Summary
AMB Property Corporation (AMB) reported its third-quarter results for 2009, facing continued challenges in the economic environment. While total revenues remained relatively flat year-over-year for the quarter, the nine-month period saw a decline, primarily driven by a significant decrease in private capital revenues. The company incurred substantial real estate impairment losses totaling $181.9 million during the first nine months of 2009, reflecting the impact of deteriorating market conditions on asset valuations. Despite these challenges, the company has focused on strengthening its balance sheet and liquidity, reducing debt and increasing available credit. Management is also implementing cost-reduction measures, including a reduction in global headcount, to navigate the current economic climate and position the company for future opportunities.
Key Highlights
- 1Total revenues for the nine months ended September 30, 2009, decreased by 12.0% to $471.2 million, largely due to a 54.9% drop in private capital revenues.
- 2The company recognized significant real estate impairment losses of $181.9 million during the first nine months of 2009, reflecting adverse market conditions.
- 3Total costs and expenses increased by 48.1% for the nine-month period, primarily driven by the recognition of real estate impairment losses and restructuring charges.
- 4Net income available to common stockholders was a loss of $42.5 million for the nine months ended September 30, 2009, a significant decrease from a net income of $134.8 million in the prior year period.
- 5The company reduced its total debt by approximately $750 million during the first nine months of 2009 and had $1.1 billion available under its credit facilities as of September 30, 2009.
- 6Same-store rental revenues decreased by 10.9% for the first nine months of 2009, reflecting lower occupancy and rent changes on renewals and rollovers.