- Earnings per share (EPS) for the first quarter was $0.33, reflecting a
34.0% decrease from the first quarter 2001 EPS of $0.50, which had
included gains on property dispositions and contributions of $0.20 per
share
- Operating earnings per share (Operating EPS), which excludes
extraordinary items and gains and losses on property dispositions and
contributions, for the first quarter was $0.34, a 13.3% increase over
the first quarter 2001 Operating EPS of $0.30, which had included
impairment charges of $0.05 per share
- Same store net operating income increased 2.0%; industrial occupancy
declined slightly from 94.5% at December 31, 2001 to 94.4% at
March 31, 2002
SAN FRANCISCO, April 8 /PRNewswire-FirstCall/ -- AMB Property Corporation
Commenting on the company's first quarter performance and outlook, chairman and CEO Hamid R. Moghadam noted, "Our continued strong performance in a difficult operating environment reflects the high quality of our real estate portfolio, robust demand in the infill markets where we have strategically chosen to invest and effective management of our operations. Based on this strong foundation, we anticipate increased leasing activity from our customers, leading to improved occupancy in the second half of this year, with growth in rents to follow."
Investment Activity
During the first quarter, AMB acquired 8 industrial buildings for a total investment of $35.0 million and disposed of 2 properties for a cumulative price of $38.5 million, including $36.0 million for one of the Company's few remaining retail centers. AMB President W. Blake Baird stated, "Since early 1999, AMB has disposed of 34 retail assets for $907 million and is redeploying that capital into industrial assets in supply-constrained markets, creating a more focused operating portfolio. The transaction environment has begun to improve and we have significant capital capacity to further take advantage of anticipated market opportunities."
AMB formed a strategic alliance with G. Accion, Mexico's leading publicly held real estate company, to develop, acquire and operate industrial properties in Mexico. AMB and G. Accion will initially target the Mexico City, Guadalajara and Monterrey markets, which are growing areas where customers have the greatest need for industrial facilities.
"As in the U.S., our international customer-driven expansion is based on partnering with the best local entrepreneurial operators. Together with G. Accion we can give our existing and targeted customers the ability to launch or expand their operations in Mexico," said Baird. "We expect to begin investing capital with G. Accion in Mexico later this year," he added.
Corporate Governance Recognition
In March 2002, AMB was awarded an honorable mention for best corporate governance at the seventh annual Investor Relations Magazine US Awards; the company was the first REIT to be nominated in the history of IR Magazine's awards. Moghadam commented, "Since its inception, AMB has adhered to a policy which elects directors annually and uses equity as the primary compensation for Board members. Our industry leading corporate governance prohibits the repricing of stock options and does not employ any 'poison pill' protections. We take our commitment to stockholder value seriously and are honored to be recognized for it." An independent research firm, Erdos & Morgan, polled more than 1,800 US Portfolio managers, security analysts and retail investors to determine the nominees and winners.
Supplemental Reporting Measure
AMB reports Funds from Operations per fully diluted share and unit (FFOPS) in accordance with the standards established by NAREIT, the real estate investment trust industry group, as a supplemental earnings measure. AMB reported first quarter 2002 FFOPS of $0.62, representing an 8.8% increase over first quarter 2001 FFO of $0.57. First quarter 2001 FFOPS included a $4.7 million write-down, or $0.05 per share.
Conference Call Information
AMB will host its first quarter 2002 conference call tomorrow, April 9, 2002 at 11:00 AM PDT/ 2:00 PM EDT. Stockholders and interested parties may listen to a live broadcast of the call by dialing 719-457-2626 and using reservation code 691458. The conference call can also be accessed through the Internet on AMB's website at http://www.amb.com/. Internet users are encouraged to visit the website at least fifteen minutes early to register, download and install any necessary audio software. For those who are not able to listen to the live broadcast, replays will be available until April 30, 2002 on the company's website shortly after the call and via telephone by dialing 719-457-0820 with reservation code 691458.
AMB Property Corporation is a leading owner and operator of industrial real estate nationwide. As of March 31, 2002 AMB owned, managed and had renovation and development projects totaling 94.6 million square feet and 1,023 buildings in 26 metropolitan markets. AMB targets industrial properties located near airports, seaports and ground transportation systems. The company's portfolio is comprised of High Throughput Distribution(R) facilities -- industrial properties built for speed and benefiting from barriers to entry due to their infill locations and proximity to large customer bases.
AMB's press releases are available on the company website at http://www.amb.com/ or by contacting the Investor Relations department toll-free at 877-285-3111.
This press release contains forward-looking statements about business strategy, future leasing activities, acquisition opportunities and future plans, which are made pursuant to the safe-harbor provisions of Section 21E of the Securities Exchange Act of 1934. Forward-looking statements involve numerous risks and uncertainties and should not be relied upon as predictions of future events. The events or circumstances reflected in our forward-looking statements might not occur. In particular, a number of factors could cause AMB's actual results to differ materially from those anticipated, including, among other things, defaults on or non-renewal of leases by tenants, increased interest rates and operating costs, AMB's failure to obtain necessary outside financing, difficulties in identifying properties to acquire and in effecting acquisitions, AMB's failure to successfully integrate acquired properties and operations, AMB's failure to timely reinvest proceeds from any such dispositions, risks and uncertainties affecting property development and construction (including construction delays, cost overruns, AMB's inability to obtain necessary permits and public opposition to these activities), AMB's failure to qualify and maintain its status as a real estate investment trust under the Internal Revenue Code, environmental uncertainties, risks related to natural disasters, financial market fluctuations, changes in real estate and zoning laws, risks of doing business internationally and increases in real property tax rates. AMB's success also depends upon economic trends generally, including interest rates, income tax laws, governmental regulation, legislation and population changes. For further information on these and other factors that could impact AMB and the statements contained herein, reference should be made to AMB's filings with the Securities and Exchange Commission, including AMB's quarterly report on Form 10-K for the year ended December 31, 2001.
Consolidated Balance Sheets
(dollars in thousands)
As of
March 31, 2002 December 31, 2001
Assets
Investments in real estate:
Total investments in properties $4,566,951 $4,530,711
Accumulated depreciation (289,701) (265,653)
Net investments in properties 4,277,250 4,265,058
Investment in unconsolidated
joint ventures 71,137 71,097
Properties held for divestiture, net 139,370 157,174
Net investments in real estate 4,487,757 4,493,329
Cash and cash equivalents 99,492 81,732
Mortgage receivables 87,214 87,214
Accounts receivable, net 75,399 70,794
Other assets 31,261 27,824
Total assets $4,781,123 $4,760,893
Liabilities and Stockholders' Equity
Secured debt $1,229,433 $1,220,164
Unsecured senior debt securities 800,000 780,000
Unsecured credit facility -- 12,000
Alliance Fund II credit facility 116,000 123,500
Other liabilities 155,568 138,601
Total liabilities 2,301,001 2,274,265
Minority interests:
Preferred units 275,987 275,987
Minority interests 455,428 458,299
Total minority interests 731,415 734,286
Stockholders' equity:
Common stock 1,652,607 1,656,242
Preferred stock 96,100 96,100
Total stockholders' equity 1,748,707 1,752,342
Total liabilities and
stockholders' equity $4,781,123 $4,760,893
Consolidated Statements of Operations
(dollars in thousands, except share data)
For the Quarters Ended
March 31,
2002 2001
Revenues
Rental revenues(A) $152,241 $135,801
Equity in earnings of unconsolidated
joint ventures 1,483 1,474
Investment management income 2,588 2,420
Interest and other income 2,850 5,139
Total revenues 159,162 144,834
Expenses
Property operating 37,069 32,920
Interest, including amortization(B) 35,851 31,552
Depreciation and amortization 29,675 26,854
General, administrative, and other 9,945 8,183
Loss on investments in other companies -- 4,655
Total expenses 112,540 104,164
Income before minority interests
and gains (losses) 46,622 40,670
Minority interests' share of income:
Preferred units (5,857) (6,858)
Minority interests (9,766) (6,139)
Total minority interests (15,623) (12,997)
Gains (losses) from disposition of
real estate, net of minority interests (288) 16,767
Net income before extraordinary items 30,711 44,440
Extraordinary items (early debt extinguishments) (216) --
Net income 30,495 44,440
Preferred stock dividends (2,125) (2,125)
Net income available to common stockholders $28,370 $42,315
Net income per common share:
Basic $0.34 $0.50
Diluted $0.33 $0.50
Weighted average common shares:
Basic 83,319,047 83,895,993
Diluted 84,781,872 84,720,917
(A) Includes straight-line rents of $3,961 and $1,325 for the quarters
ended March 31, 2002 and 2001, respectively.
(B) Net of capitalized interest of $1,791 and $3,782 for the quarters
ended March 31, 2002 and 2001, respectively.
Consolidated Statements of Funds from Operations
(dollars in thousands, except share data)
For the Quarters Ended
March 31,
2002 2001
Income before minority interests
and gains (losses) $46,622 $40,670
Real estate related depreciation and
amortization:
Total depreciation and amortization 29,675 26,854
FF& E depreciation and ground lease
amortization(A) (674) (481)
FFO attributable to minority interests(B) (12,844) (7,187)
Adjustments to derive FFO from
unconsolidated JV's:(C)
Company's share of net income (1,483) (1,474)
Company's share of FFO 2,129 2,120
Preferred stock dividends (2,125) (2,125)
Preferred units distributions (5,857) (6,858)
Funds from operations $55,443 $51,519
FFO per common share and unit:
Basic $0.63 $0.57
Diluted $0.62 $0.57
Weighted average common shares and units:
Basic 88,262,128 89,669,950
Diluted 89,724,953 90,494,874
(A) Ground lease amortization represents the amortization of the
Company's investments in ground leased properties, for which the
Company does not have a purchase option.
(B) Represents FFO attributable to minority interests in consolidated
joint ventures whose interests are not exchangeable into common
stock. The minority interest's share of cash basis NOI for the
quarters ended March 31, 2002 and 2001, was $19,375 and $9,946,
respectively.
(C) AMB's share of NOI for the quarters ended March 31, 2002 and 2001,
was $2,644 and $2,818, respectively.
SOURCE: AMB Property Corporation
Contact: investors/analysts, Michael A. Coke, or Michelle C. Wells,
toll-free, 1-877-285-3111, or fax, +1-415-394-9001, or
Sara J. Butz, Marketing & Corporate Communications, direct, +1-415-733-9478,
or fax, +1-415-394-9001, or
Website: http://www.amb.com/
