Americold Realty Trust(US:COLD)2025-11-06 21:23Warehouse Operations - As of September 30, 2025, the company operated 235 warehouses globally, totaling approximately 1.4 billion cubic feet, with 191 in North America, 24 in Europe, 18 in Asia-Pacific, and 2 in South America [143]. - As of September 30, 2025, the company operates a total of 235 warehouses, with 223 being same store warehouses [168]. - Average economic occupied pallets decreased by 4.2% to 4,057 for the three months ended September 30, 2025, compared to 4,237 in the same period of 2024 [193]. - Economic occupancy percentage declined by 290 basis points to 73.8% for the three months ended September 30, 2025, compared to 76.7% in the same period of 2024 [193]. - The average physical occupancy percentage decreased by 380 basis points to 62.8% for the three months ended September 30, 2025, compared to 66.6% in the same period of 2024 [193]. - Same store contribution (NOI) declined by $5.8 million, or 2.9%, compared to the prior year [198]. - Economic occupancy percentage for same store decreased by 280 basis points to 75.5% [198]. Financial Performance - Total revenues for the warehouse segment decreased by $4.8 million, or 0.8%, on a constant currency basis for the three months ended September 30, 2025, compared to the same period in 2024 [194]. - Total revenues for the global warehouse segment for the nine months ended September 30, 2025, were $1,776.4 million, a decrease of 1.9% compared to the same period in 2024 [226]. - On a constant currency basis, warehouse segment revenues decreased by $27.6 million, or 1.5%, during the nine months ended September 30, 2025 [227]. - The global warehouse contribution (NOI) for the nine months ended September 30, 2025, was $592.6 million, reflecting a decrease of 1.3% compared to the prior year [226]. - Total same store revenues for the nine months ended September 30, 2025, were $1,719,637 thousand, down 1.8% from the previous year [235]. - Total non-same store revenues for the same period were $56,804 thousand, reflecting a decrease from $59,313 thousand in the prior year [235]. Costs and Expenses - Warehouse segment cost of operations decreased by $1.4 million, or 0.3%, on a constant currency basis for the three months ended September 30, 2025 [195]. - Warehouse segment cost of operations decreased by $21.8 million, or 1.8%, during the nine months ended September 30, 2025, primarily due to lower operating expenses from closed facilities [228]. - Same store costs of operations decreased by $4.0 million, mainly due to lower other services costs and lower power costs [234]. - Selling, general, and administrative expenses increased by $7.3 million, or 11.5%, primarily due to the go-live of Project Orion in North America and Asia Pacific [212]. - Selling, general, and administrative expenses increased by $18.6 million, or 9.9%, driven by the go-live of Project Orion in North America and Asia Pacific, resulting in higher software-related expenses [245]. Project Orion - The company has incurred $212.5 million in implementation costs related to "Project Orion," aimed at enhancing technology systems and business processes, with an unamortized balance of $82.9 million as of September 30, 2025 [148]. - For the three months ended September 30, 2025, selling, general, and administrative expenses increased by $7.3 million, or 11.5%, primarily due to the go-live of Project Orion in North America and Asia Pacific [212]. - Project Orion expenses decreased by $5.6 million, or 13.6%, primarily due to reduced contract labor and professional fees [247]. Acquisitions and Sales - The company completed the acquisition of a temperature-controlled storage facility in Baytown, TX, for total cash consideration of $108.4 million on March 17, 2025 [151]. - The sale of a 14.99% equity interest in the SuperFrio joint venture generated net proceeds of $27.0 million, with a net gain of $2.4 million recognized for the nine months ended September 30, 2025 [152]. - During the nine months ended September 30, 2025, the company sold four facilities for total proceeds of $24.4 million, resulting in a total gain of $11.6 million [153]. - The company recorded a net gain on real estate of $0.1 million during the three months ended September 30, 2025, related to the sale of a previously impaired facility [218]. Debt and Financing - As of September 30, 2025, total outstanding indebtedness was $4,127.6 million, with fixed interest rate debt comprising 91.2% [289]. - Interest expense rose by $7.4 million, or 7.4%, due to an increase in outstanding debt, including the issuance of $500.0 million and $400.0 million Public Notes [254]. - The company completed a public offering of $400,000,000 aggregate principal amount of 5.600% senior unsecured notes due May 15, 2032 [279]. - The proceeds from the issuance of the Public 5.600% Notes were used to repay a portion of borrowings previously outstanding [279]. - The company expects that its funding sources will be adequate to meet its short and long-term liquidity requirements [274]. Market Conditions - Management believes that macroeconomic conditions, including inflation and consumer spending conservatism, will continue to impact future operating results [159]. - A 100 basis point increase in market interest rates would lead to an increase in annual interest expense of approximately $3.6 million, while a decrease would result in a $3.6 million reduction [324]. - The foreign currency risk exposure as of September 30, 2025, was not materially different from the disclosures in the 2024 Annual Report [325].