
Financial Data and Key Metrics Changes - Americold reported an AFFO per share of $0.29, a 7.4% increase compared to the prior year, driven by a 9.6% growth in same-store revenue and a 14.4% increase in NOI, both on a constant currency basis [14][17][32] - The same-store NOI margin improved to 29.4%, an increase of 125 basis points year-over-year, primarily due to pricing initiatives [10][11][14] - Economic occupancy increased by 437 basis points compared to Q3 2021, although throughput volumes declined by 1.3% [14][32] Business Line Data and Key Metrics Changes - The warehouse business saw rent and storage revenue per economic occupied pallet increase by 8.1% and service revenue per throughput pallet increase by 7.7% on a constant currency basis [9][21] - The company successfully exited a management agreement with a national retailer, which contributed approximately 1% of total NOI, allowing a focus on core warehouse operations [15][16][17] Market Data and Key Metrics Changes - The company experienced inflationary pressures primarily in power costs, property taxes, and warehouse supplies, with power costs expected to remain a significant concern in international markets [10][18] - The company reported a stable term rate of approximately 3.2% for total warehouse revenues, consistent with historical rates [24] Company Strategy and Development Direction - Americold is focused on repricing its warehouse business to offset inflationary pressures and protect margin dollars, with targeted pricing and power surcharge initiatives in place [9][10][21] - The company aims to achieve a perm-to-temp ratio of 80/20 and reduce turnover rates to improve operational efficiency [12][42] - Recent development projects in Dublin, Ireland, and Barcelona, Spain, were completed, with expectations for stabilization and growth in these facilities [13][25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about operational improvements despite macroeconomic challenges, including high inflation and a difficult labor market [18][42] - The company is increasing its full-year 2022 AFFO per share guidance to a range of $1.08 to $1.12, reflecting confidence in ongoing pricing initiatives and occupancy recovery [17][32] Other Important Information - Americold received a 2022 GRESB score of 75, an improvement of 12 points from the previous year, indicating progress in its ESG initiatives [19] - The company closed on a $2 billion sustainability-linked senior unsecured credit facility, enhancing liquidity and reducing floating rate debt exposure [30][31] Q&A Session Summary Question: How should throughput volumes be considered in light of a potential economic slowdown? - Management indicated that throughput volumes are expected to remain challenged, citing smaller basket sizes and reduced store traffic as contributing factors [44] Question: What initiatives are being implemented to retain workers amid elevated turnover? - Management noted progress in reducing open positions and implementing various recruitment and retention strategies, although challenges remain in retaining staff [45] Question: How do current operating results compare to pre-COVID levels? - Economic occupancy is approaching pre-COVID levels, with management noting that while occupancy has improved, efficiency issues persist due to a high percentage of new associates [47][50] Question: What is the impact of the Kroger-Albertsons merger on Americold's business? - Management stated that the merger is not expected to have a significant impact, as Americold does not have substantial business with Kroger and only a minor relationship with Albertsons [60][61] Question: How is the company managing utility cost increases in Europe compared to the U.S.? - Management confirmed that pricing surcharges can be applied in both regions, but noted that power price increases in Europe have been more rapid and substantial [56] Question: What is the current state of the cold storage supply landscape in the U.S.? - Management indicated no noticeable changes in the supply landscape that would impact Americold's business, with occupancy levels rising [63][64] Question: How is automation being approached in light of labor challenges? - Management acknowledged a slowdown in large-scale automation projects due to rising costs but mentioned ongoing efforts to semi-automate conventional facilities [67][68] Question: What guidance can be provided regarding the development pipeline for 2023? - Full-year guidance will be provided in February, but management indicated that several development projects are planned to contribute cash flow in the coming year [69][70]