Financial Data and Key Metrics Changes - Total revenue increased by 3% year-over-year, while adjusted EBITDA rose by 2% to $341 million, marking a quarterly record for the company [5] - Total AFFO grew by 6% year-over-year, with AFFO per share at $0.85, reflecting a 6% decline year-over-year [5] - Same store physical occupancy improved by 50 basis points sequentially to 75%, although same store NOI declined by 3.6% year-over-year [5][6] Business Segment Data and Key Metrics Changes - Global warehousing segment revenue grew by 4%, with total NOI slightly increasing to $384 million, while same warehouse NOI declined by 3.6% [13] - Global integrated solutions segment saw flat revenue, but NOI grew by 16% to $65 million, with an NOI margin increase of 250 basis points to 17.9% [16] Market Data and Key Metrics Changes - The U.S. market is experiencing a 20% decline in import-export container volumes, impacting revenue and occupancy [26][27] - Despite excess supply, the company maintains a total estimated average physical occupancy of 75% for 2025, down only 3 percentage points from 2021 [10] Company Strategy and Development Direction - The company is focused on driving competitive differentiation through customer success, leveraging network effects, and enhancing warehouse productivity [20] - The proprietary warehouse execution system, LinOS, has been deployed in seven sites, showing double-digit productivity improvements [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledges near-term headwinds due to tariff uncertainties and lower U.S. new business expectations, but remains optimistic about long-term growth as the food industry normalizes [7][23] - The company expects a lower fourth quarter than previously anticipated, moving to the lower end of full-year guidance for both EBITDA and AFFO per share [19] Other Important Information - The company ended the quarter with total net debt of $7.55 billion and total liquidity of $1.3 billion [10] - Management is actively managing interest rate exposure and anticipates a total interest expense of $340 million to $360 million in 2026, approximately $80 million higher than the current year [18] Q&A Session Summary Question: Discussion on expected lower U.S. new business in Q4 - Management noted that tariff uncertainty is impacting import-export volumes, particularly in the West U.S. business unit, leading to a forecast of lower new business in Q4 [26][27] Question: Update on pricing strategy during the quarter - Management confirmed that there was no change to the pricing strategy, with a net price increase between 1% and 2% expected for the year [32] Question: Expectations on physical occupancy and excess capacity - Management indicated that new supply is trickling in, with expectations that it will remain low, and they are optimistic about key markets absorbing new capacity [35][36] Question: Concerns about the impact of SNAP benefits lapse - Management stated that even if SNAP benefits were eliminated, the impact on total food consumption would be minimal, around 1% [76][77] Question: Insights on international performance versus U.S. - Management highlighted that international markets are performing better due to lower competitive pressure and better occupancy levels compared to the U.S. [54][55] Question: Acquisition strategy and market opportunities - Management remains disciplined in capital deployment and is monitoring market opportunities, but is not interested in issuing equity at undervalued levels [57][58] Question: Update on fresh and frozen demand trends - Management referenced third-party data indicating continual growth in fresh and frozen food categories, despite elevated food inflation [61][62]

Core Insights - SciSafe's expansion of its biorepository network in East Brunswick highlights New Jersey's emerging role as a significant player in the cold storage sector, particularly for life sciences [1] Industry Summary - The new facility adds five million cubic feet of capacity and hundreds of cryogenic and ultra-low freezers, addressing the rising demand for temperature-controlled storage driven by biopharma innovation and healthcare logistics [2] - The strategic location near I-95 and Newark Liberty International Airport enables same-day cold chain fulfillment, facilitating the rapid movement of sensitive biologics and pharmaceuticals [3] - The facility's GMP-compliant infrastructure and advanced monitoring systems are designed to support advanced therapies, including cell and gene treatments, which require precise temperature control [4] Market Trends - New Jersey is becoming a competitive market for cold storage development, fueled by scientific expertise, logistics advantages, and ongoing industrial investment [5] - Nationally, vacancy rates for cold storage facilities are low, with many new facilities pre-leased before construction begins, indicating strong demand [6] - New Jersey's advantages include a large population, a robust biopharma base, and proximity to the Port of New York and New Jersey, enhancing its logistics capabilities [7]

Core Insights - Americold's stock price has decreased by 65% over the last five years, which is atypical for a stable and necessary business like cold storage [1][7] - The significant price drop is attributed to market misinterpretation of cyclical trends, leading to overvaluation during peak inventory periods and subsequent undervaluation as earnings decline [2][6][10] Company Analysis - Americold is a global leader in cold storage, and despite the stock price decline, long-term business trends remain positive with analyst estimates indicating a rebound in earnings by 2027 [7][10] - The company was overvalued five years ago, and the current low stock price reflects a market correction following an oversupply situation that was not sustainable [8][12] - The market's tendency to extrapolate current trends has led to Americold trading at low multiples, despite the cyclical nature of its business [10][33] Financial Performance - The company has faced challenges with earnings guidance, cutting forecasts for revenue growth and same-store revenue [17][18] - Service revenue remains strong, indicating continued customer demand, while storage revenue has declined due to lower inventory levels [21][19] - Current margins are stable, but higher electricity costs have impacted profitability; however, cost-cutting measures have helped maintain margins [25][22] Valuation Metrics - Americold's stock is currently trading at 55% of its net asset value and at a forward consensus AFFO multiple of 9.5X, which is lower than industry peers [26][27][32] - Adjusted AFFO shows a true earnings figure of approximately $0.87 per share, leading to a 14.6X multiple on true AFFO, which is still cheaper than most competitors [31][33] - Analysts suggest that the stock is undervalued at 14.5X trough AFFO, with potential for recovery as fundamentals improve [33][34]

Core Viewpoint - A class action lawsuit has been filed against Lineage, Inc. for alleged material misrepresentations in its IPO registration statement, which misled investors about the company's business and financial health [7]. Allegation Details - The lawsuit claims that the Registration Statement contained false information regarding Lineage's business performance and industry trends at the time of the IPO, particularly regarding the impact of the COVID-19 pandemic on cold storage demand [7]. - It is alleged that instead of experiencing growth, Lineage was facing a downturn as customers reduced inventory levels and the company struggled with occupancy rates and pricing power due to unsustainable price increases [7]. Stock Performance - Since the IPO, Lineage's stock price has dropped to approximately $40 per share, which is about half of the IPO price [7].

Company Overview - Americold Realty Trust (COLD) is currently trading at approximately $12.83, with a forward P/E ratio of 27.89 [1] - The company is viewed as a compelling investment opportunity due to its historic discount, trading at around 5.8x net debt to EBITDA and over a 50% discount to the analyst consensus NAV of approximately $28 [2] Market Dynamics - The cold storage market is experiencing growth driven by increasing demand for frozen food, pharmaceuticals, and e-commerce [3] - Americold and Lineage control about 54% of the North American market share, indicating limited new supply in the face of rising demand [3] Financial Performance - Americold has shown growth in Funds From Operations (FFO), with analyst projections indicating a 7-10% growth in Net Operating Income (NOI) for the next year [3] - The implied cap rate for Americold is in the double digits, significantly above historical private market sales trends in the cold storage sector [2] Investment Thesis - The current risk-reward profile for investing in Americold appears favorable due to its historically low share price, adequate dividend coverage, and substantial NAV gap compared to private market trends [4] - The company is considered a top position in Nugget Capital Partners' portfolio, highlighting its strong market position and resilience in the cold storage industry [4][5]

Group 1 - Lineage is the largest cold storage operator globally, owning and operating temperature-controlled warehouses that are essential for supply chains [1] - Lineage's closest competitor is Americold, indicating a competitive landscape in the cold storage industry [1] Group 2 - The article highlights the importance of cold storage facilities in maintaining the integrity of temperature-sensitive products [1] - The author has a background in both equity and real estate markets, emphasizing a focus on identifying long-term investment opportunities [1]

Core Viewpoint - Investors in Lineage, Inc. have the opportunity to lead a securities fraud class action lawsuit due to undisclosed adverse conditions affecting the company's performance prior to its IPO [1][2]. Summary by Relevant Sections Lawsuit Details - The lawsuit alleges that Lineage failed to disclose significant weakening in customer demand, which was influenced by increased cold-storage supply and a shift in customer inventory management post-COVID-19 [2]. - It is claimed that Lineage implemented unsustainable price increases before the IPO, which could not be maintained due to the declining demand environment [2]. - The company reportedly could not counteract negative trends through operational efficiencies or competitive advantages, leading to stagnant or falling revenue, occupancy rates, and rent prices, contrary to the positive representations made in the registration statement [2]. Investor Participation - Investors who suffered losses related to Lineage are encouraged to participate in the ongoing lawsuit, with a lead plaintiff deadline set for September 30, 2025 [2][3]. - Interested parties can contact The Law Offices of Frank R. Cruz for more information on how to participate [3][4].

Core Viewpoint - A class action lawsuit has been filed against Lineage, Inc. for alleged material misrepresentations in its IPO registration statement, which misled investors about the company's business and financial health [6]. Allegation Details - The lawsuit claims that the Registration Statement contained false information regarding Lineage's business performance and industry trends at the time of the IPO, particularly regarding the impact of the COVID-19 pandemic on cold storage demand [6]. - It is alleged that instead of experiencing growth, Lineage was facing a downturn as customers reduced inventory levels and the company struggled with occupancy rates and pricing power due to unsustainable price increases [6]. Stock Performance - Since the IPO, Lineage's stock price has dropped to approximately $40 per share, which is about half of the IPO price [6]. Next Steps - Investors who purchased Lineage shares and suffered losses are encouraged to contact the law firm for more information and to discuss their legal rights [4]. - The deadline for investors to apply to be appointed as lead plaintiff in the lawsuit is September 30, 2025 [6]. About the Law Firm - Bragar Eagel & Squire, P.C. is a law firm that specializes in representing individual and institutional investors in complex litigation, including securities and derivative cases [5].

Core Insights - The article discusses the author's extensive experience in investment banking, particularly in equity and real estate markets, highlighting a focus on identifying long-only investment opportunities that provide safe and growing dividends [1] - The author has successfully sourced over $100 million in commercial real estate investments while serving as an Analyst and Acquisitions Director at a private equity real estate investment firm [1] - The author's educational background includes a degree in Economics and a minor in Applied Mathematics from Boise State University, which supports their analytical capabilities in market research [1] Company Insights - The author holds a beneficial long position in the shares of COLD, indicating a positive outlook on the company's stock performance [1] - The article emphasizes the importance of correlation across asset classes and sectors, suggesting a strategic approach to investment that could benefit companies in various industries [1] Industry Insights - The focus on safe and growing dividends reflects a broader trend in the investment industry where investors seek stable returns amidst market volatility [1] - The author's experience in structured credit products and real estate investment positions them to provide valuable insights into market dynamics and investment strategies [1]

Core Viewpoint - A class action lawsuit has been filed against Lineage, Inc. for alleged material misrepresentations in its IPO registration statement, which misled investors about the company's business and financial health [8]. Allegation Details - The lawsuit claims that the Registration Statement contained false information regarding Lineage's business performance and industry trends at the time of the IPO, particularly regarding the impact of the COVID-19 pandemic on cold storage demand [8]. - It is alleged that instead of experiencing growth, Lineage was facing a downturn as customers reduced inventory levels and the company struggled with occupancy rates and pricing power due to unsustainable price increases [8]. Stock Performance - Since the IPO, Lineage's stock price has dropped to approximately $40 per share, which is about half of the IPO price [8].