AMB - AMB Property - During the third quarter, the REIT bought nearly 1.7 million shares of its stock

AMB Property (AMB) generated FFO of 99 cents per share in the third-quarter, surpassing both its own guidance and the consensus estimate by a wide margin. The Zacks #1 Rank REIT, which trades at less than 17x 2008 FFO, enjoyed improved average occupancy rates and higher rents during the quarter. Full Analysis AMB Property Corporation develops and operates warehouses and distribution facilities. The real estate investment trust's (REIT) portfolio includes properties in North America, Europe and Asia. The specific geographic areas that AMB focuses on are what it describes as "major distribution markets, transportation hubs and gateways". This REIT targets the supply chain niche of real estate, as opposed to other commercial property REITs that may focus on office properties or shopping centers. AMB reported third-quarter results earlier this week. Funds from operations (FFO), a key earnings indicator for REITs, totaled 99 cents per share, up from 72 cents a year prior. The results topped AMB's guidance by 21 cents per and the consensus earnings estimate by 17 cents per share. This was the second consecutive earnings surprise and the third positive surprise in four quarters for AMB. The REIT realized a 50-basis point improvement in average occupancy rates, to 95.4% from 94.9% in the third quarter of 2006. Rents were higher in several markets, contributing to the higher profits. Shareholders also benefited from AMB's share repurchase program. During the third quarter, the REIT bought nearly 1.7 million shares of its stock. Prior to the release of the third-quarter report, two of the covering brokerage analysts revised their forecasts for both 2007 and 2008. The revisions resulted in a one-cent increase in 2007 FFO and a two-cent increase in 2008 FFO to $3.40 and $3.75 per share, respectively. The positive revisions had helped the REIT hit a new a record high late last week. The bullishness has not put AMB out of consideration for value investors, however. The REIT trades at 2.5x book value and less than 17x 2008 FFO. AMB also yields a dividend of 3.16%. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home