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UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-K





|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|          
|           |  | For the fiscal year ended December 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(State or Other Jurisdiction of
     Incorporation or Organization)           |  | 94-3285362(IRS Employer Identification No.)
|Pier 1, Bay 1,
     San Francisco, California(Address of Principal Executive Offices) |  | 94111(Zip Code)                            

(415) 394-9000


(Registrants Telephone Number, Including Area Code)


Securities registered pursuant to Section 12(b)) of the
Act:


None


Securities registered pursuant to Section 12(g) of the
Act:


None


þ o


o þ


þ o


S-K 10-K 10-K. o


12b-2


þ o o


12b-2 o þ




DOCUMENTS INCORPORATED BY REFERENCE












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TABLE OF CONTENTS



|                                                        |                                                                                                                      |                                              |  |  |  |  |  | 
|------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------- | -------------------------------------------- |  |  |  |  |  | 
|PART I                                                 
|                                                        | Item 1. Business                                                                                                    
|                                                        | Item 1A. Risk Factors                                                                                               
|BUSINESS RISKS                                         
|                                                        | Item 1B. Unresolved Staff Comments                                                                                  
|                                                        | Item 2. Properties                                                                                                  
|INDUSTRIAL PROPERTIES                                  
|OPERATING AND LEASING STATISTICS                       
|DEVELOPMENT PROPERTIES                                 
|                                                        | Item 3. Legal Proceedings                                                                                           
|                                                        | Item 4. Submission of Matters to a Vote of Security Holders                                                         
|PART II                                                
|                                                        | Item 5. Market for Registrants Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities
|                                                        | Item 6. Selected Financial Data                                                                                     
|SELECTED COMPANY FINANCIAL AND OTHER DATA(1)           
|                                                        | Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations                       
|GENERAL                                                
|RESULTS OF OPERATIONS                                  
|LIQUIDITY AND CAPITAL RESOURCES                        
|OFF-BALANCE SHEET ARRANGEMENTS                         
|SUPPLEMENTAL EARNINGS MEASURES                         
|                                                        | Item 7a. Quantitative and Qualitative Disclosures about Market Risk                                                 
|                                                        | Item 8. Financial Statements and Supplementary Data                                                                 
|                                                        | Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                        
|                                                        | Item 9A. Controls and Procedures                                                                                    
|                                                        | Item 9B. Other Information                                                                                          
|PART III                                               
|                                                        | Items 10, 11, 12, 13 and 14.                                                                                        
|PART IV                                                
|                                                        | Item 15. Exhibits and Financial Statement Schedule                                                                  
|SIGNATURES                                             
|REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
|                                                        |                                                                                                                      | CONSOLIDATED BALANCE SHEETS                 
|                                                        |                                                                                                                      | CONSOLIDATED STATEMENTS OF OPERATIONS       
|                                                        |                                                                                                                      | CONSOLIDATED STATEMENTS OF PARTNERS CAPITAL
|                                                        |                                                                                                                      | CONSOLIDATED STATEMENTS OF CASH FLOWS       
|EXHIBIT INDEX                                          
|EXHIBIT 10.16                                          
|EXHIBIT 10.17                                          
|EXHIBIT 21.1                                           
|EXHIBIT 23.1                                           
|EXHIBIT 31.1                                           
|EXHIBIT 32.1                                           



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FORWARD-LOOKING STATEMENTS


Some of the information included in this annual report on
Form 10-K 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 the U.S., California, or the global 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 Risk Factors in
Item 1.A of this report. 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.


2



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PART I







|        |         
|------- | --------
|Item 1. | Business

General


® ®




day-to






® ® point-to






| |   |                                                                                                                                                                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | on a consolidated basis, we owned or partially owned 876
    industrial buildings, principally warehouse distribution
    facilities, encompassing approximately 87.8 million
    rentable square feet that were 95.8% leased, and other buildings
    encompassing approximately 0.3 million rentable square feet
    that were 98.7% leased;

3



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| |   |                                                                                                                                                                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | we managed, but did not have an ownership interest in,
    industrial and other properties, totaling approximately
    1.7 million rentable square feet;                                                                                                                             
|
| |  | through unconsolidated joint ventures, we had investments in 86
    industrial operating properties, totaling approximately
    12.8 million rentable square feet, and two industrial
    development projects, expected to total approximately
    0.3 million rentable square feet;
|
| |  | on a consolidated basis, we had investments in 45 industrial
    development projects which are expected to total approximately
    11.5 million rentable square feet; and                                                                                                           
|
| |  | on a consolidated basis, we owned one development project,
    totaling $32.8 million and approximately 0.6 million
    rentable square feet, that was available for sale or
    contribution.                                                                                       



®


www.amb.com 10-K, 10-Q, 8-K


® ® ®


Operating Strategy






4



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build-to


Growth Strategies




| |                          
| | -------------------------
| | Growth through Operations





| |                           
| | --------------------------
| | Growth through Development







| |                                                     
| | ----------------------------------------------------
| | Growth through Acquisitions and Capital Redeployment



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| |                                
| | -------------------------------
| | Growth through Global Expansion



® speed-to






| |                              
| | -----------------------------
| | Growth through Co-Investments

20-50%


6



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|         |             
|-------- | ------------
|Item 1A. | Risk Factors




BUSINESS RISKS




General Real Estate Industry Risks




| |                                                                                                                               
| | ------------------------------------------------------------------------------------------------------------------------------
| | Our performance and value are subject to general economic
    conditions and risks associated with our real estate
    assets.





| |   |                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------
| |  | changes in the general economic climate;                                                                        
|
| |  | local conditions, such as oversupply of or a reduction in demand
    for industrial space;                      
|
| |  | the attractiveness of our properties to potential customers;                                                    
|
| |  | competition from other properties;                                                                              
|
| |  | our ability to provide adequate maintenance and insurance;                                                      
|
| |  | increased operating costs;                                                                                      
|
| |  | increased cost of compliance with regulations;                                                                  
|
| |  | the potential for liability under applicable laws (including
    changes in tax laws); and                      
|
| |  | disruptions in the global supply chain caused by political,
    regulatory or other factors including terrorism.





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| |                                                                      
| | ---------------------------------------------------------------------
| | We may be unable to renew leases or relet space as leases
    expire.





| |                                                                                                                          
| | -------------------------------------------------------------------------------------------------------------------------
| | Actions by our competitors may decrease or prevent
    increases of the occupancy and rental rates of our
    properties.





| |                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------
| | Real estate investments are relatively illiquid, making it
    difficult for us to respond promptly to changing
    conditions.





| |                                                                                                                      
| | ---------------------------------------------------------------------------------------------------------------------
| | We could be adversely affected if a significant number of
    our tenants are unable to meet their lease obligations.





| |                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------
| | We may be unable to consummate acquisitions on
    advantageous terms or acquisitions may not perform as we
    expect.



8



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| |                                                                                            
| | -------------------------------------------------------------------------------------------
| | We may be unable to complete renovation and development
    projects on advantageous terms.





| |   |                                                                                                                                                                                                                                                                                             
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | we may not be able to obtain financing for development projects
    on favorable terms and complete construction on schedule or
    within budget, resulting in increased debt service expense and
    construction costs and delays in leasing the properties and
    generating cash flow;
|
| |  | we may not be able to obtain, or may experience delays in
    obtaining, all necessary zoning, land-use, building, occupancy
    and other governmental permits and authorizations;                                                                                                         
|
| |  | the properties may perform below anticipated levels, producing
    cash flow below budgeted amounts;                                                                                                                                                                                        
|
| |  | substantial renovation and new development activities,
    regardless of their ultimate success, typically require a
    significant amount of managements time and attention,
    diverting their attention from our
    day-to-day
    operations; and                                   
|
| |  | upon completion of construction, we may not be able to obtain,
    or obtain on advantageous terms, permanent financing for
    activities that we have financed through construction loans.                                                                                                

Risks Associated With Our International Business




| |                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------
| | Our international growth is subject to special risks and
    we may not be able to effectively manage our international
    growth.

non-U.S.




9



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| |                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------
| | Acquired properties may be located in new markets, where
    we may face risks associated with investing in an unfamiliar
    market.





| |                                                                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We are subject to risks from potential fluctuations in
    exchange rates between the U.S. dollar and the currencies
    of the other countries in which we invest.



General Business Risks




| |                                                                                                                                               
| | ----------------------------------------------------------------------------------------------------------------------------------------------
| | Our performance and value are impacted by the local
    economic conditions of and the risks associated with doing
    business in California.





| |                                                                
| | ---------------------------------------------------------------
| | We may experience losses that our insurance does not
    cover.



10



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| |                                                                                                                                                          
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------
| | We are subject to risks and liabilities in connection with
    properties owned through joint ventures, limited liability
    companies and partnerships.





| |   |                                                                                                                                                                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | if our partners, co-members or joint venturers go bankrupt, then
    we and any other remaining general partners, members or joint
    venturers would generally remain liable for the
    partnerships, limited liability companys or joint
    ventures liabilities;            
|
| |  | if our partners fail to fund their share of any required capital
    contributions, then we may be required to contribute such
    capital;                                                                                                                                          
|
| |  | our partners, co-members or joint venturers might have economic
    or other business interests or goals that are inconsistent with
    our business interests or goals that would affect our ability to
    operate the property;                                                   
|
| |  | our partners, co-members or joint venturers may have the power
    to act contrary to our instructions, requests, policies or
    objectives, including our general partners current policy
    with respect to maintaining its qualification as a real estate
    investment trust;

11



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the joint venture, limited liability and partnership agreements
    often restrict the transfer of a joint ventures,
    members or partners interest or buy-sell
    or may otherwise restrict our ability to sell the interest when
    we desire or on advantageous terms;                                                                                                                         
|
| |  | our relationships with our partners, co-members or joint
    ventures are contractual in nature and may be terminated or
    dissolved under the terms of the agreements, and in such event,
    we may not continue to own or operate the interests or assets
    underlying such relationship or may need to purchase such
    interests or assets at an above- market price to continue
    ownership;  
|
| |  | disputes between us and our partners, co-members or joint
    venturers may result in litigation or arbitration that would
    increase our expenses and prevent AMB Property
    Corporations officers and directors from focusing their
    time and effort on our business and result in subjecting the
    properties owned by the applicable partnership or joint venture
    to additional risk; and
|
| |  | we may in certain circumstances be liable for the actions of our
    partners, co-members or joint venturers.                                                                                                                                                                                                                                                                                              





| |                                                                                              
| | ---------------------------------------------------------------------------------------------
| | We may be unable to complete divestitures on advantageous
    terms or contribute properties.







| |                                                                                      
| | -------------------------------------------------------------------------------------
| | Contingent or unknown liabilities could adversely affect
    our financial condition.





| |   |                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------
| |  | liabilities for
    clean-up or remediation
    of undisclosed environmental conditions;                                                         
|
| |  | accrued but unpaid liabilities incurred in the ordinary course
    of business;                                                                  
|
| |  | tax liabilities; and                                                                                                                             
|
| |  | claims for indemnification by the general partners, officers and
    directors and others indemnified by the former owners of the
    properties.

12



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| |                                                 
| | ------------------------------------------------
| | We are dependent on external sources of capital.



Debt Financing Risks




| |                                                           
| | ----------------------------------------------------------
| | We could incur more debt, increasing our debt
    service.

debt-to




| |                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------
| | We face risks associated with the use of debt to fund
    acquisitions and developments, including refinancing
    risk.





13



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| |                                                                                     
| | ------------------------------------------------------------------------------------
| | Covenants in our debt agreements could adversely affect
    our financial condition.





| |                                                                                                    
| | ---------------------------------------------------------------------------------------------------
| | Failure to hedge effectively against interest rates may
    adversely affect results of operations.



Conflicts of Interest Risks




| |                                                                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Some of AMB Property Corporations directors and
    executive officers are involved in other real estate activities
    and investments and, therefore, may have conflicts of interest
    with us.

day-to


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| |                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------
| | AMB Property Corporations duty to its stockholders
    may conflict with the interests of our limited partners and
    noteholders.



Risks Associated with Government Regulations




| |                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------
| | The costs of compliance with environmental laws and
    regulations and any related potential liability could exceed our
    budgets for these items.

clean-up clean-up clean-up




clean-up




15



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| |                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------
| | Compliance or failure to comply with the Americans with
    Disabilities Act and other similar regulations could result in
    substantial costs.



Federal Income Tax Risks




| |                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------
| | Certain property transfers may generate prohibited
    transaction income, resulting in a penalty tax on gain
    attributable to the transaction.



Risks Associated With Our Dependence on Our General
Partners Key Personnel




Risks Associated with Our Disclosure Controls and Procedures
and Internal Control over Financial Reporting




| |                                                                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our business could be adversely impacted if we have
    deficiencies in our disclosure controls and procedures or
    internal control over financial reporting.



16



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|         |                          
|-------- | -------------------------
|Item 1B. | Unresolved Staff Comments








|        |           
|------- | ----------
|Item 2. | Properties




INDUSTRIAL PROPERTIES




Property Characteristics.




|                 |  |                                                                           |  |      |       |   |      |  |       |  
|---------------- |  | ------------------------------------------------------------------------- |  | ---- | ----- | - | ---- |  | ----- | -
|Building Type    |  | Description                                                               |  | 2005 |       |   | 2004 | 
|                 |  |                                                                           |  |      |       |   |      | 
|Warehouse        |  | Customers typically 15,000-75,000 square feet, single or
    multi-tenant |  |      | 44.2  | % |      |  | 41.4  | %
|Bulk Warehouse   |  | Customers typically over 75,000 square feet, single or
    multi-tenant   |  |      | 40.0  | % |      |  | 38.9  | %
|Flex Industrial  |  | Includes assembly or research & development, single or
    multi-customer |  |      | 5.9   | % |      |  | 7.1   | %
|Light Industrial |  | Smaller customers, 15,000 square feet or less, higher
    office finish   |  |      | 4.6   | % |      |  | 5.9   | %
|Trans-Shipment   |  | Unique configurations for truck terminals and cross-docking               |  |      | 1.7   | % |      |  | 2.3   | %
|Air Cargo        |  | On-tarmac or airport land for transfer of air cargo goods                 |  |      | 3.1   | % |      |  | 3.2   | %
|Office           |  | Single or multi-customer, used strictly for office                        |  |      | 0.5   | % |      |  | 1.2   | %
|                 |  |                                                                           |  |      |       |   |      | 
|                 |  |                                                                           |  |      | 100.0 | % |      |  | 100.0 | %

Lease Terms.


Overview of Major Target Markets.




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Industrial Market Operating Statistics (1)




|                                          |                                 |         |           |           |         |         |            |           |     |         |            |             |    |      |               |           |          |   |           |           |                |                |            |           |             |              |           |             |         |   |           |           |    |   |           |           |   |   |            |            |    |   |            |           |    |   |             |            |   
|----------------------------------------- | ------------------------------- | ------- | --------- | --------- | ------- | ------- | ---------- | --------- | --- | ------- | ---------- | ----------- | -- | ---- | ------------- | --------- | -------- | - | --------- | --------- | -------------- | -------------- | ---------- | --------- | ----------- | ------------ | --------- | ----------- | ------- | - | --------- | --------- | -- | - | --------- | --------- | - | - | ---------- | ---------- | -- | - | ---------- | --------- | -- | - | ----------- | ---------- | --
|                                          |                                 |         |           |           |         |         |            |           |     | No. New |            |             |    |      |               |           |          |   |           |           | Total U.S. Hub |                |            |           |             | Total/       |          
|                                          |                                 |         |           |           |         | Dallas/ |            |           | Los |         |            | Jersey/ New |    |      | San Francisco |           |          |   |           |           |                | North American |            |           | and Gateway |              |           | Total Other |         |   | Weighted  |          
|                                          |                                 | Atlanta |           |           | Chicago |         |            | Ft. Worth |     |         | Angeles(2) |             |    | York |               |           | Bay Area |   |           | Miami     |                |                | Seattle    |           |             | On-Tarmac(3) |           |             | Markets |   |           | Markets   |    |   | Average   |          
|                                          |                                 |         |           |           |         |         |            |           |     |         |            |             |    |      |               |           |          |   |           |           |                |                |            |           |             |              |           |             |         |   |           |           |    |   |           |          
|Number of buildings                       |                                 |         | 45        |           |         |         | 99         |           |     |         | 35         |             |    |      | 135           |           |          |   | 117       |           |                |                | 118        |           |             |              | 49        |             |         |   | 50        |           |    |   | 34        |           |   |   | 682        |            |    |   | 194        |           |    |   | 876         |           
|Rentable square feet                      |                                 |         | 4,416,190 |           |         |         | 9,770,876  |           |     |         | 3,515,054  |             |    |      | 13,104,346    |           |          |   | 9,370,830 |           |                |                | 11,147,409 |           |             |              | 5,015,247 |             |         |   | 6,952,127 |           |    |   | 2,674,136 |           |   |   | 65,966,215 |            |    |   | 21,805,889 |           |    |   | 87,772,104  |           
|                                          | % of total rentable square feet |         |           | 4.9       | %       |         |            | 11.1      | %   |         |            | 4.0         | %  |      |               | 14.9      | %        |   |           | 10.7      | %              |                |            | 12.7      | %           |              |           | 5.7         | %       |   |           | 7.9       | %  |   |           | 3.0       | % |   |            | 74.9       | %  |   |            | 25.1      | %  |   |             | 100.0      | % 
|Occupancy percentage                      |                                 |         | 95.2      | %         |         |         | 94.5       | %         |     |         | 91.5       | %           |    |      | 98.6          | %         |          |   | 96.8      | %         |                |                | 95.9       | %         |             |              | 98.3      | %           |         |   | 95.6      | %         |    |   | 95.0      | %         |   |   | 96.2       | %          |    |   | 94.6       | %         |    |   | 95.8        | %         
|Annualized base rent (000s)              |                                 | $       | 18,473    |           |         | $       | 45,249     |           |     | $       | 12,311     |             |    | $    | 80,542        |           |          | $ | 67,212    |           |                | $              | 69,704     |           |             | $            | 36,207    |             |         | $ | 31,124    |           |    | $ | 45,296    |           |   | $ | 406,118    |            |    | $ | 121,194    |           |    | $ | 527,312     |           
|                                          | % of total annualized base rent |         |           | 3.5       | %       |         |            | 8.6       | %   |         |            | 2.3         | %  |      |               | 15.3      | %        |   |           | 12.6      | %              |                |            | 13.2      | %           |              |           | 6.9         | %       |   |           | 5.9       | %  |   |           | 8.6       | % |   |            | 76.9       | %  |   |            | 23.1      | %  |   |             | 100.0      | % 
|Number of leases                          |                                 |         | 176       |           |         |         | 196        |           |     |         | 118        |             |    |      | 373           |           |          |   | 325       |           |                |                | 335        |           |             |              | 236       |             |         |   | 199       |           |    |   | 234       |           |   |   | 2,192      |            |    |   | 679        |           |    |   | 2,871       |           
|Annualized base rent per square foot      |                                 | $       | 4.39      |           |         | $       | 4.90       |           |     | $       | 3.83       |             |    | $    | 6.23          |           |          | $ | 7.41      |           |                | $              | 6.52       |           |             | $            | 7.34      |             |         | $ | 4.68      |           |    | $ | 17.83     |           |   | $ | 6.40       |            |    | $ | 5.87       |           |    | $ | 6.27        |           
|Lease expirations as a % of ABR:(4)       |                                 |         |           |           |         |         |            |           |     |         |            |             |    |      |               |           |          |   |           |           |                |                |            |           |             |              |           |             |         |   |           |           |    |   |           |           |   |   |            |            |    |   |            |           |    |   |             |           
|                                          | 2005                            |         |           | 25.1      | %       |         |            | 28.7      | %   |         |            | 9.4         | %  |      |               | 19.5      | %        |   |           | 14.9      | %              |                |            | 9.8       | %           |              |           | 17.9        | %       |   |           | 17.2      | %  |   |           | 17.0      | % |   |            | 17.4       | %  |   |            | 12.1      | %  |   |             | 16.2       | % 
|                                          | 2006                            |         |           | 12.7      | %       |         |            | 26.7      | %   |         |            | 14.1        | %  |      |               | 13.7      | %        |   |           | 13.2      | %              |                |            | 15.5      | %           |              |           | 20.1        | %       |   |           | 18.2      | %  |   |           | 7.9       | % |   |            | 15.7       | %  |   |            | 13.0      | %  |   |             | 15.1       | % 
|                                          | 2007                            |         |           | 24.2      | %       |         |            | 10.9      | %   |         |            | 19.3        | %  |      |               | 23.7      | %        |   |           | 10.6      | %              |                |            | 16.6      | %           |              |           | 12.1        | %       |   |           | 13.7      | %  |   |           | 11.7      | % |   |            | 15.7       | %  |   |            | 13.3      | %  |   |             | 15.2       | % 
|Weighted average lease terms:             |                                 |         |           |           |         |         |            |           |     |         |            |             |    |      |               |           |          |   |           |           |                |                |            |           |             |              |           |             |         |   |           |           |    |   |           |           |   |   |            |            |    |   |            |           |    |   |             |           
|                                          | Original                        |         |           | 5.1 years |         |         |            | 4.5 years |     |         |            | 5.8 years   |    |      |               | 6.0 years |          |   |           | 6.8 years |                |                |            | 5.6 years |             |              |           | 5.4 years   |         |   |           | 6.0 years |    |   |           | 8.6 years |   |   |            | 5.8 years  |    |   |            | 6.9 years |    |   |             | 6.1 years  |   
|                                          | Remaining                       |         |           | 2.7 years |         |         |            | 2.4 years |     |         |            | 3.7 years   |    |      |               | 3.2 years |          |   |           | 3.6 years |                |                |            | 2.9 years |             |              |           | 3.3 years   |         |   |           | 3.0 years |    |   |           | 4.9 years |   |   |            | 3.1 years  |    |   |            | 3.9 years |    |   |             | 3.3 years  |   
|Tenant retention:                         |                                 |         |           |           |         |         |            |           |     |         |            |             |    |      |               |           |          |   |           |           |                |                |            |           |             |              |           |             |         |   |           |           |    |   |           |           |   |   |            |            |    |   |            |           |    |   |             |           
|                                          | Quarter                         |         |           | 96.6      | %       |         |            | 97.5      | %   |         |            | 85.0        | %  |      |               | 21.8      | %        |   |           | 13.9      | %              |                |            | 62.2      | %           |              |           | 76.1        | %       |   |           | 26.0      | %  |   |           | 83.6      | % |   |            | 68.1       | %  |   |            | 56.0      | %  |   |             | 66.1       | % 
|                                          | Year-to-date                    |         |           | 89.3      | %       |         |            | 82.1      | %   |         |            | 62.2        | %  |      |               | 48.6      | %        |   |           | 41.3      | %              |                |            | 67.6      | %           |              |           | 68.4        | %       |   |           | 53.2      | %  |   |           | 80.7      | % |   |            | 64.5       | %  |   |            | 63.1      | %  |   |             | 64.2       | % 
|Rent increases on renewals and rollovers: |                                 |         |           |           |         |         |            |           |     |         |            |             |    |      |               |           |          |   |           |           |                |                |            |           |             |              |           |             |         |   |           |           |    |   |           |           |   |   |            |            |    |   |            |           |    |   |             |           
|                                          | Quarter                         |         |           | (5.2      | )%      |         |            | 0.2       | %   |         |            | (6.4        | )% |      |               | (4.0      | )%       |   |           | (8.3      | )%             |                |            | (14.6     | )%          |              |           | (0.9        | )%      |   |           | 9.1       | %  |   |           | 6.7       | % |   |            | (3.9       | )% |   |            | (5.8      | )% |   |             | (4.3       | %)
|                                          | Same space SF leased            |         |           | 426,728   |         |         |            | 733,877   |     |         |            | 271,284     |    |      |               | 316,071   |          |   |           | 270,250   |                |                |            | 449,978   |             |              |           | 329,653     |         |   |           | 147,427   |    |   |           | 126,674   |   |   |            | 3,071,942  |    |   |            | 769,692   |    |   |             | 3,841,634  |   
|                                          | Year-to-date                    |         |           | (3.0      | )%      |         |            | 0.7       | %   |         |            | (6.0        | )% |      |               | 1.6       | %        |   |           | 1.4       | %              |                |            | (41.0     | )%          |              |           | 1.3         | %       |   |           | (3.2      | )% |   |           | 2.2       | % |   |            | (10.8      | )% |   |            | (4.3      | )% |   |             | (9.7       | %)
|                                          | Same space SF leased            |         |           | 888,881   |         |         |            | 1,822,495 |     |         |            | 698,886     |    |      |               | 2,371,014 |          |   |           | 900,336   |                |                |            | 2,089,998 |             |              |           | 1,078,385   |         |   |           | 819,959   |    |   |           | 362,528   |   |   |            | 11,032,482 |    |   |            | 2,574,944 |    |   |             | 13,607,426 |   
|Same store cash basis NOI % change:       |                                 |         |           |           |         |         |            |           |     |         |            |             |    |      |               |           |          |   |           |           |                |                |            |           |             |              |           |             |         |   |           |           |    |   |           |           |   |   |            |            |    |   |            |           |    |   |             |           
|                                          | Quarter                         |         |           | 3.9       | %       |         |            | (18.4     | )%  |         |            | (21.6       | )% |      |               | 8.3       | %        |   |           | 41.3      | %              |                |            | (2.8      | )%          |              |           | 21.0        | %       |   |           | 9.3       | %  |   |           | 12.1      | % |   |            | 6.3        | %  |   |            | 1.2       | %  |   |             | 5.2        | % 
|                                          | Year-to-date                    |         |           | (3.5      | )%      |         |            | (5.1      | )%  |         |            | (2.4        | )% |      |               | 3.5       | %        |   |           | 17.6      | %              |                |            | (11.2     | )%          |              |           | 4.8         | %       |   |           | 7.0       | %  |   |           | 4.4       | % |   |            | 0.6        | %  |   |            | (1.9      | )% |   |             | 0.1        | % 
|Sq. feet owned in same store pool(5)      |                                 |         | 3,843,330 |           |         |         | 7,104,452  |           |     |         | 3,374,894  |             |    |      | 11,510,097    |           |          |   | 6,517,164 |           |                |                | 10,587,804 |           |             |              | 4,236,006 |             |         |   | 6,117,008 |           |    |   | 2,556,891 |           |   |   | 55,847,646 |            |    |   | 16,604,963 |           |    |   | 72,452,609  |           
|AMBs pro rata share of square feet(6)    |                                 |         | 2,533,993 |           |         |         | 8,671,069  |           |     |         | 2,552,038  |             |    |      | 10,633,857    |           |          |   | 5,315,216 |           |                |                | 8,562,343  |           |             |              | 4,262,752 |             |         |   | 3,763,649 |           |    |   | 2,530,524 |           |   |   | 48,825,441 |            |    |   | 18,341,161 |           |    |   | 67,166,602  |           
|Total market square footage(7)            |                                 |         | 5,422,133 |           |         |         | 14,431,125 |           |     |         | 3,737,334  |             |    |      | 17,930,364    |           |          |   | 9,853,611 |           |                |                | 11,551,326 |           |             |              | 5,671,847 |             |         |   | 7,718,372 |           |    |   | 3,930,038 |           |   |   | 80,246,150 |            |    |   | 34,708,482 |           |    |   | 114,954,632 |           






|    |                                                                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes all industrial consolidated operating properties and
    excludes industrial development and renovation projects.                                                               
|   
|(2) | We also own a 19.9-acre
    parking lot with 2,720 parking spaces and 12 billboard signs in
    the Los Angeles market immediately adjacent to the Los Angeles
    International Airport.
|   
|(3) | Includes domestic on-tarmac air cargo facilities at 14 airports.                                                                                                                         
|   
|(4) | Annualized base rent is calculated as monthly base rent (cash
    basis) per the terms of the lease, as of December 31, 2005,
    multiplied by 12.                                      

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##### Table of Contents





|    |                                                                                                                                                                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(5) | Same store pool excludes properties or developments stabilized
    after December 31, 2003. Stabilized properties are
    generally defined as properties that are 90% leased or
    properties for which we have held a certificate of occupancy or
    where building has been substantially complete for at least
    12 months.
|   
|(6) | Calculated as our pro rata share of square feet on consolidated
    and unconsolidated operating properties.                                                                                                                                                                                                                       
|   
|(7) | Total market square footage includes industrial and retail
    operating properties, development properties, unconsolidated
    properties (100% of the square footage) and properties managed
    for third parties.                                                                                                              

Industrial Operating Portfolio Overview




|                     |                                 |                          |             |          |        |  |            |             |            |  |            |            |      |            |            |      |            |   |         |            |         |  |               |       |      |  |       |       |     |   |      |      |       |  | 
|-------------------- | ------------------------------- | ------------------------ | ----------- | -------- | ------ |  | ---------- | ----------- | ---------- |  | ---------- | ---------- | ---- | ---------- | ---------- | ---- | ---------- | - | ------- | ---------- | ------- |  | ------------- | ----- | ---- |  | ----- | ----- | --- | - | ---- | ---- | ----- |  | 
|                     |                                 |                          |             | Rentable |        |  | % of Total |             |            |  |            | Annualized |      |            | % of Total |      |            |   |         | Annualized |        
|                     |                                 | Number of                |             |          | Square |  |            | Rentable    |            |  | Occupancy  |            |      | Base Rent  |            |      | Annualized |   |         | Number     |         |  | Base Rent per |      
|                     |                                 | Buildings                |             |          | Feet   |  |            | Square Feet |            |  | Percentage |            |      | (000s)(2) |            |      | Base Rent  |   |         | of Leases  |         |  | Square Foot   |      
|                     |                                 |                          |             |          |        |  |            |             |            |  |            |            |      |            |            |      |            |   |         |            |         |  |               |      
|Domestic Hub Markets |                                 |                          | 682         |          |        |  | 65,966,215 |             |            |  | 74.9       | %          |      |            | 96.2       | %    |            | $ | 406,118 |            |         |  | 76.9          | %     |      |  | 2,192 |       |     | $ | 6.40 |     
|Other Markets        |                                 |                          |             |          |        |  |            |             |            |  |            |            |      |            |            |      |            |   |         |            |         |  |               |       |      |  |       |       |     |   |      |     
|                     | Domestic Target Markets         |                          |             |          |        |  |            |             |            |  |            |            |      |            |            |      |            |   |         |            |         |  |               |       |      |  |       |       |     |   |      |      |      
|                     |                                 | Austin                   |             |          | 8      |  |            |             | 1,558,757  |  |            |            | 1.8  |            |            |      | 93.9       |   |         |            | 8,371   |  |               |       | 1.6  |  |       |       | 29  |   |      |      | 5.72  | 
|                     |                                 | Baltimore/ Washington DC |             |          | 36     |  |            |             | 2,809,554  |  |            |            | 3.2  |            |            |      | 98.2       |   |         |            | 18,689  |  |               |       | 3.5  |  |       |       | 133 |   |      |      | 6.77  | 
|                     |                                 | Boston                   |             |          | 40     |  |            |             | 5,288,268  |  |            |            | 6.0  |            |            |      | 91.1       |   |         |            | 31,694  |  |               |       | 6.0  |  |       |       | 100 |   |      |      | 6.58  | 
|                     |                                 | Minneapolis              |             |          | 29     |  |            |             | 3,707,692  |  |            |            | 4.2  |            |            |      | 98.0       |   |         |            | 15,912  |  |               |       | 3.0  |  |       |       | 136 |   |      |      | 4.38  | 
|                     |                                 |                          |             |          |        |  |            |             |            |  |            |            |      |            |            |      |            |   |         |            |         |  |               |      
|                     | Subtotal/ Weighted Average      |                          |             | 113      |        |  |            | 13,364,271  |            |  |            | 15.2       |      |            |            | 94.8 |            |   |         | 74,666     |         |  |               | 14.1  |      |  |       | 398   |     |   |      | 5.89 |      
|                     | Domestic Non-Target Markets     |                          |             |          |        |  |            |             |            |  |            |            |      |            |            |      |            |   |         |            |         |  |               |       |      |  |       |       |     |   |      |      |      
|                     |                                 | Charlotte                |             |          | 21     |  |            |             | 1,317,864  |  |            |            | 1.6  |            |            |      | 83.7       |   |         |            | 5,518   |  |               |       | 1.0  |  |       |       | 65  |   |      |      | 5.00  | 
|                     |                                 | Columbus                 |             |          | 1      |  |            |             | 240,000    |  |            |            | 0.3  |            |            |      | 100.0      |   |         |            | 720     |  |               |       | 0.1  |  |       |       | 3   |   |      |      | 3.00  | 
|                     |                                 | Houston                  |             |          | 1      |  |            |             | 410,000    |  |            |            | 0.5  |            |            |      | 100.0      |   |         |            | 2,531   |  |               |       | 0.5  |  |       |       | 1   |   |      |      | 6.17  | 
|                     |                                 | Memphis                  |             |          | 17     |  |            |             | 1,883,845  |  |            |            | 2.1  |            |            |      | 91.4       |   |         |            | 8,744   |  |               |       | 1.7  |  |       |       | 47  |   |      |      | 5.08  | 
|                     |                                 | New Orleans              |             |          | 5      |  |            |             | 410,839    |  |            |            | 0.5  |            |            |      | 98.3       |   |         |            | 2,004   |  |               |       | 0.4  |  |       |       | 51  |   |      |      | 4.96  | 
|                     |                                 | Orlando                  |             |          | 16     |  |            |             | 1,424,748  |  |            |            | 1.7  |            |            |      | 96.4       |   |         |            | 6,250   |  |               |       | 1.2  |  |       |       | 75  |   |      |      | 4.55  | 
|                     |                                 | San Diego                |             |          | 5      |  |            |             | 276,167    |  |            |            | 0.3  |            |            |      | 85.4       |   |         |            | 1,911   |  |               |       | 0.4  |  |       |       | 19  |   |      |      | 8.10  | 
|                     |                                 |                          |             |          |        |  |            |             |            |  |            |            |      |            |            |      |            |   |         |            |         |  |               |      
|                     | Subtotal/ Weighted Average      |                          |             | 66       |        |  |            | 5,963,463   |            |  |            | 7.1        |      |            |            | 92.0 |            |   |         | 27,678     |         |  |               | 5.3   |      |  |       | 261   |     |   |      | 5.04 |      
|                     | International Target Markets(1) |                          |             |          |        |  |            |             |            |  |            |            |      |            |            |      |            |   |         |            |         |  |               |       |      |  |       |       |     |   |      |      |      
|                     |                                 | Amsterdam, Netherlands   |             |          | 5      |  |            |             | 476,972    |  |            |            | 0.5  |            |            |      | 100.0      |   |         |            | 4,608   |  |               |       | 0.9  |  |       |       | 5   |   |      |      | 9.66  | 
|                     |                                 | Frankfurt, Germany       |             |          | 1      |  |            |             | 166,917    |  |            |            | 0.2  |            |            |      | 100.0      |   |         |            | 1,980   |  |               |       | 0.4  |  |       |       | 1   |   |      |      | 11.86 | 
|                     |                                 | Hamburg, Germany         |             |          | 3      |  |            |             | 397,963    |  |            |            | 0.4  |            |            |      | 99.1       |   |         |            | 3,153   |  |               |       | 0.6  |  |       |       | 6   |   |      |      | 7.99  | 
|                     |                                 | Lyon, France             |             |          | 1      |  |            |             | 262,491    |  |            |            | 0.3  |            |            |      | 100.0      |   |         |            | 1,452   |  |               |       | 0.3  |  |       |       | 2   |   |      |      | 5.53  | 
|                     |                                 | Paris, France            |             |          | 4      |  |            |             | 1,022,063  |  |            |            | 1.2  |            |            |      | 100.0      |   |         |            | 7,125   |  |               |       | 1.4  |  |       |       | 4   |   |      |      | 6.97  | 
|                     |                                 | Shanghai, China          |             |          | 1      |  |            |             | 151,749    |  |            |            | 0.2  |            |            |      | 100.0      |   |         |            | 532     |  |               |       | 0.1  |  |       |       | 2   |   |      |      | 3.51  | 
|                     |                                 |                          |             |          |        |  |            |             |            |  |            |            |      |            |            |      |            |   |         |            |         |  |               |      
|                     | Subtotal/ Weighted Average      |                          |             | 15       |        |  |            | 2,478,155   |            |  |            | 2.8        |      |            |            | 99.9 |            |   |         | 18,850     |         |  |               | 3.7   |      |  |       | 20    |     |   |      | 7.61 |      
|                     |                                 |                          |             |          |        |  |            |             |            |  |            |            |      |            |            |      |            |   |         |            |         |  |               |      
|                     |                                 |                          | Total Other |          |        |  |            |             |            |  |            |            |      |            |            |      |            |   |         |            |         |  |               |       |      |  |       |       |     |   |      |      |       |  | 
|                     |                                 | Markets                  |             |          | 194    |  |            |             | 21,805,889 |  |            |            | 25.1 |            |            |      | 94.6       |   |         |            | 121,194 |  |               |       | 23.1 |  |       |       | 679 |   |      |      | 5.87  | 
|                     |                                 |                          |             |          |        |  |            |             |            |  |            |            |      |            |            |      |            |   |         |            |         |  |               |      
|                     | Total/ Weighted Average         |                          |             | 876      |        |  |            | 87,772,104  |            |  |            | 100.0      | %    |            |            | 95.8 | %          |   | $       | 527,312    |         |  |               | 100.0 | %    |  |       | 2,871 |     |   | $    | 6.27 |      
|                     |                                 |                          |             |          |        |  |            |             |            |  |            |            |      |            |            |      |            |   |         |            |         |  |               |      

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|    |                                                                                                                                                                                                                
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Annualized base rent for leases denominated in foreign
    currencies is translated using the currency exchange rate at
    December 31, 2005.                                                                 
|   
|(2) | Annualized base rent is calculated as monthly base rent (cash
    basis) per the lease, as of December 31, 2005, multiplied
    by 12. If free rent is granted, then the first positive rent
    value is used.

Industrial Lease Expirations




|                |  |            |            |            |            |   |         |            |  |  |       |  
|--------------- |  | ---------- | ---------- | ---------- | ---------- | - | ------- | ---------- |  |  | ----- | -
|                |  |            |            | Annualized |            |   | % of    |           
|                |  | Square     |            |            | Base Rent  |   |         | Annualized | 
|                |  | Feet(1)(2) |            |            | (000s)(3) |   |         | Base Rent  | 
|                |  |            |            |            |            |   |         |            | 
|2006            |  |            | 14,814,362 |            |            | $ | 89,922  |            |  |  | 16.2  | %
|2007            |  |            | 14,245,738 |            |            |   | 83,898  |            |  |  | 15.1  | %
|2008            |  |            | 14,095,709 |            |            |   | 84,259  |            |  |  | 15.2  | %
|2009            |  |            | 11,726,525 |            |            |   | 70,944  |            |  |  | 12.8  | %
|2010            |  |            | 10,368,286 |            |            |   | 77,179  |            |  |  | 13.9  | %
|2011            |  |            | 6,097,520  |            |            |   | 43,935  |            |  |  | 7.9   | %
|2012            |  |            | 3,983,288  |            |            |   | 35,548  |            |  |  | 6.4   | %
|2013            |  |            | 1,397,167  |            |            |   | 14,630  |            |  |  | 2.6   | %
|2014            |  |            | 3,508,245  |            |            |   | 24,318  |            |  |  | 4.4   | %
|2015 and beyond |  |            | 3,943,343  |            |            |   | 31,404  |            |  |  | 5.5   | %
|                |  |            |            |            |            |   |         |            | 
|Total           |  |            | 84,180,183 |            |            | $ | 556,037 |            |  |  | 100.0 | %
|                |  |            |            |            |            |   |         |            | 






|    |                                                                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Schedule includes leases that expire on or after
    December 31, 2005.                                                                                                             
|   
|(2) | The schedule also includes leases in
    month-to-month and
    hold-over status totaling 3.7 million square feet.                                                                  
|   
|(3) | Calculated as monthly base rent at expiration multiplied by 12.
    Non-U.S. dollar
    projects are converted to U.S. dollars based on the forward
    exchange rate at expiration.

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Customer Information


Largest Property Customers.


|                                     |       |           |    |           |             |               |           |            |  |            |               |      |            |         |        |         |  |  |     |      |  
|------------------------------------ | ----- | --------- | -- | --------- | ----------- | ------------- | --------- | ---------- |  | ---------- | ------------- | ---- | ---------- | ------- | ------ | ------- |  |  | --- | ---- | -
|                                     |       |           |    |           |             | Percentage of |           |            |  |            | Percentage of |     
|                                     |       |           |    |           |             | Aggregate     |           |            |  |            | Aggregate     |     
|                                     |       |           |    | Aggregate |             |               | Leased    |            |  | Annualized |               |      | Annualized |        
|                                     |       | Number of |    |           | Rentable    |               |           | Square     |  |            | Base Rent     |      |            | Base    |       
|Customer Name(1)                     |       | Leases    |    |           | Square Feet |               |           | Feet(2)    |  |            | (000s)(3)    |      |            | Rent(4) |       
|                                     |       |           |    |           |             |               |           |            |  |            |               |      |            |         |       
|United States Government(5)(6)       |       |           | 49 |           |             |               | 1,118,282 |            |  |            | 1.3           | %    |            | $       | 19,576 |         |  |  | 3.7 | %   
|FedEx Corporation                    |       |           | 27 |           |             |               | 1,359,559 |            |  |            | 1.5           | %    |            |         | 14,130 |         |  |  | 2.7 | %   
|Deutsche Post World Net              |       |           | 44 |           |             |               | 1,727,890 |            |  |            | 2.0           | %    |            |         | 13,753 |         |  |  | 2.6 | %   
|Harmonic Inc.                        |       |           | 4  |           |             |               | 285,480   |            |  |            | 0.3           | %    |            |         | 6,674  |         |  |  | 1.3 | %   
|City and County of San Francisco     |       |           | 1  |           |             |               | 559,605   |            |  |            | 0.6           | %    |            |         | 5,714  |         |  |  | 1.1 | %   
|La Poste                             |       |           | 2  |           |             |               | 854,427   |            |  |            | 1.0           | %    |            |         | 5,424  |         |  |  | 1.0 | %   
|Expeditors International             |       |           | 7  |           |             |               | 1,041,773 |            |  |            | 1.2           | %    |            |         | 5,115  |         |  |  | 1.0 | %   
|Worldwide Flight Services            |       |           | 12 |           |             |               | 318,959   |            |  |            | 0.4           | %    |            |         | 3,870  |         |  |  | 0.7 | %   
|UPS                                  |       |           | 13 |           |             |               | 549,994   |            |  |            | 0.6           | %    |            |         | 3,812  |         |  |  | 0.7 | %   
|International Paper Company          |       |           | 6  |           |             |               | 473,399   |            |  |            | 0.5           | %    |            |         | 3,800  |         |  |  | 0.7 | %   
|Panalpina, Inc.                      |       |           | 7  |           |             |               | 572,935   |            |  |            | 0.7           | %    |            |         | 3,542  |         |  |  | 0.7 | %   
|Forward Air Corporation              |       |           | 8  |           |             |               | 475,954   |            |  |            | 0.5           | %    |            |         | 3,416  |         |  |  | 0.6 | %   
|Nippon Express USA                   |       |           | 5  |           |             |               | 429,040   |            |  |            | 0.5           | %    |            |         | 3,361  |         |  |  | 0.6 | %   
|Ahold NV                             |       |           | 5  |           |             |               | 644,571   |            |  |            | 0.7           | %    |            |         | 2,837  |         |  |  | 0.5 | %   
|Elmhult Limited Partnership          |       |           | 5  |           |             |               | 760,253   |            |  |            | 0.9           | %    |            |         | 2,686  |         |  |  | 0.5 | %   
|Virco Manufacturing Corporation      |       |           | 1  |           |             |               | 559,000   |            |  |            | 0.6           | %    |            |         | 2,566  |         |  |  | 0.5 | %   
|BAX Global Inc                       |       |           | 7  |           |             |               | 169,531   |            |  |            | 0.2           | %    |            |         | 2,561  |         |  |  | 0.5 | %   
|Aeroground Inc.                      |       |           | 6  |           |             |               | 201,367   |            |  |            | 0.2           | %    |            |         | 2,555  |         |  |  | 0.5 | %   
|United Air Lines Inc                 |       |           | 5  |           |             |               | 118,825   |            |  |            | 0.1           | %    |            |         | 2,456  |         |  |  | 0.5 | %   
|Applied Materials, Inc.              |       |           | 1  |           |             |               | 290,557   |            |  |            | 0.3           | %    |            |         | 2,277  |         |  |  | 0.4 | %   
|Iron Mountain Information Management |       |           | 9  |           |             |               | 442,041   |            |  |            | 0.5           | %    |            |         | 2,126  |         |  |  | 0.4 | %   
|Kintetsu World Express               |       |           | 5  |           |             |               | 167,027   |            |  |            | 0.2           | %    |            |         | 2,112  |         |  |  | 0.4 | %   
|Eagle Global Logistics, L.P.         |       |           | 7  |           |             |               | 350,563   |            |  |            | 0.4           | %    |            |         | 2,071  |         |  |  | 0.4 | %   
|FMI International                    |       |           | 1  |           |             |               | 315,000   |            |  |            | 0.4           | %    |            |         | 2,068  |         |  |  | 0.4 | %   
|United Liquors, Ltd.                 |       |           | 1  |           |             |               | 440,000   |            |  |            | 0.5           | %    |            |         | 2,057  |         |  |  | 0.4 | %   
|                                     |       |           |    |           |             |               |           |            |  |            |               |      |            |         |       
|                                     | Total |           |    |           |             |               |           | 14,226,032 |  |            |               | 16.2 | %          |         | $      | 120,559 |  |  |     | 22.8 | %
|                                     |       |           |    |           |             |               |           |            |  |            |               |      |            |         |       






|    |                                                                                                                                                                                                                                                                                                         
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Customer(s) may be a subsidiary of or an entity affiliated with
    the named customer. We also have a lease with ParkN Fly at
    our Park One property, a parking lot, adjacent to the Los
    Angeles International Airport with an annualized base rent of
    $7.2 million, which is not included.
|   
|(2) | Computed as aggregate leased square feet divided by the
    aggregate leased square feet of the industrial and retail
    properties.                                                                                                                                                                   
|   
|(3) | Annualized base rent is calculated as monthly base rent (cash
    basis) per the lease, as of December 31, 2005, multiplied
    by 12.                                                                                                                                                                  
|   
|(4) | Computed as aggregate annualized base rent divided by the
    aggregate annualized base rent of the industrial, retail and
    other properties.                                                                                                                                                        
|   
|(5) | Airport apron rental amounts (but not square footage) are
    included.                                                                                                                                                                                                                                 
|   
|(6) | United States Government includes the United States Postal
    Service, United States Customs, United States Department of
    Agriculture and various other U.S. governmental agencies.                                                                                                                

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##### Table of Contents






OPERATING AND LEASING STATISTICS


Industrial Operating and Leasing Statistics




|                                       |                                                          |             |                  |           |      |      |            |           |      |      |            |           |      |      | 
|-------------------------------------- | -------------------------------------------------------- | ----------- | ---------------- | --------- | ---- | ---- | ---------- | --------- | ---- | ---- | ---------- | --------- | ---- | ---- | 
|Operating Portfolio(1)                 |                                                          | 2005        |                  |           | 2004 |      |            | 2003      |     
|                                       |                                                          |             |                  |           |      |      |            |           |     
|Square feet owned(2)                   |                                                          |             | 87,772,104       |           |      |      | 90,278,803 |           |      |      | 87,101,412 |          
|Occupancy percentage                   |                                                          |             | 95.8             | %         |      |      | 94.8       | %         |      |      | 93.1       | %        
|Weighted average lease terms:          |                                                          |             |                  |           |      |      |            |           |      |      |            |          
|                                       | Original                                                 |             |                  | 6.1 years |      |      |            | 6.1 years |      |      |            | 6.1 years |     
|                                       | Remaining                                                |             |                  | 3.3 years |      |      |            | 3.3 years |      |      |            | 3.2 years |     
|Tenant retention                       |                                                          |             | 64.2             | %         |      |      | 66.8       | %         |      |      | 65.3       | %        
|Same Space Leasing Activity(3):        |                                                          |             |                  |           |      |      |            |           |      |      |            |          
|                                       | Rent increases (decreases) on renewals and rollovers     |             |                  | (9.7      | )%   |      |            | (13.2     | )%   |      |            | (10.1     | )%  
|                                       | Same space square footage commencing (millions)          |             |                  | 13.6      |      |      |            | 17.5      |      |      |            | 17.3      |     
|Second Generation Leasing Activity(4): |                                                          |             |                  |           |      |      |            |           |      |      |            |          
|                                       | Tenant improvements and leasing commissions per sq. ft.: |             |                  |           |      |      |            |           |      |      |            |           |     
|                                       |                                                          | Retained    |                  | $         | 1.60 |      |            | $         | 1.73 |      |            | $         | 1.39 |     
|                                       |                                                          | Re-tenanted |                  |           | 3.03 |      |            |           | 2.70 |      |            |           | 2.13 |     
|                                       |                                                          |             |                  |           |      |      |            |           |     
|                                       |                                                          |             | Weighted average |           | $    | 2.34 |            |           | $    | 2.27 |            |           | $    | 1.77 | 
|                                       |                                                          |             |                  |           |      |      |            |           |     
|                                       | Square footage commencing (millions)                     |             |                  | 18.5      |      |      |            | 22.5      |      |      |            | 22.7      |     






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes all consolidated industrial operating properties and
    excludes industrial development and renovation projects.
    Excludes retail and other properties square footage of
    0.3 million with occupancy of 98.7% and annualized base
    rents of $1.7 million as of December 31, 2005.                                                                                                                                                                                                                                                                                                  
|   
|(2) | In addition to owned square feet as of December 31, 2005,
    we managed, but did not have an ownership interest in,
    approximately 0.4 million additional square feet of
    industrial and other properties. As of December 31, 2005,
    one of our subsidiaries also managed approximately
    1.3 million square feet of industrial properties on behalf
    of the IAT Air Cargo Facilities Income Fund. As of
    December 31, 2005, we also had investments in
    12.8 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.                                                                                                     

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Industrial Same Store Operating Statistics




|                                                              |                                   |      |            |      |      |  |            |      |    |  |            |      |   
|------------------------------------------------------------- | --------------------------------- | ---- | ---------- | ---- | ---- |  | ---------- | ---- | -- |  | ---------- | ---- | --
|                                                              |                                   | 2005 |            |      | 2004 |  |            | 2003 |   
|                                                              |                                   |      |            |      |      |  |            |      |   
|Square feet in same store pool(1)                             |                                   |      | 72,452,609 |      |      |  | 74,516,427 |      |    |  | 71,985,575 |     
|                                                              | % of total industrial square feet |      |            | 82.5 | %    |  |            | 82.5 | %  |  |            | 82.6 | % 
|Occupancy percentage at period end                            |                                   |      | 95.6       | %    |      |  | 95.3       | %    |    |  | 93.0       | %   
|Tenant retention                                              |                                   |      | 63.7       | %    |      |  | 66.4       | %    |    |  | 65.1       | %   
|Rent increases (decreases) on renewals and rollovers          |                                   |      | (9.8       | )%   |      |  | (14.7      | )%   |    |  | (10.6      | )%  
|                                                              | Square feet leased (millions)     |      |            | 13.0 |      |  |            | 16.2 |    |  |            | 16.2 |   
|Growth % increase (decrease) (including straight-line rents): |                                   |      |            |      |      |  |            |      |    |  |            |     
|                                                              | Revenues                          |      |            | (0.7 | )%   |  |            | (0.7 | )% |  |            | (3.8 | )%
|                                                              | Expenses                          |      |            | (0.2 | )%   |  |            | (0.5 | )% |  |            | 2.7  | % 
|                                                              | Net operating income              |      |            | (0.8 | )%   |  |            | (0.8 | )% |  |            | (5.7 | )%
|Growth % increase (decrease) (excluding straight-line rents): |                                   |      |            |      |      |  |            |      |    |  |            |     
|                                                              | Revenues                          |      |            | 0.0  | %    |  |            | (0.8 | )% |  |            | (3.6 | )%
|                                                              | Expenses                          |      |            | (0.2 | )%   |  |            | (0.5 | )% |  |            | 2.7  | % 
|                                                              | Net operating income              |      |            | 0.1  | %    |  |            | (0.9 | )% |  |            | (5.6 | )%






|    |                                                                                                                                                                                                                                                                                                                                                                                            
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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).




DEVELOPMENT PROPERTIES


Development Pipeline




Industrial Development and Renovation Deliveries


|                                       |  |                       |  |               |  |               |    |           |               |  |           |            |  |     |            |  |  |  |     |  
|-------------------------------------- |  | --------------------- |  | ------------- |  | ------------- | -- | --------- | ------------- |  | --------- | ---------- |  | --- | ---------- |  |  |  | --- | -
|                                       |  |                       |  |               |  |               |    | Estimated |               |  | Estimated |            |  |    
|                                       |  |                       |  |               |  |               |    | Square    |               |  | Total     |            |  | Our |           
|                                       |  |                       |  |               |  | Estimated     |    |           | Feet at       |  |           | Investment |  |     | Ownership  | 
|Projects                               |  | Location              |  | Developer     |  | Stabilization |    |           | Stabilization |  |           | (000s)(1) |  |     | Percentage | 
|                                       |  |                       |  |               |  |               |    |           |               |  |           |            |  |     |            | 
|2006 Deliveries                        |  |                       |  |               |  |               |    |           |               |  |           |            |  |     |            |  |  |  |     |  
|1. AMB BRU Air Cargo Center            |  | Brussels, Belgium     |  | AMB           |  |               | Q1 |           |               |  | 100,212   |            |  | $   | 11,600     |  |  |  | 100 | %
|2. AMB West OHare  Bldg 1            |  | El Grove, Village, IL |  | AMB           |  |               | Q1 |           |               |  | 189,240   |            |  |     | 15,700     |  |  |  | 20  | %
|3. AMB West OHare  Bldg 2            |  | El Grove, Village, IL |  | AMB           |  |               | Q1 |           |               |  | 119,808   |            |  |     | 9,300      |  |  |  | 20  | %
|4. Narita Air Cargo 1  Phase 1 Bldg A |  | Tokyo, Japan          |  | AMB Blackpine |  |               | Q1 |           |               |  | 107,966   |            |  |     | 11,000     |  |  |  | 100 | %
|5. Narita Air Cargo 1  Phase 1 Bldg B |  | Tokyo, Japan          |  | AMB Blackpine |  |               | Q1 |           |               |  | 564,207   |            |  |     | 57,500     |  |  |  | 100 | %
|6. Highway 17  50 Broad Street        |  | Carlstadt, NJ         |  | AMB           |  |               | Q1 |           |               |  | 120,000   |            |  |     | 9,100      |  |  |  | 100 | %
|7. Monarch Commerce Center  Bldg 1    |  | Miramar, FL           |  | AMB           |  |               | Q2 |           |               |  | 71,903    |            |  |     | 5,600      |  |  |  | 100 | %

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|                                                   |                                                   |                           |  |                       |  |               |    |           |               |  |           |            |   |     |            |         |     |  |     |    |  
|-------------------------------------------------- | ------------------------------------------------- | ------------------------- |  | --------------------- |  | ------------- | -- | --------- | ------------- |  | --------- | ---------- | - | --- | ---------- | ------- | --- |  | --- | -- | -
|                                                   |                                                   |                           |  |                       |  |               |    | Estimated |               |  | Estimated |            |   |    
|                                                   |                                                   |                           |  |                       |  |               |    | Square    |               |  | Total     |            |   | Our |           
|                                                   |                                                   |                           |  |                       |  | Estimated     |    |           | Feet at       |  |           | Investment |   |     | Ownership  |        
|Projects                                           |                                                   | Location                  |  | Developer             |  | Stabilization |    |           | Stabilization |  |           | (000s)(1) |   |     | Percentage |        
|                                                   |                                                   |                           |  |                       |  |               |    |           |               |  |           |            |   |     |            |        
|8. Monarch Commerce Center  Bldg 2                |                                                   | Miramar, FL               |  | AMB                   |  |               | Q2 |           |               |  | 32,152    |            |   |     | 2,400      |         |     |  | 100 | % 
|9. Monarch Commerce Center  Bldg 3                |                                                   | Miramar, FL               |  | AMB                   |  |               | Q2 |           |               |  | 37,447    |            |   |     | 2,800      |         |     |  | 100 | % 
|10. Dulles Commerce Center  Bldg 150              |                                                   | Dulles, VA                |  | Seefried Properties   |  |               | Q2 |           |               |  | 72,600    |            |   |     | 6,300      |         |     |  | 20  | % 
|11. Dulles Commerce Center  Bldg 200              |                                                   | Dulles, VA                |  | Seefried Properties   |  |               | Q2 |           |               |  | 97,232    |            |   |     | 7,500      |         |     |  | 20  | % 
|12. AMB Horizon Creek  Bldg 400                   |                                                   | Atlanta, GA               |  | Seefried Properties   |  |               | Q2 |           |               |  | 204,256   |            |   |     | 9,100      |         |     |  | 100 | % 
|13. AMB Ohta Distribution Center                   |                                                   | Tokyo, Japan              |  | AMB Blackpine         |  |               | Q2 |           |               |  | 789,965   |            |   |     | 173,300    |         |     |  | 100 | % 
|14. Singapore Airport Logistics Center  Bldg 2(4) |                                                   | Changi Airport, Singapore |  | Boustead Projects PTE |  |               | Q2 |           |               |  | 254,267   |            |   |     | 12,000     |         |     |  | 50  | % 
|15. AMB Amagasaki Distribution Center              |                                                   | Osaka, Japan              |  | AMB Blackpine         |  |               | Q2 |           |               |  | 973,029   |            |   |     | 94,100     |         |     |  | 100 | % 
|16. AMB Layline Distribution Center(3)             |                                                   | Torrance, CA              |  | AMB                   |  |               | Q2 |           |               |  | 298,000   |            |   |     | 29,000     |         |     |  | 100 | % 
|17. AMB Redlands  Parcel 1                        |                                                   | Redlands, CA              |  | AMB                   |  |               | Q2 |           |               |  | 699,350   |            |   |     | 24,800     |         |     |  | 100 | % 
|18. Nash Logistics Center(4)                       |                                                   | El Segundo, CA            |  | IAC                   |  |               | Q2 |           |               |  | 75,000    |            |   |     | 12,500     |         |     |  | 50  | % 
|19. Spinnaker Logistics(3)                         |                                                   | Redondo Beach, CA         |  | IAC                   |  |               | Q2 |           |               |  | 279,431   |            |   |     | 30,900     |         |     |  | 39  | % 
|20. Beacon Lakes  Bldg 6                          |                                                   | Miami, FL                 |  | Codina                |  |               | Q3 |           |               |  | 206,464   |            |   |     | 12,300     |         |     |  | 79  | % 
|21. Northfield Bldg 700                            |                                                   | Dallas, TX                |  | Seefried Properties   |  |               | Q3 |           |               |  | 108,640   |            |   |     | 6,300      |         |     |  | 20  | % 
|22. Agave  Bldg 4                                 |                                                   | Mexico City, Mexico       |  | G. Accion             |  |               | Q3 |           |               |  | 217,514   |            |   |     | 13,600     |         |     |  | 98  | % 
|23. AMB Fokker Logistics Center 1                  |                                                   | Amsterdam, Netherlands    |  | Delta Group           |  |               | Q3 |           |               |  | 236,238   |            |   |     | 27,100     |         |     |  | 100 | % 
|24. AMB Annagem Distribution Centre                |                                                   | Toronto, Canada           |  | AMB                   |  |               | Q4 |           |               |  | 194,330   |            |   |     | 12,800     |         |     |  | 100 | % 
|25. AMB Milton 401 Business Park  Bldg 1          |                                                   | Toronto, Canada           |  | AMB                   |  |               | Q4 |           |               |  | 373,245   |            |   |     | 19,300     |         |     |  | 100 | % 
|26. Beacon Lakes  Bldg 10                         |                                                   | Miami, FL                 |  | Codina                |  |               | Q4 |           |               |  | 192,476   |            |   |     | 11,500     |         |     |  | 79  | % 
|27. Beacon Lakes Village  Phase 1 Bldg 2E         |                                                   | Miami, FL                 |  | Codina                |  |               | Q4 |           |               |  | 52,918    |            |   |     | 5,700      |         |     |  | 79  | % 
|28. Platinum Triangle Land(6)                      |                                                   | Anaheim, CA               |  | AMB                   |  |               | Q4 |           |               |  |          |            |   |     | 33,200     |         |     |  | 100 | % 
|29. AMB Kashiwa DC-1                               |                                                   | Kashiwa, Japan            |  | AMB Blackpine         |  |               | Q4 |           |               |  | 221,477   |            |   |     | 23,900     |         |     |  | 100 | % 
|30. Highway 17  55 Madison Street                 |                                                   | Carlstadt, NJ             |  | AMB                   |  |               | Q4 |           |               |  | 150,446   |            |   |     | 12,000     |         |     |  | 100 | % 
|                                                   |                                                   |                           |  |                       |  |               |    |           |               |  |           |            |   |     |            |        
|                                                   | Total 2006 Deliveries                             |                           |  |                       |  |               |    |           |               |  |           | 7,039,813  |   |     | $          | 702,200 |     |  |     | 90 | %
|                                                   |                                                   |                           |  |                       |  |               |    |           |               |  |           |            |   |     |            |        
|                                                   | Leased or Under Contract For Sale/ Funded-to-date |                           |  |                       |  |               |    |           |               |  |           | 50         | % |     | $          | 592,100 | (2) |  |     |    |  
|                                                   | Weighted Average Estimated Stabilized Yield(5)    |                           |  |                       |  |               |    |           |               |  |           |            |   |     |            | 7.6     | %   |  |     |    |  

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|                                                  |                                                   |                        |  |                        |  |               |    |           |               |  |           |            |   |     |            |         |     |  |     |    |  
|------------------------------------------------- | ------------------------------------------------- | ---------------------- |  | ---------------------- |  | ------------- | -- | --------- | ------------- |  | --------- | ---------- | - | --- | ---------- | ------- | --- |  | --- | -- | -
|                                                  |                                                   |                        |  |                        |  |               |    | Estimated |               |  | Estimated |            |   |    
|                                                  |                                                   |                        |  |                        |  |               |    | Square    |               |  | Total     |            |   | Our |           
|                                                  |                                                   |                        |  |                        |  | Estimated     |    |           | Feet at       |  |           | Investment |   |     | Ownership  |        
|Projects                                          |                                                   | Location               |  | Developer              |  | Stabilization |    |           | Stabilization |  |           | (000s)(1) |   |     | Percentage |        
|                                                  |                                                   |                        |  |                        |  |               |    |           |               |  |           |            |   |     |            |        
|2007 Deliveries                                   |                                                   |                        |  |                        |  |               |    |           |               |  |           |            |   |     |            |         |     |  |     |   
|31. AMB Pearson Logistics Centre 1  Bldg 200     |                                                   | Toronto, Canada        |  | AMB                    |  |               | Q1 |           |               |  | 205,518   |            |   | $   | 14,400     |         |     |  | 100 | % 
|32. AMB Isle dAbeau Logistics  Bldg C           |                                                   | Lyon, France           |  | GEPRIM                 |  |               | Q1 |           |               |  | 277,817   |            |   |     | 18,900     |         |     |  | 100 | % 
|33. AMB Turnberry Distribution VI                 |                                                   | Roselle, IL            |  | AMB                    |  |               | Q1 |           |               |  | 179,400   |            |   |     | 10,400     |         |     |  | 20  | % 
|34. AMB Frankfurt Logistics Center 556  Phase II |                                                   | Frankfurt, Germany     |  | AMB                    |  |               | Q1 |           |               |  | 102,031   |            |   |     | 13,400     |         |     |  | 100 | % 
|35. AMB Pearson Logistics Centre  Bldg 100       |                                                   | Toronto, Canada        |  | AMB                    |  |               | Q2 |           |               |  | 446,338   |            |   |     | 28,000     |         |     |  | 100 | % 
|36. AMB Horizon Creek  Bldg 300                  |                                                   | Atlanta, GA            |  | Seefried Properties    |  |               | Q2 |           |               |  | 190,923   |            |   |     | 9,000      |         |     |  | 100 | % 
|37. AMB Gonesse Distribution Center               |                                                   | Gonesse, France        |  | GEPRIM                 |  |               | Q2 |           |               |  | 590,088   |            |   |     | 50,000     |         |     |  | 100 | % 
|38. Agave  Bldg 2                                |                                                   | Mexico City, Mexico    |  | G. Accion              |  |               | Q2 |           |               |  | 259,473   |            |   |     | 14,800     |         |     |  | 98  | % 
|39. AMB Douglassingel Distribution Center         |                                                   | Amsterdam, Netherlands |  | Austin                 |  |               | Q3 |           |               |  | 148,994   |            |   |     | 20,200     |         |     |  | 100 | % 
|40. AMB Fokker Logistics Center 2  Bldg 1        |                                                   | Amsterdam, Netherlands |  | Delta Group            |  |               | Q3 |           |               |  | 118,375   |            |   |     | 14,400     |         |     |  | 100 | % 
|41. AMB DFW Logistics Center 1                    |                                                   | Dallas, TX             |  | AMB                    |  |               | Q3 |           |               |  | 113,640   |            |   |     | 5,400      |         |     |  | 100 | % 
|42. AMB Des Plaines Logistics Center              |                                                   | Des Plaines, IL        |  | AMB                    |  |               | Q3 |           |               |  | 125,080   |            |   |     | 12,400     |         |     |  | 100 | % 
|43. AMB Port of Hamburg 1                         |                                                   | Hamburg, Germany       |  | BUSS Ports + Logistics |  |               | Q3 |           |               |  | 403,862   |            |   |     | 33,100     |         |     |  | 94  | % 
|44. Civic Center Corporate Park                   |                                                   | Torrance, CA           |  | AMB                    |  |               | Q4 |           |               |  | 161,785   |            |   |     | 25,900     |         |     |  | 100 | % 
|                                                  |                                                   |                        |  |                        |  |               |    |           |               |  |           |            |   |     |            |        
|                                                  | Total 2007 Deliveries                             |                        |  |                        |  |               |    |           |               |  |           | 3,323,324  |   |     | $          | 270,300 |     |  |     | 96 | %
|                                                  |                                                   |                        |  |                        |  |               |    |           |               |  |           |            |   |     |            |        
|                                                  | Leased or Under Contract For Sale/ Funded-to-date |                        |  |                        |  |               |    |           |               |  |           | 0          | % |     | $          | 56,700  | (2) |  |     |    |  
|                                                  | Weighted Average Estimated Stabilized Yield(5)    |                        |  |                        |  |               |    |           |               |  |           |            |   |     |            | 7.9     | %   |  |     |    |  
|2008 Deliveries                                   |                                                   |                        |  |                        |  |               |    |           |               |  |           |            |   |     |            |         |     |  |     |   
|45. AMB Valley Distribution Center                |                                                   | Auburn , WA            |  | AMB                    |  |               | Q1 |           |               |  | 766,245   |            |   | $   | 42,700     |         |     |  | 100 | % 
|46. AMB Barajas Logistics Park                    |                                                   | Madrid, Spain          |  | Codina Torimbia        |  |               | Q1 |           |               |  | 452,841   |            |   |     | 32,500     |         |     |  | 80  | % 
|47. AMB Fokker Logistics Center 3                 |                                                   | Amsterdam, Netherlands |  | Delta Group            |  |               | Q1 |           |               |  | 313,229   |            |   |     | 38,900     |         |     |  | 50  | % 
|                                                  |                                                   |                        |  |                        |  |               |    |           |               |  |           |            |   |     |            |        
|                                                  | Total 2008 Deliveries                             |                        |  |                        |  |               |    |           |               |  |           | 1,532,315  |   |     | $          | 114,100 |     |  |     | 77 | %
|                                                  |                                                   |                        |  |                        |  |               |    |           |               |  |           |            |   |     |            |        
|                                                  | Leased or Under Contract For Sale/ Funded-to-date |                        |  |                        |  |               |    |           |               |  |           | 0          | % |     | $          | 32,600  | (2) |  |     |    |  
|                                                  | Weighted Average Estimated Stabilized Yield(5)    |                        |  |                        |  |               |    |           |               |  |           |            |   |     |            | 8.1     | %   |  |     |    |  

25



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##### Table of Contents



|                           |                                                   |          |  |           |  |               |  |           |               |  |            |            |   |     |            |         |     |  |    |   | 
|-------------------------- | ------------------------------------------------- | -------- |  | --------- |  | ------------- |  | --------- | ------------- |  | ---------- | ---------- | - | --- | ---------- | ------- | --- |  | -- | - | 
|                           |                                                   |          |  |           |  |               |  | Estimated |               |  | Estimated  |            |   |    
|                           |                                                   |          |  |           |  |               |  | Square    |               |  | Total      |            |   | Our |           
|                           |                                                   |          |  |           |  | Estimated     |  |           | Feet at       |  |            | Investment |   |     | Ownership  |        
|Projects                   |                                                   | Location |  | Developer |  | Stabilization |  |           | Stabilization |  |            | (000s)(1) |   |     | Percentage |        
|                           |                                                   |          |  |           |  |               |  |           |               |  |            |            |   |     |            |        
|Total Scheduled Deliveries |                                                   |          |  |           |  |               |  |           |               |  | 11,895,452 |            |   | $   | 1,086,600  |         |     |  | 90 | %
|                           |                                                   |          |  |           |  |               |  |           |               |  |            |            |   |     |            |        
|                           | Leased or Under Contract For Sale/ Funded-to-date |          |  |           |  |               |  |           |               |  |            | 30         | % |     | $          | 681,400 | (2) |  |    |   | 
|                           | Weighted Average Estimated Stabilized Yield(5)    |          |  |           |  |               |  |           |               |  |            |            |   |     |            | 7.7     | %   |  |    |   | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Represents total estimated cost of development, renovation or
    expansion, including initial acquisition costs, third-party
    developer earnouts and associated carry costs. The estimates are
    based on our current estimates and forecasts and are subject to
    change. Excludes 1,307 acres of land held for future
    development or sale representing a potential 24.3 million
    square feet and costs totaling $349.5 million.
    Non-U.S.dollar
    investments are translated to U.S. dollars using the
    exchange rate at December 31, 2005.
|   
|(2) | Our share of amounts funded to date for 2006, 2007 and 2008
    deliveries was $527.2 million, $51.4 million and
    $23.7 million, respectively, for a total of
    $602.3 million.                                                                                                                                                                                                                                                                                                                                                                                
|   
|(3) | Represents a renovation project.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   
|(4) | Represents projects in unconsolidated joint ventures.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   
|(5) | Yields exclude value-added conversion projects and are
    calculated on an after-tax basis for international projects.                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   
|(6) | Represents a value-added conversion project.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        



Completed Development Projects Available for Sale or
Contribution(2)


|                                         |                |        |                     |                |            |           |            |            |  |           |            |        |     |  |    |   | 
|---------------------------------------- | -------------- | ------ | ------------------- | -------------- | ---------- | --------- | ---------- | ---------- |  | --------- | ---------- | ------ | --- |  | -- | - | 
|                                         |                |        |                     |                |            | Estimated |            |            | 
|                                         |                |        |                     | Estimated      |            |           | Total      |            |  | Our       |           
|                                         |                |        |                     | Square Feet at |            |           | Investment |            |  | Ownership |           
|Projects(1)                              |                | Market |                     |                | Completion |           |            | (000s)(3) |  |           | Percentage |       
|                                         |                |        |                     |                |            |           |            |            |  |           |            |       
|1. Encino Distribution Center            |                |        | Mexico City, Mexico |                |            |           | 580,669    |            |  | $         | 32,800     |        |     |  | 98 | %
|                                         |                |        |                     |                |            |           |            |            |  |           |            |       
|Total Available for Sale or Contribution |                |        |                     |                |            |           | 580,669    |            |  | $         | 32,800     |        |     |  | 98 | %
|                                         |                |        |                     |                |            |           |            |            |  |           |            |       
|                                         | Funded-to-date |        |                     |                |            |           |            |            |  |           | $          | 32,800 | (4) |  |    |   | 






|    |                                                                                                                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Represents
    build-to-suit and
    speculative development or redevelopment.                                                                                                                                                                   
|   
|(2) | We intend to sell these properties or contribute them into a
    co-investment joint venture within two years of completion.
    Non-U.S. dollar
    investments are translated to U.S. dollars using the
    exchange rate at December 31, 2005.
|   
|(3) | Represents total estimated cost of renovation, expansion or
    development, including initial acquisition cost, carry and
    partner earnouts. The estimates are based on current estimates
    and forecasts and are subject to change.       
|   
|(4) | Our share of amounts funded as of December 31, 2005 was
    $32.1 million.                                                                                                                                                                       

Properties held through Joint Ventures, Limited Liability
Companies and Partnerships




| |                             
| | ----------------------------
| | Consolidated Joint Ventures:



26



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##### Table of Contents







Co-investment Consolidated Joint Ventures


|                                          |                                                |                                                 |  |    |           |   |  |         |     |  |            |            |              |          |   |           |           |  |   |           |           |  |   |         |         | 
|----------------------------------------- | ---------------------------------------------- | ----------------------------------------------- |  | -- | --------- | - |  | ------- | --- |  | ---------- | ---------- | ------------ | -------- | - | --------- | --------- |  | - | --------- | --------- |  | - | ------- | ------- | 
|                                          |                                                | Our                                             |  |    |           |   |  |         |     |  |            |            | JV Partners |         
|                                          |                                                | Ownership                                       |  |    | Number of |   |  | Square  |     |  | Gross Book |            |              | Property |   |           | Share of  | 
|Joint Ventures                            |                                                | Percentage                                      |  |    | Buildings |   |  | Feet(1) |     |  | Value(2)   |            |              | Debt     |   |           | Debt(3)   | 
|                                          |                                                |                                                 |  |    |           |   |  |         |     |  |            |            |              |          |   |           |           | 
|                                          |                                                | (Dollars in thousands)                          | 
|Co-Investment Operating Joint Ventures:   |                                                |                                                 |  |    |           |   |  |         |     |  |            |            |              |          |   |           |           |  |   |           |           |  |   |        
|                                          | AMB Erie(4)                                    |                                                 |  | 50 | %         |   |  | 15      |     |  |            | 1,921,432  |              |          | $ | 99,722    |           |  | $ | 40,710    |           |  | $ | 20,354  |        
|                                          | AMB Partners II(6)                             |                                                 |  | 20 | %         |   |  | 105     |     |  |            | 8,618,386  |              |          |   | 557,461   |           |  |   | 285,668   |           |  |   | 229,017 |        
|                                          | AMB-SGP(7)                                     |                                                 |  | 50 | %         |   |  | 74      |     |  |            | 8,287,007  |              |          |   | 436,713   |           |  |   | 239,944   |           |  |   | 119,666 |        
|                                          | AMB Institutional Alliance Fund II(5)          |                                                 |  | 20 | %         |   |  | 70      |     |  |            | 7,964,444  |              |          |   | 498,161   |           |  |   | 245,056   |           |  |   | 193,486 |        
|                                          | AMB-AMS(8)                                     |                                                 |  | 39 | %         |   |  | 32      |     |  |            | 1,891,934  |              |          |   | 115,852   |           |  |   | 49,159    |           |  |   | 30,130  |        
|                                          | AMB Institutional Alliance Fund III(9)         |                                                 |  | 20 | %         |   |  | 57      |     |  |            | 7,219,725  |              |          |   | 743,322   |           |  |   | 421,290   |           |  |   | 333,156 |        
|                                          |                                                |                                                 |  |    |           |   |  |         |     |  |            |            |              |          |   |           |           | 
|                                          | Total Co-Investment Operating Joint Ventures   |                                                 |  | 27 | %         |   |  | 353     |     |  |            | 35,902,928 |              |          |   | 2,451,231 |           |  |   | 1,281,827 |           |  |   | 925,809 |        
|Co-Investment Development Joint Ventures: |                                                |                                                 |  |    |           |   |  |         |     |  |            |            |              |          |   |           |           |  |   |           |           |  |   |        
|                                          | AMB Partners II(6)                             |                                                 |  | 20 | %         |   |  | 4       |     |  |            | 478,880    |              |          |   | 34,654    |           |  |   | 6,016     |           |  |   | 4,765   |        
|                                          | AMB Institutional Alliance Fund II(5)          |                                                 |  | 20 | %         |   |  | 1       |     |  |            | 108,640    |              |          |   | 9,332     |           |  |   |          |           |  |   |        |        
|                                          | AMB-AMS(8)                                     |                                                 |  | 39 | %         |   |  | 1       |     |  |            | 279,431    |              |          |   | 30,155    |           |  |   | 13,984    |           |  |   | 8,597   |        
|                                          | AMB Institutional Alliance Fund III(9)         |                                                 |  | 20 | %         |   |  | 1       |     |  |            | 179,400    |              |          |   | 6,312     |           |  |   |          |           |  |   |        |        
|                                          |                                                |                                                 |  |    |           |   |  |         |     |  |            |            |              |          |   |           |           | 
|                                          | Total Co-Investment Development Joint Ventures |                                                 |  | 27 | %         |   |  | 7       |     |  |            | 1,046,351  |              |          |   | 80,453    |           |  |   | 20,000    |           |  |   | 13,362  |        
|                                          |                                                |                                                 |  |    |           |   |  |         |     |  |            |            |              |          |   |           |           | 
|                                          |                                                | Total Co-Investment Consolidated Joint Ventures |  |    | 27        | % |  |         | 360 |  |            |            | 36,949,279   |          |   | $         | 2,531,684 |  |   | $         | 1,301,827 |  |   | $       | 939,171 | 
|                                          |                                                |                                                 |  |    |           |   |  |         |     |  |            |            |              |          |   |           |           | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | For development properties, this represents estimated square
    feet at completion of development for committed phases of
    development and renovation projects.                                                                                                                                                                                                                                                                      
|   
|(2) | Represents the book value of the property (before accumulated
    depreciation) owned by the joint venture entity and excludes net
    other assets as of December 31, 2005. Development book
    values include uncommitted land.                                                                                                                                                                                                       
|   
|(3) | JV partners share of debt is defined as total debt less
    our share of total debt. See footnote 1 to the
    Capitalization Ratios table contained in Part II,
    Item 7: Managements Discussion and Analysis of
    Financial Condition and Results of Operation 
    Liquidity and Capital Resources for a discussion of why we
    believe our share of total debt is a useful supplemental measure
    for our management and

27



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##### Table of Contents



|    |                                                                                                                                                                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | investors, of ways to use this measure when assessing our
    financial performance, the limitations of the measure as a
    measurement tool, and for a reconciliation of our share of total
    debt to total consolidated debt, a GAAP financial measure.
|   
|(4) | AMB/ Erie, L.P. is a co-investment partnership formed in 1998
    with the Erie Insurance Company and certain related entities.                                                                                                                             
|   
|(5) | AMB Institutional Alliance Fund II, L.P. is a co-investment
    partnership formed in 2001 with institutional investors, which
    invest through a private real estate investment trust.                                                                   
|   
|(6) | AMB Partners II, L.P. is a co-investment partnership formed
    in 2001 with the City and County of San Francisco
    Employees Retirement System.                                                                                                         



|    |                                                                                                                                                                                                                                            
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(7) | AMB-SGP, L.P. is a co-investment partnership formed in 2001 with
    Industrial JV Pte. Ltd., a subsidiary of GIC Real Estate Pte.
    Ltd., a real estate investment subsidiary of the Government of
    Singapore Investment Corporation.



|    |                                                                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(8) | AMB-AMS, L.P. is a co-investment partnership formed in 2004 with
    three Dutch pension funds advised by Mn Services NV.                                                                                 
|   
|(9) | 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.

Other Consolidated Joint Ventures


|                                            |                                                    |                        |         |           |            |  |        |      |       |      |           |           |          |              |         |          |         |   |        |        |  |   |        |        | 
|------------------------------------------- | -------------------------------------------------- | ---------------------- | ------- | --------- | ---------- |  | ------ | ---- | ----- | ---- | --------- | --------- | -------- | ------------ | ------- | -------- | ------- | - | ------ | ------ |  | - | ------ | ------ | 
|                                            |                                                    |                        |         | Our       |            |  |        |      | Gross |      |           |           |          | JV Partners |        
|                                            |                                                    |                        |         | Ownership |            |  | Square |      |       | Book |           |           | Property |              |         | Share of |        
|Properties                                  |                                                    | Market                 |         |           | Percentage |  |        | Feet |       |      | Value(1)  |           |          | Debt         |         |          | Debt(2) |  
|                                            |                                                    |                        |         |           |            |  |        |      |       |      |           |           |          |              |         |          |         |  
|                                            |                                                    | (Dollars in thousands) |        
|Other Industrial Operating Joint Ventures   |                                                    |                        | Various |           |            |  | 92     | %    |       |      | 2,956,762 |           |          | $            | 244,787 |          |         | $ | 42,688 |        |  | $ | 3,329  |       
|Other Industrial Development Joint Ventures |                                                    |                        | Various |           |            |  | 73     | %    |       |      | 1,834,483 |           |          |              | 133,903 |          |         |   | 42,975 |        |  |   | 18,303 |       
|                                            |                                                    |                        |         |           |            |  |        |      |       |      |           |           |          |              |         |          |         |  
|                                            | Total Other Industrial Consolidated Joint Ventures |                        |         |           |            |  |        | 86   | %     |      |           | 4,791,245 |          |              | $       | 378,690  |         |   | $      | 85,663 |  |   | $      | 21,632 | 
|                                            |                                                    |                        |         |           |            |  |        |      |       |      |           |           |          |              |         |          |         |  






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Represents the book value of the property (before accumulated
    depreciation) owned by the joint venture entity and excludes net
    other assets as of December 31, 2005. Development book
    values include uncommitted land.                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   
|(2) | JV Partners Share of Debt is defined as total debt less
    our share of total debt. See footnote 1 to the
    Capitalization Ratios table contained in Part II,
    Item 7: Managements Discussion and Analysis of
    Financial Condition and Results of Operation 
    Liquidity and Capital Resources for a discussion of why we
    believe our share of total debt is a useful supplemental measure
    for our management and investors, of ways to use this measure
    when assessing our financial performance, the limitations of the
    measure as a measurement tool, and for a reconciliation of our
    share of total debt to total consolidated debt, a GAAP financial
    measure.



| |                                                                                        
| | ---------------------------------------------------------------------------------------
| | Unconsolidated Joint Ventures, Mortgage and Loan Receivables
    and Other Investments:

Consolidation of Variable Interest
Entities.


28



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##### Table of Contents



Unconsolidated Joint Ventures,


Mortgage Investments and Other Investments


|                                               |                        |                                     |  |                 |      |         |           |            |            |           |            |        |          |         |    |    |    |   |        |        |         | 
|---------------------------------------------- | ---------------------- | ----------------------------------- |  | --------------- | ---- | ------- | --------- | ---------- | ---------- | --------- | ---------- | ------ | -------- | ------- | -- | -- | -- | - | ------ | ------ | ------- | 
|                                               |                        |                                     |  |                 |      | Our Net |           |            | Our        |           |            | Our    |         
|                                               |                        |                                     |  | Square          |      |         | Equity    |            |            | Ownership |            |        | Share of |        
|Unconsolidated Joint Ventures                  |                        | Market                              |  |                 | Feet |         |           | Investment |            |           | Percentage |        |          | Debt(1) |   
|                                               |                        |                                     |  |                 |      |         |           |            |            |           |            |        |          |         |   
|                                               |                        | (Dollars in thousands)              | 
|Co-Investment Joint Ventures                   |                        |                                     |  |                 |      |         |           |            |            |           |            |        |          |         |    |    |    |   |        |       
|                                               | 1. AMB-SGP Mexico(2)   |                                     |  | Various, Mexico |      |         |           | 1,892,407  |            |           | $          | 16,218 |          |         |    | 20 | %  |   | $      | 12,809 |        
|                                               | 2. AMB Japan Fund I(3) |                                     |  | Various, Japan  |      |         |           | 1,201,698  |            |           |            | 10,112 |          |         |    | 20 | %  |   |        | 14,667 |        
|                                               |                        |                                     |  |                 |      |         |           |            |            |           |            |        |          |         |   
|                                               |                        | Total Co-Investment Joint Ventures  |  |                 |      |         |           |            | 3,094,105  |           |            |        | 26,330   |         |    |    | 20 | % |        |        | 27,476  | 
|Other Industrial Operating Joint Ventures      |                        |                                     |  |                 |      |         | 9,295,507 |            |            |           | 41,520     |        |          |         | 52 | %  |    |   | 91,847 |       
|Other Industrial Development Joint Ventures(4) |                        |                                     |  |                 |      |         | 719,267   |            |            |           | 6,176      |        |          |         | 50 | %  |    |   | 12,125 |       
|                                               |                        |                                     |  |                 |      |         |           |            |            |           |            |        |          |         |   
|                                               |                        | Total Unconsolidated Joint Ventures |  |                 |      |         |           |            | 13,108,879 |           |            | $      | 74,026   |         |    |    | 40 | % |        | $      | 131,448 | 
|                                               |                        |                                     |  |                 |      |         |           |            |            |           |            |        |          |         |   

|                              |  |        |             |  |          |          |               |               |  |   |        |  |  |  |      |   |  |  |  | 
|----------------------------- |  | ------ | ----------- |  | -------- | -------- | ------------- | ------------- |  | - | ------ |  |  |  | ---- | - |  |  |  | 
|                              |  |        |             |  |          | Mortgage |               |               |  |   |       
|Mortgage and Loan Receivables |  | Market |             |  | Maturity |          |               | Receivable(6) |  |   | Rate   |  |  | 
|                              |  |        |             |  |          |          |               |               |  |   |        |  |  | 
|1. Pier 1(5)                  |  |        | SF Bay Area |  |          |          | May 2026      |               |  | $ | 12,821 |  |  |  | 13.0 | % |  |  |  | 
|2. G.Accion                   |  |        | Various     |  |          |          | November 2006 |               |  |   | 8,800  |  |  |  | 12.0 | % |  |  |  | 
|                              |  |        |             |  |          |          |               |               |  |   |        |  |  |  |     
|                              |  |        |             |  |          |          |               |               |  | $ | 21,621 |  |  |  |      |   |  |  |  | 
|                              |  |        |             |  |          |          |               |               |  |   |        |  |  |  |     

|                                           |  |        |             |  |               |     |             |            |           |   |            |          |  |         |      |  |  |   |        | 
|------------------------------------------ |  | ------ | ----------- |  | ------------- | --- | ----------- | ---------- | --------- | - | ---------- | -------- |  | ------- | ---- |  |  | - | ------ | 
|                                           |  |        |             |  |               |     |             | Our        |           |   | Our        |         
|                                           |  |        |             |  |               | Net |             |            | Ownership |   |            | Share of | 
|Other Investments                          |  | Market |             |  | Property Type |     |             | Investment |           |   | Percentage |          |  | Debt(1) |     
|                                           |  |        |             |  |               |     |             |            |           |   |            |          |  |         |     
|1. Park One                                |  |        | Los Angeles |  |               |     | Parking Lot |            |           | $ | 75,498     |          |  |         | 100% |  |  | $ |       | 
|2. G.Accion(7)                             |  |        | Various     |  |               |     | Various     |            |           |   | 44,627     |          |  |         | 39%  |  |  |   | 29,672 | 
|3. IAT Air Cargo Facilities Income Fund(8) |  |        | Canada      |  |               |     | Industrial  |            |           |   | 2,644      |          |  |         | 5%   |  |  |   |       | 
|                                           |  |        |             |  |               |     |             |            |           |   |            |          |  |         |     
|                                           |  |        |             |  |               |     |             |            |           | $ | 122,769    |          |  |         |      |  |  | $ | 29,672 | 
|                                           |  |        |             |  |               |     |             |            |           |   |            |          |  |         |     






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | See footnote 1 to the Capitalization Ratios table contained
    in Part II, Item 7: Managements Discussion
    and Analysis of Financial Condition and Results of
    Operation  Liquidity and Capital Resources for
    a discussion of why we believe our share of total debt is a
    useful supplemental measure for our management and investors, of
    ways to use this measure when assessing our financial
    performance, the limitations of the measure as a measurement
    tool, and for a reconciliation of our share of total debt to
    total consolidated debt, a GAAP financial measure.
|   
|(2) | AMB-SGP Mexico, LLC is an unconsolidated co-investment joint
    venture formed in 2004 with Industrial (Mexico) JV Pte. Ltd., a
    real estate investment subsidiary of the Government of Singapore
    Investment Corporation. Includes $7.3 million of
    shareholder loans outstanding at December 31, 2005 between
    us and the co-investment partnership and its subsidiaries.                                                                                                                                                                                                                        
|   
|(3) | AMB Japan Fund I is a co-investment partnership formed in
    2005 with 13 institutional investors as limited partners.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|(4) | Square feet for development joint ventures represents estimated
    square feet at completion of development project.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   
|(5) | AMB has an 0.1% unconsolidated equity interest (with a 33%
    economic interest) in this property and also has an option to
    purchase the remaining equity interest beginning January 1,
    2007 and expiring December 31, 2009.                                                                                                                                                                                                                                                                                                                                                                           

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|    |                                                                                                                                                                                                                                       
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(6) | We hold inter-company loans that we eliminate in consolidation.                                                                                                                                                                       
|   
|(7) | We also have a 39% unconsolidated equity interest in G. Accion,
    a Mexican real estate company. G. Accion provides management and
    development services for industrial, retail, residential and
    office properties in Mexico.
|   
|(8) | We also have an approximate 5% equity interest in IAT Air Cargo
    Facilities Income Fund, a public Canadian real estate income
    trust.                                                                                           

Secured Debt









|        |                  
|------- | -----------------
|Item 3. | Legal Proceedings








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



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PART II







|        |                                                                                                                     
|------- | --------------------------------------------------------------------------------------------------------------------
|Item 5. | Market for Registrants Common Equity, Related
    Shareholder Matters and Issuer Purchases of Equity
    Securities

1 2 3 4 1 2 3 4




|     |             |              |   |       | 
|---- | ----------- | ------------ | - | ----- | 
|Year |             | Distribution |  
|     |             |              |  
|2004 |             |              |   |      
|     | 1st Quarter |              | $ | 0.425 | 
|     | 2nd Quarter |              |   | 0.425 | 
|     | 3rd Quarter |              |   | 0.425 | 
|     | 4th Quarter |              |   | 0.425 | 
|2005 |             |              |   |      
|     | 1st Quarter |              | $ | 0.440 | 
|     | 2nd Quarter |              |   | 0.440 | 
|     | 3rd Quarter |              |   | 0.440 | 
|     | 4th Quarter |              |   | 0.440 | 

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|        |                        
|------- | -----------------------
|Item 6. | Selected Financial Data




SELECTED COMPANY FINANCIAL AND OTHER DATA(1)




|                   |                                                                            |                                                 |   |           |          |   |   |           |          |   |      |           |          |      |   |           |          |   |   |           |          |  
|------------------ | -------------------------------------------------------------------------- | ----------------------------------------------- | - | --------- | -------- | - | - | --------- | -------- | - | ---- | --------- | -------- | ---- | - | --------- | -------- | - | - | --------- | -------- | -
|                   |                                                                            | 2005                                            |   |           | 2004     |   |   | 2003      |          |   | 2002 |           |          | 2001 |  
|                   |                                                                            |                                                 |   |           |          |   |   |           |          |   |      |           |          |      |  
|                   |                                                                            | (Dollars in thousands, except per unit amounts) |  
|Operating Data     |                                                                            |                                                 |   |           |          |   |   |           |          |   |      |           |          |      |   |           |          |   |   |          
|                   | Total revenues                                                             |                                                 | $ | 676,149   |          |   | $ | 592,429   |          |   | $    | 517,002   |          |      | $ | 497,453   |          |   | $ | 450,478   |         
|                   | Income before minority interests and discontinued operations               |                                                 |   | 210,299   |          |   |   | 118,871   |          |   |      | 115,041   |          |      |   | 118,831   |          |   |   | 154,241   |         
|                   | Income from continuing operations                                          |                                                 |   | 147,443   |          |   |   | 74,901    |          |   |      | 72,485    |          |      |   | 89,707    |          |   |   | 116,645   |         
|                   | Income from discontinued operations                                        |                                                 |   | 130,306   |          |   |   | 63,615    |          |   |      | 74,604    |          |      |   | 49,347    |          |   |   | 33,627    |         
|                   | Net income                                                                 |                                                 |   | 277,749   |          |   |   | 138,516   |          |   |      | 147,089   |          |      |   | 139,054   |          |   |   | 150,272   |         
|                   | Income available to common unitholders attributable to general
    partner |                                                 |   | 250,419   |          |   |   | 118,340   |          |   |      | 116,716   |          |      |   | 113,035   |          |   |   | 120,100   |         
|                   | Income from continuing operations per common unit:                         |                                                 |   |           |          |   |   |           |          |   |      |           |          |      |   |           |          |   |   |           |         
|                   |                                                                            | Basic(2)                                        |   |           | 1.51     |   |   |           | 0.71     |   |      |           | 0.57     |      |   |           | 0.80     |   |   |           | 1.05     |  
|                   |                                                                            | Diluted(2)                                      |   |           | 1.44     |   |   |           | 0.68     |   |      |           | 0.56     |      |   |           | 0.78     |   |   |           | 1.04     |  
|                   | Net income from discontinued operations per common unit:                   |                                                 |   |           |          |   |   |           |          |   |      |           |          |      |   |           |          |   |   |           |         
|                   |                                                                            | Basic(2)                                        |   |           | 1.47     |   |   |           | 0.73     |   |      |           | 0.87     |      |   |           | 0.56     |   |   |           | 0.38     |  
|                   |                                                                            | Diluted(2)                                      |   |           | 1.41     |   |   |           | 0.71     |   |      |           | 0.85     |      |   |           | 0.55     |   |   |           | 0.37     |  
|                   | Net income available to common unitholders per common unit:                |                                                 |   |           |          |   |   |           |          |   |      |           |          |      |   |           |          |   |   |           |         
|                   |                                                                            | Basic(2)                                        |   |           | 2.98     |   |   |           | 1.44     |   |      |           | 1.44     |      |   |           | 1.36     |   |   |           | 1.43     |  
|                   |                                                                            | Diluted(2)                                      |   |           | 2.85     |   |   |           | 1.39     |   |      |           | 1.41     |      |   |           | 1.33     |   |   |           | 1.41     |  
|                   | Distributions declared per common unit                                     |                                                 |   | 1.76      |          |   |   | 1.70      |          |   |      | 1.66      |          |      |   | 1.64      |          |   |   | 1.58      |         
|Other Data         |                                                                            |                                                 |   |           |          |   |   |           |          |   |      |           |          |      |   |           |          |   |   |          
|                   | Funds from operations                                                      |                                                 | $ | 254,363   |          |   | $ | 207,314   |          |   | $    | 186,666   |          |      | $ | 215,194   |          |   | $ | 186,707   |         
|                   | Funds from operations per common unit:                                     |                                                 |   |           |          |   |   |           |          |   |      |           |          |      |   |           |          |   |   |           |         
|                   |                                                                            | Basic                                           |   |           | 2.87     |   |   |           | 2.39     |   |      |           | 2.17     |      |   |           | 2.44     |   |   |           | 2.09     |  
|                   |                                                                            | Diluted                                         |   |           | 2.75     |   |   |           | 2.30     |   |      |           | 2.13     |      |   |           | 2.40     |   |   |           | 2.07     |  
|                   | Cash flows provided by (used in):                                          |                                                 |   |           |          |   |   |           |          |   |      |           |          |      |   |           |          |   |   |           |         
|                   |                                                                            | Operating activities                            |   |           | 295,815  |   |   |           | 297,349  |   |      |           | 269,808  |      |   |           | 297,723  |   |   |           | 293,903  |  
|                   |                                                                            | Investing activities                            |   |           | (60,407  | ) |   |           | (731,402 | ) |      |           | (346,275 | )    |   |           | (253,312 | ) |   |           | (368,493 | )
|                   |                                                                            | Financing activities                            |   |           | (101,856 | ) |   |           | 409,705  |   |      |           | 112,022  |      |   |           | (28,150  | ) |   |           | 127,303  |  
|Balance Sheet Data |                                                                            |                                                 |   |           |          |   |   |           |          |   |      |           |          |      |   |           |          |   |   |          
|                   | Investments in real estate at cost                                         |                                                 | $ | 6,798,294 |          |   | $ | 6,526,144 |          |   | $    | 5,491,707 |          |      | $ | 4,922,782 |          |   | $ | 4,527,511 |         
|                   | Total assets                                                               |                                                 |   | 6,802,739 |          |   |   | 6,386,943 |          |   |      | 5,409,559 |          |      |   | 4,983,629 |          |   |   | 4,763,614 |         
|                   | Total consolidated debt                                                    |                                                 |   | 3,401,561 |          |   |   | 3,257,191 |          |   |      | 2,574,257 |          |      |   | 2,235,361 |          |   |   | 2,143,714 |         
|                   | Our share of total debt(3)                                                 |                                                 |   | 2,601,878 |          |   |   | 2,395,046 |          |   |      | 1,954,314 |          |      |   | 1,691,737 |          |   |   | 1,655,386 |         
|                   | General partners capital                                                  |                                                 |   | 1,916,299 |          |   |   | 1,671,140 |          |   |      | 1,657,137 |          |      |   | 1,676,079 |          |   |   | 1,747,389 |         

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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Certain items in the consolidated financial statements for prior
    periods have been reclassified to conform with current
    classifications with no effect on net income or partners
    capital.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   
|(2) | Basic and diluted net income per weighted average unit equals
    the net income available to common unitholders divided by
    84,048,936 and 87,873,399 units, respectively, for 2005;
    82,133,627 and 85,368,626 units, respectively, for 2004;
    81,096,062 and 82,852,528 units, respectively, for 2003;
    83,310,885 and 84,795,987 units, respectively, for 2002;
    84,174,644 and 85,214,066 units, respectively, for 2001.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|(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 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 in Part II, Item 7:
    Management Discussion and Analysis of Financial Condition
    and Results of Operations  Liquidity and Capital
    Resources  Capital Resources.

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|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations




GENERAL


You should read the following discussion and analysis of our
consolidated financial condition and results of operations in
conjunction with the notes to consolidated financial
statements.




Managements Overview






|                                      |                                          |                    |  |            |             |  |  |                |    |  |  |            |   
|------------------------------------- | ---------------------------------------- | ------------------ |  | ---------- | ----------- |  |  | -------------- | -- |  |  | ---------- | --
|                                      |                                          | U.S. Hub and       |  |            | Total Other |  |  | Total/Weighted |   
|Property Data                         |                                          | Gateway Markets(1) |  |            | Markets(2)  |  |  | Average        |   
|                                      |                                          |                    |  |            |             |  |  |                |   
|For the year ended December 31, 2005: |                                          |                    |  |            |             |  |  |                |    |  |  |           
|                                      | % of total rentable square feet          |                    |  | 74.9       | %           |  |  | 25.1           | %  |  |  | 100.0      | % 
|                                      | Occupancy percentage at year end         |                    |  | 96.2       | %           |  |  | 94.6           | %  |  |  | 95.8       | % 
|                                      | Same space square footage leased         |                    |  | 11,032,482 |             |  |  | 2,574,944      |    |  |  | 13,607,426 |   
|                                      | Rent decreases on renewals and rollovers |                    |  | (10.8      | )%          |  |  | (4.3           | )% |  |  | (9.7       | )%
|For the year ended December 31, 2004: |                                          |                    |  |            |             |  |  |                |    |  |  |           
|                                      | % of total rentable square feet          |                    |  | 74.1       | %           |  |  | 25.9           | %  |  |  | 100.0      | % 
|                                      | Occupancy percentage at year end         |                    |  | 95.0       | %           |  |  | 94.2           | %  |  |  | 94.8       | % 
|                                      | Same space square footage leased         |                    |  | 13,932,213 |             |  |  | 3,553,563      |    |  |  | 17,485,776 |   
|                                      | Rent decreases on renewals and rollovers |                    |  | (15.3      | )%          |  |  | (3.6           | )% |  |  | (13.2      | )%






|    |                                                                                                                                                                                                         
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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.
|   
|(2) | Our total other markets include other domestic target markets,
    other non-target markets, international target markets and
    retail.                                                               



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Summary of Key Transactions in 2005






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Acquired 41 buildings in North America, Europe and Asia,
    aggregating approximately 6.9 million square feet, for
    $555.0 million, including two buildings that were acquired
    by two of our unconsolidated 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;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| |  | Committed to 30 development projects in North America, Europe
    and Asia totaling 7.0 million square feet with an estimated
    total investment of approximately $522.4 million;                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| |  | Acquired 341 acres of land for industrial warehouse
    development in North America, Europe and Asia for approximately
    $193.9 million;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|
| |  | Sold five land parcels and five development projects available
    for sale, aggregating approximately 0.9 million square
    feet, for an aggregate price of approximately
    $155.2 million; and                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| |  | Divested ourselves of 142 industrial buildings and one retail
    center aggregating approximately 9.3 million square feet,
    for an aggregate price of approximately $926.6 million.
    Included in these divestitures is the sale of the assets of AMB
    Alliance Fund I for $618.5 million. The multi-investor
    fund owned 100 buildings totaling approximately 5.8 million
    square feet. We received cash and a distribution of an on-tarmac
    property, AMB DFW Air Cargo Center I, in exchange for our
    21% interest in the fund. We also received a net incentive
    distribution of approximately $26.4 million in cash.







| |   |                                                                                                                                                                                                                                                                                                                                                                   
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Formed an unconsolidated co-investment joint venture, AMB Japan
    Fund I, L.P., with planned investment of capacity of
    approximately 247.3 billion Yen ($2.1 billion
    U.S. dollars, using exchange rate at December 31,
    2005). We contributed $106.9 million (using exchange rate
    in effect at contribution) of operating properties to the fund;
|
| |  | Contributed an industrial property for $23.6 million to
    AMB-SGP Mexico, LLC, an unconsolidated co-investment joint
    venture;                                                                                                                                                                                                                               
|
| |  | Obtained $69.7 million of debt (using exchange rates in
    effect at applicable quarter end dates) with a weighted average
    interest rate of 3.8% for international acquisitions;                                                                                                                                                                             

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| |   |                                                                                                                                                
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------
| |  | Assumed $62.8 million of debt for our consolidated
    co-investment joint ventures at a weighted average interest rate
    of 7.4%;           
|
| |  | Obtained long-term secured debt financings for our co-investment
    joint ventures of $139.7 million with a weighted average
    rate of 5.4%;
|
| |  | Exchanged $100.0 million of 6.9% Reset Put Securities for
    approximately $112.5 million of 5.094% Notes due 2015;                           
|
| |  | Raised $72.3 million in net proceeds from the issuance of
    $75.0 million of our 7.0% Series O Cumulative
    Redeemable Preferred Units; and
|
| |  | Issued $175.0 million of unsecured senior debt securities
    due 2010.                                                                        



Critical Accounting Policies




Investments in Real Estate.


Revenue Recognition.


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Property Dispositions. build-to Accounting for the Impairment
or Disposal of Long-Lived Assets


Joint Ventures. Investors Accounting for an Investee When the Investor
Has a Majority of the Voting Interest but the Minority
Shareholder or Shareholders Have Certain Approval or Veto
Rights Accounting for
Investments in Real Estate Ventures Consolidation of Variable Interest Entities


04-5, Determining Whether a General Partner, or the General
Partners as a Group, Controls a Limited Partnership or Similar
Entity When the Limited Partners Have Certain Rights Investors Accounting for an Investee
When the Investor has a Majority of the Voting Interest but the
Minority Shareholder or Shareholders Have Certain Approval or
Veto rights


Our General Partners Status as a Real Estate Investment
Trust.


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RESULTS OF OPERATIONS






For the Years ended December 31, 2005 and 2004 (dollars
in millions)


|                       |                          |                       |                |      |       |       |      |          |       |       |          |     |      |      |       |      |       |      |  
|---------------------- | ------------------------ | --------------------- | -------------- | ---- | ----- | ----- | ---- | -------- | ----- | ----- | -------- | --- | ---- | ---- | ----- | ---- | ----- | ---- | -
|Revenues               |                          | 2005                  |                |      | 2004  |       |      | $ Change |       |       | % Change |    
|                       |                          |                       |                |      |       |       |      |          |       |       |          |    
|Rental revenues        |                          |                       |                |      |       |       |      |          |       |       |          |     |      |      |       |     
|                       | U.S. industrial:         |                       |                |      |       |       |      |          |       |       |          |     |      |      |       |      |      
|                       |                          | Same store            |                | $    | 510.4 |       |      | $        | 514.1 |       |          | $   | (3.7 | )    |       |      | (0.7  | )%  
|                       |                          | 2004 acquisitions     |                |      | 57.8  |       |      |          | 25.2  |       |          |     | 32.6 |      |       |      | 129.4 | %   
|                       |                          | 2005 acquisitions     |                |      | 15.3  |       |      |          |      |       |          |     | 15.3 |      |       |      |      | %   
|                       |                          | Development           |                |      | 6.5   |       |      |          | 6.2   |       |          |     | 0.3  |      |       |      | 4.8   | %   
|                       |                          | Other industrial      |                |      | 10.3  |       |      |          | 7.7   |       |          |     | 2.6  |      |       |      | 33.8  | %   
|                       | International industrial |                       |                | 30.8 |       |       |      | 25.2     |       |       |          | 5.6 |      |      |       | 22.2 | %    
|                       | Retail                   |                       |                | 1.1  |       |       |      | 1.1      |       |       |          |    |      |      |       |     | %    
|                       |                          |                       |                |      |       |       |      |          |       |       |          |    
|                       |                          | Total rental revenues |                |      | 632.2 |       |      |          | 579.5 |       |          |     | 52.7 |      |       |      | 9.1   | %   
|Private capital income |                          |                       | 43.9           |      |       |       | 12.9 |          |       |       | 31.0     |     |      |      | 240.3 | %   
|                       |                          |                       |                |      |       |       |      |          |       |       |          |    
|                       |                          |                       | Total revenues |      | $     | 676.1 |      |          | $     | 592.4 |          |     | $    | 83.7 |       |      |       | 14.1 | %
|                       |                          |                       |                |      |       |       |      |          |       |       |          |    



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|                              |                          |                                |                          |      |       |       |       |          |       |       |          |     |      |      |       |      |       |      |  
|----------------------------- | ------------------------ | ------------------------------ | ------------------------ | ---- | ----- | ----- | ----- | -------- | ----- | ----- | -------- | --- | ---- | ---- | ----- | ---- | ----- | ---- | -
|Costs and Expenses            |                          | 2005                           |                          |      | 2004  |       |       | $ Change |       |       | % Change |    
|                              |                          |                                |                          |      |       |       |       |          |       |       |          |    
|Property operating costs:     |                          |                                |                          |      |       |       |       |          |       |       |          |     |      |      |       |     
|                              | Rental expenses          |                                | $                        | 88.2 |       |       | $     | 83.0     |       |       | $        | 5.2 |      |      |       | 6.3  | %    
|                              | Real estate taxes        |                                |                          | 75.0 |       |       |       | 65.3     |       |       |          | 9.7 |      |      |       | 14.9 | %    
|                              |                          |                                |                          |      |       |       |       |          |       |       |          |    
|                              |                          | Total property operating costs |                          | $    | 163.2 |       |       | $        | 148.3 |       |          | $   | 14.9 |      |       |      | 10.0  | %   
|                              |                          |                                |                          |      |       |       |       |          |       |       |          |    
|Property operating costs      |                          |                                |                          |      |       |       |       |          |       |       |          |     |      |      |       |     
|                              | U.S. industrial:         |                                |                          |      |       |       |       |          |       |       |          |     |      |      |       |      |      
|                              |                          | Same store                     |                          | $    | 133.3 |       |       | $        | 133.5 |       |          | $   | (0.2 | )    |       |      | (0.1  | )%  
|                              |                          | 2004 acquisitions              |                          |      | 15.9  |       |       |          | 6.8   |       |          |     | 9.1  |      |       |      | 133.8 | %   
|                              |                          | 2005 acquisitions              |                          |      | 3.4   |       |       |          |      |       |          |     | 3.4  |      |       |      |      | %   
|                              |                          | Development                    |                          |      | 2.2   |       |       |          | 1.8   |       |          |     | 0.4  |      |       |      | 22.2  | %   
|                              |                          | Other industrial               |                          |      | 1.4   |       |       |          | 0.9   |       |          |     | 0.5  |      |       |      | 55.6  | %   
|                              | International industrial |                                |                          | 6.5  |       |       |       | 4.8      |       |       |          | 1.7 |      |      |       | 35.4 | %    
|                              | Retail                   |                                |                          | 0.5  |       |       |       | 0.5      |       |       |          |    |      |      |       |     | %    
|                              |                          |                                |                          |      |       |       |       |          |       |       |          |    
|                              |                          | Total property operating costs |                          |      | 163.2 |       |       |          | 148.3 |       |          |     | 14.9 |      |       |      | 10.0  | %   
|Depreciation and amortization |                          |                                | 165.4                    |      |       |       | 141.1 |          |       |       | 24.3     |     |      |      | 17.2  | %   
|General and administrative    |                          |                                | 77.4                     |      |       |       | 58.8  |          |       |       | 18.6     |     |      |      | 31.6  | %   
|Fund costs                    |                          |                                | 1.5                      |      |       |       | 1.7   |          |       |       | (0.2     | )   |      |      | (11.8 | )%  
|                              |                          |                                |                          |      |       |       |       |          |       |       |          |    
|                              |                          |                                | Total costs and expenses |      | $     | 407.5 |       |          | $     | 349.9 |          |     | $    | 57.6 |       |      |       | 16.5 | %
|                              |                          |                                |                          |      |       |       |       |          |       |       |          |    



|                                                         |                                        |      |        |       |      |   |        |          |   |   |          |       |   |  |       |       |   
|-------------------------------------------------------- | -------------------------------------- | ---- | ------ | ----- | ---- | - | ------ | -------- | - | - | -------- | ----- | - |  | ----- | ----- | --
|Other Income and (Expenses)                              |                                        | 2005 |        |       | 2004 |   |        | $ Change |   |   | % Change |      
|                                                         |                                        |      |        |       |      |   |        |          |   |   |          |      
|Equity in earnings of unconsolidated joint ventures, net |                                        | $    | 10.8   |       |      | $ | 3.8    |          |   | $ | 7.0      |       |   |  | 184.2 | %    
|Interest and other income                                |                                        |      | 6.5    |       |      |   | 3.8    |          |   |   | 2.7      |       |   |  | 71.1  | %    
|Gains from dispositions of real estate interests         |                                        |      | 19.1   |       |      |   | 5.2    |          |   |   | 13.9     |       |   |  | 267.3 | %    
|Development profits, net of taxes                        |                                        |      | 54.8   |       |      |   | 8.5    |          |   |   | 46.3     |       |   |  | 544.7 | %    
|Interest expense, including amortization                 |                                        |      | (149.5 | )     |      |   | (144.9 | )        |   |   | 4.6      |       |   |  | 3.2   | %    
|                                                         |                                        |      |        |       |      |   |        |          |   |   |          |      
|                                                         | Total other income and (expenses), net |      | $      | (58.3 | )    |   | $      | (123.6   | ) |   | $        | (65.3 | ) |  |       | (52.8 | )%
|                                                         |                                        |      |        |       |      |   |        |          |   |   |          |      



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|                                                                              |                               |      |       |       |      |   |      |          |  |   |          |      |  |  |       |       |  
|----------------------------------------------------------------------------- | ----------------------------- | ---- | ----- | ----- | ---- | - | ---- | -------- |  | - | -------- | ---- |  |  | ----- | ----- | -
|Discontinued Operations                                                       |                               | 2005 |       |       | 2004 |   |      | $ Change |  |   | % Change |     
|                                                                              |                               |      |       |       |      |   |      |          |  |   |          |     
|Income attributable to discontinued operations, net of minority
    interests |                               | $    | 9.5   |       |      | $ | 18.9 |          |  | $ | (9.4     | )    |  |  | (49.7 | )%   
|Gains from dispositions of real estate, net of minority interests             |                               |      | 120.8 |       |      |   | 44.7 |          |  |   | 76.1     |      |  |  | 170.2 | %    
|                                                                              |                               |      |       |       |      |   |      |          |  |   |          |     
|                                                                              | Total discontinued operations |      | $     | 130.3 |      |   | $    | 63.6     |  |   | $        | 66.7 |  |  |       | 104.9 | %
|                                                                              |                               |      |       |       |      |   |      |          |  |   |          |     



|                             |                       |      |       |       |      |   |       |          |   |   |          |     |  |  |     |     |  
|---------------------------- | --------------------- | ---- | ----- | ----- | ---- | - | ----- | -------- | - | - | -------- | --- |  |  | --- | --- | -
|Preferred Units              |                       | 2005 |       |       | 2004 |   |       | $ Change |   |   | % Change |    
|                             |                       |      |       |       |      |   |       |          |   |   |          |    
|Preferred unit distributions |                       | $    | (13.7 | )     |      | $ | (13.5 | )        |   | $ | 0.2      |     |  |  | 1.5 | %  
|                             |                       |      |       |       |      |   |       |          |   |   |          |    
|                             | Total preferred units |      | $     | (13.7 | )    |   | $     | (13.5    | ) |   | $        | 0.2 |  |  |     | 1.5 | %
|                             |                       |      |       |       |      |   |       |          |   |   |          |    



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For the Years ended December 31, 2004 and 2003 (dollars
in millions)


|                       |                          |                       |                |      |       |       |      |          |       |       |          |      |      |      |      |       |       |      |  
|---------------------- | ------------------------ | --------------------- | -------------- | ---- | ----- | ----- | ---- | -------- | ----- | ----- | -------- | ---- | ---- | ---- | ---- | ----- | ----- | ---- | -
|Revenues               |                          | 2004                  |                |      | 2003  |       |      | $ Change |       |       | % Change |     
|                       |                          |                       |                |      |       |       |      |          |       |       |          |     
|Rental revenues        |                          |                       |                |      |       |       |      |          |       |       |          |      |      |      |      |      
|                       | U.S. industrial:         |                       |                |      |       |       |      |          |       |       |          |      |      |      |      |       |      
|                       |                          | Same store            |                | $    | 514.1 |       |      | $        | 485.4 |       |          | $    | 28.7 |      |      |       | 5.9   | %   
|                       |                          | 2004 acquisitions     |                |      | 25.2  |       |      |          |      |       |          |      | 25.2 |      |      |       |      | %   
|                       |                          | Development           |                |      | 6.2   |       |      |          | 6.9   |       |          |      | (0.7 | )    |      |       | (10.1 | )%  
|                       |                          | Other industrial      |                |      | 7.7   |       |      |          | 4.4   |       |          |      | 3.3  |      |      |       | 75.0  | %   
|                       | International industrial |                       |                | 25.2 |       |       |      | 6.1      |       |       |          | 19.1 |      |      |      | 313.1 | %    
|                       | Retail                   |                       |                | 1.1  |       |       |      | 0.9      |       |       |          | 0.2  |      |      |      | 22.2  | %    
|                       |                          |                       |                |      |       |       |      |          |       |       |          |     
|                       |                          | Total rental revenues |                |      | 579.5 |       |      |          | 503.7 |       |          |      | 75.8 |      |      |       | 15.0  | %   
|Private capital income |                          |                       | 12.9           |      |       |       | 13.3 |          |       |       | (0.4     | )    |      |      | (3.0 | )%   
|                       |                          |                       |                |      |       |       |      |          |       |       |          |     
|                       |                          |                       | Total revenues |      | $     | 592.4 |      |          | $     | 517.0 |          |      | $    | 75.4 |      |       |       | 14.6 | %
|                       |                          |                       |                |      |       |       |      |          |       |       |          |     



|                              |                          |                                |                          |      |       |       |       |          |       |       |          |     |      |      |        |         |       |      |  
|----------------------------- | ------------------------ | ------------------------------ | ------------------------ | ---- | ----- | ----- | ----- | -------- | ----- | ----- | -------- | --- | ---- | ---- | ------ | ------- | ----- | ---- | -
|Costs and Expenses            |                          | 2004                           |                          |      | 2003  |       |       | $ Change |       |       | % Change |    
|                              |                          |                                |                          |      |       |       |       |          |       |       |          |    
|Property operating costs:     |                          |                                |                          |      |       |       |       |          |       |       |          |     |      |      |        |        
|                              | Rental expenses          |                                | $                        | 83.0 |       |       | $     | 73.2     |       |       | $        | 9.8 |      |      |        | 13.4    | %    
|                              | Real estate taxes        |                                |                          | 65.3 |       |       |       | 59.6     |       |       |          | 5.7 |      |      |        | 9.6     | %    
|                              |                          |                                |                          |      |       |       |       |          |       |       |          |    
|                              |                          | Total property operating costs |                          | $    | 148.3 |       |       | $        | 132.8 |       |          | $   | 15.5 |      |        |         | 11.7  | %   
|                              |                          |                                |                          |      |       |       |       |          |       |       |          |    
|Property operating costs      |                          |                                |                          |      |       |       |       |          |       |       |          |     |      |      |        |        
|                              | U.S. industrial:         |                                |                          |      |       |       |       |          |       |       |          |     |      |      |        |         |      
|                              |                          | Same store                     |                          | $    | 133.5 |       |       | $        | 126.8 |       |          | $   | 6.7  |      |        |         | 5.3   | %   
|                              |                          | 2004 acquisitions              |                          |      | 6.8   |       |       |          |      |       |          |     | 6.8  |      |        |         |      | %   
|                              |                          | Development                    |                          |      | 1.8   |       |       |          | 3.8   |       |          |     | (2.0 | )    |        |         | (52.6 | )%  
|                              |                          | Other industrial               |                          |      | 0.9   |       |       |          | 1.4   |       |          |     | (0.5 | )    |        |         | (35.7 | )%  
|                              | International industrial |                                |                          | 4.8  |       |       |       | 0.4      |       |       |          | 4.4 |      |      |        | 1,100.0 | %    
|                              | Retail                   |                                |                          | 0.5  |       |       |       | 0.4      |       |       |          | 0.1 |      |      |        | 25.0    | %    
|                              |                          |                                |                          |      |       |       |       |          |       |       |          |    
|                              |                          | Total property operating costs |                          |      | 148.3 |       |       |          | 132.8 |       |          |     | 15.5 |      |        |         | 11.7  | %   
|Depreciation and amortization |                          |                                | 141.1                    |      |       |       | 116.1 |          |       |       | 25.0     |     |      |      | 21.5   | %      
|Impairment losses             |                          |                                |                         |      |       |       | 5.3   |          |       |       | (5.3     | )   |      |      | (100.0 | )%     
|General and administrative    |                          |                                | 58.8                     |      |       |       | 46.4  |          |       |       | 12.4     |     |      |      | 26.7   | %      
|Fund costs                    |                          |                                | 1.7                      |      |       |       | 0.8   |          |       |       | 0.9      |     |      |      | 112.5  | %      
|                              |                          |                                |                          |      |       |       |       |          |       |       |          |    
|                              |                          |                                | Total costs and expenses |      | $     | 349.9 |       |          | $     | 301.4 |          |     | $    | 48.5 |        |         |       | 16.1 | %
|                              |                          |                                |                          |      |       |       |       |          |       |       |          |    

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|                                                         |                                        |      |        |        |      |   |        |          |   |   |          |      |  |  |       |      |  
|-------------------------------------------------------- | -------------------------------------- | ---- | ------ | ------ | ---- | - | ------ | -------- | - | - | -------- | ---- |  |  | ----- | ---- | -
|Other Income and (Expenses)                              |                                        | 2004 |        |        | 2003 |   |        | $ Change |   |   | % Change |     
|                                                         |                                        |      |        |        |      |   |        |          |   |   |          |     
|Equity in earnings of unconsolidated joint ventures, net |                                        | $    | 3.8    |        |      | $ | 5.5    |          |   | $ | (1.7     | )    |  |  | (30.9 | )%  
|Interest and other income                                |                                        |      | 3.8    |        |      |   | 4.0    |          |   |   | (0.2     | )    |  |  | (5.0  | )%  
|Gains from dispositions of real estate interests         |                                        |      | 5.2    |        |      |   | 7.4    |          |   |   | (2.2     | )    |  |  | (29.7 | )%  
|Development profits, net of taxes                        |                                        |      | 8.5    |        |      |   | 14.4   |          |   |   | (5.9     | )    |  |  | (41.0 | )%  
|Interest expense, including amortization                 |                                        |      | (144.9 | )      |      |   | (131.9 | )        |   |   | 13.0     |      |  |  | 9.9   | %   
|                                                         |                                        |      |        |        |      |   |        |          |   |   |          |     
|                                                         | Total other income and (expenses), net |      | $      | (123.6 | )    |   | $      | (100.6   | ) |   | $        | 23.0 |  |  |       | 22.9 | %
|                                                         |                                        |      |        |        |      |   |        |          |   |   |          |     



|                                                                              |                               |      |      |      |      |   |      |          |  |   |          |       |   |  |       |       |   
|----------------------------------------------------------------------------- | ----------------------------- | ---- | ---- | ---- | ---- | - | ---- | -------- |  | - | -------- | ----- | - |  | ----- | ----- | --
|Discontinued Operations                                                       |                               | 2004 |      |      | 2003 |   |      | $ Change |  |   | % Change |      
|                                                                              |                               |      |      |      |      |   |      |          |  |   |          |      
|Income attributable to discontinued operations, net of minority
    interests |                               | $    | 18.9 |      |      | $ | 29.2 |          |  | $ | (10.3    | )     |   |  | (35.3 | )%   
|Gains from dispositions of real estate, net of minority interests             |                               |      | 44.7 |      |      |   | 45.4 |          |  |   | (0.7     | )     |   |  | (1.5  | )%   
|                                                                              |                               |      |      |      |      |   |      |          |  |   |          |      
|                                                                              | Total discontinued operations |      | $    | 63.6 |      |   | $    | 74.6     |  |   | $        | (11.0 | ) |  |       | (14.7 | )%
|                                                                              |                               |      |      |      |      |   |      |          |  |   |          |      



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|                                                               |                       |      |       |       |      |   |       |          |   |   |          |       |   |  |       |       |   
|-------------------------------------------------------------- | --------------------- | ---- | ----- | ----- | ---- | - | ----- | -------- | - | - | -------- | ----- | - |  | ----- | ----- | --
|Preferred Units                                                |                       | 2004 |       |       | 2003 |   |       | $ Change |   |   | % Change |      
|                                                               |                       |      |       |       |      |   |       |          |   |   |          |      
|Preferred unit distributions                                   |                       | $    | (13.5 | )     |      | $ | (18.2 | )        |   | $ | (4.7     | )     |   |  | (25.8 | )%   
|Preferred unit redemption discount/(issuance costs or premium) |                       |      |      |       |      |   | (5.4  | )        |   |   | (5.4     | )     |   |  | 100.0 | %    
|                                                               |                       |      |       |       |      |   |       |          |   |   |          |      
|                                                               | Total preferred units |      | $     | (13.5 | )    |   | $     | (23.6    | ) |   | $        | (10.1 | ) |  |       | (42.8 | )%
|                                                               |                       |      |       |       |      |   |       |          |   |   |          |      

5 8





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 contributions from co-investment
    partners; and                                                                      
|
| |  | net proceeds from 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.



44



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Capital Resources


Dispositions of Real Estate Interests.




Property Divestitures.


Development Sales and Contributions.


Properties Held for Contribution.


Properties Held for Divestiture.


Co-investment Joint Ventures.




45



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|                                             |  |                                                                   |  |             |    |   |                   |   |         | 
|-------------------------------------------- |  | ----------------------------------------------------------------- |  | ----------- | -- | - | ----------------- | - | ------- | 
|                                             |  |                                                                   |  | 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 Partners II, L.P.                        |  | City and County of San Francisco Employees Retirement
    System |  |             | 20 | % |                   | $ | 580,000 | 
|AMB-SGP, L.P.                                |  | Industrial JV Pte Ltd(2)                                          |  |             | 50 | % |                   | $ | 425,000 | 
|AMB Institutional Alliance Fund II, L.P.     |  | AMB Institutional Alliance REIT II, Inc.(3)                       |  |             | 20 | % |                   | $ | 489,000 | 
|AMB-AMS, L.P.(4)                             |  | PMT, SPW and TNO(5)                                               |  |             | 39 | % |                   | $ | 200,000 | 
|AMB Institutional Alliance Fund III, L.P.(6) |  | AMB Institutional Alliance REIT III, Inc.                         |  |             | 20 | % |                   |   | N/A     | 






|    |                                                                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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.                                                                                                            
|   
|(3) | Comprised of 14 institutional investors as stockholders as of
    December 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, 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   |    
|AMB Japan Fund I, L.P.                     |  |                       | Institutional investors(3)        |             |            |  | 20               | %                 |  | $ | 2,100,000 | (4)






|    |                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------
|(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.        
|   
|(3) | Comprised of 13 institutional investors as of December 31,
    2005.                                  
|   
|(4) | Using the exchange rate at December 31, 2005.                                                         

Partners Capital.




46



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Debt. debt-to debt-to loan-to


47



---



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Credit Facilities.




48



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Mortgages Receivable.


49



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|                                                                     |                      |                            |         |         |         |   |          |             |           |   |           |         |         |               |        |        |            |   |         |         |         |   |          |           |           | 
|-------------------------------------------------------------------- | -------------------- | -------------------------- | ------- | ------- | ------- | - | -------- | ----------- | --------- | - | --------- | ------- | ------- | ------------- | ------ | ------ | ---------- | - | ------- | ------- | ------- | - | -------- | --------- | --------- | 
|Debt                                                                 |                     
|                                                                     |                     
|                                                                     |                      | Our                        |         |         | Joint   |   |          | Unsecured   |           |   |          
|                                                                     |                      | Secured                    |         |         | Venture |   |          | Senior Debt |           |   | Unsecured |         |         | Credit        |        |        |           
|                                                                     |                      | Debt(4)                    |         |         | Debt    |   |          | Securities  |           |   | Debt      |         |         | Facilities(1) |        |        | Total Debt |  
|                                                                     |                      |                            |         |         |         |   |          |             |           |   |           |         |         |               |        |        |            |  
|2006                                                                 |                      | $                          | 65,369  |         |         | $ | 79,262   |             |           | $ | 75,000    |         |         | $             | 16,280 |        |            | $ |        |         |         | $ | 235,911  |          
|2007                                                                 |                      |                            | 12,680  |         |         |   | 58,124   |             |           |   | 75,000    |         |         |               | 752    |        |            |   | 422,602 |         |         |   | 569,158  |          
|2008                                                                 |                      |                            | 40,705  |         |         |   | 178,795  |             |           |   | 175,000   |         |         |               | 810    |        |            |   | 67,470  |         |         |   | 462,780  |          
|2009                                                                 |                      |                            | 5,264   |         |         |   | 120,551  |             |           |   | 100,000   |         |         |               | 873    |        |            |   |        |         |         |   | 226,688  |          
|2010                                                                 |                      |                            | 71,078  |         |         |   | 116,927  |             |           |   | 250,000   |         |         |               | 941    |        |            |   |        |         |         |   | 438,946  |          
|2011                                                                 |                      |                            | 21,573  |         |         |   | 357,207  |             |           |   | 75,000    |         |         |               | 1,014  |        |            |   |        |         |         |   | 454,794  |          
|2012                                                                 |                      |                            | 254,996 |         |         |   | 171,442  |             |           |   |          |         |         |               | 1,093  |        |            |   |        |         |         |   | 427,531  |          
|2013                                                                 |                      |                            | 14,773  |         |         |   | 196,894  |             |           |   |          |         |         |               | 920    |        |            |   |        |         |         |   | 212,587  |          
|2014                                                                 |                      |                            | 15,066  |         |         |   | 4,684    |             |           |   |          |         |         |               | 616    |        |            |   |        |         |         |   | 20,366   |          
|2015                                                                 |                      |                            | 1,951   |         |         |   | 61,653   |             |           |   | 100,000   |         |         |               | 664    |        |            |   |        |         |         |   | 164,268  |          
|Thereafter                                                           |                      |                            | 19,004  |         |         |   | 32,544   |             |           |   | 125,000   |         |         |               |       |        |            |   |        |         |         |   | 176,548  |          
|                                                                     |                      |                            |         |         |         |   |          |             |           |   |           |         |         |               |        |        |            |  
|                                                                     | Subtotal             |                            |         | 522,459 |         |   |          | 1,378,083   |           |   |           | 975,000 |         |               |        | 23,963 |            |   |         | 490,072 |         |   |          | 3,389,577 |          
|                                                                     | Unamortized premiums |                            |         | 2,577   |         |   |          | 9,407       |           |   |           |        |         |               |        |       |            |   |         |        |         |   |          | 11,984    |          
|                                                                     |                      |                            |         |         |         |   |          |             |           |   |           |         |         |               |        |        |            |  
|                                                                     |                      | Total consolidated debt    |         |         | 525,036 |   |          |             | 1,387,490 |   |           |         | 975,000 |               |        |        | 23,963     |   |         |         | 490,072 |   |          |           | 3,401,561 | 
|Our share of unconsolidated joint venture debt(2)                    |                      |                            |        |         |         |   | 161,120  |             |           |   |          |         |         |               |       |        |            |   |        |         |         |   | 161,120  |          
|                                                                     |                      |                            |         |         |         |   |          |             |           |   |           |         |         |               |        |        |            |  
|                                                                     |                      | Total debt                 |         |         | 525,036 |   |          |             | 1,548,610 |   |           |         | 975,000 |               |        |        | 23,963     |   |         |         | 490,072 |   |          |           | 3,562,681 | 
|Joint venture partners share of consolidated joint venture
    debt |                      |                            |        |         |         |   | (960,803 | )           |           |   |          |         |         |               |       |        |            |   |        |         |         |   | (960,803 | )        
|                                                                     |                      |                            |         |         |         |   |          |             |           |   |           |         |         |               |        |        |            |  
|                                                                     |                      | Our share of total debt(3) |         | $       | 525,036 |   |          | $           | 587,807   |   |           | $       | 975,000 |               |        | $      | 23,963     |   |         | $       | 490,072 |   |          | $         | 2,601,878 | 
|                                                                     |                      |                            |         |         |         |   |          |             |           |   |           |         |         |               |        |        |            |  
|Weighted average interest rate                                       |                      |                            | 4.1     | %       |         |   | 6.3      | %           |           |   | 6.2       | %       |         |               | 8.2    | %      |            |   | 2.2     | %       |         |   | 5.3      | %        
|Weighted average maturity (in years)                                 |                      |                            | 5.8     |         |         |   | 5.7      |             |           |   | 5.2       |         |         |               | 3.1    |        |            |   | 1.6     |         |         |   | 4.9      |          






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes $173.1 million, $249.5 million and
    $67.5 million in Euro, Yen and Canadian dollar based
    borrowings, respectively, translated to U.S. dollars using
    the functional exchange rates in effect on December 31,
    2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|(2) | The weighted average interest and maturity for the
    unconsolidated joint venture debt were 5.3% and 3.7 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.

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|    |                                                                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(4) | Our secured debt and joint venture debt include debt related to
    international assets in the amount of $383.0 million. Of
    this, $250.5 million is associated with assets located in
    Asia and the remaining $132.5 million is related to assets
    located in Europe.

|                                       |       |             |            |            |          |   |       |          |  |   |           |           | 
|-------------------------------------- | ----- | ----------- | ---------- | ---------- | -------- | - | ----- | -------- |  | - | --------- | --------- | 
|Market Capital as of December 31, 2005 |      
|                                       |      
|                                       |       | Units       |            |            | Market   |   |       | Market   | 
|Security                               |       | Outstanding |            |            | Price(1) |   |       | Value(1) | 
|                                       |       |             |            |            |          |   |       |          | 
|Common general partnership units       |       |             | 85,585,494 |            |          | $ | 49.17 |          |  | $ | 4,208,239 |          
|Common limited partnership units(2)    |       |             | 4,396,525  |            |          | $ | 49.17 |          |  |   | 216,177   |          
|                                       |       |             |            |            |          |   |       |          | 
|                                       | Total |             |            | 89,982,019 |          |   |       |          |  |   | $         | 4,424,416 | 
|                                       |       |             |            |            |          |   |       |          | 






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

|                            |                        |              |      |      |             |   |        |                       |  |  |                               |  | 
|--------------------------- | ---------------------- | ------------ | ---- | ---- | ----------- | - | ------ | --------------------- |  |  | ----------------------------- |  | 
|Preferred Units             |                       
|                            |                       
|                            |                        | Distribution |      |      | Liquidation |   |        |                      
|Security                    |                        | Rate         |      |      | Preference  |   |        | Redemption 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(1) |                        |              | 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                 | 
|Series O preferred units    |                        |              | 7.00 | %    |             |   | 75,000 |                       |  |  | November 2008                 | 
|                            |                        |              |      |      |             |   |        |                       | 
|                            | Weighted average/total |              |      | 7.24 | %           |   | $      | 467,325               |  |  |                               |  | 
|                            |                        |              |      |      |             |   |        |                       | 






|    |                                                                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The holder of the series N preferred units exercised its
    put option in January 2006 and sold all of its series N
    preferred units to us at a price equal to $50 per unit,
    plus all accrued and unpaid distributions.

|                                                                                          |  |  |      |  
|----------------------------------------------------------------------------------------- |  |  | ---- | -
|Capitalization Ratios as of December 31, 2005                                             | 
|                                                                                          | 
|Total debt-to-total market capitalization(1)                                              |  |  | 42.1 | %
|Our share of total debt-to-our share of total market
    capitalization(1)                |  |  | 34.7 | %
|Total debt plus preferred-to-total market capitalization(1)                               |  |  | 47.6 | %
|Our share of total debt plus preferred-to-our share of total
    market capitalization(1) |  |  | 40.9 | %
|Our share of total debt-to-our share of total book
    capitalization(1)                  |  |  | 53.3 | %






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 December 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

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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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






|                      |  |                                          |  |      |      |  |      |   |      |      |  |   |      | 
|--------------------- |  | ---------------------------------------- |  | ---- | ---- |  | ---- | - | ---- | ---- |  | - | ---- | 
|Paying Entity         |  | Security                                 |  | 2005 |      |  | 2004 |   |      | 2003 | 
|                      |  |                                          |  |      |      |  |      |   |      |      | 
|AMB Property, L.P.    |  | Common limited partnership units         |  | $    | 1.76 |  |      | $ | 1.70 |      |  | $ | 1.66 | 
|AMB Property, L.P.    |  | Series B preferred units                 |  |      | n/a  |  |      |   | n/a  |      |  | $ | 3.71 | 
|AMB Property, L.P.    |  | Series J preferred units                 |  | $    | 3.98 |  |      | $ | 3.98 |      |  | $ | 3.98 | 
|AMB Property, L.P.    |  | Series K preferred units                 |  | $    | 3.98 |  |      | $ | 3.98 |      |  | $ | 3.98 | 
|AMB Property II, L.P. |  | Class B common limited partnership units |  | $    | 1.76 |  |      | $ | 1.70 |      |  | $ | 0.22 | 
|AMB Property II, L.P. |  | Series D preferred units                 |  | $    | 3.88 |  |      | $ | 3.88 |      |  | $ | 3.88 | 
|AMB Property II, L.P. |  | Series E preferred units                 |  | $    | 3.88 |  |      | $ | 3.88 |      |  | $ | 3.88 | 
|AMB Property II, L.P. |  | Series F preferred units                 |  | $    | 3.98 |  |      | $ | 3.98 |      |  | $ | 3.98 | 
|AMB Property II, L.P. |  | Series H preferred units                 |  | $    | 4.06 |  |      | $ | 4.06 |      |  | $ | 4.06 | 
|AMB Property II, L.P. |  | Series I preferred units                 |  | $    | 4.00 |  |      | $ | 4.00 |      |  | $ | 4.00 | 
|AMB Property II, L.P. |  | Series N preferred units(1)              |  | $    | 2.50 |  |      | $ | 0.70 |      |  |   | n/a  | 






|    |                                                                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The holder of the series N preferred units exercised its
    put option in January 2006 and sold all of its series N
    preferred units to us at a price equal to $50 per unit,
    plus all accrued and unpaid distributions.



Capital Commitments


Developments.


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Acquisitions.


Lease Commitments.


|           |       |   |         |         | 
|---------- | ----- | - | ------- | ------- | 
|2006       |       | $ | 20,894  |        
|2007       |       |   | 21,036  |        
|2008       |       |   | 20,617  |        
|2009       |       |   | 20,327  |        
|2010       |       |   | 19,997  |        
|Thereafter |       |   | 278,759 |        
|           |       |   |        
|           | Total |   | $       | 381,630 | 
|           |       |   |        

Co-investment Joint Ventures.


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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.                                       

Overview of Contractual Obligations




|                            |       |           |         |         |           |   |           |           |           |   |         |         |  |       |           |           |  |   |           |           | 
|--------------------------- | ----- | --------- | ------- | ------- | --------- | - | --------- | --------- | --------- | - | ------- | ------- |  | ----- | --------- | --------- |  | - | --------- | --------- | 
|                            |       | Less than |         |         |           |   |           |           | More than |   |         |        
|Contractual Obligations     |       | 1 Year    |         |         | 1-3 Years |   |           | 3-5 Years |           |   | 5 Years |         |  | Total |          
|                            |       |           |         |         |           |   |           |           |           |   |         |         |  |       |          
|Debt                        |       | $         | 235,911 |         |           | $ | 1,031,938 |           |           | $ | 665,634 |         |  | $     | 1,456,094 |           |  | $ | 3,389,577 |          
|Debt interest payments      |       |           | 14,459  |         |           |   | 46,749    |           |           |   | 37,056  |         |  |       | 83,106    |           |  |   | 181,370   |          
|Operating lease commitments |       |           | 20,894  |         |           |   | 41,653    |           |           |   | 40,324  |         |  |       | 278,759   |           |  |   | 381,630   |          
|Construction commitments    |       |           |        |         |           |   | 136,600   |           |           |   |        |         |  |       |          |           |  |   | 136,600   |          
|                            |       |           |         |         |           |   |           |           |           |   |         |         |  |       |          
|                            | Total |           | $       | 271,264 |           |   | $         | 1,256,940 |           |   | $       | 743,014 |  |       | $         | 1,817,959 |  |   | $         | 4,089,177 | 
|                            |       |           |         |         |           |   |           |           |           |   |         |         |  |       |          




OFF-BALANCE SHEET ARRANGEMENTS


Standby Letters of Credit.


Guarantees. ,


54



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Performance and Surety Bonds.


Promoted Interests and Other Contractual Obligations.





SUPPLEMENTAL EARNINGS MEASURES


FFO.




55



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|                                                                            |                                                                               |                       |          |          |            |   |         |         |            |   |         |         |            |      |         |         |            |   |         |         |            | 
|--------------------------------------------------------------------------- | ----------------------------------------------------------------------------- | --------------------- | -------- | -------- | ---------- | - | ------- | ------- | ---------- | - | ------- | ------- | ---------- | ---- | ------- | ------- | ---------- | - | ------- | ------- | ---------- | 
|                                                                            |                                                                               | 2005                  |          |          | 2004       |   |         | 2003    |            |   | 2002    |         |            | 2001 |        
|                                                                            |                                                                               |                       |          |          |            |   |         |         |            |   |         |         |            |      |        
|Net income(1)                                                               |                                                                               | $                     | 277,749  |          |            | $ | 138,516 |         |            | $ | 147,089 |         |            | $    | 139,054 |         |            | $ | 150,272 |        
|Income available to common unitholders attributable to limited
    partners |                                                                               |                       | (13,582  | )        |            |   | (6,685  | )       |            |   | (6,773  | )       |            |      | (6,659  | )       |            |   | (7,591  | )      
|Gains from dispositions of real estate, net of minority
    interests(2)    |                                                                               |                       | (132,652 | )        |            |   | (47,224 | )       |            |   | (50,325 | )       |            |      | (19,383 | )       |            |   | (41,859 | )      
|Real estate, related depreciation and amortization:                         |                                                                               |                       |          |          |            |   |         |         |            |   |         |         |            |      |         |         |            |   |         |        
|                                                                            | Total depreciation and amortization                                           |                       |          | 165,438  |            |   |         | 141,120 |            |   |         | 116,067 |            |      |         | 107,097 |            |   |         | 90,527  |           
|                                                                            | Discontinued operations depreciation                                         |                       |          | 14,866   |            |   |         | 26,230  |            |   |         | 26,270  |            |      |         | 29,406  |            |   |         | 23,016  |           
|                                                                            | Non-real estate depreciation                                                  |                       |          | (3,388   | )          |   |         | (871    | )          |   |         | (720    | )          |      |         | (712    | )          |   |         | (731    | )         
|                                                                            | Ground lease amortization                                                     |                       |          |         |            |   |         |        |            |   |         |        |            |      |         | (2,301  | )          |   |         | (1,232  | )         
|Adjustments to derive FFO from consolidated joint ventures:                 |                                                                               |                       |          |          |            |   |         |         |            |   |         |         |            |      |         |         |            |   |         |        
|                                                                            | Joint venture partners minority interests (Net Income)                       |                       |          | 36,398   |            |   |         | 29,544  |            |   |         | 21,015  |            |      |         | 15,112  |            |   |         | 11,288  |           
|                                                                            | Limited partnership unitholders minority interests (Net
    Income)          |                       |          | 3,681    |            |   |         | 2,615   |            |   |         | 2,378   |            |      |         | 3,572   |            |   |         | 4,836   |           
|                                                                            | Limited partnership unitholders minority interests
    (Development profits) |                       |          | 2,262    |            |   |         | 435     |            |   |         | 344     |            |      |         | 57      |            |   |         | 764     |           
|                                                                            | Discontinued operations minority interests (Net Income)                      |                       |          | 8,502    |            |   |         | 13,549  |            |   |         | 16,214  |            |      |         | 17,745  |            |   |         | 17,595  |           
|                                                                            | FFO attributable to minority interests                                        |                       |          | (100,275 | )          |   |         | (80,192 | )          |   |         | (65,603 | )          |      |         | (52,051 | )          |   |         | (40,144 | )         
|Adjustments to derive FFO from unconsolidated joint ventures:               |                                                                               |                       |          |          |            |   |         |         |            |   |         |         |            |      |         |         |            |   |         |        
|                                                                            | Our share of net income                                                       |                       |          | (10,770  | )          |   |         | (3,781  | )          |   |         | (5,445  | )          |      |         | (5,674  | )          |   |         | (5,467  | )         
|                                                                            | Our share of FFO                                                              |                       |          | 14,441   |            |   |         | 7,549   |            |   |         | 9,755   |            |      |         | 9,291   |            |   |         | 8,014   |           
|                                                                            | Our share of development profits, net of taxes                                |                       |          | 5,441    |            |   |         |         |            |   |         |         |            |      |         |         |            |   |         |         |           
|Preferred unit distributions                                                |                                                                               |                       | (13,748  | )        |            |   | (13,491 | )       |            |   | (18,187 | )       |            |      | (19,772 | )       |            |   | (14,981 | )      
|Preferred unit redemption discount (issuance costs)                         |                                                                               |                       |         |          |            |   |        |         |            |   | (5,413  | )       |            |      | 412     |         |            |   | (7,600  | )      
|                                                                            |                                                                               |                       |          |          |            |   |         |         |            |   |         |         |            |      |        
|                                                                            |                                                                               | Funds from operations |          | $        | 254,363    |   |         | $       | 207,314    |   |         | $       | 186,666    |      |         | $       | 215,194    |   |         | $       | 186,707    | 
|                                                                            |                                                                               |                       |          |          |            |   |         |         |            |   |         |         |            |      |        
|Basic FFO per common unit                                                   |                                                                               | $                     | 2.87     |          |            | $ | 2.39    |         |            | $ | 2.17    |         |            | $    | 2.44    |         |            | $ | 2.09    |        
|                                                                            |                                                                               |                       |          |          |            |   |         |         |            |   |         |         |            |      |        
|Diluted FFO per common unit                                                 |                                                                               | $                     | 2.75     |          |            | $ | 2.30    |         |            | $ | 2.13    |         |            | $    | 2.40    |         |            | $ | 2.07    |        
|                                                                            |                                                                               |                       |          |          |            |   |         |         |            |   |         |         |            |      |        
|Weighted average common units:                                              |                                                                               |                       |          |          |            |   |         |         |            |   |         |         |            |      |         |         |            |   |         |        
|                                                                            |                                                                               | Basic                 |          |          | 88,684,262 |   |         |         | 86,885,250 |   |         |         | 85,859,899 |      |         |         | 88,204,208 |   |         |         | 89,286,379 | 
|                                                                            |                                                                               |                       |          |          |            |   |         |         |            |   |         |         |            |      |        
|                                                                            |                                                                               | Diluted               |          |          | 92,508,725 |   |         |         | 90,120,250 |   |         |         | 87,616,365 |      |         |         | 89,689,310 |   |         |         | 90,325,801 | 
|                                                                            |                                                                               |                       |          |          |            |   |         |         |            |   |         |         |            |      |        






|    |                                                                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes gains from undepreciated land sales of
    $25.0 million, $3.7 million and $1.2 million for
    2005, 2004 and 2003, respectively.                        
|   
|(2) | 2005 includes accumulated depreciation re-capture of
    approximately $1.1 million associated with the sale of the
    Interstate Crossdock redevelopment project.

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SS NOI.









|         |                                                               
|-------- | --------------------------------------------------------------
|Item 7a. | Quantitative and Qualitative Disclosures about Market
    Risk





|                      |  |      |         |   |      |   |         |      |  |   |         |   |  |      |         |   |            |   |         |       |  |   |           |   |  |   |           |  
|--------------------- |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | - |  | ---- | ------- | - | ---------- | - | ------- | ----- |  | - | --------- | - |  | - | --------- | -
|                      |  | 2006 |         |   | 2007 |   |         | 2008 |  |   | 2009    |   |  | 2010 |         |   | Thereafter |   |         | Total | 
|                      |  |      |         |   |      |   |         |      |  |   |         |   |  |      |         |   |            |   |         |       | 
|Fixed rate debt(1)    |  | $    | 165,953 |   |      | $ | 129,214 |      |  | $ | 374,174 |   |  | $    | 190,548 |   |            | $ | 437,934 |       |  | $ | 1,260,015 |   |  | $ | 2,557,838 |  
|Average interest rate |  |      | 6.9     | % |      |   | 7.2     | %    |  |   | 6.9     | % |  |      | 5.0     | % |            |   | 6.1     | %     |  |   | 6.3       | % |  |   | 6.3       | %
|Variable rate debt(2) |  | $    | 69,958  |   |      | $ | 439,944 |      |  | $ | 88,606  |   |  | $    | 36,140  |   |            | $ | 1,012   |       |  | $ | 196,079   |   |  | $ | 831,739   |  
|Average interest rate |  |      | 4.3     | % |      |   | 2.2     | %    |  |   | 2.2     | % |  |      | 2.2     | % |            |   | 2.0     | %     |  |   | 1.9       | % |  |   | 2.3       | %
|Interest Payments     |  | $    | 14,459  |   |      | $ | 18,982  |      |  | $ | 27,767  |   |  | $    | 10,322  |   |            | $ | 26,734  |       |  | $ | 83,106    |   |  | $ | 181,370   |  






|    |                                          
|--- | -----------------------------------------
|(1) | Represents 75.5% of all outstanding debt.
|   
|(2) | Represents 24.5% of all outstanding debt.





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Financial Instruments.


|                                        |       |                |       |  |           |   |       |             |  |   |             |   |  |          |          |   |            |   |         |         |  |   |      |     | 
|--------------------------------------- | ----- | -------------- | ----- |  | --------- | - | ----- | ----------- |  | - | ----------- | - |  | -------- | -------- | - | ---------- | - | ------- | ------- |  | - | ---- | --- | 
|                                        |       | Maturity Dates |       |  |           |   |      
|                                        |       |                |       |  |           |   |      
|                                        |       | January 8,     |       |  | March 31, |   |       | December 8, |  |   | October 29, |   |  | Notional |          |   |           
|Related Derivatives (In thousands)      |       | 2006           |       |  | 2006      |   |       | 2008        |  |   | 2012        |   |  | Amount   |          |   | Fair Value |  
|                                        |       |                |       |  |           |   |       |             |  |   |             |   |  |          |          |   |            |  
|Interest Rate Swaps:                    |       |                |       |  |           |   |       |             |  |   |             |   |  |          |          |   |            |   |         |         |  |   |      |    
|Plain Interest Rate Swap, Japan         |       |                |       |  |           |   |       |             |  |   |             |   |  |          |          |   |            |   |         |         |  |   |      |    
|Notional Amount (U.S. Dollars)          |       |                |       |  |           |   |       |             |  |   |             |   |  | $        | 110,403  |   |            | $ | 110,403 |         |  |   |      |    
|Receive Floating(%)                     |       |                |       |  |           |   |       |             |  |   |             |   |  |          | 3M TIBOR |   |            |   |         |         |  |   |      |    
|Pay Fixed Rate(%)                       |       |                |       |  |           |   |       |             |  |   |             |   |  |          | 1.32     | % |            |   |         |         |  |   |      |    
|Fair Market Value                       |       |                |       |  |           |   |       |             |  |   |             |   |  |          |          |   |            |   |         |         |  | $ | 760  |    
|Plain Interest Rate Swap, Europe        |       |                |       |  |           |   |       |             |  |   |             |   |  |          |          |   |            |   |         |         |  |   |      |    
|Notional Amount (U.S. Dollars)          |       |                |       |  |           |   |       |             |  | $ | 9,118       |   |  |          |          |   |            |   | 9,118   |         |  |   |      |    
|Receive Floating(%)                     |       |                |       |  |           |   |       |             |  |   | 3M EURIBOR  |   |  |          |          |   |            |   |         |         |  |   |      |    
|Pay Fixed Rate(%)                       |       |                |       |  |           |   |       |             |  |   | 3.72        | % |  |          |          |   |            |   |         |         |  |   |      |    
|Fair Market Value                       |       |                |       |  |           |   |       |             |  |   |             |   |  |          |          |   |            |   |         |         |  |   | (173 | )  
|Foreign Exchange Agreements:            |       |                |       |  |           |   |       |             |  |   |             |   |  |          |          |   |            |   |         |         |  |   |      |    
|Mexico                                  |       |                |       |  |           |   |       |             |  |   |             |   |  |          |          |   |            |   |         |         |  |   |      |    
|Options to Sell MXN/ Buy USD            |       |                |       |  |           |   |       |             |  |   |             |   |  |          |          |   |            |   |         |         |  |   |      |    
|Contract Amount (U.S. Dollars)          |       |                |       |  |           | $ | 4,492 |             |  |   |             |   |  |          |          |   |            |   | 4,492   |         |  |   |      |    
|Contract FX Rate                        |       |                |       |  |           |   | 10.96 |             |  |   |             |   |  |          |          |   |            |   |         |         |  |   |      |    
|Contract Premium                        |       |                |       |  |           | $ | 64    |             |  |   |             |   |  |          |          |   |            |   |         |         |  |   | 41   |    
|Europe                                  |       |                |       |  |           |   |       |             |  |   |             |   |  |          |          |   |            |   |         |         |  |   |      |    
|Options to Sell EUR/ Buy (U.S. Dollars) |       |                |       |  |           |   |       |             |  |   |             |   |  |          |          |   |            |   |         |         |  |   |      |    
|Contract Amount (U.S. Dollars)          |       | $              | 1,180 |  |           |   |       |             |  |   |             |   |  |          |          |   |            |   | 1,184   |         |  |   |      |    
|Contract FX Rate                        |       |                | 1.18  |  |           |   |       |             |  |   |             |   |  |          |          |   |            |   |         |         |  |   |      |    
|Contract Premium                        |       | $              | 5     |  |           |   |       |             |  |   |             |   |  |          |          |   |            |   |         |         |  |   | 3    |    
|                                        |       |                |       |  |           |   |       |             |  |   |             |   |  |          |          |   |            |  
|                                        | Total |                |       |  |           |   |       |             |  |   |             |   |  |          |          |   |            |   | $       | 125,197 |  |   | $    | 631 | 
|                                        |       |                |       |  |           |   |       |             |  |   |             |   |  |          |          |   |            |  

International Operations.


58



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|        |                                            
|------- | -------------------------------------------
|Item 8. | Financial Statements and Supplementary Data








|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|Item 9. | Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure








|         |                        
|-------- | -----------------------
|Item 9A. | Controls and Procedures

Disclosure Controls and Procedures and Changes to Internal
Control over Financial Reporting


13a-15(b)




Managements Report on Internal Control over Financial
Reporting






| |                                                                                                                                                                                                                                                                                                                                              
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) Pertain to the maintenance of records that in
    reasonable detail accurately and fairly reflect the transactions
    involving our assets;                                                                                                                                                                                             
|
| | (2) Provide reasonable assurance that transactions are
    recorded as necessary to permit preparation of financial
    statements in accordance with generally accepted accounting
    principles, and that our receipts and expenditures are being
    made only in accordance with authorizations of our management
    and directors; and
|
| | (3) Provide reasonable assurance regarding prevention or
    timely detection of unauthorized acquisition, use or disposition
    of our assets that could have a material effect on our
    consolidated financial statements.                                                                                                              

59



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|         |                  
|-------- | -----------------
|Item 9B. | Other Information



60



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##### Table of Contents






PART III





Items 10, 11, 12, 13 and 14.


10-K.





PART IV







|         |                                          
|-------- | -----------------------------------------
|Item 15. | Exhibits and Financial Statement Schedule

Financial Statements and Schedule:


10-K.


|                                                                                                      |  |      |     | 
|----------------------------------------------------------------------------------------------------- |  | ---- | --- | 
|                                                                                                      |  | Page |    
|                                                                                                      |  |      |    
|Report of Independent Registered Public Accounting Firm                                               |  |      | F-1 | 
|Consolidated Balance Sheets as of December 31, 2005 and 2004                                          |  |      | F-3 | 
|Consolidated Statements of Operations for the years ended
    December 31, 2005, 2004 and 2003        |  |      | F-4 | 
|Consolidated Statements of Partners Capital for the years
    ended December 31, 2005, 2004 and 2003 |  |      | F-5 | 
|Consolidated Statements of Cash Flows for the years ended
    December 31, 2005, 2004 and 2003        |  |      | F-6 | 
|Notes to Consolidated Financial Statements                                                            |  |      | F-7 | 
|Schedule III  Consolidated Real Estate and
    Accumulated Depreciation                              |  |      | S-1 | 



61



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Exhibits:




|        |   |             |  |                                                                                                                                                                                                                                                                                     
|------- | - | ----------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |   |            
|Number  |   | Description
|        |   |            
|        | 3 | .1          |  | Tenth Amended and Restated Agreement of Limited Partnership of
    AMB Property, L.P., dated as of November 26, 2003
    (incorporated by reference to Exhibit 3.2 of AMB Property,
    L.P.s Current Report on Form 8-K filed on
    November 26, 2003).                          
|       
|        | 4 | .1          |  | $30,000,000 7.925% Fixed Rate Note No. 1 dated
    August 18, 2000, attaching the Parent Guarantee dated
    August 18, 2000 (incorporated by reference to
    Exhibit 4.5 of AMB Property, L.P.s Annual Report on
    Form 10-K for the year ended December 31, 2000).            
|       
|        | 4 | .2          |  | $25,000,000,000 7.925% Fixed Rate Note No. 2 dated
    September 12, 2000, attaching the Parent Guarantee dated
    September 12, 2000 (incorporated by reference to
    Exhibit 4.6 of AMB Property, L.P.s Annual Report on
    Form 10-K for the year ended December 31, 2000).  
|       
|        | 4 | .3          |  | $50,000,000 8.00% Fixed Rate Note No. 3 dated
    October 26, 2000, attaching the Parent Guarantee dated
    October 26, 2000 (incorporated by reference to
    Exhibit 4.7 of AMB Property, L.P.s Annual Report on
    Form 10-K for the year ended December 31, 2000).           
|       
|        | 4 | .4          |  | $25,000,000 8.000% Fixed Rate Note No. 4 dated
    October 26, 2000, attaching the Parent Guarantee, dated
    October 26, 2000 (incorporated by reference to
    Exhibit 4.8 of AMB Property, L.P.s Form 10-K for
    the year ended December 31, 2000).                          
|       
|        | 4 | .5          |  | $50,000,000 7.20% Fixed Rate Note No. 5 dated
    December 19, 2000, attaching the Parent Guarantee dated
    December 19, 2000 (incorporated by reference to
    Exhibit 4.1 of AMB Property, L.P.s Current Report on
    Form 8-K filed on January 8, 2001).                     
|       
|        | 4 | .6          |  | $50,000,000 7.20% Fixed Rate Note No. 6 dated
    December 19, 2000, attaching the Parent Guarantee dated
    December 19, 2000 (incorporated by reference to
    Exhibit 4.2 of AMB Property, L.P.s Current Report on
    Form 8-K filed on January 8, 2001).                     
|       
|        | 4 | .7          |  | $50,000,000 7.20% Fixed Rate Note No. 7 dated
    December 19, 2000, attaching the Parent Guarantee dated
    December 19, 2000 (incorporated by reference to
    Exhibit 4.3 of AMB Property, L.P.s Current Report on
    Form 8-K filed on January 8, 2001).                     
|       
|        | 4 | .8          |  | Specimen of 7.10% Notes due 2008 (included in the First
    Supplemental Indenture incorporated by reference to
    Exhibit 4.2 of AMB Property, L.P.s Registration
    Statement on Form S-11 (No. 333-49163)).                                                                   
|       
|        | 4 | .9          |  | Specimen of 7.50% Notes due 2018 (included in the Second
    Supplemental Indenture incorporated by reference to
    Exhibit 4.3 of AMB Property, L.P.s Registration
    Statement on Form S-11 (No. 333-49163)).                                                                  
|       
|        | 4 | .10         |  | Specimen of 6.90% Reset Put Securities due 2015 (included in the
    Third Supplemental Indenture incorporated by reference to
    Exhibit 4.4 of AMB Property, L.P.s Registration
    Statement on Form S-11 (No. 333-49163)).                                                    
|       
|        | 4 | .11         |  | $25,000,000 6.90% Fixed Rate Note No. 8 dated
    January 9, 2001, attaching the Parent Guarantee dated
    January 9, 2001 (incorporated by reference to
    Exhibit 4.1 of AMB Property, L.P.s Current Report on
    Form 8-K filed on January 31, 2001).                        
|       
|        | 4 | .12         |  | $50,000,000 7.00% Fixed Rate Note No. 9 dated
    March 7, 2001, attaching the Parent Guarantee dated
    March 7, 2001 (incorporated by reference to
    Exhibit 4.1 of AMB Property, L.P.s Current Report on
    Form 8-K filed on March 16, 2001).                              
|       
|        | 4 | .13         |  | $25,000,000 6.75% Fixed Rate Note No. 10 dated
    September 6, 2001, attaching the Parent Guarantee dated
    September 6, 2001 (incorporated by reference to
    Exhibit 4.1 of AMB Property, L.P.s Current Report on
    Form 8-K filed on September 18, 2001).                 
|       
|        | 4 | .14         |  | $20,000,000 5.90% Fixed Rate Note No. 11 dated
    January 17, 2002, attaching the Parent Guarantee dated
    January 17, 2002 (incorporated by reference to
    Exhibit 4.1 of AMB Property, L.P.s Current Report on
    Form 8-K filed on January 23, 2002).                     
|       
|        | 4 | .15         |  | $75,000,000 5.53% Fixed Rate Note No. B-1 dated
    November 10, 2003, attaching the Parent Guarantee dated
    November 10, 2003 (incorporated by reference to
    Exhibit 4.1 of AMB Property, L.P.s Quarterly Report
    on Form 10-Q for the quarter ended September 30, 2003).

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|        |     |             |  |                                                                                                                                                                                                                                                                                                                                                                                                    
|------- | --- | ----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |     |            
|Number  |     | Description
|        |     |            
|        | 4   | .16         |  | $50,000,000 Floating Rate Note No. B-1 dated
    November 21, 2003, attaching the Parent Guarantee dated
    November 21, 2003 (incorporated by reference to
    Exhibit 4.1 of AMB Property, L.P.s Current Report on
    Form 8-K filed on November 21, 2003).                                                                                                                                   
|       
|        | 4   | .17         |  | $100,000,000 Fixed Rate Note No. B-2 dated
    March 16, 2004, attaching the Parent Guarantee dated
    March 16, 2004 (incorporated by reference to
    Exhibit 4.1 of AMB Property, L.P.s Current Report on
    Form 8-K filed on March 17, 2004).                                                                                                                                              
|       
|        | 4   | .18         |  | $175,000,000 Fixed Rate Note No. B-3, attaching the
    Parent Guarantee (incorporated by reference to Exhibit 10.1
    of AMB Property, L.P.s Current Report on Form 8-K
    filed on November 18, 2005).                                                                                                                                                                                        
|       
|        | 4   | .19         |  | Indenture dated as of June 30, 1998, by and among AMB
    Property, L.P., AMB Property Corporation and State Street Bank
    and Trust Company of California, N.A., as trustee (incorporated
    by reference to Exhibit 4.1 of AMB Property, L.P.s
    Registration Statement on Form S-11 (No. 333-49163)).                                                                                     
|       
|        | 4   | .20         |  | First Supplemental Indenture dated as of June 30, 1998 by
    and among AMB Property, L.P., AMB Property Corporation and State
    Street Bank and Trust Company of California, N.A., as trustee
    (incorporated by reference to Exhibit 4.2 of AMB Property,
    L.P.s Registration Statement on Form S-11
    (No. 333-49163)).                                                               
|       
|        | 4   | .21         |  | Second Supplemental Indenture dated as of June 30, 1998, by
    and among AMB Property, L.P., AMB Property Corporation and State
    Street Bank and Trust Company of California, N.A., as trustee
    (incorporated by reference to Exhibit 4.3 of AMB Property,
    L.P.s Registration Statement on Form S-11
    (No. 333-49163)).                                                             
|       
|        | 4   | .22         |  | Third Supplemental Indenture dated as of June 30, 1998, by
    and among AMB Property, L.P., AMB Property Corporation and State
    Street Bank and Trust Company of California, N.A., as trustee
    (incorporated by reference to Exhibit 4.4 of AMB Property,
    L.P.s Registration Statement on Form S-11
    (No. 333-49163)).                                                              
|       
|        | 4   | .23         |  | Fourth Supplemental Indenture, by and among AMB Property, L.P.,
    AMB Property Corporation and State Street Bank and Trust Company
    of California, N.A., as trustee (incorporated by reference to
    Exhibit 4.1 of AMB Property, L.P.s Current Report on
    Form 8-K/ A filed on November 9, 2000).                                                                                       
|       
|        | 4   | .24         |  | Fifth Supplemental Indenture dated as of May 7, 2002, by
    and among AMB Property, L.P., AMB Property Corporation and State
    Street Bank and Trust Company of California, N.A., as trustee
    (incorporated by reference to Exhibit 4.15 of AMB Property,
    L.P.s Annual Report on Form 10-K for the year ended
    December 31, 2002).                                                   
|       
|        | 4   | .25         |  | Sixth Supplemental Indenture dated as of July 11, 2005, by
    and among AMB Property, L.P., AMB Property Corporation and
    U.S. Bank National Association, as successor-in-interest to
    State Street Bank and Trust Company of California, N.A., as
    trustee (incorporated by reference to Exhibit 4.1 of AMB
    Property, L.P.s Current Report on Form 8-K filed on
    July 13, 2005).
|       
|        | 4   | .26         |  | 5.094% Notes Due 2015, attaching Parent Guarantee (incorporated
    by reference to Exhibit 4.2 of AMB Property, L.P.s
    Current Report on Form 8-K filed on July 13, 2005).                                                                                                                                                                                                                    
|       
|        | 4   | .27         |  | Registration Rights Agreement dated as of July 8, 2005 by
    and between AMB Property, L.P. and Teachers Insurance and
    Annuity Association of America (incorporated by reference to
    Exhibit 4.3 of AMB Property, L.P.s Current Report on
    Form 8-K filed on July 13, 2005).                                                                                                           
|       
|        | *10 | .1          |  | Third Amended and Restated 1997 Stock Option and Incentive Plan
    of AMB Property Corporation and AMB Property, L.P. (incorporated
    by reference to Exhibit 10.22 of AMB Property, L.P.s
    Annual Report on Form 10-K for the year ended
    December 31, 2001).                                                                                                                           
|       
|        | *10 | .2          |  | Amendment No. 1 to the Third Amended and Restated 1997
    Stock Option and Incentive Plan of AMB Property Corporation and
    AMB Property, L.P. (incorporated by reference to
    Exhibit 10.23 of AMB Property, L.P.s Annual Report on
    Form 10-K for the year ended December 31, 2001).                                                                                                    
|       
|        | *10 | .3          |  | Amendment No. 2 to the Third Amended and Restated 1997
    Stock Option and Incentive Plan of AMB Property Corporation and
    AMB Property, L.P., dated September 23, 2004 (incorporated
    by reference to Exhibit 10.3 of AMB Property, L.P.s
    Quarterly Report on Form 10-Q filed on November 9,
    2004).                                                                               

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|        |     |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|------- | --- | ----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |     |            
|Number  |     | Description
|        |     |            
|        | *10 | .4          |  | 2002 Stock Option and Incentive Plan of AMB Property Corporation
    and AMB Property, L.P. (incorporated by reference to
    Exhibit 10.21 of AMB Property, L.P.s Annual Report
    Form 10-K for the year ended December 31, 2001).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|       
|        | *10 | .5          |  | Amendment No. 1 to the 2002 Stock Option and Incentive Plan
    of AMB Property Corporation and AMB Property, L.P., dated
    September 23, 2004 (incorporated by reference to
    Exhibit 10.4 of AMB Property, L.P.s Quarterly Report
    on Form 10-Q filed on November 9, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|       
|        | *10 | .6          |  | Amended and Restated AMB Nonqualified Deferred Compensation Plan
    (incorporated by reference to Exhibit 4.17 of AMB Property,
    L.P.s Registration Statement on Form S-8
    (No. 333-100214)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|       
|        | *10 | .7          |  | Form of Amended and Restated Change of Control and
    Noncompetition Agreement by and between AMB Property, L.P. and
    executive officers (incorporated by reference to
    Exhibit 10.1 of AMB Property, L.P.s Current Report on
    Form 8-K filed on December 15, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|       
|        | 10  | .8          |  | Thirteenth Amended and Restated Agreement of Limited Partnership
    of AMB Property II, L.P., dated September 24, 2004
    (incorporated by reference to Exhibit 10.1 of AMB Property,
    L.P.s Current Report on Form 8-K filed on
    September 30, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|       
|        | 10  | .9          |  | Registration Rights Agreement dated November 14, 2003 by
    and among AMB Property II, L.P. and the unitholders whose
    names are set forth on the signature pages thereto (incorporated
    by reference to Exhibit 4.1 of AMB Property
    Corporations Current Report on Form 8-K filed on
    November 17, 2003).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|       
|        | 10  | .10         |  | Note Purchase Agreement dated as of November 5, 2003,
    by and between AMB Property, L.P. and Teachers Insurance and
    Annuity Association of America (incorporated by reference to
    Exhibit 99.1 of AMB Property, L.P.s Current Report on
    Form 8-K filed on November 6, 2003).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|       
|        | 10  | .11         |  | Second Amended and Restated Revolving Credit Agreement, dated as
    of June 1, 2004 by and among AMB Property, L.P., the banks
    listed therein, JPMorgan Chase Bank, as administrative agent,
    J.P. Morgan Europe Limited, as administrative agent for
    alternate currencies, Bank of America, N.A., as syndication
    agent, J.P. Morgan Securities Inc. and Banc of America
    Securities LLC, as joint lead arrangers and joint bookrunners,
    Commerzbank Aktiengesellschaft New York and Grand Cayman
    Branches, PNC Bank National Association and Wachovia Bank, N.A.,
    as documentation agents, KeyBank National Association, The Bank
    of Nova Scotia, acting through its San Francisco Agency,
    and Wells Fargo Bank, N.A., as managing agents, and ING Real
    Estate Finance (USA) LLC, Southtrust Bank and Union Bank of
    California, N.A., as co-agents (incorporated by reference to
    Exhibit 10.1 of AMB Property, L.P.s Current Report on
    Form 8-K filed on June 10, 2004).
|       
|        | 10  | .12         |  | Guaranty of Payment, dated as of June 1, 2004 by AMB
    Property Corporation for the benefit of JPMorgan Chase Bank, as
    administrative agent, and J.P. Morgan Europe Limited, as
    administrative agent for alternate currencies, for the banks
    listed on the signature page to the Second Amended and Restated
    Revolving Credit Agreement (incorporated by reference to
    Exhibit 10.2 of AMB Property, L.P.s Current Report on
    Form 8-K filed on June 10, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|       
|        | 10  | .13         |  | Qualified Borrower Guaranty, dated as of June 1, 2004 by
    AMB Property, L.P. for the benefit of JPMorgan Chase Bank and
    J.P. Morgan Europe Limited, as administrative agents for
    the banks listed on the signature page to the Second Amended and
    Restated Revolving Credit Agreement (incorporated by reference
    to Exhibit 10.3 of AMB Property, L.P.s Current Report
    on Form 8-K filed on June 10, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|       
|        | 10  | .14         |  | Revolving Credit Agreement, dated as of June 29, 2004, by
    and among AMB Japan Finance Y.K., as initial borrower, AMB
    Property, L.P., as guarantor, AMB Property Corporation, as
    guarantor, the banks listed on the signature pages thereof, and
    Sumitomo Mitsui Banking Corporation, as administrative agent and
    sole lead arranger and bookmanager (incorporated by reference to
    Exhibit 10.1 of AMB Property Corporations Current
    Report on Form 8-K filed on July 2, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|       
|        | 10  | .15         |  | Guaranty of Payment, dated as of June 29, 2004 by AMB
    Property, L.P. and AMB Property Corporation for the benefit of
    Sumitomo Mitsui Banking Corporation, as administrative agent and
    sole lead arranger and bookmanager, for the banks that are from
    time to time parties to the Revolving Credit Agreement
    (incorporated by reference to Exhibit 10.2 of AMB Property
    Corporations Current Report on Form 8-K filed on
    July 2, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

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|        |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|------- | -- | ----------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |            
|Number  |    | Description
|        |    |            
|        | 10 | .16         |  | Amendment No. 1 to Revolving Credit Agreement, dated as of
    June 9, 2005, by and among, AMB Japan Finance Y.K., AMB
    Amagasaki TMK, AMB Narita 1-1 TMK and AMB Narita 2 TMK, as
    borrowers, AMB Property, L.P., as guarantor, AMB Property
    Corporation, as guarantor, the banks listed on the signature
    pages thereof, and Sumitomo Mitsui Banking Corporation, as
    administrative agent and sole lead arranger and bookmanager.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|       
|        | 10 | .17         |  | Amendment No. 2 to Revolving Credit Agreement, dated as of
    December 8, 2005, by and among, AMB Japan Finance Y.K., as
    initial borrower, AMB Property, L.P., as guarantor, AMB Property
    Corporation, as guarantor, the banks listed on the signature
    pages thereof, and Sumitomo Mitsui Banking Corporation, as
    administrative agent and sole lead arranger and bookmanager.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|       
|        | 10 | .18         |  | Credit Facility Agreement, dated as of November 24, 2004,
    by and among AMB Tokai TMK, as borrower, AMB Property, L.P., as
    guarantor, AMB Property Corporation, as guarantor, the banks
    listed on the signature pages thereof, and Sumitomo Mitsui
    Banking Corporation, as administrative agents and sole lead
    arranger and bookmanager (incorporated by reference to
    Exhibit 10.1 of AMB Property Corporations Current
    Report on Form 8-K filed on December 1, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|       
|        | 10 | .19         |  | Guaranty of Payment, dated as of November 24, 2004 by AMB
    Property, L.P. and AMB Property Corporation for the benefit of
    Sumitomo Mitsui Banking Corporation, as administrative agent and
    sole lead arranger and bookmanager, for the banks that are from
    time to time parties to the Credit Facility Agreement
    (incorporated by reference to Exhibit 10.2 of AMB Property
    Corporations Current Report on Form 8-K filed on
    December 1, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|       
|        | 10 | .20         |  | Agreement of Sale, made as of October 6, 2003, by and
    between AMB Property, L.P., International Airport Centers L.L.C.
    and certain affiliated entities (incorporated by reference to
    Exhibit 99.3 of AMB Property, L.P.s Current Report on
    Form 8-K filed on November 6, 2003).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|       
|        | 10 | .21         |  | Third Amended and Restated Revolving Credit Agreement, dated as
    of February 16, 2006, by and among AMB Property, L.P., as
    guarantor, AMB Property Corporation, as guarantor, the banks
    listed on the signature pages thereto, Bank of America, N.A., as
    administrative agent, The Bank of Nova Scotia, as syndication
    agent, Societe Generale, as documentation agent, Banc of America
    Securities Asia Limited, as Hong Kong dollars agent, Bank of
    America, N.A., acting by its Canada branch, as reference bank,
    Bank of America, Singapore branch, as Singapore dollars agent,
    and each of the other lending institutions that becomes a lender
    thereunder (incorporated by reference to Exhibit 10.1 of
    AMB Property Corporations Current Report on Form 8-K
    filed on February 22, 2006).                                                                                                                                                                                                                                          
|       
|        | 10 | .22         |  | Amendment No. 1, dated May 12, 2005, to Second Amended
    and Restated Credit Agreement by and among AMB Property, L.P.,
    AMB Property Corporation, the banks listed on the signature
    pages thereof, JPMorgan Chase Bank, N.A., as administrative
    agent, J.P. Morgan Europe Limited, as administrative agent, Bank
    of America, N.A., as syndication agent, J.P. Morgan Securities
    Inc. and Banc of America Securities LLC as joint lead arrangers
    and joint bookrunners, Commerzbank Aktiengesellschaft New York
    and Grand Cayman Branches, PNC Bank, National Association, and
    Wachovia Bank, N.A., as documentation agents, Keybank National
    Association, the Bank of Nova Scotia, acting through its San
    Francisco agency, and Wells Fargo Bank, N.A., as managing
    agents, and ING Real Estate Finance (USA) LLC, Southtrust Bank
    and Union Bank of California, N.A., as co-agents (incorporated
    by reference to Exhibit 10.1 of AMB Property, L.P.s
    Quarterly Report on Form 10-Q for the quarter ended
    June 30, 2005).
|       
|        | 10 | .23         |  | Exchange Agreement dated as of July 8, 2005, by and between
    AMB Property, L.P. and Teachers Insurance and Annuity
    Association of America (incorporated by reference to
    Exhibit 10.1 of AMB Property, L.P.s Current Report on
    Form 8-K filed on July 13, 2005).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|       
|        | 21 | .1          |  | Subsidiaries of AMB Property, L.P.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|       
|        | 23 | .1          |  | Consent of PricewaterhouseCoopers LLP.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|       
|        | 24 | .1          |  | Powers of Attorney (included in Part IV of this 10-K)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|       
|        | 31 | .1          |  | Rule 13a-14(a)/15d-14(a) Certifications dated
    March 13, 2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

65



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|        |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|------- | -- | ----------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |            
|Number  |    | Description
|        |    |            
|        | 32 | .1          |  | 18 U.S.C. § 1350 Certifications dated
    March 13, 2006. The certifications in this exhibit are
    being furnished solely to accompany this report pursuant to
    18 U.S.C. § 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.






|  |                                                        
|- | -------------------------------------------------------
|* | Management contract or compensatory plan or arrangement

Financial Statement Schedule:




66



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##### Table of Contents






SIGNATURES






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



| |     |                      
| | --- | ---------------------
| | By: | /s/ Hamid R. Moghadam

| |                          
| | -------------------------
| |                          
| | Hamid R. Moghadam        
| | Chairman of the Board and
| | Chief Executive Officer  

POWER OF ATTORNEY


10-K 10-K, 10-K




|                                                 |  |                                                                                     |  |                |  | 
|------------------------------------------------ |  | ----------------------------------------------------------------------------------- |  | -------------- |  | 
|Name                                             |  | Title                                                                               |  | Date          
|                                                 |  |                                                                                     |  |               
|                                                
|/s/ Hamid R. MoghadamHamid R. Moghadam           |  | Chairman of the Board and Chief Executive Officer
    (Principal Executive Officer) |  | March 13, 2006
|                                                
|/s/ W. Blake BairdW. Blake Baird                 |  | President and Director                                                              |  | March 13, 2006
|                                                
|/s/ Afsaneh M.
    BeschlossAfsaneh M. Beschloss |  | Director                                                                            |  | March 13, 2006
|                                                
|/s/ T. Robert BurkeT. Robert Burke               |  | Director                                                                            |  | March 13, 2006
|                                                
|/s/ David A. ColeDavid A. Cole                   |  | Director                                                                            |  | March 13, 2006

67



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##### Table of Contents



|                                         |  |                                                                                                                                       |  |                |  | 
|---------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------- |  | -------------- |  | 
|Name                                     |  | Title                                                                                                                                 |  | Date          
|                                         |  |                                                                                                                                       |  |               
|                                        
|/s/ Lydia H. KennardLydia H. Kennard     |  | Director                                                                                                                              |  | March 13, 2006
|                                        
|/s/ J. Michael LoshJ. Michael Losh       |  | Director                                                                                                                              |  | March 13, 2006
|                                        
|/s/ Frederick W. ReidFrederick W. Reid   |  | Director                                                                                                                              |  | March 13, 2006
|                                        
|/s/ Jeffrey L. SkeltonJeffrey L. Skelton |  | Director                                                                                                                              |  | March 13, 2006
|                                        
|/s/ Thomas W. TusherThomas W. Tusher     |  | Director                                                                                                                              |  | March 13, 2006
|                                        
|/s/ Michael A. CokeMichael A. Coke       |  | Chief Financial Officer and Executive Vice President (Duly
    Authorized Officer and Principal Financial and Accounting
    Officer) |  | March 13, 2006

68



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##### Table of Contents






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM






Consolidated financial statements and financial statement
schedule




Accounting for
Certain Financial Instruments with Characteristics of Both
Liabilities and Equity


Internal control over financial reporting


Internal Control  Integrated Framework Internal Control  Integrated Framework




F-1



---



##### Table of Contents









|                           | 
|-------------------------- | 
|PricewaterhouseCoopers LLP | 
|                          
|San Francisco, California  | 
|March 9, 2006              | 

F-2



---



##### Table of Contents



AMB PROPERTY, L.P.







CONSOLIDATED BALANCE SHEETS


As of December 31, 2005 and 2004


|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 |                                         |           |              |           |         |           |           |           | 
|-------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------- | --------------------------------------- | --------- | ------------ | --------- | ------- | --------- | --------- | --------- | 
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          | December 31,                    |                                         |           | December 31, |          
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          | 2005                            |                                         |           | 2004         |          
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 |                                         |           |              |          
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          | (Dollars in thousands,          |                                        
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          | except unit amounts)            |                                        
|ASSETS                                                                                            
|Investments in real estate:                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 |                                         |           |              |           |         |          
|                                                                                                   | Land                                                                                                                                                                                                                                                                                                                                                                                                     |                                 | $                                       | 1,527,072 |              |           | $       | 1,509,145 |          
|                                                                                                   | Buildings and improvements                                                                                                                                                                                                                                                                                                                                                                               |                                 |                                         | 4,273,716 |              |           |         | 4,305,622 |          
|                                                                                                   | Construction in progress                                                                                                                                                                                                                                                                                                                                                                                 |                                 |                                         | 997,506   |              |           |         | 711,377   |          
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 |                                         |           |              |          
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          | Total investments in properties |                                         |           | 6,798,294    |           |         |           | 6,526,144 |          
|                                                                                                   | Accumulated depreciation and amortization                                                                                                                                                                                                                                                                                                                                                                |                                 |                                         | (697,388  | )            |           |         | (615,646  | )        
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 |                                         |           |              |          
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          | Net investments in properties   |                                         |           | 6,100,906    |           |         |           | 5,910,498 |          
|Investments in unconsolidated joint ventures                                                       |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 | 118,653                                 |           |              |           | 55,166  |          
|Properties held for contribution, net                                                              |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 | 32,755                                  |           |              |           |        |          
|Properties held for divestiture, net                                                               |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 | 17,936                                  |           |              |           | 87,340  |          
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 |                                         |           |              |          
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 | Net investments in real estate          |           |              | 6,270,250 |         |           |           | 6,053,004 | 
|Cash and cash equivalents                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 | 232,881                                 |           |              |           | 109,392 |          
|Restricted cash                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 | 34,352                                  |           |              |           | 37,201  |          
|Mortgages receivable                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 | 21,621                                  |           |              |           | 13,738  |          
|Accounts receivable, net of allowance for doubtful accounts of
    $6,302 and $5,755, respectively |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 | 178,682                                 |           |              |           | 109,028 |          
|Deferred financing costs, net                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 | 25,026                                  |           |              |           | 28,340  |          
|Other assets                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 | 39,927                                  |           |              |           | 36,240  |          
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 |                                         |           |              |          
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          | Total assets                    |                                         | $         | 6,802,739    |           |         | $         | 6,386,943 |          
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 |                                         |           |              |          
|                                                                                                  
|LIABILITIES AND PARTNERS CAPITAL                                                                 
|Debt:                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 |                                         |           |              |           |         |          
|                                                                                                   | Secured debt                                                                                                                                                                                                                                                                                                                                                                                             |                                 | $                                       | 1,912,526 |              |           | $       | 1,892,524 |          
|                                                                                                   | Unsecured senior debt securities                                                                                                                                                                                                                                                                                                                                                                         |                                 |                                         | 975,000   |              |           |         | 1,003,940 |          
|                                                                                                   | Unsecured debt                                                                                                                                                                                                                                                                                                                                                                                           |                                 |                                         | 23,963    |              |           |         | 9,028     |          
|                                                                                                   | Unsecured credit facilities                                                                                                                                                                                                                                                                                                                                                                              |                                 |                                         | 490,072   |              |           |         | 351,699   |          
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 |                                         |           |              |          
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          | Total debt                      |                                         |           | 3,401,561    |           |         |           | 3,257,191 |          
|Security deposits                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 | 47,055                                  |           |              |           | 40,260  |          
|Distributions payable                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 | 46,382                                  |           |              |           | 41,103  |          
|Accounts payable and other liabilities                                                             |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 | 170,307                                 |           |              |           | 180,923 |          
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 |                                         |           |              |          
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          | Total liabilities               |                                         |           | 3,665,305    |           |         |           | 3,519,477 |          
|Commitments and contingencies (Note 14)                                                            |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 |                                         |           |              |           |         |          
|Minority interests:                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 |                                         |           |              |           |         |          
|                                                                                                   | Joint venture partners                                                                                                                                                                                                                                                                                                                                                                                   |                                 |                                         | 853,643   |              |           |         | 828,622   |          
|                                                                                                   | Preferred unitholders                                                                                                                                                                                                                                                                                                                                                                                    |                                 |                                         | 203,513   |              |           |         | 203,302   |          
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 |                                         |           |              |          
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          | Total minority interests        |                                         |           | 1,057,156    |           |         |           | 1,031,924 |          
|Partners capital:                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 |                                         |           |              |           |         |          
|                                                                                                   | General partner, 85,585,494 and 83,019,229 units
    outstanding, respectively; 2,000,000 Series L preferred
    units issued and outstanding with a $50,000 liquidation
    preference, 2,300,000 Series M preferred units issued and
    outstanding with a $57,500 liquidation preference and 3,000,000
    Series O preferred units issued and outstanding with a
    $75,000 liquidation preference |                                 |                                         | 1,916,299 |              |           |         | 1,671,140 |          
|                                                                                                   | Limited partners, 4,250,977 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                                                                                                                                                                                |                                 |                                         | 163,979   |              |           |         | 164,402   |          
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 |                                         |           |              |          
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 | Total partners capital                 |           |              | 2,080,278 |         |           |           | 1,835,542 | 
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 |                                         |           |              |          
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 | Total liabilities and partners capital |           | $            | 6,802,739 |         |           | $         | 6,386,943 | 
|                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                          |                                 |                                         |           |              |          



F-3



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##### Table of Contents



AMB PROPERTY, L.P.







CONSOLIDATED STATEMENTS OF OPERATIONS


For the Years Ended December 31, 2005, 2004 and 2003


|                                                               |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |         |          |          |            |         |          |          |         | 
|-------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------- | ------------------------ | ------------------------------------------ | ------------------------------------------------------------ | -------- | ------- | ---------- | ------- | -------- | -------- | ---------- | ------- | -------- | -------- | ------- | 
|                                                               |                                                                                                                                                      | 2005                                                 |                          |                                            | 2004                                                         |          |         | 2003       |        
|                                                               |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |        
|                                                               |                                                                                                                                                      | (Dollars in thousands, except unit and               |                         
|                                                               |                                                                                                                                                      | per unit amounts)                                    |                         
|REVENUES                                                       |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |         |          |          |           
|                                                               | Rental revenues                                                                                                                                      |                                                      | $                        | 632,207                                    |                                                              |          | $       | 579,534    |         |          | $        | 503,665    |        
|                                                               | Private capital income                                                                                                                               |                                                      |                          | 43,942                                     |                                                              |          |         | 12,895     |         |          |          | 13,337     |        
|                                                               |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |        
|                                                               |                                                                                                                                                      |                                                      | Total revenues           |                                            |                                                              | 676,149  |         |            |         | 592,429  |          |            |         | 517,002  |         
|COSTS AND EXPENSES                                             |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |         |          |          |           
|                                                               | Property operating expenses                                                                                                                          |                                                      |                          | (88,169                                    | )                                                            |          |         | (82,958    | )       |          |          | (73,197    | )      
|                                                               | Real estate taxes                                                                                                                                    |                                                      |                          | (75,039                                    | )                                                            |          |         | (65,300    | )       |          |          | (59,616    | )      
|                                                               | Depreciation and amortization                                                                                                                        |                                                      |                          | (165,438                                   | )                                                            |          |         | (141,120   | )       |          |          | (116,067   | )      
|                                                               | Impairment losses                                                                                                                                    |                                                      |                          |                                           |                                                              |          |         |           |         |          |          | (5,251     | )      
|                                                               | General and administrative                                                                                                                           |                                                      |                          | (77,409                                    | )                                                            |          |         | (58,843    | )       |          |          | (46,418    | )      
|                                                               | Fund costs                                                                                                                                           |                                                      |                          | (1,482                                     | )                                                            |          |         | (1,741     | )       |          |          | (825       | )      
|                                                               |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |        
|                                                               |                                                                                                                                                      |                                                      | Total costs and expenses |                                            |                                                              | (407,537 | )       |            |         | (349,962 | )        |            |         | (301,374 | )       
|                                                               |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |        
|OTHER INCOME AND EXPENSES                                      |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |         |          |          |           
|                                                               | Equity in earnings of unconsolidated joint ventures, net                                                                                             |                                                      |                          | 10,770                                     |                                                              |          |         | 3,781      |         |          |          | 5,445      |        
|                                                               | Interest and other income                                                                                                                            |                                                      |                          | 6,499                                      |                                                              |          |         | 3,758      |         |          |          | 3,976      |        
|                                                               | Gains from dispositions of real estate interests                                                                                                     |                                                      |                          | 19,099                                     |                                                              |          |         | 5,219      |         |          |          | 7,429      |        
|                                                               | Development profits, net of taxes                                                                                                                    |                                                      |                          | 54,811                                     |                                                              |          |         | 8,528      |         |          |          | 14,441     |        
|                                                               | Interest expense, including amortization                                                                                                             |                                                      |                          | (149,492                                   | )                                                            |          |         | (144,882   | )       |          |          | (131,878   | )      
|                                                               |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |        
|                                                               |                                                                                                                                                      |                                                      |                          | Total other income and expenses, net       |                                                              |          | (58,313 | )          |         |          | (123,596 | )          |         |          | (100,587 | )      
|                                                               |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |        
|                                                               |                                                                                                                                                      |                                                      |                          |                                            | Income before minority interests and discontinued operations |          |         | 210,299    |         |          |          | 118,871    |         |          |          | 115,041 | 
|                                                               |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |        
|                                                               | Minority interests share of income:                                                                                                                 |                                                      |                          |                                            |                                                              |          |         |            |         |          |          |            |        
|                                                               |                                                                                                                                                      | Joint venture partners share of operating income    |                          |                                            | (36,398                                                      | )        |         |            | (29,544 | )        |          |            | (21,015 | )       
|                                                               |                                                                                                                                                      | Joint venture partners share of development profits |                          |                                            | (11,230                                                      | )        |         |            | (523    | )        |          |            | (8,098  | )       
|                                                               |                                                                                                                                                      | Preferred unitholders                                |                          |                                            | (15,228                                                      | )        |         |            | (13,903 | )        |          |            | (13,443 | )       
|                                                               |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |        
|                                                               |                                                                                                                                                      |                                                      |                          | Total minority interests share of income  |                                                              |          | (62,856 | )          |         |          | (43,970  | )          |         |          | (42,556  | )      
|                                                               |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |        
|Income from continuing operations                              |                                                                                                                                                      |                                                      | 147,443                  |                                            |                                                              |          | 74,901  |            |         |          | 72,485   |           
|                                                               |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |        
|Discontinued operations:                                       |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |         |          |          |           
|                                                               | Income attributable to discontinued operations, net of minority
    interests                                                                        |                                                      |                          | 9,492                                      |                                                              |          |         | 18,899     |         |          |          | 29,245     |        
|                                                               | Gains from dispositions of real estate, net of minority interests                                                                                    |                                                      |                          | 120,814                                    |                                                              |          |         | 44,716     |         |          |          | 45,359     |        
|                                                               |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |        
|                                                               |                                                                                                                                                      |                                                      |                          | Total discontinued operations              |                                                              |          | 130,306 |            |         |          | 63,615   |            |         |          | 74,604   |        
|                                                               |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |        
|                                                               | Net income                                                                                                                                           |                                                      |                          | 277,749                                    |                                                              |          |         | 138,516    |         |          |          | 147,089    |        
|Series A, L, M and O preferred unit distributions              |                                                                                                                                                      |                                                      | (7,388                   | )                                          |                                                              |          | (7,131  | )          |         |          | (6,999   | )         
|Series B, J and K preferred unit distributions                 |                                                                                                                                                      |                                                      | (6,360                   | )                                          |                                                              |          | (6,360  | )          |         |          | (11,188  | )         
|Preferred unit redemption discount/(issuance costs or premium) |                                                                                                                                                      |                                                      |                         |                                            |                                                              |          |        |            |         |          | (5,413   | )         
|                                                               |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |        
|                                                               |                                                                                                                                                      |                                                      |                          | Net income available to common unitholders |                                                              | $        | 264,001 |            |         | $        | 125,025  |            |         | $        | 123,489  |        
|                                                               |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |        
|Income available to common unitholders attributable to:        |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |         |          |          |           
|                                                               | General partner                                                                                                                                      |                                                      | $                        | 250,419                                    |                                                              |          | $       | 118,340    |         |          | $        | 116,716    |        
|                                                               | Limited partners                                                                                                                                     |                                                      |                          | 13,582                                     |                                                              |          |         | 6,685      |         |          |          | 6,773      |        
|                                                               |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |        
|                                                               |                                                                                                                                                      |                                                      |                          | Net income available to common unitholders |                                                              | $        | 264,001 |            |         | $        | 125,025  |            |         | $        | 123,489  |        
|                                                               |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |        
|Basic income per common unit                                   |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |         |          |          |           
|                                                               | Income from continuing operations (includes preferred unit
    distributions and preferred unit redemption discount/(issuance
    costs or premium)) |                                                      | $                        | 1.51                                       |                                                              |          | $       | 0.71       |         |          | $        | 0.57       |        
|                                                               | Discontinued operations                                                                                                                              |                                                      |                          | 1.47                                       |                                                              |          |         | 0.73       |         |          |          | 0.87       |        
|                                                               |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |        
|                                                               |                                                                                                                                                      |                                                      |                          | Net income available to common unitholders |                                                              | $        | 2.98    |            |         | $        | 1.44     |            |         | $        | 1.44     |        
|                                                               |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |        
|Diluted income per common unit                                 |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |         |          |          |           
|                                                               | Income from continuing operations (includes preferred unit
    distributions and preferred unit redemption discount/(issuance
    costs or premium)  |                                                      | $                        | 1.44                                       |                                                              |          | $       | 0.68       |         |          | $        | 0.56       |        
|                                                               | Discontinued operations                                                                                                                              |                                                      |                          | 1.41                                       |                                                              |          |         | 0.71       |         |          |          | 0.85       |        
|                                                               |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |        
|                                                               |                                                                                                                                                      |                                                      |                          | Net income available to common unitholders |                                                              | $        | 2.85    |            |         | $        | 1.39     |            |         | $        | 1.41     |        
|                                                               |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |        
|WEIGHTED AVERAGE COMMON UNITS OUTSTANDING                      |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |         |          |          |           
|                                                               | Basic                                                                                                                                                |                                                      |                          | 88,684,262                                 |                                                              |          |         | 86,885,250 |         |          |          | 85,859,899 |        
|                                                               |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |        
|                                                               | Diluted                                                                                                                                              |                                                      |                          | 92,508,725                                 |                                                              |          |         | 90,120,250 |         |          |          | 87,616,365 |        
|                                                               |                                                                                                                                                      |                                                      |                          |                                            |                                                              |          |         |            |        



F-4



---



##### Table of Contents



AMB PROPERTY, L.P.







CONSOLIDATED STATEMENTS OF PARTNERS CAPITAL


For the Years Ended December 31, 2005, 2004 and 2003


|                                |                                                                                                                  |                            |           |            |                  |   |         |                                             |   |                       |              |           |   |       |           |          |        |  |           |            |   |   |         |         |   |       |           |          |   |   |        |        |         |   |           |          |         | 
|------------------------------- | ---------------------------------------------------------------------------------------------------------------- | -------------------------- | --------- | ---------- | ---------------- | - | ------- | ------------------------------------------- | - | --------------------- | ------------ | --------- | - | ----- | --------- | -------- | ------ |  | --------- | ---------- | - | - | ------- | ------- | - | ----- | --------- | -------- | - | - | ------ | ------ | ------- | - | --------- | -------- | ------- | 
|                                |                                                                                                                  | General Partner            |           |            | Limited Partners |   |         |                                            
|                                |                                                                                                                  |                            |           |            |                  |   |         |                                            
|                                |                                                                                                                  | Preferred Units            |           |            | Common Units     |   |         | Preferred Units                             |   |                       | Common Units |           |   |      
|                                |                                                                                                                  |                            |           |            |                  |   |         |                                             |   |                       |              |           |   |      
|                                |                                                                                                                  | Units                      |           |            | Amount           |   |         | Units                                       |   |                       | Amount       |           |   | Units |           |          | Amount |  |           | Units      |   |   | Amount  |         |   | Total |          
|                                |                                                                                                                  |                            |           |            |                  |   |         |                                             |   |                       |              |           |   |       |           |          |        |  |           |            |   |   |         |         |   |       |          
|                                |                                                                                                                  |                            |           |            |                  |   |         | (Dollars in thousands, except unit amounts) |   |                       |              |           |  
|                                |                                                                                                                  |                            |           |            |                  |   |         |                                             |   | )                     |              |           |   |       |           |          |       
|                                |                                                                                                                  |                            |           |            |                  |   |         |                                             |   | (dollars in thousands |              |           |   |       |           |          |       
|Balance as of December 31, 2002 |                                                                                                                  |                            | 3,995,800 |            |                  | $ | 95,994  |                                             |   |                       | 81,800,038   |           |   | $     | 1,580,085 |          |        |  | 2,900,000 |            |   | $ | 141,103 |         |   |       | 4,846,387 |          |   | $ | 94,078 |        |         | $ | 1,911,260 |         
|                                | Comprehensive income:                                                                                            |                            |           |            |                  |   |         |                                             |   |                       |              |           |   |       |           |          |        |  |           |            |   |   |         |         |   |       |           |          |   |   |        |        |         |   |           |          |        
|                                | Net income                                                                                                       |                            |           |           |                  |   |         | 6,999                                       |   |                       |              |          |   |       |           | 116,716  |        |  |           |           |   |   |         | 11,188  |   |       |           |         |   |   |        | 6,773  |         |   |           |          |        
|                                | Unrealized gain on securities                                                                                    |                            |           |           |                  |   |         |                                            |   |                       |              |          |   |       |           | 812      |        |  |           |           |   |   |         |        |   |       |           |         |   |   |        |       |         |   |           |          |        
|                                | Currency translation adjustment                                                                                  |                            |           |           |                  |   |         |                                            |   |                       |              |          |   |       |           | 662      |        |  |           |           |   |   |         |        |   |       |           |         |   |   |        |       |         |   |           |          |        
|                                |                                                                                                                  | Total comprehensive income |           |            |                  |   |         |                                             |   |                       |              |           |   |       |           |          |        |  |           |            |   |   |         |         |   |       |           |          |  |   |        |        | 143,150 |   |           |          |         | 
|                                | Contributions                                                                                                    |                            |           | 4,300,000  |                  |   |         | 103,373                                     |   |                       |              |          |   |       |           |         |        |  |           |           |   |   |         |        |   |       |           |         |   |   |        |       |         |   |           | 103,373  |        
|                                | Issuance of common limited partnership units in connection with
    the issuance of restricted stock and options |                            |           |           |                  |   |         |                                            |   |                       |              | 256,611   |   |       |           | 11,473   |        |  |           |           |   |   |         |        |   |       |           |         |   |   |        |       |         |   |           | 11,473   |        
|                                | Issuance of common limited partnership units in connection with
    the exercise of stock options                |                            |           |           |                  |   |         |                                            |   |                       |              | 317,753   |   |       |           | 6,947    |        |  |           |           |   |   |         |        |   |       |           |         |   |   |        |       |         |   |           | 6,947    |        
|                                | Conversion of operating partnership units to common stock                                                        |                            |           |           |                  |   |         |                                            |   |                       |              | 2,000     |   |       |           | 58       |        |  |           |           |   |   |         |        |   |       |           | (2,000   | ) |   |        | (38    | )       |   |           | 20       |        
|                                | Conversion of operating partnership units to cash                                                                |                            |           |           |                  |   |         |                                            |   |                       |              |          |   |       |           |         |        |  |           |           |   |   |         |        |   |       |           | (226,145 | ) |   |        | (4,340 | )       |   |           | (4,340   | )      
|                                | Retirement of units                                                                                              |                            |           | (3,995,800 | )                |   |         | (95,994                                     | ) |                       |              | (812,900  | ) |       |           | (21,239  | )      |  |           | (1,300,000 | ) |   |         | (63,288 | ) |       |           |         |   |   |        |       |         |   |           | (180,521 | )      
|                                | Deferred compensation                                                                                            |                            |           |           |                  |   |         |                                            |   |                       |              |          |   |       |           | (11,470  | )      |  |           |           |   |   |         |        |   |       |           |         |   |   |        |       |         |   |           | (11,470  | )      
|                                | Deferred compensation amortization                                                                               |                            |           |           |                  |   |         |                                            |   |                       |              |          |   |       |           | 8,076    |        |  |           |           |   |   |         |        |   |       |           |         |   |   |        |       |         |   |           | 8,076    |        
|                                | Reallocation of interests                                                                                        |                            |           |           |                  |   |         |                                            |   |                       |              |          |   |       |           | (1,102   | )      |  |           |           |   |   |         |        |   |       |           |         |   |   |        | (956   | )       |   |           | (2,058   | )      
|                                | Distributions                                                                                                    |                            |           |           |                  |   |         | (6,999                                      | ) |                       |              |          |   |       |           | (137,254 | )      |  |           |           |   |   |         | (11,188 | ) |       |           |         |   |   |        | (7,850 | )       |   |           | (163,291 | )      
|                                |                                                                                                                  |                            |           |            |                  |   |         |                                             |   |                       |              |           |   |       |           |          |        |  |           |            |   |   |         |         |   |       |          
|Balance as of December 31, 2003 |                                                                                                                  |                            | 4,300,000 |            |                  |   | 103,373 |                                             |   |                       | 81,563,502   |           |   |       | 1,553,764 |          |        |  | 1,600,000 |            |   |   | 77,815  |         |   |       | 4,618,242 |          |   |   | 87,667 |        |         |   | 1,822,619 |         
|                                | Comprehensive income:                                                                                            |                            |           |            |                  |   |         |                                             |   |                       |              |           |   |       |           |          |        |  |           |            |   |   |         |         |   |       |           |          |   |   |        |        |         |   |           |          |        
|                                | Net income                                                                                                       |                            |           |           |                  |   |         | 7,131                                       |   |                       |              |          |   |       |           | 118,340  |        |  |           |           |   |   |         | 6,360   |   |       |           |         |   |   |        | 6,685  |         |   |           |          |        
|                                | Unrealized loss on securities and derivatives                                                                    |                            |           |           |                  |   |         |                                            |   |                       |              |          |   |       |           | (2,058   | )      |  |           |           |   |   |         |        |   |       |           |         |   |   |        |       |         |   |           |          |        
|                                | Currency translation adjustment                                                                                  |                            |           |           |                  |   |         |                                            |   |                       |              |          |   |       |           | (438     | )      |  |           |           |   |   |         |        |   |       |           |         |   |   |        |       |         |   |           |          |        
|                                |                                                                                                                  | Total comprehensive income |           |            |                  |   |         |                                             |   |                       |              |           |   |       |           |          |        |  |           |            |   |   |         |         |   |       |           |          |   |   |        |        | 136,020 |   |           |          |         | 
|                                | Issuance of common limited partnership units in connection with
    the issuance of restricted stock and options |                            |           |           |                  |   |         |                                            |   |                       |              | 204,556   |   |       |           | 12,936   |        |  |           |           |   |   |         |        |   |       |           |         |   |   |        |       |         |   |           | 12,936   |        
|                                | Issuance of common limited partnership units in connection with
    the exercise of stock options                |                            |           |           |                  |   |         |                                            |   |                       |              | 1,233,485 |   |       |           | 27,721   |        |  |           |           |   |   |         |        |   |       |           |         |   |   |        |       |         |   |           | 27,721   |        
|                                | Conversion of operating partnership units to common stock                                                        |                            |           |           |                  |   |         |                                            |   |                       |              | 17,686    |   |       |           | 618      |        |  |           |           |   |   |         |        |   |       |           | (17,686  | ) |   |        | (334   | )       |   |           | 284      |        
|                                | Forfeiture of common limited partnership units in connection
    with the forfeiture of restricted stock         |                            |           |           |                  |   |         |                                            |   |                       |              |          |   |       |           | (646     | )      |  |           |           |   |   |         |        |   |       |           |         |   |   |        |       |         |   |           | (646     | )      
|                                | Deferred compensation                                                                                            |                            |           |           |                  |   |         |                                            |   |                       |              |          |   |       |           | (12,936  | )      |  |           |           |   |   |         |        |   |       |           |         |   |   |        |       |         |   |           | (12,936  | )      
|                                | Deferred compensation amortization                                                                               |                            |           |           |                  |   |         |                                            |   |                       |              |          |   |       |           | 10,444   |        |  |           |           |   |   |         |        |   |       |           |         |   |   |        |       |         |   |           | 10,444   |        
|                                | Reallocation of interests                                                                                        |                            |           |           |                  |   |         |                                            |   |                       |              |          |   |       |           | 1,038    |        |  |           |           |   |   |         |        |   |       |           |         |   |   |        | 644    |         |   |           | 1,682    |        
|                                | Issuance costs                                                                                                   |                            |           |           |                  |   |         | (169                                        | ) |                       |              |          |   |       |           |         |        |  |           |           |   |   |         |        |   |       |           |         |   |   |        |       |         |   |           | (169     | )      
|                                | Distributions                                                                                                    |                            |           |           |                  |   |         | (7,131                                      | ) |                       |              |          |   |       |           | (140,847 | )      |  |           |           |   |   |         | (6,360  | ) |       |           |         |   |   |        | (8,075 | )       |   |           | (162,413 | )      
|                                |                                                                                                                  |                            |           |            |                  |   |         |                                             |   |                       |              |           |   |       |           |          |        |  |           |            |   |   |         |         |   |       |          
|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                                                                                                       |                            |           |           |                  |   |         | 7,388                                       |   |                       |              |          |   |       |           | 250,419  |        |  |           |           |   |   |         | 6,360   |   |       |           |         |   |   |        | 13,582 |         |   |           |          |        
|                                | Unrealized loss on securities and derivatives                                                                    |                            |           |           |                  |   |         |                                            |   |                       |              |          |   |       |           | 421      |        |  |           |           |   |   |         |        |   |       |           |         |   |   |        |       |         |   |           |          |        
|                                | Currency translation adjustment                                                                                  |                            |           |           |                  |   |         |                                            |   |                       |              |          |   |       |           | (1,846   | )      |  |           |           |   |   |         |        |   |       |           |         |   |   |        |       |         |   |           |          |        
|                                |                                                                                                                  | Total comprehensive income |           |            |                  |   |         |                                             |   |                       |              |           |   |       |           |          |        |  |           |            |   |   |         |         |   |       |           |          |   |   |        |        |        |   |           |          | 276,324 | 
|                                | Contributions                                                                                                    |                            |           | 3,000,000  |                  |   |         | 72,344                                      |   |                       |              |          |   |       |           |         |        |  |           |           |   |   |         |        |   |       |           |         |   |   |        |       |         |   |           | 72,344   |        
|                                | Issuance of common limited partnership units in connection with
    the issuance of restricted stock and options |                            |           |           |                  |   |         |                                            |   |                       |              | 183,216   |   |       |           | 12,962   |        |  |           |           |   |   |         |        |   |       |           |         |   |   |        |       |         |   |           | 12,962   |        
|                                | Issuance of common limited partnership units in connection with
    the exercise of stock options                |                            |           |           |                  |   |         |                                            |   |                       |              | 2,033,470 |   |       |           | 48,472   |        |  |           |           |   |   |         |        |   |       |           |         |   |   |        |       |         |   |           | 48,472   |        
|                                | Conversion of operating partnership units to common stock                                                        |                            |           |           |                  |   |         |                                            |   |                       |              | 349,579   |   |       |           | 15,108   |        |  |           |           |   |   |         |        |   |       |           | (349,579 | ) |   |        | (6,655 | )       |   |           | 8,453    |        
|                                | Forfeiture of common limited partnership units in connection
    with the forfeiture of restricted stock         |                            |           |           |                  |   |         |                                            |   |                       |              |          |   |       |           | (1,869   | )      |  |           |           |   |   |         |        |   |       |           |         |   |   |        |       |         |   |           | (1,869   | )      
|                                | Deferred compensation                                                                                            |                            |           |           |                  |   |         |                                            |   |                       |              |          |   |       |           | (12,962  | )      |  |           |           |   |   |         |        |   |       |           |         |   |   |        |       |         |   |           | (12,962  | )      
|                                | Deferred compensation amortization                                                                               |                            |           |           |                  |   |         |                                            |   |                       |              |          |   |       |           | 12,296   |        |  |           |           |   |   |         |        |   |       |           |         |   |   |        |       |         |   |           | 12,296   |        
|                                | Reallocation of interests                                                                                        |                            |           |           |                  |   |         |                                            |   |                       |              |          |   |       |           | (891     | )      |  |           |           |   |   |         |        |   |       |           |         |   |   |        | 746    |         |   |           | (145     | )      
|                                | Distributions                                                                                                    |                            |           |           |                  |   |         | (7,388                                      | ) |                       |              |          |   |       |           | (149,295 | )      |  |           |           |   |   |         | (6,360  | ) |       |           |         |   |   |        | (8,096 | )       |   |           | (171,139 | )      
|                                |                                                                                                                  |                            |           |            |                  |   |         |                                             |   |                       |              |           |   |       |           |          |        |  |           |            |   |   |         |         |   |       |          
|Balance as of December 31, 2005 |                                                                                                                  |                            | 7,300,000 |            |                  | $ | 175,548 |                                             |   |                       | 85,585,494   |           |   | $     | 1,740,751 |          |        |  | 1,600,000 |            |   | $ | 77,815  |         |   |       | 4,250,977 |          |   | $ | 86,164 |        |         | $ | 2,080,278 |         
|                                |                                                                                                                  |                            |           |            |                  |   |         |                                             |   |                       |              |           |   |       |           |          |        |  |           |            |   |   |         |         |   |       |          



F-5



---



##### Table of Contents



AMB PROPERTY, L.P.







CONSOLIDATED STATEMENTS OF CASH FLOWS


For the Years Ended December 31, 2005, 2004 and 2003


|                                                                                           |                                                                         |                                                                   |                                                     |                                                      |          |          |          |          |         |          |          |         |         |          |         | 
|------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------- | ----------------------------------------------------------------- | --------------------------------------------------- | ---------------------------------------------------- | -------- | -------- | -------- | -------- | ------- | -------- | -------- | ------- | ------- | -------- | ------- | 
|                                                                                           |                                                                         | 2005                                                              |                                                     |                                                      | 2004     |          |          | 2003     |        
|                                                                                           |                                                                         |                                                                   |                                                     |                                                      |          |          |          |          |        
|                                                                                           |                                                                         | (Dollars in thousands)                                            |                                                    
|CASH FLOWS FROM OPERATING ACTIVITIES                                                       |                                                                         |                                                                   |                                                     |                                                      |          |          |          |          |         |          |          |        
|Net income                                                                                 |                                                                         | $                                                                 | 277,749                                             |                                                      |          | $        | 138,516  |          |         | $        | 147,089  |        
|Adjustments to net income:                                                                 |                                                                         |                                                                   |                                                     |                                                      |          |          |          |          |         |          |          |        
|                                                                                           | Straight-line rents and amortization of lease intangibles               |                                                                   |                                                     | (19,523                                              | )        |          |          | (16,281  | )       |          |          | (10,662 | )      
|                                                                                           | Depreciation and amortization                                           |                                                                   |                                                     | 165,438                                              |          |          |          | 141,120  |         |          |          | 116,067 |        
|                                                                                           | Impairment losses                                                       |                                                                   |                                                     |                                                     |          |          |          |         |         |          |          | 5,251   |        
|                                                                                           | Stock-based compensation amortization                                   |                                                                   |                                                     | 12,296                                               |          |          |          | 10,444   |         |          |          | 8,075   |        
|                                                                                           | Equity in earnings of unconsolidated joint ventures                     |                                                                   |                                                     | (10,770                                              | )        |          |          | (3,781   | )       |          |          | (5,445  | )      
|                                                                                           | Operating distributions received from unconsolidated joint
    ventures |                                                                   |                                                     | 2,752                                                |          |          |          | 2,971    |         |          |          | 5,345   |        
|                                                                                           | Gains from dispositions of real estate interest                         |                                                                   |                                                     | (19,099                                              | )        |          |          | (5,219   | )       |          |          | (7,429  | )      
|                                                                                           | Development profits, net of taxes                                       |                                                                   |                                                     | (54,811                                              | )        |          |          | (8,528   | )       |          |          | (14,441 | )      
|                                                                                           | Debt premiums, discounts and finance cost amortization, net             |                                                                   |                                                     | 4,172                                                |          |          |          | 310      |         |          |          | 2,049   |        
|                                                                                           | Total minority interests share of net income                           |                                                                   |                                                     | 62,856                                               |          |          |          | 43,970   |         |          |          | 42,556  |        
|                                                                                           | Discontinued operations:                                                |                                                                   |                                                     |                                                      |          |          |          |          |         |          |          |         |        
|                                                                                           |                                                                         | Depreciation and amortization                                     |                                                     |                                                      | 14,866   |          |          |          | 26,230  |          |          |         | 26,270  |         
|                                                                                           |                                                                         | Joint venture partners share of net income                       |                                                     |                                                      | 8,009    |          |          |          | 12,523  |          |          |         | 14,602  |         
|                                                                                           |                                                                         | Gains from dispositions of real estate, net of minority interests |                                                     |                                                      | (120,814 | )        |          |          | (44,716 | )        |          |         | (45,359 | )       
|                                                                                           | Changes in assets and liabilities:                                      |                                                                   |                                                     |                                                      |          |          |          |          |         |          |          |         |        
|                                                                                           |                                                                         | Accounts receivable and other assets                              |                                                     |                                                      | (42,379  | )        |          |          | (1,154  | )        |          |         | (7,771  | )       
|                                                                                           |                                                                         | Accounts payable and other liabilities                            |                                                     |                                                      | 15,073   |          |          |          | 944     |          |          |         | (6,389  | )       
|                                                                                           |                                                                         |                                                                   |                                                     |                                                      |          |          |          |          |        
|                                                                                           |                                                                         |                                                                   | Net cash provided by operating activities           |                                                      |          | 295,815  |          |          |         | 297,349  |          |         |         | 269,808  |        
|CASH FLOWS FROM INVESTING ACTIVITIES                                                       |                                                                         |                                                                   |                                                     |                                                      |          |          |          |          |         |          |          |        
|Change in restricted cash                                                                  |                                                                         |                                                                   | 1,973                                               |                                                      |          |          | (9,749   | )        |         |          | 1,103    |        
|Cash paid for property acquisitions                                                        |                                                                         |                                                                   | (424,087                                            | )                                                    |          |          | (415,034 | )        |         |          | (470,188 | )      
|Additions to land, buildings, development costs, building
    improvements and lease costs |                                                                         |                                                                   | (662,561                                            | )                                                    |          |          | (581,168 | )        |         |          | (283,878 | )      
|Net proceeds from divestiture of real estate                                               |                                                                         |                                                                   | 1,088,737                                           |                                                      |          |          | 213,296  |          |         |          | 423,996  |        
|Additions to interests in unconsolidated joint ventures                                    |                                                                         |                                                                   | (74,069                                             | )                                                    |          |          | (16,003  | )        |         |          | (20,147  | )      
|Capital distributions received from unconsolidated joint ventures                          |                                                                         |                                                                   | 17,483                                              |                                                      |          |          | 47,849   |          |         |          | 32,851   |        
|Repayment/(issuance) of mortgage receivable                                                |                                                                         |                                                                   | (7,883                                              | )                                                    |          |          | 29,407   |          |         |          | (30,012  | )      
|                                                                                           |                                                                         |                                                                   |                                                     |                                                      |          |          |          |          |        
|                                                                                           |                                                                         |                                                                   | Net cash used in investing activities               |                                                      |          | (60,407  | )        |          |         | (731,402 | )        |         |         | (346,275 | )      
|CASH FLOWS FROM FINANCING ACTIVITIES                                                       |                                                                         |                                                                   |                                                     |                                                      |          |          |          |          |         |          |          |        
|Issuance of common units                                                                   |                                                                         |                                                                   | 48,472                                              |                                                      |          |          | 27,721   |          |         |          | 6,947    |        
|Repurchase and retirement of common and preferred units                                    |                                                                         |                                                                   |                                                    |                                                      |          |          |         |          |         |          | (121,239 | )      
|Borrowings on secured debt                                                                 |                                                                         |                                                                   | 386,592                                             |                                                      |          |          | 420,565  |          |         |          | 192,750  |        
|Payments on secured debt                                                                   |                                                                         |                                                                   | (327,038                                            | )                                                    |          |          | (98,178  | )        |         |          | (157,310 | )      
|Payments on unsecured debt                                                                 |                                                                         |                                                                   | (649                                                | )                                                    |          |          | (600     | )        |         |          |          |        
|Borrowings on unsecured credit facilities                                                  |                                                                         |                                                                   | 873,627                                             |                                                      |          |          | 795,128  |          |         |          | 603,550  |        
|Payments on unsecured credit facilities                                                    |                                                                         |                                                                   | (697,464                                            | )                                                    |          |          | (747,432 | )        |         |          | (431,000 | )      
|Borrowings on Alliance Fund II credit facility                                             |                                                                         |                                                                   |                                                    |                                                      |          |          |         |          |         |          | 8,000    |        
|Payments on Alliance Fund II credit facility                                               |                                                                         |                                                                   |                                                    |                                                      |          |          |         |          |         |          | (53,500  | )      
|Payment of financing fees                                                                  |                                                                         |                                                                   | (10,185                                             | )                                                    |          |          | (13,230  | )        |         |          | (3,187   | )      
|Net proceeds from issuances of senior debt securities                                      |                                                                         |                                                                   |                                                    |                                                      |          |          | 99,067   |          |         |          | 124,566  |        
|Payments on senior debt securities                                                         |                                                                         |                                                                   | (28,940                                             | )                                                    |          |          | (21,060  | )        |         |          |         |        
|Net proceeds from issuances of preferred units                                             |                                                                         |                                                                   | 72,344                                              |                                                      |          |          |         |          |         |          | 103,373  |        
|Issuance costs on preferred units                                                          |                                                                         |                                                                   |                                                    |                                                      |          |          | (169     | )        |         |          |         |        
|Repurchase of preferred units                                                              |                                                                         |                                                                   |                                                    |                                                      |          |          |         |          |         |          | (71,883  | )      
|Cash transferred to unconsolidated joint venture                                           |                                                                         |                                                                   |                                                    |                                                      |          |          | (2,897   | )        |         |          |         |        
|Contributions from co-investment partners                                                  |                                                                         |                                                                   | 160,544                                             |                                                      |          |          | 192,956  |          |         |          | 171,042  |        
|Distributions paid to partners                                                             |                                                                         |                                                                   | (160,430                                            | )                                                    |          |          | (152,311 | )        |         |          | (163,427 | )      
|Distributions to minority interests, including preferred units                             |                                                                         |                                                                   | (418,729                                            | )                                                    |          |          | (89,855  | )        |         |          | (96,660  | )      
|                                                                                           |                                                                         |                                                                   |                                                     |                                                      |          |          |          |          |        
|                                                                                           |                                                                         |                                                                   | Net cash (used in)/provided by financing activities |                                                      |          | (101,856 | )        |          |         | 409,705  |          |         |         | 112,022  |        
|                                                                                           |                                                                         |                                                                   |                                                     | Net effect of exchange rate changes on cash          |          |          | (10,063  | )        |         |          | 6,062    |         |         |          | 2,791   | 
|                                                                                           |                                                                         |                                                                   |                                                     | Net increase (decrease) in cash and cash equivalents |          |          | 133,552  |          |         |          | (24,348  | )       |         |          | 35,555  | 
|                                                                                           |                                                                         |                                                                   |                                                     | Cash and cash equivalents at beginning of period     |          |          | 109,392  |          |         |          | 127,678  |         |         |          | 89,332  | 
|                                                                                           |                                                                         |                                                                   |                                                     |                                                      |          |          |          |          |        
|                                                                                           |                                                                         |                                                                   |                                                     | Cash and cash equivalents at end of period           |          | $        | 232,881  |          |         | $        | 109,392  |         |         | $        | 127,678 | 
|                                                                                           |                                                                         |                                                                   |                                                     |                                                      |          |          |          |          |        
|Supplemental Disclosures of Cash Flow Information                                          |                                                                         |                                                                   |                                                     |                                                      |          |          |          |          |         |          |          |        
|Cash paid for interest, net of capitalized interest                                        |                                                                         | $                                                                 | 174,246                                             |                                                      |          | $        | 171,298  |          |         | $        | 153,300  |        
|Non-cash transactions:                                                                     |                                                                         |                                                                   |                                                     |                                                      |          |          |          |          |         |          |          |        
|                                                                                           | Acquisition of properties                                               |                                                                   | $                                                   | 519,106                                              |          |          | $        | 695,169  |         |          | $        | 533,864 |        
|                                                                                           | Assumption of secured debt                                              |                                                                   |                                                     | (74,173                                              | )        |          |          | (210,233 | )       |          |          | (42,246 | )      
|                                                                                           | Assumption of other assets and liabilities                              |                                                                   |                                                     | (5,994                                               | )        |          |          | (59,970  | )       |          |          | (7,073  | )      
|                                                                                           | Acquisition capital                                                     |                                                                   |                                                     | (13,979                                              | )        |          |          | (8,097   | )       |          |          | (9,870  | )      
|                                                                                           | Minority interests contributions, including units issued               |                                                                   |                                                     | (873                                                 | )        |          |          | (1,835   | )       |          |          | (4,487  | )      
|                                                                                           |                                                                         |                                                                   |                                                     |                                                      |          |          |          |          |        
|                                                                                           |                                                                         | Net cash paid for acquisitions                                    |                                                     | $                                                    | 424,087  |          |          | $        | 415,034 |          |          | $       | 470,188 |         
|                                                                                           |                                                                         |                                                                   |                                                     |                                                      |          |          |          |          |        
|                                                                                           | Contribution of properties to unconsolidated joint ventures, net        |                                                                   | $                                                   | 27,282                                               |          |          | $        |         |         |          | $        |        |        



F-6



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


December 31, 2005 and 2004




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

® ®




day-to










F-7



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |   |                                                                                                                                                                                                                                                                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | on a consolidated basis, the Operating Partnership owned or
    partially owned 876 industrial buildings, principally warehouse
    distribution buildings, encompassing approximately
    87.8 million rentable square feet that were 95.8% leased,
    and other buildings encompassing approximately 0.3 million
    rentable square feet that were 98.7% leased;
|
| |  | the Operating Partnership managed, but did not have an ownership
    interest in, industrial and other properties, totaling
    approximately 1.7 million rentable square feet;                                                                                                                                                                                     
|
| |  | through unconsolidated joint ventures, the Operating Partnership
    had investments in 86 industrial operating properties, totaling
    approximately 12.8 million rentable square feet, and in two
    industrial development projects, expected to total approximately
    0.3 million rentable square feet;                                                     
|
| |  | on a consolidated basis, the Operating Partnership had
    investments in 45 industrial development projects which are
    expected to total approximately 11.5 million rentable
    square feet; and                                                                                                                                                               
|
| |  | on a consolidated basis, the Operating Partnership owned one
    development project, totaling $32.8 million and
    approximately 0.6 million rentable square feet, that was
    available for sale or contribution.                                                                                                                                               



|   |                                           
|-- | ------------------------------------------
|2. | Summary of Significant Accounting Policies

Basis of Presentation.


Use of Estimates.


Reclassifications.


Investments in Real Estate.


F-8



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                      |                                                                |                         |            |  |        |   |         |         |        |   |         |         |        |   |         |         | 
|------------------------------------- | -------------------------------------------------------------- | ----------------------- | ---------- |  | ------ | - | ------- | ------- | ------ | - | ------- | ------- | ------ | - | ------- | ------- | 
|Depreciation and Amortization Expense |                                                                | Estimated Lives         |            |  | 2005   |   |         | 2004    |        |   | 2003    |        
|                                      |                                                                |                         |            |  |        |   |         |         |        |   |         |        
|Building costs                        |                                                                |                         | 5-40 years |  |        | $ | 85,192  |         |        | $ | 68,329  |         |        | $ | 74,820  |        
|Building costs on ground leases       |                                                                |                         | 5-40 years |  |        |   | 16,631  |         |        |   | 31,268  |         |        |   | 11,581  |        
|Buildings and improvements:           |                                                                |                         |            |  |        |   |         |         |        |   |         |         |        |   |         |        
|Roof/ HVAC/parking lots               |                                                                |                         | 5-40 years |  |        |   | 6,928   |         |        |   | 6,072   |         |        |   | 5,280   |        
|Plumbing/signage                      |                                                                |                         | 7-25 years |  |        |   | 2,111   |         |        |   | 1,704   |         |        |   | 1,319   |        
|Painting and other                    |                                                                |                         | 5-40 years |  |        |   | 15,035  |         |        |   | 13,516  |         |        |   | 10,696  |        
|Tenant improvements                   |                                                                | Over initial lease term |            |  | 21,635 |   |         |         | 20,246 |   |         |         | 16,026 |  
|Lease commissions                     |                                                                | Over initial lease term |            |  | 21,095 |   |         |         | 19,655 |   |         |         | 20,306 |  
|                                      |                                                                |                         |            |  |        |   |         |         |        |   |         |        
|                                      | Total real estate depreciation and amortization                |                         |            |  |        |   |         | 168,627 |        |   |         | 160,790 |        |   |         | 140,028 | 
|Other depreciation and amortization   |                                                                |                         | Various    |  |        |   | 11,677  |         |        |   | 6,560   |         |        |   | 2,309   |        
|Discontinued operations depreciation |                                                                |                         | Various    |  |        |   | (14,866 | )       |        |   | (26,230 | )       |        |   | (26,270 | )      
|                                      |                                                                |                         |            |  |        |   |         |         |        |   |         |        
|                                      | Total depreciation and amortization from continuing operations |                         |            |  |        |   | $       | 165,438 |        |   | $       | 141,120 |        |   | $       | 116,067 | 
|                                      |                                                                |                         |            |  |        |   |         |         |        |   |         |        





Investments in Consolidated and Unconsolidated Joint
Ventures.


Accounting for Certain Financial Instruments with
Characteristics of both Liabilities and Equity


F-9



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Consolidation of Variable Interest Entities
FIN 46. Investors Accounting for an
Investee When the Investor Has a Majority of the Voting Interest
but the Minority Shareholder or Shareholders Have Certain
Approval or Veto Rights Accounting for Investments in Real Estate Ventures and
FIN 46.


04-5, Determining Whether a General Partner, or the General
Partners as a Group, Controls a Limited Partnership or Similar
Entity When the Limited Partners Have Certain Rights. Investors Accounting for an Investee
When the Investor has a Majority of the Voting Interest but the
Minority Shareholder or Shareholders Have Certain Approval or
Veto rights.


F-10



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Cash and Cash Equivalents.


Restricted Cash.


Mortgages and Loans Receivable.


Accounts Receivable.


Concentration of Credit Risk.


Deferred Financing Costs.


Financial Instruments. Accounting for Derivative Instruments and for Hedging
Activities


Debt.


F-11



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Debt Premiums.


Rental Revenues and Allowance for Doubtful Accounts.


Private Capital Income.


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




|                                 |         |      |     |      |      |   |       |      |  |   |       |      | 
|-------------------------------- | ------- | ---- | --- | ---- | ---- | - | ----- | ---- |  | - | ----- | ---- | 
|                                 |         | 2005 |     |      | 2004 |   |       | 2003 | 
|                                 |         |      |     |      |      |   |       |      | 
|Reduction to net income          |         | $    | 243 |      |      | $ | 1,100 |      |  | $ | 1,613 |     
|Adjusted income per common unit: |         |      |     |      |      |   |       |      |  |   |       |     
|                                 | Basic   |      | $   | 2.97 |      |   | $     | 1.43 |  |   | $     | 1.42 | 
|                                 | Diluted |      | $   | 2.85 |      |   | $     | 1.37 |  |   | $     | 1.39 | 

Share-Based Payment.


F-12



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Interest and Other Income.


Gains from Dispositions of Real Estate Interests.


Gains from Dispositions of Real Estate.


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


International Operations.




F-13



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




New Accounting Pronouncements. Exchanges of Nonmonetary
Assets  an amendment of APB Opinion No. 29






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









F-14



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






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

Gains from Dispositions of Real Estate Interests.






Development Sales and Contributions.






Discontinued Operations.


F-15



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










Properties Held for Contribution.


Properties Held for Divestiture.


F-16



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                          |                                                |      |         |       |      |   |         |        |  |   |         |        | 
|--------------------------------------------------------- | ---------------------------------------------- | ---- | ------- | ----- | ---- | - | ------- | ------ |  | - | ------- | ------ | 
|                                                          |                                                | 2005 |         |       | 2004 |   |         | 2003   | 
|                                                          |                                                |      |         |       |      |   |         |        | 
|Rental revenues                                           |                                                | $    | 63,771  |       |      | $ | 99,411  |        |  | $ | 115,711 |       
|Straight-line rents and amortization of lease intangibles |                                                |      | 2,365   |       |      |   | 1,803   |        |  |   | 1,932   |       
|Property operating expenses                               |                                                |      | (10,940 | )     |      |   | (16,113 | )      |  |   | (17,470 | )     
|Real estate taxes                                         |                                                |      | (7,602  | )     |      |   | (12,401 | )      |  |   | (13,322 | )     
|Depreciation and amortization                             |                                                |      | (14,866 | )     |      |   | (26,230 | )      |  |   | (26,270 | )     
|General and administrative                                |                                                |      | (67     | )     |      |   | (113    | )      |  |   | (11     | )     
|Other income and expenses, net                            |                                                |      | 48      |       |      |   | 250     |        |  |   | 197     |       
|Interest, including amortization                          |                                                |      | (15,208 | )     |      |   | (15,185 | )      |  |   | (16,920 | )     
|Joint venture partners share of income                   |                                                |      | (8,009  | )     |      |   | (12,523 | )      |  |   | (14,602 | )     
|                                                          |                                                |      |         |       |      |   |         |        | 
|                                                          | Income attributable to discontinued operations |      | $       | 9,492 |      |   | $       | 18,899 |  |   | $       | 29,245 | 
|                                                          |                                                |      |         |       |      |   |         |        | 



|                                       |  |      |       |  |      |   |     | 
|-------------------------------------- |  | ---- | ----- |  | ---- | - | --- | 
|                                       |  | 2005 |       |  | 2004 |  
|                                       |  |      |       |  |      |  
|Accounts receivable, net               |  | $    | 1,127 |  |      | $ | 207 | 
|Other assets                           |  | $    | 56    |  |      | $ | 39  | 
|Accounts payable and other liabilities |  | $    | 879   |  |      | $ | 156 | 



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



|                                    |  |        |                 |  |          |  |               |      |  |   |        |  |  |      |        |  |  |  |      |  
|----------------------------------- |  | ------ | --------------- |  | -------- |  | ------------- | ---- |  | - | ------ |  |  | ---- | ------ |  |  |  | ---- | -
|Mortgage and Loan Receivables       |  | Market |                 |  | Maturity |  |               | 2005 |  |   | 2004   |  |  | Rate |       
|                                    |  |        |                 |  |          |  |               |      |  |   |        |  |  |      |       
|1. Pier 1                           |  |        | SF Bay Area     |  |          |  | May 2026      |      |  | $ | 12,821 |  |  | $    | 12,938 |  |  |  | 13.0 | %
|2. G.Accion                         |  |        | Mexico, Various |  |          |  | November 2006 |      |  |   | 8,800  |  |  |      |       |  |  |  | 10.0 | %
|3. Platinum Distribution Center     |  |        | No. New Jersey  |  |          |  | N/A           |      |  |   |       |  |  |      | 800    |  |  |  | 12.0 | %
|                                    |  |        |                 |  |          |  |               |      |  |   |        |  |  |      |       
|Total Mortgage and Loan Receivables |  |        |                 |  |          |  |               |      |  | $ | 21,621 |  |  | $    | 13,738 |  |  |  |      |  
|                                    |  |        |                 |  |          |  |               |      |  |   |        |  |  |      |       

F-17



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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



|                                                                                                                                                                                                                                                                    |  |      |           |  |      |   |           | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | --------- |  | ---- | - | --------- | 
|                                                                                                                                                                                                                                                                    |  | 2005 |           |  | 2004 |  
|                                                                                                                                                                                                                                                                    |  |      |           |  |      |  
|Operating Partnership secured debt, varying interest rates from
    0.6% to 10.4%, due January 2006 to December 2022 (weighted
    average interest rate of 4.1% and 5.3% at December 31, 2005
    and 2004, respectively)                                          |  | $    | 522,459   |  |      | $ | 484,929   | 
|Consolidated joint venture secured debt, varying interest rates
    from 3.5% to 9.4%, due March 2006 to January 2025 (weighted
    average interest rates of 6.3% and 6.4% at December 31,
    2005 and 2004, respectively)                                        |  |      | 1,378,083 |  |      |   | 1,396,829 | 
|Unsecured senior debt securities, varying interest rates from
    3.5% to 8.0%, due January 2006 to June 2018 (weighted average
    interest rates of 6.2% and 6.6% at December 31, 2005 and
    2004, respectively, net of $12.5 million unamortized
    discount) |  |      | 975,000   |  |      |   | 1,003,940 | 
|Unsecured debt, due August 2006 to November 2015, interest rate
    of 8.2%                                                                                                                                                                                         |  |      | 23,963    |  |      |   | 9,028     | 
|Unsecured credit facilities, variable interest rate, due June
    2007 to May 2008 (weighted average interest rates of 2.2% and
    1.9% at December 31, 2005 and 2004, respectively)                                                                               |  |      | 490,072   |  |      |   | 351,699   | 
|                                                                                                                                                                                                                                                                    |  |      |           |  |      |  
|Total debt before unamortized premiums                                                                                                                                                                                                                              |  |      | 3,389,577 |  |      |   | 3,246,425 | 
|Unamortized premiums                                                                                                                                                                                                                                                |  |      | 11,984    |  |      |   | 10,766    | 
|                                                                                                                                                                                                                                                                    |  |      |           |  |      |  
|Total consolidated debt                                                                                                                                                                                                                                             |  | $    | 3,401,561 |  |      | $ | 3,257,191 | 
|                                                                                                                                                                                                                                                                    |  |      |           |  |      |  







F-18



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








F-19



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|           |       |             |         |         |               |   |         |             |  |   |           |         |  |            |        |        |       |   |         |         |  |   |         |           | 
|---------- | ----- | ----------- | ------- | ------- | ------------- | - | ------- | ----------- |  | - | --------- | ------- |  | ---------- | ------ | ------ | ----- | - | ------- | ------- |  | - | ------- | --------- | 
|           |       | Operating   |         |         |               |   |         |             |  |   |           |         | 
|           |       | Partnership |         |         | Consolidated  |   |         | Unsecured   |  |   |           |         |  |            |       
|           |       | Secured     |         |         | Joint Venture |   |         | Senior Debt |  |   | Unsecured |         |  | Credit     |        |        |      
|           |       | Debt        |         |         | Secured Debt  |   |         | Securities  |  |   | Debt      |         |  | Facilities |        |        | Total |  
|           |       |             |         |         |               |   |         |             |  |   |           |         |  |            |        |        |       |  
|2006       |       | $           | 65,369  |         |               | $ | 79,262  |             |  | $ | 75,000    |         |  | $          | 16,280 |        |       | $ |        |         |  | $ | 235,911 |          
|2007       |       |             | 12,680  |         |               |   | 58,124  |             |  |   | 75,000    |         |  |            | 752    |        |       |   | 422,602 |         |  |   | 569,158 |          
|2008       |       |             | 40,705  |         |               |   | 178,795 |             |  |   | 175,000   |         |  |            | 810    |        |       |   | 67,470  |         |  |   | 462,780 |          
|2009       |       |             | 5,264   |         |               |   | 120,551 |             |  |   | 100,000   |         |  |            | 873    |        |       |   |        |         |  |   | 226,688 |          
|2010       |       |             | 71,078  |         |               |   | 116,927 |             |  |   | 250,000   |         |  |            | 941    |        |       |   |        |         |  |   | 438,946 |          
|2011       |       |             | 21,573  |         |               |   | 357,207 |             |  |   | 75,000    |         |  |            | 1,014  |        |       |   |        |         |  |   | 454,794 |          
|2012       |       |             | 254,996 |         |               |   | 171,442 |             |  |   |          |         |  |            | 1,093  |        |       |   |        |         |  |   | 427,531 |          
|2013       |       |             | 14,773  |         |               |   | 196,894 |             |  |   |          |         |  |            | 920    |        |       |   |        |         |  |   | 212,587 |          
|2014       |       |             | 15,066  |         |               |   | 4,684   |             |  |   |          |         |  |            | 616    |        |       |   |        |         |  |   | 20,366  |          
|2015       |       |             | 1,951   |         |               |   | 61,653  |             |  |   | 100,000   |         |  |            | 664    |        |       |   |        |         |  |   | 164,268 |          
|Thereafter |       |             | 19,004  |         |               |   | 32,544  |             |  |   | 125,000   |         |  |            |       |        |       |   |        |         |  |   | 176,548 |          
|           |       |             |         |         |               |   |         |             |  |   |           |         |  |            |        |        |       |  
|           | Total |             | $       | 522,459 |               |   | $       | 1,378,083   |  |   | $         | 975,000 |  |            | $      | 23,963 |       |   | $       | 490,072 |  |   | $       | 3,389,577 | 
|           |       |             |         |         |               |   |         |             |  |   |           |         |  |            |        |        |       |  

F-20



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                 
|-- | ----------------
|7. | Leasing Activity



|           |       |   |         |           | 
|---------- | ----- | - | ------- | --------- | 
|2006       |       | $ | 508,747 |          
|2007       |       |   | 434,700 |          
|2008       |       |   | 350,062 |          
|2009       |       |   | 274,763 |          
|2010       |       |   | 204,020 |          
|Thereafter |       |   | 468,330 |          
|           |       |   |        
|           | Total |   | $       | 2,240,622 | 
|           |       |   |        





|   |             
|-- | ------------
|8. | Income Taxes





|                                                                                   |                                                |      |          |         |      |   |          |         |  |   |          |         | 
|---------------------------------------------------------------------------------- | ---------------------------------------------- | ---- | -------- | ------- | ---- | - | -------- | ------- |  | - | -------- | ------- | 
|                                                                                   |                                                | 2005 |          |         | 2004 |   |          | 2003    | 
|                                                                                   |                                                |      |          |         |      |   |          |         | 
|Net income available to common unitholders attributable to the
    general partner |                                                | $    | 250,419  |         |      | $ | 118,340  |         |  | $ | 116,716  |        
|Book depreciation and amortization                                                 |                                                |      | 165,438  |         |      |   | 141,120  |         |  |   | 116,067  |        
|Book depreciation discontinued operations                                          |                                                |      | 14,866   |         |      |   | 26,230   |         |  |   | 26,270   |        
|Impairment losses                                                                  |                                                |      |         |         |      |   |         |         |  |   | 5,251    |        
|Tax depreciation and amortization                                                  |                                                |      | (152,084 | )       |      |   | (141,368 | )       |  |   | (129,608 | )      
|Book/tax difference on gain on divestitures of real estate                         |                                                |      | (23,104  | )       |      |   | (7,409   | )       |  |   | 13,783   |        
|Book/tax difference in stock option expense                                        |                                                |      | (35,513  | )       |      |   | (15,069  | )       |  |   | 1,069    |        
|Other book/tax differences, net(1)                                                 |                                                |      | (35,348  | )       |      |   | (14,786  | )       |  |   | (6,576   | )      
|                                                                                   |                                                |      |          |         |      |   |          |         | 
|                                                                                   | Taxable income available to common unitholders |      | $        | 184,674 |      |   | $        | 107,058 |  |   | $        | 142,972 | 
|                                                                                   |                                                |      |          |         |      |   |          |         | 






|    |                                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------
|(1) | Primarily due to straight-line rent, prepaid rent, joint venture
    accounting and debt premium amortization timing differences.

F-21



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                   |                           |      |      |      |  |      |      |       |   |   |      |      |  |  |      |       |   |   |      |      |  |  |      |       |  
|---------------------------------- | ------------------------- | ---- | ---- | ---- |  | ---- | ---- | ----- | - | - | ---- | ---- |  |  | ---- | ----- | - | - | ---- | ---- |  |  | ---- | ----- | -
|                                   |                           | 2005 |      |      |  |      |      |       |   |   |     
|                                   |                           |      |      |      |  |      |      |       |   |   |     
|                                   |                           |      |      | 2004 |  |      |      |       |  
|                                   |                           |      |      |      |  |      |      |       |  
|                                   |                           |      |      |      |  | 2003 |     
|                                   |                           |      |      |      |  |      |     
|Ordinary income                    |                           | $    | 0.50 |      |  |      | 23.0 | %     |   | $ | 0.78 |      |  |  | 46.1 | %     |   | $ | 1.07 |      |  |  | 64.5 | %    
|Capital gains                      |                           |      | 1.34 |      |  |      | 61.1 | %     |   |   | 0.37 |      |  |  | 21.9 | %     |   |   | 0.47 |      |  |  | 28.3 | %    
|Unrecaptured Section 1250 gain     |                           |      | 0.35 |      |  |      | 15.9 | %     |   |   | 0.15 |      |  |  | 8.9  | %     |   |   | 0.12 |      |  |  | 7.2  | %    
|Dividends taxed in subsequent year |                           |      |     |      |  |      |     |       |   |   |     |      |  |  |     |       |   |   |     |      |  |  |     |      
|                                   |                           |      |      |      |  |      |      |       |   |   |      |      |  |  |      |       |   |  
|                                   | Dividends paid or payable |      |      | 2.19 |  |      |      | 100.0 | % |   |      | 1.30 |  |  |      | 76.9  | % |   |      | 1.66 |  |  |      | 100.0 | %
|                                   |                           |      |      |      |  |      |      |       |   |   |      |      |  |  |      |       |   |  
|Return of capital                  |                           |      |     |      |  |      | 0.0  | %     |   |   | 0.39 |      |  |  | 23.1 | %     |   |   |     |      |  |  |     |      
|                                   |                           |      |      |      |  |      |      |       |   |   |      |      |  |  |      |       |   |  
|                                   | Total distributions       |      | $    | 2.19 |  |      |      | 100.0 | % |   | $    | 1.69 |  |  |      | 100.0 | % |   | $    | 1.66 |  |  |      | 100.0 | %
|                                   |                           |      |      |      |  |      |      |       |   |   |      |      |  |  |      |       |   |  



|   |                                                                          
|-- | -------------------------------------------------------------------------
|9. | Minority Interests in Consolidated Joint Ventures and
    Preferred Units

Consolidation of Variable
Interest Entities.




F-22



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                          |       |                                                                   |  |               |    |   |                   |   |         |                  |  |   |         |           |  |      |         |           |  |   |         |           | 
|----------------------------------------- | ----- | ----------------------------------------------------------------- |  | ------------- | -- | - | ----------------- | - | ------- | ---------------- |  | - | ------- | --------- |  | ---- | ------- | --------- |  | - | ------- | --------- | 
|                                          |       |                                                                   |  | Operating     |    |   | Total Investment  |   |         |                 
|                                          |       |                                                                   |  | Partnerships |    |   | in Real Estate(7) |   |         | Property Debt(8) | 
|                                          |       |                                                                   |  | Ownership     |    |   |                   |   |         |                  | 
|Co-investment Joint Venture               |       | Joint Venture Partner                                             |  | Percentage    |    |   | 2005              |   |         | 2004             |  |   | 2005    |           |  | 2004 |        
|                                          |       |                                                                   |  |               |    |   |                   |   |         |                  |  |   |         |           |  |      |        
|AMB/ Erie, L.P.                           |       | Erie Insurance Company and affiliates                             |  |               | 50 | % |                   | $ | 99,722  |                  |  | $ | 149,244 |           |  | $    | 40,710  |           |  | $ | 50,338  |          
|AMB Institutional Alliance Fund I, L.P.   |       | AMB Institutional Alliance REIT I, Inc.(1)                        |  |               | 21 | % |                   |   |        |                  |  |   | 415,191 |           |  |      |        |           |  |   | 223,704 |          
|AMB Partners II, L.P.                     |       | City and County of San Francisco Employees Retirement
    System |  |               | 20 | % |                   |   | 592,115 |                  |  |   | 516,200 |           |  |      | 291,684 |           |  |   | 264,315 |          
|AMB-SGP, L.P.                             |       | Industrial JV Pte Ltd(2)                                          |  |               | 50 | % |                   |   | 436,713 |                  |  |   | 418,129 |           |  |      | 239,944 |           |  |   | 245,454 |          
|AMB Institutional Alliance Fund II, L.P.  |       | AMB Institutional Alliance REIT II, Inc.(3)                       |  |               | 20 | % |                   |   | 507,493 |                  |  |   | 492,687 |           |  |      | 245,056 |           |  |   | 237,798 |          
|AMB-AMS, L.P.(4)                          |       | PMT, SPW and TNO(5)                                               |  |               | 39 | % |                   |   | 146,007 |                  |  |   | 100,043 |           |  |      | 63,143  |           |  |   | 44,406  |          
|AMB Institutional Alliance Fund III, L.P. |       | AMB Institutional Alliance REIT III, Inc.(6)                      |  |               | 20 | % |                   |   | 749,634 |                  |  |   | 523,037 |           |  |      | 421,290 |           |  |   | 258,164 |          
|                                          |       |                                                                   |  |               |    |   |                   |   |         |                  |  |   |         |           |  |      |        
|                                          | Total |                                                                   |  |               |    |   |                   |   | $       | 2,531,684        |  |   | $       | 2,614,531 |  |      | $       | 1,301,827 |  |   | $       | 1,324,179 | 
|                                          |       |                                                                   |  |               |    |   |                   |   |         |                  |  |   |         |           |  |      |        






|    |                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Comprised of 16 institutional investors as stockholders as of
    December 31, 2005.                                                                         
|   
|(2) | A subsidiary of the real estate investment subsidiary of the
    Government of Singapore Investment Corporation.                                             
|   
|(3) | Comprised of 14 institutional investors as stockholders and one
    third-party limited partner as of December 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 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
    $378.7 million as of December 31, 2005.
|   
|(8) | The Operating Partnership also had other consolidated joint
    ventures with secured debt of $85.7 million as of
    December 31, 2005.                     

F-23



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                    |                                                                     |                          |         |        |           |   |         |        |           | 
|----------------------------------- | ------------------------------------------------------------------- | ------------------------ | ------- | ------ | --------- | - | ------- | ------ | --------- | 
|                                    |                                                                     | 2005                     |         |        | 2004      |  
|                                    |                                                                     |                          |         |        |           |  
|Joint venture partners              |                                                                     | $                        | 853,643 |        |           | $ | 828,622 |       
|Held through AMB Property II, L.P.: |                                                                     |                          |         |        |           |   |         |       
|                                    | Class B Limited Partners                                            |                          |         | 2,950  |           |   |         | 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)(1) |                          |         | 36,479 |           |   |         | 36,479 |          
|                                    |                                                                     |                          |         |        |           |  
|                                    |                                                                     | Total minority interests |         | $      | 1,057,156 |   |         | $      | 1,031,924 | 
|                                    |                                                                     |                          |         |        |           |  






|    |                                                                                                                                                                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The holder of the series N preferred units exercised its
    put option in January 2006 and sold all of its series N
    preferred units to the Operating Partnership at a price equal to
    $50 per unit, plus all accrued and unpaid distributions.



|                                                     |                                                                     |                                               |        |       |        |   |        |       |        |   |        |       |        | 
|---------------------------------------------------- | ------------------------------------------------------------------- | --------------------------------------------- | ------ | ----- | ------ | - | ------ | ----- | ------ | - | ------ | ----- | ------ | 
|                                                     |                                                                     | 2005                                          |        |       | 2004   |   |        | 2003  |       
|                                                     |                                                                     |                                               |        |       |        |   |        |       |       
|Joint venture partners                               |                                                                     | $                                             | 36,398 |       |        | $ | 29,544 |       |        | $ | 21,015 |      
|Joint venture partners share of development profits |                                                                     |                                               | 11,230 |       |        |   | 523    |       |        |   | 8,098  |      
|Held through AMB Property II, L.P.:                  |                                                                     |                                               |        |       |        |   |        |       |        |   |        |      
|                                                     | Class B common limited partnership units                            |                                               |        | 115   |        |   |        | 102   |        |   |        | 24    |       
|                                                     | Series D preferred units (liquidation preference of $79,767)        |                                               |        | 6,182 |        |   |        | 6,182 |        |   |        | 6,182 |       
|                                                     | Series E preferred units (liquidation preference of $11,022)        |                                               |        | 854   |        |   |        | 854   |        |   |        | 854   |       
|                                                     | Series F preferred units (liquidation preference of $10,057)        |                                               |        | 800   |        |   |        | 800   |        |   |        | 931   |       
|                                                     | Series H preferred units (liquidation preference of $42,000)        |                                               |        | 3,413 |        |   |        | 3,413 |        |   |        | 3,412 |       
|                                                     | Series I preferred units (liquidation preference of $25,500)        |                                               |        | 2,040 |        |   |        | 2,040 |        |   |        | 2,040 |       
|                                                     | Series N preferred units (liquidation preference of
    $36,479)(1) |                                               |        | 1,824 |        |   |        | 512   |        |   |        |      |       
|                                                     |                                                                     |                                               |        |       |        |   |        |       |       
|                                                     |                                                                     | Total minority interests share of net income |        | $     | 62,856 |   |        | $     | 43,970 |   |        | $     | 42,556 | 
|                                                     |                                                                     |                                               |        |       |        |   |        |       |       






|    |                                                                                                                                                                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The holder of the series N preferred units exercised its
    put option in January 2006 and sold all of its series N
    preferred units to the Operating Partnership at a price equal to
    $50 per unit, plus all accrued and unpaid distributions.



|    |                                             
|--- | --------------------------------------------
|10. | Investments in Unconsolidated Joint Ventures



F-24



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                            |                           |                                     |         |                 |             |  |           |           |            |               |        |        |         |            |        |       |        |  |    |    |   | 
|------------------------------------------- | ------------------------- | ----------------------------------- | ------- | --------------- | ----------- |  | --------- | --------- | ---------- | ------------- | ------ | ------ | ------- | ---------- | ------ | ----- | ------ |  | -- | -- | - | 
|                                            |                           |                                     |         |                 |             |  |           |           |            | Operating     |       
|                                            |                           |                                     |         |                 |             |  |           |           |            | Partnerships |       
|                                            |                           |                                     |         |                 |             |  |           |           |            | Ownership     |       
|Unconsolidated Joint Ventures               |                           | Market                              |         |                 | Square Feet |  |           | 2005      |            |               | 2004   |        |         | Percentage |       
|                                            |                           |                                     |         |                 |             |  |           |           |            |               |        |        |         |            |       
|Co-Investment Joint Ventures                |                           |                                     |         |                 |             |  |           |           |            |               |        |        |         |            |        |       |        |  |    |   
|                                            | AMB-SGP Mexico, LLC(1)    |                                     |         | Various, Mexico |             |  |           | 1,892,407 |            |               | $      | 16,218 |         |            | $      | 9,467 |        |  |    | 20 | %
|                                            | AMB Japan Fund I, L.P.(2) |                                     |         | Various, Japan  |             |  |           | 1,201,698 |            |               |        | 10,112 |         |            |        |      |        |  |    | 20 | %
|Other Industrial Operating Joint Ventures   |                           |                                     |         |                 |             |  | 9,295,507 |           |            |               | 41,520 |        |         |            | 41,371 |       |        |  | 52 | % 
|Other Industrial Development Joint Ventures |                           |                                     |         |                 |             |  | 719,267   |           |            |               | 6,176  |        |         |            | 4,328  |       |        |  | 50 | % 
|Other Investment  G.Accion                 |                           |                                     | Various |                 |             |  | N/A       |           |            |               | 44,627 |        |         |            |       |       |        |  | 39 | % 
|                                            |                           |                                     |         |                 |             |  |           |           |            |               |        |        |         |            |       
|                                            |                           | Total Unconsolidated Joint Ventures |         |                 |             |  |           |           | 13,108,879 |               |        | $      | 118,653 |            |        | $     | 55,166 |  |    |    |   | 
|                                            |                           |                                     |         |                 |             |  |           |           |            |               |        |        |         |            |       






|    |                                                                                                                                                                                                                                                                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | AMB-SGP Mexico is a co-investment partnership formed in 2004
    with GIC Real Estate Pte Ltd, the real estate investment
    subsidiary of the Government of Singapore Investment
    Corporation. Includes $7.3 million of shareholder loans
    outstanding at December 31, 2005 between the Operating
    Partnership and the co-investment partnership.
|   
|(2) | AMB Japan Fund I is a co-investment partnership formed in
    2005 with institutional investors.                                                                                                                                                                                                                                                            









F-25



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|    |                  
|--- | -----------------
|11. | Partners Capital









F-26



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










|                      |  |          |                                          |  |      |   |      |      |  |   |      |  |  |   |      | 
|--------------------- |  | -------- | ---------------------------------------- |  | ---- | - | ---- | ---- |  | - | ---- |  |  | - | ---- | 
|Paying Entity         |  | Security |                                          |  | 2005 |   |      | 2004 |  |   | 2003 | 
|                      |  |          |                                          |  |      |   |      |      |  |   |      | 
|AMB Property, L.P.    |  |          | Common limited partnership units         |  |      | $ | 1.76 |      |  | $ | 1.70 |  |  | $ | 1.66 | 
|AMB Property, L.P.    |  |          | Series B preferred units                 |  |      |   | n/a  |      |  |   | n/a  |  |  | $ | 3.71 | 
|AMB Property, L.P.    |  |          | Series J preferred units                 |  |      | $ | 3.98 |      |  | $ | 3.98 |  |  | $ | 3.98 | 
|AMB Property, L.P.    |  |          | Series K preferred units                 |  |      | $ | 3.98 |      |  | $ | 3.98 |  |  | $ | 3.98 | 
|AMB Property II, L.P. |  |          | Class B common limited partnership units |  |      | $ | 1.76 |      |  | $ | 1.70 |  |  | $ | 0.22 | 
|AMB Property II, L.P. |  |          | Series D preferred units                 |  |      | $ | 3.88 |      |  | $ | 3.88 |  |  | $ | 3.88 | 
|AMB Property II, L.P. |  |          | Series E preferred units                 |  |      | $ | 3.88 |      |  | $ | 3.88 |  |  | $ | 3.88 | 
|AMB Property II, L.P. |  |          | Series F preferred units                 |  |      | $ | 3.98 |      |  | $ | 3.98 |  |  | $ | 3.98 | 
|AMB Property II, L.P. |  |          | Series H preferred units                 |  |      | $ | 4.06 |      |  | $ | 4.06 |  |  | $ | 4.06 | 
|AMB Property II, L.P. |  |          | Series I preferred units                 |  |      | $ | 4.00 |      |  | $ | 4.00 |  |  | $ | 4.00 | 
|AMB Property II, L.P. |  |          | Series N preferred units(1)              |  |      | $ | 2.50 |      |  | $ | 0.70 |  |  |   | n/a  | 






|    |                                                                                                                                                                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The holder of the series N preferred units exercised its
    put option in January 2006 and sold all of its series N
    preferred units to the Operating Partnership at a price equal to
    $50 per unit, plus all accrued and unpaid distributions.



|    |                                                                     
|--- | --------------------------------------------------------------------
|12. | Stock Incentive Plan, 401(k) Plan and Deferred Compensation
    Plan

Stock Incentive Plan.


F-27



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Accounting
for Stock-Based Compensation.


Accounting for
Stock-Based Compensation  Transition and
Disclosure  An Amendment of FASB Statement
No. 123




F-28



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                              |  |        |           |   |                |         |       |             |  |  |       | 
|--------------------------------------------- |  | ------ | --------- | - | -------------- | ------- | ----- | ----------- |  |  | ----- | 
|                                              |  |        |           |   |                | Options |      
|                                              |  | Shares |           |   | Weighted       |         |       | Exercisable | 
|                                              |  | Under  |           |   | Average        |         |       | at Year     | 
|                                              |  | Option |           |   | Exercise Price |         |       | End         | 
|                                              |  |        |           |   |                |         |       |             | 
|Outstanding as of December 31, 2002           |  |        | 8,765     |   |                | $       | 23.16 |             |  |  | 5,526 | 
|                                              |  |        |           |   |                |         |       |             | 
|Granted                                       |  |        | 1,854     |   |                |         | 27.18 |             |  |  |       | 
|Exercised                                     |  |        | (318      | ) |                |         | 21.94 |             |  |  |       | 
|Forfeited                                     |  |        | (15       | ) |                |         | 25.67 |             |  |  |       | 
|                                              |  |        |           |   |                |         |       |             | 
|Outstanding as of December 31, 2003           |  |        | 10,286    |   |                |         | 23.92 |             |  |  | 7,210 | 
|                                              |  |        |           |   |                |         |       |             | 
|Granted                                       |  |        | 1,253     |   |                |         | 34.88 |             |  |  |       | 
|Exercised                                     |  |        | (1,233    | ) |                |         | 22.45 |             |  |  |       | 
|Forfeited                                     |  |        | (85       | ) |                |         | 29.43 |             |  |  |       | 
|                                              |  |        |           |   |                |         |       |             | 
|Outstanding as of December 31, 2004           |  |        | 10,221    |   |                |         | 25.40 |             |  |  | 7,841 | 
|                                              |  |        |           |   |                |         |       |             | 
|Granted                                       |  |        | 1,086     |   |                |         | 38.94 |             |  |  |       | 
|Exercised                                     |  |        | (2,033    | ) |                |         | 24.24 |             |  |  |       | 
|Forfeited                                     |  |        | (126      | ) |                |         | 35.32 |             |  |  |       | 
|                                              |  |        |           |   |                |         |       |             | 
|Outstanding as of December 31, 2005           |  |        | 9,148     |   |                | $       | 27.14 |             |  |  | 7,237 | 
|                                              |  |        |           |   |                |         |       |             | 
|Remaining average contractual life            |  |        | 5.8 years |   |                |         |       |             |  |  |       | 
|                                              |  |        |           |   |                |         |       |             | 
|Fair value of options granted during the year |  | $      | 4.48      |   |                |         |       |             |  |  |       | 
|                                              |  |        |           |   |                |         |       |             | 



|                        |  |            |       |          |                |          |           |               |                       |  |            |          |  |                |       |  |  |   |       | 
|----------------------- |  | ---------- | ----- | -------- | -------------- | -------- | --------- | ------------- | --------------------- |  | ---------- | -------- |  | -------------- | ----- |  |  | - | ----- | 
|                        |  |            |       |          |                | Weighted |           |               | Currently Exercisable | 
|                        |  |            |       |          |                | Average  |           |               |                       | 
|                        |  |            |       | Weighted |                |          | Remaining |               |                       |  |            | Weighted | 
|                        |  | Number     |       |          | Average        |          |           | Contractual   |                       |  | Number     |          |  | Average        |      
|Range of Exercise Price |  | of Options |       |          | Exercise Price |          |           | Life in Years |                       |  | of Options |          |  | Exercise Price |      
|                        |  |            |       |          |                |          |           |               |                       |  |            |          |  |                |      
|$19.81 - $21.00         |  |            | 1,848 |          |                | $        | 20.71     |               |                       |  | 2.7        |          |  |                | 1,848 |  |  | $ | 20.71 | 
|$21.19 - $24.69         |  |            | 2,214 |          |                |          | 23.48     |               |                       |  | 4.4        |          |  |                | 2,214 |  |  |   | 23.48 | 
|$25.06 - $27.12         |  |            | 2,714 |          |                |          | 26.74     |               |                       |  | 6.7        |          |  |                | 2,325 |  |  |   | 26.69 | 
|$27.14 - $38.56         |  |            | 2,226 |          |                |          | 35.66     |               |                       |  | 8.4        |          |  |                | 850   |  |  |   | 33.32 | 
|$39.09 - $44.65         |  |            | 146   |          |                |          | 41.30     |               |                       |  | 9.4        |          |  |                |      |  |  |   |      | 
|                        |  |            |       |          |                |          |           |               |                       |  |            |          |  |                |      
|                        |  |            | 9,148 |          |                |          |           |               |                       |  |            |          |  |                | 7,237 |  |  |   |       | 
|                        |  |            |       |          |                |          |           |               |                       |  |            |          |  |                |      



401(k) Plan.


F-29



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Deferred Compensation Plan.


F-30



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                
|--- | ---------------
|13. | Income Per Unit



|                               |                                                                               |                                            |   |            |         |  |   |            |         |  |   |            |         | 
|------------------------------ | ----------------------------------------------------------------------------- | ------------------------------------------ | - | ---------- | ------- |  | - | ---------- | ------- |  | - | ---------- | ------- | 
|                               |                                                                               | 2005                                       |   |            | 2004    |  |   | 2003       |        
|                               |                                                                               |                                            |   |            |         |  |   |            |        
|Numerator                      |                                                                               |                                            |   |            |         |  |   |            |         |  |   |           
|                               | Income from continuing operations                                             |                                            | $ | 147,443    |         |  | $ | 74,901     |         |  | $ | 72,485     |        
|                               | Preferred unit distributions                                                  |                                            |   | (13,748    | )       |  |   | (13,491    | )       |  |   | (18,187    | )      
|                               | Preferred unit redemption discount/(issuance costs or premium)                |                                            |   |           |         |  |   |           |         |  |   | (5,413     | )      
|                               |                                                                               |                                            |   |            |         |  |   |            |        
|                               | Income from continuing operations (after preferred unit
    distributions)    |                                            |   | 133,695    |         |  |   | 61,410     |         |  |   | 48,885     |        
|                               | Income attributable to discontinued operations, net of minority
    interests |                                            |   | 9,492      |         |  |   | 18,899     |         |  |   | 29,245     |        
|                               | Gains from dispositions of real estate, net of minority interests             |                                            |   | 120,814    |         |  |   | 44,716     |         |  |   | 45,359     |        
|                               |                                                                               |                                            |   |            |         |  |   |            |        
|                               |                                                                               | Net income available to common unitholders |   | $          | 264,001 |  |   | $          | 125,025 |  |   | $          | 123,489 | 
|                               |                                                                               |                                            |   |            |         |  |   |            |        
|Denominator                    |                                                                               |                                            |   |            |         |  |   |            |         |  |   |           
|                               | Basic                                                                         |                                            |   | 88,684,262 |         |  |   | 86,885,250 |         |  |   | 85,859,899 |        
|                               | Stock options and restricted stock dilution                                   |                                            |   | 3,824,463  |         |  |   | 3,235,000  |         |  |   | 1,756,466  |        
|                               |                                                                               |                                            |   |            |         |  |   |            |        
|                               | Diluted weighted average common units                                         |                                            |   | 92,508,725 |         |  |   | 90,120,250 |         |  |   | 87,616,365 |        
|                               |                                                                               |                                            |   |            |         |  |   |            |        
|Basic income per common unit   |                                                                               |                                            |   |            |         |  |   |            |         |  |   |           
|                               | Income from continuing operations (after preferred unit
    distributions)    |                                            | $ | 1.51       |         |  | $ | 0.71       |         |  | $ | 0.57       |        
|                               | Discontinued operations                                                       |                                            |   | 1.47       |         |  |   | 0.73       |         |  |   | 0.87       |        
|                               |                                                                               |                                            |   |            |         |  |   |            |        
|                               |                                                                               | Net income available to common unitholders |   | $          | 2.98    |  |   | $          | 1.44    |  |   | $          | 1.44    | 
|                               |                                                                               |                                            |   |            |         |  |   |            |        
|Diluted income per common unit |                                                                               |                                            |   |            |         |  |   |            |         |  |   |           
|                               | Income from continuing operations (after preferred unit
    distributions)    |                                            | $ | 1.44       |         |  | $ | 0.68       |         |  | $ | 0.56       |        
|                               | Discontinued operations                                                       |                                            |   | 1.41       |         |  |   | 0.71       |         |  |   | 0.85       |        
|                               |                                                                               |                                            |   |            |         |  |   |            |        
|                               |                                                                               | Net income available to common unitholders |   | $          | 2.85    |  |   | $          | 1.39    |  |   | $          | 1.41    | 
|                               |                                                                               |                                            |   |            |         |  |   |            |        

F-31



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                              
|--- | -----------------------------
|14. | Commitments and Contingencies



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

Lease Commitments.


|           |       |   |         |         | 
|---------- | ----- | - | ------- | ------- | 
|2006       |       | $ | 20,894  |        
|2007       |       |   | 21,036  |        
|2008       |       |   | 20,617  |        
|2009       |       |   | 20,327  |        
|2010       |       |   | 19,997  |        
|Thereafter |       |   | 278,759 |        
|           |       |   |        
|           | Total |   | $       | 381,630 | 
|           |       |   |        

Standby Letters of Credit.


Guarantees. ,


Performance and Surety Bonds.


Promoted Interests and Other Contractual Obligations.


Contingencies


Litigation.


F-32



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Environmental Matters.


General Uninsured Losses.




Captive Insurance Company.


F-33



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                                     
|--- | ------------------------------------
|15. | Quarterly Financial Data (Unaudited)



|                                                             |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |         |            |         |   |         |            |         | 
|------------------------------------------------------------ | --------------------------------- | ------------------------------------------ | ------- | ---------- | ------- | - | ------- | ------------ | ------ | - | ----------- | ---------- | ------ | ---- | ------- | ---------- | ------- | - | ------- | ---------- | ------- | 
|                                                             |                                   | Quarter (unaudited)(1)                     |         |            |        
|                                                             |                                   |                                            |         |            |        
|2005                                                         |                                   | March 31                                   |         |            | June 30 |   |         | September 30 |        |   | December 31 |            |        | Year |        
|                                                             |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |        
|Total revenues                                               |                                   | $                                          | 156,721 |            |         | $ | 158,421 |              |        | $ | 160,659     |            |        | $    | 200,348 |            |         | $ | 676,149 |           
|Income before minority interests and discontinued operations |                                   |                                            | 41,343  |            |         |   | 48,174  |              |        |   | 27,691      |            |        |      | 93,091  |            |         |   | 210,299 |           
|Total minority interests share of income                    |                                   |                                            | (22,473 | )          |         |   | (12,925 | )            |        |   | (12,650     | )          |        |      | (14,808 | )          |         |   | (62,856 | )         
|Income from continuing operations                            |                                   |                                            | 18,870  |            |         |   | 35,249  |              |        |   | 15,041      |            |        |      | 78,283  |            |         |   | 147,443 |           
|Total discontinued operations                                |                                   |                                            | 32,010  |            |         |   | 9,286   |              |        |   | 17,036      |            |        |      | 71,974  |            |         |   | 130,306 |           
|                                                             |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |        
|                                                             | Net income                        |                                            |         | 50,880     |         |   |         | 44,535       |        |   |             | 32,077     |        |      |         | 150,257    |         |   |         | 277,749    |        
|Preferred unit distributions                                 |                                   |                                            | (3,373  | )          |         |   | (3,373  | )            |        |   | (3,373      | )          |        |      | (3,629  | )          |         |   | (13,748 | )         
|                                                             |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |        
|                                                             |                                   | Net income available to common unitholders |         | $          | 47,507  |   |         | $            | 41,162 |   |             | $          | 28,704 |      |         | $          | 146,628 |   |         | $          | 264,001 | 
|                                                             |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |        
|Basic income per common unit(2)                              |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |         |            |         |   |         |           
|                                                             | Income from continuing operations |                                            | $       | 0.18       |         |   | $       | 0.36         |        |   | $           | 0.13       |        |      | $       | 0.84       |         |   | $       | 1.51       |        
|                                                             | Discontinued operations           |                                            |         | 0.36       |         |   |         | 0.11         |        |   |             | 0.19       |        |      |         | 0.80       |         |   |         | 1.47       |        
|                                                             |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |        
|                                                             |                                   | Net income available to common unitholders |         | $          | 0.54    |   |         | $            | 0.47   |   |             | $          | 0.32   |      |         | $          | 1.64    |   |         | $          | 2.98    | 
|                                                             |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |        
|Diluted income per common unit(2)                            |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |         |            |         |   |         |           
|                                                             | Income from continuing operations |                                            | $       | 0.17       |         |   | $       | 0.35         |        |   | $           | 0.13       |        |      | $       | 0.80       |         |   | $       | 1.44       |        
|                                                             | Discontinued operations           |                                            |         | 0.35       |         |   |         | 0.10         |        |   |             | 0.18       |        |      |         | 0.77       |         |   |         | 1.41       |        
|                                                             |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |        
|                                                             |                                   | Net income available to common unitholders |         | $          | 0.52    |   |         | $            | 0.45   |   |             | $          | 0.31   |      |         | $          | 1.57    |   |         | $          | 2.85    | 
|                                                             |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |        
|WEIGHTED AVERAGE COMMON UNITS OUTSTANDING                    |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |         |            |         |   |         |           
|                                                             | Basic                             |                                            |         | 87,857,933 |         |   |         | 88,241,361   |        |   |             | 89,098,104 |        |      |         | 89,451,565 |         |   |         | 88,684,262 |        
|                                                             |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |        
|                                                             | Diluted                           |                                            |         | 91,240,898 |         |   |         | 91,795,834   |        |   |             | 93,034,016 |        |      |         | 93,422,964 |         |   |         | 92,508,725 |        
|                                                             |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |        






|    |                                                                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Certain reclassifications have been made to the quarterly data
    to conform with the annual presentation with no net effect to
    net income or net income available to common unitholders.
|   
|(2) | The sum of quarterly financial data may vary from the annual
    data due to rounding.                                                                                                        

F-34



---



##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                             |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |         |            |        |   |         |            |         | 
|------------------------------------------------------------ | --------------------------------- | ------------------------------------------ | ------- | ---------- | ------- | - | ------- | ------------ | ------ | - | ----------- | ---------- | ------ | ---- | ------- | ---------- | ------ | - | ------- | ---------- | ------- | 
|                                                             |                                   | Quarter (unaudited)(1)                     |         |            |        
|                                                             |                                   |                                            |         |            |        
|2004                                                         |                                   | March 31                                   |         |            | June 30 |   |         | September 30 |        |   | December 31 |            |        | Year |        
|                                                             |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |        
|Total revenues                                               |                                   | $                                          | 141,201 |            |         | $ | 141,353 |              |        | $ | 153,522     |            |        | $    | 156,353 |            |        | $ | 592,429 |           
|Income before minority interests and discontinued operations |                                   |                                            | 24,114  |            |         |   | 25,394  |              |        |   | 31,146      |            |        |      | 38,217  |            |        |   | 118,871 |           
|Total minority interests share of income                    |                                   |                                            | (9,855  | )          |         |   | (11,154 | )            |        |   | (11,509     | )          |        |      | (11,452 | )          |        |   | (43,970 | )         
|Income from continuing operations                            |                                   |                                            | 14,259  |            |         |   | 14,240  |              |        |   | 19,637      |            |        |      | 26,765  |            |        |   | 74,901  |           
|Total discontinued operations                                |                                   |                                            | 4,737   |            |         |   | 7,215   |              |        |   | 15,678      |            |        |      | 35,985  |            |        |   | 63,615  |           
|                                                             |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |        
|                                                             | Net income                        |                                            |         | 18,996     |         |   |         | 21,455       |        |   |             | 35,315     |        |      |         | 62,750     |        |   |         | 138,516    |        
|Preferred unit distributions                                 |                                   |                                            | (3,373  | )          |         |   | (3,373  | )            |        |   | (3,373      | )          |        |      | (3,372  | )          |        |   | (13,491 | )         
|                                                             |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |        
|                                                             |                                   | Net income available to common unitholders |         | $          | 15,623  |   |         | $            | 18,082 |   |             | $          | 31,942 |      |         | $          | 59,378 |   |         | $          | 125,025 | 
|                                                             |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |        
|Basic income per common unit(2)                              |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |         |            |        |   |         |           
|                                                             | Income from continuing operations |                                            | $       | 0.13       |         |   | $       | 0.13         |        |   | $           | 0.19       |        |      | $       | 0.27       |        |   | $       | 0.71       |        
|                                                             | Discontinued operations           |                                            |         | 0.05       |         |   |         | 0.08         |        |   |             | 0.18       |        |      |         | 0.41       |        |   |         | 0.73       |        
|                                                             |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |        
|                                                             |                                   | Net income available to common unitholders |         | $          | 0.18    |   |         | $            | 0.21   |   |             | $          | 0.37   |      |         | $          | 0.68   |   |         | $          | 1.44    | 
|                                                             |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |        
|Diluted income per common unit(2)                            |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |         |            |        |   |         |           
|                                                             | Income from continuing operations |                                            | $       | 0.12       |         |   | $       | 0.12         |        |   | $           | 0.18       |        |      | $       | 0.25       |        |   | $       | 0.68       |        
|                                                             | Discontinued operations           |                                            |         | 0.05       |         |   |         | 0.08         |        |   |             | 0.17       |        |      |         | 0.40       |        |   |         | 0.71       |        
|                                                             |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |        
|                                                             |                                   | Net income available to common unitholders |         | $          | 0.17    |   |         | $            | 0.20   |   |             | $          | 0.35   |      |         | $          | 0.65   |   |         | $          | 1.39    | 
|                                                             |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |        
|WEIGHTED AVERAGE COMMON UNITS OUTSTANDING                    |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |         |            |        |   |         |           
|                                                             | Basic                             |                                            |         | 86,447,303 |         |   |         | 86,824,795   |        |   |             | 86,943,931 |        |      |         | 87,277,240 |        |   |         | 86,885,250 |        
|                                                             |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |        
|                                                             | Diluted                           |                                            |         | 89,617,834 |         |   |         | 89,288,954   |        |   |             | 90,146,245 |        |      |         | 91,003,313 |        |   |         | 90,120,250 |        
|                                                             |                                   |                                            |         |            |         |   |         |              |        |   |             |            |        |      |        






|    |                                                                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Certain reclassifications have been made to the quarterly data
    to conform with the annual presentation with no net effect to
    net income or net income available to common unitholders.
|   
|(2) | The sum of quarterly financial data may vary from the annual
    data due to rounding.                                                                                                        



|    |                    
|--- | -------------------
|16. | Segment Information



F-35



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                                                          |                               |                                       |         |         |                 |  |          |         |         |  |          |         |         |      |         |        |         |  |         |        |         |  |         |        |         | 
|--------------------------------------------------------- | ----------------------------- | ------------------------------------- | ------- | ------- | --------------- |  | -------- | ------- | ------- |  | -------- | ------- | ------- | ---- | ------- | ------ | ------- |  | ------- | ------ | ------- |  | ------- | ------ | ------- | 
|                                                          |                               | Rental Revenues                       |         |         | Property NOI(1) | 
|                                                          |                               |                                       |         |         |                 | 
|Segments                                                  |                               | 2005                                  |         |         | 2004            |  |          | 2003    |         |  | 2005     |         |         | 2004 |         |        | 2003    | 
|                                                          |                               |                                       |         |         |                 |  |          |         |         |  |          |         |         |      |         |        |         | 
|Industrial domestic hub and gateway markets:              |                               |                                       |         |         |                 |  |          |         |         |  |          |         |         |      |         |        |         |  |         |        |         |  |         |       
|                                                          | Atlanta                       |                                       | $       | 21,752  |                 |  | $        | 30,411  |         |  | $        | 29,080  |         |      | $       | 16,963 |         |  | $       | 23,765 |         |  | $       | 23,048 |        
|                                                          | Chicago                       |                                       |         | 55,088  |                 |  |          | 44,991  |         |  |          | 43,835  |         |      |         | 38,116 |         |  |         | 31,378 |         |  |         | 29,933 |        
|                                                          | Dallas/ Fort Worth            |                                       |         | 16,791  |                 |  |          | 16,551  |         |  |          | 16,136  |         |      |         | 11,491 |         |  |         | 11,218 |         |  |         | 10,879 |        
|                                                          | Los Angeles                   |                                       |         | 106,104 |                 |  |          | 103,438 |         |  |          | 93,823  |         |      |         | 84,330 |         |  |         | 80,960 |         |  |         | 74,431 |        
|                                                          | Northern New Jersey/ New York |                                       |         | 85,331  |                 |  |          | 64,662  |         |  |          | 52,709  |         |      |         | 61,278 |         |  |         | 45,022 |         |  |         | 34,735 |        
|                                                          | San Francisco Bay Area        |                                       |         | 86,627  |                 |  |          | 98,885  |         |  |          | 109,819 |         |      |         | 69,003 |         |  |         | 79,429 |         |  |         | 90,008 |        
|                                                          | Miami                         |                                       |         | 34,899  |                 |  |          | 33,821  |         |  |          | 32,897  |         |      |         | 23,713 |         |  |         | 23,027 |         |  |         | 23,304 |        
|                                                          | Seattle                       |                                       |         | 44,368  |                 |  |          | 41,675  |         |  |          | 31,813  |         |      |         | 34,394 |         |  |         | 32,539 |         |  |         | 24,863 |        
|                                                          | On-Tarmac                     |                                       |         | 56,912  |                 |  |          | 54,425  |         |  |          | 49,152  |         |      |         | 33,198 |         |  |         | 30,596 |         |  |         | 26,580 |        
|                                                          |                               |                                       |         |         |                 |  |          |         |         |  |          |         |         |      |         |        |         | 
|                                                          |                               | Total industrial domestic hub markets |         |         | 507,872         |  |          |         | 488,859 |  |          |         | 459,264 |      |         |        | 372,486 |  |         |        | 357,934 |  |         |        | 337,781 | 
|Other domestic target markets                             |                               |                                       | 104,301 |         |                 |  | 109,560  |         |         |  | 103,051  |         |         |      | 74,150  |        |         |  | 80,170  |        |         |  | 74,159  |       
|Other domestic non-target markets                         |                               |                                       | 33,126  |         |                 |  | 34,004   |         |         |  | 29,588   |         |         |      | 24,643  |        |         |  | 25,351  |        |         |  | 21,611  |       
|International target markets                              |                               |                                       | 30,762  |         |                 |  | 25,641   |         |         |  | 6,101    |         |         |      | 23,942  |        |         |  | 20,694  |        |         |  | 5,697   |       
|Straight-line rents and amortization of lease intangibles |                               |                                       | 19,523  |         |                 |  | 16,281   |         |         |  | 10,662   |         |         |      | 19,523  |        |         |  | 16,281  |        |         |  | 10,662  |       
|Total other markets                                       |                               |                                       | 2,759   |         |                 |  | 6,403    |         |         |  | 12,642   |         |         |      | 1,849   |        |         |  | 3,546   |        |         |  | 7,793   |       
|Discontinued operations                                   |                               |                                       | (66,136 | )       |                 |  | (101,214 | )       |         |  | (117,643 | )       |         |      | (47,594 | )      |         |  | (72,700 | )      |         |  | (86,851 | )     
|                                                          |                               |                                       |         |         |                 |  |          |         |         |  |          |         |         |      |         |        |         | 
|                                                          |                               | Total                                 |         | $       | 632,207         |  |          | $       | 579,534 |  |          | $       | 503,665 |      |         | $      | 468,999 |  |         | $      | 431,276 |  |         | $      | 370,852 | 
|                                                          |                               |                                       |         |         |                 |  |          |         |         |  |          |         |         |      |         |        |         | 






|    |                                                                                                                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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.



F-36



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                    |            |      |          |         |      |   |          |         |  |   |          |         | 
|--------------------------------------------------- | ---------- | ---- | -------- | ------- | ---- | - | -------- | ------- |  | - | -------- | ------- | 
|                                                    |            | 2005 |          |         | 2004 |   |          | 2003    | 
|                                                    |            |      |          |         |      |   |          |         | 
|Property NOI                                        |            | $    | 468,999  |         |      | $ | 431,276  |         |  | $ | 370,852  |        
|Private capital income                              |            |      | 43,942   |         |      |   | 12,895   |         |  |   | 13,337   |        
|Depreciation and amortization                       |            |      | (165,438 | )       |      |   | (141,120 | )       |  |   | (116,067 | )      
|Impairment losses                                   |            |      |         |         |      |   |         |         |  |   | (5,251   | )      
|General and administrative                          |            |      | (77,409  | )       |      |   | (58,843  | )       |  |   | (46,418  | )      
|Fund costs                                          |            |      | (1,482   | )       |      |   | (1,741   | )       |  |   | (825     | )      
|Equity in earnings of unconsolidated joint ventures |            |      | 10,770   |         |      |   | 3,781    |         |  |   | 5,445    |        
|Interest and other income                           |            |      | 6,499    |         |      |   | 3,758    |         |  |   | 3,976    |        
|Gains from dispositions of real estate              |            |      | 19,099   |         |      |   | 5,219    |         |  |   | 7,429    |        
|Development profits, net of taxes                   |            |      | 54,811   |         |      |   | 8,528    |         |  |   | 14,441   |        
|Interest, including amortization                    |            |      | (149,492 | )       |      |   | (144,882 | )       |  |   | (131,878 | )      
|Total minority interests share of income           |            |      | (62,856  | )       |      |   | (43,970  | )       |  |   | (42,556  | )      
|Total discontinued operations                       |            |      | 130,306  |         |      |   | 63,615   |         |  |   | 74,604   |        
|                                                    |            |      |          |         |      |   |          |         | 
|                                                    | Net income |      | $        | 277,749 |      |   | $        | 138,516 |  |   | $        | 147,089 | 
|                                                    |            |      |          |         |      |   |          |         | 



|                                             |                               |                                       |         |         |                   |  |         |         |           | 
|-------------------------------------------- | ----------------------------- | ------------------------------------- | ------- | ------- | ----------------- |  | ------- | ------- | --------- | 
|                                             |                               | Total Assets as of                    |        
|                                             |                               |                                       |        
|                                             |                               | December 31, 2005                     |         |         | December 31, 2004 | 
|                                             |                               |                                       |         |         |                   | 
|Industrial domestic hub and gateway markets: |                               |                                       |         |         |                   |  |         |        
|                                             | Atlanta                       |                                       | $       | 208,751 |                   |  | $       | 204,554 |          
|                                             | Chicago                       |                                       |         | 504,581 |                   |  |         | 479,919 |          
|                                             | Dallas/ Fort Worth            |                                       |         | 137,112 |                   |  |         | 143,953 |          
|                                             | Los Angeles                   |                                       |         | 930,917 |                   |  |         | 922,401 |          
|                                             | Northern New Jersey/ New York |                                       |         | 756,719 |                   |  |         | 775,784 |          
|                                             | San Francisco Bay Area        |                                       |         | 789,129 |                   |  |         | 788,120 |          
|                                             | Miami                         |                                       |         | 372,728 |                   |  |         | 363,694 |          
|                                             | Seattle                       |                                       |         | 371,029 |                   |  |         | 377,142 |          
|                                             | On-Tarmac                     |                                       |         | 245,046 |                   |  |         | 239,377 |          
|                                             |                               |                                       |         |         |                   | 
|                                             |                               | Total industrial domestic hub markets |         |         | 4,316,012         |  |         |         | 4,294,944 | 
|Other domestic target markets                |                               |                                       | 693,287 |         |                   |  | 825,930 |        
|Other non-target markets and other           |                               |                                       | 264,954 |         |                   |  | 308,428 |        
|International target markets                 |                               |                                       | 975,960 |         |                   |  | 684,184 |        
|Total other markets                          |                               |                                       | 10,277  |         |                   |  | 15,915  |        
|Investments in unconsolidated joint ventures |                               |                                       | 118,653 |         |                   |  | 55,166  |        
|Non-segment assets(1)                        |                               |                                       | 423,596 |         |                   |  | 202,376 |        
|                                             |                               |                                       |         |         |                   | 
|                                             |                               | Total assets                          |         | $       | 6,802,739         |  |         | $       | 6,386,943 | 
|                                             |                               |                                       |         |         |                   | 






|    |                                                                                            
|--- | -------------------------------------------------------------------------------------------
|(1) | Non-segment assets consist of corporate assets including cash
    and mortgages receivable.

F-37



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##### Table of Contents



AMB PROPERTY, L.P.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                 
|--- | ----------------
|17. | Subsequent Event





F-38



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##### Table of Contents



AMB PROPERTY CORPORATION


SCHEDULE III


CONSOLIDATED REAL ESTATE AND ACCUMULATED DEPRECIATION


As of December 31, 2005


|                               |  |                                            |    |  |          |  |    |      |  |                         |                 |  |             |      |        |                                  |              |   |        |                |            |   |        |             |  |              |             |  |             |               |        |                 |      |   |             |  |  |         |         |  |  |   |        |  |  |  |      |  |  |  |      | 
|------------------------------ |  | ------------------------------------------ | -- |  | -------- |  | -- | ---- |  | ----------------------- | --------------- |  | ----------- | ---- | ------ | -------------------------------- | ------------ | - | ------ | -------------- | ---------- | - | ------ | ----------- |  | ------------ | ----------- |  | ----------- | ------------- | ------ | --------------- | ---- | - | ----------- |  |  | ------- | ------- |  |  | - | ------ |  |  |  | ---- |  |  |  | ---- | 
|                               |  |                                            |    |  |          |  |    |      |  | Initial Cost to Company |                 |  | Costs       |      |        | Gross Amount Carried at 12/31/05 |              |   |        |                |            |   |       
|                               |  |                                            |    |  |          |  |    |      |  |                         |                 |  | Capitalized |      |        |                                  |              |   |        |                | Year of    |   |        | Depreciable | 
|                               |  | No of                                      |    |  |          |  |    |      |  |                         |                 |  | Building &  |      |        | Subsequent                       |              |   |        |                | Building & |   |        | Total       |  |              | Accumulated |  |             | Construction/ |        |                 | Life |  
|Property                       |  | Bldgs                                      |    |  | Location |  |    | Type |  |                         | Encumbrances(3) |  |             | Land |        |                                  | Improvements |   |        | to Acquisition |            |   | Land   |             |  | Improvements |             |  | Costs(1)(2) |               |        | Depreciation(4) |      |   | Acquisition |  |  | (Years) |        
|                               |  |                                            |    |  |          |  |    |      |  |                         |                 |  |             |      |        |                                  |              |   |        |                |            |   |        |             |  |              |             |  |             |               |        |                 |      |   |             |  |  |         |        
|                               |  | (In thousands, except number of buildings) |   
|Atlanta                        |  |                                            |    |  |          |  |    |      |  |                         |                 |  |             |      |        |                                  |              |   |        |                |            |   |        |             |  |              |             |  |             |               |        |                 |      |   |             |  |  |         |         |  |  |   |        |  |  |  |      |  |  |  |      | 
|Airport Plaza                  |  |                                            | 3  |  |          |  | GA |      |  |                         | IND             |  |             | $    | 4,334  |                                  |              | $ | 1,811  |                |            | $ | 5,093  |             |  | $            | 735         |  |             | $             | 1,811  |                 |      | $ | 5,828       |  |  | $       | 7,639   |  |  | $ | 486    |  |  |  | 2003 |  |  |  | 5-40 | 
|Airport South Business Park    |  |                                            | 8  |  |          |  | GA |      |  |                         | IND             |  |             |      | 16,440 |                                  |              |   | 9,200  |                |            |   | 16,437 |             |  |              | 13,715      |  |             |               | 9,200  |                 |      |   | 30,152      |  |  |         | 39,352  |  |  |   | 4,002  |  |  |  | 2001 |  |  |  | 5-40 | 
|AMB Airlogistics Center        |  |                                            | 3  |  |          |  | GA |      |  |                         | IND             |  |             |      | 17,225 |                                  |              |   | 7,757  |                |            |   | 19,084 |             |  |              | 26          |  |             |               | 7,757  |                 |      |   | 19,110      |  |  |         | 26,867  |  |  |   | 367    |  |  |  | 2005 |  |  |  | 5-40 | 
|Amwiler-Gwinnett Ind. Park     |  |                                            | 6  |  |          |  | GA |      |  |                         | IND             |  |             |      | 5,264  |                                  |              |   | 3,488  |                |            |   | 10,487 |             |  |              | 3,315       |  |             |               | 3,488  |                 |      |   | 13,802      |  |  |         | 17,290  |  |  |   | 4,061  |  |  |  | 1995 |  |  |  | 5-40 | 
|Atlanta South Business Park    |  |                                            | 9  |  |          |  | GA |      |  |                         | IND             |  |             |      |       |                                  |              |   | 8,047  |                |            |   | 24,179 |             |  |              | 2,852       |  |             |               | 8,047  |                 |      |   | 27,031      |  |  |         | 35,078  |  |  |   | 6,702  |  |  |  | 1997 |  |  |  | 5-40 | 
|South Ridge at Hartsfield      |  |                                            | 1  |  |          |  | GA |      |  |                         | IND             |  |             |      | 3,912  |                                  |              |   | 2,096  |                |            |   | 4,008  |             |  |              | 615         |  |             |               | 2,096  |                 |      |   | 4,623       |  |  |         | 6,719   |  |  |   | 523    |  |  |  | 2001 |  |  |  | 5-40 | 
|Southfield/ KRDC Industrial SG |  |                                            | 13 |  |          |  | GA |      |  |                         | IND             |  |             |      | 32,859 |                                  |              |   | 13,578 |                |            |   | 35,730 |             |  |              | 7,368       |  |             |               | 13,578 |                 |      |   | 43,098      |  |  |         | 56,676  |  |  |   | 6,198  |  |  |  | 1997 |  |  |  | 5-40 | 
|Southside Distribution Center  |  |                                            | 1  |  |          |  | GA |      |  |                         | IND             |  |             |      | 1,064  |                                  |              |   | 766    |                |            |   | 2,480  |             |  |              | 105         |  |             |               | 766    |                 |      |   | 2,585       |  |  |         | 3,351   |  |  |   | 312    |  |  |  | 2001 |  |  |  | 5-40 | 
|Sylvan Industrial              |  |                                            | 1  |  |          |  | GA |      |  |                         | IND             |  |             |      |       |                                  |              |   | 1,946  |                |            |   | 5,905  |             |  |              | 631         |  |             |               | 1,946  |                 |      |   | 6,536       |  |  |         | 8,482   |  |  |   | 1,167  |  |  |  | 1999 |  |  |  | 5-40 | 
|Chicago                        |  |                                            |    |  |          |  |    |      |  |                         |                 |  |             |      |        |                                  |              |   |        |                |            |   |        |             |  |              |             |  |             |               |        |                 |      |   |             |  |  |         |         |  |  |   |        |  |  |  |      |  |  |  |      | 
|Addison Business Center        |  |                                            | 1  |  |          |  | IL |      |  |                         | IND             |  |             |      |       |                                  |              |   | 1,060  |                |            |   | 3,228  |             |  |              | 387         |  |             |               | 1,060  |                 |      |   | 3,615       |  |  |         | 4,675   |  |  |   | 613    |  |  |  | 2000 |  |  |  | 5-40 | 
|Alsip Industrial               |  |                                            | 1  |  |          |  | IL |      |  |                         | IND             |  |             |      |       |                                  |              |   | 1,200  |                |            |   | 3,744  |             |  |              | 694         |  |             |               | 1,200  |                 |      |   | 4,438       |  |  |         | 5,638   |  |  |   | 874    |  |  |  | 1998 |  |  |  | 5-40 | 
|AMB District Industrial        |  |                                            | 1  |  |          |  | IL |      |  |                         | IND             |  |             |      |       |                                  |              |   | 703    |                |            |   | 1,339  |             |  |              | 172         |  |             |               | 703    |                 |      |   | 1,511       |  |  |         | 2,214   |  |  |   | 103    |  |  |  | 2004 |  |  |  | 5-40 | 
|AMB Glendale Lakes Dist.       |  |                                            | 2  |  |          |  | IL |      |  |                         | IND             |  |             |      |       |                                  |              |   | 2,801  |                |            |   | 7,646  |             |  |              | 6           |  |             |               | 2,801  |                 |      |   | 7,652       |  |  |         | 10,453  |  |  |   | 20     |  |  |  | 2005 |  |  |  | 5-40 | 
|AMB Golf Distribution          |  |                                            | 1  |  |          |  | IL |      |  |                         | IND             |  |             |      | 14,141 |                                  |              |   | 7,740  |                |            |   | 16,749 |             |  |              | 115         |  |             |               | 7,740  |                 |      |   | 16,864      |  |  |         | 24,604  |  |  |   | 523    |  |  |  | 2005 |  |  |  | 5-40 | 
|AMB High Grove Distribution    |  |                                            | 1  |  |          |  | IL |      |  |                         | IND             |  |             |      | 4,275  |                                  |              |   | 2,158  |                |            |   | 3,792  |             |  |              | 14          |  |             |               | 2,158  |                 |      |   | 3,806       |  |  |         | 5,964   |  |  |   | 69     |  |  |  | 2005 |  |  |  | 5-40 | 
|AMB Nicholas Warehouse         |  |                                            | 1  |  |          |  | IL |      |  |                         | IND             |  |             |      |       |                                  |              |   | 4,681  |                |            |   | 5,810  |             |  |              | 1,826       |  |             |               | 4,681  |                 |      |   | 7,636       |  |  |         | 12,317  |  |  |   | 385    |  |  |  | 2005 |  |  |  | 5-40 | 
|AMB OHare                     |  |                                            | 14 |  |          |  | IL |      |  |                         | IND             |  |             |      | 9,170  |                                  |              |   | 2,924  |                |            |   | 8,995  |             |  |              | 2,593       |  |             |               | 2,924  |                 |      |   | 11,588      |  |  |         | 14,512  |  |  |   | 2,000  |  |  |  | 1999 |  |  |  | 5.40 | 
|AMB Port OHare                |  |                                            | 2  |  |          |  | IL |      |  |                         | IND             |  |             |      | 5,861  |                                  |              |   | 4,913  |                |            |   | 5,761  |             |  |              | 1,182       |  |             |               | 4,913  |                 |      |   | 6,943       |  |  |         | 11,856  |  |  |   | 1,209  |  |  |  | 2001 |  |  |  | 5-40 | 
|AMB Sivert Distribution        |  |                                            | 1  |  |          |  | IL |      |  |                         | IND             |  |             |      |       |                                  |              |   | 857    |                |            |   | 1,377  |             |  |              | 573         |  |             |               | 857    |                 |      |   | 1,950       |  |  |         | 2,807   |  |  |   | 122    |  |  |  | 2004 |  |  |  | 5-40 | 
|AMB Turnberry Distribution     |  |                                            | 5  |  |          |  | IL |      |  |                         | IND             |  |             |      | 61,620 |                                  |              |   | 19,112 |                |            |   | 78,360 |             |  |              | 452         |  |             |               | 19,112 |                 |      |   | 78,812      |  |  |         | 97,924  |  |  |   | 2,860  |  |  |  | 2004 |  |  |  | 5-40 | 
|Belden Avenue SGP              |  |                                            | 3  |  |          |  | IL |      |  |                         | IND             |  |             |      | 9,676  |                                  |              |   | 5,393  |                |            |   | 13,655 |             |  |              | 849         |  |             |               | 5,487  |                 |      |   | 14,410      |  |  |         | 19,897  |  |  |   | 2,706  |  |  |  | 1997 |  |  |  | 5-40 | 
|Bensenville Ind Park           |  |                                            | 13 |  |          |  | IL |      |  |                         | IND             |  |             |      |       |                                  |              |   | 20,799 |                |            |   | 62,438 |             |  |              | 17,427      |  |             |               | 20,799 |                 |      |   | 79,865      |  |  |         | 100,664 |  |  |   | 21,482 |  |  |  | 1997 |  |  |  | 5-40 | 
|Bridgeview Industrial          |  |                                            | 1  |  |          |  | IL |      |  |                         | IND             |  |             |      |       |                                  |              |   | 1,332  |                |            |   | 3,996  |             |  |              | 560         |  |             |               | 1,332  |                 |      |   | 4,556       |  |  |         | 5,888   |  |  |   | 943    |  |  |  | 1997 |  |  |  | 5-40 | 
|Chancellory Warehouse          |  |                                            | 1  |  |          |  | IL |      |  |                         | IND             |  |             |      | 2,486  |                                  |              |   | 1,566  |                |            |   | 2,006  |             |  |              | 839         |  |             |               | 1,566  |                 |      |   | 2,845       |  |  |         | 4,411   |  |  |   | 363    |  |  |  | 2002 |  |  |  | 5-40 | 
|Chicago Industrial Portfolio   |  |                                            | 1  |  |          |  | IL |      |  |                         | IND             |  |             |      |       |                                  |              |   | 762    |                |            |   | 2,285  |             |  |              | 744         |  |             |               | 762    |                 |      |   | 3,029       |  |  |         | 3,791   |  |  |   | 642    |  |  |  | 1997 |  |  |  | 5-40 | 
|Chicago Ridge Freight Terminal |  |                                            | 1  |  |          |  | IL |      |  |                         | IND             |  |             |      |       |                                  |              |   | 3,705  |                |            |   | 3,576  |             |  |              | 141         |  |             |               | 3,705  |                 |      |   | 3,717       |  |  |         | 7,422   |  |  |   | 476    |  |  |  | 2001 |  |  |  | 5-40 | 
|Elk Grove Village SG           |  |                                            | 10 |  |          |  | IL |      |  |                         | IND             |  |             |      | 16,267 |                                  |              |   | 7,059  |                |            |   | 21,739 |             |  |              | 4,771       |  |             |               | 7,059  |                 |      |   | 26,510      |  |  |         | 33,569  |  |  |   | 4,655  |  |  |  | 1997 |  |  |  | 5-40 | 
|Executive Drive                |  |                                            | 1  |  |          |  | IL |      |  |                         | IND             |  |             |      |       |                                  |              |   | 1,399  |                |            |   | 4,236  |             |  |              | 1,331       |  |             |               | 1,399  |                 |      |   | 5,567       |  |  |         | 6,966   |  |  |   | 1,495  |  |  |  | 1997 |  |  |  | 5-40 | 
|Hamilton Parkway               |  |                                            | 1  |  |          |  | IL |      |  |                         | IND             |  |             |      |       |                                  |              |   | 1,554  |                |            |   | 4,408  |             |  |              | 575         |  |             |               | 1,554  |                 |      |   | 4,983       |  |  |         | 6,537   |  |  |   | 1,107  |  |  |  | 1997 |  |  |  | 5-40 | 
|Hintz Building                 |  |                                            | 1  |  |          |  | IL |      |  |                         | IND             |  |             |      |       |                                  |              |   | 420    |                |            |   | 1,259  |             |  |              | 402         |  |             |               | 420    |                 |      |   | 1,661       |  |  |         | 2,081   |  |  |   | 372    |  |  |  | 1998 |  |  |  | 5-40 | 
|Itasca Industrial Portfolio    |  |                                            | 6  |  |          |  | IL |      |  |                         | IND             |  |             |      |       |                                  |              |   | 6,416  |                |            |   | 19,290 |             |  |              | 4,288       |  |             |               | 6,416  |                 |      |   | 23,578      |  |  |         | 29,994  |  |  |   | 6,626  |  |  |  | 1997 |  |  |  | 5-40 | 
|Melrose Park Distribution Ctr. |  |                                            | 1  |  |          |  | IL |      |  |                         | IND             |  |             |      |       |                                  |              |   | 2,936  |                |            |   | 9,190  |             |  |              | 2,147       |  |             |               | 2,936  |                 |      |   | 11,337      |  |  |         | 14,273  |  |  |   | 3,393  |  |  |  | 1997 |  |  |  | 5-40 | 
|NDP  Chicago                  |  |                                            | 3  |  |          |  | IL |      |  |                         | IND             |  |             |      |       |                                  |              |   | 1,496  |                |            |   | 4,487  |             |  |              | 1,098       |  |             |               | 1,496  |                 |      |   | 5,585       |  |  |         | 7,081   |  |  |   | 1,532  |  |  |  | 1998 |  |  |  | 5-40 | 
|OHare Industrial Portfolio    |  |                                            | 12 |  |          |  | IL |      |  |                         | IND             |  |             |      |       |                                  |              |   | 5,497  |                |            |   | 15,955 |             |  |              | 5,259       |  |             |               | 5,497  |                 |      |   | 21,214      |  |  |         | 26,711  |  |  |   | 5,148  |  |  |  | 1997 |  |  |  | 5-40 | 
|Poplar Gateway Truck Terminal  |  |                                            | 1  |  |          |  | IL |      |  |                         | IND             |  |             |      |       |                                  |              |   | 4,551  |                |            |   | 3,152  |             |  |              | 58          |  |             |               | 4,551  |                 |      |   | 3,210       |  |  |         | 7,761   |  |  |   | 238    |  |  |  | 2002 |  |  |  | 5-40 | 
|Stone Distribution Center      |  |                                            | 1  |  |          |  | IL |      |  |                         | IND             |  |             |      | 2,859  |                                  |              |   | 2,242  |                |            |   | 3,266  |             |  |              | 867         |  |             |               | 2,242  |                 |      |   | 4,133       |  |  |         | 6,375   |  |  |   | 281    |  |  |  | 2003 |  |  |  | 5-40 | 

S-1



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##### Table of Contents





AMB PROPERTY CORPORATION




SCHEDULE III


CONSOLIDATED REAL ESTATE AND ACCUMULATED DEPRECIATION


As of December 31, 2005


|                               |  |                                            |    |  |          |  |    |      |  |                         |                 |  |             |      |        |                                  |              |  |        |                |            |  |        |             |  |              |             |  |             |               |        |                 |      |  |             |  |  |         |         |  |  |  |        |  |  |  |      |  |  |  |      | 
|------------------------------ |  | ------------------------------------------ | -- |  | -------- |  | -- | ---- |  | ----------------------- | --------------- |  | ----------- | ---- | ------ | -------------------------------- | ------------ |  | ------ | -------------- | ---------- |  | ------ | ----------- |  | ------------ | ----------- |  | ----------- | ------------- | ------ | --------------- | ---- |  | ----------- |  |  | ------- | ------- |  |  |  | ------ |  |  |  | ---- |  |  |  | ---- | 
|                               |  |                                            |    |  |          |  |    |      |  | Initial Cost to Company |                 |  | Costs       |      |        | Gross Amount Carried at 12/31/05 |              |  |        |                |            |  |       
|                               |  |                                            |    |  |          |  |    |      |  |                         |                 |  | Capitalized |      |        |                                  |              |  |        |                | Year of    |  |        | Depreciable | 
|                               |  | No of                                      |    |  |          |  |    |      |  |                         |                 |  | Building &  |      |        | Subsequent                       |              |  |        |                | Building & |  |        | Total       |  |              | Accumulated |  |             | Construction/ |        |                 | Life | 
|Property                       |  | Bldgs                                      |    |  | Location |  |    | Type |  |                         | Encumbrances(3) |  |             | Land |        |                                  | Improvements |  |        | to Acquisition |            |  | Land   |             |  | Improvements |             |  | Costs(1)(2) |               |        | Depreciation(4) |      |  | Acquisition |  |  | (Years) |        
|                               |  |                                            |    |  |          |  |    |      |  |                         |                 |  |             |      |        |                                  |              |  |        |                |            |  |        |             |  |              |             |  |             |               |        |                 |      |  |             |  |  |         |        
|                               |  | (In thousands, except number of buildings) |   
|Thorndale Distribution         |  |                                            | 1  |  |          |  | IL |      |  |                         | IND             |  |             |      | 5,355  |                                  |              |  | 4,130  |                |            |  | 4,215  |             |  |              | 426         |  |             |               | 4,130  |                 |      |  | 4,641       |  |  |         | 8,771   |  |  |  | 542    |  |  |  | 2002 |  |  |  | 5-40 | 
|Touhy Cargo Terminal           |  |                                            | 1  |  |          |  | IL |      |  |                         | IND             |  |             |      | 5,183  |                                  |              |  | 2,800  |                |            |  | 110    |             |  |              | 4,572       |  |             |               | 2,800  |                 |      |  | 4,682       |  |  |         | 7,482   |  |  |  | 308    |  |  |  | 2002 |  |  |  | 5-40 | 
|Windsor Court                  |  |                                            | 1  |  |          |  | IL |      |  |                         | IND             |  |             |      |       |                                  |              |  | 766    |                |            |  | 2,338  |             |  |              | 165         |  |             |               | 766    |                 |      |  | 2,503       |  |  |         | 3,269   |  |  |  | 539    |  |  |  | 1997 |  |  |  | 5-40 | 
|Wood Dale Industrial SG        |  |                                            | 5  |  |          |  | IL |      |  |                         | IND             |  |             |      | 8,411  |                                  |              |  | 2,868  |                |            |  | 9,166  |             |  |              | 1,238       |  |             |               | 2,868  |                 |      |  | 10,404      |  |  |         | 13,272  |  |  |  | 1,527  |  |  |  | 1999 |  |  |  | 5-40 | 
|Yohan Industrial               |  |                                            | 3  |  |          |  | IL |      |  |                         | IND             |  |             |      | 4,476  |                                  |              |  | 5,904  |                |            |  | 7,323  |             |  |              | 1,416       |  |             |               | 5,904  |                 |      |  | 8,739       |  |  |         | 14,643  |  |  |  | 904    |  |  |  | 2003 |  |  |  | 5-40 | 
|Dallas/ Ft. Worth              |  |                                            |    |  |          |  |    |      |  |                         |                 |  |             |      |        |                                  |              |  |        |                |            |  |        |             |  |              |             |  |             |               |        |                 |      |  |             |  |  |         |         |  |  |  |        |  |  |  |      |  |  |  |      | 
|Addison Technology Center      |  |                                            | 1  |  |          |  | TX |      |  |                         | IND             |  |             |      |       |                                  |              |  | 899    |                |            |  | 2,695  |             |  |              | 1,267       |  |             |               | 899    |                 |      |  | 3,962       |  |  |         | 4,861   |  |  |  | 1,044  |  |  |  | 1998 |  |  |  | 5-40 | 
|Dallas Industrial              |  |                                            | 12 |  |          |  | TX |      |  |                         | IND             |  |             |      |       |                                  |              |  | 5,938  |                |            |  | 17,836 |             |  |              | 5,758       |  |             |               | 5,938  |                 |      |  | 23,594      |  |  |         | 29,532  |  |  |  | 6,798  |  |  |  | 1997 |  |  |  | 5-40 | 
|Greater Dallas Industrial Port |  |                                            | 4  |  |          |  | TX |      |  |                         | IND             |  |             |      |       |                                  |              |  | 4,295  |                |            |  | 14,286 |             |  |              | 3,130       |  |             |               | 4,295  |                 |      |  | 17,416      |  |  |         | 21,711  |  |  |  | 4,868  |  |  |  | 1997 |  |  |  | 5-40 | 
|Lincoln Industrial Center      |  |                                            | 1  |  |          |  | TX |      |  |                         | IND             |  |             |      |       |                                  |              |  | 671    |                |            |  | 2,052  |             |  |              | 321         |  |             |               | 671    |                 |      |  | 2,373       |  |  |         | 3,044   |  |  |  | 644    |  |  |  | 1997 |  |  |  | 5-40 | 
|Lonestar Portfolio             |  |                                            | 6  |  |          |  | TX |      |  |                         | IND             |  |             |      | 15,414 |                                  |              |  | 6,009  |                |            |  | 19,773 |             |  |              | 4,277       |  |             |               | 6,451  |                 |      |  | 23,608      |  |  |         | 30,059  |  |  |  | 2,903  |  |  |  | 1997 |  |  |  | 5-40 | 
|Northfield Dist. Center        |  |                                            | 6  |  |          |  | TX |      |  |                         | IND             |  |             |      | 21,867 |                                  |              |  | 7,728  |                |            |  | 24,492 |             |  |              | 1,468       |  |             |               | 7,729  |                 |      |  | 25,959      |  |  |         | 33,688  |  |  |  | 2,400  |  |  |  | 2002 |  |  |  | 5-40 | 
|Richardson Tech Center SGP     |  |                                            | 2  |  |          |  | TX |      |  |                         | IND             |  |             |      | 4,913  |                                  |              |  | 1,522  |                |            |  | 5,887  |             |  |              | 2,419       |  |             |               | 1,522  |                 |      |  | 8,306       |  |  |         | 9,828   |  |  |  | 836    |  |  |  | 1997 |  |  |  | 5-40 | 
|Valwood Industrial             |  |                                            | 2  |  |          |  | TX |      |  |                         | IND             |  |             |      |       |                                  |              |  | 1,983  |                |            |  | 5,989  |             |  |              | 2,341       |  |             |               | 1,983  |                 |      |  | 8,330       |  |  |         | 10,313  |  |  |  | 2,390  |  |  |  | 1997 |  |  |  | 5-40 | 
|West North Carrier Parkway     |  |                                            | 1  |  |          |  | TX |      |  |                         | IND             |  |             |      |       |                                  |              |  | 1,375  |                |            |  | 4,165  |             |  |              | 1,274       |  |             |               | 1,375  |                 |      |  | 5,439       |  |  |         | 6,814   |  |  |  | 1,393  |  |  |  | 1997 |  |  |  | 5-40 | 
|Los Angeles                    |  |                                            |    |  |          |  |    |      |  |                         |                 |  |             |      |        |                                  |              |  |        |                |            |  |        |             |  |              |             |  |             |               |        |                 |      |  |             |  |  |         |         |  |  |  |        |  |  |  |      |  |  |  |      | 
|AMB Forest Distribution Center |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 2,990  |                |            |  | 3,486  |             |  |              | 306         |  |             |               | 2,990  |                 |      |  | 3,792       |  |  |         | 6,782   |  |  |  | 53     |  |  |  | 2005 |  |  |  | 5-40 | 
|AMB Line Haul Distribution Ctr |  |                                            | 2  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 3,474  |                |            |  | 4,913  |             |  |              |            |  |             |               | 3,474  |                 |      |  | 4,913       |  |  |         | 8,387   |  |  |  |       |  |  |  | 2005 |  |  |  | 5-40 | 
|AMB Starboard Distribution Ctr |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 19,683 |                |            |  | 17,386 |             |  |              | 756         |  |             |               | 19,683 |                 |      |  | 18,142      |  |  |         | 37,825  |  |  |  | 420    |  |  |  | 2005 |  |  |  | 5-40 | 
|AMB Triton Distribution Center |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 6,856  |                |            |  | 7,135  |             |  |              | 65          |  |             |               | 6,856  |                 |      |  | 7,200       |  |  |         | 14,056  |  |  |  | 35     |  |  |  | 2005 |  |  |  | 5-40 | 
|Anaheim Industrial Property    |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 1,457  |                |            |  | 4,340  |             |  |              | 857         |  |             |               | 1,457  |                 |      |  | 5,197       |  |  |         | 6,654   |  |  |  | 1,262  |  |  |  | 1997 |  |  |  | 5-40 | 
|Artesia Industrial             |  |                                            | 24 |  |          |  | CA |      |  |                         | IND             |  |             |      | 44,947 |                                  |              |  | 22,238 |                |            |  | 66,692 |             |  |              | 12,133      |  |             |               | 22,238 |                 |      |  | 78,825      |  |  |         | 101,063 |  |  |  | 19,570 |  |  |  | 1997 |  |  |  | 5-40 | 
|Aviation Logistics Center A-L  |  |                                            | 8  |  |          |  | CA |      |  |                         | IND             |  |             |      | 31,950 |                                  |              |  | 22,141 |                |            |  | 19,178 |             |  |              | 2,965       |  |             |               | 22,141 |                 |      |  | 22,143      |  |  |         | 44,284  |  |  |  | 1,527  |  |  |  | 2003 |  |  |  | 5-40 | 
|Bell Ranch Distribution        |  |                                            | 5  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 6,904  |                |            |  | 12,915 |             |  |              | 1,039       |  |             |               | 6,904  |                 |      |  | 13,954      |  |  |         | 20,858  |  |  |  | 1,794  |  |  |  | 2001 |  |  |  | 5-40 | 
|Cabrillo Distribution Center   |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      | 12,122 |                                  |              |  | 7,563  |                |            |  | 11,178 |             |  |              | 35          |  |             |               | 7,563  |                 |      |  | 11,213      |  |  |         | 18,776  |  |  |  | 848    |  |  |  | 2002 |  |  |  | 5-40 | 
|Carson Industrial              |  |                                            | 12 |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 4,231  |                |            |  | 10,419 |             |  |              | 5,270       |  |             |               | 4,231  |                 |      |  | 15,689      |  |  |         | 19,920  |  |  |  | 3,061  |  |  |  | 1999 |  |  |  | 5-40 | 
|Carson Town Center             |  |                                            | 2  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 6,565  |                |            |  | 3,210  |             |  |              | 14,944      |  |             |               | 6,565  |                 |      |  | 18,154      |  |  |         | 24,719  |  |  |  | 2,282  |  |  |  | 2000 |  |  |  | 5-40 | 
|Chartwell Distribution Center  |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 2,711  |                |            |  | 8,192  |             |  |              | 979         |  |             |               | 2,711  |                 |      |  | 9,171       |  |  |         | 11,882  |  |  |  | 1,272  |  |  |  | 2000 |  |  |  | 5-40 | 
|Del Amo Industrial Center      |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 2,529  |                |            |  | 7,651  |             |  |              | 74          |  |             |               | 2,529  |                 |      |  | 7,725       |  |  |         | 10,254  |  |  |  | 1,012  |  |  |  | 2000 |  |  |  | 5-40 | 
|Eaves Distribution Center      |  |                                            | 3  |  |          |  | CA |      |  |                         | IND             |  |             |      | 14,620 |                                  |              |  | 11,893 |                |            |  | 12,708 |             |  |              | 2,651       |  |             |               | 11,893 |                 |      |  | 15,359      |  |  |         | 27,252  |  |  |  | 2,480  |  |  |  | 2001 |  |  |  | 5-40 | 
|Ford Distribution Cntr         |  |                                            | 7  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 24,557 |                |            |  | 22,045 |             |  |              | 3,986       |  |             |               | 24,557 |                 |      |  | 26,031      |  |  |         | 50,588  |  |  |  | 3,618  |  |  |  | 2001 |  |  |  | 5-40 | 
|Fordyce Distribution Center    |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      | 7,208  |                                  |              |  | 4,340  |                |            |  | 8,335  |             |  |              | 4,608       |  |             |               | 5,835  |                 |      |  | 11,448      |  |  |         | 17,283  |  |  |  | 959    |  |  |  | 2001 |  |  |  | 5-40 | 
|Harris Bus Ctr Alliance II     |  |                                            | 9  |  |          |  | CA |      |  |                         | IND             |  |             |      | 31,770 |                                  |              |  | 20,772 |                |            |  | 31,050 |             |  |              | 3,599       |  |             |               | 20,863 |                 |      |  | 34,558      |  |  |         | 55,421  |  |  |  | 5,679  |  |  |  | 2000 |  |  |  | 5-40 | 
|Hawthorne LAX Cargo AMBPTNII   |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      | 8,114  |                                  |              |  | 2,775  |                |            |  | 8,377  |             |  |              | 514         |  |             |               | 2,775  |                 |      |  | 8,891       |  |  |         | 11,666  |  |  |  | 1,169  |  |  |  | 2000 |  |  |  | 5-40 | 
|International Multifoods       |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 1,613  |                |            |  | 4,879  |             |  |              | 1,602       |  |             |               | 1,613  |                 |      |  | 6,481       |  |  |         | 8,094   |  |  |  | 1,600  |  |  |  | 1997 |  |  |  | 5-40 | 
|LA Co Industrial Port SGP      |  |                                            | 6  |  |          |  | CA |      |  |                         | IND             |  |             |      | 22,029 |                                  |              |  | 9,430  |                |            |  | 29,242 |             |  |              | 4,503       |  |             |               | 9,432  |                 |      |  | 33,743      |  |  |         | 43,175  |  |  |  | 4,500  |  |  |  | 1997 |  |  |  | 5-40 | 
|LAX Gateway                    |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      | 16,124 |                                  |              |  |       |                |            |  | 26,774 |             |  |              | 310         |  |             |               |       |                 |      |  | 27,084      |  |  |         | 27,084  |  |  |  | 1,949  |  |  |  | 2004 |  |  |  | 5-40 | 
|LAX Logistics Center 1         |  |                                            | 2  |  |          |  | CA |      |  |                         | IND             |  |             |      | 31,236 |                                  |              |  | 29,622 |                |            |  | 25,913 |             |  |              | 1,588       |  |             |               | 29,622 |                 |      |  | 27,501      |  |  |         | 57,123  |  |  |  | 1,903  |  |  |  | 2003 |  |  |  | 5-40 | 

S-2



---



##### Table of Contents





AMB PROPERTY CORPORATION




SCHEDULE III


CONSOLIDATED REAL ESTATE AND ACCUMULATED DEPRECIATION


As of December 31, 2005


|                               |  |                                            |    |  |          |  |    |      |  |                         |                 |  |             |      |        |                                  |              |  |        |                |            |  |        |             |  |              |             |  |             |               |        |                 |      |  |             |  |  |         |         |  |  |  |        |  |  |  |      |  |  |  |      | 
|------------------------------ |  | ------------------------------------------ | -- |  | -------- |  | -- | ---- |  | ----------------------- | --------------- |  | ----------- | ---- | ------ | -------------------------------- | ------------ |  | ------ | -------------- | ---------- |  | ------ | ----------- |  | ------------ | ----------- |  | ----------- | ------------- | ------ | --------------- | ---- |  | ----------- |  |  | ------- | ------- |  |  |  | ------ |  |  |  | ---- |  |  |  | ---- | 
|                               |  |                                            |    |  |          |  |    |      |  | Initial Cost to Company |                 |  | Costs       |      |        | Gross Amount Carried at 12/31/05 |              |  |        |                |            |  |       
|                               |  |                                            |    |  |          |  |    |      |  |                         |                 |  | Capitalized |      |        |                                  |              |  |        |                | Year of    |  |        | Depreciable | 
|                               |  | No of                                      |    |  |          |  |    |      |  |                         |                 |  | Building &  |      |        | Subsequent                       |              |  |        |                | Building & |  |        | Total       |  |              | Accumulated |  |             | Construction/ |        |                 | Life | 
|Property                       |  | Bldgs                                      |    |  | Location |  |    | Type |  |                         | Encumbrances(3) |  |             | Land |        |                                  | Improvements |  |        | to Acquisition |            |  | Land   |             |  | Improvements |             |  | Costs(1)(2) |               |        | Depreciation(4) |      |  | Acquisition |  |  | (Years) |        
|                               |  |                                            |    |  |          |  |    |      |  |                         |                 |  |             |      |        |                                  |              |  |        |                |            |  |        |             |  |              |             |  |             |               |        |                 |      |  |             |  |  |         |        
|                               |  | (In thousands, except number of buildings) |   
|Los Nietos Business Center SG  |  |                                            | 4  |  |          |  | CA |      |  |                         | IND             |  |             |      | 7,672  |                                  |              |  | 2,488  |                |            |  | 7,751  |             |  |              | 973         |  |             |               | 2,488  |                 |      |  | 8,724       |  |  |         | 11,212  |  |  |  | 1,273  |  |  |  | 1999 |  |  |  | 5-40 | 
|NDP  Los Angeles              |  |                                            | 6  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 5,948  |                |            |  | 17,844 |             |  |              | 3,493       |  |             |               | 5,948  |                 |      |  | 21,337      |  |  |         | 27,285  |  |  |  | 4,736  |  |  |  | 1998 |  |  |  | 5-40 | 
|Normandie Industrial           |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 2,398  |                |            |  | 7,490  |             |  |              | 1,756       |  |             |               | 2,398  |                 |      |  | 9,246       |  |  |         | 11,644  |  |  |  | 1,807  |  |  |  | 2000 |  |  |  | 5-40 | 
|Northpointe Commerce           |  |                                            | 2  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 1,773  |                |            |  | 5,358  |             |  |              | 653         |  |             |               | 1,773  |                 |      |  | 6,011       |  |  |         | 7,784   |  |  |  | 1,441  |  |  |  | 1997 |  |  |  | 5-40 | 
|Park One at LAX, LLC           |  |                                            |   |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 75,000 |                |            |  | 431    |             |  |              | 386         |  |             |               | 75,000 |                 |      |  | 817         |  |  |         | 75,817  |  |  |  | 44     |  |  |  | 2002 |  |  |  | 5-40 | 
|Pioneer-Alburtis               |  |                                            | 5  |  |          |  | CA |      |  |                         | IND             |  |             |      | 7,978  |                                  |              |  | 2,422  |                |            |  | 7,166  |             |  |              | 1,154       |  |             |               | 2,422  |                 |      |  | 8,320       |  |  |         | 10,742  |  |  |  | 1,301  |  |  |  | 1999 |  |  |  | 5-40 | 
|Slauson Dist. Ctr. AMBPTNII    |  |                                            | 8  |  |          |  | CA |      |  |                         | IND             |  |             |      | 25,238 |                                  |              |  | 7,806  |                |            |  | 23,552 |             |  |              | 5,610       |  |             |               | 7,806  |                 |      |  | 29,162      |  |  |         | 36,968  |  |  |  | 4,195  |  |  |  | 2000 |  |  |  | 5-40 | 
|Sunset Dist. Center            |  |                                            | 3  |  |          |  | CA |      |  |                         | IND             |  |             |      | 11,607 |                                  |              |  | 13,360 |                |            |  | 2,764  |             |  |              | 9,970       |  |             |               | 13,360 |                 |      |  | 12,734      |  |  |         | 26,094  |  |  |  | 857    |  |  |  | 2002 |  |  |  | 5-40 | 
|Systematics                    |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 911    |                |            |  | 2,773  |             |  |              | 638         |  |             |               | 911    |                 |      |  | 3,411       |  |  |         | 4,322   |  |  |  | 983    |  |  |  | 1997 |  |  |  | 5-40 | 
|Torrance Commerce Center       |  |                                            | 6  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 2,045  |                |            |  | 6,136  |             |  |              | 1,276       |  |             |               | 2,045  |                 |      |  | 7,412       |  |  |         | 9,457   |  |  |  | 1,946  |  |  |  | 1998 |  |  |  | 5-40 | 
|Van Nuys Airport Industrial    |  |                                            | 4  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 9,393  |                |            |  | 8,641  |             |  |              | 15,215      |  |             |               | 9,393  |                 |      |  | 23,856      |  |  |         | 33,249  |  |  |  | 4,518  |  |  |  | 2000 |  |  |  | 5-40 | 
|Walnut Drive                   |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 964    |                |            |  | 2,918  |             |  |              | 763         |  |             |               | 964    |                 |      |  | 3,681       |  |  |         | 4,645   |  |  |  | 908    |  |  |  | 1997 |  |  |  | 5-40 | 
|Watson Industrial Center AFdII |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      | 4,362  |                                  |              |  | 1,713  |                |            |  | 5,320  |             |  |              | 1,325       |  |             |               | 1,713  |                 |      |  | 6,645       |  |  |         | 8,358   |  |  |  | 951    |  |  |  | 2001 |  |  |  | 5-40 | 
|Wilmington Avenue Warehouse    |  |                                            | 2  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 3,849  |                |            |  | 11,605 |             |  |              | 3,668       |  |             |               | 3,849  |                 |      |  | 15,273      |  |  |         | 19,122  |  |  |  | 3,633  |  |  |  | 1999 |  |  |  | 5-40 | 
|Miami                          |  |                                            |    |  |          |  |    |      |  |                         |                 |  |             |      |        |                                  |              |  |        |                |            |  |        |             |  |              |             |  |             |               |        |                 |      |  |             |  |  |         |         |  |  |  |        |  |  |  |      |  |  |  |      | 
|Beacon Centre                  |  |                                            | 18 |  |          |  | FL |      |  |                         | IND             |  |             |      | 65,798 |                                  |              |  | 31,704 |                |            |  | 96,681 |             |  |              | 21,024      |  |             |               | 31,704 |                 |      |  | 117,705     |  |  |         | 149,409 |  |  |  | 20,619 |  |  |  | 2000 |  |  |  | 5-40 | 
|Beacon Industrial Park         |  |                                            | 8  |  |          |  | FL |      |  |                         | IND             |  |             |      |       |                                  |              |  | 10,105 |                |            |  | 31,437 |             |  |              | 6,340       |  |             |               | 10,105 |                 |      |  | 37,777      |  |  |         | 47,882  |  |  |  | 8,639  |  |  |  | 1997 |  |  |  | 5-40 | 
|Beacon Lakes 109               |  |                                            | 1  |  |          |  | FL |      |  |                         | IND             |  |             |      | 18,450 |                                  |              |  | 1,689  |                |            |  | 8,133  |             |  |              | 923         |  |             |               | 1,689  |                 |      |  | 9,056       |  |  |         | 10,745  |  |  |  | 401    |  |  |  | 2005 |  |  |  | 5-40 | 
|Blue Lagoon Business Park      |  |                                            | 2  |  |          |  | FL |      |  |                         | IND             |  |             |      |       |                                  |              |  | 4,945  |                |            |  | 14,875 |             |  |              | 1,533       |  |             |               | 4,945  |                 |      |  | 16,408      |  |  |         | 21,353  |  |  |  | 3,889  |  |  |  | 1997 |  |  |  | 5-40 | 
|Cobia Distribution Center      |  |                                            | 2  |  |          |  | FL |      |  |                         | IND             |  |             |      |       |                                  |              |  | 1,792  |                |            |  | 5,950  |             |  |              | 1,532       |  |             |               | 1,792  |                 |      |  | 7,482       |  |  |         | 9,274   |  |  |  | 191    |  |  |  | 2004 |  |  |  | 5-40 | 
|Dolphin Distribution Center    |  |                                            | 1  |  |          |  | FL |      |  |                         | IND             |  |             |      | 2,385  |                                  |              |  | 1,581  |                |            |  | 3,602  |             |  |              | 154         |  |             |               | 1,581  |                 |      |  | 3,756       |  |  |         | 5,337   |  |  |  | 96     |  |  |  | 2003 |  |  |  | 5-40 | 
|AMB MIA Logistics Ctr 6905     |  |                                            | 1  |  |          |  | FL |      |  |                         | IND             |  |             |      |       |                                  |              |  | 2,793  |                |            |  | 6,912  |             |  |              | 142         |  |             |               | 2,793  |                 |      |  | 7,054       |  |  |         | 9,847   |  |  |  | 148    |  |  |  | 2005 |  |  |  | 5-40 | 
|AMB Seaboard Industrial Park   |  |                                            | 3  |  |          |  | FL |      |  |                         | IND             |  |             |      |       |                                  |              |  | 700    |                |            |  | 2,413  |             |  |              | 87          |  |             |               | 700    |                 |      |  | 2,500       |  |  |         | 3,200   |  |  |  | 4      |  |  |  | 2005 |  |  |  | 5-40 | 
|Gratigny Distribution Center   |  |                                            | 1  |  |          |  | FL |      |  |                         | IND             |  |             |      | 3,800  |                                  |              |  | 1,551  |                |            |  | 2,380  |             |  |              | 897         |  |             |               | 1,551  |                 |      |  | 3,277       |  |  |         | 4,828   |  |  |  | 339    |  |  |  | 2003 |  |  |  | 5-40 | 
|Marlin Distribution Center     |  |                                            | 1  |  |          |  | FL |      |  |                         | IND             |  |             |      |       |                                  |              |  | 1,076  |                |            |  | 2,169  |             |  |              | 619         |  |             |               | 1,076  |                 |      |  | 2,788       |  |  |         | 3,864   |  |  |  | 286    |  |  |  | 2003 |  |  |  | 5-40 | 
|Miami Airport Business Center  |  |                                            | 6  |  |          |  | FL |      |  |                         | IND             |  |             |      |       |                                  |              |  | 6,400  |                |            |  | 19,634 |             |  |              | 2,946       |  |             |               | 6,400  |                 |      |  | 22,580      |  |  |         | 28,980  |  |  |  | 4,235  |  |  |  | 1999 |  |  |  | 5-40 | 
|Panther Distribution Center    |  |                                            | 1  |  |          |  | FL |      |  |                         | IND             |  |             |      | 3,900  |                                  |              |  | 1,840  |                |            |  | 3,252  |             |  |              | 1,024       |  |             |               | 1,840  |                 |      |  | 4,276       |  |  |         | 6,116   |  |  |  | 228    |  |  |  | 2003 |  |  |  | 5-40 | 
|Sunrise Industrial             |  |                                            | 3  |  |          |  | FL |      |  |                         | IND             |  |             |      | 7,415  |                                  |              |  | 4,573  |                |            |  | 17,088 |             |  |              | 506         |  |             |               | 4,573  |                 |      |  | 17,594      |  |  |         | 22,167  |  |  |  | 2,669  |  |  |  | 1998 |  |  |  | 5-40 | 
|Tarpon Distribution Center     |  |                                            | 1  |  |          |  | FL |      |  |                         | IND             |  |             |      | 2,544  |                                  |              |  | 884    |                |            |  | 3,914  |             |  |              | 215         |  |             |               | 884    |                 |      |  | 4,129       |  |  |         | 5,013   |  |  |  | 302    |  |  |  | 2004 |  |  |  | 5-40 | 
|No. New Jersey/ New York City  |  |                                            |    |  |          |  |    |      |  |                         |                 |  |             |      |        |                                  |              |  |        |                |            |  |        |             |  |              |             |  |             |               |        |                 |      |  |             |  |  |         |         |  |  |  |        |  |  |  |      |  |  |  |      | 
|AMB JFK Airgate Center         |  |                                            | 4  |  |          |  | NY |      |  |                         | IND             |  |             |      | 13,055 |                                  |              |  | 5,980  |                |            |  | 26,393 |             |  |              | 1,808       |  |             |               | 5,980  |                 |      |  | 28,201      |  |  |         | 34,181  |  |  |  | 866    |  |  |  | 2005 |  |  |  | 5-40 | 
|AMB Meadowlands Park           |  |                                            | 8  |  |          |  | NJ |      |  |                         | IND             |  |             |      |       |                                  |              |  | 5,449  |                |            |  | 14,458 |             |  |              | 4,225       |  |             |               | 5,449  |                 |      |  | 18,683      |  |  |         | 24,132  |  |  |  | 3,466  |  |  |  | 2000 |  |  |  | 5-40 | 
|AMB Pointview Dist. Ctr.       |  |                                            | 1  |  |          |  | NJ |      |  |                         | IND             |  |             |      | 12,547 |                                  |              |  | 4,693  |                |            |  | 12,354 |             |  |              | 473         |  |             |               | 4,693  |                 |      |  | 12,827      |  |  |         | 17,520  |  |  |  | 143    |  |  |  | 2005 |  |  |  | 5-40 | 
|AMB Tri-Port Distribution Ctr  |  |                                            | 1  |  |          |  | NJ |      |  |                         | IND             |  |             |      |       |                                  |              |  | 25,672 |                |            |  | 19,853 |             |  |              | 226         |  |             |               | 25,672 |                 |      |  | 20,079      |  |  |         | 45,751  |  |  |  | 866    |  |  |  | 2004 |  |  |  | 5-40 | 
|Dellamor                       |  |                                            | 8  |  |          |  | NJ |      |  |                         | IND             |  |             |      | 13,928 |                                  |              |  | 12,061 |                |            |  | 11,577 |             |  |              | 2,059       |  |             |               | 12,061 |                 |      |  | 13,636      |  |  |         | 25,697  |  |  |  | 1,467  |  |  |  | 2002 |  |  |  | 5-40 | 
|Docks Corner SG (Phase II)     |  |                                            | 1  |  |          |  | NJ |      |  |                         | IND             |  |             |      | 34,465 |                                  |              |  | 13,672 |                |            |  | 22,516 |             |  |              | 20,360      |  |             |               | 13,672 |                 |      |  | 42,876      |  |  |         | 56,548  |  |  |  | 6,355  |  |  |  | 1997 |  |  |  | 5-40 | 
|Fairfalls Portfolio            |  |                                            | 28 |  |          |  | NJ |      |  |                         | IND             |  |             |      | 33,836 |                                  |              |  | 20,381 |                |            |  | 45,038 |             |  |              | 2,497       |  |             |               | 20,381 |                 |      |  | 47,535      |  |  |         | 67,916  |  |  |  | 2,983  |  |  |  | 2004 |  |  |  | 5-40 | 
|Fairmeadows Portfolio (19-21)  |  |                                            | 3  |  |          |  | NJ |      |  |                         | IND             |  |             |      | 6,976  |                                  |              |  | 4,317  |                |            |  | 8,836  |             |  |              | 76          |  |             |               | 4,317  |                 |      |  | 8,912       |  |  |         | 13,229  |  |  |  | 473    |  |  |  | 2004 |  |  |  | 5-40 | 

S-3



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##### Table of Contents





AMB PROPERTY CORPORATION




SCHEDULE III


CONSOLIDATED REAL ESTATE AND ACCUMULATED DEPRECIATION


As of December 31, 2005


|                                       |  |                                            |    |  |          |  |    |      |  |                         |                 |  |             |      |         |                                  |              |  |        |                |            |  |        |             |  |              |             |  |             |               |        |                 |      |  |             |  |  |         |         |  |  |  |       |   |  |  |      |  |  |  |      | 
|-------------------------------------- |  | ------------------------------------------ | -- |  | -------- |  | -- | ---- |  | ----------------------- | --------------- |  | ----------- | ---- | ------- | -------------------------------- | ------------ |  | ------ | -------------- | ---------- |  | ------ | ----------- |  | ------------ | ----------- |  | ----------- | ------------- | ------ | --------------- | ---- |  | ----------- |  |  | ------- | ------- |  |  |  | ----- | - |  |  | ---- |  |  |  | ---- | 
|                                       |  |                                            |    |  |          |  |    |      |  | Initial Cost to Company |                 |  | Costs       |      |         | Gross Amount Carried at 12/31/05 |              |  |        |                |            |  |       
|                                       |  |                                            |    |  |          |  |    |      |  |                         |                 |  | Capitalized |      |         |                                  |              |  |        |                | Year of    |  |        | Depreciable | 
|                                       |  | No of                                      |    |  |          |  |    |      |  |                         |                 |  | Building &  |      |         | Subsequent                       |              |  |        |                | Building & |  |        | Total       |  |              | Accumulated |  |             | Construction/ |        |                 | Life | 
|Property                               |  | Bldgs                                      |    |  | Location |  |    | Type |  |                         | Encumbrances(3) |  |             | Land |         |                                  | Improvements |  |        | to Acquisition |            |  | Land   |             |  | Improvements |             |  | Costs(1)(2) |               |        | Depreciation(4) |      |  | Acquisition |  |  | (Years) |        
|                                       |  |                                            |    |  |          |  |    |      |  |                         |                 |  |             |      |         |                                  |              |  |        |                |            |  |        |             |  |              |             |  |             |               |        |                 |      |  |             |  |  |         |        
|                                       |  | (In thousands, except number of buildings) |   
|Fairmeadows Portfolio 1-18, except 14) |  |                                            | 17 |  |          |  | NJ |      |  |                         | IND             |  |             |      | 23,831  |                                  |              |  | 18,615 |                |            |  | 27,901 |             |  |              | 3,968       |  |             |               | 18,615 |                 |      |  | 31,869      |  |  |         | 50,484  |  |  |  | 2,317 |   |  |  | 2003 |  |  |  | 5-40 | 
|Jamesburg Road Corporate Park          |  |                                            | 3  |  |          |  | NJ |      |  |                         | IND             |  |             |      | 21,146  |                                  |              |  | 11,700 |                |            |  | 35,102 |             |  |              | 6,030       |  |             |               | 11,700 |                 |      |  | 41,132      |  |  |         | 52,832  |  |  |  | 8,945 |   |  |  | 1998 |  |  |  | 5-40 | 
|JFK Air Cargo                          |  |                                            | 15 |  |          |  | NY |      |  |                         | IND             |  |             |      |        |                                  |              |  | 16,944 |                |            |  | 45,694 |             |  |              | 6,331       |  |             |               | 16,944 |                 |      |  | 52,025      |  |  |         | 68,969  |  |  |  | 9,710 |   |  |  | 2000 |  |  |  | 5-40 | 
|JFK Airport Park                       |  |                                            | 1  |  |          |  | NY |      |  |                         | IND             |  |             |      |        |                                  |              |  | 2,350  |                |            |  | 7,250  |             |  |              | 1,039       |  |             |               | 2,349  |                 |      |  | 8,290       |  |  |         | 10,639  |  |  |  | 1,477 |   |  |  | 2000 |  |  |  | 5-40 | 
|JFK Logistics Center Bldgs A-D         |  |                                            | 4  |  |          |  | NY |      |  |                         | IND             |  |             |      | 100,836 |                                  |              |  | 57,487 |                |            |  | 96,593 |             |  |              | 162         |  |             |               | 57,487 |                 |      |  | 96,755      |  |  |         | 154,242 |  |  |  | 4,530 |   |  |  | 2004 |  |  |  | 5-40 | 
|Linden Industrial                      |  |                                            | 1  |  |          |  | NJ |      |  |                         | IND             |  |             |      |        |                                  |              |  | 900    |                |            |  | 2,753  |             |  |              | 1,493       |  |             |               | 900    |                 |      |  | 4,246       |  |  |         | 5,146   |  |  |  | 778   |   |  |  | 1999 |  |  |  | 5-40 | 
|Mahwah Corporate Center                |  |                                            | 4  |  |          |  | NJ |      |  |                         | IND             |  |             |      |        |                                  |              |  | 7,068  |                |            |  | 22,087 |             |  |              | 3,042       |  |             |               | 7,069  |                 |      |  | 25,128      |  |  |         | 32,197  |  |  |  | 4,419 |   |  |  | 1998 |  |  |  | 5-40 | 
|Meadow Lane                            |  |                                            | 1  |  |          |  | NJ |      |  |                         | IND             |  |             |      |        |                                  |              |  | 838    |                |            |  | 2,594  |             |  |              | 304         |  |             |               | 838    |                 |      |  | 2,898       |  |  |         | 3,736   |  |  |  | 591   |   |  |  | 1999 |  |  |  | 5-40 | 
|Meadowlands ALFII                      |  |                                            | 4  |  |          |  | NJ |      |  |                         | IND             |  |             |      | 11,760  |                                  |              |  | 6,666  |                |            |  | 13,093 |             |  |              | 2,234       |  |             |               | 6,666  |                 |      |  | 15,327      |  |  |         | 21,993  |  |  |  | 2,527 |   |  |  | 2001 |  |  |  | 5-40 | 
|Meadowlands Cross Dock                 |  |                                            | 1  |  |          |  | NJ |      |  |                         | IND             |  |             |      |        |                                  |              |  | 1,110  |                |            |  | 3,485  |             |  |              | 1,040       |  |             |               | 1,110  |                 |      |  | 4,525       |  |  |         | 5,635   |  |  |  | 1,017 |   |  |  | 2000 |  |  |  | 5-40 | 
|Moonachie Industrial                   |  |                                            | 2  |  |          |  | NJ |      |  |                         | IND             |  |             |      | 5,256   |                                  |              |  | 2,731  |                |            |  | 5,228  |             |  |              | 399         |  |             |               | 2,731  |                 |      |  | 5,627       |  |  |         | 8,358   |  |  |  | 812   |   |  |  | 2001 |  |  |  | 5-40 | 
|Mooncreek Distribution Center          |  |                                            | 1  |  |          |  | NJ |      |  |                         | IND             |  |             |      |        |                                  |              |  | 2,958  |                |            |  | 7,924  |             |  |              | 46          |  |             |               | 2,958  |                 |      |  | 7,970       |  |  |         | 10,928  |  |  |  | 441   |   |  |  | 2004 |  |  |  | 5-40 | 
|Murray Hill Parkway                    |  |                                            | 2  |  |          |  | NJ |      |  |                         | IND             |  |             |      |        |                                  |              |  | 1,670  |                |            |  | 2,568  |             |  |              | 5,278       |  |             |               | 1,670  |                 |      |  | 7,846       |  |  |         | 9,516   |  |  |  | 2,697 |   |  |  | 1999 |  |  |  | 5-40 | 
|Newark Airport I & II                  |  |                                            | 2  |  |          |  | NJ |      |  |                         | IND             |  |             |      | 3,444   |                                  |              |  | 1,755  |                |            |  | 5,400  |             |  |              | 569         |  |             |               | 1,755  |                 |      |  | 5,969       |  |  |         | 7,724   |  |  |  | 1,161 |   |  |  | 2000 |  |  |  | 5-40 | 
|Orchard Hill                           |  |                                            | 1  |  |          |  | NJ |      |  |                         | IND             |  |             |      | 1,273   |                                  |              |  | 1,212  |                |            |  | 1,411  |             |  |              | 624         |  |             |               | 1,212  |                 |      |  | 2,035       |  |  |         | 3,247   |  |  |  | 129   |   |  |  | 2002 |  |  |  | 5-40 | 
|Porete Avenue Warehouse                |  |                                            | 1  |  |          |  | NJ |      |  |                         | IND             |  |             |      |        |                                  |              |  | 4,067  |                |            |  | 12,202 |             |  |              | 5,215       |  |             |               | 4,067  |                 |      |  | 17,417      |  |  |         | 21,484  |  |  |  | 3,710 |   |  |  | 1998 |  |  |  | 5-40 | 
|Skyland Crossdock                      |  |                                            | 1  |  |          |  | NJ |      |  |                         | IND             |  |             |      |        |                                  |              |  |       |                |            |  | 7,250  |             |  |              | 266         |  |             |               |       |                 |      |  | 7,516       |  |  |         | 7,516   |  |  |  | 731   |   |  |  | 2002 |  |  |  | 5-40 | 
|Teterboro Meadowlands 15               |  |                                            | 1  |  |          |  | NJ |      |  |                         | IND             |  |             |      | 9,389   |                                  |              |  | 4,961  |                |            |  | 9,618  |             |  |              | 1,397       |  |             |               | 4,961  |                 |      |  | 11,015      |  |  |         | 15,976  |  |  |  | 2,358 |   |  |  | 2001 |  |  |  | 5-40 | 
|Two South Middlesex                    |  |                                            | 1  |  |          |  | NJ |      |  |                         | IND             |  |             |      |        |                                  |              |  | 2,247  |                |            |  | 6,781  |             |  |              | 2,239       |  |             |               | 2,247  |                 |      |  | 9,020       |  |  |         | 11,267  |  |  |  | 2,297 |   |  |  | 1997 |  |  |  | 5-40 | 
|On-Tarmac                              |  |                                            |    |  |          |  |    |      |  |                         |                 |  |             |      |         |                                  |              |  |        |                |            |  |        |             |  |              |             |  |             |               |        |                 |      |  |             |  |  |         |         |  |  |  |       |   |  |  |      |  |  |  |      | 
|AMB BWI Cargo Center E                 |  |                                            | 1  |  |          |  | MD |      |  |                         | IND             |  |             |      |        |                                  |              |  |       |                |            |  | 6,367  |             |  |              | 114         |  |             |               |       |                 |      |  | 6,481       |  |  |         | 6,481   |  |  |  | 1,797 |   |  |  | 2000 |  |  |  | 5-19 | 
|AMB DAY Cargo Center                   |  |                                            | 5  |  |          |  | OH |      |  |                         | IND             |  |             |      | 6,395   |                                  |              |  |       |                |            |  | 7,163  |             |  |              | 450         |  |             |               |       |                 |      |  | 7,613       |  |  |         | 7,613   |  |  |  | 1,919 |   |  |  | 2000 |  |  |  | 5-23 | 
|AMB DFW Cargo Center 1                 |  |                                            | 1  |  |          |  | TX |      |  |                         | IND             |  |             |      |        |                                  |              |  |       |                |            |  | 34,198 |             |  |              | 157         |  |             |               |       |                 |      |  | 34,355      |  |  |         | 34,355  |  |  |  | (1    | ) |  |  | 2000 |  |  |  | 5-32 | 
|AMB DFW Cargo Center 2                 |  |                                            | 1  |  |          |  | TX |      |  |                         | IND             |  |             |      |        |                                  |              |  |       |                |            |  | 4,286  |             |  |              | 14,536      |  |             |               |       |                 |      |  | 18,822      |  |  |         | 18,822  |  |  |  | 3,181 |   |  |  | 1999 |  |  |  | 5-39 | 
|AMB DFW Cargo Center East              |  |                                            | 3  |  |          |  | TX |      |  |                         | IND             |  |             |      | 5,812   |                                  |              |  |       |                |            |  | 20,632 |             |  |              | 1,103       |  |             |               |       |                 |      |  | 21,735      |  |  |         | 21,735  |  |  |  | 4,260 |   |  |  | 2000 |  |  |  | 5-26 | 
|AMB IAD Cargo Center 5                 |  |                                            | 1  |  |          |  | VA |      |  |                         | IND             |  |             |      |        |                                  |              |  |       |                |            |  | 38,840 |             |  |              | 348         |  |             |               |       |                 |      |  | 39,188      |  |  |         | 39,188  |  |  |  | 9,102 |   |  |  | 2000 |  |  |  | 5-15 | 
|AMB JAX Cargo Center                   |  |                                            | 1  |  |          |  | FL |      |  |                         | IND             |  |             |      |        |                                  |              |  |       |                |            |  | 3,029  |             |  |              | 100         |  |             |               |       |                 |      |  | 3,129       |  |  |         | 3,129   |  |  |  | 714   |   |  |  | 2000 |  |  |  | 5-22 | 
|AMB JFK Cargo Center
    75        77  |  |                                            | 2  |  |          |  | NJ |      |  |                         | IND             |  |             |      |        |                                  |              |  |       |                |            |  | 30,965 |             |  |              | 4,510       |  |             |               |       |                 |      |  | 35,475      |  |  |         | 35,475  |  |  |  | 9,763 |   |  |  | 2002 |  |  |  | 5-13 | 
|AMB LAS Cargo Center
    1        4    |  |                                            | 4  |  |          |  | NV |      |  |                         | IND             |  |             |      |        |                                  |              |  |       |                |            |  | 19,721 |             |  |              | 1,276       |  |             |               |       |                 |      |  | 20,997      |  |  |         | 20,997  |  |  |  | 2,161 |   |  |  | 2003 |  |  |  | 5-33 | 
|AMB LAX Cargo Center                   |  |                                            | 3  |  |          |  | CA |      |  |                         | IND             |  |             |      | 6,772   |                                  |              |  |       |                |            |  | 13,445 |             |  |              | 283         |  |             |               |       |                 |      |  | 13,728      |  |  |         | 13,728  |  |  |  | 3,259 |   |  |  | 2000 |  |  |  | 5-22 | 
|AMB MCI Cargo Center 1                 |  |                                            | 1  |  |          |  | MO |      |  |                         | IND             |  |             |      | 4,520   |                                  |              |  |       |                |            |  | 5,793  |             |  |              | 253         |  |             |               |       |                 |      |  | 6,046       |  |  |         | 6,046   |  |  |  | 1,745 |   |  |  | 2000 |  |  |  | 5-18 | 
|AMB MCI Cargo Center 2                 |  |                                            | 1  |  |          |  | MO |      |  |                         | IND             |  |             |      | 8,705   |                                  |              |  |       |                |            |  | 8,134  |             |  |              | 90          |  |             |               |       |                 |      |  | 8,224       |  |  |         | 8,224   |  |  |  | 1,533 |   |  |  | 2000 |  |  |  | 5-27 | 
|AMB MIA Cargo Ctr 712                  |  |                                            | 1  |  |          |  | FL |      |  |                         | IND             |  |             |      |        |                                  |              |  |       |                |            |  | 18,260 |             |  |              | 583         |  |             |               |       |                 |      |  | 18,843      |  |  |         | 18,843  |  |  |  | 797   |   |  |  | 2005 |  |  |  | 5-32 | 
|AMB PDX Cargo Center Airtrans          |  |                                            | 2  |  |          |  | OR |      |  |                         | IND             |  |             |      |        |                                  |              |  |       |                |            |  | 26     |             |  |              | 11,076      |  |             |               |       |                 |      |  | 11,102      |  |  |         | 11,102  |  |  |  | 1,712 |   |  |  | 2002 |  |  |  | 5-28 | 
|AMB PHL Cargo Center C2                |  |                                            | 1  |  |          |  | PA |      |  |                         | IND             |  |             |      |        |                                  |              |  |       |                |            |  | 9,716  |             |  |              | 2,127       |  |             |               |       |                 |      |  | 11,843      |  |  |         | 11,843  |  |  |  | 3,168 |   |  |  | 2000 |  |  |  | 5-27 | 

S-4



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##### Table of Contents





AMB PROPERTY CORPORATION




SCHEDULE III


CONSOLIDATED REAL ESTATE AND ACCUMULATED DEPRECIATION


As of December 31, 2005


|                                      |  |                                            |    |  |          |  |    |      |  |                         |                 |  |             |      |        |                                  |              |  |        |                |            |  |        |             |  |              |             |  |             |               |        |                 |      |  |             |  |  |         |        |  |  |  |        |  |  |  |      |  |  |  |      | 
|------------------------------------- |  | ------------------------------------------ | -- |  | -------- |  | -- | ---- |  | ----------------------- | --------------- |  | ----------- | ---- | ------ | -------------------------------- | ------------ |  | ------ | -------------- | ---------- |  | ------ | ----------- |  | ------------ | ----------- |  | ----------- | ------------- | ------ | --------------- | ---- |  | ----------- |  |  | ------- | ------ |  |  |  | ------ |  |  |  | ---- |  |  |  | ---- | 
|                                      |  |                                            |    |  |          |  |    |      |  | Initial Cost to Company |                 |  | Costs       |      |        | Gross Amount Carried at 12/31/05 |              |  |        |                |            |  |       
|                                      |  |                                            |    |  |          |  |    |      |  |                         |                 |  | Capitalized |      |        |                                  |              |  |        |                | Year of    |  |        | Depreciable | 
|                                      |  | No of                                      |    |  |          |  |    |      |  |                         |                 |  | Building &  |      |        | Subsequent                       |              |  |        |                | Building & |  |        | Total       |  |              | Accumulated |  |             | Construction/ |        |                 | Life | 
|Property                              |  | Bldgs                                      |    |  | Location |  |    | Type |  |                         | Encumbrances(3) |  |             | Land |        |                                  | Improvements |  |        | to Acquisition |            |  | Land   |             |  | Improvements |             |  | Costs(1)(2) |               |        | Depreciation(4) |      |  | Acquisition |  |  | (Years) |       
|                                      |  |                                            |    |  |          |  |    |      |  |                         |                 |  |             |      |        |                                  |              |  |        |                |            |  |        |             |  |              |             |  |             |               |        |                 |      |  |             |  |  |         |       
|                                      |  | (In thousands, except number of buildings) |   
|AMB RNO Cargo Center
    10        11 |  |                                            | 2  |  |          |  | NV |      |  |                         | IND             |  |             |      |       |                                  |              |  |       |                |            |  | 6,014  |             |  |              | 232         |  |             |               |       |                 |      |  | 6,246       |  |  |         | 6,246  |  |  |  | 823    |  |  |  | 2003 |  |  |  | 5-23 | 
|AMB SEA Air Cargo Center 314          |  |                                            | 1  |  |          |  | WA |      |  |                         | IND             |  |             |      | 2,424  |                                  |              |  |       |                |            |  | 2,939  |             |  |              | 992         |  |             |               |       |                 |      |  | 3,931       |  |  |         | 3,931  |  |  |  | 1,065  |  |  |  | 2003 |  |  |  | 5-15 | 
|AMB SEA Cargo Center North            |  |                                            | 2  |  |          |  | WA |      |  |                         | IND             |  |             |      | 4,077  |                                  |              |  |       |                |            |  | 15,594 |             |  |              | 365         |  |             |               |       |                 |      |  | 15,959      |  |  |         | 15,959 |  |  |  | 3,120  |  |  |  | 2000 |  |  |  | 5-27 | 
|AMB SEA Cargo Center South            |  |                                            | 1  |  |          |  | WA |      |  |                         | IND             |  |             |      |       |                                  |              |  |       |                |            |  | 3,056  |             |  |              | 283         |  |             |               |       |                 |      |  | 3,339       |  |  |         | 3,339  |  |  |  | 1,259  |  |  |  | 2000 |  |  |  | 5-14 | 
|San Francisco Bay Area                |  |                                            |    |  |          |  |    |      |  |                         |                 |  |             |      |        |                                  |              |  |        |                |            |  |        |             |  |              |             |  |             |               |        |                 |      |  |             |  |  |         |        |  |  |  |        |  |  |  |      |  |  |  |      | 
|Acer Distribution Center              |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 3,146  |                |            |  | 9,480  |             |  |              | 2,990       |  |             |               | 3,147  |                 |      |  | 12,469      |  |  |         | 15,616 |  |  |  | 3,435  |  |  |  | 1997 |  |  |  | 5-40 | 
|Albrae Business Center                |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      | 7,473  |                                  |              |  | 6,299  |                |            |  | 6,227  |             |  |              | 1,060       |  |             |               | 6,299  |                 |      |  | 7,287       |  |  |         | 13,586 |  |  |  | 934    |  |  |  | 2001 |  |  |  | 5-40 | 
|Alvarado Business Center SG           |  |                                            | 5  |  |          |  | CA |      |  |                         | IND             |  |             |      | 23,012 |                                  |              |  | 6,328  |                |            |  | 26,671 |             |  |              | 10,077      |  |             |               | 6,328  |                 |      |  | 36,748      |  |  |         | 43,076 |  |  |  | 5,296  |  |  |  | 1997 |  |  |  | 5-40 | 
|AMB Spruce Avenue                     |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      | 31,352 |                                  |              |  | 32,702 |                |            |  | 33,091 |             |  |              | 2           |  |             |               | 32,701 |                 |      |  | 33,094      |  |  |         | 65,795 |  |  |  | 360    |  |  |  | 2005 |  |  |  | 5-40 | 
|Brennan Distribution                  |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      | 3,997  |                                  |              |  | 3,683  |                |            |  | 3,022  |             |  |              | 2,193       |  |             |               | 3,683  |                 |      |  | 5,215       |  |  |         | 8,898  |  |  |  | 1,211  |  |  |  | 2001 |  |  |  | 5-40 | 
|Central Bay                           |  |                                            | 2  |  |          |  | CA |      |  |                         | IND             |  |             |      | 6,706  |                                  |              |  | 3,896  |                |            |  | 7,399  |             |  |              | 1,850       |  |             |               | 3,895  |                 |      |  | 9,250       |  |  |         | 13,145 |  |  |  | 1,625  |  |  |  | 2001 |  |  |  | 5-40 | 
|Component Drive Ind Port              |  |                                            | 3  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 12,688 |                |            |  | 6,974  |             |  |              | 1,467       |  |             |               | 12,688 |                 |      |  | 8,441       |  |  |         | 21,129 |  |  |  | 1,306  |  |  |  | 2001 |  |  |  | 5-40 | 
|Dado Distribution                     |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 7,221  |                |            |  | 3,739  |             |  |              | 2,312       |  |             |               | 7,221  |                 |      |  | 6,051       |  |  |         | 13,272 |  |  |  | 880    |  |  |  | 2001 |  |  |  | 5-40 | 
|Doolittle Distribution Center         |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 2,644  |                |            |  | 8,014  |             |  |              | 1,257       |  |             |               | 2,644  |                 |      |  | 9,271       |  |  |         | 11,915 |  |  |  | 1,653  |  |  |  | 2000 |  |  |  | 5-40 | 
|Dowe Industrial Center                |  |                                            | 2  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 2,665  |                |            |  | 8,033  |             |  |              | 2,130       |  |             |               | 2,664  |                 |      |  | 10,164      |  |  |         | 12,828 |  |  |  | 2,608  |  |  |  | 1997 |  |  |  | 5-40 | 
|Dublin Industrial Portfolio           |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 2,980  |                |            |  | 9,042  |             |  |              | 2,059       |  |             |               | 2,980  |                 |      |  | 11,101      |  |  |         | 14,081 |  |  |  | 1,830  |  |  |  | 2000 |  |  |  | 5-40 | 
|East Bay Doolittle                    |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 7,128  |                |            |  | 11,023 |             |  |              | 2,551       |  |             |               | 7,128  |                 |      |  | 13,574      |  |  |         | 20,702 |  |  |  | 2,179  |  |  |  | 2001 |  |  |  | 5-40 | 
|East Bay Whipple                      |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      | 6,639  |                                  |              |  | 5,333  |                |            |  | 8,126  |             |  |              | 1,678       |  |             |               | 5,333  |                 |      |  | 9,804       |  |  |         | 15,137 |  |  |  | 1,373  |  |  |  | 2001 |  |  |  | 5-40 | 
|East Grand Airfreight                 |  |                                            | 2  |  |          |  | CA |      |  |                         | IND             |  |             |      | 3,945  |                                  |              |  | 5,093  |                |            |  | 4,190  |             |  |              | 37          |  |             |               | 5,093  |                 |      |  | 4,227       |  |  |         | 9,320  |  |  |  | 344    |  |  |  | 2003 |  |  |  | 5-40 | 
|Edgewater Industrial Center           |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 4,038  |                |            |  | 15,113 |             |  |              | 5,015       |  |             |               | 4,038  |                 |      |  | 20,128      |  |  |         | 24,166 |  |  |  | 3,864  |  |  |  | 2000 |  |  |  | 5-40 | 
|Fairway Drive Ind SGP                 |  |                                            | 4  |  |          |  | CA |      |  |                         | IND             |  |             |      | 11,777 |                                  |              |  | 4,204  |                |            |  | 13,949 |             |  |              | 3,058       |  |             |               | 4,204  |                 |      |  | 17,007      |  |  |         | 21,211 |  |  |  | 2,397  |  |  |  | 1997 |  |  |  | 5-40 | 
|Hayward Industrial  Hathaway         |  |                                            | 2  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 4,473  |                |            |  | 13,545 |             |  |              | 865         |  |             |               | 4,472  |                 |      |  | 14,411      |  |  |         | 18,883 |  |  |  | 1,926  |  |  |  | 2000 |  |  |  | 5-40 | 
|Junction Industrial Park              |  |                                            | 4  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 7,875  |                |            |  | 23,975 |             |  |              | 3,754       |  |             |               | 7,875  |                 |      |  | 27,729      |  |  |         | 35,604 |  |  |  | 5,578  |  |  |  | 1999 |  |  |  | 5-40 | 
|Laurelwood Drive                      |  |                                            | 2  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 2,750  |                |            |  | 8,538  |             |  |              | 665         |  |             |               | 2,750  |                 |      |  | 9,203       |  |  |         | 11,953 |  |  |  | 1,959  |  |  |  | 1997 |  |  |  | 5-40 | 
|Lawrence SSF                          |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 2,870  |                |            |  | 5,521  |             |  |              | 1,164       |  |             |               | 2,870  |                 |      |  | 6,685       |  |  |         | 9,555  |  |  |  | 1,221  |  |  |  | 2001 |  |  |  | 5-40 | 
|Marina Business Park                  |  |                                            | 2  |  |          |  | CA |      |  |                         | IND             |  |             |      | 4,145  |                                  |              |  | 3,280  |                |            |  | 4,317  |             |  |              | 424         |  |             |               | 3,281  |                 |      |  | 4,740       |  |  |         | 8,021  |  |  |  | 424    |  |  |  | 2002 |  |  |  | 5-40 | 
|Martin/ Scott Ind Port                |  |                                            | 2  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 9,052  |                |            |  | 5,309  |             |  |              | 446         |  |             |               | 9,052  |                 |      |  | 5,755       |  |  |         | 14,807 |  |  |  | 750    |  |  |  | 2001 |  |  |  | 5-40 | 
|MBC Industrial                        |  |                                            | 4  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 5,892  |                |            |  | 17,716 |             |  |              | 3,439       |  |             |               | 5,892  |                 |      |  | 21,155      |  |  |         | 27,047 |  |  |  | 5,392  |  |  |  | 1997 |  |  |  | 5-40 | 
|Milmont Page SGP                      |  |                                            | 3  |  |          |  | CA |      |  |                         | IND             |  |             |      | 10,996 |                                  |              |  | 3,420  |                |            |  | 10,600 |             |  |              | 3,274       |  |             |               | 3,420  |                 |      |  | 13,874      |  |  |         | 17,294 |  |  |  | 1,915  |  |  |  | 1997 |  |  |  | 5-40 | 
|Moffett Distribution                  |  |                                            | 7  |  |          |  | CA |      |  |                         | IND             |  |             |      | 18,359 |                                  |              |  | 26,916 |                |            |  | 11,276 |             |  |              | 2,772       |  |             |               | 26,915 |                 |      |  | 14,049      |  |  |         | 40,964 |  |  |  | 2,041  |  |  |  | 2001 |  |  |  | 5-40 | 
|Moffett Park/ Bordeaux R&D            |  |                                            | 14 |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 14,805 |                |            |  | 44,462 |             |  |              | 13,615      |  |             |               | 14,805 |                 |      |  | 58,077      |  |  |         | 72,882 |  |  |  | 17,964 |  |  |  | 1997 |  |  |  | 5-40 | 
|Pacific Business Center               |  |                                            | 2  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 5,417  |                |            |  | 16,291 |             |  |              | 3,776       |  |             |               | 5,417  |                 |      |  | 20,067      |  |  |         | 25,484 |  |  |  | 5,077  |  |  |  | 1997 |  |  |  | 5-40 | 
|Pardee Drive SG                       |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      | 1,475  |                                  |              |  | 619    |                |            |  | 1,880  |             |  |              | 283         |  |             |               | 618    |                 |      |  | 2,164       |  |  |         | 2,782  |  |  |  | 288    |  |  |  | 1999 |  |  |  | 5-40 | 
|Silicon Valley R&D                    |  |                                            | 5  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 6,700  |                |            |  | 20,186 |             |  |              | 11,247      |  |             |               | 6,700  |                 |      |  | 31,433      |  |  |         | 38,133 |  |  |  | 8,636  |  |  |  | 1997 |  |  |  | 5-40 | 
|South Bay Industrial                  |  |                                            | 8  |  |          |  | CA |      |  |                         | IND             |  |             |      | 42     |                                  |              |  | 14,992 |                |            |  | 45,016 |             |  |              | 7,223       |  |             |               | 14,992 |                 |      |  | 52,239      |  |  |         | 67,231 |  |  |  | 13,196 |  |  |  | 1997 |  |  |  | 5-40 | 
|Utah Airfreight                       |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      | 16,627 |                                  |              |  | 18,753 |                |            |  | 8,381  |             |  |              | 1,733       |  |             |               | 18,753 |                 |      |  | 10,114      |  |  |         | 28,867 |  |  |  | 1,085  |  |  |  | 2003 |  |  |  | 5-40 | 
|Wiegman Road                          |  |                                            | 1  |  |          |  | CA |      |  |                         | IND             |  |             |      |       |                                  |              |  | 1,563  |                |            |  | 4,688  |             |  |              | 1,584       |  |             |               | 1,563  |                 |      |  | 6,272       |  |  |         | 7,835  |  |  |  | 1,689  |  |  |  | 1997 |  |  |  | 5-40 | 

S-5



---



##### Table of Contents





AMB PROPERTY CORPORATION




SCHEDULE III


CONSOLIDATED REAL ESTATE AND ACCUMULATED DEPRECIATION


As of December 31, 2005


|                               |  |                                            |    |  |          |  |                 |      |  |                         |                 |  |             |      |        |                                  |              |  |        |                |            |  |        |             |  |              |             |  |             |               |        |                 |      |  |             |  |  |         |         |  |  |  |        |  |  |  |      |  |  |  |      | 
|------------------------------ |  | ------------------------------------------ | -- |  | -------- |  | --------------- | ---- |  | ----------------------- | --------------- |  | ----------- | ---- | ------ | -------------------------------- | ------------ |  | ------ | -------------- | ---------- |  | ------ | ----------- |  | ------------ | ----------- |  | ----------- | ------------- | ------ | --------------- | ---- |  | ----------- |  |  | ------- | ------- |  |  |  | ------ |  |  |  | ---- |  |  |  | ---- | 
|                               |  |                                            |    |  |          |  |                 |      |  | Initial Cost to Company |                 |  | Costs       |      |        | Gross Amount Carried at 12/31/05 |              |  |        |                |            |  |       
|                               |  |                                            |    |  |          |  |                 |      |  |                         |                 |  | Capitalized |      |        |                                  |              |  |        |                | Year of    |  |        | Depreciable | 
|                               |  | No of                                      |    |  |          |  |                 |      |  |                         |                 |  | Building &  |      |        | Subsequent                       |              |  |        |                | Building & |  |        | Total       |  |              | Accumulated |  |             | Construction/ |        |                 | Life | 
|Property                       |  | Bldgs                                      |    |  | Location |  |                 | Type |  |                         | Encumbrances(3) |  |             | Land |        |                                  | Improvements |  |        | to Acquisition |            |  | Land   |             |  | Improvements |             |  | Costs(1)(2) |               |        | Depreciation(4) |      |  | Acquisition |  |  | (Years) |        
|                               |  |                                            |    |  |          |  |                 |      |  |                         |                 |  |             |      |        |                                  |              |  |        |                |            |  |        |             |  |              |             |  |             |               |        |                 |      |  |             |  |  |         |        
|                               |  | (In thousands, except number of buildings) |   
|Williams & Burroughs AMB PrtII |  |                                            | 4  |  |          |  | CA              |      |  |                         | IND             |  |             |      | 7,618  |                                  |              |  | 2,262  |                |            |  | 6,981  |             |  |              | 3,389       |  |             |               | 2,262  |                 |      |  | 10,370      |  |  |         | 12,632  |  |  |  | 2,408  |  |  |  | 1999 |  |  |  | 5-40 | 
|Willow Park Industrial         |  |                                            | 21 |  |          |  | CA              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 25,590 |                |            |  | 76,772 |             |  |              | 18,074      |  |             |               | 25,591 |                 |      |  | 94,845      |  |  |         | 120,436 |  |  |  | 22,193 |  |  |  | 1998 |  |  |  | 5-40 | 
|Yosemite Drive                 |  |                                            | 1  |  |          |  | CA              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 2,350  |                |            |  | 7,052  |             |  |              | 1,045       |  |             |               | 2,351  |                 |      |  | 8,096       |  |  |         | 10,447  |  |  |  | 1,816  |  |  |  | 1997 |  |  |  | 5-40 | 
|Zanker/ Charcot Industrial     |  |                                            | 5  |  |          |  | CA              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 5,282  |                |            |  | 15,887 |             |  |              | 3,509       |  |             |               | 5,282  |                 |      |  | 19,396      |  |  |         | 24,678  |  |  |  | 4,881  |  |  |  | 1997 |  |  |  | 5-40 | 
|Seattle                        |  |                                            |    |  |          |  |                 |      |  |                         |                 |  |             |      |        |                                  |              |  |        |                |            |  |        |             |  |              |             |  |             |               |        |                 |      |  |             |  |  |         |         |  |  |  |        |  |  |  |      |  |  |  |      | 
|Black River                    |  |                                            | 1  |  |          |  | WA              |      |  |                         | IND             |  |             |      | 3,275  |                                  |              |  | 1,845  |                |            |  | 3,558  |             |  |              | 427         |  |             |               | 1,844  |                 |      |  | 3,986       |  |  |         | 5,830   |  |  |  | 634    |  |  |  | 2001 |  |  |  | 5-40 | 
|Earlington Business Park       |  |                                            | 1  |  |          |  | WA              |      |  |                         | IND             |  |             |      | 4,059  |                                  |              |  | 2,766  |                |            |  | 3,234  |             |  |              | 882         |  |             |               | 2,766  |                 |      |  | 4,116       |  |  |         | 6,882   |  |  |  | 514    |  |  |  | 2002 |  |  |  | 5-40 | 
|East Valley Warehouse          |  |                                            | 1  |  |          |  | WA              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 6,813  |                |            |  | 20,511 |             |  |              | 5,887       |  |             |               | 6,813  |                 |      |  | 26,398      |  |  |         | 33,211  |  |  |  | 6,579  |  |  |  | 1999 |  |  |  | 5-40 | 
|Harvest Business Park          |  |                                            | 3  |  |          |  | WA              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 2,371  |                |            |  | 7,153  |             |  |              | 1,578       |  |             |               | 2,371  |                 |      |  | 8,731       |  |  |         | 11,102  |  |  |  | 2,402  |  |  |  | 1997 |  |  |  | 5-40 | 
|AMB Portside Distribution Cent |  |                                            | 1  |  |          |  | WA              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 9,964  |                |            |  | 14,421 |             |  |              | 2,686       |  |             |               | 9,964  |                 |      |  | 17,107      |  |  |         | 27,071  |  |  |  | 241    |  |  |  | 2005 |  |  |  | 5-40 | 
|AMB Sumner Landing             |  |                                            | 1  |  |          |  | WA              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 6,937  |                |            |  | 17,577 |             |  |              | 2,016       |  |             |               | 6,937  |                 |      |  | 19,593      |  |  |         | 26,530  |  |  |  | 435    |  |  |  | 2005 |  |  |  | 5-40 | 
|Kent Centre Corporate Park     |  |                                            | 4  |  |          |  | WA              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 3,042  |                |            |  | 9,165  |             |  |              | 1,918       |  |             |               | 3,042  |                 |      |  | 11,083      |  |  |         | 14,125  |  |  |  | 2,867  |  |  |  | 1997 |  |  |  | 5-40 | 
|Kingsport Industrial Park      |  |                                            | 7  |  |          |  | WA              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 8,101  |                |            |  | 23,812 |             |  |              | 5,842       |  |             |               | 7,919  |                 |      |  | 29,836      |  |  |         | 37,755  |  |  |  | 7,620  |  |  |  | 1997 |  |  |  | 5-40 | 
|NDP  Seattle                  |  |                                            | 4  |  |          |  | WA              |      |  |                         | IND             |  |             |      | 11,437 |                                  |              |  | 3,992  |                |            |  | 11,774 |             |  |              | 1,275       |  |             |               | 3,993  |                 |      |  | 13,048      |  |  |         | 17,041  |  |  |  | 1,387  |  |  |  | 1998 |  |  |  | 5-40 | 
|Northwest Distribution Center  |  |                                            | 3  |  |          |  | WA              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 3,533  |                |            |  | 10,751 |             |  |              | 1,309       |  |             |               | 3,533  |                 |      |  | 12,060      |  |  |         | 15,593  |  |  |  | 3,092  |  |  |  | 1997 |  |  |  | 5-40 | 
|Puget Sound Airfreight         |  |                                            | 1  |  |          |  | WA              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 1,329  |                |            |  | 1,830  |             |  |              | 383         |  |             |               | 1,329  |                 |      |  | 2,213       |  |  |         | 3,542   |  |  |  | 322    |  |  |  | 2002 |  |  |  | 5-40 | 
|Renton Northwest Corp. Park    |  |                                            | 6  |  |          |  | WA              |      |  |                         | IND             |  |             |      | 23,438 |                                  |              |  | 25,959 |                |            |  | 14,792 |             |  |              | 1,161       |  |             |               | 25,959 |                 |      |  | 15,953      |  |  |         | 41,912  |  |  |  | 1,610  |  |  |  | 2002 |  |  |  | 5-40 | 
|SEA Logistics Center 1         |  |                                            | 3  |  |          |  | WA              |      |  |                         | IND             |  |             |      | 17,345 |                                  |              |  | 9,218  |                |            |  | 18,967 |             |  |              | 1,146       |  |             |               | 9,217  |                 |      |  | 20,114      |  |  |         | 29,331  |  |  |  | 1,424  |  |  |  | 2003 |  |  |  | 5-40 | 
|SEA Logistics Center 2         |  |                                            | 3  |  |          |  | WA              |      |  |                         | IND             |  |             |      | 14,197 |                                  |              |  | 11,535 |                |            |  | 24,601 |             |  |              | 1,502       |  |             |               | 12,874 |                 |      |  | 24,764      |  |  |         | 37,638  |  |  |  | 1,517  |  |  |  | 2003 |  |  |  | 5-40 | 
|Trans-Pacific Industrial Park  |  |                                            | 11 |  |          |  | WA              |      |  |                         | IND             |  |             |      | 48,600 |                                  |              |  | 31,675 |                |            |  | 42,210 |             |  |              | 6,091       |  |             |               | 31,675 |                 |      |  | 48,301      |  |  |         | 79,976  |  |  |  | 3,366  |  |  |  | 2003 |  |  |  | 5-40 | 
|Other Industrial Markets       |  |                                            |    |  |          |  |                 |      |  |                         |                 |  |             |      |        |                                  |              |  |        |                |            |  |        |             |  |              |             |  |             |               |        |                 |      |  |             |  |  |         |         |  |  |  |        |  |  |  |      |  |  |  |      | 
|Activity Distribution Center   |  |                                            | 4  |  |          |  | CA              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 3,736  |                |            |  | 11,248 |             |  |              | 2,775       |  |             |               | 3,736  |                 |      |  | 14,023      |  |  |         | 17,759  |  |  |  | 3,501  |  |  |  | 1997 |  |  |  | 5-40 | 
|AMB Broadmoor Distribution     |  |                                            | 1  |  |          |  | MA              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 2,459  |                |            |  | 5,720  |             |  |              |            |  |             |               | 2,460  |                 |      |  | 5,719       |  |  |         | 8,179   |  |  |  | 79     |  |  |  | 2005 |  |  |  | 5-40 | 
|AMB Capronilaan                |  |                                            | 1  |  |          |  | The Netherlands |      |  |                         | IND             |  |             |      | 14,737 |                                  |              |  | 8,525  |                |            |  | 14,633 |             |  |              |            |  |             |               | 8,525  |                 |      |  | 14,633      |  |  |         | 23,158  |  |  |  | 775    |  |  |  | 2004 |  |  |  | 5-40 | 
|AMB CDG Cargo Center SAS       |  |                                            | 1  |  |          |  | France          |      |  |                         | IND             |  |             |      | 19,468 |                                  |              |  |       |                |            |  | 37,002 |             |  |              |            |  |             |               |       |                 |      |  | 37,002      |  |  |         | 37,002  |  |  |  | 1,356  |  |  |  | 2004 |  |  |  | 5-37 | 
|AMB Cedar Hill Distribution    |  |                                            | 1  |  |          |  | MA              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 1,274  |                |            |  | 3,329  |             |  |              |            |  |             |               | 1,274  |                 |      |  | 3,329       |  |  |         | 4,603   |  |  |  | 43     |  |  |  | 2005 |  |  |  | 5-40 | 
|AMB Energy Park Distribution   |  |                                            | 1  |  |          |  | MN              |      |  |                         | IND             |  |             |      | 8,970  |                                  |              |  | 3,700  |                |            |  | 9,374  |             |  |              | 138         |  |             |               | 3,701  |                 |      |  | 9,511       |  |  |         | 13,212  |  |  |  | 179    |  |  |  | 2005 |  |  |  | 5-40 | 
|AMB Industrial Park Bus. Ctr   |  |                                            | 1  |  |          |  | MN              |      |  |                         | IND             |  |             |      | 3,240  |                                  |              |  | 1,648  |                |            |  | 4,188  |             |  |              | 8           |  |             |               | 1,649  |                 |      |  | 4,195       |  |  |         | 5,844   |  |  |  | 160    |  |  |  | 2004 |  |  |  | 5-40 | 
|AMB Jiuting DC                 |  |                                            | 1  |  |          |  | Shanghai        |      |  |                         | IND             |  |             |      |       |                                  |              |  |       |                |            |  | 8,290  |             |  |              |            |  |             |               |       |                 |      |  | 8,290       |  |  |         | 8,290   |  |  |  |       |  |  |  | 2005 |  |  |  | 5-40 | 
|AMB LIsle DAbeau             |  |                                            | 1  |  |          |  | Lyon            |      |  |                         | IND             |  |             |      |       |                                  |              |  | 3,710  |                |            |  | 14,174 |             |  |              |            |  |             |               | 3,710  |                 |      |  | 14,174      |  |  |         | 17,884  |  |  |  | 267    |  |  |  | 2005 |  |  |  | 5-40 | 
|AMB Lunar Pointe Distribution  |  |                                            | 1  |  |          |  | MN              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 2,309  |                |            |  | 5,601  |             |  |              |            |  |             |               | 2,309  |                 |      |  | 5,601       |  |  |         | 7,910   |  |  |  |       |  |  |  | 2005 |  |  |  | 5-40 | 
|AMB Northpoint Indust. Center  |  |                                            | 3  |  |          |  | MN              |      |  |                         | IND             |  |             |      | 6,300  |                                  |              |  | 2,769  |                |            |  | 8,087  |             |  |              | 32          |  |             |               | 2,769  |                 |      |  | 8,119       |  |  |         | 10,888  |  |  |  | 388    |  |  |  | 2004 |  |  |  | 5-40 | 
|AMB Pinewood Distribution      |  |                                            | 1  |  |          |  | MA              |      |  |                         | IND             |  |             |      | 16,000 |                                  |              |  | 7,835  |                |            |  | 15,130 |             |  |              |            |  |             |               | 7,835  |                 |      |  | 15,130      |  |  |         | 22,965  |  |  |  | 87     |  |  |  | 2005 |  |  |  | 5-40 | 
|AMB Schiphol Dist Center       |  |                                            | 1  |  |          |  | The Netherlands |      |  |                         | IND             |  |             |      | 8,896  |                                  |              |  | 5,618  |                |            |  | 8,595  |             |  |              |            |  |             |               | 5,618  |                 |      |  | 8,595       |  |  |         | 14,213  |  |  |  | 321    |  |  |  | 2004 |  |  |  | 5-40 | 
|AMB Shady Oak Indust. Center   |  |                                            | 1  |  |          |  | MN              |      |  |                         | IND             |  |             |      | 1,760  |                                  |              |  | 897    |                |            |  | 1,794  |             |  |              | 247         |  |             |               | 896    |                 |      |  | 2,042       |  |  |         | 2,938   |  |  |  | 115    |  |  |  | 2004 |  |  |  | 5-40 | 
|B.W.I.P                        |  |                                            | 2  |  |          |  | MD              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 2,258  |                |            |  | 5,149  |             |  |              | 1,185       |  |             |               | 2,258  |                 |      |  | 6,334       |  |  |         | 8,592   |  |  |  | 646    |  |  |  | 2002 |  |  |  | 5-40 | 
|Beltway Distribution           |  |                                            | 1  |  |          |  | VA              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 4,800  |                |            |  | 15,159 |             |  |              | 6,036       |  |             |               | 4,800  |                 |      |  | 21,195      |  |  |         | 25,995  |  |  |  | 5,104  |  |  |  | 1999 |  |  |  | 5-40 | 
|Boston Industrial              |  |                                            | 17 |  |          |  | MA              |      |  |                         | IND             |  |             |      | 7,775  |                                  |              |  | 16,125 |                |            |  | 49,811 |             |  |              | 18,597      |  |             |               | 16,125 |                 |      |  | 68,408      |  |  |         | 84,533  |  |  |  | 18,476 |  |  |  | 1998 |  |  |  | 5-40 | 

S-6



---



##### Table of Contents





AMB PROPERTY CORPORATION




SCHEDULE III


CONSOLIDATED REAL ESTATE AND ACCUMULATED DEPRECIATION


As of December 31, 2005


|                                   |  |                                            |    |  |          |  |                 |      |  |                         |                 |  |             |      |        |                                  |              |  |        |                |            |  |        |             |  |              |             |  |             |               |        |                 |      |  |             |  |  |         |        |  |  |  |        |  |  |  |      |  |  |  |      | 
|---------------------------------- |  | ------------------------------------------ | -- |  | -------- |  | --------------- | ---- |  | ----------------------- | --------------- |  | ----------- | ---- | ------ | -------------------------------- | ------------ |  | ------ | -------------- | ---------- |  | ------ | ----------- |  | ------------ | ----------- |  | ----------- | ------------- | ------ | --------------- | ---- |  | ----------- |  |  | ------- | ------ |  |  |  | ------ |  |  |  | ---- |  |  |  | ---- | 
|                                   |  |                                            |    |  |          |  |                 |      |  | Initial Cost to Company |                 |  | Costs       |      |        | Gross Amount Carried at 12/31/05 |              |  |        |                |            |  |       
|                                   |  |                                            |    |  |          |  |                 |      |  |                         |                 |  | Capitalized |      |        |                                  |              |  |        |                | Year of    |  |        | Depreciable | 
|                                   |  | No of                                      |    |  |          |  |                 |      |  |                         |                 |  | Building &  |      |        | Subsequent                       |              |  |        |                | Building & |  |        | Total       |  |              | Accumulated |  |             | Construction/ |        |                 | Life | 
|Property                           |  | Bldgs                                      |    |  | Location |  |                 | Type |  |                         | Encumbrances(3) |  |             | Land |        |                                  | Improvements |  |        | to Acquisition |            |  | Land   |             |  | Improvements |             |  | Costs(1)(2) |               |        | Depreciation(4) |      |  | Acquisition |  |  | (Years) |       
|                                   |  |                                            |    |  |          |  |                 |      |  |                         |                 |  |             |      |        |                                  |              |  |        |                |            |  |        |             |  |              |             |  |             |               |        |                 |      |  |             |  |  |         |       
|                                   |  | (In thousands, except number of buildings) |   
|Boston Marine Industrial Park      |  |                                            | 1  |  |          |  | MA              |      |  |                         | IND             |  |             |      | 49,559 |                                  |              |  |       |                |            |  | 69,135 |             |  |              | 2,073       |  |             |               |       |                 |      |  | 71,208      |  |  |         | 71,208 |  |  |  | 4,396  |  |  |  | 2004 |  |  |  | 5-40 | 
|Bourget Industrial                 |  |                                            | 1  |  |          |  | France          |      |  |                         | IND             |  |             |      | 20,433 |                                  |              |  | 9,753  |                |            |  | 23,172 |             |  |              |            |  |             |               | 9,752  |                 |      |  | 23,173      |  |  |         | 32,925 |  |  |  | 1,226  |  |  |  | 2003 |  |  |  | 5-40 | 
|Braemar Business Center            |  |                                            | 2  |  |          |  | MN              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 1,566  |                |            |  | 4,613  |             |  |              | 1,362       |  |             |               | 1,566  |                 |      |  | 5,975       |  |  |         | 7,541  |  |  |  | 1,616  |  |  |  | 1998 |  |  |  | 5-40 | 
|Burnsville Business Center         |  |                                            | 1  |  |          |  | MN              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 932    |                |            |  | 2,796  |             |  |              | 1,356       |  |             |               | 932    |                 |      |  | 4,152       |  |  |         | 5,084  |  |  |  | 1,401  |  |  |  | 1998 |  |  |  | 5-40 | 
|Cabot BP Land (KYDJ)               |  |                                            | 1  |  |          |  | MA              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 510    |                |            |  | 1,103  |             |  |              | 9,085       |  |             |               | 864    |                 |      |  | 9,834       |  |  |         | 10,698 |  |  |  | 3,243  |  |  |  | 1998 |  |  |  | 5-40 | 
|Cabot Business Park                |  |                                            | 12 |  |          |  | MA              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 14,353 |                |            |  | 43,609 |             |  |              | 8,834       |  |             |               | 15,398 |                 |      |  | 51,398      |  |  |         | 66,796 |  |  |  | 12,343 |  |  |  | 1998 |  |  |  | 5-40 | 
|Cabot Business Park SGP            |  |                                            | 3  |  |          |  | MA              |      |  |                         | IND             |  |             |      | 15,846 |                                  |              |  | 5,800  |                |            |  | 16,968 |             |  |              | 3,385       |  |             |               | 6,252  |                 |      |  | 19,901      |  |  |         | 26,153 |  |  |  | 1,915  |  |  |  | 2002 |  |  |  | 5-40 | 
|Chancellor                         |  |                                            | 1  |  |          |  | FL              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 1,587  |                |            |  | 3,760  |             |  |              | 3,524       |  |             |               | 1,588  |                 |      |  | 7,283       |  |  |         | 8,871  |  |  |  | 1,080  |  |  |  | 1996 |  |  |  | 5-40 | 
|Chancellor Square                  |  |                                            | 3  |  |          |  | FL              |      |  |                         | IND             |  |             |      | 14,326 |                                  |              |  | 2,009  |                |            |  | 6,106  |             |  |              | 4,467       |  |             |               | 2,009  |                 |      |  | 10,573      |  |  |         | 12,582 |  |  |  | 3,176  |  |  |  | 1998 |  |  |  | 5-40 | 
|Chemway Industrial Portfolio       |  |                                            | 5  |  |          |  | NC              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 2,875  |                |            |  | 8,625  |             |  |              | 1,964       |  |             |               | 2,875  |                 |      |  | 10,589      |  |  |         | 13,464 |  |  |  | 2,563  |  |  |  | 1998 |  |  |  | 5-40 | 
|CLT Logistics Center 1             |  |                                            | 11 |  |          |  | NC              |      |  |                         | IND             |  |             |      | 20,539 |                                  |              |  | 5,443  |                |            |  | 22,818 |             |  |              | 1,819       |  |             |               | 5,569  |                 |      |  | 24,511      |  |  |         | 30,080 |  |  |  | 1,558  |  |  |  | 2003 |  |  |  | 5-40 | 
|Columbia Business Center           |  |                                            | 9  |  |          |  | MD              |      |  |                         | IND             |  |             |      | 3,222  |                                  |              |  | 3,856  |                |            |  | 11,736 |             |  |              | 3,706       |  |             |               | 3,856  |                 |      |  | 15,442      |  |  |         | 19,298 |  |  |  | 3,808  |  |  |  | 1999 |  |  |  | 5-40 | 
|Corporate Park/ Hickory Hill       |  |                                            | 7  |  |          |  | TN              |      |  |                         | IND             |  |             |      | 11,572 |                                  |              |  | 6,789  |                |            |  | 23,796 |             |  |              | 524         |  |             |               | 6,788  |                 |      |  | 24,321      |  |  |         | 31,109 |  |  |  | 5,534  |  |  |  | 1998 |  |  |  | 5-40 | 
|Corporate Square Industrial        |  |                                            | 6  |  |          |  | MN              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 4,024  |                |            |  | 12,113 |             |  |              | 3,329       |  |             |               | 4,024  |                 |      |  | 15,442      |  |  |         | 19,466 |  |  |  | 4,526  |  |  |  | 1997 |  |  |  | 5-40 | 
|Corridor Industrial                |  |                                            | 1  |  |          |  | MD              |      |  |                         | IND             |  |             |      | 2,300  |                                  |              |  | 996    |                |            |  | 3,019  |             |  |              | 328         |  |             |               | 996    |                 |      |  | 3,347       |  |  |         | 4,343  |  |  |  | 657    |  |  |  | 1999 |  |  |  | 5-40 | 
|Crysen Industrial                  |  |                                            | 1  |  |          |  | MD              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 1,425  |                |            |  | 4,275  |             |  |              | 1,191       |  |             |               | 1,425  |                 |      |  | 5,466       |  |  |         | 6,891  |  |  |  | 1,440  |  |  |  | 1998 |  |  |  | 5-40 | 
|Dulles Commerce Center             |  |                                            | 1  |  |          |  | MD              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 849    |                |            |  | 3,038  |             |  |              | 279         |  |             |               | 849    |                 |      |  | 3,317       |  |  |         | 4,166  |  |  |  | 140    |  |  |  | 2005 |  |  |  | 5-40 | 
|Elmwood Distribution               |  |                                            | 5  |  |          |  | LA              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 4,163  |                |            |  | 12,488 |             |  |              | 3,825       |  |             |               | 4,163  |                 |      |  | 16,313      |  |  |         | 20,476 |  |  |  | 2,752  |  |  |  | 1998 |  |  |  | 5-40 | 
|Frankfurt Logistic Center          |  |                                            | 1  |  |          |  | Germany         |      |  |                         | IND             |  |             |      | 12,193 |                                  |              |  |       |                |            |  | 18,867 |             |  |              |            |  |             |               |       |                 |      |  | 18,867      |  |  |         | 18,867 |  |  |  | 982    |  |  |  | 2003 |  |  |  | 5-40 | 
|Gateway Commerce Center            |  |                                            | 5  |  |          |  | MD              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 4,083  |                |            |  | 12,336 |             |  |              | 1,987       |  |             |               | 4,083  |                 |      |  | 14,323      |  |  |         | 18,406 |  |  |  | 3,117  |  |  |  | 1999 |  |  |  | 5-40 | 
|Greenwood Industrial               |  |                                            | 3  |  |          |  | MD              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 4,729  |                |            |  | 14,188 |             |  |              | 3,044       |  |             |               | 4,729  |                 |      |  | 17,232      |  |  |         | 21,961 |  |  |  | 3,955  |  |  |  | 1998 |  |  |  | 5-40 | 
|IAH Logistics Center               |  |                                            | 1  |  |          |  | TX              |      |  |                         | IND             |  |             |      | 17,172 |                                  |              |  | 6,582  |                |            |  | 21,252 |             |  |              | 10          |  |             |               | 6,583  |                 |      |  | 21,261      |  |  |         | 27,844 |  |  |  | 1,020  |  |  |  | 2004 |  |  |  | 5-40 | 
|Janitrol                           |  |                                            | 1  |  |          |  | OH              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 1,797  |                |            |  | 5,390  |             |  |              | 474         |  |             |               | 1,797  |                 |      |  | 5,864       |  |  |         | 7,661  |  |  |  | 1,298  |  |  |  | 1997 |  |  |  | 5-40 | 
|Koolhovenlaan 1&2                  |  |                                            | 2  |  |          |  | The Netherlands |      |  |                         | IND             |  |             |      | 7,174  |                                  |              |  | 4,085  |                |            |  | 6,931  |             |  |              |            |  |             |               | 4,085  |                 |      |  | 6,931       |  |  |         | 11,016 |  |  |  | 151    |  |  |  | 2005 |  |  |  | 5-40 | 
|Meadowridge Industrial             |  |                                            | 3  |  |          |  | MD              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 3,716  |                |            |  | 11,146 |             |  |              | 686         |  |             |               | 3,715  |                 |      |  | 11,833      |  |  |         | 15,548 |  |  |  | 2,422  |  |  |  | 1998 |  |  |  | 5-40 | 
|Mendota Heights Gateway Common     |  |                                            | 1  |  |          |  | MN              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 1,367  |                |            |  | 4,565  |             |  |              | 2,647       |  |             |               | 1,367  |                 |      |  | 7,212       |  |  |         | 8,579  |  |  |  | 2,885  |  |  |  | 1998 |  |  |  | 5-40 | 
|MET PHASE 1 95, LTD                |  |                                            | 5  |  |          |  | TX              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 10,968 |                |            |  | 32,944 |             |  |              | 4,540       |  |             |               | 10,968 |                 |      |  | 37,484      |  |  |         | 48,452 |  |  |  | 8,010  |  |  |  | 1997 |  |  |  | 5-40 | 
|Minneapolis Distribution Port      |  |                                            | 3  |  |          |  | MN              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 4,052  |                |            |  | 13,374 |             |  |              | 3,977       |  |             |               | 4,051  |                 |      |  | 17,352      |  |  |         | 21,403 |  |  |  | 4,224  |  |  |  | 1997 |  |  |  | 5-40 | 
|Minneapolis Industrial Port IV     |  |                                            | 4  |  |          |  | MN              |      |  |                         | IND             |  |             |      | 7,068  |                                  |              |  | 4,938  |                |            |  | 14,853 |             |  |              | 2,753       |  |             |               | 4,937  |                 |      |  | 17,607      |  |  |         | 22,544 |  |  |  | 4,904  |  |  |  | 1997 |  |  |  | 5-40 | 
|Oakland Ridge Ind Ctr I, II, and V |  |                                            | 6  |  |          |  | MD              |      |  |                         | IND             |  |             |      | 4,108  |                                  |              |  | 3,297  |                |            |  | 11,906 |             |  |              | 3,180       |  |             |               | 3,297  |                 |      |  | 15,086      |  |  |         | 18,383 |  |  |  | 4,933  |  |  |  | 1999 |  |  |  | 5-40 | 
|Paris Nord Distribution I          |  |                                            | 1  |  |          |  | France          |      |  |                         | IND             |  |             |      |       |                                  |              |  | 2,864  |                |            |  | 4,723  |             |  |              | 1,564       |  |             |               | 3,361  |                 |      |  | 5,790       |  |  |         | 9,151  |  |  |  | 469    |  |  |  | 2002 |  |  |  | 5-40 | 
|Paris Nord Distribution II         |  |                                            | 1  |  |          |  | France          |      |  |                         | IND             |  |             |      |       |                                  |              |  | 1,697  |                |            |  | 5,127  |             |  |              | 2,924       |  |             |               | 1,967  |                 |      |  | 7,781       |  |  |         | 9,748  |  |  |  | 765    |  |  |  | 2002 |  |  |  | 5-40 | 
|Patriot Dist. Center               |  |                                            | 1  |  |          |  | MA              |      |  |                         | IND             |  |             |      | 10,016 |                                  |              |  | 4,164  |                |            |  | 22,156 |             |  |              |            |  |             |               | 4,164  |                 |      |  | 22,156      |  |  |         | 26,320 |  |  |  | 765    |  |  |  | 2005 |  |  |  | 5-40 | 
|Patuxent Range Road                |  |                                            | 2  |  |          |  | MD              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 1,696  |                |            |  | 5,127  |             |  |              | 1,098       |  |             |               | 1,696  |                 |      |  | 6,225       |  |  |         | 7,921  |  |  |  | 1,543  |  |  |  | 1997 |  |  |  | 5-40 | 
|Penn James Warehouse               |  |                                            | 2  |  |          |  | MN              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 1,991  |                |            |  | 6,013  |             |  |              | 1,715       |  |             |               | 1,991  |                 |      |  | 7,728       |  |  |         | 9,719  |  |  |  | 2,022  |  |  |  | 1996 |  |  |  | 5-40 | 
|Port of Hamburg                    |  |                                            | 3  |  |          |  | Hamburg         |      |  |                         | IND             |  |             |      | 17,746 |                                  |              |  |       |                |            |  | 34,218 |             |  |              | 2,173       |  |             |               |       |                 |      |  | 36,391      |  |  |         | 36,391 |  |  |  |       |  |  |  | 2005 |  |  |  | 5-40 | 
|Port of Rotterdam                  |  |                                            | 1  |  |          |  | The Netherlands |      |  |                         | IND             |  |             |      |       |                                  |              |  |       |                |            |  | 5,450  |             |  |              |            |  |             |               |       |                 |      |  | 5,450       |  |  |         | 5,450  |  |  |  | 47     |  |  |  | 2005 |  |  |  | 5-40 | 
|Presidents Drive                   |  |                                            | 6  |  |          |  | FL              |      |  |                         | IND             |  |             |      |       |                                  |              |  | 5,770  |                |            |  | 17,656 |             |  |              | 3,879       |  |             |               | 5,771  |                 |      |  | 21,534      |  |  |         | 27,305 |  |  |  | 5,264  |  |  |  | 1998 |  |  |  | 5-40 | 

S-7



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##### Table of Contents





AMB PROPERTY CORPORATION




SCHEDULE III


CONSOLIDATED REAL ESTATE AND ACCUMULATED DEPRECIATION


As of December 31, 2005


|                               |  |                                            |     |  |          |  |    |      |  |                         |                 |  |             |      |           |                                  |              |   |           |                |            |   |           |             |  |              |             |  |             |               |           |                 |      |   |             |  |  |         |           |  |  |   |         |  |  |  |      |  |  |  |      | 
|------------------------------ |  | ------------------------------------------ | --- |  | -------- |  | -- | ---- |  | ----------------------- | --------------- |  | ----------- | ---- | --------- | -------------------------------- | ------------ | - | --------- | -------------- | ---------- | - | --------- | ----------- |  | ------------ | ----------- |  | ----------- | ------------- | --------- | --------------- | ---- | - | ----------- |  |  | ------- | --------- |  |  | - | ------- |  |  |  | ---- |  |  |  | ---- | 
|                               |  |                                            |     |  |          |  |    |      |  | Initial Cost to Company |                 |  | Costs       |      |           | Gross Amount Carried at 12/31/05 |              |   |           |                |            |   |          
|                               |  |                                            |     |  |          |  |    |      |  |                         |                 |  | Capitalized |      |           |                                  |              |   |           |                | Year of    |   |           | Depreciable | 
|                               |  | No of                                      |     |  |          |  |    |      |  |                         |                 |  | Building &  |      |           | Subsequent                       |              |   |           |                | Building & |   |           | Total       |  |              | Accumulated |  |             | Construction/ |           |                 | Life |  
|Property                       |  | Bldgs                                      |     |  | Location |  |    | Type |  |                         | Encumbrances(3) |  |             | Land |           |                                  | Improvements |   |           | to Acquisition |            |   | Land      |             |  | Improvements |             |  | Costs(1)(2) |               |           | Depreciation(4) |      |   | Acquisition |  |  | (Years) |          
|                               |  |                                            |     |  |          |  |    |      |  |                         |                 |  |             |      |           |                                  |              |   |           |                |            |   |           |             |  |              |             |  |             |               |           |                 |      |   |             |  |  |         |          
|                               |  | (In thousands, except number of buildings) |    
|Preston Court                  |  |                                            | 1   |  |          |  | MD |      |  |                         | IND             |  |             |      |          |                                  |              |   | 2,313     |                |            |   | 7,192     |             |  |              | 623         |  |             |               | 2,313     |                 |      |   | 7,815       |  |  |         | 10,128    |  |  |   | 1,818   |  |  |  | 1997 |  |  |  | 5-40 | 
|Round Lake Business Center     |  |                                            | 1   |  |          |  | MN |      |  |                         | IND             |  |             |      |          |                                  |              |   | 875       |                |            |   | 2,625     |             |  |              | 761         |  |             |               | 875       |                 |      |   | 3,386       |  |  |         | 4,261     |  |  |   | 930     |  |  |  | 1998 |  |  |  | 5-40 | 
|Sand Lake Service Center       |  |                                            | 6   |  |          |  | FL |      |  |                         | IND             |  |             |      |          |                                  |              |   | 3,483     |                |            |   | 10,585    |             |  |              | 4,557       |  |             |               | 3,483     |                 |      |   | 15,142      |  |  |         | 18,625    |  |  |   | 4,103   |  |  |  | 1998 |  |  |  | 5-40 | 
|Scripps Sorrento               |  |                                            | 1   |  |          |  | CA |      |  |                         | IND             |  |             |      |          |                                  |              |   | 1,110     |                |            |   | 3,330     |             |  |              | 121         |  |             |               | 1,110     |                 |      |   | 3,451       |  |  |         | 4,561     |  |  |   | 694     |  |  |  | 1998 |  |  |  | 5-40 | 
|Somerville Distribution Center |  |                                            | 1   |  |          |  | MA |      |  |                         | IND             |  |             |      |          |                                  |              |   | 5,221     |                |            |   | 13,207    |             |  |              | 1,249       |  |             |               | 5,221     |                 |      |   | 14,456      |  |  |         | 19,677    |  |  |   | 333     |  |  |  | 2005 |  |  |  | 5-40 | 
|South Point Business Park      |  |                                            | 5   |  |          |  | NC |      |  |                         | IND             |  |             |      | 7,992     |                                  |              |   | 3,130     |                |            |   | 10,452    |             |  |              | 2,199       |  |             |               | 3,130     |                 |      |   | 12,651      |  |  |         | 15,781    |  |  |   | 2,905   |  |  |  | 1998 |  |  |  | 5-40 | 
|TechRidge Bldg 4.2 (Phase IVA) |  |                                            | 1   |  |          |  | TX |      |  |                         | IND             |  |             |      | 7,500     |                                  |              |   | 3,465     |                |            |   | 10,735    |             |  |              | 126         |  |             |               | 3,464     |                 |      |   | 10,862      |  |  |         | 14,326    |  |  |   | 16      |  |  |  | 2005 |  |  |  | 5-40 | 
|TechRidge Phase II             |  |                                            | 1   |  |          |  | TX |      |  |                         | IND             |  |             |      | 10,834    |                                  |              |   | 7,261     |                |            |   | 13,484    |             |  |              | 234         |  |             |               | 7,261     |                 |      |   | 13,718      |  |  |         | 20,979    |  |  |   | 1,632   |  |  |  | 2001 |  |  |  | 5-40 | 
|TechRidge Phase IIIA Bldg. 4.1 |  |                                            | 1   |  |          |  | TX |      |  |                         | IND             |  |             |      | 9,200     |                                  |              |   | 3,143     |                |            |   | 12,215    |             |  |              |            |  |             |               | 3,143     |                 |      |   | 12,215      |  |  |         | 15,358    |  |  |   | 830     |  |  |  | 2004 |  |  |  | 5-40 | 
|Twin Cities                    |  |                                            | 2   |  |          |  | MN |      |  |                         | IND             |  |             |      |          |                                  |              |   | 4,873     |                |            |   | 14,638    |             |  |              | 7,587       |  |             |               | 4,873     |                 |      |   | 22,225      |  |  |         | 27,098    |  |  |   | 6,341   |  |  |  | 1997 |  |  |  | 5-40 | 
|Willow Lake Business Park      |  |                                            | 10  |  |          |  | TN |      |  |                         | IND             |  |             |      | 1,671     |                                  |              |   | 12,415    |                |            |   | 35,987    |             |  |              | 15,486      |  |             |               | 12,409    |                 |      |   | 51,479      |  |  |         | 63,888    |  |  |   | 15,489  |  |  |  | 1998 |  |  |  | 5-40 | 
|Other Retail Markets           |  |                                            |     |  |          |  |    |      |  |                         |                 |  |             |      |           |                                  |              |   |           |                |            |   |           |             |  |              |             |  |             |               |           |                 |      |   |             |  |  |         |           |  |  |   |         |  |  |  |      |  |  |  |      | 
|AMB Garden City Industrial     |  |                                            | 1   |  |          |  | GA |      |  |                         | RET             |  |             |      |          |                                  |              |   | 441       |                |            |   | 2,604     |             |  |              | 134         |  |             |               | 462       |                 |      |   | 2,717       |  |  |         | 3,179     |  |  |   | 111     |  |  |  | 2004 |  |  |  | 5-40 | 
|Beacon Centre  Headlands      |  |                                            | 1   |  |          |  | FL |      |  |                         | RET             |  |             |      |          |                                  |              |   | 2,523     |                |            |   | 7,669     |             |  |              | 1,094       |  |             |               | 2,523     |                 |      |   | 8,763       |  |  |         | 11,286    |  |  |   | 1,305   |  |  |  | 2000 |  |  |  | 5-40 | 
|                               |  |                                            |     |  |          |  |    |      |  |                         |                 |  |             |      |           |                                  |              |   |           |                |            |   |           |             |  |              |             |  |             |               |           |                 |      |   |             |  |  |         |          
|Total                          |  |                                            | 875 |  |          |  |    |      |  |                         |                 |  |             | $    | 1,598,919 |                                  |              | $ | 1,521,035 |                |            | $ | 3,604,054 |             |  | $            | 675,699     |  |             | $             | 1,527,072 |                 |      | $ | 4,273,716   |  |  | $       | 5,800,788 |  |  | $ | 693,324 |  |  |  |      |  |  |  |      | 
|                               |  |                                            |     |  |          |  |    |      |  |                         |                 |  |             |      |           |                                  |              |   |           |                |            |   |           |             |  |              |             |  |             |               |           |                 |      |   |             |  |  |         |          

S-8



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##### Table of Contents






| |    |   |  |                                                                                                                                |  |   |           |   |  |      |           |   |  |   |           |  
| | -- | - |  | ------------------------------------------------------------------------------------------------------------------------------ |  | - | --------- | - |  | ---- | --------- | - |  | - | --------- | -
| |    |   |  | 2005                                                                                                                           |  |   | 2004      |   |  | 2003 |          
| |    |   |  |                                                                                                                                |  |   |           |   |  |      |          
| | (1 | ) |  | Reconciliation of total cost to consolidated balance sheet
    caption as of December 31, 2005:                               
| |    |   |  | Total per Schedule III(5)                                                                                                      |  | $ | 5,800,788 |   |  | $    | 5,814,767 |   |  | $ | 5,292,079 |  
| |    |   |  | Construction in process                                                                                                        |  |   | 997,506   |   |  |      | 711,377   |   |  |   | 199,628   |  
| |    |   |  |                                                                                                                                |  |   |           |   |  |      |           |  
| |    |   |  | Total investments in properties                                                                                                |  | $ | 6,798,294 |   |  | $    | 6,526,144 |   |  | $ | 5,491,707 |  
| |    |   |  |                                                                                                                                |  |   |           |   |  |      |           |  
| | (2 | ) |  | Aggregate cost for federal income tax purposes of investments in
    real estate                                               |  | $ | 6,468,360 |   |  | $    | 6,263,171 |   |  | $ | 5,201,590 |  
| |    |   |  |                                                                                                                                |  |   |           |   |  |      |           |  
| | (3 | ) |  | Reconciliation of total debt to consolidated balance sheet
    caption as of December 31, 2005:                               
| |    |   |  | Total per Schedule III                                                                                                         |  | $ | 1,598,919 |   |  | $    | 1,828,864 |   |  | $ | 1,353,101 |  
| |    |   |  | Debt on properties held for divestiture                                                                                        |  |   |          |   |  |      | 27,481    |   |  |   |          |  
| |    |   |  | Debt on development properties                                                                                                 |  |   | 301,623   |   |  |      | 25,413    |   |  |   |          |  
| |    |   |  | Unamortized premiums                                                                                                           |  |   | 11,984    |   |  |      | 10,766    |   |  |   | 10,789    |  
| |    |   |  |                                                                                                                                |  |   |           |   |  |      |           |  
| |    |   |  | Total debt                                                                                                                     |  | $ | 1,912,526 |   |  | $    | 1,892,524 |   |  | $ | 1,363,890 |  
| |    |   |  |                                                                                                                                |  |   |           |   |  |      |           |  
| | (4 | ) |  | Reconciliation of accumulated depreciation to consolidated
    balance sheet caption as of December 31, 2005:                 
| |    |   |  | Total per Schedule III                                                                                                         |  | $ | 693,324   |   |  | $    | 614,084   |   |  | $ | 485,559   |  
| |    |   |  | Accumulated depreciation on properties under renovation                                                                        |  |   | 4,064     |   |  |      | 1,562     |   |  |   |          |  
| |    |   |  |                                                                                                                                |  |   |           |   |  |      |           |  
| |    |   |  | Total accumulated depreciation                                                                                                 |  | $ | 697,388   |   |  | $    | 615,646   |   |  | $ | 485,559   |  
| |    |   |  |                                                                                                                                |  |   |           |   |  |      |           |  
| | (5 | ) |  | A summary of activity for real estate and accumulated
    depreciation for the year ended December 31, 2005 is as
    follows:
| |    |   |  | Investments in Properties:                                                                                                     |  |   |           |   |  |      |           |   |  |   |           |  
| |    |   |  | Balance at beginning of year                                                                                                   |  | $ | 6,526,144 |   |  | $    | 5,491,707 |   |  | $ | 4,922,782 |  
| |    |   |  | Acquisition of properties                                                                                                      |  |   | 505,127   |   |  |      | 687,072   |   |  |   | 523,994   |  
| |    |   |  | Improvements, including development properties                                                                                 |  |   | 496,623   |   |  |      | 618,188   |   |  |   | 264,272   |  
| |    |   |  | Transfer basis adjustment                                                                                                      |  |   |          |   |  |      |          |   |  |   | 23,388    |  
| |    |   |  | Asset impairment                                                                                                               |  |   |          |   |  |      |          |   |  |   | (5,251    | )
| |    |   |  | Divestiture of properties                                                                                                      |  |   | (770,869  | ) |  |      | (185,564  | ) |  |   | (339,605  | )
| |    |   |  | Adjustment for properties held for divestiture                                                                                 |  |   | 41,269    |   |  |      | (85,259   | ) |  |   | 102,127   |  
| |    |   |  |                                                                                                                                |  |   |           |   |  |      |           |  
| |    |   |  | Balance at end of year                                                                                                         |  | $ | 6,798,294 |   |  | $    | 6,526,144 |   |  | $ | 5,491,707 |  
| |    |   |  |                                                                                                                                |  |   |           |   |  |      |           |  
| |    |   |  | Accumulated Depreciation:                                                                                                      |  |   |           |   |  |      |           |   |  |   |           |  
| |    |   |  | Balance at beginning of year                                                                                                   |  | $ | 615,646   |   |  | $    | 485,559   |   |  | $ | 368,205   |  
| |    |   |  | Depreciation expense, including discontinued
    operations                                                                    |  |   | 168,869   |   |  |      | 163,316   |   |  |   | 139,284   |  
| |    |   |  | Properties divested                                                                                                            |  |   | (95,371   | ) |  |      | (23,559   | ) |  |   | (27,937   | )
| |    |   |  | Adjustment for properties held for divestiture                                                                                 |  |   | 8,244     |   |  |      | (9,670    | ) |  |   | 6,007     |  
| |    |   |  |                                                                                                                                |  |   |           |   |  |      |           |  
| |    |   |  | Balance at end of year                                                                                                         |  | $ | 697,388   |   |  | $    | 615,646   |   |  | $ | 485,559   |  
| |    |   |  |                                                                                                                                |  |   |           |   |  |      |           |  

S-9



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##### Table of Contents






EXHIBIT INDEX




|        |   |             |  |                                                                                                                                                                                                                                                                                     
|------- | - | ----------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |   |            
|Number  |   | Description
|        |   |            
|        | 3 | .1          |  | Tenth Amended and Restated Agreement of Limited Partnership of
    AMB Property, L.P., dated as of November 26, 2003
    (incorporated by reference to Exhibit 3.2 of AMB Property,
    L.P.s Current Report on Form 8-K filed on
    November 26, 2003).                          
|        | 4 | .1          |  | $30,000,000 7.925% Fixed Rate Note No. 1 dated
    August 18, 2000, attaching the Parent Guarantee dated
    August 18, 2000 (incorporated by reference to
    Exhibit 4.5 of AMB Property, L.P.s Annual Report on
    Form 10-K for the year ended December 31, 2000).            
|       
|        | 4 | .2          |  | $25,000,000,000 7.925% Fixed Rate Note No. 2 dated
    September 12, 2000, attaching the Parent Guarantee dated
    September 12, 2000 (incorporated by reference to
    Exhibit 4.6 of AMB Property, L.P.s Annual Report on
    Form 10-K for the year ended December 31, 2000).  
|       
|        | 4 | .3          |  | $50,000,000 8.00% Fixed Rate Note No. 3 dated
    October 26, 2000, attaching the Parent Guarantee dated
    October 26, 2000 (incorporated by reference to
    Exhibit 4.7 of AMB Property, L.P.s Annual Report on
    Form 10-K for the year ended December 31, 2000).           
|       
|        | 4 | .4          |  | $25,000,000 8.000% Fixed Rate Note No. 4 dated
    October 26, 2000, attaching the Parent Guarantee, dated
    October 26, 2000 (incorporated by reference to
    Exhibit 4.8 of AMB Property, L.P.s Form 10-K for
    the year ended December 31, 2000).                          
|       
|        | 4 | .5          |  | $50,000,000 7.20% Fixed Rate Note No. 5 dated
    December 19, 2000, attaching the Parent Guarantee dated
    December 19, 2000 (incorporated by reference to
    Exhibit 4.1 of AMB Property, L.P.s Current Report on
    Form 8-K filed on January 8, 2001).                     
|       
|        | 4 | .6          |  | $50,000,000 7.20% Fixed Rate Note No. 6 dated
    December 19, 2000, attaching the Parent Guarantee dated
    December 19, 2000 (incorporated by reference to
    Exhibit 4.2 of AMB Property, L.P.s Current Report on
    Form 8-K filed on January 8, 2001).                     
|       
|        | 4 | .7          |  | $50,000,000 7.20% Fixed Rate Note No. 7 dated
    December 19, 2000, attaching the Parent Guarantee dated
    December 19, 2000 (incorporated by reference to
    Exhibit 4.3 of AMB Property, L.P.s Current Report on
    Form 8-K filed on January 8, 2001).                     
|       
|        | 4 | .8          |  | Specimen of 7.10% Notes due 2008 (included in the First
    Supplemental Indenture incorporated by reference to
    Exhibit 4.2 of AMB Property, L.P.s Registration
    Statement on Form S-11 (No. 333-49163)).                                                                   
|       
|        | 4 | .9          |  | Specimen of 7.50% Notes due 2018 (included in the Second
    Supplemental Indenture incorporated by reference to
    Exhibit 4.3 of AMB Property, L.P.s Registration
    Statement on Form S-11 (No. 333-49163)).                                                                  
|       
|        | 4 | .10         |  | Specimen of 6.90% Reset Put Securities due 2015 (included in the
    Third Supplemental Indenture incorporated by reference to
    Exhibit 4.4 of AMB Property, L.P.s Registration
    Statement on Form S-11 (No. 333-49163)).                                                    
|       
|        | 4 | .11         |  | $25,000,000 6.90% Fixed Rate Note No. 8 dated
    January 9, 2001, attaching the Parent Guarantee dated
    January 9, 2001 (incorporated by reference to
    Exhibit 4.1 of AMB Property, L.P.s Current Report on
    Form 8-K filed on January 31, 2001).                        
|       
|        | 4 | .12         |  | $50,000,000 7.00% Fixed Rate Note No. 9 dated
    March 7, 2001, attaching the Parent Guarantee dated
    March 7, 2001 (incorporated by reference to
    Exhibit 4.1 of AMB Property, L.P.s Current Report on
    Form 8-K filed on March 16, 2001).                              
|       
|        | 4 | .13         |  | $25,000,000 6.75% Fixed Rate Note No. 10 dated
    September 6, 2001, attaching the Parent Guarantee dated
    September 6, 2001 (incorporated by reference to
    Exhibit 4.1 of AMB Property, L.P.s Current Report on
    Form 8-K filed on September 18, 2001).                 
|       
|        | 4 | .14         |  | $20,000,000 5.90% Fixed Rate Note No. 11 dated
    January 17, 2002, attaching the Parent Guarantee dated
    January 17, 2002 (incorporated by reference to
    Exhibit 4.1 of AMB Property, L.P.s Current Report on
    Form 8-K filed on January 23, 2002).                     
|       
|        | 4 | .15         |  | $75,000,000 5.53% Fixed Rate Note No. B-1 dated
    November 10, 2003, attaching the Parent Guarantee dated
    November 10, 2003 (incorporated by reference to
    Exhibit 4.1 of AMB Property, L.P.s Quarterly Report
    on Form 10-Q for the quarter ended September 30, 2003).



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##### Table of Contents



|        |     |             |  |                                                                                                                                                                                                                                                                                                                                                                                                    
|------- | --- | ----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |     |            
|Number  |     | Description
|        |     |            
|       
|        | 4   | .16         |  | $50,000,000 Floating Rate Note No. B-1 dated
    November 21, 2003, attaching the Parent Guarantee dated
    November 21, 2003 (incorporated by reference to
    Exhibit 4.1 of AMB Property, L.P.s Current Report on
    Form 8-K filed on November 21, 2003).                                                                                                                                   
|       
|        | 4   | .17         |  | $100,000,000 Fixed Rate Note No. B-2 dated
    March 16, 2004, attaching the Parent Guarantee dated
    March 16, 2004 (incorporated by reference to
    Exhibit 4.1 of AMB Property, L.P.s Current Report on
    Form 8-K filed on March 17, 2004).                                                                                                                                              
|       
|        | 4   | .18         |  | $175,000,000 Fixed Rate Note No. B-3, attaching the
    Parent Guarantee (incorporated by reference to Exhibit 10.1
    of AMB Property, L.P.s Current Report on Form 8-K
    filed on November 18, 2005).                                                                                                                                                                                        
|       
|        | 4   | .19         |  | Indenture dated as of June 30, 1998, by and among AMB
    Property, L.P., AMB Property Corporation and State Street Bank
    and Trust Company of California, N.A., as trustee (incorporated
    by reference to Exhibit 4.1 of AMB Property, L.P.s
    Registration Statement on Form S-11 (No. 333-49163)).                                                                                     
|       
|        | 4   | .20         |  | First Supplemental Indenture dated as of June 30, 1998 by
    and among AMB Property, L.P., AMB Property Corporation and State
    Street Bank and Trust Company of California, N.A., as trustee
    (incorporated by reference to Exhibit 4.2 of AMB Property,
    L.P.s Registration Statement on Form S-11
    (No. 333-49163)).                                                               
|       
|        | 4   | .21         |  | Second Supplemental Indenture dated as of June 30, 1998, by
    and among AMB Property, L.P., AMB Property Corporation and State
    Street Bank and Trust Company of California, N.A., as trustee
    (incorporated by reference to Exhibit 4.3 of AMB Property,
    L.P.s Registration Statement on Form S-11
    (No. 333-49163)).                                                             
|       
|        | 4   | .22         |  | Third Supplemental Indenture dated as of June 30, 1998, by
    and among AMB Property, L.P., AMB Property Corporation and State
    Street Bank and Trust Company of California, N.A., as trustee
    (incorporated by reference to Exhibit 4.4 of AMB Property,
    L.P.s Registration Statement on Form S-11
    (No. 333-49163)).                                                              
|       
|        | 4   | .23         |  | Fourth Supplemental Indenture, by and among AMB Property, L.P.,
    AMB Property Corporation and State Street Bank and Trust Company
    of California, N.A., as trustee (incorporated by reference to
    Exhibit 4.1 of AMB Property, L.P.s Current Report on
    Form 8-K/ A filed on November 9, 2000).                                                                                       
|       
|        | 4   | .24         |  | Fifth Supplemental Indenture dated as of May 7, 2002, by
    and among AMB Property, L.P., AMB Property Corporation and State
    Street Bank and Trust Company of California, N.A., as trustee
    (incorporated by reference to Exhibit 4.15 of AMB Property,
    L.P.s Annual Report on Form 10-K for the year ended
    December 31, 2002).                                                   
|       
|        | 4   | .25         |  | Sixth Supplemental Indenture dated as of July 11, 2005, by
    and among AMB Property, L.P., AMB Property Corporation and
    U.S. Bank National Association, as successor-in-interest to
    State Street Bank and Trust Company of California, N.A., as
    trustee (incorporated by reference to Exhibit 4.1 of AMB
    Property, L.P.s Current Report on Form 8-K filed on
    July 13, 2005).
|       
|        | 4   | .26         |  | 5.094% Notes Due 2015, attaching Parent Guarantee (incorporated
    by reference to Exhibit 4.2 of AMB Property, L.P.s
    Current Report on Form 8-K filed on July 13, 2005).                                                                                                                                                                                                                    
|       
|        | 4   | .27         |  | Registration Rights Agreement dated as of July 8, 2005 by
    and between AMB Property, L.P. and Teachers Insurance and
    Annuity Association of America (incorporated by reference to
    Exhibit 4.3 of AMB Property, L.P.s Current Report on
    Form 8-K filed on July 13, 2005).                                                                                                           
|       
|        | *10 | .1          |  | Third Amended and Restated 1997 Stock Option and Incentive Plan
    of AMB Property Corporation and AMB Property, L.P. (incorporated
    by reference to Exhibit 10.22 of AMB Property, L.P.s
    Annual Report on Form 10-K for the year ended
    December 31, 2001).                                                                                                                           
|       
|        | *10 | .2          |  | Amendment No. 1 to the Third Amended and Restated 1997
    Stock Option and Incentive Plan of AMB Property Corporation and
    AMB Property, L.P. (incorporated by reference to
    Exhibit 10.23 of AMB Property, L.P.s Annual Report on
    Form 10-K for the year ended December 31, 2001).                                                                                                    
|       
|        | *10 | .3          |  | Amendment No. 2 to the Third Amended and Restated 1997
    Stock Option and Incentive Plan of AMB Property Corporation and
    AMB Property, L.P., dated September 23, 2004 (incorporated
    by reference to Exhibit 10.3 of AMB Property, L.P.s
    Quarterly Report on Form 10-Q filed on November 9,
    2004).                                                                               
|       
|        | *10 | .4          |  | 2002 Stock Option and Incentive Plan of AMB Property Corporation
    and AMB Property, L.P. (incorporated by reference to
    Exhibit 10.21 of AMB Property, L.P.s Annual Report
    Form 10-K for the year ended December 31, 2001).                                                                                                                                                             



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##### Table of Contents



|        |     |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|------- | --- | ----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |     |            
|Number  |     | Description
|        |     |            
|       
|        | *10 | .5          |  | Amendment No. 1 to the 2002 Stock Option and Incentive Plan
    of AMB Property Corporation and AMB Property, L.P., dated
    September 23, 2004 (incorporated by reference to
    Exhibit 10.4 of AMB Property, L.P.s Quarterly Report
    on Form 10-Q filed on November 9, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|       
|        | *10 | .6          |  | Amended and Restated AMB Nonqualified Deferred Compensation Plan
    (incorporated by reference to Exhibit 4.17 of AMB Property,
    L.P.s Registration Statement on Form S-8
    (No. 333-100214)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|       
|        | *10 | .7          |  | Form of Amended and Restated Change of Control and
    Noncompetition Agreement by and between AMB Property, L.P. and
    executive officers (incorporated by reference to
    Exhibit 10.1 of AMB Property, L.P.s Current Report on
    Form 8-K filed on December 15, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|       
|        | 10  | .8          |  | Thirteenth Amended and Restated Agreement of Limited Partnership
    of AMB Property II, L.P., dated September 24, 2004
    (incorporated by reference to Exhibit 10.1 of AMB Property,
    L.P.s Current Report on Form 8-K filed on
    September 30, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|       
|        | 10  | .9          |  | Registration Rights Agreement dated November 14, 2003 by
    and among AMB Property II, L.P. and the unitholders whose
    names are set forth on the signature pages thereto (incorporated
    by reference to Exhibit 4.1 of AMB Property
    Corporations Current Report on Form 8-K filed on
    November 17, 2003).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|       
|        | 10  | .10         |  | Note Purchase Agreement dated as of November 5, 2003,
    by and between AMB Property, L.P. and Teachers Insurance and
    Annuity Association of America (incorporated by reference to
    Exhibit 99.1 of AMB Property, L.P.s Current Report on
    Form 8-K filed on November 6, 2003).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|       
|        | 10  | .11         |  | Second Amended and Restated Revolving Credit Agreement, dated as
    of June 1, 2004 by and among AMB Property, L.P., the banks
    listed therein, JPMorgan Chase Bank, as administrative agent,
    J.P. Morgan Europe Limited, as administrative agent for
    alternate currencies, Bank of America, N.A., as syndication
    agent, J.P. Morgan Securities Inc. and Banc of America
    Securities LLC, as joint lead arrangers and joint bookrunners,
    Commerzbank Aktiengesellschaft New York and Grand Cayman
    Branches, PNC Bank National Association and Wachovia Bank, N.A.,
    as documentation agents, KeyBank National Association, The Bank
    of Nova Scotia, acting through its San Francisco Agency,
    and Wells Fargo Bank, N.A., as managing agents, and ING Real
    Estate Finance (USA) LLC, Southtrust Bank and Union Bank of
    California, N.A., as co-agents (incorporated by reference to
    Exhibit 10.1 of AMB Property, L.P.s Current Report on
    Form 8-K filed on June 10, 2004).
|       
|        | 10  | .12         |  | Guaranty of Payment, dated as of June 1, 2004 by AMB
    Property Corporation for the benefit of JPMorgan Chase Bank, as
    administrative agent, and J.P. Morgan Europe Limited, as
    administrative agent for alternate currencies, for the banks
    listed on the signature page to the Second Amended and Restated
    Revolving Credit Agreement (incorporated by reference to
    Exhibit 10.2 of AMB Property, L.P.s Current Report on
    Form 8-K filed on June 10, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|       
|        | 10  | .13         |  | Qualified Borrower Guaranty, dated as of June 1, 2004 by
    AMB Property, L.P. for the benefit of JPMorgan Chase Bank and
    J.P. Morgan Europe Limited, as administrative agents for
    the banks listed on the signature page to the Second Amended and
    Restated Revolving Credit Agreement (incorporated by reference
    to Exhibit 10.3 of AMB Property, L.P.s Current Report
    on Form 8-K filed on June 10, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|       
|        | 10  | .14         |  | Revolving Credit Agreement, dated as of June 29, 2004, by
    and among AMB Japan Finance Y.K., as initial borrower, AMB
    Property, L.P., as guarantor, AMB Property Corporation, as
    guarantor, the banks listed on the signature pages thereof, and
    Sumitomo Mitsui Banking Corporation, as administrative agent and
    sole lead arranger and bookmanager (incorporated by reference to
    Exhibit 10.1 of AMB Property Corporations Current
    Report on Form 8-K filed on July 2, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|       
|        | 10  | .15         |  | Guaranty of Payment, dated as of June 29, 2004 by AMB
    Property, L.P. and AMB Property Corporation for the benefit of
    Sumitomo Mitsui Banking Corporation, as administrative agent and
    sole lead arranger and bookmanager, for the banks that are from
    time to time parties to the Revolving Credit Agreement
    (incorporated by reference to Exhibit 10.2 of AMB Property
    Corporations Current Report on Form 8-K filed on
    July 2, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|       
|        | 10  | .16         |  | Amendment No. 1 to Revolving Credit Agreement, dated as of
    June 9, 2005, by and among, AMB Japan Finance Y.K., AMB
    Amagasaki TMK, AMB Narita 1-1 TMK and AMB Narita 2 TMK, as
    borrowers, AMB Property, L.P., as guarantor, AMB Property
    Corporation, as guarantor, the banks listed on the signature
    pages thereof, and Sumitomo Mitsui Banking Corporation, as
    administrative agent and sole lead arranger and bookmanager.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             



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##### Table of Contents



|        |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|------- | -- | ----------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |            
|Number  |    | Description
|        |    |            
|       
|        | 10 | .17         |  | Amendment No. 2 to Revolving Credit Agreement, dated as of
    December 8, 2005, by and among, AMB Japan Finance Y.K., as
    initial borrower, AMB Property, L.P., as guarantor, AMB Property
    Corporation, as guarantor, the banks listed on the signature
    pages thereof, and Sumitomo Mitsui Banking Corporation, as
    administrative agent and sole lead arranger and bookmanager.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|       
|        | 10 | .18         |  | Credit Facility Agreement, dated as of November 24, 2004,
    by and among AMB Tokai TMK, as borrower, AMB Property, L.P., as
    guarantor, AMB Property Corporation, as guarantor, the banks
    listed on the signature pages thereof, and Sumitomo Mitsui
    Banking Corporation, as administrative agents and sole lead
    arranger and bookmanager (incorporated by reference to
    Exhibit 10.1 of AMB Property Corporations Current
    Report on Form 8-K filed on December 1, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|       
|        | 10 | .19         |  | Guaranty of Payment, dated as of November 24, 2004 by AMB
    Property, L.P. and AMB Property Corporation for the benefit of
    Sumitomo Mitsui Banking Corporation, as administrative agent and
    sole lead arranger and bookmanager, for the banks that are from
    time to time parties to the Credit Facility Agreement
    (incorporated by reference to Exhibit 10.2 of AMB Property
    Corporations Current Report on Form 8-K filed on
    December 1, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|       
|        | 10 | .20         |  | Agreement of Sale, made as of October 6, 2003, by and
    between AMB Property, L.P., International Airport Centers L.L.C.
    and certain affiliated entities (incorporated by reference to
    Exhibit 99.3 of AMB Property, L.P.s Current Report on
    Form 8-K filed on November 6, 2003).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|       
|        | 10 | .21         |  | Third Amended and Restated Revolving Credit Agreement, dated as
    of February 16, 2006, by and among AMB Property, L.P., as
    guarantor, AMB Property Corporation, as guarantor, the banks
    listed on the signature pages thereto, Bank of America, N.A., as
    administrative agent, The Bank of Nova Scotia, as syndication
    agent, Societe Generale, as documentation agent, Banc of America
    Securities Asia Limited, as Hong Kong dollars agent, Bank of
    America, N.A., acting by its Canada branch, as reference bank,
    Bank of America, Singapore branch, as Singapore dollars agent,
    and each of the other lending institutions that becomes a lender
    thereunder (incorporated by reference to Exhibit 10.1 of
    AMB Property Corporations Current Report on Form 8-K
    filed on February 22, 2006).                                                                                                                                                                                                                                          
|       
|        | 10 | .22         |  | Amendment No. 1, dated May 12, 2005, to Second Amended
    and Restated Credit Agreement by and among AMB Property, L.P.,
    AMB Property Corporation, the banks listed on the signature
    pages thereof, JPMorgan Chase Bank, N.A., as administrative
    agent, J.P. Morgan Europe Limited, as administrative agent, Bank
    of America, N.A., as syndication agent, J.P. Morgan Securities
    Inc. and Banc of America Securities LLC as joint lead arrangers
    and joint bookrunners, Commerzbank Aktiengesellschaft New York
    and Grand Cayman Branches, PNC Bank, National Association, and
    Wachovia Bank, N.A., as documentation agents, Keybank National
    Association, the Bank of Nova Scotia, acting through its San
    Francisco agency, and Wells Fargo Bank, N.A., as managing
    agents, and ING Real Estate Finance (USA) LLC, Southtrust Bank
    and Union Bank of California, N.A., as co-agents (incorporated
    by reference to Exhibit 10.1 of AMB Property, L.P.s
    Quarterly Report on Form 10-Q for the quarter ended
    June 30, 2005).
|       
|        | 10 | .23         |  | Exchange Agreement dated as of July 8, 2005, by and between
    AMB Property, L.P. and Teachers Insurance and Annuity
    Association of America (incorporated by reference to
    Exhibit 10.1 of AMB Property, L.P.s Current Report on
    Form 8-K filed on July 13, 2005).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|       
|        | 21 | .1          |  | Subsidiaries of AMB Property, L.P.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|       
|        | 23 | .1          |  | Consent of PricewaterhouseCoopers LLP.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|       
|        | 24 | .1          |  | Powers of Attorney (included in Part IV of this 10-K)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|       
|        | 31 | .1          |  | Rule 13a-14(a)/15d-14(a) Certifications dated
    March 13, 2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|        | 32 | .1          |  | 18 U.S.C. § 1350 Certifications dated
    March 13, 2006. The certifications in this exhibit are
    being furnished solely to accompany this report pursuant to
    18 U.S.C. § 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   






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|* | Management contract or compensatory plan or arrangement