Americold Realty Trust 10-Q for FY2023 Q3

Americold Realty Trust (COLD)

10-Q 2023-11-02 For: 2023-09-30

Added on April 06, 2026

About this 10-Q

Americold Realty Trust filed this 10-Q on November 2, 2023, covering the quarter ended September 30, 2023 (FY2023 Q3).

Headline figures

Quarter ended September 30, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $667.94M; down 11.9% from $757.78M a year earlier
Net loss: $2.09M; compared with a net loss of $8.91M a year earlier
Diluted EPS: -$0.01; compared with -$0.03 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended	September 30, 2023


Maryland		93-0295215
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification Number)

10 Glenlake Parkway,	Suite 600, South Tower
Atlanta	Georgia	30328
(Address of principal executive offices)		(Zip Code)


Class						Outstanding at November 1, 2023
Common Stock, $0.01 par value per share						283,519,907


TABLE OF CONTENTS
			Page
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements			5
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			30
Item 3. Quantitative and Qualitative Disclosures About Market Risk			66
Item 4. Controls and Procedures			66

PART II - OTHER INFORMATION
Item 1. Legal Proceedings			68
Item 1A. Risk Factors			68
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			69
Item 3. Defaults Upon Senior Securities			70
Item 4. Mine Safety Disclosures			70
Item 5. Other Information			70
Item 6. Exhibits			71

SIGNATURES			72


Item 1. Financial Statements
Americold Realty Trust, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except shares and per share amounts)
	September 30, 2023		December 31, 2022
Assets
Property, buildings and equipment:
Land	$	794,776	$	786,975
Buildings and improvements	4,390,940		4,245,607
Machinery and equipment	1,501,899		1,407,874
Assets under construction	452,557		526,811
	7,140,172		6,967,267
Accumulated depreciation	(2,107,133)		(1,901,450)
Property, buildings and equipment – net	5,033,039		5,065,817

Operating lease right-of-use assets	342,031		352,553
Accumulated depreciation – operating leases	(88,851)		(76,334)
Operating leases – net	253,180		276,219

Financing leases:
Buildings and improvements	13,548		13,546
Machinery and equipment	137,038		127,009
	150,586		140,555
Accumulated depreciation – financing leases	(71,121)		(57,626)
Financing leases – net	79,465		82,929

Cash, cash equivalents and restricted cash	53,831		53,063

Accounts receivable – net of allowance of $18,470 and $15,951 at September 30, 2023 and December 31, 2022, respectively	424,540		430,042
Identifiable intangible assets – net	897,238		925,223
Goodwill	1,022,989		1,033,637
Investments in partially owned entities and other	36,249		78,926
Other assets	213,188		158,705

Total assets	$	8,013,719	$	8,104,561

Liabilities and equity
Liabilities:
Borrowings under revolving line of credit	$	359,201	$	500,052
Accounts payable and accrued expenses	501,662		557,540
Senior unsecured notes and term loans – net of deferred financing costs of $11,173 and $13,044, in the aggregate, at September 30, 2023 and December 31, 2022, respectively	2,560,927		2,569,281
Sale-leaseback financing obligations	164,372		171,089
Financing lease obligations	70,170		77,561
Operating lease obligations	245,034		264,634
Unearned revenue	29,865		32,046
Pension and postretirement benefits	2,398		1,531
Deferred tax liability – net	125,890		135,098
Multi-employer pension plan withdrawal liability	7,550		7,851

Total liabilities	4,067,069		4,316,683
Commitments and contingencies (Note 8)
Equity
Stockholders’ equity:
Common stock, $0.01 par value per share – 500,000,000 authorized shares; 283,517,013 and 269,814,956 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively	2,835		2,698
Paid-in capital	5,622,152		5,191,969
Accumulated deficit and distributions in excess of net earnings	(1,706,591)		(1,415,198)
Accumulated other comprehensive income (loss)	11,459		(6,050)
Total stockholders’ equity	3,929,855		3,773,419
Noncontrolling interests:
Noncontrolling interests in Operating Partnership	16,795		14,459
Total equity	3,946,650		3,787,878

Total liabilities and equity	$	8,013,719	$	8,104,561
See accompanying notes to Condensed Consolidated Financial Statements.


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the transition period from to ,


Americold Realty Trust, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share amounts)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Revenues:
Rent, storage and warehouse services	$	602,605	$	598,977	$	1,778,827	$	1,704,281
Transportation services	55,642		76,367		181,792		237,168
Third-party managed services	9,692		82,436		33,419		251,782

Total revenues	667,939		757,780		1,994,038		2,193,231
Operating expenses:
Rent, storage and warehouse services cost of operations	424,773		432,315		1,253,326		1,240,376
Transportation services cost of operations	45,983		65,531		150,664		204,218
Third-party managed services cost of operations	8,063		78,776		29,311		240,900

Depreciation and amortization	89,728		83,669		259,644		248,979
Selling, general and administrative	52,383		57,119		169,023		170,994
Acquisition, cyber incident and other, net	13,931		4,874		48,313		20,612
Impairment of indefinite and long-lived assets	—		6,616		—		6,616
Loss (gain) from sale of real estate	78		5,710		(2,259)		5,710
Total operating expenses	634,939		734,610		1,908,022		2,138,405

Operating income	33,000		23,170		86,016		54,826

Other (expense) income:
Interest expense	(35,572)		(30,402)		(106,426)		(82,720)
Loss on debt extinguishment, modifications and termination of derivative instruments	(683)		(1,040)		(1,855)		(2,284)





(Loss) gain from investments in partially owned entities	(259)		44		(1,616)		(779)
Impairment of related party loan receivable	—		—		(21,972)		—
Loss on put option	—		—		(56,576)		—
Other, net	723		(2,593)		1,741		(1,197)
Loss from continuing operations before income taxes	(2,791)		(10,821)		(100,688)		(32,154)

Income tax (expense) benefit:
Current	(1,981)		(1,006)		(5,881)		(3,004)
Deferred	2,473		4,374		7,553		19,149
Total income tax benefit	492		3,368		1,672		16,145

Net (loss) income:
Loss from continuing operations	(2,299)		(7,453)		(99,016)		(16,009)
Gain (loss) from discontinued operations, net of tax	203		(1,484)		(10,453)		(6,420)
Net loss	$	(2,096)	$	(8,937)	$	(109,469)	$	(22,429)
Net loss attributable to noncontrolling interests	(8)		(25)		(95)		(45)
Net loss attributable to Americold Realty Trust, Inc.	$	(2,088)	$	(8,912)	$	(109,374)	$	(22,384)

Weighted average common stock outstanding – basic	278,137		269,586		273,217		269,467
Weighted average common stock outstanding – diluted	278,137		269,586		273,217		269,467

Net loss per common share from continuing operations - basic	$	(0.01)	$	(0.03)	$	(0.36)	$	(0.06)
Net loss per common share from discontinued operations - basic	—		—		(0.04)		(0.02)
Basic loss per share	$	(0.01)	$	(0.03)	$	(0.40)	$	(0.08)

Net loss per common share from continuing operations - diluted	$	(0.01)	$	(0.03)	$	(0.36)	$	(0.06)
Net loss per common share from discontinued operations - diluted	—		—		(0.04)		(0.02)
Diluted loss per share	$	(0.01)	$	(0.03)	$	(0.40)	$	(0.08)


Americold Realty Trust, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Loss (Unaudited)
(In thousands)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net loss	$	(2,096)	$	(8,937)	$	(109,469)	$	(22,429)
Other comprehensive (loss) income - net of tax:
Adjustment to accrued pension liability	(832)		66		(522)		20
Change in unrealized net loss on foreign currency	(10,467)		(25,038)		(4,145)		(37,720)
Unrealized gain on cash flow hedges	12,381		8,274		22,176		9,984
Other comprehensive income (loss) - net of tax attributable to Americold Realty Trust, Inc.	1,082		(16,698)		17,509		(27,716)
Other comprehensive income (loss) attributable to noncontrolling interests	101		(53)		178		(103)
Total comprehensive loss	$	(913)	$	(25,688)	$	(91,782)	$	(50,248)

See accompanying notes to Condensed Consolidated Financial Statements.


Americold Realty Trust, Inc. and Subsidiaries
Condensed Consolidated Statements of Equity (Unaudited)
(In thousands, except shares and per share amounts)

	Common Stock					Accumulated Deficit and Distributions in Excess of Net Earnings		Accumulated Other Comprehensive (Loss) Income		Noncontrolling Interests in Operating Partnership

	Number of Shares	Par Value		Paid-in Capital
												Total
Balance - December 31, 2022	269,814,956	$	2,698	$	5,191,969	$	(1,415,198)	$	(6,050)	$	14,459	$	3,787,878
Net loss	—	—		—		(2,562)		—		(9)		(2,571)
Other comprehensive loss	—	—		—		—		(11,687)		(35)		(11,722)
Distributions on common stock, restricted stock and OP units	—	—		—		(59,692)		—		(240)		(59,932)
Stock-based compensation expense	—	—		5,273		—		—		1,697		6,970

Common stock issuance related to stock-based payment plans, net of shares withheld for employee taxes	221,084	2		(801)		—		—		—		(799)
Common stock issuance related to employee stock purchase plan	60,393	1		1,452		—		—		—		1,453
Balance - March 31, 2023	270,096,433	$	2,701	$	5,197,893	$	(1,477,452)	$	(17,737)	$	15,872	$	3,721,277
Net loss	—	—		—		(104,724)		—		(78)		(104,802)
Other comprehensive income	—	—		—		—		28,114		112		28,226
Distributions on common stock, restricted stock and OP units	—	—		—		(59,696)		—		(225)		(59,921)
Stock-based compensation expense	—	—		3,476		—		—		1,163		4,639
Common stock issuance related to stock-based payment plans, net of shares withheld for employee taxes	15,035	—		340		—		—		—		340

Conversion of OP units to common stock	74,808	1		2,182		—		—		(2,183)		—
Balance - June 30, 2023	270,186,276	$	2,702	$	5,203,891	$	(1,641,872)	$	10,377	$	14,661	$	3,589,759
Net loss	—	—		—		(2,088)		—		(8)		(2,096)
Other comprehensive income	—	—		—		—		1,082		101		1,183
Distributions on common stock, restricted stock and OP units	—	—		—		(62,631)		—		(237)		(62,868)
Stock-based compensation expense	—	—		3,925		—		—		2,278		6,203
Common stock issuance related to stock-based payment plans, net of shares withheld for employee taxes	20,030	—		(43)		—		—		—		(43)
Common stock issuance related to employee stock purchase plan	65,802	1		1,593		—		—		—		1,594
Net proceeds from issuance of common stock	13,244,905	132		412,786		—		—		—		412,918

Balance - September 30, 2023	283,517,013	$	2,835	$	5,622,152	$	(1,706,591)	$	11,459	$	16,795	$	3,946,650


Americold Realty Trust, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)


	Nine Months Ended September 30,
	2023		2022
Operating activities:
Net loss	$	(109,469)	$	(22,429)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	259,644		248,979


Loss on debt extinguishment, modifications and termination of derivative instruments	1,855		2,284

Loss from investments in partially owned entities	5,727		7,199


Gain on extinguishment of New Market Tax Credit structure	—		(3,410)
Loss on deconsolidation of subsidiary contributed to LATAM joint venture	—		4,148
Stock-based compensation expense	17,812		22,101
Deferred income taxes benefit	(7,553)		(19,149)
(Gain) loss from sale of real estate	(2,259)		5,710

Impairment of indefinite and long-lived assets	—		6,616
Provision for doubtful accounts receivable	3,241		3,866
Impairment of related party loan receivable	21,972		—
Loss on put option	56,576		—
Loss on classification of Comfrio as held for sale	4,616		—

Other reconciling items	3,826		9,685
Changes in operating assets and liabilities:
Accounts receivable	(2,436)		(84,761)
Accounts payable and accrued expenses	(61,157)		(19,382)
Other	818		21,426
Net cash provided by operating activities	193,213		182,883

Investing activities:
Additions to property, buildings and equipment	(188,317)		(254,112)
Business combinations and deferred consideration paid	(46,652)		(15,228)
Acquisitions of property, buildings and equipment	(43,577)		(14,581)
Investments in partially owned entities and other	(20,025)		(4,427)

Net payments for sale of business (discontinued operations)	(4,616)		—
Proceeds from sale of property, buildings and equipment	7,913		340

Proceeds from sale of investments in partially owned entities	36,896		—
Net cash used in investing activities	(258,378)		(288,008)

Financing activities:


Distributions paid on common stock, restricted stock units and noncontrolling interests in OP	(179,562)		(179,623)
Proceeds from stock options exercised	1,734		887
Proceeds from employee stock purchase plan	3,047		3,880
Remittance of withholding taxes related to employee stock-based transactions	(2,236)		(4,031)
Proceeds from revolving line of credit	545,421		404,604
Repayment on revolving line of credit	(679,155)		(303,860)



Repayment of sale-leaseback financing obligations	(6,717)		(5,580)
Repayment of financing lease obligations	(26,390)		(24,758)
Payment of debt issuance and extinguishment costs	—		(11,593)
Repayment of term loan and mortgage notes	—		(5,453)
Proceeds from term loan	—		200,000

Net proceeds from issuance of common stock	412,918		—


Net cash provided by financing activities	69,060		74,473
Net increase (decrease) in cash, cash equivalents and restricted cash	3,895		(30,652)
Effect of foreign currency translation on cash, cash equivalents and restricted cash	(3,127)		(6,613)
Cash, cash equivalents and restricted cash:
Beginning of period	53,063		82,958
End of period	$	53,831	$	45,693


	September 30, 2023		December 31, 2022
	Carrying Amount		Carrying Amount
Senior Unsecured Notes	$	1,742,975	$	1,752,875
Senior Unsecured Term Loans	829,125		829,450
Senior Unsecured Revolving Credit Facility	359,201		500,052
Total principal amount of indebtedness	$	2,931,301	$	3,082,377
Less: unamortized deferred financing costs	(11,173)		(13,044)
Total indebtedness, net of deferred financing costs	$	2,920,128	$	3,069,333


			September 30, 2023				December 31, 2022
	Stated Maturity Date	Contractual Interest Rate	Borrowing Currency		Carrying Amount (USD)		Borrowing Currency		Carrying Amount (USD)
Series A Notes	01/2026	4.68%	$	200,000	$	200,000	$	200,000	$	200,000
Series B Notes	01/2029	4.86%	$	400,000	400,000		$	400,000	400,000
Series C Notes	01/2030	4.10%	$	350,000	350,000		$	350,000	350,000
Series D Notes	01/2031	1.62%	€	400,000	422,920		€	400,000	428,200
Series E Notes	01/2033	1.65%	€	350,000	370,055		€	350,000	374,675
Total Senior Unsecured Notes					$	1,742,975			$	1,752,875


	September 30, 2023					December 31, 2022
	Contractual Interest Rate(1)	Borrowing Currency		Carrying Amount (USD)			Contractual Interest Rate(1)	Borrowing Currency		Carrying Amount (USD)
Tranche A-1	SOFR + 0.94%	$	375,000	$	375,000		SOFR + 0.95%	$	375,000	$	375,000
Tranche A-2	CDOR + 0.94%	C$	250,000	184,125			CDOR + 0.95%	C$	250,000	184,450
Delayed Draw Tranche A-3	SOFR + 0.94%	$	270,000	270,000			SOFR + 0.95%	$	270,000	270,000



Total Senior Unsecured Term Loan Facility		$	829,125					$	829,450


	September 30, 2023					December 31, 2022
Denomination of Draw	Contractual Interest Rate (1)	Borrowing Currency		Carrying Amount (USD)			Contractual Interest Rate(1)	Borrowing Currency		Carrying Amount (USD)
U.S. dollar	SOFR + 0.84%	$	47,000	$	47,000		SOFR + 0.85%	$	225,000	$	225,000
Australian dollar	BBSW + 0.84%	A$	189,000	121,622			BBSW + 0.85%	A$	146,000	99,470
British pound sterling	SONIA + 0.84%	£	78,000	95,152			SONIA + 0.85%	£	76,500	92,435
Canadian dollar	CDOR + 0.84%	C$	35,000	25,778			CDOR + 0.85%	C$	50,000	36,890
Euro	EURIBOR + 0.84%	€	58,500	61,852			EURIBOR + 0.85%	€	35,500	38,003
New Zealand dollar	BKBM + 0.84%	NZD	13,000	7,797			BKBM + 0.85%	NZD	12,998	8,254
Total Senior Unsecured Revolving Credit Facility		$	359,201					$	500,052


Notional	Fixed Base Interest Rate Swap	Effective Date	Expiration Date	Debt Instrument	Fair Value as of September 30, 2023		Fair Value as of December 31, 2022
$200.0 million USD	3.65%	9/23/2022	12/29/2023	Tranche A-1	$	840	$	2,240
$200.0 million USD	3.05%	12/29/2023	7/30/2027	Tranche A-1	8,367		2,328
$175.0 million USD	3.47%	11/30/2022	7/30/2027	Tranche A-1	5,782		2,020
$270.0 million USD	3.05%	11/01/2022	12/31/2027	Delayed Draw Tranche A-3	13,706		8,034
$250.0 million CAD	3.59%	9/23/2022	12/31/2027	Tranche A-2	7,866		950
			Total		$	36,561	$	15,572


September 30, 2023
Offsetting of Derivative Assets
							Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Received		Net Amount
Derivatives	$	50,530	$	—	$	50,530	$	—	$	—	$	50,530


December 31, 2022
Offsetting of Derivative Assets
							Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Received		Net Amount
Derivatives	$	23,520	$	—	$	23,520	$	—	$	—	$	23,520


		Fair Value
	Fair Value Hierarchy	September 30, 2023		December 31, 2022

Measured at fair value during the current reporting period:




Interest rate swap assets	Level 2	$	36,561	$	15,572
Cross currency swap assets	Level 2	$	13,969	$	7,948











Disclosed at fair value:
Senior unsecured notes, term loans, and revolving credit facility	Level 3	$	2,663,442	$	2,829,574


	Three Months Ended September 30, 2023
	North America		Europe		Asia-Pacific		South America		Total
Warehouse rent and storage	$	222,269	$	20,692	$	20,994	$	2,062	$	266,017
Warehouse services(1)	266,387		25,460		31,072		1,178		324,097
Transportation	30,249		16,078		8,671		644		55,642
Third-party managed	4,029		—		5,663		—		9,692

Total revenues (2)	522,934		62,230		66,400		3,884		655,448
Lease revenue (3)	11,091		1,400		—		—		12,491
Total revenues from contracts with all customers	$	534,025	$	63,630	$	66,400	$	3,884	$	667,939


			Derivative Assets						Derivative Liabilities
			September 30, 2023				December 31, 2022				September 30, 2023				December 31, 2022


Designated derivatives
Foreign exchange contracts			$	13,969			$	7,948			$	—			$	—
Interest rate contracts			36,561				15,572				—				—



Total fair value of derivatives	$	50,530			$	23,520			$	—			$	—


	Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative				Location of Gain or (Loss) Reclassified from AOCI into Income	Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income

	Three Months Ended September 30,					Three Months Ended September 30,
	2023		2022			2023		2022

Interest rate contracts	$	16,396	$	10,808	Interest expense	$	3,959	$	(21)
Interest rate contracts	—		—		Loss on debt extinguishment, modifications and termination of derivative instruments(1)	(633)		(627)
Foreign exchange contracts	3,229		7,141		Foreign currency exchange loss, net	3,776		10,127
Foreign exchange contracts	—		—		Interest expense	142		196

Total designated cash flow hedges	$	19,625	$	17,949		$	7,244	$	9,675


	Three Months Ended September 30, 2022
	North America		Europe		Asia-Pacific		South America		Total
Warehouse rent and storage	$	211,708	$	20,237	$	15,218	$	1,984	$	249,147
Warehouse services(1)	274,266		28,302		34,925		1,236		338,729
Transportation	39,456		28,023		8,376		512		76,367
Third-party managed	77,083		—		5,353		—		82,436

Total revenues (2)	602,513		76,562		63,872		3,732		746,679
Lease revenue (3)	9,798		1,303		—		—		11,101
Total revenues from contracts with all customers	$	612,311	$	77,865	$	63,872	$	3,732	$	757,780


	Nine Months Ended September 30, 2023
	North America		Europe		Asia-Pacific		South America		Total
Warehouse rent and storage	$	664,341	$	62,401	$	56,148	$	5,638	$	788,528
Warehouse services(1)	774,286		76,154		99,522		3,766		953,728
Transportation	94,310		59,961		25,603		1,918		181,792
Third-party managed	16,370		—		17,049		—		33,419

Total revenues (2)	1,549,307		198,516		198,322		11,322		1,957,467
Lease revenue (3)	32,406		4,165		—		—		36,571
Total revenues from contracts with all customers	$	1,581,713	$	202,681	$	198,322	$	11,322	$	1,994,038


	Nine Months Ended September 30, 2022
	North America		Europe		Asia-Pacific		South America		Total
Warehouse rent and storage	$	585,774	$	56,662	$	49,783	$	7,456	$	699,675
Warehouse services(1)	768,264		90,924		108,266		4,471		971,925
Transportation	116,690		96,167		22,798		1,513		237,168
Third-party managed	236,153		—		15,629		—		251,782

Total revenues (2)	1,706,881		243,753		196,476		13,440		2,160,550
Lease revenue (3)	28,506		4,175		—		—		32,681
Total revenues from contracts with all customers	$	1,735,387	$	247,928	$	196,476	$	13,440	$	2,193,231


	Spot Foreign exchange rates	Average foreign exchange rates three months ended	Average foreign exchange rates for the nine months ended	Spot Foreign exchange rates	Average foreign exchange rates for the three months ended (1)	Average foreign exchange rate for the nine months ended (1)
	September 30, 2023			September 30, 2022
Argentinian peso	0.003	0.003	0.004	0.007	0.007	0.008
Australian dollar	0.644	0.654	0.669	0.640	0.683	0.707
Brazilian real	0.199	0.205	0.200	0.185	0.191	0.195
British Pound	1.220	1.266	1.244	1.117	1.177	1.259
Canadian dollar	0.737	0.745	0.743	0.723	0.766	0.780
Chilean Peso	0.001	0.001	0.001	0.001	0.001	0.001
Euro	1.057	1.088	1.083	0.980	1.007	1.065
New Zealand dollar	0.600	0.605	0.618	0.560	0.613	0.647
Polish Zloty	0.229	0.242	0.236	0.202	0.213	0.228


Same Store Warehouses			219
Non-Same Store Warehouses (1)			19
Third-Party Managed Warehouses			5
Total Warehouses			243


	Three Months Ended September 30,									Change
	2023 Actual			2023 Constant Currency(1)			2022 Actual			Actual		Constant Currency
	(Dollars in thousands)
Rent and storage	$	278,508		$	280,319		$	260,248		7.0	%	7.7	%
Warehouse services	324,097			324,974			338,729			(4.3)	%	(4.1)	%
Total warehouse segment revenues	602,605			605,293			598,977			0.6	%	1.1	%

Power	41,711			41,867			48,593			(14.2)	%	(13.8)	%
Other facilities costs (2)	61,603			61,983			58,792			4.8	%	5.4	%
Labor	258,609			260,003			256,811			0.7	%	1.2	%
Other services costs (3)	62,850			62,870			68,119			(7.7)	%	(7.7)	%
Total warehouse segment cost of operations	$	424,773		$	426,723		$	432,315		(1.7)	%	(1.3)	%

Warehouse segment contribution (NOI)	177,832			178,570			166,662			6.7	%	7.1	%
Warehouse rent and storage contribution (NOI)	175,194			176,469			152,863			14.6	%	15.4	%
Warehouse services contribution (NOI)	2,638			2,101			13,799			(80.9)	%	(84.8)	%

Total warehouse segment margin	29.5		%	29.5		%	27.8		%	169 bps		168 bps
Rent and storage margin	62.9		%	63.0		%	58.7		%	417 bps		422 bps
Warehouse services margin	0.8		%	0.6		%	4.1		%	-326 bps		-343 bps


	Three Months Ended September 30,						Change
Units in thousands except per pallet and site number data - unaudited	2023			2022
Number of same store sites	219			219			n/a
Same store rent and storage:

Economic occupancy
Average occupied economic pallets	4,230			4,131			2.4	%
Economic occupancy percentage	84.0		%	80.5		%	345 bps
Same store rent and storage revenues per average economic occupied pallet	$	60.98		$	59.45		2.6	%
Constant currency same store rent and storage revenues per average economic occupied pallet	$	61.52		$	59.45		3.5	%

Physical occupancy
Average physical occupied pallets	3,816			3,839			(0.6)	%
Average physical pallet positions	5,036			5,130			(1.8)	%
Physical occupancy percentage	75.8		%	74.8		%	93 bps
Same store rent and storage revenues per average physical occupied pallet	$	67.58		$	63.98		5.6	%
Constant currency same store rent and storage revenues per average physical occupied pallet	$	68.19		$	63.98		6.6	%

Same store warehouse services:
Throughput pallets (in thousands)	8,798			9,665			(9.0)	%
Same store warehouse services revenues per throughput pallet	$	35.09		$	33.24		5.6	%
Constant currency same store warehouse services revenues per throughput pallet	$	35.25		$	33.24		6.1	%

Number of non-same store sites	19			21			n/a
Non-same store rent and storage:

Economic occupancy
Average economic occupied pallets	282			226			n/r
Economic occupancy percentage	70.6		%	72.5		%	n/r
Non-same store rent and storage revenues per average economic occupied pallet	$	73.08		$	64.83		n/r
Constant currency non-same store rent and storage revenues per average economic occupied pallet	$	71.31		$	64.83		n/r

Physical occupancy
Average physical occupied pallets	245			204			n/r
Average physical pallet positions	399			311			n/r
Physical occupancy percentage	61.5		%	65.5		%	n/r
Non-same store rent and storage revenues per average physical occupied pallet	$	83.99		$	71.83		n/r
Constant currency non-same store rent and storage revenues per average physical occupied pallet	$	81.95		$	71.83		n/r

Non-same store warehouse services:
Throughput pallets (in thousands)	572			550			n/r
Non-same store warehouse services revenues per throughput pallet	$	26.84		$	31.85		n/r
Constant currency non-same store warehouse services revenues per throughput pallet	$	25.95		$	31.85		n/r


We calculate funds from operations, or FFO, in accordance with the standards established by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. NAREIT defines FFO as net income or loss determined in accordance with U.S. GAAP, excluding extraordinary items as defined under U.S. GAAP and gains or losses from sales of previously depreciated operating real estate and other assets, plus specified non-cash items, such as real estate asset depreciation and amortization impairment charge on real estate related assets and our share of reconciling items for partially owned entities. We believe that FFO is helpful to investors as a supplemental performance measure because it excludes the effect of depreciation, amortization and gains or losses from sales of real estate, all of which are based on historical costs, which implicitly assumes that the value of real estate diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, FFO can facilitate comparisons of operating performance between periods and among other equity REITs..
We calculate core funds from operations, or Core FFO, as NAREIT FFO adjusted for the effects of gain or loss on the sale of non-real estate assets, acquisition, cyber incident and other, net, goodwill impairment (when applicable), loss on debt extinguishment, modifications and termination of derivative instruments, foreign currency exchange losses, gain or loss from discontinued operations held for sale, impairment of related party loan receivable, loss on fair value of put, gain on extinguishment of New Market Tax Credit structure, loss on deconsolidation of subsidiary contributed to LATAM joint venture, and gain from sale of LATAM joint venture. We also adjust for the impact of Core FFO on our share of reconciling items for partially owned entities. We believe that Core FFO is helpful to investors as a supplemental performance measure because it excludes the effects of certain items which can create significant earnings volatility, but which do not directly relate to our core business operations. We believe Core FFO can facilitate comparisons of operating performance between periods, while also providing a more meaningful predictor of future earnings potential.
However, because NAREIT FFO and Core FFO add back real estate depreciation and amortization and do not capture the level of maintenance capital expenditures necessary to maintain the operating performance of our properties, both of which have material economic impacts on our results from operations, we believe the utility of NAREIT FFO and Core FFO as a measure of our performance may be limited.
We calculate adjusted funds from operations, or Adjusted FFO, as Core FFO adjusted for the effects of amortization of deferred financing costs and pension withdrawal liability, amortization of above or below market leases, straight-line net rent, benefit from deferred income taxes, stock-based compensation expense, and maintenance capital expenditures. We also adjust for AFFO attributable to our share of reconciling items of partially owned entities and discontinued operations. We believe that Adjusted FFO is helpful to investors as a meaningful supplemental comparative performance measure of our ability to make incremental capital investments in our business and to assess our ability to fund distribution requirements from our operating activities.
FFO, Core FFO and Adjusted FFO are used by management, investors and industry analysts as supplemental measures of operating performance of equity REITs. FFO, Core FFO and Adjusted FFO should be evaluated along with U.S. GAAP net income and net income per diluted share (the most directly comparable U.S. GAAP measures) in evaluating our operating performance. FFO, Core FFO and Adjusted FFO do not represent net income or cash flows from operating activities in accordance with U.S. GAAP and are not indicative of our results of operations or cash flows from operating activities as disclosed in our condensed consolidated statements of operations included elsewhere in this Quarterly Report on Form 10-Q. FFO, Core FFO and Adjusted FFO should be considered as supplements, but not alternatives, to our net income or cash flows from operating activities as indicators of our operating performance. Moreover, other REITs may not calculate FFO in accordance with the NAREIT definition or may interpret the NAREIT definition differently than we do. Accordingly, our FFO may not be comparable to FFO as calculated by other REITs. In addition, there is no industry definition of Core FFO or Adjusted FFO and, as a result, other REITs may also calculate Core FFO or Adjusted FFO, or other similarly-captioned metrics, in a manner different than we do. The table below reconciles FFO, Core FFO and Adjusted FFO to net (loss) income, which is the most directly comparable financial measure calculated in accordance with U.S. GAAP.


Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and Adjusted FFO
(In thousands)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net loss	$	(2,096)	$	(8,937)	$	(109,469)	$	(22,429)
Adjustments:
Real estate related depreciation	56,373		53,139		165,654		157,077
Loss (gain) on sale of real estate	78		5,710		(2,259)		5,710
Net (gain) loss on asset disposals	(25)		893		(25)		960

Impairment charges on certain real estate assets	—		3,407		—		3,407
Our share of reconciling items related to partially owned entities	290		822		1,425		3,201
NAREIT FFO(b)	54,620		55,034		55,326		147,926


Adjustments:
Net (gain) loss on sale of non-real estate assets	(296)		310		413		147


Acquisition, cyber incident and other, net	13,931		4,874		48,313		20,612
Goodwill impairment	—		3,209		—		3,209







Loss on debt extinguishment, modifications and termination of derivative instruments	683		1,040		1,855		2,284

Foreign currency exchange loss	705		2,488		459		3,453
Gain on extinguishment of New Market Tax Credit structure	—		—		—		(3,410)
Loss on deconsolidation of subsidiary contributed to LATAM joint venture	—		—		—		4,148

Our share of reconciling items related to partially owned entities	147		136		248		447
(Gain) loss from discontinued operations, net of tax	(203)		—		8,072		—
Impairment of related party receivable	—		—		21,972		—
Loss on put option	—		—		56,576		—
Gain on sale of LATAM joint venture	—		—		(304)		—
Core FFO applicable to common stockholders(b)	69,587		67,091		192,930		178,816
Adjustments:
Amortization of deferred financing costs and pension withdrawal liability	1,286		1,222		3,805		3,528
Amortization of below/above market leases	369		540		1,146		1,597

Straight-line net rent	544		133		414		414
Deferred income taxes benefit	(2,473)		(4,374)		(7,553)		(19,149)
Stock-based compensation expense	6,203		6,720		17,812		22,101
Non-real estate depreciation and amortization	33,355		30,530		93,990		91,902
Maintenance capital expenditures (a)	(20,907)		(22,586)		(59,741)		(58,810)
Our share of reconciling items related to partially owned entities	198		57		805		1,663
Adjusted FFO applicable to common stockholders(b)	$	88,162	$	79,333	$	243,608	$	222,062


	Recasted Three Months Ended September 30,	Recasted Nine Months Ended September 30,
(in thousands)	2022	2023	2022
NAREIT FFO	$54,466	$54,694	$145,631
Core FFO applicable to common stockholders	$68,005	$194,631	$182,922
Adjusted FFO applicable to common stockholders	$80,208	$245,225	$224,291


We calculate NAREIT EBITDA for Real Estate, or EBITDAre, in accordance with the standards established by the Board of Governors of NAREIT, defined as, net loss before interest expense, income tax benefit, depreciation and amortization, gain or loss on sale of real estate, and adjustment to reflect share of EBITDAre of partially owned entities. EBITDAre is a measure commonly used in our industry, and we present EBITDAre to enhance investor understanding of our operating performance. We believe that EBITDAre provides investors and analysts with a measure of operating results unaffected by differences in capital structures, capital investment cycles and useful life of related assets among otherwise comparable companies.
We also calculate our Core EBITDA as EBITDAre further adjusted for acquisition, cyber incident and other, net, loss from investments in partially owned entities, impairment of indefinite and long-lived assets (when applicable), foreign currency exchange loss, stock-based compensation expense, loss on debt extinguishment, modifications and termination of derivative instruments, net gain or loss on other asset disposals, reduction in EBITDAre from partially owned entities, impairment of related party receivable, loss on fair value of put, gain on extinguishment of New Market Tax Credit structure, and loss on deconsolidation of subsidiary contributed to LATAM joint venture, gain or loss from discontinued operations held for sale and gain on sale of LATAM joint venture. We believe that the presentation of Core EBITDA provides a measurement of our operations that is meaningful to investors because it excludes the effects of certain items that are otherwise included in EBITDAre but which we do not believe are indicative of our core business operations. EBITDAre and Core EBITDA are not measurements of financial performance under U.S. GAAP, and our EBITDAre and Core EBITDA may not be comparable to similarly titled measures of other companies. You should not consider our EBITDAre and Core EBITDA as alternatives to net income or cash flows from operating activities determined in accordance with U.S. GAAP. Our calculations of EBITDAre and Core EBITDA have limitations as analytical tools, including:


We use EBITDAre and Core EBITDA as measures of our operating performance and not as measures of liquidity. The table below reconciles EBITDAre and Core EBITDA to net (loss) income, which is the most directly comparable financial measure calculated in accordance with U.S. GAAP.


Debt Summary:
Fixed rate(1)	$	2,572,100
Variable rate - unhedged	359,201
Total senior unsecured notes, term loans and borrowings under revolving line of credit	2,931,301

Sale-leaseback financing obligations	164,372
Financing lease obligations	70,170
Total debt and debt-like obligations	$	3,165,843

Percent of total debt and debt-like obligations:
Fixed rate	89		%
Variable rate	11		%

Effective interest rate as of September 30, 2023	4.02		%


Year ended:
2023	$	—
2024	—
2025	—
2026	934,201
2027	—
2028 - Thereafter	1,997,100
Aggregate principal amount of indebtedness	2,931,301
Less: unamortized deferred financing costs	(11,173)
Total indebtedness, net of deferred financing costs	$	2,920,128


Exhibit No.						Description
10.1						Offer Letter, dated as of July 24, 2023, by and between the Company and Bryan Verbarendse (incorporated by reference to Exhibit 10.1 to Americold Realty Trust's Current Report on Form 8-K filed on August 28, 2023 (File No. 001-34723))
31.1						Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 - Americold Realty Trust
31.2						Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 - Americold Realty Trust
32.1						Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - Americold Realty Trust
32.2						Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - Americold Realty Trust

101						The following financial statements of Americold Realty Trust’s Form 10-Q for the quarter ended September 30, 2023, formatted in XBRL interactive data files: (i) Condensed Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022; (ii) Condensed Consolidated Income Statements for the three and nine months ended September 30, 2023 and 2022; (iii) Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2023 and 2022; (iv) Condensed Consolidated Statements of Equity for the three and nine months ended September 30, 2023 and 2022; (v) Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2023 and 2022; and (vi) Notes to Condensed Consolidated Financial Statements.
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).


/s/ George F. Chappelle Jr.
George F. Chappelle Jr.
Chief Executive Officer and Director


/s/ Marc J. Smernoff
Marc J. Smernoff
Chief Financial Officer, Treasurer and Executive Vice President