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

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8-K - FORM 8-K - Prologis, Inc.	f57090e8vk.htm

Exhibit 99.1


		Company Profile		2010 Third Quarter Earnings Conference Call

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 September 30, 2010, AMB owned or had investments in, on a consolidated basis or through unconsolidated joint ventures, properties and development projects expected to total approximately 158.4 million square feet (14.7 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⁾	11.8 msf	Operating Portfolio⁽¹⁾	13.5 msf
Development Portfolio⁽²⁾⁽³⁾	4.4 msf	Development Portfolio⁽²⁾⁽³⁾	2.4 msf	Development Portfolio⁽²⁾⁽³⁾	3.1 msf
Land Inventory⁽³⁾	2,306 acres	Land Inventory⁽³⁾	227 acres	Land Inventory⁽³⁾	130 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.


		Highlights (dollars in thousands, except per share data)		2010 Third Quarter Earnings Conference Call


	For the Quarters Ended September 30,							For the Nine Months Ended September 30,
	2010		2009		% Change			2010		2009			% Change
Revenues	$	158,696	$	153,567		3.3	%	$	468,988	$	460,265			1.9	%
Adjusted EBITDA⁽¹⁾		107,955		151,238		(28.6	%)		316,055		397,130			(20.4	%)
Net income (loss) available to common stockholders		6,635		62,790		(89.4	%)		5,090		(42,513	)		112.0	%
FFO, as adjusted⁽¹⁾⁽²⁾		54,998		106,531		(48.4	%)		154,193		240,685			(35.9	%)
Per diluted share and unit
EPS	$	0.04	$	0.43		(90.7	%)	$	0.03	$	(0.33	)		109.1	%
FFO, as adjusted⁽¹⁾⁽²⁾		0.32		0.71		(54.9	%)		0.94		1.80			(47.8	%)
Dividends per common share		0.28		0.28		0.0	%		0.84		0.84			0.0	%


Financial⁽³⁾		• Completed $1.4 billion in capital markets transactions • Approximately $1.7 billion in liquidity; consisting of approximately $1.5 billion of availability on lines of credit and more than $200 million of unrestricted cash and cash equivalents


Operations⁽³⁾		• 92.6% occupancy at the end of the third quarter; 91.7% average occupancy • Third quarter cash-basis same store NOI⁽¹⁾ decrease of 3.0% • 70.2% third quarter tenant retention; 67.1% for the trailing four quarters • Commenced 8.1 msf of leases in the third quarter


Capital Deployment⁽³⁾		• Leased 1.7 msf in the development portfolio; approximately 2.5 msf remaining to stabilize the static 12/31/09 development portfolio • Completed $39.4 million in dispositions in the third quarter; $97.3 million of contributions and dispositions year-to-date • Acquired five properties⁽⁴⁾ totaling approximately $110.9 million in the third quarter, $199.1 million year-to-date • Acquired first 86-acre land parcel in Rio de Janeiro, Brazil, the third acquisition with our joint venture partner, CCP


Private Capital		• Formed AMB Mexico Fondo Logistico, the first of its kind industrial venture for Mexican pension plans (AFORES), raised third-party capital of $3.3 billion pesos (USD $242.7 million) and committed USD $60.7 million for total equity of USD $303.4 million for future investment • $95.1 million in new third-party equity commitments, comprised of $50.5 million in AMB U.S. Logistics Fund and $44.6 million in AMB Europe Fund I • Subsequent to quarter end, $100 million of new equity investments by AMB, comprised of $50 million in AMB U.S. Logistics Fund and $50 million in AMB Europe Fund I


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


		Overview of Funds From Operations, as adjusted⁽¹⁾		2010 Third Quarter Earnings Conference Call

Funds From Operations, as adjusted^(1)(2)(4)
(per diluted common share and unit)

Estimated FFO, as adjusted by Business⁽¹⁾⁽⁴⁾
(per diluted common share and unit)


	For the Years Ended December 31,						For the Nine Months Ended
	2008			2009			September 30, 2010

Real estate operations, net of unallocated overhead	$	1.53		$	1.19		$	0.79
Overhead reallocation		0.46			0.32			0.21

Real estate operations FFO, as adjusted	$	1.99		$	1.51		$	1.00
% of reported FFO, as adjusted		68.6	%		72.2	%		106.4	%
Development Gains		0.72			0.63			0.02
Overhead allocation		(0.33	)		(0.21	)		(0.14	)

Development FFO, as adjusted	$	0.39		$	0.42		$	(0.12	)
% of reported FFO, as adjusted		13.5	%		20.1	%		(12.8	%)
Private Capital Revenues		0.65			0.27			0.13
Overhead allocation		(0.13	)		(0.11	)		(0.07	)

Private Capital FFO, as adjusted	$	0.52		$	0.16		$	0.06
% of reported FFO, as adjusted		17.9	%		7.7	%		6.4	%

Total FFO, as adjusted	$	2.90		$	2.09		$	0.94

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)		For a reconciliation of FFO, as adjusted from net income for the years ended December 31, 2009 and 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.
(4)		See page 5 for a reconciliation to derive FFO, as adjusted.
(5)		Management revenues consist of asset management distributions or fees, acquisition fees for third party acquisitions and priority distributions, as well as market compensation for development and other services.


		Consolidated Statements of Operations (in thousands, except per share data)		2010 Third Quarter Earnings Conference Call


	For the Quarters Ended September 30,						For the Nine Months Ended September 30,
	2010			2009			2010			2009
Revenues
Rental revenues	$	151,127		$	145,681		$	447,129		$	432,889
Private capital revenues		7,569			7,886			21,859			27,376

Total revenues		158,696			153,567			468,988			460,265

Costs and expenses
Property operating costs		(46,803	)		(45,146	)		(142,480	)		(135,100	)
Depreciation and amortization		(50,590	)		(45,975	)		(145,437	)		(124,808	)
General and administrative		(28,715	)		(27,169	)		(90,758	)		(84,123	)
Restructuring charges		(1,029	)		—			(4,874	)		(3,824	)
Fund costs		(146	)		(240	)		(613	)		(824	)
Real estate impairment losses		—			—			—			(172,059	)
Other expenses⁽¹⁾		(1,330	)		(3,049	)		(1,251	)		(6,593	)

Total costs and expenses		(128,613	)		(121,579	)		(385,413	)		(527,331	)

Other income and expenses
Development profits, net of taxes		717			1,220			5,719			34,506
Equity in earnings of unconsolidated joint ventures, net		3,348			3,257			12,416			7,507
Other income⁽¹⁾		1,299			3,452			2,035			3,911
Interest expense, including amortization		(32,125	)		(27,498	)		(97,364	)		(88,216	)
Loss on early extinguishment of debt		(1,967	)		—			(2,546	)		(657	)

Total other income and expenses, net		(28,728	)		(19,569	)		(79,740	)		(42,949	)

Income (loss) from continuing operations		1,355			12,419			3,835			(110,015	)
Discontinued operations
Income attributable to discontinued operations		742			2,609			2,707			2,017
Development profits, net of taxes		—			53,002			—			53,002
Gains from sale of real estate interests, net of taxes		11,495			8,434			15,743			37,138

Total discontinued operations		12,237			64,045			18,450			92,157

Net income (loss)		13,592			76,464			22,285			(17,858	)
Noncontrolling interests’ share of net income (loss)
Joint venture partners’ share of net income		(2,527	)		(6,058	)		(4,220	)		(8,829	)
Joint venture partners’ and limited partnership unitholders’ share of development profits		(6	)		(1,388	)		(93	)		(2,445	)
Preferred unitholders		—			(1,431	)		—			(4,295	)
Limited partnership unitholders		(132	)		(447	)		(5	)		3,543

Total noncontrolling interests’ share of net income (loss)		(2,665	)		(9,324	)		(4,318	)		(12,026	)

Net income (loss) attributable to AMB Property Corporation		10,927			67,140			17,967			(29,884	)
Preferred stock dividends		(3,952	)		(3,952	)		(11,856	)		(11,856	)
Allocation to participating securities⁽²⁾		(340	)		(398	)		(1,021	)		(773	)

Net income (loss) available to common stockholders	$	6,635		$	62,790		$	5,090		$	(42,513	)

Net income (loss) per common share (diluted)	$	0.04		$	0.43		$	0.03		$	(0.33	)

Weighted average common shares (diluted)		166,997			145,659			160,187			129,860


(1)		Includes changes in liabilities and assets associated with AMB’s deferred compensation plan for the three and nine months ended September 30, 2010 of $1,086 and $391, respectively.
(2)		Represents net income attributable to AMB Property Corporation, net of preferred stock dividends, allocated to outstanding unvested restricted shares. For the three and nine months ended September 30, 2010, there were 1,216 unvested restricted shares outstanding. For the three and nine months ended September 30, 2009, there were 920 unvested restricted shares outstanding.


		Consolidated Statements of Funds from Operations, as adjusted⁽¹⁾ (in thousands, except per share data)		2010 Third Quarter Earnings Conference Call


	For the Quarters Ended September 30,						For the Nine Months Ended September 30,
	2010			2009			2010			2009
Net income (loss) available to common stockholders	$	6,635		$	62,790		$	5,090		$	(42,513	)
Gains from sale or contribution of real estate interests, net of taxes		(11,495	)		(8,434	)		(15,743	)		(37,138	)
Depreciation and amortization
Total depreciation and amortization		50,590			45,975			145,437			124,808
Discontinued operations’ depreciation		890			1,260			3,224			5,202
Non-real estate depreciation		(1,969	)		(1,927	)		(6,526	)		(6,017	)
Adjustment for depreciation on development profits		—			—			(1,546	)		—
Adjustments to derive FFO, as adjusted from consolidated joint ventures
Joint venture partners’ noncontrolling interests (Net income)		2,527			6,058			4,220			8,829
Limited partnership unitholders’ noncontrolling interests (Net income (loss))		132			447			5			(3,543	)
Limited partnership unitholders’ noncontrolling interests (Development profits)		11			1,388			117			2,445
FFO, as adjusted attributable to noncontrolling interests		(7,855	)		(8,587	)		(20,797	)		(24,326	)
Adjustments to derive FFO, as adjusted from unconsolidated joint ventures
AMB’s share of net income		(3,348	)		(3,257	)		(12,416	)		(7,507	)
AMB’s share of FFO, as adjusted		15,936			11,079			45,833			35,000
Adjustments for impairments, restructuring charges and debt extinguishment
Real estate impairment losses		—			—			—			172,059
Discontinued operations’ real estate impairment losses		—			—			—			9,794
Restructuring charges		1,029			—			4,874			3,824
Loss on early extinguishment of debt		1,967			—			2,546			657
Allocation to participating securities⁽²⁾		(52	)		(261	)		(125	)		(889	)

Funds from operations, as adjusted⁽¹⁾	$	54,998		$	106,531		$	154,193		$	240,685

FFO, as adjusted per common share and unit (diluted)	$	0.32		$	0.71		$	0.94		$	1.80

Weighted average common shares and units (diluted)		170,985			149,088			164,277			133,351


(1)		See reporting definitions and supplemental financial measures disclosures.
(2)		Represents amount of FFO allocated to outstanding unvested restricted shares. For the three and nine months ended September 30, 2010, there were 1,216 unvested restricted shares. For the three and nine months ended September 30, 2009, there were 920 unvested restricted shares.


		Consolidated Balance Sheets (dollars in thousands)		2010 Third Quarter Earnings Conference Call


	As of
	September 30, 2010			December 31, 2009
Assets
Investments in real estate
Total investments in properties	$	6,871,262		$	6,708,660
Accumulated depreciation and amortization		(1,219,307	)		(1,113,808	)

Net investments in properties		5,651,955			5,594,852
Investments in unconsolidated joint ventures		690,088			462,130
Properties held for sale or contribution, net		228,349			214,426

Net investments in real estate		6,570,392			6,271,408
Cash and cash equivalents and restricted cash		205,591			206,077
Accounts receivable, net		159,093			155,958
Other assets		188,650			208,515

Total assets	$	7,123,726		$	6,841,958


Liabilities and equity
Liabilities
Secured debt	$	968,085		$	1,096,554
Unsecured senior debt		1,571,271			1,155,529
Unsecured credit facilities		249,108			477,630
Other debt		278,443			482,883
Accounts payable and other liabilities		357,800			338,042

Total liabilities		3,424,707			3,550,638
Equity
Stockholders’ equity
Common equity		3,107,871			2,716,604
Preferred equity		223,412			223,412

Total stockholders’ equity		3,331,283			2,940,016
Noncontrolling interests
Joint venture partners		306,575			289,909
Limited partnership unitholders		61,161			61,395

Total noncontrolling interests		367,736			351,304

Total equity		3,699,019			3,291,320

Total liabilities and equity	$	7,123,726		$	6,841,958


		Supplemental Cash Flow Information (dollars in thousands)		2010 Third Quarter Earnings Conference Call


	For the Quarters Ended						For the Nine Months Ended
	September 30,						September 30,
	2010			2009			2010			2009
AMB’s Owned and Managed Portfolio:⁽¹⁾⁽²⁾
Supplemental Information:
Straight-line rents and amortization of lease intangibles	$	5,790		$	5,975		$	22,210		$	20,141
AMB’s share of straight-line rents and amortization of lease intangibles	$	2,944		$	2,179		$	13,297		$	8,926
Gross lease termination fees	$	1,731		$	1,759		$	3,330		$	5,486
Net lease termination fees⁽³⁾	$	1,431		$	1,214		$	2,595		$	3,916
AMB’s share of net lease termination fees	$	1,420		$	852		$	2,381		$	1,844

Recurring capital expenditures:
Tenant improvements	$	8,206		$	8,651		$	24,236		$	13,697
Lease commissions and other lease costs		8,899			8,952			25,530			19,517
Building improvements		11,301			4,262			24,112			13,619

Sub-total		28,406			21,865			73,878			46,833
Co-investment venture partners’ share of capital expenditures		(8,076	)		(8,642	)		(21,693	)		(17,492	)

AMB’s share of recurring capital expenditures	$	20,330		$	13,223		$	52,185		$	29,341


AMB’s Consolidated Portfolio:
Supplemental Information:
Straight-line rents and amortization of lease intangibles	$	2,245		$	1,969		$	11,052		$	6,903
AMB’s share of straight-line rents and amortization of lease intangibles	$	1,916		$	1,965		$	9,902		$	6,872
Gross lease termination fees	$	1,731		$	1,383		$	2,964		$	2,815
Net lease termination fees⁽³⁾	$	1,431		$	855		$	2,322		$	1,597
AMB’s share of net lease termination fees	$	1,420		$	726		$	2,293		$	1,322

Recurring capital expenditures:
Tenant improvements	$	6,370		$	4,860		$	17,519		$	7,938
Lease commissions and other lease costs		6,873			5,965			17,585			13,273
Building improvements		7,136			3,214			16,560			10,113

Sub-total		20,379			14,039			51,664			31,324
Co-investment venture partners’ share of capital expenditures		(2,460	)		(1,928	)		(6,271	)		(4,668	)

AMB’s share of recurring capital expenditures	$	17,919		$	12,111		$	45,393		$	26,656


(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.


		Operations Overview⁽¹⁾ (dollars in thousands)		2010 Third Quarter Earnings Conference Call

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

YTD Average Occupancy⁽²⁾

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

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

Top Customers


		Square
		Feet		ABR		% of ABR

1	Deutsche Post World Net (DHL)		3,127,230	$	28,452		3.2	%
2	United States Government		1,355,450	$	20,228		2.2	%
3	Sagaw a Express		1,172,253	$	19,404		2.2	%
4	Nippon Express		1,029,170	$	14,942		1.7	%
5	FedEx Corporation		1,400,090	$	14,780		1.6	%
6	Panalpina		1,336,351	$	9,030		1.0	%
7	Kuehne + Nagel Inc.		1,480,692	$	8,801		1.0	%
8	Caterpillar Logistics Services		543,039	$	8,698		1.0	%
9	La Poste		903,543	$	8,245		0.9	%
10	BAX Global/Schenker/Deutsche Bahn		843,179	$	8,117		0.9	%

	Subtotal		13,190,997	$	140,697		15.7	%

	Top 11-20 Customers		5,955,376		50,591		5.5	%

	Total		19,146,373	$	191,288		21.2	%


(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.


		Operating Statistics⁽¹⁾		2010 Third Quarter Earnings Conference Call


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


Square feet		139,822,998			136,703,087			127,051,011			127,522,980
Percentage of owned & managed square feet								90.9	%		93.3	%

Occupancy
Occupancy percentage at period end⁽²⁾		92.6	%		91.8	%		92.1	%		91.4	%
Occupancy percentage at period end (prior year)		91.0	%		90.5	%		91.4	%		91.1	%

Average occupancy percentage⁽²⁾		91.7	%		90.1	%		91.3	%		89.7	%
Average occupancy percentage (prior year)		90.4	%		91.1	%		90.3	%		91.2	%

Weighted average lease terms (years)
Original		6.2			6.3			6.2			6.3
Remaining		3.4			3.5			3.2			3.4


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


Tenant retention⁽²⁾		67.1	%		66.2	%		66.0	%		65.6	%

Rent change on renewals and rollovers⁽²⁾
Percentage		(11.8	%)		(11.2	%)		(11.9	%)		(11.2	%)
Same space square footage commencing (millions)		25.1			26.2			24.7			26.1

Second generation TIs and LCs per square foot⁽²⁾
Retained	$	1.43		$	1.20
Re-tenanted	$	2.59		$	2.81
Weighted average	$	2.01		$	1.96
Second generation square footage commencing (millions)		31.4			32.4

Gross operating margin⁽²⁾		70.6	%		70.5	%		71.4	%		71.4	%


	Same Store Pool⁽²⁾
	Quarter Ended			Nine Months Ended
Cash Basis NOI percent change⁽²⁾	September 30, 2010			September 30, 2010

Decrease in revenues excluding lease termination fees⁽³⁾		(2.6	%)		(3.6	%)
Increase (decrease) in expenses⁽³⁾		(1.6	%)		(0.8	%)
Decrease in NOI excluding lease termination fees⁽²⁾⁽³⁾		(3.0	%)		(4.6	%)
Decrease in NOI including lease termination fees⁽²⁾⁽³⁾		(3.0	%)		(4.9	%)


(1)		Owned and managed portfolio, not including value-added acquisitions.

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

(3)		For the quarter ended September 30, 2010, on a consolidated basis, the percent change was (2.9)%, 1.4%, (4.8)% and (4.3)%, respectively, for decrease in revenues excluding lease termination fees, increase in expenses, decrease in NOI excluding lease termination fees and decrease in NOI including lease termination fees. For the nine months ended September 30, 2010, on a consolidated basis, the percent change was (4.3)%, 1.4%, (6.7)% and (6.5)%, respectively, for decrease in revenues excluding lease termination fees, increase in expenses, decrease in NOI excluding lease termination fees and decrease in NOI including lease termination fees.


		Portfolio Overview		2010 Third Quarter Earnings Conference Call


														% of Total											Year-to-Date			Trailing Four
														Owned and			AMB’s Share						Annualized		Same Store NOI			Quarters Rent
	Square Feet					Placed in						Square Feet		Managed Square			of Square			Year-to-Date			Base Rent		Growth Without			Change on
	as of		Acquired			Operations			Disposed			as of		Feet as of			Feet as of			Average			psf as of		Lease			Renewals and
	6/30/2010		Square Feet			Square Feet⁽¹⁾			Square Feet			9/30/2010		9/30/2010			9/30/2010			Occupancy			9/30/2010		Termination Fees⁽²⁾			Rollovers⁽²⁾

Southern California		18,959,573		—			—						18,959,573		13.6	%		59.5	%		92.3	%	$	6.34		(0.9	%)		(15.5	%)
Chicago		13,118,853		—			—			(26,065	)		13,092,788		9.4	%		58.3	%		90.8	%		5.01		(5.4	%)		(16.9	%)
No. New Jersey/New York		12,354,345		—			700,645			—			13,054,990		9.3	%		59.8	%		86.9	%		7.07		(11.2	%)		(14.6	%)
San Francisco Bay Area		10,960,044		—						—			10,960,044		7.8	%		77.7	%		91.8	%		6.29		(5.6	%)		(3.4	%)
Seattle		7,882,575		—			786			—			7,883,361		5.6	%		57.2	%		90.3	%		5.41		(12.8	%)		(7.3	%)
South Florida		6,363,198		882,400			189,791			(401,650	)		7,033,739		5.0	%		68.8	%		96.1	%		6.95		6.5	%		(29.4	%)
U.S. On-Tarmac		2,467,838		—			345			—			2,468,183		1.8	%		93.1	%		87.7	%		19.25		(4.9	%)		(9.1	%)
Other U.S. Markets		28,962,048		—			3,430			(40,800	)		28,924,678		20.7	%		65.4	%		87.4	%		5.25		(8.8	%)		(17.3	%)

U.S. Subtotal / Wtd Avg		101,068,474		882,400			894,997			(468,515	)		102,377,356		73.2	%		64.3	%		90.3	%	$	6.24		(5.9	%)		(13.9	%)

Canada		3,564,450		—			—			—			3,564,450		2.5	%		100.0	%		98.6	%	$	5.52		35.6	%		(19.7	%)

Mexico City		4,572,848		—			11,625			—			4,584,473		3.3	%		42.4	%		95.3	%		5.60		(0.1	%)		(14.3	%)
Guadalajara		2,890,526		—			8,056			—			2,898,582		2.1	%		21.6	%		92.4	%		4.36		(12.8	%)		(7.6	%)
Other Mexico Markets		893,500		—			195,847			—			1,089,347		0.8	%		71.8	%		70.9	%		4.01		(81.1	%)		0.0	%

Mexico Subtotal / Wtd Avg		8,356,874		—			215,528			—			8,572,402		6.2	%		39.1	%		91.6	%	$	5.02		(9.9	%)		(11.9	%)


The Americas Total / Wtd Avg		112,989,798		882,400			1,110,525			(468,515	)		114,514,208		81.9	%		63.5	%		90.4	%	$	6.13		(5.4	%)		(13.9	%)


France		4,097,774		178,326			44,778			—			4,320,878		3.1	%		41.5	%		96.7	%	$	7.85		(4.1	%)		(17.7	%)
Germany		3,208,633		—			(25,252	)		—			3,183,381		2.3	%		38.3	%		96.5	%		8.50		(6.2	%)		(10.1	%)
Benelux		3,263,379		—			(3,089	)		—			3,260,290		2.3	%		40.2	%		85.2	%		9.75		(12.7	%)		(3.0	%)
Other Europe Markets		1,065,173		—			—			—			1,065,173		0.8	%		50.4	%		100.0	%		11.00		0.3	%		n/a

Europe Subtotal / Wtd Avg		11,634,959		178,326			16,437			—			11,829,722		8.5	%		41.1	%		93.5	%	$	8.81		(7.0	%)		(8.3	%)


Tokyo		6,052,219		—			333,670			—			6,385,889		4.6	%		34.1	%		93.0	%	$	16.50		4.3	%		(10.1	%)
Osaka		2,000,037		—			—			—			2,000,037		1.4	%		20.0	%		90.8	%		13.19		4.5	%		2.8	%
Other Japan Markets		—		—			—			—			—		0.0	%		0.0	%		0.0	%		—		0.0	%		n/a

Japan Subtotal / Wtd Avg		8,052,256		—			333,670			—			8,385,926		6.0	%		30.7	%		92.5	%	$	15.68		4.3	%		(6.4	%)

China		2,496,250		—			1,067,068			—			3,563,318		2.5	%		100.0	%		84.6	%	$	4.54		(27.4	%)		14.8	%
Singapore		935,926		—			—			—			935,926		0.7	%		100.0	%		96.1	%		10.17		(3.4	%)		10.9	%
Other Asia Markets		593,898		—			—			—			593,898		0.4	%		100.0	%		91.7	%		7.31		(12.4	%)		(20.8	%)

Asia Total / Wtd Avg		12,078,330		—			1,400,738			—			13,479,068		9.6	%		56.9	%		91.2	%	$	12.17		(12.3	%)		(2.6	%)


Owned and Managed Total / Wtd Avg⁽²⁾		136,703,087		1,060,726			2,527,700			(468,515	)		139,822,998		100.0	%		61.0	%		90.7	%	$	6.94		(4.6	%)		(11.8	%)


Other Real Estate Investments⁽³⁾		7,495,959		—			—			—			7,495,959					51.8	%		87.2	%		5.63

Total Operating Portfolio		144,199,046		1,060,726			2,527,700			(468,515	)		147,318,957					60.5	%		90.5	%	$	6.88


Development
Construction-in-Progress		3,154,245		920,482	⁽⁴⁾		(1,067,058	)⁽⁵⁾		(1,404,045	)⁽⁶⁾		1,603,624					52.7	%
Pre-Stabilized Developments⁽²⁾		8,323,513		1,404,045	⁽⁴⁾		(1,464,131	)⁽⁵⁾		(6,615	)⁽⁶⁾		8,256,812					97.2	%

Development Portfolio Subtotal		11,477,758		2,324,527			(2,531,189	)		(1,410,660	)		9,860,436					90.0	%

Value-added acquisitions⁽²⁾		467,345		751,185			—			—			1,218,530					95.8	%

Total Global Portfolio		156,144,149		4,136,438			(3,489	)		(1,879,175	)		158,397,923					62.6	%


(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 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 as well as the location of AMB’s global headquarters.

(4)		For construction-in-progress, represents square footage of development starts. For pre-stabilized developments, represents new projects available.

(5)		For construction-in-progress, represents square footage of completed development projects placed in operations. For pre-stabilized developments, represents projects placed in operations.

(6)		For construction-in-progress, represents square footage of completed development projects placed in pre-stabilized developments or disposed. For pre-stabilized developments, represents projects disposed.


		Capital Deployment Overview (dollars in millions)		2010 Third Quarter Earnings Conference Call

Development Portfolio by Region as of September 30, 2010⁽¹⁾
(Estimated Total Investment⁽²⁾)

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

Property Acquisitions by Region for the Quarter Ended September 30, 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.


		Property Acquisitions⁽¹⁾ (dollars in thousands)		2010 Third Quarter Earnings Conference Call


	For the Quarter Ended September 30, 2010								For the Nine Months Ended September 30, 2010
			Acquisition			% of Total					Acquisition			% of Total
	Square Feet		Cost⁽²⁾			Acquisition Cost			Square Feet		Cost⁽²⁾			Acquisition Cost


The Americas
United States		1,633,585	$	98,333			88.7	%		2,788,862	$	157,223			79.0	%
Other Americas				—			0.0	%		—		—			0.0	%

The Americas Total		1,633,585	$	98,333			88.7	%		2,788,862	$	157,223			79.0	%

Europe
France		178,272	$	12,525			11.3	%		178,272	$	12,525			6.3	%
Germany		—		—			0.0	%		—		—			0.0	%
Benelux		—		—			0.0	%		—		—			0.0	%
Other Europe		—		—			0.0	%		140,264		29,388			14.8	%

Europe Total		178,272	$	12,525			11.3	%		318,536	$	41,913			21.0	%

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		1,811,857	$	110,858			100.0	%		3,107,398	$	199,136			100.0	%


AMB’s Weighted Average Ownership Percentage				46.0	%							42.8	%
Weighted Average Stabilized Cash Cap Rate⁽³⁾				6.6	%							7.2	%

			Acquisition			% of Total					Acquisition			% of Total
	Square Feet		Cost⁽²⁾			Acquisition Cost			Square Feet		Cost⁽²⁾			Acquisition Cost


By Entity
AMB Property Corporation		676,010	$	23,548			21.2	%		1,143,355	$	36,886			18.5	%
AMB-SGP Mexico		—		—			0.0	%		—		—			0.0	%
AMB Japan Fund I		—		—			0.0	%		—		—			0.0	%
AMB Europe Fund I		178,272		12,525			11.3	%		318,536		41,913			21.0	%
AMB U.S. Logistics Fund		957,575		74,785			67.5	%		1,645,507		120,337			60.5	%

Total Acquisitions		1,811,857	$	110,858			100.0	%		3,107,398	$	199,136			100.0	%


(1)		Owned and managed portfolio and value-added acquisitions.

(2)		Includes estimated total acquisition capital expenditures of approximately $6.4 million and $6.9 million for the three and nine months ended September 30, 2010, respectively.

(3)		Weighted average stabilized cap rate is defined as weighted average stabilized cash cap rate excluding the impact of straight line rents and amortization of lease intangibles. See reporting definitions and supplemental financial measures disclosures.


		Contributions and Dispositions⁽¹⁾ (dollars in thousands)		2010 Third Quarter Earnings Conference Call


	For the Quarter Ended September 30, 2010						For the Nine Months Ended September 30, 2010
	Operating Property			Development Property			Operating Property			Development Property⁽²⁾


AMB’s Ownership Contributed and Disposed		100.0	%		50.0	%		100.0	%		81.0	%
Contribution Value and Disposition Price	$	34,891		$	4,505		$	44,909		$	52,363
Weighted Average Stabilized Cap Rate⁽³⁾⁽⁴⁾		7.7	%		N/A			7.1	%		7.3	%
Development Margin, before real estate impairment losses⁽⁴⁾		N/A			3.8	%		N/A			(9.0	%)
Development Margin, net of real estate impairment losses⁽⁴⁾		N/A			4.6	%		N/A			7.5	%

Square Footage or Acreage Contributed or Sold


	For the Quarter Ended September 30, 2010						For the Nine Months Ended September 30, 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		468,515		6,615		—		602,175		337,862		—
Other Americas		—		—		—		—		—		—

The Americas Total		468,515		6,615		—		602,175		337,862		—

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

Europe Total		—		—		5		—		179,693		5

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

Asia Total		—		—		—		—		—		—


Total		468,515		6,615		5		602,175		517,555		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.


		Development Starts and Completions⁽¹⁾ (dollars in thousands)		2010 Third Quarter Earnings Conference Call


	Development Starts⁽²⁾																Development Completions⁽²⁾
	For the Quarter Ended September 30, 2010								For the Nine Months Ended September 30, 2010								For the Quarter Ended September 30, 2010								For the Nine Months Ended September 30, 2010
			Estimated			% of Total					Estimated			% of Total
	Estimated		Total			Estimated			Estimated		Total			Estimated					Total			% of Total					Total			% of Total
	Square Feet		Investment⁽²⁾			Investment⁽²⁾			Square Feet		Investment⁽²⁾			Investment⁽²⁾			Square Feet		Investment⁽³⁾			Investment⁽²⁾			Square Feet		Investment⁽³⁾			Investment⁽²⁾


The Americas
United States		—	$	—			0.0	%		—	$	—			0.0	%		—	$	—			0.0	%		389,767	$	36,009			9.6	%
Other Americas		639,264		56,522			80.8	%		639,264		56,522			80.8	%		450,445		40,076			24.2	%		607,202		47,854			12.8	%

The Americas Total		639,264	$	56,522			80.8	%		639,264	$	56,522			80.8	%		450,445	$	40,076			24.2	%		996,969	$	83,863			22.4	%

Europe
France		—	$	—			0.0	%		—	$	—			0.0	%		—	$	—			0.0	%		692,754	$	56,767			15.2	%
Germany		—		—			0.0	%		—		—			0.0	%		427,832		47,744			28.9	%		427,832		47,744			12.8	%
Benelux		—		—			0.0	%		—		—			0.0	%		—		—			0.0	%		448,123		53,772			14.4	%
Other Europe		—		—			0.0	%		—		—			0.0	%		—		—			0.0	%		—		—			0.0	%

Europe Total		—	$	—			0.0	%		—	$	—			0.0	%		427,832	$	47,744			28.9	%		1,568,709	$	158,283			42.4	%

Asia
Japan		—	$	—			0.0	%		—	$	—			0.0	%		—	$	—			0.0	%		420,847	$	54,415			14.5	%
China		281,218		13,454			19.2	%		281,218		13,454			19.2	%		1,592,826		77,565			46.9	%		1,592,826		77,565			20.7	%
Other Asia		—		—			0.0	%		—		—			0.0	%		—		—			0.0	%		—		—			0.0	%

Asia Total		281,218	$	13,454			19.2	%		281,218	$	13,454			19.2	%		1,592,826	$	77,565			46.9	%		2,013,673	$	131,980			35.2	%


Total		920,482	$	69,976			100.0	%		920,482	$	69,976			100.0	%		2,471,103	$	165,385			100.0	%		4,579,351	$	374,126			100.0	%


AMB’s Weighted Average Ownership Percentage				60	%							60	%							100.0	%							94.8	%
Weighted Average Estimated Yield⁽²⁾⁽⁴⁾				12.4	%							12.4	%							6.4	%							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.


		Development Portfolio⁽¹⁾ (dollars in thousands)		2010 Third Quarter Earnings Conference Call


	2010 Expected Completions⁽²⁾					2011 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
	Square Feet		Investment⁽²⁾⁽³⁾			Square Feet		Investment⁽²⁾⁽³⁾			Square Feet		Investment⁽²⁾⁽³⁾			Square Feet		Investment⁽²⁾⁽³⁾			Square Feet		Investment⁽²⁾⁽³⁾			Investment⁽²⁾

The Americas
United States		—	$	—			557,915	$	66,209			557,915	$	66,209			1,460,679	$	167,425			2,018,594	$	233,634			22.1	%
Other Americas		—		—			639,264		56,522			639,264		56,522			1,720,167		106,709			2,359,431		163,231			15.4	%

The Americas Total		—	$	—			1,197,179	$	122,731			1,197,179	$	122,731			3,180,846	$	274,134			4,378,025	$	396,865			37.5	%

Europe
France		—	$	—			—	$	—			—	$	—			647,976	$	50,205			647,976	$	50,205			4.8	%
Germany		—		—			—		—			—		—			567,440		66,129			567,440		66,129			6.2	%
Benelux		125,227		23,434			—		—			125,227		23,434			655,366		87,631			780,593		111,065			10.5	%
Other Europe		—		—			—		—			—		—			444,043		45,612			444,043		45,612			4.3	%

Europe Total		125,227	$	23,434			—	$	—			125,227	$	23,434			2,314,825	$	249,577			2,440,052	$	273,011			25.8	%

Asia
Japan		—	$	—			—	$	—			—	$	—			2,235,373	$	354,240			2,235,373	$	354,240			33.4	%
China		—		—			281,218		13,454			281,218		13,454			525,768		21,906			806,986		35,360			3.3	%
Other Asia		—		—			—		—			—		—			—		—			—		—			0.0	%

Asia Total		—	$	—			281,218	$	13,454			281,218	$	13,454			2,761,141	$	376,146			3,042,359	$	389,600			36.7	%


Total		125,227	$	23,434			1,478,397	$	136,185			1,603,624	$	159,619			8,256,812	$	899,857			9,860,436	$	1,059,476			100.0	%


Real estate impairment losses														(624	)				(71,419	)				(72,043	)

Estimated total investment, net of real estate impairment losses													$	158,995				$	828,438				$	987,433


Number of Projects				1					5					6					29					35
AMB’s Weighted Average Ownership Percentage				50.0	%				46.5	%				47.0	%				97.3	%				89.7	%
Remainder to Invest			$	883				$	55,100				$	55,983				$	23,614				$	79,597
AMB’s Share of Remainder to Invest^(2)(4)(5)			$	441				$	29,235				$	29,676				$	23,534				$	53,210
Weighted Average Estimated Yield⁽²⁾⁽⁵⁾				6.6	%				9.2	%				8.8	%				6.4	%				6.7	%
Weighted Average Estimated Yield, net of real estate impairment losses⁽²⁾				6.8	%				9.2	%				8.9	%				6.9	%				7.2	%
Percent Pre-Leased⁽²⁾				0.0	%				36.4	%				33.6	%				56.8	%				53.1	%

(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


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

Land Inventory


	The Americas						Europe						Asia						Total
				Estimated						Estimated						Estimated						Estimated
				Build Out Potential						Build Out Potential						Build Out Potential						Build Out Potential
	Acres			(square feet)			Acres			(square feet)			Acres			(square feet)			Acres			(square feet)


Balance as of June 30, 2010		2,228			37,490,712			232			4,725,415			141			5,144,921			2,601			47,361,048
Acquisitions		107			1,744,906			—			—			—			—			107			1,744,906
Sales		—			—			(5	)		(105,411	)		—			—			(5	)		(105,411	)
Development starts		(29	)		(639,264	)		—			—			(11	)		(281,218	)		(40	)		(920,482	)
Other		—			—			—			—			—			(10,785	)		—			(10,785	)


Balance as of September 30, 2010		2,306			38,596,354			227			4,620,004			130			4,852,918			2,663	⁽³⁾		48,069,276	⁽³⁾


Investment in Land⁽⁴⁾				$	647,499					$	152,074					$	146,818					$	946,391

Cumulative real estate impairment losses																						$	(152,657	)


Investment in land, net of cumulative real estate impairment losses																						$	793,734


AMB’s share of investment in land, net of cumulative real estate impairment losses				$	386,254					$	75,889					$	144,167					$	606,310
AMB Cost per SF				$	4.25					$	13.10					$	25.50					$	5.93
AMB Cost per Floor Area Ratio SF				$	10.34					$	29.08					$	29.71					$	13.71
Weighted Average Purchase Date (in years)					4.5						2.5						4.0						4.1

Value-Added Conversion Inventory⁽¹⁾⁽⁵⁾


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


3 years or less		—		—		9		1		—		—		9			1
3+ years		7		2		213		12		—		—		220			14

Total		7		2		222		13		—		—		229	⁽⁶⁾		15

Redevelopment Inventory⁽¹⁾⁽⁵⁾


	East Region				West Region				Central Region				The Americas
	Square		Number of		Square		Number of		Square		Number of		Square			Number of
Redevelopment Time Frame	Feet		Projects		Feet		Projects		Feet		Projects		Feet			Projects


3 years or less		40,800		1		—		—		—		—		40,800			1
3+ years		—		—		998,372		3		—		—		998,372			3

Total		40,800		1		998,372		3		—		—		1,039,172	⁽⁷⁾		4

(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 2,346 acres and 42.3 million square feet, respectively.
(4)		Represents actual cost incurred to date including initial acquisition, infrastructure, and associated carry costs.
(5)		East, West and Central regions represent AMB’s geographic division of the Americas.
(6)		AMB’s share is 192 acres.
(7)		AMB’s share is 705,336 square feet.


		Private Capital Co-investment Ventures Overview (dollars in millions)		2010 Third Quarter Earnings Conference Call

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

GE Real Estate

USD

Upon project sales

Perpetual⁽²⁾

AMB Europe Fund I

June 2007

Europe

Various

EUR

3 years (next 2Q13)

Open end

AMB Mexico Fondo Logistico

July 2010

Mexico

Various

USD

At dissolution

July 2020

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.
(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.


		Joint Ventures Financial Summary (dollars in thousands)		2010 Third Quarter Earnings Conference Call


	AMB’s					Gross							AMB’s		Estimated
	Ownership		Square			Book		Property		Other			Net Equity		Investment
Unconsolidated Joint Ventures	Percentage		Feet⁽¹⁾			Value⁽²⁾		Debt		Debt			Investment⁽³⁾		Capacity


Operating Co-Investment Ventures
AMB U.S. Logistics Fund⁽⁴⁾		33%		37,627,853		$	3,398,015	$	1,615,452	$	—		$	330,353	$	150,000
AMB Europe Fund I⁽⁴⁾		31%		9,718,555			1,266,484		661,196		—			123,428		300,000
AMB Japan Fund I		20%		7,263,090			1,561,793		896,669		9,579			82,535		—
AMB-SGP Mexico		22%		6,352,092			359,813		164,640		148,438	⁽⁵⁾		17,687		—

Total Operating Co-investment Ventures		29%		60,961,590			6,586,105		3,337,957		158,017			554,003		450,000

Development Co-investment Ventures:
AMB DFS Fund I		15%		200,027			86,025		—		—			14,507		—
AMB U.S. Logistics Fund⁽⁴⁾		33%		557,915			93,798		—		—			30,623		n/a

Total Development Co-investment Ventures		24%		757,942			179,823		—		—			45,130		—

Total Unconsolidated Co-investment Ventures⁽⁶⁾		29%		61,719,532			6,765,928		3,337,957		158,017			599,133		450,000

Other Industrial Operating Joint Ventures		51%		7,419,049	⁽⁷⁾		286,078		154,515		—			52,939		n/a
Other Industrial Development Joint Ventures		50%		639,264			43,014		—		—			22,215		n/a

Total Unconsolidated Joint Ventures		30%		69,777,845		$	7,095,020	$	3,492,472	$	158,017		$	674,287	$	450,000


Consolidated Joint Ventures

Operating Co-investment Ventures
AMB-SGP		50%		8,289,140		$	478,839	$	331,595	$	—
AMB Institutional Alliance Fund II		24%		7,321,372			517,533		186,781		54,300
AMB-AMS		39%		2,170,337			160,660		76,049		—

Total Operating Co-investment Ventures		37%		17,780,849			1,157,032		594,425		54,300
Total Consolidated Co-investment Ventures		37%		17,780,849			1,157,032		594,425		54,300

Other Industrial Operating Joint Ventures		80%		2,917,634			377,320		64,259		—
Other Industrial Development Joint Ventures		50%		249,169			172,664		83,169		—

Total Consolidated Joint Ventures		48%		20,947,652		$	1,707,016	$	741,853	$	54,300


Selected Operating Results						FFO, as								FFO, as
For the Quarter Ended September 30, 2010	Cash NOI⁽⁸⁾		Net Income			adjusted⁽⁸⁾			Share of	Cash NOI⁽⁸⁾		Net Income		adjusted⁽⁸⁾

Unconsolidated Joint Ventures	$	98,752	$	1,615	⁽⁹⁾	$	42,009	⁽⁹⁾	AMB’s	$	29,510	$	3,348	$	15,936
Consolidated Joint Ventures	$	24,340	$	4,840		$	15,477		Partner’s	$	13,098	$	2,993	$	7,855

Selected Operating Results						FFO, as								FFO, as
For the Nine Months Ended September 30, 2010	Cash NOI⁽⁸⁾		Net Income			adjusted⁽⁸⁾			Share of	Cash NOI⁽⁸⁾		Net Income		adjusted⁽⁸⁾

Unconsolidated Joint Ventures	$	289,695	$	10,572	⁽⁹⁾	$	130,477	⁽⁹⁾	AMB’s	$	86,988	$	12,416	$	45,833
Consolidated Joint Ventures	$	71,758	$	11,100		$	42,761		Partner’s	$	39,125	$	5,687	$	20,797

(1)		For development properties, represents the estimated square feet upon completion for the committed phases of development projects.
(2)		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.
(3)		Through AMB Property Mexico, AMB holds an equity interest in various other non-core unconsolidated ventures for approximately $15.8 million.
(4)		The estimated investment capacity and investment capacities of AMB U.S. Logistics Fund and AMB Europe Fund I, as open-end funds, are not limited. The investment capacity represents estimated capacity based on the fund’s current cash and leverage limitations as of the most recent quarter end.
(5)		Includes $89.6 million of shareholder loans.
(6)		See reporting definitions and supplemental financial measures disclosures for unconsolidated co-investment venture operating results.
(7)		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.
(8)		See reporting definitions and supplemental financial measures disclosures.
(9)		Includes $3.9 and $11.5 million of interest expense on shareholder loans for AMB-SGP Mexico for the quarter and nine months ended September 30, 2010, respectively.


		Capitalization Summary (dollars in millions)		2010 Third Quarter Earnings Conference Call

Value

Coverage and Debt Ratios


	For the Quarter Ended			For the Nine Months Ended
	September 30, 2010			September 30, 2010
Wholly-owned fixed charge coverage⁽²⁾		2.7	x		2.6	x
Fixed charge coverage⁽²⁾		2.3	x		2.2	x
Interest coverage⁽²⁾		2.7	x		2.7	x
Dividends per share-to-FFO, as adjusted per share⁽²⁾		87.5	%		89.4	%
AMB’s share of total debt-to-total market capitalization⁽²⁾		43.3	%		43.3	%
AMB’s share of total debt-to-AMB’s share of total assets⁽²⁾		41.0	%		41.0	%

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.


		Capitalization Detail (dollars in thousands, except shares and share price)		2010 Third Quarter Earnings Conference Call


	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


2010		$	63,000		$	—		$	—		$	280		$	63,280		$	11,719		$	74,999		$	12,743		$	87,742		$	72,743
2011			69,000			249,108			—			15,487			333,595			136,940			470,535			620,338			1,090,873			567,557
2012			—			—			224,143			29,576			253,719			468,820			722,539			462,806			1,185,345			558,673
2013			293,897			—			—			22,775			316,672			103,817			420,489			812,825			1,233,314			569,765
2014			—			—			—			4,765			4,765			8,944			13,709			598,760			612,469			200,872
2015			112,491			—			—			7,685			120,176			16,943			137,119			462,829			599,948			278,613
2016			250,000			—			—			79,620			329,620			15,499			345,119			70,053			415,172			358,508
2017			300,000			—			—			65,994			365,994			490			366,484			10,528			377,012			369,668
2018			125,000			—			—			—			125,000			595			125,595			92,361			217,956			155,497
2019			250,000			—			—			—			250,000			29,229			279,229			7,223			286,452			269,241
Thereafter			119,732			—			—			—			119,732			3,095			122,827			415,692			538,519			257,233

Subtotal		$	1,583,120		$	249,108		$	224,143		$	226,182		$	2,282,553		$	796,091		$	3,078,644		$	3,566,158		$	6,644,802		$	3,658,370
Unamortized net (discounts) premiums			(11,849	)		—			—			50			(11,799	)		62			(11,737	)		(5,282	)		(17,019	)		(15,116	)

Subtotal		$	1,571,271		$	249,108		$	224,143		$	226,232		$	2,270,754		$	796,153		$	3,066,907		$	3,560,876		$	6,627,783		$	3,643,254
Joint venture partners’ share of debt⁽²⁾			—			—			—			—			—			(457,061	)		(457,061	)		(2,527,468	)		(2,984,529	)		—

AMB’s share of total debt⁽²⁾		$	1,571,271		$	249,108		$	224,143		$	226,232		$	2,270,754		$	339,092		$	2,609,846		$	1,033,408		$	3,643,254		$	3,643,254


Weighted average interest rate			5.8	%		0.9	%		3.4	%		3.0	%		4.8	%		4.9	%		4.8	%		4.6	%		4.7	%		4.8	%
Weighted average remaining maturity (years)			6.0			0.8			2.0			5.2			4.9			2.2			4.2			3.9			4.1			4.5


Market Equity
Security	Shares			Price		Value


Common Stock		168,216,188	⁽³⁾	$	26.47	$	4,452,682
LP Units		3,305,152		$	26.47		87,487

Total		171,521,340				$	4,540,169


Total options outstanding							9,317,539
Dilutive effect of stock options⁽⁴⁾							—


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⁾	43.3	%
AMB’s share of total debt plus preferred-to-AMB’s share of total market capitalization⁽²⁾⁽⁵⁾	46.1	%
AMB’s share of total debt-to-AMB’s share of total assets⁽²⁾	41.0	%
AMB’s share of total debt plus preferred-to-AMB’s share of total assets⁽²⁾	43.6	%

(1)		Represents three credit facilities with total capacity of approximately $1.7 billion. Includes $126.6 million, $68.0 million, $29.7 million and $24.8 million in Yen, Canadian dollar, Euro and Singapore dollar-based borrowings outstanding at September 30, 2010, respectively, translated to U.S. dollars using the foreign exchange rates in effect on September 30, 2010.

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

(3)		Includes 1,215,982 shares of unvested restricted stock.

(4)		Computed using the treasury stock method and an average share price of $24.73 for the quarter ended September 30, 2010. All stock options were anti-dilutive as of September 30, 2010.

(5)		Total Market Capitalization is defined as total debt plus preferred equity liquidation preferences plus market equity.


		Debt Maturities⁽¹⁾ (dollars in thousands)		2010 Third Quarter Earnings Conference Call


	After Extension Options⁽²⁾
AMB Wholly-Owned Debt	2010		2011		2012		2013
Unsecured Senior Debt	$	63,000	$	69,000	$	—	$	293,897
Credit Facilities		—		156,336		92,772		—
Other Debt		—		—		224,143		—
AMB Secured Debt		—		14,365		28,214		21,612

Subtotal		63,000		239,701		345,129		315,509

Consolidated Joint Ventures
AMB-AMS		—		—		—		39,409
AMB Institutional Alliance Fund II		1,064		—		3,888		196,828
AMB-SGP		—		41,297		290,297		—
Other Industrial Joint Ventures		—		54,807		31,432		20,729

Subtotal		1,064		96,104		325,617		256,966

Unconsolidated Joint Ventures
AMB-SGP Mexico		—		58,825		164,640		—
AMB Japan Fund I		—		226,650		197,845		481,672
AMB Europe Fund I		—		—		—		—
AMB U.S. Logistics Fund		—		162,537		76,243		283,667
Other Industrial Joint Ventures		—		31,316		—		57,677

Subtotal		—		479,328		438,728		823,016

Total Consolidated		64,064		335,805		670,746		572,475
Total Unconsolidated		—		479,328		438,728		823,016

Total	$	64,064	$	815,133	$	1,109,474	$	1,395,491


Total AMB’s Share	$	63,256	$	418,209	$	610,118	$	606,647

(1)		Excludes scheduled principal amortization of debt maturing in years subsequent to 2013 as well as debt premiums and discounts.

(2)		Subject to certain conditions.


		Supplemental Information for Net Asset Value Analysis (NAV) (dollars in thousands, except per share amounts)		2010 Third Quarter Earnings Conference Call

Income Items


				Actual
				Quarter Ended
				September 30, 2010
Real Estate:
Wholly-owned property cash NOI from continuing operations⁽¹⁾				$	77,739
AMB’s share of cash NOI from joint ventures:
Total cash NOI from joint ventures from continuing operations⁽¹⁾	$	123,623
AMB’s share of joint ventures⁽¹⁾		32.8	%

AMB’s share of cash NOI from joint ventures from continuing operations⁽¹⁾					40,577
Adjustments to AMB’s share of cash NOI:
NOI attributed to construction-in-progress	$	(154	)
NOI attributed to pre-stabilized development projects⁽¹⁾⁽²⁾		(4,465	)
NOI attributed to contributed developments		—
NOI required to stabilize properties acquired and moved to operations		891
Other adjustments to AMB’s share of cash NOI:⁽³⁾		4,801

Adjustments to AMB’s share of cash NOI⁽⁴⁾					1,073

Total AMB’s share of cash NOI from continuing operations related to operating properties⁽¹⁾⁽⁵⁾				$	119,389

AMB’s share of average occupancy⁽⁵⁾					91.3	%

Development platform:⁽⁴⁾
Development starts				$	69,976

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

Assets & Liabilities


	As of
AMB’s share of:⁽¹⁾	September 30, 2010
Development, land, value-added acquisitions and contributed assets, net of real estate impairment losses:⁽⁵⁾
Construction-in-progress (invested to date)	$	45,027
Pre-stabilized development projects (invested to date)⁽¹⁾		780,352
Value-added acquisitions⁽¹⁾		33,675
Land held for future development		606,310
Assets contributed to co-investment ventures⁽⁶⁾		—

Total development, land, value-added acquisitions and contributed assets, net of real estate impairment losses	$	1,465,364
Debt and preferred securities:⁽⁵⁾
Total debt	$	3,643,254
Preferred securities		232,500

Total debt and preferred securities	$	3,875,754
Other balance sheet items:⁽⁵⁾
Cash and cash equivalents and restricted cash	$	271,070
Accounts receivable (net) and other assets		359,580
Deferred rents receivable and deferred financing costs (net)		(104,226	)
Accounts payable and other liabilities		(394,935	)

Total other balance sheet items	$	131,489

(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 September 30, 2010.


		Reporting Definitions / Supplemental Financial Measures		2010 Third Quarter Earnings Conference Call

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, restructuring, losses on early extinguishment of debt and other non-cash charges, stock based compensation amortization, 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 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, 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 nine months ended September 30, 2010 and 2009 (dollars in thousands):


	For the Quarters Ended						For the Nine Months Ended
	September 30,						September 30,
	2010			2009			2010			2009
Net income (loss)	$	13,592		$	76,464		$	22,285		$	(17,858	)
Depreciation and amortization		50,590			45,975			145,437			124,808
Impairment charges		—			—			—			172,059
Restructuring charges		1,029			—			4,874			3,824
Loss on early extinguishment of debt		1,967			—			2,546			657
Stock-based compensation amortization and other non-cash charges		5,774			4,731			18,699			17,065
Interest expense, including amortization		32,125			27,498			97,364			88,216
Total discontinued operations, including gains, excluding development profits		(12,237	)		(11,043	)		(18,450	)		(39,155	)
Adjustment for depreciation on development profits		—			—			(1,546	)		—
Income tax expense		538			177			2,937			3,060
Capitalized interest attributable to development properties sold or contributed		566			1,226			3,548			14,085
Discontinued operations’ adjusted EBITDA		1,627			3,716			5,926			17,661
Less: Equity in earnings of unconsolidated joint ventures, net		(3,348	)		(3,257	)		(12,416	)		(7,507	)
Less: Adjusted EBITDA attributable to consolidated joint ventures		(25,227	)		(27,036	)		(74,607	)		(80,973	)
Distributions from consolidated and unconsolidated joint ventures		9,631			5,405			28,115			24,220

Wholly-owned adjusted EBITDA		76,627			123,856			224,712			320,162
Adjustments to derive adjusted EBITDA from consolidated joint ventures:
Distributions from consolidated joint ventures to AMB		(3,977	)		(4,280	)		(12,874	)		(15,844	)
Adjusted EBITDA attributable to consolidated joint ventures		25,227			27,036			74,607			80,973
Adjusted EBITDA attributable to noncontrolling interests		(13,495	)		(14,975	)		(40,514	)		(44,545	)
Adjustments to derive adjusted EBITDA from unconsolidated joint ventures:
Distributions from unconsolidated joint ventures to AMB		(5,654	)		(1,125	)		(15,241	)		(8,376	)
AMB’s share of FFO, as adjusted		15,936			11,079			45,833			35,000
AMB’s share of interest expense		13,291			9,647			39,532			29,760

AMB’s share of adjusted EBITDA	$	107,955		$	151,238		$	316,055		$	397,130

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.

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


		Reporting Definitions / Supplemental Financial Measures		2010 Third Quarter Earnings Conference Call

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 September 30, 2010, refer to the SS NOI definition. The following table reconciles AMB’ s share of cash-basis NOI from NOI for the quarter ended September 30, 2010 (dollars in thousands):


	For the Quarter Ended
	September 30, 2010
NOI	$	104,324
Straight-line rents and amortization of lease intangibles		(2,245	)
Consolidated joint venture cash NOI from continuing operations		(24,340	)

Wholly-owned property cash NOI		77,739
AMB’s share of consolidated joint venture cash NOI		11,242
AMB’s share of unconsolidated joint venture cash NOI		29,335
AMB’s share of transaction adjustments		1,073

AMB’s share of cash-basis NOI	$	119,389

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 September 30, 2010
									Income
	AMB’s					Property			(Loss) from
	Ownership					Operating			Continuing			Net
	Percentage⁽¹⁾			Revenues		Expenses			Operations			Income (Loss)			Cash NOI			FFO
Unconsolidated Co-investment Ventures
AMB U.S. Logistics Fund		33	%	$	68,867	$	(19,066	)	$	3,691		$	(1,569	)	$	47,121		$	24,479
AMB Europe Fund I		31	%		22,681		(4,307	)		735			735			18,474			7,895
AMB Japan Fund I		20	%		27,540		(6,080	)		5,096			5,096			20,620			12,215
AMB-SGP Mexico		22	%		8,090		(804	)		(3,383	) ⁽¹⁾		(3,383	) ⁽¹⁾		7,284			(311	)
AMB DFS Fund I		15	%		—		(431	)		(548	)		(518	)		(431	)		(426	)
Consolidated Co-investment Ventures
AMB-SGP		50	%		10,617		(3,410	)		(810	)		(810	)		6,963			2,612
AMB Institutional Alliance Fund II		24	%		13,025		(3,354	)		2,848			2,848			9,562			6,123
AMB-AMS		39	%		4,069		(1,094	)		638			638			3,017			1,716

(1)

Includes $3.8 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.


		Reporting Definitions / Supplemental Financial Measures		2010 Third Quarter Earnings Conference Call

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 nine months ended September 30, 2010 and 2009 (dollars in thousands):


	For the Quarters Ended						For the Nine Months Ended
	September 30,						September 30,
Fixed charge	2010			2009			2010			2009
Interest expense, including amortization — continuing operations	$	32,125		$	27,498		$	97,364		$	88,216
Amortization of financing costs and debt premiums — continuing operations		(4,461	)		(3,048	)		(10,977	)		(9,300	)
Interest expense, including amortization — discontinued operations		5			153			5			818
Amortization of financing costs and debt premiums — discontinued operations		(19	)		—			(19	)		(4	)
Capitalized interest		9,033			9,586			26,608			35,077
Preferred unit distributions		—			1,431			—			4,295
Preferred stock dividends		3,952			3,952			11,856			11,856
Less: Fixed charge attributable to consolidated joint ventures		(11,874	)		(11,243	)		(37,222	)		(39,098	)

Wholly-owned fixed charge		28,761			28,329			87,615			91,860

Adjustments to derive fixed charge from consolidated joint ventures:
Fixed charge attributable to consolidated joint ventures		11,874			11,243			37,222			39,098
Fixed charge attributable to noncontrolling interests		(6,344	)		(6,407	)		(19,984	)		(22,196	)
Adjustments to derive fixed charge from unconsolidated joint ventures:
AMB’s share of capitalized interest from unconsolidated joint ventures		344			147			937			547
AMB’s share of interest expense from unconsolidated joint ventures		13,291			9,647			39,532			29,760

Total fixed charge	$	47,926		$	42,959		$	145,322		$	139,069

Funds From Operations, as adjusted (“FFO, as adjusted”) and Funds From Operations Per Share and Unit, as adjusted (“FFOPS, as adjusted”) (together with FFO, as adjusted and 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) and FFO, as adjusted, per share and unit (or 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. This calculation also includes 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 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


	© 2010 AMB Property Corporation \| 25


		Reporting Definitions / Supplemental Financial Measures		2010 Third Quarter Earnings Conference Call

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 income available to common stockholders.

The following table reconciles projected FFO, as adjusted excluding AMB’s share of development gains (or “Core FFO, as adjusted”) from projected net income available to common stockholders for the years ended December 31, 2010 and 2011:


	2010						2011
	Low			High			Low			High
Projected net (loss) income available to common stockholders	$	(0.01	)	$	0.05		$	(0.03	)	$	0.07
AMB’s share of projected depreciation and amortization		1.33			1.33			1.36			1.36
AMB’s share of depreciation on development profits recognized to date		(0.01	)		(0.01	)		—			—
AMB’s share of gains on dispositions of operating properties recognized to date		(0.10	)		(0.10	)		—			—
Loss on early extinguishment of debt		0.02			0.02			—			—
Restructuring charges		0.03			0.03			—			—
Impact of additional dilutive securities, other, rounding		(0.03	)		(0.03	)		(0.03	)		(0.03	)

Projected Funds From Operations, as adjusted (FFO, as adjusted)	$	1.23		$	1.29		$	1.30		$	1.40


AMB’s share of development gains recognized to date		(0.03	)		(0.03	)		—			—

Projected FFO, as adjusted excluding AMB’s share of development gains (or “Core FFO, as adjusted”)⁽¹⁾	$	1.20		$	1.26		$	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 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 nine months ended September 30, 2010 and 2009 (dollars in thousands):


	For the Quarters Ended						For the Nine Months Ended
	September 30,						September 30,
Interest	2010			2009			2010			2009
Interest expense, including amortization — continuing operations	$	32,125		$	27,498		$	97,364		$	88,216
Interest expense, including amortization — discontinued operations		5			153			5			818
Joint venture partners’ share of interest expense		(5,739	)		(5,633	)		(18,657	)		(19,870	)
AMB’s share of interest expense from unconsolidated joint ventures		13,291			9,647			39,532			29,760

Total interest	$	39,682		$	31,665		$	118,244		$	98,924

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 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


	© 2010 AMB Property Corporation \| 26


		Reporting Definitions / Supplemental Financial Measures		2010 Third Quarter Earnings Conference Call

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 nine months ended September 30, 2010 and 2009 (dollars in thousands):


	For the Quarters Ended						For the Nine Months Ended
	September 30,						September 30,
	2010			2009			2010			2009
Net income (loss)	$	13,592		$	76,464		$	22,285		$	(17,858	)
Private capital income		(7,569	)		(7,886	)		(21,859	)		(27,376	)
Depreciation and amortization		50,590			45,975			145,437			124,808
Real estate impairment losses		—			—			—			172,059
General and administrative and fund costs		28,861			27,409			91,371			84,947
Restructuring charges		1,029			—			4,874			3,824
Total other income and expenses		30,058			22,618			80,991			49,542
Total discontinued operations		(12,237	)		(64,045	)		(18,450	)		(92,157	)

NOI		104,324			100,535			304,649			297,789
Less non same-store NOI		(19,450	)		(12,719	)		(50,770	)		(32,506	)
Less non cash adjustments⁽¹⁾		(1,652	)		(835	)		(6,895	)		(1,179	)

Cash-basis same-store NOI	$	83,222		$	86,981		$	246,984		$	264,104

Less lease termination fees	$	(1,649	)	$	(1,297	)	$	(2,882	)	$	(2,446	)

Cash-basis same-store NOI, excluding lease termination fees	$	81,573		$	85,684		$	244,102		$	261,658

(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, buyer’s due diligence, 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.

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).


		Reporting Definitions / Supplemental Financial Measures		2010 Third Quarter Earnings Conference Call

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.


		Contacts		2010 Third Quarter Earnings Conference Call


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


		Forward-Looking Statements		2010 Third Quarter Earnings Conference Call

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, 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, development portfolio lease-up, revenue, G&A, overhead expenses, deployed equity, occupancy 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.

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