Americold Realty Trust(US:COLD)2022-02-25 05:35Financial Data and Key Metrics Changes - For the full year 2021, total revenues were $2.7 billion, with global warehouse segment revenues at $2.1 billion, reflecting increases of 36.6% and 34.6% respectively [32] - The company reported total NOI of $630 million and global warehouse segment NOI of $586 million, marking increases of 14.2% and 12.7% respectively [32] - AFFO per share was $1.15, aligning with guidance [9][32] - Core EBITDA for Q4 2021 was $124 million, a 5.6% year-over-year increase, while the core EBITDA margin decreased by 511 basis points to 17.3% [25] Business Line Data and Key Metrics Changes - Global warehouse segment revenue for Q4 2021 was $554 million, a 36% increase year-over-year, driven by acquisitions and rate escalations [26] - Same store global warehouse segment revenue for Q4 2021 was $379 million, up 2.5% year-over-year [28] - Same store global warehouse NOI decreased by 8.2% year-over-year, reflecting ongoing disruptions in food production and labor challenges [28] Market Data and Key Metrics Changes - Economic and physical occupancies for the 2021 same store pool averaged approximately 77% and 68.4% respectively, significantly below pre-COVID levels [12][13] - The overall cold storage industry saw a decline in total holdings of 8% to 10% throughout 2021 compared to 2019 levels [13] - The company noted that fill rates have dropped to the 70% range, a significant decrease from the pre-COVID standard of 98.5% [15][16] Company Strategy and Development Direction - The company aims to enhance labor management, focusing on recruitment and retention to reduce dependence on temporary labor [44] - There is a commitment to improving customer service levels to exceed pre-COVID standards [44] - The company plans to maintain its development projects on track despite macroeconomic challenges [44] Management's Comments on Operating Environment and Future Outlook - Management highlighted that COVID-related supply chain and labor disruptions continue to impact the global food supply chain, affecting occupancy and throughput [37] - The company expects AFFO per share in the range of $1 to $1.10 for 2022, with guidance reflecting ongoing challenges in the labor market and inflation [37] - Management expressed confidence in the recovery of inventory levels once labor challenges are resolved, although the timing remains uncertain [64] Other Important Information - The company received recognition from Newsweek for its ESG efforts, being included in the list of America's most responsible companies for 2022 [17] - The company completed $766 million in global acquisitions and announced $168 million in development starts for 2021 [32][34] - Total debt outstanding was $3.1 billion, with total liquidity of $803 million at quarter end [36] Q&A Session Summary Question: What led to the change of heart regarding the CEO position? - The CEO mentioned that the decision to accept the permanent position was influenced by the board's support and his commitment to the company [43] Question: How does the company plan to address labor cost increases? - Management indicated that the full impact of pricing increases will be felt in Q2 2022, as they continue to engage with customers [47] Question: What factors contributed to the deceleration in service revenue growth? - The CEO noted that lower throughput volumes and a shift in business mix contributed to the deceleration in service revenue growth [49] Question: How is the company managing customer commitments amid recent challenges? - Management stated that customers recognize the need for space as production levels recover, and fixed commitments have continued to grow [51] Question: What is the outlook for the impact of the Russia conflict on food production? - The CEO acknowledged that the conflict could impact European business but emphasized that supply chain challenges are global in nature [68][70]