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UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, DC 20549





FORM 10-Q





|                                  |  |                                                                                             
|--------------------------------- |  | --------------------------------------------------------------------------------------------
|(Mark One)                        |  |                                                                                             
|                                 
|þ                                 |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934 
|                                 
|                                  |  | For the quarterly period ended March 31, 2005                                               
|                                 
|or                               
|                                 
|o                                 |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|                                 
|Commission File Number: 001-14245

AMB Property, L.P.


(Exact Name of Registrant as Specified in Its Charter)


|                                                                   |  |                                         
|------------------------------------------------------------------ |  | ----------------------------------------
|Delaware                                                           |  | 94-3285362                              
|(State or Other Jurisdiction of
    Incorporation or Organization) |  | (I.R.S. Employer
    Identification No.)
|                                                                  
|Pier 1, Bay 1, San Francisco, California                           |  | 94111                                   
|(Address of Principal Executive Offices)                           |  | (Zip Code)                              

(415) 394-9000


(Registrants Telephone Number, Including Area Code)


þ o


þ o










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AMB PROPERTY, L.P.


INDEX


|                              |  |                                                                                              |  |      |    | 
|----------------------------- |  | -------------------------------------------------------------------------------------------- |  | ---- | -- | 
|                              |  |                                                                                              |  | Page |   
|                              |  |                                                                                              |  |      |   
|PART I. FINANCIAL INFORMATION
|Item 1.                       |  | Financial Statements (unaudited)                                                             |  |      |    | 
|                              |  | Consolidated Balance Sheets as of March 31, 2005 and
    December 31, 2004                   |  |      | 1  | 
|                              |  | Consolidated Statements of Operations for the three months ended
    March 31, 2005 and 2004 |  |      | 2  | 
|                              |  | Consolidated Statement of Partners Capital for the three
    months ended March 31, 2005    |  |      | 3  | 
|                              |  | Consolidated Statements of Cash Flows for the three months ended
    March 31, 2005 and 2004 |  |      | 4  | 
|                              |  | Notes to Consolidated Financial Statements                                                   |  |      | 5  | 
|Item 2.                       |  | Managements Discussion and Analysis of Financial Condition
    and Results of Operations    |  |      | 20 | 
|Item 3.                       |  | Quantitative and Qualitative Disclosures About Market Risk                                   |  |      | 39 | 
|Item 4.                       |  | Controls and Procedures                                                                      |  |      | 40 | 
|PART II. OTHER INFORMATION   
|Item 1.                       |  | Legal Proceedings                                                                            |  |      | 42 | 
|Item 2.                       |  | Unregistered Sales of Equity Securities and Use of Proceeds                                  |  |      | 42 | 
|Item 3.                       |  | Defaults Upon Senior Securities                                                              |  |      | 42 | 
|Item 4.                       |  | Submission of Matters to a Vote of Security Holders                                          |  |      | 42 | 
|Item 5.                       |  | Other Information                                                                            |  |      | 42 | 
|Item 6.                       |  | Exhibits                                                                                     |  |      | 42 | 



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##### 






PART I







|        |                     
|------- | --------------------
|Item 1. | Financial Statements

AMB PROPERTY, L.P.





CONSOLIDATED BALANCE SHEETS


As of March 31, 2005 and December 31, 2004


|                                                            |                                                                                                                                                                                                                                                                                                 |                                 |                                |                                         |              |           |           |           |           |           |           | 
|----------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------- | ------------------------------ | --------------------------------------- | ------------ | --------- | --------- | --------- | --------- | --------- | --------- | 
|                                                            |                                                                                                                                                                                                                                                                                                 | March 31,                       |                                |                                         | December 31, |          
|                                                            |                                                                                                                                                                                                                                                                                                 | 2005                            |                                |                                         | 2004         |          
|                                                            |                                                                                                                                                                                                                                                                                                 |                                 |                                |                                         |              |          
|                                                            |                                                                                                                                                                                                                                                                                                 | (Unaudited, dollars             |                               
|                                                            |                                                                                                                                                                                                                                                                                                 | in thousands)                   |                               
|ASSETS                                                     
|Investments in real estate:                                 |                                                                                                                                                                                                                                                                                                 |                                 |                                |                                         |              |           |           |          
|                                                            | Land                                                                                                                                                                                                                                                                                            |                                 | $                              | 1,509,648                               |              |           | $         | 1,509,145 |          
|                                                            | Buildings and improvements                                                                                                                                                                                                                                                                      |                                 |                                | 4,329,161                               |              |           |           | 4,305,622 |          
|                                                            | Construction in progress                                                                                                                                                                                                                                                                        |                                 |                                | 769,928                                 |              |           |           | 711,377   |          
|                                                            |                                                                                                                                                                                                                                                                                                 |                                 |                                |                                         |              |          
|                                                            |                                                                                                                                                                                                                                                                                                 | Total investments in properties |                                |                                         | 6,608,737    |           |           |           | 6,526,144 |          
|                                                            | Accumulated depreciation and amortization                                                                                                                                                                                                                                                       |                                 |                                | (652,085                                | )            |           |           | (615,646  | )        
|                                                            |                                                                                                                                                                                                                                                                                                 |                                 |                                |                                         |              |          
|                                                            |                                                                                                                                                                                                                                                                                                 | Net investments in properties   |                                |                                         | 5,956,652    |           |           |           | 5,910,498 |          
|Investments in unconsolidated joint ventures                |                                                                                                                                                                                                                                                                                                 |                                 | 105,127                        |                                         |              |           | 55,166    |          
|Properties held for divestiture, net                        |                                                                                                                                                                                                                                                                                                 |                                 | 49,455                         |                                         |              |           | 87,340    |          
|                                                            |                                                                                                                                                                                                                                                                                                 |                                 |                                |                                         |              |          
|                                                            |                                                                                                                                                                                                                                                                                                 |                                 | Net investments in real estate |                                         |              | 6,111,234 |           |           |           | 6,053,004 |          
|Cash and cash equivalents                                   |                                                                                                                                                                                                                                                                                                 |                                 | 167,781                        |                                         |              |           | 109,392   |          
|Restricted cash                                             |                                                                                                                                                                                                                                                                                                 |                                 | 47,287                         |                                         |              |           | 37,201    |          
|Mortgage and loan receivables                               |                                                                                                                                                                                                                                                                                                 |                                 | 21,710                         |                                         |              |           | 13,738    |          
|Accounts receivable, net of allowance for doubtful accounts |                                                                                                                                                                                                                                                                                                 |                                 | 135,768                        |                                         |              |           | 109,028   |          
|Deferred financing costs, net                               |                                                                                                                                                                                                                                                                                                 |                                 | 27,163                         |                                         |              |           | 28,340    |          
|Other assets                                                |                                                                                                                                                                                                                                                                                                 |                                 | 44,141                         |                                         |              |           | 36,240    |          
|                                                            |                                                                                                                                                                                                                                                                                                 |                                 |                                |                                         |              |          
|                                                            |                                                                                                                                                                                                                                                                                                 | Total assets                    |                                | $                                       | 6,555,084    |           |           | $         | 6,386,943 |          
|                                                            |                                                                                                                                                                                                                                                                                                 |                                 |                                |                                         |              |          
|                                                           
|LIABILITIES AND PARTNERS CAPITAL                          
|Debt:                                                       |                                                                                                                                                                                                                                                                                                 |                                 |                                |                                         |              |           |           |          
|                                                            | Secured debt                                                                                                                                                                                                                                                                                    |                                 | $                              | 1,915,702                               |              |           | $         | 1,892,524 |          
|                                                            | Unsecured senior debt securities                                                                                                                                                                                                                                                                |                                 |                                | 1,003,940                               |              |           |           | 1,003,940 |          
|                                                            | Unsecured debt                                                                                                                                                                                                                                                                                  |                                 |                                | 8,869                                   |              |           |           | 9,028     |          
|                                                            | Unsecured credit facilities                                                                                                                                                                                                                                                                     |                                 |                                | 422,616                                 |              |           |           | 351,699   |          
|                                                            |                                                                                                                                                                                                                                                                                                 |                                 |                                |                                         |              |          
|                                                            |                                                                                                                                                                                                                                                                                                 | Total debt                      |                                |                                         | 3,351,127    |           |           |           | 3,257,191 |          
|Security deposits                                           |                                                                                                                                                                                                                                                                                                 |                                 | 40,195                         |                                         |              |           | 40,260    |          
|Distributions payable                                       |                                                                                                                                                                                                                                                                                                 |                                 | 42,747                         |                                         |              |           | 41,103    |          
|Accounts payable and other liabilities                      |                                                                                                                                                                                                                                                                                                 |                                 | 175,217                        |                                         |              |           | 180,923   |          
|                                                            |                                                                                                                                                                                                                                                                                                 |                                 |                                |                                         |              |          
|                                                            |                                                                                                                                                                                                                                                                                                 | Total liabilities               |                                |                                         | 3,609,286    |           |           |           | 3,519,477 |          
|Commitments and contingencies (Note 12)                     |                                                                                                                                                                                                                                                                                                 |                                 |                                |                                         |              |           |           |          
|Minority interests:                                         |                                                                                                                                                                                                                                                                                                 |                                 |                                |                                         |              |           |           |          
|                                                            | Joint venture partners                                                                                                                                                                                                                                                                          |                                 |                                | 884,188                                 |              |           |           | 828,622   |          
|                                                            | Preferred unitholders                                                                                                                                                                                                                                                                           |                                 |                                | 203,319                                 |              |           |           | 203,302   |          
|                                                            |                                                                                                                                                                                                                                                                                                 |                                 |                                |                                         |              |          
|                                                            |                                                                                                                                                                                                                                                                                                 | Total minority interests        |                                |                                         | 1,087,507    |           |           |           | 1,031,924 |          
|Partners capital:                                          |                                                                                                                                                                                                                                                                                                 |                                 |                                |                                         |              |           |           |          
|                                                            | General partner, 83,733,896 and 83,019,229 units
    outstanding, respectively; 2,000,000 Series L preferred
    units issued and outstanding with a $50,000 liquidation
    preference and 2,300,000 Series M preferred units issued
    and outstanding with a $57,500 liquidation preference |                                 |                                | 1,693,855                               |              |           |           | 1,671,140 |          
|                                                            | Limited partners, 4,574,275 and 4,600,556 units,
    respectively; 800,000 Series J preferred units with a
    $40,000 liquidation preference, 800,000 Series K preferred
    units with a $40,000 liquidation preference                                                                       |                                 |                                | 164,436                                 |              |           |           | 164,402   |          
|                                                            |                                                                                                                                                                                                                                                                                                 |                                 |                                |                                         |              |          
|                                                            |                                                                                                                                                                                                                                                                                                 |                                 | Total partners capital        |                                         |              | 1,858,291 |           |           |           | 1,835,542 |          
|                                                            |                                                                                                                                                                                                                                                                                                 |                                 |                                |                                         |              |          
|                                                            |                                                                                                                                                                                                                                                                                                 |                                 |                                | Total liabilities and partners capital |              | $         | 6,555,084 |           |           | $         | 6,386,943 | 
|                                                            |                                                                                                                                                                                                                                                                                                 |                                 |                                |                                         |              |          



1



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AMB PROPERTY, L.P.





CONSOLIDATED STATEMENTS OF OPERATIONS


For the Three Months Ended March 31, 2005 and 2004


|                                                        |                                                                                                   |                                                              |        |            |          |   |        |            |         |  
|------------------------------------------------------- | ------------------------------------------------------------------------------------------------- | ------------------------------------------------------------ | ------ | ---------- | -------- | - | ------ | ---------- | ------- | -
|                                                        |                                                                                                   | For the Three Months                                         |       
|                                                        |                                                                                                   | Ended March 31,                                              |       
|                                                        |                                                                                                   |                                                              |       
|                                                        |                                                                                                   | 2005                                                         |        |            | 2004     |  
|                                                        |                                                                                                   |                                                              |        |            |          |  
|                                                        |                                                                                                   | (Unaudited, dollars in                                       |       
|                                                        |                                                                                                   | thousands, except share                                      |       
|                                                        |                                                                                                   | and per share amounts)                                       |       
|REVENUES                                                |                                                                                                   |                                                              |        |            |          |   |        |           
|                                                        | Rental revenues                                                                                   |                                                              | $      | 169,056    |          |   | $      | 155,208    |        
|                                                        | Private capital income                                                                            |                                                              |        | 3,318      |          |   |        | 2,429      |        
|                                                        |                                                                                                   |                                                              |        |            |          |  
|                                                        |                                                                                                   | Total revenues                                               |        |            | 172,374  |   |        |            | 157,637 |  
|COSTS AND EXPENSES                                      |                                                                                                   |                                                              |        |            |          |   |        |           
|                                                        | Property operating expenses                                                                       |                                                              |        | (24,584    | )        |   |        | (22,729    | )      
|                                                        | Real estate taxes                                                                                 |                                                              |        | (19,845    | )        |   |        | (18,248    | )      
|                                                        | Depreciation and amortization                                                                     |                                                              |        | (43,485    | )        |   |        | (37,255    | )      
|                                                        | General and administrative                                                                        |                                                              |        | (18,799    | )        |   |        | (14,567    | )      
|                                                        | Fund costs                                                                                        |                                                              |        | (364       | )        |   |        | (309       | )      
|                                                        |                                                                                                   |                                                              |        |            |          |  
|                                                        |                                                                                                   | Total costs and expenses                                     |        |            | (107,077 | ) |        |            | (93,108 | )
|                                                        |                                                                                                   |                                                              |        |            |          |  
|OTHER INCOME AND EXPENSES                               |                                                                                                   |                                                              |        |            |          |   |        |           
|                                                        | Equity in earnings of unconsolidated joint ventures, net                                          |                                                              |        | 1,242      |          |   |        | 1,709      |        
|                                                        | Other income and expenses, net                                                                    |                                                              |        | (566       | )        |   |        | 1,481      |        
|                                                        | Gains from dispositions of real estate interests                                                  |                                                              |        | 1,301      |          |   |        |           |        
|                                                        | Development profits, net of taxes                                                                 |                                                              |        | 17,949     |          |   |        |           |        
|                                                        | Interest expense, including amortization                                                          |                                                              |        | (40,896    | )        |   |        | (39,018    | )      
|                                                        |                                                                                                   |                                                              |        |            |          |  
|                                                        |                                                                                                   | Total other income and expenses, net                         |        |            | (20,970  | ) |        |            | (35,828 | )
|                                                        |                                                                                                   |                                                              |        |            |          |  
|                                                        |                                                                                                   | Income before minority interests and discontinued operations |        |            | 44,327   |   |        |            | 28,701  |  
|                                                        |                                                                                                   |                                                              |        |            |          |  
|Minority interests share of income:                    |                                                                                                   |                                                              |        |            |          |   |        |           
|                                                        | Joint venture partners share of income before minority
    interests and discontinued operations |                                                              |        | (11,284    | )        |   |        | (8,585     | )      
|                                                        | Joint venture partners share of development profits                                              |                                                              |        | (9,379     | )        |   |        |           |        
|                                                        | Preferred unitholders                                                                             |                                                              |        | (3,789     | )        |   |        | (3,351     | )      
|                                                        |                                                                                                   |                                                              |        |            |          |  
|                                                        |                                                                                                   | Total minority interests share of income                    |        |            | (24,452  | ) |        |            | (11,936 | )
|                                                        |                                                                                                   |                                                              |        |            |          |  
|Income from continuing operations                       |                                                                                                   |                                                              | 19,875 |            |          |   | 16,765 |           
|                                                        |                                                                                                   |                                                              |        |            |          |  
|Discontinued operations:                                |                                                                                                   |                                                              |        |            |          |   |        |           
|                                                        | Income attributable to discontinued operations, net of minority
    interests                     |                                                              |        | 1,414      |          |   |        | 2,533      |        
|                                                        | Gains (loss) from dispositions of real estate, net of minority
    interests                      |                                                              |        | 29,591     |          |   |        | (302       | )      
|                                                        |                                                                                                   |                                                              |        |            |          |  
|                                                        |                                                                                                   | Total discontinued operations                                |        |            | 31,005   |   |        |            | 2,231   |  
|                                                        |                                                                                                   |                                                              |        |            |          |  
|                                                        | Net income                                                                                        |                                                              |        | 50,880     |          |   |        | 18,996     |        
|Series L and M preferred unit distributions             |                                                                                                   |                                                              | (1,783 | )          |          |   | (1,783 | )         
|Series B, J and K preferred unit distributions          |                                                                                                   |                                                              | (1,590 | )          |          |   | (1,590 | )         
|                                                        |                                                                                                   |                                                              |        |            |          |  
|                                                        |                                                                                                   | Net income available to common unitholders                   |        | $          | 47,507   |   |        | $          | 15,623  |  
|                                                        |                                                                                                   |                                                              |        |            |          |  
|Income available to common unitholders attributable to: |                                                                                                   |                                                              |        |            |          |   |        |           
|                                                        | General partner                                                                                   |                                                              | $      | 44,984     |          |   | $      | 14,799     |        
|                                                        | Limited partners                                                                                  |                                                              |        | 2,523      |          |   |        | 824        |        
|                                                        |                                                                                                   |                                                              |        |            |          |  
|                                                        |                                                                                                   | Net income available to common unitholders                   |        | $          | 47,507   |   |        | $          | 15,623  |  
|                                                        |                                                                                                   |                                                              |        |            |          |  
|Basic income per common unit                            |                                                                                                   |                                                              |        |            |          |   |        |           
|                                                        | Income from continuing operations (after preferred unit
    distributions)                        |                                                              | $      | 0.19       |          |   | $      | 0.15       |        
|                                                        | Discontinued operations                                                                           |                                                              |        | 0.35       |          |   |        | 0.03       |        
|                                                        |                                                                                                   |                                                              |        |            |          |  
|                                                        |                                                                                                   | Net income available to common unitholders                   |        | $          | 0.54     |   |        | $          | 0.18    |  
|                                                        |                                                                                                   |                                                              |        |            |          |  
|Diluted income per common unit                          |                                                                                                   |                                                              |        |            |          |   |        |           
|                                                        | Income from continuing operations (after preferred unit
    distributions)                        |                                                              | $      | 0.18       |          |   | $      | 0.15       |        
|                                                        | Discontinued operations                                                                           |                                                              |        | 0.34       |          |   |        | 0.02       |        
|                                                        |                                                                                                   |                                                              |        |            |          |  
|                                                        |                                                                                                   | Net income available to common unitholders                   |        | $          | 0.52     |   |        | $          | 0.17    |  
|                                                        |                                                                                                   |                                                              |        |            |          |  
|WEIGHTED AVERAGE COMMON UNITS OUTSTANDING               |                                                                                                   |                                                              |        |            |          |   |        |           
|                                                        | Basic                                                                                             |                                                              |        | 87,857,933 |          |   |        | 86,447,303 |        
|                                                        |                                                                                                   |                                                              |        |            |          |  
|                                                        | Diluted                                                                                           |                                                              |        | 91,240,898 |          |   |        | 89,617,834 |        
|                                                        |                                                                                                   |                                                              |        |            |          |  



2



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AMB PROPERTY, L.P.





CONSOLIDATED STATEMENT OF PARTNERS CAPITAL


For the Three Months Ended March 31, 2005


|                                                                                                                 |  |                                                        |           |  |                  |   |         |                 |  |  |              |  |  |       |           |   |        |  |           |       |  |   |        |   |  |       |           |   |  |   |        |   |  |   |           |  
|---------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------ | --------- |  | ---------------- | - | ------- | --------------- |  |  | ------------ |  |  | ----- | --------- | - | ------ |  | --------- | ----- |  | - | ------ | - |  | ----- | --------- | - |  | - | ------ | - |  | - | --------- | -
|                                                                                                                 |  | General Partner                                        |           |  | Limited Partners |   |         |                
|                                                                                                                 |  |                                                        |           |  |                  |   |         |                
|                                                                                                                 |  | Preferred Units                                        |           |  | Common Units     |   |         | Preferred Units |  |  | Common Units |  |  |      
|                                                                                                                 |  |                                                        |           |  |                  |   |         |                 |  |  |              |  |  |      
|                                                                                                                 |  | Units                                                  |           |  | Amount           |   |         | Units           |  |  | Amount       |  |  | Units |           |   | Amount |  |           | Units |  |   | Amount |   |  | Total |          
|                                                                                                                 |  |                                                        |           |  |                  |   |         |                 |  |  |              |  |  |       |           |   |        |  |           |       |  |   |        |   |  |       |          
|                                                                                                                 |  | (Unaudited, dollars in thousands, except unit amounts) |          
|Balance as of December 31, 2004                                                                                  |  |                                                        | 4,300,000 |  |                  | $ | 103,204 |                 |  |  | 83,019,229   |  |  | $     | 1,567,936 |   |        |  | 1,600,000 |       |  | $ | 77,815 |   |  |       | 4,600,556 |   |  | $ | 86,587 |   |  | $ | 1,835,542 |  
|Comprehensive income:                                                                                            |  |                                                        |           |  |                  |   |         |                 |  |  |              |  |  |       |           |   |        |  |           |       |  |   |        |   |  |       |           |   |  |   |        |   |  |   |           |  
|Net income                                                                                                       |  |                                                        |          |  |                  |   | 1,783   |                 |  |  |             |  |  |       | 44,984    |   |        |  |          |       |  |   | 1,590  |   |  |       |          |   |  |   | 2,523  |   |  |   |           |  
|Unrealized loss on securities and derivatives                                                                    |  |                                                        |          |  |                  |   |        |                 |  |  |             |  |  |       | (1,181    | ) |        |  |          |       |  |   |       |   |  |       |          |   |  |   |       |   |  |   |           |  
|Currency translation adjustment                                                                                  |  |                                                        |          |  |                  |   |        |                 |  |  |             |  |  |       | (66       | ) |        |  |          |       |  |   |       |   |  |       |          |   |  |   |       |   |  |   |           |  
|Total comprehensive income                                                                                       |  |                                                        |           |  |                  |   |         |                 |  |  |              |  |  |       |           |   |        |  |           |       |  |   |        |   |  |       |           |   |  |   |        |   |  |   | 49,633    |  
|Issuance of common limited partnership units in connection with
    the issuance of restricted stock and options |  |                                                        |          |  |                  |   |        |                 |  |  | 205,574      |  |  |       | 12,961    |   |        |  |          |       |  |   |       |   |  |       |          |   |  |   |       |   |  |   | 12,961    |  
|Issuance of common limited partnership units in connection with
    the exercise of stock options                |  |                                                        |          |  |                  |   |        |                 |  |  | 482,812      |  |  |       | 10,951    |   |        |  |          |       |  |   |       |   |  |       |          |   |  |   |       |   |  |   | 10,951    |  
|Conversion of operating partnership units to common stock                                                        |  |                                                        |          |  |                  |   |        |                 |  |  | 26,281       |  |  |       | 1,019     |   |        |  |          |       |  |   |       |   |  |       | (26,281   | ) |  |   | (495   | ) |  |   | 524       |  
|Forfeiture of common limited partnership units in connection
    with the forfeiture of restricted stock         |  |                                                        |          |  |                  |   |        |                 |  |  |             |  |  |       | (1,531    | ) |        |  |          |       |  |   |       |   |  |       |          |   |  |   |       |   |  |   | (1,531    | )
|Deferred compensation                                                                                            |  |                                                        |          |  |                  |   |        |                 |  |  |             |  |  |       | (12,961   | ) |        |  |          |       |  |   |       |   |  |       |          |   |  |   |       |   |  |   | (12,961   | )
|Deferred compensation amortization                                                                               |  |                                                        |          |  |                  |   |        |                 |  |  |             |  |  |       | 4,280     |   |        |  |          |       |  |   |       |   |  |       |          |   |  |   |       |   |  |   | 4,280     |  
|Reallocation of interests                                                                                        |  |                                                        |          |  |                  |   |        |                 |  |  |             |  |  |       | 1,203     |   |        |  |          |       |  |   |       |   |  |       |          |   |  |   | 83     |   |  |   | 1,286     |  
|Issuance costs                                                                                                   |  |                                                        |          |  |                  |   |        |                 |  |  |             |  |  |       |          |   |        |  |          |       |  |   |       |   |  |       |          |   |  |   |       |   |  |   |          |  
|Distributions                                                                                                    |  |                                                        |          |  |                  |   | (1,783  | )               |  |  |             |  |  |       | (36,944   | ) |        |  |          |       |  |   | (1,590 | ) |  |       |          |   |  |   | (2,077 | ) |  |   | (42,394   | )
|                                                                                                                 |  |                                                        |           |  |                  |   |         |                 |  |  |              |  |  |       |           |   |        |  |           |       |  |   |        |   |  |       |          
|Balance as of March 31, 2005                                                                                     |  |                                                        | 4,300,000 |  |                  | $ | 103,204 |                 |  |  | 83,733,896   |  |  | $     | 1,590,651 |   |        |  | 1,600,000 |       |  | $ | 77,815 |   |  |       | 4,574,275 |   |  | $ | 86,621 |   |  | $ | 1,858,291 |  
|                                                                                                                 |  |                                                        |           |  |                  |   |         |                 |  |  |              |  |  |       |           |   |        |  |           |       |  |   |        |   |  |       |          



3



---



##### 



AMB PROPERTY, L.P.





CONSOLIDATED STATEMENTS OF CASH FLOWS


For the Three Months Ended March 31, 2005 and 2004


|                                                                                           |                                                             |                                                                              |                                           |         |         |         |          |         |         |          |  
|------------------------------------------------------------------------------------------ | ----------------------------------------------------------- | ---------------------------------------------------------------------------- | ----------------------------------------- | ------- | ------- | ------- | -------- | ------- | ------- | -------- | -
|                                                                                           |                                                             | 2005                                                                         |                                           |         | 2004    |        
|                                                                                           |                                                             |                                                                              |                                           |         |         |        
|                                                                                           |                                                             | (Unaudited, dollars in                                                       |                                          
|                                                                                           |                                                             | thousands)                                                                   |                                          
|CASH FLOWS FROM OPERATING ACTIVITIES                                                       |                                                             |                                                                              |                                           |         |         |         |          |        
|Net income                                                                                 |                                                             | $                                                                            | 50,880                                    |         |         | $       | 18,996   |        
|Adjustments to net income:                                                                 |                                                             |                                                                              |                                           |         |         |         |          |        
|                                                                                           | Straight-line rents and amortization of lease intangibles   |                                                                              |                                           | (4,497  | )       |         |          | (4,168  | )      
|                                                                                           | Depreciation and amortization                               |                                                                              |                                           | 43,485  |         |         |          | 37,255  |        
|                                                                                           | Stock-based compensation amortization                       |                                                                              |                                           | 4,280   |         |         |          | 2,557   |        
|                                                                                           | Equity in earnings of unconsolidated joint ventures         |                                                                              |                                           | (1,242  | )       |         |          | (1,709  | )      
|                                                                                           | Gains from dispositions of real estate interest             |                                                                              |                                           | (1,301  | )       |         |          |        |        
|                                                                                           | Development profits, net of taxes                           |                                                                              |                                           | (17,949 | )       |         |          |        |        
|                                                                                           | Debt premiums, discounts and finance cost amortization, net |                                                                              |                                           | 1,313   |         |         |          | 339     |        
|                                                                                           | Total minority interests share of net income               |                                                                              |                                           | 24,452  |         |         |          | 11,936  |        
|                                                                                           | Discontinued operations:                                    |                                                                              |                                           |         |         |         |          |         |        
|                                                                                           |                                                             | Depreciation and amortization                                                |                                           |         | 638     |         |          |         | 2,393   |         
|                                                                                           |                                                             | Joint venture partners share of net income                                  |                                           |         | 319     |         |          |         | 555     |         
|                                                                                           |                                                             | (Gains) loss from dispositions of real estate, net of minority
    interests |                                           |         | (29,591 | )       |          |         | 302     |         
|                                                                                           | Changes in assets and liabilities:                          |                                                                              |                                           |         |         |         |          |         |        
|                                                                                           |                                                             | Accounts receivable and other assets                                         |                                           |         | (34,222 | )       |          |         | (2,456  | )       
|                                                                                           |                                                             | Accounts payable and other liabilities                                       |                                           |         | 11,038  |         |          |         | 1,259   |         
|                                                                                           |                                                             |                                                                              |                                           |         |         |        
|                                                                                           |                                                             |                                                                              | Net cash provided by operating activities |         |         | 47,603  |          |         |         | 67,259   |  
|CASH FLOWS FROM INVESTING ACTIVITIES                                                       |                                                             |                                                                              |                                           |         |         |         |          |        
|Change in restricted cash                                                                  |                                                             |                                                                              | (10,244                                   | )       |         |         | 3,616    |        
|Cash paid for property acquisitions                                                        |                                                             |                                                                              | (58,957                                   | )       |         |         | (60,899  | )      
|Additions to land, buildings, development costs, building
    improvements and lease costs |                                                             |                                                                              | (130,977                                  | )       |         |         | (113,352 | )      
|Net proceeds from divestiture of real estate                                               |                                                             |                                                                              | 184,287                                   |         |         |         | 4,731    |        
|Additions to interests in unconsolidated joint ventures                                    |                                                             |                                                                              | (48,910                                   | )       |         |         | (814     | )      
|Distributions received from unconsolidated joint ventures                                  |                                                             |                                                                              | 261                                       |         |         |         | 568      |        
|(Issuance) and repayment of mortgage and loan receivables                                  |                                                             |                                                                              | (7,972                                    | )       |         |         | 19,525   |        
|                                                                                           |                                                             |                                                                              |                                           |         |         |        
|                                                                                           |                                                             |                                                                              | Net cash used in investing activities     |         |         | (72,512 | )        |         |         | (146,625 | )
|CASH FLOWS FROM FINANCING ACTIVITIES                                                       |                                                             |                                                                              |                                           |         |         |         |          |        
|Issuance of common units                                                                   |                                                             |                                                                              | 10,951                                    |         |         |         | 12,048   |        
|Borrowings on secured debt                                                                 |                                                             |                                                                              | 38,734                                    |         |         |         | 29,953   |        
|Payments on secured debt                                                                   |                                                             |                                                                              | (20,731                                   | )       |         |         | (8,735   | )      
|Payments on unsecured debt                                                                 |                                                             |                                                                              | (159                                      | )       |         |         | (146     | )      
|Borrowings on unsecured credit facilities                                                  |                                                             |                                                                              | 292,928                                   |         |         |         | 94,684   |        
|Payments on unsecured credit facilities                                                    |                                                             |                                                                              | (210,818                                  | )       |         |         | (111,063 | )      
|Payment of financing fees                                                                  |                                                             |                                                                              | (824                                      | )       |         |         | (199     | )      
|Net proceeds from issuances of senior debt securities                                      |                                                             |                                                                              |                                          |         |         |         | 99,390   |        
|Issuance costs on preferred units                                                          |                                                             |                                                                              |                                          |         |         |         | (161     | )      
|Contributions from co-investment partners                                                  |                                                             |                                                                              | 52,526                                    |         |         |         | 3,890    |        
|Distributions paid to partners                                                             |                                                             |                                                                              | (38,673                                   | )       |         |         | (36,739  | )      
|Distributions to minority interests, including preferred units                             |                                                             |                                                                              | (38,826                                   | )       |         |         | (9,169   | )      
|                                                                                           |                                                             |                                                                              |                                           |         |         |        
|                                                                                           | Net cash provided by financing activities                   |                                                                              |                                           | 85,108  |         |         |          | 73,753  |        
|                                                                                           |                                                             |                                                                              |                                           |         |         |        
|                                                                                           | Net effect of exchange rate changes on cash                 |                                                                              |                                           | (1,810  | )       |         |          | 1,682   |        
|                                                                                           |                                                             |                                                                              |                                           |         |         |        
|                                                                                           |                                                             | Net increase (decrease) in cash and cash equivalents                         |                                           |         | 58,389  |         |          |         | (3,931  | )       
|                                                                                           |                                                             | Cash and cash equivalents at beginning of period                             |                                           |         | 109,392 |         |          |         | 127,678 |         
|                                                                                           |                                                             |                                                                              |                                           |         |         |        
|                                                                                           |                                                             | Cash and cash equivalents at end of period                                   |                                           | $       | 167,781 |         |          | $       | 123,747 |         
|                                                                                           |                                                             |                                                                              |                                           |         |         |        
|Supplemental Disclosures of Cash Flow Information                                          |                                                             |                                                                              |                                           |         |         |         |          |        
|Cash paid for interest, net of capitalized interest                                        |                                                             | $                                                                            | 33,679                                    |         |         | $       | 29,109   |        
|Non-cash transactions:                                                                     |                                                             |                                                                              |                                           |         |         |         |          |        
|                                                                                           | Acquisition of properties                                   |                                                                              | $                                         | 84,404  |         |         | $        | 134,160 |        
|                                                                                           | Assumption of secured debt                                  |                                                                              |                                           | (15,477 | )       |         |          | (67,026 | )      
|                                                                                           | Assumption of other assets and liabilities                  |                                                                              |                                           | (1,873  | )       |         |          | (4,802  | )      
|                                                                                           | Acquisition capital                                         |                                                                              |                                           | (8,097  | )       |         |          | (1,433  | )      
|                                                                                           |                                                             |                                                                              |                                           |         |         |        
|                                                                                           | Net cash paid                                               |                                                                              | $                                         | 58,957  |         |         | $        | 60,899  |        
|                                                                                           |                                                             |                                                                              |                                           |         |         |        



4



---



##### 



AMB PROPERTY, L.P.





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


March 31, 2005


(Unaudited)




|   |                                                        
|-- | -------------------------------------------------------
|1. | Organization and Formation of the Operating Partnership















|   |                             
|-- | ----------------------------
|2. | Interim Financial Statements



5



---



##### 



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


March 31, 2005


(Unaudited)








Investments in Real Estate.


Reclassifications.


Comprehensive Income.


International Operations.






Stock-based Compensation Expense. Accounting for Stock-Based
Compensation.


6



---



##### 



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


March 31, 2005


(Unaudited)


Accounting for Stock Issued
to Employees.




|                                                    |         |                      |        |      |      |   |        |      | 
|--------------------------------------------------- | ------- | -------------------- | ------ | ---- | ---- | - | ------ | ---- | 
|                                                    |         | For the Three Months |       
|                                                    |         | Ended March 31,      |       
|                                                    |         |                      |       
|                                                    |         | 2005                 |        |      | 2004 |  
|                                                    |         |                      |        |      |      |  
|Reduction to net income                             |         | $                    | 183    |      |      | $ | 348    |     
|Adjusted net income available to common unitholders |         | $                    | 47,324 |      |      | $ | 15,275 |     
|Adjusted income per common unit:                    |         |                      |        |      |      |   |        |     
|                                                    | Basic   |                      | $      | 0.54 |      |   | $      | 0.18 | 
|                                                    | Diluted |                      | $      | 0.52 |      |   | $      | 0.17 | 

New Accounting Pronouncements. Share-Based Payment Accounting for Stock-Based
Compensation.




|   |                                                 
|-- | ------------------------------------------------
|3. | Real Estate Acquisition and Development Activity







7



---



##### 



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


March 31, 2005


(Unaudited)






|   |                                                                                          
|-- | -----------------------------------------------------------------------------------------
|4. | Gains from Dispositions of Real Estate, Development Sales and
    Discontinued Operations

Gains from Dispositions of Real Estate Interests.


Development Sales and Contributions.


Discontinued Operations. Accounting for the Impairment or
Disposal of Long-Lived Assets


Properties Held for Divestiture.




|                                                          |  |               |       |   |      |   |        |  
|--------------------------------------------------------- |  | ------------- | ----- | - | ---- | - | ------ | -
|                                                          |  | For the Three |      
|                                                          |  | Months Ended  |      
|                                                          |  | March 31,     |      
|                                                          |  |               |      
|                                                          |  | 2005          |       |   | 2004 |  
|                                                          |  |               |       |   |      |  
|Rental revenues                                           |  | $             | 3,996 |   |      | $ | 8,265  |  
|Straight-line rents and amortization of lease intangibles |  |               | 136   |   |      |   | 403    |  
|Property operating expenses                               |  |               | (748  | ) |      |   | (1,365 | )
|Real estate taxes                                         |  |               | (621  | ) |      |   | (1,259 | )
|Depreciation and amortization                             |  |               | (638  | ) |      |   | (2,393 | )
|Other income and expenses, net                            |  |               | 15    |   |      |   | 46     |  
|Interest, including amortization                          |  |               | (407  | ) |      |   | (609   | )
|Joint venture partners share of income                   |  |               | (319  | ) |      |   | (555   | )
|                                                          |  |               |       |   |      |  
|Income attributable to discontinued operations            |  | $             | 1,414 |   |      | $ | 2,533  |  
|                                                          |  |               |       |   |      |  

8



---



##### 



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


March 31, 2005


(Unaudited)




|                                       |  |           |     |  |              |   |     | 
|-------------------------------------- |  | --------- | --- |  | ------------ | - | --- | 
|                                       |  | March 31, |     |  | December 31, |  
|                                       |  | 2005      |     |  | 2004         |  
|                                       |  |           |     |  |              |  
|Accounts receivable, net               |  | $         | 874 |  |              | $ | 878 | 
|Other assets                           |  | $         | 153 |  |              | $ | 202 | 
|Accounts payable and other liabilities |  | $         | 908 |  |              | $ | 944 | 



|   |                              
|-- | -----------------------------
|5. | Mortgage and Loan Receivables



|                                |                                     |        |                |  |          |           |               |      |              |   |        |        |  |           |        |        |               |  |      |   |  |  |     |   | 
|------------------------------- | ----------------------------------- | ------ | -------------- |  | -------- | --------- | ------------- | ---- | ------------ | - | ------ | ------ |  | --------- | ------ | ------ | ------------- |  | ---- | - |  |  | --- | - | 
|Mortgage and Loan               |                                     |        |                |  |          | March 31, |               |      | December 31, |   |        |        |  | Ownership |       
|Receivables                     |                                     | Market |                |  | Maturity |           |               | 2005 |              |   | 2004   |        |  | Rate      |        |        | Percentage(1) | 
|                                |                                     |        |                |  |          |           |               |      |              |   |        |        |  |           |        |        |               | 
|1. Pier 1                       |                                     |        | SF Bay Area    |  |          |           | May 2026      |      |              | $ | 12,910 |        |  | $         | 12,938 |        |               |  | 13.0 | % |  |  | 100 | %
|2. G.Accion                     |                                     |        | Various        |  |          |           | November 2006 |      |              |   | 8,800  |        |  |           |       |        |               |  | 12.0 | % |  |  | 43  | %
|3. Platinum Distribution Center |                                     |        | No. New Jersey |  |          |           | N/A           |      |              |   |       |        |  |           | 800    |        |               |  | 12.0 | % |  |  | 20  | %
|                                |                                     |        |                |  |          |           |               |      |              |   |        |        |  |           |        |        |               | 
|                                | Total Mortgage and Loan Receivables |        |                |  |          |           |               |      |              |   | $      | 21,710 |  |           | $      | 13,738 |               |  |      |   |  |  |     |   | 
|                                |                                     |        |                |  |          |           |               |      |              |   |        |        |  |           |        |        |               | 






|    |                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------
|(1) | Represents the Operating Partnerships ownership percentage
    in the mortgage and loan receivables.



|   |     
|-- | ----
|6. | Debt



|                                                                                                                                                                                                                                         |                                        |                         |           |           |              |   |           |           |           | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------- | ----------------------- | --------- | --------- | ------------ | - | --------- | --------- | --------- | 
|                                                                                                                                                                                                                                         |                                        | March 31,               |           |           | December 31, |  
|                                                                                                                                                                                                                                         |                                        | 2005                    |           |           | 2004         |  
|                                                                                                                                                                                                                                         |                                        |                         |           |           |              |  
|Operating Partnership secured debt, varying interest rates from
    0.7% to 10.4%, due April 2005 to October 2017 (weighted average
    interest rate of 5.1% and 5.3% at March 31, 2005 and
    December 31, 2004, respectively)        |                                        | $                       | 509,268   |           |              | $ | 484,929   |          
|Consolidated joint venture secured debt, varying interest rates
    from 3.5% to 9.4%, due August 2005 to November 2022 (weighted
    average interest rates of 6.4% and 6.4% at March 31, 2005
    and December 31, 2004, respectively) |                                        |                         | 1,394,850 |           |              |   | 1,396,829 |          
|Unsecured senior debt securities, varying interest rates from
    3.5% to 8.0%, due June 2005 to June 2018 (weighted average
    interest rates of 6.6% and 6.6% at March 31, 2005 and
    December 31, 2004, respectively)              |                                        |                         | 1,003,940 |           |              |   | 1,003,940 |          
|Unsecured debt, due June 2013 and November 2015, interest rate
    of 7.5%                                                                                                                                                               |                                        |                         | 8,869     |           |              |   | 9,028     |          
|Unsecured credit facilities, variable interest rate, due May
    2006 to June 2007 (weighted average interest rates of 2.0% and
    1.9% at March 31, 2005 and December 31, 2004,
    respectively)                                      |                                        |                         | 422,616   |           |              |   | 351,699   |          
|                                                                                                                                                                                                                                         |                                        |                         |           |           |              |  
|                                                                                                                                                                                                                                         | Total debt before unamortized premiums |                         |           | 3,339,543 |              |   |           | 3,246,425 |          
|                                                                                                                                                                                                                                         | Unamortized premiums                   |                         |           | 11,584    |              |   |           | 10,766    |          
|                                                                                                                                                                                                                                         |                                        |                         |           |           |              |  
|                                                                                                                                                                                                                                         |                                        | Total consolidated debt |           | $         | 3,351,127    |   |           | $         | 3,257,191 | 
|                                                                                                                                                                                                                                         |                                        |                         |           |           |              |  



9



---



##### 



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


March 31, 2005


(Unaudited)










10



---



##### 



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


March 31, 2005


(Unaudited)








|           |       |             |         |         |               |   |         |             |  |   |           |           |  |            |       |       |       |   |         |         |  |   |         |           | 
|---------- | ----- | ----------- | ------- | ------- | ------------- | - | ------- | ----------- |  | - | --------- | --------- |  | ---------- | ----- | ----- | ----- | - | ------- | ------- |  | - | ------- | --------- | 
|           |       | Operating   |         |         |               |   |         |             |  |   |           |           | 
|           |       | Partnership |         |         | Consolidated  |   |         | Unsecured   |  |   |           |           |  |            |      
|           |       | Secured     |         |         | Joint Venture |   |         | Senior Debt |  |   | Unsecured |           |  | Credit     |       |       |      
|           |       | Debt        |         |         | Secured Debt  |   |         | Securities  |  |   | Debt      |           |  | Facilities |       |       | Total |  
|           |       |             |         |         |               |   |         |             |  |   |           |           |  |            |       |       |       |  
|2005       |       | $           | 41,794  |         |               | $ | 52,372  |             |  | $ | 250,000   |           |  | $          | 488   |       |       | $ |        |         |  | $ | 344,654 |          
|2006       |       |             | 80,812  |         |               |   | 73,060  |             |  |   | 75,000    |           |  |            | 698   |       |       |   | 32,356  |         |  |   | 261,926 |          
|2007       |       |             | 16,535  |         |               |   | 68,301  |             |  |   | 75,000    |           |  |            | 752   |       |       |   | 390,260 |         |  |   | 550,848 |          
|2008       |       |             | 41,756  |         |               |   | 174,701 |             |  |   | 175,000   |           |  |            | 810   |       |       |   |        |         |  |   | 392,267 |          
|2009       |       |             | 5,699   |         |               |   | 131,877 |             |  |   | 100,000   |           |  |            | 873   |       |       |   |        |         |  |   | 238,449 |          
|2010       |       |             | 71,521  |         |               |   | 149,934 |             |  |   | 75,000    |           |  |            | 941   |       |       |   |        |         |  |   | 297,396 |          
|2011       |       |             | 77,180  |         |               |   | 412,155 |             |  |   | 75,000    |           |  |            | 1,014 |       |       |   |        |         |  |   | 565,349 |          
|2012       |       |             | 151,962 |         |               |   | 177,969 |             |  |   |          |           |  |            | 1,093 |       |       |   |        |         |  |   | 331,024 |          
|2013       |       |             | 2,307   |         |               |   | 117,346 |             |  |   | 53,940    |           |  |            | 920   |       |       |   |        |         |  |   | 174,513 |          
|2014       |       |             | 12,903  |         |               |   | 3,777   |             |  |   |          |           |  |            | 616   |       |       |   |        |         |  |   | 17,296  |          
|Thereafter |       |             | 6,799   |         |               |   | 33,358  |             |  |   | 125,000   |           |  |            | 664   |       |       |   |        |         |  |   | 165,821 |          
|           |       |             |         |         |               |   |         |             |  |   |           |           |  |            |       |       |       |  
|           | Total |             | $       | 509,268 |               |   | $       | 1,394,850   |  |   | $         | 1,003,940 |  |            | $     | 8,869 |       |   | $       | 422,616 |  |   | $       | 3,339,543 | 
|           |       |             |         |         |               |   |         |             |  |   |           |           |  |            |       |       |       |  



|   |                                                                          
|-- | -------------------------------------------------------------------------
|7. | Minority Interests in Consolidated Joint Ventures and
    Preferred Units



11



---



##### 



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


March 31, 2005


(Unaudited)


Consolidation of Variable Interest Entities.




|                                          |       |                                                                   |  |               |    |                          |           |   |         |                 |  |   |           |           |  |              |         |           |  |   |         |           | 
|----------------------------------------- | ----- | ----------------------------------------------------------------- |  | ------------- | -- | ------------------------ | --------- | - | ------- | --------------- |  | - | --------- | --------- |  | ------------ | ------- | --------- |  | - | ------- | --------- | 
|                                          |       |                                                                   |  |               |    | Total Investment in Real |           |   |        
|                                          |       |                                                                   |  | Operating     |    |                          | Estate(7) |   |         | Secured Debt(8) | 
|                                          |       |                                                                   |  | Partnerships |    |                          |           |   |         |                 | 
|Co-investment Joint                       |       |                                                                   |  | Ownership     |    |                          | March 31, |   |         | December 31,    |  |   | March 31, |           |  | December 31, |        
|Venture                                   |       | Joint Venture Partner                                             |  | Percentage    |    |                          | 2005      |   |         | 2004            |  |   | 2005      |           |  | 2004         |        
|                                          |       |                                                                   |  |               |    |                          |           |   |         |                 |  |   |           |           |  |              |        
|AMB/ Erie, L.P.                           |       | Erie Insurance Company and affiliates                             |  |               | 50 | %                        |           | $ | 97,804  |                 |  | $ | 149,244   |           |  | $            | 41,225  |           |  | $ | 50,338  |          
|AMB Institutional Alliance Fund I, L.P.   |       | AMB Institutional Alliance REIT I,
    Inc.(1)                    |  |               | 21 | %                        |           |   | 417,791 |                 |  |   | 415,191   |           |  |              | 222,942 |           |  |   | 223,704 |          
|AMB Partners II, L.P.                     |       | City and County of San Francisco Employees Retirement
    System |  |               | 20 | %                        |           |   | 525,096 |                 |  |   | 516,200   |           |  |              | 263,097 |           |  |   | 264,315 |          
|AMB-SGP, L.P.                             |       | Industrial JV Pte Ltd
    (2)                                     |  |               | 50 | %                        |           |   | 434,493 |                 |  |   | 418,129   |           |  |              | 244,253 |           |  |   | 245,454 |          
|AMB Institutional Alliance Fund II, L.P.  |       | AMB Institutional Alliance REIT II,
    Inc.(3)                   |  |               | 20 | %                        |           |   | 495,209 |                 |  |   | 492,687   |           |  |              | 236,801 |           |  |   | 237,798 |          
|AMB-AMS,
    L.P.(4)                      |       | PMT, SPW and
    TNO(5)                                           |  |               | 39 | %                        |           |   | 125,551 |                 |  |   | 100,043   |           |  |              | 59,514  |           |  |   | 44,406  |          
|AMB Institutional Alliance Fund III, L.P. |       | AMB Institutional Alliance REIT III,
    Inc.(6)                  |  |               | 20 | %                        |           |   | 543,078 |                 |  |   | 523,037   |           |  |              | 257,259 |           |  |   | 258,164 |          
|                                          |       |                                                                   |  |               |    |                          |           |   |         |                 |  |   |           |           |  |              |        
|                                          | Total |                                                                   |  |               |    |                          |           |   | $       | 2,639,022       |  |   | $         | 2,614,531 |  |              | $       | 1,325,091 |  |   | $       | 1,324,179 | 
|                                          |       |                                                                   |  |               |    |                          |           |   |         |                 |  |   |           |           |  |              |        






|    |                                                                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Comprised of 16 institutional investors as stockholders as of
    March 31, 2005.                                                                                                                                 
|   
|(2) | A subsidiary of the real estate investment subsidiary of the
    Government of Singapore Investment Corporation.                                                                                                  
|   
|(3) | Comprised of 13 institutional investors as stockholders and one
    third-party limited partner as of March 31, 2005.                                                                                             
|   
|(4) | AMB-AMS, L.P. is a co-investment partnership with three Dutch
    pension funds advised by Mn Services NV.                                                                                                        
|   
|(5) | PMT is Stichting Pensioenfonds Metaal en Techniek, SPW is
    Stichting Pensioenfonds voor de Woningcorporaties and TNO is
    Stichting Pensioenfonds TNO.                                                       
|   
|(6) | AMB Institutional Alliance Fund III, L.P. is an open-ended
    co-investment partnership formed in 2004 with institutional
    investors.                                                                         
|   
|(7) | The Operating Partnership also had other consolidated joint
    ventures with total investments in real estate of
    $381.3 million and $370.0 million at March 31,
    2005 and December 31, 2004, respectively.
|   
|(8) | The Operating Partnership also had other consolidated joint
    ventures with secured debt of $77.9 million and
    $79.9 million at March 31, 2005 and December 31,
    2004, respectively.                      

12



---



##### 



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


March 31, 2005


(Unaudited)




|                                    |                                                              |                          |         |        |              |   |         |        |           | 
|----------------------------------- | ------------------------------------------------------------ | ------------------------ | ------- | ------ | ------------ | - | ------- | ------ | --------- | 
|                                    |                                                              | March 31,                |         |        | December 31, |  
|                                    |                                                              | 2005                     |         |        | 2004         |  
|                                    |                                                              |                          |         |        |              |  
|Joint Venture Partners              |                                                              | $                        | 884,188 |        |              | $ | 828,622 |       
|Held through AMB Property II, L.P.: |                                                              |                          |         |        |              |   |         |       
|                                    | Class B Limited Partners                                     |                          |         | 2,756  |              |   |         | 2,739  |          
|                                    | Series D preferred units (liquidation preference of $79,767) |                          |         | 77,684 |              |   |         | 77,684 |          
|                                    | Series E preferred units (liquidation preference of $11,022) |                          |         | 10,788 |              |   |         | 10,788 |          
|                                    | Series F preferred units (liquidation preference of $10,057) |                          |         | 9,900  |              |   |         | 9,900  |          
|                                    | Series H preferred units (liquidation preference of $42,000) |                          |         | 40,912 |              |   |         | 40,912 |          
|                                    | Series I preferred units (liquidation preference of $25,500) |                          |         | 24,800 |              |   |         | 24,800 |          
|                                    | Series N preferred units (liquidation preference of $36,479) |                          |         | 36,479 |              |   |         | 36,479 |          
|                                    |                                                              |                          |         |        |              |  
|                                    |                                                              | Total minority interests |         | $      | 1,087,507    |   |         | $      | 1,031,924 | 
|                                    |                                                              |                          |         |        |              |  



|                                                     |                                                              |                                           |        |       |        |   |       |       |        | 
|---------------------------------------------------- | ------------------------------------------------------------ | ----------------------------------------- | ------ | ----- | ------ | - | ----- | ----- | ------ | 
|                                                     |                                                              | For the Three Months                      |       
|                                                     |                                                              | Ended March 31,                           |       
|                                                     |                                                              |                                           |       
|                                                     |                                                              | 2005                                      |        |       | 2004   |  
|                                                     |                                                              |                                           |        |       |        |  
|Joint Venture Partners share of income              |                                                              | $                                         | 11,284 |       |        | $ | 8,585 |      
|Joint Venture Partners share of development profits |                                                              |                                           | 9,379  |       |        |   |      |      
|Held through AMB Property II, L.P.:                  |                                                              |                                           |        |       |        |   |       |      
|                                                     | Class B common limited partnership units                     |                                           |        | 11    |        |   |       | 29    |       
|                                                     | Series D preferred units (liquidation preference of $79,767) |                                           |        | 1,545 |        |   |       | 1,545 |       
|                                                     | Series E preferred units (liquidation preference of $11,022) |                                           |        | 214   |        |   |       | 214   |       
|                                                     | Series F preferred units (liquidation preference of $10,057) |                                           |        | 200   |        |   |       | 200   |       
|                                                     | Series H preferred units (liquidation preference of $42,000) |                                           |        | 853   |        |   |       | 853   |       
|                                                     | Series I preferred units (liquidation preference of $25,500) |                                           |        | 510   |        |   |       | 510   |       
|                                                     | Series N preferred units (liquidation preference of $36,479) |                                           |        | 456   |        |   |       |      |       
|                                                     |                                                              |                                           |        |       |        |  
|                                                     |                                                              | Total minority interests share of income |        | $     | 24,452 |   |       | $     | 11,936 | 
|                                                     |                                                              |                                           |        |       |        |  



13



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##### 



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


March 31, 2005


(Unaudited)




|   |                                             
|-- | --------------------------------------------
|8. | Investments in Unconsolidated Joint Ventures



|                                            |                                     |        |  |         |             |           |           |            |              |  |        |           |  |            |        |        |  |  |    |    |  
|------------------------------------------- | ----------------------------------- | ------ |  | ------- | ----------- | --------- | --------- | ---------- | ------------ |  | ------ | --------- |  | ---------- | ------ | ------ |  |  | -- | -- | -
|                                            |                                     |        |  |         |             | March 31, |           |            | December 31, |  |        | Ownership | 
|Unconsolidated Joint Ventures               |                                     | Market |  |         | Square Feet |           |           | 2005       |              |  | 2004   |           |  | Percentage |       
|                                            |                                     |        |  |         |             |           |           |            |              |  |        |           |  |            |       
|Co-Investment Joint Ventures                |                                     |        |  |         |             |           |           |            |              |  |        |           |  |            |        |        |  |  |    |   
|                                            | AMB-SGP Mexico, LLC                 |        |  | Various |             |           |           | 1,256,165  |              |  | $      | 10,839    |  |            | $      | 9,467  |  |  |    | 20 | %
|Other Industrial Operating Joint Ventures   |                                     |        |  |         |             |           | 9,035,939 |            |              |  | 42,188 |           |  |            | 41,371 |        |  |  | 52 | % 
|Other Industrial Development Joint Ventures |                                     |        |  |         |             |           | 1,209,267 |            |              |  | 6,007  |           |  |            | 4,328  |        |  |  | 49 | % 
|Other Investments  G.Accion                |                                     |        |  |         |             |           | N/A       |            |              |  | 46,093 |           |  |            |       |        |  |  | 43 | % 
|                                            |                                     |        |  |         |             |           |           |            |              |  |        |           |  |            |       
|                                            | Total Unconsolidated Joint Ventures |        |  |         |             |           |           | 11,501,371 |              |  | $      | 105,127   |  |            | $      | 55,166 |  |  |    | 45 | %
|                                            |                                     |        |  |         |             |           |           |            |              |  |        |           |  |            |       







|   |                  
|-- | -----------------
|9. | Partners Capital





14



---



##### 



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


March 31, 2005


(Unaudited)




|                      |  |                                          |  |                      |       |  |      |   |       | 
|--------------------- |  | ---------------------------------------- |  | -------------------- | ----- |  | ---- | - | ----- | 
|                      |  |                                          |  | For the Three Months |      
|                      |  |                                          |  | Ended March 31,      |      
|                      |  |                                          |  |                      |      
|Paying Entity         |  | Security                                 |  | 2005                 |       |  | 2004 |  
|                      |  |                                          |  |                      |       |  |      |  
|Operating Partnership |  | Common limited partnership units         |  | $                    | 0.440 |  |      | $ | 0.425 | 
|Operating Partnership |  | Series J preferred units                 |  | $                    | 0.994 |  |      | $ | 0.994 | 
|Operating Partnership |  | Series K preferred units                 |  | $                    | 0.994 |  |      | $ | 0.994 | 
|                     
|AMB Property II, L.P. |  | Class B common limited partnership units |  | $                    | 0.440 |  |      | $ | 0.425 | 
|AMB Property II, L.P. |  | Series D preferred units                 |  | $                    | 0.969 |  |      | $ | 0.969 | 
|AMB Property II, L.P. |  | Series E preferred units                 |  | $                    | 0.969 |  |      | $ | 0.969 | 
|AMB Property II, L.P. |  | Series F preferred units                 |  | $                    | 0.994 |  |      | $ | 0.994 | 
|AMB Property II, L.P. |  | Series H preferred units                 |  | $                    | 1.016 |  |      | $ | 1.016 | 
|AMB Property II, L.P. |  | Series I preferred units                 |  | $                    | 1.000 |  |      | $ | 1.000 | 
|AMB Property II, L.P. |  | Series N preferred units                 |  | $                    | 0.625 |  |      |   | n/a   | 



|    |                
|--- | ---------------
|10. | Income Per Unit



|                              |                                    |                                       |  |            |            |  |  |            |            | 
|----------------------------- | ---------------------------------- | ------------------------------------- |  | ---------- | ---------- |  |  | ---------- | ---------- | 
|                              |                                    | For the Three Months                  | 
|                              |                                    | Ended March 31,                       | 
|                              |                                    |                                       | 
|                              |                                    | 2005                                  |  |            | 2004       | 
|                              |                                    |                                       |  |            |            | 
|WEIGHTED AVERAGE COMMON UNITS |                                    |                                       |  |            |            |  |  |           
|                              | Basic                              |                                       |  | 87,857,933 |            |  |  | 86,447,303 |           
|                              | Stock options and restricted stock |                                       |  | 3,382,965  |            |  |  | 3,170,531  |           
|                              |                                    |                                       |  |            |            | 
|                              |                                    | Diluted weighted average common units |  |            | 91,240,898 |  |  |            | 89,617,834 | 
|                              |                                    |                                       |  |            |            | 



|    |                    
|--- | -------------------
|11. | Segment Information





15



---



##### 



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


March 31, 2005


(Unaudited)




|                                                          |                              |                                       |        |        |                      |  |        |        |         |  |        |        |         |  |        |        |         | 
|--------------------------------------------------------- | ---------------------------- | ------------------------------------- | ------ | ------ | -------------------- |  | ------ | ------ | ------- |  | ------ | ------ | ------- |  | ------ | ------ | ------- | 
|                                                          |                              | Rental Revenues                       |        |        | Property NOI(1)      | 
|                                                          |                              |                                       |        |        |                      | 
|                                                          |                              | For the Three Months                  |        |        | For the Three Months | 
|                                                          |                              | Ended March 31,                       |        |        | Ended March 31,      | 
|                                                          |                              |                                       |        |        |                      | 
|Segments                                                  |                              | 2005                                  |        |        | 2004                 |  |        | 2005   |         |  | 2004   |       
|                                                          |                              |                                       |        |        |                      |  |        |        |         |  |        |       
|Industrial domestic hub and gateway markets:              |                              |                                       |        |        |                      |  |        |        |         |  |        |        |         |  |        |       
|                                                          | Atlanta                      |                                       | $      | 5,457  |                      |  | $      | 7,695  |         |  | $      | 4,237  |         |  | $      | 6,143  |        
|                                                          | Chicago                      |                                       |        | 13,653 |                      |  |        | 11,059 |         |  |        | 9,206  |         |  |        | 7,364  |        
|                                                          | Dallas/Fort Worth            |                                       |        | 4,081  |                      |  |        | 3,865  |         |  |        | 2,808  |         |  |        | 2,599  |        
|                                                          | Los Angeles                  |                                       |        | 25,480 |                      |  |        | 24,864 |         |  |        | 20,157 |         |  |        | 19,947 |        
|                                                          | Northern New Jersey/New York |                                       |        | 19,542 |                      |  |        | 13,786 |         |  |        | 13,639 |         |  |        | 8,993  |        
|                                                          | San Francisco Bay Area       |                                       |        | 21,921 |                      |  |        | 23,314 |         |  |        | 17,435 |         |  |        | 18,636 |        
|                                                          | Miami                        |                                       |        | 8,366  |                      |  |        | 8,315  |         |  |        | 5,764  |         |  |        | 5,918  |        
|                                                          | Seattle                      |                                       |        | 10,838 |                      |  |        | 10,379 |         |  |        | 8,486  |         |  |        | 8,156  |        
|                                                          | On-Tarmac                    |                                       |        | 13,793 |                      |  |        | 14,261 |         |  |        | 7,970  |         |  |        | 7,864  |        
|                                                          |                              |                                       |        |        |                      |  |        |        |         |  |        |       
|                                                          |                              | Total industrial domestic hub markets |        |        | 123,131              |  |        |        | 117,538 |  |        |        | 89,702  |  |        |        | 85,620  | 
|Other domestic target markets                             |                              |                                       | 28,335 |        |                      |  | 26,938 |        |         |  | 19,991 |        |         |  | 19,330 |       
|Other domestic non-target markets                         |                              |                                       | 9,311  |        |                      |  | 7,542  |        |         |  | 7,010  |        |         |  | 5,433  |       
|International target markets                              |                              |                                       | 6,929  |        |                      |  | 5,951  |        |         |  | 5,554  |        |         |  | 4,721  |       
|Straight-line rents and amortization of lease intangibles |                              |                                       | 4,497  |        |                      |  | 4,168  |        |         |  | 4,497  |        |         |  | 4,168  |       
|Total retail and other markets                            |                              |                                       | 985    |        |                      |  | 1,739  |        |         |  | 636    |        |         |  | 1,003  |       
|Discontinued operations                                   |                              |                                       | (4,132 | )      |                      |  | (8,668 | )      |         |  | (2,763 | )      |         |  | (6,044 | )     
|                                                          |                              |                                       |        |        |                      |  |        |        |         |  |        |       
|                                                          |                              | Total                                 |        | $      | 169,056              |  |        | $      | 155,208 |  |        | $      | 124,627 |  |        | $      | 114,231 | 
|                                                          |                              |                                       |        |        |                      |  |        |        |         |  |        |       






|    |                                                                                                                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Property net operating income (NOI) is defined as
    rental revenue, including reimbursements, less property
    operating expenses, which excludes depreciation, amortization,
    general and administrative expenses and interest expense. For a
    reconciliation of NOI to net income, see the table below.



16



---



##### 



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


March 31, 2005


(Unaudited)




|                                                    |            |                      |         |        |      |   |         |        | 
|--------------------------------------------------- | ---------- | -------------------- | ------- | ------ | ---- | - | ------- | ------ | 
|                                                    |            | For the Three Months |        
|                                                    |            | Ended March 31,      |        
|                                                    |            |                      |        
|                                                    |            | 2005                 |         |        | 2004 |  
|                                                    |            |                      |         |        |      |  
|Property NOI                                        |            | $                    | 124,627 |        |      | $ | 114,231 |       
|Private capital income                              |            |                      | 3,318   |        |      |   | 2,429   |       
|Depreciation and amortization                       |            |                      | (43,485 | )      |      |   | (37,255 | )     
|General and administrative                          |            |                      | (18,799 | )      |      |   | (14,567 | )     
|Fund costs                                          |            |                      | (364    | )      |      |   | (309    | )     
|Equity in earnings of unconsolidated joint ventures |            |                      | 1,242   |        |      |   | 1,709   |       
|Other income and expenses, net                      |            |                      | (566    | )      |      |   | 1,481   |       
|Gains from dispositions of real estate              |            |                      | 1,301   |        |      |   |        |       
|Development profits, net of taxes                   |            |                      | 17,949  |        |      |   |        |       
|Interest, including amortization                    |            |                      | (40,896 | )      |      |   | (39,018 | )     
|Total minority interests share of income           |            |                      | (24,452 | )      |      |   | (11,936 | )     
|Total discontinued operations                       |            |                      | 31,005  |        |      |   | 2,231   |       
|                                                    |            |                      |         |        |      |  
|                                                    | Net income |                      | $       | 50,880 |      |   | $       | 18,996 | 
|                                                    |            |                      |         |        |      |  



|                                             |                              |                                       |              |         |                   |           |         |         |           |           | 
|-------------------------------------------- | ---------------------------- | ------------------------------------- | ------------ | ------- | ----------------- | --------- | ------- | ------- | --------- | --------- | 
|                                             |                              | Total Assets as of                    |             
|                                             |                              |                                       |             
|                                             |                              | March 31, 2005                        |              |         | December 31, 2004 |          
|                                             |                              |                                       |              |         |                   |          
|Industrial domestic hub and gateway markets: |                              |                                       |              |         |                   |           |         |        
|                                             | Atlanta                      |                                       | $            | 186,536 |                   |           | $       | 204,554 |          
|                                             | Chicago                      |                                       |              | 506,105 |                   |           |         | 479,919 |          
|                                             | Dallas/Fort Worth            |                                       |              | 144,375 |                   |           |         | 143,953 |          
|                                             | Los Angeles                  |                                       |              | 894,630 |                   |           |         | 922,401 |          
|                                             | Northern New Jersey/New York |                                       |              | 810,381 |                   |           |         | 775,784 |          
|                                             | San Francisco Bay Area       |                                       |              | 776,656 |                   |           |         | 788,120 |          
|                                             | Miami                        |                                       |              | 367,427 |                   |           |         | 363,694 |          
|                                             | Seattle                      |                                       |              | 370,976 |                   |           |         | 377,142 |          
|                                             | On-Tarmac                    |                                       |              | 257,546 |                   |           |         | 239,377 |          
|                                             |                              |                                       |              |         |                   |          
|                                             |                              | Total industrial domestic hub markets |              |         | 4,314,632         |           |         |         | 4,294,944 |          
|Other domestic target markets                |                              |                                       | 750,569      |         |                   |           | 825,930 |        
|Other non-target markets and other           |                              |                                       | 302,275      |         |                   |           | 308,428 |        
|International target markets                 |                              |                                       | 744,610      |         |                   |           | 684,184 |        
|Total retail and other markets               |                              |                                       | 8,777        |         |                   |           | 15,915  |        
|Investments in unconsolidated joint ventures |                              |                                       | 105,127      |         |                   |           | 55,166  |        
|Non-segment
    assets(1)                    |                              |                                       | 329,094      |         |                   |           | 202,376 |        
|                                             |                              |                                       |              |         |                   |          
|                                             |                              |                                       | Total assets |         | $                 | 6,555,084 |         |         | $         | 6,386,943 | 
|                                             |                              |                                       |              |         |                   |          






|    |                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Non-segment assets consist of corporate assets including cash,
    investments in unconsolidated joint ventures and mortgages
    receivable.

17



---



##### 



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


March 31, 2005


(Unaudited)




|    |                              
|--- | -----------------------------
|12. | Commitments and Contingencies



| |            
| | -----------
| | Commitments

Lease Commitments.


Standby Letters of Credit.


Guarantees.


Performance and Surety Bonds.


Promoted Interests and Other Contractual Obligations.




| |              
| | -------------
| | Contingencies

Litigation.


Environmental Matters.


General Uninsured Losses.


18



---



##### 



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


March 31, 2005


(Unaudited)




Captive Insurance Company.


19



---



##### 








|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 2. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

Some of the information included in this Quarterly Report on
Form 10-Q contains forward-looking statements, which are
made pursuant to the safe-harbor provisions of Section 21E
of the Securities Exchange Act of 1934, as amended, and
Section 27A of the Securities Act of 1933, as amended.
Because these forward-looking statements involve risks and
uncertainties, there are important factors that could cause our
actual results to differ materially from those in the
forward-looking statements, and you should not rely on the
forward-looking statements as predictions of future events. The
events or circumstances reflected in forward-looking statements
might not occur. You can identify forward-looking statements by
the use of forward-looking terminology such as
believes, expects, may,
will, should, seeks,
approximately, intends,
plans, pro forma, estimates
or anticipates, or the negative of these words and
phrases, or similar words or phrases. You can also identify
forward-looking statements by discussions of strategy, plans or
intentions. Forward-looking statements involve numerous risks
and uncertainties and you should not rely upon them as
predictions of future events. There is no assurance that the
events or circumstances reflected in forward-looking statements
will occur or be achieved. Forward-looking statements are
necessarily dependent on assumptions, data or methods that may
be incorrect or imprecise and we may not be able to realize
them.


The following factors, among others, could cause actual
results and future events to differ materially from those set
forth or contemplated in the forward-looking statements:




| |   |                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | changes in general economic conditions or in the real estate
    sector;                                                                                                              
|
| |  | non-renewal of leases by customers or renewal at lower than
    expected rent;                                                                                                        
|
| |  | difficulties in identifying properties to acquire and in
    effecting acquisitions on advantageous terms and the failure of
    acquisitions to perform as we expect;                
|
| |  | risks and uncertainties affecting property development and
    renovation (including construction delays, cost overruns, our
    inability to obtain necessary permits and financing);
|
| |  | risks of doing business internationally, including
    unfamiliarity with new markets and currency risks;                                                                             
|
| |  | a downturn in Californias economy or real estate
    conditions;                                                                                                                     
|
| |  | losses in excess of our insurance coverage;                                                                                                                                           
|
| |  | our failure to divest of properties on advantageous terms or
    to timely reinvest proceeds from any such divestitures;                                                              
|
| |  | unknown liabilities acquired in connection with acquired
    properties or otherwise;                                                                                                 
|
| |  | risks associated with using debt to fund acquisitions and
    development, including re-financing risks;                                                                              
|
| |  | our failure to obtain necessary financing;                                                                                                                                            
|
| |  | changes in local, state and federal regulatory requirements;
    and                                                                                                                  
|
| |  | environmental uncertainties.                                                                                                                                                          

Our success also depends upon economic trends generally,
various market conditions and fluctuations and those other risk
factors discussed under the heading Managements
Discussion and Analysis of Financial Condition and Results of
Operations  Business Risks and elsewhere in our
Annual Report on Form 10-K for the year ended
December 31, 2004. We caution you not to place undue
reliance on forward-looking statements, which reflect our
analysis only and speak as of the date of this report or as of
the dates indicated in the statements. We assume no obligation
to update or supplement forward-looking statements.




GENERAL




Managements Overview




20



---



##### 







|                                                     |                                                      |              |  |           |             |  |  |                |   |  |  |           |   
|---------------------------------------------------- | ---------------------------------------------------- | ------------ |  | --------- | ----------- |  |  | -------------- | - |  |  | --------- | --
|                                                     |                                                      | U.S. Hub and |  |           |             |  | 
|                                                     |                                                      | Gateway      |  |           | Total Other |  |  | Total/Weighted |  
|Property Data                                        |                                                      | Markets(1)   |  |           | Markets     |  |  | Average        |  
|                                                     |                                                      |              |  |           |             |  |  |                |  
|As of and for the three months ended March 31, 2005: |                                                      |              |  |           |             |  |  |                |   |  |  |          
|                                                     | % of total rentable square feet                      |              |  | 74.8      | %           |  |  | 25.2           | % |  |  | 100.0     | % 
|                                                     | Occupancy percentage at year end                     |              |  | 95.2      | %           |  |  | 94.6           | % |  |  | 95.1      | % 
|                                                     | Same space square footage leased                     |              |  | 3,574,340 |             |  |  | 542,155        |   |  |  | 4,116,495 |   
|                                                     | Rent increases (decreases) on renewals and rollovers |              |  | (9.8      | )%          |  |  | 1.5            | % |  |  | (8.6      | )%
|As of and for the three months ended March 31, 2004: |                                                      |              |  |           |             |  |  |                |   |  |  |          
|                                                     | % of total rentable square feet                      |              |  | 74.6      | %           |  |  | 25.4           | % |  |  | 100.0     | % 
|                                                     | Occupancy percentage at year end                     |              |  | 93.2      | %           |  |  | 91.2           | % |  |  | 92.7      | % 
|                                                     | Same space square footage leased                     |              |  | 3,842,026 |             |  |  | 617,077        |   |  |  | 4,459,103 |   
|                                                     | Rent increases (decreases) on renewals and rollovers |              |  | (15.7     | )%          |  |  | 8.0            | % |  |  | (14.7     | )%






|    |                                                                                                                                                                                                         
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Our U.S. hub and gateway markets include on-tarmac and
    Atlanta, Chicago, Dallas/ Fort Worth, Los Angeles, Northern
    New Jersey/ New York City, the San Francisco Bay Area,
    Miami and Seattle.







21



---



##### 













Summary of Key Transactions






| |   |                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Acquired six buildings in the United States, aggregating
    approximately 0.8 million square feet, for
    $77.8 million, through three of our co-investment joint
    ventures;                                                      
|
| |  | Acquired an approximate 43% unconsolidated equity interest in
    G.Accion, one of Mexicos largest real estate companies for
    $46.1 million;                                                                                       
|
| |  | Commenced seven development projects in North America and
    Amsterdam, totaling 0.8 million square feet with an
    estimated total investment of approximately $90.0 million
    (using exchange rates in effect at March 31, 2005);
|
| |  | Sold two land parcels and one development project available for
    sale, aggregating approximately 24,000 square feet, for an
    aggregate price of $42.9 million; and                                                               
|
| |  | Divested ourselves of 24 industrial buildings, aggregating
    approximately 1.5 million square feet, for an aggregate
    price of $142.1 million.                                                                                    

22



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##### 









| |   |                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Assumed $14.3 million of debt for our co-investment joint
    ventures at a weighted average interest rate of 8.0%;                                          
|
| |  | Obtained $13.6 million of debt (using exchange rates at
    March 31, 2005) with a weighted average interest rate of
    4.7% for international acquisitions.



Critical Accounting Policies




THE COMPANY












23



---



##### 







www.amb.com.


Operating Strategy






Growth Strategies


Growth Through Operations




Growth Through Acquisitions and Capital Redeployment




24



---



##### 







Growth Through Development






Growth Through Global Expansion






Growth Through Co-Investments




25



---



##### 





RESULTS OF OPERATIONS






For the Three Months ended March 31, 2005 and 2004
(dollars in millions):


|                       |                          |                       |                |     |       |       |     |          |       |       |          |     |      |      |      |      |       |     |  
|---------------------- | ------------------------ | --------------------- | -------------- | --- | ----- | ----- | --- | -------- | ----- | ----- | -------- | --- | ---- | ---- | ---- | ---- | ----- | --- | -
|Revenues               |                          | 2005                  |                |     | 2004  |       |     | $ Change |       |       | % Change |    
|                       |                          |                       |                |     |       |       |     |          |       |       |          |    
|Rental revenues        |                          |                       |                |     |       |       |     |          |       |       |          |     |      |      |      |     
|                       | U.S. industrial:         |                       |                |     |       |       |     |          |       |       |          |     |      |      |      |      |      
|                       |                          | Same store            |                | $   | 141.2 |       |     | $        | 143.2 |       |          | $   | (2.0 | )    |      |      | (1.4  | )% 
|                       |                          | 2004 acquisitions     |                |     | 13.8  |       |     |          | 1.5   |       |          |     | 12.3 |      |      |      | 820.0 | %  
|                       |                          | 2005 acquisitions     |                |     | 0.7   |       |     |          |      |       |          |     | 0.7  |      |      |      |      | %  
|                       |                          | Development           |                |     | 2.0   |       |     |          | 3.1   |       |          |     | (1.1 | )    |      |      | (35.5 | )% 
|                       |                          | Other industrial      |                |     | 3.6   |       |     |          | 0.6   |       |          |     | 3.0  |      |      |      | 500.0 | %  
|                       | International industrial |                       |                | 6.9 |       |       |     | 5.9      |       |       |          | 1.0 |      |      |      | 16.9 | %    
|                       | Retail                   |                       |                | 0.9 |       |       |     | 0.9      |       |       |          |    |      |      |      |     | %    
|                       |                          |                       |                |     |       |       |     |          |       |       |          |    
|                       |                          | Total rental revenues |                |     | 169.1 |       |     |          | 155.2 |       |          |     | 13.9 |      |      |      | 9.0   | %  
|Private capital income |                          |                       | 3.3            |     |       |       | 2.4 |          |       |       | 0.9      |     |      |      | 37.5 | %   
|                       |                          |                       |                |     |       |       |     |          |       |       |          |    
|                       |                          |                       | Total revenues |     | $     | 172.4 |     |          | $     | 157.6 |          |     | $    | 14.8 |      |      |       | 9.4 | %
|                       |                          |                       |                |     |       |       |     |          |       |       |          |    



26



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##### 



|                              |                          |                                |                          |      |      |       |      |          |      |      |          |      |      |      |      |       |       |      |  
|----------------------------- | ------------------------ | ------------------------------ | ------------------------ | ---- | ---- | ----- | ---- | -------- | ---- | ---- | -------- | ---- | ---- | ---- | ---- | ----- | ----- | ---- | -
|Costs and Expenses            |                          | 2005                           |                          |      | 2004 |       |      | $ Change |      |      | % Change |     
|                              |                          |                                |                          |      |      |       |      |          |      |      |          |     
|Property operating costs:     |                          |                                |                          |      |      |       |      |          |      |      |          |      |      |      |      |      
|                              | Rental expenses          |                                | $                        | 24.6 |      |       | $    | 22.7     |      |      | $        | 1.9  |      |      |      | 8.4   | %    
|                              | Real estate taxes        |                                |                          | 19.8 |      |       |      | 18.3     |      |      |          | 1.5  |      |      |      | 8.2   | %    
|                              |                          |                                |                          |      |      |       |      |          |      |      |          |     
|                              |                          | Total property operating costs |                          | $    | 44.4 |       |      | $        | 41.0 |      |          | $    | 3.4  |      |      |       | 8.3   | %   
|                              |                          |                                |                          |      |      |       |      |          |      |      |          |     
|Property operating costs      |                          |                                |                          |      |      |       |      |          |      |      |          |      |      |      |      |      
|                              | U.S. industrial:         |                                |                          |      |      |       |      |          |      |      |          |      |      |      |      |       |      
|                              |                          | Same store                     |                          | $    | 38.4 |       |      | $        | 37.9 |      |          | $    | 0.5  |      |      |       | 1.3   | %   
|                              |                          | 2004 acquisitions              |                          |      | 3.5  |       |      |          | 0.5  |      |          |      | 3.0  |      |      |       | 600.0 | %   
|                              |                          | 2005 acquisitions              |                          |      | 0.1  |       |      |          |     |      |          |      | 0.1  |      |      |       |      | %   
|                              |                          | Development                    |                          |      | 0.7  |       |      |          | 1.0  |      |          |      | (0.3 | )    |      |       | (30.0 | )%  
|                              |                          | Other industrial               |                          |      | 0.1  |       |      |          | 0.1  |      |          |      |     |      |      |       |      | %   
|                              | International industrial |                                |                          | 1.4  |      |       |      | 1.2      |      |      |          | 0.2  |      |      |      | 16.7  | %    
|                              | Retail                   |                                |                          | 0.2  |      |       |      | 0.3      |      |      |          | (0.1 | )    |      |      | (33.3 | )%   
|                              |                          |                                |                          |      |      |       |      |          |      |      |          |     
|                              |                          | Total property operating costs |                          |      | 44.4 |       |      |          | 41.0 |      |          |      | 3.4  |      |      |       | 8.3   | %   
|Depreciation and amortization |                          |                                | 43.5                     |      |      |       | 37.2 |          |      |      | 6.3      |      |      |      | 16.9 | %    
|General and administrative    |                          |                                | 18.8                     |      |      |       | 14.6 |          |      |      | 4.2      |      |      |      | 28.8 | %    
|Fund costs                    |                          |                                | 0.4                      |      |      |       | 0.3  |          |      |      | 0.1      |      |      |      | 33.3 | %    
|                              |                          |                                |                          |      |      |       |      |          |      |      |          |     
|                              |                          |                                | Total costs and expenses |      | $    | 107.1 |      |          | $    | 93.1 |          |      | $    | 14.0 |      |       |       | 15.0 | %
|                              |                          |                                |                          |      |      |       |      |          |      |      |          |     



|                                                         |                                        |      |       |       |      |   |       |          |   |   |          |      |  |  |        |      |  
|-------------------------------------------------------- | -------------------------------------- | ---- | ----- | ----- | ---- | - | ----- | -------- | - | - | -------- | ---- |  |  | ------ | ---- | -
|Other Income and (Expenses)                              |                                        | 2005 |       |       | 2004 |   |       | $ Change |   |   | % Change |     
|                                                         |                                        |      |       |       |      |   |       |          |   |   |          |     
|Equity in earnings of unconsolidated joint ventures, net |                                        | $    | 1.2   |       |      | $ | 1.7   |          |   | $ | (0.5     | )    |  |  | (29.4  | )%  
|Other income and expenses, net                           |                                        |      | (0.5  | )     |      |   | 1.5   |          |   |   | (2.0     | )    |  |  | (133.3 | )%  
|Gains from dispositions of real estate interests         |                                        |      | 1.3   |       |      |   |      |          |   |   | 1.3      |      |  |  |       | %   
|Development profits, net of taxes                        |                                        |      | 17.9  |       |      |   |      |          |   |   | 17.9     |      |  |  |       | %   
|Interest expense, including amortization                 |                                        |      | (40.9 | )     |      |   | (39.0 | )        |   |   | (1.9     | )    |  |  | (4.9   | )%  
|                                                         |                                        |      |       |       |      |   |       |          |   |   |          |     
|                                                         | Total other income and (expenses), net |      | $     | (21.0 | )    |   | $     | (35.8    | ) |   | $        | 14.8 |  |  |        | 41.3 | %
|                                                         |                                        |      |       |       |      |   |       |          |   |   |          |     



|                                                                              |                               |      |      |      |      |   |      |          |  |   |          |      |  |  |         |         |  
|----------------------------------------------------------------------------- | ----------------------------- | ---- | ---- | ---- | ---- | - | ---- | -------- |  | - | -------- | ---- |  |  | ------- | ------- | -
|Discontinued Operations                                                       |                               | 2005 |      |      | 2004 |   |      | $ Change |  |   | % Change |     
|                                                                              |                               |      |      |      |      |   |      |          |  |   |          |     
|Income attributable to discontinued operations, net of minority
    interests |                               | $    | 1.4  |      |      | $ | 2.5  |          |  | $ | (1.1     | )    |  |  | (44.0   | )%     
|Gains (loss) from dispositions of real estate, net of minority
    interests  |                               |      | 29.6 |      |      |   | (0.3 | )        |  |   | 29.9     |      |  |  | 9,966.7 | %      
|                                                                              |                               |      |      |      |      |   |      |          |  |   |          |     
|                                                                              | Total discontinued operations |      | $    | 31.0 |      |   | $    | 2.2      |  |   | $        | 28.8 |  |  |         | 1,309.1 | %
|                                                                              |                               |      |      |      |      |   |      |          |  |   |          |     

27



---



##### 





|                             |  |      |      |   |      |   |      |          |  |          |   |  |  |  |   |  
|---------------------------- |  | ---- | ---- | - | ---- | - | ---- | -------- |  | -------- | - |  |  |  | - | -
|Preferred Units              |  | 2005 |      |   | 2004 |   |      | $ Change |  | % Change |  
|                             |  |      |      |   |      |   |      |          |  |          |  
|Preferred unit distributions |  | $    | (3.4 | ) |      | $ | (3.4 | )        |  | $        |  |  |  |  |  | %

LIQUIDITY AND CAPITAL RESOURCES


Balance Sheet Strategy.






| |   |                                                                                                                                         
| | - | ----------------------------------------------------------------------------------------------------------------------------------------
| |  | retained earnings and cash flow from operations;                                                                                        
|
| |  | borrowings under our unsecured credit facilities;                                                                                       
|
| |  | other forms of secured or unsecured financing;                                                                                          
|
| |  | proceeds from debt or limited partnership unit offerings
    (including issuances of limited partnership units by our
    subsidiaries);
|
| |  | net proceeds from divestitures of properties;                                                                                           
|
| |  | private capital from co-investment partners; and                                                                                        
|
| |  | contribution of properties and completed development projects to
    our co-investment joint ventures.                                  





| |   |                                                                                 
| | - | --------------------------------------------------------------------------------
| |  | working capital;                                                                
|
| |  | development, expansion and renovation of properties;                            
|
| |  | acquisitions, including our global expansion;                                   
|
| |  | debt service; and                                                               
|
| |  | distributions on outstanding common and preferred limited
    partnership units.



Capital Resources


Property Divestitures.


Development Sales and Contributions.


Properties Held for Divestiture.


28



---



##### 





Mortgage and Loan Receivables.


Co-investment Joint Ventures.




|                                                 |  |                                                                   |  |             |    |   |                   |   |         | 
|------------------------------------------------ |  | ----------------------------------------------------------------- |  | ----------- | -- | - | ----------------- | - | ------- | 
|                                                 |  |                                                                   |  | Our         |    |   |                  
|                                                 |  |                                                                   |  | Approximate |    |   |                  
|                                                 |  |                                                                   |  | Ownership   |    |   | Original Planned  |  
|Consolidated co-investment Joint Venture         |  | Joint Venture Partner                                             |  | Percentage  |    |   | Capitalization(1) |  
|                                                 |  |                                                                   |  |             |    |   |                   |  
|AMB/Erie, L.P.                                   |  | Erie Insurance Company and affiliates                             |  |             | 50 | % |                   | $ | 200,000 | 
|AMB Institutional Alliance Fund I, L.P.          |  | AMB Institutional Alliance REIT I,
    Inc.(2)                    |  |             | 21 | % |                   | $ | 420,000 | 
|AMB Partners II, L.P.                            |  | City and County of San Francisco Employees Retirement
    System |  |             | 20 | % |                   | $ | 580,000 | 
|AMB-SGP, L.P.                                    |  | Industrial JV Pte
    Ltd(3)                                      |  |             | 50 | % |                   | $ | 425,000 | 
|AMB Institutional Alliance Fund II, L.P.         |  | AMB Institutional Alliance REIT II,
    Inc.(4)                   |  |             | 20 | % |                   | $ | 489,000 | 
|AMB-AMS,
    L.P.(5)                             |  | PMT, SPW and
    TNO(6)                                           |  |             | 39 | % |                   | $ | 200,000 | 
|AMB Institutional Alliance Fund III,
    L.P.(7) |  | AMB Institutional Alliance REIT III, Inc.                         |  |             | 20 | % |                   |   | N/A     | 






|    |                                                                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Planned capitalization includes anticipated debt and both
    partners expected equity contributions.                                                                                                    
|   
|(2) | Comprised of 16 institutional investors as stockholders as of
    March 31, 2005.                                                                                                                         
|   
|(3) | A subsidiary of the real estate investment subsidiary of the
    Government of Singapore Investment Corporation.                                                                                          
|   
|(4) | Comprised of 13 institutional investors as stockholders and one
    third-party limited partner as of March 31, 2005.                                                                                     
|   
|(5) | AMB-AMS, L.P. is a co-investment partnership with three Dutch
    pension funds advised by Mn Services NV.                                                                                                
|   
|(6) | PMT is Stichting Pensioenfonds Metaal en Techniek, SPW is
    Stichting Pensioenfonds voor de Woningcorporaties and TNO is
    Stichting Pensioenfonds TNO.                                               
|   
|(7) | AMB Institutional Alliance Fund III, L.P. is an open-ended
    co-investment partnership formed in 2004 with institutional
    investors, which invest through a private real estate investment
    trust.

|                                           |  |                       |                                    |             |            |  |                  |                   |  |   |         | 
|------------------------------------------ |  | --------------------- | ---------------------------------- | ----------- | ---------- |  | ---------------- | ----------------- |  | - | ------- | 
|                                           |  |                       |                                    | Our         |            |  |                 
|                                           |  |                       |                                    | Approximate |            |  |                 
|                                           |  |                       |                                    | Ownership   |            |  | Original Planned |                  
|Unconsolidated co-investment Joint Venture |  | Joint Venture Partner |                                    |             | Percentage |  |                  | Capitalization(1) | 
|                                           |  |                       |                                    |             |            |  |                  |                   | 
|AMB-SGP Mexico, LLC                        |  |                       | Industrial (Mexico) JV Pte Ltd (2) |             |            |  | 20               | %                 |  | $ | 715,000 | 






|    |                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------
|(1) | Planned capitalization includes anticipated debt and both
    partners expected equity contributions.
|   
|(2) | A real estate investment subsidiary of the Government of
    Singapore Investment Corporation.        

Partners Capital.


29



---



##### 







Debt.








Credit Facilities.




30



---



##### 







31



---



##### 





|                                                                     |                      |                                 |                         |         |         |         |          |             |         |           |           |           |           |               |       |       |       |       |         |         |         |         |          |           |           |           | 
|-------------------------------------------------------------------- | -------------------- | ------------------------------- | ----------------------- | ------- | ------- | ------- | -------- | ----------- | ------- | --------- | --------- | --------- | --------- | ------------- | ----- | ----- | ----- | ----- | ------- | ------- | ------- | ------- | -------- | --------- | --------- | --------- | 
|Debt                                                                 |                     
|                                                                     |                     
|                                                                     |                      | Our                             |                         |         | Joint   |         |          | Unsecured   |         |           |          
|                                                                     |                      | Secured                         |                         |         | Venture |         |          | Senior Debt |         |           | Unsecured |           |           | Credit        |       |       | Total |      
|                                                                     |                      | Debt(4)                         |                         |         | Debt    |         |          | Securities  |         |           | Debt      |           |           | Facilities(1) |       |       | Debt  |      
|                                                                     |                      |                                 |                         |         |         |         |          |             |         |           |           |           |           |               |       |       |       |      
|2005                                                                 |                      | $                               | 41,794                  |         |         | $       | 52,372   |             |         | $         | 250,000   |           |           | $             | 488   |       |       | $     |        |         |         | $       | 344,654  |          
|2006                                                                 |                      |                                 | 80,812                  |         |         |         | 73,060   |             |         |           | 75,000    |           |           |               | 698   |       |       |       | 32,356  |         |         |         | 261,926  |          
|2007                                                                 |                      |                                 | 16,535                  |         |         |         | 68,301   |             |         |           | 75,000    |           |           |               | 752   |       |       |       | 390,260 |         |         |         | 550,848  |          
|2008                                                                 |                      |                                 | 41,756                  |         |         |         | 174,701  |             |         |           | 175,000   |           |           |               | 810   |       |       |       |        |         |         |         | 392,267  |          
|2009                                                                 |                      |                                 | 5,699                   |         |         |         | 131,877  |             |         |           | 100,000   |           |           |               | 873   |       |       |       |        |         |         |         | 238,449  |          
|2010                                                                 |                      |                                 | 71,521                  |         |         |         | 149,934  |             |         |           | 75,000    |           |           |               | 941   |       |       |       |        |         |         |         | 297,396  |          
|2011                                                                 |                      |                                 | 77,180                  |         |         |         | 412,155  |             |         |           | 75,000    |           |           |               | 1,014 |       |       |       |        |         |         |         | 565,349  |          
|2012                                                                 |                      |                                 | 151,962                 |         |         |         | 177,969  |             |         |           |          |           |           |               | 1,093 |       |       |       |        |         |         |         | 331,024  |          
|2013                                                                 |                      |                                 | 2,307                   |         |         |         | 117,346  |             |         |           | 53,940    |           |           |               | 920   |       |       |       |        |         |         |         | 174,513  |          
|2014                                                                 |                      |                                 | 12,903                  |         |         |         | 3,777    |             |         |           |          |           |           |               | 616   |       |       |       |        |         |         |         | 17,296   |          
|Thereafter                                                           |                      |                                 | 6,799                   |         |         |         | 33,358   |             |         |           | 125,000   |           |           |               | 664   |       |       |       |        |         |         |         | 165,821  |          
|                                                                     |                      |                                 |                         |         |         |         |          |             |         |           |           |           |           |               |       |       |       |      
|                                                                     | Subtotal             |                                 |                         | 509,268 |         |         |          | 1,394,850   |         |           |           | 1,003,940 |           |               |       | 8,869 |       |       |         | 422,616 |         |         |          | 3,339,543 |          
|                                                                     | Unamortized premiums |                                 |                         | 3,480   |         |         |          | 8,104       |         |           |           |          |           |               |       |      |       |       |         |        |         |         |          | 11,584    |          
|                                                                     |                      |                                 |                         |         |         |         |          |             |         |           |           |           |           |               |       |       |       |      
|                                                                     |                      |                                 | Total consolidated debt |         |         | 512,748 |          |             |         | 1,402,954 |           |           |           | 1,003,940     |       |       |       | 8,869 |         |         |         | 422,616 |          |           |           | 3,351,127 | 
|Our share of unconsolidated joint venture
    debt(2)                |                      |                                 |                        |         |         |         | 145,377  |             |         |           |          |           |           |               |      |       |       |       |        |         |         |         | 145,377  |          
|                                                                     |                      |                                 |                         |         |         |         |          |             |         |           |           |           |           |               |       |       |       |      
|                                                                     |                      |                                 | Total debt              |         |         | 512,748 |          |             |         | 1,548,331 |           |           |           | 1,003,940     |       |       |       | 8,869 |         |         |         | 422,616 |          |           |           | 3,496,504 | 
|Joint venture partners share of consolidated joint venture
    debt |                      |                                 |                        |         |         |         | (969,010 | )           |         |           |          |           |           |               |      |       |       |       |        |         |         |         | (969,010 | )        
|                                                                     |                      |                                 |                         |         |         |         |          |             |         |           |           |           |           |               |       |       |       |      
|                                                                     |                      | Our share of total debt
    (3) |                         | $       | 512,748 |         |          | $           | 579,321 |           |           | $         | 1,003,940 |               |       | $     | 8,869 |       |         | $       | 422,616 |         |          | $         | 2,527,494 |          
|                                                                     |                      |                                 |                         |         |         |         |          |             |         |           |           |           |           |               |       |       |       |      
|Weighed average interest rate                                        |                      |                                 | 5.1                     | %       |         |         | 6.4      | %           |         |           | 6.6       | %         |           |               | 7.5   | %     |       |       | 2.0     | %       |         |         | 5.7      | %        
|Weighed average maturity (in years)                                  |                      |                                 | 5.1                     |         |         |         | 5.8      |             |         |           | 4.3       |           |           |               | 9.6   |       |       |       | 2.1     |         |         |         | 4.8      |          






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes $98.0 million, $221.3 million and
    $5.7 million in Euro, Yen and Singapore dollar-based
    borrowings, respectively, translated to U.S. dollars using
    the functional exchange rates in effect on March 31, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   
|(2) | The weighted average interest and maturity for the
    unconsolidated joint venture debt were 5.3% and 4.6 years,
    respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   
|(3) | Our share of total debt is the pro rata portion of the total
    debt based on our percentage of equity interest in each of the
    consolidated or unconsolidated ventures holding the debt. We
    believe that our share of total debt is a meaningful
    supplemental measure, which enables both management and
    investors to analyze our leverage and to compare our leverage to
    that of other companies. In addition, it allows for a more
    meaningful comparison of our debt to that of other companies
    that do not consolidate their joint ventures. Our share of total
    debt is not intended to reflect our actual liability should
    there be a default under any or all of such loans or a
    liquidation of the joint ventures. The above table reconciles
    our share of total debt to total consolidated debt, a GAAP
    financial measure.
|   
|(4) | Our secured debt and joint venture debt include debt related to
    international assets in the amount of $294.4 million. Of
    this, $210.3 million is associated with assets located in
    Asia and the remaining $84.1 million is related to assets
    located in Europe.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

|                                        |       |             |            |            |          |   |       |          |  |   |           |           | 
|--------------------------------------- | ----- | ----------- | ---------- | ---------- | -------- | - | ----- | -------- |  | - | --------- | --------- | 
|Market Capital                          |      
|                                        |      
|                                        |       | Units       |            |            | Market   |   |       | Market   | 
|Security                                |       | Outstanding |            |            | Price(1) |   |       | Value(1) | 
|                                        |       |             |            |            |          |   |       |          | 
|Common units                            |       |             | 83,733,896 |            |          | $ | 37.65 |          |  | $ | 3,152,581 |          
|Common limited partnership
    units(2) |       |             | 4,719,823  |            |          | $ | 37.65 |          |  |   | 177,701   |          
|                                        |       |             |            |            |          |   |       |          | 
|                                        | Total |             |            | 88,453,719 |          |   |       |          |  |   | $         | 3,330,282 | 
|                                        |       |             |            |            |          |   |       |          | 






|    |                                                                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Assumes that our general partnership units are exchanged for AMB
    Property Corporations common stock on a one-for-one basis
    because there is no public market for our units.

32



---



##### 





|    |                                                                                                                
|--- | ---------------------------------------------------------------------------------------------------------------
|(2) | Includes 145,548 class B common limited partnership units
    issued by AMB Property II, L.P. in November 2003.

|                         |                        |              |      |      |             |   |        |            |  |  |                               |  | 
|------------------------ | ---------------------- | ------------ | ---- | ---- | ----------- | - | ------ | ---------- |  |  | ----------------------------- |  | 
|Preferred Units          |                       
|                         |                       
|                         |                        | Distribution |      |      | Liquidation |   |        | Redemption | 
|Security                 |                        | Rate         |      |      | Preference  |   |        | Provisions | 
|                         |                        |              |      |      |             |   |        |            | 
|Series D preferred units |                        |              | 7.75 | %    |             | $ | 79,767 |            |  |  | May 2004                      | 
|Series E preferred units |                        |              | 7.75 | %    |             |   | 11,022 |            |  |  | August 2004                   | 
|Series F preferred units |                        |              | 7.95 | %    |             |   | 10,057 |            |  |  | March 2005                    | 
|Series H preferred units |                        |              | 8.13 | %    |             |   | 42,000 |            |  |  | September 2005                | 
|Series I preferred units |                        |              | 8.00 | %    |             |   | 25,500 |            |  |  | March 2006                    | 
|Series J preferred units |                        |              | 7.95 | %    |             |   | 40,000 |            |  |  | September 2006                | 
|Series K preferred units |                        |              | 7.95 | %    |             |   | 40,000 |            |  |  | April 2007                    | 
|Series N preferred units |                        |              | 5.00 | %    |             |   | 36,479 |            |  |  | September 2006-September 2009 | 
|Series L preferred units |                        |              | 6.50 | %    |             |   | 50,000 |            |  |  | June 2008                     | 
|Series M preferred units |                        |              | 6.75 | %    |             |   | 57,500 |            |  |  | November 2008                 | 
|                         |                        |              |      |      |             |   |        |            | 
|                         | Weighted average/total |              |      | 7.29 | %           |   | $      | 392,325    |  |  |                               |  | 
|                         |                        |              |      |      |             |   |        |            | 

|                                                                                              |  |  |      |  
|--------------------------------------------------------------------------------------------- |  |  | ---- | -
|Capitalization Ratios as of March 31, 2005                                                    | 
|                                                                                              | 
|Total debt-to-total market
    capitalization(1)                                              |  |  | 48.4 | %
|Our share of total debt-to-our share of total market
    capitalization(1)                    |  |  | 40.4 | %
|Total debt plus preferred-to-total market capitalization
    (1)                              |  |  | 53.8 | %
|Our share of total debt plus preferred-to-our share of total
    market
    capitalization(1) |  |  | 46.7 | %
|Our share of total debt-to-our share of total book
    capitalization(1)                      |  |  | 55.1 | %






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Our definition of total market capitalization is
    total debt plus preferred equity liquidation preferences plus
    market equity. Our definition of our share of total market
    capitalization is our share of total debt plus preferred
    equity liquidation preferences plus market equity. Our
    definition of market equity is the total number of
    outstanding shares of our general partners common stock
    and our common limited partnership units multiplied by the
    closing price per share of our general partners common
    stock as of March 31, 2005. Our definition of
    preferred is preferred equity liquidation
    preferences. Our share of total book capitalization is defined
    as our share of total debt plus minority interests to preferred
    unitholders and limited partnership unitholders plus
    partners capital. Our share of total debt is the pro rata
    portion of the total debt based on our percentage of equity
    interest in each of the consolidated or unconsolidated ventures
    holding the debt. We believe that our share of total debt is a
    meaningful supplemental measure, which enables both management
    and investors to analyze our leverage and to compare our
    leverage to that of other companies. In addition, it allows for
    a more meaningful comparison of our debt to that of other
    companies that do not consolidate their joint ventures. Our
    share of total debt is not intended to reflect our actual
    liability should there be a default under any or all of such
    loans or a liquidation of the joint ventures. For a
    reconciliation of our share of total debt to total consolidated
    debt, a GAAP financial measure, please see the table of debt
    maturities and capitalization above.

Liquidity






33



---



##### 





|                      |  |          |                                          |               |      |   |       |      |  |   |       | 
|--------------------- |  | -------- | ---------------------------------------- | ------------- | ---- | - | ----- | ---- |  | - | ----- | 
|                      |  |          |                                          | For the Three |     
|                      |  |          |                                          | Months Ended  |     
|                      |  |          |                                          | March 31,     |     
|                      |  |          |                                          |               |     
|Paying Entity         |  | Security |                                          |               | 2005 |   |       | 2004 | 
|                      |  |          |                                          |               |      |   |       |      | 
|Operating Partnership |  |          | Common limited partnership units         |               |      | $ | 0.440 |      |  | $ | 0.425 | 
|Operating Partnership |  |          | Series J preferred units                 |               |      | $ | 0.994 |      |  | $ | 0.994 | 
|Operating Partnership |  |          | Series K preferred units                 |               |      | $ | 0.994 |      |  | $ | 0.994 | 
|                     
|AMB Property II, L.P. |  |          | Class B common limited partnership units |               |      | $ | 0.440 |      |  | $ | 0.425 | 
|AMB Property II, L.P. |  |          | Series D preferred units                 |               |      | $ | 0.969 |      |  | $ | 0.969 | 
|AMB Property II, L.P. |  |          | Series E preferred units                 |               |      | $ | 0.969 |      |  | $ | 0.969 | 
|AMB Property II, L.P. |  |          | Series F preferred units                 |               |      | $ | 0.994 |      |  | $ | 0.994 | 
|AMB Property II, L.P. |  |          | Series H preferred units                 |               |      | $ | 1.016 |      |  | $ | 1.016 | 
|AMB Property II, L.P. |  |          | Series I preferred units                 |               |      | $ | 1.000 |      |  | $ | 1.000 | 
|AMB Property II, L.P. |  |          | Series N preferred units                 |               |      | $ | 0.625 |      |  |   | n/a   | 



Capital Commitments


Developments.


Acquisitions.


Lease Commitments.


Co-investment Joint Ventures.


34



---



##### 





Captive Insurance Company.


Potential Unknown Liabilities.




| |   |                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | liabilities for clean-up or remediation of undisclosed
    environmental conditions;                                                                                                   
|
| |  | claims of customers, vendors or other persons dealing with our
    predecessors prior to our formation transactions that had not
    been asserted prior to our formation transactions;
|
| |  | accrued but unpaid liabilities incurred in the ordinary course
    of business;                                                                                                        
|
| |  | tax liabilities; and                                                                                                                                                                   
|
| |  | claims for indemnification by the officers and directors of our
    general partners predecessors and others indemnified by
    these entities.                                       

OFF-BALANCE SHEET ARRANGEMENTS


Standby Letters of Credit.


Guarantees.


Performance and Surety Bonds.


Promoted Interests and Other Contractual Obligations.


35



---



##### 



SUPPLEMENTAL EARNINGS MEASURES


FFO.




36



---



##### 





|                                                                            |                                                                               |                            |         |         |            |   |        |         |            | 
|--------------------------------------------------------------------------- | ----------------------------------------------------------------------------- | -------------------------- | ------- | ------- | ---------- | - | ------ | ------- | ---------- | 
|                                                                            |                                                                               | For the Three Months Ended |        
|                                                                            |                                                                               | March 31,                  |        
|                                                                            |                                                                               |                            |        
|                                                                            |                                                                               | 2005                       |         |         | 2004       |  
|                                                                            |                                                                               |                            |         |         |            |  
|Net income                                                                  |                                                                               | $                          | 50,880  |         |            | $ | 18,996 |        
|Income available to common unitholders attributable to limited
    partners |                                                                               |                            | (2,523  | )       |            |   | (824   | )      
|(Gain) loss from dispositions of real estate, net of minority
    interests |                                                                               |                            | (29,243 | )       |            |   | 286    |        
|Depreciation and amortization:                                              |                                                                               |                            |         |         |            |   |        |        
|                                                                            | Total depreciation and amortization                                           |                            |         | 43,485  |            |   |        | 37,255  |           
|                                                                            | Discontinued operations depreciation                                         |                            |         | 638     |            |   |        | 2,393   |           
|                                                                            | Non-real estate depreciation                                                  |                            |         | (745    | )          |   |        | (175    | )         
|Adjustments to derive FFO from consolidated joint ventures:                 |                                                                               |                            |         |         |            |   |        |        
|                                                                            | Joint venture partners minority interests (Net income)                       |                            |         | 11,284  |            |   |        | 8,585   |           
|                                                                            | Limited partnership unitholders minority interests (Net
    income)          |                            |         | 352     |            |   |        | 731     |           
|                                                                            | Limited partnership unitholders minority interests
    (Development profits) |                            |         | 458     |            |   |        |        |           
|                                                                            | Discontinued operations minority interests (Net income)                      |                            |         | 394     |            |   |        | 693     |           
|                                                                            | FFO attributable to minority interests                                        |                            |         | (23,587 | )          |   |        | (17,861 | )         
|Adjustments to derive FFO from unconsolidated joint ventures:               |                                                                               |                            |         |         |            |   |        |        
|                                                                            | Our share of net income                                                       |                            |         | (1,242  | )          |   |        | (1,709  | )         
|                                                                            | Our share of FFO                                                              |                            |         | 2,747   |            |   |        | 2,493   |           
|Preferred unit distributions                                                |                                                                               |                            | (3,373  | )       |            |   | (3,373 | )      
|                                                                            |                                                                               |                            |         |         |            |  
|                                                                            |                                                                               | Funds from operations      |         | $       | 49,525     |   |        | $       | 47,490     | 
|                                                                            |                                                                               |                            |         |         |            |  
|Basic FFO per common unit                                                   |                                                                               | $                          | 0.56    |         |            | $ | 0.55   |        
|                                                                            |                                                                               |                            |         |         |            |  
|Diluted FFO per common unit                                                 |                                                                               | $                          | 0.54    |         |            | $ | 0.53   |        
|                                                                            |                                                                               |                            |         |         |            |  
|Weighted average common units:                                              |                                                                               |                            |         |         |            |   |        |        
|                                                                            |                                                                               | Basic                      |         |         | 87,857,933 |   |        |         | 86,447,303 | 
|                                                                            |                                                                               |                            |         |         |            |  
|                                                                            |                                                                               | Diluted                    |         |         | 91,240,898 |   |        |         | 89,617,834 | 
|                                                                            |                                                                               |                            |         |         |            |  

37



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##### 



OPERATING AND LEASING STATISTICS SUMMARY




|                                           |                                                          |             |                  |           |      |      | 
|------------------------------------------ | -------------------------------------------------------- | ----------- | ---------------- | --------- | ---- | ---- | 
|Operating Portfolio(1)                     |                                                          | Quarter     |                 
|                                           |                                                          |             |                 
|Square feet owned at March 31,
    2005(2) |                                                          |             | 89,241,646       |          
|Occupancy percentage at March 31, 2005     |                                                          |             | 95.1             | %        
|Weighted average lease terms:              |                                                          |             |                  |          
|                                           | Original                                                 |             |                  | 6.2 years |     
|                                           | Remaining                                                |             |                  | 3.3 years |     
|Tenant retention                           |                                                          |             | 68.6             | %        
|Same Space Leasing
    Activity(3):        |                                                          |             |                  |          
|                                           | Rent increases (decreases) on renewals and rollovers     |             |                  | (8.6      | )%  
|                                           | Same space square footage commencing (millions)          |             |                  | 4.1       |     
|Second Generation Leasing
    Activity(4): |                                                          |             |                  |          
|                                           | Tenant improvements and leasing commissions per sq. ft.: |             |                  |           |     
|                                           |                                                          | Renewals    |                  | $         | 1.65 |     
|                                           |                                                          | Re-tenanted |                  |           | 2.68 |     
|                                           |                                                          |             |                 
|                                           |                                                          |             | Weighted average |           | $    | 2.11 | 
|                                           |                                                          |             |                 
|Square footage commencing (millions)       |                                                          |             | 5.2              |          






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes all consolidated industrial operating properties and
    excludes industrial development and renovation projects.
    Excludes retail and other properties square feet of
    474,368 with occupancy of 71.4% and annualized base rent of
    $3.8 million.                                                                                                                                                                                                                             
|   
|(2) | In addition to owned square feet as of March 31, 2005, we
    managed, through our subsidiary, AMB Capital Partners, LLC,
    approximately 0.4 million additional square feet of
    industrial and other properties. We also have investments in
    approximately 10.2 million square feet of industrial
    operating properties through our investments in unconsolidated
    joint ventures.                                                                                                
|   
|(3) | Consists of second generation leases renewing or re-tenanting
    with current and prior lease terms greater than one year.                                                                                                                                                                                                                                                                                                                                                                       
|   
|(4) | Second generation tenant improvements and leasing commissions
    per square foot are the total cost of tenant improvements,
    leasing commissions and other leasing costs incurred during
    leasing of second generation space divided by the total square
    feet leased. Costs incurred prior to leasing available space are
    not included until such space is leased. Second generation space
    excludes newly developed square footage or square footage vacant
    at acquisition.



|                                                        |                                                 |                                                     |            |      |      |   
|------------------------------------------------------- | ----------------------------------------------- | --------------------------------------------------- | ---------- | ---- | ---- | --
|                                                        |                                                 | Quarter                                             |           
|                                                        |                                                 |                                                     |           
|Square feet in same store pool at March 31,
    2005(1) |                                                 |                                                     | 79,974,843 |     
|                                                        | % of total industrial square feet               |                                                     |            | 89.6 | %   
|Occupancy percentage at period end:                     |                                                 |                                                     |            |     
|                                                        | March 31, 2005                                  |                                                     |            | 94.9 | %   
|                                                        | March 31, 2004                                  |                                                     |            | 93.0 | %   
|Tenant retention                                        |                                                 |                                                     | 68.5       | %   
|Rent increases (decreases) on renewals and rollovers    |                                                 |                                                     | (8.6       | )%  
|                                                        | Same space square footage commencing (millions) |                                                     |            | 4.1  |     
|Cash basis NOI growth % increase (decrease):            |                                                 |                                                     |            |     
|                                                        |                                                 | Revenues                                            |            |      | 0.2  | % 
|                                                        |                                                 | Expenses                                            |            |      | 0.9  | % 
|                                                        |                                                 | Net operating income                                |            |      | (0.1 | )%
|                                                        |                                                 | Net operating income without lease termination fees |            |      | (0.5 | )%

38



---



##### 








|    |                                                                                                                                                                                                                                                                                                                                                                                            
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Same store properties are those properties that we owned during
    both the current and prior year reporting periods, excluding
    development properties prior to being stabilized (generally
    defined as properties that are 90% leased or properties for
    which we have held a certificate of occupancy or building has
    been substantially complete for at least 12 months).






|        |                                                               
|------- | --------------------------------------------------------------
|Item 3. | Quantitative and Qualitative Disclosures about Market
    Risk





|                          |  |      |         |   |      |   |         |      |  |   |         |   |  |      |         |   |            |   |         |       |  |   |           |   |  |   |           |  
|------------------------- |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | - |  | ---- | ------- | - | ---------- | - | ------- | ----- |  | - | --------- | - |  | - | --------- | -
|                          |  | 2005 |         |   | 2006 |   |         | 2007 |  |   | 2008    |   |  | 2009 |         |   | Thereafter |   |         | Total | 
|                          |  |      |         |   |      |   |         |      |  |   |         |   |  |      |         |   |            |   |         |       | 
|Fixed rate
    debt(1)    |  | $    | 343,923 |   |      | $ | 172,526 |      |  | $ | 143,300 |   |  | $    | 386,677 |   |            | $ | 201,790 |       |  | $ | 1,499,299 |   |  | $ | 2,747,515 |  
|Average interest rate     |  |      | 7.1     | % |      |   | 6.6     | %    |  |   | 6.9     | % |  |      | 6.7     | % |            |   | 4.9     | %     |  |   | 6.5       | % |  |   | 6.5       | %
|Variable rate
    debt(2) |  | $    | 731     |   |      | $ | 89,400  |      |  | $ | 407,548 |   |  | $    | 5,590   |   |            | $ | 36,659  |       |  | $ | 52,100    |   |  | $ | 592,028   |  
|Average interest rate     |  |      | 4.0     | % |      |   | 2.6     | %    |  |   | 2.0     | % |  |      | 2.0     | % |            |   | 1.8     | %     |  |   | 1.2       | % |  |   | 2.0       | %
|Interest Payments         |  | $    | 24,448  |   |      | $ | 13,711  |      |  | $ | 18,039  |   |  | $    | 26,019  |   |            | $ | 10,548  |       |  | $ | 98,080    |   |  | $ | 190,845   |  






|    |                                          
|--- | -----------------------------------------
|(1) | Represents 82.3% of all outstanding debt.
|   
|(2) | Represents 17.7% of all outstanding debt.





Financial Instruments.


39



---



##### 





|                                   |  |                |       |  |          |  |            |            |  |  |          |  |  |            |         |  |  |   |        |  
|---------------------------------- |  | -------------- | ----- |  | -------- |  | ---------- | ---------- |  |  | -------- |  |  | ---------- | ------- |  |  | - | ------ | -
|                                   |  | Maturity Dates |       |  |          |  |           
|                                   |  |                |       |  | Notional |  |            |           
|Related Derivatives (in thousands) |  | April-05       |       |  | Dec-08   |  |            | October-12 |  |  | Amount   |  |  | Fair Value |        
|                                   |  |                |       |  |          |  |            |            |  |  |          |  |  |            |        
|Interest Rate Swaps:               |  |                |       |  |          |  |            |            |  |  |          |  |  |            |         |  |  |   |        |  
|Plain Interest Rate Swap, Japan    |  |                |       |  |          |  |            |            |  |  |          |  |  |            |         |  |  |   |        |  
|Notional Amount (U.S. Dollars)     |  |                |       |  |          |  |            |            |  |  | $121,325 |  |  | $          | 121,325 |  |  |   |        |  
|Receive Floating(%)                |  |                |       |  |          |  |            |            |  |  | 3M TIBOR |  |  |            |         |  |  |   |        |  
|Pay Fixed Rate(%)                  |  |                |       |  |          |  |            |            |  |  | 1.32%    |  |  |            |         |  |  |   |        |  
|Fair Market Value                  |  |                |       |  |          |  |            |            |  |  | $(1,490) |  |  |            |         |  |  | $ | (1,490 | )
|                                  
|Plain Interest Rate Swap, Europe   |  |                |       |  |          |  |            |            |  |  |          |  |  |            |         |  |  |   |        |  
|Notional Amount (U.S. Dollars)     |  |                |       |  |          |  | $9,982     |            |  |  |          |  |  | $          | 9,982   |  |  |   |        |  
|Receive Floating(%)                |  |                |       |  |          |  | 3M EURIBOR |            |  |  |          |  |  |            |         |  |  |   |        |  
|Pay Fixed Rate(%)                  |  |                |       |  |          |  | 3.72%      |            |  |  |          |  |  |            |         |  |  |   |        |  
|Fair Market Value                  |  |                |       |  |          |  | $(296)     |            |  |  |          |  |  |            |         |  |  | $ | (296   | )
|                                  
|Foreign Exchange Agreements:       |  |                |       |  |          |  |            |            |  |  |          |  |  |            |         |  |  |   |        |  
|Option to Buy CAD/ Sell USD        |  |                |       |  |          |  |            |            |  |  |          |  |  |            |         |  |  |   |        |  
|Contract Amount (U.S. Dollars)     |  | $              | 6,219 |  |          |  |            |            |  |  |          |  |  | $          | 6,219   |  |  |   |        |  
|Contract FX Rate                   |  |                | 1.21  |  |          |  |            |            |  |  |          |  |  |            |         |  |  |   |        |  
|Contract Premium                   |  | $              | 51    |  |          |  |            |            |  |  |          |  |  |            |         |  |  | $ | 51     |  
|                                   |  |                |       |  |          |  |            |            |  |  |          |  |  |            |        
|Total                              |  |                |       |  |          |  |            |            |  |  |          |  |  | $          | 137,526 |  |  | $ | (1,735 | )
|                                   |  |                |       |  |          |  |            |            |  |  |          |  |  |            |        

International Operations.











|        |                        
|------- | -----------------------
|Item 4. | Controls and Procedures



40



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##### 







41



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##### 






PART II







|        |                  
|------- | -----------------
|Item 1. | Legal Proceedings








|        |                                                                
|------- | ---------------------------------------------------------------
|Item 2. | Unregistered Sales of Equity Securities and Use of
    Proceeds








|        |                                
|------- | -------------------------------
|Item 3. | Defaults Upon Senior Securities








|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders








|        |                  
|------- | -----------------
|Item 5. | Other Information








|        |         
|------- | --------
|Item 6. | Exhibits

Exhibits:


|        |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|------- | -- | ----------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |            
|Number  |    | Description
|        |    |            
|        | 31 | .1          |  | Rule 13a-14 (a)/15d-14 (a) Certifications dated
    May 9, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                
|        | 32 | .1          |  | 18 U.S.C.§ 1350 Certifications dated May 9,
    2005. The certifications in this exhibit are being furnished
    solely to accompany this report pursuant to 18 U.S.C. sec.
    1350, and are not being filed for purposes of Section 18 of
    the Securities Exchange Act of 1934, as amended, and are not to
    be incorporated by reference into any of our filings, whether
    made before or after the date hereof, regardless of any general
    incorporation language in such filing.

42



---



##### 



SIGNATURES






| |                                                  
| | -------------------------------------------------
| | AMB PROPERTY, L.P.                               
| | Registrant                                       
|
| | By: AMB Property Corporation, its General Partner



| |     |                      
| | --- | ---------------------
| | By: | /s/ HAMID R. MOGHADAM

| |                             
| | ----------------------------
| |                             
| | Hamid R. Moghadam           
| | Chairman and CEO            
| | (Duly Authorized Officer and
| | Principal Executive Officer)



| |     |                   
| | --- | ------------------
| | By: | /s/ W. BLAKE BAIRD

| |                          
| | -------------------------
| |                          
| | W. Blake Baird           
| | President and Director   
| | (Duly Authorized Officer)



| |     |                    
| | --- | -------------------
| | By: | /s/ MICHAEL A. COKE

| |                                       
| | --------------------------------------
| |                                       
| | Michael A. Coke                       
| | CFO and                               
| | Executive Vice President              
| | (Duly Authorized Officer and Principal
| | Financial and Accounting Officer)     



43