands)


	After Extension Options⁽²⁾
AMB Wholly-Owned Debt	2011		2012		2013		2014
Unsecured Senior Debt	$	69,000	$	—	$	293,897	$	—
Credit Facilities		—		129,443		—		—
Other Debt		—		153,903		—		—
AMB Secured Debt		14,300		28,068		22,090		—

Subtotal		83,300		311,414		315,987		—

Consolidated Joint Ventures
AMB-AMS		—		—		39,273		—
AMB Institutional Alliance Fund II		—		3,850		199,972		4,590
AMB-SGP		38,176		289,125		—		—
Other Industrial Joint Ventures		53,311		30,972		20,355		4,344

Subtotal		91,487		323,947		259,600		8,934

Unconsolidated Joint Ventures
AMB-SGP Mexico		58,825		163,769		—		—
AMB Japan Fund I		151,511		212,617		493,566		—
AMB Europe Logistics Fund		—		—		—		412,234
AMB U.S. Logistics Fund		30,310		29,397		181,457		117,995
Other Industrial Joint Ventures		31,081		—		57,299		30,861

Subtotal		271,727		405,783		732,322		561,090

Total Consolidated		174,787		635,361		575,587		8,934
Total Unconsolidated		271,727		405,783		732,322		561,090

Total	$	446,514	$	1,041,144	$	1,307,909	$	570,024


Total AMB’s Share	$	201,771	$	563,687	$	580,546	$	215,449


(1)		Excludes scheduled principal amortization of debt maturing in years subsequent to 2014 as well as debt premiums and discounts.

(2)		Subject to certain conditions.


		© 2011 AMB Property Corporation \| 21
		© 2011 AMB Property Corporation \| 21


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Supplemental Information for Net Asset Value Analysis (NAV) (dollars in thousands, except per share amounts)

Income Items


				Actual
				Quarter Ended
				December 31, 2010
Real Estate:
Wholly-owned property cash NOI from continuing operations⁽¹⁾				$	80,525
AMB’s share of cash NOI from joint ventures:
Total cash NOI from joint ventures from continuing operations⁽¹⁾	$	127,157
AMB’s share of joint ventures⁽¹⁾		34.9	%

AMB’s share of cash NOI from joint ventures from continuing operations⁽¹⁾					44,437
Adjustments to AMB’s share of cash NOI:
NOI attributed to construction-in-progress	$	(178	)
NOI attributed to pre-stabilized development projects⁽¹⁾⁽²⁾		(4,173	)
NOI attributed to contributed developments		—
NOI required to stabilize properties acquired and moved to operations		962
Other adjustments to AMB’s share of cash NOI:⁽³⁾		5,912

Adjustments to AMB’s share of cash NOI⁽⁴⁾					2,523

Total AMB’s share of cash NOI from continuing operations related to operating properties⁽¹⁾⁽⁵⁾				$	127,485


AMB’s share of average occupancy⁽⁵⁾					92.3	%

Development platform:⁽⁴⁾
Development starts				$	32,889

Private capital platform:
Total private capital revenue per common share and unit (diluted)				$	0.05

Assets & Liabilities


	As of
AMB's share of:⁽¹⁾	December 31, 2010
Development, land, value-added acquisitions and contributed assets, net of real estate impairment losses:⁽⁵⁾
Construction-in-progress (invested to date)	$	48,101
Pre-stabilized development projects (invested to date)⁽¹⁾		652,339
Value-added acquisitions⁽¹⁾		35,947
Land held for future development		601,390
Assets contributed to co-investment ventures⁽⁶⁾		—

Total development, land, value-added acquisitions and contributed assets, net of real estate impairment losses	$	1,337,777


Debt and preferred securities:⁽⁵⁾
Total debt	$	3,989,563
Preferred securities		232,500

Total debt and preferred securities	$	4,222,063


Other balance sheet items:⁽⁵⁾
Cash and cash equivalents and restricted cash	$	308,427
Accounts receivable (net) and other assets		401,785
Deferred rents receivable and deferred financing costs (net)		(125,373	)
Accounts payable and other liabilities		(388,100	)

Total other balance sheet items	$	196,739


(1)		See reporting definitions and supplemental financial measures disclosures.
(2)		Includes an adjustment to remove any NOI generated from value-added acquisitions.
(3)		Other adjustments to AMB’s share of cash NOI include free rent granted in the quarter and non-property related revenues and expenses.
(4)		Transaction activity adjustments remove NOI generated from in-progress developments, contributed developments, and projects held for sale or contribution as the value of this real estate is reflected in AMB’s share of development, land, and contributed assets as detailed above. The adjustments also include stabilized NOI for acquisitions.
(5)		Includes investments held through unconsolidated joint ventures.
(6)		Represents AMB’s share of assets contributed to unconsolidated co-investment ventures during the three months ended December 31, 2010.


		© 2011 AMB Property Corporation \| 22
		© 2011 AMB Property Corporation \| 22


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Reporting Definitions / Supplemental Financial Measures

Acquisition Cost includes estimated acquisition capital expenditures. Estimated acquisition capital expenditures include immediate building improvements that are taken into consideration when underwriting the purchase of a building or which are incurred to bring a building up to operating standard or to stabilization and incremental building improvements and leasing costs that are incurred in an effort to substantially increase the revenue potential of an existing building.

Adjusted EBITDA, Wholly-owned Adjusted EBITDA and AMB’s share of Adjusted EBITDA. AMB uses adjusted earnings before interest (including the amount of capitalized interest deducted from the determination of development gains), tax, depreciation and amortization, impairment charges, development profits related to real estate impairment losses previously recognized, restructuring, losses on early extinguishment of debt, stock based compensation amortization and other non-cash charges, and non-development gains, or adjusted EBITDA, to measure both its operating performance and liquidity. AMB considers adjusted EBITDA to provide investors relevant and useful information because it permits investors to view income from its operations on an unleveraged basis before the effects of tax, non-cash depreciation and amortization expense (including stock-based compensation amortization) or non-development gains. By excluding interest expense, adjusted EBITDA allows investors to measure AMB’s operating performance independent of its capital structure and indebtedness and, therefore, allows for a more meaningful comparison of its operating performance between quarters as well as annual periods and to compare its operating performance to that of other companies, both in the real estate industry and in other industries. AMB considers adjusted EBITDA to be a useful supplemental measure for reviewing its comparative performance with other companies because, by excluding non-cash depreciation and amortization expense, adjusted EBITDA can help the investing public compare the performance of a real estate company to that of companies in other industries. The impairment charges were principally a result of increases in estimated capitalization rates and deterioration in market conditions that adversely impacted values. The development profits related to real estate impairment losses previously recognized reflect adjustments to the cost basis of properties previously impaired used to determine profits on disposition. The restructuring charges reflected costs associated with AMB’s reduction in global headcount and cost structure. Debt extinguishment losses generally included the costs of repurchasing debt securities. AMB repurchased certain tranches of senior unsecured debt to manage its debt maturities in response to the current financing environment, resulting in greater debt extinguishment costs. Although difficult to predict, these items may be recurring given the uncertainty of the current economic climate and its adverse effects on the real estate and financial markets. While not infrequent or unusual in nature, these items result from market fluctuations that can have inconsistent effects on AMB’s results of operation. The economics underlying these items reflect market and financing conditions in the short-term but can obscure AMB’s performance and the value of AMB’s long-term investment decisions and strategies. Management believes adjusted EBITDA is significant and useful to both it and its investors. Adjusted EBITDA 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 and unobscured by costs (or gains) resulting from AMB’s management of its financing profile in response to the tightening of the capital markets. As a liquidity measure, AMB believes that adjusted EBITDA helps investors to analyze its ability to meet debt service obligations and to make quarterly preferred share dividends and unit distributions. Management uses adjusted EBITDA when measuring AMB’s operating performance and liquidity; specifically when assessing its operating performance, and comparing that performance to other companies, both in the real estate industry and in other industries, and when evaluating its ability to meet debt service obligations and to make quarterly preferred share dividends and unit distributions. AMB believes investors should consider adjusted EBITDA, in conjunction with net income (the primary measure of AMB’s performance) and the other required GAAP measures of its performance and liquidity, to improve their understanding of AMB’s operating results and liquidity, and to make more meaningful comparisons of its performance between periods and as against other companies. By excluding interest, taxes, depreciation and amortization, impairment charges, development profits related to real estate impairment losses previously recognized, restructuring, debt extinguishment losses, stock based compensation amortization and other non-cash charges and non-development gains when assessing AMB’s financial performance, an investor is assessing the earnings generated by AMB’s operations, but not taking into account the eliminated expenses or non-development gains incurred in connection with such operations. As a result, adjusted EBITDA has limitations as an analytical tool and should be used in conjunction with AMB’s required GAAP presentations. Adjusted EBITDA does not reflect AMB’s historical cash expenditures or future cash requirements for working capital, capital expenditures or contractual commitments. Adjusted EBITDA also does not reflect the cash required to make interest and principal payments on AMB’s outstanding debt. While adjusted EBITDA is a relevant and widely used measure of operating performance and liquidity, it does not represent net income or cash flow from operations as defined by GAAP and it should not be considered as an alternative to those indicators in evaluating operating performance or liquidity. Further, AMB’s computation of adjusted EBITDA may not be comparable to EBITDA reported by other companies. Management compensates for the limitations of

adjusted EBITDA by providing investors with financial statements prepared according to U.S. GAAP, along with this detailed discussion of adjusted EBITDA and a reconciliation of adjusted EBITDA to net income (or loss), a U.S. GAAP measurement. AMB defines AMB’s share of adjusted EBITDA to be AMB Property Corporation’s pro rata portion of adjusted EBITDA based on its direct or indirect percentage of equity interests in its joint ventures and other investments. AMB defines wholly-owned adjusted EBITDA to be that portion of adjusted EBITDA, which is solely attributable to assets and activities that are 100% directly or indirectly owned by AMB Property Corporation plus cash distributions from joint venture relationships. AMB includes these distributions as they are an additional source of cash flow available to service AMB’s obligations. AMB believes these supplemental measures are useful by providing investors with more comprehensive disclosure regarding AMB’s performance and its ability to cover its financial obligations on both a wholly owned basis and on a total portfolio basis.

The following table reconciles adjusted EBITDA, wholly-owned adjusted EBITDA and AMB’s share of adjusted EBITDA from net loss for the three and twelve months ended December 31, 2010 and 2009 (dollars in thousands):


	For the Quarters Ended						For the Years Ended
	December 31,						December 31,
	2010			2009			2010			2009
Net income (loss)	$	11,309		$	(10,102	)	$	33,594		$	(27,960	)
Depreciation and amortization		51,353			50,718			196,636			175,334
Impairment charges		—			—			—			181,853
Real estate impairment losses included in development profits, net of taxes		(3,114	)		—			(3,620	)		(16,753	)
Restructuring charges		—			2,544			4,874			6,368
Loss on early extinguishment of debt		353			11,614			2,892			12,267
Stock-based compensation amortization and other non-cash charges		6,272			6,754			24,971			23,819
Interest expense, including amortization		33,036			30,772			130,338			118,867
Total discontinued operations, including gains, excluding development profits		(5,698	)		(2,938	)		(24,242	)		(43,220	)
Adjustment for depreciation on development profits		—			—			(1,546	)		—
Income tax expense		2,144			1,683			5,308			6,983
Capitalized interest attributable to development properties sold or contributed		1,101			1,691			4,649			16,412
Discontinued operations’ adjusted EBITDA		1,246			2,560			7,490			21,540
Less: Equity in earnings of unconsolidated joint ventures, net		(4,956	)		(3,824	)		(17,372	)		(11,331	)
Less: Adjusted EBITDA attributable to consolidated joint ventures		(23,731	)		(25,931	)		(98,243	)		(106,904	)
Distributions from consolidated and unconsolidated joint ventures		10,209			8,793			40,388			31,870

Wholly-owned adjusted EBITDA		79,524			74,334			306,117			389,145
Adjustments to derive adjusted EBITDA from consolidated joint ventures:
Distributions from consolidated joint ventures to AMB		(2,830	)		(4,338	)		(15,704	)		(20,183	)
Adjusted EBITDA attributable to consolidated joint ventures		23,731			25,931			98,243			106,904
Adjusted EBITDA attributable to noncontrolling interests		(12,813	)		(14,256	)		(53,279	)		(58,801	)
Adjustments to derive adjusted EBITDA from unconsolidated joint ventures:
Distributions from unconsolidated joint ventures to AMB		(7,379	)		(4,455	)		(24,684	)		(11,687	)
AMB’s share of FFO, as adjusted		16,070			12,549			61,903			47,549
AMB’s share of interest expense		15,318			10,713			54,850			40,473

AMB’s share of adjusted EBITDA	$	111,621		$	100,478		$	427,446		$	493,400

Allocation to participating securities. On the Consolidated Statements of Operations, this represents net income attributable to AMB Property Corporation, net of preferred stock dividends, allocated to outstanding unvested restricted shares. On the Consolidated Statements of Fund from Operations, this represents FFO allocated to outstanding unvested restricted shares. For the three and twelve months ended December 31, 2010, there were 1,202 unvested restricted shares outstanding (in thousands). For the three and twelve months ended December 31, 2009, there were 920 unvested restricted shares outstanding (in thousands).

AMB’s share of calculations for certain financial measures represent the pro-rata portion of the applicable financial measure based on AMB’s percentage of equity interest in each of the consolidated and unconsolidated co-investment ventures accounted for in the applicable financial measure. AMB believes that “AMB’s share of” calculations are meaningful and useful supplemental measures, which enable both management and investors to assess the operations, earnings and growth of AMB in light of AMB’s ownership interest in its joint ventures and to compare the applicable measure to that of other companies. In addition, it allows for a more meaningful comparison of the applicable measure to that of other companies that do not consolidate any of their joint ventures. “AMB’s share of” calculations are not intended to reflect actual liability should there be a default under loans or a liquidation of the joint ventures. AMB’s computation of “AMB’s share of” measures may not be comparable to that of other real estate companies, as they may use different methodologies for calculating these measures.


		© 2011 AMB Property Corporation \| 23
		© 2011 AMB Property Corporation \| 23


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Reporting Definitions / Supplemental Financial Measures

AMB’s share of Other Balance Sheet Items. AMB believes that balance sheet information based on GAAP provides the most appropriate information about financial position. However, AMB considers balance sheet information reported on an owned and managed basis (such as AMB’s share of cash and cash equivalents and restricted cash, AMB’s share of accounts receivable (net) and other assets, AMB’s share of deferred rents receivable and deferred financing costs (net), and AMB’s share of accounts payable and other liabilities) to be useful supplemental measures to help the investors better understand AMB’s operating performance. See Reporting Definitions for definitions of “owned and managed” and “AMB’s share of.” AMB believes that AMB’s share of balance sheet items on an owned and managed basis helps management and investors make a comprehensive assessment of AMB’s total real estate portfolio and provides a better understanding of AMB’s operating activities. While such information is helpful to the investor, it does not provide balance sheet information as defined by GAAP and is not a true alternative to such GAAP measurements. Further, AMB’s computation of its share of balance sheet items on an owned and managed basis may not be comparable to that of other real estate companies, as they may use different methodologies for calculating these measures.

AMB’s share of total debt. AMB’s share of total debt is the pro rata portion of the total debt based on its percentage of equity interest in each of the consolidated and unconsolidated joint ventures holding the debt. AMB believes that its share of total debt is a meaningful supplemental measure, which enables both management and investors to analyze its leverage and to compare its leverage to that of other companies. In addition, it allows for a more meaningful comparison of its debt to that of other companies that do not consolidate their joint ventures. AMB’s share of total debt is not intended to reflect its actual liability should there be a default under any or all of such loans or a liquidation of the joint ventures. See Capitalization Detail for a reconciliation of total debt and AMB’s share of total debt.

AMB’s share of total debt-to-AMB’s share of total assets is calculated using the following definitions: AMB’s share of total debt is the pro rata portion of the total debt based on AMB’s percentage of equity interest in each of the consolidated and unconsolidated joint ventures holding the debt. AMB’s share of total assets is the pro rata portion of total gross book value of assets based on AMB’s percentage of equity interest in each of the consolidated and unconsolidated joint ventures holding the assets.

AMB’s share of total debt-to-total market capitalization is calculated using the following definitions: AMB’s share of total debt is the pro rata portion of the total debt based on AMB’s percentage of equity interest in each of the consolidated and unconsolidated joint ventures holding the debt. AMB’s definition of “total market capitalization” is AMB’s share of total debt plus preferred equity liquidation preferences plus market equity. AMB’s definition of “market equity” is the total number of outstanding shares of AMB’s common stock and common limited partnership units multiplied by the closing price per share of its common stock as of the period end.

Annualized base rent (ABR) is calculated as monthly base rent (cash basis) per the lease, as of a certain date, multiplied by 12. If free rent is granted, then the first positive rent value is used. Leases denominated in foreign currencies are translated using the currency exchange rate at period end.

Assets Under Management is AMB’s estimate of the value of the real estate it wholly owns or manages through its consolidated and unconsolidated co-investment ventures or for clients of AMB Capital Partners. Assets under management is calculated by adding the co-investment venture partner’s or client’s share of the carrying value of its real estate investment to AMB’s share of total market capitalization.

Average occupancy percentage represents the daily weighted occupancy of the total rentable square feet leased, including month-to-month leases, divided by total rentable square feet. Space is considered leased when the tenant has either taken physical or economic occupancy.

Carrying value is the sum of the most recent valuation of real estate investments plus subsequently incurred capital expenditures. Generally, each real estate investment is valued once a year.

Cash-basis NOI. Cash-basis NOI is defined as NOI less straight line rents and amortization of lease intangibles. AMB considers cash-basis NOI to be an appropriate and useful supplemental performance measure because cash basis NOI reflects the operating performance of the real estate portfolio excluding the effects of non-cash adjustments and provides a better measure of actual cash basis rental growth for a year-over-year comparison. However, cash-basis NOI should not be viewed as an alternative measure of financial performance since it does not reflect general and administrative expenses, interest expenses, depreciation and amortization costs, capital expenditures and leasing costs, or trends in development and construction activities that could materially impact results from operations. Further, cash-basis NOI may not be comparable to that of other real estate investment trusts, as they may use different methodologies for calculating cash-basis NOI.

For a reconciliation of NOI from net income for the quarter ended December 31, 2010, refer to the SS NOI definition. The following table reconciles AMB’ s share of cash-basis NOI from NOI for the quarter ended December 31, 2010 (dollars in thousands):


	For the Quarter Ended
	December 31, 2010
NOI	$	109,598
Straight-line rents and amortization of lease intangibles		(5,253	)
Consolidated joint venture cash NOI from continuing operations		(23,820	)

Wholly-owned property cash NOI		80,525
AMB’s share of consolidated joint venture cash NOI		10,945
AMB’s share of unconsolidated joint venture cash NOI		33,492
AMB’s share of transaction adjustments		2,523

AMB’s share of cash-basis NOI	$	127,485

Co-investment Ventures are Joint Ventures with institutional investors, managed by AMB from which AMB receives acquisition fees for third-party acquisitions, portfolio and asset management distributions or fees, as well as incentive distributions or promoted interests.

Co-investment venture operating results.


For the Quarter Ended December 31, 2010
									Income
	AMB’s					Property			(Loss) from
	Ownership					Operating			Continuing			Net
	Percentage			Revenues		Expenses			Operations			Income (Loss)			Cash NOI			FFO
Unconsolidated Co-investment Ventures
AMB U.S. Logistics Fund		35	%	$	71,549	$	(18,418	)	$	6,206		$	6,572		$	50,211		$	27,147
AMB Europe Logistics Fund		38	%		25,412		(5,668	)		(3,173	)		(3,173	)		19,195			4,281
AMB Japan Fund I		20	%		28,918		(6,506	)		4,931			4,931			22,052			12,992
AMB-SGP Mexico		22	%		6,503		(735	)		(4,336	) ⁽¹⁾		(4,336	) ⁽¹⁾		5,712			(1,298	)
AMB DFS Fund I		15	%		2		(429	)		(536	)		536			(427	)		(444	)
AMB Brazil Logistics Partners Fund I		25	%		199		—			(122	)		(122	)		199			(122	)
Consolidated Co-investment Ventures
AMB-SGP		50	%		10,085		(3,314	)		(737	)		(720	)		6,799			2,145
AMB Institutional Alliance Fund II		24	%		13,159		(2,975	)		3,550			3,550			9,940			6,824
AMB-AMS		39	%		3,932		(1,073	)		552			552			2,768			1,613


(1)		Includes $4.0 million of interest expense on loans from co-investment venture partners.

Co-investment venture partner’s share of calculations for certain financial measures represent the pro-rata portion of the applicable financial measure based on AMB’s co-investment venture partners’ percentage of equity interest in each of the consolidated or unconsolidated co-investment ventures accounted for in the applicable financial measure.

Co-investment venture partner’s (or co-investor’s) share of debt is the co-investment venture partner’s pro-rata portion of total debt.

Co-investment venture partner’s (or co-investor’s) share of equity is the pro-rata portion of the co-investment venture partner’s share of carrying value less the co-investment venture partner’s share of debt.

Completion is generally defined as properties that have reached Stabilization or properties that have been substantially complete for at least 12 months.

Development activities include ground-up development, redevelopments, land sales and value-added conversions.

Development margin is calculated as contribution value or disposition price less closing costs, minus estimated total investment, before the impact of cumulative real estate impairment losses, and any deferred rents, taxes or third party promotes before any deferrals on contributions, divided by the estimated total investment, before the impact of cumulative real estate impairment losses.


		© 2011 AMB Property Corporation \| 24
		© 2011 AMB Property Corporation \| 24


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Reporting Definitions / Supplemental Financial Measures

Estimated FFO, as adjusted, by Business. Estimated FFO, as adjusted, by Business is FFO, as adjusted generated by AMB’s Real Estate Operations, Development and Private Capital business. Estimated Development and Private Capital FFO, as adjusted, was determined by reducing Development Profits, net of taxes, and Private Capital revenues by their respective estimated share of general and administrative expenses, also defined as overhead. Development’s and Private Capital’s estimated allocation of total general and administrative expenses was based on their respective percentage of actual direct general and administrative expenses incurred. Estimated Real Estate Operations FFO, as adjusted represents total AMB FFO, as adjusted, less estimated FFO, as adjusted, attributable to Development and Private Capital. Management believes estimated FFO, as adjusted, by business line is a useful supplemental measure of its operating performance because it helps the investing public compare the operating performance of AMB’ s respective businesses to other companies’ comparable businesses. Further, AMB’s computation of FFO, as adjusted, by business line may not be comparable to that reported by other real estate investment trusts as they may use different methodologies in computing such measures.

Estimated investment capacity is AMB’s estimate of the gross real estate which could be acquired through the use of its equity commitments from co-investment venture partners plus AMB’s funding obligations and estimated debt capitalization.

Estimated total investment represents total estimated cost of development, expansion, including initial acquisition costs, prepaid ground leases, buildings, and associated carry costs. Estimated total investments are based on current forecasts and are subject to change. Non-U.S. Dollar investments are translated to U.S. Dollars using the exchange rate at period end.

Estimated yields on development projects are calculated from estimated annual cash NOI following occupancy stabilization divided by the estimated total investment. Yields exclude value added conversion projects and are calculated on an after-tax basis for international projects.

Fixed charge coverage. Fixed charge coverage is defined as Adjusted EBITDA divided by fixed charges. Fixed charges consist of interest expense less joint venture partner’s share of interest expense and amortization of finance costs and debt premiums, from continuing and discontinued operations, plus AMB’s share of interest expense from unconsolidated joint venture debt, capitalized interest, preferred unit distributions and preferred stock dividends. AMB uses fixed charge coverage to measure its liquidity. AMB believes fixed charge coverage is relevant and useful to investors because it permits fixed income investors to measure AMB’s ability to meet its interest payments on outstanding debt, make distributions to its preferred unitholders and pay dividends to its preferred shareholders. AMB’s computation of fixed charge coverage may not be comparable to fixed charge coverage reported by other companies.

The following table details the calculation of fixed charges for three and twelve months ended December 31, 2010 and 2009 (dollars in thousands):


	For the Quarters Ended						For the Years Ended
	December 31,						December 31,
Fixed charge	2010			2009			2010			2009
Interest expense, including amortization — continuing operations	$	33,036		$	30,772		$	130,338		$	118,867
Amortization of financing costs and debt premiums — continuing operations		(2,789	)		(3,045	)		(11,542	)		(11,691	)
Interest expense, including amortization — discontinued operations		(16	)		(6	)		49			(824	)
Amortization of financing costs and debt premiums — discontinued operations		16			(3	)		(11	)		(8	)
Capitalized interest		8,569			9,792			35,177			44,869
Preferred unit distributions		—			—			—			4,295
Preferred stock dividends		3,950			3,950			15,806			15,806
Less: Fixed charge attributable to consolidated joint ventures		(11,128	)		(13,234	)		(47,428	)		(52,332	)

Wholly-owned fixed charge		31,638			28,226			122,389			118,982

Adjustments to derive fixed charge from consolidated joint ventures:
Fixed charge attributable to consolidated joint ventures		11,128			13,234			47,428			52,332
Fixed charge attributable to noncontrolling interests		(5,865	)		(7,425	)		(25,388	)		(29,621	)
Adjustments to derive fixed charge from unconsolidated joint ventures:
AMB’s share of capitalized interest from unconsolidated joint ventures		439			233			1,376			780
AMB’s share of interest expense from unconsolidated joint ventures		15,318			10,713			54,850			40,473

Total fixed charge	$	52,658		$	44,981		$	200,655		$	182,946

Funds From Operations, as adjusted (“FFO, as adjusted”), Funds From Operations Per Share and Unit, as adjusted (“FFOPS, as adjusted”), Core FFO, as adjusted and Core FFO Per Share and Unit, as adjusted (“Core FFOPS, as adjusted”) (together with FFO, as adjusted, FFOPS, as adjusted, Core FFO, as adjusted and Core FFOPS, as adjusted, the “FFO Measures, as adjusted”). AMB believes that net income, as defined by U.S. GAAP, is the most appropriate earnings measure. However, AMB considers funds from operations, as adjusted (or FFO, as adjusted), FFO per share and unit, as adjusted (or FFOPS, as adjusted), Core FFO, as adjusted and Core FFO per share and unit, as adjusted (or Core FFOPS, as adjusted) to be useful supplemental measures of its operating performance. AMB defines FFOPS, as adjusted, as FFO, as adjusted, per fully diluted weighted average share of AMB’s common stock and operating partnership units. AMB calculates FFO, as adjusted, as net income (or loss) 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, as adjusted, of consolidated and unconsolidated joint ventures. AMB defines Core FFOPS, as adjusted as Core FFO, as adjusted per fully diluted weighted share of AMB’s common stock and operating partnership units. AMB calculates Core FFO, as adjusted as FFO, as adjusted excluding AMB’s share of development profits. These calculations also include adjustments for items as described below.

Unless stated otherwise, AMB includes the gains from development, including those from value-added conversion projects, before depreciation recapture, as a component of FFO, as adjusted. AMB believes gains from development should be included in FFO, as adjusted, to more completely reflect the performance of one of our lines of business. AMB believes that value-added conversion dispositions are in substance land sales and as such should be included in FFO, as adjusted, consistent with the real estate investment trust industry’s long standing practice to include gains on the sale of land in funds from operations. However, AMB’s interpretation of FFO, as adjusted, or FFOPS, as adjusted, 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 funds from operations or funds from operations per share and unit 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, as adjusted, 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, as adjusted, 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, as adjusted.

In addition, AMB calculates FFO, as adjusted, to exclude impairment and restructuring charges, debt extinguishment losses and the Series D preferred unit redemption discount. 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. Debt extinguishment losses generally included the costs of repurchasing debt securities. AMB repurchased certain tranches of senior unsecured debt to manage its debt maturities in response to the current financing environment, resulting in greater debt extinguishment costs. The Series D preferred unit redemption discount reflects the gain associated with the discount to liquidation preference in the Series D preferred unit redemption price less costs incurred as a result of the redemption. Although difficult to predict, these items may be recurring given the uncertainty of the current economic climate and its adverse effects on the real estate and financial markets. While not infrequent or unusual in nature, these items result from market fluctuations that can have inconsistent effects on AMB’s results of operations. The economics underlying these items reflect market and financing conditions in the short-term but can obscure AMB’s performance and the value of AMB’s long-term investment decisions and strategies. Management believes FFO, as adjusted, is significant and useful to both it and its investors. FFO, as adjusted, 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 and unobscured by costs (or gains) resulting from AMB’s management of its financing profile in response to the tightening of the capital markets. However, in addition to the limitations of FFO Measures, as adjusted, generally discussed below, FFO, as adjusted, does not present a comprehensive measure of AMB’s financial condition and operating performance. This measure is a modification of the NAREIT definition of funds from operations and should not be used as an alternative to net


		© 2011 AMB Property Corporation \| 25
		© 2011 AMB Property Corporation \| 25


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Reporting Definitions / Supplemental Financial Measures

income or cash as defined by U.S. GAAP.

AMB believes that the FFO Measures, as adjusted, 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, as adjusted, 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, as adjusted, 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, as adjusted, 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, as adjusted, can help the investing public compare the operating performance of a company’s real estate between periods or as compared to other companies. While funds from operations and funds from operations per share are relevant and widely used measures of operating performance of real estate investment trusts, the FFO Measures, as adjusted, 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, as adjusted, also do not consider the costs associated with capital expenditures related to AMB’s real estate assets nor are the FFO Measures, as adjusted, necessarily indicative of cash available to fund AMB’s future cash requirements. Management compensates for the limitations of the FFO Measures, as adjusted, by providing investors with financial statements prepared according to U.S. GAAP, along with this detailed discussion of the FFO Measures, as adjusted, and a reconciliation of the FFO Measures, as adjusted, to net income available to common stockholders, a U.S. GAAP measurement.

See Consolidated Statements of Funds from Operations, as adjusted for a reconciliation of FFO, as adjusted, from net (loss) income available to common stockholders and a reconciliation of Core FFO, as adjusted from FFO, as adjusted.

The following table reconciles projected Core FFO, as adjusted from projected net (loss) income available to common stockholders for the year ended December 31, 2011:


	2011
	Low			High
Projected net (loss) income available to common stockholders	$	(0.03	)	$	0.07
AMB’s share of projected depreciation and amortization		1.36			1.36
AMB’s share of depreciation on development profits recognized to date		—			—
AMB’s share of gains on dispositions of operating properties recognized to date		—			—
Loss on early extinguishment of debt		—			—
Restructuring charges		—			—
Impact of additional dilutive securities, other, rounding		(0.03	)		(0.03	)

Projected Funds From Operations, as adjusted (FFO, as adjusted)	$	1.30		$	1.40


AMB’s share of development gains recognized to date		—			—

Projected Core FFO, as adjusted⁽¹⁾	$	1.30		$	1.40

Amounts are expressed per share, except FFO, as adjusted, and Core FFO, as adjusted, which are expressed per share and unit.

(1) As development gains are difficult to predict in the current economic environment, management believes Projected Core FFO, as adjusted is the more appropriate and useful measure to reflect its assessment of AMB’s projected operating performance.

Gross book value represents the book value of the property (before accumulated depreciation), net of impairments, owned by the joint venture and excludes net other assets. Development book values include uncommitted land.

Gross operating margin is calculated as NOI divided by gross revenues (excluding straight-line rents and amortization of lease intangibles, reimbursable capital revenue and lease termination fees) for properties in the pool at period end.

Impairment charges represent the write down of assets due to estimated fair value being lower than carry value.

Interest coverage. Interest coverage is defined as adjusted EBITDA divided by AMB’s share of interest expense which consists of consolidated interest expense less joint venture partner ’s share of interest expense, including amortization, from continuing and discontinued operations and AMB’s share of interest expense from unconsolidated joint venture debt. AMB uses interest coverage to measure its liquidity. AMB believes interest coverage is relevant and useful to investors because it permits investors to measure AMB’s ability to meet its interest payments on outstanding debt. AMB’s computation of interest coverage may not be comparable to interest coverage reported by other companies.

The following table details AMB’s share of total interest for the three and twelve months ended December 31, 2010 and 2009 (dollars in thousands):


	For the Quarters Ended						For the Years Ended
	December 31,						December 31,
Interest	2010			2009			2010			2009
Interest expense, including amortization — continuing operations	$	33,036		$	30,772		$	130,338		$	118,867
Interest expense, including amortization — discontinued operations		(16	)		(6	)		49			(824	)
Joint venture partners’ share of interest expense		(5,121	)		(6,814	)		(23,226	)		(26,684	)
AMB’s share of interest expense from unconsolidated joint ventures		15,318			10,713			54,850			40,473

Total interest	$	43,217		$	34,665		$	162,011		$	131,832

Investment capacity represents estimated capacity based on the fund’s current cash and leverage limitations as of the most recent quarter end. The estimated investment capacities of AMB U.S. Logistics Fund and AMB Europe Logistics Fund, as open-end funds, are not limited.

Joint Ventures are all joint ventures, including Co-Investment Ventures, with real estate developers, other real estate operators, or institutional investors where AMB may or may not: have control, act as the manager and/or developer, earn asset management distributions or fees, or earn incentive distributions or promoted interests. In certain cases, AMB might provide development, leasing, property management and/or accounting services for which it may receive market compensation.

Joint venture partner’s share of calculations for certain financial measures represent the pro-rata portion of the applicable financial measure based on AMB’s joint venture partners’ percentage of equity interest in each of the consolidated or unconsolidated joint ventures accounted for in the applicable financial measure.

Market equity is defined as the total number of outstanding shares of AMB’s common stock and common limited partnership units multiplied by the closing price per share of its common stock at period end.

Net Asset Value (“NAV”). AMB believes NAV is a useful supplemental measure of its operating performance because it enables both management and investors to analyze the fair value of its business. An assessment of the fair value of a business involves estimates and assumptions and can be performed using various methods. AMB has presented certain financial measures related to its business that it believes may be useful to the investing public in calculating its NAV but has not presented any specific methodology nor provided any guidance on assumptions or estimates that should be used in the calculation.

Net Operating Income (“NOI”). See same store net operating income for discussion of NOI and a reconciliation of NOI from net income.

Occupancy percentage at period end represents the percentage of total rentable square feet leased, including month-to-month leases, divided by total rentable square feet at period end. Space is considered leased when the tenant has either taken physical or economic occupancy.

Owned and managed is defined by AMB as assets in which AMB has at least a 10% ownership interest, is the property or asset manager, and which it intends to hold for the long-term.

Owned and Managed Supplemental Cash Flow Information. AMB believes that cash flow information based on GAAP provides the most appropriate cash flow information. However, AMB considers cash flow information reported on an owned and managed basis (such as straight-line rents and amortization of lease intangibles, AMB’s share of straight-line rents and amortization of lease intangibles, gross lease termination fees, net lease termination fees, AMB’s share of net lease termination fees, tenant improvements, lease commissions and other


		© 2011 AMB Property Corporation \| 26
		© 2011 AMB Property Corporation \| 26


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Reporting Definitions / Supplemental Financial Measures

lease costs, building improvements, Co-investment partners’ share of capital expenditures and AMB’s share of recurring capital expenditures) to be useful supplemental measures to help the investors better understand AMB’s operating performance and cash flow. See Reporting Definitions for definitions of “owned and managed”, “AMB’s share of” and “Co-investment venture partners’ share of”. AMB believes that owned and managed cash flow information helps management and investors make a comprehensive assessment of the cash flow of AMB’s total real estate portfolio and provides a better understanding of AMB’s operating performance and activities. While owned and managed supplemental cash flow information is helpful to the investor, it does not provide cash flow information as defined by GAAP and are not true alternatives to such GAAP measurements. Further, AMB’s computation of owned and managed supplemental cash flow information may not be comparable to that of other real estate companies, as they may use different methodologies for calculating these measures.

Percent pre-leased represents the executed lease percentage of total square feet as of the reporting date.

Pre-stabilized development represents assets which have reached Completion but have not yet reached Stabilization.

Preferred, with respect to the capitalization ratios, is defined as preferred equity liquidation preferences.

Redevelopment projects represent those buildings that require significant capital expenditures (generally more than 25% of acquired cost or existing basis) to bring the buildings up to operating standards and stabilization (generally 90% leased).

Recurring capital expenditures represents non-incremental building improvements and leasing costs required to maintain current revenues. Recurring capital expenditures do not include estimated acquisition capital expenditures which were taken into consideration when underwriting the purchase of a building or which are incurred to bring a building up to operating standards.

Rent changes on renewals and rollovers are calculated as the difference, weighted by square feet, of the net ABR due the first month of a term commencement and the net ABR due the last month of the former tenant’s term. If free rent is granted, then the first positive full rent value is used as a point of comparison. The rental amounts exclude base stop amounts, holdover rent and premium rent charges. If either the previous or current lease terms are under 12 months, then they are excluded from this calculation. If the lease is first generation or there is no prior lease for comparison, then it is excluded from this calculation.

Same Store Net Operating Income, Cash-basis SS NOI (“SS NOI”) and Net Operating Income (“NOI”). AMB defines 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 gains (losses), 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 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 Cash-basis SS NOI as NOI on a same store basis excluding straight line rents and amortization of lease intangibles. See definition of “same store pool.” 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.

The following table reconciles consolidated cash-basis SS NOI and NOI from net loss for the three and twelve months ended December 31, 2010 and 2009 (dollars in thousands):


	For the Quarters Ended						For the Years Ended
	December 31,						December 31,
	2010			2009			2010			2009
Net income (loss)	$	11,309		$	(10,102	)	$	33,594		$	(27,960	)
Private capital income		(9,001	)		(10,615	)		(30,860	)		(38,013	)
Depreciation and amortization		51,353			50,718			196,636			175,334
Real estate impairment losses		—			—			—			172,059
General and administrative and fund costs		33,783			31,369			125,155			116,404
Restructuring charges		—			2,544			4,874			6,368
Total other income and expenses		27,852			39,693			108,773			89,170
Total discontinued operations		(5,698	)		(2,938	)		(24,242	)		(96,222	)

NOI		109,598			100,669			413,930			397,140
Less non same-store NOI		(22,592	)		(15,805	)		(73,535	)		(47,582	)
Less non cash adjustments⁽¹⁾		(2,129	)		(1,596	)		(9,045	)		(2,803	)

Cash-basis same-store NOI	$	84,877		$	83,268		$	331,350		$	346,755

Less lease termination fees	$	(177	)	$	(247	)	$	(3,059	)	$	(2,692	)

Cash-basis same-store NOI, excluding lease termination fees	$	84,700		$	83,021		$	328,291		$	344,063


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

Same store NOI growth is the change in the NOI (excluding straight-line rents and amortization of lease intangibles) of the same store pool from the prior year reporting period to the current year reporting period.

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, 2008.

Second generation TIs and LCs per square foot are total tenant improvements, lease commissions and other leasing costs incurred during leasing of second generation space divided by the total square feet leased. Costs incurred prior to leasing available space are not included until such space is leased. Second generation space excludes newly developed square footage or square footage vacant at acquisition.

Stabilization is generally defined as properties that are 90% occupied.

Stabilized cap rates are calculated as cash NOI or NOI, as applicable, stabilized to market occupancy (generally 95%) divided by total acquisition cost. The total acquisition cost basis includes the initial purchase price, the effects of marking assumed debt to market, lease intangible adjustments, estimated acquisition capital expenditures, and leasing costs necessary to achieve stabilization. AMB defines cash NOI as NOI excluding straight line rents and amortization of lease intangibles.


		© 2011 AMB Property Corporation \| 27
		© 2011 AMB Property Corporation \| 27


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Reporting Definitions / Supplemental Financial Measures

Tenant retention is the square footage of all leases rented by existing tenants divided by the square footage of all expiring and rented leases during the reporting period, excluding the square footage of tenants that default or buy-out prior to expiration of their lease, short-term tenants and the square footage of month-to-month leases.

Total market capitalization is defined by AMB as AMB’s share of total debt plus preferred equity liquidation preferences plus market equity (unless otherwise noted).

Value-added acquisitions represent unstabilized properties which AMB acquires as a part of management’s current belief that the discount in pricing attributed to the operating challenges of the property could provide greater returns, once stabilized, than the returns of stabilized properties, which are not value added acquisitions. Value added acquisitions generally have one or more of the following characteristics: (i) existing vacancy, typically in excess of 20%, (ii) short-term lease rollover, typically during the first two years of ownership, or (iii) significant capital improvement requirements, typically in excess of 20% of the purchase price. AMB excludes value-added acquisitions from its owned and managed and consolidated operating statistics prior to stabilization (generally 90% leased) in order to provide investors with data which it feels better reflects the performance of its core portfolio.

Value-added conversion projects represent the repurposing of industrial properties to a higher and better use, including office, residential, retail, research & development or manufacturing. Activities required to prepare the property for conversion to a higher and better use may include such activities as rezoning, redesigning, reconstructing and retenanting. The sales price of the value-added conversion project is generally based on the underlying land value based on its ultimate use and as such, little to no residual value is ascribed to the industrial building(s).

Wholly-owned fixed charge coverage is defined as wholly-owned adjusted EBITDA divided by wholly-owned fixed charges. AMB believes that wholly-owned fixed charge coverage is useful to certain investors whose focus is to understand AMB’s ability to cover those fixed charges which arise only from obligations which are solely AMB’s with adjusted EBITDA which is solely attributed to 100% owned assets and activities plus cash distributions from joint ventures. See Fixed Charge Coverage.


		© 2011 AMB Property Corporation \| 28
		© 2011 AMB Property Corporation \| 28


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Contacts


Contact Name	Title	Phone	E-mail Address

Hamid R. Moghadam	Chairman & Chief Executive Officer	(415) 733-9401	hmoghadam@amb.com

Thomas S. Olinger	Chief Financial Officer	(415) 733-9405	tolinger@amb.com

Guy F. Jaquier	President, Europe and Asia; President, Private Capital	(415) 733-9406	gjaquier@amb.com

Eugene F. Reilly	President, The Americas	(617) 619-9333	ereilly@amb.com

Tracy A. Ward	Vice President, IR & Corporate Communications	(415) 733-9565	tward@amb.com


Corporate Headquarters	Investor Relations	Other Primary Office Locations

AMB Property Corporation	Tel: (415) 394-9000	Amsterdam	Boston	Chicago	Los Angeles
Pier 1, Bay 1	Fax: (415) 394-9001	México City	Shanghai	Singapore	Tokyo
San Francisco, CA 94111	E-mail: ir@amb.com
Tel: (415) 394-9000	Website: www.amb.com
Fax: (415) 394-9001


		© 2011 AMB Property Corporation \| 29
		© 2011 AMB Property Corporation \| 29


		2010 Fourth Quarter Earnings Conference Call 2/3/2011		Forward-Looking Statements

Some of the information included in this report and the presentations to be held in connection therewith contains forward-looking statements, such as those related to factors regarding positive net absorption, renewal of our lines of credit, future financing activity, ability to access attractive financing globally, our growth opportunities, long term prospects for AMB and industrial real estate, scaled overhead structure, capital required for growth and funding sources, our future debt and JV debt structure and strategies regarding average remaining terms, average rates, floating rates, bond issuances, credit facilities and secured debt, consolidated vs. unconsolidated debt, share of JV debt vs. wholly owned debt, NAV, compound annual growth rate, teams fully engaged in best markets, our buying advantage and investment opportunities available to us (including distressed or strategic transactions), utilization of low yielding assets and acquiring assets in excess of cost of capital, recovery in leading business indicators and fundamentals, including rental rates, occupancy, real estate values, and investor/customer interest, FFO, as adjusted, Core FFO, as adjusted, NOI and earnings generated by increased occupancy, rental rate recovery, lease up of the development portfolio, monetization of land bank and development capability, and the formation of new ventures, capital deployment and other value creating activities, the consummation of asset sales marketed, under contract or LOI, our opportunities and plans (including those regarding our global positioning and future capital deployment), estimated financial and performance results, our projected funds from operations, future assets under management, same store and/or cash net operating income, occupancy, development portfolio lease-up, revenue, G&A, overhead expenses, deployed equity and other financial and operational guidance, our future performance compared to peers and other market indices, rent growth, industrial and other market, GDP and trade growth, market drivers, trends and forecasts, port opportunities, on-tarmac opportunities, hiring, performance and retention of key personnel, leveraging of relationships, continuation and effectiveness of strategic drivers, information regarding our development, value-added conversion, redevelopment and value-added acquisition projects (including stabilization or completion dates, square feet at stabilization or completion, sale or contribution dates, yields from such projects, our share of remaining funding, costs and total investment amounts, scope, location and timing of development starts and other projects, margins, projected gains and returns, sustainability, profitability, demand for projects, targeted value-added conversion and acquisition projects, intent of property use, redevelopment and conversion timelines, entitlement and repositioning potential of land), ability to deliver customer solutions, strength of lender and customer relationships, lease expirations, performance and value-creation of investments and market entry opportunities, real estate valuations, capitalization rates, acquisition capital and volume, scope and build out and monetization potential of land inventory, co-investment venture and other estimated investment capacity, terms of the co-investment ventures, performance, revenues and returns on investment, target leverage, timing and amounts of incentive, asset management, acquisition and other private capital distributions, promotes and fees, private capital demand, amounts of new investment, launching of additional joint ventures, termination of funds, planned gross capitalization, future balance sheet capacity to cover capital requirements, our plans and ability to retire, refinance and issue secured and unsecured debt and maintain fixed charge coverage at certain levels, ability to exercise or maintain credit extensions, our position to maintain a solid financial position, maintain leverage targets and address debt maturities and interest rate changes, 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 numerous 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,” “forecasting,” “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 should not be read as guarantees of future performance or results, and will not necessarily be accurate indicators of whether, or the time at which, such performance or results will be achieved. There is no assurance that the events or circumstances reflected in forward-looking statements will occur or be achieved. 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: changes in general economic conditions in California, the U.S. or globally (including financial market fluctuations), global trade or in the real estate sector (including risks relating to decreasing real estate valuations and impairment charges); risks associated with using debt to fund the company’s business activities, including refinancing and interest rate risks (including inflation risks); the company’s failure to obtain, renew, or extend necessary financing or access the debt or equity markets; the company’s failure to maintain its current credit agency ratings or comply with its debt covenants; risks related to the company’s obligations in the event of certain defaults under co-investment venture and other debt; risks associated with equity and debt securities financings and issuances (including the risk of dilution); defaults on or non-renewal of leases by customers or renewal at lower than expected rent or failure to lease at all or on expected terms; difficulties in identifying properties, portfolios of properties, or interests in real-estate related entities or platforms to acquire and in effecting acquisitions on advantageous terms and the failure of acquisitions to perform as the company expects; unknown liabilities acquired in connection with the acquired properties, portfolios of properties, or interests in real-estate related entities; the company’s failure to successfully integrate acquired properties and operations; risks and uncertainties affecting property development, redevelopment and value-added conversion (including construction delays, cost overruns, the company’s inability to obtain necessary permits and financing, the company’s inability to lease properties at all or at favorable rents and terms, and public opposition to these activities); the company’s failure to set up additional funds, attract additional investment in existing funds or to contribute properties to its co-investment ventures due to such factors as its inability to acquire, develop, or lease properties that meet the investment criteria of such ventures, or the co-investment ventures’ inability to access debt and equity capital to pay for property contributions or their allocation of available capital to cover other capital requirements; risks and uncertainties relating to the disposition of properties to third parties and the company’s ability to effect such transactions on advantageous terms and to timely reinvest proceeds from any such dispositions; risks of doing business internationally and global expansion, including unfamiliarity with the new markets and currency and hedging risks; risks of changing personnel and roles; risks related to suspending, reducing or changing the company’s dividends; losses in excess of the company’s insurance coverage; changes in local, state and federal laws and regulatory requirements, including changes in real estate, tax and zoning laws; increases in real property tax rates; risks associated with the company’s tax structuring; increases in interest rates and operating costs or greater than expected capital expenditures; environmental uncertainties; risks related to natural disasters; and our failure to qualify and maintain our status as a real estate investment trust. Our success also depends upon economic trends generally, various market conditions and fluctuations and those other risk factors discussed under the heading “Risk Factors” and elsewhere in our most recent annual report on Form 10-K for the year ended December 31, 2009.


		© 2011 AMB Property Corporation \| 30
		© 2011 AMB Property Corporation \| 30

Attached files

Prologis, Inc. Reports

Also read