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AMB Property Reiterates Full-year FFO Forecast

The Associated Press

SAN FRANCISCO (AP) — Industrial real estate developer AMB Property Corp. late Tuesday reiterated its full-year outlook and said it will take a first-quarter charge related to the declining value of some property.

The company predicted funds from operations between $1.80 and $1.90 per share, excluding gains from development activities. The forecast also excludes an estimated first-quarter impairment charge of about $165 million to $185 million.

Analysts polled by Thomson Reuters expect funds from operations of $2.02 per share. Analysts' estimates typically exclude one-time items.

FFO, which adds such items as amortization and depreciation back to net income, is considered a key measure of strength for REITs because it provides a more accurate picture of cash performance.

Impairment charges by AMB and other property developers and owners may be attempts to improve their balance sheets as the commercial real estate sector struggles during the recession. AMB has laid off 22 percent of its employees, the first time it has reduced personnel in its 26-year history.

Shares of AMB fell 59 cents, or 4.8 percent, to $11.72 in premarket activity Wednesday.