AMB Property Corporation(R) Releases Research Report on Global Trade and Industrial Real Estate Demand
June 05 2009 - 3:01PM
PR Newswire (US)
SAN FRANCISCO, June 5 /PRNewswire-FirstCall/ -- AMB Property
Corporation(R) (NYSE:AMB), a leading global owner, operator and
developer of industrial real estate, today released a research
report titled, "The Long-Term Prospects for Global Trade and
Industrial Real Estate Demand: An analysis of a trade-based
investment strategy in the midst of global economic crisis." The
report examines the impact of global trade on industrial real
estate demand; the long-term relationship between trade and gross
domestic product (GDP); insight into the evolution of trade; as
well as the major trends that are expected to considerably
influence the supply chain and warehousing needs of the future.
"Our analysis indicates that, while the global economy is in the
midst of a recession, the fundamental drivers of industrial real
estate demand remain intact. The recent declines in global trade
volumes and the net absorption of industrial real estate--factors
that are more aligned than ever--represent a temporary pause in a
strong, longstanding secular trend. Today's interconnected,
highly-efficient supply chains are not reversing in any meaningful
way, and, on the margin, there are early signs that trade volumes
may be stabilizing," said David C. Twist, AMB's vice president,
Research. Summary of Findings -- Variations in trade account for 80
percent of the historical variation in industrial real estate
demand. -- Growth in trade volume is highly correlated with GDP
(U.S. and global) and trade growth as a multiple of the GDP growth
rate has more than doubled over the last 50 years. In the past
decade, trade's multiplier on GDP expanded to 3.5, and as a result,
nominal changes in GDP growth result in significant changes in
trade growth. Global expectations for GDP in 2009 imply trade
should fall by approximately 10 percent, a view consistent with
that of industry experts. -- There are four significant factors
that have contributed to the recent declines in trade: inflation
fluctuations; financing availability; supply chain responsiveness;
and miscounting of final products. -- Despite the current economic
and financial downturn, structural support for the trade-to-GDP and
trade-to-industrial-real-estate demand relationship remains intact.
The global shift of labor, productivity and capital over many
decades has created complex but efficient supply chains. A
fundamental shift back to domestic production is not feasible as it
would take decades and require much added cost to implement. --
Consensus estimates for 2010 GDP growth in the U.S. and globally
are currently at about 2.0 percent. This level of growth is
consistent with about 500 million square feet of industrial real
estate demand globally, and the beginning of a healthy recovery. A
copy of AMB's research report on the long-term prospects for global
trade and industrial real estate demand, as well as other reports,
can be downloaded from the company's website at
http://www.amb.com/global_capabilities/research.html. AMB Property
Corporation.(R) Local partner to global trade.(TM) AMB Property
Corporation(R) is a leading owner, operator and developer of
industrial real estate, focused on major hub and gateway
distribution markets in the Americas, Europe and Asia. As of March
31, 2009, AMB owned, or had investments in, on a consolidated basis
or through unconsolidated joint ventures, properties and
development projects expected to total approximately 159.0 million
square feet (14.8 million square meters) in 48 markets within 14
countries. AMB invests in properties located predominantly in the
infill submarkets of its targeted markets. The company's portfolio
is comprised of High Throughput Distribution(R)
facilities--industrial properties built for speed and located near
airports, seaports and ground transportation systems. AMB's press
releases are available on the company website at
http://www.amb.com/ or by contacting the Investor Relations
department at +1 415 394 9000. Some of the information included in
this press release contains forward-looking statements, such as
those related to our expectations for trade and GDP growth in the
U.S. and globally and future industrial demand, which are made
pursuant to the safe-harbor provisions of Section 21E of the
Securities Exchange Act of 1934, as amended, and Section 27A of the
Securities Act of 1933, as amended. Because these forward-looking
statements involve risks and uncertainties, there are important
factors that could cause our actual results to differ materially
from those in the forward-looking statements, and you should not
rely on the forward-looking statements as predictions of future
events. The events or circumstances reflected in forward-looking
statements might not occur. You can identify forward-looking
statements by the use of forward-looking terminology such as
"believes," "expects," "may," "will," "should," "seeks,"
"approximately," "intends," "plans," "pro forma," "estimates" or
"anticipates" or the negative of these words and phrases or similar
words or phrases. You can also identify forward-looking statements
by discussions of strategy, plans or intentions. Forward-looking
statements are necessarily dependent on assumptions, data or
methods that may be incorrect or imprecise and we may not be able
to realize them. We caution you not to place undue reliance on
forward-looking statements, which reflect our analysis only and
speak only as of the date of this report or the dates indicated in
the statements. We assume no obligation to update or supplement
forward-looking statements. 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: defaults on or non-renewal of leases by tenants,
increased interest rates and operating costs, our failure to obtain
necessary outside financing, re-financing risks, risks related to
our obligations in the event of certain defaults under joint
venture and other debt, risks related to debt and equity security
financings (including dilution risk), difficulties in identifying
properties to acquire and in effecting acquisitions, our failure to
successfully integrate acquired properties and operations, our
failure to divest properties we have contracted to sell or to
timely reinvest proceeds from any divestitures, risks and
uncertainties affecting property development and construction
(including construction delays, cost overruns, our inability to
obtain necessary permits and public opposition to these
activities), our failure to qualify and maintain our status as a
real estate investment trust, risks related to our tax structuring,
failure to maintain our current credit agency ratings,
environmental uncertainties, risks related to natural disasters,
financial market fluctuations, changes in general economic
conditions or in the real estate sector, changes in real estate and
zoning laws, a downturn in the U.S., California or global economy,
risks related to doing business internationally and global
expansion, losses in excess of our insurance coverage, unknown
liabilities acquired in connection with acquired properties or
otherwise and increases in real property tax rates. Our success
also depends upon economic trends generally, including interest
rates, income tax laws, governmental regulation, legislation,
population changes and certain other matters discussed under the
heading "Risk Factors" and elsewhere in our annual report on Form
10-K for the year ended December 31, 2008. DATASOURCE: AMB Property
Corporation CONTACT: Tracy A. Ward, Vice President, IR &
Corporate Communications, +1-415-733-9565, , or Rachel E. M.
Bennett, Director, Media & Public Relations, +1-415-733-9532, ,
both of AMB Property Corporation Web Site: http://www.amb.com/
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