SAN FRANCISCO, Jan. 5 /PRNewswire-FirstCall/ -- AMB Property Corporation® (NYSE: AMB), a leading global owner, operator and developer of industrial real estate, today provided an update on leasing and disposition activity in its development portfolio.
"We are very pleased with the progress made during the quarter in our development portfolio. In addition to our disposition activity, leasing velocity itself was ahead of pace of the last three quarters and exceeded our internal forecast," said Hamid Moghadam, AMB's chairman & CEO. "Leasing our development space has been a top priority and we are well on our way to stabilizing the current development portfolio by year-end 2010."
During the fourth quarter, the company reduced vacancy in its development portfolio by approximately 2.5 million square feet (229,500 square meters) which included the lease up of approximately 1.5 million square feet (136,500 square meters) and the sale of a vacant 1.0 million square foot (93,000 square meters) development project.
Leasing and disposition activity within AMB's development portfolio included:
- 1.9 million square feet (175,500 square meters) in the Americas. This comprises 14 leases totaling approximately 888,800 square feet (82,600 square meters) in Mexico and the East Region and the sale of a vacant 1.0 million square foot (93,000 square meters) development project in the Central Region;
- 245,400 square feet (22,800 square meters) in Asia with 8 leases in China, Japan and South Korea; and
- 335,000 square feet (31,100 square meters) in Europe with 5 leases in Milan, Hamburg, Madrid and Paris.
As of December 31, 2009, the company had approximately 6.9 million square feet (641,000 square meters) of vacancy remaining in order to fully stabilize its development portfolio.
AMB Property Corporation.® Local partner to global trade.(TM)
AMB Property Corporation® is a leading owner, operator and developer of global industrial real estate, focused on major hub and gateway distribution markets in the Americas, Europe and Asia. As of September 30, 2009, AMB owned, or had investments in, on a consolidated basis or through unconsolidated joint ventures, properties and development projects expected to total approximately 156.1 million square feet (14.5 million square meters) in 47 markets within 14 countries. AMB invests in properties located predominantly in the infill submarkets of its targeted markets. The company's portfolio comprises High Throughput Distribution® facilities--industrial properties built for speed and located near airports, seaports and ground transportation systems.
AMB's press releases are available on the company website at www.amb.com or by contacting the Investor Relations department at +1 415 394 9000.
Some of the information included in this press release contains forward-looking statements, such as those related to the stabilization of the company's development portfolio, leasing velocity and the company's internal forecasts, which are made pursuant to the safe-harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results to differ materially from those in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future events. The events or circumstances reflected in forward-looking statements might not occur. You can identify forward-looking statements by the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," "seeks," "approximately," "intends," "plans," "pro forma," "estimates" or "anticipates" or the negative of these words and phrases or similar words or phrases. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements are necessarily dependent on assumptions, data or methods that may be incorrect or imprecise and we may not be able to realize them. We caution you not to place undue reliance on forward-looking statements, which reflect our analysis only and speak only as of the date of this press release or the dates indicated in the statements. We assume no obligation to update or supplement forward-looking statements. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: defaults on or non-renewal of leases by tenants or renewal at lower than expected rent or failure to lease at all or on expected terms, decreases in real estate values and impairment losses, our failure to obtain, renew or extend financing or re-financing, risks related to debt and equity security financings (including dilution risk), our failure to divest properties we have contracted to sell or to timely reinvest proceeds from any divestitures, failure to maintain our current credit agency ratings or comply with our debt covenants, international currency and hedging risks, financial market fluctuations, changes in general economic conditions, global trade or in the real estate sector, inflation risks, a downturn in the U.S., California or global economy, increased interest rates and operating costs or greater than expected capital expenditures, risks related to suspending, reducing or changing our dividends, our failure to contribute properties to our co-investment ventures, risks related to our obligations in the event of certain defaults under co-investment ventures and other debt, difficulties in identifying properties to acquire and in effecting acquisitions, our failure to successfully integrate acquired properties and operations, risks and uncertainties affecting property development, value-added conversions, redevelopment and construction (including construction delays, cost overruns, our inability to obtain necessary permits and public opposition to these activities), our failure to qualify and maintain our status as a real estate investment trust, risks related to our tax structuring, environmental uncertainties, risks related to natural disasters, changes in real estate and zoning laws, risks related to doing business internationally and global expansion, risks of opening offices globally, risks of changing personnel and roles, losses in excess of our insurance coverage, unknown liabilities acquired in connection with acquired properties or otherwise and increases in real property tax rates. Our success also depends upon economic trends generally, including interest rates, income tax laws, governmental regulation, legislation, population changes and certain other matters discussed under the heading "Risk Factors" and elsewhere in our annual report on Form 10-K for the year ended December 31, 2008 and our quarterly reports on Form 10-Q for the quarters ended March 31, 2009, June 30, 2009 and September 30, 2009.
SOURCE AMB Property Corporation