Industry Overview - The Self-Storage sector in the U.S. has expanded to a substantial 2 billion square feet of space and encompasses over 33,000 facilities [1] - The market is characterized by fragmentation, with the top 10 largest companies holding approximately 36% of the total market share [1] Company Insights - iREIT® offers comprehensive research on various investment vehicles including REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, Builders, and Asset Managers [1] - The iREIT® Tracker provides data on over 250 tickers, featuring quality scores, buy targets, and trim targets [1]

Core Insights - Americold announced a series of executive leadership appointments to enhance operational execution, deepen customer relationships, and unlock global growth opportunities [1][8] Leadership Changes - Rob Chambers has been appointed as the new President, overseeing global operations with increased P&L responsibility [2] - Bryan Verbarendse will succeed Chambers as President, Americas, leading business development and operations across North and South America [4] - Richard Winnall will take charge of the Global Commercial Committee and Operations Committee, working closely with the President, Americas [6] Executive Backgrounds - Rob Chambers has 12 years of leadership experience at Americold, previously serving as Executive Vice President & Chief Commercial Officer and has a background in commercial finance [3] - Bryan Verbarendse joined Americold in August 2023 and has over 31 years of experience in retail and wholesale grocery supply chain [5] - Richard Winnall has been with Americold since 2019, holding various leadership roles and bringing extensive experience from DHL Supply Chain and Linfox [7] Strategic Focus - The leadership appointments reflect Americold's commitment to operational excellence and customer-centric growth [8] - The company aims to harmonize commercial and operational standards globally, ensuring consistent KPIs and scalable systems [6] Company Overview - Americold is a leader in temperature-controlled logistics real estate, owning and/or operating 238 warehouses with approximately 1.4 billion refrigerated cubic feet of storage across multiple regions [9]

Core Viewpoint - Americold Realty Trust (NYSE: COLD) has been under observation due to valuation concerns, but recent stock declines have prompted further analysis of the investment opportunity [1]. Group 1 - The company has experienced a decline in stock price in recent weeks, which has led to renewed interest from investors [1]. - The author has a beneficial long position in Americold Realty Trust shares, indicating confidence in the company's future performance [2]. - The analysis is part of the author's due diligence process, reflecting a thorough examination of the stock's potential [1].

Core Insights - Americold Realty Trust has commenced construction on its first import-export hub in Canada, located in Port Saint John, New Brunswick, marking a significant expansion in its operations [1][2][3] Investment and Economic Impact - The investment for the new cold storage facility is estimated between $75 million and $80 million, which will provide approximately 22,000 pallet positions, equivalent to over 800 full truckloads of temperature-sensitive goods [3] - The facility is projected to contribute up to $37 million in direct provincial GDP and create up to 100 jobs by the end of 2029, supported by a payroll rebate from Opportunities NB of up to $1.01 million [4] Strategic Partnerships - The new facility will leverage the maritime logistics capabilities of DP World and the rail logistics solutions of Canadian Pacific Kansas City (CPKC), enhancing trade routes between Canada and global markets [2][3] - The collaboration aims to create unique customer value in the cold chain, improving market access for New Brunswick's exporting companies and supporting economic growth [5][6] Operational Significance - This facility will be the sixth operated by Americold in Canada and is expected to enhance the Port's capacity to accommodate growing shipping volumes, solidifying its position as Atlantic Canada's largest port by volume [5][6] - The facility is slated to open in 2026, further integrating Americold's cold chain ecosystem with the supply chains of major food companies globally [6][7]

Core Viewpoint - Americold Realty Trust will release its second quarter 2025 financial results on August 7, 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, real estate, and value-added services, focusing on the ownership, operation, acquisition, and development of temperature-controlled warehouses [4]. - The company owns and/or operates 238 temperature-controlled warehouses, providing approximately 1.4 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 August 21, 2025, using the provided passcode [3].

Core Points - Americold Realty Trust declared a dividend of $0.23 per share for Q2 2025, consistent with Q1 2025 and reflecting a 5% increase from the previous year [1] - The dividend will be payable in cash on July 15, 2025, to stockholders of record at the close of business on June 30, 2025 [1] Company Overview - Americold 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 238 temperature-controlled warehouses, with approximately 1.4 billion refrigerated cubic feet of storage across North America, Europe, Asia-Pacific, and South America [2] - The facilities are integral to the supply chain connecting food producers, processors, distributors, and retailers to consumers [2]

Warehouse Operations - As of March 31, 2025, the company operated 238 warehouses globally, totaling approximately 1.4 billion cubic feet, with 194 in North America, 25 in Europe, 17 in Asia-Pacific, and 2 in South America [119]. - The company has 224 same store warehouses as of March 31, 2025, with 11 non-same store warehouses, including 8 facilities approved for exit and 2 in development [142]. - The average physical occupancy percentage is calculated by dividing the average number of physically occupied pallets by the estimated average of total physical pallet positions in warehouses [143]. - The average economic occupancy percentage is calculated by dividing the average economic occupied pallets by the estimated average of total physical pallet positions in warehouses [145]. Financial Performance - For the three months ended March 31, 2025, the warehouse segment revenues decreased by $16.8 million, or 2.8%, compared to the same period in the prior year on a constant currency basis [166]. - Total revenues for the global warehouse segment were $575.4 million for the three months ended March 31, 2025, compared to $597.7 million in the same period of 2024, reflecting a decline of 3.7% [165]. - Rent and storage revenues for Q1 2025 were $254.6 million, down 5.5% from $269.4 million in Q1 2024 [165]. - Same store revenues decreased by $9.3 million on a constant currency basis, primarily due to a decrease in economic occupancy of 420 basis points [170]. - Total same store revenues for the three months ended March 31, 2025, were $560,019 thousand, reflecting a decrease of 2.3% compared to the prior year [170]. - Net loss for the three months ended March 31, 2025 was $16.473 million, compared to a net income of $9.802 million in the same period of 2024 [207]. - NAREIT FFO decreased by $23.409 million, or 37.3%, to $39.342 million for the three months ended March 31, 2025, compared to $62.751 million in the same period of 2024 [207]. - Core FFO decreased by $9.978 million, or 12.9%, to $67.338 million for the three months ended March 31, 2025, compared to $77.316 million in the same period of 2024 [207]. Cost Management - The company is focused on reducing costs through energy efficiency projects, including LED lighting and solar energy storage, which have reduced energy consumption [123]. - The warehouse segment cost of operations decreased by $17.9 million, or 4.5%, during the same period, primarily due to a decrease in the non-same store pool and the closure of certain facilities [167]. - Depreciation and amortization expense decreased by $3.1 million, or 3.4%, to $88.982 million for the three months ended March 31, 2025, compared to $92.095 million in the same period of 2024 [183]. - Selling, general, and administrative expenses increased by $3.8 million, or 5.8%, to $69.235 million for the three months ended March 31, 2025, primarily due to the go live of Project Orion [184]. Project Orion - The company has incurred $175.6 million in implementation costs related to "Project Orion," aimed at enhancing technology systems and business processes, with an unamortized balance of $82.3 million as of March 31, 2025 [124]. - The company expects benefits from Project Orion to include revenue and margin improvements, cost reductions, and enhanced business analytics capabilities [124]. - Project Orion expenses increased by $2.4 million, or 30.9%, to $10.228 million for the three months ended March 31, 2025, primarily due to increased contract labor and professional fees [186]. Acquisitions and Investments - The company completed the acquisition of a temperature-controlled storage facility in Baytown, TX for $108.4 million on March 17, 2025 [128]. - The company completed the Houston acquisition on March 17, 2025, for a total cash consideration of $108.4 million, enhancing its market position [237]. - Expansion and development capital expenditures for Q1 2025 totaled $94.3 million, significantly up from $30.0 million in Q1 2024, indicating aggressive growth strategies [243]. - Net cash used in investing activities surged to $226.7 million in Q1 2025, compared to $39.3 million in Q1 2024, driven by significant capital expenditures and the Houston acquisition [249]. Debt and Liquidity - The company has a total outstanding indebtedness of $3,784,128,000 as of March 31, 2025, with 86.3% at fixed interest rates [224]. - The effective interest rate on the company's debt as of March 31, 2025, was 4.15% [224]. - The company completed a public offering of $500 million in senior unsecured notes on September 12, 2024, with a 5.409% interest rate due in 2034 [215]. - A subsequent public offering of $400 million in senior unsecured notes was completed on April 3, 2025, with a 5.600% interest rate due in 2032 [216]. - The company expects its funding sources to be adequate for both short and long-term liquidity requirements and capital commitments [212]. Operational Metrics - The average economic occupancy percentage decreased to 74.7% in Q1 2025 from 79.4% in Q1 2024, a decline of 470 basis points [165]. - Average physical occupied pallets fell to 3,500 in Q1 2025, down 8.1% from 3,810 in Q1 2024 [165]. - The total warehouse services revenues per throughput pallet increased by 1.3% to $36.74 in Q1 2025 compared to $36.27 in Q1 2024 [165]. - Same store margin decreased by 70 basis points to 34.4% compared to the previous year [170].

Core Viewpoint - Americold Realty Trust Inc. reported a decline in revenue and mixed earnings results for the quarter ended March 2025, indicating challenges in meeting market expectations [1][3]. Revenue Performance - Total revenue for the quarter was $628.98 million, down 5.4% year-over-year, and fell short of the Zacks Consensus Estimate of $669.39 million by 6.04% [1][4]. - Revenue from rent, storage, and warehouse services was $575.36 million, a decrease of 3.7% year-over-year, and below the average estimate of $597.90 million [4]. - Revenue from third-party managed services was $9.63 million, down 7.6% year-over-year, and also below the estimated $10.77 million [4]. - Global Warehouse services generated $320.78 million, a decline of 2.3% year-over-year, compared to the estimated $336.60 million [4]. - Revenue from transportation services was $43.99 million, representing a significant drop of 22.6% year-over-year, and fell short of the $58.85 million estimate [4]. Earnings Performance - The company reported an EPS of $0.34, which is an improvement from $0.03 a year ago, but did not deliver an EPS surprise as the consensus estimate was also $0.34 [1][3]. - Net earnings per share (diluted) were reported at -$0.06, compared to the average estimate of $0.05 [4]. Stock Performance - Over the past month, shares of Americold Realty Trust have returned -5.6%, contrasting with the Zacks S&P 500 composite's +11.3% change [3]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3].

Americold Realty Trust Inc. (COLD) came out with quarterly funds from operations (FFO) of $0.34 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.37 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this company would post FFO of $0.36 per share when it actually produced FFO of $0.37, delivering a surprise of 2.78%.Over the last four quarters, the company has surpassed consensus FFO estimates two times.Americold Realty ...

Financial Data and Key Metrics Changes - The Q1 2025 AFFO per share was $0.34, in line with expectations, despite lapping unusually high counter-cyclical inventory levels from the previous year [18] - The board approved a 5% increase in the quarterly dividend to $0.23 per share, reflecting confidence in operational resilience and cash flow generation [18] Business Line Data and Key Metrics Changes - Same store economic occupancy declined approximately 270 basis points sequentially from Q4 2024, reflecting a return to normal seasonality and ongoing market softness [10] - Rent and storage revenue from fixed commitment contracts increased to 60%, achieving a goal set three years ago when it was under 40% [10][22] - Same store rent and storage revenue per economic occupied pallet increased approximately 2% year-over-year, while same store services revenue per throughput pallet increased over 3% [13][20] Market Data and Key Metrics Changes - The Michigan consumer sentiment index is now below levels seen during the 2008 financial crisis, indicating a significant drop in consumer confidence [8] - Economic occupancy is expected to range from negative 200 basis points to flat compared to 2024, with throughput volume expected to be in the range of negative 1% to positive 1% [32][33] Company Strategy and Development Direction - The company is focused on four key operational priorities and continues to execute well despite near-term challenges [9] - A high-quality, low-risk development pipeline of about $1 billion is being managed, with several projects announced, including expansions in Canada and New Zealand [14][15][30] - The company aims to creatively deploy capital to unlock customer growth opportunities, as seen in the recent acquisition in Houston [17][25] Management's Comments on Operating Environment and Future Outlook - Management noted that while direct impacts from tariffs are modest, indirect impacts on consumer confidence are significant, leading to a revised outlook for the year [9][47] - The macroeconomic environment is changing, with higher tariffs and lower consumer confidence affecting demand and inventory levels [32][47] - Despite challenges, management remains confident in the company's operational model and ability to create long-term value [40] Other Important Information - The company completed a public bond offering of $400 million with an interest rate of 5.6%, which will be used to repay a portion of revolver borrowings [38] - The company is strategically exiting five facilities this year, consolidating business into owned locations to reduce costs [36] Q&A Session Summary Question: Impact of tariffs on demand - Management acknowledged that while direct impacts from tariffs are modest, indirect impacts on consumer confidence are significant, leading to a slowdown in expansion plans [47] Question: Pricing strategy amidst demand headwinds - Management expressed confidence in maintaining pricing due to the value provided to customers, despite competitive pricing pressures [48][50] Question: Monitoring the spread between physical and economic occupancy - Management noted that fixed commitments have grown, indicating continued customer engagement despite the gap between physical and economic occupancy [55][56] Question: Guidance comparison and inventory levels - Q1 results were in line with expectations, and the change in guidance was due to overall seasonality and timing of new business rather than Q1 operations [70][71] Question: Customer churn and inventory management - Management reported that customer churn remained low, with a general lowering of inventory across the system due to decreased demand [81][82] Question: Sales pipeline execution amidst customer caution - Management indicated strong execution on the sales pipeline, with approximately 50% of opportunities closed, although transitioning inventory may take longer in the current environment [94][95]