Americold Announces First Quarter 2025 Results

About this update from Americold Realty Trust, Inc.

Delivered $0.34 AFFO per share Completed Houston Warehouse Acquisition Enabling a Significant New Retail Customer Win Increased Quarterly Dividend by 5% Updated 2025 Full-Year Outlook ATLANTA, GA, May 08, 2025 (GLOBE NEWSWIRE) -- Americold Realty Trust, Inc. (NYSE: COLD) (the “Company”), a global leader in temperature-controlled logistics, real estate, and value-added services focused on the ownership, operation, acquisition and development of temperature-controlled warehouses, today announced financial and operating results for the first quarter ended March 31, 2025. George Chappelle, Chief Executive Officer of Americold Realty Trust, stated, “We are pleased with our first quarter 2025 results, which included delivering AFFO of $0.34 per share in line with expectations. This performance was enabled by our successful efforts over the past three years to create a more stable and productive workforce, as well as the enhancements we have made to our technology and operating platforms. We believe these initiatives have created a more solid and resilient foundation that allows us to effectively navigate in the current operating environment and positions us well for the long term.” “We are continuing to make investments in our future and I’m particularly excited about the Houston acquisition which closed during the first quarter. The catalyst for this acquisition was a new fixed commitment contract with one of the world’s largest retailers, a significant win from our sales pipeline. The purchase of this facility allowed us to move inventory from an existing location into the newly acquired site, thereby opening space for this new customer and allowing for a more efficient allocation of inventory across both sites. Retail business is a key focus for us and customers continue to recognize Americold for our service and rigorous operational standards. This win further expands our industry-leading presence in the important retail segment of the market that requires the operational expertise that our platform provides.” “In response to current headwinds created by the current macro-economic environment, we are prudently adjusting our near-term outlook, while remaining confident in our long-term growth trajectory. We believe the fundamentals of the cold storage industry remain attractive, and during the first quarter we increased our dividend by 5% to reflect our confidence in Americold’s resiliency and strong cash flow generation. I want to thank our experienced and talented team for their strong execution as we continue to successfully navigate through these evolving market conditions.” First Quarter 2025 Highlights 2025 Outlook The table below includes the details of our annual guidance. The Company’s guidance is provided for informational purposes based on current plans and assumptions and is subject to change. The ranges for these metrics do not include the impact of acquisitions, dispositions, or capital markets activity beyond that which has been previously announced. Investor Webcast and Conference Call The Company will hold a webcast and conference call on Thursday, May 8, 2025 at 8:00 a.m. Eastern Time to discuss its first quarter 2025 results. A live webcast of the call will be available via the Investors section of Americold Realty Trust’s website at www.americold.com . To listen to the live webcast, please go to the site at least fifteen minutes prior to the scheduled start time in order to register, download and install any necessary audio software. Shortly after the call, a replay of the webcast will be available for 90 days on the Company’s website. The conference call can also be accessed by dialing 1-877-407-3982 or 1-201-493-6780. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID#13750775. The telephone replay will be available starting shortly after the call until May 22, 2025. The Company’s supplemental package will be available prior to the conference call in the Investors section of the Company’s website at http://ir.americold.com . During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends that have occurred after quarter-end. The Company’s responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously. First Quarter 2025 Total Company Financial Results Total revenues for the first quarter of 2025 were $629.0 million, a 5.4% decrease from $665.0 million in the same quarter of the prior year, primarily due to lower volumes in the warehouse segment and a decrease in transportation services revenue. Total NOI for the first quarter of 2025 was $205.8 million, a decrease of 2.4% (1.5% decrease on a constant currency basis) from the same quarter of the prior year. This decrease is primarily related to a decrease in transportation NOI which was primarily due to customer exits. For the first quarter of 2025, the Company reported a net loss of $16.5 million, or $0.06 loss per diluted share, compared to a net income of $9.8 million, or $0.03 income per diluted share, for the comparable quarter of the prior year. This was primarily driven by an increase in closed site related charges recognized within Acquisition, cyber incident, and other, net, increased Selling, general, and administrative expenses, and the factors driving the decrease in NOI mentioned above. The increase in Selling, general, and administrative is related to the go live of Project Orion in the second quarter of 2024. Core EBITDA was $147.6 million for the first quarter of 2025, compared to $155.8 million for the comparable quarter of the prior year. This decrease (5.3% on an actual basis and 4.6% on a constant currency basis) was primarily driven by the same factors driving the decrease in NOI and the increase in Selling, general, and administrative mentioned above. For the first quarter of 2025, Core FFO was $67.3 million, or $0.24 per diluted share, compared to $77.3 million, or $0.27 per diluted share, for the first quarter of 2024. For the first quarter of 2025, Adjusted FFO was $95.7 million, or $0.34 per diluted share, compared to $104.9 million, or $0.37 per diluted share, for the first quarter of 2024. Please see the Company’s supplemental financial information for the definitions and reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures. First Quarter 2025 Global Warehouse Segment Results The following tables present revenues, contribution (NOI), margins, and certain operating metrics for our global, same store, and non-same store warehouses for the three months ended March 31, 2025 and 2024. Warehouse Results For the first quarter of 2025, Global Warehouse segment revenues were $575.4 million, a decrease of $22.4 million, or 3.7% (2.8% decrease on a constant currency basis), compared to $597.7 million for the first quarter of 2024. This decrease was principally driven by lower volumes and throughput pallets as we are lapping unusually high, counter-cyclical inventory levels in the first quarter of 2024, partially offset by annual rate increases in the normal course of operations. Global Warehouse segment contribution (NOI) was $196.6 million for the first quarter of 2025 as compared to $197.1 million for the first quarter of 2024, a decrease of $0.5 million or 0.3% (0.5% increase on a constant currency basis). Global Warehouse segment contribution (NOI) decreased primarily due to the factors noted above. Global Warehouse segment margin was 34.2% for the first quarter of 2025, a 120 basis point increase as to compared to the first quarter of 2024, driven by an increased focus on workforce performance, operational efficiency, and retention. Fixed Commitment Rent and Storage Revenues As of March 31, 2025, $629.3 million of the Company’s annualized rent and storage revenues were derived from customers with fixed commitment storage contracts compared to $625.3 million at the end of the fourth quarter of 2024 and $597.9 million at the end of the first quarter of 2024. On a combined basis, 60.1% of rent and storage revenues were generated from fixed commitment storage contracts. On a combined basis, 60.6% of total warehouse segment revenues were generated from customers with fixed committed contracts or leases. Economic and Physical Occupancy Fixed commitments storage contracts are designed to ensure the Company’s customers have space available when needed. For the first quarter of 2025, economic occupancy for the total warehouse segment was 74.7% and the warehouse segment same store pool was 76.6%, representing a 1,140 and 1,150 basis point increase above physical occupancy, respectively. Economic occupancy for the total warehouse segment decreased 470 basis points, and the warehouse segment same store pool decreased 420 basis points as compared to the first quarter of 2024. This was primarily due to unusually high inventory levels during the first quarter of 2024, therefore impacting comparability in the first quarter of 2025. Additionally, overall volumes are also impacted by recent regulatory shifts, a competitive and inflationary environment, and abnormal credit yields, all impacting consumer buying habits and the related food production levels. Real Estate Portfolio As of March 31, 2025, the Company’s portfolio consists of 238 facilities. The Company ended the first quarter of 2025 with 235 facilities in its Global Warehouse segment portfolio and 3 facilities in its Third-party managed segment. The same store population consists of 224 facilities for the quarter ended March 31, 2025. The non-same store facility count consists of: 8 facilities where the executive leadership team has approved exits in the current year (4 of which are leased facilities and 4 of which are owned facilities and the Company is in pursuit to sell), 2 sites in the recently completed expansion and development phase (further detailed in the External Development and Capital Deployment section of our quarterly supplement), and 1 facility that we purchased in 2025. As of March 31, 2025, there are 6 sites in the development and expansion phase that will be added to the non-same store pool when operations commence. Balance Sheet Activity and Liquidity As of March 31, 2025, the Company had total liquidity of approximately $651.2 million, including cash and available capacity on its revolving credit facility. Total net debt outstanding was approximately $3.7 billion (inclusive of approximately $187.0 million of financing leases/sale lease-backs and exclusive of unamortized deferred financing fees), of which 95.1% was in an unsecured structure. At quarter end, net debt to pro forma Core EBITDA (based on trailing twelve months Core EBITDA) was approximately 5.9x. The Company’s unsecured debt has a remaining weighted average term of 4.7 years, inclusive of extensions that the Company is expected to utilize, and carries a weighted average contractual interest rate of 4.0%. As of March 31, 2025, approximately 86.3% of the Company’s total debt outstanding was at a fixed rate, inclusive of hedged variable-rate for fixed-rate debt. The Company has no material debt maturities until 2026, inclusive of extension options. Dividend On March 17, 2025, the Company’s Board of Directors declared a 5% increase in the dividend to $0.23 per share for the first quarter of 2025, which was paid on April 15, 2025 to common stockholders of record as of March 28, 2025. About the Company Americold is a global leader in temperature-controlled logistics real estate and value-added services. Focused on the ownership, operation, acquisition and development of temperature-controlled warehouses, Americold owns and/or operates 238 temperature-controlled warehouses, with approximately 1.4 billion refrigerated cubic feet of storage, in North America, Europe, Asia-Pacific, and South America. Americold’s facilities are an integral component of the supply chain connecting food producers, processors, distributors and retailers to consumers. Non-GAAP Measures We use the following non-GAAP financial measures as supplemental performance measures of our business: NAREIT FFO, Core FFO, Adjusted FFO, NAREIT EBITDAre, Core EBITDA, Core EBITDA margin, net debt to pro-forma Core EBITDA, segment contribution (“NOI”) and margin, same store revenues and NOI, certain constant currency metrics, and maintenance capital expenditures. Definitions of these non-GAAP metrics are included in our quarterly financial supplement, and reconciliations of these non-GAAP measures to their most comparable US GAAP metrics are included herein. Each of the non-GAAP measures included in this press release has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of the Company’s results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the Company’s presentation of non-GAAP measures in this press release may not be comparable to similarly titled measures disclosed by other companies, including other REITs. Forward-Looking Statements This press release 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 information currently available to us. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause our actual results to differ materially from the expectations of future results we express or imply in any forward-looking statements, and you should not place undue reliance on such statements. Factors that could contribute to these differences include the following: rising inflationary pressures, increased interest rates and operating costs; national, international, regional and local economic conditions, including impacts and uncertainty from trade disputes and tariffs on goods imported to the United States and goods exported to other countries; periods of economic slowdown or recession; labor and power costs; labor shortages; our relationship with our associates, the occurrence of any work stoppages or any disputes under our collective bargaining agreements and employment related litigation; the impact of supply chain disruptions; risks related to rising construction costs; risks related to expansions of existing properties and developments of new properties, including failure to meet budgeted or stabilized returns within expected time frames, or at all, in respect thereof; uncertainty of revenues, given the nature of our customer contracts; acquisition risks, including the failure to identify or complete attractive acquisitions or failure to realize the intended benefits from our recent acquisitions; difficulties in expanding our operations into new markets; uncertainties and risks related to public health crises; a failure of our information technology systems, systems conversions and integrations, cybersecurity attacks or a breach of our information security systems, networks or processes; risks related to implementation of the new ERP system, defaults or non-renewals of significant customer contracts; risks related to privacy and data security concerns, and data collection and transfer restrictions and related foreign regulations; changes in applicable governmental regulations and tax legislation; risks related to current and potential international operations and properties; actions by our competitors and their increasing ability to compete with us; changes in foreign currency exchange rates; the potential liabilities, costs and regulatory impacts associated with our in-house trucking services and the potential disruptions associated with our use of third-party trucking service providers for transportation services to our customers; liabilities as a result of our participation in multi-employer pension plans; risks related to the partial ownership of properties, including our JV investments; risks related to natural disasters; adverse economic or real estate developments in our geographic markets or the temperature-controlled warehouse industry; changes in real estate and zoning laws and increases in real property tax rates; general economic conditions; risks associated with the ownership of real estate generally and temperature-controlled warehouses in particular; possible environmental liabilities; uninsured losses or losses in excess of our insurance coverage; financial market fluctuations; our failure to obtain necessary outside financing on attractive terms, or at all; risks related to, or restrictions contained in, our debt financings; decreased storage rates or increased vacancy rates; the potential dilutive effect of our common stock offerings, including our ongoing at the market program; the cost and time requirements as a result of our operation as a publicly traded REIT; and our failure to maintain our status as a REIT. Words such as “anticipates,” “believes,” “continues,” “estimates,” “expects,” “goal,” “objectives,” “intends,” “may,” “opportunity,” “plans,” “potential,” “near-term,” “long-term,” “projections,” “assumptions,” “projects,” “guidance,” “forecasts,” “outlook,” “target,” “trends,” “should,” “could,” “would,” “will” and similar expressions are intended to identify such forward-looking statements, although not all forward-looking statements may contain such words. Examples of forward-looking statements included in this press release include, but are not limited to, those regarding our 2025 outlook and our migration of our customers to fixed commitment storage contracts. We qualify any forward-looking statements entirely by these cautionary factors. Other risks, uncertainties and factors, including those discussed under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, and other reports filed with the Securities and Exchange Commission, could cause our actual results to differ materially from those projected in any forward-looking statements we make. We assume no obligation to update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future except to the extent required by law. Contacts: Americold Realty Trust, Inc. Investor Relations Telephone: 678-459-1959 Email: [email protected] We view and manage our business through three primary business segments—warehouse, transportation, and third-party managed. Our core business is our warehouse segment, where we provide temperature-controlled warehouse storage and related handling and other warehouse services. In our warehouse segment, we collect rent and storage fees from customers to store their frozen and perishable food and other products within our real estate portfolio. We also provide our customers with handling and other warehouse services related to the products stored in our buildings that are designed to optimize their movement through the cold chain, such as the placement of food products for storage and preservation, the retrieval of products from storage upon customer request, case-picking, blast freezing, produce grading and bagging, ripening, kitting, protein boxing, repackaging, e-commerce fulfillment, and other recurring handling services. In our transportation segment, we broker and manage transportation of frozen and perishable food and other products for our customers. Our transportation services include consolidation services ( i.e. , consolidating a customer’s products with those of other customers for more efficient shipment), freight under management services ( i.e. , arranging for and overseeing transportation of customer inventory) and dedicated transportation services, each designed to improve efficiency and reduce transportation and logistics costs to our customers. We provide these transportation services at cost plus a service fee or, in the case of our consolidation or dedicated services, we may charge a fixed fee. We supplemented our regional, national and truckload consolidation services with the transportation operations from various warehouse acquisitions. We also provide multi-modal global freight forwarding services to support our customers’ needs in certain markets. Under our third-party managed segment, we manage warehouses on behalf of third parties and provide warehouse management services to leading food manufacturers and retailers in their owned facilities. We believe using our third-party management services allows our customers to increase efficiency, reduce costs, reduce supply-chain risks and focus on their core businesses. We also believe that providing third-party management services allows us to offer a complete and integrated suite of services across the cold chain.

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