Americold Realty Trust(COLD)2025-02-20 16:29Financial Data and Key Metrics Changes - In Q4 2024, same-store NOI was approximately 106 million, or 1.47 per share, reflecting a 40% increase over the past two years [20] - The company achieved a 16% increase in AFFO per share compared to 2023 [21] Business Line Data and Key Metrics Changes - Same-store rent and storage revenue per economically occupied pallet increased by approximately 3% year-over-year, while same-store services revenue for throughput pallets increased by approximately 6% [14][32] - Same-store warehouse services margin finished at 13%, up almost 7 percentage points from the previous year [14] - The company generated an incremental 100 million commitment made two years ago [13] Market Data and Key Metrics Changes - Economic occupancy is expected to remain generally flat in 2025, with a potential increase or decrease of 100 basis points compared to 2024 [26] - Throughput volumes are anticipated to increase by 100 to 200 basis points from 2024 [26] - The company expects a normalized year of general rate increases and renewals in pricing [26] Company Strategy and Development Direction - The company plans to focus on strategic partnerships, low-risk expansions, and customer-dedicated developments in 2025 [22] - A new import-export hub is planned in Canada for approximately 34 million to support a major grocery retailer [24] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects for 2025, citing successful partnerships and capital deployment [59] - The company anticipates stabilization in the market and a return to traditional seasonal trends, with expectations for occupancy gains in the latter half of the year [25][26] - Management noted that the gap between economic and physical occupancy is expected to widen as fixed commitments increase [67] Other Important Information - The company has maintained a low associate turnover rate of 32%, which is approximately 10% better than historical levels [12] - Americold's partnership with Feed the Children has delivered nearly 2 million pounds of food to underserved communities over the past decade [28] Q&A Session Summary Question: Occupancy target and economic vs. physical occupancy - Management expects flat economic occupancy for the year, with seasonal trends indicating lower occupancy in the first half and higher in the second half [66][67] Question: Service margin expectations - Management indicated that service margins are expected to exceed 12%, with potential for further improvement depending on business mix and throughput volume [71][72] Question: Customer feedback on normalization - Management noted that inventory levels are low, and they expect throughput to increase, indicating a stabilization in the market [76][77] Question: Factors for return to normal seasonality - Management highlighted the importance of sales initiatives and customer inventory levels in driving occupancy in the second half of the year [89][90] Question: New business pipeline details - The probability-weighted new business pipeline is estimated at over $200 million, with a focus on long-term deals and market share gains [95][96]