PROFILE

Our governance practices have been well-received. As of June 2, 2009, ISS Corporate Governance Quotient indicated that AMB outperformed 99% of the companies in the real estate industry group.
AMB is led by a Chief Executive Officer and overseen by a Board of Directors. The current four Committees of the Board are Audit, Compensation, Executive and Nominating & Governance. The Board selects the Chief Executive Officer in accordance with the Company’s Bylaws and other applicable policies.

As Chief Executive Officer, he is responsible for implementing the directives of the board, and overseeing AMB’s business operations. This arrangement provides the board, among other things, with direct access to management insight into company affairs and better visibility for the overall strategic vision for AMB.

AMB defines independence in accordance with the New York Stock Exchange and the Securities and Exchange Commission requirements for independent directors. In addition, AMB complies with the requirements for independent directors set forth in its Bylaws. Nonemployee Directors may not hold an executive or employment position within AMB, its subsidiaries or joint venture partners. Jeffrey L. Skelton served as lead director for the 2008 fiscal year and will continue to serve as lead director for the 2009 fiscal year.

AMB has also established the Business Conduct Hotline, a confidential and anonymous hotline for employees and directors to report concerns about AMB or employee conduct.

Compensation linked to organizational performance is addressed in AMB’s 2009 Proxy Statement. Nonemployee Directors are encouraged to hold significant equity interests in the Company. The Board expects each nonemployee Director to own or to acquire, within three years of first becoming a Director or within three years from September 23, 2008, whichever is later, shares of the common stock of AMB having a market value of at least $175,000.

Senior officers of AMB are encouraged to hold significant equity interests in AMB. The Board expects each senior officer of AMB to own or to acquire, within five years of appointment to such officer position or within five years from September 23, 2008, whichever is later, shares of the common stock of AMB (including common limited partnership units of AMB Property, L.P., which units are exchangeable for shares of AMB’s common stock) having a market value of a multiple of his or her base salary as indicated below:

• Chief Executive Officer 5.0x
• Presidents of Company divisions; Executive Vice Presidents 3.0x
• Senior Vice Presidents 1.0x

This Code reaffirms AMB’s long-standing policy that its directors, officers and employees conform to the highest legal, ethical and moral standards. Directors are required to adhere to AMB’s Corporate Governance Principles, which, among other things, describe how to avoid and disclose conflicts of interest.

In identifying and screening candidates for the Board, the Nominating & Governance Committee considers relevant qualifications including economic, environmental and social responsibility expertise.

We host activities that raise awareness of societal problems, encourage philanthropy and organize community service activities. We also support career growth and development, offer a mentoring program and foster a collaborative work environment. While our business has evolved substantially since AMB’s inception in 1983, our core values have remained constant. They are centered on the philosophy known as I CREATE. This stands for Integrity, Customers, Results, Excellence, Accountable, Team and Entrepreneurship. These values have been translated into the many languages spoken in AMB’s offices globally.

AMB’s Code of Business Conduct is used to inform its directors, officers and employees how to conform to the highest legal, ethical and moral standards. This Code is intended to provide general guidelines that will:

• Ensure compliance with laws and regulations that govern AMB’s business activities;
• Foster a standard of conduct that reflects positively on AMB and its employees;
• Protect AMB from financial loss; and
• Preserve a corporate climate in which the integrity and dignity of each individual is not compromised.

AMB has a longstanding commitment to sustainable and energy-efficient development and operations. In the AMB 2007 Annual Report, Chairman and CEO Hamid Moghadam stated:

“We have long believed in the benefits of energy-efficient building standards and actively work with our customers, employees and communities to achieve practices that address environmental concerns. Looking back to the late 1990s, when AMB converted a historic industrial pier in San Francisco into our award-winning world headquarters, we can point to design and building specifications that today are considered best practices in ‘green’ development. We are – and always have been – focused on the substance of sustainable business practices. Delivering practical and sustainable solutions is good for our customers, and makes our business stronger and more profitable in the long run.”
Additional information on AMB’s Sustainability Programs can be found at: http://www.amb.com/global_capabilities/sustainability_at_amb.php

The Board has complete access to the Company’s management and the Company’s outside counsel and auditors. In addition, the Board has the authority to obtain advice and assistance from external legal, accounting or other advisors. Members of the Company’s management routinely attend Board and Committee meetings to brief the Board and its Committees on particular topics.

We have also developed business continuity plans to minimize disruptions to our activities and leadership. We address sustainability issues in our portfolio, including energy and resource conservation. This lowers operating costs and reduces impact on public infrastructure, communities and the environment. We believe that our actions will improve our business competitiveness while promoting environmental stewardship.

• The Society of Industrial and Office Realtors (SIOR)
• The Urban Land Institute (ULI)
• National Association of Real Estate Investment Trusts (NAREIT)
• National Association of Industrial and Office Properties (NAIOP)
• Association of Industrial Real Estate Brokers (AIRE)
• Association of Foreign Investors in Real Estate (AFIRE)
• U.S. Green Building Council
• American Association of Port Authorities (AAPA)
• Industrial Asset Management Council (IAMC)
• Retail Industry Leaders Association (RILA)
• Waterfront Coalition
• Royal Institution of Chartered Surveyors (RICS)
• Institute of Real Estate Management (IREM)
• International Facility Management Association (IFMA)
• AIR Commercial Real Estate Association
• Risk and Insurance Management Society (RIMS)
• The Real Estate Roundtable (RER)
• Stanford Global Supply Chain Management Forum

Employees at AMB are active participants in sustainability efforts in various industry associations; for example, the NAIOP Sustainable Development Committee and the RER Sustainability Policy Advisory Committee. AMB employees have also participated in and presented on sustainability topics at industry conference and events hosted by organizations such as ULI, RILA and NAIOP.

• Customers
• Public and private shareholders
• Employees
• Local, state and federal governments
• Community groups
• State environmental authorities
• Consultants, contractors and vendors
• Brokerage community
• Financial analysts
• Industry associations
• Not-for-profit standard-setting organizations
• Academic institutions

We seek to establish working relationships that allow us to conduct our business effectively while considering the economic, social and environmental impacts on stakeholders. These long-term relationships promote open communication about our business activities.

Examples of our efforts include our “Close to the Customer” initiative within our Operations business that helps us better align our services with the needs of our customers. Our annual Customer Development Forums, held in the U.S. and Europe, provide a platform for us to identify the intermediate- and long- term business issues facing our global customers so we can better position our business to respond to their objectives.

AMB holds an annual meeting of stockholders at its Pier 1 headquarters; a direct forum for shareholders to interface with company leadership. We regularly communicate with institutional investors and other capital providers to keep them informed of our business performance. We have representatives participating in numerous industry organizations.

For example, AMB is a participant in NAREIT’s Grassroots Program, where NAREIT seeks to connect Members of Congress with REITs that own and operate properties within their local districts and states. Through on-site visits, key policymakers have been educated on REITs and what role the publicly-traded real estate industry plays in the local economy. These events have created a greater understanding about REITs on Capitol Hill.

We perform an annual customer electronic survey to gauge our success at meeting customers’ needs regarding the manner in which we operate our buildings. AMB hosts annual customer forums to solicit feedback from industry leaders on topics most relevant to their short- and long-term business activities.

We participate in community hearings and other public forums to communicate about our development activities. This often includes dialogue with local community groups, trade unions, local governments and conservation groups as well as other organizations. Our stakeholder engagement activities have been an integral part of our business for many years and were not undertaken specifically to facilitate preparation of the GRI report.

We have also identified areas where we can improve service to our customers. As a result, we provide ongoing feedback to our teams in each market enabling them to improve service to our customers. We also respond directly to municipal and community questions about our development activity through our community outreach efforts and other public forums.

Examples include:

• Our continued focus on infill locations, a response to customer desire to optimize efficiency in their supply chain;
• Flexibility in our lease terms to accommodate the business and economic needs of our customers;
• Our expanded sustainable building activities which address growing customer and community demand for green buildings; and
• Our expanded educational and logistical support for energy and water conservation among our customers. This has helped us to address concerns over volatile energy prices and resource restrictions among our customers as well as local communities and governments.