Americold Realty Trust(US:COLD)2025-05-08 20:05Warehouse 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].