Americold Realty Trust, Inc. · NYSE:COLD
Americold Realty Trust — REITweek 2018
30 slides from Americold Realty Trust's conference presentation, Jun 6, 2018
Slide 1: REITweek Investor Presentation June 2018
DRAFT REITweek Investor Presentation June 2018 – New York, NY
Slide 2: Disclaimer
Disclaimer 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
Slide 3: Key Investment Highlights
Key Investment Highlights 1 Important First Mover Advantage as the Only Publicly Traded REIT Focused on Temperature-Controlled Warehouses 2 Global Market Leader with Integrated Network of Strategically-Located, High-Quality, “Mission-Critical” Warehouses 3 Infrastructure Supported by Best-in-Class I
Slide 4: Company Snapshot
Company Snapshot Largest global and U.S. REIT focused on the ownership, operation, development and acquisition of temperature-controlled warehouses Portfolio Overview Financial Overview ($ in millions) Warehouses 158 2016A 2017A LTM 3/31/18 120 Owned (1), Revenue $1,490 $1,544 $1,562 Ownership Type
Slide 5: Temperature-Controlled Warehouses: An Attractive Asset Class
Temperature-Controlled Warehouses: An Attractive Asset Class Uniquely designed to maintain the temperature of frozen and refrigerated products in the cold chain and represent a growing, attractive niche of the industrial warehouse real estate sector Automated Storage Engine Room with & Retrieval Sys
Slide 6: Temperature-Controlled vs Dry Industrial Warehouses
Temperature-Controlled vs Dry Industrial Warehouses Temperature-controlled warehouses are mission-critical real estate that serve as a specialized, integral component of the temperature-controlled supply chain infrastructure Refrigeration Customized Racking Commoditized Non-Specialized VS (1) Charac
Slide 7: Largest Fully Integrated Network of Temperature-Controlled Warehouses
Largest Fully Integrated Network of Temperature-Controlled Warehouses An indispensable component of food infrastructure from “farm to fork" e-Commerce Fulfillment Delhi, LA LaPorte, TX Atlanta, GA Phoenix, AZ Fork Farm Production Public Distribution Retail Advantaged Warehouse Center Distribution Ce
Slide 8: Integrated Operations Overview
Integrated Operations Overview Real estate value is driven by the critical nature of the Company’s infrastructure, strategic locations and integrated, full-service strategy Overview Select Customers % of Contribution (1) . Mission-critical, temperature-controlled real estate infrastructure generates
Slide 9: Diverse Customer Needs Drive Multiple Avenues of Demand
Diverse Customer Needs Drive Multiple Avenues of Demand We own and develop multiple types of warehouses, which allows us to service all of our customers’ needs, thus capturing more of their storage and handling revenue Production Advantaged Public Warehouse Distribution Centers Facility Leased . Cus
Slide 10: Strategically Located, Mission-Critical Temperature-Controlled Warehouses
AKAK Strategically Located, “Mission-Critical” Temperature-Controlled Warehouses Strategic locations and extensive geographic presence provide an integrated warehouse network that is fundamental to customers’ ability to optimize their distribution networks BCBC ABAB SKSK MBMB PEPE WAWA NBNB ONON NSN
Slide 11: U.S. Portfolio Located in Key Logistics Corridors
U.S. Portfolio Located in Key Logistics Corridors Strategically located, “mission-critical” temperature-controlled warehouses serve the country’s population centers within a one day drive Map Key Population per Square Mile 250 or more 50–249.9 10–49.9 Less than 10 Facilities Key logistics corridor 5
Slide 12: Global Portfolio to Support an International Customer Base
Global Portfolio to Support an International Customer Base Australia People per sq km 101 or more Brisbane 10.1–100 1.1–10.0 0.1–1 Sydney Less than 0.1 Facilities Key logistics corridor Melbourne Perth Adelaide Source: Australian Bureau of Statistics June 2015 New Zealand Argentina People per sq km
Slide 13: Global Market Leader in Temperature-Controlled Warehousing
Global Market Leader in Temperature-Controlled Warehousing Position as the U.S. and global market leader allows for realization of economies of scale, reduced operating costs and lower overall cost of capital. Ideally positioned to compete for customers and external growth opportunities U.S. Market
Slide 14: Industry-Leading, Integrated IT & Operating Platforms
Industry-Leading, Integrated IT & Operating Platforms Proprietary IT system has revolutionized how COLD interfaces with customers, makes business decisions and manages warehouses Integrated IT Platform Americold Operating System Customer-Facing IT Systems – Proprietary system provides customers wi
Slide 15: Highly Diversified Business Model Produces Stable Cash Flows
Highly Diversified Business Model Produces Stable Cash Flows Diversification helps reduce revenue volatility associated with seasonality and changing commodity trends Commodity (1) Global Geographic Diversity (1) Global Warehouse U.S. Warehouse United States Central Dairy Fruits & Argentina Southeas
Slide 16: Long Standing Relationships with Top Customers
Long Standing Relationships with Top 25 Customers Scope and scale of network coupled with long-standing relationships position the Company to grow market share organically and through acquisitions Food Producers / CPG Companies Top 25 Customers Have been with Americold for an average of 33 years
Slide 17: Economic Occupancy Driving Improved Returns
Economic Occupancy Driving Improved Returns Implementation of standard underwriting procedures has contributed to consistent occupancy growth over the last three years Physical Occupancy Average Physical Occupancy . Optimal physical occupancy across temperature-controlled 1Q 2Q 3Q 4Q Annual warehous
Slide 18: Growing Committed Revenue in Warehouse Portfolio
Growing Committed Revenue in Warehouse Portfolio Significant improvement transitioning from as-utilized, on demand contracts to fixed storage committed contracts and leases Rent & Storage Warehouse Revenue . Fixed storage committed contracts and leases currently represent: Annualized Committed Rent
Slide 19: Substantially All Warehouse NOI Driven by Rental & Storage Revenue
Substantially All Warehouse NOI Driven by Rental & Storage Revenue + = Rent & Storage Warehouse Services Total Warehouse Commentary REIT: Rent & Storage $0.44 $0.56 $1.00 TRS: Warehouse Services Revenues Power ($0.06) -- ($0.06) Power and utilities Other Real Estate Related Costs: facility Facility
Slide 20: Warehouse Financial Summary
Warehouse Financial Summary Warehouse Revenue ($mm) Warehouse NOI ($mm) Actual $ CC $ Actual $ CC $ Rent and Storage Revenue CAGR: 2.8% 3.9% Rent and Storage NOI CAGR: 4.6% 5.8% Warehouse Services Revenue CAGR: 3.7% 5.0% Warehouse Services NOI CAGR: 31.9% 28.1% Total 2014A – 2017A CAGR: 3.6% 4.5% To
Slide 21: 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 Organic Growth Opportunities Development a
Slide 22: Organic Growth Initiatives Have Driven Same Store Growth
Organic Growth Initiatives Have Driven Same Store Growth Same store performance is the culmination of replacing legacy customer agreements with new contracts implementing Commercial Business Rules, active asset management and leveraging integrated network, scale and market position Same Store Rent &
Slide 23: Growth Strategy – Expansion, Development and Acquisitions
Growth Strategy – Expansion, Development and Acquisitions Completed 15.7mm Cu Ft $70mm 4 Completed Since 2014 44,000 Pallets Cost Expansion and Development Opportunities (1) Estimated Costs Return on Invested Capital (1) (2) Under 20.9mm Cu Ft ~$103.0mm Construction 86,000 Pallets 1 Expansion & 1 De
Slide 24: Growth Strategy – Recently Completed / Under Construction
Growth Strategy – Recently Completed / Under Construction ($ in millions) Opportunity Facility Cubic Pallet Cost of Expansion / Development Completion Facility Type Type Feet (mm) Positions ('000) Total Cost ROIC Date Phoenix, AZ Development Distribution 3.5 12 $18 18.0% Q1 2014 Leesport, PA Expansi
Slide 25: Flexible Balance Sheet Positioned for Growth
Flexible Balance Sheet Positioned for Growth Significant Liquidity: ~$610mm (1)(2) % of – $194mm of cash Debt 1% 1% 12% 22% 25% 39% Maturing – $450mm New Senior Secured Revolving Credit Facility (2) 2010 Mortgage Debt Minimal near term debt maturities 2013 Mortgage Debt Weighted average cost o
Slide 26: Strategic Investment Approach to Maintain a High-Quality Portfolio
Strategic Investment Approach to Maintain a High-Quality Portfolio Capital expenditures ensure that temperature-controlled warehouses meet the “mission-critical” role they serve in the cold chain As a % of Total Warehouse NOI before R&M Expense 2015A 2016A 2017A 14.0% 14.2% 13.1% 12.2% 12.4% 11.7% 1
Slide 27: Experienced Management Team Driving Accelerated Growth
Experienced Management Team Driving Accelerated Growth Years with Years of Management team averages over 25 years Americold Experience of experience in the: Real estate Fred Boehler, Chief Executive Officer, President and Trustee 5 29 Temperature-controlled warehouse Logistics Marc Smernoff, C
Slide 28: Shareholder-Friendly Corporate Governance
Shareholder-Friendly Corporate Governance Independent Trustees / Trustee Key Highlights George Alburger ─ Former CFO, Liberty Property Trust Majority independent trustees Bradley Gross ─ Partner, Goldman Sachs & Co. Committees comprised of independents James Heistand ─ President & CEO, Parkway P
Slide 29: Building Blocks of Net Asset Value
Building Blocks of Net Asset Value Our Business Segments Tangible Assets LTM Total NOI: $354mm Cash and Cash Warehouse and Equivalents $194mm Related Services Rent & Storage: $329mm + Warehouse Services: $25mm + Accounts Receivable $179mm + Third-Party Managed LTM Contribution: $14mm Restricted Cash
Slide 30: Strong Cash Flow from Growing Demand for Temperature Sensitive Products
Strong Cash Flow from Growing Demand for Temperature Sensitive Products Well-positioned to take advantage of favorable industry dynamics Population growth, global food shortages, urbanization and fresh, Continued Growth in Outsourcing (1) chilled and frozen food consumption drive demand for temper