AMB Property Corporation Reports 11.1% Increase in FFO per Share for First Quarter 1999.

SAN FRANCISCO--(BUSINESS WIRE)--April 28, 1999--

AMB Property Corporation (NYSE:AMB) reported today its first quarter 1999 results.

-- Funds from operations were a record $0.50 per diluted share

for the first quarter of 1999, an increase of 11.1% over FFO

per share of $0.45 for the first quarter of 1998.

-- Same-store cash basis net operating income growth was 5.4%

for the first quarter, driven primarily by rental increases

and increased occupancy.

Revenues for the first quarter increased to $109.6 million resulting in net income of $28.0 million, up from $75.8 million and $27.9 million, respectively in the first quarter of 1998. Funds from operations were $45.4 million for the first quarter of 1999, representing a 12.7% increase over the same period in 1998.

Same-store cash basis net operating income growth was 6.7% for industrial properties and 2.8% for retail properties in the first quarter. Same store growth was driven by a 71.3% tenant retention rate and a 13.5% increase in base rents on renewals and rollovers during the period. Occupancy at quarter end increased to 96.4% for the same store portfolio, up from 95.3% in the first quarter of 1998. Total portfolio occupancy at March 31, 1999 increased to 95.4% from 94.6% at March 31, 1998.

AMB acquired 36 industrial buildings containing 1.7 million square feet for $109.1 million in the first quarter. Development starts during the period were $14.6 million, bringing total development projects in the pipeline to $264.2 million. Industrial property acquisitions and development projects are focused in distribution markets, with 51% of all AMB industrial properties located in the top six hub markets in the country. During the quarter, AMB also disposed of one retail center for $9.8 million.

"We are pleased with our solid operating results and believe that our strategy of investing in major supply-constrained markets contributes strongly to our internal growth" commented Hamid R. Moghadam, President and CEO. Moghadam continued "Internal growth is central to our investment strategy. In addition, we continue to access a pipeline of excellent acquisition and development opportunities through our Strategic Alliance Programs(TM). All of the first quarter acquisitions were sourced through either an UPREIT Alliance Partner(TM) or a Customer Alliance Partner(TM). As well, over 80% of AMB's development deliveries are in collaboration with a Development Alliance Partner(TM)."

AMB announced in early March that BPP Retail, LLC, a co-investment entity between Burnham Pacific Properties ("BPP") and the California Public Employees' Retirement System, would acquire 28 shopping centers owned by AMB aggregating 5.1 million square feet for $663.4 million. The centers are to be acquired in separate transactions throughout 1999. Six additional centers totaling 1.5 million square feet are under contract with BPP for $284.4 million, subject to a financing condition. Assuming satisfaction of financing, this transaction is currently expected to close by year-end 1999.

AMB elected, under the terms of the contract, to delay closing the first transaction from April 30, 1999 to June 15, 1999. W. Blake Baird, AMB's Chief Investment Officer, stated "Changing the timing of the first closing provides AMB with the ability to better time the initial retail dispositions with our reinvestment activities. We are pleased with our acquisition pipeline of high throughput distribution facilities and remain confident of our ability to redeploy capital in a thoughtful and timely manner."

Michael A. Coke, AMB's Chief Financial Officer, added "In addition to the strategic benefits, we believe the effects of these transactions will enhance the strength of our balance sheet and future growth prospects".

AMB is one of the largest national real estate operating companies with a primary focus on industrial properties. As of March 31, 1999, AMB owned 615 industrial buildings and 38 retail centers totaling 66.0 million square feet located in markets nationwide including: Atlanta, Boston, Chicago, Dallas/Fort Worth, Los Angeles, Miami, Minneapolis, Northern New Jersey, the San Francisco Bay Area and Seattle. In addition, AMB has an investment in 4.0 million square feet of industrial property in Chicago through an unconsolidated joint venture and manages, through its subsidiary, AMB Investment Management, Inc., 4.5 million square feet of property. As of March 31, 1999, the Company had 90.5 million common shares and units outstanding.

A copy of AMB's first quarter 1999 supplemental analyst package is available on the Company's web site at www.amb.com, under the "Financials" section or by request at [phone].

This press release contains forward looking statements about the Company, which are made pursuant to the safe-harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended. Such statements relate to the timing of, and the properties subject to, the transactions with BPP Retail and BPP, among other things, including events, conditions and financial trends that may affect the Company's future plans of operations, business strategy, growth of operations and financial position. A number of factors could cause the Company's actual results to differ materially from those anticipated, including changes in the general economic climate, the supply of and demand for industrial and retail properties in the Company's markets, potential environmental liabilities, interest rate levels, the availability of financing, slippage in development or lease-up schedules, tenant credit risks and higher than expected costs. For further information on these and other factors that could impact the Company and the statements contained herein, reference should be made to the Company's filings with the Securities and Exchange Commission, in particular the Company's report on Form 10-K for the fiscal year ended December 31, 1998. -0-

                      Consolidated Balance Sheets
                        (dollars in thousands)

                                               March 31,      Dec 31,
                                                 1999          1998

Assets
Investments in real estate, net(1)            $3,607,266    $3,483,361
Cash and cash equivalents                         29,165        25,137
Other assets                                      60,187        54,387
  Total assets                                $3,696,618    $3,562,885

Liabilities and Stockholders' Equity
Unsecured credit facilities                   $  316,000    $  234,000
Unsecured senior debt securities                 400,000       400,000
Secured debt                                     770,429       734,196
Other liabilities                                123,796       104,305
  Total liabilities                            1,610,225     1,472,501

Minority interests:
 Institutional Alliance Partners                  52,279        52,381
 Other joint venture partners                     17,974        18,012
 Preferred units(2)                              168,187       167,993
 Limited partners in OP                           86,420        86,638
   Total minority interests                      324,860       325,024

Stockholders' equity:
 Common stock                                  1,665,433     1,669,260
 Preferred stock                                  96,100        96,100
   Total stockholders' equity                  1,761,533     1,765,360
   Total liabilities and
     stockholders' equity                     $3,696,618    $3,562,885

(1)  Includes 34 retail centers and 17 industrial buildings held for
     divestiture with a net book value of $823,452 and $48,213,
     respectively, as of March 31, 1999.
(2)  For financial reporting purposes, the preferred units are
     classified as minority interests.


                 Consolidated Statements of Operations
               (dollars in thousands, except share data)

                                        For the Quarter Ended
                                               March 31,
                                           1999        1998

Revenues
Rental Revenues (1)                    $  107,657  $   74,602
Investment management and other income      1,915       1,183
  Total revenues                          109,572      75,785

Operating Expenses
Property operating                         29,534      20,252
Interest, including amortization (2)       22,967      11,841
Depreciation and amortization              18,424      11,786
General, administrative and other           4,072       2,718
  Total expenses                           74,997      46,597
   Income from operations                  34,575      29,188

Minority interests:
 Institutional Alliance Partners           (1,059)         --
 Other joint venture partners                (356)       (462)
 Preferred units holders                   (3,808)         --
 Limited partners in OP                    (1,338)       (820)
   Total minority interests                (6,561)     (1,282)
Net income                                 28,014      27,906

Preferred stock dividends                  (2,125)         --
Net income available to common
 stockholders                          $   25,889  $   27,906

Net income per common share:
 Basic                                 $     0.30  $     0.32
 Diluted                               $     0.30  $     0.32

Weighted average common shares:
 Basic                                 86,001,104  85,874,513
 Diluted (3)                           86,020,680  86,284,736

(1)  Includes straight line rents of $2,688 and $2,792 for the
     quarters ended March 31, 1999 and 1998, respectively.
(2)  Net of capitalized interest of $2,583 and $1,253 for the quarters
     ended March 31, 1999 and 1998, respectively.
(3)  Includes the dilutive effect of stock options.


           Consolidated Statements of Funds From Operations
               (dollars in thousands, except share data)

                                              For the Quarter Ended
                                                    March 31,
                                               1999           1998

Income from operations                      $    34,575   $    29,188

Real estate related depreciation
 and amortization:
  Total depreciation and amortization            18,424        11,786
  FF&E depreciation                                (114)         (104)
FFO attributable to minority interests(1):
  Institutional Alliance Partners                (1,474)           --
  Other joint venture partners                     (551)         (575)
Adjustments to derive FFO in
 unconsolidated JV:
  Company's share of net income                  (1,151)           --
  Company's share of FFO                          1,645            --
Preferred stock dividends                        (2,125)           --
Preferred unit distributions                     (3,808)           --

Funds from operations                       $    45,421   $    40,295

FFO per common share and unit:
  Basic                                     $      0.50   $      0.46
  Diluted                                   $      0.50   $      0.45

Weighted average common shares and units:
  Basic                                      90,449,529    88,428,969
  Diluted(2)                                 90,469,105    88,839,192

(1)  Represents FFO allocated to minority interests in consolidated
     joint ventures whose interests are not exchangeable into common
     stock.
(2)  Includes the dilutive effect of stock options.