Temperature-controlled warehouse operator Lineage said the market is shaking off the effects of excessive facility construction and post-pandemic inventory destocking. Management from the Novi, Michigan-based company said Wednesday that new cold storage space grew 14.5% from 2021 through 2025 while demand increased only 5%. With the market roughly 10% oversupplied, management sees fundamentals firming as capacity is expected to increase by just 1.5% this year and customer inventories appear to be at troug ...

Americold Realty Trust (NYSE:COLD) Q4 2025 Earnings call February 19, 2026 08:00 AM ET Company ParticipantsBrendan Lynch - DirectorMichael Carroll - Managing DirectorNick Joseph - Head of U.S. Real Estate and Lodging Research TeamRich Leland - VP of Finance, Investor Relations, and Corporate TreasurerRob Chambers - CEOSamir Khanal - Director of U.S. REITsScott Henderson - EVP, Chief Investment Officer, and Interim CFOVince Tibone - Managing Director and Head of U.S. Industrial and Mall ResearchConference Ca ...

Americold Realty Trust (NYSE:COLD) Q4 2025 Earnings call February 19, 2026 08:00 AM ET Speaker7Welcome to Americold Realty Trust fourth quarter 2025 earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the call over to Rich Leland, Vice Preside ...

Core Insights - Americold Realty Trust reported a fourth-quarter AFFO per share of $0.38, a 3% increase year-over-year, indicating solid performance despite challenges in the cold storage industry [3][19] - The company achieved a full-year services margin improvement and met its long-term target of 60% for fixed commitment contracts, reflecting effective operational execution [3][6] - For 2026, Americold has outlined key priorities aimed at strengthening its balance sheet and enhancing profitability, while also expanding into high-value retail and adjacent sectors [3][8] Financial Performance - Total revenues for Q4 2025 were $658.5 million, a 1.2% decrease from $666.4 million in Q4 2024, primarily due to lower volumes in the Global Warehouse segment [6][13] - The company reported a net loss of $88.3 million, or $0.31 loss per diluted share, compared to a net loss of $36.2 million, or $0.13 per diluted share in Q4 2024 [17][11] - Adjusted FFO for Q4 2025 was $108.3 million, or $0.38 per diluted share, a 2.7% increase from $105.9 million, or $0.37 per diluted share in Q4 2024 [19][6] Operational Metrics - Global Warehouse segment same store revenues decreased by 1.1% on an actual basis and 1.5% on a constant currency basis compared to Q4 2024 [6][14] - The same store services margin increased to 13.9% from 12.7% in Q4 2024, indicating improved operational efficiency [31][6] - Global Warehouse segment contribution NOI for Q4 2025 was $206.9 million, a 2.7% increase from $201.4 million in Q4 2024, driven by lower operational costs [15][16] 2026 Outlook - The company expects AFFO per share for 2026 to be in the range of $1.20 to $1.30, reflecting a cautious approach amid ongoing industry challenges [3][8] - Guidance for warehouse segment same store revenues is projected between $2.20 billion and $2.27 billion, with total company NOI expected to range from $780 million to $845 million [8][7] - Core EBITDA is anticipated to be between $570 million and $620 million, indicating a focus on maintaining profitability [8][7] Balance Sheet and Liquidity - As of December 31, 2025, Americold had total liquidity of approximately $935.4 million, with total net debt outstanding around $4.2 billion [20][21] - The company's net debt to pro forma Core EBITDA ratio was approximately 6.8x, indicating a manageable level of leverage [21][20] - Approximately 86.6% of total debt was at a fixed rate, providing stability in interest expenses [21][20] Dividend Information - The Board of Directors declared a 5% increase in the dividend to $0.23 per share for Q4 2025, reflecting a commitment to returning value to shareholders [22][6]

Industry Overview - The broader cold storage industry is experiencing a decline due to oversupply [1] - Lineage (LINE) presents a compelling investment opportunity due to its technological leadership [1] Company Analysis - Lineage has structural cost advantages over competitors like Americold [1] - The company's technological advancements contribute to its competitive edge in the market [1]

Core Viewpoint - Americold Realty Trust has appointed two new independent directors and formed a Finance Committee to enhance shareholder value, while entering into a cooperation agreement with Ancora Group Holdings LLC to facilitate collaboration with significant shareholders [2][3][4]. Group 1: Board Appointments and Committee Formation - Joseph Reece and Stephen Sleigh have been appointed to Americold's Board of Directors, bringing valuable governance experience and expertise in corporate finance and shareholder engagement [2][3]. - A new Finance Committee has been established to review the company's portfolio and make recommendations regarding potential sales or divestitures, including international opportunities [3]. Group 2: Strategic Focus and Collaboration - The Finance Committee will also focus on reducing debt, maintaining dividends, and preserving core assets for long-term benefits [3]. - The collaboration with Ancora is aimed at enhancing governance and value creation, with Ancora agreeing to support the Board's full slate of directors at the 2026 Annual Meeting [4]. Group 3: Company Overview and Market Position - Americold is a leader in temperature-controlled logistics with over 230 facilities globally, ensuring efficient movement of refrigerated products [6][7]. - The company emphasizes its role in the global food supply chain, leveraging technology and sustainable practices to deliver value [8].

Core Viewpoint - A lawsuit is pending against Lineage, Inc. for alleged violations of securities laws related to its July 2024 IPO, claiming that the company misrepresented its financial health and market conditions [1] Summary by Relevant Sections Lawsuit Details - The lawsuit was filed by an investor on August 1, 2025, alleging that the registration statement for Lineage's IPO was false and misleading [1] - The plaintiff claims that Lineage was experiencing a decline in customer demand due to increased cold-storage supply and destocking of excess inventory from the COVID-19 pandemic [1] - It is alleged that Lineage's customers shifted to maintaining leaner cold-storage inventories, impacting the company's revenue and occupancy rates [1] Financial Performance Claims - The lawsuit asserts that instead of stable revenue growth and high occupancy rates as claimed, Lineage was facing stagnant or declining revenue, occupancy rates, and rent prices [1] - The company reportedly implemented price increases prior to the IPO that could not be sustained due to the weakening demand environment [1] - The plaintiff argues that Lineage was unable to counteract these adverse trends through operational efficiencies or competitive advantages [1]

Core Insights - Lineage Inc. is expanding its U.S. operations with the construction of an automated cold-storage facility in Hutchins, Texas, expected to open in late 2027, amid a challenging financial environment due to tariff pressures [1][2][5] Group 1: Expansion Plans - The new facility in Hutchins is the first of two next-generation automated warehouses designed for a long-time customer, enhancing Lineage's capabilities in a key market [2] - The location near Union Pacific's Dallas Intermodal Terminal allows Lineage to serve both domestic and cross-border markets effectively [3] - This expansion follows a recent increase in capacity at Lineage's Hobart, Indiana facility, which is now the largest in North America, adding 188,000 square feet and 58,000 pallet positions [4] Group 2: Financial Performance - Lineage reported a third-quarter net loss of $112 million, despite a 3% year-over-year increase in consolidated revenue to $1.38 billion [6] - Physical occupancy rates were at 75.2%, slightly below the previous year but showing sequential improvement [6] - The company has adjusted its full-year 2025 guidance downward due to ongoing tariff uncertainties and high food prices affecting inventory levels [5] Group 3: Market Dynamics - Despite challenges from tariffs and inflation, consumer demand for products within Lineage's network continues to grow [7]

Financial Data and Key Metrics Changes - The third-quarter AFFO per share was reported at $0.35, aligning with expectations despite ongoing industry challenges from lower consumer demand and increased supply [17][22] - Same-store economic occupancy decreased to 75.5%, reflecting continued demand pressure, while same-store throughput saw a slight sequential increase due to the annual agricultural harvest [22][23] - Same-store NOI contracted from the prior quarter primarily due to seasonal increases in power costs, although rent and storage revenue per economic pallet increased both sequentially and year-over-year [22][23] Business Line Data and Key Metrics Changes - Approximately 30% of capacity and revenue comes from production-attached facilities, which are viewed as valuable assets for future expansion [10] - Four distribution centers account for about 50% of capacity and 40% of revenue, facing pricing competition due to excess capacity [12] - Retail distribution centers represent about 10% of capacity and 20% of revenues, with growth expected as the company expands capabilities overseas [14] Market Data and Key Metrics Changes - The Asia-Pacific region's total warehouse NOI increased by approximately 16% year-to-date, with economic occupancy well over 90% [18] - The macro environment remains challenging, with customer commentary indicating constrained demand, particularly among lower-income consumers [19] - The company anticipates that excess capacity will take a couple of years to be fully absorbed, with pricing gains expected to moderate in the fourth quarter [26][54] Company Strategy and Development Direction - The company aims to grow market share in the fast-turning retail sector and expand its quick service restaurant business into new geographies [6] - A focus on maintaining fixed-commitment contracts is emphasized, as they provide stable cash flows and long-term customer relationships [8][23] - The company is actively managing its real estate portfolio, exiting low-occupancy facilities while evaluating triple-net lease arrangements to drive occupancy levels [20][24] Management's Comments on Operating Environment and Future Outlook - Management believes that current headwinds are largely transitory, with expectations for pricing and occupancy pressures in 2026 [19][25] - The company is confident in the long-term trajectory of the cold storage industry, citing unique value propositions and mission-critical infrastructure [21][27] - Management is focused on identifying new sales opportunities and expanding into potential new sectors, including both food and non-food categories [20][54] Other Important Information - The company has a development pipeline of approximately $1 billion in attractive opportunities, balancing capital allocation with maintaining dividends and an investment-grade profile [24][62] - The company is trading at a significant discount to intrinsic value, with a historically high cap rate of around 10% [29][30] Q&A Session Summary Question: How should we think about throughput over the next 12 months? - Management indicated that throughput is expected to remain challenged due to lower demand, particularly from lower and middle-income consumers, with muted seasonal demand anticipated [32][33] Question: What are you doing to control costs in the business? - Management highlighted effective cost control measures, including matching direct labor to throughput, which has helped maintain handling margins above 12% [35][37] Question: Should we expect more fixed commitment contracts to be up for renewal in the beginning of the year? - Management clarified that contract renewals are spread throughout the year based on when they are signed, rather than being concentrated in specific quarters [41] Question: What happens to low-occupancy facilities from a P&L perspective? - Management explained that costs associated with low-occupancy facilities are generally minimal and may be capitalized once removed from active status, with customers often moved to owned infrastructure [44] Question: How do you see the new competition in the industry? - Management noted that many new market entrants are struggling with unsustainable business models, which could lead to accelerated exits from the market [50][52]

Company Overview - Americold is a global leader in the cold storage industry, operating an integrated network of strategically located warehouses[6, 79] - The company possesses significant scale with a global footprint, including 1,232 million cubic feet of capacity in North America and 114 million cubic feet in Europe[10] - Americold has approximately 13,000 associates and serves around 3,000 customers[10] Financial Performance - The company's LTM PF Core EBITDA is $615 million[12] - Adjusted FFO has grown by 34%, from $299 million in 2021 to $406 million in LTM Q3 2025[14] - Total Segment Contribution NOI has grown by 40%, from $630 million in 2021 to $834 million in LTM Q3 2025[14] Strategic Initiatives - Americold focuses on designing solutions that fit customer needs, supported by an in-house design engineering team[21] - The company leverages strategic partnerships with CPKC and DP World to enhance its service offerings and expand its network[45] - Americold is implementing Project Orion to standardize processes, reduce manual work, and improve analytics[50] Market Position and Growth - Americold holds 18% of the North American cold storage market and 6% of the global market[56] - The company is transitioning from on-demand contracts to fixed storage committed contracts, which now account for 60% of total warehouse rent and storage revenues[63] - Americold is committed to sustainability initiatives, including reducing Scope 1 and 2 emissions by 9.48% from 2021, with a goal of 30% in 2030[75]