AMB Property Corp. is deducting stock options against earnings on the industrial REITs income statement; it is the first NYSE-listed U.S. company to announce such a move in two years. AMB will expense the value of options at the date of grant. The accounting treatment is being applied to all options granted on or after Jan. 1, which the company projects to cost 1 cent a share for the full year.
"Our goal is to improve disclosure and transparency. We feel the true cost of stock options is better reflected in our income statement rather than in the typical footnote disclosure, Hamid R. Moghadam, CEO and chairman, said in a statement.
Two other NYSE companies that historically have deducted options from earnings are Boeing Co. and Winn-Dixie Stores Inc.