Investment Strategy
As long-term investors, AMB pursues acquisitions and developments that provide sustainable returns. By combining experience and research to evaluate the dynamics affecting both industrial distribution and overall real estate cycles, we can invest and divest our capital strategically.
Our evaluation process has led us to focus on building and buying the best-located, most functional product for customers who need efficient distribution property networks. These facilities are in high demand by such customers as third-party logistics providers, air and ocean freight forwarders, integrated shippers, retail and consumer product companies.
Here’s Why:
Over the last 30 years, inventory as a percentage of GDP has steadily decreased, meaning that businesses are operating with reduced inventory levels. For many industrial property users, storage has become increasingly less important as inventory has become more expensive. Both producers and consumers want products out the door, en route to their destinations, faster. In fact, since 1950, the average inventory-to-final-sales ratio has dropped roughly 50%. With transportation innovations, including the interstate highway system, trucking deregulation and technology advancements, storage has become a declining business. However, the timely transport and rerouting of goods have become increasingly critical. This trend has led to explosive growth in the distribution and logistics services industries.
Here’s How:
AMB has captured this growth niche by catering to the air/ocean freight and logistics sectors of the supply chain. We target our investment activity in the world’s most strategic distribution markets: areas proximate to both major international airports and seaports with the complementary transportation infrastructure and employment base to advance supply-chain efficiencies.
We utilize both public and private capital to finance our growth and global expansion. Before we were a public real estate company, we were a private investment management firm. We’ve used 24 years of portfolio management and partnership expertise to create a private capital model that serves private and public investors well. Our co-investment partners benefit from alignment of financial interests and gain access to our trade-centric investment strategy and operating platform. AMB’s public stockholders benefit from enhanced returns on their equity through recurring and steadily growing asset management fees, acquisition fees and promoted interests.