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SAN FRANCISCO-AMB Property Corp’s built real estate portfolio performed well in the final three months of the year despite the net result, a $1.69 per share loss due to some $218 million or $2.15 per share in restructuring charges related to workforce reductions and lost development value.

The industrial REIT said Thursday that its operating portfolio was 95% leased for the quarter and the year and that rents on renewals and rollovers increased 2.5%. Cash-basis same-store net operating income–without the effects of lease termination fees–increased 0.2% in the fourth quarter and 3.7% for the full year over the same 2007 periods.

AMB is an industrial REIT that develops properties for sale to third parties or funds. Last week, the company announced it had let go 22% of its global workforce as part of a cost reduction initiative. The company employed 716 people at the end of September, 200 more than it employed at the start of the year. The layoffs are the first in the company’s history.

The value of the company’s development pipeline has decreased significantly due to rising cap rates. The restructuring charges included $97 million or $0.96 per share related to lost value in assets under development and assets held for sale or contribution and an additional $95 million or $0.94 per share related to lost value in its land holdings. In addition, the company incurred $12 million or $0.12 per share in charges for pursuit costs related to development projects it no longer plans to commence and to establish a reserve against tax assets associated with a reduction of development activities.

“The impairment charges were principally a result of increases in estimated capitalization rates and deterioration in market conditions that adversely impacted values,’ the company said. “These non-cash charges do not impact AMB’s liquidity, cost and availability of credit or affect the company’s continued compliance with its various financial covenants under its credit facilities and unsecured bonds.”

As of the start of the year AMB had 16.4 million square feet of projects in various stages of development that are scheduled for completion or sale through 2010 at a cost of $1.3 billion. AMB’s share of the remaining cost is expected to be $248.6 million. Shares of AMB fell 16.5% to $17.46 on the New York Stock Exchange on Thursday and fell dropped an additional 5.84% on Friday to finish at $16.44.

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