said first-quarter profit fell 41%, hit by lower gains from real estate disposal.
The San Francisco, Calif.-based owner and operator of industrial real estate, earned $27.6 million, or 26 cents a share, compared with $44.9 million, or 52 cents a share, a year ago. Adjusted for gains from disposals, the company earned 18 cents in the first quarter, compared with 18 cents in the corresponding quarter, a year ago. Analysts polled by Thomson First Call were looking for 17 cents a share in the most recent quarter.
Funds from operations declined 1.6% to $48.7 million, or 52 cents a share from a year ago. Analysts polled by Thomson First Call were looking for FFO of 49 cents a share. The company's guidance was at 48 cents a share. The FFO for the first quarter includes a net lease termination fee equivalent to 6 cents a share, and development gains and preferred unit repurchase charges, each at one cent a share.
First-quarter revenue rose 15 % to $176.4 million.
The company said that its same store net operating income rose marginally by 0.3% while rent on lease renewals and rollovers fell 11.5%.
AMB's development pipeline now stands at $1 billion with the company spending $219 million in the first quarter in property acquisition and development.
"We've 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." the company said.
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