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Americold Realty Trust, Inc. Stock Price: Quote, Forecast, Splits & News (COLD)

Finance

Company Profile

New

Americold Realty Trust, Inc. Price & Performance (COLD)

Stock Performance

Updated Mar 19, 8:00 PM UTC

COLD:NYSE

$21.92USD

0.99% · $0.22

Open

$22.14

High

$22.14

Low

$21.65

Market Cap

$6.23B

P/E Ratio

-66.4

Volume

2.03M

Year High

$30.45

Year Low

$20.41

Dividend Yield

4.01%

News & Market Insights

Americold Exceeds Financial Goals with Strong 2024 Performance
Mar 18, 2025
Americold Realty Trust achieved significant financial milestones in 2024, including a 16% rise in Adjusted FFO per share and surpassing its target for same-store handling NOI growth by reaching $125 million. The company also announced strategic developments in Canada and New Zealand, signaling robust growth initiatives for 2025.12
Dividend Boost Highlights Americold's Shareholder Focus
Mar 17, 2025
Americold Realty Trust has raised its quarterly dividend to $0.23 per share, reflecting a commitment to enhancing shareholder value. This increase aligns with its strategic focus on growth and operational efficiency, despite recent financial challenges, including a net loss in Q4 2024.13
Analysts Maintain Optimism Despite Americold's Revenue Decline
Mar 16, 2025
Despite a 1.9% year-over-year revenue drop in Q4 2024, Americold Realty Trust exceeded earnings expectations with $0.37 EPS. Analysts remain optimistic, maintaining a "buy" rating and forecasting a 12-month price target of $27.50, boosted by the company's strategic investments and operational improvements.45

What's Happening

Peers

Earnings

Report Date

Feb 20, 2025

Reported Revenue

666.4M

Avg 1d Change

5.25%

Report Period

Q4 2024

Reported EPS

0.37

Implied Move 1d

6.18%

Transcript

11m 1s

During this call, we will discuss certain non GAAP financial measures including but not limited to core EBITDA and AFFO. The full definitions of these non GAAP financial measures and reconciliations to the comparable GAAP financial measures are contained in the supplemental information pack available on the company's website. Now, I will turn the call over to George. Thank you, Kevin, and thank you all for joining the call. This morning, I will review the key operational metrics financial results the fourth quarter and full year as well as provide the background and assumptions underpinning our 2025 Rob will then provide an update on our recent customer initiatives and growth activity, And Jay will summarize our capital position and liquidity as well as provide a detailed walk through of our full year 2025 guidance. Throughout the fourth quarter, we continue to control what we can control with a focus on operating efficiency, Managing variable costs and providing best in class service to our customers. As always, we are guided by our four key priorities, I'm pleased to review with you some of our accomplishments. Starting with customer service, we continue to provide best in class service Through our network of automated and conventional facilities, and a wide assortment of value added warehouse service offerings.

12m 24s

Last quarter, our fully automated facility in Russellville, Arkansas was awarded Site of the Year by Conagra. For a flawless start up and ramp to full capacity. Additionally, Atlanta Westgate facility was recognized as the frozen site of the year in 2024 from Kraft Heinz providing exceptional customer service Lastly, our Lowell, Arkansas facility was awarded Site of the Year for Motherball. The second consecutive year, Also, This kind of recognition is only possible through laser focused dedication to serving our customers' needs with high quality infrastructure a broad array of warehouse services and a well trained engaged and productive workforce. We are encouraged that same store economic improved slightly sequentially to almost 79% in the fourth quarter. It's important to note we lapped an unusually high occupancy comp from the previous year. The takeaway here is that even with lower average occupancy in 2024, Americold was still able to grow profitably with better workforce productivity, improved revenue captured through our commercialization efforts, Lower procurement costs and the technology improvements from our investment in Project Orion. Our rent and storage revenue derived from fixed commitment storage contracts came in at approximately 59% for the quarter. A significant improvement of six eighty basis points on a year over year basis.

14m

The breadth of our warehouse services and commitment to best in class award winning customer service continues to keep Americold the leader in the industry when it comes to customers' willingness to reserve occupancy in our high quality infrastructure. Regarding our priorities around labor management, we maintained our perm to temp hours ratio at 70 five-twenty five. Is in line with recent quarters. Associate turnover finished the quarter at 32% maintaining a level approximately 10% better Our third metric measures the percentage of associates with less than twelve months of [indiscernible] it remains at 22% a 10% improvement from prior year. Our workforce metrics have never been better. Reflecting the investments we've made in engagement, training, communication and recognition. Manage these metrics closely across the business and share them to provide visibility into the foundation we've built to support our warehouse services business and to instill confidence in our ability to continue to grow profitably. In 2024, we generated an an incremental $125,000,000 of same store warehouse services NOI exceeding the $100,000,000 commitment we made two years ago. As a result of our productivity initiatives, we also successfully grew our same store warehouse services margin which finished at an impressive 13% up almost seven percentage points from last year.

15m 36s

Turning to pricing. For the fourth quarter, our same store written storage revenue per economically occupied pallet on a constant currency basis increased by approximately 3% versus the prior year. And same store services revenue per throughput pellet increased by approximately 6%. As we discussed last quarter, we expected normalization in our warehouse services pricing comps due to lapping the benefits of large renewal increases from late last year. Moving to development, we exceeded our guide for announced starts in 2024 with our plan to build a new approximately $150,000,000 Automated expansion to an existing facility in the Dallas Fort Worth market. We are pleased to say we just broke ground on that project in January. To give an update on our two customer dedicated automated retail distribution facilities in Lancaster, Pennsylvania, and Plainville, Connecticut we continue to partner with our customer and remain thoughtful on our ramp schedule to ensure the long term success of these Based on the significant progress made, the automated facility in Pennsylvania currently has physical occupancy of 40% and building. We expect both physical occupancy and throughput to ramp as we hit stabilization in the Second Half Of This Year. We Expect Plainville to ramp up closely behind.

17m 4s

As a reminder, these are state of the art fully automated retail facilities that support direct store delivery operation most operationally intensive nodes in the temperature controlled supply chain. As a testament to our automation design and development capabilities, was the recipient of the 2024 Built by the Best award. From the Controlled Environment Building Association. This award is given to the most innovative and advanced building in the temperature controlled space around the world that achieves a successful on time and on budget We are on it. Our automation capabilities have received such prestigious global award. Altogether, these factors contributed to same store NOI of approximately an increase of 6% from prior year and fourth quarter AFFO of approximately $106,000,000 or $0.37 per share.

18m 6s

Turning to our full year results. Same store NOI grew over 11 our second year in a row of double digit growth And over the past two years, we've added $120,000,000 of AFFO.

18m 18s

Which is a 40% increase.

18m 20s

Full year AFFO in 2024 was $1.47 per share. Looking back on 2024, it's hard to over state the progress we've made across our company. The successful technology go live of Project Orion, no small feat in itself, contributed meaningfully to the bottom line throughout the year. Capital deployment accelerated as we announced attractive new developments across our portfolio and we delivered sustainable service margins that are well in excess of the 9% target we committed to just two years ago. These achievements and many others are all reflected in the 16% increase in AFFO per share we achieved versus 2023. As we look forward into 2025, our development priorities remain unchanged. With a focus on our strategic partnerships low risk expansions and customer dedicated developments. I'm pleased that already in 2025, we have made progress on all three of these priorities. In January, we announced our plans to build our first import export hub in Canada at Port Saint John, New Brunswick. Were approximately $79,000,000 This facility will be the first of its kind globally and bring together Americold warehouse solutions With the maritime logistics capabilities of our strategic partner DP World, and the rail logistics solutions of our strategic partners CPKC, all at a single facility.

19m 50s

It's important to note this isn't a demand driven build. We are creating a greener, more efficient and reliable supply chain for the import export of food services out of Eastern Canada, utilizing the world class capabilities of our company, and our partners. I'm also pleased to announce that customer dedicated expansion project this one at our Hellwyn Drive facility in Christchurch, New Zealand, for approximately $34,000,000 which will be dedicated to one of the country's largest grocers, This is another example of a customer committing more of their business to Americold due to the quality and strategic location of our assets and exceptional customer service. As we have stated multiple times throughout the past year, we have many attractive opportunities through our partnerships that are currently in underwriting and expect 2025 to be a year that is very active as our new development pipeline continues to exceed $1,000,000,000 Now on to the current market condition assumptions that are underpinning our We believe that we are seeing stabilization in the market and anticipate getting back to the more traditional seasonal trends you see occupancy gains in the back half of the year. For the full year 2025 within the same store pool, we expect generally flat economic occupancy.

21m 13s

With 100 basis points increase or decrease from 2024. We expect throughput volumes to increase in the range of 100 basis points from 2024. From a pricing standpoint, we expect a normalized year of general rate increases in Operationally, we expect to see same store warehouse services margins in excess of 12%. Given these inputs, we are guiding to a full year twenty twenty twenty five AFFO per share range of $1.51 to $1.59 with a midpoint of $1.55 per share. At the midpoint, this represents an approximate 5% increase from 2024. Before I turn the call over to Rob, I would be remiss not to mention Americold's commitment to giving back and our ongoing efforts to combat hunger. Our partnership with Feed the Children is in its tenth year now. And is committed to delivering resources to communities where we can have meaningful impact. In the last ten years, we have delivered nearly 2,000,000 pounds of food or 1,800,000 meals to approximately 650,000 families in underserved communities. We are proud of the accomplishments that we have been able to achieve in partnership With that, I will turn it over to Rob.

22m 35s

Thank you, George. As George mentioned, our company delivered strong results during the fourth quarter To wrap up an impressive year both operationally and commercially, as well as from a development perspective. Customer service is key to growing market share in the long run, we are proud of the recognition our customers have awarded us. And the trust they put in us to operate their supply chains and protect their brains. It's our operational expertise and customer service that enables us to execute on our pricing initiatives. Our activity based pricing model Insurers that we develop rates enable us to offer pricing that both allows us to win in the market while also ensuring an appropriate margin across each of the value added services we provide. In the fourth quarter, same store rent and storage revenue for economically occupied pallet on a constant currency basis increased by approximately 3% versus the prior year. Same store constant currency services revenue for Fruitbook Pallet increased by approximately 6%. Driven by pricing put in place in the back half of twenty twenty three coupled with general rate increases or GRIs at the beginning of twenty twenty four, along with better revenue capture and incremental value added services.

23m 56s

As we mentioned earlier, given the great progress we've made in this area over the past year, we would expect pricing gains to moderate going forward. Within our Global Warehouse segment, we had no material changes the composition of our top 25 customers. Who account for approximately 51% of our global warehouse revenue on a pro form a basis. Our churn rate continues to remain low at approximately 3% of total warehouse revenues consistent with historical churn rates. As George mentioned, we continue to be successful at increasing our fixed commitments with customers and in the fourth quarter rent and storage revenue derived from fixed commitment storage [indiscernible] came in at approximately 59%. A fifteenth straight quarterly record for Americold. We are close to achieving our target of 60% fixed commits but I do want to remind everyone that as we get closer to that goal, incremental increases become more difficult given the nature and structure of our client Americold has established itself as the first choice for the world's largest food manufacturers and grocery retailers when it comes to their temperature controlled supply chain. Our customers want end to end world class service to partner with a provider who can support them at every node in the supply chain.

25m 17s

This is a major competitive advantage uniquely positions Americold within our industry to be a cold storage provider of choice and to capitalize on our new business pipeline, targeted at driving same store occupancy. Last quarter, we introduced a probability weighted new business pipeline that represents revenues of over $200,000,000 and consists of growth within both existing and new customers to our portfolio. Our solutions team has been focused on proactively providing our customers with new and innovative ways to drive efficiencies into their supply chain. Leveraging Americold's vast network and wide array of value added services. This consultative selling approach continues to resonate with our customers and positively impact the health and scale of our new business pipeline. We are encouraged by the amount of new business deals closed in the fourth quarter and thus far in the first quarter of twenty twenty five. And as those new volumes materialize, we are confident they will have a positive impact on occupancy. Given our strong operating metrics and our customer service excellence, we have continued to accelerate the underwriting process in evaluating development opportunities across the three primary areas of focus: Our strategic partnerships with CPKC and DP World expansion projects at existing facilities, and new customer dedicated build to suit developments.

26m 44s

First, let me comment on the exciting announcement we made in late January as well as our expansion announcement today. As George mentioned, last month we announced plans to develop our first importexport hub in Canada at Port St. John in New Brunswick, leveraging for the first time the combined capabilities of Americold, CPKC, and DP World in a single location. This approximately $79,000,000 conventional facility will provide 22,000 pallet positions in Port St. John, and add 7,400,000 cubic feet to our portfolio. We expect stabilized ROIC in the 10% to 12% range. This hub will be uniquely positioned in the market transforming supply chain efficiency and sustainability. And will help customers reduce transportation costs and streamline the supply chain from production to export. Port St. John has been the beneficiary of significant investment in recent years from both DP World and CPKC and the infrastructure they have built has attracted major global shipping lines to this location as a way to enhance food flows between Canada, and global trading partners in Europe, South America and Asia Pacific. The facility will be accessible by rail, and we anticipate significant customer demand based on our current pipeline. We broke ground during this quarter and expect to open the facility in Q3 twenty six.

28m 12s

Today's announcement of a new approximately $34,000,000 at Christchurch New Zealand we'll support the increased demand from an existing customer of the facility. Americold has two sites in Christchurch, both operating consistently at 100% occupancy. And this expansion is necessary to support our customers' growth requirements. The new expansion will add approximately six and is underwritten with a stabilized ROIC in the range of 10% to 12%. This expansion will be dedicated to the largest grocery retailer in the Asia Pac region, This expansion is yet another example of our customers recognizing Americold as the cold storage provider of choice. We are proud of these two facilities, will cover each of our development priorities. Partnership builds, customer dedicated capacity and expansion to major markets. In addition to these new announcements, we have five in progress projects that all remain on track for both the timing and underwriting perspective. Three of them are scheduled to open in Q2 of twenty twenty five, including our $85,000,000 37,000 pound position expansion in Allentown, Pennsylvania our $35,000,000 40,000 pound position Greenfield facility flagship build with DP World and Port Of Jebel Ali in Dubai, and our $127,000,000 22,000 pound position greenfield facility flagship build with CPKC in Kansas City, Missouri.

29m 48s

Our fourth in progress development project the $30,000,000 13,000 pallet position expansion in Sydney, Australia is on track to open in Q1 of twenty twenty six Our fifth in progress development project are approximately $150,000,000 automated expansion in DFW Texas broke ground in January and remains on track to open in Q4 twenty twenty six. As a reminder, this will add 50,000 pallet positions. These projects combined represent over $500,000,000 of growth capital including approximately $250,000,000 in projects with our strategic partnerships. Both of which are still in the very early stages. We're proud of our ability to grow and execute we intend to continue to do so in 2025. Americold's customers view us as an extension of their own supply chain organization and as they grow, we need to be there to help foster and support that growth. This view is evidenced by our long term committed and global nature of our relationships and decades of industry leadership we have built that level of trust. Even with the developments I spoke to earlier, our new development pipeline remains robust and still exceeds $1,000,000,000 in potential projects across our three development priorities. With that, I will now turn it over to Jay.

31m 11s

Thank you, Rob. Today, I will discuss our capital position and liquidity, and provide additional details on our 2025 deck. First, I'll cover our balance sheet. At quarter end, total net debt outstanding was $3,400,000,000 with total liquidity of approximately $922,000,000 consisting of cash on hand, and revolver availability. Net debt to core EBITDA was approximately 5.4 times. Investments in the expansion and development projects that Rob discussed will continue through 2025. With the Allentown, Kansas City Dubai facilities opened during the second quarter. Please see Page 26 of the IR supplement for additional details on our development projects. Turning to our full year 2025 guidance. As George mentioned, we expect AFFO per share to be in the range of 1.51 to $1.59 with a midpoint of $1.55 per share. At the midpoint, this represents an approximate 5% increase from 2024. Before reviewing the individual components of this guidance that are set forth in the press release and on Page six of the IR supplement, let me quickly comment on the 2025 same store pull for the Global Warehouse segment. This pool has two twenty six facilities, which is approximately 97% of the total number of properties in our warehouse segment.

32m 43s

A summary of our 2025 same store pool historic performance for the full year 2024 is presented on Page 28 of the IR supplement. We have seven facilities that are outside the 2025 same store pool. Now trained to the individual components of our AFFO guidance starting with our Global Warehouse segment.

33m 5s

We expect full year 2025 same store constant currency revenue growth to be in the range of 2% to 4%. Let me provide more detail around the key drivers of this guide. With respect to occupancy and throughput volumes, we expect economic occupancy to be in the range of negative 100 to positive 100 basis points compared to 2024 and throughput volume to increase in the range of 1% to 2%.

33m 32s

As a reminder, are still lapping some countercyclical build of inventory through the first half of this year and will return to a more normal seasonality trend in the back half of the year. With respect to pricing, we expect constant currency rent and storage revenue for economic occupied pallet growth to be in the range of 1.5% to 2.5%. And cost of currency services revenue per throughput pilot growth to be in the range of 2.5% to 3.5%. As a reminder, the pricing guidance reflects our expectation to see less outside and off cycle price increases can get back to a more normalized GRI and renewals. For the full year, our same store comp and currency NOI growth is forecasted to be in the range of 4% to 6%. The 2025 same store pool services margins were 11.9% in 2024, And as George mentioned, we believe we can sustain service margins in excess of 12% for the full year '25.

34m 35s

Aided by continued productivity initiatives, and benefits from Project Orion. With regards to the 2025 non same store pool, as can be seen on Page 28 of the IR supplement, the non same store pool generated negative $19,000,000 of NOI for the full year 2024. For the full year 2025, we expect the non same store pool to generate NOI in the range of $0 to positive $7,000,000 As part of our ongoing active portfolio management process, we are strategically exiting five facilities during 2025. The majority of which are leased. The significant amount of the business in each of these facilities can be consolidated into other assets in our network generating meaningful cost savings. We expect the Managed and Transportation segment's NOI to be in the range of $44 to $48,000,000 We expect core SG and A to be in the range of $240,000,000 to $245,000,000 for the year, driven by incremental Q1 twenty twenty five licensing expense of approximately $4,000,000 associated with our new Oracle SaaS environment and $3,000,000 of labor costs previously capitalized as part of Project Orion that will now be expensed. Other incremental costs include $4,000,000 related to employee merit increases, and $6,000,000 of incremental investment in cybersecurity and IT transformation that will be recognized rapidly throughout the year.

36m 10s

For the full year, we expect interest expense to be in the range of $145,150,000,000 dollars with approximately $19,000,000 of interest being capitalized. For the full year, cash taxes is expected to be in the range of $8,000,000 to $10,000,000 and maintenance capital expenditures is expected to be in the range of $82,000,000 to $88,000,000 Development starts are expected to be in the range of 2 to $300,000,000 Please keep in mind that our guidance does not include the impact of acquisitions dispositions, our capital markets activity beyond that which has been previously announced, and please refer to our IR supplement for detail on additional assumptions embedded in this guidance. Now, let me turn the call back to George for some closing remarks. Thanks, Jade. 2024 was clearly a successful year in growing our partner Deploying capital on low risk developments enhancing our business with state of the art systems, and growing our warehouse services business at margin levels that were aspirational not [indiscernible] It's this momentum that gives us the confidence in our growth prospects for 2025. Unlike traditional industrial REITs, we have the ability to generate unique organic profit best in class operator, which we've done successfully for the past two years.

37m 32s

We see nothing to change that going forward. As always, I want to thank our associates around the world for their professionalism, and hard work every day. Your dedication that gives our customers the confidence that Americold will be there support their current operation future growth. Thank you again for joining us today and we will now open the call for your questions. [indiscernible] Thank you. At this time, we will be conducting a question and answer session. We ask that analysts limit themselves to one question and a follow-up so that others may have an opportunity to ask questions. Our first question comes from Steve Sakwa with Evercore ISI. Please proceed with your question.

38m 35s

Yes, thanks. Good morning, George. I guess I wanted to come back to the occupancy target. You talked kind of minus 100 to plus 100. I know that was a challenging area in 2024. I just am trying to reconcile that outlook with kind of the spread between economic occupancy and physical occupancy, which seemed to deteriorate between 'twenty three and 'twenty four. And just the commentary that you're getting from kind of the major food manufacturers [indiscernible] how you sort of assess that risk moving forward? Yes. Thanks, Steve. As you see, our guide is flat, right? We're guiding to zero improvement in economic occupancy over the year. It does say though that we do expect stabilization in the sense that we're back to seasonal trends. Meaning that the first half of the year will be lower than the second half of the year. When I speak to the gap between economic and physical occupancy, Let me turn that over to Rob, but you can commits, right? It's the nature of what a fixed commit is. A customer is reserving space for future seasonal use. So to go a little deeper on that, why don't you do that Rob?

39m 55s

See the gap between physical and economic occupancy honest with you. First of all, we've been in a tough environment for a while and we've had 15 straight quarters now growing our fixed commitments. We're very close to our publicly stated goal of being in the 60% range. And And as George mentioned, as we sell more fixed commitments that gap does naturally widen a bit just because of the seasonal nature of the business. And I think in the end, while maybe 10% sounds like a big gap at a macro level, you think about it from a customer perspective, if you're a customer and you're reserving call it 20,000 power positions in our network, and you're utilizing 18 of the 20,000 pallets, that's a very comfortable buffer to operate your business. So So it's pretty normal there. And I don't think that the gap between physical and economic is a concern in our view. Okay, great. Thanks. And maybe George, just a follow-up on the service margin. I think you said it would maybe be better than 12%, but you've clearly demonstrated a great improvement here Project Orion seems to be working well. I guess how conservative is that margin and where do you ultimately think that Yes.

41m 18s

Well, Steve, the first effect on the same store pool is we recast the same store pool in the 2025 pool and 2024 terms, a little bit below 12% if you do that math. And I think Jay explained that in his portion of the script. So we're starting from a little lower base when you take that into account. So greater than 12% is actually expanding those margins from where we are today. Is it conservative? We've been beating it pretty know. Exactly where we'll land. We know we'll be in excess of 12%. A lot depends on business mix. A lot depends on throughput volume, which we're guiding up this year. So I'd say it might be on the conservative side, but in this environment, as you know, things are changing pretty quickly. And what we do know is we can beat 12% and that's why we made commitment in our guide Our next question comes from Mike Miller with JPMorgan. Please proceed with your question. [indiscernible] specifically are you hearing from customers that make you think that you're on the of normalization? And as you look at the spectrum of customers, is it really being driven by one segment versus another?

42m 41s

I don't think it's driven by one segment versus another, Mike. I think that the lower inventory we're seeing, at the moment is very, very low. We're seeing throughput tick up a little bit, which means that activity is picking up a little bit. We're guiding to higher throughput as you see. So I think it's just what we've gone through over the last two years and where we sit today, we feel like that we're stabilized. We said in the script.

43m 9s

And to that point, we feel like the second half of the year will go back to normal seasonal trends and be higher than the first half. So Over the last twenty four months to get to where we are now and we think we are at the point where seasonality finally takes over from builds of inventory seasonal. So that's a positive albeit off a lower base. No, I think one thing we showed is even in this environment in this lower base, we show the ability to grow profitability. And we're just managing what we can control through this environment. We'll continue to grow the bottom line for Got it. And just following up on occupancies, what's your best sense today as to what normal more normalized physical and economic occupancy ranges should be compared to what you're expecting for this year? I can't really comment on that, Mike. As I said, the last two years on our [indiscernible] could predict the future. We view it as flat year over year, but back to a seasonal trend off a lower base. And to me that's a positive because it speaks to normalization and then we can grow from that point.

44m 29s

But predicting occupancy at this point, I think anybody would have a problem doing that.

44m 34s

No. But I think long range goal, I mean, we've always said mid-80s.

44m 38s

Oh, sure.

44m 39s

Is the target and we still feel that's achievable. Rob talked about the very good pipeline of new business we're working on and we're actually feel that even in this environment, we can in the end grow our occupancy. It's really just lapping still a little bit of a countercyclical inventory bill that I talked about previously that was built to 2023. We still have a little bit to lap at the beginning of this year, but once we lap that, we feel with where the consumer is today, we can build with our business development team on top of that.

45m 14s

Yes. My comments were more near term, but longer term, we don't see any impact on the business in terms of our goals for occupancy. Our Our goals for 85% or even higher percentage points. We said we could even get into the low 90. So those are all achievable over the long run and we believe in the long run we'll get to those numbers. But short term were the comments I made referring to. Our next question comes from Blaine Heck with Wells Fargo.

45m 41s

Please proceed with your question.

45m 44s

Great. Thanks. Good morning. George, appreciate your commentary on expected timing of return to normal seasonality in the back half of the year. But guess following up on that, what do you think we need to see specifically to ensure that happens and what signals should we be looking for? Is it all about interest rates and inflation moderating, spurring stronger consumption, I guess, how does inventory rationalization amongst your tenants play into the softer conditions. And are there any other kind of major [indiscernible] That need to improve. And I guess what should we be monitoring before you think we can see that more of an inflection in operations and occupancy. Yes, Blaine, I think the number one activity that is going to drive occupancy in the second half of the year is something we mentioned on the previous call or Rob mentioned on the previous call with his sales to drive occupancy in the second half of the year that we know we're making great progress on right now. And I'll ask Rob to comment on that in just a second. But the reason we also believe the seasonal trend is there, if we look at our customers' holdings right now, it's clear they're low enough that they have to build to hit even any incremental demand when we hit summer grilling season inventory levels we're at now, our customers would have to build, we believe, at least nominally to get to service the second half of the year.

47m 20s

But coming back to the sales initiative we talked about last year, let me ask Rob to comment. On a little bit. Sure. Yes, we'd love to see, obviously, the overall base rise, but in the absence of some of that in the short term, we're focused on winning new business. And that new business comes from market share gains, it comes from going to customers who have in sourced business historically over time and say and provide it showing them the value of outsourcing to Americold and we're having a lot of success We're very encouraged by the progress around our new business sales, particularly deals closed in the fourth quarter and thus far in the first quarter of this year. And when we look at it year over year, we're actually significantly ahead as it relates to new business deals closed, over the last call it four to six months compared to where we were this point a year ago. So we're making a lot of progress there. It will take a little bit of time for those volumes to materialize and that's what we've shown in our guide of back half improvement around occupancy. Great. That's helpful.

48m 31s

And then second question, just clearly the new administration is is off to a quick start with rhetoric and potential action in the future on the tariff side. Also on deportation. Can you talk a little bit more about how each of those could impact your business and whether you have any data or can give any color on what your exposure is to in imported goods versus those that are domestically sourced? It's clearly the imported goods component of our building of our business, sorry, is is a very low percentage in the overall in the overall business. So not terribly concerned about that. I think a lot of the impacts of tariffs right now are still a little bit to predict. There's a lot of movement back and forth. And I'm sure you know that as well as I do. So I'm not sure what the long term impact will be. I suspect it will be less than we believe it will be today. But also, we think there's a positive in this for some of our other operations. For instance, If you look at our plans for Mexico, we're designing a cheaper, more reliable solution to move goods between The U. S. And Mexico.

49m 42s

And that should be a benefit if the cost of tariffs actually get in place, you'll be you'll have a cheaper way to get product to and from The U. S. So there could be a we believe, a tailwind to some of this with some of the things we're doing with CPKC for instance. Our next question comes from Michael Cara with RBC Capital Markets.

50m 3s

Please proceed with your question.

50m 7s

Rob, can you provide some more color on the probability weighted new business pipeline that you mentioned in your prepared remarks? And also can you kind of help us quantify this $200,000,000 plus of of opportunities? I mean, it sounds like that's roughly 8% of the current run rate revenue run rate. And is that the right way to think about it?

50m 29s

So when we think about that probability weighted pipeline, so our when we say probability weighted, what we mean is the $200,000,000 in terms of a total pipeline is actually much larger than that. That's the the $200,000,000 is when we put a probability against those opportunities, what we think we can close over time. That is higher, that $200,000,000 is higher than what we've seen over the past couple of years.

50m 57s

So Our pipeline of new opportunities has been growing. As I just mentioned, we're what we're very encouraged by is the fact that our close rate or our win rate around those opportunities is climbing now as compared to a year ago. So when we think about the maturity, when we think about the probability of the pipeline and those deals actually closing and materializing, it's it's going up year over year and that's great. So I think when we look at the quality of the opportunities, we've a lot of them are longer term deals, they're fixed commitments. They're around they're in sectors like retail and others that are a bit idiosyncratic to Americold. So we're very encouraged by it and we think that it's going to be a big part of the reason why we see occupancy gains in the back half of the year.

51m 53s

And keep in mind that the retail wins comes with a much higher churn business too. It benefits the throughput of numbers that we're guiding to, too, because we are bringing on customers retail QSR focus that just has more throughput as part of the business we do with them.

52m 10s

Okay. And it sounds like that $200,000,000 plus reflects roughly 8% of current warehouse revenues. I mean should we think about that being offset by the typical 3% to 4% turn rate? So net net, I should think about this adding 4% net Yes, I think so. So you're right there, Mike.

52m 31s

From a standpoint of we kind of break things down into three buckets, right? We say what's happening with the base business, the base going up or down? And then what do we win and meaning what are we for on the top and what do we lose what comes out of the bottom. Our goal every year obviously is to to win more than we lose. We're Our churn rate in terms of what's left the portfolio has been very constant over the last few years, stay at 3%. And so to the extent that we're successful in closing that new business pipeline, it should net to positive occupancy. Which is what we're what we think is going to happen in the second half. Our next question comes from Todd Thomas with KeyBanc Capital Markets.

53m 14s

Please proceed with your question.

53m 18s

Hi, thanks. Good morning. I just wanted to follow-up on that.

53m 21s

Point, I guess. I mean, it sounds like the new business pipeline is solid and that you're still assuming around a 3% rate.

53m 29s

In the New Year. But I was just curious if you could speak a little bit more to the lease expirations. In 2025 also 2026. I didn't see that detail in the supplement. This quarter, but as of last quarter, it was around 13.5% expiring in 25%, a little over 16% in 2026. Can you just speak a little bit about what the expectations are on expirations?

53m 58s

Sure.

53m 59s

Yes, that's right. We wouldn't consider either one of those kind of a percentages outside as compared to typical years. As we've said, our average contracts for length for customers that are in existing infrastructure tends to be in that three to seven year range. So anywhere between 1525% of the business kind of rolls on an annualized basis.

54m 22s

We have a very high renewal rate as evidenced by that low churn rate. And and nothing's changed over the last the course of the last couple of years. We continue to be very successful renewing those agreements. We expect to do the exact same. The conversations are very constructive with customers at the moment about renewing. And I would continue to point to the fact that fifteen straight quarters now, not only have we has that churn rate taken consistent, but we've been growing that fixed commitment percentage. It does get a bit harder now that we're close to the 60% goal, but the structure of the agreements, the term of the agreements, the fixed and committed nature of them, we would expect to continue even as though as we get into these renewal Okay. And then I think there were some comments in the prepared remarks. I think Jay, you may have mentioned some made some comments around five facilities.

55m 21s

That you are consolidating during the year. Can you just speak to that a little bit more and provide some more detail around those and how you're transitioning operations out of those facilities into other warehouses and also describe what the impact is expected to be on the model? During the year and maybe how we should think about that on sort of an annual run rate?

55m 47s

Yes. Let me start and you can fill in the gaps, Rob. So yes, as I mentioned, there primarily lease facilities that are at the end of their lease. Scott Henderson is doing a good job managing our portfolio. And these were underperforming properties where we have other buildings that are owned Next two are close to, so ease of moving products. So when leases come up, rents go up. If they're under underutilized facilities that we can move the inventory cut cost avoid the lease increases and move it into own facilities at that's what we want to do. We want to run our business on own facilities. And leases are coming up and we're taking advantage to put the inventory in own facilities and save the costs and avoid any potential increases in rent.

56m 34s

Yes. I would say this is just a good portfolio, man. [indiscernible] [indiscernible] a smart move. And we're going to take certain advantages in times like these to manage our portfolio in a way that creates more NOI for us. And I think Jay made the comment earlier that we can make money in almost any environment. We've proven that over the last two years. We can grow margins in almost any environment through productivity and other things. Well, this environment, one of the other things we can do is manage our portfolio a little better. Better. And that's what we're doing and that will also contribute to the bottom line.

57m 17s

Our next question comes from Nick Szilman with Baird. Please proceed with your question.

57m 22s

Hey, good morning guys. Maybe touching a little bit more Rob on the new business sort of pipeline. I know At the end of last year, you're commenting on less aggressively pricing sort of new business.

57m 34s

Versus customers in the box. Has that kind of spurred the demand that you've been seeing? Has it really been more cost conscious sort of customer? And then maybe along those lines, it seems as though most of that mix is just market share gains, but maybe you could comment if there's any sort of new business that you're seeing as well?

57m 54s

Sure.

57m 54s

Yes. So I think to the first question, it's a number of factors, right? So certainly, we have an activity based pricing model that also reflects current market demands. And so we are certainly pricing the business to reflect the current market and that helps some demand, which I think is very helpful and contributes to our pricing guide for the year. But also when you think about our value proposition, I mean, from an operation standpoint, as George talked about, we've never been operating better than we are. Today. Our customers recognize that. And we mentioned a few of the the public recognition that has been awarded to us that we're very proud of. And so that leads to market share gains. And so we're seeing a number of reasons contributing to the the success we're having. From a new business acquisition standpoint And some of it beyond just market share gains is going to customers being able to talk to them about the benefit of outsourcing to Americold Americold we're seeing some customers that have historically done the business on their own outsourcing to us. As I mentioned, an area that's probably particularly biased towards that is retail.

59m 16s

And so we're having a lot of success growing that sector of our business, which over the last couple of years has been one of the fastest growing. And there's a bit of a moat around that because that is very operationally intensive, but it there's benefits associated with that with throughput and turns. And so because we have a proven track record of being successful there, we're seeing more and more customers in that sector be looking to Americold to provide that service.

59m 44s

That's helpful. And then maybe Jay, just flushing out some of the seasonality in your assumptions.

59m 49s

Sounds as though occupancy is going to be down year on year in the first half potentially some build in the second half. And that's going to be partially offset by more service revenue per pallet as you kind of price that you're lapping that in the first half of the year. Is that kind of the right way to think about those two components?

1h 5s

No, I think you have it right. Again, we talked a lot last year about the twenty twenty three three build and that a little bit was still on our books to start last year. So we're going to be lapping that. On top of it, just pure seasonality that's the part of the year that would go down too. So you have two things affecting that. But we'll definitely be recovering that in the back half of the year. And then on top of that, we are seeing, as we move through the year, positive trends on throughput as Rob discussed the overall mix of our business becoming more and more retail which does drive increased throughput.

1h 47s

Our next question comes from Greg McGinnis Scotiabank. Please proceed with your question.

1h 54s

Hey, good morning. Just looking to the development pipeline you touch on the relative attractiveness and expected returns for Roundup versus customer expansion versus tapping into the strategic partnerships and then the relative size of each of those components in the $1,000,000,000 plus pipeline?

1h 1m 15s

Yes, we've always said in the past that we believe that the combination of CPKC strategic partnership and our strategic partnership with DP World combined was over $1,000,000,000 worth of development Rob in his section of the script described progress we've already made against that $1,000,000,000 opportunity and obviously by the size of what's out outstanding, there's more opportunity outside of our partnerships. All of them our underwriting is geared to a 10% to 12% return. We don't vary the return based on size of the building, based on segment, etcetera. So, that's a standard in our underwriting that we would take a very unique situation for us to not underwrite to. So unique, it hasn't happened in the last couple of years. So that's a standard that likely will remain. And every opportunity different, right? I mean, if you look at Port St. John, which we just announced, the size of that facility is is different and the scope of that facility is different than one we're building in Jebel Ali outside of Dubai. So each opportunity is unique The consistency is that we underwrite to the 10% to 12% return. But the opportunities are unique because every business we look at, whether it's the same in a different geography or if it's different companies, the requirements change pretty dramatically based on where the buildings are and what they're tasked to do.

1h 2m 42s

And one thing I would add to that that we're very encouraged by is the fact that when you look at the current development projects just as an example, that are in the ground and as we mentioned, there's over $500,000,000 of growth capital in the ground at the moment. They cover all three of those priorities. So we have expansions in major markets. We have customer dedicated capacity that's being added. Obviously, we have over $250,000,000 in partnership builds in the ground. There and any way you cut the pipeline, there are international projects, projects, domestic automated projects and projects conventionally So regardless of how you segment our pipeline, there are opportunities in every one of those segments.

1h 3m 29s

Thanks. And just to follow-up on point eight Saint John Could you give some color in terms of how that deal came to include two of your strategic partners? I mean, who approached who and are there more opportunities for this kind of collaboration?

1h 3m 45s

It's good question. It was a very unique set of circumstances. I mean, it's essentially a DP World project.

1h 3m 53s

That just so happens to have a railhead right at the Porta St. John owned by CPKC and created a very unique situation where we could take the capabilities of both companies, combine them with ours and create I think is going to be one of our most successful customer [indiscernible] So it was, I would say, fortuitous. It There are other opportunities. There are. There's the West Coast Of The U. S. Is one where that might be another opportunity. Other areas in North America Americold potential. But it's it's not necessarily a stated goal to combine CPKC and DP World up [indiscernible] we're not blind to it. And this is this is a very encouraging first step One of the areas that made this opportunity stand out in particular was the investment that DP World has made, that CPKC has made, that that the Canadian government has made in this location literally under of millions of dollars have been spent to make Port St. John at a destination port and it just made sense that America will be there as well. We're seeing a lot of customer demand early out of the gate, right at post our announcement.

1h 5m 12s

And so this is going to be a great project for us and we expect to continue to do more in the future.

1h 5m 21s

Our next question comes from Ki Bin Kim with Truist Securities. Please proceed with your question.

1h 5m 27s

Thank you. Good morning. So going back to your guidance non same store NOI, $0 to $7,000,000,000 in 2025. Just me understand that a little better because you have a lot of projects that are [indiscernible] Pipeline. So I would have thought it would be much higher than 0 to seven Maybe there are some others that I'd be tracking. So maybe you can help us understand that better.

1h 5m 52s

I'll cover that one and Ed, George and Rob, if you want. [indiscernible] If you look at our Lancaster facility in PA, that's due for stabilization end of Q3. So you're going to see a full benefit roll through on Q4. Up in Connecticut, stabilization at the end of Q4. So really not even seeing a full quarter benefit of that You really see that in Q1 of next year. That's being offset by our Kansas City facility coming online. Our Allentown facility come online because at first until they get the sufficient throughput through that new capacity, They run at a bit of a loss to start up, but they ramp up quick they get to stabilization also to offset it. So you're seeing the normal profitability roll in when the two retail, the facilities come online and hit stabilization, but there is there's the timing of it. So we'll get full year benefits of both of those next year. But then you're seeing a little bit of an offset as those two other facilities come online at the end of Q2. And are ramping through the back half of the year.

1h 7m 4s

Yes, I think that's the story. It's just the individual timing of ramp ups of very large developments. That's all in I think as Jay said very well, by the time we get to next year, we're in full full run rate mode. Okay. And this is just a comment, but not sure if there is competitive reasons why you wouldn't want to show like occupancy on these projects, but that would be helpful to people modeling it. And the second question, can you just talk about the yields of 10% to 12% as I understand it for your development projects? It doesn't include the cost of land. I understand like for the St. John project maybe one of your partners contributed to the land. So maybe it doesn't matter for that particular project, but just [indiscernible] if you did include the cost of land, how much impact does that have on these 10% to 12% yield Yes. I'll cover that one to start off. But I mean, you look at if we are buying land to do a project, we do include it in the cost base. If we are renting the land as part of it, we include the rent in our model.

1h 8m 14s

So if or we're just expanding existing land that we've already paid for and included in a previous model. So that's how we look at it. But if we do own the land and include it, we don't include it. But if you want to say how much would affect it, you're unless you're in the middle of Sydney, Australia, it not a major part of the cost and would not significantly change the return metric that we disclose. But to be clear, Kevin, when you look at the supplemental, it includes all incremental costs for that development. So incremental costs would be buying land to [indiscernible] Renting land or leasing land would be an incremental cost That would be in the business case inside the scrub. Land banks that we may have bought ten, twelve who knows how many years ago, that's typically not in there.

1h 9m 4s

That's the only case.

1h 9m 9s

We have reached the end of our question and answer session, which concludes today's teleconference. Thank you for your participation.

Key Insights

Americold achieved strong financial performance in 2024, with a 16% increase in AFFO per share compared to 2023, reaching $1.47 per share for the year. The company is guiding for 2025 AFFO per share in the range of $1.51 to $1.59, representing a midpoint growth of approximately 5%.
The company continues to expand its development pipeline, with over $500 million in growth capital currently in progress and a total pipeline exceeding $1 billion. Key projects include a $79 million import-export hub in Port St. John, Canada, and a $34 million customer-dedicated expansion in Christchurch, New Zealand.
Operationally, Americold reported improvements in same-store NOI, which grew by 11% in 2024, marking the second consecutive year of double-digit growth. Same-store warehouse services margins reached 13%, up nearly seven percentage points from the prior year.
The company is targeting same-store constant currency NOI growth of 4% to 6% in 2025, with economic occupancy expected to remain flat year-over-year and throughput volumes projected to increase by 1% to 2%. Same-store services margins are expected to exceed 12% for the full year.
Americold continues to focus on customer service excellence and strategic partnerships, with fixed commitment storage contracts now accounting for approximately 59% of rent and storage revenue. The company also highlighted its robust new business pipeline, representing over $200 million in probability-weighted revenue opportunities.

Recent Transcripts

AFFO per share increased 16% in 2024, with strong development pipeline and operational improvements.

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$2B	$2.7B	$2.9B	$2.7B	$2.7B
Cost of Revenue	$1.4B	$2.1B	$2.2B	$1.9B	$0
Gross Profit	$551M	$630M	$696M	$771M	$2.7B
Gross Profit %	28%	23%	24%	29%	100%
R&D Expenses	$0.0089	-$0.012	-$0.013	$0	$0

2020

2021

2022

2023

2024

Revenue

$2B

$2.7B

$2.9B

$2.7B

Cost of Revenue

$1.4B

$2.1B

$2.2B

$1.9B

Gross Profit

$551M

$630M

$696M

$771M

$2.7B

Gross Profit %

28%

23%

24%

29%

100%

R&D Expenses

$0.0089

-$0.012

-$0.013

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	$25M	-$30M	-$19M	-$336M	-$95M
Dep. & Amort.	$216M	$322M	$334M	$354M	$361M
Def. Tax	-$14M	-$9.1M	-$23M	-$11M	-$13M
Stock Comp.	$18M	$24M	$27M	$24M	$28M
Chg. in WC	$2.3M	-$56M	-$62M	-$47M	-$63M

2020

2021

2022

2023

2024

Net Income

$25M

-$30M

-$19M

-$336M

-$95M

Dep. & Amort.

$216M

$322M

$334M

$354M

$361M

Def. Tax

-$14M

-$9.1M

-$23M

-$11M

-$13M

Stock Comp.

$18M

$24M

$27M

$24M

$28M

Chg. in WC

$2.3M

-$56M

-$62M

-$47M

-$63M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$621M	$83M	$53M	$60M	$48M
ST Investments	$0	$0	$16M	$1.7M	$0
Cash & ST Inv.	$621M	$83M	$53M	$60M	$48M
Receivables	$324M	$380M	$430M	$426M	$387M
Inventory	$22M	$27M	$29M	$31M	$0

2020

2021

2022

2023

2024

Cash

$621M

$83M

$53M

$60M

$48M

ST Investments

$16M

$1.7M

Cash & ST Inv.

$621M

$83M

$53M

$60M

$48M

Receivables

$324M

$380M

$430M

$426M

$387M

Inventory

$22M

$27M

$29M

$31M

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice. · See all tickers.

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Earnings

Report Date

Feb 20, 2025

Reported Revenue

666.4M

Avg 1d Change

5.25%

Report Period

Q4 2024

Reported EPS

0.37

Implied Move 1d

6.18%

Transcript

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Turning to our full year results. Same store NOI grew over 11 our second year in a row of double digit growth And over the past two years, we've added $120,000,000 of AFFO.

18m 18s

Which is a 40% increase.

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44m 29s

But predicting occupancy at this point, I think anybody would have a problem doing that.

44m 34s

No. But I think long range goal, I mean, we've always said mid-80s.

44m 38s

Oh, sure.

44m 39s

45m 14s

45m 41s

Please proceed with your question.

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50m 3s

Please proceed with your question.

50m 7s

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53m 14s

Please proceed with your question.

53m 18s

Hi, thanks. Good morning. I just wanted to follow-up on that.

53m 21s

Point, I guess. I mean, it sounds like the new business pipeline is solid and that you're still assuming around a 3% rate.

53m 29s

53m 58s

Sure.

53m 59s

54m 22s

55m 21s

55m 47s

56m 34s

57m 17s

Our next question comes from Nick Szilman with Baird. Please proceed with your question.

57m 22s

Hey, good morning guys. Maybe touching a little bit more Rob on the new business sort of pipeline. I know At the end of last year, you're commenting on less aggressively pricing sort of new business.

57m 34s

57m 54s

Sure.

57m 54s

59m 16s

59m 44s

That's helpful. And then maybe Jay, just flushing out some of the seasonality in your assumptions.

59m 49s

1h 5s

1h 47s

Our next question comes from Greg McGinnis Scotiabank. Please proceed with your question.

1h 54s

1h 1m 15s

1h 2m 42s

1h 3m 29s

1h 3m 45s

It's good question. It was a very unique set of circumstances. I mean, it's essentially a DP World project.

1h 3m 53s

1h 5m 12s

And so this is going to be a great project for us and we expect to continue to do more in the future.

1h 5m 21s

Our next question comes from Ki Bin Kim with Truist Securities. Please proceed with your question.

1h 5m 27s

1h 5m 52s

1h 7m 4s

1h 8m 14s

1h 9m 4s

That's the only case.

1h 9m 9s

We have reached the end of our question and answer session, which concludes today's teleconference. Thank you for your participation.

Key Insights

Americold achieved strong financial performance in 2024, with a 16% increase in AFFO per share compared to 2023, reaching $1.47 per share for the year. The company is guiding for 2025 AFFO per share in the range of $1.51 to $1.59, representing a midpoint growth of approximately 5%.
The company continues to expand its development pipeline, with over $500 million in growth capital currently in progress and a total pipeline exceeding $1 billion. Key projects include a $79 million import-export hub in Port St. John, Canada, and a $34 million customer-dedicated expansion in Christchurch, New Zealand.
Operationally, Americold reported improvements in same-store NOI, which grew by 11% in 2024, marking the second consecutive year of double-digit growth. Same-store warehouse services margins reached 13%, up nearly seven percentage points from the prior year.
The company is targeting same-store constant currency NOI growth of 4% to 6% in 2025, with economic occupancy expected to remain flat year-over-year and throughput volumes projected to increase by 1% to 2%. Same-store services margins are expected to exceed 12% for the full year.
Americold continues to focus on customer service excellence and strategic partnerships, with fixed commitment storage contracts now accounting for approximately 59% of rent and storage revenue. The company also highlighted its robust new business pipeline, representing over $200 million in probability-weighted revenue opportunities.

Americold Realty Trust, Inc. Price & Performance (COLD)

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Key Insights

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News & Market Insights

Go Deeper

Recent Transcripts

Earnings

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Reported Revenue

Avg 1d Change

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Reported EPS

Implied Move 1d

Transcript

Key Insights