Americold Realty Trust(COLD) - 2025 Q2 - Quarterly Results

Corporate Profile Americold is a global leader in temperature-controlled logistics real estate, operating 237 warehouses with approximately 1.5 billion refrigerated cubic feet of storage globally Company Overview Americold is a global leader in temperature-controlled logistics real estate, owning and operating 237 warehouses with 1.5 billion refrigerated cubic feet of storage - Americold operates 237 temperature-controlled warehouses globally, with a total storage capacity of approximately 1.5 billion refrigerated cubic feet[5] Management, Board, and Investor Relations The report lists the company's senior management team, led by CEO George F. Chappelle, Jr., and the Board of Directors - Key leadership includes George F. Chappelle, Jr. as Chief Executive Officer and Mark R. Patterson as Chairman of the Board[6][7] Analyst Coverage, Stock Info, and Credit Ratings The company is covered by numerous financial firms, its stock trades on the NYSE under "COLD", and it holds investment-grade credit ratings - The company's common stock is listed on the New York Stock Exchange under the ticker symbol "COLD"[9] Credit Ratings | Rating Agency | Rating | Outlook/Trend | | :--- | :--- | :--- | | DBRS Morningstar | BBB | Positive Trend | | Fitch | BBB | Stable Outlook | | Moody's | Baa3 | Stable Outlook | Earnings Release Americold reported Q2 2025 Adjusted FFO of $0.36 per share, launched new development projects, and updated its full-year 2025 outlook Second Quarter 2025 Highlights & CEO Commentary Americold reported Q2 2025 Adjusted FFO of $0.36 per share, launched new development projects, and updated its full-year outlook Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $650.7M | $661.0M | -1.5% | | Net Income | $1.6M | N/A (Net Loss) | N/A | | Net Income per Share | $0.01 | ($0.23) | N/A | | Adjusted FFO per Share | $0.36 | $0.38 | -5.6% | | Core EBITDA | $159.1M | $165.5M | -3.9% | - The company launched three significant development projects: a partnership with CPKC in Kansas City, an expansion in Allentown, and a new facility with DP World in Dubai[13] - CEO commentary indicates that occupancy and throughput levels are expected to remain below typical seasonal trends in the second half of the year due to a challenging demand environment[13] 2025 Full-Year Outlook The company updated its full-year 2025 guidance, lowering its outlook for same-store revenue growth and adjusting its Adjusted FFO per share range Updated 2025 Full-Year Guidance | Metric | New Guidance (Aug 7, 2025) | Old Guidance (May 8, 2025) | | :--- | :--- | :--- | | Same Store Revenue Growth (CC) | (4.0)% - 0.0% | 0.0% - 2.0% | | Total Maintenance CapEx | $60M - $70M | $80M - $85M | | Adjusted FFO per Share | $1.39 - $1.45 | $1.42 - $1.52 | Second Quarter 2025 Total Company Financial Results Q2 2025 total revenues decreased by 1.5% to $650.7 million, with net income improving to $1.6 million from a prior-year net loss Q2 2025 vs Q2 2024 Financial Performance | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenues | $650.7M | $661.0M | | Total NOI | $211.7M | N/A | | Net Income (Loss) | $1.6M | ($64.4M) | | Core EBITDA | $159.1M | $165.5M | | Core FFO per Share | $0.27 | $0.33 | | Adjusted FFO per Share | $0.36 | $0.38 | - The significant year-over-year improvement in net income was primarily driven by the absence of a $110.7 million loss on debt extinguishment that occurred in Q2 2024[23] Global Warehouse Segment Results The Global Warehouse segment saw a 1.1% revenue decrease to $594.1 million and a 1.7% NOI decrease to $201.0 million in Q2 2025, driven by lower volumes Total Warehouse Segment Performance (Q2 & YTD) Q2 2025 Total Warehouse segment revenues declined 1.1% to $594.1 million, with NOI falling 1.7% and economic occupancy dropping 430 basis points Q2 2025 Total Warehouse Segment Performance (vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $594.1M | $600.4M | -1.1% | | Contribution (NOI) | $201.0M | $204.5M | -1.7% | | Economic Occupancy | 73.8% | 78.1% | -430 bps | | Physical Occupancy | 62.8% | 67.8% | -500 bps | YTD 2025 Total Warehouse Segment Performance (vs YTD 2024) | Metric | YTD 2025 | YTD 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $1,169.4M | $1,198.1M | -2.4% | | Contribution (NOI) | $397.6M | $401.7M | -1.0% | | Economic Occupancy | 74.3% | 78.8% | -450 bps | | Physical Occupancy | 63.1% | 68.3% | -520 bps | Same Store Warehouse Performance (Q2 & YTD) Same-store portfolio in Q2 2025 saw a 1.5% revenue decline and a 4.2% NOI decline, with economic occupancy falling 410 basis points to 75.5% Q2 2025 Same Store Performance (vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $573.1M | $581.9M | -1.5% | | Contribution (NOI) | $199.2M | $208.0M | -4.2% | | Economic Occupancy | 75.5% | 79.6% | -410 bps | | Services Margin | 13.3% | 12.4% | +90 bps | YTD 2025 Same Store Performance (vs YTD 2024) | Metric | YTD 2025 | YTD 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $1,133.1M | $1,155.1M | -1.9% | | Contribution (NOI) | $391.9M | $409.2M | -4.2% | | Economic Occupancy | 76.0% | 80.2% | -420 bps | Segment Analysis and Key Metrics Warehouse segment revenue and NOI declined due to lower volumes, with 59.7% of rent and storage revenues from fixed commitment contracts - The decrease in Global Warehouse segment revenue was principally driven by lower volumes and throughput due to a competitive environment, changes in consumer buying habits, and lapping a counter-cyclical inventory build from the prior year[57] - Annualized rent and storage revenues from fixed commitment contracts stood at $617.4 million as of June 30, 2025, representing 59.7% of total rent and storage revenues[59] - Economic occupancy for the total warehouse segment was 73.8%, a 1,100 basis point spread above the physical occupancy, demonstrating the value of fixed commitment contracts[60] Balance Sheet, Liquidity, and Dividends As of June 30, 2025, Americold had $937.0 million in liquidity, net debt of $3.9 billion, and declared a $0.23 per share dividend - Total liquidity was approximately $937.0 million, including cash and available capacity on its revolving credit facility[62] - Net debt to pro forma Core EBITDA was approximately 6.3x at the end of the quarter[62] - The company's debt structure is predominantly fixed-rate (92.7%) and unsecured (95.2%), with a weighted average term of 4.9 years[62] - A dividend of $0.23 per share was declared for Q2 2025, representing a 5% increase compared to the prior year[63] Financial Information This section presents the company's condensed consolidated balance sheets, statements of operations, and reconciliations of non-GAAP financial measures Condensed Consolidated Balance Sheets The balance sheet as of June 30, 2025, shows total assets of $8.09 billion and total liabilities of $4.94 billion Balance Sheet Summary (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $8,089,619 | $7,735,954 | | Total Liabilities | $4,944,299 | $4,428,949 | | Total Equity | $3,145,320 | $3,307,005 | Condensed Consolidated Statements of Operations Q2 2025 total revenues were $650.7 million, with a net income of $1.6 million ($0.01 per share), a significant improvement from a prior-year net loss Statement of Operations Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenues | $650,748 | $660,955 | | Operating Income | $37,595 | $63,368 | | Net Income (Loss) | $1,550 | ($64,409) | | Net Income (Loss) per Share | $0.01 | ($0.23) | Reconciliation of Net Income (Loss) to NAREIT FFO, Core FFO and Adjusted FFO This section reconciles GAAP Net Income to NAREIT FFO, Core FFO, and Adjusted FFO for Q2 2025 Q2 FFO Reconciliation Summary (in thousands, except per share) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income (Loss) | $1,550 | ($64,409) | | NAREIT FFO | $49,100 | ($7,528) | | Core FFO | $75,827 | $95,023 | | Adjusted FFO | $103,587 | $109,397 | | Adjusted FFO per Diluted Share | $0.36 | $0.38 | Reconciliation of Net Income (Loss) to NAREIT EBITDAre and Core EBITDA For Q2 2025, Core EBITDA was $159.1 million, a decrease from $165.5 million in Q2 2024, with the Core EBITDA margin contracting to 24.4% Q2 EBITDA Reconciliation Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income (Loss) | $1,550 | ($64,409) | | NAREIT EBITDAre | $122,713 | $57,444 | | Core EBITDA | $159,105 | $165,482 | | Core EBITDA Margin | 24.4% | 25.0% | Debt Detail and Maturities As of June 30, 2025, Americold had $4.05 billion in total debt, with a 4.14% weighted average interest rate and 6.3x Net Debt to Pro Forma Core EBITDA Debt Profile as of June 30, 2025 | Metric | Value | | :--- | :--- | | Total Debt Outstanding | $4.05B | | Net Debt | $3.95B | | Weighted Avg. Interest Rate | 4.14% | | Weighted Avg. Maturity | 4.9 years | | % Fixed Rate (incl. hedges) | 92.7% | | % Unsecured | 95.2% | | Net Debt to Pro Forma Core EBITDA | 6.3x | Operations Overview This section details the company's fixed commitment and lease maturity schedules, capital expenditures, and external growth activities Fixed Commitment and Lease Maturity Schedules As of June 30, 2025, the company had 604 fixed commitment and lease contracts, generating $617.4 million in annualized rent and storage revenues, with 19.3% expiring in 2026 Fixed Commitment Contract Expiration Schedule (Annualized Rent & Storage Revenues in thousands) | Expiration Year | Annualized Revenues (in thousands) | % of Total | | :--- | :--- | :--- | | Month-to-Month | $100,095 | 9.7% | | 2025 | $59,918 | 5.8% | | 2026 | $199,812 | 19.3% | | 2027 | $61,296 | 5.9% | | 2028 | $47,483 | 4.6% | | 2029+ | $148,775 | 14.4% | | Total | $617,379 | 59.7% | Capital Expenditures and Repair and Maintenance Expenses Total capital expenditures for Q2 2025 surged to $199.8 million, primarily due to expansion and development spending, with YTD capex reaching $421.8 million Capital Expenditures Summary (in thousands) | Category | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Maintenance | $17,283 | $22,832 | $32,082 | $40,765 | | External growth & integration | $0 | $0 | $108,448 | $0 | | Expansion, development & organic | $177,211 | $32,881 | $271,469 | $62,833 | | Technological upgrades | $5,324 | $2,759 | $9,835 | $3,739 | | Total Capital Expenditures | $199,818 | $58,472 | $421,834 | $107,337 | - Total repair and maintenance expenses, which are expensed rather than capitalized, were $30.6 million for Q2 2025, slightly up from $29.3 million in Q2 2024[109] External Growth and Capital Deployment The company completed projects in Allentown and Kansas City, has four major expansion projects underway, and acquired a Houston facility for $127 million - Recently completed development projects include an expansion in Allentown, PA and a new facility in Kansas City, MO, both expected to stabilize in 2026[120] - Four major projects are in process, including a large-scale automated expansion in Dallas Ft. Worth, TX, with a total estimated cost of $145-$155 million[121] - The company acquired a facility in Houston, TX on March 17, 2025, for an acquisition price of $127 million, which includes $16 million for upgrades, with stabilization expected in Q1 2027 and a 10-12% NOI ROIC[123] Other Supplemental Information This section provides historical performance trends for same-store operations and details on the company's unconsolidated joint ventures Same Store Historical Performance Trend Same-store NOI peaked in Q2 2024 at $208.0 million and has since declined to $199.2 million in Q2 2025, with economic occupancy also trending downwards Quarterly Same Store Performance Trend | Metric | Q2 25 | Q1 25 | Q4 24 | Q3 24 | Q2 24 | Q1 24 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Revenues ($M) | $573.1 | $560.0 | $592.6 | $595.8 | $581.9 | $573.3 | | Contribution (NOI) ($M) | $199.2 | $192.7 | $206.4 | $201.1 | $208.0 | $201.2 | | Economic Occupancy % | 75.5% | 76.6% | 79.3% | 78.3% | 79.6% | 80.8% | Unconsolidated Joint Ventures The company sold its 14.99% equity interest in the SuperFrio joint venture in April 2025 and retains a 49% share in the Dubai-based RSA joint venture - The company finalized the sale of its 14.99% equity interest in the SuperFrio joint venture in April 2025[130] - Americold owns a 49% equity share in the RSA joint venture in Dubai, with its pro rata share of the JV's debt at $18.7 million as of June 30, 2025[131][132] Reconciliations, Notes, and Definitions This section provides detailed segment revenues and contribution, along with definitions for key non-GAAP financial measures used in the report Revenues and Contribution (NOI) by Segment For Q2 2025, the Warehouse segment was the largest contributor to both revenue ($594.1 million) and NOI ($201.0 million) among the three business segments Q2 2025 Revenue and Contribution (NOI) by Segment (in thousands) | Segment | Revenues | Contribution (NOI) | | :--- | :--- | :--- | | Warehouse | $594,070 | $201,005 | | Transportation | $48,097 | $8,742 | | Third-party managed | $8,581 | $1,909 | | Total | $650,748 | $211,656 | Notes and Definitions This section defines non-GAAP financial measures such as NAREIT FFO, Core FFO, Adjusted FFO, NAREIT EBITDAre, Core EBITDA, and NOI, used to assess operating performance - NAREIT FFO is calculated per NAREIT standards, starting with net income and excluding items like real estate depreciation and gains/losses on property sales[139] - Core FFO adjusts NAREIT FFO for items like acquisition costs, debt extinguishment losses, and foreign currency impacts to better reflect core business operations[140] - Adjusted FFO (AFFO) adjusts Core FFO for non-real estate depreciation, stock-based compensation, and maintenance capital expenditures to measure the ability to fund distributions and incremental investments[142] - Core EBITDA starts with NAREIT EBITDAre and adjusts for non-core items similar to Core FFO, providing a measure of operations excluding items not indicative of core performance[145]