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AMB Property's Net Income Rises

The industrial real estate operator sees a 16.8% year-over-year inrease in revenue.

AMB Property (AMB) , an industrial real estate operator, said Tuesday its third-quarter earnings rose 9.8%, thanks to better-than-expected profit margins.

The San Francisco-based company earned $29.96 million, or 33 cents a share in the quarter, compared with $27.29 million, or 31 cents a share, a year ago.

Third-quarter revenue rose 16.8% from a year ago to $180.21 million.

Funds from operations for the third quarter rose 47% from a year ago to $68.29 million, or 72 cents a share. Analysts were expecting FFO of 66 cents a share.

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The company's industrial operating portfolio occupancy was 95.9% at Sept. 30, up 130 basis points from Sept. 30, 2005. Cash-basis same-store net operating income in the third quarter rose 5.8% over the same period in 2005, helped by occupancy gains and rising rents in many of the company's markets. In the third quarter, rents on lease renewal and rollover in AMB's operating portfolio rose 9.9%.

"Occupancy reached its highest level since the third quarter of 2001, and rents on renewals entered positive territory for the first time since the first quarter of 2002," the company said. "We are pleased with the continued demand for industrial product, especially in our Asia markets, and preliminary data provided by Torto Wheaton Research indicates positive absorption and availability figures for industrial space in the U.S. during the third quarter."

The company's stock closed down 9 cents, or 0.16%, at $57.30 Tuesday.

This story was created through a joint venture between TheStreet.com and IRIS.