1045609--2/22/2010--AMB_PROPERTY

related topics

{loan, real, estate}

{investment, property, distribution}

{operation, international, foreign}

{stock, price, share}

{debt, indebtedness, cash}

{acquisition, growth, future}

{tax, income, asset}

{capital, credit, financial}

{control, financial, internal}

{regulation, change, law}

{financial, litigation, operation}

{cost, regulation, environmental}

{interest, director, officer}

{loss, insurance, financial}

{provision, law, control}

{personnel, key, retain}

{stock, price, operating}

The price per share of the parent company s stock may decline or fluctuate significantly. The company faces risks associated with the use of debt to fund its business activities, including refinancing and interest rate risks. Adverse changes in the company s credit ratings could negatively affect its financing activity. Covenants in the operating partnership s debt agreements could adversely affect its financial condition. Failure to hedge effectively against exchange and interest rates may adversely affect results of operations. The company is dependent on external sources of capital. The operating partnership could incur more debt, increasing its debt service. Other Real Estate Industry Risks The company s performance and value are subject to general economic conditions and risks associated with its real estate assets. Declining real estate valuations and impairment charges could adversely affect the company s earnings and financial condition. The company may be unable to lease vacant space or renew leases or relet space as leases expire. The company could be adversely affected if a significant number of its customers are unable to meet their lease obligations. The company may be unable to consummate acquisitions on advantageous terms or at all or acquisitions may not perform as it expects. The company is subject to risks and liabilities in connection with forming new joint ventures, investing in new or existing joint ventures, attracting third party investment and owning properties through joint ventures and other investment vehicles. The company may not be successful in contributing properties to its co-investment ventures. The company may be unable to complete divestitures on advantageous terms or at all. Actions by the company s competitors may affect the company s ability to divest properties and may decrease or prevent increases of the occupancy and rental rates of the company s properties. The company may be unable to complete renovation, development and redevelopment projects on advantageous terms or at all. Real estate investments are relatively illiquid, making it difficult for the company to respond promptly to changing conditions. Risks Associated with the Company s International Business The company s international activities are subject to special risks and it may not be able to effectively manage its international business. The company is subject to risks from potential fluctuations in exchange rates between the U.S. dollar and the currencies of the other countries in which it invests. Acquired properties may be located in new markets, where the company may face risks associated with investing in an unfamiliar market. The company s performance and value are impacted by the local economic conditions of and the risks associated with doing business in California. The company faces risks associated with short-term liquid investments. The company may experience losses that its insurance does not cover. Contingent or unknown liabilities could adversely affect the company s financial condition. Risks Associated with the Company s Dependence on Key Personnel Some of the company s directors and executive officers are involved in other real estate activities and investments and, therefore, may have conflicts of interest with the company. The parent company s role as general partner of the operating partnership may conflict with the interests of its stockholders. Risks Associated with Government Regulations The costs of compliance with environmental laws and regulations and any related potential liability could exceed the company s budgets for these items. Compliance or failure to comply with the Americans with Disabilities Act and other similar regulations could result in substantial costs. The parent company s failure to qualify as a real estate investment trust would have serious adverse consequences to its stockholders. Certain property transfers may generate prohibited transaction income, resulting in a penalty tax on gain attributable to the transaction. The parent company may in the future choose to pay dividends in its own stock, in which case you may be required to pay tax in excess of the cash you receive. Legislative or regulatory action could adversely affect the parent company s stockholders. Risks Associated with Ownership of the Parent Company s Stock Limitations in the parent company s charter and bylaws could prevent a change in control. If the parent company issues additional securities, then the investment of existing stockholders will be diluted. Earnings, cash dividends, asset value and market interest rates affect the price of the parent company s stock. The parent company could change its investment and financing policies without a vote of stockholders. Shares available for future sale could adversely affect the market price of the parent company s common stock. Risks Associated with the Company s Disclosure Controls and Procedures and Internal Control over Financial Reporting The company s business could be adversely impacted if it has deficiencies in its disclosure controls and procedures or internal control over financial reporting.

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1045609--2/22/2010--AMB_PROPERTY_CORP