DEFA14A: Additional definitive proxy soliciting materials and Rule 14(a)(12) material
Published on May 1, 2007
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE
14A
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )
Exchange Act of 1934 (Amendment No. )
FILED BY
THE REGISTRANT x
FILED BY A
PARTY OTHER THAN THE REGISTRANT
o
Check the appropriate box:
| o | Preliminary Proxy Statement | |
| o | Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) | |
| o | Definitive Proxy Statement | |
| x | Definitive Additional Materials | |
| o | Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12 |
AMB PROPERTY CORPORATION
Payment of Filing Fee (Check the appropriate box):
| x | No fee required | |
| o | Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. | |
| (1) | TITLE OF EACH CLASS OF SECURITIES TO WHICH TRANSACTION APPLIES: | |
| (2) | AGGREGATE NUMBER OF SECURITIES TO WHICH TRANSACTION APPLIES: | |
| (3) | PER UNIT PRICE OR OTHER UNDERLYING VALUE OF TRANSACTION COMPUTED PURSUANT TO EXCHANGE ACT RULE 0-11 (SET FORTH THE AMOUNT ON WHICH THE FILING FEE IS CALCULATED AND STATE HOW IT WAS DETERMINED): | |
| (4) | PROPOSED MAXIMUM AGGREGATE VALUE OF TRANSACTION: | |
| (5) | TOTAL FEE PAID: | |
| o | Fee previously paid with preliminary materials. | |
| o | Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the form or schedule and the date of its filing. | |
| (1) | AMOUNT PREVIOUSLY PAID: | |
| (2) | FORM, SCHEDULE OR REGISTRATION STATEMENT NO.: | |
| (3) | FILING PARTY: | |
| (4) | DATE FILED: | |
Dear Stockholders:
The 2007 proxy statement, which was mailed to stockholders on or about March 26, 2007, includes a
proposal (Proposal 3) to amend our 2002 Stock Option and Incentive Plan (Proposed 2002 Plan) with
an increase to the total number of shares reserved for issuance by 7.5 million. As a supplement to
information provided in the proxy, we have received requests to provide an historical review of
AMBs annual option and restricted stock grants from 2002 through 2006, and an estimated fair value
of the awards as a percentage of our total market capitalization at the end of each year. This
letter includes a spreadsheet that provides the requested information. Should you have questions
about this information or that provided in the proxy, please contact me at 415-733-9477, or at
mmitchell@amb.com. We appreciate your support and vote of For Approval on this proposal.
Sincerely,
/s/ Margan Mitchell
Margan Mitchell
Vice President, Corporate Communications
AMB Property Corporation
Vice President, Corporate Communications
AMB Property Corporation
AMB Property Corporation
Annual Stock Option and Restricted Stock Grant Burn Rate Analysis
Annual Stock Option and Restricted Stock Grant Burn Rate Analysis
| 2002 | 2003 | 2004 | 2005 | 2006 | YTD 3/31/2007 (6) | ||||||||||||||||||||
Total Annual Awards Granted(1)(2)
|
2,193,485 | 2,126,224 | 1,480,452 | 1,348,707 | 1,324,443 | 755,729 | |||||||||||||||||||
Common Stock & Units Outstanding |
|||||||||||||||||||||||||
as of December 31 (3)
|
86,875,836 | 86,556,703 | 87,994,744 | 90,211,430 | 94,371,491 | 103,985,326 | |||||||||||||||||||
Annual Award Burn Rate (2)(4)
|
2.52% | 2.46% | 1.68% | 1.50% | 1.40% | 0.73% | |||||||||||||||||||
Total Fair Value of Awards Granted (2)(5)
|
$ | 8,491,634 | $ | 11,223,474 | $ | 13,146,016 | $ | 15,066,690 | $ | 30,847,571 | $ | 22,290,652 | |||||||||||||
Fair Value
of Annual Awards as a % of Market Capitalization on December 31 |
0.36% | 0.39% | 0.37% | 0.34% | 0.56% | 0.36% | |||||||||||||||||||
| Overhang as of 3/31/2007 | ||||
Shares and Units outstanding |
103,985,326 | |||
Options Outstanding (vested and unvested) |
6,116,709 | |||
Weighted Average Exercise Price |
$ | 35.09346 | ||
Shares Available for Issuance in 2002 Plan |
1,993,620 |
| (1) | See Notes to Consolidated Financial Statements in our annual reports on Form 10-K for the fiscal years ended December 31, 2006, 2005 and 2004 at Note 12 for more details. | |
| (2) | See Appendix 1 for detail of total annual awards granted, annual award burn rate and total fair value of awards granted. | |
| (3) | See Liquidity and Capital Resources Market Equity as of December 31 in our annual report on Form 10-K for the fiscal years ended December 31, 2002 December 31, 2006 at pages 33, 36, 42, 56, and 59, respectively. | |
| (4) | Total Annual Awards Granted divided by the Total Common Stock and Units Outstanding. | |
| (5) | Based on Black-Scholes value of options and closing sales price of common stock on date of restricted stock grant. | |
| (6) | Includes 2007 annual stock option and restricted share grants which were awarded in February 2007. | |
AMB Property Corporation
Annual Stock Option and Restricted Stock Grant Burn Rate
Analysis
Appendix 1
Appendix 1
| 2002 | 2003 | 2004 | 2005 | 2006 | YTD 3/31/2007 (6) | ||||||||||||||||||||||||||||||||||||||||||||
Stock Options
Granted (1)
|
1,989,413 | 91 | % | 1,853,604 | 87 | % | 1,252,843 | 85 | % | 1,086,313 | 81 | % | 874,091 | 66 | % | 500,058 | 66 | % | |||||||||||||||||||||||||||||||
Restricted Shares
Granted (1)
|
204,072 | 9 | % | 272,620 | 13 | % | 227,609 | 15 | % | 262,394 | 19 | % | 450,352 | 34 | % | 255,729 | 34 | % | |||||||||||||||||||||||||||||||
Total Annual
Awards Granted
(1)
|
2,193,485 | 100 | % | 2,126,224 | 100 | % | 1,480,452 | 100 | % | 1,348,707 | 100 | % | 1,324,443 | 100 | % | 755,729 | 100 | % | |||||||||||||||||||||||||||||||
Option Burn Rate (2)
|
2.29 | % | 2.14 | % | 1.42 | % | 1.20 | % | 0.93 | % | |||||||||||||||||||||||||||||||||||||||
Restricted Stock
Burn Rate (3)
|
0.23 | % | 0.31 | % | 0.26 | % | 0.29 | % | 0.48 | % | |||||||||||||||||||||||||||||||||||||||
Annual Award
Burn Rate |
2.52 | % | 2.46 | % | 1.68 | % | 1.50 | % | 1.40 | % | |||||||||||||||||||||||||||||||||||||||
Fair Value of Stock
Options Granted (4)
|
$ | 3,103,484 | 37 | % | $ | 3,781,352 | 34 | % | $ | 5,161,713 | 39 | % | $ | 4,866,682 | 32 | % | $ | 7,464,737 | 24 | % | $ | 5,950,690 | |||||||||||||||||||||||||||
Fair Value of
Restricted Stock
Granted (5)
|
5,388,150 | 63 | % | 7,442,122 | 66 | % | 7,984,303 | 61 | % | 10,200,008 | 68 | % | 23,382,834 | 76 | % | $ | 16,339,962 | ||||||||||||||||||||||||||||||||
Total Fair
Value of Awards
Granted |
$ | 8,491,634 | 100 | % | $ | 11,223,474 | 100 | % | $ | 13,146,016 | 100 | % | $ | 15,066,690 | 100 | % | $ | 30,847,571 | 100 | % | |||||||||||||||||||||||||||||
Calculation Notes |
|||||||||||||||||||||||||||||||||||||||||||||||||
Closing Price at
December 31 |
$ | 27.36 | $ | 32.88 | $ | 40.39 | $ | 49.17 | $ | 58.61 | $ | 58.79 | |||||||||||||||||||||||||||||||||||||
Market
Capitalization
(Stock & Units) as
of December 31
(000s) |
$ | 2,376,923 | $ | 2,845,984 | $ | 3,554,108 | $ | 4,435,696 | $ | 5,531,113 | $ | 6,113,297 | |||||||||||||||||||||||||||||||||||||
Average Black
Scholes Fair Value
Per Option |
$ | 1.56 | $ | 2.04 | $ | 4.12 | $ | 4.48 | $ | 8.54 | $ | 11.90 | |||||||||||||||||||||||||||||||||||||
Average Restricted
Stock Grant Fair
Value |
$ | 26.40 | $ | 27.30 | $ | 35.08 | $ | 38.87 | $ | 51.92 | $ | 63.91 | |||||||||||||||||||||||||||||||||||||
| (1) | See Notes to Consolidated Financial Statements in our annual reports on Form 10-K for the fiscal years ended December 31, 2006, 2005 and 2004 at Note 12 for more details. | |
| (2) | Annual stock options granted divided by common stock and units outstanding as of December 31 of the year presented. | |
| (3) | Annual restricted stock granted divided by common stock and units outstanding as of December 31 of the year presented. | |
| (4) | Based on Black-Scholes value of options. | |
| (5) | Based on closing sales price of common stock on date of grant. | |
| (6) | Includes 2007 annual stock option and restricted share grants which were awarded in February 2007. | |