SUPPLEMENTAL ANALYST PACKAGE            Second Quarter Earnings Conference Call TABLE OF CONTENTS Financial Highlights..... 1 Consolidated Balance Sheets.... 2 Consolidated Statements of Operations... 3 Consolidated Statements of Funds from Operations... 4 Adjusted EBITDA and Coverage Ratios...... ... 5 Supplemental Cash Flow Information...... 6 Portfolio Overview... 7 Consolidated Operating and Leasing Statistics....... ... 8 Consolidated Market Operating Statistics 9 Consolidated Portfolio Overview 10 Unconsolidated Portfolio Overview ... 11 Lease Expirations... 12 Top 25 Customers ... 13 Historical Industrial Operating and Leasing Statistics.. 14 Acquisitions.... 15 Operating Property Dispositions 16 Contributions to Private Captial Joint Ventures 17 New Development & Renovation Projects... ... 18 Development & Renovation Projects in Process.. 19 Stabilized Development & Renovation Projects ...... 21 Development Projects Available for Sale or Contribution and Sold or Contributed Projects... 22 Land Inventory...... 23 Capitalization Summary.. 24 Co-Investment Consolidated Joint Ventures... 25 Other Consolidated Joint Ventures... 26 Unconsolidated Joint Ventures, Mortgage Investments and Other Investments....... 27 Reporting Definitions.. ... 28 Supplemental Financial Measures Disclosures..... 29 AMB Property Corporation Contacts...... 30 Cover: AMB expanded its presence in Los Angeles’ South Bay industrial submarket to approximately 6.8 million square feet, with acquisitions of the fully-leased 119,400 square foot AMB Skylark Distribution Center, and the 3 acre AMB Topanga trailer storage development site. Los Angeles is AMB’s largest market with more than 18 million square feet of operating properties and projects under development. i

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call FINANCIAL HIGHLIGHTS (dollars in thousands, except share data) Quarters Ended June 30, Six Months Ended June 30, 2006 Change 2005 2006 Change 2005 Operating Data Revenues $180,273 14.2% $157,808$361,283 15.1% $313,960 Adjusted EBITDA (1) 168,832 31.3% 128,549 294,462 10.6% 266,181 Net income available to common stockholders 72,335 85.4% 39,006 95,719 14.0% 83,990 FFO (2) 82,355 62.7% 50,622 131,094 30.9% 100,147 Per diluted share and unit: EPS$0.80 77.8% $0.45$1.06 9.3% $0.97 FFO (2) 0.87 58.2% 0.55 1.39 27.5% 1.09 Dividends per common share 0.460 4.5% 0.440 0.920 4.5% 0.880 Ratios Interest coverage (1) 3.7 x 3.0 x 3.4 x 3.1 x Fixed charge coverage (1) 2.8 x 2.3 x 2.5 x 2.4 x FFO payout 53% 80% 66% 81% As of June 30, 2006 March 31, 2006 December 31, 2005 Capitalization AMB’s share of total debt (3) $2,983,751$2,830,250 $2,601,878 Preferred equity 377,824 388,846 467,325 Market equity 4,675,100 5,010,887 4,435,696 Total capitalization $8,036,675$8,229,983 $7,504,899 Ratios AMB’s share of total debt-to-AMB’s share of total book capitalization (3) (4) 56.9% 55.9% 53.3% AMB’s share of total debt-to-AMB’s share of total market capitalization (3) (5) 37.1% 34.4% 34.7% Total common shares and units outstanding 92,484,670 92,332,552 90,211,430 (1) See the footnotes to the Adjusted EBITDA and Coverage Ratios. (2) See the footnotes to the Consolidated Statements of Funds from Operations. (3) See Supplemental Financial Measures Disclosures for a discussion of why management believes the Company’s share of total debt is a useful supplemental measure for its management and investors, of ways to use this measure when assessing the Company’s financial performance, and the limitations of the measure as a measurement tool. (4) See Reporting Definitions for definition of “AMB’s share of total debt-to-AMB’s share of total book capitalization.” (5) See Reporting Definition for definition of “AMB’s share of total debt-to-AMB’s share of total market capitalization.”

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call CONSOLIDATED BALANCE SHEETS (dollars in thousands) As of June 30, 2006 March 31, 2006 December 31, 2005 Assets Investments in real estate: Total investments in properties $7,376,322$6,913,524 $6,798,294 Accumulated depreciation (774,528) (736,760) (697,388) Net investments in properties 6,601,794 6,176,764 6,100,906 Investments in unconsolidated joint ventures 123,107 118,472 118,653 Properties held for contribution, net 71,981 266,311 32,755 Properties held for divestiture, net 46,857 31,201 17,936 Net investments in real estate 6,843,739 6,592,748 6,270,250 Cash and cash equivalents 231,912 168,007 267,233 Mortgages and loans receivable 18,816 21,589 21,621 Accounts receivable, net 127,528 148,907 178,682 Other assets 114,371 112,312 64,953 Total assets $7,336,366$7,043,563 $6,802,739 Liabilities and Stockholders’ Equity Secured debt $1,824,468$1,917,805 $1,912,526 Unsecured senior debt 1,051,249 950,937 975,000 Unsecured credit facilities 909,952 734,110 490,072 Other debt 88,217 63,543 23,963 Accounts payable and other liabilities 254,223 249,149 263,744 Total liabilities 4,128,109 3,915,544 3,665,305 Minority interests: Joint venture partners 950,209 899,658 853,643 Preferred unitholders 189,964 200,986 278,378 Limited partnership unitholders 89,717 87,973 89,114 Total minority interests 1,229,890 1,188,617 1,221,135 Stockholders’ equity: Common equity 1,803,036 1,764,071 1,740,751 Preferred equity 175,331 175,331 175,548 Total stockholders’ equity 1,978,367 1,939,402 1,916,299 Total liabilities and stockholders’ equity $7,336,366$7,043,563 $6,802,739

 

SUPPLEMENTAL ANALYST PACKAGE            Second Quarter Earnings Conference Call CONSOLIDATED STATEMENTS OF OPERATIONS (dollars in thousands, except share data) For the Quarters Ended For the Six Months Ended June 30, June 30, 2006 2005 2006 2005 Revenues Rental revenues $175,330$154,370$351,234 $307,204 Private capital income 4,943 3,438 10,049 6,756 Total revenues 180,273 157,808 361,283 313,960 Costs and expenses Property operating costs (44,883) (39,916) (90,400) (79,500) Depreciation and amortization (44,088) (37,764) (87,162) (72,636) Impairment losses (5,394) - - (5,394) — General and administrative (25,144) (20,111) (47,998) (38,060) Other expenses (1) 296 792 (241) (738) Fund costs (479) (380) (1,093) (744) Total costs and expenses (119,692) (97,379) (232,288) (191,678) Other income and expenses Equity in earnings of unconsolidated joint ventures (2) 8,278 7,188 10,366 8,430 Other income (1) 1,933 1,667 4,998 1,804 Gains from dispositions of real estate, net — 17,622 - - 18,923 Development profits, net of taxes 45,698 1,975 46,372 19,924 Interest expense, including amortization (44,075) (37,186) (83,800) (74,011) Total other income and expenses 11,834 (8,734) (22,064) (24,930) Income from operations before minority interests 72,415 51,695 106,931 97,352 Minority interests’ share of income: Joint venture partners’ share of income (9,060) (8,893) (17,731) (18,242) Joint venture partners’ share of development profits (1,619) (284) (1,651) (10,120) Preferred unitholders (4,024) (5,368) (9,025) (10,736) Limited partnership unitholders (495) (849) (1,311) (1,379) Total minority interests’ share of income (15,198) (15,394) (29,718) (40,477) Income from continuing operations 57,217 36,301 77,213 56,875 Discontinued operations: Income (loss) attributable to discontinued operations, net of minority interests 1,063 (882) 1,630 (2,634) Gain from disposition of real estate, net of minority interests 17,073 5,370 24,087 33,315 Total discontinued operations 18,136 4,488 25,717 30,681 Net income 75,353 40,789 102,930 87,556 Preferred stock dividends (3,095) (1,783) (6,191) (3,566) Preferred unit redemption discount/(issuance costs) 77 — (1,020) — Net income available to common stockholders $72,335$39,006$95,719$83,990 Net income per common share (diluted) $0.80$0.45$1.06$0.97 Weighted average common shares (diluted) 90,135,659 87,076,011 90,147,493 86,845,858 (1) Includes changes in liabilities and assets associated with the Company’s deferred compensation plan. (2) Includes gains on sale of operating assets of $7.7 million, $8.3 million, $4.8 million and $5.0 million, respectively, for the three and six months ended June 30, 2006 and 2005.

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call CONSOLIDATED STATEMENTS OF FUNDS FROM OPERATIONS (1) (dollars in thousands, except share data) For the Quarters Ended For the Six Months Ended June 30, June 30, 2006 2005 2006 2005 Net income $75,353$40,789$102,930$87,556 Gains from disposition of real estate, net of minority interests (17,073) (22,992) (24,087) (52,238) Depreciation and amortization: Total depreciation and amortization 44,088 37,764 87,162 72,636 Discontinued operations’ depreciation 350 7,166 544 16,416 Non-real estate depreciation (1,068) (802) (2,068) (1,547) Adjustments to derive FFO from consolidated JVs: Joint venture partners’ minority interests (Net income) 9,060 8,893 17,731 18,242 Limited partnership unitholders’ minority interests (Net income) 495 849 1,311 1,379 Limited partnership unitholders’ minority interests (Development profits) 2,208 94 2,240 552 Discontinued operations’ minority interests (Net income) (110) 2,025 (214) 4,180 FFO attributable to minority interests (21,748) (24,103) (42,183) (47,690) Adjustments to derive FFO from unconsolidated JVs: AMB’s share of net income (8,278) (7,188) (10,366) (8,430) AMB’s share of FFO 2,096 4,469 5,305 7,216 AMB’s share of development profits, net — 5,441 — 5,441 Preferred stock dividends (3,095) (1,783) (6,191) (3,566) Preferred unit redemption discount (issuance costs) 77 - - (1,020) — Funds from operations $82,355$50,622$131,094$100,147 FFO per common share and unit (diluted) $0.87$0.55$1.39$1.09 Weighted average common shares and units (diluted) 94,520,866 91,795,834 94,534,263 91,566,987 (1) See Supplemental Financial Measures Disclosures for a discussion of why management believes FFO is a useful supplemental measure of operating performance, of ways in which investors might use FFO when assessing AMB’s financial performance, and of FFO’s limitations as a measurement tool.

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call ADJUSTED EBITDA (1) AND COVERAGE RATIOS (dollars in thousands) For the Quarters Ended For the Six Months Ended June 30, June 30, 2006 2005 2006 2005 Net income $75,353 $40,789 $102,930 $87,556 Depreciation and amortization 44,088 37,764 87,162 72,636 Impairment losses 5,394 — 5,394 — Stock-based compensation amortization 6,112 2,664 10,941 6,944 Adjustments to derive adjusted EBITDA from unconsolidated JVs: AMB’s share of net income (8,278) (7,188) (10,366) (8,430) AMB’s share of FFO (2) 2,096 4,469 5,305 7,216 AMB’s share of interest expense 2,428 2,274 4,455 3,936 AMB’s share of development profits, net of taxes — 5,441 - - 5,441 Interest expense, including amortization 44,075 37,186 83,800 74,011 Total minority interests’ share of income 15,198 15,394 29,718 40,477 Total discontinued operations, including gains (18,136) (22,110) (25,717) (49,604) Discontinued operations’ adjusted EBITDA 502 11,866 840 25,998 Adjusted EBITDA $168,832$128,549$294,462$266,181 Interest Interest expense, including amortization — continuing operations $44,075$37,186$83,800$74,011 Interest expense, including amortization — discontinued operations (801) 3,558 (1,120) 8,036 AMB’s share of interest expense from unconsolidated JVs 2,428 2,274 4,455 3,936 Total interest$45,702$43,018$87,135$85,983 Interest coverage (3) 3.7 x 3.0 x 3.4 x 3.1 x Fixed charge Interest expense, including amortization — continuing operations $44,075$37,186$83,800$74,011 Amortization of financing costs and debt premiums — continuing operations (1,805) (465) (4,476) (1,438) Interest expense, including amortization — discontinued operations (801) 3,558 (1,120) 8,036 Amortization of financing costs and debt premiums — discontinued operations — (111) — (233) AMB’s share of interest expense from unconsolidated JVs 2,428 2,274 4,455 3,936 Capitalized interest 10,018 6,813 18,551 13,741 Preferred unit distributions 4,024 5,368 9,025 10,736 Preferred stock dividends 3,095 1,783 6,191 3,566 Total fixed charge $61,034$56,406$116,426$112,355 Fixed charge coverage (4) 2.8 x 2.3 x 2.5 x 2.4 x (1) See Supplemental Financial Measures Disclosures for a discussion of why management believes adjusted EBITDA is a useful supplemental measure of operating performance and liquidity, of ways in which investors might use adjusted EBITDA when assessing AMB’s financial performance, and of adjusted EBITDA’s limitations as a measurement tool. (2) See Supplemental Financial Measures Disclosures for a discussion of why management believes FFO is a useful supplemental measure of operating performance, of ways in which investors might use FFO when assessing AMB’s financial performance, and of FFO’s limitations as a measurement tool. (3) See Reporting Definitions for interest coverage and Supplemental Financial Measures Disclosures for a discussion of why management believes interest coverage is a useful supplemental measure of liquidity. (4) See Reporting Definitions for fixed charge coverage and Supplemental Financial Measures Disclosures for a discussion of why management believes fixed charge coverage is a useful supplemental measure of liquidity.

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call SUPPLEMENTAL CASH FLOW INFORMATION (dollars in thousands) For the Quarters Ended For the Six Months Ended June 30, June 30, 2006 2005 2006 2005 Supplemental Information: Straight-line rents and amortization of lease intangibles $6,154$4,864$11,300$9,361 AMB’s share of straight-line rents and amortization of lease intangibles $5,078$3,277$9,077$5,700 Gross lease termination fees $296$51$6,050$1,282 Net lease termination fees (1) $241$38$5,986$1,214 AMB’s share of net lease termination fees $147$38$5,892$1,209 AMB’s share of unconsolidated JV’s NOI (2)$7,061$1,776$13,908$6,414 JV Partners’ share of cash basis NOI (2) $36,678$37,298$70,812$74,073 Discontinued operations’ NOI - Held for Sale (2) $207$61$347$123 Discontinued operations’ NOI — Sold (2) $115$11,831$312$25,909 Stock-based compensation amortization $6,112$2,664$10,941$6,944 Capitalized interest $10,018$6,813$18,551$13,741 Recurring capital expenditures: Tenant improvements $4,605$5,200$8,426$10,483 Lease commissions and other lease costs 6,548 4,609 12,646 10,178 Building improvements 12,474 6,922 16,272 11,327 Sub-total 23,627 16,731 37,344 31,988 JV Partners’ share of capital expenditures (6,036) (4,432) (9,859) (7,719) AMB’s share of recurring capital expenditures $17,591$12,299$27,485$24,269 (1) Net lease termination fees are defined as gross lease termination fees less the associated straight-line rent balance. (2) See Supplemental Financial Measures Disclosures for a discussion of why management believes NOI is a useful supplemental measure for our management and investors, of ways to use this measure when assessing financial performance, and the limitations of the measure as a measurement tool.

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call PORTFOLIO OVERVIEW (1) As of June 30, 2006 U.S. U.S. U.S. Total Non-Japan Total Target Non-Target On-Tarmac Mexico Canada N. America Europe Japan Asia Europe/Asia            Grand Total Operating Portfolio (2) Number of buildings 859 70 34 11 — 974 33 8 1 42 1,016 Rentable square feet 88,413,463 6,914,944 2,679,526 2,474,745 — 100,482,678 3,746,379 1,960,480 151,749 5,858,608 106,341,286 % of total rentable square feet 83.2% 6.5% 2.5% 2.3% — 94.5% 3.6% 1.8% 0.1% 5.5% 100.0% Pro rata rentable square feet ow ned by AMB 57,422,148 4,527,375 2,488,202 494,949 - - 64,932,674 3,728,814 392,096 151,749 4,272,659 69,205,333 % of total rentable square feet ow ned by AMB 83.0% 6.5% 3.6% 0.7% — 93.8% 5.4% 0.6% 0.2% 6.2% 100.0% Occupancy percentage 95.2% 90.0% 95.0% 95.8% — 94.8% 97.9% 84.6% 100.0% 93.5% 94.8% Annualized base rent (000’s) $492,108 $29,292 $46,010 $13,747 — $581,157 $30,952 $22,755 $537 $54,244 $635,401 % of total annualized base rent 77.4% 4.7% 7.2% 2.2% — 91.5% 4.8% 3.6% 0.1% 8.5% 100.0% Number of leases 2,589 270 237 35 — 3,131 81 24 2 107 3,238 Annualized base rent per square foot $5.85 $4.70 $18.07 $5.80 — $6.10 $8.43 $13.72 $3.54 $9.90 $6.30 Development Pipeline (3) Number of development buildings 46 — — 5 4 55 12 6 5 23 78 Rentable square feet 4,623,861 — — 1,894,647 1,219,431 7,737,939 2,742,501 3,313,100 1,460,373 7,515,974 15,253,913 Land acres held for future development 984 139 — 172 102 1,397 70 57 - - 127 1,524 Total number of buildings 905 70 34 16 4 1,029 45 14 6 65 1,094 Total rentable square feet 93,037,324 6,914,944 2,679,526 4,369,392 1,219,431 108,220,617 6,488,880 5,273,580 1,612,122 13,374,582 121,595,199 (1) Includes consolidated and unconsolidated operating and development properties as well as recently completed developments that have not yet been placed in operations but are being held for sale or contribution. (2) Includes all consolidated and unconsolidated operating properties. (3) Development pipeline includes recently completed development projects available for sale or contribution totaling four buildings and 1,005,434 square feet.

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call CONSOLIDATED OPERATING AND LEASING STATISTICS (dollars in thousands, except per square foot amounts) Prior Prior Operating Portfolio (1) Quarter Quarter Same Store Pool (2) Quarter Quarter Square feet ow ned at June 30, 2006 (3) 92,185,403 89,845,311 Square feet in same store pool at June 30, 2006 79,143,334 79,661,500 % of total consolidated industrial square feet 85.9% 88.7% Occupancy percentage 95.4% 94.7% Occupancy percentage at period end: Average Occupancy percentage (6) 94.5% 94.5% June 30, 2006 95.6% 94.9% June 30, 2005 94.5% 95.0% Weighted average lease terms: Weighted average lease terms: Original 6.2 years 6.1 years            Original 6.0 years 6.0 years            Remaining 3.4 years 3.4 years            Remaining 3.2 years 3.2 years            Year-to- Year-to- Operating Portfolio (1) Quarter Date Same Store Pool (2) Quarter Date Tenant retention 66.7% 67.5% Tenant retention 66.4% 67.6% (4) Same Space Leasing Activity: Same Space Leasing Activity: (4) Rent increases (decreases) on renew als and rollovers (3) (0.9%) (6.0%) Rent increases (decreases) on renew als and rollovers (1.5%) (6.4%) Same space square footage commencing (millions) 4.6 9.3 Same space square footage commencing (millions) 4.5 9.0 2nd Generation Leasing Activity: Cash basis NOI % change: (5) TIs and LCs per square foot: Revenues 3.2% 2.3% Retained $1.23$1.25 Expenses 3.7% 4.1% Re-tenanted 3.21 3.05 NOI (5) 3.0% 1.7% Weighted average $2.16$2.09 NOI w ithout lease termination fees (5) 2.9% 2.2% Square footage commencing (millions) 5.2 10.1 (1) Includes all consolidated operating properties and excludes development and renovation projects. (2) The same store pool excludes properties purchased and developments stabilized after December 31, 2004. See Reporting Definitions. (3) In addition to owned square feet as of June 30, 2006, the Company managed, but did not have an ownership interest in, approximately 0.2 million additional square feet of properties. One of the Company’s subsidiaries also manages approximately 1.1 million square feet of properties representing the IAT portfolio on behalf of the IAT Air Cargo Facilities Income Fund. The Company also has investments in 14.2 million square feet of operating properties through its investments in unconsolidated joint ventures. (4) Consists of second generation leases renewing or re-tenanting with current and prior lease terms greater than one year. (5) See Supplemental Financial Measures Disclosures for a discussion of why management believes NOI is a useful supplemental measure for our management and investors, of ways to use this measure when assessing financial performance, and the limitations of the measure as a measurement tool. (6) Based on monthly occupancy percentage.

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call CONSOLIDATED MARKET OPERATING STATISTICS (1) As of June 30, 2006 Total No. New San U.S. Hub and            Total Total/ Dallas/ Los Jersey/ Francisco U.S. Gateway Other Weighted Atlanta            Chicago Ft. Worth            Angeles (2) Miami            New York            Bay Area Seattle            On-Tarmac (3) Markets            Markets            Average Number of buildings 47 107 35 139 51 133 118 54 34 718 210 928 Rentable square feet 4,622,672 10,291,525 3,515,054 13,683,730 5,376,464 10,478,893 11,147,409 7,281,086 2,679,526 69,076,359 23,109,044 92,185,403 % of total rentable square feet 5.0% 11.2% 3.8% 14.8% 5.8% 11.4% 12.1% 7.9% 2.9% 74.9% 25.1% 100.0% Occupancy percentage 92.5% 92.4% 92.9% 98.7% 96.2% 96.8% 97.8% 97.0% 95.0% 96.1% 93.2% 95.4% Annualized base rent (000’s) $18,734 $49,865 $12,469 $86,091 $39,350 $73,270 $70,519 $33,441 $46,010 $429,749 $131,385 $561,134 % of total annualized base rent 3.3% 8.9% 2.2% 15.3% 7.0% 13.1% 12.6% 6.0% 8.2% 76.6% 23.4% 100.0% Number of leases 161 226 119 388 253 370 348 215 237 2,317 727 3,044 Annualized base rent per square foot $4.38 $5.24 $3.82 $6.37 $7.61 $7.22 $6.47 $4.73 $18.07 $6.47 $6.10 $6.38 Lease expirations as a % of ABR: (4) 2006 6.5% 7.5% 1.7% 6.6% 5.8% 5.7% 4.4% 6.7% 9.3% 6.2% 4.5% 5.8% 2007 16.5% 32.2% 15.6% 12.2% 24.1% 12.5% 15.2% 18.9% 11.0% 16.9% 14.1% 16.3% 2008 20.4% 10.5% 17.3% 22.6% 11.8% 12.9% 17.2% 13.6% 13.5% 15.8% 13.0% 15.1% Weighted average lease terms: Original 5.3 years 4.8 years 5.9 years 6.0 years 5.4 years 7.7 years 5.6 years 5.9 years 8.7 years 6.0 years 6.9 years 6.2 years            Remaining 2.7 years 2.6 years 3.8 years 3.1 years 3.3 years 4.7 years 2.6 years 3.0 years 4.9 years 3.3 years 4.0 years 3.4 years Tenant retention: Quarter 27.3% 69.2% 56.9% 63.6% 67.8% 81.1% 42.6% 75.2% 98.7% 69.2% 46.8% 66.7% Year-to-date 53.1% 65.6% 53.7% 63.9% 77.4% 76.1% 59.2% 75.7% 93.6% 68.9% 62.5% 67.5% Rent increases on renew als and rollovers: Quarter (12.4%) (1.7%) 1.0% 3.4% 5.4% 8.0% (19.7%) 3.6% 3.7% (0.6%) (3.1%) (0.9%) Same space SF leased 376,500 323,750 210,105 609,671 312,414 936,909 528,744 452,429 218,745 3,969,267 638,702 4,607,969 Year-to-date (11.8%) (7.1%) (4.5%) 5.1% 2.7% 0.7% (37.8%) 2.7% 3.0% (6.4%) (4.1%) (6.0%) Same space SF leased 413,165 1,283,298 499,148 1,197,109 791,192 1,446,467 926,529 709,758 269,874 7,536,540 1,799,779 9,336,319 Same store cash basis NOI % change: (5) Quarter (2.4%) 11.5% (2.3%) 4.3% 16.6% 2.9% (5.0%) (0.6%) 7.2% 3.1% 2.8% 3.0% Year-to-date (0.2%) 1.8% (3.2%) 4.0% 17.0% 0.1% (4.5%) 0.6% 5.0% 1.7% 1.4% 1.7% Sq. feet ow ned in same store pool (6) 3,611,621 8,479,166 3,515,054 12,159,067 4,678,052 8,891,819 10,587,804 6,119,008 2,562,281 60,603,872 18,539,462 79,143,334 AMB’s pro rata share of square feet (7) 2,391,855 8,698,568 2,552,038 11,011,531 4,400,671 5,542,072 8,562,343 3,830,913 2,488,202 49,478,193 19,727,140 69,205,333 (1) Includes all consolidated operating properties and excludes unconsolidated, development and renovation projects and recently completed development projects available for sale or contribution. (2) The Company also has a 19.9 acre parking lot with 2,720 parking spaces and 12 billboa rd signs in the Los Angeles market immediately adjacent to LAX. (3) Includes on-tarmac cargo facilities at 14 airports. (4) See Reporting Definitions. (5) See Supplemental Financial Measures Disclosures for a discussion of why management believes NOI is a useful supplemental measure for our management and investors, of ways to use this measure when assessing the Company’s financial performance, and the limitations of the measure as a measurement tool. (6) Same-store pool at June 30, 2006, excludes properties or developments stabilized after December 31, 2004. (7) Calculated as AMB’s pro rata share of square feet on consolidated and unconsolidated operating properties.

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call CONSOLIDATED PORTFOLIO OVERVIEW As of June 30, 2006 Number Rentable % of Total Annualized % of Total Annualized of Square Rentable Occupancy Base Rent Annualized Number Base Rent per Buildings Feet Square Feet Percentage (000’s) Base Rent of Leases Square Foot U.S. Hub Markets 718 69,076,359 74.9 % 96.1 % $429,749 76.6 % 2,317 $6.47 Other Markets U.S. Target Markets            Austin 8 1,558,757 1.7 95.4 8,658 1.5 31 5.82 Baltimore/Washington DC 38 2,973,724 3.2 95.2 19,280 3.4 135 6.81 Boston 39 5,207,943 5.7 89.7 30,659 5.5 101 6.56 Minneapolis 30 3,788,347 4.1 95.3 15,944 2.8 133 4.42 Subtotal/Weighted Average 115 13,528,771 14.7 % 93.1 % $74,541 13.2 % 400 $5.92 U.S. Non-Target Markets            Charlotte 21 1,312,713 1.4 88.7 5,319 0.9 67 4.57 Columbus 1 240,000 0.3 30.0 216 0.0 3 3.00 Houston 1 410,000 0.5 100.0 2,569 0.5 1 6.27 Memphis 17 1,883,845 2.0 87.4 8,707 1.6 47 5.29 New Orleans 5 410,839 0.4 98.4 2,007 0.4 49 4.97 Orlando 16 1,424,748 1.6 99.4 6,537 1.2 77 4.62 Subtotal/Weighted Average 61 5,682,145 6.2 % 90.0 % $25,355 4.6 % 244 $4.96 Non-U.S. Target Markets (1) (2) Amsterdam, Netherlands 5 476,972 0.5 100.0 4,976 0.9 5 10.43 Frankfurt, Germany 1 166,917 0.2 100.0 2,586 0.5 1 15.49 Hamburg, Germany 7 959,214 1.0 99.0 7,691 1.3 22 8.10 Lyon, France 1 262,491 0.3 100.0 1,568 0.3 2 5.97 Paris, France 19 1,880,785 2.0 96.4 14,131 2.5 51 7.79 Shanghai, China 1 151,749 0.2 100.0 537 0.1 2 3.54 Subtotal/Weighted Average 34 3,898,128 4.2 % 98.0 % $31,489 5.6 % 83 $8.24 Total Other Markets 210 23,109,044 25.1 93.2 131,385 23.4 727 6.10 Total/Weighted Average 928 92,185,403 100.0 % 95.4 % $561,134 100.0 % 3,044 $6.38 (1) Annualized base rent for leases denominated in foreign currencies is translated using the currency exchange rate at June 30, 2006. (2) Total market square footage in international markets increases to 8.3 million square feet and the percentage of total annualized base rent increases to 10.7% when industrial operating properties owned in unconsolidated co-investment joint ventures are included.

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call UNCONSOLIDATED OPERATING PORTFOLIO OVERVIEW As of June 30, 2006 Number Rentable Annualized % of Total Annualized of Square Occupancy Base Rent Annualized Base Rent per Buildings Feet Percentage (000’s) Base Rent Square Foot U.S. Hub Markets            Atlanta 7 407,199 66.5 % $1,477 2.0 % $5.46 Chicago 36 4,046,721 88.0 15,740 21.2 4.42 Los Angeles 11 3,387,452 97.8 14,188 19.1 4.28 No. New Jersey/New York City 1 212,335 100.0 828 1.1 3.90 Subtotal/Weighted Average 55 8,053,707 91.3 % $32,233 43.4 % $4.38 434,152 1,595 U.S. Target Markets 5 81.7 2.1 4.49 U.S. Non-Target Markets 9 1,232,799 90.2 3,937 5.3 3.54 Non-U.S. Target Markets (1) Guadalajara, Mexico 6 933,542 98.4 4,991 6.8 5.43 Mexico City, Mexico 5 1,541,203 94.2 8,756 11.8 6.03 Tokyo, Japan 8 1,960,480 84.6 22,755 30.6 13.72 Subtotal/Weighted Average 19 4,435,225 90.9 % $36,502 49.2 % $9.06 Total/Weighted Average 88 14,155,883 90.8 % $74,267 100.0 % $5.78 (1) Annualized base rent for leases denominated in foreign currencies is translated using the currency exchange rate at June 30, 2006.

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call LEASE EXPIRATIONS (1) As of June 30, 2006 (dollars in thousands) % of Square Annualized Annualized Feet Base Rent (2) Base Rent 2006 5,424,963 $37,189 5.8% 2007 16,637,191 100,124 15.5% 2008 15,775,144 94,241 14.6% 2009 14,298,429 90,304 14.0% 2010 11,833,283 90,199 14.0% 2011 10,816,913 78,537 12.2% 2012 5,214,747 43,240 6.7% 2013 2,198,869 19,336 3.0% 2014 4,921,588 38,552 6.0% 2015 4,558,282 27,733 4.2% 2016 and beyond 3,560,505 26,518 4.0% Total 95,239,914 $645,973 100.0% (1) Schedule includes spaces that expire on or after June 30, 2006. Schedule includes consolidated and unconsolidated operating properties. (2) Calculated as monthly rent at expiration multiplied by 12. Non-U.S. Dollar projects are converted to U.S. Dollars using the budgeted exchange rate at expiration.

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call TOP 25 CUSTOMERS (1) As of June 30, 2006 (dollars in thousands) Percentage of Percentage of Aggregate Aggregate Aggregate Rentable Leased Annualized Annualized Customer Name (2) Number of Leases Square Feet Square Feet (3) Base Rent (4) Base Rent (5) United States Government (6) (7) 48 1,405,290 1.3% $20,121 3.2% Deutsche Post World Net (DHL) (6) 45 2,022,471 1.9% 16,551 2.6% FedEx Corporation (6) 28 1,383,184 1.3% 14,341 2.3% National Distribution Centers 3 1,880,000 1.8% 6,964 1.1% Harmonic Inc. 4 285,480 0.3% 6,884 1.1% Sagaw a Express 3 342,021 0.3% 5,864 0.9% City and County of San Francisco 1 559,605 0.5% 5,714 0.9% Nippon Express 7 551,745 0.5% 5,663 0.9% La Poste 2 854,427 0.8% 5,654 0.9% Expeditors International 7 999,303 0.9% 4,804 0.8% BAX Global Inc/Schenker/Deutsche Bahn (6) 14 482,514 0.5% 4,651 0.7% Worldw ide Flight Services (6) 12 308,959 0.3% 4,484 0.7% Panalpina, Inc. 7 684,415 0.6% 4,393 0.7% FMI International 3 764,343 0.7% 4,240 0.7% International Paper Company 6 473,399 0.4% 3,990 0.6% UPS 15 559,994 0.5% 3,974 0.6% United Air Lines Inc (6) 6 191,085 0.2% 3,408 0.5% Forw ard Air Corporation 7 443,954 0.4% 3,318 0.5% Ahold NV 6 693,280 0.7% 2,970 0.5% Elmhult Limited Partnership 5 760,253 0.7% 2,686 0.4% Virco Manufacturing Corporation 1 559,000 0.5% 2,566 0.4% Aeroground Inc. (6) 6 201,367 0.2% 2,486 0.4% Integrated Airline Services (6) 5 200,575 0.2% 2,326 0.4% Applied Materials, Inc. 1 290,557 0.3% 2,277 0.4% Ryder Integrated Logistics 3 368,307 0.3% 2,242 0.4% Total 17,265,528 16.1% $142,571 22.6% (1) Schedule includes consolidated and unconsolidated operating properties. (2) Customer(s) may be a subsidiary of or an entity affiliated with the named customer. The Company also holds a lease at our Park One property adjacent to LAX with an ABR of $7,487, which is not included. (3) Computed as aggregate leased square feet divided by the aggregate leased square feet of operating properties. (4) See Reporting Definitions. (5) Computed as aggregate annualized base rent divided by the aggregate annualized base rent of operating properties. (6) Apron rental amounts (but not square footage) are included. (7) United States Government includes the United States Postal Service (USPS), United States Customs, United States Department of Agriculture (USDA) and various other U.S. governmental agencies.

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call HISTORICAL OPERATING AND LEASING STATISTICS Total Rentable Square Feet Occupancy Percentage (Annual) (Quarterly) 130,000,000 100.0% 120,000,000 97.5% 110,000,000 100,000,000 95.0% 90,000,000 80,000,000 92.5% 70,000,000 60,000,000 90.0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Tenant Retention Same Store NOI % Change (Annual) (Annual) 85.0% 10.0% 80.0% 8.0% 6. 0% 75.0% 4.0% 2. 0% 70.0% 0.0% -2.0% 65.0% -4.0% 60.0% -6.0% -8.0% 55.0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 19 94 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call ACQUISITIONS For the Quarter ended June 30, 2006 (dollars in thousands) AMB’s Number of Square Month of Acquisition Ownership Property Name Location Buildings Feet Acquisition Cost Percentage Property Acquisitions AMB Alliance Fund III 1. AMB Edgew ood Distribution St. Louis Park, MN 1 79,070 April $5,860 20% 2. AMB Cherry Crossdock Distribution Center Carteret, NJ 1 299,973 June 24,781 20% 3. AMB Macstar Distribution Center Kearny NJ 1 508,608 June 40,144 20% 4. AMB Skylark Distribution Center Rancho Dominguez, CA 1 119,400 June 11,495 20% Subtotal 4 1,007,051 82,280 AMB Partners II 5. AMB Chancellory Park Portfolio Wood Dale & Bensenville, IL 7 564,034 June 55,849 21% 6. AMB Territorial Industrial Bolingbrook, IL 1 52,403 June 4,753 21% Subtotal 8 616,437 60,602 AMB Property Corporation 7. AMB Le Grand Roissy Distribution Portfolio Paris, France 14 816,614 May 98,453 (1) 100% 8. AMB Paris Nord 3 Distribution Center Paris, France 1 42,108 June 5,451 (1) 100% Subtotal 15 858,722 103,904 Total Second Quarter Property Acquisitions 27 2,482,210 $246,786 (2) 54% Weighted Average Stabilized Cap Rate GAAP/Cash 6.7%/6.6% Total Year-to-Date Property Acquisitions 59 4,620,990 $400,142 (2) 53% Weighted Average Stabilized Cap Rate GAAP/Cash 6.9%/6.7% (1) Translated to U.S. Dollars using the exchange rate on the date of acquisition. (2) Represents the total expected investment, including closing costs and estimated acquisition capital of $5.0 million and $8.1 million, respectively for the three and six months ended June 30, 2006.

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call OPERATING PROPERTY DISPOSITIONS For the Quarter ended June 30, 2006 (dollars in thousands) AMB’s Number of Square Month of Disposition Ownership Property Name Location Buildings Feet Disposition Price Percentage 1. Amw iler Gw innett Industrial Atlanta, GA 6 435,526 June $24,483 100% 2. Artesia Industrial — Bldg 27 Compton, CA 1 71,150 May 6,688 100% 3. Scripps Sorento San Diego, CA 1 23,849 April 5,970 100% Total Second Quarter Dispositions 8 530,525$37,141 100% Weighted Average Stabilized Cash Cap Rate 6.6% Total Year-to-Date Dispositions 12 852,890$53,946 97% Weighted Average Stabilized Cash Cap Rate 6.7%

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call CONTRIBUTIONS TO PRIVATE CAPITAL JOINT VENTURES For the Quarter ended June 30, 2006 (dollars in thousands) AMB’s Retained Number of Square Contribution Ownership Property Contributions Location Buildings Feet Value (1) Percentage 1. AMB Ohta Distribution Center Tokyo, Japan 1 789,965$242,960 20% 2. Encino Distribution Center Mexico City, Mexico 1 580,669 38,400 20% Total Second Quarter Property Contributions 2 1,370,634 $281,360 20% Weighted Average Stabilized Cash Cap Rate 5.5% Total Year-to-Date Property Contributions 2 1,370,634 $281,360 20% Weighted Average Stabilized Cash Cap Rate 5.5% (1) Translated to U.S. Dollars using the exchange rate on the date of contribution.

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call NEW DEVELOPMENT & RENOVATION PROJECTS For the Quarter ended June 30, 2006 (dollars in thousands) Estimated Estimated AMB’s Estimated Square Feet Total Ownership Projects Location Developer Stabilization at Stabilization Investment (1) Percentage 1. AMB Fengxian Logistics Center — Bldgs 2,4,& 6 (3) Shanghai, China AMB Q4 06 1,024,067 $43,200 60% 2. AMB Steel Road Colton, CA AMB Q1 08 161,000 10,200 100% 3. AMB Riverfront Distribution Center - Bldg B Puyallup, WA AMB Q1 08 382,500 21,400 100% 4. AMB Funabashi Distribution Center 5 Tokyo, Japan AMB Blackpine Q2 08 469,254 59,800 100% Total Second Quarter New Projects 2,036,821 $134,600 87% Weighted Average Estimated Yield (2) 7.3% Total Year-to-Date New Projects 4,938,737 $353,400 94% Weighted Average Estimated Yield (2) 8.0% (1) Represents total estimated cost of renovation, expansion, or development, including initial acquisition costs, third party developer earnouts (if triggered by stabilization), prepaid ground leases and associated carry costs. The estimates are based on the Company’s current estimates and forecasts and are subject to change. Non-U.S. Dollar investments are translated to U.S. Dollars using the exchange rate at June 30, 2006. (2) Yields exclude value-added conversion projects and are calculated on an after-tax basis for international projects. See Reporting Definitions. (3) Represents a renovation project. See Reporting Definitions.

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call DEVELOPMENT & RENOVATION PROJECTS IN PROCESS As of June 30, 2006 (dollars in thousands) Estimated Estimated AMB’s            Estimated Square Feet Total Ownership Projects Location Developer Stabilization at Stabilization            Investment (1) Percentage 2006 Deliveries 1. AMB Amagasaki Distribution Center 1 Osaka, Japan AMB Blackpine Q3 973,029$97,700 100% 2. AMB Redlands — Parcel 1 Redlands, CA AMB Q3 699,350 25,000 100% 3. Monarch Commerce Center — Bldg 1 Miramar, FL AMB Q3 71,903 5,900 100% 4. Monarch Commerce Center — Bldg 3 Miramar, FL AMB Q3 37,447 2,900 100% 5. AMB BRU Air Cargo Center Brussels, Belgium AMB Q3 102,655 12,600 100% 6. AMB Horizon Creek — Bldg 200 Atlanta, GA Seefried Properties Q3 88,426 5,900 100% 7. Dulles Commerce Center - Bldg 150 Dulles, VA Seefried Properties Q3 72,600 6,600 20% 8. Northfield Bldg 700 Dallas, TX Seefried Properties Q3 108,640 6,300 20% 9. Singapore Airport Logistics Center — Bldg 2 (4) Changi, Airport, Singapore Boustead Projects PTE Q3 250,758 12,600 50% 10. Agave — Bldg 4 Mexico City, Mexico G. Accion Q3 217,514 13,900 98% 11. AMB Layline Distribution Center (3) Torrance, CA AMB Q3 298,000 30,200 100% 12. Frankfurt Logistics Center 556 — Phase II Frankfurt, Germany AMB Q3 105,723 14,500 100% 13. AMB Fokker Logistics Center 1 Amsterdam, Netherlands Delta Group Q4 234,050 29,300 100% 14. AMB Milton 401 Business Park — Bldg 1 Toronto, Canada AMB Q4 373,245 20,400 100% 15. Beacon Lakes Village — Phase 1 Bldg 2E Miami, FL Codina Q4 52,668 5,900 50% 16. Agave — Bldg 2 Mexico City, Mexico G. Accion Q4 259,473 15,000 98% 17. AMB Kashiw a DC-1 Kashiw a, Japan AMB Blackpine Q4 221,160 24,500 100% 18. AMB Mt. Prospect Distribution Des Plaines, IL AMB Q4 228,603 26,200 100% 19. Beacon Lakes — Bldg 6 Miami, FL Codina Q4 206,464 12,600 79% 20. Highw ay 17 — 55 Madison Street (3) Carlstadt, NJ AMB Q4 150,446 12,600 100% 21. AMB Fengxian Logistics Center — Bldgs 2,4,& 6 (3) Shanghai, China AMB Q4 1,024,067 43,200 60% Total 2006 Deliveries 5,776,221 $423,800 91% Leased or Under Contract For Sale/Funded-to-date 78% $316,600 (2) Weighted Average Estimated Yield (5) 8.5% Continued on next page (1) Represents total estimated cost of renovation, expansion or development, including initial acquisition costs, third party developer earnouts (if triggered by stabilization), prepaid ground leases and associated carry costs. The estimates are based on the Company’s current estimates and forecasts and are subject to change. Non-U.S. Dollar investments are translated to U.S. Dollars using the exchange rate at June 30, 2006. (2) AMB’s share of amounts funded to date for 2006, 2007 and 2008 deliveries was $299.2 million, $197.0 million and $121.5 million, respectively, for a total of $617.7 million. (3) Represents a renovation project. See Reporting Definitions. (4) Represents projects in unconsolidated joint ventures. (5) Yields exclude value-added conversion projects and are calculated on an after-tax basis for international projects. See Reporting Definitions.

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call DEVELOPMENT & RENOVATION PROJECTS IN PROCESS As of June 30, 2006 (dollars in thousands) (continued) Estimated Estimated AMB’s            Estimated Square Feet Total Ownership Projects Location Developer Stabilization            at Stabilization            Investment (1) Percentage 2007 Deliveries 22. Beacon Lakes — Bldg 10 Miami, FL Codina Q1 192,476 $12,300 79% 23. AMB Annagem Distribution Centre Toronto, Canada AMB Q1 194,330 13,700 100% 24. AMB Pearson Logistics Centre 1-Bldg 200 Toronto, Canada AMB Q1 205,518 15,700 100% 25. AMB Turnberry Distribution VI Roselle, IL AMB Q1 179,400 10,500 20% 26. AMB Pearson Logistics Centre 1-Bldg 100 Toronto, Canada AMB Q2 446,338 29,800 100% 27. AMB Fokker Logistics Center 2A Amsterdam, Netherlands Delta Group Q2 118,166 15,600 100% 28. AMB Horizon Creek — Bldg 300 Atlanta, GA Seefried Properties Q2 189,732 9,000 100% 29. Platinum Triangle Land (4) Anaheim, Ca AMB Q2 - - 33,200 100% 30. AMB Gonesse Distribution Center Gonesse, France GEPRIM Q2 590,077 54,400 100% 31. AMB Isle d’Abeau Logistics Park Bldg. C Lyon, France GEPRIM Q2 277,817 20,400 100% 32. AMB Douglassingel Distribution Center Amsterdam, Netherlands Austin Q3 148,714 21,800 100% 33. AMB Port of Hamburg 1 Hamburg, Germany BUSS Ports + Logistics Q3 413,441 35,700 94% 34. AMB Des Plaines Logistics Center Des Plaines, IL AMB Q3 125,080 12,400 100% 35. AMB Tres Rios Industrial Park — Bldg A Mexico City, Mexico G. Accion Q3 628,784 37,000 98% 36. AMB Tres Rios Industrial Park — Bldg B Mexico City, Mexico G. Accion Q3 315,156 18,500 98% 37. AMB DFW Logistics Center 1 Dallas, TX AMB Q4 113,640 5,400 100% 38. AMB Arrayanes — Bldg 2 Guadalajara, Mexico G. Accion Q4 473,720 19,800 90% 39. AMB Civic Center Corporate Park Torrance, CA AMB Q4 161,785 26,300 100% Total 2007 Deliveries 4,774,174 $391,500 96% Leased or Under Contract For Sale/Funded-to-date 6% $207,200 (2) Weighted Average Estimated Yield (3) 8.5% 2008 Deliveries 40. AMB Jiuting Distribution Center 2 Shanghai, China AMB Q1 185,548 $7,600 100% 41. AMB Steel Road Colton, CA AMB Q1 161,000 10,200 100% 42. AMB Riverfront Distribution Center — Bldg B Puyallup, WA AMB Q1 382,500 21,400 100% 43. AMB Valley Distribution Center Auburn , WA AMB Q1 766,245 42,700 100% 44. AMB Fokker Logistics Center 3 Amsterdam, Netherlands Delta Group Q1 324,725 41,900 50% 45. AMB Amagasaki Distribution Center 2 Osaka, Japan AMB Blackpine Q2 981,679 110,200 100% 46. AMB Barajas Logistics Park Madrid, Spain AMB Q2 427,133 35,000 80% 47. AMB Funabashi Distribution Center 5 Tokyo, Japan AMB Blackpine Q2 469,254 59,800 100% Total 2008 Deliveries 3,698,084 $328,800 91% Leased or Under Contract For Sale/Funded-to-date 0% $132,700 (2) Weighted Average Estimated Yield (3) 7.6% Total Scheduled Deliveries 14,248,479 $1,144,100 94% Leased or Under Contract For Sale/Funded-to-date 34% $656,500 (2) Weighted Average Estimated Yield (3) 8.2% (1) Represents total estimated cost of renovation, expansion or development, including initial acquisition costs, third party developer earnouts (if triggered by stabilization), prepaid ground leases and associated carry costs. The estimates are based on the Company’s current estimates and forecasts and are subject to change. Non-U.S. Dollar investments are translated to U.S. Dollars using the exchange rate at June 30, 2006. (2) AMB’s share of amounts funded to date for 2006, 2007 and 2008 deliveries was $299.2 million, $197.0 million and $121.5 million, respectively, for a total of $617.7 million. (3) Yields exclude value-added conversion projects and are calculated on an afte r-tax basis for international projects. See Reporting Definitions. (4) Represents a value-added conversion project. See Reporting Definitions.

 

SUPPLEMENTAL ANALYST PACKAGE            Second Quarter Earnings Conference Call STABILIZED DEVELOPMENT & RENOVATION PROJECTS For the Quarter ended June 30, 2006 (dollars in thousands) AMB’s Square Total Ownership Projects Placed in Operations Location Developer Feet Investment (1) Percentage 1. Dulles Commerce Center — Bldg 200 Dulles, VA Seefried Properties 97,232 $7,700 20% 2. Nash Logistics Center (5) El Segundo, CA IAC 75,000 13,600 50% 3. Spinnaker Logistics (4) Redondo Beach, CA IAC 278,816 31,200 39% Total Second Quarter Placed in Operations 451,048 $52,500 39% Leased/Weighted Average Yield (3) 71% 8.0% Total Year-to-Date Placed in Operations 760,096 $77,500 33% Leased/Weighted Average Yield (3) 78% 8.2% AMB’s Square Total Ownership Projects Placed in Available for Sale or Contribution (2) Location Developer Feet Investment (1) Percentage None n/a n/a n/a n/a n/a Total Second Quarter Available for Sale or Contribution — $ - - Leased/Weighted Average Yield (3) Total Year-to-Date Available for Sale or Contribution 1,801,435 $260,300 100% Leased/Weighted Average Yield (3) 90% 7.2% (1) Represents total estimated cost of renovation, expansion or development, including initial acquisition costs, third party developer earnouts (if triggered by stabilization), prepaid ground leases and associated carry costs. The estimates are based on the Company’s current estimates and forecasts and are subject to change. Non-U.S. Dollar investments are translated to U.S. Dollars using the exchange rate at June 30, 2006. (2) Represents projects where development activities have been completed and which the Company intends to sell or contribute within two years of construction completion. (3) Yields exclude value-added conversion projects and are calculated on an after-tax basis for international projects. See Reporting Definitions. (4) Represents a renovation project. See Reporting Definitions. (5) Represents projects in unconsolidated joint ventures. 21

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call DEVELOPMENT PROJECTS AVAILABLE FOR SALE OR CONTRIBUTION AND SOLD OR CONTRIBUTED PROJECTS As of June 30, 2006 (dollars in thousands) AMB’s Total Ownership Projects Available for Sale or Contribution (2) Location Square Feet Investment (1) Percentage 1. Narita Air Cargo 1 — Phase 1 Bldg A Tokyo, Japan 107,781$11,300 100% 2. Narita Air Cargo 1 — Phase 1 Bldg B Tokyo, Japan 560,197 59,400 100% 3. AMB Horizon Creek — Bldg 400 Atlanta, GA 204,256 9,600 100% 4. Highway 17 — 50 Broad Street (3) Carlstadt, NJ 133,200 9,100 100% Total Available for Sale or Contribution 1,005,434$89,400 100% AMB’s Ownership Square Gross Percentage Share of Projects Sold or Contributed Location Feet Price Sold or Contributed Net Cash Gain 1. AMB Ohta Distribution Center Tokyo, Japan 789,965$242,960 (4) 80% 2. Encino Distribution Center Mexico City, Mexico 580,669 38,400 (4) 78% 3. Monarch Commerce Center — Bldg 2 Miramar, FL 32,152 2,894 100% 4. Seattle Logistics Land Seattle, WA n/a 424 100% Total Second Quarter Sold or Contributed 1,402,786$284,678 80% $46,287 Total Year-to-Date Sold or Contributed 1,402,786$289,365 80% $46,961 (1) Represents total estimated cost of renovation, expansion, or dev elopment, including initial acquisition costs, third party developer earnouts (if triggered by stabilization), prepaid ground leases and associated carry costs. The estimates are based on the Company’s current estimates and forecasts and are subject to change. Non-U.S. Dollar investments are translated to U.S. Dollars using the exchange rate at June 30, 2006. (2) Represents projects where development activities have been completed and which the Company intends to sell or contribute within two years of construction completion. (3) Represents a renovation project. See Reporting Definitions. (4) Translated to U.S. Dollars using the exchange rate on the date of contribution. 22

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call LAND INVENTORY As of June 30, 2006 (dollars in thousands) North America Europe Asia Total Estimated Estimated Estimated Estimated Build Out Potential Build Out Potential Build Out Potential Build Out Potential Acres (square feet) Acres (square feet) Acres (square feet) Acres (square feet) Balance as of March 31, 2006 1,314 21,037,989 70 1,474,170 49 2,537,653 1,433 25,049,812 Acquisitions 115 2,030,838 — - - 14 1,137,218 129 3,168,056 Sales (4) (34,848) - - — — — (4) (34,848) Development Starts (28) (543,500) — — (6) (469,254) (34) (1,012,754) Balance as of June 30, 2006 1,397 22,490,479 70 1,474,170 57 3,205,617 1,524 27,170,266 Total investment $293,200 (1) $33,300 (1) $150,000 (1) $476,500 (1) $1,565,000 (2) (1) Includes initial acquisition cost and associated carry costs. (2) Represents total estimated costs of development including initial land acquisition cost and associated carry costs assuming full build out of land inventory.

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call CAPITALIZATION SUMMARY As of June 30, 2006 (dollars in thousands, except share price) AMB Joint Unsecured Secured Venture Senior Credit Other Total Market Equity Year Debt (1) Debt (1) Debt Facilities (2) Debt Debt Security Shares Price Value 2006 $45,459 $66,766 $150,000 $ — $15,534 $277,759 Common Stock 88,099,463 $50.55 $4,453,428 2007 13,385 58,289 75,000 - - 752 147,426 LP Units 4,385,207 50.55 221,672 2008 42,069 179,202 175,000 - - 810 397,081 Total 92,484,670 $4,675,100 2009 4,044 122,290 100,000 — 873 227,207 2010 69,865 118,753 250,000 909,952 941 1,349,511 Preferred Stock and Units (4) 2011 21,681 357,946 75,000 - - 1,014 455,641 Dividend Liquidation 2012 98,749 172,120 — — 1,093 271,962 Security Rate Preference 2013 26,183 222,567 — - - 65,920 (6) 314,670 2014 16,262 5,460 — — 616 22,338 Series D preferred units (7) 7.75% $79,767 2015 2,106 118,403 112,491 - - 664 233,664 Series F preferred units (7) 7.95% 10,057 Thereafter 20,514 32,697 125,000 - - — 178,211 Series I preferred units (7) 8.00% 25,500 Sub-total 360,317 1,454,493 1,062,491 909,952 88,217 3,875,470 Series J preferred units 7.95% 40,000 Unamortized premiums/(discount) 2,108 7,550 (11,242) - - — (1,584) Series K preferred units 7.95% 40,000 Total consolidated debt 362,425 1,462,043 1,051,249 909,952 88,217 3,873,886 Series L preferred stock 6.50% 50,000 Series M preferred stock 6.75% 57,500 AMB’s share of unconsolidated Series O preferred stock 7.00% 75,000 JV Debt (3) — 167,321 — — — 167,321 Weighted Average/Total 7.35% $377,824 Total debt 362,425 1,629,364 1,051,249 909,952 88,217 4,041,207 JV partners’ share of Capitalization Ratios            consolidated JV debt — (1,005,456) - - — (52,000) (1,057,456) Total debt-to-total market capitalization (5) 44.4% AMB’s share of total debt (6) $362,425 $623,908 $1,051,249 $909,952 $36,217 $2,983,751 AMB’s share of total debt-to-AMB’s share of            Weighted average interest rate 4.6% 6.3% 6.2% 3.2% 7.3% 5.4% total market capitalization (5) 37.1% Total debt plus preferred-to-total market capitalization (5) 48.6% Weighted average AMB’s share of total debt plus preferred-to- maturity (in years) 5.3 5.3 4.4 3.8 5.7 4.7 AMB’s share of total market capitalization (5) 41.8% (1) AMB secured debt includes debt related to international assets in the amount of $265.8 million. Of this, $85.8 million is associated with assets located in Asia and the remaining$180.0 million is related to assets located in Europe. (2) Represents three credit facilities with total capacity of approx imately $1,193 million. Includes $394.0 million, $286.9 million and $93.8 million in Euro, Yen and Canadian dollar based borrowings, respectively, translated to U.S. Dollars using the foreign exchange rates at June 30, 2006. (3) The weighted average interest and maturity for the unconsolidated JV debt were 4.5% and 4.8 years, respectively. (4) Exchangeable under certain circumstances by the unitholder and redeemable at the option of the Company after a specified non-call period, generally five years from issuance. (5) See Reporting Definitions for the Company’s definitions of “total market capitalization,” “AMB’s share of total market capitalization,” “market equity,” and “preferred.” See Supplemental Financial Measures Disclosures for a discussion of why management believes the Company’s share of total debt is a useful supplemental measure for its management and inv estors, of ways to use this measure when assessing the Company’s financial performance, and the limitations of the measure as a measurement tool. (6) Maturity includes $65 million balance outstanding on a $65 million non-recourse credit facility obtained by AMB Partners II. (7) Callable as of June 30, 2006. 24

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call CO-INVESTMENT CONSOLIDATED JOINT VENTURES As of June 30, 2006 (dollars in thousands) AMB’s Gross JV Partners’ Ownership Number of Square Book Property Other Share Joint Ventures Percentage Buildings Feet (1) Value (2) Debt Debt of Debt (3) Co-Investment Operating Joint Ventures: AMB Erie (4) 50% 15 1,921,432$100,276$40,351$ -$20,175 AMB Partners II (6) 20% 116 9,641,184 651,287 284,851 65,000 280,311 AMB-SGP (7) 50% 74 8,287,007 439,962 237,589 - 118,496 AMB Institutional Alliance Fund II (5) 20% 70 7,966,444 506,024 248,239 — 196,036 AMB-AMS (8) 39% 33 2,172,137 148,501 62,286 — 38,202 AMB Institutional Alliance Fund III (9) 20% 86 9,565,571 919,385 479,174 — 379,602 Total Co-Investment Operating Joint Ventures 27% 394 39,553,775 2,765,435 1,352,490 65,000 1,032,822 Co-Investment Development Joint Ventures: AMB Partners II (6) 20% 1 72,600 5,747 — — - - AMB Institutional Alliance Fund II (5) 20% 1 108,640 9,566 — — — AMB Institutional Alliance Fund III (9) 20% 1 179,400 8,547 - - — — Total Co-Investment Development Joint Ventures 20% 3 360,640 23,860 - - — — Total Co-Investment Consolidated Joint Ventures 27% 397 39,914,415 $2,789,295$1,352,490$65,000$1,032,822 Partners’ Share of Co-investment Joint Ventures Cash NOI (10) Net Income FFO Cash NOI (10) Net Income FFO For the quarter ended June 30, 2006 $48,932$10,861$28,317$36,314$5,388$20,647 For the six months ended June 30, 2006 $94,505$21,949$55,909$70,071$11,211$40,769 (1) For development properties, this represents estimated square feet at completion of development for committed phases of development and renovation projects. (2) Represents the book value of the property (before accumulated depreciation) owned by the joint venture entity and excludes net other assets. Development book values include uncommitted land. (3) JV partners’ share of debt is defined as total debt less the Company’s share of total debt. See Supplemental Financial Measures Disclosures for a discussion of why management believes the Company’s share of total debt is a useful supplemental measure for its management and investors, of ways to use this measure when assessing the Company’s financial performance, and the limitations of the measure as a measurement tool. (4) AMB Erie is a co-investment partnership formed in 1998 with the Erie Insurance Group. (5) AMB Institutional Alliance Fund II is a co-investment partnership with institutional investors, which invest through a private REIT. (6) AMB Partners II is a co-investment partnership formed in 2001 with the City and County of San Francisco Employees’ Retirement System. (7) AMB-SGP is a co-investment partnership formed in 2001 with GIC Real Estate Pte Ltd, the real estate investment subsidiary of the Government of Singapore Investment Corporation. (8) AMB-AMS is a co-investment partnership with three Dutch pension funds advised by Mn Services NV. (9) AMB Institutional Alliance Fund III is an open-ended co-investment partnership formed in 2004 with institutional investors, which invest through a private REIT. (10) See Supplemental Financial Measures Disclosures for a discussion of why management believes NOI is a useful supplemental measure for

our management and investors, of ways to use this measure when assessing financial performance, and the limitations of the measure as a measurement tool.

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call OTHER CONSOLIDATED JOINT VENTURES As of June 30, 2006 (dollars in thousands) AMB’s Gross JV Partners’ Ownership Number of Square Book Property Share Properties Market Percentage Buildings Feet Value (1) Debt of Debt (2) Other Industrial Operating Joint Ventures Various 92% 30 2,668,850$238,071 $61,159$4,457 Other Industrial Development Joint Ventures Various 75% 13 2,506,389 168,662 48,394 20,177 Total Other Industrial Consolidated Joint Ventures 86% 43 5,175,239$406,733 $109,553$24,634 (1) Represents the book value of the property (before accumulated depreciation) owned by the joint venture entity and excludes net other assets. Development book values include uncommitted land. (2) JV Partners’ Share of Debt is defined as total debt less the Company’s share of total debt. See Supplemental Financial Measures Disclosures for a discussion of why management believes the Company’s share of total debt is a useful supplemental measure for its management and investors, of ways to use this measure when assessing the Company’s financial performance, and the limitations of the measure as a measurement tool. 26

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call UNCONSOLIDATED JOINT VENTURES, MORTGAGE INVESTMENTS AND OTHER INVESTMENTS As of June 30, 2006 (dollars in thousands) AMB’s AMB’s AMB’s Square Net Equity Ownership Share Unconsolidated Joint Ventures Market Feet Investment Percentage of Debt (1) Co-Investment Joint Ventures 1. AMB-SGP Mexico (2) Various, Mexico 2,474,745 $18,863 20% $16,640 2. AMB Japan Fund I (3) Various, Japan 1,960,480 18,311 20% 44,486 4,435,225$37,174 20% $61,126 Total Co-Investment Joint Ventures Other Industrial Operating Joint Ventures 9,720,658$45,949 52% $97,750 Other Industrial Development Joint Ventures (4) 250,758 1,439 50% 2,871 Total Unconsolidated Joint Ventures 14,406,641$84,562 38% $161,747 Mortgage Mortgage and Loan Investments Market Maturity Receivable (6) Rate 1. Pier 1 (5) SF Bay Area May 2026 $12,755 13.0% 2. G.Accion Various March 2010 6,061 10.0%$18,816 AMB’s AMB’s Net Ownership Share Other Investments Market Property Type Investment Percentage of Debt (1) 1. Park One Los Angeles Parking Lot $75,498 100% $ — 2. G.Accion (7) Various Various 38,545 39% 5,574 3. IAT Air Cargo Facilities Income Fund (8) Canada Industrial 2,565 5% - - $116,608 $5,574 (1) See Supplemental Financial Measures Disclosures for a discussion of why management believes the Company’s share of total debt is a useful supplemental measure for its management and investors, of ways to use this measure when assessing the Company’s financial performance, and the limitations of the measure as a measurement tool. (2) AMB-SGP Mexico is a co-investment partnership formed in 2004 with GIC Real Estate Pte Ltd, the real estate investment subsidiary of the Government of Singapore Investment Corporation. Includes $8.3 million of shareholder loans outstanding at June 30, 2006 between the Company and the co-investment partnership. (3) AMB Japan Fund I is a co-investment partnership formed in 2005 with institutional investors. (4) Square feet for development joint ventures represents estimated square feet at completion of development project. (5) AMB has a 0.1% unconsolidated equity interest (with a 33% economic interest) in this property and also has an option to purchase the remaining equity interest beginning January 1, 2007 and expiring December 31, 2009. (6) The Company holds inter-company loans that it eliminates in consolidations. (7) The Company has a 39% unconsolidated equity interest in G.Accion, a Mexican real estate company. G.Accion provides management and development services for industrial, retail, residential and office properties in Mexico. (8) One of the Company’s subsidiaries has an approximate 5% equity interest in IAT Air Cargo Facilities Income Fund, a public Canadian real estate income trust.

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call REPORTING DEFINITIONS Acquisition/non -recurring capex includes immediate building improvements that were taken into consideration when underwriting the purchase of a building or which are incurred to bring a building up to “operating standard” or to stabilization. Also includes incremental building improv ements and leasing costs that are incurred in an effort to substantially increase the revenue potential of an existing building. AMB’s share of total debt-to-AMB’s share of total book capitalization is calculated using the following definitions: AMB’s share of total debt is the pro rata portion of the total debt based on the Company ‘s percentage of equity interest in each of the consolidated or unconsolidated ventures holding the debt. AMB’s share of total book capitalization is defined as the Company ‘s share of total debt plus minority interests to preferred unitholders and limited partnership unitholders plus stockholders’ equity. AMB’s share of total debt-to-AMB’s share of total market capitalization is calculated using the following definitions: AMB’s share of total debt is the pro rata portion of the total debt based on the Company ‘s percentage of equity interest in each of the consolidated or unconsolidated ventures holding the debt. The Company ‘s definition of “total market capitalization” is total debt plus preferred equity liquidation preferences plus market equity. The Company ‘s definition of “AMB’s share of total market capitalization” is the Company ‘s share of total debt plus preferred equity liquidation preferences plus market equity. The Company ‘s definition of “market equity “ is the total number of outstanding shares of the Company ‘s common stock and common limited partnership units multiplied by the closing price per share of its common stock as of June 30, 2006. AMB’s share of total market capitalization is defined by the Company as the Company ‘s share of total debt plus preferred equity liquidation preferences plus market equity. Annualized base rent (ABR) is calculated as monthly base rent (cash basis) per the lease, as of a certain date, multiplied by 12. If free rent is granted, then the first positive rent value is used. Completion/Stabilization is generally defined as properties that are 90% leased or properties for which we have held a certificate of occupancy or building has been substantially complete for at least 12 months. Estimated yields on development and renovation projects are calculated from estimated annual NOI following occupancy stabilization divided by the estimated total investment, including Development Alliance Partner® earnouts (if triggered by stabilization), prepaid ground leases and associated carrying costs. Fixed charge coverage is adjusted EBITDA divided by total interest expense (including capitalized interest) plus preferred dividends and distributions. Interest coverage is adjusted EBITDA divided by total GAAP interest expense. Market equity is defined by the Company as the total number of outstanding shares of the Company ‘s common stock and common limited partnership units multiplied by the closing price per share of its common stock as of June 30, 2006. Occupancy percentage represents the percentage of total rentable square feet owned, which is leased, including month-to-month leases, as of the date reported. Space is considered leas ed when the tenant has either taken physical or economic occupancy. Percentage pre-leased represents the percentage of signed leases only. Preferred is defined by the Company, with respect to its capitalization ratios, as preferred equity liquidation preferences. Renovation projects represents projects where the acquired buildings are less than 75% leased and require significant capital expend itures (generally more than 10% — 25% of acquisition cost) to bring the buildings up to operating standards and stabilization (generally 90% occupancy). Recurring capital expenditures represents non-incremental building improvements and leasing costs required to maintain current revenues. Recurring capital expenditures do not include acquisition capital that was taken into consideration when underwriting the purchase of a building or which are incurred to bring a building up to “operating standard. “ Rent increases on renewals and rollovers are calculated as the difference, weighted by square feet, of the net ABR due the first month after a term commencement date and the net ABR due the last month prior to the termination date of the former tenant ‘s term. If free rent is granted, then the first positive full rent value is used as a point of comparison. The rental amounts exclude base stop amounts, holdover rent and premium rent charges. If either the previous or current lease terms are under 12 months, then they are excluded from this calculation. If the lease is the first in the unit (first generation) and there is no prior lease for comparison, then it is excluded from this calculation. Same store NOI growth is the change in the NOI (excluding straight -line rents) of the same store properties from the prior year reporting period to the current y ear reporting period. Same store properties include all properties that were owned as of the end of both the current and prior year reporting periods and excludes development properties for both the current and prior reporting periods. The same store pool is set annually and excludes properties purchased and developments stabilized after December 31, 2004. Same store pool includes Park One parking lot in Los Angeles, California. Second generation TIs and LCs per square foot are total tenant improvements, lease commissions and other leasing costs incurred during leasing of second generation space divided by the total square feet leased. Costs incurred prior to leasing available space are not included until such space is leased. Second generation space excludes newly developed square footage or square footage vacant at acquisition. Square feet owned represents 100% of the square footage of properties either owned directly by the Company or which the Company has a controlling interest in (e.g. consolidated joint ventures) and excludes square footage of development properties prior to completion. Stabilized GAAP cap rates rates are calculated as NOI, including straight -line rents, stabilized to market occupancy (generally 95%) divided by total acquisition cost. The total acquisition cost basis includes the initial purchase price, the effects of marking assumed debt to market, all due diligence and closing costs, SFAS 141 adjustments, planned immediate capital expenditures, leasing costs necessary to achieve stabilization and, if applicable, any estimated costs required to buy -out AMB’s joint venture partners. Tenant retention is the square footage of all leases renewed by existing tenants divided by the square footage of all expiring and renewed leases during the reporting period, excluding the square footage of tenants that default or buy -out prior to expiration of their lease, short-term tenants and the square footage of month-to-month leases. Total market capitalization is defined by the Company as total debt plus preferred equity liquidation preferences plus market equity. Value-added conversion project represents the repurposing of land or a building site for more valuable uses and may include such activities as rezoning, redesigning, reconstructing and retenanting. 28

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call SUPPLEMENTAL FINANCIAL MEASURES DISCLOSURES Adjusted EBITDA. The Company uses adjusted earnings before interest, tax, depreciation and amortization, or adjusted EBITDA, to measure both its operating performance and liquidity. The Company considers adjusted EBITDA to provide investors relevant and useful information because it permits fixed income investors to view income from its operations on an unleveraged basis before the effects of non-cash depreciation and amortization expense. By excluding interest expense, adjusted EBITDA allows investors to measure the Company’s operating performance independent of its capital structure and indebtedness and, therefore, allows for a more meaningful comparison of its operating performance between quarters as well as annual periods and to compare its operating performance to that of other companies, both in the real estate industry and in other industries. The Company considers adjusted EBITDA to be a useful supplemental measure for reviewing its comparative performance with other companies because, by excluding non-cash depreciation expense, adjusted EBITDA can help the investing public compare the performance of a real estate company to that of companies in other industries. As a liquidity measure, the Company believes that adjusted EBITDA helps fixed income and equity investors to analyze its ability to meet debt service obligations and to make quarterly preferred share and unit distributions. Management uses adjusted EBITDA in the same manner as the Company expects investors to when measuring the Company’s operating performance and liquidity; specifically when assessing its operating performance, and comparing that performance to other companies, both in the real estate industry and in other industries, and when evaluating its ability to meet debt service obligations and to make quarterly preferred share and unit distributions. The Company believes investors should consider adjusted EBITDA, in conjunction with net income (the primary measure of the Company’s performance) and the other required GAAP measures of its performance and liquidity, to improve their understanding of the Company’s operating results and liquidity, and to make more meaningful comparisons of the performance of its assets between periods and as against other companies. By excluding interest, taxes, depreciation and amortization when assessing the Company’s financial performance, an investor is assessing the earnings generated by the Company’s operations, but not taking into account the eliminated expenses incurred in connection with such operations. As a result, adjusted EBITDA has limitations as an analytical tool and should be used in conjunction with the Company’s required GAAP presentations. Adjusted EBITDA does not reflect the Company’s historical cash expenditures or future cash requirements for working capital, capital expenditures or contractual commitments. Adjusted EBITDA also does not reflect the cash required to make interest and principal payments on the Company’s outstanding debt. While adjusted EBITDA is a relevant and widely used measure of operating performance and liquidity, it does not represent net income or cash flow from operations as defined by GAAP and it should not be considered as an alternative to those indicators in evaluating operating performance or liquidity. Further, the Company’s computation of adjusted EBITDA may not be comparable to EBITDA reported by other companies. Company’s share of total debt. The Company’s share of total debt is the pro rata portion of the total debt based on its percentage of equity interest in each of the consolidated or unconsolidated ventures holding the debt. The Company believes that its share of total debt is a meaningful supplemental measure, which enables both management and investors to analyze its leverage and to compare its leverage to that of other companies. In addition, it allows for a more meaningful comparison of its debt to that of other companies that do not consolidate their joint ventures. The Company’s share of total debt is not intended to reflect its actual liability should there be a default under any or all of such loans or a liquidation of the joint ventures. Interest coverage. The Company uses interest coverage to measure its liquidity. The Company considers interest coverage to provide investors relevant and useful information because it permits fixed income investors to measure the Company’s ability to meet its interest payments on outstanding debt. The Company’s computation of interest coverage may not be comparable to interest coverage reported by other companies. Fixed charge coverage. The Company uses fixed charge coverage to measure its liquidity. The Company considers fixed charge coverage to provide investors relevant and useful information because it permits fixed income investors to measure the Company’s ability to meet its interest payments on outstanding debt, make distributions to its preferred unitholders and pay dividends to its preferred shareholders. The Company’s computation of fixed charge coverage may not be comparable to fixed charge coverage reported by other companies. Funds From Operations (“FFO”). The Company believes that net income, as defined by GAAP, is the most appropriate earnings measure. However, the Company considers funds from operations, or FFO, as defined by NAREIT, to be a useful supplemental measure of its operating performance. FFO is defined as net income, calculated in accordance with GAAP, less gains (or losses) from dispositions of real estate held for investment purposes and real estate-related depreciation, and adjustments to derive the Company’s pro rata share of FFO of consolidated and unconsolidated joint ventures. Further, the Company does not adjust FFO to eliminate the effects of non-recurring charges. The Company believes that FFO, as defined by NAREIT, is a meaningful supplemental measure of its operating performance because historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time, as reflected through depreciation and amortization expenses. However, since real estate values have historically risen or fallen with market and other conditions, many industry investors and analysts have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient. Thus, NAREIT created FFO as a supplemental measure of operating performance for real estate investment trusts that excludes historical cost depreciation and amortization, among other items, from net income, as defined by GAAP. The Company believes that the use of FFO, combined with the required GAAP presentations, has been beneficial in improving the understanding of operating results of real estate investment trusts among the investing public and making comparisons of operating results among such companies more meaningful. The Company considers FFO to be a useful measure for reviewing comparative operating and financial performance because, by excluding gains or losses related to sales of previously depreciated operating real estate assets and real estate depreciation and amortization, FFO can help the investing public compare the operating performance of a company’s real estate between periods or as compared to other companies. While FFO is a relevant and widely used measure of operating performance of real estate investment trusts, it does not represent cash flow from operations or net income as defined by GAAP and should not be considered as an alternative to those measures in evaluating the Company’s liquidity or operating performance. FFO also does not consider the costs associated with capital expenditures related to the Company’s real estate assets nor is FFO necessarily indicative of cash available to fund the Company’s future cash requirements. Further, the Company’s computation of FFO may not be comparable to FFO reported by other real estate investment trusts that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than the Company does. Net Operating Income (“NOI”). Net operating income is defined as rental revenue, including reimbursements, less property operating expenses, which excludes depreciation, amortization, general and administrative expenses and interest expense. The Company considers NOI to be an appropriate supplemental performance measure because NOI reflects the operating performance of the real estate portfolio. However, NOI should not be viewed as an alternative measure of financial performance since it does not reflect general and administrative expenses, interest expense, depreciation and amortization costs, capital expenditures and leasing costs, or trends in development and construction activities that could materially impact results from operations. Further, NOI may not be comparable to that of other real estate investment trusts, as they may use different methodologies for calculating NOI. Same Store Net Operating Income (“SS NOI”). The Company believes that net income, as defined by GAAP, is the most appropriate earnings measure. However, the Company considers SS NOI to be a useful supplemental measure of our operating performance. For properties that are considered part of the same store pool, see Reporting Definitions. In deriving SS NOI, the Company defines NOI as rental revenues (as calculated in accordance with GAAP), including reimbursements, less straight-line rents, property operating expenses and real estate taxes. The Company excludes straight-line rents in calculating SS NOI because the Company believes it provides a better measure of actual cash basis rental growth for a year-over-year comparison. In addition, the Company believes that SS NOI helps the investing public compare the operating performance of a company’s real estate as compared to other companies. While SS NOI is a relevant and widely used measure of operating performance of real estate investment trusts, it does not represent cash flow from operations or net income as defined by GAAP and should not be considered as an alternative to those measures in evaluating our liquidity or operating performance. SS NOI also does not reflect general and administrative expenses, interest expenses, depreciation and amortization costs, capital expenditures and leasing costs, or trends in development and construction activities that could materially impact our results from operations. Further, the Company’s computation of SS NOI may not be comparable to that of other real estate companies, as they may use different methodologies for calculating SS NOI. 29

 

SUPPLEMENTAL ANALYST PACKAGE Second Quarter Earnings Conference Call AMB PROPERTY CORPORATION CONTACTS            Contact Name Title Phone E-mail Address Hamid R. Moghadam Chairman & Chief Executive Officer (415) 733-9401 hmoghadam@amb.com W. Blake Baird President and Director (415) 733-9407 bbaird@amb.com Michael A. Coke EVP, Chief Financial Officer (415) 733-9405 mcoke@amb.com Guy F. Jaquier EVP, President, Europe and Asia (415) 733-9406 gjaquier@amb.com Eugene F. Reilly EVP, President, North America (617) 619-9333 ereilly@amb.com John T. Roberts, Jr. EVP, President, AMB Capital Partners (415) 733-9408 jroberts@amb.com Margan S. Mitchell VP, Corporate Communications (415) 733-9477 mmitchell@amb.com            Corporate Headquarters Other Principal Office Locations Investor Relations AMB Property Corporation Amsterdam Shanghai Tel: (415) 394-9000 Pier 1, Bay 1 Boston Singapore Fax: (415) 394-9001 San Francisco, CA 94111 Chicago Tokyo E-mail: ir@amb.com Tel: (415) 394-9000 Los Angeles Vancouver Website: www.amb.com Fax: (415) 394-9001 New Jersey

 

Some of the information included in this supplemental analyst package and the conference call to be held in connection therewith contains forward- looking statements, such as those related to development and renovation projects (including stabilization dates, square feet at stabilization or completion, and total investment amounts), lease expirations and future business plans (such as property divestitures and financings), which are made pursuant to the safe-harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results to differ materially from those in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future events. The events or circumstances reflected in forward-looking statements might not occur. You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “pro forma,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements are necessarily dependent on assumptions, data or methods that may be incorrect or imprecise and we may not be able to realize them. We caution you not to place undue reliance on forward-looking statements, which reflect our analysis only and speak only as of the date of this report or the dates indicated in the statements. We assume no obligation to update or supplement forward-looking statements. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: defaults on or non-renewal of leases by tenants, increased interest rates and operating costs, our failure to obtain necessary outside financing, re-financing risks, difficulties in identifying properties to acquire and in effecting acquisitions, our failure to successfully integrate acquired properties and operations, our failure to divest properties we have contracted to sell or to timely reinvest proceeds from any divestitures, risks and uncertainties affecting property development and construction (including construction delays, cost overruns, our inability to obtain necessary permits and public opposition to these activities), our failure to qualify and maintain our status as a real estate investment trust, environmental uncertainties, risks related to natural disasters, financial market fluctuations, changes in general economic conditions or in the real estate sector, changes in real estate and zoning laws, a downturn in the U.S., California or global economy, risks related to doing business internationally, losses in excess of our insurance coverage, unknown liabilities acquired in connection with acquired properties or otherwise and increases in real property tax rates. Our success also depends upon economic trends generally, including interest rates, income tax laws, governmental regulation, legislation, population changes and certain other matters discussed under the heading “Risk Factors” and elsewhere in our annual report on Form 10-K for the year ended December 31, 2005.