Americold Realty Trust, Inc. · NYSE:COLD
Americold Realty Trust — Investor Presentation (September 2021)
31 slides from Americold Realty Trust's investor presentation, Sep 21, 2021
Slide 1: Investor Presentation Fall 2021
INVESTOR PRESENTATION Fall 2021
Slide 2: Forward-looking statements
This presentation contains statements about future events and expectations that constitute forward-looking statements. Forward-looking statements are based on our beliefs, assumptions and expectations of our future financial and operating performance and growth plans, taking into account the informa
Slide 3: Key Investment Highlights
Key Investment Highlights Substantial Internal and External Growth Opportunities Expected to Drive Attractive Risk-Adjusted Returns Over Time Experienced Management Team, Alignment of Interest and Best-In-Class Corporate Governance Investment Grade, Flexible Balance Sheet Positioned for Growth Infra
Slide 4: Company Snapshot
94% 2% 4% Warehouse Third-Party Managed Transportation 77% 13% 10% Warehouse Third-Party Managed Transportation Company Snapshot Note: Figures as of June 30, 2021, unless otherwise indicated. (1) Includes 15 ground leased assets (2) 2020 IARW North American Top 25 List (June 2020), per GCCA website.
Slide 5: Current Market Conditions in the Global Food Supply Chain
Inflation is increasing in the Global Food Supply Chain primary driven by the unprecedented disruption in the labor markets For Americold’s customers, this includes increases in input costs, raw materials, feed, labor, transportation, freight, and packaging materials Americold expects headwind
Slide 6: Current Production Constraints in Context
0 % 20 % 40 % 60 % 80 % 100 % 120 % Current Production Constraints in Context Cold storage commodity stock levels have consistently snapped back after any period of disruption USDA Cold Storage Warehouse Commodity Stock Levels – End of Quarter Stock as a % of Prior Year (1) (1) USDA; Excludes data f
Slide 7: Largest Fully Integrated Network of Temperature-Controlled Warehouses
Largest Fully Integrated Network of Temperature-Controlled Warehouses Food Producers Americold Realty Trust Food Distribution + Retailers Tradewater Distribution Center Atlanta, GA An indispensable component of food infrastructure from “farm to fork" 5 Production Advantaged Warehouse Farm Food Produ
Slide 8: Integrated Operations Overview
Transportation Warehouse Third-Party Managed Warehouse NOI Third-Party Managed Transportation Integrated Operations Overview (1) LTM figures as of June 30, 2021 and excludes the quarry business segment Th ir d -P ar ty M an ag ed W ar eh o u se (S to ra ge a n d H an d lin g) Mission-critical, tem
Slide 9: Strategically Located, Mission-Critical Temperature-Controlled Warehouses
# of Facilities 200 27 16 3 Square Feet (mm) 41.5 3.8 1.9 0.4 Cubic Feet (mm) 1,235.8 120.7 70.9 17.3 Strategically Located, “Mission-Critical” Temperature-Controlled Warehouses Note: Americold portfolio figures as of June 30, 2021. Figures do not include Americold’s Brazilian JV investments in Supe
Slide 10: A Global Market Leader in Temperature-Controlled Warehousing
A Global Market Leader in Temperature-Controlled Warehousing Note: Americold portfolio figures provided by the Company as of June 30, 2021. Figures may not sum due to rounding (1) 2020 IARW North American Top 25 List (June 2020), per GCCA website. U.S. only. Total capacity from 2020 GCCA Global Cold
Slide 11: Highly Diversified Business Model Produces Stable Cash Flows
18% 14% 14% 11% 8% 8% 5% 5% 5% 4% 4% 2% 2% Retail Poultry Frozen Produce Packaged Foods Dairy Other Potatoes Fresh Produce Pork Bakery Beef Seafood Distributors 77% 2% 9% 12% 1% United States Canada Europe Asia-Pacific South America 44% 30% 25% 1% Distribution Production Advantaged Public Warehouse
Slide 12: Long Standing Relationships with Top Customers
Long Standing Relationships with Top 25 Customers (1) Not all customers shown are in COLD’s top 25 largest customers in the warehouse segment (2) Represents long-term issuer ratings as of 2Q 2021 (3) Based on LTM warehouse revenues as of June 30, 2021. Amount includes two months of warehouse revenue
Slide 13: Network Average Economic & Physical Occupancy Trend
78% 76% 75% 76% 70% 76% 74% 73% 71% 69% 77% 77% 75% 70% 82% 81% 80% 72% 78% 77% 76% 72% 80% 79% 81% 77% 77% 77% 78% 75% 81% 79% 77% 84% 83% 79% 80% 80% 79% '17 '18 '19 '20 '21 '17 18 '19 '20 '21 '17 '18 '19 20 '17 '18 '19 '20 17 '18 '19 '20 Network Average Economic & Physical Occupancy Trend Typic
Slide 14: Growing Committed Revenue in Warehouse Portfolio
45% 45% 46% 45% 45% 47% 46% 39% 41% 55% 55% 54% 55% 55% 53% 54% 61% 59% $1.43bn $1.44bn $1.47bn $1.51bn $1.52bn $1.54bn $1.64bn $2.00bn $2.02bn 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 ⁽⁴⁾ 38% 40% 41% 40% 41% 42% 41% 36% 39% 62% 60% 59% 60% 59% 58% 59% 64% 61% $0.61bn $0.61bn $0.62bn $0.64bn $0.
Slide 15: Warehouse Financial Summary
$303 $324 $338 $387 $438 $478 $11 $24 $37 $61 $82 $86 $314 $348 $375 $448 $520 $564 2016A 2017A 2018A 2019A 2020A LTM 6/30/21 Rent & Storage Warehouse Services $477 $502 $515 $583 $666 $758 $604 $644 $662 $795 $883 $1,027 $1,081 $1,146 $1,177 $1,377 $1,549 $1,785 2016A 2017A 2018A 2019A 2020A LTM 6/
Slide 16: Substantially All Warehouse NOI Driven by Rental & Storage Revenue
Substantially All Warehouse NOI Driven by Rental & Storage Revenue Note: Based on LTM warehouse segment as of June 30, 2021. Future results may vary. Figures may not sum due to rounding (1) Material Handling Equipment (2) OS&D and D&D refer to Over Short & Damaged and Detentioned & Demurrage, respec
Slide 17: Positioned for Multiple Avenues of Growth
Positioned for Multiple Avenues of Growth Global warehouse network, operating systems, scalable information technology platform and economies of scale provide a significant advantage over competitors with respect to organic and external growth opportunities Signifies COLD has and continues to capi
Slide 18: Organic Growth Initiatives Have Driven Same Store Growth
68% 27% 4% 162 65 10 237 Organic Growth Initiatives Have Driven Same Store Growth TOTAL COLD WAREHOUSE FACILITIES Total SS Warehouse SS Rent & Storage SS Warehouse Services Legacy COLD Same Store Acquired Non-Same Store Legacy COLD Non-Same StoreNon-Same Store Same Store Note: Figures as of June 30,
Slide 19: Historic Same Store Seasonality Trend – Pre COVID-19
Historic Same Store Seasonality Trend – Pre COVID-19 Quarterly Same Store Revenue (% of Annual) Quarterly Same Store NOI (% of Annual) 24% 24% 25% 26% 24% 24% 25% 26% 25% 24% 25% 26% Q1 Q2 Q3 Q4 2018 Revenue 2019 Revenue 2020 Revenue 24% 24% 25% 27% 23% 25% 24% 28% 24% 23% 25% 28% Q1 Q2 Q3 Q4 2018 N
Slide 20: Growth Strategy – Expansion and Development
Growth Strategy – Expansion and Development (1) As of June 30, 2021; no assurance can be given that the actual cost or completion dates of any expansions or developments will not exceed our estimate (2) Reflects management’s estimate of cost of completion as of June 30, 2021 (3) These future pipelin
Slide 21: Acquisition of Bowman Stores
Acquisition of Bowman Stores The acquisition of Bowman Stores strengthens Americold’s presence in the United Kingdom In May 2021, COLD completed the acquisition of Bowman Stores for ~£74mm at an in-place net entry NOI yield of ~6.8% Bowman Stores operates a single campus located in Spalding, Eng
Slide 22: Acquisition of Agro Merchants Group
Acquisition of Agro Merchants Group The acquisition of Agro provides Americold with a strategic presence throughout Europe and complementary operations in other global geographies In December 2020, COLD completed the acquisition of Agro Merchants Group for ~$1.7bn at an in-place net entry NOI yiel
Slide 23: Russellville, AR Expansion for Conagra Brands
Russellville, AR Expansion for Conagra Brands The Russellville highly automated expansion is an opportunity to provide mission critical, long-term infrastructure for a top tier strategic customer COLD is expanding its Russellville, Arkansas facility for a total of ~$84mm in a dedicated build for C
Slide 24: Flexible Balance Sheet Positioned for Growth
$415 $474 $139 $350 $400 $200 $202 $125 $861 $273 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2013 Mortgage Loans Undrawn Revolver Unsecured Term Loan A-1 Unsecured Term Loan A-2 (CAD Denominated) Series A 4.68% Unsecured Notes Series B 4.86% Unsecured Notes Series C 4.10% Unsec
Slide 25: Strategic Investment Approach to Maintain a High-Quality Portfolio
Strategic Investment Approach to Maintain a High-Quality Portfolio Note: Dollars in millions. Figures may not sum due to rounding (1) Recurring capital expenditures are incurred to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and
Slide 26: Commitment to Environmental, Social and Governance Initiatives
Commitment to energy excellence and efficiency Recognized under the Global Cold Chain Alliance’s (GCCA) new Energy Excellence Recognition Program with Gold and Silver certifications at 161 facilities Completed LED lighting conversions at 109 facilities since 2011 Noteworthy fast door implement
Slide 27: Environmental: 2020 by the Numbers
Commitment to Environmental, Social and Governance Initiatives 25 Certified by the GCCA Energy Excellence Recognition Program: 29 sites newly certified in 2020 161 TOTAL SITES Reduced versus 2019 same store(1) OVER 15M kWh Shed by 44 sites participating in demand response programs 25.4 MEGAWATT HOUR
Slide 28: Conclusion
Conclusion 26 Substantial Internal and External Growth Opportunities Expected to Drive Attractive Risk-Adjusted Returns Over Time Experienced Management Team, Alignment of Interest and Best-In-Class Corporate Governance Investment Grade, Flexible Balance Sheet Positioned for Growth Infrastructure Su
Slide 29: Appendix
Appendix
Slide 30: Current Labor Shortage and Inflation in the Food Supply Chain
“Kroger CEO says finding talent is grocery operator’s greatest challenge, as it teams up with Instacart” CNBC, September 14, 2021 “Amazon Offers To Pay College Tuition And Increases Minimum Wages To $18” Forbes, September 14, 2021 “Walmart to Raise Minimum Wage to $12 an hour” WSJ, September 2, 2021
Slide 31: Current Labor Shortage and Inflation in the Food Supply Chain: Customer Impact
Current Labor Shortage and Inflation in the Food Supply Chain Impact on Our Food Manufacturing Customers Downstream Impact on Foodservice Companies “We are managing through industrywide operational challenges, including labor availability, upstream and downstream supply chain disruptions, and high
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