AMB, a global developer and owner of industrial property, is trimming its $1.6 bn development pipeline amid the global financial crisis. New York-listed AMB said this week that it will only proceed with fully committed projects or previously negotiated build-to-suit agreements until the financial markets stabilise.
AMB, a global developer and owner of industrial property, is trimming its $1.6 bn development pipeline amid the global financial crisis. New York-listed AMB said this week that it will only proceed with fully committed projects or previously negotiated build-to-suit agreements until the financial markets stabilise.
Unveiling its plans, AMB said its development pipeline consists of more than $1 bn of assets that are 'shell complete' and in the process of being leased. The balance of approximately $636 mln is construction. AMB said its share of the remaining funding required to complete the pipeline is expected to be $338 mln.
AMB's board has also decided to suspend the fourth-quarter dividend as the company has already met its 2008 dividend distribution requirement. In addition, the regular dividend payments starting next year will be aligned to the projected taxable income from recurring operations only. The changes will allow the company to retain $53 mln of cash in the fourth quarter of 2008 and an additional $98 mln over the course of 2009, AMB said.
The company said it was in a good debt position, with maturities well-staggered, geographically diversified and provided by long-standing lending partners. Hamid Moghadam, AMB's chairman & CEO, said: 'AMB's priorities are: first, our balance sheet; second, controlling expenses; and third, managing the business for the long term.'
