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property for sale in umbria italy
News and Information Article
SAN FRANCISCO, April 11 /-FirstCall/ -- AMB Property
Corporation (NYSE: AMB), a leading global developer and owner of industrial
real estate, today reported results for the first quarter of 2006.
For the quarter ended March 31, 2006, funds from operations per fully
diluted share and unit ("FFOPS") was $0.52, as compared to $0.54 for the
first quarter of 2005. The current quarter results are net of a $0.01 per
share charge resulting from the repurchase of preferred units and include
$0.01 per share of development profits and $0.06 of net lease termination
fees, as compared to $0.09 per share of development profits and $0.01 of
net lease termination fees in the first quarter of 2005. Quarterly FFOPS
exceeded the companys mid-point of guidance by $0.04 per share primarily
due to better than expected private capital income and lease termination
fees, and a decision to delay certain refinancing transactions.
Net income available to common stockholders per share ("EPS") for the
first quarter of 2006 was $0.26, as compared to $0.52 for the first quarter
of 2005. EPS in the current quarter includes $0.08 per share of disposition
gains, as compared to $0.34 per share in the first quarter of 2005.
Operating Results
AMBs industrial operating portfolio occupancy was 94.7% at March 31,
2006, down 110 basis points from December 31, 2005, and 40 basis points
from March 31, 2005. Cash-basis same store net operating income in the
first quarter of 2006 increased 0.3% over the same period in 2005 including
the effects of lease termination fees, and increased 1.5% excluding the
effects of lease termination fees for both periods. The increase was due,
in part, to a higher average occupancy rate in the same store portfolio.
Rent on lease renewals and rollovers in AMBs operating portfolio declined
11.5% in the first quarter of 2006, as compared to a 4.3% decline in the
prior quarter and an 8.6% decline in the first quarter of 2005. The decline
during the quarter was primarily the result of lower rents on new leases in
the San Francisco Bay Area, AMBs third largest market, which were down
55.4%. Rents on new leases in the companys other markets were down 3.3%.
Hamid R. Moghadam, AMB chairman and CEO, said, "Weve entered 2006 on a
solid footing with first quarter financial results above our expectations
and on track with our full-year projections. Business fundamentals remain
strong, and most of our real estate markets continue to strengthen allowing
us to execute our global strategy with good momentum and continuing
success."
Investment Activity
During the first quarter, new development and renovation starts totaled
approximately 2.9 million square feet in seven projects in North America
and Asia representing an estimated total investment of $219 million. AMB
acquired 2.1 million square feet of distribution facilities in 32 buildings
at a total acquisition cost of approximately $153 million. Seven
development and renovation projects stabilized in North America and Japan
totaling 2.1 million square feet, for a total investment of $285 million.
AMB placed two of the development projects, representing a total investment
of $25 million, into operations, and five of the projects, representing a
total investment of $260 million, are available for sale or contribution to
one of the companys co-investment funds.
AMBs president, W. Blake Baird, commented, "Four years ago, we
embarked on a strategic expansion of our development business intended to
scale globally with increasing utilization of internal resources, creating
significant value for our shareholders. At that time, our development
pipeline was less than $200 million, exclusively undertaken through
alliance partners and limited to U.S. markets. Our first quarter results
demonstrate the progress weve made. During the quarter, we both stabilized
and began more than $200 million of distribution facilities. Our pipeline
under development currently exceeds $1 billion with projects in eleven
countries, and critical to future development, our land bank on three
continents contains more than 1,400 acres with an expected additional build
out of 25 million square feet."
In the first quarter, AMB completed opportunistic sales of four
operating buildings that no longer fit the companys strategy. In the
aggregate, the four buildings comprise approximately 322,000 square feet
and represent approximately $17 million in gross disposition proceeds. In
addition, the company generated gross sale proceeds of approximately $5
million from its development-for-sale business with the sale of a land
parcel in Florida.
Annual Meeting of Stockholders
The Annual Meeting of Stockholders will be held on Thursday, May 11,
2006 at 2:00 p.m. PDT. Stockholders are invited to attend the meeting at
the companys corporate headquarters located at Pier 1, Bay 1, in San
Francisco, California. The proxy statement, Annual Report to Stockholders,
voting materials and meeting information were mailed on or about March 30,
2006.
Supplemental Earnings Measure
AMB reports fund from operations per fully diluted share and unit in
accordance with the standards established by the National Association of
Real Estate Investment Trusts. Included in the footnotes to the companys
attached financial statements is a discussion of why management believes
FFOPS is a useful supplemental measure of operating performance, ways in
which investors might use FFOPS when assessing the companys financial
performance and FFOPSs limitations as a measurement tool. Reconciliation
from net income to funds from operations is provided in the attached tables
and published in AMBs quarterly supplemental analyst package, available on
the companys website at http://www.amb.com.
Conference Call and Supplemental Information
The company will host a conference call to discuss the quarterly
results on Wednesday, April 12, 2006 at 1:00 p.m. EDT/10:00 a.m. PDT.
Stockholders and interested parties may listen to a live broadcast of the
conference call by dialing +1-877-447-8218 (from the U.S. and Canada) or
+1-706-643-7823 (from all other countries) and entering reservation code
6965406. A webcast can be accessed through a link titled "Q1 2006 Earnings
Conference Call" located on the home page of the companys website at
http://www.amb.com.
If you are unable to listen to the live conference call, a telephone
and webcast replay will be available after 12:00 p.m. PDT on Wednesday,
April 12, 2006 until 5:00 p.m. PDT on Wednesday, May 10, 2006. The
telephone replay can be accessed by dialing +1-800-642-1687 (U.S. and
Canada) or +1-706-645-9291 (all other countries), with the reservation code
6965406 or by webcast through the link on the companys website at
http://www.amb.com.
In addition, the company will post a summary of the guidance given on
the call and a supplement detailing the components of net asset value to
the Investor Information portion of its website on Tuesday, April 18, 2006
by 5:00 p.m. PDT.
AMB Property Corporation(R). Local partner to global trade.(TM)
AMB Property Corporation(R) is a leading owner and operator of
industrial real estate, focused on major hub and gateway distribution
markets throughout North America, Europe and Asia. As of March 31, 2006,
AMB owned, or had investments in, on a consolidated basis or through
unconsolidated joint ventures, properties and development projects expected
to total approximately 118 million square feet (11 million square meters)
and 1,070 buildings in 42 markets within eleven countries. AMB invests in
properties located predominantly in the infill submarkets of its targeted
markets. The companys portfolio is comprised of High Throughput
Distribution(R) facilities-industrial properties built for speed and
located near airports, seaports and ground transportation systems.
AMBs press releases are available on the company website at
http://www.amb.com or by contacting the Investor Relations department at
+1-877-285-3111.
Some of the information included in this press release contains
forward-looking statements, such as those related to total expected
investments in acquisitions and developments; size and timing of deliveries
and total investments in development projects; and use of private capital
funds for planned investment activity, 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 on advantageous
terms 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, changes in general
economic conditions or in the real estate sector, changes in real estate
and zoning laws or other local, state and federal regulatory requirements,
a downturn in the U.S., California, or the 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, various
market conditions and fluctuations and those other risk factors discussed
under the heading "Risk Factors" and elsewhere in our most recent annual
report on Form 10-K for the year ended December 31, 2005.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
As of
March 31, December 31,
2006 2005
Assets
Investments in real estate:
Total investments in properties $6,913,524 $6,798,294
Accumulated depreciation (736,760) (697,388)
Net investments in properties 6,176,764 6,100,906
Investments in unconsolidated joint ventures 118,472 118,653
Properties held for contribution, net 266,311 32,755
Properties held for divestiture, net 31,201 17,936
Net investments in real estate 6,592,748 6,270,250
Cash and cash equivalents 158,067 267,233
Mortgages and loans receivable 21,589 21,621
Accounts receivable, net 151,864 178,682
Other assets 112,312 64,953
Total assets $7,036,580 $6,802,739
Liabilities and Stockholders Equity
Secured debt $1,917,805 $1,912,526
Unsecured senior debt securities 950,937 975,000
Unsecured credit facilities 734,110 490,072
Other debt 63,543 23,963
Accounts payable and other liabilities 249,149 263,744
Total liabilities 3,915,544 3,665,305
Minority interests:
Joint venture partners 899,658 853,643
Preferred unitholders 200,986 278,378
Limited partnership unitholders 87,641 89,114
Total minority interests 1,188,285 1,221,135
Stockholders equity:
Common equity 1,757,420 1,740,751
Preferred equity 175,331 175,548
Total stockholders equity 1,932,751 1,916,299
Total liabilities and
stockholders equity $7,036,580 $6,802,739
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except share data)
For the Quarters Ended
March 31,
2006 2005
Revenues
Rental revenues $176,407 $153,404
Private capital income 5,106 3,318
Total revenues 181,513 156,722
Costs and expenses
Property operating costs (45,697) (39,769)
Depreciation and amortization (43,360) (39,532)
General and administrative (22,855) (18,544)
Other expenses (1) (537) (936)
Fund costs (614) (364)
Total costs and expenses (113,063) (99,145)
Other income and expenses
Equity in earnings of unconsolidated
joint ventures 2,088 1,242
Other income (1) 3,063 136
Gains from dispositions of real estate, net -- 1,301
Development profits, net of taxes 674 17,949
Interest expense, including amortization (39,789) (36,874)
Total other income and expenses (33,964) (16,246)
Income from operations before
minority interests 34,486 41,331
Minority interests share of income:
Joint venture partners share of income (8,825) (9,349)
Joint venture partners share of
development profits (32) (9,837)
Preferred unitholders (5,001) (5,368)
Limited partnership unitholders (805) (295)
Total minority interests share of income (14,663) (24,849)
Income from continuing operations 19,823 16,482
Discontinued operations:
Income attributable to discontinued
operations, net of minority interests 741 2,343
Gain from disposition of real estate,
net of minority interests 7,013 27,942
Total discontinued operations 7,754 30,285
Net income 27,577 46,767
Preferred stock dividends (3,096) (1,783)
Preferred unit redemption issuance costs (1,097) --
Net income available to common stockholders $23,384 $44,984
Net income per common share (diluted) $0.26 $0.52
Weighted average common shares (diluted) 90,179,329 86,516,695
(1) Includes changes in liabilities and assets associated with the
Companys deferred compensation plan.
CONSOLIDATED STATEMENTS OF FUNDS FROM OPERATIONS(1)
(dollars in thousands, except share data)
For the Quarters Ended
March 31,
2006 2005
Net income $27,577 $46,767
Gains from disposition of real estate,
net of minority interests (7,013) (29,243)
Depreciation and amortization:
Total depreciation and amortization 43,360 39,532
Discontinued operations depreciation (92) 4,591
Non-real estate depreciation (1,000) (745)
Adjustments to derive FFO from consolidated JVs:
Joint venture partners minority
interests (Net income) 8,825 9,349
Limited partnership unitholders
minority interests (Net income) 805 295
Limited partnership unitholders minority
interests (Development profits) 32 458
Discontinued operations minority
interests (Net income) (248) 2,386
FFO attributable to minority interests (20,435) (23,587)
Adjustments to derive FFO from
unconsolidated JVs:
AMBs share of net income (2,088) (1,242)
AMBs share of FFO 3,209 2,747
Preferred stock dividends (3,096) (1,783)
Preferred unit redemption issuance costs (1,097) --
Funds from operations $48,739 $49,525
FFO per common share and unit (diluted) $0.52 $0.54
Weighted average common shares and
units (diluted) 94,567,680 91,240,898
(1) 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 Companys 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 companys 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 Companys liquidity or operating performance. FFO also does
not consider the costs associated with capital expenditures related to the
Companys real estate assets nor is FFO necessarily indicative of cash
available to fund the Companys future cash requirements. Further, the
Companys 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.
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property for sale in umbria italy |
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