Specifically, the idustrial REIT says earnings growth from $17.8million (21 cents per share) in asset disposition gains was offsetby non-cash charges of $16.1 million (18 cents per share) forimpairment reserves on all of the company's private equityinvestments in technology and e-commerce companies, and a $1.4million (2 cents per share) depreciation charge for capitalizedlease costs related to leases with Webvan Group Inc.

As a result, owner, manager, developer of some 93.7 million sfin 26 markets posted earnings per share of 33 cents, flat againstthe second quarter of 2000. Still, when combined with the firstquarter, AMB remains 20.6% ahead of 2000's results through thefirst half of the year. Funds from Operations for the secondquarter were 43 cents per share after charges, down more than 25%from the second quarter of 2000, and down 11.5% when comparing thetwo half-years.

Webvan -- AMB's third largest customer at quarter-end -- isceasing operations in all markets and selling off its assets andbusiness. As of June 30, 2001 Webvan had four leases totaling843,970 sf with AMB, accounting for 0.8% or $3.6 million ofannualized base rents. In addition to the depreciation charge, AMBwrote-off $1.4 million of straight-line rents receivable during thequarter.

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