AMB Property Lost $122 Million in First Quarter

Impairment charges for falling market value of its holdings led to a loss of $122.4 million in the first quarter for owner, operator and developer of industrial real estate, AMB Property Corporation.

The company recognized non-cash impairment charges, related to valuation of its development and operating assets and land holdings, totaling approximately $182 million.

Profit last year in the first quarter was $39 million.

Rental revenue in the quarter fell 5 percent to $153.8 million. With the infusion of some private capital revenue, total revenue for the quarter was down just 4 percent to $165.5 million.

AMB completed the issuance and sale of 47.4 million shares of its common stock in a public offering at a price of $12.15 per share, generating $553 million in net proceeds to further strengthen the company's balance sheet. The proceeds from the offering were used to reduce borrowings under the company's unsecured credit facilities.

During the first quarter, the company completed contributions and sales in Japan and the United States totaling approximately $304 million, with gains of approximately $52 million.

The company commenced two previously committed build-to-suit developments in Paris, France and Monterrey, Mexico, totaling 464,000 square feet (43,100 square meters) during the quarter, with a total estimated investment of $29 million.

AMB leased more than 1 million square feet (94,500 square meters) of its development pipeline. In its global operating portfolio, AMB leased approximately 5.6 million square feet (519,000 square meters) in the first quarter.

"Leasing activity has held up well, particularly in light of current economic conditions. First quarter leasing activity in our development pipeline surpasses the development leasing results achieved in the first quarters of 2007 and 2008. While we're pleased with our level of development leasing in the quarter, we do not expect to sustain our normal run rate for the next couple of quarters due to slow demand for new space. Leasing in our operating portfolio is in-line with our forecast," said Tom Olinger, AMB's chief financial officer.

Contact Thomas L. Gallagher at tgallagher@joc.com .