EXHIBIT 99.1
AMB PROPERTY CORPORATION ANNOUNCES FOURTH QUARTER
AND FULL-YEAR 2000 RESULTS
PR Newswire - January 22, 2001 16:54
HIGHLIGHTS
- Adjusted earnings per share for the fourth quarter was $0.34, a
6.3% increase from the fourth quarter 1999
- FFO per share for the fourth quarter was $0.60, an 11.1%
increase over the fourth quarter 1999
- Same store NOI growth in the fourth quarter was 11.2%, driven by
31.1% rental increases
- Issued $225 million of fixed rate senior unsecured notes at an
average rate of 7.5% under medium-term note program during the
fourth quarter 2000
- Acquired $730 million of HTD(TM) industrial properties in 2000
- Completed $144 million of renovation and development projects in
2000
- Disposed of $176 million of non-core assets and exited three
non-core markets in 2000
SAN FRANCISCO, JANUARY 22 /PR Newsire/ - AMB Property Corporation (NYSE: AMB)
today reported adjusted earnings per share (EPS), before gain, extraordinary
and one-time items of $1.33, reflecting an increase of 8.1% for the year.
Adjusted EPS for the fourth quarter was $0.34, an increase of 6.3% over the
fourth quarter 1999. Fully diluted EPS for the fourth quarter and year ended
December 31, 2000 was $0.28 and $1.35, respectively, reflecting a decrease of
51.7% and 30.4% over the same periods in 1999.
Funds from Operations (FFO) rose to a record $2.32 per fully diluted share for
the full-year 2000, a 10.5% increase over 1999. Fourth quarter FFO per fully
diluted share increased 11.1% over the fourth quarter of 1999 to $0.60. Since
going public in the fourth quarter of 1997, AMB has grown FFO per share by an
average of 11.9% per year.
The strength of AMB's operating properties, located in major metropolitan
markets, was illustrated by an 8.4% increase in internal growth for the year and
11.2% for the quarter, measured by same store cash basis net operating income.
Same store growth for the year was driven by a 28.0% increase in same store base
rents on leases commencing during the year and 58.9% tenant retention at the
same-store properties. For the entire portfolio, rent increases on new leases
signed during the year were 26.5% and occupancy was 96.3% at year-end, up from
95.9% at year-end 1999.
"The strong fourth quarter and full-year 2000 financial results, in the face of
an economic slowdown and significant stock market declines, affirm our strategy
to dispose of nearly $1 billion of retail assets and focus our investment
strategy on industrial real estate located in supply-constrained markets
nationwide," stated Hamid R. Moghadam, chairman and CEO of AMB.
During the year, AMB continued to sharpen its hub market HTD(TM) focus by
exiting smaller, non-strategic markets and through the disposition of non-core
assets. Dispositions totaled $176 million in 2000, including $68 million in the
fourth quarter. W. Blake Baird, president of AMB, stated "Our long-term capital
recycling and private equity funding efforts are on track and we have made
significant progress this past year executing our investment strategy."
AMB acquired 57 industrial buildings totaling 4.8 million square feet for $322
million during the fourth quarter, including the acquisition of a 95% interest
in 20 on-tarmac air cargo facilities at eight U.S. airports from investors in
Aviation Facilities Company (AFCO). This acquisition makes AMB one of the
largest owners of on-tarmac air cargo facilities in the U.S. and allows AMB to
better serve existing customers and to expand relationships with new
airport-related customers.
AMB acquired $730 million of HTD(TM) industrial assets in 2000, totaling 10.5
million square feet. "The AFCO acquisition and the presence we established
surrounding New York's JFK airport exemplify our strategy," said Baird.
AMB completed and stabilized 12 industrial development and renovation projects
for a total investment of $144 million, including five projects in the fourth
quarter totaling $70 million. The company's industrial development pipeline
currently stands at $306 million and consists of 5.5 million square feet, of
which $163 million, or 53%, has been funded.
AMB Institutional Alliance Fund I, a multi-investor fund including 16 pension
funds, foundations and endowments that have co-invested alongside AMB, has
invested $315 million in operating assets and committed $63 million to
renovation and development projects. "AMB has been able to grow our core
business through access to private capital sources," said John T. Roberts,
president of AMB Investment Management. "Our private capital strategy continues
an 18-year tradition of meeting institutional investors real estate needs, and
today, allows us to maximize value for our public stockholders."
Financing activity during the quarter strengthened the balance sheet and
provided additional flexibility to the debt maturity schedule. During the fourth
quarter AMB issued $75 million of 10-year notes at a fixed rate of 8.0% and $150
million of five-year notes at a fixed rate of 7.2%. In 2000, AMB issued a total
of $280 million of notes under the medium-term note (MTN) program at an average
rate of 7.6%. "Despite the capital market pressure that the REIT industry faces,
AMB has successfully managed its balance sheet through its capital recycling
program, the repayment of mortgage debt and by opportunistically tapping the
public debt market through our MTN program," said Michael A. Coke, chief
financial officer.
AMB will host its fourth quarter 2000 conference call tomorrow, January 23, 2000
at 11:00 AM PDT/ 2:00 PM EDT. You will have the opportunity to listen to the
conference call over the Internet through AMB's website at www.amb.com. To
listen to the call live, please go to the web site 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, a replay will be available
from our website shortly after the call.
AMB Property Corporation is one of the leading owners and operators of
industrial real estate nationwide. As of December 31, 2000, AMB owned, managed
and had renovation and development projects totaling 92 million square feet and
1005 buildings in 27 metropolitan markets. AMB targets High Throughput
Distribution(TM) properties - industrial properties located in major
distribution markets near airports, seaports and ground transportation systems.
These HTD(TM) facilities are built for speed and benefit from barriers to entry
due to their supply-constrained locations and proximity to large customer bases.
AMB -- A tradition of nontraditional thinking(TM).
This press release contains forward-looking statements about business strategy
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 our 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 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-Q for the
quarter ended September 30, 2000.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
DECEMBER 31, SEPTEMBER 30, JUNE 30, MARCH 31, DECEMBER 31,
2000 2000 2000 2000 1999
----------- ----------- ----------- ----------- -----------
ASSETS
Investments in real estate:
Total investments in properties $ 4,026,597 $ 3,787,451 $ 3,564,744 $ 3,288,333 $ 3,249,452
Accumulated depreciation (177,467) (160,880) (142,037) (120,193) (103,558)
----------- ----------- ----------- ----------- -----------
Net investments in properties 3,849,130 3,626,571 3,422,707 3,168,140 3,145,894
Investment in unconsolidated joint
ventures 80,432 77,981 77,959 67,414 66,357
Properties held for divestiture, net 197,146 149,842 235,359 232,109 181,201
----------- ----------- ----------- ----------- -----------
Net investments in real estate 4,126,708 3,854,394 3,736,025 3,467,663 3,393,452
Cash and cash equivalents 42,722 37,840 21,674 89,094 137,019
Mortgage receivables 115,969 77,920 -- -- --
Accounts receivable, net 69,874 67,667 55,157 54,064 35,516
Investments in affiliated companies 35,731 27,388 3,436 10,349 150
Investments in other companies, net 15,965 22,371 25,321 25,575 43,512
Other assets 18,657 15,462 11,408 9,882 11,901
----------- ----------- ----------- ----------- -----------
Total assets $ 4,425,626 $ 4,103,042 $ 3,853,021 $ 3,656,627 $ 3,621,550
=========== =========== =========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Unsecured credit facility $ 216,000 $ 233,000 $ 176,000 $ 43,000 $ 83,000
Unsecured senior debt securities 680,000 455,000 400,000 400,000 400,000
Alliance Fund I credit facility -- -- 51,000 53,000 80,000
Secured debt 940,276 825,477 751,091 766,211 707,037
Other liabilities 147,042 144,104 136,168 128,720 89,371
----------- ----------- ----------- ----------- -----------
Total liabilities 1,983,318 1,657,581 1,514,259 1,390,931 1,359,408
Minority interests:
Preferred units 318,053 318,176 276,233 276,222 256,641
Minority interests 356,325 354,274 283,729 207,138 176,242
----------- ----------- ----------- ----------- -----------
Total minority interests 674,378 672,450 559,962 483,360 432,883
Stockholders' equity:
Common stock 1,671,830 1,676,911 1,682,700 1,686,236 1,733,159
Preferred stock 96,100 96,100 96,100 96,100 96,100
----------- ----------- ----------- ----------- -----------
Total stockholders' equity 1,767,930 1,773,011 1,778,800 1,782,336 1,829,259
Total liabilities and stockholders'
equity $ 4,425,626 $ 4,103,042 $ 3,853,021 $ 3,656,627 $ 3,621,550
=========== =========== =========== =========== ===========
CONSOLIDATED STATEMENTS OF FUNDS FROM OPERATIONS
(dollars in thousands, except share data)
FOR THE QUARTERS ENDED FOR THE YEARS ENDED
DECEMBER 31, DECEMBER 31,
------------------------------- -----------------------------------
2000 1999 2000 1999
---- ---- ---- ----
Income from operations $ 37,344 $ 40,775 $ 159,699 $ 158,851
Real estate related depreciation and amortization:
Total depreciation and amortization 31,123 18,210 96,258 67,505
FF&E depreciation and ground lease amortization (1) (257) (353) (1,114) (1,002)
FFO attributable to minority interests: (2)
Separate account co-investors (1,258) (1,147) (4,935) (5,148)
AMB Institutional Alliance Fund I (3,854) (677) (7,752) (804)
Other joint venture partners (374) (539) (2,368) (2,230)
Adjustments to derive FFO in unconsolidated JV: (3)
Company's share of net income (1,206) (1,122) (5,212) (4,701)
Company's share of FFO 1,700 1,616 7,188 6,677
Preferred stock dividends (2,125) (2,125) (8,500) (8,500)
Preferred unit distributions (6,835) (5,601) (24,613) (19,501)
------------ ------------ ------------- -------------
Funds from operations $ 54,258 $ 49,037 $ 208,651 $ 191,147
============ ============ ============= =============
FFO per common share and unit:
Basic $ 0.61 $ 0.54 $ 2.33 $ 2.11
============ ============ ============= =============
Diluted $ 0.60 $ 0.54 $ 2.32 $ 2.10
============ ============ ============= =============
Weighted average common shares and units:
Basic 89,619,042 90,779,163 89,566,375 90,792,310
============ ============ ============= =============
Diluted (4) 90,332,931 90,779,163 90,024,511 90,867,934
============ ============ ============= =============
(1) Ground lease amortization represents the straight-line amortization of the
Company's investments in ground leased properties, for which the Company
does not have a purchase option.
(2) Represents FFO allocated to minority interests in consolidated joint
ventures whose interests are not exchangeable into common stock. The
minority interest's share of NOI for the quarters ended December 31, 2000
and 1999, was $8,042 and $4,326, respectively, and for the years ended
December 31, 2000 and 1999, was $24,979 and $12,535, respectively.
(3) AMB's share of NOI for the quarters ended December 31, 2000 and 1999, was
$1,998 and $1,935, respectively, and for the years ended December 31, 2000
and 1999, was $8,338 and $7,983, respectively.
(4) Includes the dilutive effect of stock options.
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except share data)
FOR THE QUARTERS ENDED FOR THE YEARS ENDED
DECEMBER 31 DECEMBER 31
2000 1999 2000 1999
---- ---- ---- ----
REVENUES
Rental Revenues (1) $ 126,808 $ 108,763 $ 464,164 $ 439,658
Equity in earnings of unconsolidated joint
ventures 1,206 1,121 5,212 4,701
Investment management and other income 4,520 1,566 8,331 3,824
---------- ---------- ---------- ----------
Total revenues 132,534 111,450 477,707 448,183
OPERATING EXPENSES
Property operating 30,275 25,382 107,730 107,923
Interest, including amortization (2) 27,364 20,976 90,270 88,681
Depreciation and amortization 31,123 18,210 96,258 67,505
General, administrative, and other 6,428 6,107 23,750 25,223
---------- ---------- ---------- ----------
Total expenses 95,190 70,675 318,008 289,332
---------- ---------- ---------- ----------
Income from operations 37,344 40,775 159,699 158,851
Minority interests:
Preferred units (6,835) (5,601) (24,613) (19,501)
Minority units (5,449) (4,043) (20,348) (14,510)
---------- ---------- ---------- ----------
Total minority interests (12,284) (9,644) (44,961) (34,011)
---------- ---------- ---------- ----------
Net income before gain from disposition of
real estate 25,060 31,131 114,738 124,840
Gain from disposition of real estate 824 22,409 7,044 55,466
Net income before extraordinary items 25,884 53,540 121,782 180,306
Extraordinary items - (1,347) - (4,203)
Net income 25,884 52,193 121,782 176,103
Preferred stock dividends (2,125) (2,125) (8,500) (8,500)
----------- ----------- ----------- -----------
Net income available to common stockholders $ 23,759 $ 50,068 $ 113,282 $ 167,603
=========== =========== =========== ===========
Net income per common share:
Basic $ 0.28 $ 0.58 $ 1.35 $ 1.94
=========== =========== =========== ===========
Diluted $ 0.28 $ 0.58 $ 1.35 $ 1.94
=========== =========== =========== ===========
Weighted average common shares:
Basic 83,814,658 86,262,815 83,697,170 86,271,862
=========== =========== =========== ===========
Diluted (3) 84,528,547 86,262,815 84,155,306 86,347,487
=========== =========== =========== ===========
(1) Includes straight-line rents of $4,018 and $3,324 for the quarters and
$10,203 and $10,848 for years ended December 31, 2000 and 1999,
respectively.
(2) Net of capitalized interest of $3,938 and $2,574 for the quarters and
$15,461 and $10,872 for the years ended December 31, 2000 and 1999,
respectively.
(3) Includes the dilutive effect of stock options