Moghadam delivered his comments in AMB's quarterly earnings conference call with financial analysts. In his introductory remarks to the conference call, Moghadam said that 2010 "is shaping up to be a very good year for us." Among the factors he cited in AMB's positive outlook were improvements in global trade, increasing confidence among the company's customers and better-than-expected financial results from transportation-based logistics providers.

Moghadam pointed out that, since bottoming in early 2009, global trade "has been improving at a healthy pace in both the ocean and the air sectors." Container volumes through the major global ports are up about 24% from the trough, although still 7% to 10% below comparable periods in 2007 and 2008, he noted. International air cargo is up 28% year-to-date from its January 2009 trough, which Moghadam called "an unexpected and positive surprise" that is the result of "customers who continue to manage their lean inventory." Air cargo volumes are now only about 5% to 10% below peak levels, he added.

Regarding customer sentiment, the AMB chief—who pointed out in last quarter's conference call that customers were beginning to express confidence—said that confidence continued to grow in the latest quarter, although it will be some time before that confidence translates into increased demand. Other factors that Moghadam cited in his presentation included increases in manufacturing, industrial production and consumer spending.

During the first quarter, AMB commenced leases totaling approximately 8.4 million square feet in its global operating portfolio and leased approximately 1.2 million square feet in its global development portfolio. The company's two open-end funds received investments during the first quarter comprising: a $150 million investment by AMB, consisting of $100 million in AMB US Logistics Fund and $50 million in AMB Europe Fund I; and $50 million in new third-party equity in AMB US Logistics Fund.

Guy F. Jaquier, president of private capital for the REIT, said, "There is strong interest from large, global investors who are on the leading edge of the investment curve and want to align with an experienced and well-capitalized operator with a focused strategy." Jaquier said that AMB is "in active discussions to raise capital for both our existing open-end funds as well as for our new vehicles in all of the regions where we operate."

For the quarter, the company reported FFO of 31 cents per share, compared with 77 cents for the first quarter of last year. Net income available to common stockholders per fully diluted share for the first quarter of 2010 was a loss of $0.03, as compared to a loss of $1.24 for the same quarter in 2009, principally due to non-cash impairment charges incurred in first quarter 2009.

Instant Insights /

AMB: Fundamentals To Recover by Year-End

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