AMB Property Corporation: Navigating Treacherous Waters

By Douglas Abbey
2010 | Case No. RE134
In November 2008, in the depths of the worst financial crisis since the Great Depression, Hamid Moghadam, CEO of industrial REIT AMB, had to act decisively to reverse the sell-off in AMB shares and position the company to take advantage of future opportunities. Considering both the long and short term, Moghadam needed to re-evaluate the company’s investment strategy and business model, formulate a financial strategy for maintaining liquidity and fortifying the company’s balance sheet, and consider a number of organizational issues in order to successfully navigate the company through this crisis.

Learning Objective

Provide an overview on REITs and how they were affected by the financial crisis of 2008; students will consider the benefits and costs of international expansion, merchant building, and various options in recapitalization of a REIT’s balance sheet
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