Americold Realty Trust, Inc. (NYSE:COLD) Q2 2024 Earnings Conference Call August 8, 2024 8:00 AM ET Company Participants Kevin Reed - VP, IR George Chappelle - CEO Rob Chambers - President, Americas Jay Wells - CFO Conference Call Participants Mike Mueller - J.P. Morgan Samir Khanal - Evercore ISI Josh Dennerlein - Bank of America Greg McGinnis - Scotiabank Michael Carroll - RBC Capital Markets Vince Tibone - Green Street Nick Thillman - Baird Ki Bin Kim - Truist Securities Craig Mailman - Citi Todd Thomas ...

For the quarter ended June 2024, Americold Realty Trust Inc. (COLD) reported revenue of $660.96 million, up 1.8% over the same period last year. EPS came in at $0.38, compared to -$0.36 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $669.86 million, representing a surprise of -1.33%. The company delivered an EPS surprise of +15.15%, with the consensus EPS estimate being $0.33. While investors closely watch year-over-year changes in headline numbers -- revenue and e ...

Americold Realty Trust Inc. (COLD) came out with quarterly funds from operations (FFO) of $0.38 per share, beating the Zacks Consensus Estimate of $0.33 per share. This compares to FFO of $0.28 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an FFO surprise of 15.15%. A quarter ago, it was expected that this company would post FFO of $0.30 per share when it actually produced FFO of $0.37, delivering a surprise of 23.33%. Over the last four quarters, ...

Overview [Corporate Profile](index=3&type=section&id=Corporate%20Profile) Americold Realty Trust, Inc. (ART) is a global real estate investment trust (REIT) specializing in temperature-controlled warehouses - The company is a global leader in temperature-controlled storage, operating **239 warehouses** totaling approximately **1.4 billion cubic feet**[5](index=5&type=chunk) - ART's business is structured into three main segments: warehouse, transportation, and third-party managed, also holding minority interests in joint ventures in Brazil (SuperFrio) and Dubai (RSA)[5](index=5&type=chunk) - The company's shares are traded on the New York Stock Exchange under the symbol "COLD" and it holds investment-grade credit ratings from DBRS, Fitch, and Moody's[7](index=7&type=chunk)[8](index=8&type=chunk) [Earnings Release](index=5&type=section&id=Earnings%20Release) Americold announced strong Q2 2024 results, with double-digit same-store NOI growth and record services margins, raising full-year guidance [Second Quarter 2024 Highlights](index=5&type=section&id=Second%20Quarter%202024%20Highlights) Q2 2024 saw significant year-over-year growth, with Total Company NOI up **17.1%** and Core EBITDA rising **22.9%** - CEO George Chappelle highlighted that the strong organic growth is a result of building a productive, stabilized workforce and significant investments in technology, which have enhanced revenue capture and cost management[10](index=10&type=chunk) Q2 2024 Financial Highlights vs. Q2 2023 | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $661.0M | $649.6M | +1.7% | | Net Loss | ($64.4M) | ($104.8M) | Improved | | Total Company NOI | $215.5M | $184.1M | +17.1% | | Core FFO per Share | $0.33 | $0.23 | +43.5% | | AFFO per Share | $0.38 | $0.28 | +35.7% | | Core EBITDA | $165.5M | $134.7M | +22.9% | | Global Warehouse Same Store NOI (Constant Currency) | - | - | +19.3% | [Financial Results and Portfolio Update](index=6&type=section&id=Financial%20Results%20and%20Portfolio%20Update) Q2 2024 total revenue grew **1.7% to $661.0 million**, with total NOI up **17.1% to $215.5 million**, driven by pricing and cost control - Global Warehouse segment revenue grew **3.3% to $600.4 million**, and its NOI increased **18.3% to $204.5 million**, driven by pricing initiatives and strong cost controls which improved margins[27](index=27&type=chunk)[28](index=28&type=chunk) - The company continues to increase its fixed commitment storage contracts, with annualized revenue from these contracts reaching **$618.0 million**, up from **$521.3 million** a year ago[29](index=29&type=chunk) - As of June 30, 2024, the company had total liquidity of **$553.7 million**, with net debt to pro forma Core EBITDA at **5.3x** and no material debt maturities until 2026[33](index=33&type=chunk) - Economic occupancy for the total warehouse segment was **78.1%**, a decrease of **634 basis points** compared to Q2 2023, while physical occupancy was **67.8%**[19](index=19&type=chunk)[31](index=31&type=chunk) [Selected Quarterly Financial Data](index=15&type=section&id=Selected%20Quarterly%20Financial%20Data) This section presents key financial and operational data over the last five quarters, highlighting a trend of improving profitability and decreasing leverage Selected Quarterly Data (Q2 2023 - Q2 2024) | Metric (in thousands, except per share) | Q2 24 | Q1 24 | Q4 23 | Q3 23 | Q2 23 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $660,955 | $664,980 | $679,291 | $667,939 | $649,610 | | Net (Loss) Income | $(64,409) | $9,802 | $(226,800) | $(2,096) | $(104,802) | | Core EBITDA | $165,482 | $155,844 | $160,270 | $144,047 | $134,687 | | AFFO per Diluted Share | $0.38 | $0.37 | $0.38 | $0.32 | $0.28 | | Net Debt to pro forma Core EBITDA | 5.33x | 5.40x | 5.58x | 5.68x | 6.59x | Financial Information [Condensed Consolidated Balance Sheets](index=17&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2024, Americold reported total assets of **$7.80 billion**, a slight decrease from **$7.87 billion** at year-end 2023 Condensed Balance Sheet Data (in thousands) | Account | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Assets | $7,802,453 | $7,869,252 | | Total Liabilities | $4,332,865 | $4,234,665 | | Total Equity | $3,469,588 | $3,634,587 | [Condensed Consolidated Statements of Operations](index=18&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the second quarter ended June 30, 2024, the company generated total revenues of **$661.0 million** and reported a net loss of **$64.4 million**, or **$0.23 per share** Q2 2024 Statement of Operations (in thousands) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | Total Revenues | $660,955 | $649,610 | | Operating Income | $63,368 | $20,667 | | Net Loss | $(64,409) | $(104,802) | | Diluted Loss Per Share | $(0.23) | $(0.39) | [Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO and Adjusted FFO](index=19&type=section&id=Reconciliation%20of%20Net%20(Loss)%20Income%20to%20NAREIT%20FFO,%20Core%20FFO%20and%20Adjusted%20FFO) For Q2 2024, Core FFO was **$95.0 million** (**$0.33 per share**) and Adjusted FFO (AFFO) was **$109.4 million** (**$0.38 per share**), both showing substantial year-over-year growth FFO Reconciliation Summary (in thousands) | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Net (Loss) Income | $(64,409) | $(104,802) | | NAREIT FFO | $(7,528) | $(52,358) | | Core FFO | $95,023 | $62,497 | | Adjusted FFO (AFFO) | $109,397 | $75,557 | [Reconciliation of Net (Loss) Income to NAREIT EBITDAre, and Core EBITDA](index=21&type=section&id=Reconciliation%20of%20Net%20(Loss)%20Income%20to%20NAREIT%20EBITDAre,%20and%20Core%20EBITDA) The reconciliation shows a Q2 2024 Core EBITDA of **$165.5 million**, a **22.9% increase** from **$134.7 million** in Q2 2023, with Core EBITDA margin expanding to **25.0%** EBITDA Reconciliation Summary (in thousands) | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Net (Loss) Income | $(64,409) | $(104,802) | | NAREIT EBITDAre | $57,444 | $17,542 | | Core EBITDA | $165,482 | $134,687 | | Core EBITDA Margin | 25.0% | 20.7% | [Acquisition, Cyber Incident and Other, Net](index=22&type=section&id=Acquisition,%20Cyber%20Incident%20and%20Other,%20Net) For Q2 2024, the net expense was **$3.0 million**, a significant reduction from **$27.2 million** in Q2 2023, primarily due to a **$10.9 million** net insurance recovery related to a prior cyber incident Breakdown of Costs (in thousands) | Item | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Project Orion expenses | $11,984 | $2,543 | | Acquisition and integration | $1,345 | $2,402 | | Severance costs | $1,030 | $2,793 | | Cyber incident costs, net | $(10,884) | $18,998 | | **Total** | **$3,013** | **$27,235** | [Debt Detail and Maturities](index=23&type=section&id=Debt%20Detail%20and%20Maturities) As of June 30, 2024, Americold had total debt outstanding of **$3.38 billion** with a weighted average remaining term of **4.6 years** and a weighted average interest rate of **4.14%** Debt Profile as of June 30, 2024 | Metric | Value | | :--- | :--- | | Total Debt Outstanding | $3.38 Billion | | Weighted Avg. Interest Rate | 4.14% | | Weighted Avg. Term | 4.6 years | | % Unsecured | 95% | | % Fixed Rate | 82% | Operations Overview [Revenue and Contribution (NOI) by Segment](index=24&type=section&id=Revenue%20and%20Contribution%20(NOI)%20by%20Segment) The Warehouse segment continues to be the primary driver of the company's performance, generating **$600.4 million in revenue** and **$204.5 million in contribution (NOI)** for Q2 2024 Q2 2024 Revenue and NOI by Segment (in thousands) | Segment | Revenue | Contribution (NOI) | | :--- | :--- | :--- | | Warehouse | $600,387 | $204,531 | | Transportation | $50,637 | $8,850 | | Third-party managed | $9,931 | $2,102 | | **Total** | **$660,955** | **$215,483** | [Global Warehouse Economic and Physical Occupancy Trend](index=25&type=section&id=Global%20Warehouse%20Economic%20and%20Physical%20Occupancy%20Trend) This section defines and differentiates between economic and physical occupancy, highlighting the stability provided by fixed commitment contracts - Economic occupancy includes both physically occupied pallets and contractually committed pallets, providing a more complete view of revenue-generating capacity[66](index=66&type=chunk) - The company has actively pursued fixed storage commitments to enhance revenue predictability, with **311 customers** under such contracts as of Q2 2024[68](index=68&type=chunk) [Global Warehouse Portfolio](index=26&type=section&id=Global%20Warehouse%20Portfolio) The company's global warehouse portfolio consists of **235 facilities** totaling **1.43 billion cubic feet**, with North America accounting for **86%** of the portfolio's cubic feet Portfolio by Geography (Six Months Ended June 30, 2024) | Region | of Warehouses | Cubic Feet (M) | % of Total | Revenue (M) | Contribution (NOI) (M) | | :--- | :--- | :--- | :--- | :--- | :--- | | North America | 192 | 1,229.7 | 86% | $996.3 | $347.1 | | Europe | 25 | 114.7 | 8% | $89.1 | $25.6 | | Asia-Pacific | 16 | 76.0 | 5% | $106.7 | $27.0 | | South America | 2 | 9.7 | 1% | $6.0 | $2.0 | | **Total** | **235** | **1,430.1** | **100%** | **$1,198.1** | **$401.7** | - By warehouse type, Distribution facilities account for **51% of revenue** and **44% of NOI**, making it the largest category[73](index=73&type=chunk)[75](index=75&type=chunk) [Fixed Commitment and Lease Maturity Schedules](index=28&type=section&id=Fixed%20Commitment%20and%20Lease%20Maturity%20Schedules) The company provides a schedule of expirations for its fixed storage commitments and leases, with total annualized committed revenue of **$618.0 million** as of June 30, 2024 - Total annualized committed rent and storage revenue from **571 fixed commitment contracts** and leases is **$618.0 million**[77](index=77&type=chunk) - The company's facility leases to third parties have a weighted average remaining term of **44 months**[79](index=79&type=chunk) [Maintenance Capital Expenditures, Repair and Maintenance Expenses and External Growth, Expansion and Development Capital Expenditures](index=30&type=section&id=Maintenance%20Capital%20Expenditures,%20Repair%20and%20Maintenance%20Expenses%20and%20External%20Growth,%20Expansion%20and%20Development%20Capital%20Expenditures) In Q2 2024, the company invested **$22.8 million** in maintenance capital expenditures and **$35.6 million** on external growth, expansion, and development projects Q2 2024 Capital & Maintenance Spending (in thousands) | Category | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Maintenance Capital Expenditures | $22,832 | $22,590 | | Repair and Maintenance Expenses | $29,268 | $29,400 | | External Growth & Development CapEx | $35,640 | $82,112 | Total Global Warehouse Segment Financial and Operating Performance [Global Warehouse Segment Financial Performance](index=31&type=section&id=Global%20Warehouse%20Segment%20Financial%20Performance) The Global Warehouse segment's financial performance improved significantly in Q2 2024, with NOI increasing **18.3% to $204.5 million**, driven by a dramatic turnaround in warehouse services Global Warehouse Segment Performance (Q2 2024 vs Q2 2023) | Metric (in thousands) | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $600,387 | $581,170 | +3.3% | | Contribution (NOI) | $204,531 | $172,842 | +18.3% | | Warehouse Services Contribution (NOI) | $36,327 | $(5,177) | +801.7% | | Total Margin | 34.1% | 29.7% | +433 bps | | Warehouse Services Margin | 10.9% | (1.7)% | +1261 bps | [Same-Store Financial Performance](index=33&type=section&id=Same-Store%20Financial%20Performance) The same-store portfolio demonstrated strong organic growth in Q2 2024, with same-store NOI growing by an impressive **17.3%** (**19.3% constant currency**), fueled by improved services margin Same-Store Performance (Q2 2024 vs Q2 2023) | Metric | Q2 2024 | Q2 2023 | Change (Actual) | Change (Constant Currency) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $582.7M | $563.6M | +3.4% | +5.3% | | Contribution (NOI) | $206.6M | $176.2M | +17.3% | +19.3% | | Total Margin | 35.5% | 31.3% | +419 bps | +417 bps | | Services Margin | 13.4% | 1.1% | +1221 bps | +1209 bps | [Same-Store Key Operating Metrics](index=35&type=section&id=Same-Store%20Key%20Operating%20Metrics) In Q2 2024, same-store economic and physical occupancy declined, but strong pricing offset this, with rent and storage revenue per economic occupied pallet growing **4.8%** Same-Store Operating Metrics (Q2 2024 vs Q2 2023) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Economic Occupancy % | 79.4% | 84.7% | -526 bps | | Physical Occupancy % | 68.9% | 77.7% | -875 bps | | Rent/Storage Revenue per Econ. Pallet | $61.94 | $59.12 | +4.8% | | Services Revenue per Throughput Pallet | $37.26 | $33.74 | +10.4% | [Same-Store Historical Performance Trend](index=37&type=section&id=Same-Store%20Historical%20Performance%20Trend) This table provides a six-quarter historical view of same-store performance, illustrating a clear trend of improving profitability, with services margin rising from **1.1%** in Q2 2023 to **13.4%** in Q2 2024 Quarterly Same-Store Services Margin Trend | Quarter | Same-Store Services Margin | | :--- | :--- | | Q1 2023 | 4.0% | | Q2 2023 | 1.1% | | Q3 2023 | 3.5% | | Q4 2023 | 6.3% | | Q1 2024 | 10.8% | | Q2 2024 | 13.4% | External Growth and Capital Deployment [External Growth and Capital Deployment](index=38&type=section&id=External%20Growth%20and%20Capital%20Deployment) The company details its active development pipeline and recent acquisitions, with new projects targeting a **10-12% stabilized NOI return on invested capital (ROIC)** - Five major development and expansion projects were completed in 2023, adding significant capacity in the US and Australia[99](index=99&type=chunk) - Three expansion and development projects are currently in process in Allentown, PA; Kansas City, MO; and Sydney, Australia, with a total estimated cost of approximately **$280-$300 million** and expected stabilized NOI ROIC of **10-12%**[100](index=100&type=chunk) - Two facilities were acquired in the second half of 2023 in Australia and New Jersey, with an expected stabilized NOI ROIC of **9-10%**[101](index=101&type=chunk) Unconsolidated Joint Ventures (Investments in Partially Owned Entities) [SuperFrio (Brazil)](index=39&type=section&id=SuperFrio%20(Brazil)) Americold holds a **14.99% equity share** in SuperFrio, a Brazil-based temperature-controlled warehouse operator, with its pro rata share of the joint venture's NOI being approximately **$1.1 million** for Q2 2024 Americold's Pro Rata Share of SuperFrio Performance (Q2 2024) | Metric | Value (USD thousands) | | :--- | :--- | | Ownership | 14.99% | | Share of Debt | $19,466 | | Share of NOI | $1,059 | | Share of Net Loss | $(798) | [RSA (Dubai)](index=40&type=section&id=RSA%20(Dubai)) The company owns a **49% equity share** in the RSA joint venture in Dubai, with Americold's pro rata share of the JV's NOI being a loss of **$64,000** for Q2 2024 Americold's Pro Rata Share of RSA Performance (Q2 2024) | Metric | Value (USD thousands) | | :--- | :--- | | Ownership | 49% | | Share of Debt | $6,644 | | Share of NOI | $(64) | | Share of Net Loss | $(148) | 2024 Guidance [2024 Guidance](index=41&type=section&id=2024%20Guidance) Reflecting its strong first-half performance, Americold raised its full-year 2024 guidance, now expecting AFFO per share to be in the range of **$1.44 to $1.50** Updated 2024 Full-Year Guidance | Metric | As of Aug 8, 2024 | As of May 9, 2024 | | :--- | :--- | :--- | | AFFO per share | $1.44 - $1.50 | $1.38 - $1.46 | | Warehouse same store revenue growth (CC) | 2.0% - 4.0% | 2.5% - 5.5% | | Warehouse same store NOI growth (CC) | 900-1000 bps higher than revenue | 700-750 bps higher than revenue | | Interest expense | $133M - $141M | $135M - $143M | Notes and Definitions [Notes and Definitions](index=42&type=section&id=Notes%20and%20Definitions) This section defines key non-GAAP financial measures used in the report, including FFO, AFFO, and EBITDAre, providing clarity on supplemental performance metrics - Defines key non-GAAP metrics such as FFO, Core FFO, and Adjusted FFO (AFFO), explaining that they are used to provide supplemental performance measures by excluding items like real estate depreciation and certain non-core or volatile expenses[110](index=110&type=chunk) - Explains the calculation of EBITDAre and Core EBITDA, which are designed to measure operating results unaffected by differences in capital structure and certain non-core items[110](index=110&type=chunk) - Provides the methodology for determining the "same store" population, which includes properties owned for two full comparable periods with at least twelve months of normalized operations, used for analyzing organic growth[112](index=112&type=chunk)

Core Viewpoint - Global Net Lease, Inc. (GNL) successfully disposed of a portfolio of nine cold storage properties for $170 million, achieving a cash cap rate of 7.88% on a weighted average remaining lease term of 3.3 years, which is part of a broader strategic initiative to reduce debt and align with industry peers [3][4]. Group 1: Disposition Details - The portfolio was leased to subsidiaries of Americold Realty Trust, Inc. (COLD) and was acquired by GNL for $153.4 million [3][4]. - This transaction is part of a previously announced $567 million of closed and pipeline dispositions, with an overall cash cap rate of 7.2% [3][4]. Group 2: Strategic Goals - The CEO of GNL, Michael Weil, emphasized that the sale reduces risk by eliminating uncertainty around tenant renewals and extends the weighted average remaining lease term [3][4]. - GNL plans to use the net proceeds from the sale to strategically pay down existing debt, aiming to lower its Net Debt to Adjusted EBITDA ratio to be more in line with peers [3][4]. Group 3: Financial Guidance - The disposition aligns with GNL's 2024 full-year guidance, which projected a cash cap rate range of 7% to 8% for dispositions [4].

Core Insights - The article discusses the investment potential of Americold Realty Trust (COLD) and Essential Properties Realty Trust (EPRT), highlighting their unique market positions and financial performance. Company Overview - Americold Realty Trust is a global leader in temperature-controlled logistics real estate, owning and operating 241 temperature-controlled warehouses with approximately 1.5 billion refrigerated cubic feet of storage across multiple regions [12][34]. - Essential Properties Realty Trust focuses on properties leased to various tenants, including restaurants and automotive services, and has a diversified portfolio [40]. Financial Performance - COLD generated approximately $104.9 million in AFFO for Q1-24, equating to $0.37 per share, marking a year-over-year increase of over 28% [36]. - COLD raised its full-year 2024 AFFO per share guidance to a range of $1.38 to $1.46, reflecting a 12% increase from 2023 and a 28% increase from 2022 [37]. - EPRT's AFFO per share guidance for 2024 is refined to a range of $1.72 to $1.75, indicating over 5% growth at the midpoint [53]. Market Position and Competitive Advantage - COLD's facilities are considered "mission-critical" within the supply chain, providing a wide moat advantage due to strategic locations and technology integration [6][12]. - EPRT maintains a strong unit-level rent coverage of 3.9x, with 99% of tenants providing unit-level financial reporting, enhancing transparency and stability [49]. Growth Projections - Analysts forecast a growth rate of 13% for COLD in 2025 and 12% in 2026 [20]. - EPRT has averaged around 15% annual growth in AFFO per share since 2020, with analysts estimating a 7% growth rate moving forward [51]. Valuation Metrics - COLD is currently trading at $25.35 with a P/AFFO multiple of 18.7x, compared to a normal multiple of 26.7x, indicating potential for price appreciation [39]. - EPRT shares trade at $26.85 with a P/AFFO multiple of 15.9x, below the normal of 18.5x, suggesting an attractive valuation [47].

The REIT and Equity Trust - Other industry constituents are likely to be affected by the uncertain business environment. Customers are prioritizing cost management and delaying leasing decisions. The Fed is expected to maintain a cautious stance on rate cuts, keeping REITs' interest expenses high. Supply-chain constraints and high material costs could further elevate development expenses. About the Industry What's Shaping the Future of the REIT and Equity Trust - Other Industry? Supply-Chain Woes & High Mat ...

hobo_018/iStock via Getty Images It's time to take a deeper look at Americold (NYSE:COLD). Despite their weak share price performance, their AFFO per share growth was quite strong the last couple of years. We're starting with the latest update: They increased guidance for 2024 materially in early May: Old guidance: $1.32 to $1.42 (midpoint $1.37) New guidance: $1.38 to $1.46 (midpoint $1.42) Full year guidance change: +3.6%. Year-over-year growth: +11.8% COLD was already providing guidance for a big increas ...

ATLANTA, GA., May 21, 2024 (GLOBE NEWSWIRE) -- Americold Realty Trust (NYSE: COLD), a global leader in temperature-controlled logistics, real estate, and value-added services focused on the ownership, operation, acquisition and development of temperature-controlled warehouses, today announced that its Board of Directors has declared a dividend of $0.22 per share for the second quarter of 2024, payable to holders of the Company's common stock. The dividend will be payable in cash on July 15, 2024 to stockhol ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to , Commission File Number: 001-34723 AMERICOLD REALTY TRUST, INC. (Exact name of registrant as specified in its charter) | Maryland | | 93-0295215 | | --- | ...