Group 1 - The article emphasizes the presence of numerous investment bargains in the current market, particularly for those willing to conduct thorough research [2] - Americold Realty is highlighted as a potential investment opportunity, suggesting a focus on defensive stocks with a medium- to long-term investment horizon [2] Group 2 - The article is part of an income-focused investing service, indicating a strategy centered on sustainable portfolio income, diversification, and inflation hedging [1]

Core Viewpoint - Americold Realty Trust will release its fourth quarter and full year 2024 financial results on February 20, 2025, before market opening, followed by a conference call at 8:00 a.m. Eastern Time [1]. Company Overview - Americold Realty Trust is a global leader in temperature-controlled logistics, focusing on the ownership, operation, acquisition, and development of temperature-controlled warehouses [4]. - The company owns and/or operates 239 temperature-controlled warehouses, providing approximately 1.5 billion refrigerated cubic feet of storage across North America, Europe, Asia-Pacific, and South America [4]. - Americold's facilities play a crucial role in the supply chain, connecting food producers, processors, distributors, and retailers to consumers [4]. Conference Call Details - A webcast of the conference call will be available on the Investor Relations section of Americold's website [2]. - Participants can join the conference call by dialing in at least 5 minutes prior to the start time, with specific numbers provided for domestic and international callers [3]. - The conference call playback will be accessible until March 6, 2025, using the provided passcode [3].

Core Points - Americold Realty Trust declared a dividend of $0.22 per share for Q4 2024, payable on January 15, 2025, to stockholders of record as of December 31, 2024 [1] Company Overview - Americold Realty Trust is a global leader in temperature-controlled logistics, real estate, and value-added services [2] - The company focuses on the ownership, operation, acquisition, and development of temperature-controlled warehouses [2] - Americold owns and/or operates 239 temperature-controlled warehouses, providing approximately 1.5 billion refrigerated cubic feet of storage across North America, Europe, Asia-Pacific, and South America [2] - The facilities play a crucial role in the supply chain, connecting food producers, processors, distributors, and retailers to consumers [2]

Core Insights - Canadian Pacific Kansas City (CPKC) and Americold Realty Trust are exploring co-development opportunities in Mexico to enhance temperature-sensitive commodity flows across North America [1][4] - The strategic collaboration between CPKC and Americold, established in June 2023, aims to optimize temperature-controlled logistics [2][4] Company Developments - Americold is investing between $500 million and $1 billion over the next 5 to 10 years in development projects with CPKC and DP World [5] - CPKC has added 1,000 new 53-foot refrigerated intermodal containers to its network, more than doubling its existing fleet [4] Facility and Infrastructure - Americold's first development with CPKC is a 335,000-square-foot, $127 million import-export hub in Kansas City, set to open in mid-2025 [3] - The new facility will facilitate the movement of temperature-sensitive food between Mexico and the United States [3] Strategic Importance - The partnership aims to address inefficiencies in the cold chain and enhance supply chain value for customers [4] - CPKC is the only single-line transnational railway linking Canada, the U.S., and Mexico, providing extensive access to major ports [7]

Core Insights - Americold Realty Trust's Russellville, Arkansas facility won the 2024 Built By The Best Award from the Controlled Environment Building Association, showcasing its excellence in design and operational capabilities [1][2] - The facility is a highly automated 136,000-square-foot cold storage and distribution center, featuring a 140-foot height, which added 42,000 pallet positions and 13 million cubic feet of storage capacity [2][3] Facility Features - The multimillion-dollar project includes an advanced ammonia refrigeration system, insulated metal panel exterior walls, an automated truck unloading system, and a state-of-the-art automated storage and retrieval system (ASRS) [3] - Sustainability is prioritized with energy-efficient systems and a 25% reduction in water use, alongside modern amenities such as a breakroom, offices, and a conference room [3] Company Overview - Americold is a global leader in temperature-controlled logistics real estate, owning and/or operating 239 warehouses with approximately 1.5 billion refrigerated cubic feet of storage across multiple continents [5] - The company's facilities play a crucial role in the supply chain, connecting food producers, processors, distributors, and retailers to consumers [5]

Group 1 - Americold Realty Trust (NYSE: COLD) has been monitored for a long time, with a growing interest in the company recently [1] - The company has a history of small positions held by the analyst, indicating cautious investment behavior [1] - The analyst has a background in financial performance analytics, trading, and banking, which adds credibility to the analysis of Americold [1] Group 2 - The analyst holds a beneficial long position in Americold shares, indicating confidence in the company's future performance [1] - The article expresses personal opinions and insights rather than being influenced by external compensation [1]

Financial Data and Key Metrics Changes - The company generated AFFO of approximately $100 million or $0.35 per share, an increase of over 11% from Q3 of last year [8] - Same-store NOI was approximately $201 million in the quarter, up 11% from the prior year, and remains on track for double-digit growth for the full year [8] - Services margins were higher in Q3, partly due to an over-delivery on throughput volumes, with a new base for annual warehouse services margins set at 12% [11][12] Business Line Data and Key Metrics Changes - Same-store rent and storage revenue per economic occupied pallet on a constant currency basis increased by almost 4% versus the prior year, while same-store services revenue per throughput pallet increased by 11% [22][28] - The company achieved an incremental $100 million of warehouse services NOI versus the prior year through workforce hiring, retention, and productivity [10] Market Data and Key Metrics Changes - Economic occupancy dipped in Q3 to approximately 77%, with rent and storage revenue derived from fixed commitment storage contracts at approximately 58% [18][30] - The churn rate remains low at approximately 3% of total warehouse revenues, consistent with historical rates [29] Company Strategy and Development Direction - The company is focused on expanding its services to organically grow and provide more supply chain capabilities to customers [20] - Plans for a $148 million automated expansion in the Dallas-Fort Worth market were announced, which will add 50,000 pallet positions and 19 million cubic feet to the portfolio [32] - The company is maintaining its current AFFO per share guidance range of $1.44 to $1.50, representing an approximately 16% increase from 2023 [25] Management's Comments on Operating Environment and Future Outlook - Management noted that while a full recovery of consumer demand is expected, it may take longer than originally anticipated due to inflationary pressures [15][16] - The company continues to control its operations and grow earnings through productivity and an organic sales pipeline, setting up for outsized growth as consumer demand recovers [16][19] Other Important Information - The company reported an increase in its GRESB score to 81 out of 100, finishing first in its peer group, highlighting its commitment to sustainability [25] - The company has a robust development pipeline exceeding $1 billion in projects across expansions, customer-dedicated builds, and partnership-focused builds [42] Q&A Session Summary Question: What is the outlook on occupancy? - Management indicated that the primary driver of occupancy decline is broad-based consumer demand, not related to a specific sector or region [62] Question: Are there any issues with fixed commitment contracts? - Management reported continued growth in fixed commitments, achieving a 14th consecutive quarterly record [63][64] Question: What is the expectation for service margins going forward? - Management stated that 12% is the new base for service margins going forward, with expectations for continued improvement as volumes return [70] Question: What needs to happen for an inflection in occupancy? - Management emphasized that moderating inflation and interest rates are crucial for increasing consumer disposable income, which would spur demand [112]

Warehouse Operations - As of September 30, 2024, the company operates 239 warehouses globally, totaling approximately 1.4 billion cubic feet, with 195 in North America, 25 in Europe, 17 in Asia-Pacific, and 2 in South America[119]. - The number of total warehouses as of September 30, 2024, was 239, including 9 non-same store warehouses and 4 third-party managed warehouses[151]. - The company has exited less strategic and profitable markets, including the sale of certain warehouse assets and the exit of certain managed warehouse agreements[122]. Financial Performance - For the three months ended September 30, 2024, total warehouse segment revenues were $612.2 million, a 1.6% increase compared to $602.6 million in the same period of 2023[175]. - Warehouse segment NOI increased by 13.0% during the three months ended September 30, 2024, primarily due to increased NOI in the same store portfolio of $19.8 million[178]. - Same store contribution NOI for the warehouse segment was $198.6 million, reflecting an 11.7% increase compared to $177.8 million in the prior year[175]. - Total warehouse segment revenues increased by $58.3 million, or 3.3%, on a constant currency basis during the nine months ended September 30, 2024, compared to the same period in the prior year[216]. - Same store revenues totaled $1,753,957 thousand, with a constant currency increase of 3.0% during the nine months ended September 30, 2024[218]. Cost Management - The total warehouse segment cost of operations decreased by $6.8 million, or 1.6%, during the three months ended September 30, 2024, compared to the prior year[177]. - Total warehouse segment cost of operations decreased by $25.2 million, or 2.0%, on a constant currency basis during the nine months ended September 30, 2024, compared to the same period in the prior year[215]. - Same store cost of operations was $395.9 million, a decrease of 1.6% compared to $400.3 million in the prior year[180]. Project Orion - The company has incurred $138.3 million in implementation costs related to Project Orion, aimed at enhancing technology systems and business processes, with an unamortized balance of $76.0 million as of September 30, 2024[129]. - Project Orion expenses increased by $18.4 million primarily due to increased contract labor and professional fees[199]. - Project Orion expenses increased by $33.7 million, primarily due to increased contract labor and professional fees[238]. Cybersecurity - The company experienced a cybersecurity incident on April 26, 2023, which partially impacted operations, but all locations resumed operations at pre-cyberattack levels by June 30, 2023[124]. - Cyber incident related costs decreased by $4.7 million during the three months ended September 30, 2024 compared to the same period in the prior year[200]. - Cyber incident related costs decreased by $31.8 million, partially due to a $10.0 million payment for business interruption insurance[239]. Debt and Financing - The company sold 13,244,905 common shares under the Prior ATM Equity Program for net proceeds of $412.6 million, which were used to repay a portion of revolver borrowings[263]. - On September 12, 2024, the company completed a public offering of $500 million aggregate principal amount of senior unsecured notes with a 5.409% interest rate, due September 12, 2034[265]. - As of September 30, 2024, the total outstanding indebtedness is $3,552.7 million, with fixed-rate debt constituting 92.4% and variable-rate debt 7.6%[274][277]. - Interest expense for the three months ended September 30, 2024, was $34.255 million, compared to $35.572 million in the same period of 2023, indicating a decrease of 3.7%[256]. Revenue and Income - Total revenue for the nine months ended September 30, 2024, was $1,213.1 million, compared to $1,585.8 million for the year ended December 31, 2023, reflecting a decrease[307]. - Operating income increased to $110.7 million for the nine months ended September 30, 2024, from $74.5 million for the year ended December 31, 2023[307]. - NAREIT FFO for the nine months ended September 30, 2024, was $110.8 million, compared to $55.3 million for the same period in 2023[251]. Market and Economic Conditions - Economic occupancy is a key driver of financial results, with a focus on establishing contracts with fixed storage commitments to mitigate seasonal impacts[154]. - The company aims to transition existing customers to fixed storage commitments during contract renewals, enhancing revenue stability[154]. - A 100 basis point increase in market interest rates would increase annual interest expense by approximately $2.7 million[310].

Americold Realty Trust Inc. (COLD) reported $674.17 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 0.9%. EPS of $0.35 for the same period compares to -$0.01 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $694.97 million, representing a surprise of -2.99%. The company delivered an EPS surprise of -2.78%, with the consensus EPS estimate being $0.36.While investors closely watch year-over-year changes in headline numbers -- revenu ...

Americold Realty Trust Inc. (COLD) came out with quarterly funds from operations (FFO) of $0.35 per share, missing the Zacks Consensus Estimate of $0.36 per share. This compares to FFO of $0.32 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of -2.78%. A quarter ago, it was expected that this company would post FFO of $0.33 per share when it actually produced FFO of $0.38, delivering a surprise of 15.15%.Over the last four quarters, t ...