1045609--3/2/2009--AMB_PROPERTY

related topics

{loan, real, estate}

{investment, property, distribution}

{operation, international, foreign}

{stock, price, share}

{tax, income, asset}

{debt, indebtedness, cash}

{acquisition, growth, future}

{capital, credit, financial}

{regulation, change, law}

{cost, regulation, environmental}

{loss, insurance, financial}

{provision, law, control}

{personnel, key, retain}

{stock, price, operating}

{financial, litigation, operation}

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

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1045609--3/2/2009--AMB_PROPERTY_CORP