EXHIBIT 12.1
AMB PROPERTY CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(IN THOUSANDS, EXCEPT RATIOS)
FOR THE YEARS ENDED DECEMBER 31,
-------------------------------------------------------------------------------
1997 1997 1997
1993 1994 1995 1996 HISTORICAL(1) AS ADJUSTED(2) PRO FORMA(3)
---- ------ ------ ------ ------------- -------------- ------------
Earnings:
Income (loss) from operations
before minority interests..... $798 $2,925 $3,296 $7,140 $18,885 $103,903 $106,558
Interest expense................ -- -- 4 -- 3,528 45,429 63,184
Amortization of capitalized
interest...................... -- -- -- -- 8 56 77
---- ------ ------ ------ ------- -------- --------
Total earnings........... $798 $2,925 $3,300 $7,140 $22,421 $149,388 $169,819
==== ====== ====== ====== ======= ======== ========
Fixed charges:
Interest expense(4)............. $ -- $ -- $ 4 $ -- $ 3,528 $ 45,429 $ 63,184
Capitalized interest(5)......... -- -- -- -- 448 2,979 4,110
---- ------ ------ ------ ------- -------- --------
Total fixed charges...... $ -- $ -- $ 4 $ -- $ 3,976 $ 48,408 $ 67,294
==== ====== ====== ====== ======= ======== ========
Ratio of earnings to fixed
charges(6)...................... N/A N/A 825x N/A 5.6x 3.1x 2.5x
==== ====== ====== ====== ======= ======== ========
- ---------------
(1) Historical ratio of earnings to fixed charges includes the results of the
Predecessor for the period from January 1, 1997 through November 25, 1997,
and the results of the Company subsequent to November 25, 1997, the date of
acquisition by the Company.
(2) As adjusted ratio of earnings to fixed charges has been prepared as if the
Formation Transactions, the IPO and certain 1997 property acquisitions and
dispositions had occurred on January 1, 1997.
(3) Pro forma ratio of earnings to fixed charges has been prepared as if the
1998 property acquisitions and the Offering had occurred on January 1, 1997.
(4) Includes amortization of debt premiums and deferred financing fees.
(5) Historical capitalized interest represents construction interest incurred
subsequent to November 25, 1997, the date of acquisition by the Company.
(6) The ratio of earnings to fixed charges is not applicable for periods during
which the Predecessor incurred no interest expense.
2