8-K
AMERICOLD REALTY TRUST (COLD)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 8, 2024
Americold Realty Trust, Inc.
(Exact name of registrant as specified in its charter)
| Maryland | 001-34723 | 93-0295215 |
|---|---|---|
| (State or other jurisdiction<br><br>of incorporation) | (Commission File Number) | (IRS Employer<br><br>Identification No.) |
| 10 Glenlake Parkway, | South Tower, Suite 600 | |
| --- | --- | --- |
| Atlanta, | Georgia | 30328 |
| (Address of principal executive offices) | (Zip Code) |
(678) 441-1400
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br><br>Symbol(s) | Name of each exchange<br><br>on which registered |
|---|---|---|
| Common Stock, $0.01 par value per share | COLD | New York Stock Exchange |
Item 2.02 — Results of Operations and Financial Condition.
On August 8, 2024, Americold Realty Trust, Inc. (the “Company”) issued a press release announcing the Company’s financial results for the quarter ended June 30, 2024. A copy of the press release as well as a copy of the supplemental information referred to in the press release are available on the Company’s website and are attached hereto as Exhibits 99.1 and 99.2 and incorporated herein by reference.
The foregoing information is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition”. The information in Item 2.02 of this Current Report on Form 8-K and the exhibits furnished therewith shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be or be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Item 7.01 — Regulation FD Disclosure.
The information set forth in Item 2.02 is incorporated by reference into this Item 7.01. The information in Items 2.20 and 7.01 of this Current Report on Form 8-K and the exhibits furnished therewith shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that Section, and shall not be or be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Item 9.01 — Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release dated August 8, 2024 for the quarter ended June 30, 2024. |
| 99.2 | Supplemental Information Package for the quarter ended June 30, 2024. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: August 8, 2024
| AMERICOLD REALTY TRUST, INC. | |
|---|---|
| By: | /s/ Jay Wells |
| Name: Jay Wells | |
| Title: Chief Financial Officer and Executive Vice President |
Document
Exhibit 99.1
AMERICOLD ANNOUNCES SECOND QUARTER 2024 RESULTS
Achieves Double Digit Same Store NOI Growth,
Record Services Margins for a Second Consecutive Quarter and Raises Full Year Earnings Guidance
Atlanta, GA, August 8, 2024 - Americold Realty Trust, Inc. (NYSE: COLD) (the “Company”), a global leader in temperature-controlled logistics, real estate, and value-added services focused on the ownership, operation, acquisition and development of temperature-controlled warehouses, today announced financial and operating results for the second quarter ended June 30, 2024.
George Chappelle, Chief Executive Officer of Americold Realty Trust, stated, “As the operational and financial results of the second quarter highlight, it's been another great quarter for organic growth at Americold as we produced double digit year-over-year growth in Global Warehouse Same Store NOI, Same Store Warehouse Services Margins, and ultimately AFFO. The efforts the team has put in over the past almost three years to build a productive, stabilized workforce have created a solid foundation in which we were not only able to expand, but continue to produce sustainable services margins across any macroeconomic environment, which supported the improvement in our outlook for the year. Further, the significant investments we have made in our technology and the processes we have put in place have resulted in enhanced revenue capture, and better labor and cost management. We have also been investing back into our business by doubling the capital deployment development guide from last year to $200 - $300 million this year, and are tracking to potentially exceed that number. All of these efforts sets Americold up extremely well for the eventual return of consumer demand.”
Second Quarter 2024 Highlights
•Total revenue of $661.0 million, a 1.7% change from $649.6 million in Q2 2023.
•Net loss of $64.4 million, or $0.23 loss per diluted common share.
•Total Company NOI increased 17.1% to $215.5 million from $184.1 million in Q2 2023.
•Total Company NOI margin increased 427 bps to 32.6% from 28.3% in Q2 2023.
•Global Warehouse same store services margin increased to 13.2% from 1.1% in Q2 2023 on a constant currency basis.
•Core FFO of $95.0 million, or $0.33 per diluted common share.
•AFFO of $109.4 million, or $0.38 per diluted common share.
•Core EBITDA of $165.5 million increased $30.8 million, or 22.9% from $134.7 million in Q2 2023.
•Core EBITDA margin of 25.0% increased 430 basis points from 20.7% in Q2 2023.
•Global Warehouse segment same store revenue increased 3.4% on an actual basis, or increased 5.3% on a constant currency basis.
•Global Warehouse segment same store NOI increased 17.3%, or 19.3% on a constant currency basis.
2024 Outlook
The table below includes the details of our annual guidance. The Company’s guidance is provided for informational purposes based on current plans and assumptions and is subject to change. The ranges for these metrics do not include the impact of acquisitions, dispositions, or capital markets activity beyond that which has been previously announced.
| As of | As of | As of | |
|---|---|---|---|
| August 8, 2024 | May 9, 2024 | February 22, 2024 | |
| Warehouse segment same store revenue growth (constant currency) | 2.0% - 4.0% | 2.5% - 5.5% | 2.5% - 5.5% |
| Warehouse segment same store NOI growth (constant currency) | 900 - 1000 bps higher than associated revenue | 700 - 750 bps higher than associated revenue | 400 - 450 bps higher than associated revenue |
| Warehouse segment non-same store NOI | $(7)M - $1M | $(7)M - $1M | $(3)M - $9M |
| Transportation and Managed segment NOI | $42M - $47M | $42M - $47M | $45M - $50M |
| Total selling, general and administrative expense (inclusive of share-based compensation expense of $23M - $25M and $5M - $7M of Orion amortization) | $247M - $261M | $247M - $261M | $247M - $261M |
| Interest expense | $133M - $141M | $135M - $143M | $141M - $149M |
| Current income tax expense | $7M - $10M | $9M - $12M | $9M - $12M |
| Deferred income tax benefit | $6M - $8M | $6M - $8M | $6M - $8M |
| Non real estate depreciation and amortization expense | $133M - $141M | $127M - $135M | $127M - $135M |
| Total maintenance capital expenditures | $80M - $90M | $80M - $90M | $80M - $90M |
| Development starts (1) | $200M - $300M | $200M - $300M | $200M - $300M |
| AFFO per share | $1.44 - $1.50 | $1.38 - $1.46 | $1.32 - $1.42 |
| Assumed FX rates | 1 ARS = 0.0011 USD<br><br>1 AUS = 0.6614 USD<br><br>1 BRL = 0.0170 USD<br><br>1 CAD = 0.7330 USD<br><br>1 EUR = 1.079 USD<br><br>1 GBP = 1.2680 USD<br><br>1 NZD = 0.6113 USD<br><br>1 PLN = 0.2498 USD | 1 ARS = 0.0012 USD<br>1 AUS = 0.6576 USD<br>1 BRL = 0.1925 USD<br>1 CAD = 0.7401 USD<br>1 EUR = 1.0857 USD<br>1 GBP = 1.2684 USD<br>1 NZD = 0.6128 USD<br>1 PLN = 0.2507 USD | 1 ARS = 0.0012 USD<br><br>1 AUS = 0.6615 USD<br><br>1 BRL = 0.2016 USD<br><br>1 CAD = 0.7438 USD<br><br>1 EUR = 1.0914 USD<br><br>1 GBP = 1.2662 USD<br><br>1 NZD = 0.6168 USD<br><br>1 PLN = 0.2520 USD |
Investor Webcast and Conference Call
The Company will hold a webcast and conference call on Thursday, August 8, 2024 at 8:00 a.m. Eastern Time to discuss its second quarter 2024 results. A live webcast of the call will be available via the Investors section of Americold Realty Trust’s website at www.americold.com. To listen to the live webcast, please go to the site at least fifteen minutes prior to the scheduled start time in order to register, download and install any necessary audio software. Shortly after the call, a replay of the webcast will be available for 90 days on the Company’s website.
The conference call can also be accessed by dialing 1-877-407-3982 or 1-201-493-6780. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID#13743083. The telephone replay will be available starting shortly after the call until August 22, 2024.
The Company’s supplemental package will be available prior to the conference call in the Investors section of the Company’s website at http://ir.americold.com.
During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends that have occurred after quarter-end. The Company’s responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously.
Second Quarter 2024 Total Company Financial Results
Total revenue for the second quarter of 2024 was $661.0 million, a 1.7% change from the $649.6 million from the same quarter of the prior year, which was the result of growth within our Global Warehouse segment, partially offset by changes in our Transportation and Third-party managed segments. The growth within our Global Warehouse segment was driven by our pricing initiatives and rate escalations, partially offset by lower economic occupancy and throughput.
Total NOI for the second quarter of 2024 was $215.5 million, an increase of 17.1% from the same quarter of the prior year. This increase is a result of strong variable cost control driving higher warehouse services margins, in addition to the drivers of revenue growth mentioned above.
For the second quarter of 2024, the Company reported net loss of $64.4 million, or $0.23 loss per diluted share, compared to net loss of $104.8 million, or $0.39 loss per diluted share, for the comparable quarter of the prior year.
Core EBITDA was $165.5 million for the second quarter of 2024, compared to $134.7 million for the comparable quarter of the prior year. This reflects a 22.9% increase over prior year on an actual basis, and 24.7% on a constant currency basis. The increase is due to the same factors driving the increase in NOI mentioned above.
For the second quarter of 2024, Core FFO was $95.0 million, or $0.33 per diluted share, compared to $62.5 million, or $0.23 per diluted share, for the second quarter of 2023.
For the second quarter of 2024, AFFO was $109.4 million, or $0.38 per diluted share, compared to $75.6 million, or $0.28 per diluted share, for the second quarter of 2023.
Please see the Company’s supplemental financial information for the definitions and reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures.
Second Quarter 2024 Global Warehouse Segment Results
The following table presents revenues, contribution (NOI) and margins for our same store and non-same store warehouses with a reconciliation to the total financial metrics of our warehouse segment for the three and six months ended June 30, 2024. Refer to our “Real Estate Portfolio” section below for the composition of our non-same store pool.
| Three Months Ended June 30, | Change | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dollars and units in thousands, except per pallet data | 2024 Actual | 2024 Constant Currency(1) | 2023 Actual | Actual | Constant Currency | ||||||||
| TOTAL WAREHOUSE SEGMENT | |||||||||||||
| Number of total warehouses | 235 | 237 | n/a | n/a | |||||||||
| Rent and storage | $ | 267,671 | $ | 273,751 | $ | 275,183 | (2.7) | % | (0.5) | % | |||
| Warehouse services | 332,716 | 337,351 | 305,987 | 8.7 | % | 10.3 | % | ||||||
| Total revenue | $ | 600,387 | $ | 611,102 | $ | 581,170 | 3.3 | % | 5.2 | % | |||
| Global Warehouse contribution (NOI) | $ | 204,531 | $ | 208,100 | $ | 172,842 | 18.3 | % | 20.4 | % | |||
| Global Warehouse margin | 34.1 | % | 34.1 | % | 29.7 | % | 433 bps | 431 bps | |||||
| Global Warehouse rent and storage metrics: | |||||||||||||
| Average economic occupied pallets | 4,311 | n/a | 4,580 | (5.9) | % | n/a | |||||||
| Average physical occupied pallets | 3,740 | n/a | 4,187 | (10.7) | % | n/a | |||||||
| Average physical pallet positions | 5,519 | n/a | 5,424 | 1.8 | % | n/a | |||||||
| Economic occupancy percentage | 78.1 | % | n/a | 84.4 | % | -634 bps | n/a | ||||||
| Physical occupancy percentage | 67.8 | % | n/a | 77.2 | % | -943 bps | n/a | ||||||
| Total rent and storage revenue per average economic occupied pallet | $ | 62.09 | $ | 63.50 | $ | 60.08 | 3.3 | % | 5.7 | % | |||
| Total rent and storage revenue per average physical occupied pallet | $ | 71.57 | $ | 73.20 | $ | 65.72 | 8.9 | % | 11.4 | % | |||
| Global Warehouse services metrics: | |||||||||||||
| Throughput pallets | 9,024 | n/a | 9,118 | (1.0) | % | n/a | |||||||
| Total warehouse services revenue per throughput pallet | $ | 36.87 | $ | 37.38 | $ | 33.56 | 9.9 | % | 11.4 | % | |||
| SAME STORE WAREHOUSE | |||||||||||||
| Number of same store warehouses | 226 | 226 | n/a | n/a | |||||||||
| Global Warehouse same store revenue: | |||||||||||||
| Rent and storage | $ | 257,924 | $ | 263,984 | $ | 264,134 | (2.4) | % | (0.1) | % | |||
| Warehouse services | 324,767 | 329,372 | 299,417 | 8.5 | % | 10.0 | % | ||||||
| Total same store revenue | $ | 582,691 | $ | 593,356 | $ | 563,551 | 3.4 | % | 5.3 | % | |||
| Global Warehouse same store contribution (NOI) | $ | 206,604 | $ | 210,247 | $ | 176,205 | 17.3 | % | 19.3 | % | |||
| Global Warehouse same store margin | 35.5 | % | 35.4 | % | 31.3 | % | 419 bps | 417 bps | |||||
| Global Warehouse same store rent and storage metrics: | |||||||||||||
| Average economic occupied pallets | 4,165 | n/a | 4,468 | (6.8) | % | n/a | |||||||
| Average physical occupied pallets | 3,615 | n/a | 4,099 | (11.8) | % | n/a | |||||||
| Average physical pallet positions | 5,245 | n/a | 5,277 | (0.6) | % | n/a | |||||||
| Economic occupancy percentage | 79.4 | % | n/a | 84.7 | % | -526 bps | n/a | ||||||
| Physical occupancy percentage | 68.9 | % | n/a | 77.7 | % | -875 bps | n/a | ||||||
| Same store rent and storage revenue per average economic occupied pallet | $ | 61.94 | $ | 63.38 | $ | 59.12 | 4.8 | % | 7.2 | % | |||
| Same store rent and storage revenue per average physical occupied pallet | $ | 71.34 | $ | 73.02 | $ | 64.44 | 10.7 | % | 13.3 | % | |||
| Global Warehouse same store services metrics: | |||||||||||||
| Throughput pallets | 8,717 | n/a | 8,873 | (1.8) | % | n/a | |||||||
| Same store warehouse services revenue per throughput pallet | $ | 37.26 | $ | 37.79 | $ | 33.74 | 10.4 | % | 12.0 | % | |||
| Three Months Ended June 30, | Change | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||
| Dollars and units in thousands, except per pallet data | 2024 Actual | 2024 Constant Currency(1) | 2023 Actual | Actual | Constant Currency | ||||||||
| NON-SAME STORE WAREHOUSE | |||||||||||||
| Number of non-same store warehouses(2) | 9 | 11 | n/a | n/a | |||||||||
| Global Warehouse non-same store revenue: | |||||||||||||
| Rent and storage | $ | 9,747 | $ | 9,767 | $ | 11,049 | n/r | n/r | |||||
| Warehouse services | 7,949 | 7,979 | 6,570 | n/r | n/r | ||||||||
| Total non-same store revenue | $ | 17,696 | $ | 17,746 | $ | 17,619 | n/r | n/r | |||||
| Global Warehouse non-same store contribution (NOI) | $ | (2,073) | $ | (2,147) | $ | (3,363) | n/r | n/r | |||||
| Global Warehouse non-same store margin | (11.7) | % | (12.1) | % | (19.1) | % | n/r | n/r | |||||
| Global Warehouse non-same store rent and storage metrics: | |||||||||||||
| Average economic occupied pallets | 146 | n/a | 112 | n/r | n/a | ||||||||
| Average physical occupied pallets | 125 | n/a | 88 | n/r | n/a | ||||||||
| Average physical pallet positions | 274 | n/a | 147 | n/r | n/a | ||||||||
| Economic occupancy percentage | 53.3 | % | n/a | 76.2 | % | n/r | n/a | ||||||
| Physical occupancy percentage | 45.6 | % | n/a | 59.9 | % | n/r | n/a | ||||||
| Non-same store rent and storage revenue per average economic occupied pallet | $ | 66.76 | $ | 66.90 | $ | 98.65 | n/r | n/r | |||||
| Non-same store rent and storage revenue per average physical occupied pallet | $ | 77.98 | $ | 78.14 | $ | 125.56 | n/r | n/r | |||||
| Global Warehouse non-same store services metrics: | |||||||||||||
| Throughput pallets | 307 | n/a | 245 | n/r | n/a | ||||||||
| Non-same store warehouse services revenue per throughput pallet | $ | 25.89 | $ | 25.99 | $ | 26.82 | n/r | n/r |
(1) The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis are the effect of changes in foreign currency exchange rates relative to the comparable prior period.
(2) Refer to our “Real Estate Portfolio” section below for the composition of our non-same store pool.
(n/a = not applicable)
(n/r = not relevant)
| Six Months Ended June 30, | Change | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dollars in thousands | 2024 Actual | 2024 Constant Currency(1) | 2023 Actual | Actual | Constant currency | ||||||||
| TOTAL WAREHOUSE SEGMENT | |||||||||||||
| Number of total warehouses | 235 | 237 | n/a | n/a | |||||||||
| Global Warehouse revenue: | |||||||||||||
| Rent and storage | $ | 537,095 | $ | 548,390 | $ | 546,591 | (1.7) | % | 0.3 | % | |||
| Warehouse services | 661,002 | 669,779 | 629,631 | 5.0 | % | 6.4 | % | ||||||
| Total revenue | $ | 1,198,097 | $ | 1,218,169 | $ | 1,176,222 | 1.9 | % | 3.6 | % | |||
| Global Warehouse contribution (NOI) | $ | 401,662 | $ | 408,064 | $ | 347,669 | 15.5 | % | 17.4 | % | |||
| Global Warehouse margin | 33.5 | % | 33.5 | % | 29.6 | % | 397 bps | 394 bps | |||||
| Units in thousands except per pallet data | |||||||||||||
| Global Warehouse rent and storage metrics: | |||||||||||||
| Average economic occupied pallets | 4,353 | n/a | 4,566 | (4.7) | % | n/a | |||||||
| Average physical occupied pallets | 3,775 | n/a | 4,188 | (9.9) | % | n/a | |||||||
| Average physical pallet positions | 5,525 | n/a | 5,421 | 1.9 | % | n/a | |||||||
| Economic occupancy percentage | 78.8 | % | n/a | 84.2 | % | -544 bps | n/a | ||||||
| Physical occupancy percentage | 68.3 | % | n/a | 77.3 | % | -893 bps | n/a | ||||||
| Total rent and storage revenue per average economic occupied pallet | $ | 123.39 | $ | 125.98 | $ | 119.70 | 3.1 | % | 5.2 | % | |||
| Total rent and storage revenue per average physical occupied pallet | $ | 142.28 | $ | 145.27 | $ | 130.50 | 9.0 | % | 11.3 | % | |||
| Global Warehouse services metrics: | |||||||||||||
| Throughput pallets | 18,075 | n/a | 18,770 | (3.7) | % | n/a | |||||||
| Total warehouse services revenue per throughput pallet | $ | 36.57 | $ | 37.06 | $ | 33.54 | 9.0 | % | 10.5 | % | |||
| SAME STORE WAREHOUSE | |||||||||||||
| Number of same store warehouses | 226 | 226 | n/a | n/a | |||||||||
| Global Warehouse same store revenue: | |||||||||||||
| Rent and storage | $ | 514,220 | $ | 525,434 | $ | 528,184 | (2.6) | % | (0.5) | % | |||
| Warehouse services | 645,183 | 653,819 | 616,395 | 4.7 | % | 6.1 | % | ||||||
| Total same store revenue | $ | 1,159,403 | $ | 1,179,253 | $ | 1,144,579 | 1.3 | % | 3.0 | % | |||
| Global Warehouse same store contribution (NOI) | $ | 407,187 | $ | 413,633 | $ | 360,924 | 12.8 | % | 14.6 | % | |||
| Global Warehouse same store margin | 35.1 | % | 35.1 | % | 31.5 | % | 359 bps | 354 bps | |||||
| Units in thousands except per pallet data | |||||||||||||
| Global Warehouse same store rent and storage metrics: | |||||||||||||
| Average economic occupied pallets | 4,204 | n/a | 4,460 | (5.7) | % | n/a | |||||||
| Average physical occupied pallets | 3,649 | n/a | 4,103 | (11.1) | % | n/a | |||||||
| Average physical pallet positions | 5,245 | n/a | 5,277 | (0.6) | % | n/a | |||||||
| Economic occupancy percentage | 80.2 | % | n/a | 84.5 | % | -437 bps | n/a | ||||||
| Physical occupancy percentage | 69.6 | % | n/a | 77.8 | % | -818 bps | n/a | ||||||
| Same store rent and storage revenue per average economic occupied pallet | $ | 122.34 | $ | 124.98 | $ | 118.42 | 3.3 | % | 5.5 | % | |||
| Same store rent and storage revenue per average physical occupied pallet | $ | 140.94 | $ | 143.99 | $ | 128.73 | 9.5 | % | 11.9 | % | |||
| Global Warehouse same store services metrics: | |||||||||||||
| Throughput pallets | 17,398 | n/a | 18,269 | (4.8) | % | n/a | |||||||
| Same store warehouse services revenue per throughput pallet | $ | 37.08 | $ | 37.58 | $ | 33.74 | 9.9 | % | 11.4 | % | |||
| Six Months Ended June 30, | Change | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||
| Dollars in thousands | 2024 Actual | 2024 Constant Currency(1) | 2023 Actual | Actual | Constant currency | ||||||||
| NON-SAME STORE WAREHOUSE | |||||||||||||
| Number of non-same store warehouses(2) | 9 | 11 | |||||||||||
| Global Warehouse non-same store revenue: | |||||||||||||
| Rent and storage | $ | 22,875 | $ | 22,956 | $ | 18,407 | n/r | n/r | |||||
| Warehouse services | 15,819 | 15,960 | 13,236 | n/r | n/r | ||||||||
| Total non-same store revenue | $ | 38,694 | $ | 38,916 | $ | 31,643 | n/r | n/r | |||||
| Global Warehouse non-same store contribution (NOI) | $ | (5,525) | $ | (5,569) | $ | (13,255) | n/r | n/r | |||||
| Global Warehouse non-same store margin | (14.3) | % | (14.3) | % | (41.9) | % | n/r | n/r | |||||
| Units in thousands except per pallet data | |||||||||||||
| Global Warehouse non-same store rent and storage metrics: | |||||||||||||
| Average economic occupied pallets | 149 | n/a | 106 | n/r | n/a | ||||||||
| Average physical occupied pallets | 126 | n/a | 85 | n/r | n/a | ||||||||
| Average physical pallet positions | 280 | n/a | 144 | n/r | n/a | ||||||||
| Economic occupancy percentage | 53.2 | % | n/a | 73.6 | % | n/r | n/a | ||||||
| Physical occupancy percentage | 45.0 | % | n/a | 59.0 | % | n/r | n/a | ||||||
| Non-same store rent and storage revenue per average economic occupied pallet | $ | 153.52 | $ | 154.07 | $ | 173.65 | n/r | n/r | |||||
| Non-same store rent and storage revenue per average physical occupied pallet | $ | 181.55 | $ | 182.19 | $ | 216.55 | n/r | n/r | |||||
| Global Warehouse non-same store services metrics: | |||||||||||||
| Throughput pallets | 677 | n/a | 501 | n/r | n/a | ||||||||
| Non-same store warehouse services revenue per throughput pallet | $ | 23.37 | $ | 23.57 | $ | 26.42 | n/r | n/r |
(1) The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis are the effect of changes in foreign currency exchange rates relative to the comparable prior period.
(2) Refer to our “Real Estate Portfolio” section below for the composition of our non-same store pool.
(n/a = not applicable)
(n/r = not relevant)
For the second quarter of 2024, Global Warehouse segment revenue was $600.4 million, an increase of $19.2 million, or 3.3%, compared to $581.2 million for the second quarter of 2023. This growth was principally driven by our pricing initiatives and rate escalations. This was partially offset by lower occupancy and throughput pallets due to consumer buying habits.
Global Warehouse segment contribution (NOI) was $204.5 million for the second quarter of 2024 as compared to $172.8 million for the second quarter of 2023, an increase of $31.7 million or 18.3%. Global Warehouse segment contribution (NOI) increased due to higher revenue, strong variable cost controls and labor efficiencies. Global Warehouse segment margin was 34.1% for the second quarter of 2024, a 433 basis point increase as to compared to the second quarter of 2023, driven by improvement in our warehouse services margin.
Fixed Commitment Rent and Storage Revenue
As of June 30, 2024, $618.0 million of the Company’s annualized rent and storage revenues were derived from customers with fixed commitment storage contracts. This compares to $597.9 million at the end of the first quarter of 2024 and $521.3 million at the end of the second quarter of 2023. We continue to make progress on commercializing business under this type of arrangement. On a combined pro forma basis, assuming a full twelve months of acquisitions revenue, 56.6% of rent and storage revenue was generated from fixed commitment storage contracts.
Economic and Physical Occupancy
Contracts that contain fixed commitments are designed to ensure the Company’s customers have space available when needed. For the second quarter of 2024, economic occupancy for the total warehouse segment was 78.1% and warehouse segment same store pool was 79.4%, representing a 1,035 basis point and 1,049 basis point increase above physical occupancy, respectively. Economic occupancy for the total warehouse segment decreased 634 basis points, and the warehouse segment same store pool decreased 526 basis points as compared to the second quarter of 2023.
Real Estate Portfolio
As of June 30, 2024, the Company’s portfolio consists of 239 facilities. The Company ended the second quarter of 2024 with 235 facilities in its Global Warehouse segment portfolio and four facilities in its Third-party managed segment. The same store population consists of 226 facilities for the quarter ended June 30, 2024. The non-same store facility count consists of: five sites in the expansion and development phase, two facilities that we purchased in 2023, one facility that requires capital investment in anticipation of repurposing, and one site in which we have ceased operations and intend to lease to a third party.
Balance Sheet Activity and Liquidity
As of June 30, 2024, the Company had total liquidity of approximately $553.7 million, including cash and capacity on its revolving credit facility. Total net debt outstanding was $3.3 billion (inclusive of $177.0 million of financing leases/sale lease-backs and exclusive of unamortized deferred financing fees), of which 95% was in an unsecured structure. At quarter end, net debt to pro forma Core EBITDA was approximately 5.3x. The Company’s total debt outstanding includes $3.2 billion of unsecured debt, which excludes sale-leaseback and financing lease obligations. The Company’s real estate debt has a remaining weighted average term of 4.6 years and carries a weighted average contractual interest rate of 4.0%. As of June 30, 2024, 82% of the Company’s total debt outstanding was at a fixed rate, inclusive of hedged variable-rate for fixed-rate debt. The Company has no material debt maturities until 2026, inclusive of extension options.
Dividend
On May 21, 2024, the Company’s Board of Directors declared a dividend of $0.22 per share for the second quarter of 2024, which was paid on July 15, 2024 to common stockholders of record as of June 28, 2024.
About the Company
Americold is a global leader in temperature-controlled logistics real estate and value added services. Focused on the ownership, operation, acquisition and development of temperature-controlled warehouses, Americold owns and/or operates 239 temperature-controlled warehouses, with approximately 1.4 billion refrigerated cubic feet of storage, in North America, Europe, Asia-Pacific, and South America. Americold’s facilities are an integral component of the supply chain connecting food producers, processors, distributors and retailers to consumers.
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, including NAREIT FFO, Core FFO, Adjusted FFO, NAREIT EBITDAre, Core EBITDA, Core EBITDA margin, same store segment revenue, contribution (NOI) and margin, and maintenance capital expenditures. Definitions of these non-GAAP metrics are included in our quarterly financial supplement, and reconciliations of these non-GAAP measures to their most comparable GAAP metrics are included herein. Each of the non-GAAP measures included in this press release has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of the Company’s results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the Company’s presentation of non-GAAP measures in this press release may not be comparable to similarly titled measures disclosed by other companies, including other REITs.
Forward-Looking Statements
This press release contains statements about future events and expectations that constitute forward-looking statements. Forward-looking statements are based on our beliefs, assumptions and expectations of our future financial and operating performance and growth plans, taking into account the information currently available to us. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause our actual results to differ materially from the expectations of future results we express or imply in any forward-looking statements, and you should not place undue reliance on such statements. Factors that could contribute to these differences include the following: rising inflationary pressures, increased interest rates and operating costs; labor and power costs; labor shortages; our relationship with our associates, the occurrence of any work stoppages or any disputes under our collective bargaining agreements and employment related litigation; the impact of supply chain disruptions; risks related to rising construction costs; risks related to expansions of existing properties and developments of new properties, including failure to meet budgeted or stabilized returns within expected time frames, or at all, in respect thereof; uncertainty of revenues, given the nature of our customer contracts; acquisition risks, including the failure to identify or complete attractive acquisitions or failure to realize the intended benefits from our recent acquisitions; difficulties in expanding our operations into new markets; uncertainties and risks related to public health crises; a failure of our information technology systems, systems conversions and integrations, cybersecurity attacks or a breach of our information security systems, networks or processes, and those related to the cyber matter which occurred on April 26, 2023; risks related to implementation of the new ERP system, defaults or non-renewals of significant customer contracts; risks related to privacy and data security concerns, and data collection and transfer restrictions and related foreign regulations; changes in applicable governmental regulations and tax legislation; risks related to current and potential international operations and properties; actions by our competitors and their increasing ability to compete with us; changes in foreign currency exchange rates; the potential liabilities, costs and regulatory impacts associated with our in-house trucking services and the potential disruptions associated with our use of third-party trucking service providers to provide transportation services to our customers; liabilities as a result of our participation in multi-employer pension plans; risks related to the partial ownership of properties, including our JV investments; risks related to natural disasters; adverse economic or real estate developments in our geographic markets or the temperature-controlled warehouse industry; changes in real estate and zoning laws and increases in real property tax rates; general economic conditions; risks associated with the ownership of real estate generally and temperature-controlled warehouses in particular; possible environmental liabilities; uninsured losses or losses in excess of our insurance coverage; financial market fluctuations; our failure to obtain necessary outside financing on attractive terms, or at all; risks related to, or restrictions contained in, our debt financings; decreased storage rates or increased vacancy rates; the potential dilutive effect of our common stock offerings, including our ongoing at the market program; the cost and time requirements as a result of our operation as a publicly traded REIT; and our failure to maintain our status as a REIT.
Words such as “anticipates,” “believes,” “continues,” “estimates,” “expects,” “goal,” “objectives,” “intends,” “may,” “opportunity,” “plans,” “potential,” “near-term,” “long-term,” “projections,” “assumptions,” “projects,” “guidance,” “forecasts,” “outlook,” “target,” “trends,” “should,” “could,” “would,” “will” and similar expressions are intended to identify such forward-looking statements, although not all forward-looking statements may contain such words. Examples of forward-looking statements included in this press release include those regarding our 2024 outlook and our migration of our customers to fixed commitment storage contracts. We qualify any forward-looking statements entirely by these cautionary factors. Other risks, uncertainties and factors, including those discussed under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, and other reports filed with the Securities and Exchange Commission, could cause our actual results to differ materially from those projected in any forward-looking statements we make. We assume no obligation to update or revise these forward-looking
statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future except to the extent required by law.
Contacts:
Americold Realty Trust, Inc.
Investor Relations
Telephone: 678-459-1959
Email: investor.relations@americold.com
| Americold Realty Trust, Inc. and Subsidiaries | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Condensed Consolidated Balance Sheets (Unaudited) | ||||||||||||
| (In thousands, except shares and per share amounts) | ||||||||||||
| June 30, 2024 | December 31, 2023 | |||||||||||
| Assets | ||||||||||||
| Property, buildings, and equipment: | ||||||||||||
| Land | $ | 816,949 | $ | 820,831 | ||||||||
| Buildings and improvements | 4,458,632 | 4,464,359 | ||||||||||
| Machinery and equipment | 1,575,540 | 1,565,431 | ||||||||||
| Assets under construction | 510,085 | 452,312 | ||||||||||
| 7,361,206 | 7,302,933 | |||||||||||
| Accumulated depreciation | (2,330,672) | (2,196,196) | ||||||||||
| Property, buildings, and equipment – net | 5,030,534 | 5,106,737 | ||||||||||
| Operating leases - net | 231,822 | 247,302 | ||||||||||
| Financing leases - net | 105,770 | 105,164 | ||||||||||
| Cash, cash equivalents, and restricted cash | 44,198 | 60,392 | ||||||||||
| Accounts receivable – net of allowance of $21,672 and $21,647 at June 30, 2024 and December 31, 2023, respectively | 429,080 | 426,048 | ||||||||||
| Identifiable intangible assets – net | 874,788 | 897,414 | ||||||||||
| Goodwill | 790,612 | 794,004 | ||||||||||
| Investments in and advances to partially owned entities | 41,481 | 38,113 | ||||||||||
| Other assets | 254,168 | 194,078 | ||||||||||
| Total assets | $ | 7,802,453 | $ | 7,869,252 | ||||||||
| Liabilities and equity | ||||||||||||
| Liabilities: | ||||||||||||
| Borrowings under revolving line of credit | $ | 619,636 | $ | 392,156 | ||||||||
| Accounts payable and accrued expenses | 570,818 | 568,764 | ||||||||||
| Senior unsecured notes and term loans – net of deferred financing costs of $9,254 and $10,578, in the aggregate, at June 30, 2024 and December 31, 2023, respectively | 2,574,022 | 2,601,122 | ||||||||||
| Sale-leaseback financing obligations | 81,201 | 161,937 | ||||||||||
| Financing lease obligations | 95,768 | 97,177 | ||||||||||
| Operating lease obligations | 226,764 | 240,251 | ||||||||||
| Unearned revenue | 27,290 | 28,379 | ||||||||||
| Deferred tax liability - net | 129,512 | 135,797 | ||||||||||
| Other liabilities | 7,854 | 9,082 | ||||||||||
| Total liabilities | 4,332,865 | 4,234,665 | ||||||||||
| Equity | ||||||||||||
| Stockholders' equity | ||||||||||||
| Common stock, $0.01 par value per share – 500,000,000 authorized shares; 284,079,137 and 283,699,120 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 2,840 | 2,837 | ||||||||||
| Paid-in capital | 5,635,353 | 5,625,907 | ||||||||||
| Accumulated deficit and distributions in excess of net earnings | (2,176,035) | (1,995,975) | ||||||||||
| Accumulated other comprehensive income (loss) | (14,313) | (16,640) | ||||||||||
| Total stockholders’ equity | 3,447,845 | 3,616,129 | ||||||||||
| Noncontrolling interests | 21,743 | 18,458 | ||||||||||
| Total equity | 3,469,588 | 3,634,587 | ||||||||||
| Total liabilities and equity | $ | 7,802,453 | $ | 7,869,252 | ||||||||
| Americold Realty Trust, Inc. and Subsidiaries | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||
| Condensed Consolidated Statements of Operations (Unaudited) | ||||||||||||
| (In thousands, except per share amounts) | ||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenues: | ||||||||||||
| Rent, storage, and warehouse services | $ | 600,387 | $ | 581,170 | $ | 1,198,097 | $ | 1,176,222 | ||||
| Transportation services | 50,637 | 58,072 | 107,490 | 126,150 | ||||||||
| Third-party managed services | 9,931 | 10,368 | 20,348 | 23,727 | ||||||||
| Total revenues | 660,955 | 649,610 | 1,325,935 | 1,326,099 | ||||||||
| Operating expenses: | ||||||||||||
| Rent, storage, and warehouse services cost of operations | 395,856 | 408,328 | 796,435 | 828,553 | ||||||||
| Transportation services cost of operations | 41,787 | 48,263 | 87,118 | 104,681 | ||||||||
| Third-party managed services cost of operations | 7,829 | 8,968 | 16,063 | 21,248 | ||||||||
| Depreciation and amortization | 89,649 | 84,892 | 181,744 | 169,916 | ||||||||
| Selling, general, and administrative | 59,453 | 53,785 | 124,879 | 116,640 | ||||||||
| Acquisition, cyber incident, and other, net | 3,013 | 27,235 | 18,011 | 34,382 | ||||||||
| Gain from sale of real estate | — | (2,528) | (3,514) | (2,337) | ||||||||
| Total operating expenses | 597,587 | 628,943 | 1,220,736 | 1,273,083 | ||||||||
| Operating income | 63,368 | 20,667 | 105,199 | 53,016 | ||||||||
| Other income (expense): | ||||||||||||
| Interest expense | (33,180) | (36,431) | (66,610) | (70,854) | ||||||||
| Loss on debt extinguishment and termination of derivative instruments | (110,682) | (627) | (115,864) | (1,172) | ||||||||
| Loss from investments in partially owned entities | (1,034) | (709) | (1,983) | (1,357) | ||||||||
| Loss on put option | — | (56,576) | — | (56,576) | ||||||||
| Impairment of related party loan receivable | — | (21,972) | — | (21,972) | ||||||||
| Other, net | 14,623 | (415) | 24,149 | 1,018 | ||||||||
| Loss from continuing operations before income taxes | (66,905) | (96,063) | (55,109) | (97,897) | ||||||||
| Income tax (expense) benefit: | ||||||||||||
| Current income tax | (1,857) | (1,923) | (3,232) | (3,900) | ||||||||
| Deferred income tax | 4,353 | 1,459 | 3,734 | 5,080 | ||||||||
| Total income tax benefit (expense) | 2,496 | (464) | 502 | 1,180 | ||||||||
| Net Loss | ||||||||||||
| Net loss from continuing operations | (64,409) | (96,527) | (54,607) | (96,717) | ||||||||
| Net loss from discontinued operations | — | (8,275) | — | (10,656) | ||||||||
| Net loss | $ | (64,409) | $ | (104,802) | $ | (54,607) | $ | (107,373) | ||||
| Net loss attributable to noncontrolling interests | (300) | (78) | (238) | (87) | ||||||||
| Net loss attributable to Americold Realty Trust, Inc. | $ | (64,109) | $ | (104,724) | $ | (54,369) | $ | (107,286) | ||||
| Weighted average common stock outstanding – basic | 284,683 | 270,462 | 284,664 | 270,387 | ||||||||
| Weighted average common stock outstanding – diluted | 284,683 | 270,462 | 284,664 | 270,387 | ||||||||
| Net loss per common share from continuing operations - basic | $ | (0.23) | $ | (0.36) | $ | (0.19) | $ | (0.36) | ||||
| Net loss per common share from discontinued operations - basic | — | (0.03) | — | $ | (0.04) | |||||||
| Basic loss per share | $ | (0.23) | $ | (0.39) | $ | (0.19) | $ | (0.40) | ||||
| Net loss per common share from continuing operations - diluted | $ | (0.23) | $ | (0.36) | $ | (0.19) | $ | (0.36) | ||||
| Net loss per common share from discontinued operations - diluted | — | $ | (0.03) | $ | — | $ | (0.04) | |||||
| Diluted loss per share | $ | (0.23) | $ | (0.39) | $ | (0.19) | $ | (0.40) | ||||
| Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and Adjusted FFO | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (In thousands, except per share amounts) | ||||||||||||
| Three Months Ended | YTD | |||||||||||
| Q2 24 | Q1 24 | Q4 23 | Q3 23 | Q2 23 | 2024 | |||||||
| Net (loss) income | $ | (64,409) | $ | 9,802 | $ | (226,800) | $ | (2,096) | $ | (104,802) | $ | (54,607) |
| Adjustments: | ||||||||||||
| Real estate related depreciation | 56,410 | 56,275 | 57,183 | 56,373 | 54,740 | 112,685 | ||||||
| (Gain) loss from sale of real estate | — | (3,514) | 5 | 78 | (2,528) | (3,514) | ||||||
| Net loss (gain) on asset disposals | 53 | 40 | 260 | (25) | — | 93 | ||||||
| Our share of reconciling items related to partially owned entities | 418 | 148 | 280 | 290 | 232 | 566 | ||||||
| NAREIT FFO | $ | (7,528) | $ | 62,751 | $ | (169,072) | $ | 54,620 | $ | (52,358) | $ | 55,223 |
| Adjustments: | ||||||||||||
| Net (gain) loss on sale of non-real estate assets | (548) | (20) | 3,312 | (296) | 289 | (568) | ||||||
| Acquisition, cyber incident and other, net | 3,013 | 14,998 | 15,774 | 13,931 | 27,235 | 18,011 | ||||||
| Goodwill impairment | — | — | 236,515 | — | — | — | ||||||
| Loss on debt extinguishment and termination of derivative instruments | 110,682 | 5,182 | 627 | 683 | 627 | 115,864 | ||||||
| Foreign currency exchange (gain) loss | (11,321) | 373 | (28) | 705 | 212 | (10,948) | ||||||
| Gain on legal settlement related to prior period operations | — | (6,104) | (2,180) | — | — | (6,104) | ||||||
| Project Orion deferred costs amortization | 581 | — | — | — | — | 581 | ||||||
| Our share of reconciling items related to partially owned entities | 144 | 136 | (184) | 147 | (27) | 280 | ||||||
| Net (gain) loss from discontinued operations | — | — | — | (203) | 8,275 | — | ||||||
| Impairment of related party receivable | — | — | — | — | 21,972 | — | ||||||
| Loss on put option | — | — | — | — | 56,576 | — | ||||||
| Gain on sale of LATAM JV | — | — | — | — | (304) | — | ||||||
| Core FFO | $ | 95,023 | $ | 77,316 | $ | 84,764 | $ | 69,587 | $ | 62,497 | $ | 172,339 |
| Adjustments: | ||||||||||||
| Amortization of deferred financing costs and pension withdrawal liability | 1,294 | 1,289 | 1,290 | 1,286 | 1,279 | 2,583 | ||||||
| Amortization of below/above market leases | 360 | 368 | 360 | 369 | 375 | 728 | ||||||
| Straight-line rental expense adjustment | 367 | 589 | 597 | 544 | 361 | 956 | ||||||
| Deferred income tax (benefit) expense | (4,353) | 619 | (3,228) | (2,473) | (1,459) | (3,734) | ||||||
| Stock-based compensation expense | 6,064 | 6,619 | 5,780 | 6,203 | 4,639 | 12,683 | ||||||
| Non-real estate depreciation and amortization | 33,239 | 35,820 | 36,916 | 33,355 | 30,152 | 69,059 | ||||||
| Maintenance capital expenditures (a) | (22,832) | (17,933) | (18,670) | (20,907) | (22,590) | (40,765) | ||||||
| Our share of reconciling items related to partially owned entities | 235 | 226 | 208 | 198 | 303 | 461 | ||||||
| Adjusted FFO | $ | 109,397 | $ | 104,913 | $ | 108,017 | $ | 88,162 | $ | 75,557 | $ | 214,310 |
| Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and Adjusted FFO (continued) | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (In thousands except per share amounts) | ||||||||||||
| Three Months Ended | YTD | |||||||||||
| Q2 24 | Q1 24 | Q4 23 | Q3 23 | Q2 23 | 2024 | |||||||
| NAREIT FFO | $ | (7,528) | $ | 62,751 | $ | (169,072) | $ | 54,620 | $ | (52,358) | $ | 55,223 |
| Core FFO | $ | 95,023 | $ | 77,316 | $ | 84,764 | $ | 69,587 | $ | 62,497 | $ | 172,339 |
| Adjusted FFO | $ | 109,397 | $ | 104,913 | $ | 108,017 | $ | 88,162 | $ | 75,557 | $ | 214,310 |
| Reconciliation of weighted average shares: | ||||||||||||
| Weighted average basic shares for net income calculation | 284,683 | 284,644 | 284,263 | 278,137 | 270,462 | 284,664 | ||||||
| Dilutive stock options and unvested restricted stock units | 327 | 234 | 502 | 519 | 695 | 280 | ||||||
| Weighted average dilutive shares | 285,010 | 284,878 | 284,765 | 278,656 | 271,157 | 284,944 | ||||||
| NAREIT FFO - basic per share | $ | (0.03) | $ | 0.22 | $ | (0.59) | $ | 0.20 | $ | (0.19) | $ | 0.19 |
| NAREIT FFO - diluted per share | $ | (0.03) | $ | 0.22 | $ | (0.59) | $ | 0.20 | $ | (0.19) | $ | 0.19 |
| Core FFO - basic per share | $ | 0.33 | $ | 0.27 | $ | 0.30 | $ | 0.25 | $ | 0.23 | $ | 0.61 |
| Core FFO - diluted per share | $ | 0.33 | $ | 0.27 | $ | 0.30 | $ | 0.25 | $ | 0.23 | $ | 0.60 |
| Adjusted FFO - basic per share | $ | 0.38 | $ | 0.37 | $ | 0.38 | $ | 0.32 | $ | 0.28 | $ | 0.75 |
| Adjusted FFO - diluted per share | $ | 0.38 | $ | 0.37 | $ | 0.38 | $ | 0.32 | $ | 0.28 | $ | 0.75 |
(a)Maintenance capital expenditures include capital expenditures made to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology.
| Reconciliation of Net (Loss) Income to NAREIT EBITDAre, and Core EBITDA | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (In thousands) | ||||||||||||||||||
| Three Months Ended | Trailing Twelve Months Ended | |||||||||||||||||
| Q2 24 | Q1 24 | Q4 23 | Q3 23 | Q2 23 | Q2 24 | |||||||||||||
| Net (loss) income | $ | (64,409) | $ | 9,802 | $ | (226,800) | $ | (2,096) | $ | (104,802) | $ | (283,503) | ||||||
| Adjustments: | ||||||||||||||||||
| Depreciation and amortization | 89,649 | 92,095 | 94,099 | 89,728 | 84,892 | 365,571 | ||||||||||||
| Interest expense | 33,180 | 33,430 | 33,681 | 35,572 | 36,431 | 135,863 | ||||||||||||
| Income tax (benefit) expense | (2,496) | 1,994 | (601) | (492) | 464 | (1,595) | ||||||||||||
| (Gain) loss from sale of real estate | — | (3,514) | 5 | 78 | (2,528) | (3,431) | ||||||||||||
| Adjustment to reflect share of EBITDAre of partially owned entities | 1,520 | 1,470 | 1,533 | 1,495 | 3,085 | 6,018 | ||||||||||||
| NAREIT EBITDAre | $ | 57,444 | $ | 135,277 | $ | (98,083) | $ | 124,285 | $ | 17,542 | $ | 218,923 | ||||||
| Adjustments: | ||||||||||||||||||
| Acquisition, cyber incident and other, net | 3,013 | 14,998 | 15,774 | 13,931 | 27,235 | 47,716 | ||||||||||||
| Loss (gain) from investments in partially owned entities | 1,034 | 949 | (174) | 259 | 709 | 2,068 | ||||||||||||
| Impairment of indefinite and long-lived assets | — | — | 236,515 | — | — | 236,515 | ||||||||||||
| Foreign currency exchange (gain) loss | (11,321) | 373 | (28) | 705 | 212 | (10,271) | ||||||||||||
| Stock-based compensation expense | 6,064 | 6,619 | 5,780 | 6,203 | 4,639 | 24,666 | ||||||||||||
| Loss on debt extinguishment and termination of derivative instruments | 110,682 | 5,182 | 627 | 683 | 627 | 117,174 | ||||||||||||
| (Gain) loss on other asset disposals | (495) | 20 | 3,572 | (321) | 289 | 2,776 | ||||||||||||
| Gain on legal settlement related to prior period operations | — | (6,104) | (2,180) | — | — | (8,284) | ||||||||||||
| Project Orion deferred costs amortization | 581 | — | — | — | — | 581 | ||||||||||||
| Reduction in EBITDAre from partially owned entities | (1,520) | (1,470) | (1,533) | (1,495) | (3,085) | (6,018) | ||||||||||||
| Gain from sale of partially owned entities | — | — | — | — | (304) | — | ||||||||||||
| Net (gain) loss from discontinued operations | — | — | — | (203) | 8,275 | (203) | ||||||||||||
| Impairment of related party receivable | — | — | — | — | 21,972 | — | ||||||||||||
| Loss on put option | — | — | — | — | 56,576 | — | ||||||||||||
| Core EBITDA | $ | 165,482 | $ | 155,844 | $ | 160,270 | $ | 144,047 | $ | 134,687 | $ | 625,643 | ||||||
| Total revenue | $ | 660,955 | $ | 664,980 | $ | 679,291 | $ | 667,939 | $ | 649,610 | $ | 2,673,165 | ||||||
| Core EBITDA margin | 25.0 | % | 23.4 | % | 23.6 | % | 21.6 | % | 20.7 | % | 23.4 | % | ||||||
| Revenue and Contribution (NOI) by Segment | ||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||
| (in thousands) | ||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Segment revenues: | ||||||||||||||||||
| Warehouse | $ | 600,387 | $ | 581,170 | $ | 1,198,097 | $ | 1,176,222 | ||||||||||
| Transportation | 50,637 | 58,072 | 107,490 | 126,150 | ||||||||||||||
| Third-party managed | 9,931 | 10,368 | 20,348 | 23,727 | ||||||||||||||
| Total revenues | 660,955 | 649,610 | 1,325,935 | 1,326,099 | ||||||||||||||
| Segment contribution: | ||||||||||||||||||
| Warehouse | 204,531 | 172,842 | 401,662 | 347,669 | ||||||||||||||
| Transportation | 8,850 | 9,809 | 20,372 | 21,469 | ||||||||||||||
| Third-party managed | 2,102 | 1,400 | 4,285 | 2,479 | ||||||||||||||
| Total segment contribution | 215,483 | 184,051 | 426,319 | 371,617 | ||||||||||||||
| Reconciling items: | ||||||||||||||||||
| Depreciation and amortization expense | (89,649) | (84,892) | (181,744) | (169,916) | ||||||||||||||
| Selling, general, and administrative expense | (59,453) | (53,785) | (124,879) | (116,640) | ||||||||||||||
| Acquisition, cyber incident, and other expense, net | (3,013) | (27,235) | (18,011) | (34,382) | ||||||||||||||
| Gain from sale of real estate | — | 2,528 | 3,514 | 2,337 | ||||||||||||||
| Interest expense | (33,180) | (36,431) | (66,610) | (70,854) | ||||||||||||||
| Other, net | 14,623 | (415) | 24,149 | 1,018 | ||||||||||||||
| Loss on debt extinguishment and termination of derivative instruments | (110,682) | (627) | (115,864) | (1,172) | ||||||||||||||
| Impairment of related party loan receivable | — | (21,972) | — | (21,972) | ||||||||||||||
| Loss on put option | — | (56,576) | — | (56,576) | ||||||||||||||
| Loss from investments in partially owned entities | (1,034) | (709) | (1,983) | (1,357) | ||||||||||||||
| Loss from continuing operations before income taxes | $ | (66,905) | $ | (96,063) | $ | (55,109) | $ | (97,897) |
We view and manage our business through three primary business segments—warehouse, transportation, third-party managed. Our core business is our warehouse segment, where we provide temperature-controlled warehouse storage and related handling and other warehouse services. In our warehouse segment, we collect rent and storage fees from customers to store their frozen and perishable food and other products within our real estate portfolio. We also provide our customers with handling and other warehouse services related to the products stored in our buildings that are designed to optimize their movement through the cold chain, such as the placement of food products for storage and preservation, the retrieval of products from storage upon customer request, case-picking, blast freezing, produce grading and bagging, ripening, kitting, protein boxing, repackaging, e-commerce fulfillment, and other recurring handling services.
In our transportation segment, we broker and manage transportation of frozen and perishable food and other products for our customers. Our transportation services include consolidation services (i.e., consolidating a customer’s products with those of other customers for more efficient shipment), freight under management services (i.e., arranging for and overseeing transportation of customer inventory) and dedicated transportation services, each designed to improve efficiency and reduce transportation and logistics costs to our customers. We provide these transportation services at cost plus a service fee or, in the case of our consolidation or dedicated services, we may charge a fixed fee. We supplemented our regional, national and truckload consolidation services with the transportation operations from various warehouse acquisitions. We also provide multi-modal global freight forwarding services to support our customers’ needs in certain markets.
Under our third-party managed segment, we manage warehouses on behalf of third parties and provide warehouse management services to leading food manufacturers and retailers in their owned facilities. We believe using our third-party management services allows our customers to increase efficiency, reduce costs, reduce supply-chain risks and focus on their core businesses. We also believe that providing third-party management services allows us to offer a complete and integrated suite of services across the cold chain.
| Notes and Definitions |
|---|
| We use the following non-GAAP financial measures as supplemental performance measures of our business: NAREIT FFO, Core FFO, Adjusted FFO, NAREIT EBITDAre, Core EBITDA, Core EBITDA margin, net debt to pro-forma Core EBITDA, segment contribution (‘NOI”) and margin, same store revenue and NOI, and maintenance capital expenditures. |
| 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 Net (gain) loss on sale of non-real estate assets, Acquisition, cyber incident and other, net, Goodwill impairment, Loss on debt extinguishment and termination of derivative instruments, Foreign currency exchange (gain) loss, Gain on legal settlement related to prior period operations, Project Orion deferred costs amortization, Net (gain) loss from discontinued operations, Impairment of related party receivable, Loss on put option, and Gain on sale of LATAM JV. We also adjust for the impact of Core FFO on our share of reconciling items for partially owned entities, and gain from disposition of 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 measures 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 below/above market leases, Straight-line rental expense adjustment, Deferred income tax (benefit) expense, Stock-based compensation expense, Non-real estate depreciation and amortization, 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 consolidated statements of operations included in our quarterly and annual reports. 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 above 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. |
| We calculate EBITDA for Real Estate, or EBITDAre, in accordance with the standards established by the Board of Governors of NAREIT, defined as, net (loss) income before interest expense, taxes, depreciation and amortization, net gain on sale of real estate, net of withholding taxes, 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 (gain) from investments in partially owned entities, Impairment of indefinite and long-lived assets, Foreign currency exchange (gain) loss, Stock-based compensation expense ,Loss on debt extinguishment and termination of derivative instruments, (Gain) loss on other asset disposals, Gain on legal settlement related to prior period operations, Project Orion deferred costs amortization, Gain from sale of partially owned entities, Net (gain) loss from discontinued operations, Impairment of related party receivable, and Loss on put option.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. We calculate Core EBITDA margin as Core EBITDA divided by revenues. 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: |
| NOI is calculated as earnings before interest expense, taxes, depreciation and amortization, and excluding corporate Selling, general, and administrative expense; Acquisition, cyber incident, and other, net; Impairment of indefinite and long-lived assets; gain or loss on sale of real estate and all components of non-operating other income and expense. Management believes that this is a helpful metric to measure period to period operating performance of the business. |
•these measures do not reflect our historical or future cash requirements for maintenance capital expenditures or growth and expansion capital expenditures;
•these measures do not reflect changes in, or cash requirements for, our working capital needs;
•these measures do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our indebtedness;
•these measures do not reflect our tax expense or the cash requirements to pay our taxes; and
•although depreciation and amortization are non-cash charges, the assets being depreciated will often have to be replaced in the future and these measures do not reflect any cash requirements for such replacements.
| We use the following non-GAAP financial measures as supplemental performance measures of our business: NAREIT FFO, Core FFO, Adjusted FFO, NAREIT EBITDAre, Core EBITDA, Core EBITDA margin, net debt to pro-forma Core EBITDA, contribution (‘NOI”) and margin, same store revenue and NOI, total real estate debt, total debt outstanding and maintenance capital expenditures. |
|---|
| Net debt to proforma Core EBITDA is calculated using total debt, plus deferred financing costs, less cash and cash equivalents, divided by pro-forma Core EBITDA. We calculate pro-forma Core EBITDA as Core EBITDA further adjusted for acquisitions, dispositions and for rent expense associated with lease buy-outs and lease exits. The pro-forma adjustment for acquisitions reflects the Core EBITDA for the period of time prior to acquisition. The pro-forma adjustment for leased facilities exited or purchased reflects the add-back for the related lease expense from the last year. The pro-forma adjustment for dispositions reduces Core EBITDA for the earnings of facilities disposed of or exited during the year, including the strategic exit of certain third-party managed business. |
| We define our “same store” population once annually at the beginning of the current calendar year. Our population includes properties owned or leased for the entirety of two comparable periods with at least twelve consecutive months of normalized operations prior to January 1 of the current calendar year. We define “normalized operations” as properties that have been open for operation or lease, after development or significant modification (e.g., expansion or rehabilitation subsequent to a natural disaster). Acquired properties are included in the “same store” population if owned by us as of the first business day of the prior calendar year (e.g. January 1, 2023) and are still owned by us as of the end of the current reporting period, unless the property is under development. The “same store” pool is also adjusted to remove properties that were sold or entered development subsequent to the beginning of the current calendar year. Beginning January of 2024, changes in ownership structure (e.g., purchase of a previously leased warehouse) no longer results in a facility being excluded from the same store population, as management believes that actively managing its real estate is normal course of operations. Additionally, management began to classify new developments (both conventional and automated facilities) as a component of the same store pool once the facility is considered fully operational and both inbounding and outbounding product for at least twelve consecutive months prior to January 1 of the current calendar year. |
| We calculate “same store revenue” as revenues for the same store population. We calculate “same store contribution (NOI)” as revenues for the same store population less its cost of operations (excluding any depreciation and amortization, impairment charges, corporate-level selling, general and administrative expenses, corporate-level acquisition, cyber incident and other, net and gain or loss on sale of real estate). In order to derive an appropriate measure of period-to-period operating performance, we also calculate our same store contribution (NOI) on a constant currency basis to remove the effects of foreign currency exchange rate movements by using the comparable prior period exchange rate to translate from local currency into U.S. dollars for both periods. We evaluate the performance of the warehouses we own or lease using a “same store” analysis, and we believe that same store contribution (NOI) is helpful to investors as a supplemental performance measure because it includes the operating performance from the population of properties that is consistent from period to period and also on a constant currency basis, thereby eliminating the effects of changes in the composition of our warehouse portfolio and currency fluctuations on performance measures. Same store contribution (NOI) is not a measurement of financial performance under U.S. GAAP. In addition, other companies providing temperature-controlled warehouse storage and handling and other warehouse services may not define same store or calculate same store contribution (NOI) in a manner consistent with our definition or calculation. Same store contribution (NOI) should be considered as a supplement, but not as an alternative, to our results calculated in accordance with U.S. GAAP. |
| We define “maintenance capital expenditures” as capital expenditures made to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology. Maintenance capital expenditures include capital expenditures made to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology. Maintenance capital expenditures do not include acquisition costs contemplated when underwriting the purchase of a building or costs which are incurred to bring a building up to Americold’s operating standards. |
| We define “total real estate debt” as the aggregate of the following: mortgage notes, senior unsecured notes, term loans and borrowings under our revolving line of credit. We define “total debt outstanding” as the aggregate of the following: total real estate debt, sale-leaseback financing obligations and financing lease obligations. |
| All quarterly amounts and non-GAAP disclosures within this filing shall be deemed unaudited. |
Document
Exhibit 99.2
| Financial Supplement | Second Quarter 2024 |
|---|---|
| Table of Contents | |
| --- | --- |
| Overview | PAGE |
| Corporate Profile | 3 |
| Earnings Release | 5 |
| Selected Quarterly Financial Data | 15 |
| Financial Information | |
| Condensed Consolidated Balance Sheets | 17 |
| Condensed Consolidated Statements of Operations | 18 |
| Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO and Adjusted FFO | 19 |
| Reconciliation of Net (Loss) Income to NAREIT EBITDAre, and Core EBITDA | 21 |
| Acquisition, Cyber Incident and Other, Net | 22 |
| Debt Detail and Maturities | 23 |
| Operations Overview | |
| Revenue and Contribution (NOI) by Segment | 24 |
| Global Warehouse Economic and Physical Occupancy Trend | 25 |
| Global Warehouse Portfolio | 26 |
| Fixed Commitment and Lease Maturity Schedules | 28 |
| Maintenance Capital Expenditures, Repair and Maintenance Expenses and External Growth, Expansion and Development Capital Expenditures | 30 |
| Total Global Warehouse Segment Financial and Operating Performance | |
| Global Warehouse Segment Financial Performance | 31 |
| Same-Store Financial Performance | 33 |
| Same-Store Key Operating Metrics | 35 |
| Same-Store Historical Performance Trend | 37 |
| External Growth and Capital Deployment | 38 |
| Unconsolidated Joint Ventures (Investments in Partially Owned Entities) | 39 |
| 2024 Guidance | 41 |
| Notes and Definitions | 42 |
| Financial Supplement | Second Quarter 2024 |
| --- | --- |
Corporate Profile
Americold Realty Trust, Inc. together with its subsidiaries (“ART”, “Americold”, the “Company”, “us” or “we”) is a Maryland corporation that operates as a real estate investment trust (“REIT”) for U.S. federal income tax purposes. The Company is a global leader in temperature-controlled storage, logistics, real estate and value added services, and is focused on the ownership, operation, acquisition and development of temperature-controlled warehouses. The REIT operates 239 warehouses globally, totaling approximately 1.4 billion cubic feet,with 195 in North America, 25 in Europe, 17 in Asia-Pacific, and 2 in South America as of June 30, 2024.
Our business includes three primary business segments: warehouse, transportation and third-party managed. We have minority interests in two joint ventures: SuperFrio (operates 35 temperature-controlled warehouses in Brazil), and RSA (operates 2 temperature-controlled warehouses in Dubai).
Corporate Headquarters
10 Glenlake Parkway, Suite 600, South Tower
Atlanta, Georgia 30328
Telephone: (678) 441-1400
Website: www.americold.com
Senior Management
George F. Chappelle, Jr.: Chief Executive Officer and Director
E. Jay Wells: Chief Financial Officer and Executive Vice President
Robert S. Chambers: President, Americas
Samantha L. Charleston: Chief Human Resources Officer and Executive Vice President
Nathan H. Harwell: Chief Legal Officer and Executive Vice President
R. Scott Henderson: Chief Investment Officer and Executive Vice President
Michael P. Spires: Chief Information Officer and Executive Vice President
M. Bryan Verbarendse: Chief Operating Officer - North America and Executive Vice President
Richard C. Winnall: President, International
Robert E. Harris, Jr.: Chief Accounting Officer and Senior Vice President
Board of Directors
Mark R. Patterson: Chairman of the Board of Directors
George J. Alburger, Jr.: Director
Kelly H. Barrett: Director
Robert L. Bass: Director
George F. Chappelle, Jr.: Chief Executive Officer and Director
Antonio F. Fernandez: Director
Pamela K. Kohn: Director
David J. Neithercut: Director
Andrew P. Power: Director
Investor Relations
To request more information or to be added to our e-mail distribution list, please visit our website: www.americold.com.
(Please proceed to the Investors section.)
Investor Relations
Telephone: 678-459-1959
Email: investor.relations@americold.com
| Financial Supplement | Second Quarter 2024 | ||
|---|---|---|---|
| Analyst Coverage | |||
| --- | --- | --- | --- |
| Firm | Analyst Name | Contact | |
| Baird Equity Research | Nicholas Thillman | 414-298-5053 | nthillman@rwbaird.com |
| Bank of America Merrill Lynch | Joshua Dennerlein | 646-855-1681 | joshua.dennerlein@bofa.com |
| Barclays | Brendan Lynch | 212-526-9428 | brendan.lynch@barclays.com |
| BNP Paribas Exane Research | Nate Crossett | 646-725-3716 | nate.crossett@exanebnpparibas.com |
| Citi | Craig Mailman | 212-816-4471 | craig.mailman@citi.com |
| Evercore ISI | Samir Khanal / <br>Steve Sakwa | 212-888-3796 / 212-446-9462 | samir.khanal@evercoreisi.com / steve.sakwa@evercoreisi.com |
| Green Street Advisors | Vince Tibone | 949-640-8780 | vtibone@greenstreet.com |
| J.P. Morgan | Michael W. Mueller | 212-622-6689 | michael.w.mueller@jpmorgan.com |
| KeyBanc | Todd Thomas | 917-368-2286 | tthomas@key.com |
| MorningStar Research Services | Suryansh Sharma | 314-585-6793 | suryansh.sharma@morningstar.com |
| Raymond James | William A. Crow | 727-567-2594 | bill.crow@raymondjames.com |
| RBC | Michael Carroll | 440-715-2649 | michael.carroll@rbccm.com |
| Scotiabank | Greg McGinniss | 212-225-6906 | greg.mcginniss@scotiabank.com |
| Truist | Ki Bin Kim | 212-303-4124 | kibin.kim@truist.com |
| Wells Fargo Securities | Blaine Heck | 410-662-2556 | blaine.heck@wellsfargo.com |
| Wolfe Research | Andrew Rosivach | 646-582-9250 | arosivach@wolferesearch.com |
Stock Listing Information
The shares of Americold Realty Trust, Inc. are traded on the New York Stock Exchange under the symbol “COLD”.
Credit Ratings
| DBRS Morningstar | ||
|---|---|---|
| Credit Rating: | BBB | (Stable Trend) |
| Fitch | ||
| Issuer Default Rating: | BBB | (Stable Outlook) |
| Moody’s | ||
| Issuer Rating: | Baa3 | (Stable Outlook) |
These credit ratings may not reflect the potential impact of risks relating to the structure or trading of the Company’s securities and are provided solely for informational purposes. Credit ratings are not recommendations to buy, hold or sell any security, and may be revised or withdrawn at any time by the issuing rating agency at its sole discretion. The Company does not undertake any obligation to maintain the ratings or to advise of any change in ratings. Each agency’s rating should be evaluated independently of any other agency’s rating. An explanation of the significance of the ratings may be obtained from each of the rating agencies.
| Financial Supplement | Second Quarter 2024 |
|---|
AMERICOLD ANNOUNCES SECOND QUARTER 2024 RESULTS
Achieves Double Digit Same Store NOI Growth,
Record Services Margins for a Second Consecutive Quarter and Raises Full Year Earnings Guidance
Atlanta, GA, August 8, 2024 - Americold Realty Trust, Inc. (NYSE: COLD) (the “Company”), a global leader in temperature-controlled logistics, real estate, and value-added services focused on the ownership, operation, acquisition and development of temperature-controlled warehouses, today announced financial and operating results for the second quarter ended June 30, 2024.
George Chappelle, Chief Executive Officer of Americold Realty Trust, stated, “As the operational and financial results of the second quarter highlight, it's been another great quarter for organic growth at Americold as we produced double digit year-over-year growth in Global Warehouse Same Store NOI, Same Store Warehouse Services Margins, and ultimately AFFO. The efforts the team has put in over the past almost three years to build a productive, stabilized workforce have created a solid foundation in which we were not only able to expand, but continue to produce sustainable services margins across any macroeconomic environment, which supported the improvement in our outlook for the year. Further, the significant investments we have made in our technology and the processes we have put in place have resulted in enhanced revenue capture, and better labor and cost management. We have also been investing back into our business by doubling the capital deployment development guide from last year to $200 - $300 million this year, and are tracking to potentially exceed that number. All of these efforts sets Americold up extremely well for the eventual return of consumer demand.”
Second Quarter 2024 Highlights
•Total revenue of $661.0 million, a 1.7% change from $649.6 million in Q2 2023.
•Net loss of $64.4 million, or $0.23 loss per diluted common share.
•Total Company NOI increased 17.1% to $215.5 million from $184.1 million in Q2 2023.
•Total Company NOI margin increased 427 bps to 32.6% from 28.3% in Q2 2023.
•Global Warehouse same store services margin increased to 13.2% from 1.1% in Q2 2023 on a constant currency basis.
•Core FFO of $95.0 million, or $0.33 per diluted common share.
•AFFO of $109.4 million, or $0.38 per diluted common share.
•Core EBITDA of $165.5 million increased $30.8 million, or 22.9% from $134.7 million in Q2 2023.
•Core EBITDA margin of 25.0% increased 430 basis points from 20.7% in Q2 2023.
•Global Warehouse segment same store revenue increased 3.4% on an actual basis, or increased 5.3% on a constant currency basis.
•Global Warehouse segment same store NOI increased 17.3%, or 19.3% on a constant currency basis.
| Financial Supplement | Second Quarter 2024 |
|---|
2024 Outlook
The table below includes the details of our annual guidance. The Company’s guidance is provided for informational purposes based on current plans and assumptions and is subject to change. The ranges for these metrics do not include the impact of acquisitions, dispositions, or capital markets activity beyond that which has been previously announced.
| As of | As of | As of | |
|---|---|---|---|
| August 8, 2024 | May 9, 2024 | February 22, 2024 | |
| Warehouse segment same store revenue growth (constant currency) | 2.0% - 4.0% | 2.5% - 5.5% | 2.5% - 5.5% |
| Warehouse segment same store NOI growth (constant currency) | 900 - 1000 bps higher than associated revenue | 700 - 750 bps higher than associated revenue | 400 - 450 bps higher than associated revenue |
| Warehouse segment non-same store NOI | $(7)M - $1M | $(7)M - $1M | $(3)M - $9M |
| Transportation and Managed segment NOI | $42M - $47M | $42M - $47M | $45M - $50M |
| Total selling, general and administrative expense (inclusive of share-based compensation expense of $23M - $25M and $5M - $7M of Orion amortization) | $247M - $261M | $247M - $261M | $247M - $261M |
| Interest expense | $133M - $141M | $135M - $143M | $141M - $149M |
| Current income tax expense | $7M - $10M | $9M - $12M | $9M - $12M |
| Deferred income tax benefit | $6M - $8M | $6M - $8M | $6M - $8M |
| Non real estate depreciation and amortization expense | $133M - $141M | $127M - $135M | $127M - $135M |
| Total maintenance capital expenditures | $80M - $90M | $80M - $90M | $80M - $90M |
| Development starts (1) | $200M - $300M | $200M - $300M | $200M - $300M |
| AFFO per share | $1.44 - $1.50 | $1.38 - $1.46 | $1.32 - $1.42 |
| Assumed FX rates | 1 ARS = 0.0011 USD<br><br>1 AUS = 0.6614 USD<br><br>1 BRL = 0.0170 USD<br><br>1 CAD = 0.7330 USD<br><br>1 EUR = 1.079 USD<br><br>1 GBP = 1.2680 USD<br><br>1 NZD = 0.6113 USD<br><br>1 PLN = 0.2498 USD | 1 ARS = 0.0012 USD<br>1 AUS = 0.6576 USD<br>1 BRL = 0.1925 USD<br>1 CAD = 0.7401 USD<br>1 EUR = 1.0857 USD<br>1 GBP = 1.2684 USD<br>1 NZD = 0.6128 USD<br>1 PLN = 0.2507 USD | 1 ARS = 0.0012 USD<br><br>1 AUS = 0.6615 USD<br><br>1 BRL = 0.2016 USD<br><br>1 CAD = 0.7438 USD<br><br>1 EUR = 1.0914 USD<br><br>1 GBP = 1.2662 USD<br><br>1 NZD = 0.6168 USD<br><br>1 PLN = 0.2520 USD |
Investor Webcast and Conference Call
The Company will hold a webcast and conference call on Thursday, August 8, 2024 at 8:00 a.m. Eastern Time to discuss its second quarter 2024 results. A live webcast of the call will be available via the Investors section of Americold Realty Trust’s website at www.americold.com. To listen to the live webcast, please go to the site at least fifteen minutes prior to the scheduled start time in order to register, download and install any necessary audio software. Shortly after the call, a replay of the webcast will be available for 90 days on the Company’s website.
The conference call can also be accessed by dialing 1-877-407-3982 or 1-201-493-6780. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID#13743083. The telephone replay will be available starting shortly after the call until August 22, 2024.
The Company’s supplemental package will be available prior to the conference call in the Investors section of the Company’s website at http://ir.americold.com.
During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends that have occurred after quarter-end. The Company’s responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously.
| Financial Supplement | Second Quarter 2024 |
|---|
Second Quarter 2024 Total Company Financial Results
Total revenue for the second quarter of 2024 was $661.0 million, a 1.7% change from the $649.6 million from the same quarter of the prior year, which was the result of growth within our Global Warehouse segment, partially offset by changes in our Transportation and Third-party managed segments. The growth within our Global Warehouse segment was driven by our pricing initiatives and rate escalations, partially offset by lower economic occupancy and throughput.
Total NOI for the second quarter of 2024 was $215.5 million, an increase of 17.1% from the same quarter of the prior year. This increase is a result of strong variable cost control driving higher warehouse services margins, in addition to the drivers of revenue growth mentioned above.
For the second quarter of 2024, the Company reported net loss of $64.4 million, or $0.23 loss per diluted share, compared to net loss of $104.8 million, or $0.39 loss per diluted share, for the comparable quarter of the prior year.
Core EBITDA was $165.5 million for the second quarter of 2024, compared to $134.7 million for the comparable quarter of the prior year. This reflects a 22.9% increase over prior year on an actual basis, and 24.7% on a constant currency basis. The increase is due to the same factors driving the increase in NOI mentioned above.
For the second quarter of 2024, Core FFO was $95.0 million, or $0.33 per diluted share, compared to $62.5 million, or $0.23 per diluted share, for the second quarter of 2023.
For the second quarter of 2024, AFFO was $109.4 million, or $0.38 per diluted share, compared to $75.6 million, or $0.28 per diluted share, for the second quarter of 2023.
Please see the Company’s supplemental financial information for the definitions and reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures.
Second Quarter 2024 Global Warehouse Segment Results
The following table presents revenues, contribution (NOI) and margins for our same store and non-same store warehouses with a reconciliation to the total financial metrics of our warehouse segment for the three and six months ended June 30, 2024. Refer to our “Real Estate Portfolio” section below for the composition of our non-same store pool.
| Financial Supplement | Second Quarter 2024 | | --- | --- || | Three Months Ended June 30, | | | | | | | | | Change | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Dollars and units in thousands, except per pallet data | 2024 Actual | | | 2024 Constant Currency(1) | | | 2023 Actual | | | Actual | | Constant Currency | | | TOTAL WAREHOUSE SEGMENT | | | | | | | | | | | | | | | Number of total warehouses | 235 | | | | | | 237 | | | n/a | | n/a | | | Rent and storage | $ | 267,671 | | $ | 273,751 | | $ | 275,183 | | (2.7) | % | (0.5) | % | | Warehouse services | 332,716 | | | 337,351 | | | 305,987 | | | 8.7 | % | 10.3 | % | | Total revenue | $ | 600,387 | | $ | 611,102 | | $ | 581,170 | | 3.3 | % | 5.2 | % | | Global Warehouse contribution (NOI) | $ | 204,531 | | $ | 208,100 | | $ | 172,842 | | 18.3 | % | 20.4 | % | | Global Warehouse margin | 34.1 | | % | 34.1 | | % | 29.7 | | % | 433 bps | | 431 bps | | | Global Warehouse rent and storage metrics: | | | | | | | | | | | | | | | Average economic occupied pallets | 4,311 | | | n/a | | | 4,580 | | | (5.9) | % | n/a | | | Average physical occupied pallets | 3,740 | | | n/a | | | 4,187 | | | (10.7) | % | n/a | | | Average physical pallet positions | 5,519 | | | n/a | | | 5,424 | | | 1.8 | % | n/a | | | Economic occupancy percentage | 78.1 | | % | n/a | | | 84.4 | | % | -634 bps | | n/a | | | Physical occupancy percentage | 67.8 | | % | n/a | | | 77.2 | | % | -943 bps | | n/a | | | Total rent and storage revenue per average economic occupied pallet | $ | 62.09 | | $ | 63.50 | | $ | 60.08 | | 3.3 | % | 5.7 | % | | Total rent and storage revenue per average physical occupied pallet | $ | 71.57 | | $ | 73.20 | | $ | 65.72 | | 8.9 | % | 11.4 | % | | Global Warehouse services metrics: | | | | | | | | | | | | | | | Throughput pallets | 9,024 | | | n/a | | | 9,118 | | | (1.0) | % | n/a | | | Total warehouse services revenue per throughput pallet | $ | 36.87 | | $ | 37.38 | | $ | 33.56 | | 9.9 | % | 11.4 | % | | SAME STORE WAREHOUSE | | | | | | | | | | | | | | | Number of same store warehouses | 226 | | | | | | 226 | | | n/a | | n/a | | | Global Warehouse same store revenue: | | | | | | | | | | | | | | | Rent and storage | $ | 257,924 | | $ | 263,984 | | $ | 264,134 | | (2.4) | % | (0.1) | % | | Warehouse services | 324,767 | | | 329,372 | | | 299,417 | | | 8.5 | % | 10.0 | % | | Total same store revenue | $ | 582,691 | | $ | 593,356 | | $ | 563,551 | | 3.4 | % | 5.3 | % | | Global Warehouse same store contribution (NOI) | $ | 206,604 | | $ | 210,247 | | $ | 176,205 | | 17.3 | % | 19.3 | % | | Global Warehouse same store margin | 35.5 | | % | 35.4 | | % | 31.3 | | % | 419 bps | | 417 bps | | | Global Warehouse same store rent and storage metrics: | | | | | | | | | | | | | | | Average economic occupied pallets | 4,165 | | | n/a | | | 4,468 | | | (6.8) | % | n/a | | | Average physical occupied pallets | 3,615 | | | n/a | | | 4,099 | | | (11.8) | % | n/a | | | Average physical pallet positions | 5,245 | | | n/a | | | 5,277 | | | (0.6) | % | n/a | | | Economic occupancy percentage | 79.4 | | % | n/a | | | 84.7 | | % | -526 bps | | n/a | | | Physical occupancy percentage | 68.9 | | % | n/a | | | 77.7 | | % | -875 bps | | n/a | | | Same store rent and storage revenue per average economic occupied pallet | $ | 61.94 | | $ | 63.38 | | $ | 59.12 | | 4.8 | % | 7.2 | % | | Same store rent and storage revenue per average physical occupied pallet | $ | 71.34 | | $ | 73.02 | | $ | 64.44 | | 10.7 | % | 13.3 | % | | Global Warehouse same store services metrics: | | | | | | | | | | | | | | | Throughput pallets | 8,717 | | | n/a | | | 8,873 | | | (1.8) | % | n/a | | | Same store warehouse services revenue per throughput pallet | $ | 37.26 | | $ | 37.79 | | $ | 33.74 | | 10.4 | % | 12.0 | % || Financial Supplement | Second Quarter 2024 | | --- | --- || | Three Months Ended June 30, | | | | | | | | | Change | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Dollars and units in thousands, except per pallet data | 2024 Actual | | | 2024 Constant Currency(1) | | | 2023 Actual | | | Actual | Constant Currency | | NON-SAME STORE WAREHOUSE | | | | | | | | | | | | | Number of non-same store warehouses(2) | 9 | | | | | | 11 | | | n/a | n/a | | Global Warehouse non-same store revenue: | | | | | | | | | | | | | Rent and storage | $ | 9,747 | | $ | 9,767 | | $ | 11,049 | | n/r | n/r | | Warehouse services | 7,949 | | | 7,979 | | | 6,570 | | | n/r | n/r | | Total non-same store revenue | $ | 17,696 | | $ | 17,746 | | $ | 17,619 | | n/r | n/r | | Global Warehouse non-same store contribution (NOI) | $ | (2,073) | | $ | (2,147) | | $ | (3,363) | | n/r | n/r | | Global Warehouse non-same store margin | (11.7) | | % | (12.1) | | % | (19.1) | | % | n/r | n/r | | Global Warehouse non-same store rent and storage metrics: | | | | | | | | | | | | | Average economic occupied pallets | 146 | | | n/a | | | 112 | | | n/r | n/a | | Average physical occupied pallets | 125 | | | n/a | | | 88 | | | n/r | n/a | | Average physical pallet positions | 274 | | | n/a | | | 147 | | | n/r | n/a | | Economic occupancy percentage | 53.3 | | % | n/a | | | 76.2 | | % | n/r | n/a | | Physical occupancy percentage | 45.6 | | % | n/a | | | 59.9 | | % | n/r | n/a | | Non-same store rent and storage revenue per average economic occupied pallet | $ | 66.76 | | $ | 66.90 | | $ | 98.65 | | n/r | n/r | | Non-same store rent and storage revenue per average physical occupied pallet | $ | 77.98 | | $ | 78.14 | | $ | 125.56 | | n/r | n/r | | Global Warehouse non-same store services metrics: | | | | | | | | | | | | | Throughput pallets | 307 | | | n/a | | | 245 | | | n/r | n/a | | Non-same store warehouse services revenue per throughput pallet | $ | 25.89 | | $ | 25.99 | | $ | 26.82 | | n/r | n/r |
(1) The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis are the effect of changes in foreign currency exchange rates relative to the comparable prior period.
(2) Refer to our “Real Estate Portfolio” section below for the composition of our non-same store pool.
(n/a = not applicable)
(n/r = not relevant)
| Financial Supplement | Second Quarter 2024 | | --- | --- || | Six Months Ended June 30, | | | | | | | | | Change | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Dollars in thousands | 2024 Actual | | | 2024 Constant Currency(1) | | | 2023 Actual | | | Actual | | Constant currency | | | TOTAL WAREHOUSE SEGMENT | | | | | | | | | | | | | | | Number of total warehouses | 235 | | | | | | 237 | | | n/a | | n/a | | | Global Warehouse revenue: | | | | | | | | | | | | | | | Rent and storage | $ | 537,095 | | $ | 548,390 | | $ | 546,591 | | (1.7) | % | 0.3 | % | | Warehouse services | 661,002 | | | 669,779 | | | 629,631 | | | 5.0 | % | 6.4 | % | | Total revenue | $ | 1,198,097 | | $ | 1,218,169 | | $ | 1,176,222 | | 1.9 | % | 3.6 | % | | Global Warehouse contribution (NOI) | $ | 401,662 | | $ | 408,064 | | $ | 347,669 | | 15.5 | % | 17.4 | % | | Global Warehouse margin | 33.5 | | % | 33.5 | | % | 29.6 | | % | 397 bps | | 394 bps | | | Units in thousands except per pallet data | | | | | | | | | | | | | | | Global Warehouse rent and storage metrics: | | | | | | | | | | | | | | | Average economic occupied pallets | 4,353 | | | n/a | | | 4,566 | | | (4.7) | % | n/a | | | Average physical occupied pallets | 3,775 | | | n/a | | | 4,188 | | | (9.9) | % | n/a | | | Average physical pallet positions | 5,525 | | | n/a | | | 5,421 | | | 1.9 | % | n/a | | | Economic occupancy percentage | 78.8 | | % | n/a | | | 84.2 | | % | -544 bps | | n/a | | | Physical occupancy percentage | 68.3 | | % | n/a | | | 77.3 | | % | -893 bps | | n/a | | | Total rent and storage revenue per average economic occupied pallet | $ | 123.39 | | $ | 125.98 | | $ | 119.70 | | 3.1 | % | 5.2 | % | | Total rent and storage revenue per average physical occupied pallet | $ | 142.28 | | $ | 145.27 | | $ | 130.50 | | 9.0 | % | 11.3 | % | | Global Warehouse services metrics: | | | | | | | | | | | | | | | Throughput pallets | 18,075 | | | n/a | | | 18,770 | | | (3.7) | % | n/a | | | Total warehouse services revenue per throughput pallet | $ | 36.57 | | $ | 37.06 | | $ | 33.54 | | 9.0 | % | 10.5 | % | | SAME STORE WAREHOUSE | | | | | | | | | | | | | | | Number of same store warehouses | 226 | | | | | | 226 | | | n/a | | n/a | | | Global Warehouse same store revenue: | | | | | | | | | | | | | | | Rent and storage | $ | 514,220 | | $ | 525,434 | | $ | 528,184 | | (2.6) | % | (0.5) | % | | Warehouse services | 645,183 | | | 653,819 | | | 616,395 | | | 4.7 | % | 6.1 | % | | Total same store revenue | $ | 1,159,403 | | $ | 1,179,253 | | $ | 1,144,579 | | 1.3 | % | 3.0 | % | | Global Warehouse same store contribution (NOI) | $ | 407,187 | | $ | 413,633 | | $ | 360,924 | | 12.8 | % | 14.6 | % | | Global Warehouse same store margin | 35.1 | | % | 35.1 | | % | 31.5 | | % | 359 bps | | 354 bps | | | Units in thousands except per pallet data | | | | | | | | | | | | | | | Global Warehouse same store rent and storage metrics: | | | | | | | | | | | | | | | Average economic occupied pallets | 4,204 | | | n/a | | | 4,460 | | | (5.7) | % | n/a | | | Average physical occupied pallets | 3,649 | | | n/a | | | 4,103 | | | (11.1) | % | n/a | | | Average physical pallet positions | 5,245 | | | n/a | | | 5,277 | | | (0.6) | % | n/a | | | Economic occupancy percentage | 80.2 | | % | n/a | | | 84.5 | | % | -437 bps | | n/a | | | Physical occupancy percentage | 69.6 | | % | n/a | | | 77.8 | | % | -818 bps | | n/a | | | Same store rent and storage revenue per average economic occupied pallet | $ | 122.34 | | $ | 124.98 | | $ | 118.42 | | 3.3 | % | 5.5 | % | | Same store rent and storage revenue per average physical occupied pallet | $ | 140.94 | | $ | 143.99 | | $ | 128.73 | | 9.5 | % | 11.9 | % | | Global Warehouse same store services metrics: | | | | | | | | | | | | | | | Throughput pallets | 17,398 | | | n/a | | | 18,269 | | | (4.8) | % | n/a | | | Same store warehouse services revenue per throughput pallet | $ | 37.08 | | $ | 37.58 | | $ | 33.74 | | 9.9 | % | 11.4 | % | | Financial Supplement | Second Quarter 2024 | | --- | --- || | Six Months Ended June 30, | | | | | | | | | Change | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Dollars in thousands | 2024 Actual | | | 2024 Constant Currency(1) | | | 2023 Actual | | | Actual | Constant currency | | NON-SAME STORE WAREHOUSE | | | | | | | | | | | | | Number of non-same store warehouses(2) | 9 | | | | | | 11 | | | | | | Global Warehouse non-same store revenue: | | | | | | | | | | | | | Rent and storage | $ | 22,875 | | $ | 22,956 | | $ | 18,407 | | n/r | n/r | | Warehouse services | 15,819 | | | 15,960 | | | 13,236 | | | n/r | n/r | | Total non-same store revenue | $ | 38,694 | | $ | 38,916 | | $ | 31,643 | | n/r | n/r | | Global Warehouse non-same store contribution (NOI) | $ | (5,525) | | $ | (5,569) | | $ | (13,255) | | n/r | n/r | | Global Warehouse non-same store margin | (14.3) | | % | (14.3) | | % | (41.9) | | % | n/r | n/r | | Units in thousands except per pallet data | | | | | | | | | | | | | Global Warehouse non-same store rent and storage metrics: | | | | | | | | | | | | | Average economic occupied pallets | 149 | | | n/a | | | 106 | | | n/r | n/a | | Average physical occupied pallets | 126 | | | n/a | | | 85 | | | n/r | n/a | | Average physical pallet positions | 280 | | | n/a | | | 144 | | | n/r | n/a | | Economic occupancy percentage | 53.2 | | % | n/a | | | 73.6 | | % | n/r | n/a | | Physical occupancy percentage | 45.0 | | % | n/a | | | 59.0 | | % | n/r | n/a | | Non-same store rent and storage revenue per average economic occupied pallet | $ | 153.52 | | $ | 154.07 | | $ | 173.65 | | n/r | n/r | | Non-same store rent and storage revenue per average physical occupied pallet | $ | 181.55 | | $ | 182.19 | | $ | 216.55 | | n/r | n/r | | Global Warehouse non-same store services metrics: | | | | | | | | | | | | | Throughput pallets | 677 | | | n/a | | | 501 | | | n/r | n/a | | Non-same store warehouse services revenue per throughput pallet | $ | 23.37 | | $ | 23.57 | | $ | 26.42 | | n/r | n/r |
(1) The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis are the effect of changes in foreign currency exchange rates relative to the comparable prior period.
(2) Refer to our “Real Estate Portfolio” section below for the composition of our non-same store pool.
(n/a = not applicable)
(n/r = not relevant)
For the second quarter of 2024, Global Warehouse segment revenue was $600.4 million, an increase of $19.2 million, or 3.3%, compared to $581.2 million for the second quarter of 2023. This growth was principally driven by our pricing initiatives and rate escalations. This was partially offset by lower occupancy and throughput pallets due to consumer buying habits.
Global Warehouse segment contribution (NOI) was $204.5 million for the second quarter of 2024 as compared to $172.8 million for the second quarter of 2023, an increase of $31.7 million or 18.3%. Global Warehouse segment contribution (NOI) increased due to higher revenue, strong variable cost controls and labor efficiencies. Global Warehouse segment margin was 34.1% for the second quarter of 2024, a 433 basis point increase as to compared to the second quarter of 2023, driven by improvement in our warehouse services margin.
Fixed Commitment Rent and Storage Revenue
As of June 30, 2024, $618.0 million of the Company’s annualized rent and storage revenues were derived from customers with fixed commitment storage contracts. This compares to $597.9 million at the end of the first quarter of 2024 and $521.3 million at the end of the second quarter of 2023. We continue to make progress on commercializing business under this type of arrangement. On a combined pro forma basis, assuming a full twelve months of acquisitions revenue, 56.6% of rent and storage revenue was generated from fixed commitment storage contracts.
| Financial Supplement | Second Quarter 2024 |
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Economic and Physical Occupancy
Contracts that contain fixed commitments are designed to ensure the Company’s customers have space available when needed. For the second quarter of 2024, economic occupancy for the total warehouse segment was 78.1% and warehouse segment same store pool was 79.4%, representing a 1,035 basis point and 1,049 basis point increase above physical occupancy, respectively. Economic occupancy for the total warehouse segment decreased 634 basis points, and the warehouse segment same store pool decreased 526 basis points as compared to the second quarter of 2023.
Real Estate Portfolio
As of June 30, 2024, the Company’s portfolio consists of 239 facilities. The Company ended the second quarter of 2024 with 235 facilities in its Global Warehouse segment portfolio and four facilities in its Third-party managed segment. The same store population consists of 226 facilities for the quarter ended June 30, 2024. The non-same store facility count consists of: five sites in the expansion and development phase, two facilities that we purchased in 2023, one facility that requires capital investment in anticipation of repurposing, and one site in which we have ceased operations and intend to lease to a third party.
Balance Sheet Activity and Liquidity
As of June 30, 2024, the Company had total liquidity of approximately $553.7 million, including cash and capacity on its revolving credit facility. Total net debt outstanding was $3.3 billion (inclusive of $177.0 million of financing leases/sale lease-backs and exclusive of unamortized deferred financing fees), of which 95% was in an unsecured structure. At quarter end, net debt to pro forma Core EBITDA was approximately 5.3x. The Company’s total debt outstanding includes $3.2 billion of unsecured debt, which excludes sale-leaseback and financing lease obligations. The Company’s real estate debt has a remaining weighted average term of 4.6 years and carries a weighted average contractual interest rate of 4.0%. As of June 30, 2024, 82% of the Company’s total debt outstanding was at a fixed rate, inclusive of hedged variable-rate for fixed-rate debt. The Company has no material debt maturities until 2026, inclusive of extension options.
Dividend
On May 21, 2024, the Company’s Board of Directors declared a dividend of $0.22 per share for the second quarter of 2024, which was paid on July 15, 2024 to common stockholders of record as of June 28, 2024.
About the Company
Americold is a global leader in temperature-controlled logistics real estate and value added services. Focused on the ownership, operation, acquisition and development of temperature-controlled warehouses, Americold owns and/or operates 239 temperature-controlled warehouses, with approximately 1.4 billion refrigerated cubic feet of storage, in North America, Europe, Asia-Pacific, and South America. Americold’s facilities are an integral component of the supply chain connecting food producers, processors, distributors and retailers to consumers.
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, including NAREIT FFO, Core FFO, Adjusted FFO, NAREIT EBITDAre, Core EBITDA, Core EBITDA margin, same store segment revenue, contribution (NOI) and margin, and maintenance capital expenditures. Definitions of these non-GAAP metrics are included in our quarterly financial supplement, and reconciliations of these non-GAAP measures to their most comparable GAAP metrics are included herein. Each of the non-GAAP measures included in this press release has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of the Company’s results calculated in accordance with GAAP. In addition, because not all companies use identical
| Financial Supplement | Second Quarter 2024 |
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calculations, the Company’s presentation of non-GAAP measures in this press release may not be comparable to similarly titled measures disclosed by other companies, including other REITs.
Forward-Looking Statements
This press release contains statements about future events and expectations that constitute forward-looking statements. Forward-looking statements are based on our beliefs, assumptions and expectations of our future financial and operating performance and growth plans, taking into account the information currently available to us. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause our actual results to differ materially from the expectations of future results we express or imply in any forward-looking statements, and you should not place undue reliance on such statements. Factors that could contribute to these differences include the following: rising inflationary pressures, increased interest rates and operating costs; labor and power costs; labor shortages; our relationship with our associates, the occurrence of any work stoppages or any disputes under our collective bargaining agreements and employment related litigation; the impact of supply chain disruptions; risks related to rising construction costs; risks related to expansions of existing properties and developments of new properties, including failure to meet budgeted or stabilized returns within expected time frames, or at all, in respect thereof; uncertainty of revenues, given the nature of our customer contracts; acquisition risks, including the failure to identify or complete attractive acquisitions or failure to realize the intended benefits from our recent acquisitions; difficulties in expanding our operations into new markets; uncertainties and risks related to public health crises; a failure of our information technology systems, systems conversions and integrations, cybersecurity attacks or a breach of our information security systems, networks or processes, and those related to the cyber matter which occurred on April 26, 2023; risks related to implementation of the new ERP system, defaults or non-renewals of significant customer contracts; risks related to privacy and data security concerns, and data collection and transfer restrictions and related foreign regulations; changes in applicable governmental regulations and tax legislation; risks related to current and potential international operations and properties; actions by our competitors and their increasing ability to compete with us; changes in foreign currency exchange rates; the potential liabilities, costs and regulatory impacts associated with our in-house trucking services and the potential disruptions associated with our use of third-party trucking service providers to provide transportation services to our customers; liabilities as a result of our participation in multi-employer pension plans; risks related to the partial ownership of properties, including our JV investments; risks related to natural disasters; adverse economic or real estate developments in our geographic markets or the temperature-controlled warehouse industry; changes in real estate and zoning laws and increases in real property tax rates; general economic conditions; risks associated with the ownership of real estate generally and temperature-controlled warehouses in particular; possible environmental liabilities; uninsured losses or losses in excess of our insurance coverage; financial market fluctuations; our failure to obtain necessary outside financing on attractive terms, or at all; risks related to, or restrictions contained in, our debt financings; decreased storage rates or increased vacancy rates; the potential dilutive effect of our common stock offerings, including our ongoing at the market program; the cost and time requirements as a result of our operation as a publicly traded REIT; and our failure to maintain our status as a REIT.
Words such as “anticipates,” “believes,” “continues,” “estimates,” “expects,” “goal,” “objectives,” “intends,” “may,” “opportunity,” “plans,” “potential,” “near-term,” “long-term,” “projections,” “assumptions,” “projects,” “guidance,” “forecasts,” “outlook,” “target,” “trends,” “should,” “could,” “would,” “will” and similar expressions are intended to identify such forward-looking statements, although not all forward-looking statements may contain such words. Examples of forward-looking statements included in this press release include those regarding our 2024 outlook and our migration of our customers to fixed commitment storage contracts. We qualify any forward-looking statements entirely by these cautionary factors. Other risks, uncertainties and factors, including those discussed under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, and
| Financial Supplement | Second Quarter 2024 |
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other reports filed with the Securities and Exchange Commission, could cause our actual results to differ materially from those projected in any forward-looking statements we make. We assume no obligation to update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future except to the extent required by law.
Contacts:
Americold Realty Trust, Inc.
Investor Relations
Telephone: 678-459-1959
Email: investor.relations@americold.com
| Financial Supplement | Second Quarter 2024 |
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Selected Quarterly Financial Data
| In thousands, except per share amounts | As of | ||||
|---|---|---|---|---|---|
| Capitalization: | Q2 24 | Q1 24 | Q4 23 | Q3 23 | Q2 23 |
| Fully diluted common stock outstanding at quarter end(1) | 286,815 | 286,350 | 285,771 | 285,869 | 272,479 |
| Common stock share price at quarter end | 25.54 | 24.92 | 30.27 | 30.41 | 32.30 |
| Market value of common equity | 7,325,255 | 7,135,842 | 8,650,288 | 8,693,276 | 8,801,072 |
| Gross debt (2) | 3,379,881 | 3,280,056 | 3,262,970 | 3,165,843 | 3,568,567 |
| Less: cash and cash equivalents | 44,198 | 59,204 | 60,392 | 53,831 | 48,873 |
| Net debt | 3,335,683 | 3,220,852 | 3,202,578 | 3,112,012 | 3,519,694 |
| Total enterprise value | 10,660,938 | 10,356,694 | 11,852,866 | 11,805,288 | 12,320,766 |
| Net debt / total enterprise value | 31.3 | 31.1 | 27.0 | 26.4 | 28.6 |
| Net debt to pro forma Core EBITDA(2) | 5.33x | 5.40x | 5.58x | 5.68x | 6.59x |
| Three Months Ended | |||||
| Selected Operational Data: | Q2 24 | Q1 24 | Q4 23 | Q3 23 | Q2 23 |
| Warehouse segment revenue | 600,387 | 597,710 | 612,262 | 602,605 | 581,170 |
| Total revenue | 660,955 | 664,980 | 679,291 | 667,939 | 649,610 |
| Operating income (loss) | 63,368 | 41,831 | (194,321) | 33,000 | 20,667 |
| Net (loss) income from continuing operations | (64,409) | 9,802 | (226,800) | (2,299) | (96,527) |
| Net (loss) income | (64,409) | 9,802 | (226,800) | (2,096) | (104,802) |
| Total warehouse segment contribution (NOI) (3) | 204,531 | 197,131 | 197,102 | 177,832 | 172,842 |
| Total segment contribution (NOI) (3) | 215,483 | 210,836 | 209,835 | 189,120 | 184,051 |
| Selected Other Data: | |||||
| Core EBITDA (4) | 165,482 | 155,844 | 160,270 | 144,047 | 134,687 |
| Core EBITDA margin (4) | 25.0 | 23.4 | 23.6 | 21.6 | 20.7 |
| Core funds from operations (FFO) (4) | 95,023 | 77,316 | 84,764 | 69,587 | 62,497 |
| Adjusted funds from operations (AFFO) (4) | 109,397 | 104,913 | 108,017 | 88,162 | 75,557 |
| Net (loss) income per share - basic | (0.23) | 0.03 | (0.80) | (0.01) | (0.39) |
| Net (loss) income per share - diluted | (0.23) | 0.03 | (0.80) | (0.01) | (0.39) |
| Core FFO per diluted share (4) | 0.33 | 0.27 | 0.30 | 0.25 | 0.23 |
| AFFO per diluted share (4) | 0.38 | 0.37 | 0.38 | 0.32 | 0.28 |
| Dividend distributions declared per common share (5) | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 |
| Diluted AFFO payout ratio (6) | 57.9 | 59.5 | 57.9 | 68.8 | 78.6 |
| Portfolio Statistics: | |||||
| Total global warehouses | 239 | 241 | 245 | 243 | 242 |
| Average economic occupancy | 78.1 | 79.4 | 82.7 | 83.0 | 84.4 |
| Average physical occupancy | 67.8 | 68.9 | 73.6 | 74.7 | 77.2 |
| Total global same-store warehouses | 226 | 226 | 219 | 219 | 220 |
All values are in US Dollars.
| Financial Supplement | Second Quarter 2024 | ||||
|---|---|---|---|---|---|
| (1) Assumes the exercise of all outstanding stock options using the treasury stock method, conversion of all outstanding restricted stock and OP units, and incorporates forward contracts using the treasury stock method | |||||
| --- | --- | --- | --- | --- | --- |
| As of | |||||
| (2) Net Debt to Core EBITDA Computation | 6/30/2024 | 12/31/2023 | |||
| Total debt, net of deferred financing costs | |||||
| Deferred financing costs | 9,254 | 10,578 | |||
| Gross debt | 3,379,881 | 3,262,970 | |||
| Adjustments: | |||||
| Less: cash, cash equivalents and restricted cash | 44,198 | 60,392 | |||
| Net debt | |||||
| Core EBITDA - last twelve months | 625,643 | 572,080 | |||
| Net Core EBITDA from acquisitions (a) | 318 | 2,069 | |||
| Pro forma Core EBITDA - last twelve months | 625,961 | 574,149 | |||
| Net debt to pro forma Core EBITDA | 5.33x | 5.58x | |||
| (a) As of June 30, 2024, amount includes three months of Core EBITDA from the Safeway acquisition prior to Americold’s ownership. As of December 31, 2023, amount includes nine months of Core EBITDA from the Safeway acquisition prior to Americold’s ownership as well as the facility lease expense for sites that it previously incurred operating lease expense for but was subsequently purchased. | |||||
| (3) Reconciliation of segment contribution (NOI) | |||||
| Three Months Ended | |||||
| Q2 24 | Q1 24 | Q4 23 | Q3 23 | Q2 23 | |
| Warehouse segment contribution (NOI) | 204,531 | 197,131 | $197,102 | $177,832 | $172,842 |
| Transportation segment contribution (NOI) | 8,850 | 11,522 | 10,912 | 9,659 | 9,809 |
| Third-party managed segment contribution (NOI) | 2,102 | 2,183 | 1,821 | 1,629 | 1,400 |
| Total segment contribution (NOI) | 215,483 | 210,836 | $209,835 | $189,120 | $184,051 |
| Depreciation and amortization expense | (89,649) | (92,095) | (94,099) | (89,728) | (84,892) |
| Selling, general and administrative expense | (59,453) | (65,426) | (57,763) | (52,383) | (53,785) |
| Acquisition, cyber incident and other expense, net | (3,013) | (14,998) | (15,774) | (13,931) | (27,235) |
| Gain (loss) from sale of real estate | — | 3,514 | (5) | (78) | 2,528 |
| Impairment of indefinite and long-lived assets | — | — | (236,515) | — | — |
| U.S. GAAP operating income (loss) | 63,368 | 41,831 | ($194,321) | $33,000 | $20,667 |
| (4) See “Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and AdjustedFFO” and “Reconciliation of Net Income (Loss) to EBITDA, NAREIT EBITDAre, and Core EBITDA” pages 19-21 | |||||
| (5) Distributions per common share | Three Months Ended | ||||
| Q2 24 | Q1 24 | Q4 23 | Q3 23 | Q2 23 | |
| Distributions declared on common stock during the quarter | 63,238 | 62,976 | $62,645 | $62,868 | $59,921 |
| Common stock outstanding at quarter end | 284,079 | 284,034 | 283,699 | 283,517 | 270,186 |
| Distributions declared per common share | 0.22 | 0.22 | $0.22 | $0.22 | $0.22 |
| (6) Calculated as distributions declared on common stock divided by AFFO per weighted average diluted share |
All values are in US Dollars.
| Financial Supplement | Second Quarter 2024 |
|---|
Financial Information
| Americold Realty Trust, Inc. and Subsidiaries | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Condensed Consolidated Balance Sheets (Unaudited) | ||||||||||||
| (In thousands, except shares and per share amounts) | ||||||||||||
| June 30, 2024 | December 31, 2023 | |||||||||||
| Assets | ||||||||||||
| Property, buildings, and equipment: | ||||||||||||
| Land | $ | 816,949 | $ | 820,831 | ||||||||
| Buildings and improvements | 4,458,632 | 4,464,359 | ||||||||||
| Machinery and equipment | 1,575,540 | 1,565,431 | ||||||||||
| Assets under construction | 510,085 | 452,312 | ||||||||||
| 7,361,206 | 7,302,933 | |||||||||||
| Accumulated depreciation | (2,330,672) | (2,196,196) | ||||||||||
| Property, buildings, and equipment – net | 5,030,534 | 5,106,737 | ||||||||||
| Operating leases - net | 231,822 | 247,302 | ||||||||||
| Financing leases - net | 105,770 | 105,164 | ||||||||||
| Cash, cash equivalents, and restricted cash | 44,198 | 60,392 | ||||||||||
| Accounts receivable – net of allowance of $21,672 and $21,647 at June 30, 2024 and December 31, 2023, respectively | 429,080 | 426,048 | ||||||||||
| Identifiable intangible assets – net | 874,788 | 897,414 | ||||||||||
| Goodwill | 790,612 | 794,004 | ||||||||||
| Investments in and advances to partially owned entities | 41,481 | 38,113 | ||||||||||
| Other assets | 254,168 | 194,078 | ||||||||||
| Total assets | $ | 7,802,453 | $ | 7,869,252 | ||||||||
| Liabilities and equity | ||||||||||||
| Liabilities: | ||||||||||||
| Borrowings under revolving line of credit | $ | 619,636 | $ | 392,156 | ||||||||
| Accounts payable and accrued expenses | 570,818 | 568,764 | ||||||||||
| Senior unsecured notes and term loans – net of deferred financing costs of $9,254 and $10,578, in the aggregate, at June 30, 2024 and December 31, 2023, respectively | 2,574,022 | 2,601,122 | ||||||||||
| Sale-leaseback financing obligations | 81,201 | 161,937 | ||||||||||
| Financing lease obligations | 95,768 | 97,177 | ||||||||||
| Operating lease obligations | 226,764 | 240,251 | ||||||||||
| Unearned revenue | 27,290 | 28,379 | ||||||||||
| Deferred tax liability - net | 129,512 | 135,797 | ||||||||||
| Other liabilities | 7,854 | 9,082 | ||||||||||
| Total liabilities | 4,332,865 | 4,234,665 | ||||||||||
| Equity | ||||||||||||
| Stockholders' equity | ||||||||||||
| Common stock, $0.01 par value per share – 500,000,000 authorized shares; 284,079,137 and 283,699,120 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 2,840 | 2,837 | ||||||||||
| Paid-in capital | 5,635,353 | 5,625,907 | ||||||||||
| Accumulated deficit and distributions in excess of net earnings | (2,176,035) | (1,995,975) | ||||||||||
| Accumulated other comprehensive income (loss) | (14,313) | (16,640) | ||||||||||
| Total stockholders’ equity | 3,447,845 | 3,616,129 | ||||||||||
| Noncontrolling interests | 21,743 | 18,458 | ||||||||||
| Total equity | 3,469,588 | 3,634,587 | ||||||||||
| Total liabilities and equity | $ | 7,802,453 | $ | 7,869,252 | ||||||||
| Financial Supplement | Second Quarter 2024 | |||||||||||
| --- | --- | |||||||||||
| Americold Realty Trust, Inc. and Subsidiaries | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||
| Condensed Consolidated Statements of Operations (Unaudited) | ||||||||||||
| (In thousands, except per share amounts) | ||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenues: | ||||||||||||
| Rent, storage, and warehouse services | $ | 600,387 | $ | 581,170 | $ | 1,198,097 | $ | 1,176,222 | ||||
| Transportation services | 50,637 | 58,072 | 107,490 | 126,150 | ||||||||
| Third-party managed services | 9,931 | 10,368 | 20,348 | 23,727 | ||||||||
| Total revenues | 660,955 | 649,610 | 1,325,935 | 1,326,099 | ||||||||
| Operating expenses: | ||||||||||||
| Rent, storage, and warehouse services cost of operations | 395,856 | 408,328 | 796,435 | 828,553 | ||||||||
| Transportation services cost of operations | 41,787 | 48,263 | 87,118 | 104,681 | ||||||||
| Third-party managed services cost of operations | 7,829 | 8,968 | 16,063 | 21,248 | ||||||||
| Depreciation and amortization | 89,649 | 84,892 | 181,744 | 169,916 | ||||||||
| Selling, general, and administrative | 59,453 | 53,785 | 124,879 | 116,640 | ||||||||
| Acquisition, cyber incident, and other, net | 3,013 | 27,235 | 18,011 | 34,382 | ||||||||
| Gain from sale of real estate | — | (2,528) | (3,514) | (2,337) | ||||||||
| Total operating expenses | 597,587 | 628,943 | 1,220,736 | 1,273,083 | ||||||||
| Operating income | 63,368 | 20,667 | 105,199 | 53,016 | ||||||||
| Other income (expense): | ||||||||||||
| Interest expense | (33,180) | (36,431) | (66,610) | (70,854) | ||||||||
| Loss on debt extinguishment and termination of derivative instruments | (110,682) | (627) | (115,864) | (1,172) | ||||||||
| Loss from investments in partially owned entities | (1,034) | (709) | (1,983) | (1,357) | ||||||||
| Loss on put option | — | (56,576) | — | (56,576) | ||||||||
| Impairment of related party loan receivable | — | (21,972) | — | (21,972) | ||||||||
| Other, net | 14,623 | (415) | 24,149 | 1,018 | ||||||||
| Loss from continuing operations before income taxes | (66,905) | (96,063) | (55,109) | (97,897) | ||||||||
| Income tax (expense) benefit: | ||||||||||||
| Current income tax | (1,857) | (1,923) | (3,232) | (3,900) | ||||||||
| Deferred income tax | 4,353 | 1,459 | 3,734 | 5,080 | ||||||||
| Total income tax benefit (expense) | 2,496 | (464) | 502 | 1,180 | ||||||||
| Net Loss | ||||||||||||
| Net loss from continuing operations | (64,409) | (96,527) | (54,607) | (96,717) | ||||||||
| Net loss from discontinued operations | — | (8,275) | — | (10,656) | ||||||||
| Net loss | $ | (64,409) | $ | (104,802) | $ | (54,607) | $ | (107,373) | ||||
| Net loss attributable to noncontrolling interests | (300) | (78) | (238) | (87) | ||||||||
| Net loss attributable to Americold Realty Trust, Inc. | $ | (64,109) | $ | (104,724) | $ | (54,369) | $ | (107,286) | ||||
| Weighted average common stock outstanding – basic | 284,683 | 270,462 | 284,664 | 270,387 | ||||||||
| Weighted average common stock outstanding – diluted | 284,683 | 270,462 | 284,664 | 270,387 | ||||||||
| Net loss per common share from continuing operations - basic | $ | (0.23) | $ | (0.36) | $ | (0.19) | $ | (0.36) | ||||
| Net loss per common share from discontinued operations - basic | — | (0.03) | — | $ | (0.04) | |||||||
| Basic loss per share | $ | (0.23) | $ | (0.39) | $ | (0.19) | $ | (0.40) | ||||
| Net loss per common share from continuing operations - diluted | $ | (0.23) | $ | (0.36) | $ | (0.19) | $ | (0.36) | ||||
| Net loss per common share from discontinued operations - diluted | — | $ | (0.03) | $ | — | $ | (0.04) | |||||
| Diluted loss per share | $ | (0.23) | $ | (0.39) | $ | (0.19) | $ | (0.40) | ||||
| Financial Supplement | Second Quarter 2024 | |||||||||||
| --- | --- | |||||||||||
| Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and Adjusted FFO | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (In thousands, except per share amounts) | ||||||||||||
| Three Months Ended | YTD | |||||||||||
| Q2 24 | Q1 24 | Q4 23 | Q3 23 | Q2 23 | 2024 | |||||||
| Net (loss) income | $ | (64,409) | $ | 9,802 | $ | (226,800) | $ | (2,096) | $ | (104,802) | $ | (54,607) |
| Adjustments: | ||||||||||||
| Real estate related depreciation | 56,410 | 56,275 | 57,183 | 56,373 | 54,740 | 112,685 | ||||||
| (Gain) loss from sale of real estate | — | (3,514) | 5 | 78 | (2,528) | (3,514) | ||||||
| Net loss (gain) on asset disposals | 53 | 40 | 260 | (25) | — | 93 | ||||||
| Our share of reconciling items related to partially owned entities | 418 | 148 | 280 | 290 | 232 | 566 | ||||||
| NAREIT FFO | $ | (7,528) | $ | 62,751 | $ | (169,072) | $ | 54,620 | $ | (52,358) | $ | 55,223 |
| Adjustments: | ||||||||||||
| Net (gain) loss on sale of non-real estate assets | (548) | (20) | 3,312 | (296) | 289 | (568) | ||||||
| Acquisition, cyber incident and other, net | 3,013 | 14,998 | 15,774 | 13,931 | 27,235 | 18,011 | ||||||
| Goodwill impairment | — | — | 236,515 | — | — | — | ||||||
| Loss on debt extinguishment and termination of derivative instruments | 110,682 | 5,182 | 627 | 683 | 627 | 115,864 | ||||||
| Foreign currency exchange (gain) loss | (11,321) | 373 | (28) | 705 | 212 | (10,948) | ||||||
| Gain on legal settlement related to prior period operations | — | (6,104) | (2,180) | — | — | (6,104) | ||||||
| Project Orion deferred costs amortization | 581 | — | — | — | — | 581 | ||||||
| Our share of reconciling items related to partially owned entities | 144 | 136 | (184) | 147 | (27) | 280 | ||||||
| Net (gain) loss from discontinued operations | — | — | — | (203) | 8,275 | — | ||||||
| Impairment of related party receivable | — | — | — | — | 21,972 | — | ||||||
| Loss on put option | — | — | — | — | 56,576 | — | ||||||
| Gain on sale of LATAM JV | — | — | — | — | (304) | — | ||||||
| Core FFO | $ | 95,023 | $ | 77,316 | $ | 84,764 | $ | 69,587 | $ | 62,497 | $ | 172,339 |
| Adjustments: | ||||||||||||
| Amortization of deferred financing costs and pension withdrawal liability | 1,294 | 1,289 | 1,290 | 1,286 | 1,279 | 2,583 | ||||||
| Amortization of below/above market leases | 360 | 368 | 360 | 369 | 375 | 728 | ||||||
| Straight-line rental expense adjustment | 367 | 589 | 597 | 544 | 361 | 956 | ||||||
| Deferred income tax (benefit) expense | (4,353) | 619 | (3,228) | (2,473) | (1,459) | (3,734) | ||||||
| Stock-based compensation expense | 6,064 | 6,619 | 5,780 | 6,203 | 4,639 | 12,683 | ||||||
| Non-real estate depreciation and amortization | 33,239 | 35,820 | 36,916 | 33,355 | 30,152 | 69,059 | ||||||
| Maintenance capital expenditures (a) | (22,832) | (17,933) | (18,670) | (20,907) | (22,590) | (40,765) | ||||||
| Our share of reconciling items related to partially owned entities | 235 | 226 | 208 | 198 | 303 | 461 | ||||||
| Adjusted FFO | $ | 109,397 | $ | 104,913 | $ | 108,017 | $ | 88,162 | $ | 75,557 | $ | 214,310 |
| Financial Supplement | Second Quarter 2024 | |||||||||||
| --- | --- | |||||||||||
| Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and Adjusted FFO (continued) | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (In thousands except per share amounts) | ||||||||||||
| Three Months Ended | YTD | |||||||||||
| Q2 24 | Q1 24 | Q4 23 | Q3 23 | Q2 23 | 2024 | |||||||
| NAREIT FFO | $ | (7,528) | $ | 62,751 | $ | (169,072) | $ | 54,620 | $ | (52,358) | $ | 55,223 |
| Core FFO | $ | 95,023 | $ | 77,316 | $ | 84,764 | $ | 69,587 | $ | 62,497 | $ | 172,339 |
| Adjusted FFO | $ | 109,397 | $ | 104,913 | $ | 108,017 | $ | 88,162 | $ | 75,557 | $ | 214,310 |
| Reconciliation of weighted average shares: | ||||||||||||
| Weighted average basic shares for net income calculation | 284,683 | 284,644 | 284,263 | 278,137 | 270,462 | 284,664 | ||||||
| Dilutive stock options and unvested restricted stock units | 327 | 234 | 502 | 519 | 695 | 280 | ||||||
| Weighted average dilutive shares | 285,010 | 284,878 | 284,765 | 278,656 | 271,157 | 284,944 | ||||||
| NAREIT FFO - basic per share | $ | (0.03) | $ | 0.22 | $ | (0.59) | $ | 0.20 | $ | (0.19) | $ | 0.19 |
| NAREIT FFO - diluted per share | $ | (0.03) | $ | 0.22 | $ | (0.59) | $ | 0.20 | $ | (0.19) | $ | 0.19 |
| Core FFO - basic per share | $ | 0.33 | $ | 0.27 | $ | 0.30 | $ | 0.25 | $ | 0.23 | $ | 0.61 |
| Core FFO - diluted per share | $ | 0.33 | $ | 0.27 | $ | 0.30 | $ | 0.25 | $ | 0.23 | $ | 0.60 |
| Adjusted FFO - basic per share | $ | 0.38 | $ | 0.37 | $ | 0.38 | $ | 0.32 | $ | 0.28 | $ | 0.75 |
| Adjusted FFO - diluted per share | $ | 0.38 | $ | 0.37 | $ | 0.38 | $ | 0.32 | $ | 0.28 | $ | 0.75 |
(a)Maintenance capital expenditures include capital expenditures made to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology.
| Financial Supplement | Second Quarter 2024 | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Reconciliation of Net (Loss) Income to NAREIT EBITDAre, and Core EBITDA | ||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (In thousands) | ||||||||||||||||||
| Three Months Ended | Trailing Twelve Months Ended | |||||||||||||||||
| Q2 24 | Q1 24 | Q4 23 | Q3 23 | Q2 23 | Q2 24 | |||||||||||||
| Net (loss) income | $ | (64,409) | $ | 9,802 | $ | (226,800) | $ | (2,096) | $ | (104,802) | $ | (283,503) | ||||||
| Adjustments: | ||||||||||||||||||
| Depreciation and amortization | 89,649 | 92,095 | 94,099 | 89,728 | 84,892 | 365,571 | ||||||||||||
| Interest expense | 33,180 | 33,430 | 33,681 | 35,572 | 36,431 | 135,863 | ||||||||||||
| Income tax (benefit) expense | (2,496) | 1,994 | (601) | (492) | 464 | (1,595) | ||||||||||||
| (Gain) loss from sale of real estate | — | (3,514) | 5 | 78 | (2,528) | (3,431) | ||||||||||||
| Adjustment to reflect share of EBITDAre of partially owned entities | 1,520 | 1,470 | 1,533 | 1,495 | 3,085 | 6,018 | ||||||||||||
| NAREIT EBITDAre | $ | 57,444 | $ | 135,277 | $ | (98,083) | $ | 124,285 | $ | 17,542 | $ | 218,923 | ||||||
| Adjustments: | ||||||||||||||||||
| Acquisition, cyber incident and other, net | 3,013 | 14,998 | 15,774 | 13,931 | 27,235 | 47,716 | ||||||||||||
| Loss (gain) from investments in partially owned entities | 1,034 | 949 | (174) | 259 | 709 | 2,068 | ||||||||||||
| Impairment of indefinite and long-lived assets | — | — | 236,515 | — | — | 236,515 | ||||||||||||
| Foreign currency exchange (gain) loss | (11,321) | 373 | (28) | 705 | 212 | (10,271) | ||||||||||||
| Stock-based compensation expense | 6,064 | 6,619 | 5,780 | 6,203 | 4,639 | 24,666 | ||||||||||||
| Loss on debt extinguishment and termination of derivative instruments | 110,682 | 5,182 | 627 | 683 | 627 | 117,174 | ||||||||||||
| (Gain) loss on other asset disposals | (495) | 20 | 3,572 | (321) | 289 | 2,776 | ||||||||||||
| Gain on legal settlement related to prior period operations | — | (6,104) | (2,180) | — | — | (8,284) | ||||||||||||
| Project Orion deferred costs amortization | 581 | — | — | — | — | 581 | ||||||||||||
| Reduction in EBITDAre from partially owned entities | (1,520) | (1,470) | (1,533) | (1,495) | (3,085) | (6,018) | ||||||||||||
| Gain from sale of partially owned entities | — | — | — | — | (304) | — | ||||||||||||
| Net (gain) loss from discontinued operations | — | — | — | (203) | 8,275 | (203) | ||||||||||||
| Impairment of related party receivable | — | — | — | — | 21,972 | — | ||||||||||||
| Loss on put option | — | — | — | — | 56,576 | — | ||||||||||||
| Core EBITDA | $ | 165,482 | $ | 155,844 | $ | 160,270 | $ | 144,047 | $ | 134,687 | $ | 625,643 | ||||||
| Total revenue | $ | 660,955 | $ | 664,980 | $ | 679,291 | $ | 667,939 | $ | 649,610 | $ | 2,673,165 | ||||||
| Core EBITDA margin | 25.0 | % | 23.4 | % | 23.6 | % | 21.6 | % | 20.7 | % | 23.4 | % | ||||||
| Financial Supplement | Second Quarter 2024 | |||||||||||||||||
| --- | --- |
Acquisition, cyber incident and other, net
Dollars in thousands
This caption represents certain corporate costs that are highly variable from period to period and will be further detailed in our Quarterly Report on Form 10-Q.
In addition to the costs recorded to Acquisition, cyber incident and other disclosed in the table below, the Company has invested $69.4 million as of June 30, 2024 and $20.3 million as of June 30, 2023 since the inception of Project Orion which is included in “Other Assets” on the condensed consolidated balance sheet.
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| Acquisition, cyber incident and other, net | 2024 | 2023 | 2024 | 2023 | ||||
| Project Orion expenses | $ | 11,984 | $ | 2,543 | $ | 19,798 | $ | 4,488 |
| Acquisition and integration related costs | 1,345 | 2,402 | 2,351 | 4,188 | ||||
| Severance costs | 1,030 | 2,793 | 4,864 | 6,209 | ||||
| Other, net | (462) | 499 | (833) | 499 | ||||
| Cyber incident related costs, net of insurance recoveries | (10,884) | 18,998 | (8,169) | 18,998 | ||||
| Total Acquisition, cyber incident and other, net | $ | 3,013 | $ | 27,235 | $ | 18,011 | $ | 34,382 |
| Financial Supplement | Second Quarter 2024 | |||||||
| --- | --- | |||||||
| Debt Detail and Maturities | ||||||||
| --- | --- | --- | --- | --- | --- | |||
| (In thousands) | ||||||||
| As of June 30, 2024 | ||||||||
| Indebtedness: | Carrying Value | Contractual Interest Rate(1) | Effective Interest Rate(2) | Stated<br><br>Maturity Date(3) | ||||
| Unsecured Debt(4) | ||||||||
| Senior Unsecured Revolving Credit Facility - C$35M(5) | $ | 25,601 | CORRA + 0.84% | 6.31% | 08/2027 | |||
| Senior Unsecured Revolving Credit Facility - USD(5) | 360,000 | SOFR + 0.84% | 6.65% | 08/2027 | ||||
| Senior Unsecured Revolving Credit Facility - A$197M(5) | 131,523 | BBSW + 0.84% | 5.57% | 08/2027 | ||||
| Senior Unsecured Revolving Credit Facility - €71M(5) | 75,709 | EURIBOR + 0.84% | 4.87% | 08/2027 | ||||
| Senior Unsecured Revolving Credit Facility - NZD44M(5) | 26,803 | BKBM + 0.84% | 6.88% | 08/2027 | ||||
| Senior Unsecured Term Loan A Facility Tranche A-1 - USD(6) | 375,000 | SOFR + 0.94% | 4.58% | 08/2027 | ||||
| Senior Unsecured Term Loan A Facility Tranche A-2 - C$250M | 182,865 | CORRA + 0.94% | 4.78% | 01/2028 | ||||
| Senior Unsecured Term Loan A Facility Tranche A-3 - USD | 270,000 | SOFR + 0.94% | 4.27% | 01/2028 | ||||
| Series A Unsecured notes - USD | 200,000 | 4.68% | 4.77% | 01/2026 | ||||
| Series B Unsecured notes - USD | 400,000 | 4.86% | 4.92% | 01/2029 | ||||
| Series C Unsecured notes - USD | 350,000 | 4.10% | 4.15% | 01/2030 | ||||
| Series D Unsecured notes - €400M | 429,552 | 1.62% | 1.67% | 01/2031 | ||||
| Series E Unsecured notes - €350M | 375,859 | 1.65% | 1.70% | 01/2033 | ||||
| Total Unsecured Debt | $ | 3,202,912 | 3.99% | 4.16% | 4.6 years | |||
| Sale-leaseback financing obligations | 81,201 | 10.07% | ||||||
| Financing lease obligations | 95,768 | 4.09% | ||||||
| Total Debt Outstanding | $ | 3,379,881 | 4.14% | |||||
| Less: unamortized deferred financing costs | (9,254) | |||||||
| Total Book Value of Debt | $ | 3,370,627 | ||||||
| Rate Type | % of Total | |||||||
| Fixed(7) | $ | 2,760,245 | 82% | |||||
| Variable-unhedged | 619,636 | 18% | ||||||
| Total Gross Debt Outstanding | $ | 3,379,881 | 100% | |||||
| Debt Type | % of Total | |||||||
| Unsecured | $ | 3,202,912 | 95% | |||||
| Secured | 176,969 | 5% | ||||||
| Total Debt Outstanding | $ | 3,379,881 | 100% |
1.As of June 30, 2024, the adjusted daily SOFR rate of our Senior Unsecured Revolving Credit Facility was 5.42%, the adjusted daily CORRA rate was 5.08%, the one-month EURIBOR rate was 3.65%, the one-month BBSW rate was 4.35%, the one-month BKBM rate was 5.65%. Our Senior Unsecured Term Loan Tranche A-1 is hedged at a weighted average of 4.29%. Our Senior Unsecured Term Loan Tranche A-2 is hedged at a weighted average of 4.53%. Our Senior Unsecured Term Loan Tranche A-3 is hedged at a weighted average of 4.09%. Included in the SOFR and CORRA rates above, there are adjustments of 0.10% and 0.30%, respectively.
2.The effective interest rates presented include the amortization of loan costs and are based on the hedged rate for the $375.0 million TLA Tranche A-1, the C$250.0 million TLA Tranche A-2, and the $270.0 million Tranche A-3. Subtotals of stated effective interest rates represent weighted average interest rates.
3.Subtotals of stated maturity dates represent remaining weighted average life of the debt and assuming the exercise of extension options on the TLA Tranche A-1 and Senior Unsecured Revolving Credit Facility.
4.Borrowing currency and value presented in caption unless USD denominated.
5.The Senior Unsecured Revolving Credit maturity assumes two six-month extension options. The borrowing capacity as of June 30, 2024 is $1.2 billion less $20.8 million of outstanding letters of credit. The effective interest rate shown represents deferred financing fees allocated over the $1.2 billion committed.
6.The Senior Unsecured Term Loan Tranche A-1 maturity assumes two twelve-month extension options.
7.The total includes borrowings with a variable interest rate that have been effectively hedged through interest rate swaps.
| Financial Supplement | Second Quarter 2024 |
|---|
Operations Overview
| Revenue and Contribution (NOI) by Segment | ||||||||
|---|---|---|---|---|---|---|---|---|
| (in thousands) | ||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||
| 2024 | 2023 | 2024 | 2023 | |||||
| Segment revenues: | ||||||||
| Warehouse | $ | 600,387 | $ | 581,170 | $ | 1,198,097 | $ | 1,176,222 |
| Transportation | 50,637 | 58,072 | 107,490 | 126,150 | ||||
| Third-party managed | 9,931 | 10,368 | 20,348 | 23,727 | ||||
| Total revenues | 660,955 | 649,610 | 1,325,935 | 1,326,099 | ||||
| Segment contribution: | ||||||||
| Warehouse | 204,531 | 172,842 | 401,662 | 347,669 | ||||
| Transportation | 8,850 | 9,809 | 20,372 | 21,469 | ||||
| Third-party managed | 2,102 | 1,400 | 4,285 | 2,479 | ||||
| Total segment contribution | 215,483 | 184,051 | 426,319 | 371,617 | ||||
| Reconciling items: | ||||||||
| Depreciation and amortization expense | (89,649) | (84,892) | (181,744) | (169,916) | ||||
| Selling, general, and administrative expense | (59,453) | (53,785) | (124,879) | (116,640) | ||||
| Acquisition, cyber incident, and other expense, net | (3,013) | (27,235) | (18,011) | (34,382) | ||||
| Gain from sale of real estate | — | 2,528 | 3,514 | 2,337 | ||||
| Interest expense | (33,180) | (36,431) | (66,610) | (70,854) | ||||
| Other, net | 14,623 | (415) | 24,149 | 1,018 | ||||
| Loss on debt extinguishment and termination of derivative instruments | (110,682) | (627) | (115,864) | (1,172) | ||||
| Impairment of related party loan receivable | — | (21,972) | — | (21,972) | ||||
| Loss on put option | — | (56,576) | — | (56,576) | ||||
| Loss from investments in partially owned entities | (1,034) | (709) | (1,983) | (1,357) | ||||
| Loss from continuing operations before income taxes | $ | (66,905) | $ | (96,063) | $ | (55,109) | $ | (97,897) |
We view and manage our business through three primary business segments—warehouse, transportation, third-party managed. Our core business is our warehouse segment, where we provide temperature-controlled warehouse storage and related handling and other warehouse services. In our warehouse segment, we collect rent and storage fees from customers to store their frozen and perishable food and other products within our real estate portfolio. We also provide our customers with handling and other warehouse services related to the products stored in our buildings that are designed to optimize their movement through the cold chain, such as the placement of food products for storage and preservation, the retrieval of products from storage upon customer request, case-picking, blast freezing, produce grading and bagging, ripening, kitting, protein boxing, repackaging, e-commerce fulfillment, and other recurring handling services.
In our transportation segment, we broker and manage transportation of frozen and perishable food and other products for our customers. Our transportation services include consolidation services (i.e., consolidating a customer’s products with those of other customers for more efficient shipment), freight under management services (i.e., arranging for and overseeing transportation of customer inventory) and dedicated transportation services, each designed to improve efficiency and reduce transportation and logistics costs to our customers. We provide these transportation services at cost plus a service fee or, in the case of our consolidation or dedicated services, we may charge a fixed fee. We supplemented our regional, national and truckload consolidation services with the transportation operations from various warehouse acquisitions. We also provide multi-modal global freight forwarding services to support our customers’ needs in certain markets.
Under our third-party managed segment, we manage warehouses on behalf of third parties and provide warehouse management services to leading food manufacturers and retailers in their owned facilities. We believe using our third-party management services allows our customers to increase efficiency, reduce costs, reduce supply-chain risks and focus on their core businesses. We also believe that providing third-party management services allows us to offer a complete and integrated suite of services across the cold chain.
| Financial Supplement | Second Quarter 2024 |
|---|
Global Warehouse Economic and Physical Occupancy Trend
Note: Dotted lines represent incremental economic occupancy percentage.
We define average economic occupancy as the aggregate number of physically occupied pallets and any additional pallets otherwise contractually committed for a given period, without duplication. We estimate the number of contractually committed pallet positions by taking into account actual pallet commitments specified in each customer’s contract, and subtracting the physical pallet positions.
We define average physical occupancy as the average number of occupied pallets divided by the estimated number of average physical pallet positions in our warehouses for the applicable period. We estimate the number of physical pallet positions by taking into account actual racked space and by estimating unracked space on an as-if racked basis. We base this estimate on the total cubic feet of each room within the warehouse that is unracked divided by the volume of an assumed rack space that is consistent with the characteristics of the relevant warehouse. On a warehouse by warehouse basis, rack space generally ranges from three to four feet depending upon the type of facility and the nature of the customer goods stored therein. The number of our pallet positions is reviewed and updated quarterly, taking into account changes in racking configurations and room utilization.
Historically, providers of temperature-controlled warehouse space have offered storage services to customers on an as-utilized, on-demand basis. We have entered into fixed storage commitments with certain customers which give us, among other things, additional clarity around the expected occupancy of our warehouses. As of June 30, 2024, we had entered into contracts featuring fixed storage commitments or leases with 311 of our customers in our warehouse segment. Customers with fixed storage provisions commit to occupy a certain number of pallets at a designated storage rate for the applicable portion of their contractual term, whether the customer elects to physically store goods in a warehouse or not. As a result, certain pallets in our warehouses may generate storage revenue pursuant to fixed storage commitments despite not being physically occupied. To the extent that a customer with a fixed storage provision elects not to utilize all of its committed pallets in a particular warehouse, we have the flexibility to deploy those pallets to facilitate shorter-term customers that desire space on an as-utilized, on demand basis.
| Financial Supplement | Second Quarter 2024 |
|---|
Global Warehouse Portfolio
| Country / Region | # of<br><br>warehouses | Cubic feet<br><br>(in millions) | % of<br>total<br>cubic feet | Pallet<br>positions<br>(in thousands) | Average economic occupancy (1) | Average<br><br>physical<br><br>occupancy (1) | Revenues (2)<br><br>(in millions) | Segment<br><br>contribution<br><br>(NOI) (2)(3)<br><br>(in millions) | Total<br><br>customers (4) | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Warehouse Segment Portfolio (5) | ||||||||||||||
| United States | ||||||||||||||
| East | 53 | 351.0 | 25 | % | 1,218 | 76 | % | 61 | % | $ | 319.3 | $ | 106.4 | 1,035 |
| Southeast | 48 | 315.6 | 22 | % | 1,024 | 76 | % | 64 | % | 216.8 | 55.5 | 670 | ||
| Central | 41 | 268.2 | 19 | % | 1,087 | 82 | % | 73 | % | 226.4 | 88.2 | 702 | ||
| West | 45 | 262.3 | 18 | % | 1,142 | 81 | % | 69 | % | 210.2 | 87.3 | 591 | ||
| Canada | 5 | 32.6 | 2 | % | 120 | 89 | % | 87 | % | 23.6 | 9.7 | 70 | ||
| North America Total | 192 | 1,229.7 | 86 | % | 4,591 | 79 | % | 67 | % | $ | 996.3 | $ | 347.1 | 2,248 |
| Netherlands | 6 | 31.5 | 2 | % | 112 | 68 | % | 68 | % | 21.3 | 4.1 | 269 | ||
| United Kingdom | 5 | 39.3 | 3 | % | 244 | 81 | % | 75 | % | 25.5 | 11.3 | 109 | ||
| Spain | 4 | 15.2 | 1 | % | 77 | 58 | % | 58 | % | 10.7 | 2.7 | 259 | ||
| Portugal | 4 | 11.5 | 1 | % | 58 | 65 | % | 65 | % | 5.9 | 1.1 | 143 | ||
| Ireland | 3 | 9.5 | 1 | % | 59 | 69 | % | 59 | % | 10.4 | 2.2 | 165 | ||
| Austria | 1 | 4.2 | — | % | 44 | 71 | % | 71 | % | 11.4 | 2.9 | 119 | ||
| Poland | 2 | 3.5 | — | % | 14 | 90 | % | 90 | % | 3.9 | 1.3 | 49 | ||
| Europe Total | 25 | 114.7 | 8 | % | 608 | 72 | % | 69 | % | $ | 89.1 | $ | 25.6 | 1,042 |
| Australia | 10 | 59.1 | 4 | % | 219 | 87 | % | 81 | % | 87.8 | 19.8 | 127 | ||
| New Zealand | 6 | 16.9 | 1 | % | 84 | 95 | % | 81 | % | 18.9 | 7.2 | 46 | ||
| Asia-Pacific Total | 16 | 76.0 | 5 | % | 303 | 89 | % | 81 | % | $ | 106.7 | $ | 27.0 | 170 |
| Argentina | 2 | 9.7 | 1 | % | 23 | 73 | % | 73 | % | 6.0 | 2.0 | 47 | ||
| South America Total | 2 | 9.7 | 1 | % | 23 | 73 | % | 73 | % | $ | 6.0 | $ | 2.0 | 47 |
| Warehouse Segment Total / Average | 235 | 1,430.1 | 100 | % | 5,525 | 79 | % | 68 | % | $ | 1,198.1 | $ | 401.7 | 3,491 |
| Third-Party Managed Portfolio | ||||||||||||||
| North America | 3 | 14.9 | 100 | % | — | — | — | $ | 8.6 | $ | 1.6 | 3 | ||
| Asia-Pacific | 1 | — | — | % | — | — | — | 11.7 | 2.7 | 1 | ||||
| Third-Party Managed Total / Average | 4 | 14.9 | 100 | % | — | — | — | $ | 20.3 | $ | 4.3 | 4 | ||
| Portfolio Total / Average | 239 | 1,445.0 | 100 | % | 5,525 | 79 | % | 68 | % | $ | 1,218.4 | $ | 406.0 | 3,491 |
(1)Refer to the preceding section Global Warehouse Economic and Physical Occupancy Trend for our definitions of economic occupancy and physical occupancy.
(2)Six months ended June 30, 2024.
(3)We use the term “segment contribution (NOI)” to mean a segment’s revenues less its cost of operations (excluding any depreciation and amortization, impairment charges, corporate-level selling, general and administrative expenses and corporate-level acquisition, cyber incident and other, net). The applicable segment contribution (NOI) from our owned and leased warehouses and our third-party managed warehouses is included in our warehouse segment contribution (NOI) and third-party managed segment contribution (NOI), respectively.
(4)We serve some of our customers in multiple geographic regions and in multiple facilities within geographic regions. As a result, the total number of customers that we serve is less than the total number of customers reflected in the table above that we serve in each geographic region.
(5)As of June 30, 2024, we owned 168 of our North American warehouses and 40 of our international warehouses, and we leased 24 of our North American warehouses and three of our international warehouses. As of June 30, 2024, fourteen of our owned facilities were located on land that we lease pursuant to long-term ground leases.
| Financial Supplement | Second Quarter 2024 |
|---|
_______________________________________________
(1)Retail reflects a broad variety of product types from retail customers.
(2)Packaged foods reflects a broad variety of temperature-controlled meals and foodstuffs.
(3)Distributors reflects a broad variety of product types from distributor customers.
____________________
Note: June 30, 2024 LTM Revenue and NOI pro forma 2023 acquisitions.
June 30, 2024 warehouse segment cubic feet includes all 2023 acquisitions.
| Financial Supplement | Second Quarter 2024 |
|---|
Fixed Commitment and Lease Maturity Schedules
The following table sets forth a summary schedule of the expirations for any defined contracts featuring fixed storage commitments and leases in effect as of June 30, 2024. The information set forth in the table assumes no exercise of extension options under these contracts and leases.
| Contract Expiration Year | Number<br>of<br>Contracts | Annualized<br>Committed Rent<br>& Storage<br>Revenue<br>(in thousands) | % of Total<br><br>Warehouse<br><br>Rent & Storage<br><br>Segment<br><br>Revenue for the<br><br>six months ended<br><br>June 30, 2024 | Total Warehouse Segment Revenue Generated by Contracts with Fixed Commitments & Leases for the six months ended June 30, 2024(1) (in thousands) | Annualized<br>Committed Rent<br>& Storage<br>Revenue at<br>Expiration(2)<br>(in thousands) | ||||
|---|---|---|---|---|---|---|---|---|---|
| Month-to-Month | 118 | $ | 59,927 | 5.5 | % | $ | 183,571 | $ | 59,927 |
| 2024 | 145 | 102,422 | 9.4 | % | 246,712 | 100,998 | |||
| 2025 | 146 | 135,814 | 12.4 | % | 267,176 | 139,023 | |||
| 2026 | 80 | 142,936 | 13.1 | % | 268,471 | 146,530 | |||
| 2027 | 34 | 31,807 | 2.9 | % | 70,815 | 33,372 | |||
| 2028 | 20 | 26,684 | 2.4 | % | 85,452 | 29,056 | |||
| 2029+ | 28 | 118,451 | 10.9 | % | 318,529 | 126,387 | |||
| Total | 571 | $ | 618,041 | 56.6 | % | $ | 1,440,726 | $ | 635,293 |
____________________
Note: June 30, 2024 LTM total revenue and rent and storage revenue pro forma 2023 acquisitions.
(1)Represents monthly fixed storage commitments and lease rental payments under the relevant expiring defined contract and lease as of June 30, 2024, plus the weighted average monthly warehouse services revenues attributable to these contracts and leases for the last twelve months ended June 30, 2024, multiplied by 12.
(2)Represents annualized monthly revenues from fixed storage commitments and lease rental payments under the defined contracts and relevant expiring leases as of June 30, 2024 based upon the monthly revenues attributable thereto in the last month prior to expiration, multiplied by 12.
| Financial Supplement | Second Quarter 2024 |
|---|
The following table sets forth a summary schedule of the expirations of our facility leased warehouses and other leases pursuant to which we lease space to third parties in our warehouse portfolio, in each case, in place as of June 30, 2024. These leases had a weighted average remaining term of 44 months as of June 30, 2024.
| Lease Expiration Year | No. of<br>Leases<br>Expiring | Annualized<br>Rent(1)<br>(in thousands) | % of Total<br><br>Warehouse Rent &<br><br>Storage Segment<br><br>Revenue for the<br><br>six months ended<br><br>June 30, 2024 | Leased<br>Square<br>Footage<br>(in thousands) | % Leased<br>Square<br>Footage | Annualized<br>Rent at<br>Expiration(2)<br>(in thousands) | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Month-to-Month | 2 | $ | 5 | — | % | 9 | 0.2 | % | $ | 5 | |
| 2024 | 34 | 7,556 | 0.7 | % | 778 | 21.0 | % | 7,577 | |||
| 2025 | 29 | 11,192 | 1.0 | % | 671 | 18.1 | % | 11,290 | |||
| 2026 | 13 | 6,123 | 0.6 | % | 487 | 13.1 | % | 6,450 | |||
| 2027 | 10 | 3,748 | 0.3 | % | 245 | 6.6 | % | 4,039 | |||
| 2028 | 11 | 7,680 | 0.7 | % | 713 | 19.2 | % | 8,037 | |||
| 2029+ | 11 | 15,293 | 1.4 | % | 804 | 21.7 | % | 19,226 | |||
| Total | 110 | $ | 51,597 | 4.7 | % | — | 3,707 | 100 | % | $ | 56,624 |
____________________
Note: June 30, 2024 LTM rent and storage revenue pro forma 2023 acquisitions.
(1)Represents monthly rental payments under the relevant leases as of June 30, 2024, multiplied by 12.
(2)Represents monthly rental payments under the relevant leases in the calendar year of expiration, multiplied by 12.
| Financial Supplement | Second Quarter 2024 |
|---|
Maintenance Capital Expenditures, Repair and Maintenance Expenses and
External Growth, Expansion and Development Capital Expenditures
We utilize a strategic and preventative approach to maintenance capital expenditures and repair and maintenance expenses to maintain the high quality and operational efficiency of our warehouses and ensure that our warehouses meet the “mission-critical” role they serve in the cold chain.
Maintenance Capital Expenditures
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||||||
| (In thousands, except per cubic foot amounts) | ||||||||||||
| Real estate | $ | 20,830 | $ | 20,430 | $ | 37,165 | $ | 35,329 | ||||
| Personal property | 1,104 | 1,367 | 1,950 | 1,692 | ||||||||
| Information technology | 898 | 793 | 1,650 | 1,813 | ||||||||
| Maintenance capital expenditures(1) | $ | 22,832 | $ | 22,590 | $ | 40,765 | $ | 38,834 | ||||
| Maintenance capital expenditures per cubic foot | $ | 0.016 | $ | 0.015 | $ | 0.028 | $ | 0.026 |
(1) Excludes a nominal amount and $0.3 million of deferred acquisition maintenance capital expenditures incurred for three months ended June 30, 2024 and 2023, respectively. Excludes a nominal amount and $0.6 million deferred acquisition maintenance capital expenditures incurred for the six months ended June 30, 2024 and 2023, respectively.
Repair and Maintenance Expenses
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||||||
| (In thousands, except per cubic foot amounts) | ||||||||||||
| Real estate | $ | 10,349 | $ | 12,304 | $ | 24,937 | $ | 21,106 | ||||
| Personal property | 18,919 | 17,096 | 35,223 | 37,061 | ||||||||
| Repair and maintenance expenses | $ | 29,268 | $ | 29,400 | $ | 60,160 | $ | 58,167 | ||||
| Repair and maintenance expenses per cubic foot | $ | 0.020 | $ | 0.020 | $ | 0.042 | $ | 0.039 |
External Growth, Expansion and Development Capital Expenditures
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||||||
| (In thousands) | ||||||||||||
| Business combinations | $ | — | $ | 40,743 | $ | — | $ | 40,743 | ||||
| Asset acquisitions | — | 20,081 | — | 20,081 | ||||||||
| Expansion and development initiatives(2) | 32,881 | 19,567 | 62,833 | 48,290 | ||||||||
| Information technology | 2,759 | 1,721 | 3,739 | 3,334 | ||||||||
| Growth and expansion capital expenditures | $ | 35,640 | $ | 82,112 | $ | 66,572 | $ | 112,448 |
(2)We capitalized interest, insurance, compensation and travel expense of employees incurring direct and incremental costs to the development of $9.3 million and $5.3 million for the three months ended June 30, 2024 and 2023, respectively. During the six months ended June 30, 2024 and 2023, respectively, we capitalized interest, insurance, compensation and travel expense of employees incurring direct and incremental costs to the development of $17.6 million and $10.6 million.
| Financial Supplement | Second Quarter 2024 |
|---|
TOTAL GLOBAL WAREHOUSE SEGMENT FINANCIAL AND OPERATING PERFORMANCE
Global Warehouse Segment Financial Performance
The following table presents the operating results of our warehouse segment for the three months ended June 30, 2024 and 2023.
| Three Months Ended June 30, | Change | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 Actual | 2024 Constant Currency(1) | 2023 Actual | Actual | Constant Currency | |||||||||
| (Dollars in thousands) | |||||||||||||
| Rent and storage | $ | 267,671 | $ | 273,751 | $ | 275,183 | (2.7) | % | (0.5) | % | |||
| Warehouse services | 332,716 | 337,351 | 305,987 | 8.7 | % | 10.3 | % | ||||||
| Total warehouse segment revenue | $ | 600,387 | $ | 611,102 | $ | 581,170 | 3.3 | % | 5.2 | % | |||
| Power | 37,082 | 38,124 | 35,992 | 3.0 | % | 5.9 | % | ||||||
| Other facilities costs (2) | 62,385 | 64,065 | 61,172 | 2.0 | % | 4.7 | % | ||||||
| Labor | 245,626 | 248,879 | 253,802 | (3.2) | % | (1.9) | % | ||||||
| Other services costs (3) | 50,763 | 51,934 | 57,362 | (11.5) | % | (9.5) | % | ||||||
| Total warehouse segment cost of operations | $ | 395,856 | $ | 403,002 | $ | 408,328 | (3.1) | % | (1.3) | % | |||
| Warehouse segment contribution (NOI) | $ | 204,531 | $ | 208,100 | $ | 172,842 | 18.3 | % | 20.4 | % | |||
| Warehouse rent and storage contribution (NOI) (4) | $ | 168,204 | $ | 171,562 | $ | 178,019 | (5.5) | % | (3.6) | % | |||
| Warehouse services contribution (NOI) (5) | $ | 36,327 | $ | 36,538 | $ | (5,177) | (801.7) | % | (805.8) | % | |||
| Total warehouse segment margin | 34.1 | % | 34.1 | % | 29.7 | % | 433 bps | 431 bps | |||||
| Rent and storage margin(6) | 62.8 | % | 62.7 | % | 64.7 | % | -185 bps | -202 bps | |||||
| Warehouse services margin(7) | 10.9 | % | 10.8 | % | (1.7) | % | 1261 bps | 1252 bps |
(1)The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis are the effect of changes in foreign currency exchange rates relative to the comparable prior period.
(2)Includes real estate rent expense of $9.2 million and $9.5 million for the three months ended June 30, 2024 and 2023, respectively.
(3)Includes non-real estate rent expense (equipment lease and rentals) of $3.0 million and $3.4 million for the three months ended June 30, 2024 and 2023, respectively.
(4)Calculated as rent and storage revenues less power and other facilities costs.
(5)Calculated as warehouse services revenues less labor and other services costs.
(6)Calculated as warehouse rent and storage contribution (NOI) divided by warehouse rent and storage revenues.
(7)Calculated as warehouse services contribution (NOI) divided by warehouse services revenues.
| Financial Supplement | Second Quarter 2024 |
|---|
The following table presents the operating results of our warehouse segment for the six months ended ended June 30, 2024 and 2023.
| Six Months Ended June 30, | Change | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 Actual | 2024 Constant Currency(1) | 2023 Actual | Actual | Constant Currency | |||||||||
| (Dollars in thousands) | |||||||||||||
| Rent and storage | $ | 537,095 | $ | 548,390 | $ | 546,591 | (1.7) | % | 0.3 | % | |||
| Warehouse services | 661,002 | 669,779 | 629,631 | 5.0 | % | 6.4 | % | ||||||
| Total warehouse segment revenues | 1,198,097 | 1,218,169 | 1,176,222 | 1.9 | % | 3.6 | % | ||||||
| Power | 70,415 | 72,494 | 72,040 | (2.3) | % | 0.6 | % | ||||||
| Other facilities costs (2) | 127,980 | 131,108 | 121,972 | 4.9 | % | 7.5 | % | ||||||
| Labor | 493,799 | 500,011 | 512,343 | (3.6) | % | (2.4) | % | ||||||
| Other services costs (3) | 104,241 | 106,492 | 122,198 | (14.7) | % | (12.9) | % | ||||||
| Total warehouse segment cost of operations | $ | 796,435 | $ | 810,105 | $ | 828,553 | (3.9) | % | (2.2) | % | |||
| Warehouse segment contribution (NOI) | $ | 401,662 | $ | 408,064 | $ | 347,669 | 15.5 | % | 17.4 | % | |||
| Warehouse rent and storage contribution (NOI) (4) | $ | 338,700 | $ | 344,788 | $ | 352,579 | (3.9) | % | (2.2) | % | |||
| Warehouse services contribution (NOI) (5) | $ | 62,962 | $ | 63,276 | $ | (4,910) | (1,382.3) | % | (1,388.7) | % | |||
| Total warehouse segment margin | 33.5 | % | 33.5 | % | 29.6 | % | 397 bps | 394 bps | |||||
| Rent and storage margin(6) | 63.1 | % | 62.9 | % | 64.5 | % | -144 bps | -163 bps | |||||
| Warehouse services margin(7) | 9.5 | % | 9.4 | % | (0.8) | % | 1031 bps | 1023 bps |
(1)The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis are the effect of changes in foreign currency exchange rates relative to the comparable prior period.
(2)Includes real estate rent expense of $18.4 million and $18.9 million, on an actual basis, for the six months ended ended June 30, 2024 and 2023, respectively.
(3)Includes non-real estate rent expense (equipment lease and rentals) of $6.5 million and $7.1 million, on an actual basis, for the six months ended June 30, 2024 and 2023, respectively.
(4)Calculated as rent and storage revenues less power and other facilities costs.
(5)Calculated as warehouse services revenues less labor and other services costs.
(6)Calculated as warehouse rent and storage contribution (NOI) divided by warehouse rent and storage revenues.
(7)Calculated as warehouse services contribution (NOI) divided by warehouse services revenues.
| Financial Supplement | Second Quarter 2024 |
|---|
Same-store Financial Performance - The following table presents revenues, cost of operations, NOI and margins for our same stores and non-same stores with a reconciliation to the total financial metrics of our warehouse segment for the three months ended June 30, 2024 and 2023.
| Three Months Ended June 30, | Change | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 Actual | 2024 Constant Currency(1) | 2023 Actual | Actual | Constant Currency | |||||||||
| Number of same store warehouses | 226 | 226 | n/a | n/a | |||||||||
| Same store revenues: | (Dollars in thousands) | ||||||||||||
| Rent and storage | $ | 257,924 | $ | 263,984 | $ | 264,134 | (2.4) | % | (0.1) | % | |||
| Warehouse services | 324,767 | 329,372 | 299,417 | 8.5 | % | 10.0 | % | ||||||
| Total same store revenues | $ | 582,691 | $ | 593,356 | $ | 563,551 | 3.4 | % | 5.3 | % | |||
| Same store cost of operations: | |||||||||||||
| Power | 35,494 | 36,533 | 34,167 | 3.9 | % | 6.9 | % | ||||||
| Other facilities costs | 59,193 | 60,800 | 57,190 | 3.5 | % | 6.3 | % | ||||||
| Labor | 234,276 | 237,487 | 240,574 | (2.6) | % | (1.3) | % | ||||||
| Other services costs | 47,124 | 48,289 | 55,415 | (15.0) | % | (12.9) | % | ||||||
| Total same store cost of operations | $ | 376,087 | $ | 383,109 | $ | 387,346 | (2.9) | % | (1.1) | % | |||
| Same store contribution (NOI) | $ | 206,604 | $ | 210,247 | $ | 176,205 | 17.3 | % | 19.3 | % | |||
| Same store rent and storage contribution (NOI)(2) | $ | 163,237 | $ | 166,651 | $ | 172,777 | (5.5) | % | (3.5) | % | |||
| Same store services contribution (NOI)(3) | $ | 43,367 | $ | 43,596 | $ | 3,428 | 1,165.1 | % | 1,171.8 | % | |||
| Total same store margin | 35.5 | % | 35.4 | % | 31.3 | % | 419 bps | 417 bps | |||||
| Same store rent and storage margin(4) | 63.3 | % | 63.1 | % | 65.4 | % | -212 bps | -228 bps | |||||
| Same store services margin(5) | 13.4 | % | 13.2 | % | 1.1 | % | 1221 bps | 1209 bps | |||||
| Number of non-same store warehouses(6) | 9 | 11 | n/a | n/a | |||||||||
| Non-same store revenues: | |||||||||||||
| Rent and storage | $ | 9,747 | $ | 9,767 | $ | 11,049 | n/r | n/r | |||||
| Warehouse services | 7,949 | 7,979 | 6,570 | n/r | n/r | ||||||||
| Total non-same store revenues | $ | 17,696 | $ | 17,746 | $ | 17,619 | n/r | n/r | |||||
| Non-same store cost of operations: | |||||||||||||
| Power | 1,588 | 1,591 | 1,825 | n/r | n/r | ||||||||
| Other facilities costs | 3,192 | 3,265 | 3,982 | n/r | n/r | ||||||||
| Labor | 11,350 | 11,392 | 13,228 | n/r | n/r | ||||||||
| Other services costs | 3,639 | 3,645 | 1,947 | n/r | n/r | ||||||||
| Total non-same store cost of operations | $ | 19,769 | $ | 19,893 | $ | 20,982 | n/r | n/r | |||||
| Non-same store contribution (NOI) | $ | (2,073) | $ | (2,147) | $ | (3,363) | n/r | n/r | |||||
| Non-same store rent and storage contribution (NOI)(2) | $ | 4,967 | $ | 4,911 | $ | 5,242 | n/r | n/r | |||||
| Non-same store services contribution (NOI)(3) | $ | (7,040) | $ | (7,058) | $ | (8,605) | n/r | n/r | |||||
| Total warehouse segment revenues | $ | 600,387 | $ | 611,102 | $ | 581,170 | 3.3 | % | 5.2 | % | |||
| Total warehouse cost of operations | $ | 395,856 | $ | 403,002 | $ | 408,328 | (3.1) | % | (1.3) | % | |||
| Total warehouse segment contribution (NOI) | $ | 204,531 | $ | 208,100 | $ | 172,842 | 18.3 | % | 20.4 | % | |||
| (1) | The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis is the effect of changes in foreign currency exchange rates relative to the comparable prior period. | ||||||||||||
| --- | --- | ||||||||||||
| (2) | Calculated as rent and storage revenues less power and other facilities costs. | ||||||||||||
| (3) | Calculated as warehouse services revenues less labor and other services costs. | ||||||||||||
| (4) | Calculated as same store rent and storage contribution (NOI) divided by same store rent and storage revenues. | ||||||||||||
| (5) | Calculated as same store warehouse services contribution (NOI) divided by same store warehouse services revenues. | ||||||||||||
| (6) | The non-same store facility count consists of: five sites in the expansion and development phase, two facilities that we purchased in 2023, one facility that requires capital investment in anticipation of repurposing, and one site in which we have ceased operations and intend to lease to a third party. | ||||||||||||
| Financial Supplement | Second Quarter 2024 | ||||||||||||
| --- | --- |
The following table presents revenues, cost of operations, NOI and margins for our same stores and non-same stores with a reconciliation to the total financial metrics of our warehouse segment for the six months ended June 30, 2024 and 2023.
| Six Months Ended June 30, | Change | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 Actual | 2024 Constant Currency(1) | 2023 Actual | Actual | Constant Currency | ||||||||||||
| Number of same store warehouses | 226 | 226 | n/a | n/a | ||||||||||||
| Same store revenues: | (Dollars in thousands) | |||||||||||||||
| Rent and storage | $ | 514,220 | $ | 525,434 | $ | 528,184 | (2.6) | % | (0.5) | % | ||||||
| Warehouse services | 645,183 | 653,819 | 616,395 | 4.7 | % | 6.1 | % | |||||||||
| Total same store revenues | 1,159,403 | 1,179,253 | 1,144,579 | 1.3 | % | 3.0 | % | |||||||||
| Same store cost of operations: | ||||||||||||||||
| Power | 66,719 | 68,787 | 68,976 | (3.3) | % | (0.3) | % | |||||||||
| Other facilities costs | 118,388 | 121,413 | 114,460 | 3.4 | % | 6.1 | % | |||||||||
| Labor | 469,836 | 475,911 | 487,037 | (3.5) | % | (2.3) | % | |||||||||
| Other services costs | 97,273 | 99,509 | 113,182 | (14.1) | % | (12.1) | % | |||||||||
| Total same store cost of operations | $ | 752,216 | $ | 765,620 | $ | 783,655 | (4.0) | % | (2.3) | % | ||||||
| Same store contribution (NOI) | $ | 407,187 | $ | 413,633 | $ | 360,924 | 12.8 | % | 14.6 | % | ||||||
| Same store rent and storage contribution (NOI)(2) | $ | 329,113 | $ | 335,234 | $ | 344,748 | (4.5) | % | (2.8) | % | ||||||
| Same store services contribution (NOI)(3) | $ | 78,074 | $ | 78,399 | $ | 16,176 | 382.7 | % | 384.7 | % | ||||||
| Total same store margin | 35.1 | % | 35.1 | % | 31.5 | % | 359 bps | 354 bps | ||||||||
| Same store rent and storage margin(4) | 64.0 | % | 63.8 | % | 65.3 | % | -127 bps | -147 bps | ||||||||
| Same store services margin(5) | 12.1 | % | 12.0 | % | 2.6 | % | 948 bps | 937 bps | ||||||||
| Number of non-same store warehouses(6) | 9 | 11 | n/a | n/a | ||||||||||||
| Non-same store revenues: | ||||||||||||||||
| Rent and storage | $ | 22,875 | $ | 22,956 | $ | 18,407 | n/r | n/r | ||||||||
| Warehouse services | 15,819 | 15,960 | 13,236 | n/r | n/r | |||||||||||
| Total non-same store revenues | 38,694 | 38,916 | 31,643 | n/r | n/r | |||||||||||
| Non-same store cost of operations: | ||||||||||||||||
| Power | 3,696 | 3,707 | 3,064 | n/r | n/r | |||||||||||
| Other facilities costs | 9,592 | 9,695 | 7,512 | n/r | n/r | |||||||||||
| Labor | 23,963 | 24,100 | 25,306 | n/r | n/r | |||||||||||
| Other services costs | 6,968 | 6,983 | 9,016 | n/r | n/r | |||||||||||
| Total non-same store cost of operations | $ | 44,219 | $ | 44,485 | $ | 44,898 | n/r | n/r | ||||||||
| Non-same store contribution (NOI) | $ | (5,525) | $ | (5,569) | $ | (13,255) | n/r | n/r | ||||||||
| Non-same store rent and storage contribution (NOI)(2) | $ | 9,587 | $ | 9,554 | $ | 7,831 | n/r | n/r | ||||||||
| Non-same store services contribution (NOI)(3) | $ | (15,112) | $ | (15,123) | $ | (21,086) | n/r | n/r | ||||||||
| Total warehouse segment revenues | $ | 1,198,097 | $ | 1,218,169 | $ | 1,176,222 | 1.9 | % | 3.6 | % | ||||||
| Total warehouse cost of operations | $ | 796,435 | $ | 810,105 | $ | 828,553 | (3.9) | % | (2.2) | % | ||||||
| Total warehouse segment contribution (NOI) | $ | 401,662 | $ | 408,064 | $ | 347,669 | 15.5 | % | 17.4 | % | (1) | The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis is the effect of changes in foreign currency exchange rates relative to the comparable prior period. | ||||
| --- | --- | |||||||||||||||
| (2) | Calculated as rent and storage revenues less power and other facilities costs. | |||||||||||||||
| (3) | Calculated as warehouse services revenues less labor and other services costs. | |||||||||||||||
| (4) | Calculated as same store rent and storage contribution (NOI) divided by same store rent and storage revenues. | |||||||||||||||
| (5) | Calculated as same store warehouse services contribution (NOI) divided by same store warehouse services revenues. | |||||||||||||||
| (6) | The non-same store facility count consists of: five sites in the expansion and development phase, two facilities that we purchased in 2023, one facility that requires capital investment in anticipation of repurposing, and one site in which we have ceased operations and intend to lease to a third party. | |||||||||||||||
| Financial Supplement | Second Quarter 2024 | |||||||||||||||
| --- | --- |
Same-store Key Operating Metrics
The following table provides certain operating metrics to explain the drivers of our same store performance for the three months ended June 30, 2024 and 2023.
| Three Months Ended June 30, | Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Units in thousands except per pallet and site data | 2024 | 2023 | ||||||
| Number of same store warehouses | 226 | 226 | n/a | |||||
| Same store rent and storage: | ||||||||
| Economic occupancy(1) | ||||||||
| Average economic occupied pallets | 4,165 | 4,468 | (6.8) | % | ||||
| Economic occupancy percentage | 79.4 | % | 84.7 | % | -526 bps | |||
| Same store rent and storage revenues per average economic occupied pallet | $ | 61.94 | $ | 59.12 | 4.8 | % | ||
| Constant currency same store rent and storage revenue per average economic occupied pallet | $ | 63.38 | $ | 59.12 | 7.2 | % | ||
| Physical occupancy(2) | ||||||||
| Average physical occupied pallets | 3,615 | 4,099 | (11.8) | % | ||||
| Average physical pallet positions | 5,245 | 5,277 | (0.6) | % | ||||
| Physical occupancy percentage | 68.9 | % | 77.7 | % | -875 bps | |||
| Same store rent and storage revenues per average physical occupied pallet | $ | 71.34 | $ | 64.44 | 10.7 | % | ||
| Constant currency same store rent and storage revenues per average physical occupied pallet | $ | 73.02 | $ | 64.44 | 13.3 | % | ||
| Same store warehouse services: | ||||||||
| Throughput pallets | 8,717 | 8,873 | (1.8) | % | ||||
| Same store warehouse services revenues per throughput pallet | $ | 37.26 | $ | 33.74 | 10.4 | % | ||
| Constant currency same store warehouse services revenues per throughput pallet | $ | 37.79 | $ | 33.74 | 12.0 | % | ||
| Number of non-same store warehouses(3) | 9 | 11 | n/a | |||||
| Non-same store rent and storage: | ||||||||
| Economic occupancy(1) | ||||||||
| Average economic occupied pallets | 146 | 112 | n/r | |||||
| Economic occupancy percentage | 53.3 | % | 76.2 | % | n/r | |||
| Physical occupancy(2) | ||||||||
| Average physical occupied pallets | 125 | 88 | n/r | |||||
| Average physical pallet positions | 274 | 147 | n/r | |||||
| Physical occupancy percentage | 45.6 | % | 59.9 | % | n/r | |||
| Non-same store warehouse services: | ||||||||
| Throughput pallets | 307 | 245 | n/r |
(1)We define average economic occupancy as the aggregate number of physically occupied pallets and any additional pallets otherwise contractually committed for a given period, without duplication. We estimate the number of contractually committed pallet positions by taking into account actual pallet commitments specified in each customer’s contract, and subtracting the physical pallet positions.
(2)We define average physical occupancy as the average number of occupied pallets divided by the estimated number of average physical pallet positions in our warehouses for the applicable period. We estimate the number of physical pallet positions by taking into account actual racked space and by estimating unracked space on an as-if racked basis. We base this estimate on a formula utilizing the total cubic feet of each room within the warehouse that is unracked divided by the volume of an assumed rack space that is consistent with the characteristics of the relevant warehouse. On a warehouse by warehouse basis, rack space generally ranges from three to four feet depending upon the type of facility and the nature of the customer goods stored therein. The number of our pallet positions is reviewed and updated quarterly, taking into account changes in racking configurations and room utilization.
(3)The non-same store facility count consists of: five sites in the expansion and development phase, two facilities that we purchased in 2023, one facility that requires capital investment in anticipation of repurposing, and one site in which we have ceased operations and intend to lease to a third party.
| Financial Supplement | Second Quarter 2024 |
|---|
The following table provides certain operating metrics to explain the drivers of our same store performance for the six months ended June 30, 2024 and 2023.
| Six Months Ended June 30, | ||||||||
|---|---|---|---|---|---|---|---|---|
| Units in thousands except per pallet and site number data | 2024 | 2023 | Change | |||||
| Number of same store sites | 226 | 226 | n/a | |||||
| Same store rent and storage: | ||||||||
| Economic occupancy(1) | ||||||||
| Average occupied economic pallets | 4,204 | 4,460 | (5.7) | % | ||||
| Economic occupancy percentage | 80.2 | % | 84.5 | % | -437 bps | |||
| Same store rent and storage revenues per average economic occupied pallet | $ | 122.34 | $ | 118.42 | 3.3 | % | ||
| Constant currency same store rent and storage revenues per average economic occupied pallet | $ | 124.98 | $ | 118.42 | 5.5 | % | ||
| Physical occupancy(2) | ||||||||
| Average physical occupied pallets | 3,649 | 4,103 | (11.1) | % | ||||
| Average physical pallet positions | 5,245 | 5,277 | (0.6) | % | ||||
| Physical occupancy percentage | 69.6 | % | 77.8 | % | -818 bps | |||
| Same store rent and storage revenues per average physical occupied pallet | $ | 140.94 | $ | 128.73 | 9.5 | % | ||
| Constant currency same store rent and storage revenues per average physical occupied pallet | $ | 143.99 | $ | 128.73 | 11.9 | % | ||
| Same store warehouse services: | ||||||||
| Throughput pallets (in thousands) | 17,398 | 18,269 | (4.8) | % | ||||
| Same store warehouse services revenues per throughput pallet | $ | 37.08 | $ | 33.74 | 9.9 | % | ||
| Constant currency same store warehouse services revenues per throughput pallet | $ | 37.58 | $ | 33.74 | 11.4 | % | ||
| Number of non-same store sites(3) | 9 | 11 | n/a | |||||
| Non-same store rent and storage: | ||||||||
| Economic occupancy(1) | ||||||||
| Average economic occupied pallets | 149 | 106 | n/r | |||||
| Economic occupancy percentage | 53.2 | % | 73.6 | % | n/r | |||
| Physical occupancy(2) | ||||||||
| Average physical occupied pallets | 126 | 85 | n/r | |||||
| Average physical pallet positions | 280 | 144 | n/r | |||||
| Physical occupancy percentage | 45.0 | % | 59.0 | % | n/r | |||
| Non-same store warehouse services: | ||||||||
| Throughput pallets (in thousands) | 677 | 501 | n/r |
(1)We define average economic occupancy as the aggregate number of physically occupied pallets and any additional pallets otherwise contractually committed for a given period, without duplication. We estimate the number of contractually committed pallet positions by taking into account actual pallet commitments specified in each customer’s contract, and subtracting the physical pallet positions.
(2)We define average physical occupancy as the average number of occupied pallets divided by the estimated number of average physical pallet positions in our warehouses for the applicable period. We estimate the number of physical pallet positions by taking into account actual racked space and by estimating unracked space on an as-if racked basis. We base this estimate on a formula utilizing the total cubic feet of each room within the warehouse that is unracked divided by the volume of an assumed rack space that is consistent with the characteristics of the relevant warehouse. On a warehouse by warehouse basis, rack space generally ranges from three to four feet depending upon the type of facility and the nature of the customer goods stored therein. The number of our pallet positions is reviewed and updated quarterly, taking into account changes in racking configurations and room utilization.
(3)The non-same store facility count consists of: five sites in the expansion and development phase, two facilities that we purchased in 2023, one facility that requires capital investment in anticipation of repurposing, and one site in which we have ceased operations and intend to lease to a third party.
| Financial Supplement | Second Quarter 2024 |
|---|
2024 Same-store Historical Performance Trend - The following table reflects the actual results of our current same store pool, in USD, for the respective periods.
| Q2 24 | Q1 24 | Q4 23 | Q3 23 | Q2 23 | Q1 23 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Number of same store warehouses | 226 | 226 | 226 | 226 | 226 | 226 | ||||||
| Same store revenues: | ||||||||||||
| Rent and storage | 257,924 | 256,296 | 263,932 | 266,947 | 264,134 | 264,050 | ||||||
| Warehouse services | 324,767 | 320,416 | 327,606 | 316,769 | 299,417 | 316,978 | ||||||
| Total same store revenues | 582,691 | 576,712 | 591,538 | 583,716 | 563,551 | 581,028 | ||||||
| Same store cost of operations: | ||||||||||||
| Power | 35,494 | 31,225 | 31,529 | 39,396 | 34,167 | 34,809 | ||||||
| Other facilities costs | 59,193 | 59,195 | 60,569 | 57,367 | 57,190 | 57,270 | ||||||
| Labor | 234,276 | 235,560 | 244,348 | 247,648 | 240,574 | 246,463 | ||||||
| Other services costs | 47,124 | 50,149 | 62,731 | 57,895 | 55,415 | 57,767 | ||||||
| Total same store cost of operations | 376,087 | 376,129 | 399,177 | 402,306 | 387,346 | 396,309 | ||||||
| Same store contribution (NOI) | 206,604 | 200,583 | 192,361 | 181,410 | 176,205 | 184,719 | ||||||
| Same store rent and storage contribution (NOI)(1) | 163,237 | 165,876 | 171,834 | 170,184 | 172,777 | 171,971 | ||||||
| Same store services contribution (NOI)(2) | 43,367 | 34,707 | 20,527 | 11,226 | 3,428 | 12,748 | ||||||
| Total same store margin | 35.5 | % | 34.8 | % | 32.5 | % | 31.1 | % | 31.3 | % | 31.8 | % |
| Same store rent and storage margin(3) | 63.3 | % | 64.7 | % | 65.1 | % | 63.8 | % | 65.4 | % | 65.1 | % |
| Same store services margin(4) | 13.4 | % | 10.8 | % | 6.3 | % | 3.5 | % | 1.1 | % | 4.0 | % |
| Same store rent and storage: | ||||||||||||
| Economic occupancy | ||||||||||||
| Average economic occupied pallets | 4,165 | 4,242 | 4,397 | 4,390 | 4,468 | 4,453 | ||||||
| Economic occupancy percentage | 79.4 | % | 80.9 | % | 84.0 | % | 83.9 | % | 84.7 | % | 84.4 | % |
| Same store rent and storage revenues per economic occupied pallet | 61.92 | 60.42 | 60.03 | 60.81 | 59.12 | 59.30 | ||||||
| Physical occupancy | ||||||||||||
| Average physical occupied pallets | 3,615 | 3,683 | 3,919 | 3,966 | 4,099 | 4,107 | ||||||
| Average physical pallet positions | 5,245 | 5,246 | 5,235 | 5,235 | 5,277 | 5,277 | ||||||
| Physical occupancy percentage | 68.9 | % | 70.2 | % | 74.9 | % | 75.8 | % | 77.7 | % | 77.8 | % |
| Same store rent and storage revenues per physical occupied pallet | 71.35 | 69.59 | 67.34 | 67.30 | 64.43 | 64.30 | ||||||
| Same store warehouse services: | ||||||||||||
| Throughput pallets | 8,717 | 8,681 | 9,043 | 9,106 | 8,873 | 9,396 | ||||||
| Same store warehouse services revenues per throughput pallet | 37.26 | 36.91 | 36.23 | 34.79 | 33.74 | 33.74 | ||||||
| Total non-same store results: | ||||||||||||
| Non-same store warehouse revenue | ||||||||||||
| Non-same store warehouse cost of operations | ||||||||||||
| Non-same store warehouse NOI | ||||||||||||
| Actual FX rates for the period | Q2 24 | Q1 24 | Q4 23 | Q3 23 | Q2 23 | Q1 23 | ||||||
| 1 ARS = | 0.001 | 0.001 | 0.003 | 0.003 | 0.004 | 0.005 | ||||||
| 1 AUS = | 0.659 | 0.658 | 0.652 | 0.654 | 0.672 | 0.684 | ||||||
| 1 BRL = | 0.192 | 0.202 | 0.202 | 0.205 | 0.206 | 0.193 | ||||||
| 1 CAD = | 0.731 | 0.742 | 0.735 | 0.745 | 0.753 | 0.740 | ||||||
| 1 CLP = | 0.001 | 0.001 | 0.001 | 0.001 | 0.001 | 0.001 | ||||||
| 1 EUR = | 1.077 | 1.086 | 1.076 | 1.088 | 1.084 | 1.073 | ||||||
| 1 GBP = | 1.262 | 1.268 | 1.242 | 1.266 | 1.264 | 1.215 | ||||||
| 1 NZD = | 0.605 | 0.613 | 0.604 | 0.605 | 0.614 | 0.630 | ||||||
| 1 PLN = | 0.250 | 0.251 | 0.244 | 0.242 | 0.243 | 0.228 |
All values are in US Dollars.
(1)Calculated as rent and storage revenues less power and other facilities costs.
(2)Calculated as warehouse services revenues less labor and other services costs.
(3)Calculated as warehouse rent and storage contribution (NOI) divided by warehouse rent and storage revenues.
(4)Calculated as warehouse services contribution (NOI) divided by warehouse services revenues.
| Financial Supplement | Second Quarter 2024 |
|---|
External Growth and Capital Deployment
| Recently Completed Expansion and Development Projects - Non Same Store | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Facility | Opportunity Type | Facility Type<br> (A = Automated)<br> (C = Conventional) | Tenant Opportunity | Cubic Feet<br>(in millions) | Pallet Positions<br>(in thousands) | Cost to Complete<br><br>(in millions)(1) | Expected<br>Stabilized<br>NOI ROIC | Completion Date | Expected Full Stabilized Quarter |
| Lancaster, PA | Development | Distribution (A) | Build-to-suit | 11.4 | 28 | $164 | 10-12% | Q1 2023 | Q3 2025 |
| Gateway, GA Phase 2 | Expansion | Distribution (A) | Multi-tenant | 6.3 | 24 | $39 | 10-12% | Q2 2023 | Q1 2025 |
| Russellville, AR | Expansion | Production Advantaged (A) | Build-to-suit | 13.0 | 42 | $90 | 10-12% | Q3 2023 | Q4 2024 |
| Spearwood, Australia | Expansion | Distribution (A) | Multi-tenant | 3.3 | 20 | A$64 | 10-12% | Q3 2023 | Q1 2025 |
| Plainville, CT | Development | Distribution (A) | Build-to-suit | 12.1 | 31 | $161 | 10-12% | Q4 2023 | Q4 2025 |
(1)Cost to complete represents total costs incurred through the completion date. These amounts exclude additional costs incurred to reach stabilization, which do not materially impact the currently disclosed return on invested capital estimates.
| Expansion and Development Projects In Process and Announced - Non Same Store | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Facility Type<br> (A = Automated)<br> (C = Conventional) | Under<br>Construction | Investment in Expansion / Development<br>(in millions) | Expected<br>Stabilized<br>NOI ROIC | Target<br>Complete<br>Date | Expected Full Stabilized Quarter | ||||||||||
| Facility | Opportunity Type | Tenant Opportunity | Cubic Feet<br><br>(millions) (1) | Pallet<br><br>Positions<br><br>(thousands) (1) | Cost to Date (2) | Estimate to<br>Complete | Total Estimated<br>Cost | ||||||||
| Allentown, PA | Expansion | Distribution (C) | Multi-tenant | 14.6 | 37 | $10 | $75-$80 | $85-$90 | 10-12% | Q2 2025 | Q1 2027 | ||||
| Kansas City, MO | Development | Distribution (C) | Multi-tenant | 13.5 | 22 | $10 | $117 - $123 | $127 - $133 | 10-12% | Q2 2025 | Q1 2026 | ||||
| Sydney, Australia | Expansion | Distribution (C) | Multi-tenant | 2.8 | 13 | A$2 | A$42- A$44 | A$44 - A$46 | 10-12% | Q1 2026 | Q1 2027 |
(1)Cubic feet and pallet positions are estimates while the facilities are under construction.
(2)Cost as of June 30, 2024.
| Recent Acquisitions - Non Same Store | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Facility | Metropolitan Area | No. of Facilities | Cubic Feet<br>(in millions) | Pallet<br>Positions<br>(in thousands) | Acquisition Price (in millions) (1) | Net Entry NOI Yield (1) | Expected Three Year Stabilized<br>NOI ROIC | Date Purchased | Expected Full Stabilized Quarter | |
| Ormeau | Australia | 1 | 2.1 | 10 | A$36.1 | — | 9-10% | 7/7/2023 | Q2 2026 | |
| Safeway | New Jersey | 1 | 6.0 | 17 | $37.0 | 8.9 | % | 9-10% | 10/5/2023 | Q3 2026 |
(1) Inclusive of expenses required to integrate and reach stabilization.
| Financial Supplement | Second Quarter 2024 |
|---|
Unconsolidated Joint Ventures (Investments in Partially Owned Entities)
As of June 30, 2024, the Company owned a 14.99% equity share in the Brazil-based SuperFrio. The debt of our unconsolidated joint venture is non-recourse to us, except for customary exceptions pertaining to such matters as intentional misuse of funds, environmental conditions and material misrepresentations.
| SuperFrio | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| As of | ||||||||||||||
| Summary Balance Sheet - at the JV’s 100% share in BRLs | Q2 24 | Q1 24 | Q4 23 | Q3 23 | Q2 23 | |||||||||
| (’s in thousands) | ||||||||||||||
| Net book value of property, buildings and equipment | R | R$ | 1,135,219 | R$ | 1,116,560 | R$ | 1,107,455 | R$ | 1,119,533 | |||||
| Other assets | 493,244 | 508,905 | 490,036 | 463,194 | 476,615 | |||||||||
| Total assets | 1,626,264 | 1,644,124 | 1,606,596 | 1,570,649 | 1,596,148 | |||||||||
| Debt | 725,877 | 731,429 | 686,298 | 646,243 | 666,362 | |||||||||
| Other liabilities | 538,700 | 518,764 | 496,756 | 500,639 | 492,444 | |||||||||
| Equity | 361,687 | 393,931 | 423,542 | 423,767 | 437,342 | |||||||||
| Total liabilities and equity | R | R$ | 1,644,124 | R$ | 1,606,596 | R$ | 1,570,649 | R$ | 1,596,148 | |||||
| Americold’s ownership percentage | 15 | % | 15 | % | 15 | % | 15 | % | 15 | % | ||||
| BRL/USD quarter-end rate | 0.1789 | 0.1994 | 0.2061 | 0.1987 | 0.2089 | |||||||||
| Americold’s pro rata share of debt at BRL/USD rate | $ | 21,877 | $ | 21,217 | $ | 19,261 | $ | 20,880 | ||||||
| Three Months Ended | ||||||||||||||
| Summary Statement of Operations - at the JV’s 100% share in BRLs | Q2 24 | Q1 24 | Q4 23 | Q3 23 | Q2 23 | |||||||||
| (’s in thousands) | ||||||||||||||
| Revenues | R | R$ | 145,274 | R$ | 169,006 | R$ | 161,229 | R$ | 158,418 | |||||
| Cost of operations | 112,283 | 111,612 | 110,295 | 110,741 | 113,467 | |||||||||
| Selling, general and administrative expense | 6,126 | 7,400 | 7,523 | 7,464 | 8,111 | |||||||||
| M&A expense | 5,664 | 3,228 | (5,677) | 4,896 | (919) | |||||||||
| Depreciation & amortization | 17,084 | 18,654 | 20,315 | 19,658 | 19,846 | |||||||||
| Total operating expenses | 141,157 | 140,894 | 132,456 | 142,759 | 140,505 | |||||||||
| Operating income | 7,993 | 4,380 | 36,550 | 18,470 | 17,913 | |||||||||
| Interest expense | 36,683 | 30,349 | 31,831 | 31,292 | 32,977 | |||||||||
| Other (income) expense | (1,023) | (779) | (981) | (906) | (1,532) | |||||||||
| Current income tax expense (benefit) | 722 | 586 | (347) | 1,012 | 890 | |||||||||
| Deferred income tax (benefit) expense | (634) | (634) | 124 | (732) | (78) | |||||||||
| Non-operating expenses | 35,748 | 29,522 | 30,627 | 30,666 | 32,257 | |||||||||
| Net (loss) gain | R | R$ | (25,142) | R$ | 5,923 | R$ | (12,196) | R$ | (14,344) | |||||
| Americold’s ownership percentage | 15 | % | 15 | % | 15 | % | 15 | % | 15 | % | ||||
| BRL/USD average rate | 0.1917 | 0.2019 | 0.2019 | 0.2047 | 0.2022 | |||||||||
| Americold’s pro rata share of NOI | $ | 1,019 | $ | 1,778 | $ | 1,550 | $ | 1,363 | ||||||
| Americold’s pro rata share of Net (loss) gain | $ | (761) | $ | 179 | $ | (374) | $ | (435) | ||||||
| Americold’s pro rata share of Core FFO | $ | (371) | $ | 309 | $ | 73 | $ | (225) | ||||||
| Americold’s pro rata share of AFFO | $ | (159) | $ | 526 | $ | 275 | $ | 85 |
All values are in US Dollars.
| Financial Supplement | Second Quarter 2024 |
|---|
As of June 30, 2024, the Company owned a 49% equity share in the Dubai-based RSA joint venture. The debt of our unconsolidated joint venture is non-recourse to us, except for customary exceptions pertaining to such matters as intentional misuse of funds, environmental conditions and material misrepresentations.
| RSA | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| As of | |||||||||||||||
| Summary Balance Sheet - at the JV’s 100% share in AED | Q2 24 | Q1 24 | Q4 23 | Q3 23 | Q2 23 | ||||||||||
| (in thousands) | |||||||||||||||
| Net book value of property, buildings and equipment | 67,102 | 43,395 | 35,636 | 32,531 | 28,802 | ||||||||||
| Other assets | 11,043 | 3,763 | 5,918 | 6,605 | 4,668 | ||||||||||
| Total assets | 78,145 | 47,158 | 41,554 | 39,136 | 33,470 | ||||||||||
| Debt | 49,793 | 25,028 | 15,936 | 14,532 | 10,094 | ||||||||||
| Other liabilities | 10,871 | 3,540 | 5,428 | 4,378 | 3,460 | ||||||||||
| Equity | 17,481 | 18,590 | 20,190 | 20,226 | 19,916 | ||||||||||
| Total liabilities and equity | 78,145 | 47,158 | 41,554 | 39,136 | 33,470 | ||||||||||
| Americold’s ownership percentage | 49 | % | 49 | % | 49 | % | 49 | % | 49 | % | |||||
| AED/USD quarter-end rate | 0.2723 | 0.2723 | 0.2723 | 0.2723 | 0.2723 | ||||||||||
| Americold’s pro rata share of debt at AED/USD rate | $ | 6,644 | $ | 3,339 | $ | 2,126 | $ | 1,939 | $ | 1,347 | |||||
| Three Months Ended | |||||||||||||||
| Summary Statement of Operations - at the JV’s 100% share in AED | Q2 24 | Q1 24 | Q4 23 | Q3 23 | Q2 23 | ||||||||||
| (in thousands) | |||||||||||||||
| Revenues | 3,835 | 2,762 | 4,778 | 4,924 | 3,751 | ||||||||||
| Cost of operations | 4,313 | 3,755 | 4,169 | 3,973 | 3,047 | ||||||||||
| Depreciation & amortization | 415 | 414 | 417 | 412 | 395 | ||||||||||
| Total operating expenses | 4,728 | 4,169 | 4,586 | 4,385 | 3,442 | ||||||||||
| Operating (loss) income | (893) | (1,407) | 192 | 539 | 309 | ||||||||||
| Interest expense | 216 | 193 | 228 | 229 | 208 | ||||||||||
| Non-operating expenses | 216 | 193 | 228 | 229 | 208 | ||||||||||
| Net (loss) gain | (1,109) | (1,600) | (36) | 310 | 101 | ||||||||||
| Americold’s ownership percentage | 49 | % | 49 | % | 49 | % | 49 | % | 49 | % | |||||
| AED/USD quarter-end rate | 0.2723 | 0.2723 | 0.2723 | 0.2723 | 0.2723 | ||||||||||
| Americold’s pro rata share of NOI | $ | (64) | $ | (132) | $ | 81 | $ | 127 | $ | 94 | |||||
| Americold’s pro rata share of Net (loss) gain | $ | (148) | $ | (213) | $ | (5) | $ | 41 | $ | 13 | |||||
| Financial Supplement | Second Quarter 2024 | ||||||||||||||
| --- | --- |
2024 Guidance
The ranges for these metrics do not include the impact of acquisitions, dispositions, or capital markets activity beyond that which has been previously announced.
| As of | As of | As of | |
|---|---|---|---|
| August 8, 2024 | May 9, 2024 | February 22, 2024 | |
| Warehouse segment same store revenue growth (constant currency) | 2.0% - 4.0% | 2.5% - 5.5% | 2.5% - 5.5% |
| Warehouse segment same store NOI growth (constant currency) | 900 - 1000 bps higher than associated revenue | 700 - 750 bps higher than associated revenue | 400 - 450 bps higher than associated revenue |
| Warehouse segment non-same store NOI | $(7)M - $1M | $(7)M - $1M | $(3)M - $9M |
| Transportation and Managed segment NOI | $42M - $47M | $42M - $47M | $45M - $50M |
| Total selling, general and administrative expense (inclusive of share-based compensation expense of $23M - $25M and $5M - $7M of Orion amortization) | $247M - $261M | $247M - $261M | $247M - $261M |
| Interest expense | $133M - $141M | $135M - $143M | $141M - $149M |
| Current income tax expense | $7M - $10M | $9M - $12M | $9M - $12M |
| Deferred income tax benefit | $6M - $8M | $6M - $8M | $6M - $8M |
| Non real estate depreciation and amortization expense | $133M - $141M | $127M - $135M | $127M - $135M |
| Total maintenance capital expenditures | $80M - $90M | $80M - $90M | $80M - $90M |
| Development starts (1) | $200M - $300M | $200M - $300M | $200M - $300M |
| AFFO per share | $1.44 - $1.50 | $1.38 - $1.46 | $1.32 - $1.42 |
| Assumed FX rates | 1 ARS = 0.0011 USD<br><br>1 AUS = 0.6614 USD<br><br>1 BRL = 0.0170 USD<br><br>1 CAD = 0.7330 USD<br><br>1 EUR = 1.079 USD<br><br>1 GBP = 1.2680 USD<br><br>1 NZD = 0.6113 USD<br><br>1 PLN = 0.2498 USD | 1 ARS = 0.0012 USD<br>1 AUS = 0.6576 USD<br>1 BRL = 0.1925 USD<br>1 CAD = 0.7401 USD<br>1 EUR = 1.0857 USD<br>1 GBP = 1.2684 USD<br>1 NZD = 0.6128 USD<br>1 PLN = 0.2507 USD | 1 ARS = 0.0012 USD<br><br>1 AUS = 0.6615 USD<br><br>1 BRL = 0.2016 USD<br><br>1 CAD = 0.7438 USD<br><br>1 EUR = 1.0914 USD<br><br>1 GBP = 1.2662 USD<br><br>1 NZD = 0.6168 USD<br><br>1 PLN = 0.2520 USD |
(1)Represents the aggregate invested capital for initiated development opportunities.
| Financial Supplement | Second Quarter 2024 |
|---|---|
| Notes and Definitions | |
| --- | |
| We use the following non-GAAP financial measures as supplemental performance measures of our business: NAREIT FFO, Core FFO, Adjusted FFO, NAREIT EBITDAre, Core EBITDA, Core EBITDA margin, net debt to pro-forma Core EBITDA, segment contribution (‘NOI”) and margin, same store revenue and NOI, and maintenance capital expenditures. | |
| 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 Net (gain) loss on sale of non-real estate assets, Acquisition, cyber incident and other, net, Goodwill impairment, Loss on debt extinguishment and termination of derivative instruments, Foreign currency exchange (gain) loss, Gain on legal settlement related to prior period operations, Project Orion deferred costs amortization, Net (gain) loss from discontinued operations, Impairment of related party receivable, Loss on put option, and Gain on sale of LATAM JV. We also adjust for the impact of Core FFO on our share of reconciling items for partially owned entities, and gain from disposition of 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 measures 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 below/above market leases, Straight-line rental expense adjustment, Deferred income tax (benefit) expense, Stock-based compensation expense, Non-real estate depreciation and amortization, 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 consolidated statements of operations included in our quarterly and annual reports. 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 above 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. | |
| We calculate EBITDA for Real Estate, or EBITDAre, in accordance with the standards established by the Board of Governors of NAREIT, defined as, net (loss) income before interest expense, taxes, depreciation and amortization, net gain on sale of real estate, net of withholding taxes, 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 (gain) from investments in partially owned entities, Impairment of indefinite and long-lived assets, Foreign currency exchange (gain) loss, Stock-based compensation expense ,Loss on debt extinguishment and termination of derivative instruments, (Gain) loss on other asset disposals, Gain on legal settlement related to prior period operations, Project Orion deferred costs amortization, Gain from sale of partially owned entities, Net (gain) loss from discontinued operations, Impairment of related party receivable, and Loss on put option.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. We calculate Core EBITDA margin as Core EBITDA divided by revenues. 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: | |
| NOI is calculated as earnings before interest expense, taxes, depreciation and amortization, and excluding corporate Selling, general, and administrative expense; Acquisition, cyber incident, and other, net; Impairment of indefinite and long-lived assets; gain or loss on sale of real estate and all components of non-operating other income and expense. Management believes that this is a helpful metric to measure period to period operating performance of the business. |
•these measures do not reflect our historical or future cash requirements for maintenance capital expenditures or growth and expansion capital expenditures;
•these measures do not reflect changes in, or cash requirements for, our working capital needs;
•these measures do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our indebtedness;
•these measures do not reflect our tax expense or the cash requirements to pay our taxes; and
•although depreciation and amortization are non-cash charges, the assets being depreciated will often have to be replaced in the future and these measures do not reflect any cash requirements for such replacements.
| Financial Supplement | Second Quarter 2024 |
|---|---|
| We use the following non-GAAP financial measures as supplemental performance measures of our business: NAREIT FFO, Core FFO, Adjusted FFO, NAREIT EBITDAre, Core EBITDA, Core EBITDA margin, net debt to pro-forma Core EBITDA, contribution (‘NOI”) and margin, same store revenue and NOI, total real estate debt, total debt outstanding and maintenance capital expenditures. | |
| --- | |
| Net debt to proforma Core EBITDA is calculated using total debt, plus deferred financing costs, less cash and cash equivalents, divided by pro-forma Core EBITDA. We calculate pro-forma Core EBITDA as Core EBITDA further adjusted for acquisitions, dispositions and for rent expense associated with lease buy-outs and lease exits. The pro-forma adjustment for acquisitions reflects the Core EBITDA for the period of time prior to acquisition. The pro-forma adjustment for leased facilities exited or purchased reflects the add-back for the related lease expense from the last year. The pro-forma adjustment for dispositions reduces Core EBITDA for the earnings of facilities disposed of or exited during the year, including the strategic exit of certain third-party managed business. | |
| We define our “same store” population once annually at the beginning of the current calendar year. Our population includes properties owned or leased for the entirety of two comparable periods with at least twelve consecutive months of normalized operations prior to January 1 of the current calendar year. We define “normalized operations” as properties that have been open for operation or lease, after development or significant modification (e.g., expansion or rehabilitation subsequent to a natural disaster). Acquired properties are included in the “same store” population if owned by us as of the first business day of the prior calendar year (e.g. January 1, 2023) and are still owned by us as of the end of the current reporting period, unless the property is under development. The “same store” pool is also adjusted to remove properties that were sold or entered development subsequent to the beginning of the current calendar year. Beginning January of 2024, changes in ownership structure (e.g., purchase of a previously leased warehouse) no longer results in a facility being excluded from the same store population, as management believes that actively managing its real estate is normal course of operations. Additionally, management began to classify new developments (both conventional and automated facilities) as a component of the same store pool once the facility is considered fully operational and both inbounding and outbounding product for at least twelve consecutive months prior to January 1 of the current calendar year. | |
| We calculate “same store revenue” as revenues for the same store population. We calculate “same store contribution (NOI)” as revenues for the same store population less its cost of operations (excluding any depreciation and amortization, impairment charges, corporate-level selling, general and administrative expenses, corporate-level acquisition, cyber incident and other, net and gain or loss on sale of real estate). In order to derive an appropriate measure of period-to-period operating performance, we also calculate our same store contribution (NOI) on a constant currency basis to remove the effects of foreign currency exchange rate movements by using the comparable prior period exchange rate to translate from local currency into U.S. dollars for both periods. We evaluate the performance of the warehouses we own or lease using a “same store” analysis, and we believe that same store contribution (NOI) is helpful to investors as a supplemental performance measure because it includes the operating performance from the population of properties that is consistent from period to period and also on a constant currency basis, thereby eliminating the effects of changes in the composition of our warehouse portfolio and currency fluctuations on performance measures. Same store contribution (NOI) is not a measurement of financial performance under U.S. GAAP. In addition, other companies providing temperature-controlled warehouse storage and handling and other warehouse services may not define same store or calculate same store contribution (NOI) in a manner consistent with our definition or calculation. Same store contribution (NOI) should be considered as a supplement, but not as an alternative, to our results calculated in accordance with U.S. GAAP. | |
| We define “maintenance capital expenditures” as capital expenditures made to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology. Maintenance capital expenditures include capital expenditures made to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology. Maintenance capital expenditures do not include acquisition costs contemplated when underwriting the purchase of a building or costs which are incurred to bring a building up to Americold’s operating standards. | |
| We define “total real estate debt” as the aggregate of the following: mortgage notes, senior unsecured notes, term loans and borrowings under our revolving line of credit. We define “total debt outstanding” as the aggregate of the following: total real estate debt, sale-leaseback financing obligations and financing lease obligations. | |
| All quarterly amounts and non-GAAP disclosures within this filing shall be deemed unaudited. |
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