##### Table of Contents



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 1934For the fiscal year ended
    December 31, 2006oro

TRANSITION REPORT PURSUANT TO
    SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF
    1934   Commission file number
    001-14245
  AMB Property, L.P.
 (Exact name of registrant as
    specified in its charter)
  Delaware

94-3285362(State or Other Jurisdiction
    of
    Incorporation or Organization)

(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
  o þ
  o þ
  þ o
  Regulation S-K Form 10-K Form 10-K. o
  Rule 12b-2
  Large accelerated
    filer o     Accelerated
    filer o     Non-accelerated
    filer þ
  Rule 12b-2 o þ
    DOCUMENTS INCORPORATED BY
    REFERENCE




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TABLE OF CONTENTS  PART IItem 1. BusinessItem 1A. Risk FactorsItem 3. Legal ProceedingsItem 4. Submission of Matters to a Vote of Security HoldersPART IIItem 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity SecuritiesItem 6. Selected Financial DataItem 7. Managements Discussion and Analysis of Financial Condition and Results of OperationsCONSOLIDATED RESULTS OF OPERATIONSLIQUIDITY AND CAPITAL RESOURCESOFF-BALANCE SHEET ARRANGEMENTSItem 7A. Quantitative and Qualitative Disclosures About Market RiskItem 8. Financial Statements and Supplementary DataItem 9. Changes in and Disagreements With Accountants on Accounting and Financial DisclosureItem 9A. Controls and ProceduresItem 9B. Other InformationPART IIIItems 10, 11, 12, 13 and 14.PART IVItem 15. Exhibits and Financial Statement SchedulesPOWER OF ATTORNEYEXHIBIT 21.1EXHIBIT 23.1EXHIBIT 31.1EXHIBIT 32.1    Table of Contents   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 numerous 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 should not be read as
    guarantees of future performance or results, and will not
    necessarily be accurate indicators of whether, or the time at
    which, such performance or results will be achieved. 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;
    defaults on or 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, public
    opposition to these activities, as well as the risks associated
    with our expansion of and increased investment in our
    development business);
    risks of doing business internationally, including
    unfamiliarity with new markets and currency risks;
    risks of opening offices globally (including increasing
    headcount);
    a downturn in the U.S., California or the global economy or
    real estate conditions;
    risks of changing personnel and roles;
    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;
    risks associated with equity and debt securities financings
    and issuances (including the risk of dilution);
    changes in local, state and federal regulatory
    requirements;
    increases in real property tax rates;
    increases in interest rates and operating costs or greater
    than expected capital expenditures;
    environmental uncertainties; and
    our general partners failure to qualify and maintain
    its status as a real estate investment trust under the Internal
    Revenue Code of 1986, as amended. 2




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##### Table of Contents



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. All of our
    forward-looking statements, including those in this report, are
    qualified in their entirety by this statement. We assume no
    obligation to update or supplement forward-looking
    statements.
 3




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##### Table of Contents



PART I
 
  Item 1.
    Business  General
  ® ®
    day-to-day
      ® ® ® point-to-point.
    
    on an owned and managed basis, which include investments held on
    a consolidated basis or through unconsolidated joint ventures,
    we owned and managed 964 industrial buildings, principally
    warehouse 4




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distribution facilities, encompassing approximately
    100.7 million rentable square feet that were 96.1% leased;  
    on an owned and managed basis, which include investments held on
    a consolidated basis or through unconsolidated joint ventures,
    we had investments in 45 industrial development projects which
    are expected to total approximately 13.7 million rentable
    square feet upon completion;
    on a consolidated basis, we owned nine development projects,
    totaling approximately 2.7 million rentable square feet
    that are available for sale or contribution; and
    through other non-managed unconsolidated joint ventures, we had
    investments in 46 industrial operating properties, totaling
    approximately 7.4 million rentable square feet, and one
    industrial operating property, totaling approximately
    0.2 million square feet which is available for sale or
    contribution.    ®
  (415) 394-9000. www.amb.com Form 10-K, Form 10-Q, Form 8-K 1-800-SEC-0330. http://www.sec.gov
  ® ® ® ®
  Operating
    Strategy
   5




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build-to-suit
  Growth
    Strategies
  Growth
    through Operations
    Growth
    through Development and Value-Added Conversions
      Growth
    through Acquisitions and Capital Redeployment
   6




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Growth
    through Global Expansion
  non-U.S. markets non-U.S. operating
  ® speed-to-market
    Growth
    through Co-Investments
   7




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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.      We may
    be unable to renew leases or relet space as leases
    expire.
   8




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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
    customers 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.
   9




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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. entities
    
    Differing employment practices and labor issues;
    Local business and cultural factors that differ from our usual
    standards and practices;
    Regulatory requirements and prohibitions that differ between
    jurisdictions; and
    Health concerns. 10




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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.
   11




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and/or
  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; 12




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
    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;
    the joint venture, limited liability and partnership agreements
    often restrict the transfer of a joint ventures,
    members or partners interest 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, limited
    liability company, 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 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. 13




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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-our
  We
    face risks associated with the use of debt to fund acquisitions
    and developments, including refinancing risk.
     14




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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-day
  AMB
    Property Corporations duty to its stockholders may
    conflict with the interests of our limited partners and
    noteholders.
   15




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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
    Compliance
    or failure to comply with the Americans with Disabilities Act
    and other similar regulations could result in substantial
    costs.
   16




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Federal
    Income Tax Risks
  Our
    general partners failure to qualify as a real estate
    investment trust would have serious adverse consequences to our
    unitholders.
      Certain
    property transfers may generate prohibited transaction income,
    resulting in a penalty tax on gain attributable to the
    transaction.
   17




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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.
    Item 1B.
    Unresolved
    Staff Comments    Item 2.
    Properties  INDUSTRIAL
    PROPERTIES
    Property Characteristics.
 18




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December 31,Building Type

Description

2006


2005(1)Warehouse

Customers typically
    15,000-75,000 square feet, single or multi-customer


48.4
%


44.2
%Bulk Warehouse

Customers typically over
    75,000 square feet, single or multi-customer


38.3
%


40.0
%Flex Industrial

Includes assembly or
    research & development, single or multi-customer


4.5
%


5.9
%Light Industrial

Smaller customers,
    15,000 square feet or less, higher office finish


3.5
%


4.6
%Trans-Shipment

Unique configurations for truck
    terminals and cross-docking


1.5
%


1.7
%Air Cargo

On-tarmac or airport land for
    transfer of air cargo goods


3.2
%


3.1
%Office

Single or multi-customer, used
    strictly for office


0.6
%


0.5
%100.0
%


100.0
%     (1)
    
    The information for 2005 is presented on a consolidated basis
    while the information for 2006 is presented on an owned and
    managed basis. Management believes that the difference in
    comparability between 2006 and 2005 is not significant.  Lease Terms.
  Overview of Major Target Markets. non-U.S. industrial
    Owned and
    Managed Market Operating Statistics(1)
   19




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##### Table of Contents



TotalNo. New


San








U.S. Hub and


Total


Total/Los





Jersey/


Francisco





U.S.


Gateway


Other


WeightedAtlanta


Chicago


Dallas


Angeles(2)


Miami


New York


Bay Area


Seattle


On-Tarmac(3)


Markets


Markets


AverageNumber of buildings(8)


47



112



53



148



53



133



116



59



34



755



209



964Rentable square feet(8)


4,622,651



11,321,419



4,843,064



14,858,376



5,678,594



10,538,097



10,499,059



7,430,006



2,681,328



72,472,594



28,230,321



100,702,915% of total rentable square feet


4.6
%


11.2
%


4.8
%


14.8
%


5.6
%


10.5
%


10.4
%


7.4
%


2.7
%


72.0
%


28.0
%


100.0
%Occupancy percentage


92.7
%


95.1
%


97.8
%


95.8
%


97.9
%


98.7
%


97.4
%


96.0
%


96.3
%


96.5
%


95.0
%


96.1
%Annualized base rent (000s)

$
19,016


$
56,603


$
22,387


$
92,562


$
42,148


$
75,719


$
70,466


$
34,913


$
46,402


$
460,216


$
186,948


$
647,164% of total annualized base rent


2.9
%


8.7
%


3.5
%


14.3
%


6.5
%


11.7
%


10.9
%


5.4
%


7.2
%


71.1
%


28.9
%


100.0
%Number of leases


163



229



258



394



259



381



344



230



233



2,491



785



3,276Annualized base rent per square foot

$
4.44


$
5.26


$
4.73


$
6.50


$
7.58


$
7.28


$
6.89


$
4.89


$
17.96


$
6.59


$
6.97


$
6.69Lease expirations as a % of ABR:(4)2007


15.8
%


26.3
%


17.1
%


9.4
%


22.5
%


10.8
%


13.7
%


18.9
%


16.0
%


15.6
%


10.9
%


14.3
%2008


21.4
%


15.2
%


15.1
%


19.1
%


11.1
%


13.2
%


16.7
%


13.2
%


13.8
%


15.5
%


9.6
%


13.8
%2009


24.2
%


13.9
%


17.2
%


13.7
%


16.3
%


15.3
%


22.8
%


21.2
%


6.5
%


16.2
%


11.8
%


15.0
%Weighted average lease terms:Original


5.2 years



4.8 years



5.6 years



5.9 years



5.6 years



6.9 years



5.6 years



6.0 years



8.6 years



5.8 years



6.6 years



6.1 yearsRemaining


2.5 years



2.6 years



3.3 years



3.3 years



3.4 years



3.8 years



2.4 years



2.8 years



4.6 years



3.1 years



4.0 years



3.3 yearsTenant retention:Quarter


57.1
%


84.7
%


37.1
%


83.6
%


83.7
%


66.6
%


54.2
%


45.5
%


84.5
%


71.9
%


55.4
%


68.9
%Year-to-date


66.9
%


69.7
%


47.6
%


78.5
%


77.0
%


75.6
%


71.2
%


76.2
%


90.8
%


73.4
%


61.3
%


70.9
%Rent increases on renewals and
    rollovers:Quarter


(4.1
)%


3.9
%


(3.6
)%


13.9
%


10.2
%


11.2
%


(21.0
)%


13.5
%


4.9
%


4.4
%


2.2
%


4.1
%Same space square feet leased


233,627



557,402



200,241



990,934



155,519



305,275



317,314



155,385



85,242



3,000,939



580,710



3,581,649Year-to-date


(8.3
)%


(5.4
)%


(5.5
)%


7.5
%


5.2
%


3.4
%


(13.2
)%


4.1
%


4.1
%


(0.4
)%


1.6
%


(0.1
)%Same space square feet leased


862,757



2,270,278



777,789



2,842,876



1,083,300



2,175,615



1,505,411



1,080,155



418,545



13,016,726



3,186,854



16,203,580Same store cash basis NOI %
    change:(5)Quarter


(3.5
)%


0.0
%


12.3
%


(1.4
)%


15.6
%


(7.5
)%


6.5
%


(1.1
)%


1.9
%


0.7
%


3.5
%


1.3
%Year-to-date


(0.3
)%


2.3
%


2.4
%


2.6
%


16.8
%


(1.2
)%


2.1
%


0.0
%


3.5
%


2.5
%


2.7
%


2.6
%Square feet owned in same store
    pool(6)


3,611,600



8,479,166



3,515,471



12,162,203



4,681,107



8,817,823



9,835,672



6,119,008



2,564,083



59,786,133



17,505,733



77,291,866Our pro rata share of square feet(7)


2,355,377



9,032,175



2,856,821



11,289,385



4,480,180



5,571,416



7,849,682



3,880,944



1,494,569



48,810,549



19,677,264



68,487,813     (1)
    
    Our owned and managed portfolio excludes development and
    renovation projects and recently completed development projects
    available for sale or contribution.(2)
    
    We also own a 19.9 acre land parcel, which is leased to a
    parking lot operator 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, or ABR, is calculated as monthly base rent
    (cash basis) per the terms of the lease, as of December 31,
    2006, multiplied by 12.(5)
    
    See Part II Item 7: Managements Discussion
    and Analysis of Financial Condition and Results of
    Operations  Supplemental Earnings Measures for
    a discussion of why management believes same store cash basis
    NOI is a useful supplemental measure for our management and
    investors, of ways to use this measure when assessing the
    Companys financial performance, and the limitations of the
    measure as a measurement tool.(6)
    
    Same store pool excludes properties purchased and developments
    stabilized after December 31, 2004. 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.(7)
    
    Calculated as our pro rata share of square feet on owned and
    managed operating properties as well as non-managed operating
    properties.(8)
    
    On a consolidated basis, we have 820 industrial buildings,
    totaling approximately 80.3 rentable million square feet. 20




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##### Table of Contents



Owned and
    Managed Operating Portfolio Overview(1)
    Number


Rentable


% of Total





Annualized


% of Total





Annualizedof


Square


Rentable


Occupancy


Base Rent


Annualized


Number


Base Rent perBuildings(5)


Feet(5)


Square Feet


Percentage


(000s)(3)


Base Rent


of Leases


Square FootU.S. Hub and Gateway
    Markets


755



72,472,594



72.0
%


96.5
%

$
460,216



71.1
%


2,491


$
6.59U.S. Other Target
    Markets(2)Austin


9



1,758,369



1.7



95.9



9,964



1.5



33



5.91Baltimore / Washington DC


39



3,046,324



3.0



99.6



20,580



3.2



147



6.78Boston


39



5,188,593



5.2



92.5



31,452



4.9



101



6.55Houston


7



1,236,401



1.2



83.5



7,145



1.1



60



6.92Minneapolis


31



3,886,858



3.9



96.2



17,216



2.7



138



4.61Orlando


16



1,424,748



1.4



99.8



6,719



1.0



77



4.72Subtotal/Weighted
    Average


141



16,541,293



16.4
%


95.0
%

$
93,076



14.4
%


556



5.92U.S. Non-Target
    MarketsColumbus


1



240,000



0.2



100.0



552



0.1



4



2.30New Orleans


5



410,849



0.4



100.0



2,107



0.3



52



5.13Subtotal/Weighted
    Average


6



650,849



0.6
%


100.0
%

$
2,659



0.4
%


56



4.09Non U.S. Target
    Markets(4)North AmericaGuadalajara, Mexico


6



933,542



0.9



100.0



5,061



0.8



20



5.42Mexico City, Mexico


6



1,803,973



1.8



95.1



10,481



1.6



18



6.11Queretaro, Mexico


1



95,949



0.1



100.0



482



0.1



1



5.02EuropeAmsterdam, Netherlands


7



964,039



0.8



100.0



8,377



1.3



7



8.69Frankfurt, Germany


1



166,917



0.2



100.0



2,669



0.4



1



15.99Hamburg, Germany


7



959,214



1.0



98.9



7,931



1.2



21



8.36Lyon, France


1



262,491



0.3



100.0



1,758



0.3



2



6.70Paris, France


20



1,885,532



1.9



96.2



15,179



2.3



51



8.37AsiaOsaka, Japan


1



965,155



1.0



90.3



7,546



1.2



13



8.66Shanghai, China


1



151,749



0.2



100.0



550



0.1



2



3.62Tokyo, Japan


11



2,849,618



2.8



88.8



31,179



4.8



37



12.32Subtotal/Weighted
    Average


62



11,038,179



11.0
%


94.7
%

$
91,213



14.1
%


173


$
8.72Total Other Markets


209



28,230,321



28.0



95.0



186,948



28.9



785



6.97Total/Weighted Average


964



100,702,915



100.0
%


96.1
%

$
647,164



100.0
%


3,276


$
6.69     (1)
    
    Our owned and managed operating portfolio excludes development
    and renovation projects and recently completed development
    projects available for sale or contribution.(2)
    
    Effective as of December 31, 2006, Houston and Orlando have
    been added to our U.S. target markets.(3)
    
    Annualized base rent is calculated as monthly base rent (cash
    basis) per the terms of the lease, as of December 31, 2006,
    multiplied by 12.(4)
    
    Annualized base rent for leases denominated in foreign
    currencies is translated using the currency exchange rate at
    December 31, 2006.(5)
    
    On a consolidated basis, we have 820 industrial buildings,
    totaling approximately 80.3 million rentable square feet. 21




---



##### Table of Contents



Lease
    Expirations(1)
    Annualized


% ofSquare


Base


AnnualizedFeet


Rent (000s)(2)


Base Rent2007


15,946,335


$
96,962



14.3
%2008


14,987,948



93,720



13.8
%2009


15,580,437



101,672



15.0
%2010


13,056,478



96,569



14.2
%2011


13,193,485



97,473



14.3
%2012


7,813,704



66,080



9.7
%2013


3,379,973



26,803



3.9
%2014


5,326,305



41,105



6.0
%2015


2,706,554



20,209



3.0
%2016 and beyond


4,925,182



39,118



5.8
%Total


96,916,401


$
679,711



100.0
%     (1)
    
    Schedule includes leases that expire on or after
    December 31, 2006. Schedule includes owned and managed
    operating properties which we define as properties in which we
    have at least a 10% ownership interest, for which we are the
    property or asset manager, and which we intend to hold for the
    long-term.(2)
    
    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. Amounts represent 100% of the
    annualized base rent of the owned and managed operating
    properties. 22




---



##### Table of Contents



Customer
    Information(1)
  Largest Property Customers.
  Percentage of





Percentage ofAggregate


Aggregate


Annualized


AggregateNumber of


Rentable


Leased Square


Base


AnnualizedCustomer Name(2)

Leases


Square Feet


Feet(3)


Rent (000s)(4)


Base Rent(5)United States Government(6)(7)


47



1,407,748



1.5
%

$
20,295



3.1
%Deutsche Post World Net (DHL)(6)


41



1,977,650



2.0
%


17,791



2.7
%FedEx Corporation(6)


30



1,361,619



1.4
%


14,455



2.2
%Nippon Express


12



967,039



1.0
%


9,636



1.5
%Sagawa Express


7



726,235



0.8
%


9,008



1.4
%Harmonic Inc.


4



285,480



0.3
%


8,907



1.4
%BAX Global Inc/Schenker/Deutsche
    Bahn(6)


16



711,117



0.7
%


7,067



1.1
%La Poste


2



854,427



0.9
%


6,332



1.0
%City and County of
    San Francisco


1



559,605



0.6
%


5,714



0.9
%Panalpina, Inc.


7



870,156



0.9
%


5,585



0.9
%Expeditors International


8



1,003,939



1.0
%


4,836



0.7
%Worldwide Flight Services(6)


14



327,622



0.3
%


4,694



0.7
%Eagle Global Logistics, L.P.


10



758,121



0.8
%


4,424



0.7
%Forward Air Corporation


9



547,544



0.6
%


4,290



0.7
%FMI International


3



764,343



0.8
%


4,240



0.7
%UPS


15



559,994



0.6
%


3,911



0.6
%United Air Lines Inc.(6)


6



191,085



0.2
%


3,408



0.5
%World Logi K.K.


10



343,883



0.4
%


3,178



0.5
%Ahold NV


6



693,280



0.7
%


2,970



0.5
%Elmhult Limited Partnership


5



760,253



0.8
%


2,686



0.4
%Virco Manufacturing Corporation


1



559,000



0.6
%


2,566



0.4
%UTi United States Inc.


11



314,029



0.3
%


2,494



0.4
%Menzies Aviation(6)


4



183,867



0.2
%


2,323



0.4
%Integrated Airline Services(6)


4



198,262



0.2
%


2,284



0.4
%Kintetsu World Express


7



180,027



0.2
%


2,278



0.4
%Total






17,106,325



17.8
%

$
155,372



24.2
%     (1)
    
    Schedule includes owned and managed operating properties which
    we define as properties in which we have at least a 10%
    ownership interest, for which we are the property or asset
    manager, and which we intend to hold for the long-term.(2)
    
    Customer(s) may be a subsidiary of or an entity affiliated with
    the named customer. We also own a 19.9 acre land parcel,
    adjacent to the Los Angeles International Airport which is
    leased to a parking lot operator with an annualized base rent of
    $7.5 million, which is not included.(3)
    
    Computed as aggregate leased square feet divided by the
    aggregate leased square feet of operating properties.(4)
    
    Annualized base rent is calculated as monthly base rent (cash
    basis) per the terms of the lease, as of December 31, 2006,
    multiplied by 12.(5)
    
    Computed as aggregate annualized base rent divided by the
    aggregate annualized base rent of operating properties.(6)
    
    Airport apron rental amounts (but not square footage) are
    included. 23




---



##### Table of Contents



(7)
    
    United States Government includes the United States Postal
    Service, United States Customs, United States Department of
    Agriculture and various other U.S. governmental agencies.  OWNED AND
    MANAGED OPERATING AND LEASING STATISTICS
  Owned and
    Managed Operating and Leasing Statistics(1)
    Operating Portfolio

2006


2005(2)


2004(2)Square feet owned(3)(6)


100,702,915



87,772,104



90,278,803Occupancy percentage(6)


96.1
%


95.8
%


94.8
%Weighted average lease terms:Original


6.1 years



6.1 years



6.1 yearsRemaining


3.3 years



3.3 years



3.3 yearsTenant retention


70.9
%


64.2
%


66.8
%Same Space Leasing Activity(4):Rent increases (decreases) on
    renewals and rollovers


(0.1
)%


(9.7
)%


(13.2
)%Same space square footage
    commencing (millions)


16.2



13.6



17.5Second Generation Leasing
    Activity(5):Tenant improvements and leasing
    commissions per sq. ft.:Retained

$
1.41


$
1.60


$
1.73Re-tenanted


3.19



3.03



2.70Weighted average

$
2.20


$
2.34


$
2.27Square footage commencing
    (millions)


19.1



18.5



22.5     (1)
    
    Schedule includes owned and managed operating properties which
    we define as properties in which we have at least a 10%
    ownership interest, for which we are the property or asset
    manager, and which we intend to hold for the long-term. This
    excludes development and renovation projects and recently
    completed development projects available for sale or
    contribution.(2)
    
    The information for 2005 and 2004 is presented on a consolidated
    basis while the information for 2006 is presented on an owned
    and managed basis. Management believes that the difference in
    comparability between 2006, 2005 and 2004, is not significant.(3)
    
    In addition to owned square feet as of December 31, 2006,
    we managed, but did not have an ownership interest in,
    approximately 0.2 million additional square feet of
    properties. As of December 31, 2006, one of our
    subsidiaries also managed approximately 1.1 million
    additional square feet of properties representing the IAT
    portfolio on behalf of the IAT Air Cargo Facilities Income Fund.
    As of December 31, 2006, we also had investments in
    7.4 million square feet of operating properties through our
    investments in non-managed unconsolidated joint ventures.(4)
    
    Consists of second generation leases renewing or re-tenanting
    with current and prior lease terms greater than one year.(5)
    
    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. 24




---



##### Table of Contents



(6)
    
    On a consolidated basis, we had approximately 80.3 million
    rentable square feet with an occupancy rate of 97.0% at
    December 31, 2006.  Owned and
    Managed Same Store Operating Statistics(1)
    Same Store Pool(2)

2006


2005(3)


2004(3)Square feet in same store pool(4)


77,291,866



72,452,609



74,516,427% of total industrial square feet


76.8
%


82.5
%


82.5
%Occupancy percentage(4)


97.0
%


95.6
%


95.3
%Weighted average lease terms:Original


6.0 years



5.9 years



6.0 yearsRemaining


3.0 years



3.0 years



3.1 yearsTenant retention


72.5
%


63.7
%


66.4
%Rent increases (decreases) on
    renewals and rollovers


(0.4
)%


(9.8
)%


(14.7
)%Square feet leased (millions)


15.7



13.0



16.2Growth % increase (decrease)
    (including straight-line rents):Revenues(5)


2.1
%


(0.7
)%


(0.7
)%Expenses(5)


3.5
%


(0.2
)%


(0.5
)%Net operating income(5)


1.6
%


(0.8
)%


(0.8
)%Growth % increase (decrease)
    (excluding straight-line rents):Revenues(5)


2.8
%


0.0
%


(0.8
)%Expenses(5)


3.5
%


(0.2
)%


(0.5
)%Net operating income(5)(6)


2.6
%


0.1
%


(0.9
)%     (1)
    
    Schedule includes owned and managed operating properties which
    we define as properties in which we have at least a 10%
    ownership interest, for which we are the property or asset
    manager, and which we intend to hold for the long-term. This
    excludes development and renovation projects and recently
    completed development projects available for sale or
    contribution.(2)
    
    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 where building
    has been substantially complete for at least 12 months).(3)
    
    The information for 2005 and 2004 is presented on a consolidated
    basis while the information for 2006 is presented on an owned
    and managed basis. Management believes that the difference in
    comparability between 2006, 2005 and 2004, is not significant.(4)
    
    On a consolidated basis, we had approximately 71.2 million
    square feet with an occupancy rate of 96.9% at December 31,
    2006.(5)
    
    On a consolidated basis, the percentage change was 2.1%, 4.7%
    and 1.2%, respectively, for revenues, expenses and NOI
    (including straight-line rents) and 2.4%, 4.7% and 1.6%,
    respectively, for the revenues, expenses, and NOI (excluding
    straight line rents).(6)
    
    See Part II, Item 7: Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations  Supplemental Earnings Measures for
    a discussion of same store net operating income and a
    reconciliation of same store net operating income and net income. 25




---



##### Table of Contents



DEVELOPMENT
    PROPERTIES
  Development
    Pipeline
    Industrial
    Development and Renovation Deliveries
  EstimatedEstimated


Total


OurEstimated


Square Feet


Investment(1)


OwnershipProjects

Market

Developer

Stabilization(6)


at Stabilization(6)


(000s)


Percentage2007 Deliveries1. Beacon Lakes
    Village  Phase 1 Bldg E1

Miami

Flagler


Q1



52,668


$
6,100



50
%2. AMB Annagem Distribution
    Centre

Toronto, Canada

AMB


Q1



198,169



13,800



100
%3. AMB Des Plaines Logistics
    Center

Chicago

AMB


Q1



126,053



18,600



100
%4. AMB DFW Logistics Center 1

Dallas

AMB


Q1



113,640



5,900



100
%5. AMB Turnberry Distribution
    VI(7)

Chicago

AMB


Q1



179,400



10,600



20
%6. Beacon Lakes 
    Bldg 6

Miami

Flagler


Q1



206,464



13,300



79
%7. AMB Fokker Logistics Center
    2A

Amsterdam, Netherlands

Delta Group


Q2



118,166



15,900



100
%8. AMB Riverfront Distribution
    Center  Bldg B

Seattle

AMB


Q2



388,000



22,800



100
%9. AMB Forest Park Freight
    Terminal

Atlanta

AMB


Q2



142,000



11,200



100
%10. AMB Gonesse Distribution
    Center

Paris, France

GEPRIM


Q2



598,161



55,400



100
%11. AMB Douglassingel
    Distribution Center

Amsterdam, Netherlands

Austin


Q3



148,714



22,800



100
%12. AMB Port of Hamburg 1

Hamburg, Germany

BUSS Ports + Logistics


Q3



414,701



36,800



94
%13. AMB Pearson Logistics
    Centre 1  Bldg 200

Toronto, Canada

AMB


Q3



205,518



16,800



100
%14. AMB Tres Rios Industrial
    Park  Bldg 3

Mexico City, Mexico

G. Accion


Q3



628,784



34,900



98
%15. AMB Tres Rios Industrial
    Park  Bldg 4

Mexico City, Mexico

G. Accion


Q3



315,156



17,800



98
%16. AMB Arrayanes 
    Bldg 2

Guadalajara, Mexico

G. Accion


Q4



473,720



17,800



90
%17. AMB Aurora Industrial(4)

Minneapolis

AMB


Q4



125,200



7,100



100
%18. AMB Milton 401 Business
    Park  Bldg 2

Toronto, Canada

AMB


Q4



281,358



21,700



100
%19. AMB Sagamihara
    Distribution Center

Tokyo, Japan

AMB


Q4



543,056



87,100



100
%20. AMB Pearson Logistics
    Centre 1  Bldg 100

Toronto, Canada

AMB


Q4



446,338



31,700



100
%21. AMB Dublin(3)

San Francisco Bay Area

AMB


Q4







13,600



100
%22. AMB Hathaway(3)

San Francisco Bay Area

AMB


Q4







16,500



100
%23. AMB Valley Distribution
    Center

Seattle

AMB


Q4



749,970



43,600



100
%24. AMB Redlands 
    Parcel 2

Los Angeles

AMB


Q4



1,313,470



57,200



100
%25. Platinum Triangle
    Land  Phase 1(3)

Los Angeles

AMB


Q4







15,400



100
%26. AMB Fokker Logistics
    Center 3

Amsterdam, Netherlands

Delta Group


Q4



324,725



44,900



50
%27. AMB Isle dAbeau
    Logistics Park Bldg C

Lyon, France

GEPRIM


Q4



277,817



21,800



100
%28. AMB Torrance Matrix

Los Angeles

AMB


Q4



161,785



28,000



100
%Total 2007 Deliveries










8,533,033


$
709,100



94
%Leased or Under Contract For
    Sale/Funded-to-date










34
%

$
516,800
(2)Weighted Average Estimated Yield(5)














8.0
%   26




---



##### Table of Contents



EstimatedEstimated


Total


OurEstimated


Square Feet


Investment(1)


OwnershipProjects

Market

Developer

Stabilization(6)


at Stabilization(6)


(000s)


Percentage2008 Deliveries29. AMB Steel Road

Los Angeles

AMB


Q1



161,000


$
10,400



100
%30. Beacon Lakes Bldg 7

Miami

Flagler


Q1



193,090



14,400



79
%31. AMB Amagasaki Distribution
    Center 2

Osaka, Japan

AMB


Q2



981,679



105,900



100
%32. Agave  Bldg 5

Mexico City, Mexico

G. Accion


Q2



103,204



7,100



98
%33. AMB Le Grand Roissy
    Distribution  Mitry

Paris, France

SIRIUS


Q2



37,954



4,600



100
%34. AMB Shinkiba Distribution
    Center

Tokyo, Japan

AMB


Q2



328,764



90,000



100
%35. AMB Theodore Park
    Logistics Center

Dusseldorf, Germany

Delta Group


Q2



140,566



17,000



100
%36. AMB Narita Distribution
    Center 1  Bldg C

Tokyo, Japan

AMB


Q2



348,891



43,500



100
%37. AMB Barajas Logistics Park

Madrid, Spain

AMB


Q2



427,133



39,500



80
%38 AMB Funabashi Distribution
    Center 5

Tokyo, Japan

AMB


Q2



469,254



57,500



100
%39. AMB Palmetto Distribution
    Center

Orlando

AMB


Q2



406,400



20,800



100
%40. Platinum Triangle
    Land  Phase 2(3)

Los Angeles

AMB


Q2







30,100



100
%41. AMB Franklin Commerce
    Center

New Jersey

AMB


Q3



366,896



26,700



100
%42. AMB Pompano Center of
    Commerce  Phase 1

Miami

AMB


Q3



218,835



21,400



100
%43. AMB Lijnden Logistics
    Court 1

Amsterdam, Netherlands

Keystone Vasgoed


Q3



96,520



16,800



100
%44. AMB Nanko Naka
    Distribution Center

Osaka, Japan

AMB


Q3



402,313



48,700



100
%45. AMB Siziano Business
    Park  Bldg 1

Milan, Italy

Redilco


Q4



436,916



34,000



50
%Total 2008 Deliveries










5,119,415


$
588,400



95
%Leased or Under Contract For
    Sale/Funded-to-date










7
%

$
297,700
(2)Weighted Average Estimated Yield(5)














7.1
%Total Scheduled
    Deliveries










13,652,448


$
1,297,500Leased or Under Contract For
    Sale/Funded-to-date










24
%

$
814,500
(2)Weighted Average Estimated Yield(5)














7.6
%     (1)
    
    Represents total estimated cost of development, renovation or
    expansion, including initial acquisition costs, prepaid ground
    leases and associated carry costs. Estimated total investments
    are based on current forecasts and are subject to change.
    Non-U.S. dollar
    investments are translated to U.S. dollars using the
    exchange rate at December 31, 2006.(2)
    
    Our pro rata share of amounts funded to date for 2007 and 2008
    deliveries was $489.0 million and $288.5, respectively, for
    a total of $777.5 million.(3)
    
    Represents a value-added conversion project.(4)
    
    Represents a renovation project.(5)
    
    Yields exclude value-added conversion projects and are
    calculated on an after-tax basis for international projects.(6)
    
    Stabilization is 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 twelve months.(7)
    
    Represents projects in unconsolidated joint ventures. 27




---



##### Table of Contents



Completed
    Development Projects Available for Sale or
    Contribution(1)
  EstimatedEstimated


Total


OurSquare Feet


Investment


OwnershipProjects(1)

Market

at Completion


(000s)(2)


Percentage1. Agave  Bldg 4

Mexico City, Mexico


217,514


$
14,200



98
%2. AMB BRU Air Cargo Center

Brussels, Belgium


102,655



12,900



100
%3. AMB Fengxian Logistics
    Center  
    Bldgs 2, 4 & 6(3)

Shanghai, China


1,040,633



41,500



60
%4. AMB Fokker Logistics
    Center 1

Amsterdam, Netherlands


236,203



30,300



100
%5. AMB Jiuting Distribution
    Center 2

Shanghai, China


187,866



7,300



100
%6. AMB Layline Distribution
    Center(3)

Los Angeles


298,000



30,200



100
%7. AMB Milton 401 Business
    Park  Bldg 1

Toronto, Canada


375,241



21,100



100
%8. Frankfurt Logistics Center
    556  Phase II

Frankfurt, Germany


105,723



15,800



100
%9. Highway 17  55
    Madison Street(3)

New Jersey


150,446



12,900



100
%10. Singapore Airport
    Logistics Center  Bldg 2(4)

Singapore City, Singapore


250,758



13,000



50
%Total Available for Sale or
    Contribution




2,965,039


$
199,200



88
%     (1)
    
    Represents projects where development activities have been
    completed and which we intend to sell or contribute within two
    years of construction completion.(2)
    
    Represents total estimated cost of development, renovation or
    expansion, including initial acquisition costs, prepaid ground
    leases and associated carry costs. The estimates are based on
    current estimates and forecasts and are subject to change.
    Non-U.S. Dollar
    investments are translated to U.S. Dollar using the
    exchange rate at December 31, 2006.(3)
    
    Renovation projects represent projects where the acquired
    buildings are less than 75% leased and require significant
    capital expenditures (generally more than 10%  25% of
    acquisition cost) to bring the buildings up to operating
    standards and stabilization (generally 90% occupancy).(4)
    
    Represents a project in an unconsolidated joint venture.  Properties
    held through Joint Ventures, Limited Liability Companies and
    Partnerships
  Consolidated
    Joint Ventures:
   28




---



##### Table of Contents



Consolidated
    Co-Investment Joint Ventures
    (dollars in thousands)
  Our








Gross








JV PartnersOwnership


Number of


Square


Book


Property


Other


ShareJoint Ventures

Percentage


Buildings


Feet(1)


Value(2)


Debt


Debt


of Debt(3)Co-Investment Operating Joint
    Ventures:AMB Erie(4)


50
%


3



821,712


$
52,942


$
20,605


$



$
10,303AMB Partners II(5)


20
%


118



9,913,375



678,796



323,532



65,000



311,470AMB-SGP(6)


50
%


74



8,287,424



444,990



235,480







117,449AMB Institutional Alliance
    Fund II(7)


20
%


70



8,007,103



515,334



243,263







192,058AMB-AMS(8)


39
%


33



2,172,137



153,563



78,904







48,420Total Co-Investment Operating
    Joint Ventures


30
%


298



29,201,751



1,845,625



901,784



65,000



679,700Co-Investment Development Joint
    Ventures:AMB Partners II(5)


20
%


n/a



n/a



342











AMB Institutional Alliance
    Fund II(7)


20
%


n/a



n/a



4,200











Total Co-Investment Development
    Joint Ventures


20
%










4,542











Total Co-Ivestment Consolidated
    Joint Ventures


30
%


298



29,201,751


$
1,850,167


$
901,784


$
65,000


$
679,700     (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, 2006. 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 Operations 
    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.(4)
    
    AMB/Erie, L.P. is a co-investment partnership formed in 1998
    with the Erie Insurance Company and certain related entities.(5)
    
    AMB Partners II, L.P. is a co-investment partnership formed
    in 2001 with the City and County of San Francisco
    Employees Retirement System.(6)
    
    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., the real estate investment subsidiary of the Government of
    Singapore Investment Corporation.(7)
    
    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.(8)
    
    AMB-AMS,
    L.P. is a co-investment partnership formed in 2004 with three
    Dutch pension funds. 29




---



##### Table of Contents



Other
    Consolidated Joint Ventures
    (dollars in thousands)
  Our


Number





Gross








JV PartnersOwnership


of


Square


Book


Property


Other


ShareProperties

Market


Percentage


Buildings


Feet


Value(1)


Debt


Debt


of Debt(2)Other Industrial Operating Joint
    Ventures


Various



92
%


32



2,982,313


$
258,374


$
60,435


$



$
4,419Other Industrial Development
    Joint Ventures


Various



81
%


16



3,930,930



320,942



63,171



98



28,095Total Other Industrial
    Consolidated Joint Ventures






86
%


48



6,913,243


$
579,316


$
123,606


$
98


$
32,514     (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, 2006. 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:
  ® Consolidation of Variable Interest Entities.
 30




---



##### Table of Contents



Unconsolidated
    Joint Ventures
    (dollars in thousands)
  Our


Number





Gross








Our


OurOwnership


of


Square


Book


Property


Other


Net Equity


Share ofUnconsolidated Joint Ventures

Percentage


Buildings


Feet(1)


Value


Debt


Debt


Investment


Debt(2)Co-Investment Operating Joint
    Ventures:1. AMB-SGP Mexico, LLC(3)


20
%


12



2,737,515


$
165,381


$
95,000


$
11,700


$
7,601


$
20,9122. AMB Japan Fund I,
    L.P.(4)


20
%


12



3,814,773



602,397



368,086



82,184



31,811



90,0043. AMB Institutional Alliance
    Fund III, L.P.(5)


23
%


119



13,784,406



1,313,858



615,500



60,000



136,971



160,280Total Co-Investment Joint
    Ventures


22
%


143



20,336,694



2,081,636



1,078,586



153,884



176,383



271,196Co-Investment Development Joint
    Ventures:1. AMB Institutional Alliance
    Fund III, L.P.(5)


23
%


1



179,400



9,636















2. AMB DFS Fund I, LLC(6)


15
%










78,450











11,700



Other Industrial Operating Joint
    Ventures


53
%


48



7,684,931
(7)


295,036



184,423







47,955



89,262Total Unconsolidated Joint
    Ventures


28
%


192



28,201,025


$
2,464,758


$
1,263,009


$
153,884


$
236,038


$
360,458     (1)
    
    For development properties, this represents estimated square
    feet at completion of development for committed phases of
    development and renovation projects.(2)
    
    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.(3)
    
    AMB-SGP Mexico, LLC is an unconsolidated co-investment joint
    venture formed in 2004 with Industrial (Mexico) JV Pte. Ltd., a
    subsidiary of GIC Real Estate Pte. Ltd., the real estate
    investment subsidiary of the Government of Singapore Investment
    Corporation. Includes $5.5 million of shareholder loans
    outstanding at December 31, 2006 between us and the
    co-investment partnership and its subsidiaries.(4)
    
    AMB Japan Fund I, L.P. is a co-investment partnership
    formed in 2005 with 13 institutional investors as limited
    partners.(5)
    
    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. Prior to October 1, 2006, the Company accounted for
    AMB Institutional Alliance Fund III, L.P. as a consolidated
    joint venture.(6)
    
    AMB DFS Fund I, LLC is a co-investment partnership formed
    in 2006 with a subsidiary of GE Real Estate to build and sell
    properties.(7)
    
    Includes investments in 7.4 million square feet of
    operating properties through the Companys investments in
    unconsolidated joint ventures that it does not manage which it
    excludes from its owned and managed portfolio. Our owned and
    managed operating portfolio includes properties in which we have
    at least a 10% ownership interest, for which we are the property
    or asset manager, and which we intend to hold for the long-term. 31




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##### Table of Contents



Mortgage
    and Loan Receivables and Other Investments:
    Mortgage
    Investments and Other Investments
    (dollars in thousands)
  MortgageMortgage and Loan Receivables

Market

Maturity

Receivable(2)


Rate1. AMB Pier One, LLC(1)

San Francisco Bay Area

May 2026

$
12,686



13.0
%2. G.Accion

Various

March 2010


6,061



10.0
%$
18,747   Our


OurNet


Ownership


ShareOther Investments

Market

Property Type

Investment


Percentage


of Debt(5)1. Park One Land Parcel

Los Angeles

Parking Lot

$
75,498



100
%

$
2. G.Accion(3)

Various

Various


38,343



39
%


2,9653. IAT Air Cargo Facilities
    Income Fund(4)

Canada

Industrial


2,644



5
%


$
116,485






$
2,965     (1)
    
    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.(2)
    
    We hold inter-company loans that we eliminate in the
    consolidation process.(3)
    
    We also have a 39% unconsolidated equity interest in
    G. Accion, S.A. de C.V. (G. Accion), a Mexican real
    estate company. G. Accion provides management and
    development services for industrial, retail, residential and
    office properties in Mexico.(4)
    
    We also have an approximate 5% equity interest in IAT Air Cargo
    Facilities Income Fund, a public Canadian real estate income
    trust.(5)
    
    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.  Secured
    Debt
   
  Item 3.
    Legal
    Proceedings   32




---



##### Table of Contents



Item 4.
    Submission
    of Matters to a Vote of Security Holders   33




---



##### Table of Contents



PART II
 
  Item 5.
    Market
    for Registrants Common Equity, Related Stockholder Matters
    and Issuer Purchases of Equity Securities  1 2 3 4 one-for-one 1 2 3 4
    Year

Distribution20051st Quarter

$
0.4402nd Quarter


0.4403rd Quarter


0.4404th Quarter


0.44020061st Quarter

$
0.4602nd Quarter


0.4603rd Quarter


0.4604th Quarter


0.460  34




---



##### Table of Contents



Item 6.
    Selected
    Financial Data  SELECTED
    COMPANY FINANCIAL AND OTHER DATA(1)
      2006(5)


2005


2004


2003


2002(Dollars in thousands, except per unit amounts)Operating DataTotal revenues

$
729,896


$
660,875


$
576,395


$
501,323


$
480,473Income before minority interests,
    discontinued operations and cumulative effect of change in
    accounting principle


234,785



205,086



114,446



111,560



115,405Income from continuing operations
    before cumulative effect of change in accounting principle


185,228



142,227



70,660



67,743



84,864Income from discontinued operations


54,454



135,522



67,856



79,346



54,190Net income before cumulative
    effect of change in accounting principle


239,682



277,749



138,516



147,089



139,054Net income


239,875



277,749



138,516



147,089



139,054Income available to common
    unitholders attributable to general partner


209,420



250,419



118,340



116,716



113,035Income from continuing operations
    per common unit:Basic(2)


1.79



1.45



0.66



0.52



0.75Diluted(2)


1.72



1.39



0.64



0.50



0.73Net income from discontinued
    operations per common unit:Basic(2)


0.59



1.53



0.78



0.92



0.61Diluted(2)


0.57



1.46



0.75



0.91



0.60Net income available to common
    unitholders per common unit:Basic(2)


2.38



2.98



1.44



1.44



1.36Diluted(2)


2.29



2.85



1.39



1.41



1.33Distributions declared per common
    unit


1.84



1.76



1.70



1.66



1.64Other DataFunds from operations(3)

$
297,912


$
254,363


$
207,314


$
186,666


$
215,194Funds from operations per common
    unit:Basic


3.24



2.87



2.39



2.17



2.44Diluted


3.12



2.75



2.30



2.13



2.40 35




---



##### Table of Contents



2006(5)


2005


2004


2003


2002(Dollars in thousands, except per unit amounts)Cash flows provided by (used in):Operating activities


335,855



295,815



297,349



269,808



297,723Investing activities


(880,560
)


(60,407
)


(731,402
)


(346,275
)


(253,312
)Financing activities


483,621



(101,856
)


409,705



112,022



(28,150
)Balance Sheet DataInvestments in real estate at cost

$
6,575,733


$
6,798,294


$
6,526,144


$
5,491,707


$
4,922,782Total assets


6,713,512



6,802,739



6,386,943



5,409,559



4,983,629Total consolidated debt


3,437,415



3,401,561



3,257,191



2,574,257



2,235,361Our share of total debt(4)


3,088,624



2,601,878



2,395,046



1,954,314



1,691,737General partners capital


2,166,657



1,916,299



1,671,140



1,657,137



1,676,079     (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
    92,047,678 and 95,444,072 units, respectively, for 2006;
    88,684,262 and 92,508,725 units, respectively, for 2005;
    86,885,250 and 90,120,250 units, respectively, for 2004;
    85,859,899 and 87,616,365 units, respectively, for 2003;
    88,204,208 and 89,689,310 units, respectively, for 2002.(3)
    
    See Part II, Item 7: Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations  Supplemental Earnings
    Measures  FFO, for a discussion of why we
    believe FFO is a useful supplemental measure of operating
    performance, of ways in which investors might use FFO when
    assessing our financial performance, and of FFOs
    limitations as a measurement tool.(4)
    
    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.(5)
    
    Effective October 1, 2006, we deconsolidated AMB
    Institutional Alliance Fund III, L.P. on a prospective
    basis, due to the re-evaluation of the accounting for our
    investment in the fund in light of changes to the partnership
    agreement regarding the general partners rights effective
    October 1, 2006. As a result, the financial measures for
    the years 2006, 2005, 2004, 2003 and 2002, included in our
    operating data, other data and balance sheet data above are not
    comparable. 36




---



##### Table of Contents



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
  development-for-sale
       37




---



##### Table of Contents



U.S. Hub and


Total Other


Total/WeightedOwned and Managed Property Data(1)

Gateway Markets(2)


Markets(3)


AverageFor the year ended
    December 31, 2006:% of total rentable square feet


72.0
%


28.0
%


100.0
%Occupancy percentage at year end


96.5
%


95.0
%


96.1
%Same space square footage leased


13,016,726



3,186,854



16,203,580Rent (decreases) increases on
    renewals and rollovers(4)


(0.4
)%


1.6
%


(0.1
)%For the year ended
    December 31, 2005:(5)% 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



13,607,426Rent decreases on renewals and
    rollovers


(10.8
)%


(4.3
)%


(9.7
)%     (1)
    
    Schedule includes owned and managed operating properties which
    we define as properties in which we have at least a 10%
    ownership interest, for which we are the property or asset
    manager, and which we intend to hold for the long-term.(2)
    
    Our U.S. hub and gateway markets include on-tarmac and
    Atlanta, Chicago, Dallas, Los Angeles, Miami, Northern New
    Jersey/New York City, the San Francisco Bay Area, and
    Seattle.(3)
    
    Our total markets include other U.S. target markets, other
    non-target markets, and
    non-U.S. target
    markets.(4)
    
    On a consolidated basis, rent increases on renewals and
    rollovers were 4.4% and 3.0%, respectively, for U.S. hub
    and gateway markets and total other markets.(5)
    
    The information for 2005 is presented on a consolidated basis
    while the information for 2006 is presented on an owned and
    managed basis. Management believes that the difference in
    comparability between the information for 2006 and 2005 is not
    significant.       38




---



##### Table of Contents



non-U.S. markets non-U.S. operating
    Summary
    of Key Transactions in 2006
    
    Acquired, on an owned and managed basis, 106 buildings in North
    America and Europe, aggregating approximately 9.8 million
    square feet, for $834.2 million;
    Committed to 30 development projects in North America, Asia and
    Europe totaling 10.4 million square feet with an estimated
    total investment of approximately $914.3 million;
    Acquired 835 acres of land for development in North America
    and Asia for approximately $293.2 million;
    Sold five land parcels and six development projects totaling
    approximately 1.3 million square feet for an aggregate sale
    price of $86.6 million;
    Contributed four completed development projects for
    $486.2 million to AMB Japan Fund I, L.P., two
    completed development projects for $56.4 million to AMB-SGP
    Mexico, LLC, three completed development projects for
    $64.8 million to AMB Institutional Alliance Fund III,
    L.P. and one land parcel for 39




---



##### Table of Contents



$77.5 million to AMB DFS Fund I, LLC, all of which
    entities are unconsolidated co-investment joint ventures. As a
    result of these contributions, we recognized an aggregate
    after-tax gain of $94.1 million, representing the portion
    of our interest in the contributed properties acquired by the
    third-party co-investors for cash;  
    Divested ourselves of 73 industrial buildings aggregating
    approximately 6.4 million square feet, for an aggregate
    price of approximately $335.1 million, including 34
    industrial buildings that were sold by two of our unconsolidated
    joint ventures; and
    Acquired the 50% interest in AMB BlackPine that we did not
    previously own;
    Received an incentive distribution of $19.8 million from
    AMB Partners II, L.P.; and
    Deconsolidated AMB Institutional Alliance Fund III, L.P.,
    on a prospective basis, as of October 1, 2006.      
    Obtained long-term secured debt financings for our co-investment
    joint ventures of $141.6 million with a weighted average
    interest rate of 6.1%;
    Assumed $29.9 million of debt for our co-investment joint
    ventures at a weighted average interest rate of 6.0%;
    Obtained $177.7 million of new debt (using exchange rates
    in effect at applicable quarter end dates) with a weighted
    average interest rate of 4.2% for international acquisitions;
    Obtained a $65.0 million floating rate unsecured revolving
    credit facility for one of our co-investment joint ventures;
    Entered into a third amended and restated credit agreement for a
    $250.0 million unsecured multi-currency revolving credit
    facility which replaced an existing $100.0 million
    unsecured multi-currency revolving credit facility;
    Repurchased all of AMB Property II, L.P.s outstanding
    7.75% Series E Cumulative Redeemable Preferred Limited
    Partnership Units for an aggregate cost of $10.9 million,
    including accrued and unpaid distributions;
    Repurchased all of AMB Property II, L.P.s outstanding
    7.95% Series F Cumulative Redeemable Preferred Limited
    Partnership Units for an aggregate cost of $10.0 million,
    including accrued and unpaid distributions;
    Repurchased all of AMB Property II, L.P.s outstanding
    8.125% Series H Cumulative Redeemable Preferred Limited
    Partnership Units for an aggregate cost of $42.8 million,
    including accrued and unpaid distributions;
    Purchased all of AMB Property II, L.P.s outstanding
    5.00% Series N Cumulative Redeemable Preferred Limited
    Partnership Units for an aggregate cost of $36.6 million,
    including accrued and unpaid distributions;
    Completed the early renewal and increase of our senior unsecured
    revolving line of credit in the amount of $550.0 million,
    an increase of $50.0 million;
    Entered into an amended and restated revolving credit agreement
    for a 45.0 billion Yen (approximately $377.9 million
    U.S. dollars, using the exchange rate at December 31,
    2006) unsecured revolving credit facility that replaced an
    existing 35.0 billion Yen (approximately
    $293.9 million U.S. dollars, using the exchange rate
    at December 31, 2006) unsecured revolving credit
    facility;
    Raised approximately $48.1 million in net proceeds from the
    issuance and sale of $50.0 million of our 6.85%
    Series P Cumulative Redeemable Preferred Units; 40




---



##### Table of Contents




    Issued $175.0 million aggregate principal amount of fixed
    rate senior unsecured notes under our 2006 medium-term note
    program which mature on August 15, 2013 and bear interest
    at a rate of 5.90% per annum; and
    Entered into a 228.0 million Euro (approximately
    $300.9 million U.S. dollars, using the exchange rate
    at December 31, 2006) revolving credit facility
    agreement, which provides for loans on a secured and unsecured
    basis.    Critical
    Accounting Policies
    Investments in Real Estate. property-by-property
  Revenue Recognition.
  Property Dispositions.
 41




---



##### Table of Contents



build-to-suit Accounting for the Impairment
    or Disposal of Long-Lived Assets,
  Joint Ventures. 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 Consolidation of Variable
    Interest Entities 04-5, 04-5,
  Our General Partners Status as a Real Estate Investment
    Trust.
 
  CONSOLIDATED
    RESULTS OF OPERATIONS
       42




---



##### Table of Contents



For the
    Years ended December 31, 2006 and 2005 (dollars in
    millions)
  Revenues

2006


2005


$ Change


% ChangeRental revenuesU.S. industrial:Same store

$
514.9


$
501.5


$
13.4



2.7
%2006 acquisitions


4.4







4.4




%2005 acquisitions


19.4



11.4



8.0



70.2
%Development


8.3



7.4



0.9



12.2
%Other industrial


74.3



63.6



10.7



16.8
%Non U.S. industrial


62.5



33.1



29.4



88.8
%Total rental revenues


683.8



617.0



66.8



10.8
%Private capital income


46.1



43.9



2.2



5.0
%Total revenues

$
729.9


$
660.9


$
69.0



10.4
%   Non-U.S. industrial
  43




---



##### Table of Contents



Costs and Expenses

2006


2005


$ Change


% ChangeProperty operating costs:Rental expenses

$
100.8


$
78.4


$
22.4



28.6
%Real estate taxes


75.0



80.5



(5.5
)


(6.8
)%Total property operating costs

$
175.8


$
158.9


$
16.9



10.6
%Property operating costsU.S. industrial:Same store

$
139.0


$
132.5


$
6.5



4.9
%2006 acquisitions


1.1







1.1




%2005 acquisitions


4.4



2.5



1.9



76.0
%Development


2.8



2.5



0.3



12.0
%Other industrial


16.3



15.2



1.1



7.2
%Non U.S. industrial


12.2



6.2



6.0



96.8
%Total property operating costs


175.8



158.9



16.9



10.6
%Depreciation and amortization


177.8



161.7



16.1



10.0
%Impairment losses


6.3







6.3




%General and administrative


104.3



71.6



32.7



45.7
%Other expenses


2.6



5.0



(2.4
)


(48.0
)%Fund costs


2.1



1.5



0.6



40.0
%Total costs and expenses

$
468.9


$
398.7


$
70.2



17.6
%   Non-U.S. industrial
  44




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##### Table of Contents



Other Income and (Expenses)

2006


2005


$ Change


% ChangeEquity in earnings of
    unconsolidated joint ventures, net

$
23.2


$
10.8


$
12.4



114.8
%Other income


9.4



5.6



3.8



67.9
%Gains from dispositions of real
    estate interests, net






19.1



(19.1
)


(100.0
)%Development profits, net of taxes


106.4



54.8



51.6



94.2
%Interest expense, including
    amortization


(165.2
)


(147.3
)


17.9



12.2
%Total other income and (expenses),
    net

$
(26.2
)

$
(57.0
)

$
(30.8
)


(54.0
)%   development-for-sale
  Discontinued Operations

2006


2005


$ Change


% ChangeIncome attributable to
    discontinued operations, net of minority interests

$
9.8


$
14.7


$
(4.9
)


(33.3
)%Gains from dispositions of real
    estate, net of minority interests


44.7



120.8



(76.1
)


(63.0
)%Total discontinued operations

$
54.5


$
135.5


$
(81.0
)


(59.8
)%    45




---



##### Table of Contents



Preferred Units

2006


2005


$ Change


% ChangePreferred unit distributions

$
(19.9
)

$
(13.7
)

$
6.2



45.3
%Preferred unit redemption issuance
    costs


(1.1
)






1.1




%Total preferred units

$
(21.0
)

$
(13.7
)

$
7.3



53.3
%     For the
    Years ended December 31, 2005 and 2004 (dollars in
    millions)
  Revenues

2005


2004


$ Change


% ChangeRental revenuesU.S. industrial:Same store

$
501.5


$
489.9


$
11.6



2.4
%2005 acquisitions


11.4



3.2



8.2



256.3
%Development


7.4



8.6



(1.2
)


(14.0
)%Other industrial


63.6



34.6



29.0



83.8
%Non U.S. industrial


33.1



27.2



5.9



21.7
%Total rental revenues


617.0



563.5



53.5



9.5
%Private capital income


43.9



12.9



31.0



240.3
%Total revenues

$
660.9


$
576.4


$
84.5



14.7
%   year-to-date
 46




---



##### Table of Contents



Costs and Expenses

2005


2004


$ Change


% ChangeProperty operating costs:Rental expenses

$
78.4


$
80.8


$
(2.4
)


(3.0
)%Real estate taxes


80.5



63.3



17.2



27.2
%Total property operating costs

$
158.9


$
144.1


$
14.8



10.3
%Property operating costsU.S. industrial:Same store

$
132.5


$
128.7


$
3.8



3.0
%2005 acquisitions


2.5



0.9



1.6



177.8
%Development


2.5



2.1



0.4



19.0
%Other industrial


15.2



7.8



7.4



94.9
%Non U.S. industrial


6.2



4.6



1.6



34.8
%Total property operating costs


158.9



144.1



14.8



10.3
%Depreciation and amortization


161.7



136.6



25.1



18.4
%General and administrative


71.6



57.2



14.4



25.2
%Other expenses


5.0



2.6



2.4



92.3
%Fund costs


1.5



1.7



(0.2
)


(11.8
)%Total costs and expenses

$
398.7


$
342.2


$
56.5



16.5
%   year-to-date
  Other Income and (Expenses)

2005


2004


$ Change


% ChangeEquity in earnings of
    unconsolidated joint ventures, net

$
10.8


$
3.8


$
7.0



184.2
%Other income


5.6



4.7



0.9



19.1
%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


(147.3
)


(141.9
)


5.4



3.8
%Total other income and (expenses),
    net

$
(57.0
)

$
(119.7
)

$
(62.7
)


(52.4
)%    47




---



##### Table of Contents



development-for-sale development-for-sale
  Discontinued Operations

2005


2004


$ Change


% ChangeIncome attributable to
    discontinued operations, net of minority interests

$
14.7


$
23.1


$
(8.4
)


(36.4
)%Gains from dispositions of real
    estate, net of minority interests


120.8



44.7



76.1



170.2
%Total discontinued operations

$
135.5


$
67.8


$
67.7



99.9
%     Preferred Units

2005


2004


$ Change


% ChangePreferred unit distributions

$
(13.7
)

$
(13.5
)

$
0.2



1.5
%Total preferred units

$
(13.7
)

$
(13.5
)

$
0.2



1.5
%    
  LIQUIDITY
    AND CAPITAL RESOURCES
  Balance Sheet Strategy. and/or
    
    retained earnings and cash flow from operations; 48




---



##### Table of Contents




    private capital from co-investment partners;
    net proceeds from contribution of properties and completed
    development projects to our co-investment joint ventures;
    borrowings under our unsecured credit facilities;
    other forms of secured or unsecured financing;
    proceeds from debt securities offerings;
    proceeds from limited partnership unit offerings (including
    issuances of common and preferred limited partnership units by
    us and our subsidiaries); and
    net proceeds from divestitures of properties.    
    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.  Cash flows.
    Capital
    Resources
  Property Divestitures.
  Development Sales.
 49




---



##### Table of Contents



Development Contributions.
  Properties Held for Contribution. 15-50%.
  Properties Held for Divestiture. development-for-sale
  Co-investment Joint Ventures. 04-5.
    OurApproximate


OriginalOwnership


PlannedConsolidated Co-Investment Joint Venture

Joint Venture Partner

Percentage


Capitalization(1)AMB/Erie, L.P.

Erie Insurance Company and
    affiliates


50
%

$
200,000AMB Partners II, L.P.

City and County of
    San Francisco Employees Retirement System


20
%

$
580,000AMB-SGP, L.P.

Industrial JV Pte. Ltd. (2)


50
%

$
420,000AMB Institutional Alliance
    Fund II, L.P.

AMB Institutional Alliance
    REIT II, Inc. (3)


20
%

$
490,000AMB-AMS,
    L.P.(4)

PMT, SPW and TNO (5)


39
%

$
228,000     (1)
    
    Planned capitalization includes anticipated debt and both
    partners expected equity contributions.(2)
    
    A subsidiary of GIC Real Estate Pte. Ltd., 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, 2006.(4)
    
    AMB-AMS,
    L.P. is a co-investment partnership with three Dutch pension
    funds.(5)
    
    PMT is Stichting Pensioenfonds Metaal en Techniek, SPW is
    Stichting Pensioenfonds voor de Woningcorporaties and TNO is
    Stichting Pensioenfonds TNO. 50




---



##### Table of Contents



OurApproximate


OriginalOwnership


PlannedUnconsolidated Co-Investment Joint Venture

Joint Venture Partner

Percentage


Capitalization(1)AMB-SGP Mexico, LLC

Industrial (Mexico) JV Pte. Ltd. (2)


20
%

$
715,000AMB Japan Fund I, L.P.

Institutional investors (3)


20
%

$
2,100,000
(4)AMB Institutional Alliance
    Fund III, L.P.(5)

AMB Institutional Alliance
    REIT III, Inc.


23
%

$
1,323,000
(6)AMB DFS Fund I, LLC(7)

Strategic Realty Ventures, LLC


15
%

$
500,000     (1)
    
    Planned capitalization includes anticipated debt and both
    partners expected equity contributions.(2)
    
    A subsidiary of GIC Real Estate Pte. Ltd., the real estate
    investment subsidiary of the Government of Singapore Investment
    Corporation.(3)
    
    Comprised of 13 institutional investors as of December 31,
    2006.(4)
    
    AMB Japan Fund I, L.P. is a yen-denominated fund.
    U.S. dollar amounts are converted at the December 31,
    2006 exchange rate.(5)
    
    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. Prior to October 1, 2006, the Company accounted for
    AMB Institutional Alliance Fund III, L.P. as a consolidated
    joint venture.(6)
    
    The planned gross capitalization and investment capacity of AMB
    Institutional Alliance Fund III, L.P. as an open-end fund,
    is not limited. The planned gross capitalization represents the
    gross book value of real estate assets as of the most recent
    quarter end.(7)
    
    AMB DFS Fund I, LLC is a co-investment partnership formed
    in 2006 with a subsidiary of GE Real Estate to build and sell
    properties.    Partners Capital.
     51




---



##### Table of Contents



52




---



##### Table of Contents



Debt. debt-to-our debt-to-our loan-to-value 50-65% per
       53




---



##### Table of Contents



Credit Facilities.
     54




---



##### Table of Contents



Mortgages Receivable.
    DebtOur


Joint


UnsecuredSecured


Venture


Senior Debt


Other


Credit


TotalDebt(1)


Debt


Securities


Debt


Facilities(2)


Debt2007

$
12,929


$
84,815


$
100,000


$
16,125


$



$
213,8692008


41,906



173,029



175,000



810







390,7452009


3,536



96,833



100,000



971







201,3402010


69,327



112,918



250,000



941



852,033



1,285,2192011


3,094



228,708



75,000



1,014







307,8162012


5,085



169,717







1,093







175,8952013


38,668



55,168



175,000



65,920
(5)






334,7562014


186,864



4,261







616







191,7412015


2,174



19,001



112,491



664







134,3302016


4,749



50,648















55,397Thereafter






25,580



125,000











150,580Subtotal


368,332



1,020,678



1,112,491



88,154



852,033



3,441,688Unamortized premiums


1,632



4,712



(10,617
)










(4,273
)Total consolidated debt


369,964



1,025,390



1,101,874



88,154



852,033



3,437,415Our share of unconsolidated joint
    venture debt(3)






330,813







32,610







363,423Total debt


369,964



1,356,203



1,101,874



120,764



852,033



3,800,838Joint venture partners share
    of consolidated joint venture debt






(660,193
)






(52,021
)






(712,214
)Our share of total debt(4)

$
369,964


$
696,010


$
1,101,874


$
68,743


$
852,033


$
3,088,624Weighted average interest rate


5.6
%


6.5
%


6.2
%


6.6
%


3.1
%


5.5
%Weighted average maturity
    (in years)


6.6



4.5



4.8



5.3



3.3



4.6     (1)
    
    Our secured debt and joint venture debt include debt related to
    European assets in the amount of $331.3 million translated
    to U.S. dollars using the exchange rate in effect on
    December 31, 2006.(2)
    
    Includes $418.5 million, $321.0 million and
    $112.5 million in Euro, Yen and Canadian dollar based
    borrowings, respectively, translated to U.S. dollars using
    the exchange rates in effect on December 31, 2006.(3)
    
    The weighted average interest and maturity for the
    unconsolidated joint venture debt were 4.4% and 5.8 years,
    respectively.(4)
    
    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 joint 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. 55




---



##### Table of Contents



(5)
    
    Maturity includes $65.0 million balance outstanding on a
    $65.0 million non-recourse credit facility obtained by AMB
    Partners II, L.P.  Units


Market


MarketSecurity

Outstanding


Price(1)


Value(1)Common general partnership units


89,433,024


$
58.61


$
5,241,670Common limited partnership units(2)


4,709,056


$
58.61



275,998Total


94,142,080






$
5,517,668     (1)
    
    Assumes that our common limited 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 1,258,713 class B common limited partnership units
    issued by AMB Property II, L.P. as of December 31,
    2006.  Preferred UnitsDistribution


Liquidation


RedemptionSecurity

Rate


Preference


ProvisionsSeries D preferred units


7.75
%

$
79,767



May 2004Series I preferred units


8.00
%


25,500



March 2006Series J preferred units


7.95
%


40,000



September 2006Series K preferred units


7.95
%


40,000



April 2007Series L preferred units


6.50
%


50,000



June 2008Series M preferred units


6.75
%


57,500



November 2008Series O preferred units


7.00
%


75,000



December 2010Series P preferred units


6.85
%


50,000



August 2011Weighted average/total


7.27
%

$
417,767   Capitalization Ratios as of December 31, 2006Total
    debt-to-total
    market capitalization(1)


39.0
%Our share of total
    debt-to-our
    share of total market capitalization(1)


34.2
%Total debt plus
    preferred-to-total
    market capitalization(1)


43.3
%Our share of total debt plus
    preferred-to-our
    share of total market capitalization(1)


38.8
%Our share of total
    debt-to-our
    share of total book capitalization(1)


55.8
%     (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, 2006. Our definition of
    preferred is preferred equity liquidation
    preferences. Our share of total book capitalization is defined
    as our share of total debt plus minority interests to preferred
    unitholders and limited partnership unitholders plus
    partners capital. Our share of total debt is the pro rata
    portion of the total debt based on our percentage of equity
    interest in each of the consolidated or unconsolidated ventures
    holding the debt. We believe that our share of total debt is a
    meaningful supplemental measure, which enables both management
    and investors to analyze our leverage and to compare our
    leverage to that of other companies. In addition, it allows for
    a more meaningful comparison of our debt to that of other
    companies that do not consolidate their joint ventures. Our
    share of total debt is not intended to reflect our actual
    liability should there be a default under any or all of such
    loans or a liquidation of the joint ventures. For a
    reconciliation of our share of total debt to total consolidated
    debt, a GAAP financial measure, please see the table of debt
    maturities and capitalization above. 56




---



##### Table of Contents



Liquidity
      Paying Entity

Security


2006


2005


2004AMB Property, L.P.


Common limited partnership units


$
1.84


$
1.76


$
1.70AMB Property, L.P.


Series J preferred units


$
3.98


$
3.98


$
3.98AMB Property, L.P.


Series K preferred units


$
3.98


$
3.98


$
3.98AMB Property II, L.P.


Class B common limited partnership units


$
1.84


$
1.76


$
1.70AMB Property II, L.P.


Series D preferred units


$
3.88


$
3.88


$
3.88AMB Property II, L.P.


Series E preferred units(1
)

$
1.78


$
3.88


$
3.88AMB Property II, L.P.


Series F preferred units(2
)

$
2.72


$
3.98


$
3.98AMB Property II, L.P.


Series H preferred units(3
)

$
0.97


$
4.06


$
4.06AMB Property II, L.P.


Series I preferred units


$
4.00


$
4.00


$
4.00AMB Property II, L.P.


Series N preferred units(4
)

$
0.22


$
2.50


$
0.70     (1)
    
    In June 2006, AMB Property II, L.P. repurchased all of its
    outstanding series E preferred units.(2)
    
    In September 2006, AMB Property II, L.P. repurchased all of
    its outstanding series F preferred units.(3)
    
    In March 2006, AMB Property II, L.P. repurchased all of its
    outstanding series H preferred units.(4)
    
    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 and AMB Property II, L.P. repurchased
    all of such units from us.    Capital
    Commitments
  Development Starts.
  Development Pipeline.
 57




---



##### Table of Contents



Acquisitions.
  Lease Commitments.
  2007

$
21,6362008


22,1862009


21,5062010


20,6672011


20,668Thereafter


272,483Total

$
379,146   Co-investment Joint Ventures.
  Captive Insurance Company.
 58




---



##### Table of Contents



Potential Contingent and Unknown
    Liabilities.
  
    liabilities for environmental conditions;
    claims of customers, vendors or other persons dealing with our
    predecessors prior to our formation or acquisition transactions
    that had not been asserted prior to our formation or acquisition
    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 thanContractual Obligations

1 Year


1-3 Years


3-5 Years


5 Years


TotalDebt

$
213,869


$
592,085


$
1,593,035


$
1,042,699


$
3,441,688Debt interest payments


13,861



38,126



74,416



58,775



185,178Operating lease commitments


21,636



43,692



41,335



272,483



379,146Construction commitments


31,713



57,042











88,755Total

$
281,079


$
730,945


$
1,708,786


$
1,373,957


$
4,094,767  
  OFF-BALANCE
    SHEET ARRANGEMENTS
  Standby Letters of Credit.
  Guarantees. ,
  Performance and Surety Bonds.
  Promoted Interests and Other Contractual
    Obligations.
  SUPPLEMENTAL
    EARNINGS MEASURES
  FFO.
 59




---



##### Table of Contents



2006


2005


2004


2003


2002Net income(1)

$
239,875


$
277,749


$
138,516


$
147,089


$
139,054Income available to common
    unitholders attributable to limited partners


(9,443
)


(13,582
)


(6,685
)


(6,773
)


(6,659
)Gains from dispositions of real
    estate, net of minority interests(2)


(42,635
)


(132,652
)


(47,224
)


(50,325
)


(19,383
)Real estate, related depreciation
    and amortization:Total depreciation and amortization


177,824



161,732



136,610



111,879



103,550Discontinued operations
    depreciation


2,153



18,572



30,740



30,458



32,953Non-real estate depreciation


(4,546
)


(3,388
)


(871
)


(720
)


(712
)Ground lease amortization


















(2,301
)Adjustments to derive FFO from
    consolidated joint ventures:Joint venture partners
    minority interests (Net Income)


37,975



36,401



29,360



22,276



16,529Limited partnership
    unitholders minority interests (Net Income)


2,805



3,411



2,384



2,117



3,303Limited partnership
    unitholders minority interests (Development profits)


4,948



2,262



435



344



57Discontinued operations
    minority interests (Net Income)


31



8,769



13,964



15,214



16,597 60




---



##### Table of Contents



2006


2005


2004


2003


2002FFO attributable to minority
    interests


(82,861
)


(100,275
)


(80,192
)


(65,603
)


(52,051
)Adjustments to derive FFO from
    unconsolidated joint ventures:Our share of net income


(23,240
)


(10,770
)


(3,781
)


(5,445
)


(5,674
)Our share of FFO


16,038



14,441



7,549



9,755



9,291Our share of development profits,
    net of taxes






5,441











Preferred unit distributions


(19,942
)


(13,748
)


(13,491
)


(18,187
)


(19,772
)Preferred unit redemption discount
    (issuance costs)


(1,070
)










(5,413
)


412Funds from operations

$
297,912


$
254,363


$
207,314


$
186,666


$
215,194Basic FFO per common
    unit

$
3.24


$
2.87


$
2.39


$
2.17


$
2.44Diluted FFO per common
    unit

$
3.12


$
2.75


$
2.30


$
2.13


$
2.40Weighted average common
    units:Basic


92,047,678



88,684,262



86,885,250



85,859,899



88,204,208Diluted


95,444,072



92,508,725



90,120,250



87,616,365



89,689,310     (1)
    
    Includes gains from undepreciated land sales of
    $5.6 million, $25.0 million, $3.7 million and
    $1.2 million for 2006, 2005, 2004 and 2003, respectively.(2)
    
    The information for 2005 includes accumulated depreciation
    re-capture of approximately $1.1 million associated with
    the sale of the Interstate Crossdock redevelopment project.  SS NOI. year-over-year
   61




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##### Table of Contents



2006


2005


2004Net income

$
239,875


$
277,749


$
138,516Private capital income


(46,102
)


(43,942
)


(12,895
)Depreciation and amortization


177,824



161,732



136,610Impairment losses


6,312







General and administrative


104,262



71,564



57,181Other expenses


2,620



5,038



2,554Fund costs


2,091



1,482



1,741Total other income and expenses


26,178



57,044



119,727Total minority interests
    share of income


49,557



62,859



43,786Total discontinued operations


(54,454
)


(135,522
)


(67,856
)Cumulative effect of change in
    accounting principle


(193
)






Net Operating Income (NOI)


507,970



458,004



419,364Less non same-store NOI


(116,030
)


(70,782
)


(19,990
)Less non-cash adjustments(1)


(8,426
)


(9,861
)


(8,249
)Cash-basis same-store NOI

$
383,514


$
377,361


$
391,125     (1)
    
    Non-cash adjustments include straight line rents and
    amortization of lease intangibles for the same store pool only. 
  Item 7A.
    Quantitative
    and Qualitative Disclosures About Market Risk      2007


2008


2009


2010


2011


Thereafter


TotalFixed rate debt(1)

$
155,384


$
368,141


$
152,151


$
430,676


$
288,835


$
768,320


$
2,163,507Average interest rate


6.7
%


7.1
%


4.7
%


6.4
%


6.8
%


5.9
%


6.3
%Variable rate debt(2)

$
58,485


$
22,604


$
49,189


$
854,543


$
18,981


$
274,379


$
1,278,181Average interest rate


5.9
%


6.6
%


6.8
%


3.1
%


3.8
%


4.9
%


3.8
%Interest Payments

$
13,861


$
27,630


$
10,496


$
54,054


$
20,362


$
58,775


$
185,178     (1)
    
    Represents 62.9% of all outstanding debt.(2)
    
    Represents 37.1% of all outstanding debt.   62




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##### Table of Contents



Financial Instruments.
    Maturity DatesRelated Derivatives (in thousands)

December 8, 2008


June 8, 2010


November 1, 2014


Notional Amount


Fair ValueInterest Rate Swaps:Plain Interest Rate Swap,
    EuropeNotional Amount (U.S. dollars)

$
9,655










$
9,655Receive Floating(%)


3M EURIBORPay Fixed Rate(%)


3.72
%Fair Market Value

















$
54Plain Interest Rate Swap,
    USDNotional Amount (U.S. dollars)





$
25,000







25,000Receive Floating(%)






3M LIBORPay Fixed Rate(%)






5.17
%Fair Market Value


















(130
)Plain Interest Rate Swap,
    EuropeNotional Amount (U.S. dollars)









$
3,471



3,471Receive Floating(%)










3M EURIBORPay Fixed Rate(%)










4.26
%Fair Market Value


















(45
)Total













$
38,126


$
(121
)   International Operations.
     63




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##### Table of Contents



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
  Rule 13a-15(b)
    Managements
    Report on Internal Control over Financial Reporting
             64




---



##### Table of Contents



Item 9B.
    Other
    Information   65




---



##### Table of Contents



PART III
 
  Items 10, 11,
    12, 13 and 14.
  Form 10-K.
 
  PART IV
 
  Item 15.
    Exhibits
    and Financial Statement Schedules  Financial Statements and Schedule:
  Form 10-K.
  PageReport of Independent Registered
    Public Accounting Firm


F-1Consolidated Balance Sheets as of
    December 31, 2006 and 2005


F-3Consolidated Statements of
    Operations for the years ended December 31, 2006, 2005 and
    2004


F-4Consolidated Statements of
    Partners Capital for the years ended December 31,
    2006, 2005 and 2004


F-5Consolidated Statements of Cash
    Flows for the years ended December 31, 2006, 2005 and 2004


F-6Notes to Consolidated Financial
    Statements


F-7Schedule III 
    Consolidated Real Estate and Accumulated Depreciation


S-1    66




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##### Table of Contents



Exhibits:
  No. 001-14245.
  ExhibitNumber

Description3
.1

Twelfth Amended and Restated
    Agreement of Limited Partnership of AMB Property, L.P., dated as
    of August 25, 2006 (incorporated by reference to
    Exhibit 3.1 of AMB Property, L.P.s Current Report on
    Form 8-K
    filed on August 30, 2006).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 Corporations
    Annual Report on
    Form 10-K
    for the year ended December 31, 2000).4
.4

$25,000,000 8.00% 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 Corporations
    Annual Report on
    Form 10-K
    for the year ended December 31, 2000). 4.5 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
.5

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
.6

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
.7

$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
.8

$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
.9

$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
.10

$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).4
.11

$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
.12

$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
.13

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 Current Report on
    Form 8-K
    filed on August 10, 2006).4
.14

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
.15

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)). 67




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##### Table of Contents



ExhibitNumber

Description4
.16

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
.17

Fourth Supplemental Indenture
    dated as of August 15, 2000, 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
.18

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
.19

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
.20

Seventh Supplemental Indenture,
    dated as of August 10, 2006, 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, including the Form of Fixed Rate Medium-Term Note,
    Series C, attaching the Form of Parent Guarantee, and the
    Form of Floating Rate Medium-Term Note, Series C, attaching
    the Form of Parent Guarantee. (incorporated by reference to
    Exhibit 4.2 of AMB Property, L.P.s Current Report on
    Form 8-K
    filed on August 10, 2006)4
.21

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
.22

$175,000,000 Fixed Rate
    Note No. FXR-C-1,
    dated as of August 15, 2006, attaching the Parent Guarantee
    (incorporated by reference to Exhibit 4.1 of AMB Property,
    L.P.s Current Report on
    Form 8-K
    filed on August 15, 2006).4
.23

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).4
.24

Registration Rights Agreement
    dated as of April 17, 2002 by and among AMB Property
    Corporation, AMB Property, 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, L.P.s
    Current Report on
    Form 8-K
    filed on April 23, 2002).4
.25

Registration Rights Agreement
    dated as of September 21, 2001 by and among AMB Property
    Corporation, AMB Property, 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, L.P.s
    Current Report on
    Form 8-K
    filed on October 3, 2001).*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). 68




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##### Table of Contents



ExhibitNumber

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

AMB 2005 Nonqualified Deferred
    Compensation Plan (incorporated by reference to
    Exhibit 10.1 of AMB Property L.P.s Current Report on
    Form 8-K
    filed on October 4, 2006).*10
.7

Amended and Restated 2002 AMB
    Nonqualified Deferred Compensation Plan (incorporated by
    reference to Exhibit 10.2 of AMB Property, L.P.s
    Current Report on
    Form 8-K,
    filed on October 4, 2006).*10
.8

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 10.3 of AMB Property, L.P.s
    Current Report on
    Form 8-K
    filed on October 4, 2006).10
.9

Fourteenth Amended and Restated
    Agreement of Limited Partnership of AMB Property II, L.P.,
    dated February 22, 2007 (incorporated by reference to
    Exhibit 10.1 of AMB Property, L.P.s Current Report on
    Form 8-K
    filed on February 22, 2007).10
.10

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
.11

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
.12

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
.13

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
.14

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
.15

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 (incorporated by reference to
    Exhibit 10.16 of AMP Property, L.P.s Annual Report on
    Form 10-K
    for the year ended December 31, 2005). 69




---



##### Table of Contents



ExhibitNumber

Description10
.16

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. (incorporated by reference
    to Exhibit 10.17 of AMP Property, L.P.s Annual Report
    on
    Form 10-K
    for the year ended December 31, 2005).10
.17

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,
    L.P.s Current Report on
    Form 8-K
    filed on December 1, 2004).10
.18

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, L.P.s Current Report on
    Form 8-K
    filed on December 1, 2004).10
.19

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
.20

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
.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,
    L.P.s Current Report on
    Form 8-K
    filed on February 22, 2006).10
.22

Fourth Amended and Restated
    Revolving Credit Agreement, dated as of June 13, 2006, by
    and among the qualified borrowers listed on the signature pages
    thereto, AMB Property, L.P., as a qualified borrower and
    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, LaSalle Bank National Association and Société
    Générale, as co-documentation agents, 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, L.P.s Current Report on
    Form 8-K
    filed on June 19, 2006).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). 70




---



##### Table of Contents



ExhibitNumber

Description10
.24

Third Amended and Restated
    Revolving Credit Agreement, dated as of June 1, 2006, by
    and among AMB Property, L.P., as Borrower, the banks listed on
    the signature pages thereof, JPMorgan Chase Bank, N.A., 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, Eurohypo AG, New York Branch, Wachovia Bank,
    N.A. and PNC Bank, National Association, as Documentation
    Agents, The Bank of Nova Scotia, acting through its
    San Francisco Agency, Wells Fargo Bank, N.A., ING Real
    Estate Finance (USA) LLC and LaSalle Bank National Association,
    as Managing Agents (incorporated by reference to
    Exhibit 10.1 of AMB Property, L.P.s Current Report on
    Form 8-K
    filed on June 7, 2006).10
.25

Amended and Restated Revolving
    Credit Agreement, dated as of June 23, 2006, by and among
    the initial borrower and the initial qualified borrowers listed
    on the signature pages thereto, AMB Property, L.P., as a
    guarantor, AMB Property Corporation, as a guarantor, the banks
    listed on the signature pages thereto, Sumitomo Mitsui Banking
    Corporation, as administrative agent and sole lead arranger and
    bookmanager, and each of the other lending institutions that
    becomes a lender thereunder (incorporated by reference to
    Exhibit 10.1 of AMB Property, L.P.s Current Report on
    Form 8-K
    filed on June 29, 2006).10
.26

Euros 228,000,000 Facility
    Agreement, dated as of December 8, 2006, by and among AMB
    European Investments LLC, AMB Property, L.P., ING Real Estate
    Finance NV and the Entities of AMB, Entities of AMB Property,
    L.P., Financial Institutions and the Entities of ING Real Estate
    Finance NV all listed on Schedule 1 of the Facility
    Agreement (incorporated by reference to Exhibit 10.1 of AMB
    Property, L.P.s Current Report on
    Form 8-K
    filed on December 14, 2006).10
.27

Collateral Loan Agreement, dated
    as of February 14, 2007, by and among The Prudential
    Insurance Company Of America and Prudential Mortgage Capital
    Company, LLC, as Lenders, and AMB-SGP California, LLC, AMB-SGP
    CIF-California, LLC, AMB-SGP CIF-I, LLC, AMB-SGP Docks, LLC,
    AMB-SGP Georgia, LLC, AMB-SGP CIF-Illinois, L.P. and AMB-SGP
    TX/IL SUB, LLC as Borrowers (incorporated by reference to
    Exhibit 10.1 of AMB Property, L.P.s
    Form 8-K
    filed on February 21, 2007).10
.28

$160,000,000 Amended, Restated and
    Consolidated Promissory Note (Fixed
    A-1), dated
    February 14, 2007, by AMB-SGP California, LLC, AMB-SGP
    CIF-California, LLC, AMB-SGP CIF-I, LLC, AMB-SGP Docks, LLC,
    AMB-SGP Georgia, LLC, AMB-SGP CIF-Illinois, L.P. and AMB-SGP
    TX/IL SUB, LLC, as Borrowers, to Prudential Mortgage Capital
    Company LLC, as Lender (incorporated by reference to
    Exhibit 10.2 of AMB Property, L.P.s
    Form 8-K
    filed on February 21, 2007).10
.29

$40,000,000 Amended, Restated and
    Consolidated Promissory Note (Floating
    A-2), dated
    February 14, 2007, by AMB-SGP California, LLC, AMB-SGP
    CIF-California, LLC, AMB-SGP CIF-I, LLC, AMB-SGP Docks, LLC,
    AMB-SGP Georgia, LLC, AMB-SGP CIF-Illinois, L.P. and AMB-SGP
    TX/IL SUB, LLC, as Borrowers, to The Prudential Insurance
    Company of America, as Lender (incorporated by reference to
    Exhibit 10.3 of AMB Property, L.P.s
    Form 8-K
    filed on February 21, 2007).10
.30

$84,000,000 Amended, Restated and
    Consolidated Promissory Note (Fixed B-1), dated
    February 14, 2007, by AMB-SGP California, LLC, AMB-SGP
    CIF-California, LLC, AMB-SGP CIF-I, LLC, AMB-SGP Docks, LLC,
    AMB-SGP Georgia, LLC, AMB-SGP CIF-Illinois, L.P. and AMB-SGP
    TX/IL SUB, LLC, as Borrowers, to The Prudential Insurance
    Company of America, as Lender (incorporated by reference to
    Exhibit 10.4 of AMB Property, L.P.s
    Form 8-K
    filed on February 21, 2007).10
.31

$21,000,000 Amended, Restated and
    Consolidated Promissory Note (Floating B-2), dated
    February 14, 2007, by AMB-SGP California, LLC, AMB-SGP
    CIF-California, LLC, AMB-SGP CIF-I, LLC, AMB-SGP Docks, LLC,
    AMB-SGP Georgia, LLC, AMB-SGP CIF-Illinois, L.P. and AMB-SGP
    TX/IL SUB, LLC, as Borrowers, to The Prudential Insurance
    Company of America, as Lender (incorporated by reference to
    Exhibit 10.5 of AMB Property, L.P.s
    Form 8-K
    filed on February 21, 2007).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) 71




---



##### Table of Contents



ExhibitNumber

Description31
.1

Rule 13a-14(a)/15d-14(a) Certifications
    dated February 28, 2007.32
.1

18 U.S.C. § 1350
    Certifications dated February 28, 2007. 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:
   72




---



##### Table of Contents



SIGNATURES
     By:
    AMB Property Corporation, Its General PartnerBy:
    /s/  Hamid
    R. Moghadam   Chairman of the Board, President and
 Chief Executive Officer
  Date:
    February 28, 2007
 
  POWER OF
    ATTORNEY
  Form 10-K Form 10-K, Form 10-K
    Name

Title

Date/s/  Hamid
    R. MoghadamHamid
    R. Moghadam

Chairman of the Board, President
    and Chief Executive Officer (Principal Executive Officer)

February 28, 2007/s/  Afsaneh
    M.
    BeschlossAfsaneh
    M. Beschloss

Director

February 28, 2007/s/  T.
    Robert BurkeT.
    Robert Burke

Director

February 28, 2007/s/  David
    A. ColeDavid
    A. Cole

Director

February 28, 2007/s/  Lydia
    H. KennardLydia
    H. Kennard

Director

February 28, 2007/s/  J.
    Michael
    LoshJ.
    Michael Losh

Director

February 28, 2007 73




---



##### Table of Contents



Name

Title

Date/s/  Frederick
    W. ReidFrederick
    W. Reid

Director

February 28, 2007/s/  Jeffrey
    L. SkeltonJeffrey
    L. Skelton

Director

February 28, 2007/s/  Thomas
    W. TusherThomas
    W. Tusher

Director

February 28, 2007/s/  Michael
    A. CokeMichael
    A. Coke

Chief Financial Officer and
    Executive Vice President (Duly Authorized Officer and Principal
    Financial Officer)

February 28, 2007/s/  Nina
    A. TranNina
    A. Tran

Chief Accounting Officer and
    Senior Vice President (Duly Authorized Officer and Principal
    Accounting Officer)

February 28, 2007  74




---



##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
      Consolidated
    financial statements and financial statement schedule
      Internal
    control over financial reporting
  Internal Control  Integrated
    Framework Internal Control 
    Integrated Framework
   F-1




---



##### Table of Contents



PricewaterhouseCoopers LLP
    F-2




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  CONSOLIDATED
    BALANCE SHEETS
 As of
    December 31, 2006 and 2005
  December 31,


December 31,2006


2005(Dollars in thousands, except unit amounts)ASSETSInvestments in real estate:Land

$
1,351,123


$
1,527,072Buildings and improvements


4,038,474



4,273,716Construction in progress


1,186,136



997,506Total investments in properties


6,575,733



6,798,294Accumulated depreciation and
    amortization


(789,693
)


(697,388
)Net investments in properties


5,786,040



6,100,906Investments in unconsolidated joint
    ventures


274,381



118,653Properties held for contribution,
    net


154,036



32,755Properties held for divestiture, net


20,916



17,936Net investments in real estate


6,235,373



6,270,250Cash and cash equivalents


174,763



232,881Restricted cash


21,115



34,352Mortgages receivable


18,747



21,621Accounts receivable, net of
    allowance for doubtful accounts of $6,361 and $6,302,
    respectively


133,998



178,682Deferred financing costs, net


20,394



25,026Other assets


109,122



39,927Total assets

$
6,713,512


$
6,802,739LIABILITIES AND PARTNERS
    CAPITALDebt:Secured debt

$
1,395,354


$
1,912,526Unsecured senior debt securities


1,101,874



975,000Unsecured credit facilities


852,033



490,072Other debt


88,154



23,963Total debt


3,437,415



3,401,561Security deposits


36,106



47,055Distributions payable


48,967



46,382Accounts payable and other
    liabilities


186,807



170,307Total liabilities


3,709,295



3,665,305Commitments and contingencies
    (Note 14)Minority interests:Joint venture partners


555,201



853,643Preferred unitholders


129,764



203,513Total minority interests


684,965



1,057,156Partners capital:General partner, 89,433,024 and
    85,585,494 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, 3,000,000 Series O preferred units
    issued and outstanding with a $75,000 liquidation preference,
    and 2,000,000 and 0 units, respectively, Series P
    preferred units issued and outstanding with a $50,000
    liquidation preference


2,166,657



1,916,299Limited partners, 3,450,343 and
    4,250,977 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


152,595



163,979Total partners capital


2,319,252



2,080,278Total liabilities and
    partners capital

$
6,713,512


$
6,802,739    F-3




---



##### Table of Contents



AMB
    PROPERTY, L.P.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    For the Years ended December 31, 2006, 2005 and
    2004
  2006


2005


2004(Dollars in thousands, except unit and per unit amounts)REVENUESRental revenues

$
683,794


$
616,933


$
563,500Private capital income


46,102



43,942



12,895Total revenues


729,896



660,875



576,395COSTS AND EXPENSESProperty operating expenses


(100,785
)


(78,387
)


(80,806
)Real estate taxes


(75,039
)


(80,542
)


(63,330
)Depreciation and amortization


(177,824
)


(161,732
)


(136,610
)Impairment losses


(6,312
)






General and administrative


(104,262
)


(71,564
)


(57,181
)Other expenses


(2,620
)


(5,038
)


(2,554
)Fund costs


(2,091
)


(1,482
)


(1,741
)Total costs and expenses


(468,933
)


(398,745
)


(342,222
)OTHER INCOME AND
    EXPENSESEquity in earnings of
    unconsolidated joint ventures, net


23,240



10,770



3,781Other income


9,423



5,593



4,700Gains from dispositions of real
    estate interests






19,099



5,219Development profits, net of taxes


106,389



54,811



8,528Interest expense, including
    amortization


(165,230
)


(147,317
)


(141,955
)Total other income and expenses, net


(26,178
)


(57,044
)


(119,727
)Income before minority interests,
    discontinued operations and cumulative effect of change in
    accounting principle


234,785



205,086



114,446Minority interests share of
    income:Joint venture partners share
    of income before minority interests and discontinued operations


(37,975
)


(36,401
)


(29,360
)Joint venture partners share
    of development profits


(665
)


(11,230
)


(523
)Preferred unitholders


(10,917
)


(15,228
)


(13,903
)Total minority interests
    share of income


(49,557
)


(62,859
)


(43,786
)Income from continuing operations
    before cumulative effect of change in accounting principle


185,228



142,227



70,660Discontinued operations:Income attributable to discontinued
    operations, net of minority interests


9,771



14,708



23,140Gains from dispositions of real
    estate, net of minority interests


44,683



120,814



44,716Total discontinued operations


54,454



135,522



67,856Net income before cumulative effect
    of change in accounting principle


239,682



277,749



138,516Cumulative effect of change in
    accounting principle


193







Net income


239,875



277,749



138,516Series L, M, O and P preferred
    unit distributions


(13,582
)


(7,388
)


(7,131
)Series J and K preferred unit
    distributions


(6,360
)


(6,360
)


(6,360
)Preferred unit redemption issuance
    costs


(1,070
)






Net income available to common
    unitholders

$
218,863


$
264,001


$
125,025Income available to common
    unitholders attributable to:General partner

$
209,420


$
250,419


$
118,340Limited partners


9,443



13,582



6,685Net income available to common
    unitholders

$
218,863


$
264,001


$
125,025Basic income per common
    unitIncome from continuing operations
    (includes preferred unit distributions and preferred unit
    redemption issuance costs)

$
1.79


$
1.45


$
0.66Discontinued operations


0.59



1.53



0.78Cumulative effect of change in
    accounting principle










Net income available to common
    unitholders

$
2.38


$
2.98


$
1.44Diluted income per common
    unitIncome from continuing operations
    (includes preferred unit distributions and preferred unit
    redemption issuance costs

$
1.72


$
1.39


$
0.64Discontinued operations


0.57



1.46



0.75Cumulative effect of change in
    accounting principle










Net income available to common
    unitholders

$
2.29


$
2.85


$
1.39WEIGHTED AVERAGE COMMON UNITS
    OUTSTANDINGBasic


92,047,678



88,684,262



86,885,250Diluted


95,444,072



92,508,725



90,120,250    F-4




---



##### Table of Contents



AMB
    PROPERTY, L.P.
    CONSOLIDATED STATEMENTS OF PARTNERS CAPITAL
    For the Years ended December 31, 2006, 2005 and 2004
    (dollars in thousands)
  General Partner


Limited PartnersPreferred Units


Common Units


Preferred Units


Common UnitsUnits


Amount


Units


Amount


Units


Amount


Units


Amount


Total(Dollars in thousands, except unit amounts)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


$
1,822,619Comprehensive income:Net income






7,131







118,340







6,360







6,685Unrealized gain on securities














(2,058
)














Currency translation adjustment














(438
)














Total comprehensive income


































136,020Deferred compensation amortization
    and issuance of common limited partnership units in connection
    with the issuance of restricted stock










204,556



10,444



















10,444Issuance of common limited
    partnership units in connection with the exercise of stock
    options










1,233,485



27,721



















27,721Conversion of operating partnership
    units to common stock










17,686



618











(17,686
)


(334
)


284Forfeiture of common limited
    partnership units in connection with the forfeiture of
    restricted stock














(646
)


















(646
)Reallocation of interests














1,038















644



1,682Issuance 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



1,835,542Comprehensive income:Net income






7,388







250,419







6,360







13,582Unrealized loss on securities and
    derivatives














421















Currency translation adjustment














(1,846
)














Total comprehensive income


































276,324Contributions


3,000,000



72,344



























72,344Deferred compensation amortization
    and issuance of common limited partnership units in connection
    with the issuance of restricted stock










183,216



12,296



















12,296Issuance of common limited
    partnership units in connection with the exercise of stock
    options










2,033,470



48,472



















48,472Conversion of operating partnership
    units to common stock










349,579



15,108











(349,579
)


(6,655
)


8,453Forfeiture of common limited
    partnership units in connection with the forfeiture of


restricted stock














(1,869
)


















(1,869
)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



2,080,278Comprehensive income:Net income






13,582







209,420







6,360







9,443Unrealized gain on securities and
    derivatives














825















Currency translation adjustment














(187
)














Total comprehensive income


































239,443Contributions


2,000,000



48,086



























48,086Deferred compensation amortization
    and issuance of common limited partnership units in connection
    with the issuance of restricted stock










331,911



20,736



















20,736Issuance of common limited
    partnership units in connection with the exercise of stock
    options










2,697,315



55,521



















55,521Conversion of operating partnership
    units to common stock










818,304



45,151











(800,634
)


(15,749
)


29,402Forfeiture of common limited
    partnership units in connection with the forfeiture of
    restricted stock














(3,454
)


















(3,454
)Cumulative effect of change in
    accounting principle














(193
)


















(193
)Reallocation of interests














37,940















2,910



40,850Offering costs






(217
)


























(217
)Distributions






(13,582
)






(163,270
)






(6,360
)






(7,988
)


(191,200
)Balance as of December 31,
    2006


9,300,000


$
223,417



89,433,024


$
1,943,240



1,600,000


$
77,815



3,450,343


$
74,780


$
2,319,252    F-5




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  CONSOLIDATED
    STATEMENTS OF CASH FLOWS
 For the
    Years ended December 31, 2006, 2005 and 2004
  2006


2005


2004(Dollars in thousands)CASH FLOWS FROM OPERATING
    ACTIVITIESNet income

$
239,875


$
277,749


$
138,516Adjustments to net income:Straight-line rents and
    amortization of lease intangibles


(19,134
)


(19,523
)


(16,281
)Depreciation and amortization


177,824



161,732



136,610Impairment losses


6,312







Stock-based compensation
    amortization


20,736



12,296



10,444Equity in earnings of
    unconsolidated joint ventures


(23,240
)


(10,770
)


(3,781
)Operating distributions received
    from unconsolidated joint ventures


4,875



2,752



2,971Gains from dispositions of real
    estate interest






(19,099
)


(5,219
)Development profits, net of taxes


(106,389
)


(54,811
)


(8,528
)Debt premiums, discounts and
    finance cost amortization, net


8,343



4,172



310Total minority interests
    share of net income


49,557



62,859



43,786Discontinued operations:Depreciation and amortization


2,153



18,572



30,740Joint venture partners share
    of net income


(426
)


8,006



12,707Gains from dispositions of real
    estate, net of minority interests


(44,683
)


(120,814
)


(44,716
)Cumulative effect of change in
    accounting principle


(193
)






Changes in assets and liabilities:Accounts receivable and other assets


3,276



(42,379
)


(1,154
)Accounts payable and other
    liabilities


16,969



15,073



944Net cash provided by operating
    activities


335,855



295,815



297,349CASH FLOWS FROM INVESTING
    ACTIVITIESChange in restricted cash and other
    assets


(24,910
)


1,973



(9,749
)Cash paid for property acquisitions


(451,940
)


(424,087
)


(415,034
)Additions to land, buildings,
    development costs, building improvements and lease costs


(1,033,941
)


(662,561
)


(581,168
)Net proceeds from divestiture of
    real estate


616,343



1,088,737



213,296Additions to interests in
    unconsolidated joint ventures


(18,969
)


(74,069
)


(16,003
)Capital distributions received from
    unconsolidated joint ventures


34,277



17,483



47,849Repayment/(issuance) of mortgage
    receivable


2,874



(7,883
)


29,407Cash transferred to unconsolidated
    joint venture


(4,294
)






Net cash used in investing
    activities


(880,560
)


(60,407
)


(731,402
)CASH FLOWS FROM FINANCING
    ACTIVITIESIssuance of common units


55,521



48,472



27,721Borrowings on secured debt


610,598



386,592



420,565Payments on secured debt


(483,138
)


(327,038
)


(98,178
)Borrowings on other debt


65,098







Payments on other debt


(16,281
)


(649
)


(600
)Borrowings on unsecured credit
    facilities


1,291,209



873,627



795,128Payments on unsecured credit
    facilities


(944,626
)


(697,464
)


(747,432
)Payment of financing fees


(11,746
)


(10,185
)


(13,230
)Net proceeds from issuances of
    senior debt securities


272,079







99,067Payments on senior debt securities


(150,000
)


(28,940
)


(21,060
)Net proceeds from issuances of
    preferred units


48,086



72,344



Issuance costs on preferred units


(217
)






(169
)Repurchase of preferred units


(98,080
)






Cash transferred to unconsolidated
    joint venture










(2,897
)Contributions from co-investment
    partners


189,110



160,544



192,956Distributions paid to partners


(180,626
)


(160,430
)


(152,311
)Distributions to minority
    interests, including preferred units


(163,366
)


(418,729
)


(89,855
)Net cash provided by/(used in)
    financing activities


483,621



(101,856
)


409,705Net effect of exchange rate changes
    on cash


2,966



(10,063
)


6,062Net (decrease) increase in cash and
    cash equivalents


(58,118
)


123,489



(18,286
)Cash and cash equivalents at
    beginning of period


232,881



109,392



127,678Cash and cash equivalents at end of
    period

$
174,763


$
232,881


$
109,392Supplemental Disclosures of Cash
    Flow InformationCash paid for interest, net of
    capitalized interest

$
159,389


$
174,246


$
171,298Non-cash transactions:Acquisition of properties

$
689,832


$
519,106


$
695,169Assumption of secured debt


(134,651
)


(74,173
)


(210,233
)Assumption of other assets and
    liabilities


(17,931
)


(5,994
)


(59,970
)Acquisition capital


(20,061
)


(13,979
)


(8,097
)Minority interests
    contributions, including units issued


(65,249
)


(873
)


(1,835
)Net cash paid for acquisitions

$
451,940


$
424,087


$
415,034Preferred unit redemption issuance
    costs

$
1,070


$



$
Contribution of properties to
    unconsolidated joint ventures, net

$
161,967


$
27,282


$
9,467Deconsolidation of AMB
    Institutional Alliance Fund III, L.P.,

$
93,876


$



$
    F-6




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
 December 31,
    2006 and 2005
  1.
    Organization
    and Formation of the Company  ® ®
  day-to-day
         F-7




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
      
    on an owned and managed basis, which include investments held on
    a consolidated basis or through unconsolidated joint ventures,
    the Operating Partnership owned or partially owned 964
    industrial buildings, principally warehouse distribution
    buildings, encompassing approximately 100.7 million
    rentable square feet that were 96.1% leased;
    on an owned and managed basis, which include investments held on
    an unconsolidated basis or through unconsolidated joint
    ventures, the Operating Partnership had investments in 45
    industrial development projects which are expected to total
    approximately 13.7 million rentable square feet upon
    completion;
    on a consolidated basis, the Operating Partnership owned nine
    development projects, totaling approximately 2.7 million
    rentable square feet that are available for sale or
    contribution; and
    through other non-managed unconsolidated joint ventures, the
    Operating Partnership had investments in 46 industrial operating
    properties, totaling approximately 7.4 million rentable
    square feet, and one industrial operating property, totaling
    approximately 0.2 million square feet which is available
    for sale or contribution.  2.
    Summary
    of Significant Accounting Policies  Basis of Presentation.
  Use of Estimates.
  Reclassifications.
  Investments in Real Estate. property-by-property
 F-8




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
      Depreciation and Amortization Expense

Estimated Lives

2006


2005


2004Building costs

5-40 years

$
81,565


$
85,192


$
68,329Building costs on ground leases

5-40 years


19,173



16,631



31,268Buildings and improvements:Roof/HVAC/parking lots

5-40 years


10,016



6,928



6,072Plumbing/signage

7-25 years


2,469



2,111



1,704Painting and other

5-40 years


11,479



15,035



13,516Tenant improvements

Over initial lease term


19,901



21,635



20,246Lease commissions

Over initial lease term


19,990



21,095



19,655Total real estate depreciation and
    amortization




164,593



168,627



160,790Other depreciation and amortization

Various


15,384



11,677



6,560Discontinued operations
    depreciation

Various


(2,153
)


(18,572
)


(30,740
)Total depreciation and
    amortization from continuing operations



$
177,824


$
161,732


$
136,610       Investments in Consolidated and Unconsolidated Joint
    Ventures.
  04-5, Determining Whether
 F-9




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
  a General Partner, or the General Partners as a Group,
    Controls a Limited Partnership or Similar Entity When the
    Limited Partners Have Certain Rights Consolidation of Variable Interest Entities 04-5, 04-5,
  Accounting for Certain Financial Instruments with
    Characteristics of Both Liabilities and Equity
  Cash and Cash Equivalents.
  Restricted Cash.
  Mortgages and Loans Receivable.
  Accounts Receivable.
  Concentration of Credit Risk.
 F-10




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
    Deferred Financing Costs.
  Goodwill and Intangible Assets.
  Financial Instruments. Accounting for Derivative Instruments and for Hedging
    Activities,
  Debt.
  Debt Premiums.
  Rental Revenues and Allowance for Doubtful
    Accounts.
  Private Capital Income.
 F-11




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
    Other Income.
  Development Profits, Net of Taxes.
  Gains from Dispositions of Real Estate.
  Discontinued Operations. Accounting for the Impairment or
    Disposal of Long-Lived Assets
  International Operations.
      New Accounting Pronouncements. Accounting for Uncertainty in Income
    Taxes  An Interpretation of FASB Statement
    No. 109,
 F-12




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
    Considering
    the Effects of Prior Year Misstatements When Quantifying
    Misstatements in Current Year Financial Statements,
  3.
    Real
    Estate Acquisition and Development Activity  Acquisition Activity.
  Development Starts.
  Development Completions.
  Development Pipeline.
 F-13




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
    4.
    Gains
    from Dispositions of Real Estate Interests, Development Sales
    and Discontinued Operations  Gains from Dispositions of Real Estate
    Interests.
    Development Sales.
    development-for-sale
  Discontinued Operations.
 F-14




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
         Development Contributions.
      Properties Held for Contribution. 15-50%.
  Properties Held for Divestiture. development-for-sale
 F-15




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
     2006


2005


2004Rental revenues

$
14,351


$
79,171


$
114,970Straight-line rents and
    amortization of lease intangibles


589



2,239



2,278Property operating expenses


(3,267
)


(13,179
)


(18,265
)Real estate taxes


(1,721
)


(9,642
)


(14,371
)Depreciation and amortization


(2,153
)


(18,572
)


(30,740
)General and administrative


(13
)


(85
)


(113
)Other income and expenses, net


19



165



200Interest, including amortization


1,540



(17,383
)


(18,112
)Joint venture partners share
    of income


426



(8,006
)


(12,707
)Income attributable to
    discontinued operations

$
9,771


$
14,708


$
23,140     2006

2005Other assets

$
1


$
1Accounts payable and other
    liabilities

$
286


$
1,884   5.
    Mortgage
    and Loan Receivables    Mortgage and Loan Receivables

Market


Maturity


2006


2005


Rate1 Pier 1


SF Bay Area



May 2026


$
12,686


$
12,821



13.0
%2 G.Accion


Mexico, Various



March 2010



6,061



8,800



10.0
%Total Mortgage and Loan Receivables









$
18,747


$
21,621  F-16




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
  6.
    Debt    2006


2005Operating Partnership secured
    debt, varying interest rates from 4.3% to 10.4%, due
    February 1, 2007 to April 2020 (weighted average interest
    rate of 5.6% and 4.1% at December 31, 2006 and 2005,
    respectively)

$
368,332


$
522,459Consolidated joint venture secured
    debt, varying interest rates from 2.9% to 9.4%, due March 2007
    to January 2025 (weighted average interest rates of 6.5% and
    6.3% at December 31, 2006 and 2005, respectively)


1,020,678



1,378,083Unsecured senior debt securities,
    varying interest rates from 3.5% to 8.0%, due January 2007 to
    June 2018 (weighted average interest rates of 6.2% and 6.2% at
    December 31, 2006 and December 31, 2005, respectively,
    and net of unamortized discounts of $10.6 million and
    $12.5 million, respectively)


1,112,491



975,000Other debt, varying interest rates
    from 5.1% to 7.5%, due June 2007 to November 2015 (weighted
    average interest rates of 6.6% and 8.2% at December 31,
    2006 and December 31, 2005, respectively)


88,154



23,963Unsecured credit facilities,
    variable interest rate, due February 2010 and June 2010
    (weighted average interest rates of 3.1% and 2.2% at
    December 31, 2006 and 2005, respectively)


852,033



490,072Total debt before unamortized net
    premiums (discounts)


3,441,688



3,389,577Unamortized net premiums
    (discounts)


(4,273
)


11,984Total consolidated debt

$
3,437,415


$
3,401,561      F-17




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
        F-18




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
       Operating


Consolidated


UnsecuredPartnership


Joint Venture


SeniorSecured


Secured


Debt


Other


CreditDebt


Debt


Securities


Debt


Facilities


Total2007

$
12,929


$
84,815


$
100,000


$
16,125


$



$
213,8692008


41,906



173,029



175,000



810







390,7452009


3,536



96,833



100,000



971







201,3402010


69,327



112,918



250,000



941



852,033



1,285,2192011


3,094



228,708



75,000



1,014







307,8162012


5,085



169,717







1,093







175,8952013


38,668



55,168



175,000



65,920







334,7562014


186,864



4,261







616







191,7412015


2,174



19,001



112,491



664







134,3302016


4,749



50,648















55,397Thereafter






25,580



125,000











150,580Total

$
368,332


$
1,020,678


$
1,112,491


$
88,154


$
852,033


$
3,441,688  F-19




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
  7.
    Leasing
    Activity    2007

$
488,7382008


409,7282009


335,6382010


264,6332011


196,729Thereafter


352,884Total

$
2,048,350     8.
    Income
    Taxes      2006


2005


2004Net income available to common
    unitholders attributable to the general partner

$
209,420


$
250,419


$
118,340Book depreciation and amortization


177,824



161,732



136,610Book depreciation discontinued
    operations


2,153



18,572



30,740Impairment losses


6,312







Tax depreciation and amortization


(155,467
)


(152,084
)


(141,368
)Book/tax difference on gain on
    divestitures and contributions of real estate


(108,777
)


(23,104
)


(7,409
)Book/tax difference in stock
    option expense


(50,030
)


(35,513
)


(15,069
)Other book/tax differences, net(1)


(3,436
)


(35,348
)


(14,786
)Taxable income available to common
    unitholders

$
77,999


$
184,674


$
107,058     (1)
    
    Primarily due to straight-line rent, prepaid rent, joint venture
    accounting and debt premium amortization timing differences. F-20




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
     2006


2005


2004Ordinary income

$
0.53



38.4
%

$
0.50



23.0
%

$
0.78



46.1
%Capital gains


0.16



11.6
%


1.34



61.1
%


0.37



21.9
%Unrecaptured Section 1250 gain


0.20



14.4
%


0.35



15.9
%


0.15



8.9
%Dividends paid or payable


0.89



64.4
%


2.19



100.0
%


1.30



76.9
%Return of capital


0.49



35.6
%






0.0
%


0.39



23.10Total distributions

$
1.38



100.0
%

$
2.19



100.0
%

$
1.69



100.0
%   9.
    Minority
    Interests in Consolidated Joint Ventures and Preferred
    Units  Consolidation of Variable Interest Entities.
        OperatingPartnerships


Total InvestmentOwnership


in Real Estate(1)


Property Debt(2)


Other DebtCo-investment Joint Venture

Joint Venture Partner

Percentage


2006


2005


2006


2005


2006


2005AMB/Erie, L.P.

Erie Insurance Company and
    affiliates


50
%

$
52,942


$
99,722


$
20,605


$
40,710


$



$
AMB Partners II, L.P.

City and County of
    San Francisco Employees Retirement System


20
%


679,138



592,115



323,532



291,684



65,000



AMB-SGP, L.P.

Industrial JV Pte Ltd(3)


50
%


444,990



436,713



235,480



239,944







AMB Institutional Alliance
    Fund II, L.P.

AMB Institutional Alliance
    REIT II, Inc.(4)


20
%


519,534



507,493



243,263



245,056







AMB-AMS,
    L.P.(5)

PMT, SPW and TNO(6)


39
%


153,563



146,007



78,904



63,143







AMB Institutional Alliance
    Fund III, L.P.(7)

AMB Institutional Alliance
    REIT III, Inc.


23
%






749,634







421,290







Total







$
1,850,167


$
2,531,684


$
901,784


$
1,301,827


$
65,000


$
     (1)
    
    The Operating Partnership also had other consolidated joint
    ventures with total investments in real estate of
    $579.3 million as of December 31, 2006. F-21




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
   (2)
    
    The Operating Partnership also had other consolidated joint
    ventures with property debt of $123.6 million as of
    December 31, 2006.(3)
    
    A subsidiary of GIC Real Estate Pte. Ltd., the real estate
    investment subsidiary of the Government of Singapore Investment
    Corporation.(4)
    
    Comprised of 14 institutional investors as stockholders and one
    third-party limited partner as of December 31, 2006.(5)
    
    AMB-AMS,
    L.P. is a co-investment partnership with three Dutch pension
    funds.(6)
    
    PMT is Stichting Pensioenfonds Metaal en Techniek, SPW is
    Stichting Pensioenfonds voor de Woningcorporaties and TNO is
    Stichting Pensioenfonds TNO.(7)
    
    AMB Institutional Alliance Fund III, L.P., is an open-ended
    co-investment partnership formed in 2004 with institutional
    investors, which effective October 1, 2006, was
    deconsolidated on a prospective basis.    2006


2005Joint venture partners

$
555,201


$
853,643Held through AMB Property II,
    L.P.:Class B Limited Partners


27,281



2,950Series D preferred units
    (liquidation preference of $79,767)


77,684



77,684Series E preferred units
    (repurchased in June 2006)






10,788Series F preferred units
    (repurchased in September 2006)






9,900Series H preferred units
    (repurchased in March 2006)






40,912Series I preferred units
    (liquidation preference of $25,500)


24,799



24,800Series N preferred units
    (repurchased in January 2006)






36,479Total minority interests

$
684,965


$
1,057,156     2006


2005


2004Joint venture partners

$
37,975


$
36,401


$
29,360Joint venture partners share
    of development profits


665



11,230



523Held through AMB Property II,
    L.P.:Class B common limited
    partnership units


815



115



102Series D preferred units
    (liquidation preference of $79,767)


6,182



6,182



6,182Series E preferred units
    (repurchased in June 2006)


392



854



854Series F preferred units
    (repurchased in September 2006)


546



800



800Series H preferred units
    (repurchased in March 2006)


815



3,413



3,413Series I preferred units
    (liquidation preference of $25,500)


2,040



2,040



2,040Series N preferred units
    (repurchased in January 2006)


127



1,824



512Total minority interests
    share of net income

$
49,557


$
62,859


$
43,786  F-22




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
  10.
    Investments
    in Unconsolidated Joint Ventures      OperatingPartnershipsSquare








OwnershipUnconsolidated Joint Ventures

Feet


2006


2005


PercentageCo-Investment Joint
    VenturesAMB-SGP Mexico, LLC(1)


2,737,515


$
7,601


$
16,218



20
%AMB Japan Fund I, L.P.(2)


3,814,773



31,811



10,112



20
%AMB Institutional Alliance
    Fund III, L.P.(3)


13,963,806



136,971







23
%AMB DFS Fund I, LLC(4)


N/A



11,700







15
%Other Industrial Operating
    Joint Ventures


7,684,931



47,955



41,520



53
%Other Industrial Development
    Joint Ventures


N/A







6,176Other Investment 
    G.Accion(5)


N/A



38,343



44,627



39
%Total Unconsolidated Joint
    Ventures


28,201,025


$
274,381


$
118,653     (1)
    
    AMB-SGP Mexico, LLC, is a co-investment partnership formed in
    2004 with Industrial (Mexico) JV Pte. Ltd., a subsidiary of GIC
    Real Estate Pte. Ltd, the real estate investment subsidiary of
    the Government of Singapore Investment Corporation. Includes
    $5.5 million of shareholder loans outstanding at
    December 31, 2006 between the Operating Partnership and the
    co-investment partnership.(2)
    
    AMB Japan Fund I, L.P. is a co-investment partnership
    formed in 2005 with institutional investors.(3)
    
    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 REIT. Prior to
    October 1, 2006, the Operating Partnership accounted for
    AMB Institutional Alliance Fund III, L.P. as a consolidated
    joint venture.(4)
    
    AMB DFS Fund I, LLC is a co-investment partnership formed
    in 2006 with a subsidiary of GE Real Estate to build and sell
    properties.(5)
    
    The Operating Partnership has 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. F-23




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
     Income (loss)Net




















from


NetInvestment


Total


Total


Total


Minority








Continuing


Income2006

in Properties


assets


debt


liabilities


Interests


Equity


Revenues


Operations


(loss)Co-Investment Joint
    Ventures:AMB-SGP Mexico, LLC(1)

$
158,959


$
172,533


$
106,700


$
162,963


$
1,082


$
8,488


$
14,514


$
(6,796
)

$
(6,796
)AMB Japan Fund I, L.P.(2)


595,859



673,811



450,270



483,835



48,570



141,406



19,217



1,716



1,716AMB Institutional Alliance
    Fund III, L.P.(3)


1,279,564



1,318,709



675,500



714,072



3,090



601,547



80,160



12,691



33,842AMB DFS Fund I, LLC(4)


78,450



78,475















78,475











Other Industrial Operating Joint
    Ventures


223,679



241,085



184,423



193,394







47,691



37,238



11,529



26,139Other Investments:G. Accion(5)


9,536



158,733



14,881



45,380



1,610



111,743



18,294



(51,399
)


21,532Total Unconsolidated Joint
    Ventures

$
2,346,047


$
2,643,346


$
1,431,774


$
1,599,644


$
54,352


$
989,350


$
169,423


$
(32,259
)

$
76,433   Income (loss)Net




















from


NetInvestment


Total


Total


Total


Minority








Continuing


Income2005

in Properties


assets


debt


liabilities


Interests


Equity


Revenues


Operations


(loss)Co-Investment Joint
    Ventures:AMB-SGP Mexico, LLC(1)

$
105,123


$
127,509


$
65,351


$
86,522


$
81,663


$
(40,676
)

$
9,288


$
(4,892
)

$
(4,892
)AMB Japan Fund I, L.P.(2)


121,161



161,469



73,893



106,008



10,043



45,418



6,736



871



871Other Industrial Operating Joint
    Ventures


279,526



297,874



232,503



239,335







58,539



42,031



9,659



9,713Other Industrial Development
    Joint Ventures


33,190



34,542



21,596



22,856



5,471



6,216



732



(305
)


(305
)Other Investments:G. Accion(5)


116,549



249,193



91,730



126,456



832



121,905



49,605



(33,977
)


1,750Total Unconsolidated Joint
    Ventures

$
655,549


$
870,587


$
485,073


$
581,177


$
98,009


$
191,402


$
108,392


$
(28,644
)

$
7,137   Income (loss)Net




















from


NetInvestment


Total


Total


Total


Minority








Continuing


Income2004

in Properties


assets


debt


liabilities


Interests


Equity


Revenues


Operations


(loss)Co-Investment Joint
    Ventures:AMB-SGP Mexico, LLC(1)

$
73,300


$
103,223


$
16,405


$
46,870


$
48,631


$
7,722


$



$



$
Other Industrial Operating Joint
    Ventures


275,269



290,734



223,215



230,224







60,510



38,112



6,765



7,471Other Industrial Development
    Joint Ventures


31,640



35,287



27,664



29,360



3,108



2,818







(3
)


(3
)Total Unconsolidated Joint
    Ventures

$
380,209


$
429,244


$
267,284


$
306,454


$
51,739


$
71,050


$
38,112


$
6,762


$
7,468     (1)
    
    AMB-SGP Mexico, LLC, is a co-investment partnership formed in
    2004 with Industrial (Mexico) JV Pte. Ltd., a subsidiary of GIC
    Real Estate Pte. Ltd, the real estate investment subsidiary of
    the Government of Singapore Investment Corporation. Includes
    $5.5 million of shareholder loans outstanding at
    December 31, 2006 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.(3)
    
    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 REIT. Prior to
    October 1, 2006, the Operating Partnership accounted for
    AMB Institutional Alliance Fund III, L.P. as a consolidated
    joint venture.(4)
    
    AMB DFS Fund I, LLC is a co-investment partnership formed
    in 2006 with a subsidiary of GE Real Estate to build and sell
    properties.(5)
    
    The Operating Partnership has 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.   F-24




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
        development-for-sale
     F-25




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
    11.
    Partners
    Capital  one-for-one
           F-26




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
               F-27




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
      Paying Entity

Security

2006


2005


2004AMB Property, L.P.

Common limited partnership units

$
1.84


$
1.76


$
1.70AMB Property, L.P.

Series J preferred units

$
3.98


$
3.98


$
3.98AMB Property, L.P.

Series K preferred units

$
3.98


$
3.98


$
3.98AMB Property II, L.P.

Class B common limited
    partnership units

$
1.84


$
1.76


$
1.70AMB Property II, L.P.

Series D preferred units

$
3.88


$
3.88


$
3.88AMB Property II, L.P.

Series E preferred units(1)

$
1.78


$
3.88


$
3.88AMB Property II, L.P.

Series F preferred units(2)

$
2.72


$
3.98


$
3.98AMB Property II, L.P.

Series H preferred units(3)

$
0.97


$
4.06


$
4.06AMB Property II, L.P.

Series I preferred units

$
4.00


$
4.00


$
4.00AMB Property II, L.P.

Series N preferred units(4)

$
0.22


$
2.50


$
0.70     (1)
    
    In June 2006, AMB Property II, L.P. repurchased all of its
    outstanding Series E preferred units.(2)
    
    In September 2006, AMB Property II, L.P. repurchased all of
    its outstanding Series F preferred units.(3)
    
    In March 2006, AMB Property II, L.P. repurchased all of its
    outstanding Series H preferred units.(4)
    
    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 and AMB
    Property II, L.P. repurchased all of such units from the
    Operating Partnership.  12.
    Stock
    Incentive Plan, 401(k) Plan and Deferred Compensation
    Plan  Stock Incentive Plans. one-for-one
  Share Based Payment, Accounting
    for Stock-Based Compensation
 F-28




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
         F-29




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
     Shares


Weighted


OptionsUnder


Average


ExercisableOption


Exercise Price


at Year EndOutstanding as of
    December 31, 2003


10,286


$
23.92



7,210Granted


1,253



34.88Exercised


(1,233
)


22.45Forfeited


(85
)


29.43Outstanding as of
    December 31, 2004


10,221



25.40



7,841Granted


1,086



38.94Exercised


(2,033
)


24.24Forfeited


(126
)


35.32Outstanding as of
    December 31, 2005


9,148



27.14



7,237Granted


874



51.89Exercised


(3,081
)


24.16Forfeited


(98
)


42.18Outstanding as of
    December 31, 2006


6,843


$
31.42



5,404Remaining average contractual life


6.0 yearsFair value of options granted
    during the year

$
8.54     WeightedAverage


Currently ExercisableWeighted


Remaining





WeightedRange of

Number


Average


Contractual


Number


AverageExercise Price

of Options


Exercise Price


Life in Years


of Options


Exercise Price$20.19 - $24.69


1,937


$
22.52



3.4



1,936


$
22.52$25.06 - $30.81


2,293



27.10



5.8



2,291



27.10$30.81 - $44.65


1,774



37.06



7.6



1,004



36.61$44.65 - $61.35


839



51.89



9.2



173



51.926,843











5,404     WeightedNumber


AverageUnvested Options

of Options


Exercise PriceUnvested at December 31, 2005


1,912


$
27.14Granted


874



51.89Vested


(1,250
)


36.23Forfeited


(97
)


42.15Unvested at December 31, 2006


1,439


$
43.54  F-30




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
    pay-for-performance
    Weighted AverageGrant DateUnvested Shares

Shares


Fair ValueUnvested at December 31, 2005


548


$
34.41Granted


450



51.92Vested


(330
)


35.97Forfeited


(56
)


45.68Unvested at December 31, 2006


612


$
45.43     401(k) Plan.
    Deferred Compensation Plans.
 F-31




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
  and/or
  13.
    Income
    Per Unit  one-for-one
  2006


2005


2004NumeratorIncome from continuing operations
    before cumulative effect of change in accounting principle

$
185,228


$
142,227


$
70,660Preferred unit distributions


(19,942
)


(13,748
)


(13,491
)Preferred unit issuance costs


(1,070
)






Income from continuing operations
    before cumulative effect of change in accounting principle
    (after preferred unit distributions)


164,216



128,479



57,169Total discontinued operations


54,454



135,522



67,856Cumulative effect of change in
    accounting principle


193







Net income available to common
    unitholders

$
218,863


$
264,001


$
125,025DenominatorBasic


92,047,678



88,684,262



86,885,250Stock options and restricted stock
    dilution(1)


3,396,394



3,824,463



3,235,000Diluted weighted average common
    units


95,444,072



92,508,725



90,120,250Basic income per common
    unitIncome from continuing operations
    (after preferred unit distributions) before cumulative effect of
    change in accounting principle

$
1.79


$
1.45


$
0.66Discontinued operations


0.59



1.53



0.78Cumulative effect of change in
    accounting principle










Net income available to common
    unitholders

$
2.38


$
2.98


$
1.44Diluted income per common
    unitIncome from continuing operations
    (after preferred unit distributions) before cumulative effect of
    change in accounting principle

$
1.72


$
1.39


$
0.64Discontinued operations


0.57



1.46



0.75Cumulative effect of change in
    accounting principle










Net income available to common
    unitholders

$
2.29


$
2.85


$
1.39     (1)
    
    Excludes anti-dilutive stock options of 48,196, 56,463 and
    62,380, respectively, for the years ended December 31,
    2006, 2005, and 2004. F-32




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
   14.
    Commitments
    and Contingencies  Commitments
  Lease Commitments.
  2007

$
21,6362008


22,1862009


21,5062010


20,6672011


20,668Thereafter


272,483Total

$
379,146   Standby Letters of Credit.
  Guarantees.
  Performance and Surety Bonds.
  Promoted Interests and Other Contractual
    Obligations.
  Contingencies
  Litigation.
 F-33




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
   Environmental Matters.
  General Uninsured Losses.
    Captive Insurance Company.
 F-34




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
   15.
    Quarterly
    Financial Data (Unaudited)    Quarter (unaudited)(1)2006

March 31


June 30


September 30


December 31


YearTotal revenues

$
177,711


$
177,068


$
184,451


$
190,666


$
729,896Income before minority interests
    and discontinued operations cumulative effect of change in
    accounting principle


32,477



69,522



49,082



83,704



234,785Total minority interests
    share of income


(12,201
)


(11,248
)


(14,395
)


(11,713
)


(49,557
)Income from continuing operations
    before cumulative effect of change in accounting principle


20,276



58,274



34,687



71,991



185,228Total discontinued operations


9,900



22,264



1,539



20,751



54,454Cumulative effect of change in
    accounting principle


193















193Net income


30,369



80,538



36,226



92,742



239,875Preferred unit distributions


(4,686
)


(4,685
)


(5,030
)


(5,541
)


(19,942
)Preferred unit redemption
    (issuance costs)/discount


(1,097
)


77



16



(66
)


(1,070
)Net income available to common
    unitholders

$
24,586


$
75,930


$
31,212


$
87,135


$
218,863Basic income per common
    unit(2)Income from continuing operations

$
0.16


$
0.59


$
0.32


$
0.71


$
1.79Discontinued operations


0.11



0.24



0.02



0.22



0.59Cumulative effect of change in
    accounting principle


















Net income available to common
    unitholders

$
0.27


$
0.83


$
0.34


$
0.93


$
2.38Diluted income per common
    unit(2)Income from continuing operations

$
0.16


$
0.56


$
0.31


$
0.69


$
1.72Discontinued operations


0.10



0.24



0.02



0.21



0.57Cumulative effect of change in
    accounting principle


















Net income available to common
    unitholders

$
0.26


$
0.80


$
0.33


$
0.90


$
2.29WEIGHTED AVERAGE COMMON UNITS
    OUTSTANDINGBasic


90,821,246



91,702,701



92,088,600



93,671,504



92,047,678Diluted


94,567,680



94,520,866



95,117,597



97,087,889



95,444,072     (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-35




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
   Quarter (unaudited)(1)2005

March 31


June 30


September 30


December 31


YearTotal revenues

$
152,931


$
154,512


$
156,819


$
196,613


$
660,875Income before minority interests
    and discontinued operations


40,337



47,011



26,149



91,589



205,086Total minority interests
    share of income


(22,457
)


(12,878
)


(12,669
)


(14,855
)


(62,859
)Income from continuing operations


17,880



34,133



13,480



76,734



142,227Total discontinued operations


33,000



10,402



18,597



73,523



135,522Net income


50,880



44,535



32,077



150,257



277,749Preferred 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


$
264,001Basic income per common
    unit(2)Income from continuing operations

$
0.16


$
0.35


$
0.11


$
0.82


$
1.45Discontinued operations


0.38



0.12



0.21



0.82



1.53Net income available to common
    unitholders

$
0.54


$
0.47


$
0.32


$
1.64


$
2.98Diluted income per common
    unit(2)Income from continuing operations

$
0.16


$
0.34


$
0.11


$
0.78


$
1.39Discontinued operations


0.36



0.11



0.20



0.79



1.46 ,2Net income available to common
    unitholders

$
0.52


$
0.45


$
0.31


$
1.57


$
2.85WEIGHTED AVERAGE COMMON UNITS
    OUTSTANDINGBasic


87,857,933



88,241,361



89,098,104



89,451,565



88,684,262Diluted


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.  16.
    Segment
    Information   F-36




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
    non-U.S. target
    Rental Revenues


Property NOI(1)Segments

2006


2005


2004


2006


2005


2004Industrial U.S. hub and
    gateway markets:Atlanta

$
21,538


$
23,270


$
32,850


$
16,459


$
18,161


$
25,430Chicago


55,255



55,085



45,015



38,606



38,105



31,389Dallas/Fort Worth


16,493



16,791



16,551



11,089



11,491



11,218Los Angeles


111,191



108,625



106,306



87,708



86,300



83,288Northern New Jersey/New York


79,940



85,331



64,662



56,283



61,278



45,022San Francisco Bay Area


86,477



86,631



98,885



68,412



69,005



79,486Miami


40,311



35,953



36,833



27,678



24,188



24,136Seattle


38,968



44,368



41,675



30,668



34,394



32,539On-Tarmac


55,131



56,912



54,425



31,584



33,198



30,596Total industrial U.S. hub
    markets


505,304



512,966



497,202



368,487



376,120



363,104Other U.S. target markets


100,622



113,422



118,205



73,805



81,324



87,076Other U.S. non-target markets


17,144



20,084



18,061



12,412



14,531



13,811Non U.S. target markets


56,491



30,762



25,641



43,985



23,942



20,694Straight-line rents and
    amortization of lease intangibles


19,134



19,523



16,281



19,134



19,523



16,281Total other markets


39



1,586



5,358



99



1,153



3,010Discontinued operations


(14,940
)


(81,410
)


(117,248
)


(9,952
)


(58,589
)


(84,612
)Total

$
683,794


$
616,933


$
563,500


$
507,970


$
458,004


$
419,364     (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-37




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
     2006


2005


2004Property NOI

$
507,970


$
458,004


$
419,364Private capital income


46,102



43,942



12,895Depreciation and amortization


(177,824
)


(161,732
)


(136,610
)Impairment losses


(6,312
)






General and administrative


(104,262
)


(71,564
)


(57,181
)Other expenses


(2,620
)


(5,038
)


(2,554
)Fund costs


(2,091
)


(1,482
)


(1,741
)Equity in earnings of
    unconsolidated joint ventures


23,240



10,770



3,781Other income


9,423



5,593



4,700Gains from dispositions of real
    estate






19,099



5,219Development profits, net of taxes


106,389



54,811



8,528Interest, including amortization


(165,230
)


(147,317
)


(141,955
)Total minority interests
    share of income


(49,557
)


(62,859
)


(43,786
)Total discontinued operations


54,454



135,522



67,856Cumulative effect of change in
    accounting principle


193







Net income

$
239,875


$
277,749


$
138,516     Total Assets as ofDecember 31,December 31, 2006


2005Industrial U.S. hub and
    gateway markets:Atlanta

$
162,980


$
208,751Chicago


447,995



504,581Dallas/Fort Worth


140,847



137,112Los Angeles


897,057



930,917Northern New Jersey/New York


607,727



756,719San Francisco Bay Area


707,139



789,129Miami


370,304



372,728Seattle


381,306



371,029On-Tarmac


210,798



245,046Total industrial U.S. hub
    markets


3,926,153



4,316,012Other U.S. target markets


578,251



693,287Other non-target markets and other


111,556



264,954Non U.S. target markets


1,428,420



975,960Total other markets






10,277Investments in unconsolidated
    joint ventures


274,381



118,653Non-segment assets


394,751



423,596Total assets

$
6,713,512


$
6,802,739  F-38




---



##### Table of Contents



AMB
    PROPERTY, L.P.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
 December 31,
    2006 and 2005
  17.
    Subsequent
    Event     F-39




---



##### Table of Contents



AMB PROPERTY, L.P.SCHEDULE IIICONSOLIDATED REAL ESTATE AND ACCUMULATED DEPRECIATIONAs of December 31, 2006CostsInitial Cost to Company


Capitalized


Gross Amount Carried at
    12/31/06





Year ofNo of













Building &


Subsequent to





Building &


Total Costs


Accumulated


Construction/


Depreciable LifeProperty

Bldgs


Location

Type


Encumbrances(3)


Land


Improvements


Acquisition


Land


Improvements


(1)(2)


Depreciation(4)


Acquisition


(Years)(In thousands, except number of buildings)AtlantaAirport Plaza


3


GA


IND


$
4,275


$
1,811


$
5,093


$
974


$
1,811


$
6,067


$
7,878


$
785



2003



5-40Airport South Business Park


8


GA


IND



16,086



9,200



16,436



14,476



9,200



30,912



40,112



5,341



2001



5-40Atlanta South Business Park


9


GA


IND







8,047



24,180



4,348



8,047



28,528



36,575



7,728



1997



5-40AMB Garden City Industrial


1


GA


IND







441



2,604



147



462



2,730



3,192



213



2004



5-40South Ridge at Hartsfield


1


GA


IND



3,828



2,096



4,008



1,130



2,096



5,138



7,234



872



2001



5-40Southfield/KRDC Industrial SG


13


GA


IND



32,177



13,578



35,730



8,591



13,578



44,321



57,899



7,672



1997



5-40Southside Distribution Center


1


GA


IND



1,064



766



2,480



105



766



2,585



3,351



385



2001



5-40Sylvan Industrial


1


GA


IND







1,946



5,905



724



1,946



6,629



8,575



1,407



1999



5-40ChicagoAddison Business Center


1


IL


IND







1,060



3,228



389



1,060



3,617



4,677



742



2000



5-40Alsip Industrial


1


IL


IND







1,200



3,744



737



1,200



4,481



5,681



1,013



1998



5-40Belden Avenue SGP


3


IL


IND



9,486



5,393



13,655



1,176



5,487



14,737



20,224



3,345



2001



5-40Bensenville Ind Park


13


IL


IND







20,799



62,438



23,187



20,799



85,625



106,424



25,407



1993



5-40Bridgeview Industrial


1


IL


IND







1,332



3,996



561



1,332



4,557



5,889



1,136



1995



5-40Chancellory Park


8


IL


IND



35,838



24,491



31,848



1,725



24,491



33,573



58,064



1,106



2002



5-40Chicago Industrial Portfolio


1


IL


IND







762



2,285



749



762



3,034



3,796



787



1992



5-40Chicago Ridge Freight Terminal


1


IL


IND







3,705



3,576



206



3,705



3,782



7,487



567



2001



5.40AMB District Industrial


1


IL


IND







703



1,338



173



703



1,511



2,214



191



2004



5-40Elk Grove Village SG


10


IL


IND



15,948



7,059



21,739



5,095



7,059



26,834



33,893



5,928



2001



5-40Executive Drive


1


IL


IND







1,399



4,236



1,599



1,399



5,835



7,234



1,727



1997



5-40AMB Golf Distribution


1


IL


IND



13,922



7,740



16,749



823



7,740



17,572



25,312



1,207



2005



5-40Hamilton Parkway


1


IL


IND







1,554



4,408



563



1,554



4,971



6,525



1,254



1995



5-40Hintz Building


1


IL


IND







420



1,259



402



420



1,661



2,081



428



1998



5-40Itasca Industrial Portfolio


5


IL


IND







3,830



11,537



2,958



3,830



14,495



18,325



4,703



1994



5-40AMB Kehoe Industrial


1


IL


IND







2,000



3,006







2,000



3,006



5,006



39



2006



5-40Melrose Park Distribution Ctr


1


IL


IND







2,936



9,190



2,398



2,936



11,588



14,524



3,892



1995



5-40NDP  Chicago


3


IL


IND







1,496



4,487



1,271



1,496



5,758



7,254



1,744



1998



5-40AMB Nicholas Logistics Center


1


IL


IND







4,681



5,811



1,883



4,681



7,694



12,375



798



2001



5-40AMB OHare


14


IL


IND



8,987



2,924



8,995



3,002



2,924



11,997



14,921



2,511



2001



5-40OHare Industrial Portfolio


12


IL


IND







5,497



20,238



1,806



5,497



22,044



27,541



5,963



1996



5-40Poplar Gateway Truck Terminal


1


IL


IND







4,551



3,152



806



4,551



3,958



8,509



371



2002



5-40AMB Port OHare


2


IL


IND



5,739



4,913



5,761



1,300



4,913



7,061



11,974



1,567



2001



5-40AMB Sivert Distribution


1


IL


IND







857



1,377



744



857



2,121



2,978



260



2004



5-40Stone Distribution Center


1


IL


IND



2,781



2,242



3,266



801



2,242



4,067



6,309



463



2003



5-40AMB Territorial Industrial


1


IL


IND







954



3,451



5



954



3,456



4,410



53



2006



5-40Thorndale Distribution


1


IL


IND



5,252



4,130



4,216



531



4,130



4,747



8,877



731



2002



5-40Touhy Cargo Terminal


1


IL


IND



5,056



2,800



110



4,615



2,800



4,725



7,525



450



2002



5-40 S-1




---



##### Table of Contents



AMB PROPERTY, L.P.SCHEDULE IIICONSOLIDATED REAL ESTATE AND ACCUMULATED DEPRECIATIONAs of December 31, 2006CostsInitial Cost to Company


Capitalized


Gross Amount Carried at
    12/31/06





Year ofNo of













Building &


Subsequent to





Building &


Total Costs


Accumulated


Construction/


Depreciable LifeProperty

Bldgs


Location

Type


Encumbrances(3)


Land


Improvements


Acquisition


Land


Improvements


(1)(2)


Depreciation(4)


Acquisition


(Years)(In thousands, except number of buildings)West OHare CC


2


IL


IND



5,892



8,523



14,848



1,761



8,523



16,609



25,132



1,732



2001



5-40Windsor Court


1


IL


IND







766



2,338



165



766



2,503



3,269



612



1997



5-40Wood Dale Industrial SG


5


IL


IND



8,227



2,868



9,166



1,482



2,868



10,648



13,516



1,993



2001



5-40Yohan Industrial


3


IL


IND



4,364



5,904



7,323



1,656



5,904



8,979



14,883



1,349



2003



5-40Dallas/Ft. WorthAddison Technology Center


1


TX


IND







899



2,696



1,312



899



4,008



4,907



1,228



1998



5-40Dallas Industrial


12


TX


IND







5,938



17,836



5,980



5,938



23,816



29,754



7,856



1994



5-40Greater Dallas Industrial Port


4


TX


IND







4,295



14,285



3,971



4,295



18,256



22,551



5,676



1997



5-40Lincoln Industrial Center


1


TX


IND







671



2,052



1,426



671



3,478



4,149



760



1994



5-40Lonestar Portfolio


6


TX


IND



15,414



6,451



19,360



4,978



6,451



24,338



30,789



4,115



1994



5-40Northfield Dist. Center


7


TX


IND



21,453



9,313



27,388



3,676



9,313



31,064



40,377



3,519



2002



5-40Richardson Tech Center SGP


2


TX


IND



4,810



1,522



5,887



2,425



1,522



8,312



9,834



1,116



2001



5-40Valwood Industrial


2


TX


IND







1,983



5,989



2,476



1,983



8,465



10,448



2,745



1994



5-40West North Carrier Parkway


1


TX


IND







1,375



4,165



1,275



1,375



5,440



6,815



1,676



1993



5-40Los AngelesActivity Distribution Center


4


CA


IND







3,736



11,248



3,293



3,736



14,541



18,277



3,914



1994



5-40Anaheim Industrial Property


1


CA


IND







1,457



4,341



940



1,457



5,281



6,738



1,420



1994



5-40Artesia Industrial


23


CA


IND







21,764



65,270



15,301



21,764



80,571



102,335



21,873



1996



5-40Bell Ranch Distribution


5


CA


IND







6,904



12,915



1,415



6,904



14,330



21,234



2,286



2001



5-40Cabrillo Distribution Center


1


CA


IND



11,794



7,563



11,177



41



7,563



11,218



18,781



1,134



2002



5-40Carson Industrial


12


CA


IND







4,231



10,418



6,664



4,231



17,082



21,313



3,713



1999



5-40Carson Town Center


2


CA


IND







6,565



3,210



15,604



6,565



18,814



25,379



3,365



2000



5-40Chartwell Distribution Center


1


CA


IND







2,711



8,191



1,111



2,711



9,302



12,013



1,645



2000



5-40Del Amo Industrial Center


1


CA


IND







2,529



7,651



231



2,529



7,882



10,411



1,206



2000



5-40Eaves Distribution Center


3


CA


IND



14,341



11,893



12,708



3,317



11,893



16,025



27,918



3,239



2001



5-40Fordyce Distribution Center


1


CA


IND



7,054



5,835



10,985



917



5,835



11,902



17,737



1,346



2001



5-40Ford Distribution Cntr


7


CA


IND







24,557



22,046



5,261



24,557



27,307



51,864



4,750



2001



5-40Harris Bus Ctr Alliance II


9


CA


IND



31,095



20,772



31,050



4,370



20,863



35,329



56,192



6,706



2000



5-40Hawthorne LAX Cargo AMBPTNII


1


CA


IND



7,952



2,775



8,377



519



2,775



8,896



11,671



1,436



2000



5-40LA Co Industrial Port SGP


6


CA


IND



21,596



9,430



29,242



6,600



9,432



35,840



45,272



5,700



2001



5-40LAX Gateway


1


CA


IND



15,960







26,814



425







27,239



27,239



3,093



2004



5-40Los Nietos Business Center SG


4


CA


IND



7,504



2,488



7,751



1,103



2,488



8,854



11,342



1,635



2001



5-40International Multifoods


1


CA


IND







1,613



4,879



1,751



1,613



6,630



8,243



1,910



1993



5-40NDP  Los Angeles


6


CA


IND







5,948



17,844



4,879



5,948



22,723



28,671



5,520



1998



5-40Normandie Industrial


1


CA


IND







2,398



7,491



3,095



2,398



10,586



12,984



2,370



2000



5-40Northpointe Commerce


2


CA


IND







1,773



5,358



788



1,773



6,146



7,919



1,646



1993



5-40Pioneer-Alburtis


5


CA


IND



7,821



2,422



7,166



1,302



2,422



8,468



10,890



1,645



2001



5-40 S-2




---



##### Table of Contents



AMB PROPERTY, L.P.SCHEDULE IIICONSOLIDATED REAL ESTATE AND ACCUMULATED DEPRECIATIONAs of December 31, 2006CostsInitial Cost to Company


Capitalized


Gross Amount Carried at
    12/31/06





Year ofNo of













Building &


Subsequent to





Building &


Total Costs


Accumulated


Construction/


Depreciable LifeProperty

Bldgs


Location

Type


Encumbrances(3)


Land


Improvements


Acquisition


Land


Improvements


(1)(2)


Depreciation(4)


Acquisition


(Years)(In thousands, except number of buildings)Park One at LAX, LLC


0


CA


IND







75,000



431



67



75,000



498



75,498



64



2002



5-40Slauson Dist. Ctr. AMBPTNII


8


CA


IND



24,706



7,806



23,552



6,163



7,806



29,715



37,521



5,307



2000



5-40Spinnaker Logistics


1


CA


IND



12,934



12,198



17,276



1,737



12,198



19,013



31,211



417



2004



5-40AMB Starboard Distribution Ctr


1


CA


IND







19,683



17,387



2,069



19,683



19,456



39,139



1,160



2005



5-40Sunset Dist. Center


3


CA


IND



13,725



13,360



2,765



10,022



13,360



12,787



26,147



1,311



2002



5-40Systematics


1


CA


IND







911



2,773



711



911



3,484



4,395



1,161



1993



5-40Torrance Commerce Center


6


CA


IND







2,045



6,136



1,604



2,045



7,740



9,785



2,281



1998



5-40AMB Triton Distribution Center


1


CA


IND



9,700



6,856



7,135



1,243



6,856



8,378



15,234



351



2005



5-40Van Nuys Airport Industrial


4


CA


IND







9,393



8,641



15,714



9,393



24,355



33,748



5,463



2000



5-40Walnut Drive


1


CA


IND







964



2,918



814



964



3,732



4,696



1,065



1997



5-40Watson Industrial Center AFdII


1


CA


IND



4,270



1,713



5,321



1,378



1,713



6,699



8,412



1,252



2001



5-40Wilmington Avenue Warehouse


2


CA


IND







3,849



11,605



4,525



3,849



16,130



19,979



4,284



1999



5-40MiamiBeacon Centre


18


FL


IND



65,798



31,704



96,681



26,393



31,704



123,074



154,778



24,905



2000



5-40Beacon Centre  Headlands


1


FL


IND







2,523



7,669



1,288



2,523



8,957



11,480



1,637



2000



5-40Beacon Industrial Park


8


FL


IND







10,105



31,437



9,388



10,105



40,825



50,930



9,881



1996



5-40Beacon Lakes


1


FL


IND



7,544



1,689



8,133



878



1,689



9,011



10,700



822



2002



5-40Blue Lagoon Business Park


2


FL


IND







4,945



14,875



2,439



4,945



17,314



22,259



4,486



1996



5-40Cobia Distribution Center


2


FL


IND



7,800



1,792



5,950



2,292



1,792



8,242



10,034



534



2004



5-40Dolphin Distribution Center


1


FL


IND



2,819



1,581



3,602



1,652



1,581



5,254



6,835



295



2003



5-40Gratigny Distribution Center


1


FL


IND



3,766



1,551



2,380



1,306



1,551



3,686



5,237



513



2003



5-40Marlin Distribution Center


1


FL


IND







1,076



2,169



931



1,076



3,100



4,176



408



2003



5-40Miami Airport Business Center


6


FL


IND







6,400



19,634



5,068



6,400



24,702



31,102



4,956



1999



5-40Panther Distribution Center


1


FL


IND



3,865



1,840



3,252



1,391



1,840



4,643



6,483



482



2003



5-40Sunrise Industrial


3


FL


IND



7,415



4,573



17,088



2,155



4,573



19,243



23,816



3,104



1998



5-40Tarpon Distribution Center


1


FL


IND



3,008



884



3,914



531



884



4,445



5,329



450



2004



5-40No. New Jersey/New York
    CityAMB Meadowlands Park


8


NJ


IND







5,449



14,458



4,975



5,449



19,433



24,882



4,253



2000



5-40Dellamor


8


NJ


IND



13,662



12,061



11,577



2,674



12,061



14,251



26,312



2,084



2002



5-40Docks Corner SG (Phase II)


1


NJ


IND



34,068



13,672



22,516



20,624



13,672



43,140



56,812



7,672



2001



5-40Fairfalls Portfolio


28


NJ


IND



32,984



20,381



45,038



6,351



20,381



51,389



71,770



5,121



2004



5-40Fairmeadows Portfolio


20


NJ


IND



30,058



22,932



35,522



7,935



22,932



43,457



66,389



4,437



2003



5-40Jamesburg Road Corporate Park


3


NJ


IND



20,605



11,700



35,101



6,141



11,700



41,242



52,942



11,070



1998



5-40JFK Air Cargo


15


NY


IND







16,944



45,694



8,664



16,944



54,358



71,302



11,696



2000



5-40JFK Airport Park


1


NY


IND







2,350



7,251



1,240



2,350



8,491



10,841



1,798



2000



5-40AMB JFK Airgate Center


4


NY


IND



12,770



5,980



26,393



2,570



5,980



28,963



34,943



2,070



2005



5-40Linden Industrial


1


NJ


IND







900



2,753



1,617



900



4,370



5,270



1,057



1999



5-40Mahwah Corporate Center


4


NJ


IND







7,068



22,086



5,886



7,068



27,972



35,040



5,604



1998



5-40 S-3




---



##### Table of Contents



AMB PROPERTY, L.P.SCHEDULE IIICONSOLIDATED REAL ESTATE AND ACCUMULATED DEPRECIATIONAs of December 31, 2006CostsInitial Cost to Company


Capitalized


Gross Amount Carried at
    12/31/06





Year ofNo of













Building &


Subsequent to





Building &


Total Costs


Accumulated


Construction/


Depreciable LifeProperty

Bldgs


Location

Type


Encumbrances(3)


Land


Improvements


Acquisition


Land


Improvements


(1)(2)


Depreciation(4)


Acquisition


(Years)(In thousands, except number of buildings)Mooncreek Distribution Center


1


NJ


IND







2,958



7,924



166



2,958



8,090



11,048



662



2004



5-40Meadowlands ALFII


3


NJ


IND



11,510



5,210



10,272



2,457



5,210



12,729



17,939



2,624



2001



5-40Meadowlands Cross Dock


1


NJ


IND







1,110



3,485



1,102



1,110



4,587



5,697



1,187



2000



5-40Meadow Lane


1


NJ


IND







838



2,594



773



838



3,367



4,205



702



1999



5-40Moonachie Industrial


2


NJ


IND



5,154



2,731



5,228



711



2,731



5,939



8,670



1,036



2001



5-40Murray Hill Parkway


2


NJ


IND







1,670



2,568



5,605



1,670



8,173



9,843



3,117



1999



5-40Newark Airport I & II


2


NJ


IND



3,347



1,755



5,400



656



1,755



6,056



7,811



1,385



2000



5-40Orchard Hill


1


NJ


IND



1,504



1,212



1,411



642



1,212



2,053



3,265



242



2002



5-40AMB Pointview Dist. Ctr


1


NJ


IND



12,217



4,693



12,355



539



4,693



12,894



17,587



563



2005



5-40Porete Avenue Warehouse


1


NJ


IND







4,067



12,202



5,081



4,067



17,283



21,350



4,391



1998



5-40Skyland Crossdock


1


NJ


IND











7,250



714







7,964



7,964



970



2002



5-40Teterboro Meadowlands 15


1


NJ


IND



9,189



4,961



9,618



6,838



4,961



16,456



21,417



2,953



2001



5-40AMB Tri-Port Distribution Ctr


1


NJ


IND







25,672



19,852



729



25,672



20,581



46,253



1,564



2004



5-40Two South Middlesex


1


NJ


IND







2,247



6,781



2,354



2,247



9,135



11,382



2,627



1995



5-40On-TarmacAMB BWI Cargo Center E


1


MD


IND











6,367



200







6,567



6,567



2,157



2000



5-19AMB DFW Cargo Center East


3


TX


IND



5,678







20,632



1,291







21,923



21,923



5,176



2000



5-26AMB DAY Cargo Center


5


OH


IND



6,265







7,163



554







7,717



7,717



2,264



2000



5-23AMB DFW Cargo Center 1


1


TX


IND











34,199



724







34,923



34,923



1,334



2005



5-32AMB DFW Cargo Center 2


1


TX


IND











4,286



14,703







18,989



18,989



3,721



1999



5-39AMB IAD Cargo Center 5


1


VA


IND











38,840



804







39,644



39,644



11,723



2002



5-15AMB JAX Cargo Center


1


FL


IND











3,029



226







3,255



3,255



859



2000



5-22AMB JFK Cargo Center 7577


2


NJ


IND











30,965



6,503







37,468



37,468



12,917



2002



5-13AMB LAS Cargo Center 15


4


NV


IND











19,721



1,560







21,281



21,281



3,026



2003



5-33AMB LAX Cargo Center


3


CA


IND



6,454







13,445



782







14,227



14,227



3,940



2000



5-22AMB MCI Cargo Center 1


1


MO


IND



4,215







5,793



437







6,230



6,230



2,115



2000



5-18AMB MCI Cargo Center 2


1


MO


IND



8,485







8,134



180







8,314



8,314



1,836



2000



5-27AMB PHL Cargo Center C2


1


PA


IND











9,716



2,438







12,154



12,154



4,068



2000



5-27AMB PDX Cargo Center Airtrans


2


OR


IND











9,207



2,018







11,225



11,225



2,187



1999



5-28AMB RNO Cargo Center 1011


2


NV


IND











6,014



302







6,316



6,316



1,129



2003



5-23AMB SEA Cargo Center North


2


WA


IND



3,771







15,594



570







16,164



16,164



3,764



2000



5-27AMB SEA Cargo Center South


1


WA


IND











3,056



363







3,419



3,419



1,519



2000



5-14San Francisco Bay
    AreaAcer Distribution Center


1


CA


IND







3,146



9,479



3,162



3,146



12,641



15,787



3,941



1998



5-40Albrae Business Center


1


CA


IND



7,331



6,299



6,227



1,189



6,299



7,416



13,715



1,222



2001



5-40Alvarado Business Center SG


5


CA


IND



22,560



6,328



26,671



10,620



6,328



37,291



43,619



6,551



2001



5-40Brennan Distribution


1


CA


IND



3,448



3,683



3,022



2,193



3,683



5,215



8,898



1,599



2001



5-40 S-4




---



##### Table of Contents



AMB PROPERTY, L.P.SCHEDULE IIICONSOLIDATED REAL ESTATE AND ACCUMULATED DEPRECIATIONAs of December 31, 2006CostsInitial Cost to Company


Capitalized


Gross Amount Carried at
    12/31/06





Year ofNo of













Building &


Subsequent to





Building &


Total Costs


Accumulated


Construction/


Depreciable LifeProperty

Bldgs


Location

Type


Encumbrances(3)


Land


Improvements


Acquisition


Land


Improvements


(1)(2)


Depreciation(4)


Acquisition


(Years)(In thousands, except number of buildings)Central Bay


2


CA


IND



6,571



3,896



7,400



1,903



3,896



9,303



13,199



2,068



2001



5-40Component Drive Ind Port


3


CA


IND







12,688



6,974



2,028



12,688



9,002



21,690



1,766



2001



5-40Dado Distribution


1


CA


IND







7,221



3,739



2,520



7,221



6,259



13,480



1,217



2001



5-40Doolittle Distribution Center


1


CA


IND







2,644



8,014



1,522



2,644



9,536



12,180



2,030



2000



5-40Dowe Industrial Center


2


CA


IND







2,665



8,034



2,537



2,665



10,571



13,236



3,023



1991



5-40East Bay Whipple


1


CA


IND



6,497



5,333



8,126



1,697



5,333



9,823



15,156



1,735



2001



5-40East Bay Doolittle


1


CA


IND







7,128



11,023



3,051



7,128



14,074



21,202



2,783



2001



5-40Edgewater Industrial Center


1


CA


IND







4,038



15,113



5,574



4,038



20,687



24,725



4,995



2000



5-40East Grand Airfreight


2


CA


IND



3,789



5,093



4,190



816



5,093



5,006



10,099



639



2003



5-40Fairway Drive Ind SGP


4


CA


IND



11,546



4,204



13,949



3,496



4,204



17,445



21,649



3,009



2001



5-40Junction Industrial Park


4


CA


IND







7,875



23,975



4,377



7,875



28,352



36,227



6,651



1999



5-40Laurelwood Drive


2


CA


IND







2,750



8,538



958



2,750



9,496



12,246



2,238



1997



5-40Lawrence SSF


1


CA


IND







2,870



5,521



1,269



2,870



6,790



9,660



1,491



2001



5-40Marina Business Park


2


CA


IND







3,280



4,316



447



3,280



4,763



8,043



608



2002



5-40Martin/Scott Ind Port


2


CA


IND







9,052



5,309



952



9,052



6,261



15,313



979



2001



5-40MBC Industrial


4


CA


IND







5,892



17,716



3,881



5,892



21,597



27,489



6,065



1996



5-40Milmont Page SGP


3


CA


IND



10,780



3,420



10,600



3,356



3,420



13,956



17,376



2,391



2001



5-40Moffett Distribution


7


CA


IND



15,856



26,916



11,277



2,875



26,916



14,152



41,068



2,725



2001



5-40Moffett Park / Bordeaux R&D


4


CA


IND















3,801







3,801



3,801



2,557



1996



5-40Moffett Park R&D Portfolio


10


CA


IND







14,805



44,462



12,458



14,805



56,920



71,725



17,744



1996



5-40Pacific Business Center


2


CA


IND







5,417



16,291



4,519



5,417



20,810



26,227



6,174



1993



5-40Pardee Drive SG


1


CA


IND



1,443



619



1,880



284



619



2,164



2,783



354



2001



5-40South Bay Brokaw


3


CA


IND







4,372



13,154



3,218



4,372



16,372



20,744



4,769



1995



5-40South Bay Junction


2


CA


IND







3,464



10,424



1,099



3,464



11,523



14,987



3,089



1995



5-40South Bay Lundy


2


CA


IND







5,497



16,542



2,787



5,497



19,329



24,826



5,417



1995



5-40South Bay Osgood


1


CA


IND







1,659



4,992



1,537



1,659



6,529



8,188



1,787



1995



5-40Silicon Valley R&D


5


CA


IND







6,700



20,186



11,877



6,700



32,063



38,763



10,434



1997



5-40Utah Airfreight


1


CA


IND



16,234



18,753



8,381



1,759



18,753



10,140



28,893



1,565



2003



5-40Wiegman Road


1


CA


IND







1,563



4,688



1,670



1,563



6,358



7,921



2,044



1997



5-40Willow Park Industrial


21


CA


IND







25,590



76,771



20,408



25,590



97,179



122,769



26,189



1998



5-40Williams & Burroughs AMB
    PrtII


4


CA


IND



7,468



2,262



6,981



3,406



2,262



10,387



12,649



2,949



2001



5-40Yosemite Drive


1


CA


IND







2,350



7,051



1,546



2,350



8,597



10,947



2,115



1997



5-40Zanker/Charcot Industrial


5


CA


IND







5,282



15,887



4,806



5,282



20,693



25,975



5,633



1992



5-40SeattleBlack River


1


WA


IND



3,197



1,845



3,559



534



1,845



4,093



5,938



778



2001



5-40Earlington Business Park


1


WA


IND



3,962



2,766



3,234



1,052



2,766



4,286



7,052



753



2002



5-40East Valley Warehouse


1


WA


IND







6,813



20,511



6,656



6,813



27,167



33,980



7,620



1999



5-40 S-5




---



##### Table of Contents



AMB PROPERTY, L.P.SCHEDULE IIICONSOLIDATED REAL ESTATE AND ACCUMULATED DEPRECIATIONAs of December 31, 2006CostsInitial Cost to Company


Capitalized


Gross Amount Carried at
    12/31/06





Year ofNo of













Building &


Subsequent to





Building &


Total Costs


Accumulated


Construction/


Depreciable LifeProperty

Bldgs


Location

Type


Encumbrances(3)


Land


Improvements


Acquisition


Land


Improvements


(1)(2)


Depreciation(4)


Acquisition


(Years)(In thousands, except number of buildings)Harvest Business Park


3


WA


IND







2,371



7,153



2,161



2,371



9,314



11,685



2,735



1995



5-40Kent Centre Corporate Park


4


WA


IND







3,042



9,165



3,060



3,042



12,225



15,267



3,282



1995



5-40Kingsport Industrial Park


7


WA


IND







7,919



23,812



7,195



7,919



31,007



38,926



8,849



1992



5-40NDP  Seattle


4


WA


IND



11,206



3,992



11,773



1,404



3,992



13,177



17,169



1,783



2002



5-40Northwest Distribution Center


3


WA


IND







3,533



10,751



2,010



3,533



12,761



16,294



3,494



1992



5-40AMB Portside Distribution Cent


1


WA


IND







9,964



14,421



4,707



9,964



19,128



29,092



990



2005



5-40Puget Sound Airfreight


1


WA


IND







1,329



1,830



426



1,329



2,256



3,585



424



2002



5-40Renton Northwest Corp. Park


6


WA


IND



22,990



25,959



14,792



1,922



25,959



16,714



42,673



2,132



2002



5-40SEA Logistics Center 2


3


WA


IND



14,031



11,481



24,496



485



11,481



24,981



36,462



2,293



2003



5-40AMB Sumner Landing


1


WA


IND







6,937



17,577



3,056



6,937



20,633



27,570



1,425



2005



5-40Trans-Pacific Industrial Park


11


WA


IND



48,600



31,675



42,210



9,516



31,675



51,726



83,401



5,459



2003



5-40Non U.S. Target
    MarketsAMB Capronilaan


1


The Netherlands


IND



22,260



8,769



14,675



2,403



9,497



16,350



25,847



1,418



2004



5-40AMB CDG Cargo Center SAS


1


France


IND



20,403







38,870



2,353







41,223



41,223



2,806



2004



8-38AMB Schiphol Dist Center


1


The Netherlands


IND



9,655



6,258



9,490



84



6,258



9,574



15,832



701



2004



5-40Koolhovenlaan 1&2


2


The Netherlands


IND



10,256



4,371



7,412



506



4,551



7,738



12,289



459



2005



4-40AMB Isle dAbeau Logistics
    Park Bldg B


1


Lyon


IND



18,479



3,774



14,367



1,809



4,133



15,817



19,950



893



2005



5-40Frankfurt Logistic Center


1


Germany


IND



23,316







19,875



5,250







25,125



25,125



1,620



2003



37-40Paris Nord Distribution I


1


France


IND







2,864



4,723



2,606



3,743



6,450



10,193



693



2002



5-40Paris Nord Distribution II


1


France


IND







1,697



5,127



4,034



2,191



8,667



10,858



1,217



2002



5-40Bourget Industrial


1


France


IND



33,077



10,058



23,843



2,769



10,864



25,806



36,670



2,004



2003



5-38Port of Rotterdam


1


The Netherlands


IND



3,689







5,660



428







6,088



6,088



263



2005



4-40Port of Hamburg 2, 3, 5


3


Germany


IND



18,987







34,218



4,360







38,578



38,578



1,564



2005



2-28AMB LG Roissy Mesnil SAS


1


France


IND



310



124



537



54



124



591



715



3



2006



2-40AMB LG Roissy Santal SAS


1


France


IND



2,851



1,396



3,227



143



1,396



3,370



4,766



91



2006



2-40AMB LG Roissy Saturne SAS


1


France


IND



2,957



1,666



3,894



151



1,666



4,045



5,711



79



2006



4-40AMB LG Roissy Scandy SAS


1


France


IND



3,867



1,870



4,325



157



1,870



4,482



6,352



115



2006



2-40AMB LG Roissy Scipion SAS


1


France


IND



2,006



844



3,597



141



844



3,738



4,582



81



2006



2-40AMB LG Roissy Segur SAS


1


France


IND



9,655



4,583



11,444



237



4,583



11,681



16,264



224



2006



5-40AMB LG Roissy Sepia SAS


1


France


IND



4,052



2,162



4,594



651



2,162



5,245



7,407



97



2006



6-40AMB LG Roissy Seringa SAS


1


France


IND



2,653



1,126



3,483



250



1,126



3,733



4,859



79



2006



3-40AMB LG Roissy Signac SAS


1


France


IND



4,785



2,106



5,228



166



2,106



5,394



7,500



117



2006



3-40AMB LG Roissy Sisley SAS


1


France


IND



6,349



2,883



6,942



425



2,883



7,367



10,250



136



2006



5-40AMB LG Roissy Soliflore SAS


1


France


IND



2,178



752



3,248



138



752



3,386



4,138



77



2006



2-40AMB LG Roissy Sonate SAS


1


France


IND



7,477



4,121



9,745



291



4,121



10,036



14,157



241



2006



2-40AMB LG Roissy Sorbiers SAS


1


France


IND



3,524



1,124



4,853



155



1,124



5,008



6,132



150



2006



2-40AMB LG Roissy Storland SAS


1


France


IND



1,346



479



2,109



226



479



2,335



2,814



42



2006



2-40 S-6




---



##### Table of Contents



AMB PROPERTY, L.P.SCHEDULE IIICONSOLIDATED REAL ESTATE AND ACCUMULATED DEPRECIATIONAs of December 31, 2006CostsInitial Cost to Company


Capitalized


Gross Amount Carried at
    12/31/06





Year ofNo of













Building &


Subsequent to





Building &


Total Costs


Accumulated


Construction/


Depreciable LifeProperty

Bldgs


Location

Type


Encumbrances(3)


Land


Improvements


Acquisition


Land


Improvements


(1)(2)


Depreciation(4)


Acquisition


(Years)(In thousands, except number of buildings)AMB LG Roissy Symphonie SAS


1


France


IND



3,933



1,930



4,463



158



1,930



4,621



6,551



125



2006



2-40AMB Eemhaven Distribution Center B.V


1


The Netherlands


IND











23,588



1,399







24,987



24,987



9



2006



5-33AMB Hordijk Distribution Center B.V


1


The Netherlands


IND











12,349



4







12,353



12,353



54



2006



5-40SCI AMB France Givaudan DC


1


France


IND







1,037



4,323







1,037



4,323



5,360



51



2006



5-40AMB Port of Hamburg 4, 6-8 BV


4


Germany


IND



39,284







51,359



81







51,440



51,440



2,116



2006



2-28AMB Jiuting DC


1


Shanghai


IND











6,302











6,302



6,302



501



2005



2-40Corregidora Distribution Center


1


Mexico


IND







798



3,662



9



798



3,671



4,469



50



2006



10-40U.S. Other Target
    MarketsMET PHASE 1 95, LTD


4


TX


IND







10,968



14,554



2,677



10,968



17,231



28,199



1,346



1995



5-40MET 4/12, LTD


1


TX


IND











18,390



2,678







21,068



21,068



8,067



1997



5-40TechRidge Bldg 4.3B (Phase IV)


1


TX


IND



8,000



4,020



9,185



114



4,020



9,299



13,319



62



2006



5-40TechRidge Phase II


1


TX


IND



10,588



7,261



13,484



234



7,261



13,718



20,979



1,976



2001



5-40TechRidge Phase IIIA Bldg. 4.1


1


TX


IND



9,200



3,143



12,087



13



3,143



12,100



15,243



1,353



2004



5-40Beltway Distribution


1


MD


IND







4,800



15,159



6,298



4,800



21,457



26,257



5,508



1999



5-40B.W.I.P


2


MD


IND







2,258



5,149



1,219



2,258



6,368



8,626



921



2002



5-40Columbia Business Center


9


MD


IND







3,856



11,736



5,001



3,856



16,737



20,593



4,582



1999



5-40Corridor Industrial


1


MD


IND



2,260



996



3,019



382



996



3,401



4,397



774



1999



5-40Crysen Industrial


1


MD


IND







1,425



4,275



1,267



1,425



5,542



6,967



1,640



1998



5-40Dulles Commerce Center


3


MD


IND







3,694



12,547



1,341



3,694



13,888



17,582



497



2003



5-40Gateway Commerce Center


5


MD


IND







4,083



12,336



2,568



4,083



14,904



18,987



3,593



1999



5-40AMB Granite Hill Dist. Center


2


MD


IND







4,653



6,407



319



4,653



6,726



11,379



193



2006



5-40Greenwood Industrial


3


MD


IND







4,729



14,188



4,053



4,729



18,241



22,970



4,712



1998



5-40Meadowridge Industrial


3


MD


IND







3,716



11,147



958



3,716



12,105



15,821



2,786



1998



5-40Oakland Ridge Ind Ctr I


1


MD


IND



1,769



797



2,466



1,160



797



3,626



4,423



1,153



1999



5-40Oakland Ridge Ind Ctr II


1


MD


IND



2,269



839



2,557



1,411



839



3,968



4,807



1,436



1999



5-40Oakland Ridge Ind Ctr V


4


MD


IND











6,740



3,032







9,772



9,772



3,455



1999



5-40Patuxent Range Road


2


MD


IND







1,696



5,127



1,265



1,696



6,392



8,088



1,806



1997



5-40Preston Court


1


MD


IND







2,313



7,192



1,073



2,313



8,265



10,578



2,056



1997



5-40Boston Industrial


17


MA


IND



6,475



16,329



50,856



20,516



16,329



71,372



87,701



21,612



1998



5-40Cabot Business Park


12


MA


IND







15,398



42,288



10,484



15,398



52,772



68,170



14,458



1997



5-40Cabot BP Land (KYDJ)


1


MA


IND







863



6,918



3,035



863



9,953



10,816



3,585



1998



5-40Cabot Business Park SGP


3


MA


IND



15,525



6,253



18,747



1,872



6,253



20,619



26,872



2,634



2002



5-40Patriot Dist. Center


1


MA


IND



11,844



4,164



22,603



1,249



4,164



23,852



28,016



1,534



2003



5-40Somerville Distribution Center


1


MA


IND







5,221



13,208



1,714



5,221



14,922



20,143



1,107



2004



5-40AMB Blue Water


1


MN


IND







1,905



6,312







1,905



6,312



8,217



63



2006



5-40 S-7




---



##### Table of Contents



AMB PROPERTY, L.P.SCHEDULE IIICONSOLIDATED REAL ESTATE AND ACCUMULATED DEPRECIATIONAs of December 31, 2006CostsInitial Cost to Company


Capitalized


Gross Amount Carried at
    12/31/06





Year ofNo of













Building &


Subsequent to





Building &


Total Costs


Accumulated


Construction/


Depreciable LifeProperty

Bldgs


Location

Type


Encumbrances(3)


Land


Improvements


Acquisition


Land


Improvements


(1)(2)


Depreciation(4)


Acquisition


(Years)(In thousands, except number of buildings)Braemar Business Center


2


MN


IND







1,566



4,613



1,551



1,566



6,164



7,730



1,878



1998



5-40Burnsville Business Center


1


MN


IND







932



2,796



1,566



932



4,362



5,294



1,617



1998



5-40Corporate Square Industrial


6


MN


IND







4,024



12,113



4,335



4,024



16,448



20,472



5,249



1996



5-40AMB Industrial Park Bus. Ctr


1


MN


IND



3,212



1,648



4,187



8



1,648



4,195



5,843



309



2004



5-40Minneapolis Distribution Port


3


MN


IND







4,052



13,375



4,611



4,052



17,986



22,038



4,840



1994



5-40Mendota Heights Gateway Common


1


MN


IND







1,367



4,565



2,833



1,367



7,398



8,765



2,987



1997



5-40Minneapolis Industrial Port IV


4


MN


IND







4,938



14,854



3,628



4,938



18,482



23,420



5,517



1994



5-40AMB Northpoint Indust. Center


3


MN


IND



6,245



2,769



8,087



115



2,769



8,202



10,971



751



2004



5-40Penn James Warehouse


2


MN


IND







1,991



6,013



1,888



1,991



7,901



9,892



2,346



1996



5-40Round Lake Business Center


1


MN


IND







875



2,625



863



875



3,488



4,363



1,076



1998



5-40AMB Shady Oak Indust. Center


1


MN


IND



1,745



897



1,795



248



897



2,043



2,940



237



2004



5-40Twin Cities


2


MN


IND







4,873



14,638



7,989



4,873



22,627



27,500



7,436



1995



5-40Chancellor


1


FL


IND







1,587



3,759



3,622



1,587



7,381



8,968



1,249



1996



5-40Chancellor Square


3


FL


IND



13,929



2,009



6,106



5,576



2,009



11,682



13,691



3,558



1998



5-40Presidents Drive


6


FL


IND







5,770



17,655



4,785



5,770



22,440



28,210



6,111



1997



5-40Sand Lake Service Center


6


FL


IND







3,483



10,585



5,152



3,483



15,737



19,220



4,876



1998



5-40Other U.S. Non-Target
    MarketsJanitrol


1


OH


IND







1,797



4,605
(1)


369



1,797



4,974



6,771



1,442



1997



5-40Elmwood Distribution


5


LA


IND







4,163



12,488



5,391



4,152



17,890



22,042



2,742



1998



5-40Total


820








$
1,302,921


$
1,347,480


$
3,266,466


$
775,651


$
1,351,123


$
4,038,474


$
5,389,597


$
789,693     (1)
    
    The Company recognized an impairment loss of approximately
    $1.0 million during the year ended December 31, 2006
    as a result of leasing activities and changes in the economic
    environment. S-8




---



##### Table of Contents



2006


2005


2004(1
)

Reconciliation of total cost to
    consolidated balance sheet caption as of December 31, 2006:Total per Schedule III(5)

$
5,389,597


$
5,800,788


$
5,814,767Construction in process


1,186,136



997,506



711,377Total investments in
    properties

$
6,575,733


$
6,798,294


$
6,526,144(2
)

Aggregate cost for federal income
    tax purposes of investments in real estate

$
6,297,448


$
6,468,360


$
6,263,171(3
)

Reconciliation of total debt to
    consolidated balance sheet caption as of December 31, 2006:Total per Schedule III

$
1,302,921


$
1,598,919


$
1,828,864Debt on properties held for
    divestiture


22,919







27,481Debt on development properties


63,170



301,623



25,413Unamortized premiums


6,344



11,984



10,766Total debt

$
1,395,354


$
1,912,526


$
1,892,524(4
)

Reconciliation of accumulated
    depreciation to consolidated balance sheet caption as of
    December 31, 2006:Total per Schedule III

$
789,693


$
693,324


$
614,084Accumulated depreciation on
    properties under renovation






4,064



1,562Total accumulated
    depreciation

$
789,693


$
697,388


$
615,646(5
)

A summary of activity for real
    estate and accumulated depreciation for the year ended
    December 31, 2006 is as follows:Investments in Properties:Balance at beginning
    of year

$
6,798,294


$
6,526,144


$
5,491,707Acquisition of
    properties


669,771



505,127



687,072Improvements,
    including development properties


442,922



496,623



618,188Deconsolidation of AMB
    Institutional Alliance Fund III, L.P.


(743,323
)






Asset impairment


(6,312
)






Divestiture of
    properties


(478,545
)


(770,869
)


(185,564
)Adjustment for
    properties held for divestiture


(107,074
)


41,269



(85,259
)Balance at end of year

$
6,575,733


$
6,798,294


$
6,526,144Accumulated Depreciation:Balance at beginning
    of year

$
697,388


$
615,646


$
485,559Depreciation expense,
    including discontinued operations


127,199



168,869



163,316Properties divested


(37,391
)


(95,371
)


(23,559
)Adjustment for
    properties held for divestiture


2,497



8,244



(9,670
)Balance at end of year

$
789,693


$
697,388


$
615,646  S-9




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##### Table of Contents



EXHIBIT INDEX
  No. 001-14245
  ExhibitNumber

Description3
.1

Twelfth Amended and Restated
    Agreement of Limited Partnership of AMB Property, L.P., dated as
    of August 25, 2006 (incorporated by reference to
    Exhibit 3.1 of AMB Property, L.P.s Current Report on
    Form 8-K
    filed on August 30, 2006)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 Corporations
    Annual Report on
    Form 10-K
    for the year ended December 31, 2000)4
.4

$25,000,000 8.00% 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 Corporations
    Annual Report on
    Form 10-K
    for the year ended December 31, 2000)4
.5

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
.6

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
.7

$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
.8

$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
.9

$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
.10

$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)4
.11

$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
.12

$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
.13

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 Current Report on
    Form 8-K
    filed on August 10, 2006)4
.14

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
.15

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
.16

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))




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##### Table of Contents



ExhibitNumber

Description4
.17

Fourth Supplemental Indenture
    dated as of August 15, 2000, 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
.18

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
.19

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
.20

Seventh Supplemental Indenture,
    dated as of August 10, 2006, 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, including the Form of Fixed Rate Medium-Term Note,
    Series C, attaching the Form of Parent Guarantee, and the
    Form of Floating Rate Medium-Term Note, Series C, attaching
    the Form of Parent Guarantee. (incorporated by reference to
    Exhibit 4.2 of AMB Property, L.P.s Current Report on
    Form 8-K
    filed on August 10, 2006)4
.21

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
.22

$175,000,000 Fixed Rate
    Note No. FXR-C-1,
    dated as of August 15, 2006, attaching the Parent Guarantee
    (incorporated by reference to Exhibit 4.1 of AMB Property,
    L.P.s Current Report on
    Form 8-K
    filed on August 15, 2006)4
.23

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)4
.24

Registration Rights Agreement
    dated as of April 17, 2002 by and among AMB Property
    Corporation, AMB Property, 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, L.P.s
    Current Report on
    Form 8-K
    filed on April 23, 2002)4
.25

Registration Rights Agreement
    dated as of September 21, 2001 by and among AMB Property
    Corporation, AMB Property, 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, L.P.s
    Current Report on
    Form 8-K
    filed on October 3, 2001)*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)*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

AMB 2005 Nonqualified Deferred
    Compensation Plan (incorporated by reference to
    Exhibit 10.1 of AMB Property L.P.s Current Report on
    Form 8-K
    filed on October 4, 2006)*10
.7

Amended and Restated 2002 AMB
    Nonqualified Deferred Compensation Plan (incorporated by
    reference to Exhibit 10.2 of AMB Property, L.P.s
    Current Report on
    Form 8-K,
    filed on October 4, 2006)




---



##### Table of Contents



ExhibitNumber

Description*10
.8

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 10.3 of AMB Property, L.P.s
    Current Report on
    Form 8-K
    filed on October 4, 2006)10
.9

Fourteenth Amended and Restated
    Agreement of Limited Partnership of AMB Property II, L.P.,
    dated February 22, 2007 (incorporated by reference to
    Exhibit 10.1 of AMB Property, L.P.s Current Report on
    Form 8-K
    filed on February 22, 2007)10
.10

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
.11

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
.12

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
.13

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
.14

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
.15

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 (incorporated by reference to
    Exhibit 10.16 of AMP Property, L.P.s Annual Report on
    Form 10-K
    for the year ended December 31, 2005)10
.16

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. (incorporated by reference
    to Exhibit 10.17 of AMP Property, L.P.s Annual Report
    on
    Form 10-K
    for the year ended December 31, 2005)10
.17

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,
    L.P.s Current Report on
    Form 8-K
    filed on December 1, 2004)




---



##### Table of Contents



ExhibitNumber

Description10
.18

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, L.P.s Current Report on
    Form 8-K
    filed on December 1, 2004)10
.19

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
.20

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
.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,
    L.P.s Current Report on
    Form 8-K
    filed on February 22, 2006)10
.22

Fourth Amended and Restated
    Revolving Credit Agreement, dated as of June 13, 2006, by
    and among the qualified borrowers listed on the signature pages
    thereto, AMB Property, L.P., as a qualified borrower and
    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, LaSalle Bank National Association and Société
    Générale, as co-documentation agents, 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, L.P.s Current Report on
    Form 8-K
    filed on June 19, 2006)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)10
.24

Third Amended and Restated
    Revolving Credit Agreement, dated as of June 1, 2006, by
    and among AMB Property, L.P., as Borrower, the banks listed on
    the signature pages thereof, JPMorgan Chase Bank, N.A., 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, Eurohypo AG, New York Branch, Wachovia Bank,
    N.A. and PNC Bank, National Association, as Documentation
    Agents, The Bank of Nova Scotia, acting through its
    San Francisco Agency, Wells Fargo Bank, N.A., ING Real
    Estate Finance (USA) LLC and LaSalle Bank National Association,
    as Managing Agents (incorporated by reference to
    Exhibit 10.1 of AMB Property, L.P.s Current Report on
    Form 8-K
    filed on June 7, 2006)10
.25

Amended and Restated Revolving
    Credit Agreement, dated as of June 23, 2006, by and among
    the initial borrower and the initial qualified borrowers listed
    on the signature pages thereto, AMB Property, L.P., as a
    guarantor, AMB Property Corporation, as a guarantor, the banks
    listed on the signature pages thereto, Sumitomo Mitsui Banking
    Corporation, as administrative agent and sole lead arranger and
    bookmanager, and each of the other lending institutions that
    becomes a lender thereunder (incorporated by reference to
    Exhibit 10.1 of AMB Property, L.P.s Current Report on
    Form 8-K
    filed on June 29, 2006)




---



##### Table of Contents



ExhibitNumber

Description10
.26

Euros 228,000,000 Facility
    Agreement, dated as of December 8, 2006, by and among AMB
    European Investments LLC, AMB Property, L.P., ING Real Estate
    Finance NV and the Entities of AMB, Entities of AMB Property,
    L.P., Financial Institutions and the Entities of ING Real Estate
    Finance NV all listed on Schedule 1 of the Facility
    Agreement (incorporated by reference to Exhibit 10.1 of AMB
    Property, L.P.s Current Report on
    Form 8-K
    filed on December 14, 2006)10
.27

Collateral Loan Agreement, dated
    as of February 14, 2007, by and among The Prudential
    Insurance Company Of America and Prudential Mortgage Capital
    Company, LLC, as Lenders, and AMB-SGP California, LLC, AMB-SGP
    CIF-California, LLC, AMB-SGP CIF-I, LLC, AMB-SGP Docks, LLC,
    AMB-SGP Georgia, LLC, AMB-SGP CIF-Illinois, L.P. and AMB-SGP
    TX/IL SUB, LLC as Borrowers (incorporated by reference to
    Exhibit 10.1 of AMB Property, L.P.s
    Form 8-K
    filed on February 21, 2007)10
.28

$160,000,000 Amended, Restated and
    Consolidated Promissory Note (Fixed
    A-1), dated
    February 14, 2007, by AMB-SGP California, LLC, AMB-SGP
    CIF-California, LLC, AMB-SGP CIF-I, LLC, AMB-SGP Docks, LLC,
    AMB-SGP Georgia, LLC, AMB-SGP CIF-Illinois, L.P. and AMB-SGP
    TX/IL SUB, LLC, as Borrowers, to Prudential Mortgage Capital
    Company LLC, as Lender (incorporated by reference to
    Exhibit 10.2 of AMB Property, L.P.s
    Form 8-K
    filed on February 21, 2007)10
.29

$40,000,000 Amended, Restated and
    Consolidated Promissory Note (Floating
    A-2), dated
    February 14, 2007, by AMB-SGP California, LLC, AMB-SGP
    CIF-California, LLC, AMB-SGP CIF-I, LLC, AMB-SGP Docks, LLC,
    AMB-SGP Georgia, LLC, AMB-SGP CIF-Illinois, L.P. and AMB-SGP
    TX/IL SUB, LLC, as Borrowers, to The Prudential Insurance
    Company of America, as Lender (incorporated by reference to
    Exhibit 10.3 of AMB Property, L.P.s
    Form 8-K
    filed on February 21, 2007)10
.30

$84,000,000 Amended, Restated and
    Consolidated Promissory Note (Fixed B-1), dated
    February 14, 2007, by AMB-SGP California, LLC, AMB-SGP
    CIF-California, LLC, AMB-SGP CIF-I, LLC, AMB-SGP Docks, LLC,
    AMB-SGP Georgia, LLC, AMB-SGP CIF-Illinois, L.P. and AMB-SGP
    TX/IL SUB, LLC, as Borrowers, to The Prudential Insurance
    Company of America, as Lender (incorporated by reference to
    Exhibit 10.4 of AMB Property, L.P.s
    Form 8-K
    filed on February 21, 2007)10
.31

$21,000,000 Amended, Restated and
    Consolidated Promissory Note (Floating B-2), dated
    February 14, 2007, by AMB-SGP California, LLC, AMB-SGP
    CIF-California, LLC, AMB-SGP CIF-I, LLC, AMB-SGP Docks, LLC,
    AMB-SGP Georgia, LLC, AMB-SGP CIF-Illinois, L.P. and AMB-SGP
    TX/IL SUB, LLC, as Borrowers, to The Prudential Insurance
    Company of America, as Lender (incorporated by reference to
    Exhibit 10.5 of AMB Property, L.P.s
    Form 8-K
    filed on February 21, 2007)21
.1

Subsidiaries of AMB Property, L.P.23
.1

Consent of PricewaterhouseCoopers
    LLP24
.1

Powers of Attorney (included in
    Part IV of this
    10-K)31
.1

Rule 13a-14(a)/15d-14(a) Certifications
    dated February 28, 200732
.1

18 U.S.C. § 1350
    Certifications dated February 28, 2007. 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