What were the key drivers behind the year-over-year change in Funds From Operations (FFO) for 2010?

The primary driver for the decrease in Full Year 2010 FFO, as adjusted, per share ($1.22 vs. $1.46 in 2009) was the recognition of higher development gains in 2009, which were not replicated to the same extent in 2010. Core FFO, as adjusted, which excludes development gains, showed more stability, remaining at $1.22 in 2010 compared to $1.46 in 2009.

What is the current status of AMB Property Corporation's occupancy and rental rates?

Occupancy in the operating portfolio improved to 93.7% at the end of 2010, up from the previous quarter. This led to the first positive year-over-year same-store net operating income (SS NOI) growth in two years during the fourth quarter. However, average rents on renewals and rollovers decreased by 11.9% over the trailing four quarters, indicating ongoing pressure on rental rates.

How did AMB Property Corporation deploy capital in 2010, and what was its success in raising third-party capital?

In 2010, AMB deployed $832.2 million in capital, including $343.3 million in property acquisitions, $300 million into its open-end funds, and $102.9 million in new development starts. The company was also successful in attracting private capital, raising approximately $1.4 billion in new third-party capital commitments for its co-investment vehicles during the year.

What is the company's liquidity position as of the end of 2010?

As of December 31, 2010, AMB Property Corporation had approximately $1.6 billion in liquidity. This comprised about $1.4 billion in availability under its lines of credit and over $260 million in unrestricted cash and cash equivalents.

PLD/PLDGP 8-K: Earnings & Results

Summary

AMB Property Corporation reported its fourth quarter and full-year 2010 results, showing a stabilization and slight improvement in operational metrics compared to the previous year. While core Funds From Operations (FFO) per share remained flat year-over-year for Q4 at $0.32, the full year saw a decrease to $1.22 from $1.46 in 2009, primarily due to lower development gains recognized in the current year. Net income per share turned positive for both the quarter ($0.03 vs. $(0.05)) and the full year ($0.06 vs. $(0.37)), indicating a recovery from prior year losses. The company highlighted a 110 basis point increase in its operating portfolio occupancy to 93.7% by year-end 2010, leading to the first positive year-over-year same-store net operating income (SS NOI) growth (0.9%) since Q4 2008. Despite this positive trend, average rents on renewals and rollovers continued to decline, down 11.9% for the trailing four quarters. AMB also demonstrated active capital deployment, investing $832.2 million in acquisitions, fund investments, and new development starts, while raising $1.4 billion in new third-party capital commitments across its co-investment vehicles.

Key Highlights

1Fourth quarter 2010 net income per share was $0.03, a significant improvement from a loss of $(0.05) in the same quarter of 2009.
2Full-year 2010 net income per share was $0.06, compared to a loss of $(0.37) in 2009.
3Operating portfolio occupancy increased to 93.7% as of December 31, 2010, up 110 basis points from the previous quarter.
4Same-store net operating income (SS NOI), on a cash basis, turned positive year-over-year for the fourth quarter (0.9%), marking the first such increase since Q4 2008.
5The company leased a record 32.0 million square feet in its operating portfolio for the full year 2010.
6Total capital deployment in 2010 was $832.2 million, including acquisitions and investments in open-end funds.
7AMB raised approximately $1.4 billion in new third-party capital commitments for its co-investment vehicles in 2010.

Prologis, Inc. 8-K Report, Financial Results (Feb 3, 2011)

Summary

Key Highlights

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