PERFORMANCE INDICATOR

We believe that our focused investment strategy and disciplined approach to execution will give us a sustained competitive advantage over the long run.

This strategy is aligned with and reinforces AMB’s sustainability objectives: to operate and develop energy-efficient properties that support greater efficiency for our customers. We believe that when taken together, our strategy and our sustainability efforts can help to reduce our economic risk and provide opportunities to gain a competitive advantage.

Funds from operations in 2008 were $80.5 million, compared with $365.5 million in 2007. Net income available to common stockholders per common share (basic) represents a loss of $0.67 per share in 2008, compared with income of $2.96 per common share in 2007. Funds from operations per common share and unit (basic) were $0.78 in 2008, compared with $3.51 in 2007.

Note: Refer to our website for current information regarding AMB Property’s SEC filings and financial performance: http://www.amb.com. For management’s discussion of FFO and a reconcillation from FFO to net income, please see our Form 10-K for the year ended December 31, 2008.

We are active participants in industry dialogue on climate change risks and the industry’s response. We have risk management procedures and disaster recovery plans in place in the event of a disruption to our business or our properties. We are also proactively addressing energy and resource concerns in our markets as we develop and reinvest in our properties to reduce the impact of potential regulations.

AMB and the industrial real estate industry as a whole may still face certain risks. These could include, but are not limited to:

• Demand from customers to address sustainability concerns
• Regulatory requirements to improve energy and water efficiency
• Higher energy costs
• Higher construction costs
• Greater demand for corporate social responsibility disclosure
• Lower revenue from properties impacted by climate-related events
• Reputational risk if perception of industry efforts turns negative

We believe we are well-positioned to effectively manage our financial risks and realize potential business opportunities including higher income and lower vacancy, while safeguarding our reputation.

By addressing customer and community sustainability objectives, we can be more successful in our development efforts and win more business. We are already seeing direct benefits from sustainable building development that include expedited development approvals and lower impact fees for our sustainable buildings, greater cost efficiencies and marketplace differentiation.

While we do not anticipate the industrial real estate industry being directly regulated by carbon emissions legislation, the effects of this legislation may filter down to our activities. For example, this may be felt in higher electricity costs and higher raw materials prices. If and when carbon emissions legislation is enacted in the U.S., we believe we will be well-positioned because of our ongoing investment in energy- and resource-efficient sustainable buildings.

We are improving our voluntary disclosure of our sustainability efforts to better manage desire for information from customers, investors and shareholders. Our efforts include resources on our website, our GRI report, as well as other reports and sustainability-related questionnaire responses. We also actively support sustainability efforts throughout our industry.

We are geographically well-positioned to respond to changing customer needs in the event that climate-related events or energy price volatility results in customer modifications to their supply chains.

While the full breadth of possible impacts of climate change concerns cannot be predicted, we believe the prudent steps to manage our risks and provide products that address the needs of our customers are being employed. We will continue to evaluate our efforts in light of changing climate change concerns in the future.

We also seek to source local construction materials and suppliers for our development projects. In the U.S., our LEED projects have successfully procured significant percentages of construction materials (up to 45% by cost) from local and regional sources. We also utilize national service and procurement contracts where appropriate to best suit our business requirements. For example, we have implemented national lighting vendor agreements to ensure consistent equipment quality, improved pricing and reliable warranty service. We have made these agreements available to our in-house teams as well as to our local contractors and vendors.

Where the locally based labor force meets these requirements, we hire locally–in many cases, employees with local market expertise are best suited for these positions. Relocation opportunities are also provided to accommodate professional goals as well as family and personal needs.