Exhibit 99.1 For Immediate Release AMB Property Corporation Announces Third Quarter 2001 Results Highlights - Earnings per share (EPS) for the quarter were $0.34, reflecting a 12.8% decline from the third quarter 2000; year-to-date EPS increased 10.4% to $1.17 - Adjusted EPS (before gains and extraordinary and one-time items) increased 6.3% from the third quarter of 2000 to $0.34 - Funds from operations (FFO) per share increased 6.8% from the third quarter 2000 to $0.63 - Same store net operating income (NOI) growth was 6.7% for the quarter and 7.2% year-to-date - Occupancy was 96.6% in the industrial portfolio, up from 95.9% at June 30, 2001 - Industrial acquisitions totaled $118.1 million and dispositions totaled $97.3 million including $57.2 million of retails assets - Repurchased 1.0 million shares of common stock - AMB Institutional Alliance Fund II announces $195 million of third party equity commitments San Francisco, October 8, 2001 - AMB Property Corporation (NYSE: AMB) today reported earnings per share (EPS) of $0.34 for the third quarter 2001, a 12.8% decline from the third quarter of 2000. Adjusted EPS (before gains and extraordinary and one-time items) was $0.34 for the quarter, reflecting a 6.3% increase over the third quarter of 2000. Year-to-date EPS increased 10.4% to $1.17 and adjusted EPS increased 5.1% to $1.03. "I am very pleased with our strong results in this difficult operating environment. Our overall same store net operating income grew by 6.7% compared to the third quarter of 2000. Our top eight hub and gateway markets, which account for 72.7% of our total revenues, outperformed our entire portfolio with 9.6% same store NOI growth. Our strategy of focusing on the supply constrained submarkets of our hub and gateway markets helped us achieve portfolio-wide occupancy of 96.6% and increase rents by 14.4%. The San Francisco Bay Area came in as our strongest market with an overall occupancy of 99.0%," stated Hamid Moghadam, chairman & chief executive officer. "As we have said before, we anticipate that it will become increasingly difficult to continue to produce operating results at this level, however we will continue to work hard to outperform on a relative basis." Earnings growth for the quarter was positively impacted by the sale of a value-added conversion project by AMB's subsidiary, Headlands Realty, of $1.3 million. Gains on dispositions of operating properties of $8.8 million was offset by unrealized losses taken against two retail assets held for sale totaling $10.0 million. In the third quarter 2000, AMB recognized gains of $5.8 million. Growth in earnings before gains and extraordinary and one-time items was driven by continued strong operating performance at the company's industrial properties. Same store cash basis NOI growth was 6.7% with a 16.8% increase in same store base rents on lease renewals and rollovers during the quarter, and 65.7% tenant retention at the same store properties. Year-to-date same store NOI growth was 7.2%. Rent increases on renewals and rollovers during the quarter for the entire industrial portfolio were 14.4% and tenant retention was 5 68.4%. Occupancy for the industrial portfolio was 96.6%, up from 95.9% at the end of the second quarter. The eight hub and gateway markets had occupancy of 97.0%. Funds from operations (FFO) per fully diluted share were $0.63, including $0.01 per share of gains from Headlands Realty, and reflecting an increase of 6.8% over the third quarter of 2000. Excluding these gains FFO per share was $0.61, an increase of 3.4% over 2000. FFO growth for the quarter was offset by $0.04 from dilution of dispositions and contributions to co-investment ventures earlier in 2001. Year-to-date FFO per share decreased 4.1% to $1.64, negatively impacted by non-cash charges for impairment reserves of $0.23 per share. Excluding the charges, year-to-date FFO per share increased 9.4% to $1.87. "Since the beginning of the year, AMB has continued to build liquidity by raising private equity capital, disposing of non-core assets and opportunistically raising long-term capital which has resulted in a reduction of our debt-to-book capitalization ratio by 170 basis points," stated W. Blake Baird, president. "It is important to be well positioned with a strong balance sheet in an economic downturn, and we believe this liquidity, including more than $250 million of cash on hand, will enable AMB to execute on opportunities in both the real estate and capital markets." In the third quarter, AMB purchased 16 industrial buildings totaling 1.7 million square feet for $118.1 million and disposed of $97.3 million of non-core assets, including the largest remaining retail asset for $52.9 million. Industrial development completions totaled 336,000 square feet for $26.8 million, and retail development deliveries totaled 229,000 square feet for $38.9 million. The remaining industrial development commitments through 2003 total $204.6 million, down $49.6 million since the second quarter, and are 43% pre-leased with 67% of the total estimated investment funded. AMB's development commitments represent only 4.2% of total assets. AMB Institutional Alliance Fund II, a multi-investor fund including pension funds, foundations, endowments and private individuals that co-invest alongside AMB, announced an additional $36 million of private equity capital commitments subsequent to June 30, 2001, bringing the expected total capitalization of Fund II to $487 million when combined with debt financings and AMB's 20% equity investment. Fund II had $136 million invested in operating properties at September 30, 2001. During the quarter, AMB issued $40 million of fixed rate perpetual preferred units at a coupon of 7.95% and sold $25 million of 10-year notes at a fixed rate of 6.75%. At the end of the quarter, AMB had no outstanding borrowings on its $500 million line of credit. AMB repurchased 1.0 million shares of its common stock for $24.7 million. Under the company's previously announced $100 million share repurchase program, AMB has repurchased a total of 2.5 million common shares in the open market for $52.6 million. AMB will hold its third quarter 2001 conference call tomorrow, October 9, 2001 at 2:00 p.m. EDT (11:00 a.m. PDT). Stockholders and interested parties may access a webcast of the call through AMB's website or a broadcast of the call by dialing (719) 457-2629 reservation code 562979. For those who are not able to listen to the live broadcast, a replay will be available for one week following the call through AMB's website or by dialing (719) 457-0820, reservation code 562797. AMB Property Corporation is one of the leading owners and operators of industrial real estate nationwide. As of September 30, 2001, AMB owned, managed and had renovation and development projects totaling 92.6 million square feet and 996 buildings in 26 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 its status as a real estate investment trust under the Internal Revenue Code, environmental uncertainties, risks related to natural disasters, financial market fluctuations, risks arising from the California energy shortage, changes in real estate and zoning 6 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 June 30, 2001. CONSOLIDATED BALANCE SHEETS (dollars in thousands)