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SAN FRANCISCO-AMB Property Corp., a industrial REIT with 98.4 million shares outstanding, this morning increased its planned common stock offering to 41 million shares from 33 million shares and priced it at $12.15 apiece. Including an additional 6.2 million shares to cover over-allotments by underwriters, a sellout would generate gross proceeds of approximately $570 million.

The net proceeds primarily will be used to pay down its unsecured credit facilities but also may be used to fund development activities, property acquisitions and to increase working capital. The offering is expected to close before the end of the month. AMB had total debt outstanding of $4.0 billion at the start of the year.

AMB owns or has an interest in 160 million square feet of product in 49 markets in 15 countries in the Americas, Europe and Asia. Merrill Lynch, JPMorgan and Morgan Stanley are underwriting the offering. Shares of AMB were trading this morning at $13.60, up 10% ($1.29) on the day. Yesterday, shares lost 10.7% ($1.58) to close at $13.13, and then fell an additional 7.2% ($0.94) to $12.20 in aftermarket electronic trading.

In addition to announcing the offering on Tuesday the company issued first quarter news related to its development program and its capital markets activity. So far this year, the company has completed contributions and sales totaling approximately $277 million, with gains of $51 million. The company is under contract to sell an additional $164 million of properties and has an additional $281 million of properties for which it has received non-binding letters of intent.

With regard to lost value in its land holdings and development assets, the company says it expects to recognize a non-cash impairment charge of between $165 million and $185 million. A non-cash impairment charge is recognized when the book value of a property exceeds its fair market value, based on its intended holding period. The estimated impairment charge is primarily attributed to changes in both leasing assumptions and increases in projected capitalization rates. AMB’s capital markets activity in the first quarter included the repayment, refinancing or extension of approximately $737 million in financings.

Forecasting the rest of the year, the company currently expects full-year 2009 growth in cash basis same store net operating income [before lease termination fees and without the effect of foreign currency exchange] to fall between 3% and 4.5%, and that occupancy will decline to between 90.5% and 91.5% “based on further deterioration in the US and global economy as well as occupancy and net operating trends year-to-date.”

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