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 5, 2021
AMERICOLD REALTY TRUST
(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)) |
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 Shares of Beneficial Interest, $0.01 par value per share | COLD | New York Stock Exchange |
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. ☐
Item 2.02 — Results of Operations and Financial Condition.
Item 7.01— Regulation FD Disclosure.
On August 5, 2021, Americold Realty Trust (the “Company”) issued a press release announcing the Company’s financial results for the second quarter ended June 30, 2021. 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,” and Item 7.01, “Regulation FD.” The information in Items 2.02 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 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 or the Securities Exchange Act of 1934, 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 5, 2021 for the second quarter ended June 30, 2021. |
| 99.2 | Supplemental Information Package for the second quarter ended June 30, 2021. |
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 5, 2021
| AMERICOLD REALTY TRUST | |
|---|---|
| By: | /s/ Marc J. Smernoff |
| Name: Marc J. Smernoff | |
| Title: Chief Financial Officer and Executive Vice President |
Document
Exhibit 99.1
AMERICOLD REALTY TRUST ANNOUNCES SECOND QUARTER 2021 RESULTS
Atlanta, GA, August 5, 2021 - Americold Realty Trust (NYSE: COLD) (the “Company”), the world’s largest publicly traded REIT 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, 2021.
Fred Boehler, President and Chief Executive Officer of Americold Realty Trust, stated, “We continued to produce strong growth across our platform, with our Global Warehouse segment revenue up 35% and NOI up 20% in the second quarter 2021, as we benefited from strategic acquisitions completed over the last year. We remain confident in the global demand for all types of food in our diverse portfolio. However, the global food supply chain continues to be impacted by the ongoing effects of COVID, especially limitations on production due to disruptions and challenges in the labor market. While we anticipate these issues will improve in the coming quarters, it will limit near term performance, which will result in our 2021 results being softer than originally anticipated.”
“From an external growth perspective, we continue to execute on strategic developments and acquisitions. During the second quarter, we started on three new developments in Atlanta, GA, Dunkirk, NY and Dublin, Ireland totaling $111 million. Subsequent to quarter end, we acquired ColdCo Logistics in St. Louis, MO, and we entered into purchase agreements to acquire Newark Facility Management in Newark, NJ and Lago Cold Stores in Brisbane, Australia for a combined total of $488 million. While we cannot control the current macro environment, we continue to invest to strengthen our market leadership position and to create meaningful sustained value over the coming years for stakeholders.”
“As we look to the future, our food manufacturing clients are working diligently to return to pre-COVID production and inventory levels. We expect a gradual recovery, but based on feedback from our customers, we do not expect to get back to normalized inventory levels until mid 2022. In the meantime, we benefit from the scale and diversity of our portfolio, the effectiveness of the Americold Operating System, and the discipline of our commercial processes. Additionally, we are proud of our commitment to corporate responsibility, as demonstrated by our partnership with Feed the Children and Tyson Foods to launch an Alliance to Defeat Hunger with a 10-city tour across the US to help feed nearly two million families in need across rural communities.”
Second Quarter 2021 Highlights
•Total revenue increased 35.7% to $654.7 million.
•Total NOI increased 21.0% to $155.3 million.
•Core EBITDA increased 17.7% on an actual basis, and 14.8% on a constant currency basis, to $118.3 million.
•Net loss of $13.4 million, or $0.05 loss per diluted common share.
•Core FFO of $38.6 million, or $0.15 per diluted common share.
•AFFO of $71.7 million, or $0.28 per diluted common share.
•Global Warehouse segment revenue increased 35.3% to $503.7 million.
•Global Warehouse segment NOI increased 20.2% to $144.4 million.
•Global Warehouse segment same store revenue increased 2.1%, and was flat on a constant currency basis, Global Warehouse segment same store segment NOI decreased by 0.8%, or 2.5% on a constant currency basis.
•On May 5, 2021, completed the acquisition of KMT Brrr! in New Jersey for $71.1 million. KMT Brrr! consists of two owned facilities totaling 13 million cubic feet, as well as transportation services.
•On May 28, 2021, closed on the acquisition of Bowman Stores, which operates a single campus located in Spalding, England for £74.1 million. The campus aggregates 10 million cubic feet along with four buildable acres of land to support additional development.
•Broke ground on a dedicated, build-to-suit facility for a large, private consumer packaged goods manufacturer in Dunkirk, New York. This facility will provide 25,000 pallet positions with expected completion during the second quarter of 2022 and an estimated total cost of $43.0 million.
•Broke ground on the second phase of our Atlanta Major Market Strategy consisting of a highly-automated multi-tenant facility with expected completion during the second quarter of 2023 and an estimated total cost of $36.5 million.
•Broke ground on a conventional multi-tenant facility in Dublin, Ireland with expected completion during the third quarter of 2022 and an estimated total cost of €26.5 million.
Year to Date 2021 Highlights
•Total revenue increased 33.4% to $1.29 billion.
•Total NOI increased 18.5% to $312.5 million.
•Core EBITDA increased 15.4% to $236.1 million, or 12.6% on a constant currency basis.
•Net loss of $27.6 million, or $0.11 per diluted common share.
•Core FFO of $101.2 million, or $0.40 per diluted common share.
•AFFO of $147.7 million, or $0.58 per diluted common share.
•Global Warehouse segment revenue increased 31.3% to $0.99 billion.
•Global Warehouse segment NOI increased 17.7% to $290.6 million.
•Global Warehouse segment same store revenue increased 0.2%, and decreased 1.9% on a constant currency basis, same store segment NOI decreased 3.1%, or 4.7% on a constant currency basis.
Subsequent Event Highlights
•On August 2, 2021, closed on the acquisition of ColdCo in St. Louis, Missouri for $20.5 million. ColdCo consists of one owned facility in St Louis, Missouri, generating approximately 93% of total NOI, and one leased facility in Reno, Nevada. ColdCo's customers are primarily focused on the storage and handling of product for direct-to-consumer distribution, and transportation services.
•Entered into a purchase agreement to acquire Newark Facility Management in Newark, New Jersey for $376.5 million. Newark consists of one owned facility totaling 11.5 million cubic feet that is a single-customer dedicated retail distribution center. The acquisition is expected to close in September 2021.
•Finally, we entered into a purchase agreement to acquire Lago Cold Stores in Brisbane, Australia for A$106.4 million. Lago consists of a 5.4 million cubic feet owned facility, generating approximately 78% of total NOI, and two leased facilities. The acquisition is expected to close in the fourth quarter of 2021.
Second Quarter 2021 Total Company Financial Results
Total revenue for the second quarter of 2021 was $654.7 million, a 35.7% increase from the same quarter of the prior year. This growth was primarily driven by the incremental revenue from acquisitions, including warehouse and transportation operations,
and our recently completed development projects. These increases are partially offset by the continued impacts of COVID-19 and resulting supply chain disruption which impacted our holdings across our network as production has been unable to keep up with steady consumer demand.
For the second quarter of 2021, the Company reported a net loss of $13.4 million, or $0.05 per diluted share, compared to net income of $32.7 million, or $0.16 per diluted share, for the same quarter of the prior year.
Total NOI for the second quarter of 2021 was $155.3 million, an increase of 21% from the same quarter of the prior year.
Core EBITDA was $118.3 million for the second quarter of 2021, compared to $100.5 million for the same quarter of the prior year. This reflects a 17.7% increase over prior year on an actual basis, and 14.8% on a constant currency basis, driven primarily from acquisition contribution. These increases were partially offset by the ongoing impacts of COVID as previously discussed.
For the second quarter of 2021, Core FFO was $38.6 million, or $0.15 per diluted share, compared to $55.1 million, or $0.27 per diluted share, for same quarter of the prior year.
For the second quarter of 2021, AFFO was $71.7 million, or $0.28 per diluted share, compared to $61.1 million, or $0.30 per diluted share, for the same quarter of the prior year.
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 2021 Global Warehouse Segment Results
For the second quarter of 2021, Global Warehouse segment revenue was $503.7 million, an increase of $131.3 million, or 35%, compared to $372.4 million for the second quarter of 2020. This growth was driven by the recently completed acquisitions and development projects, paired with contractual rate escalations, partially offset by the ongoing impacts from COVID-19 on the supply chain.
Warehouse segment NOI was $144.4 million for the second quarter of 2021, an increase of 20%. Global Warehouse segment margin was 28.7% for the second quarter of 2021, a 360 basis point decrease compared to the same quarter of the prior year. The year-over-year decrease in segment NOI was driven by the recently completed acquisitions, the impact of the appreciation bonus incurred during the second quarter of last year, partially offset by lower holdings and higher operating costs.
We had 162 same stores for the three months ended June 30, 2021. The following table presents revenues, cost of operations, contribution (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, 2021. Amounts related to the Agro, AM-C, Bowman Stores, Caspers, Hall’s, KMT Brrr! and Liberty acquisitions are reflected within non-same store results.
| Three Months Ended June 30, | Change | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dollars in thousands | 2021 actual | 2021 constant currency(1) | 2020 actual | Actual | Constant currency | ||||||||
| TOTAL WAREHOUSE SEGMENT | |||||||||||||
| Number of total warehouses(2) | 237 | 172 | n/a | n/a | |||||||||
| Global Warehouse revenue: | |||||||||||||
| Rent and storage | $ | 212,277 | $ | 207,878 | $ | 163,664 | 29.7 | % | 27.0 | % | |||
| Warehouse services | 291,457 | 282,712 | 208,747 | 39.6 | % | 35.4 | % | ||||||
| Total revenue | $ | 503,734 | $ | 490,590 | $ | 372,411 | 35.3 | % | 31.7 | % | |||
| Global Warehouse contribution (NOI) | $ | 144,379 | $ | 140,691 | $ | 120,132 | 20.2 | % | 17.1 | % | |||
| Global Warehouse margin | 28.7 | % | 28.7 | % | 32.3 | % | -360 bps | -358 bps | |||||
| Units in thousands except per pallet data | |||||||||||||
| Global Warehouse rent and storage metrics: | |||||||||||||
| Average economic occupied pallets | 3,944 | n/a | 3,165 | 24.6 | % | n/a | |||||||
| Average physical occupied pallets | 3,607 | n/a | 2,891 | 24.8 | % | n/a | |||||||
| Average physical pallet positions | 5,241 | n/a | 4,049 | 29.4 | % | n/a | |||||||
| Economic occupancy percentage | 75.2 | % | n/a | 78.2 | % | -292 bps | n/a | ||||||
| Physical occupancy percentage | 68.8 | % | n/a | 71.4 | % | -260 bps | n/a | ||||||
| Total rent and storage revenue per economic occupied pallet | $ | 53.82 | $ | 52.71 | $ | 51.71 | 4.1 | % | 1.9 | % | |||
| Total rent and storage revenue per physical occupied pallet | $ | 58.85 | $ | 57.63 | $ | 56.60 | 4.0 | % | 1.8 | % | |||
| Global Warehouse services metrics: | |||||||||||||
| Throughput pallets | 9,919 | n/a | 7,716 | 28.6 | % | n/a | |||||||
| Total warehouse services revenue per throughput pallet | $ | 29.38 | $ | 28.50 | $ | 27.05 | 8.6 | % | 5.4 | % | |||
| SAME STORE WAREHOUSE | |||||||||||||
| Number of same store warehouses | 162 | 162 | n/a | n/a | |||||||||
| Global Warehouse same store revenue: | |||||||||||||
| Rent and storage | $ | 150,984 | $ | 149,320 | $ | 152,893 | (1.2) | % | (2.3) | % | |||
| Warehouse services | 209,258 | 203,647 | 199,832 | 4.7 | % | 1.9 | % | ||||||
| Total same store revenue | $ | 360,242 | $ | 352,967 | $ | 352,725 | 2.1 | % | 0.1 | % | |||
| Global Warehouse same store contribution (NOI) | $ | 116,284 | $ | 114,345 | $ | 117,221 | (0.8) | % | (2.5) | % | |||
| Global Warehouse same store margin | 32.3 | % | 32.4 | % | 33.2 | % | -95 bps | -84 bps | |||||
| Units in thousands except per pallet data | |||||||||||||
| Global Warehouse same store rent and storage metrics: | |||||||||||||
| Average economic occupied pallets | 2,830 | n/a | 2,971 | (4.7) | % | n/a | |||||||
| Average physical occupied pallets | 2,515 | n/a | 2,705 | (7.0) | % | n/a | |||||||
| Average physical pallet positions | 3,763 | n/a | 3,750 | 0.3 | % | n/a | |||||||
| Economic occupancy percentage | 75.2 | % | n/a | 79.2 | % | -403 bps | n/a | ||||||
| Physical occupancy percentage | 66.8 | % | n/a | 72.1 | % | -531 bps | n/a | ||||||
| Same store rent and storage revenue per economic occupied pallet | $ | 53.35 | $ | 52.76 | $ | 51.45 | 3.7 | % | 2.5 | % | |||
| Same store rent and storage revenue per physical occupied pallet | $ | 60.03 | $ | 59.37 | $ | 56.52 | 6.2 | % | 5.0 | % | |||
| Global Warehouse same store services metrics: | |||||||||||||
| Throughput pallets | 7,351 | n/a | 7,333 | 0.3 | % | n/a | |||||||
| Same store warehouse services revenue per throughput pallet | $ | 28.47 | $ | 27.70 | $ | 27.25 | 4.5 | % | 1.7 | % | |||
| Three Months Ended June 30, | Change | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Dollars in thousands | 2021 actual | 2021 constant currency(1) | 2020 actual | Actual | Constant currency | ||||||||
| NON-SAME STORE WAREHOUSE | |||||||||||||
| Number of non-same store warehouses(3) | 75 | 10 | n/a | n/a | |||||||||
| Global Warehouse non-same store revenue: | |||||||||||||
| Rent and storage | $ | 61,293 | $ | 58,558 | $ | 10,771 | 469.1 | % | 443.7 | % | |||
| Warehouse services | 82,199 | 79,065 | 8,915 | 822.0 | % | 786.9 | % | ||||||
| Total non-same store revenue | $ | 143,492 | $ | 137,623 | $ | 19,686 | 628.9 | % | 599.1 | % | |||
| Global Warehouse non-same store contribution (NOI) | $ | 28,095 | $ | 26,346 | $ | 2,911 | 865.1 | % | 805.0 | % | |||
| Global Warehouse non-same store margin | 19.6 | % | 19.1 | % | 14.8 | % | 479 bps | 436 bps | |||||
| Units in thousands except per pallet data | |||||||||||||
| Global Warehouse non-same store rent and storage metrics: | |||||||||||||
| Average economic occupied pallets | 1,114 | n/a | 194 | 474.2 | % | n/a | |||||||
| Average physical occupied pallets | 1,092 | n/a | 186 | 486.6 | % | n/a | |||||||
| Average physical pallet positions | 1,479 | n/a | 299 | 394.6 | % | n/a | |||||||
| Economic occupancy percentage | 75.3 | % | n/a | 64.7 | % | 1062 bps | n/a | ||||||
| Physical occupancy percentage | 73.8 | % | n/a | 62.2 | % | 1164 bps | n/a | ||||||
| Non-same store rent and storage revenue per economic occupied pallet | $ | 55.03 | $ | 52.57 | $ | 55.63 | (1.1) | % | (5.5) | % | |||
| Non-same store rent and storage revenue per physical occupied pallet | $ | 56.13 | $ | 53.63 | $ | 57.87 | (3.0) | % | (7.3) | % | |||
| Global Warehouse non-same store services metrics: | |||||||||||||
| Throughput pallets | 2,568 | n/a | 384 | 569.3 | % | n/a | |||||||
| Non-same store warehouse services revenue per throughput pallet | $ | 32.01 | $ | 30.79 | $ | 23.23 | 37.8 | % | 32.5 | % |
(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) Total warehouse count of 237 includes one recently leased warehouse in Australia, one warehouse acquired through the Bowman Stores acquisition on May 28, 2021, two warehouses acquired through the KMT Brrr! acquisition on May 5, 2021, four warehouses acquired through the Liberty acquisition on March 1, 2021, 46 warehouses acquired through the Agro acquisition on December 30, 2020, eight warehouses acquired through the Hall’s acquisition on November 2, 2020, three warehouses acquired through the Casper’s and AM-C warehouse acquisitions on August 31, 2020, and five warehouses acquired through the Nova Cold and Newport acquisitions on January 2, 2020. The results of these acquisitions are reflected in the results above since date of ownership.
(3) Non-same store warehouse count of 75 includes one recently leased warehouse in Australia, one warehouse acquired through the Bowman Stores acquisition on May 28, 2021, two warehouses acquired through the KMT Brrr! acquisition on May 5, 2021, four warehouses acquired through the Liberty acquisition on March 1, 2021, 46 warehouses acquired through the Agro acquisition on December 30, 2020, eight warehouses acquired through the Hall’s acquisition on November 2, 2020, and three warehouses acquired through the Casper’s and AM-C warehouse acquisitions on August 31, 2020. The results of these acquisitions are reflected in the results above since date of ownership.
(n/a = not applicable)
| Six Months Ended June 30, | Change | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dollars in thousands | 2021 actual | 2021 constant currency(1) | 2020 actual | Actual | Constant currency | ||||||||
| TOTAL WAREHOUSE SEGMENT | |||||||||||||
| Number of total warehouses(2) | 237 | 172 | n/a | n/a | |||||||||
| Global Warehouse revenue: | |||||||||||||
| Rent and storage | $ | 417,553 | $ | 409,564 | $ | 325,973 | 28.1 | % | 25.6 | % | |||
| Warehouse services | 571,632 | 554,605 | 427,506 | 33.7 | % | 29.7 | % | ||||||
| Total revenue | $ | 989,185 | $ | 964,169 | $ | 753,479 | 31.3 | % | 28.0 | % | |||
| Global Warehouse contribution (NOI) | $ | 290,560 | $ | 283,532 | $ | 246,905 | 17.7 | % | 14.8 | % | |||
| Global Warehouse margin | 29.4 | % | 29.4 | % | 32.8 | % | -340 bps | -336 bps | |||||
| Units in thousands except per pallet data | |||||||||||||
| Global Warehouse rent and storage metrics: | |||||||||||||
| Average economic occupied pallets | 3,961 | n/a | 3,211 | 23.4 | % | n/a | |||||||
| Average physical occupied pallets | 3,617 | n/a | 2,970 | 21.8 | % | n/a | |||||||
| Average physical pallet positions | 5,200 | n/a | 4,028 | 29.1 | % | n/a | |||||||
| Economic occupancy percentage | 76.2 | % | n/a | 79.7 | % | -354 bps | n/a | ||||||
| Physical occupancy percentage | 69.6 | % | n/a | 73.7 | % | -418 bps | n/a | ||||||
| Total rent and storage revenue per economic occupied pallet | $ | 105.42 | $ | 103.40 | $ | 101.53 | 3.8 | % | 1.8 | % | |||
| Total rent and storage revenue per physical occupied pallet | $ | 115.44 | $ | 113.23 | $ | 109.75 | 5.2 | % | 3.2 | % | |||
| Global Warehouse services metrics: | |||||||||||||
| Throughput pallets | 19,449 | n/a | 15,916 | 22.2 | % | n/a | |||||||
| Total warehouse services revenue per throughput pallet | $ | 29.39 | $ | 28.52 | $ | 26.86 | 9.4 | % | 6.2 | % | |||
| SAME STORE WAREHOUSE | |||||||||||||
| Number of same store warehouses | 162 | 162 | n/a | n/a | |||||||||
| Global Warehouse same store revenue: | |||||||||||||
| Rent and storage | $ | 300,150 | $ | 296,836 | $ | 305,698 | (1.8) | % | (2.9) | % | |||
| Warehouse services | 415,343 | 404,021 | 408,693 | 1.6 | % | (1.1) | % | ||||||
| Total same store revenue | $ | 715,493 | $ | 700,857 | $ | 714,391 | 0.2 | % | (1.9) | % | |||
| Global Warehouse same store contribution (NOI) | $ | 234,727 | $ | 230,696 | $ | 242,149 | (3.1) | % | (4.7) | % | |||
| Global Warehouse same store margin | 32.8 | % | 32.9 | % | 33.9 | % | -109 bps | -98 bps | |||||
| Units in thousands except per pallet data | |||||||||||||
| Global Warehouse same store rent and storage metrics: | |||||||||||||
| Average economic occupied pallets | 2,858 | n/a | 3,033 | (5.8) | % | n/a | |||||||
| Average physical occupied pallets | 2,538 | n/a | 2,799 | (9.3) | % | n/a | |||||||
| Average physical pallet positions | 3,763 | n/a | 3,747 | 0.4 | % | n/a | |||||||
| Economic occupancy percentage | 76.0 | % | n/a | 80.9 | % | -498 bps | n/a | ||||||
| Physical occupancy percentage | 67.4 | % | n/a | 74.7 | % | -725 bps | n/a | ||||||
| Same store rent and storage revenue per economic occupied pallet | $ | 105.01 | $ | 103.85 | $ | 100.80 | 4.2 | % | 3.0 | % | |||
| Same store rent and storage revenue per physical occupied pallet | $ | 118.25 | $ | 116.94 | $ | 109.20 | 8.3 | % | 7.1 | % | |||
| Global Warehouse same store services metrics: | |||||||||||||
| Throughput pallets | 14,476 | n/a | 15,080 | (4.0) | % | n/a | |||||||
| Same store warehouse services revenue per throughput pallet | $ | 28.69 | $ | 27.91 | $ | 27.10 | 5.9 | % | 3.0 | % | |||
| Six Months Ended June 30, | Change | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Dollars in thousands | 2021 actual | 2021 constant currency(1) | 2020 actual | Actual | Constant currency | ||||||||
| NON-SAME STORE WAREHOUSE | |||||||||||||
| Number of non-same store warehouses(3) | 75 | 10 | n/a | n/a | |||||||||
| Global Warehouse non-same store revenue: | |||||||||||||
| Rent and storage | $ | 117,403 | $ | 112,728 | $ | 20,275 | 479.1 | % | 456.0 | % | |||
| Warehouse services | 156,289 | 150,584 | 18,813 | 730.8 | % | 700.4 | % | ||||||
| Total non-same store revenue | $ | 273,692 | $ | 263,312 | $ | 39,088 | 600.2 | % | 573.6 | % | |||
| Global Warehouse non-same store contribution (NOI) | $ | 55,833 | $ | 52,836 | $ | 4,756 | 1,073.9 | % | 1,010.9 | % | |||
| Global Warehouse non-same store margin | 20.4 | % | 20.1 | % | 12.2 | % | 823 bps | 790 bps | |||||
| Units in thousands except per pallet data | |||||||||||||
| Global Warehouse non-same store rent and storage metrics: | |||||||||||||
| Average economic occupied pallets | 1,102 | n/a | 178 | 520.0 | % | n/a | |||||||
| Average physical occupied pallets | 1,079 | n/a | 171 | 532.0 | % | n/a | |||||||
| Average physical pallet positions | 1,437 | n/a | 280 | 412.4 | % | n/a | |||||||
| Economic occupancy percentage | 76.7 | % | n/a | 63.4 | % | 1332 bps | n/a | ||||||
| Physical occupancy percentage | 75.1 | % | n/a | 60.9 | % | 1421 bps | n/a | ||||||
| Non-same store rent and storage revenue per economic occupied pallet | $ | 106.49 | $ | 102.25 | $ | 114.02 | (6.6) | % | (10.3) | % | |||
| Non-same store rent and storage revenue per physical occupied pallet | $ | 108.82 | $ | 104.49 | $ | 118.76 | (8.4) | % | (12.0) | % | |||
| Global Warehouse non-same store services metrics: | |||||||||||||
| Throughput pallets | 4,973 | n/a | 835 | 495.6 | % | n/a | |||||||
| Non-same store warehouse services revenue per throughput pallet | $ | 31.43 | $ | 30.28 | $ | 22.52 | 39.6 | % | 34.5 | % |
(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) Total warehouse count of 237 includes one recently leased warehouse in Australia, one warehouse acquired through the Bowman Stores acquisition on May 28, 2021, two warehouses acquired through the KMT Brrr! acquisition on May 5, 2021, four warehouses acquired through the Liberty acquisition on March 1, 2021, 46 warehouses acquired through the Agro acquisition on December 30, 2020, eight warehouses acquired through the Hall’s acquisition on November 2, 2020, three warehouses acquired through the Casper’s and AM-C warehouse acquisitions on August 31, 2020, and five warehouses acquired through the Nova Cold and Newport acquisitions on January 2, 2020. The results of these acquisitions are reflected in the results above since date of ownership.
(3) Non-same store warehouse count of 75 includes one recently leased warehouse in Australia, one warehouse acquired through the Bowman Stores acquisition on May 28, 2021, two warehouses acquired through the KMT Brrr! acquisition on May 5, 2021, four warehouses acquired through the Liberty acquisition on March 1, 2021, 46 warehouses acquired through the Agro acquisition on December 30, 2020, eight warehouses acquired through the Hall’s acquisition on November 2, 2020, and three warehouses acquired through the Casper’s and AM-C warehouse acquisitions on August 31, 2020. The results of these acquisitions are reflected in the results above since date of ownership.
(n/a = not applicable)
Fixed Commitment Rent and Storage Revenue
As of June 30, 2021, $333.0 million of the Company’s annualized rent and storage revenue were derived from customers with fixed commitment storage contracts. This compares to $307.4 million at the end of the first quarter of 2021 and $270.0 million at the end of the second quarter of 2020. The Company’s recent acquisitions had a lower percentage of fixed committed contracts as a percentage of rent and storage revenue. On a combined pro forma basis, assuming a full twelve months of acquisitions revenue, 38.9% of rent and storage revenue was generated from fixed commitment storage contracts, which is a 240 basis point increase over the first quarter of 2021.
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 2021, economic occupancy for the total warehouse segment was 75.2% and warehouse segment same store pool was 75.2%, representing a 643 basis point and 838 basis point increase above physical occupancy, respectively.
Economic occupancy for the total warehouse segment decreased 292 basis points, and the warehouse segment same store pool decreased 403 basis points as compared to the second quarter of 2020, as we were impacted by reduced food production volumes and food service activity, and elevated prior year holding levels.
Real Estate Portfolio
As of June 30, 2021, the Company’s portfolio consists of 246 facilities. The Company ended the second quarter of 2021 with 237 facilities in its Global Warehouse segment portfolio and nine facilities in its Third-party managed segment. During the second quarter of 2021, the Company added three facilities through the acquisitions of Bowman Stores and KMT Brrr!. Additionally, during the second quarter, the Company entered into a two-year lease of a facility in Perth, Australia, totaling approximately 1 million cubic feet and 5,000 pallet positions, in order to address strong demand from our retail customers in Western, Australia. The same store population consists of 162 facilities for the quarter ended June 30, 2021. The remaining 75 non-same store population includes the 64 facilities that were acquired in connection with the Agro, AM-C, Bowman Stores, Caspers, Hall’s, KMT Brrr! and Liberty acquisitions, the recently leased facility in Australia and ten legacy facilities.
Balance Sheet Activity and Liquidity
As of June 30, 2021, the Company had total liquidity of approximately $1.3 billion, including cash, capacity on its revolving credit facility and $231 million of net proceeds available from equity forward contracts. Total debt outstanding was $2.9 billion (inclusive of $296.2 million of financing leases/sale lease-backs and exclusive of unamortized deferred financing fees), of which 80% was in an unsecured structure. The Company has no material debt maturities until 2023. At quarter end, its net debt to pro forma Core EBITDA was approximately 4.9x. Of the Company’s total debt outstanding, $2.6 billion relates to real estate debt, which excludes sale-leaseback and capitalized lease obligations. The Company’s real estate debt has a remaining weighted average term of 7.0 years and carries a weighted average contractual interest rate of 3.01%. As of June 30, 2021, 84% of the Company’s total debt outstanding was at a fixed rate.
The Company’s equity forwards, the current respective contractual latest settlement dates, and net proceeds are detailed in the table below:
| Outstanding Equity Forward Data | ||||
|---|---|---|---|---|
| in millions, except share price amounts | ||||
| Quarter Raised | Forward Shares | Net Share Price1 | Net Proceeds | Target Use of Net Proceeds |
| 4Q 2020 | 4.785 | $35.86 | 171.6 | Fund future growth initiatives |
| 2Q 2021 | 1.530 | $38.56 | 59.0 | Fund future growth initiatives |
| 6.315 | $36.52 | 230.6 | ||
| (1) Net of underwriter fee, forward costs and dividends paid. |
All values are in US Dollars.
Dividend
On May 20, 2021, the Company’s Board of Trustees declared a dividend of $0.22 per share for the second quarter of 2021, which was paid on July 15, 2021 to common shareholders of record as of June 30, 2021.
2021 Outlook
The Company revised its annual AFFO per share guidance to $1.34- $1.40, and updated certain components. Refer to page 43 of this Financial Supplement for the details of our annual guidance. The Company’s guidance is provided for informational purposes based on current plans and assumptions and is subject to change. The ranges for these metrics do not include the impact of acquisitions, dispositions, or capital markets activity beyond that which has been previously announced.
Investor Webcast and Conference Call
The Company will hold a webcast and conference call on Thursday, August 5, 2021 at 5:00 p.m. Eastern Time to discuss second quarter 2021 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 five 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 1-855-327-6837 or 1-613-891-4304. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID# 10015471. The telephone replay will be available starting shortly after the call until August 19, 2021.
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.
About the Company
Americold is the world’s largest publicly traded REIT focused on the ownership, operation, acquisition and development of temperature-controlled warehouses. Based in Atlanta, Georgia, Americold owns and operates 246 temperature-controlled warehouses, with over 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 FFO, core FFO, AFFO, EBITDAre, Core EBITDA and same store segment revenue and contribution. A reconciliation from U.S. GAAP net (loss) income available to common shareholders to FFO, a reconciliation from FFO to core FFO and AFFO, and definitions of FFO, and core FFO are included within the supplemental. A reconciliation from U.S. GAAP net (loss) income available to common shareholders to EBITDAre and Core EBITDA, a definition of Core EBITDA and definitions of net debt to Core EBITDA are included within the supplemental.
Forward-Looking Statements
This document 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: uncertainties and risks related to
public health crises, including the ongoing COVID-19 pandemic; adverse economic or real estate developments in our geographic markets or the temperature-controlled warehouse industry; general economic conditions; risks associated with the ownership of real estate and temperature-controlled warehouses in particular; acquisition risks, including the failure to identify or complete attractive acquisitions or the failure of acquisitions to perform in accordance with projections and to realize anticipated cost savings and revenue improvements; our failure to realize the intended benefits from our recent acquisitions, including the Agro acquisition, and including synergies, or disruptions to our plans and operations or unknown or contingent liabilities related to our recent acquisitions; 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; a failure of our information technology systems, cybersecurity attacks or a breach of our information security systems, networks or processes could cause business disruptions or loss of confidential information; risks related to privacy and data security concerns, and data collection and transfer restrictions and related foreign regulations; defaults or non-renewals of significant customer contracts, including as a result of the ongoing COVID-19 pandemic; uncertainty of revenues, given the nature of our customer contracts; increased interest rates and operating costs, including as a result of the ongoing COVID-19 pandemic; our failure to obtain necessary outside financing; risks related to, or restrictions contained in, our debt financings; decreased storage rates or increased vacancy rates; risks related to current and potential international operations and properties; difficulties in expanding our operations into new markets, including international markets; risks related to the partial ownership of properties, including as a result of our lack of control over such investments and the failure of such entities to perform in accordance with projections; our failure to maintain our status as a REIT; possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently or previously owned by us; financial market fluctuations; actions by our competitors and their increasing ability to compete with us; labor and power costs; labor availability; changes in applicable governmental regulations and tax legislation, including in the international markets; additional risks with respect to the addition of European operations and properties; changes in real estate and zoning laws and increases in real property tax rates; the competitive environment in which we operate; our relationship with our employees, including the occurrence of any work stoppages or any disputes under our collective bargaining agreements and employment related litigation; liabilities as a result of our participation in multi-employer pension plans; losses in excess of our insurance coverage; the potential liabilities, costs and regulatory impacts associated with our in-house trucking services and the potential disruptions associated with the use of third-party trucking service providers to provide transportation services to our customers; the cost and time requirements as a result of our operation as a publicly traded REIT; changes in foreign currency exchange rates; the impact of anti-takeover provisions in our constituent documents and under Maryland law, which could make an acquisition of us more difficult, limit attempts by our shareholders to replace our trustees and affect the price of our common shares of beneficial interest, $0.01 par value per share, of our common shares; the potential dilutive effect of our common share offerings; and risks related to any forward sale agreements, including substantial dilution to our earnings per share or substantial cash payment obligations.
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. Examples of forward-looking statements included in this document include, among others, statements about our expected acquisition and expected expansion and development pipeline and our targeted return on invested capital on expansion and development opportunities. 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, 2020, 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.
Contacts:
Americold Realty Trust
Investor Relations
Telephone: 678-459-1959
Email: investor.relations@americold.com
| Americold Realty Trust and Subsidiaries | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Condensed Consolidated Balance Sheets (Unaudited) | |||||||||||||||
| (In thousands, except shares and per share amounts) | |||||||||||||||
| June 30, | December 31, | ||||||||||||||
| 2021 | 2020 | ||||||||||||||
| Assets | |||||||||||||||
| Property, buildings and equipment: | |||||||||||||||
| Land | $ | 705,862 | $ | 662,885 | |||||||||||
| Buildings and improvements | 3,847,631 | 4,004,824 | |||||||||||||
| Machinery and equipment | 1,274,690 | 1,177,572 | |||||||||||||
| Assets under construction | 382,730 | 303,531 | |||||||||||||
| 6,210,913 | 6,148,812 | ||||||||||||||
| Accumulated depreciation | (1,504,758) | (1,382,298) | |||||||||||||
| Property, buildings and equipment – net | 4,706,155 | 4,766,514 | |||||||||||||
| Operating lease right-of-use assets | 352,880 | 291,797 | |||||||||||||
| Accumulated depreciation – operating leases | (40,202) | (24,483) | |||||||||||||
| Operating leases – net | 312,678 | 267,314 | |||||||||||||
| Financing leases: | |||||||||||||||
| Buildings and improvements | 24,761 | 60,513 | |||||||||||||
| Machinery and equipment | 148,408 | 109,416 | |||||||||||||
| 173,169 | 169,929 | ||||||||||||||
| Accumulated depreciation – financing leases | (53,785) | (40,937) | |||||||||||||
| Financing leases – net | 119,384 | 128,992 | |||||||||||||
| Cash, cash equivalents and restricted cash | 316,077 | 621,051 | |||||||||||||
| Accounts receivable – net of allowance of $15,197 and $12,286 at June 30, 2021 and December 31, 2020, respectively | 325,440 | 324,221 | |||||||||||||
| Identifiable intangible assets – net | 875,038 | 797,423 | |||||||||||||
| Goodwill | 1,018,288 | 794,335 | |||||||||||||
| Investments in partially owned entities | 42,742 | 44,907 | |||||||||||||
| Other assets | 107,518 | 86,394 | |||||||||||||
| Total assets | $ | 7,823,320 | $ | 7,831,151 | |||||||||||
| Liabilities and equity | |||||||||||||||
| Liabilities: | |||||||||||||||
| Borrowings under revolving line of credit | $ | 139,105 | $ | — | |||||||||||
| Accounts payable and accrued expenses | 563,566 | 552,547 | |||||||||||||
| Mortgage notes, senior unsecured notes and term loans – net of deferred financing costs of $11,994 and $15,952 in the aggregate, at June 30, 2021 and December 31, 2020, respectively | 2,427,164 | 2,648,266 | |||||||||||||
| Sale-leaseback financing obligations | 184,515 | 185,060 | |||||||||||||
| Financing lease obligations | 111,703 | 125,926 | |||||||||||||
| Operating lease obligations | 285,715 | 269,147 | |||||||||||||
| Unearned revenue | 20,344 | 19,209 | |||||||||||||
| Pension and postretirement benefits | 7,880 | 9,145 | |||||||||||||
| Deferred tax liability – net | 208,799 | 220,502 | |||||||||||||
| Multiemployer pension plan withdrawal liability | 8,354 | 8,528 | |||||||||||||
| Total liabilities | 3,957,145 | 4,038,330 | |||||||||||||
| Equity | |||||||||||||||
| Shareholders’ equity: | |||||||||||||||
| Common shares of beneficial interest, $0.01 par value – 500,000,000 and 325,000,000 authorized shares; 261,015,053 and 251,702,603 issued and outstanding at June 30, 2021 and December 31, 2020, respectively | 2,610 | 2,517 | |||||||||||||
| Paid-in capital | 4,900,398 | 4,687,823 | |||||||||||||
| Accumulated deficit and distributions in excess of net earnings | (1,036,987) | (895,521) | |||||||||||||
| Accumulated other comprehensive loss | (4,628) | (4,379) | |||||||||||||
| Total shareholders’ equity | 3,861,393 | 3,790,440 | |||||||||||||
| Noncontrolling interests: | |||||||||||||||
| Noncontrolling interests in operating partnership and consolidated joint venture | 4,782 | 2,381 | |||||||||||||
| Total equity | 3,866,175 | 3,792,821 | |||||||||||||
| Total liabilities and equity | $ | 7,823,320 | $ | 7,831,151 | |||||||||||
| Americold Realty Trust and Subsidiaries | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||||||
| (In thousands, except per share amounts) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Revenues: | |||||||||||||||
| Rent, storage and warehouse services | $ | 503,734 | $ | 372,411 | $ | 989,185 | $ | 753,479 | |||||||
| Third-party managed services | 72,173 | 72,954 | 145,245 | 137,875 | |||||||||||
| Transportation services | 78,800 | 34,861 | 155,072 | 70,778 | |||||||||||
| Other | — | 2,296 | — | 4,459 | |||||||||||
| Total revenues | 654,707 | 482,522 | 1,289,502 | 966,591 | |||||||||||
| Operating expenses: | |||||||||||||||
| Rent, storage and warehouse services cost of operations | 359,355 | 252,279 | 698,625 | 506,574 | |||||||||||
| Third-party managed services cost of operations | 70,480 | 69,655 | 139,170 | 130,807 | |||||||||||
| Transportation services cost of operations | 69,550 | 30,089 | 139,119 | 61,201 | |||||||||||
| Cost of operations related to other revenues | 33 | 2,161 | 59 | 4,269 | |||||||||||
| Depreciation and amortization | 84,459 | 52,399 | 161,670 | 104,003 | |||||||||||
| Selling, general and administrative | 42,475 | 32,340 | 87,527 | 69,233 | |||||||||||
| Acquisition, litigation and other | 3,922 | 2,801 | 24,673 | 4,489 | |||||||||||
| Impairment of long-lived assets | 1,528 | 3,667 | 1,528 | 3,667 | |||||||||||
| Gain from sale of real estate | — | (19,414) | — | (21,875) | |||||||||||
| Total operating expenses | 631,802 | 425,977 | 1,252,371 | 862,368 | |||||||||||
| Operating income | 22,905 | 56,545 | 37,131 | 104,223 | |||||||||||
| Other (expense) income: | |||||||||||||||
| Interest expense | (26,579) | (23,178) | (52,535) | (47,048) | |||||||||||
| Interest income | 191 | 261 | 415 | 848 | |||||||||||
| Loss on debt extinguishment, modifications and termination of derivative instruments | (925) | — | (4,424) | (781) | |||||||||||
| Foreign currency exchange gain (loss), net | (140) | 315 | 33 | (177) | |||||||||||
| Other expense, net | 184 | 44 | 689 | 915 | |||||||||||
| Loss from investments in partially owned entities | (61) | (129) | (761) | (156) | |||||||||||
| (Loss) income before income tax (expense) benefit | (4,425) | 33,858 | (19,452) | 57,824 | |||||||||||
| Income tax (expense) benefit | |||||||||||||||
| Current | (2,406) | (2,163) | (3,617) | (4,720) | |||||||||||
| Deferred | (6,568) | 967 | (4,566) | 3,069 | |||||||||||
| Total income tax (expense) benefit | (8,974) | (1,196) | (8,183) | (1,651) | |||||||||||
| Net (loss) income | $ | (13,399) | $ | 32,662 | $ | (27,635) | $ | 56,173 | |||||||
| Net (loss) income attributable to non controlling interests | (29) | — | — | — | |||||||||||
| Net (loss) income attributable to Americold Realty Trust | $ | (13,370) | $ | 32,662 | $ | (27,784) | $ | 56,173 | |||||||
| Weighted average common shares outstanding – basic | 253,213 | 201,787 | 253,076 | 201,294 | |||||||||||
| Weighted average common shares outstanding – diluted | 253,213 | 205,298 | 253,076 | 204,587 | |||||||||||
| Net (loss) income per common share of beneficial interest - basic | $ | (0.05) | $ | 0.16 | $ | (0.11) | $ | 0.28 | |||||||
| Net (loss) income per common share of beneficial interest - diluted | $ | (0.05) | $ | 0.16 | $ | (0.11) | $ | 0.27 | |||||||
| Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and AFFO | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| (In thousands, except per share amounts - unaudited) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| Q2 21 | Q1 21 | Q4 20 | Q3 20 | Q2 20 | FY 2021 | ||||||||||
| Net (loss) income | $ | (13,399) | $ | (14,236) | $ | (43,992) | $ | 12,374 | $ | 32,662 | $ | (27,635) | |||
| Adjustments: | |||||||||||||||
| Real estate related depreciation | 44,871 | 52,280 | 39,128 | 36,289 | 35,558 | 97,151 | |||||||||
| Net (gain) loss on sale of real estate, net of withholding taxes (b) | — | — | (676) | 427 | (19,414) | — | |||||||||
| Net (gain) loss on asset disposals | (13) | (39) | 888 | 1,160 | (3) | (52) | |||||||||
| Impairment charges on real estate assets | 1,528 | — | 2,449 | — | 3,181 | 1,528 | |||||||||
| Our share of reconciling items related to partially owned entities | 861 | 266 | 182 | 111 | 122 | 1,127 | |||||||||
| NAREIT Funds from operations | $ | 33,848 | $ | 38,271 | $ | (2,021) | $ | 50,361 | $ | 52,106 | 72,119 | ||||
| Adjustments: | |||||||||||||||
| Net (gain) loss on sale of non-real estate assets | (304) | (119) | 1,112 | (100) | (252) | (423) | |||||||||
| Non-real estate impairment | — | — | (495) | 2,615 | 486 | — | |||||||||
| Acquisition, litigation and other | 3,922 | 20,751 | 26,535 | 5,282 | 2,801 | 24,673 | |||||||||
| Share-based compensation expense, IPO grants | — | 163 | 200 | 196 | 203 | 163 | |||||||||
| Bridge loan commitment fees | — | — | 2,438 | — | — | — | |||||||||
| Loss on debt extinguishment, modifications and termination of derivative instruments | 925 | 3,499 | 9,194 | — | — | 4,424 | |||||||||
| Foreign currency exchange loss (gain) | 140 | (173) | 44,905 | 196 | (315) | (33) | |||||||||
| Our share of reconciling items related to partially owned entities | 89 | 154 | 39 | 76 | 79 | 243 | |||||||||
| Core FFO applicable to common shareholders | $ | 38,620 | $ | 62,546 | $ | 81,907 | $ | 58,626 | $ | 55,108 | 101,166 | ||||
| Adjustments: | |||||||||||||||
| Amortization of deferred financing costs and pension withdrawal liability | 1,085 | 1,148 | 1,202 | 1,203 | 1,196 | 2,233 | |||||||||
| Amortization of below/above market leases | 362 | 39 | 37 | 39 | — | 401 | |||||||||
| Straight-line net rent | (170) | (155) | (324) | (87) | (108) | (325) | |||||||||
| Deferred income tax expense (benefit) | 6,568 | (2,002) | (9,379) | (1,284) | (967) | 4,566 | |||||||||
| Share-based compensation expense, excluding IPO grants | 5,467 | 4,867 | 4,371 | 4,373 | 4,261 | 10,334 | |||||||||
| Non-real estate depreciation and amortization | 39,588 | 24,931 | 19,191 | 17,280 | 16,841 | 64,519 | |||||||||
| Maintenance capital expenditures (a) | (20,488) | (15,731) | (20,291) | (17,534) | (15,306) | (36,219) | |||||||||
| Our share of reconciling items related to partially owned entities | 711 | 278 | 168 | 125 | 78 | 989 | |||||||||
| Adjusted FFO applicable to common shareholders | $ | 71,743 | $ | 75,921 | $ | 76,882 | $ | 62,741 | $ | 61,103 | 147,664 | ||||
| Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and AFFO (continued) | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| (In thousands except per share amounts - unaudited) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| Q2 21 | Q1 21 | Q4 20 | Q3 20 | Q2 20 | FY 2021 | ||||||||||
| NAREIT Funds from operations | $ | 33,848 | $ | 38,271 | $ | (2,021) | $ | 50,361 | $ | 52,106 | $ | 72,119 | |||
| Core FFO applicable to common shareholders | $ | 38,620 | $ | 62,546 | $ | 81,907 | $ | 58,626 | $ | 55,108 | $ | 101,166 | |||
| Adjusted FFO applicable to common shareholders | $ | 71,743 | $ | 75,921 | $ | 76,882 | $ | 62,741 | $ | 61,103 | $ | 147,664 | |||
| Reconciliation of weighted average shares: | |||||||||||||||
| Weighted average basic shares for net income calculation | 253,213 | 252,938 | 205,984 | 204,289 | 201,787 | 253,076 | |||||||||
| Dilutive stock options, unvested restricted stock units, equity forward contracts | 1,624 | 3,226 | 3,944 | 4,211 | 3,511 | 1,559 | |||||||||
| Weighted average dilutive shares | 254,837 | 256,164 | 209,928 | 208,500 | 205,298 | 254,635 | |||||||||
| NAREIT FFO - basic per share | $ | 0.13 | $ | 0.15 | $ | (0.01) | $ | 0.25 | $ | 0.26 | $ | 0.28 | |||
| NAREIT FFO - diluted per share | $ | 0.13 | $ | 0.15 | $ | (0.01) | $ | 0.24 | $ | 0.25 | $ | 0.28 | |||
| Core FFO - basic per share | $ | 0.15 | $ | 0.25 | $ | 0.40 | $ | 0.29 | $ | 0.27 | $ | 0.40 | |||
| Core FFO - diluted per share | $ | 0.15 | $ | 0.24 | $ | 0.39 | $ | 0.28 | $ | 0.27 | $ | 0.40 | |||
| Adjusted FFO - basic per share | $ | 0.28 | $ | 0.30 | $ | 0.37 | $ | 0.31 | $ | 0.30 | $ | 0.58 | |||
| Adjusted FFO - diluted per share | $ | 0.28 | $ | 0.30 | $ | 0.37 | $ | 0.30 | $ | 0.30 | $ | 0.58 | (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. | |
| --- | --- | ||||||||||||||
| (b) | (Gain) loss on sale of real estate, net of withholding tax include withholding tax on the sale of Sydney land which is included in income tax expense on the Condensed Consolidated Statement of Operations. | ||||||||||||||
| Reconciliation of Net (Loss) Income to EBITDA, NAREIT EBITDAre, and Core EBITDA | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| (In thousands - unaudited) | |||||||||||||||
| Three Months Ended | Trailing Twelve Months Ended | ||||||||||||||
| Q2 21 | Q1 21 | Q4 20 | Q3 20 | Q2 20 | Q2 2021 | ||||||||||
| Net (loss) income | $ | (13,399) | $ | (14,236) | $ | (43,992) | $ | 12,374 | $ | 32,662 | $ | (59,253) | |||
| Adjustments: | |||||||||||||||
| Depreciation and amortization | 84,459 | 77,211 | 58,319 | 53,569 | 52,399 | 273,558 | |||||||||
| Interest expense | 26,579 | 25,956 | 21,367 | 23,066 | 23,178 | 96,968 | |||||||||
| Income tax expense (benefit) | 8,974 | (791) | (9,397) | 819 | 1,196 | (395) | |||||||||
| EBITDA | $ | 106,613 | $ | 88,140 | $ | 26,297 | $ | 89,828 | $ | 109,435 | $ | 310,878 | |||
| Adjustments: | |||||||||||||||
| Net (gain) loss on sale of real estate, net of withholding taxes | — | — | (676) | 427 | (19,414) | (249) | |||||||||
| Adjustment to reflect share of EBITDAre of partially owned entities | 1,838 | 649 | 432 | 293 | 237 | 3,212 | |||||||||
| NAREIT EBITDAre | $ | 108,451 | $ | 88,789 | $ | 26,053 | $ | 90,548 | $ | 90,258 | $ | 313,841 | |||
| Adjustments: | |||||||||||||||
| Acquisition, litigation and other | 3,922 | 20,751 | 26,535 | 5,282 | 2,801 | 56,490 | |||||||||
| Bridge loan commitment fees | — | — | 2,438 | — | — | 2,438 | |||||||||
| Loss (income) from investments in partially owned entities | 61 | 700 | (4) | 98 | 129 | 855 | |||||||||
| Asset impairment | 1,528 | — | 1,954 | 2,615 | 3,667 | 6,097 | |||||||||
| Foreign currency exchange loss (gain) | 140 | (173) | 44,905 | 196 | (315) | 45,068 | |||||||||
| Share-based compensation expense | 5,467 | 5,030 | 4,571 | 4,569 | 4,464 | 19,637 | |||||||||
| Loss on debt extinguishment, modifications and termination of derivative instruments | 925 | 3,499 | 9,194 | — | — | 13,618 | |||||||||
| (Gain) loss on real estate and other asset disposals | (317) | (158) | 1,999 | 1,060 | (255) | 2,584 | |||||||||
| Reduction in EBITDAre from partially owned entities | (1,838) | (649) | (432) | (293) | (237) | (3,212) | |||||||||
| Core EBITDA | $ | 118,339 | $ | 117,789 | $ | 117,213 | $ | 104,075 | $ | 100,512 | $ | 457,416 | |||
| Revenue and Contribution by Segment | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| (in thousands - unaudited) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Segment revenues: | |||||||||||||||
| Warehouse | $ | 503,734 | $ | 372,411 | $ | 989,185 | $ | 753,479 | |||||||
| Third-party managed | 72,173 | 72,954 | 145,245 | 137,875 | |||||||||||
| Transportation | 78,800 | 34,861 | 155,072 | 70,778 | |||||||||||
| Other | — | 2,296 | — | 4,459 | |||||||||||
| Total revenues | 654,707 | 482,522 | 1,289,502 | 966,591 | |||||||||||
| Segment contribution: | |||||||||||||||
| Warehouse | 144,379 | 120,132 | 290,560 | 246,905 | |||||||||||
| Third-party managed | 1,693 | 3,299 | 6,075 | 7,068 | |||||||||||
| Transportation | 9,250 | 4,772 | 15,953 | 9,577 | |||||||||||
| Other | (33) | 135 | (59) | 190 | |||||||||||
| Total segment contribution | 155,289 | 128,338 | 312,529 | 263,740 | |||||||||||
| Reconciling items: | |||||||||||||||
| Depreciation and amortization | (84,459) | (52,399) | (161,670) | (104,003) | |||||||||||
| Selling, general and administrative | (42,475) | (32,340) | (87,527) | (69,233) | |||||||||||
| Acquisition, litigation and other | (3,922) | (2,801) | (24,673) | (4,489) | |||||||||||
| Impairment of long-lived assets | (1,528) | (3,667) | (1,528) | (3,667) | |||||||||||
| Gain from sale of real estate, net | — | 19,414 | — | 21,875 | |||||||||||
| Interest expense | (26,579) | (23,178) | (52,535) | (47,048) | |||||||||||
| Interest income | 191 | 261 | 415 | 848 | |||||||||||
| Loss on debt extinguishment, modifications and termination of derivative instruments | (925) | — | (4,424) | (781) | |||||||||||
| Foreign currency exchange (loss) gain, net | (140) | 315 | 33 | (177) | |||||||||||
| Other expense, net | 184 | 44 | 689 | 915 | |||||||||||
| Loss from investments in partially owned entities | (61) | (129) | (761) | (156) | |||||||||||
| (Loss) income before income tax (expense) benefit | $ | (4,425) | $ | 33,858 | $ | (19,452) | $ | 57,824 |
We view and manage our business through three primary business segments—warehouse, third-party managed and transportation. 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, blast freezing, case-picking, kitting and repackaging and other recurring handling services.
Under our third-party managed segment, we manage warehouses on behalf of third parties and provide warehouse management services to several leading food retailers and manufacturers in customer-owned facilities, including some of our largest and longest-standing customers. 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 to many of our key customers underscores our ability to offer a complete and integrated suite of services across the cold chain.
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 services, we charge a fixed fee.
In addition to our primary business segments, we owned a limestone quarry in Carthage, Missouri. We do not view the operation of the quarry as an integral part of our business, and as a result this business segment was subsequently sold on July 1, 2020.
| Notes and Definitions |
|---|
| 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 assets, plus specified non-cash items, such as real estate asset depreciation and amortization, and our share of reconciling items of 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 FFO adjusted for the effects of gain or loss on the sale of non-real estate assets, non-real estate asset impairment, acquisition, litigation and other expenses, share-based compensation expense for the IPO retention grants, bridge loan commitment fees, loss on debt extinguishment, modifications and termination of derivative instruments and foreign currency exchange gain or loss. We also adjust for the impact of Core FFO attributable to partially owned entities. We have elected to reflect our share of Core FFO attributable to partially owned entities since the Brazil JV is a strategic partnership which we continue to actively participate in on an ongoing basis. The previous joint venture, the China JV, was considered for disposition during the periods presented. 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 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 FFO and Core FFO as a measure of our performance may be limited. |
| We calculate adjusted funds from operations, or Adjusted FFO, as Core FFO adjusted for the effects of amortization of deferred financing costs, pension withdrawal liability and above or below market leases, straight-line net rent, provision or benefit from deferred income taxes, stock-based compensation expense from grants of stock options and restricted stock units under our equity incentive plans, excluding IPO grants, non-real estate depreciation and amortization, and maintenance capital expenditures. We also adjust for AFFO attributable to our portion of reconciling items of partially owned entities. 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 annual and quarterly 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 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, earnings before interest expense, taxes, depreciation and amortization, gains or losses on disposition of depreciated property, including gains or losses on change of control, impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate, and adjustment to reflect share of EBITDAre of unconsolidated affiliates. 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, litigation and other expenses, impairment of long-lived assets, loss or gain on other asset disposals, bridge loan commitment fees, loss on debt extinguishment and modifications, share-based compensation expense, foreign currency exchange gain or loss, loss or income on partially owned entities and reduction in EBITDAre from partially owned entities. 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 EBITDA but which we do not believe are indicative of our core business operations. EBITDA and Core EBITDA are not measurements of financial performance under U.S. GAAP, and our EBITDA and Core EBITDA may not be comparable to similarly titled measures of other companies. You should not consider our EBITDA and Core EBITDA as alternatives to net income or cash flows from operating activities determined in accordance with U.S. GAAP. Our calculations of EBITDA and Core EBITDA have limitations as analytical tools, including: |
•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 Core EBITDA and EBITDAre as measures of our operating performance and not as measures of liquidity. The table on page 22 of our financial supplement reconciles EBITDA, EBITDAre and Core EBITDA to net income, which is the most directly comparable financial measure calculated in accordance with U.S. GAAP. |
|---|
| All quarterly amounts and non-GAAP disclosures within this filing shall be deemed unaudited. |
Document
Exhibit 99.2
| Financial Supplement | Second Quarter 2021 |
|---|---|
| Table of Contents | |
| --- | --- |
| Overview | PAGE |
| Corporate Profile | 3 |
| Earnings Release | 5 |
| Selected Quarterly Financial Data | 16 |
| Financial Information | |
| Condensed Consolidated Balance Sheets | 18 |
| Condensed Consolidated Statements of Operations | 19 |
| Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO and AFFO | 20 |
| Reconciliation of Net (Loss) Income to EBITDA, NAREIT EBITDAre, and Core EBITDA | 22 |
| Acquisition, Litigation and Other | 23 |
| Debt Detail and Maturities | 24 |
| Operations Overview | |
| Revenue and Contribution by Segment | 25 |
| Global Warehouse Economic and Physical Occupancy Trend | 26 |
| Global Warehouse Portfolio | 27 |
| Fixed Commitment and Lease Maturity Schedules | 28 |
| Maintenance Capital Expenditures, Repair and Maintenance Expenses and External Growth, Expansion and Development Capital Expenditures | 31 |
| Total Global Warehouse Segment Financial and Operating Performance | |
| Global Warehouse Segment Financial Performance | 32 |
| Same-store Financial Performance | 34 |
| Same-store Key Operating Metrics | 36 |
| Same-store Historical Performance Trend | 38 |
| External Growth and Capital Deployment | 39 |
| Unconsolidated Joint Ventures (Investments in Partially Owned Entities) | 41 |
| 2021 Guidance | 43 |
| Notes and Definitions | 44 |
| Financial Supplement | Second Quarter 2021 |
| --- | --- |
Corporate Profile
We are the world’s largest publicly traded REIT focused on the ownership, operation, acquisition and development of temperature-controlled warehouses. We are organized as a self-administered and self-managed REIT with proven operating, development and acquisition expertise. As of June 30, 2021, we operated a global network of 246 temperature-controlled warehouses encompassing over 1.4 billion cubic feet, with 200 warehouses in North America, 27 in Europe, 16 warehouses in Asia-Pacific, and three warehouses in South America. In addition, we hold two minority interests in Brazilian-based joint ventures, one with SuperFrio, which owns or operates 33 temperature-controlled warehouses and one with Comfrio, which owns or operates 24 temperature-controlled warehouses.
Corporate Headquarters
10 Glenlake Parkway South Tower, Suite 600
Atlanta, Georgia 30328
Telephone: (678) 441-1400
Website: www.americold.com
Senior Management
Fred W. Boehler: Chief Executive Officer, President and Trustee
Marc J. Smernoff: Chief Financial Officer and Executive Vice President
Carlos V. Rodriguez: Chief Operating Officer and Executive Vice President
Robert S. Chambers: Chief Commercial Officer and Executive Vice President
James A. Harron: Chief Investment Officer and Executive Vice President
James C. Snyder, Jr.: Chief Legal Officer and Executive Vice President
Sanjay Lall: Chief Information Officer and Executive Vice President
Thomas C. Novosel: Chief Accounting Officer and Senior Vice President
Board of Trustees
Mark R. Patterson: Chairman of the Board of Trustees
George J. Alburger, Jr.: Trustee
Kelly H. Barrett: Trustee
Fred W. Boehler: Chief Executive Officer, President and Trustee
Antonio F. Fernandez: Trustee
James R. Heistand: Trustee
David J. Neithercut: Trustee
Andrew P. Power: Trustee
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)
| Analyst Coverage | ||
|---|---|---|
| Firm | Analyst Name | Contact |
| Baird Equity Research | David B. Rodgers | 216-737-7341 |
| Bank of America Merrill Lynch | Joshua Dennerlein | 646-855-1681 |
| Berenberg Capital Markets | Nate Crossett | 646-949-9030 |
| Citi | Emmanuel Korchman | 212-816-1382 |
| Green Street Advisors | Vince Tibone | 949-640-8780 |
| J.P. Morgan | Michael W. Mueller | 212-622-6689 |
| KeyBanc | Craig Mailman | 917-368-2316 |
| Raymond James | William A. Crow | 727-567-2594 |
| RBC | Michael Carroll | 440-715-2649 |
| Truist | Ki Bin Kim | 212-303-4124 |
| Financial Supplement | Second Quarter 2021 | |
| --- | --- |
Stock Listing Information
The shares of Americold Realty Trust are traded on the New York Stock Exchange under the symbol “COLD”.
Credit Ratings
| DBRS Morningstar | ||
|---|---|---|
| Credit Rating: | BBB | (Under Review with Positive Implications) |
| 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 2021 |
|---|
AMERICOLD REALTY TRUST ANNOUNCES SECOND QUARTER 2021 RESULTS
Atlanta, GA, August 5, 2021 - Americold Realty Trust (NYSE: COLD) (the “Company”), the world’s largest publicly traded REIT 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, 2021.
Fred Boehler, President and Chief Executive Officer of Americold Realty Trust, stated, “We continued to produce strong growth across our platform, with our Global Warehouse segment revenue up 35% and NOI up 20% in the second quarter 2021, as we benefited from strategic acquisitions completed over the last year. We remain confident in the global demand for all types of food in our diverse portfolio. However, the global food supply chain continues to be impacted by the ongoing effects of COVID, especially limitations on production due to disruptions and challenges in the labor market. While we anticipate these issues will improve in the coming quarters, it will limit near term performance, which will result in our 2021 results being softer than originally anticipated.”
“From an external growth perspective, we continue to execute on strategic developments and acquisitions. During the second quarter, we started on three new developments in Atlanta, GA, Dunkirk, NY and Dublin, Ireland totaling $111 million. Subsequent to quarter end, we acquired ColdCo Logistics in St. Louis, MO, and we entered into purchase agreements to acquire Newark Facility Management in Newark, NJ and Lago Cold Stores in Brisbane, Australia for a combined total of $488 million. While we cannot control the current macro environment, we continue to invest to strengthen our market leadership position and to create meaningful sustained value over the coming years for stakeholders.”
“As we look to the future, our food manufacturing clients are working diligently to return to pre-COVID production and inventory levels. We expect a gradual recovery, but based on feedback from our customers, we do not expect to get back to normalized inventory levels until mid 2022. In the meantime, we benefit from the scale and diversity of our portfolio, the effectiveness of the Americold Operating System, and the discipline of our commercial processes. Additionally, we are proud of our commitment to corporate responsibility, as demonstrated by our partnership with Feed the Children and Tyson Foods to launch an Alliance to Defeat Hunger with a 10-city tour across the US to help feed nearly two million families in need across rural communities.”
Second Quarter 2021 Highlights
•Total revenue increased 35.7% to $654.7 million.
•Total NOI increased 21.0% to $155.3 million.
•Core EBITDA increased 17.7% on an actual basis, and 14.8% on a constant currency basis, to $118.3 million.
•Net loss of $13.4 million, or $0.05 loss per diluted common share.
•Core FFO of $38.6 million, or $0.15 per diluted common share.
•AFFO of $71.7 million, or $0.28 per diluted common share.
•Global Warehouse segment revenue increased 35.3% to $503.7 million.
•Global Warehouse segment NOI increased 20.2% to $144.4 million.
•Global Warehouse segment same store revenue increased 2.1%, and was flat on a constant currency basis, Global Warehouse segment same store segment NOI decreased by 0.8%, or 2.5% on a constant currency basis.
•On May 5, 2021, completed the acquisition of KMT Brrr! in New Jersey for $71.1 million. KMT Brrr! consists of two owned facilities totaling 13 million cubic feet, as well as transportation services.
| Financial Supplement | Second Quarter 2021 |
|---|
•On May 28, 2021, closed on the acquisition of Bowman Stores, which operates a single campus located in Spalding, England for £74.1 million. The campus aggregates 10 million cubic feet along with four buildable acres of land to support additional development.
•Broke ground on a dedicated, build-to-suit facility for a large, private consumer packaged goods manufacturer in Dunkirk, New York. This facility will provide 25,000 pallet positions with expected completion during the second quarter of 2022 and an estimated total cost of $43.0 million.
•Broke ground on the second phase of our Atlanta Major Market Strategy consisting of a highly-automated multi-tenant facility with expected completion during the second quarter of 2023 and an estimated total cost of $36.5 million.
•Broke ground on a conventional multi-tenant facility in Dublin, Ireland with expected completion during the third quarter of 2022 and an estimated total cost of €26.5 million.
Year to Date 2021 Highlights
•Total revenue increased 33.4% to $1.29 billion.
•Total NOI increased 18.5% to $312.5 million.
•Core EBITDA increased 15.4% to $236.1 million, or 12.6% on a constant currency basis.
•Net loss of $27.6 million, or $0.11 per diluted common share.
•Core FFO of $101.2 million, or $0.40 per diluted common share.
•AFFO of $147.7 million, or $0.58 per diluted common share.
•Global Warehouse segment revenue increased 31.3% to $0.99 billion.
•Global Warehouse segment NOI increased 17.7% to $290.6 million.
•Global Warehouse segment same store revenue increased 0.2%, and decreased 1.9% on a constant currency basis, same store segment NOI decreased 3.1%, or 4.7% on a constant currency basis.
Subsequent Event Highlights
•On August 2, 2021, closed on the acquisition of ColdCo in St. Louis, Missouri for $20.5 million. ColdCo consists of one owned facility in St Louis, Missouri, generating approximately 93% of total NOI, and one leased facility in Reno, Nevada. ColdCo's customers are primarily focused on the storage and handling of product for direct-to-consumer distribution, and transportation services.
•Entered into a purchase agreement to acquire Newark Facility Management in Newark, New Jersey for $376.5 million. Newark consists of one owned facility totaling 11.5 million cubic feet that is a single-customer dedicated retail distribution center. The acquisition is expected to close in September 2021.
•Finally, we entered into a purchase agreement to acquire Lago Cold Stores in Brisbane, Australia for A$106.4 million. Lago consists of a 5.4 million cubic feet owned facility, generating approximately 78% of total NOI, and two leased facilities. The acquisition is expected to close in the fourth quarter of 2021.
Second Quarter 2021 Total Company Financial Results
Total revenue for the second quarter of 2021 was $654.7 million, a 35.7% increase from the same quarter of the prior year. This growth was primarily driven by the incremental revenue from acquisitions, including warehouse and transportation operations, and our recently completed development projects. These increases are partially offset by the continued impacts of COVID-19 and
| Financial Supplement | Second Quarter 2021 |
|---|
resulting supply chain disruption which impacted our holdings across our network as production has been unable to keep up with steady consumer demand.
For the second quarter of 2021, the Company reported a net loss of $13.4 million, or $0.05 per diluted share, compared to net income of $32.7 million, or $0.16 per diluted share, for the same quarter of the prior year.
Total NOI for the second quarter of 2021 was $155.3 million, an increase of 21% from the same quarter of the prior year.
Core EBITDA was $118.3 million for the second quarter of 2021, compared to $100.5 million for the same quarter of the prior year. This reflects a 17.7% increase over prior year on an actual basis, and 14.8% on a constant currency basis, driven primarily from acquisition contribution. These increases were partially offset by the ongoing impacts of COVID as previously discussed.
For the second quarter of 2021, Core FFO was $38.6 million, or $0.15 per diluted share, compared to $55.1 million, or $0.27 per diluted share, for same quarter of the prior year.
For the second quarter of 2021, AFFO was $71.7 million, or $0.28 per diluted share, compared to $61.1 million, or $0.30 per diluted share, for the same quarter of the prior year.
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 2021 Global Warehouse Segment Results
For the second quarter of 2021, Global Warehouse segment revenue was $503.7 million, an increase of $131.3 million, or 35%, compared to $372.4 million for the second quarter of 2020. This growth was driven by the recently completed acquisitions and development projects, paired with contractual rate escalations, partially offset by the ongoing impacts from COVID-19 on the supply chain.
Warehouse segment NOI was $144.4 million for the second quarter of 2021, an increase of 20%. Global Warehouse segment margin was 28.7% for the second quarter of 2021, a 360 basis point decrease compared to the same quarter of the prior year. The year-over-year decrease in segment NOI was driven by the recently completed acquisitions, the impact of the appreciation bonus incurred during the second quarter of last year, partially offset by lower holdings and higher operating costs.
We had 162 same stores for the three months ended June 30, 2021. The following table presents revenues, cost of operations, contribution (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, 2021. Amounts related to the Agro, AM-C, Bowman Stores, Caspers, Hall’s, KMT Brrr! and Liberty acquisitions are reflected within non-same store results.
| Financial Supplement | Second Quarter 2021 | | --- | --- || | Three Months Ended June 30, | | | | | | | | | Change | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Dollars in thousands | 2021 actual | | | 2021 constant currency(1) | | | 2020 actual | | | Actual | | Constant currency | | | TOTAL WAREHOUSE SEGMENT | | | | | | | | | | | | | | | Number of total warehouses(2) | 237 | | | | | | 172 | | | n/a | | n/a | | | Global Warehouse revenue: | | | | | | | | | | | | | | | Rent and storage | $ | 212,277 | | $ | 207,878 | | $ | 163,664 | | 29.7 | % | 27.0 | % | | Warehouse services | 291,457 | | | 282,712 | | | 208,747 | | | 39.6 | % | 35.4 | % | | Total revenue | $ | 503,734 | | $ | 490,590 | | $ | 372,411 | | 35.3 | % | 31.7 | % | | Global Warehouse contribution (NOI) | $ | 144,379 | | $ | 140,691 | | $ | 120,132 | | 20.2 | % | 17.1 | % | | Global Warehouse margin | 28.7 | | % | 28.7 | | % | 32.3 | | % | -360 bps | | -358 bps | | | Units in thousands except per pallet data | | | | | | | | | | | | | | | Global Warehouse rent and storage metrics: | | | | | | | | | | | | | | | Average economic occupied pallets | 3,944 | | | n/a | | | 3,165 | | | 24.6 | % | n/a | | | Average physical occupied pallets | 3,607 | | | n/a | | | 2,891 | | | 24.8 | % | n/a | | | Average physical pallet positions | 5,241 | | | n/a | | | 4,049 | | | 29.4 | % | n/a | | | Economic occupancy percentage | 75.2 | | % | n/a | | | 78.2 | | % | -292 bps | | n/a | | | Physical occupancy percentage | 68.8 | | % | n/a | | | 71.4 | | % | -260 bps | | n/a | | | Total rent and storage revenue per economic occupied pallet | $ | 53.82 | | $ | 52.71 | | $ | 51.71 | | 4.1 | % | 1.9 | % | | Total rent and storage revenue per physical occupied pallet | $ | 58.85 | | $ | 57.63 | | $ | 56.60 | | 4.0 | % | 1.8 | % | | Global Warehouse services metrics: | | | | | | | | | | | | | | | Throughput pallets | 9,919 | | | n/a | | | 7,716 | | | 28.6 | % | n/a | | | Total warehouse services revenue per throughput pallet | $ | 29.38 | | $ | 28.50 | | $ | 27.05 | | 8.6 | % | 5.4 | % | | SAME STORE WAREHOUSE | | | | | | | | | | | | | | | Number of same store warehouses | 162 | | | | | | 162 | | | n/a | | n/a | | | Global Warehouse same store revenue: | | | | | | | | | | | | | | | Rent and storage | $ | 150,984 | | $ | 149,320 | | $ | 152,893 | | (1.2) | % | (2.3) | % | | Warehouse services | 209,258 | | | 203,647 | | | 199,832 | | | 4.7 | % | 1.9 | % | | Total same store revenue | $ | 360,242 | | $ | 352,967 | | $ | 352,725 | | 2.1 | % | 0.1 | % | | Global Warehouse same store contribution (NOI) | $ | 116,284 | | $ | 114,345 | | $ | 117,221 | | (0.8) | % | (2.5) | % | | Global Warehouse same store margin | 32.3 | | % | 32.4 | | % | 33.2 | | % | -95 bps | | -84 bps | | | Units in thousands except per pallet data | | | | | | | | | | | | | | | Global Warehouse same store rent and storage metrics: | | | | | | | | | | | | | | | Average economic occupied pallets | 2,830 | | | n/a | | | 2,971 | | | (4.7) | % | n/a | | | Average physical occupied pallets | 2,515 | | | n/a | | | 2,705 | | | (7.0) | % | n/a | | | Average physical pallet positions | 3,763 | | | n/a | | | 3,750 | | | 0.3 | % | n/a | | | Economic occupancy percentage | 75.2 | | % | n/a | | | 79.2 | | % | -403 bps | | n/a | | | Physical occupancy percentage | 66.8 | | % | n/a | | | 72.1 | | % | -531 bps | | n/a | | | Same store rent and storage revenue per economic occupied pallet | $ | 53.35 | | $ | 52.76 | | $ | 51.45 | | 3.7 | % | 2.5 | % | | Same store rent and storage revenue per physical occupied pallet | $ | 60.03 | | $ | 59.37 | | $ | 56.52 | | 6.2 | % | 5.0 | % | | Global Warehouse same store services metrics: | | | | | | | | | | | | | | | Throughput pallets | 7,351 | | | n/a | | | 7,333 | | | 0.3 | % | n/a | | | Same store warehouse services revenue per throughput pallet | $ | 28.47 | | $ | 27.70 | | $ | 27.25 | | 4.5 | % | 1.7 | % || Financial Supplement | Second Quarter 2021 | | --- | --- || | Three Months Ended June 30, | | | | | | | | | Change | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Dollars in thousands | 2021 actual | | | 2021 constant currency(1) | | | 2020 actual | | | Actual | | Constant currency | | | NON-SAME STORE WAREHOUSE | | | | | | | | | | | | | | | Number of non-same store warehouses(3) | 75 | | | | | | 10 | | | n/a | | n/a | | | Global Warehouse non-same store revenue: | | | | | | | | | | | | | | | Rent and storage | $ | 61,293 | | $ | 58,558 | | $ | 10,771 | | 469.1 | % | 443.7 | % | | Warehouse services | 82,199 | | | 79,065 | | | 8,915 | | | 822.0 | % | 786.9 | % | | Total non-same store revenue | $ | 143,492 | | $ | 137,623 | | $ | 19,686 | | 628.9 | % | 599.1 | % | | Global Warehouse non-same store contribution (NOI) | $ | 28,095 | | $ | 26,346 | | $ | 2,911 | | 865.1 | % | 805.0 | % | | Global Warehouse non-same store margin | 19.6 | | % | 19.1 | | % | 14.8 | | % | 479 bps | | 436 bps | | | Units in thousands except per pallet data | | | | | | | | | | | | | | | Global Warehouse non-same store rent and storage metrics: | | | | | | | | | | | | | | | Average economic occupied pallets | 1,114 | | | n/a | | | 194 | | | 474.2 | % | n/a | | | Average physical occupied pallets | 1,092 | | | n/a | | | 186 | | | 486.6 | % | n/a | | | Average physical pallet positions | 1,479 | | | n/a | | | 299 | | | 394.6 | % | n/a | | | Economic occupancy percentage | 75.3 | | % | n/a | | | 64.7 | | % | 1062 bps | | n/a | | | Physical occupancy percentage | 73.8 | | % | n/a | | | 62.2 | | % | 1164 bps | | n/a | | | Non-same store rent and storage revenue per economic occupied pallet | $ | 55.03 | | $ | 52.57 | | $ | 55.63 | | (1.1) | % | (5.5) | % | | Non-same store rent and storage revenue per physical occupied pallet | $ | 56.13 | | $ | 53.63 | | $ | 57.87 | | (3.0) | % | (7.3) | % | | Global Warehouse non-same store services metrics: | | | | | | | | | | | | | | | Throughput pallets | 2,568 | | | n/a | | | 384 | | | 569.3 | % | n/a | | | Non-same store warehouse services revenue per throughput pallet | $ | 32.01 | | $ | 30.79 | | $ | 23.23 | | 37.8 | % | 32.5 | % |
(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) Total warehouse count of 237 includes one recently leased warehouse in Australia, one warehouse acquired through the Bowman Stores acquisition on May 28, 2021, two warehouses acquired through the KMT Brrr! acquisition on May 5, 2021, four warehouses acquired through the Liberty acquisition on March 1, 2021, 46 warehouses acquired through the Agro acquisition on December 30, 2020, eight warehouses acquired through the Hall’s acquisition on November 2, 2020, three warehouses acquired through the Casper’s and AM-C warehouse acquisitions on August 31, 2020, and five warehouses acquired through the Nova Cold and Newport acquisitions on January 2, 2020. The results of these acquisitions are reflected in the results above since date of ownership.
(3) Non-same store warehouse count of 75 includes one recently leased warehouse in Australia, one warehouse acquired through the Bowman Stores acquisition on May 28, 2021, two warehouses acquired through the KMT Brrr! acquisition on May 5, 2021, four warehouses acquired through the Liberty acquisition on March 1, 2021, 46 warehouses acquired through the Agro acquisition on December 30, 2020, eight warehouses acquired through the Hall’s acquisition on November 2, 2020, and three warehouses acquired through the Casper’s and AM-C warehouse acquisitions on August 31, 2020. The results of these acquisitions are reflected in the results above since date of ownership.
(n/a = not applicable)
| Financial Supplement | Second Quarter 2021 | | --- | --- || | Six Months Ended June 30, | | | | | | | | | Change | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Dollars in thousands | 2021 actual | | | 2021 constant currency(1) | | | 2020 actual | | | Actual | | Constant currency | | | TOTAL WAREHOUSE SEGMENT | | | | | | | | | | | | | | | Number of total warehouses(2) | 237 | | | | | | 172 | | | n/a | | n/a | | | Global Warehouse revenue: | | | | | | | | | | | | | | | Rent and storage | $ | 417,553 | | $ | 409,564 | | $ | 325,973 | | 28.1 | % | 25.6 | % | | Warehouse services | 571,632 | | | 554,605 | | | 427,506 | | | 33.7 | % | 29.7 | % | | Total revenue | $ | 989,185 | | $ | 964,169 | | $ | 753,479 | | 31.3 | % | 28.0 | % | | Global Warehouse contribution (NOI) | $ | 290,560 | | $ | 283,532 | | $ | 246,905 | | 17.7 | % | 14.8 | % | | Global Warehouse margin | 29.4 | | % | 29.4 | | % | 32.8 | | % | -340 bps | | -336 bps | | | Units in thousands except per pallet data | | | | | | | | | | | | | | | Global Warehouse rent and storage metrics: | | | | | | | | | | | | | | | Average economic occupied pallets | 3,961 | | | n/a | | | 3,211 | | | 23.4 | % | n/a | | | Average physical occupied pallets | 3,617 | | | n/a | | | 2,970 | | | 21.8 | % | n/a | | | Average physical pallet positions | 5,200 | | | n/a | | | 4,028 | | | 29.1 | % | n/a | | | Economic occupancy percentage | 76.2 | | % | n/a | | | 79.7 | | % | -354 bps | | n/a | | | Physical occupancy percentage | 69.6 | | % | n/a | | | 73.7 | | % | -418 bps | | n/a | | | Total rent and storage revenue per economic occupied pallet | $ | 105.42 | | $ | 103.40 | | $ | 101.53 | | 3.8 | % | 1.8 | % | | Total rent and storage revenue per physical occupied pallet | $ | 115.44 | | $ | 113.23 | | $ | 109.75 | | 5.2 | % | 3.2 | % | | Global Warehouse services metrics: | | | | | | | | | | | | | | | Throughput pallets | 19,449 | | | n/a | | | 15,916 | | | 22.2 | % | n/a | | | Total warehouse services revenue per throughput pallet | $ | 29.39 | | $ | 28.52 | | $ | 26.86 | | 9.4 | % | 6.2 | % | | SAME STORE WAREHOUSE | | | | | | | | | | | | | | | Number of same store warehouses | 162 | | | | | | 162 | | | n/a | | n/a | | | Global Warehouse same store revenue: | | | | | | | | | | | | | | | Rent and storage | $ | 300,150 | | $ | 296,836 | | $ | 305,698 | | (1.8) | % | (2.9) | % | | Warehouse services | 415,343 | | | 404,021 | | | 408,693 | | | 1.6 | % | (1.1) | % | | Total same store revenue | $ | 715,493 | | $ | 700,857 | | $ | 714,391 | | 0.2 | % | (1.9) | % | | Global Warehouse same store contribution (NOI) | $ | 234,727 | | $ | 230,696 | | $ | 242,149 | | (3.1) | % | (4.7) | % | | Global Warehouse same store margin | 32.8 | | % | 32.9 | | % | 33.9 | | % | -109 bps | | -98 bps | | | Units in thousands except per pallet data | | | | | | | | | | | | | | | Global Warehouse same store rent and storage metrics: | | | | | | | | | | | | | | | Average economic occupied pallets | 2,858 | | | n/a | | | 3,033 | | | (5.8) | % | n/a | | | Average physical occupied pallets | 2,538 | | | n/a | | | 2,799 | | | (9.3) | % | n/a | | | Average physical pallet positions | 3,763 | | | n/a | | | 3,747 | | | 0.4 | % | n/a | | | Economic occupancy percentage | 76.0 | | % | n/a | | | 80.9 | | % | -498 bps | | n/a | | | Physical occupancy percentage | 67.4 | | % | n/a | | | 74.7 | | % | -725 bps | | n/a | | | Same store rent and storage revenue per economic occupied pallet | $ | 105.01 | | $ | 103.85 | | $ | 100.80 | | 4.2 | % | 3.0 | % | | Same store rent and storage revenue per physical occupied pallet | $ | 118.25 | | $ | 116.94 | | $ | 109.20 | | 8.3 | % | 7.1 | % | | Global Warehouse same store services metrics: | | | | | | | | | | | | | | | Throughput pallets | 14,476 | | | n/a | | | 15,080 | | | (4.0) | % | n/a | | | Same store warehouse services revenue per throughput pallet | $ | 28.69 | | $ | 27.91 | | $ | 27.10 | | 5.9 | % | 3.0 | % || Financial Supplement | Second Quarter 2021 | | --- | --- || | Six Months Ended June 30, | | | | | | | | | Change | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Dollars in thousands | 2021 actual | | | 2021 constant currency(1) | | | 2020 actual | | | Actual | | Constant currency | | | NON-SAME STORE WAREHOUSE | | | | | | | | | | | | | | | Number of non-same store warehouses(3) | 75 | | | | | | 10 | | | n/a | | n/a | | | Global Warehouse non-same store revenue: | | | | | | | | | | | | | | | Rent and storage | $ | 117,403 | | $ | 112,728 | | $ | 20,275 | | 479.1 | % | 456.0 | % | | Warehouse services | 156,289 | | | 150,584 | | | 18,813 | | | 730.8 | % | 700.4 | % | | Total non-same store revenue | $ | 273,692 | | $ | 263,312 | | $ | 39,088 | | 600.2 | % | 573.6 | % | | Global Warehouse non-same store contribution (NOI) | $ | 55,833 | | $ | 52,836 | | $ | 4,756 | | 1,073.9 | % | 1,010.9 | % | | Global Warehouse non-same store margin | 20.4 | | % | 20.1 | | % | 12.2 | | % | 823 bps | | 790 bps | | | Units in thousands except per pallet data | | | | | | | | | | | | | | | Global Warehouse non-same store rent and storage metrics: | | | | | | | | | | | | | | | Average economic occupied pallets | 1,102 | | | n/a | | | 178 | | | 520.0 | % | n/a | | | Average physical occupied pallets | 1,079 | | | n/a | | | 171 | | | 532.0 | % | n/a | | | Average physical pallet positions | 1,437 | | | n/a | | | 280 | | | 412.4 | % | n/a | | | Economic occupancy percentage | 76.7 | | % | n/a | | | 63.4 | | % | 1332 bps | | n/a | | | Physical occupancy percentage | 75.1 | | % | n/a | | | 60.9 | | % | 1421 bps | | n/a | | | Non-same store rent and storage revenue per economic occupied pallet | $ | 106.49 | | $ | 102.25 | | $ | 114.02 | | (6.6) | % | (10.3) | % | | Non-same store rent and storage revenue per physical occupied pallet | $ | 108.82 | | $ | 104.49 | | $ | 118.76 | | (8.4) | % | (12.0) | % | | Global Warehouse non-same store services metrics: | | | | | | | | | | | | | | | Throughput pallets | 4,973 | | | n/a | | | 835 | | | 495.6 | % | n/a | | | Non-same store warehouse services revenue per throughput pallet | $ | 31.43 | | $ | 30.28 | | $ | 22.52 | | 39.6 | % | 34.5 | % |
(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) Total warehouse count of 237 includes one recently leased warehouse in Australia, one warehouse acquired through the Bowman Stores acquisition on May 28, 2021, two warehouses acquired through the KMT Brrr! acquisition on May 5, 2021, four warehouses acquired through the Liberty acquisition on March 1, 2021, 46 warehouses acquired through the Agro acquisition on December 30, 2020, eight warehouses acquired through the Hall’s acquisition on November 2, 2020, three warehouses acquired through the Casper’s and AM-C warehouse acquisitions on August 31, 2020, and five warehouses acquired through the Nova Cold and Newport acquisitions on January 2, 2020. The results of these acquisitions are reflected in the results above since date of ownership.
(3) Non-same store warehouse count of 75 includes one recently leased warehouse in Australia, one warehouse acquired through the Bowman Stores acquisition on May 28, 2021, two warehouses acquired through the KMT Brrr! acquisition on May 5, 2021, four warehouses acquired through the Liberty acquisition on March 1, 2021, 46 warehouses acquired through the Agro acquisition on December 30, 2020, eight warehouses acquired through the Hall’s acquisition on November 2, 2020, and three warehouses acquired through the Casper’s and AM-C warehouse acquisitions on August 31, 2020. The results of these acquisitions are reflected in the results above since date of ownership.
(n/a = not applicable)
Fixed Commitment Rent and Storage Revenue
As of June 30, 2021, $333.0 million of the Company’s annualized rent and storage revenue were derived from customers with fixed commitment storage contracts. This compares to $307.4 million at the end of the first quarter of 2021 and $270.0 million at the end of the second quarter of 2020. The Company’s recent acquisitions had a lower percentage of fixed committed contracts as a percentage of rent and storage revenue. On a combined pro forma basis, assuming a full twelve months of acquisitions revenue, 38.9% of rent and storage revenue was generated from fixed commitment storage contracts, which is a 240 basis point increase over the first quarter of 2021.
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 2021, economic occupancy for the total warehouse segment was 75.2% and warehouse segment same store
| Financial Supplement | Second Quarter 2021 |
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pool was 75.2%, representing a 643 basis point and 838 basis point increase above physical occupancy, respectively. Economic occupancy for the total warehouse segment decreased 292 basis points, and the warehouse segment same store pool decreased 403 basis points as compared to the second quarter of 2020, as we were impacted by reduced food production volumes and food service activity, and elevated prior year holding levels.
Real Estate Portfolio
As of June 30, 2021, the Company’s portfolio consists of 246 facilities. The Company ended the second quarter of 2021 with 237 facilities in its Global Warehouse segment portfolio and nine facilities in its Third-party managed segment. During the second quarter of 2021, the Company added three facilities through the acquisitions of Bowman Stores and KMT Brrr!. Additionally, during the second quarter, the Company entered into a two-year lease of a facility in Perth, Australia, totaling approximately 1 million cubic feet and 5,000 pallet positions, in order to address strong demand from our retail customers in Western, Australia. The same store population consists of 162 facilities for the quarter ended June 30, 2021. The remaining 75 non-same store population includes the 64 facilities that were acquired in connection with the Agro, AM-C, Bowman Stores, Caspers, Hall’s, KMT Brrr! and Liberty acquisitions, the recently leased facility in Australia and ten legacy facilities.
Balance Sheet Activity and Liquidity
As of June 30, 2021, the Company had total liquidity of approximately $1.3 billion, including cash, capacity on its revolving credit facility and $231 million of net proceeds available from equity forward contracts. Total debt outstanding was $2.9 billion (inclusive of $296.2 million of financing leases/sale lease-backs and exclusive of unamortized deferred financing fees), of which 80% was in an unsecured structure. The Company has no material debt maturities until 2023. At quarter end, its net debt to pro forma Core EBITDA was approximately 4.9x. Of the Company’s total debt outstanding, $2.6 billion relates to real estate debt, which excludes sale-leaseback and capitalized lease obligations. The Company’s real estate debt has a remaining weighted average term of 7.0 years and carries a weighted average contractual interest rate of 3.01%. As of June 30, 2021, 84% of the Company’s total debt outstanding was at a fixed rate.
The Company’s equity forwards, the current respective contractual latest settlement dates, and net proceeds are detailed in the table below:
| Outstanding Equity Forward Data | ||||
|---|---|---|---|---|
| in millions, except share price amounts | ||||
| Quarter Raised | Forward Shares | Net Share Price1 | Net Proceeds | Target Use of Net Proceeds |
| 4Q 2020 | 4.785 | $35.86 | 171.6 | Fund future growth initiatives |
| 2Q 2021 | 1.530 | $38.56 | 59.0 | Fund future growth initiatives |
| 6.315 | $36.52 | 230.6 | ||
| (1) Net of underwriter fee, forward costs and dividends paid. |
All values are in US Dollars.
Dividend
On May 20, 2021, the Company’s Board of Trustees declared a dividend of $0.22 per share for the second quarter of 2021, which was paid on July 15, 2021 to common shareholders of record as of June 30, 2021.
| Financial Supplement | Second Quarter 2021 |
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2021 Outlook
The Company revised its annual AFFO per share guidance to $1.34- $1.40, and updated certain components. Refer to page 43 of this Financial Supplement for the details of our annual guidance. The Company’s guidance is provided for informational purposes based on current plans and assumptions and is subject to change. The ranges for these metrics do not include the impact of acquisitions, dispositions, or capital markets activity beyond that which has been previously announced.
Investor Webcast and Conference Call
The Company will hold a webcast and conference call on Thursday, August 5, 2021 at 5:00 p.m. Eastern Time to discuss second quarter 2021 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 five 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 1-855-327-6837 or 1-613-891-4304. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID# 10015471. The telephone replay will be available starting shortly after the call until August 19, 2021.
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.
About the Company
Americold is the world’s largest publicly traded REIT focused on the ownership, operation, acquisition and development of temperature-controlled warehouses. Based in Atlanta, Georgia, Americold owns and operates 246 temperature-controlled warehouses, with over 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 FFO, core FFO, AFFO, EBITDAre, Core EBITDA and same store segment revenue and contribution. A reconciliation from U.S. GAAP net (loss) income available to common shareholders to FFO, a reconciliation from FFO to core FFO and AFFO, and definitions of FFO, and core FFO are included within the supplemental. A reconciliation from U.S. GAAP net (loss) income available to common shareholders to EBITDAre and Core EBITDA, a definition of Core EBITDA and definitions of net debt to Core EBITDA are included within the supplemental.
Forward-Looking Statements
This document 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: uncertainties and risks related to public
| Financial Supplement | Second Quarter 2021 |
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health crises, including the ongoing COVID-19 pandemic; adverse economic or real estate developments in our geographic markets or the temperature-controlled warehouse industry; general economic conditions; risks associated with the ownership of real estate and temperature-controlled warehouses in particular; acquisition risks, including the failure to identify or complete attractive acquisitions or the failure of acquisitions to perform in accordance with projections and to realize anticipated cost savings and revenue improvements; our failure to realize the intended benefits from our recent acquisitions, including the Agro acquisition, and including synergies, or disruptions to our plans and operations or unknown or contingent liabilities related to our recent acquisitions; 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; a failure of our information technology systems, cybersecurity attacks or a breach of our information security systems, networks or processes could cause business disruptions or loss of confidential information; risks related to privacy and data security concerns, and data collection and transfer restrictions and related foreign regulations; defaults or non-renewals of significant customer contracts, including as a result of the ongoing COVID-19 pandemic; uncertainty of revenues, given the nature of our customer contracts; increased interest rates and operating costs, including as a result of the ongoing COVID-19 pandemic; our failure to obtain necessary outside financing; risks related to, or restrictions contained in, our debt financings; decreased storage rates or increased vacancy rates; risks related to current and potential international operations and properties; difficulties in expanding our operations into new markets, including international markets; risks related to the partial ownership of properties, including as a result of our lack of control over such investments and the failure of such entities to perform in accordance with projections; our failure to maintain our status as a REIT; possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently or previously owned by us; financial market fluctuations; actions by our competitors and their increasing ability to compete with us; labor and power costs; labor availability; changes in applicable governmental regulations and tax legislation, including in the international markets; additional risks with respect to the addition of European operations and properties; changes in real estate and zoning laws and increases in real property tax rates; the competitive environment in which we operate; our relationship with our employees, including the occurrence of any work stoppages or any disputes under our collective bargaining agreements and employment related litigation; liabilities as a result of our participation in multi-employer pension plans; losses in excess of our insurance coverage; the potential liabilities, costs and regulatory impacts associated with our in-house trucking services and the potential disruptions associated with the use of third-party trucking service providers to provide transportation services to our customers; the cost and time requirements as a result of our operation as a publicly traded REIT; changes in foreign currency exchange rates; the impact of anti-takeover provisions in our constituent documents and under Maryland law, which could make an acquisition of us more difficult, limit attempts by our shareholders to replace our trustees and affect the price of our common shares of beneficial interest, $0.01 par value per share, of our common shares; the potential dilutive effect of our common share offerings; and risks related to any forward sale agreements, including substantial dilution to our earnings per share or substantial cash payment obligations.
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. Examples of forward-looking statements included in this document include, among others, statements about our expected acquisition and expected expansion and development pipeline and our targeted return on invested capital on expansion and development opportunities. 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
| Financial Supplement | Second Quarter 2021 |
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December 31, 2020, 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.
Contacts:
Americold Realty Trust
Investor Relations
Telephone: 678-459-1959
Email: investor.relations@americold.com
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Selected Quarterly Financial Data
| In thousands, except per share amounts - unaudited | As of | ||||
|---|---|---|---|---|---|
| Capitalization: | Q2 21 | Q1 21 | Q4 20 | Q3 20 | Q2 20 |
| Fully diluted common shares outstanding at quarter end(1) | 263,676 | 257,392 | 256,829 | 208,764 | 208,354 |
| Common stock share price at quarter end | 37.85 | 38.47 | 37.73 | 35.75 | 36.30 |
| Market value of common equity | 9,980,137 | 9,901,870 | 9,690,158 | 7,463,313 | 7,563,250 |
| Gross debt (2) | 2,874,481 | 2,778,873 | 2,975,204 | 2,034,087 | 2,025,246 |
| Less: cash and cash equivalents | 316,077 | 287,691 | 621,051 | 173,913 | 298,709 |
| Net debt | 2,558,404 | 2,491,182 | 2,354,153 | 1,860,174 | 1,726,537 |
| Total enterprise value | 12,538,541 | 12,393,052 | 12,044,311 | 9,323,487 | 9,289,787 |
| Net debt / total enterprise value | 20.4 | 20.1 | 19.5 | 20.0 | 18.6 |
| Net debt to pro forma Core EBITDA(2) | 4.88x | 4.79x | 4.43x | 4.34x | 4.13x |
| Three Months Ended | |||||
| Selected Operational Data: | Q2 21 | Q1 21 | Q4 20 | Q3 20 | Q2 20 |
| Warehouse segment revenue | 503,734 | 485,451 | 407,811 | 388,024 | 372,411 |
| Total revenue | 654,707 | 634,795 | 523,678 | 497,458 | 482,522 |
| Operating income | 22,905 | 14,226 | 26,771 | 37,457 | 56,545 |
| Net (loss) income | (13,399) | (14,236) | (43,992) | 12,374 | 32,662 |
| Total warehouse segment contribution (NOI) (3) | 144,379 | 146,181 | 145,672 | 127,756 | 120,132 |
| Total segment contribution (NOI) (3) | 155,289 | 157,240 | 152,439 | 135,319 | 128,338 |
| Selected Other Data: | |||||
| Core EBITDA (4) | 118,339 | 117,789 | 117,213 | 104,075 | 100,512 |
| Core funds from operations (1) | 38,620 | 62,546 | 81,907 | 58,626 | 55,108 |
| Adjusted funds from operations (1) | 71,743 | 75,921 | 76,882 | 62,741 | 61,103 |
| Earnings Measurements: | |||||
| Net (loss) income per share - basic | (0.05) | (0.06) | (0.21) | 0.06 | 0.16 |
| Net (loss) income per share - diluted | (0.05) | (0.06) | (0.21) | 0.06 | 0.16 |
| Core FFO per diluted share (4) | 0.15 | 0.24 | 0.39 | 0.28 | 0.27 |
| AFFO per diluted share (4) | 0.28 | 0.30 | 0.37 | 0.30 | 0.30 |
| Dividend distributions declared per common share (5) | 0.22 | 0.22 | 0.21 | 0.21 | 0.21 |
| Diluted AFFO payout ratio (6) | 78.6 | 73.3 | 56.8 | 70.0 | 70.0 |
| Portfolio Statistics: | |||||
| Total global warehouses | 246 | 242 | 238 | 185 | 183 |
| Average economic occupancy | 75.2 | 77.0 | 79.2 | 77.2 | 78.2 |
| Average physical occupancy | 68.8 | 70.3 | 72.3 | 69.9 | 71.4 |
| Total global same-store warehouses | 162 | 162 | 135 | 135 | 135 |
All values are in US Dollars.
| Financial Supplement | Second Quarter 2021 | ||||
|---|---|---|---|---|---|
| (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 | 06/30/2021 | 12/31/2020 | |||
| Total debt | |||||
| Deferred financing costs | 11,994 | 15,952 | |||
| Gross debt | 2,874,481 | 2,975,204 | |||
| Adjustments: | |||||
| Less: cash and cash equivalents | 316,077 | 621,051 | |||
| Net debt | |||||
| Core EBITDA - last twelve months | 457,416 | 425,910 | |||
| Core EBITDA from acquisitions (a) | 66,455 | 105,362 | |||
| Pro forma Core EBITDA - last twelve months | 523,871 | 531,272 | |||
| Net debt to pro forma Core EBITDA | 4.88x | 4.43x | |||
| (a) As of June 30, 2021, amount includes two months of Core EBITDA from the Caspers and AM-C Warehouse acquisitions, four months of Core EBITDA from the Halls acquisition, six months of Core EBITDA from the Agro acquisition, eight months of Core EBITDA from the Liberty acquisition, ten months of Core EBITDA from the KMT Brrr! acquisition and eleven months of Core EBITDA from the Bowman Stores acquisition prior to Americold’s ownership of the respective acquired entities. | |||||
| (3) Reconciliation of segment contribution (NOI) | |||||
| Three Months Ended | |||||
| Q2 21 | Q1 21 | Q4 20 | Q3 20 | Q2 20 | |
| Warehouse segment contribution (NOI) | 144,379 | 146,181 | $145,672 | $127,756 | $120,132 |
| Third-party managed segment contribution (NOI) | 1,693 | 4,382 | 1,767 | 3,393 | 3,299 |
| Transportation segment contribution (NOI) | 9,250 | 6,703 | 5,043 | 4,187 | 4,772 |
| Other segment contribution (NOI) | (33) | (26) | (43) | (17) | 135 |
| Total segment contribution (NOI) | 155,289 | 157,240 | $152,439 | $135,319 | $128,338 |
| Depreciation and amortization | (84,459) | (77,211) | (58,319) | (53,569) | (52,399) |
| Selling, general and administrative | (42,475) | (45,052) | (39,536) | (35,969) | (32,340) |
| Acquisition, litigation and other | (3,922) | (20,751) | (26,535) | (5,282) | (2,801) |
| Gain (loss) from sale of real estate | — | — | 676 | (427) | 19,414 |
| Impairment of long-lived assets | (1,528) | — | (1,954) | (2,615) | (3,667) |
| U.S. GAAP operating income | 22,905 | 14,226 | $26,771 | $37,457 | $56,545 |
| (4) See “Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and AFFO” and “Reconciliation of Net (Loss) Income to EBITDA, EBITDAre, and Core EBITDA” pages 18-20 | |||||
| (5) Distributions per common share | Three Months Ended | ||||
| Q2 21 | Q1 21 | Q4 20 | Q3 20 | Q2 20 | |
| Distributions declared on common shares during the quarter | 57,897 | 56,029 | $53,820 | $43,282 | $43,271 |
| Common shares outstanding at quarter end | 261,015 | 252,520 | 251,703 | 203,680 | 203,616 |
| Distributions declared per common share of beneficial interest | 0.22 | 0.22 | $0.21 | $0.21 | $0.21 |
| (6) Calculated as distributions declared on common shares divided by AFFO per weighted average diluted share |
All values are in US Dollars.
| Financial Supplement | Second Quarter 2021 |
|---|
Financial Information
| Americold Realty Trust and Subsidiaries | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Condensed Consolidated Balance Sheets (Unaudited) | |||||||||||||||
| (In thousands, except shares and per share amounts) | |||||||||||||||
| June 30, | December 31, | ||||||||||||||
| 2021 | 2020 | ||||||||||||||
| Assets | |||||||||||||||
| Property, buildings and equipment: | |||||||||||||||
| Land | $ | 705,862 | $ | 662,885 | |||||||||||
| Buildings and improvements | 3,847,631 | 4,004,824 | |||||||||||||
| Machinery and equipment | 1,274,690 | 1,177,572 | |||||||||||||
| Assets under construction | 382,730 | 303,531 | |||||||||||||
| 6,210,913 | 6,148,812 | ||||||||||||||
| Accumulated depreciation | (1,504,758) | (1,382,298) | |||||||||||||
| Property, buildings and equipment – net | 4,706,155 | 4,766,514 | |||||||||||||
| Operating lease right-of-use assets | 352,880 | 291,797 | |||||||||||||
| Accumulated depreciation – operating leases | (40,202) | (24,483) | |||||||||||||
| Operating leases – net | 312,678 | 267,314 | |||||||||||||
| Financing leases: | |||||||||||||||
| Buildings and improvements | 24,761 | 60,513 | |||||||||||||
| Machinery and equipment | 148,408 | 109,416 | |||||||||||||
| 173,169 | 169,929 | ||||||||||||||
| Accumulated depreciation – financing leases | (53,785) | (40,937) | |||||||||||||
| Financing leases – net | 119,384 | 128,992 | |||||||||||||
| Cash, cash equivalents and restricted cash | 316,077 | 621,051 | |||||||||||||
| Accounts receivable – net of allowance of $15,197 and $12,286 at June 30, 2021 and December 31, 2020, respectively | 325,440 | 324,221 | |||||||||||||
| Identifiable intangible assets – net | 875,038 | 797,423 | |||||||||||||
| Goodwill | 1,018,288 | 794,335 | |||||||||||||
| Investments in partially owned entities | 42,742 | 44,907 | |||||||||||||
| Other assets | 107,518 | 86,394 | |||||||||||||
| Total assets | $ | 7,823,320 | $ | 7,831,151 | |||||||||||
| Liabilities and equity | |||||||||||||||
| Liabilities: | |||||||||||||||
| Borrowings under revolving line of credit | $ | 139,105 | $ | — | |||||||||||
| Accounts payable and accrued expenses | 563,566 | 552,547 | |||||||||||||
| Mortgage notes, senior unsecured notes and term loans – net of deferred financing costs of $11,994 and $15,952 in the aggregate, at June 30, 2021 and December 31, 2020, respectively | 2,427,164 | 2,648,266 | |||||||||||||
| Sale-leaseback financing obligations | 184,515 | 185,060 | |||||||||||||
| Financing lease obligations | 111,703 | 125,926 | |||||||||||||
| Operating lease obligations | 285,715 | 269,147 | |||||||||||||
| Unearned revenue | 20,344 | 19,209 | |||||||||||||
| Pension and postretirement benefits | 7,880 | 9,145 | |||||||||||||
| Deferred tax liability – net | 208,799 | 220,502 | |||||||||||||
| Multiemployer pension plan withdrawal liability | 8,354 | 8,528 | |||||||||||||
| Total liabilities | 3,957,145 | 4,038,330 | |||||||||||||
| Equity | |||||||||||||||
| Shareholders’ equity: | |||||||||||||||
| Common shares of beneficial interest, $0.01 par value – 500,000,000 and 325,000,000 authorized shares; 261,015,053 and 251,702,603 issued and outstanding at June 30, 2021 and December 31, 2020, respectively | 2,610 | 2,517 | |||||||||||||
| Paid-in capital | 4,900,398 | 4,687,823 | |||||||||||||
| Accumulated deficit and distributions in excess of net earnings | (1,036,987) | (895,521) | |||||||||||||
| Accumulated other comprehensive loss | (4,628) | (4,379) | |||||||||||||
| Total shareholders’ equity | 3,861,393 | 3,790,440 | |||||||||||||
| Noncontrolling interests: | |||||||||||||||
| Noncontrolling interests in operating partnership and consolidated joint venture | 4,782 | 2,381 | |||||||||||||
| Total equity | 3,866,175 | 3,792,821 | |||||||||||||
| Total liabilities and equity | $ | 7,823,320 | $ | 7,831,151 | |||||||||||
| Financial Supplement | Second Quarter 2021 | ||||||||||||||
| --- | --- | ||||||||||||||
| Americold Realty Trust and Subsidiaries | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||||||
| (In thousands, except per share amounts) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Revenues: | |||||||||||||||
| Rent, storage and warehouse services | $ | 503,734 | $ | 372,411 | $ | 989,185 | $ | 753,479 | |||||||
| Third-party managed services | 72,173 | 72,954 | 145,245 | 137,875 | |||||||||||
| Transportation services | 78,800 | 34,861 | 155,072 | 70,778 | |||||||||||
| Other | — | 2,296 | — | 4,459 | |||||||||||
| Total revenues | 654,707 | 482,522 | 1,289,502 | 966,591 | |||||||||||
| Operating expenses: | |||||||||||||||
| Rent, storage and warehouse services cost of operations | 359,355 | 252,279 | 698,625 | 506,574 | |||||||||||
| Third-party managed services cost of operations | 70,480 | 69,655 | 139,170 | 130,807 | |||||||||||
| Transportation services cost of operations | 69,550 | 30,089 | 139,119 | 61,201 | |||||||||||
| Cost of operations related to other revenues | 33 | 2,161 | 59 | 4,269 | |||||||||||
| Depreciation and amortization | 84,459 | 52,399 | 161,670 | 104,003 | |||||||||||
| Selling, general and administrative | 42,475 | 32,340 | 87,527 | 69,233 | |||||||||||
| Acquisition, litigation and other | 3,922 | 2,801 | 24,673 | 4,489 | |||||||||||
| Impairment of long-lived assets | 1,528 | 3,667 | 1,528 | 3,667 | |||||||||||
| Gain from sale of real estate | — | (19,414) | — | (21,875) | |||||||||||
| Total operating expenses | 631,802 | 425,977 | 1,252,371 | 862,368 | |||||||||||
| Operating income | 22,905 | 56,545 | 37,131 | 104,223 | |||||||||||
| Other (expense) income: | |||||||||||||||
| Interest expense | (26,579) | (23,178) | (52,535) | (47,048) | |||||||||||
| Interest income | 191 | 261 | 415 | 848 | |||||||||||
| Loss on debt extinguishment, modifications and termination of derivative instruments | (925) | — | (4,424) | (781) | |||||||||||
| Foreign currency exchange (loss) gain, net | (140) | 315 | 33 | (177) | |||||||||||
| Other expense, net | 184 | 44 | 689 | 915 | |||||||||||
| Loss from investments in partially owned entities | (61) | (129) | (761) | (156) | |||||||||||
| (Loss) income before income tax (expense) benefit | (4,425) | 33,858 | (19,452) | 57,824 | |||||||||||
| Income tax (expense) benefit | |||||||||||||||
| Current | (2,406) | (2,163) | (3,617) | (4,720) | |||||||||||
| Deferred | (6,568) | 967 | (4,566) | 3,069 | |||||||||||
| Total income tax expense | (8,974) | (1,196) | (8,183) | (1,651) | |||||||||||
| Net (loss) income | $ | (13,399) | $ | 32,662 | $ | (27,635) | $ | 56,173 | |||||||
| Net (loss) income attributable to non controlling interests | (29) | — | 149 | — | |||||||||||
| Net (loss) income attributable to Americold Realty Trust | $ | (13,370) | $ | 32,662 | $ | (27,784) | $ | 56,173 | |||||||
| Weighted average common shares outstanding – basic | 253,213 | 201,787 | 253,076 | 201,294 | |||||||||||
| Weighted average common shares outstanding – diluted | 253,213 | 205,298 | 253,076 | 204,587 | |||||||||||
| Net (loss) income per common share of beneficial interest - basic | $ | (0.05) | $ | 0.16 | $ | (0.11) | $ | 0.28 | |||||||
| Net (loss) income per common share of beneficial interest - diluted | $ | (0.05) | $ | 0.16 | $ | (0.11) | $ | 0.27 | |||||||
| Financial Supplement | Second Quarter 2021 | ||||||||||||||
| --- | --- | ||||||||||||||
| Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and AFFO | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| (In thousands, except per share amounts - unaudited) | |||||||||||||||
| Three Months Ended | YTD 2021 | ||||||||||||||
| Q2 21 | Q1 21 | Q4 20 | Q3 20 | Q2 20 | |||||||||||
| Net (loss) income | $ | (13,399) | $ | (14,236) | $ | (43,992) | $ | 12,374 | $ | 32,662 | $ | (27,635) | |||
| Adjustments: | |||||||||||||||
| Real estate related depreciation | 44,871 | 52,280 | 39,128 | 36,289 | 35,558 | 97,151 | |||||||||
| Net (gain) loss on sale of real estate, net of withholding taxes (b) | — | — | (676) | 427 | (19,414) | — | |||||||||
| Net (gain) loss on asset disposals | (13) | (39) | 888 | 1,160 | (3) | (52) | |||||||||
| Impairment charges on real estate assets | 1,528 | — | 2,449 | — | 3,181 | 1,528 | |||||||||
| Our share of reconciling items related to partially owned entities | 861 | 266 | 182 | 111 | 122 | 1,127 | |||||||||
| NAREIT Funds from operations | $ | 33,848 | $ | 38,271 | $ | (2,021) | $ | 50,361 | $ | 52,106 | 72,119 | ||||
| Adjustments: | |||||||||||||||
| Net (gain) loss on sale of non-real estate assets | (304) | (119) | 1,112 | (100) | (252) | (423) | |||||||||
| Non-real estate impairment | — | — | (495) | 2,615 | 486 | — | |||||||||
| Acquisition, litigation and other | 3,922 | 20,751 | 26,535 | 5,282 | 2,801 | 24,673 | |||||||||
| Share-based compensation expense, IPO grants | — | 163 | 200 | 196 | 203 | 163 | |||||||||
| Bridge loan commitment fees | — | — | 2,438 | — | — | — | |||||||||
| Loss on debt extinguishment, modifications and termination of derivative instruments | 925 | 3,499 | 9,194 | — | — | 4,424 | |||||||||
| Foreign currency exchange loss (gain) | 140 | (173) | 44,905 | 196 | (315) | (33) | |||||||||
| Our share of reconciling items related to partially owned entities | 89 | 154 | 39 | 76 | 79 | 243 | |||||||||
| Core FFO applicable to common shareholders | $ | 38,620 | $ | 62,546 | $ | 81,907 | $ | 58,626 | $ | 55,108 | 101,166 | ||||
| Adjustments: | |||||||||||||||
| Amortization of deferred financing costs and pension withdrawal liability | 1,085 | 1,148 | 1,202 | 1,203 | 1,196 | 2,233 | |||||||||
| Amortization of below/above market leases | 362 | 39 | 37 | 39 | — | 401 | |||||||||
| Straight-line net rent | (170) | (155) | (324) | (87) | (108) | (325) | |||||||||
| Deferred income tax expense (benefit) | 6,568 | (2,002) | (9,379) | (1,284) | (967) | 4,566 | |||||||||
| Share-based compensation expense, excluding IPO grants | 5,467 | 4,867 | 4,371 | 4,373 | 4,261 | 10,334 | |||||||||
| Non-real estate depreciation and amortization | 39,588 | 24,931 | 19,191 | 17,280 | 16,841 | 64,519 | |||||||||
| Maintenance capital expenditures (a) | (20,488) | (15,731) | (20,291) | (17,534) | (15,306) | (36,219) | |||||||||
| Our share of reconciling items related to partially owned entities | 711 | 278 | 168 | 125 | 78 | 989 | |||||||||
| Adjusted FFO applicable to common shareholders | $ | 71,743 | $ | 75,921 | $ | 76,882 | $ | 62,741 | $ | 61,103 | 147,664 | ||||
| Financial Supplement | Second Quarter 2021 | ||||||||||||||
| --- | --- | ||||||||||||||
| Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and AFFO (continued) | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| (In thousands except per share amounts - unaudited) | |||||||||||||||
| Three Months Ended | YTD 2021 | ||||||||||||||
| Q2 21 | Q1 21 | Q4 20 | Q3 20 | Q2 20 | |||||||||||
| NAREIT Funds from operations | $ | 33,848 | $ | 38,271 | $ | (2,021) | $ | 50,361 | $ | 52,106 | $ | 72,119 | |||
| Core FFO applicable to common shareholders | $ | 38,620 | $ | 62,546 | $ | 81,907 | $ | 58,626 | $ | 55,108 | $ | 101,166 | |||
| Adjusted FFO applicable to common shareholders | $ | 71,743 | $ | 75,921 | $ | 76,882 | $ | 62,741 | $ | 61,103 | $ | 147,664 | |||
| Reconciliation of weighted average shares: | |||||||||||||||
| Weighted average basic shares for net income calculation | 253,213 | 252,938 | 205,984 | 204,289 | 201,787 | 253,076 | |||||||||
| Dilutive stock options, unvested restricted stock units, equity forward contracts | 1,624 | 3,226 | 3,944 | 4,211 | 3,511 | 1,559 | |||||||||
| Weighted average dilutive shares | 254,837 | 256,164 | 209,928 | 208,500 | 205,298 | 254,635 | |||||||||
| NAREIT FFO - basic per share | $ | 0.13 | $ | 0.15 | $ | (0.01) | $ | 0.25 | $ | 0.26 | $ | 0.28 | |||
| NAREIT FFO - diluted per share | $ | 0.13 | $ | 0.15 | $ | (0.01) | $ | 0.24 | $ | 0.25 | $ | 0.28 | |||
| Core FFO - basic per share | $ | 0.15 | $ | 0.25 | $ | 0.40 | $ | 0.29 | $ | 0.27 | $ | 0.40 | |||
| Core FFO - diluted per share | $ | 0.15 | $ | 0.24 | $ | 0.39 | $ | 0.28 | $ | 0.27 | $ | 0.40 | |||
| Adjusted FFO - basic per share | $ | 0.28 | $ | 0.30 | $ | 0.37 | $ | 0.31 | $ | 0.30 | $ | 0.58 | |||
| Adjusted FFO - diluted per share | $ | 0.28 | $ | 0.30 | $ | 0.37 | $ | 0.30 | $ | 0.30 | $ | 0.58 | (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. | |
| --- | --- | ||||||||||||||
| (b) | (Gain) loss on sale of real estate, net of withholding tax include withholding tax on the sale of Sydney land which is included in income tax expense on the Condensed Consolidated Statement of Operations. | ||||||||||||||
| Financial Supplement | Second Quarter 2021 | ||||||||||||||
| --- | --- | ||||||||||||||
| Reconciliation of Net (Loss) Income to EBITDA, NAREIT EBITDAre, and Core EBITDA | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| (In thousands - unaudited) | |||||||||||||||
| Three Months Ended | Trailing Twelve Months Ended | ||||||||||||||
| Q2 21 | Q1 21 | Q4 20 | Q3 20 | Q2 20 | Q2 2021 | ||||||||||
| Net (loss) income | $ | (13,399) | $ | (14,236) | $ | (43,992) | $ | 12,374 | $ | 32,662 | $ | (59,253) | |||
| Adjustments: | |||||||||||||||
| Depreciation and amortization | 84,459 | 77,211 | 58,319 | 53,569 | 52,399 | 273,558 | |||||||||
| Interest expense | 26,579 | 25,956 | 21,367 | 23,066 | 23,178 | 96,968 | |||||||||
| Income tax expense (benefit) | 8,974 | (791) | (9,397) | 819 | 1,196 | (395) | |||||||||
| EBITDA | $ | 106,613 | $ | 88,140 | $ | 26,297 | $ | 89,828 | $ | 109,435 | $ | 310,878 | |||
| Adjustments: | |||||||||||||||
| Net (gain) loss on sale of real estate, net of withholding taxes | — | — | (676) | 427 | (19,414) | (249) | |||||||||
| Adjustment to reflect share of EBITDAre of partially owned entities | 1,838 | 649 | 432 | 293 | 237 | 3,212 | |||||||||
| NAREIT EBITDAre | $ | 108,451 | $ | 88,789 | $ | 26,053 | $ | 90,548 | $ | 90,258 | $ | 313,841 | |||
| Adjustments: | |||||||||||||||
| Acquisition, litigation and other | 3,922 | 20,751 | 26,535 | 5,282 | 2,801 | 56,490 | |||||||||
| Bridge loan commitment fees | — | — | 2,438 | — | — | 2,438 | |||||||||
| Loss (income) from investments in partially owned entities | 61 | 700 | (4) | 98 | 129 | 855 | |||||||||
| Asset impairment | 1,528 | — | 1,954 | 2,615 | 3,667 | 6,097 | |||||||||
| Foreign currency exchange loss (gain) | 140 | (173) | 44,905 | 196 | (315) | 45,068 | |||||||||
| Share-based compensation expense | 5,467 | 5,030 | 4,571 | 4,569 | 4,464 | 19,637 | |||||||||
| Loss on debt extinguishment, modifications and termination of derivative instruments | 925 | 3,499 | 9,194 | — | — | 13,618 | |||||||||
| (Gain) loss on real estate and other asset disposals | (317) | (158) | 1,999 | 1,060 | (255) | 2,584 | |||||||||
| Reduction in EBITDAre from partially owned entities | (1,838) | (649) | (432) | (293) | (237) | (3,212) | |||||||||
| Core EBITDA | $ | 118,339 | $ | 117,789 | $ | 117,213 | $ | 104,075 | $ | 100,512 | $ | 457,416 | |||
| Financial Supplement | Second Quarter 2021 | ||||||||||||||
| --- | --- |
Acquisition, Litigation and Other
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.
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| Acquisition, litigation and other | 2021 | 2020 | 2021 | 2020 | ||||
| Acquisition and integration related costs | $ | 3,075 | $ | 2,651 | $ | 16,550 | $ | 3,417 |
| Litigation | 117 | — | 117 | — | ||||
| Severance costs | 255 | 150 | 2,701 | 1,072 | ||||
| Terminated site operations costs | 13 | — | 72 | — | ||||
| Cyber incident related costs | (289) | — | 4,482 | — | ||||
| Other | 751 | — | 751 | — | ||||
| Total acquisition, litigation and other | $ | 3,922 | $ | 2,801 | $ | 24,673 | $ | 4,489 |
| Financial Supplement | Second Quarter 2021 | |||||||
| --- | --- | |||||||
| Debt Detail and Maturities | ||||||||
| --- | --- | --- | --- | --- | --- | |||
| (In thousands - unaudited) | ||||||||
| As of June 30, 2021 | ||||||||
| Indebtedness: | Carrying Value | Contractual Interest Rate(3) | Effective Interest Rate(4) | Stated<br><br>Maturity Date(5) | ||||
| Unsecured Debt | ||||||||
| 2020 Senior Unsecured Revolving Credit Facility-1(1)(2)(7)(10) | $ | 44,363 | C+0.85% | 1.34% | 3/2025 | |||
| 2020 Senior Unsecured Revolving Credit Facility-2(1)(2)(9)(11) | 94,742 | G+0.85% | 1.07% | 3/2025 | ||||
| 2020 Senior Unsecured Term Loan A Facility Tranche A-1(2)(6) | 125,000 | L+0.95% | 1.42% | 3/2025 | ||||
| 2020 Senior Unsecured Term Loan A Facility Tranche A-2(2)(7) | 201,650 | C+0.95% | 1.51% | 3/2025 | ||||
| Series A notes | 200,000 | 4.68% | 4.77% | 1/2026 | ||||
| Series B notes | 400,000 | 4.86% | 4.92% | 1/2029 | ||||
| Series C notes | 350,000 | 4.10% | 4.15% | 1/2030 | ||||
| Series D notes(8) | 474,281 | 1.62% | 1.67% | 1/2031 | ||||
| Series E notes(8) | 415,030 | 1.65% | 1.70% | 1/2033 | ||||
| Total Unsecured Debt | 2,305,066 | 2.70% | 2.84% | 7.6 years | ||||
| 2013 Mortgage Loans (15 cross-collateralized warehouses) | ||||||||
| Senior Note | 171,197 | 3.81% | 4.14% | 5/2023 | ||||
| Mezzanine A | 70,000 | 7.38% | 7.55% | 5/2023 | ||||
| Mezzanine B | 32,000 | 11.50% | 11.75% | 5/2023 | ||||
| Total 2013 Mortgage Loans | 273,197 | 5.63% | 5.91% | 1.8 years | ||||
| Total Real Estate Debt | $ | 2,578,263 | 3.01% | 3.16% | 7.0 years | |||
| Sale-leaseback financing obligations | 184,515 | 10.98% | ||||||
| Financing lease obligations | 111,703 | 3.91% | ||||||
| Total Debt Outstanding | $ | 2,874,481 | 3.55% | |||||
| Less: unamortized deferred financing costs | (11,994) | |||||||
| Total Book Value of Debt | $ | 2,862,487 | ||||||
| Rate Type | % of Total | |||||||
| Fixed | $ | 2,408,726 | 84% | |||||
| Variable | 465,755 | 16% | ||||||
| Total Debt Outstanding | $ | 2,874,481 | 100% | |||||
| Debt Type | % of Total | |||||||
| Unsecured | $ | 2,305,066 | 80% | |||||
| Secured | 569,415 | 20% | ||||||
| Total Debt Outstanding | $ | 2,874,481 | 100% |
(1)Revolver maturity assumes two six-month extension options. The borrowing capacity as of June 30, 2021 is $1 billion less $21.9 million of outstanding letters of credit. The effective interest rate shown represents deferred financing fees allocated over the $1 billion committed.
(2)L = one-month LIBOR; C = one-month CDOR; G = one-month GBP LIBOR.
(3)Interest rates as of June 30, 2021. At June 30, 2021, the one-month LIBOR rate on our Senior Unsecured Term Loan Tranche A-1 was 0.10%. At June 30, 2021, the one-month CDOR rate on our Senior Unsecured Term Loan Tranche A-2 was 0.41%. Subtotals of stated contractual interest rates represent weighted average interest rates. Rates for sale-leasebacks and financing lease obligations represent weighted average interest rates.
(4)The effective interest rates presented include the amortization of loan costs. Subtotals of stated effective interest rates represent weighted average interest rates.
(5)Subtotals of stated maturity dates represent remaining weighted average life of the debt.
(6)On January 29, 2021, the Company repaid $200 million USD of the Term Loan A Facility Tranche A-1 using cash on the balance sheet and increased the borrowing capacity of Revolver from $800 million to $1 billion.
(7)Assumes CAD/USD exchange rate of 0.807.
(8)Assumes an EUR/USD exchange rate of 1.186.
(9)Assumes GBP/USD exchange rate of 1.383.
(10)The Senior Unsecured Revolving Credit Facility Draw 1 balance as of June 30, 2021 is CAD $55.0 million. The carrying value in the table above is the US dollar equivalent as of June 30, 2021.
(11)The Senior Unsecured Revolving Credit Facility Draw 2 balance as of June 30, 2021 is GBP $68.5 million. The carrying value in the table above is the US dollar equivalent as of June 30, 2021.
| Financial Supplement | Second Quarter 2021 |
|---|
Operations Overview
| Revenue and Contribution by Segment | ||||||||
|---|---|---|---|---|---|---|---|---|
| (in thousands - unaudited) | ||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||
| 2021 | 2020 | 2021 | 2020 | |||||
| Segment revenues: | ||||||||
| Warehouse | $ | 503,734 | $ | 372,411 | $ | 989,185 | $ | 753,479 |
| Third-party managed | 72,173 | 72,954 | 145,245 | 137,875 | ||||
| Transportation | 78,800 | 34,861 | 155,072 | 70,778 | ||||
| Other | — | 2,296 | — | 4,459 | ||||
| Total revenues | 654,707 | 482,522 | 1,289,502 | 966,591 | ||||
| Segment contribution: | ||||||||
| Warehouse | 144,379 | 120,132 | 290,560 | 246,905 | ||||
| Third-party managed | 1,693 | 3,299 | 6,075 | 7,068 | ||||
| Transportation | 9,250 | 4,772 | 15,953 | 9,577 | ||||
| Other | (33) | 135 | (59) | 190 | ||||
| Total segment contribution | 155,289 | 128,338 | 312,529 | 263,740 | ||||
| Reconciling items: | ||||||||
| Depreciation and amortization | (84,459) | (52,399) | (161,670) | (104,003) | ||||
| Selling, general and administrative | (42,475) | (32,340) | (87,527) | (69,233) | ||||
| Acquisition, litigation and other | (3,922) | (2,801) | (24,673) | (4,489) | ||||
| Impairment of long-lived assets | (1,528) | (3,667) | (1,528) | (3,667) | ||||
| Gain from sale of real estate, net | — | 19,414 | — | 21,875 | ||||
| Interest expense | (26,579) | (23,178) | (52,535) | (47,048) | ||||
| Interest income | 191 | 261 | 415 | 848 | ||||
| Loss on debt extinguishment, modifications and termination of derivative instruments | (925) | — | (4,424) | (781) | ||||
| Foreign currency exchange (loss) gain, net | (140) | 315 | 33 | (177) | ||||
| Other expense, net | 184 | 44 | 689 | 915 | ||||
| Loss from investments in partially owned entities | (61) | (129) | (761) | (156) | ||||
| (Loss) income before income tax (expense) benefit | $ | (4,425) | $ | 33,858 | $ | (19,452) | $ | 57,824 |
We view and manage our business through three primary business segments—warehouse, third-party managed and transportation. 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, blast freezing, case-picking, kitting and repackaging and other recurring handling services.
Under our third-party managed segment, we manage warehouses on behalf of third parties and provide warehouse management services to several leading food retailers and manufacturers in customer-owned facilities, including some of our largest and longest-standing customers. 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 to many of our key customers underscores our ability to offer a complete and integrated suite of services across the cold chain.
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 services, we charge a fixed fee.
In addition to our primary business segments, we owned a limestone quarry in Carthage, Missouri. We do not view the operation of the quarry as an integral part of our business, and as a result this business segment was subsequently sold on July 1, 2020.
| Financial Supplement | Second Quarter 2021 |
|---|
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, 2021, we had entered into contracts featuring fixed storage commitments or leases with 165 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. We refer to economic occupancy as the aggregate number of physically occupied pallets and any additional pallets otherwise contractually committed for a given period. 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 2021 |
|---|
Global Warehouse Portfolio
Unaudited
| 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 | 37 | 281.9 | 20 | % | 928 | 82 | % | 73 | % | $ | 198.4 | $ | 53.2 | 820 |
| Southeast | 60 | 336.6 | 24 | % | 1,064 | 73 | % | 67 | % | 213.9 | 58.5 | 783 | ||
| Central | 49 | 303.0 | 22 | % | 1,297 | 77 | % | 69 | % | 215.2 | 74.0 | 870 | ||
| West | 38 | 234.5 | 17 | % | 986 | 65 | % | 57 | % | 130.1 | 41.5 | 551 | ||
| Canada | 8 | 35.9 | 3 | % | 111 | 83 | % | 83 | % | 19.0 | 6.9 | 67 | ||
| North America Total / Average | 192 | 1,191.9 | 85 | % | 4,386 | 74 | % | 67 | % | $ | 776.6 | $ | 234.1 | 2,516 |
| Netherlands | 7 | 36.7 | 3 | % | 123 | 79 | % | 79 | % | 35.3 | 7.8 | 459 | ||
| United Kingdom & Northern Ireland | 6 | 40.1 | 3 | % | 234 | 89 | % | 89 | % | 18.1 | 6.3 | 130 | ||
| Spain | 4 | 15.2 | 1 | % | 53 | 60 | % | 60 | % | 8.9 | 1.8 | 294 | ||
| Portugal | 4 | 11.5 | 1 | % | 53 | 86 | % | 86 | % | 7.8 | 2.2 | 206 | ||
| Ireland | 3 | 9.5 | 1 | % | 35 | 101 | % | 101 | % | 6.9 | 2.9 | 129 | ||
| Austria | 1 | 4.2 | — | % | 42 | 89 | % | 89 | % | 10.8 | 2.9 | 148 | ||
| Poland | 2 | 3.5 | — | % | 15 | 78 | % | 78 | % | 2.3 | 0.2 | 83 | ||
| Europe Total | 27 | 120.7 | 9 | % | 555 | 84 | % | 84 | % | $ | 90.1 | $ | 24.1 | 1,352 |
| Australia | 8 | 50.5 | 4 | % | 156 | 92 | % | 77 | % | 98.2 | 24.2 | 90 | ||
| New Zealand | 7 | 20.4 | 1 | % | 60 | 92 | % | 84 | % | 15.8 | 5.9 | 50 | ||
| Asia-Pacific Total | 15 | 70.9 | 5 | % | 216 | 92 | % | 79 | % | $ | 114.0 | $ | 30.1 | 136 |
| Argentina | 2 | 9.7 | 1 | % | 23 | 60 | % | 60 | % | 3.4 | 0.6 | 40 | ||
| Chile | 1 | 7.6 | 1 | % | 23 | 104 | % | 104 | % | 5.1 | 2.0 | 25 | ||
| South America Total | 3 | 17.3 | 1 | % | 46 | 82 | % | 82 | % | $ | 8.5 | $ | 2.6 | 65 |
| Warehouse Segment Total / Average | 237 | 1,400.8 | 100 | % | 5,203 | 76 | % | 70 | % | $ | 989.2 | $ | 290.9 | 4,031 |
| Third-Party Managed Portfolio | ||||||||||||||
| United States | 7 | 38.5 | 88 | % | — | — | — | $ | 133.4 | $ | 4.0 | 4 | ||
| Canada | 1 | 5.3 | 12 | % | — | — | — | 1.3 | 0.2 | 1 | ||||
| North America Total / Average | 8 | 43.8 | 100 | % | — | — | — | $ | 134.7 | $ | 4.2 | 5 | ||
| Asia-Pacific | 1 | — | — | % | — | — | — | 10.5 | 1.9 | 1 | ||||
| Third-Party Managed Total / Average | 9 | 43.8 | 100 | % | — | — | — | $ | 145.2 | $ | 6.1 | 6 | ||
| Portfolio Total / Average | 246 | 1,444.6 | 100 | % | 5,203 | 76 | % | 70 | % | $ | 1,134.4 | $ | 297.0 | 4,031 |
(1)Refer to the preceding section Global Warehouse Economic and Physical Occupancy Trend for our definitions of economic occupancy and physical occupancy.
(2)Three months ended June 30, 2021.
(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, corporate-level acquisition, litigation and other expenses and gain or loss on sale of real estate). 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, 2021, we owned 146 of our U.S. warehouses and 40 of our international warehouses, and we leased 38 of our U.S. warehouses and thirteen of our international warehouses. As of June 30, 2021, fifteen of our owned facilities were located on land that we lease pursuant to long-term ground leases.
| Financial Supplement | Second Quarter 2021 |
|---|
_______________________________________________
(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, 2021 LTM Revenue and NOI pro forma 2020 and 2021 acquisitions.
June 30, 2021 warehouse segment cubic feet includes all 2020 and 2021 acquisitions.
Totals may not foot due to rounding.
| Financial Supplement | Second Quarter 2021 |
|---|
Fixed Commitment and Lease Maturity Schedules
Unaudited
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, 2021. 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>Twelve Months<br><br>Ended<br><br>June 30, 2021 | Total Warehouse Segment Revenue Generated by Contracts with Fixed Commitments & Leases for the Twelve Months Ended June 30, 2021(1) (in thousands) | Annualized<br>Committed Rent<br>& Storage<br>Revenue at<br>Expiration(2)<br>(in thousands) | ||||
|---|---|---|---|---|---|---|---|---|---|
| Month-to-Month | 46 | $ | 38,072 | 4.5 | % | $ | 127,362 | $ | 38,072 |
| 2021 | 49 | 49,857 | 5.8 | % | 201,105 | 50,058 | |||
| 2022 | 65 | 82,864 | 9.7 | % | 172,495 | 83,950 | |||
| 2023 | 40 | 65,350 | 7.6 | % | 138,891 | 68,264 | |||
| 2024 | 25 | 21,808 | 2.6 | % | 57,367 | 23,107 | |||
| 2025 | 11 | 14,546 | 1.7 | % | 26,633 | 16,371 | |||
| 2026 | 11 | 33,533 | 3.9 | % | 41,085 | 36,064 | |||
| 2027 | 4 | 4,956 | 0.6 | % | 7,973 | 5,248 | |||
| 2028 | 2 | 1,129 | 0.1 | % | 4,344 | 1,133 | |||
| 2029 and thereafter | 8 | 20,870 | 2.4 | % | 49,189 | 23,439 | |||
| Total | 261 | $ | 332,985 | 38.9 | % | $ | 826,444 | $ | 345,706 |
____________________
Note: June 30, 2021 LTM total revenue and rent and storage revenue pro forma 2020 and 2021 acquisitions.
(1)Represents monthly fixed storage commitments and lease rental payments under the relevant expiring defined contract and lease as of June 30, 2021, plus the weighted average monthly warehouse services revenues attributable to these contracts and leases for the last twelve months ended June 30, 2021, 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, 2021 based upon the monthly revenues attributable thereto in the last month prior to expiration, multiplied by 12.
| Financial Supplement | Second Quarter 2021 |
|---|
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, 2021. These leases had a weighted average remaining term of 34 months as of June 30, 2021.
| Lease Expiration Year | No. of<br>Leases<br>Expiring | Annualized<br><br>Rent(1)<br><br>(in thousands) | % of Total<br><br>Warehouse Rent &<br><br>Storage Segment<br><br>Revenue for the<br><br>Twelve Months Ended<br><br>June 30, 2021 | Leased<br>Square<br>Footage<br>(in thousands) | % Leased<br>Square<br>Footage | Annualized<br><br>Rent at<br><br>Expiration(2)<br><br>(in thousands) | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Month-to-Month | 7 | $ | 1,695 | 0.2 | % | 114 | 4.1 | % | $ | 1,695 |
| 2021 | 19 | 2,439 | 0.3 | % | 324 | 11.5 | % | 2,450 | ||
| 2022 | 15 | 6,345 | 0.7 | % | 348 | 12.4 | % | 6,534 | ||
| 2023 | 6 | 5,607 | 0.7 | % | 640 | 22.8 | % | 5,680 | ||
| 2024 | 8 | 3,431 | 0.4 | % | 702 | 25.0 | % | 3,726 | ||
| 2025 | 6 | 3,416 | 0.4 | % | 266 | 9.5 | % | 3,960 | ||
| 2026 and thereafter | 8 | 5,082 | 0.6 | % | 417 | 14.8 | % | 5,449 | ||
| Total | 69 | $ | 28,015 | 3.3 | % | 2,811 | 100 | % | $ | 29,494 |
____________________
Note: June 30, 2021 LTM rent and storage revenue pro forma 2020 and 2021 acquisitions.
(1)Represents monthly rental payments under the relevant leases as of June 30, 2021, 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 2021 |
|---|
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
The following table sets forth our maintenance capital expenditures for the three and six months ended June 30, 2021 and 2020.
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||||||||
| (In thousands, except per cubic foot amounts) | ||||||||||||
| Real estate | $ | 17,974 | $ | 14,140 | $ | 30,902 | $ | 23,530 | ||||
| Personal property | 1,428 | 762 | 3,210 | 3,061 | ||||||||
| Information technology | 1,086 | 382 | 2,107 | 1,132 | ||||||||
| Maintenance capital expenditures | $ | 20,488 | $ | 15,284 | $ | 36,219 | $ | 27,723 | ||||
| Maintenance capital expenditures per cubic foot | $ | 0.014 | $ | 0.014 | $ | 0.025 | $ | 0.025 |
Repair and Maintenance Expenses
The following table sets forth our repair and maintenance expenses for the three and six months ended June 30, 2021 and 2020.
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||||||||
| (In thousands, except per cubic foot amounts) | ||||||||||||
| Real estate | $ | 5,949 | $ | 7,148 | $ | 14,325 | $ | 13,945 | ||||
| Personal property | 13,622 | 7,214 | 25,076 | 15,398 | ||||||||
| Repair and maintenance expenses | $ | 19,571 | $ | 14,362 | $ | 39,401 | $ | 29,343 | ||||
| Repair and maintenance expenses per cubic foot | $ | 0.014 | $ | 0.013 | $ | 0.027 | $ | 0.027 |
External Growth, Expansion and Development Capital Expenditures
The following table sets forth our external growth, expansion and development capital expenditures for the three and six months ended June 30, 2021 and 2020.
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||||||||
| (In thousands) | ||||||||||||
| Acquisitions, net of cash acquired and adjustments | $ | 173,373 | $ | 85 | $ | 215,329 | $ | 315,668 | ||||
| Expansion and development initiatives(1) | 83,844 | 85,193 | 167,112 | 114,779 | ||||||||
| Information technology | 2,045 | 2,029 | 3,573 | 2,980 | ||||||||
| Growth and expansion capital expenditures | $ | 259,262 | $ | 87,307 | $ | 386,014 | $ | 433,427 |
(1) We capitalized interest of $3.5 million and $0.4 million for the three months ended June 30, 2021 and 2020, respectively. During the six months ended June 30, 2021 and 2020, we capitalized interest of $5.7 million and $1.2 million, respectively. During the three months ended June 30, 2021 and 2020, we capitalized amounts relating to insurance, property taxes, and compensation and travel expense of employees direct and incremental to development of properties of approximately $0.8 million and $0.2 million, respectively, and during each of the six months ended June 30, 2021 and 2020, we capitalized $1.4 million and , $0.3 million respectively.
| Financial Supplement | Second Quarter 2021 |
|---|
Global Warehouse Segment Financial Performance
The following table presents the operating results of our warehouse segment for the three months ended June 30, 2021 and 2020.
| Three Months Ended June 30, | Change | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 actual | 2021 constant currency(1) | 2020 actual | Actual | Constant currency | |||||||||
| (Dollars in thousands - unaudited) | |||||||||||||
| Rent and storage | $ | 212,277 | $ | 207,878 | $ | 163,664 | 29.7 | % | 27.0 | % | |||
| Warehouse services | 291,457 | 282,712 | 208,747 | 39.6 | % | 35.4 | % | ||||||
| Total warehouse segment revenue | $ | 503,734 | $ | 490,590 | $ | 372,411 | 35.3 | % | 31.7 | % | |||
| Power | 32,180 | 31,574 | 22,069 | 45.8 | % | 43.1 | % | ||||||
| Other facilities costs (2) | 51,562 | 50,467 | 34,645 | 48.8 | % | 45.7 | % | ||||||
| Labor | 224,411 | 217,575 | 165,458 | 35.6 | % | 31.5 | % | ||||||
| Other services costs (3) | 51,202 | 50,283 | 30,107 | 70.1 | % | 67.0 | % | ||||||
| Total warehouse segment cost of operations | $ | 359,355 | $ | 349,899 | $ | 252,279 | 42.4 | % | 38.7 | % | |||
| Warehouse segment contribution (NOI) | $ | 144,379 | $ | 140,691 | $ | 120,132 | 20.2 | % | 17.1 | % | |||
| Warehouse rent and storage contribution (NOI) (4) | $ | 128,535 | $ | 125,837 | $ | 106,950 | 20.2 | % | 17.7 | % | |||
| Warehouse services contribution (NOI) (5) | $ | 15,844 | $ | 14,854 | $ | 13,182 | 20.2 | % | 12.7 | % | |||
| Total warehouse segment margin | 28.7 | % | 28.7 | % | 32.3 | % | -360 bps | -358 bps | |||||
| Rent and storage margin(6) | 60.6 | % | 60.5 | % | 65.3 | % | -480 bps | -481 bps | |||||
| Warehouse services margin(7) | 5.4 | % | 5.3 | % | 6.3 | % | -88 bps | -106 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 $10.1 million and $3.0 million for the second quarter 2021 and 2020, respectively.
(3)Includes non-real estate rent expense (equipment lease and rentals) of $2.9 million and $2.4 million for the second quarter of 2021 and 2020, 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 2021 |
|---|
The following table presents the operating results of our warehouse segment for the six months ended June 30, 2021 and 2020.
| Six Months Ended June 30, | Change | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 actual | 2021 constant currency(1) | 2020 actual | Actual | Constant currency | |||||||||
| (Dollars in thousands) | |||||||||||||
| Rent and storage | $ | 417,553 | $ | 409,564 | $ | 325,973 | 28.1 | % | 25.6 | % | |||
| Warehouse services | 571,632 | 554,605 | 427,506 | 33.7 | % | 29.7 | % | ||||||
| Total warehouse segment revenues | 989,185 | 964,169 | 753,479 | 31.3 | % | 28.0 | % | ||||||
| Power | 58,384 | 57,324 | 41,773 | 39.8 | % | 37.2 | % | ||||||
| Other facilities costs (2) | 102,093 | 100,166 | 66,747 | 53.0 | % | 50.1 | % | ||||||
| Labor | 438,959 | 425,813 | 335,596 | 30.8 | % | 26.9 | % | ||||||
| Other services costs (3) | 99,189 | 97,334 | 62,458 | 58.8 | % | 55.8 | % | ||||||
| Total warehouse segment cost of operations | $ | 698,625 | $ | 680,637 | $ | 506,574 | 37.9 | % | 34.4 | % | |||
| Warehouse segment contribution (NOI) | $ | 290,560 | $ | 283,532 | $ | 246,905 | 17.7 | % | 14.8 | % | |||
| Warehouse rent and storage contribution (NOI) (4) | $ | 257,076 | $ | 252,074 | $ | 217,453 | 18.2 | % | 15.9 | % | |||
| Warehouse services contribution (NOI) (5) | $ | 33,484 | $ | 31,458 | $ | 29,452 | 13.7 | % | 6.8 | % | |||
| Total warehouse segment margin | 29.4 | % | 29.4 | % | 32.8 | % | -340 bps | -336 bps | |||||
| Rent and storage margin(6) | 61.6 | % | 61.5 | % | 66.7 | % | -514 bps | -516 bps | |||||
| Warehouse services margin(7) | 5.9 | % | 5.7 | % | 6.9 | % | -103 bps | -122 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 $19.4 million and $5.8 million, on an actual basis, for the six months ended June 30, 2021 and 2020, respectively.
(3)Includes non-real estate rent expense (equipment lease and rentals) of $5.8 million and $5.3 million, on an actual basis, for the six months ended June 30, 2021 and 2020, 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 2021 |
|---|
Same-store Financial Performance
The following table presents revenues, cost of operations, contribution (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, 2021 and 2020.
| Three Months Ended June 30, | Change | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 actual | 2021 constant currency(1) | 2020 actual | Actual | Constant currency | ||||||||||||
| Number of same store warehouses | 162 | 162 | n/a | n/a | ||||||||||||
| Same store revenues: | (Dollars in thousands - unaudited) | |||||||||||||||
| Rent and storage | $ | 150,984 | $ | 149,320 | $ | 152,893 | (1.2) | % | (2.3) | % | ||||||
| Warehouse services | 209,258 | 203,647 | 199,832 | 4.7 | % | 1.9 | % | |||||||||
| Total same store revenues | $ | 360,242 | $ | 352,967 | $ | 352,725 | 2.1 | % | 0.1 | % | ||||||
| Same store cost of operations: | ||||||||||||||||
| Power | 21,754 | 21,623 | 20,816 | 4.5 | % | 3.9 | % | |||||||||
| Other facilities costs | 33,043 | 32,615 | 32,132 | 2.8 | % | 1.5 | % | |||||||||
| Labor | 161,052 | 156,443 | 154,934 | 3.9 | % | 1.0 | % | |||||||||
| Other services costs | 28,109 | 27,941 | 27,622 | 1.8 | % | 1.2 | % | |||||||||
| Total same store cost of operations | $ | 243,958 | $ | 238,622 | $ | 235,504 | 3.6 | % | 1.3 | % | ||||||
| Same store contribution (NOI) | $ | 116,284 | $ | 114,345 | $ | 117,221 | (0.8) | % | (2.5) | % | ||||||
| Same store rent and storage contribution (NOI)(2) | $ | 96,187 | $ | 95,082 | $ | 99,945 | (3.8) | % | (4.9) | % | ||||||
| Same store services contribution (NOI)(3) | $ | 20,097 | $ | 19,263 | $ | 17,276 | 16.3 | % | 11.5 | % | ||||||
| Total same store margin | 32.3 | % | 32.4 | % | 33.2 | % | -95 bps | -84 bps | ||||||||
| Same store rent and storage margin(4) | 63.7 | % | 63.7 | % | 65.4 | % | -166 bps | -169 bps | ||||||||
| Same store services margin(5) | 9.6 | % | 9.5 | % | 8.6 | % | 96 bps | 81 bps | ||||||||
| Number of non-same store warehouses(6) | 75 | 10 | n/a | n/a | ||||||||||||
| Non-same store revenues: | ||||||||||||||||
| Rent and storage | $ | 61,293 | $ | 58,558 | $ | 10,771 | 469.1 | % | 443.7 | % | ||||||
| Warehouse services | 82,199 | 79,065 | 8,915 | 822.0 | % | 786.9 | % | |||||||||
| Total non-same store revenues | $ | 143,492 | $ | 137,623 | $ | 19,686 | 628.9 | % | 599.1 | % | ||||||
| Non-same store cost of operations: | ||||||||||||||||
| Power | 10,426 | 9,951 | 1,253 | 732.1 | % | 694.2 | % | |||||||||
| Other facilities costs | 18,519 | 17,852 | 2,513 | 636.9 | % | 610.4 | % | |||||||||
| Labor | 63,359 | 61,132 | 10,524 | 502.0 | % | 480.9 | % | |||||||||
| Other services costs | 23,093 | 22,342 | 2,485 | 829.3 | % | 799.1 | % | |||||||||
| Total non-same store cost of operations | $ | 115,397 | $ | 111,277 | $ | 16,775 | 587.9 | % | 563.4 | % | ||||||
| Non-same store contribution (NOI) | $ | 28,095 | $ | 26,346 | $ | 2,911 | 865.1 | % | 805.0 | % | ||||||
| Non-same store rent and storage contribution (NOI)(2) | $ | 32,348 | $ | 30,755 | $ | 7,005 | 361.8 | % | 339.0 | % | ||||||
| Non-same store services contribution (NOI)(3) | $ | (4,253) | $ | (4,409) | $ | (4,094) | (3.9) | % | (7.7) | % | ||||||
| Total warehouse segment revenues | $ | 503,734 | $ | 490,590 | $ | 372,411 | 35.3 | % | 31.7 | % | ||||||
| Total warehouse cost of operations | $ | 359,355 | $ | 349,899 | $ | 252,279 | 42.4 | % | 38.7 | % | ||||||
| Total warehouse segment contribution | $ | 144,379 | $ | 140,691 | $ | 120,132 | 20.2 | % | 17.1 | % | (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) | Non-same store warehouse count of 75 includes one recently leased warehouse in Australia, one warehouse acquired through the Bowman Stores acquisition on May 28, 2021, two warehouses acquired through the KMT Brrr! acquisition on May 5, 2021, four warehouses acquired through the Liberty acquisition on March 1, 2021, 46 warehouses acquired through the Agro acquisition on December 30, 2020, eight warehouses acquired through the Hall’s acquisition on November 2, 2020, and three warehouses acquired through the Casper’s and AM-C warehouse acquisitions on August 31, 2020. The results of these acquisitions are reflected in the results above since date of ownership. | |||||||||||||||
| Financial Supplement | Second Quarter 2021 | |||||||||||||||
| --- | --- |
The following table presents revenues, cost of operations, contribution (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, 2021 and 2020.
| Six Months Ended June 30, | Change | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 actual | 2021 constant currency(1) | 2020 actual | Actual | Constant currency | ||||||||||||
| Number of same store warehouses | 162 | 162 | n/a | n/a | ||||||||||||
| Same store revenues: | (Dollars in thousands) | |||||||||||||||
| Rent and storage | $ | 300,150 | $ | 296,836 | $ | 305,698 | (1.8) | % | (2.9) | % | ||||||
| Warehouse services | 415,343 | 404,021 | 408,693 | 1.6 | % | (1.1) | % | |||||||||
| Total same store revenues | 715,493 | 700,857 | 714,391 | 0.2 | % | (1.9) | % | |||||||||
| Same store cost of operations: | ||||||||||||||||
| Power | 39,611 | 39,347 | 39,244 | 0.9 | % | 0.3 | % | |||||||||
| Other facilities costs | 65,982 | 65,208 | 61,959 | 6.5 | % | 5.2 | % | |||||||||
| Labor | 319,956 | 310,763 | 313,841 | 1.9 | % | (1.0) | % | |||||||||
| Other services costs | 55,217 | 54,843 | 57,198 | (3.5) | % | (4.1) | % | |||||||||
| Total same store cost of operations | $ | 480,766 | $ | 470,161 | $ | 472,242 | 1.8 | % | (0.4) | % | ||||||
| Same store contribution (NOI) | $ | 234,727 | $ | 230,696 | $ | 242,149 | (3.1) | % | (4.7) | % | ||||||
| Same store rent and storage contribution (NOI)(2) | $ | 194,557 | $ | 192,281 | $ | 204,495 | (4.9) | % | (6.0) | % | ||||||
| Same store services contribution (NOI)(3) | $ | 40,170 | $ | 38,415 | $ | 37,654 | 6.7 | % | 2.0 | % | ||||||
| Total same store margin | 32.8 | % | 32.9 | % | 33.9 | % | -109 bps | -98 bps | ||||||||
| Same store rent and storage margin(4) | 64.8 | % | 64.8 | % | 66.9 | % | -207 bps | -212 bps | ||||||||
| Same store services margin(5) | 9.7 | % | 9.5 | % | 9.2 | % | 46 bps | 29 bps | ||||||||
| Number of non-same store warehouses(6) | 75 | 10 | n/a | n/a | ||||||||||||
| Non-same store revenues: | ||||||||||||||||
| Rent and storage | $ | 117,403 | $ | 112,728 | $ | 20,275 | 479.1 | % | 456.0 | % | ||||||
| Warehouse services | 156,289 | 150,584 | 18,813 | 730.8 | % | 700.4 | % | |||||||||
| Total non-same store revenues | 273,692 | 263,312 | 39,088 | 600.2 | % | 573.6 | % | |||||||||
| Non-same store cost of operations: | ||||||||||||||||
| Power | 18,773 | 17,977 | 2,529 | 642.3 | % | 610.8 | % | |||||||||
| Other facilities costs | 36,111 | 34,958 | 4,788 | 654.2 | % | 630.1 | % | |||||||||
| Labor | 119,003 | 115,050 | 21,755 | 447.0 | % | 428.8 | % | |||||||||
| Other services costs | 43,972 | 42,491 | 5,260 | 736.0 | % | 707.8 | % | |||||||||
| Total non-same store cost of operations | $ | 217,859 | $ | 210,476 | $ | 34,332 | 534.6 | % | 513.1 | % | ||||||
| Non-same store contribution (NOI) | $ | 55,833 | $ | 52,836 | $ | 4,756 | 1,073.9 | % | 1,010.9 | % | ||||||
| Non-same store rent and storage contribution (NOI)(2) | $ | 62,519 | $ | 59,793 | $ | 12,958 | 382.5 | % | 361.4 | % | ||||||
| Non-same store services contribution (NOI)(3) | $ | (6,686) | $ | (6,957) | $ | (8,202) | (18.5) | % | (15.2) | % | ||||||
| Total warehouse segment revenues | $ | 989,185 | $ | 964,169 | $ | 753,479 | 31.3 | % | 28.0 | % | ||||||
| Total warehouse cost of operations | $ | 698,625 | $ | 680,637 | $ | 506,574 | 37.9 | % | 34.4 | % | ||||||
| Total warehouse segment contribution | $ | 290,560 | $ | 283,532 | $ | 246,905 | 17.7 | % | 14.8 | % | (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) | Non-same store warehouse count of 75 includes one recently leased warehouse in Australia, one warehouse acquired through the Bowman Stores acquisition on May 28, 2021, two warehouses acquired through the KMT Brrr! acquisition on May 5, 2021, four warehouses acquired through the Liberty acquisition on March 1, 2021, 46 warehouses acquired through the Agro acquisition on December 30, 2020, eight warehouses acquired through the Hall’s acquisition on November 2, 2020, and three warehouses acquired through the Casper’s and AM-C warehouse acquisitions on August 31, 2020. The results of these acquisitions are reflected in the results above since date of ownership. | |||||||||||||||
| Financial Supplement | Second Quarter 2021 | |||||||||||||||
| --- | --- |
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, 2021 and 2020.
| Three Months Ended June 30, | Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Units in thousands except per pallet and site data - unaudited | 2021 | 2020 | ||||||
| Number of same store warehouses | 162 | 162 | n/a | |||||
| Same store rent and storage: | ||||||||
| Economic occupancy(1) | ||||||||
| Average economic occupied pallets | 2,830 | 2,971 | (4.7) | % | ||||
| Economic occupancy percentage | 75.2 | % | 79.2 | % | -403 bps | |||
| Same store rent and storage revenues per economic occupied pallet | $ | 53.35 | $ | 51.45 | 3.7 | % | ||
| Constant currency same store rent and storage revenue per economic occupied pallet | $ | 52.76 | $ | 51.45 | 2.5 | % | ||
| Physical occupancy(2) | ||||||||
| Average physical occupied pallets | 2,515 | 2,705 | (7.0) | % | ||||
| Average physical pallet positions | 3,763 | 3,750 | 0.3 | % | ||||
| Physical occupancy percentage | 66.8 | % | 72.1 | % | -531 bps | |||
| Same store rent and storage revenues per physical occupied pallet | $ | 60.03 | $ | 56.52 | 6.2 | % | ||
| Constant currency same store rent and storage revenues per physical occupied pallet | $ | 59.37 | $ | 56.52 | 5.0 | % | ||
| Same store warehouse services: | ||||||||
| Throughput pallets | 7,351 | 7,333 | 0.3 | % | ||||
| Same store warehouse services revenues per throughput pallet | $ | 28.47 | $ | 27.25 | 4.5 | % | ||
| Constant currency same store warehouse services revenues per throughput pallet | $ | 27.70 | $ | 27.25 | 1.7 | % | ||
| Number of non-same store warehouses(3) | 75 | 10 | n/a | |||||
| Non-same store rent and storage: | ||||||||
| Economic occupancy(1) | ||||||||
| Average economic occupied pallets | 1,114 | 194 | 474.2 | % | ||||
| Economic occupancy percentage | 75.3 | % | 64.7 | % | 1062 bps | |||
| Physical occupancy(2) | ||||||||
| Average physical occupied pallets | 1,092 | 186 | 486.6 | % | ||||
| Average physical pallet positions | 1,479 | 299 | 394.6 | % | ||||
| Physical occupancy percentage | 73.8 | % | 62.2 | % | 1164 bps | |||
| Non-same store warehouse services: | ||||||||
| Throughput pallets | 2,568 | 384 | 569.3 | % |
(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)Non-same store warehouse count of 75 includes one recently leased warehouse in Australia, one warehouse acquired through the Bowman Stores acquisition on May 28, 2021, two warehouses acquired through the KMT Brrr! acquisition on May 5, 2021, four warehouses acquired through the Liberty acquisition on March 1, 2021, 46 warehouses acquired through the Agro acquisition on December 30, 2020, eight warehouses acquired through the Hall’s acquisition on November 2, 2020, and three warehouses acquired through the Casper’s and AM-C warehouse acquisitions on August 31, 2020. The results of these acquisitions are reflected in the results above since date of ownership.
| Financial Supplement | Second Quarter 2021 |
|---|
The following table provides certain operating metrics to explain the drivers of our same store performance for the six months ended June 30, 2021 and 2020.
| Six Months Ended June 30, | ||||||||
|---|---|---|---|---|---|---|---|---|
| Units in thousands except per pallet and site number data - unaudited | 2021 | 2020 | Change | |||||
| Number of same store sites | 162 | 162 | n/a | |||||
| Same store rent and storage: | ||||||||
| Economic occupancy(1) | ||||||||
| Average occupied economic pallets | 2,858 | 3,033 | (5.8) | % | ||||
| Economic occupancy percentage | 76.0 | % | 80.9 | % | -498 bps | |||
| Same store rent and storage revenues per economic occupied pallet | $ | 105.01 | $ | 100.80 | 4.2 | % | ||
| Constant currency same store rent and storage revenues per economic occupied pallet | $ | 103.85 | $ | 100.80 | 3.0 | % | ||
| Physical occupancy(2) | ||||||||
| Average physical occupied pallets | 2,538 | 2,799 | (9.3) | % | ||||
| Average physical pallet positions | 3,763 | 3,747 | 0.4 | % | ||||
| Physical occupancy percentage | 67.4 | % | 74.7 | % | -725 bps | |||
| Same store rent and storage revenues per physical occupied pallet | $ | 118.25 | $ | 109.20 | 8.3 | % | ||
| Constant currency same store rent and storage revenues per physical occupied pallet | $ | 116.94 | $ | 109.20 | 7.1 | % | ||
| Same store warehouse services: | ||||||||
| Throughput pallets (in thousands) | 14,476 | 15,080 | (4.0) | % | ||||
| Same store warehouse services revenues per throughput pallet | $ | 28.69 | $ | 27.10 | 5.9 | % | ||
| Constant currency same store warehouse services revenues per throughput pallet | $ | 27.91 | $ | 27.10 | 3.0 | % | ||
| Number of non-same store sites(3) | 75 | 10 | n/a | |||||
| Non-same store rent and storage: | ||||||||
| Economic occupancy(1) | ||||||||
| Average economic occupied pallets | 1,102 | 178 | 520.0 | % | ||||
| Economic occupancy percentage | 76.7 | % | 63.4 | % | 1332 bps | |||
| Physical occupancy(2) | ||||||||
| Average physical occupied pallets | 1,079 | 171 | 532.0 | % | ||||
| Average physical pallet positions | 1,437 | 280 | 412.4 | % | ||||
| Physical occupancy percentage | 75.1 | % | 60.9 | % | 1421 bps | |||
| Non-same store warehouse services: | ||||||||
| Throughput pallets (in thousands) | 4,973 | 835 | 495.6 | % |
(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)Non-same store warehouse count of 75 includes one recently leased warehouse in Australia, one warehouse acquired through the Bowman Stores acquisition on May 28, 2021, two warehouses acquired through the KMT Brrr! acquisition on May 5, 2021, four warehouses acquired through the Liberty acquisition on March 1, 2021, 46 warehouses acquired through the Agro acquisition on December 30, 2020, eight warehouses acquired through the Hall’s acquisition on November 2, 2020, and three warehouses acquired through the Casper’s and AM-C warehouse acquisitions on August 31, 2020. The results of these acquisitions are reflected in the results above since date of ownership.
| Financial Supplement | Second Quarter 2021 |
|---|
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 21 | Q1 21 | Q4 20 | Q3 20 | Q2 20 | Q1 20 | |
|---|---|---|---|---|---|---|
| Number of same store warehouses | 162 | 162 | 162 | 162 | 162 | 162 |
| Same store revenues: | ||||||
| Rent and storage | 150,984 | 149,166 | 156,134 | 154,926 | 152,893 | 152,805 |
| Warehouse services | 209,258 | 206,085 | 214,393 | 210,309 | 199,832 | 208,861 |
| Total same store revenues | 360,242 | 355,251 | 370,527 | 365,235 | 352,725 | 361,666 |
| Same store cost of operations: | ||||||
| Power | 21,754 | 17,857 | 19,639 | 25,497 | 20,816 | 18,428 |
| Other facilities costs | 33,043 | 32,939 | 30,029 | 32,859 | 32,132 | 29,827 |
| Labor | 161,052 | 158,905 | 156,864 | 155,114 | 154,934 | 158,907 |
| Other services costs | 28,109 | 27,108 | 26,690 | 28,237 | 27,622 | 29,575 |
| Total same store cost of operations | 243,958 | 236,809 | 233,222 | 241,707 | 235,504 | 236,737 |
| Same store contribution (NOI) | 116,284 | 118,442 | 137,305 | 123,528 | 117,221 | 124,929 |
| Same store rent and storage contribution (NOI)(1) | 96,187 | 98,370 | 106,466 | 96,570 | 99,945 | 104,550 |
| Same store services contribution (NOI)(2) | 20,097 | 20,072 | 30,839 | 26,958 | 17,276 | 20,379 |
| Total same store margin | 32.3 | 33.3 | 37.1 | 33.8 | 33.2 | 34.5 |
| Same store rent and storage margin(3) | 63.7 | 65.9 | 68.2 | 62.3 | 65.4 | 68.4 |
| Same store services margin(4) | 9.6 | 9.7 | 14.4 | 12.8 | 8.6 | 9.8 |
| Same store rent and storage: | ||||||
| Economic occupancy | ||||||
| Average economic occupied pallets | 2,830 | 2,887 | 3,036 | 2,942 | 2,971 | 3,094 |
| Economic occupancy percentage | 75.2 | 76.7 | 80.7 | 78.3 | 79.2 | 82.6 |
| Same store rent and storage revenues per economic occupied pallet | 53.35 | 51.67 | 51.43 | 52.66 | 51.46 | 49.39 |
| Physical occupancy | ||||||
| Average physical occupied pallets | 2,515 | 2,562 | 2,759 | 2,661 | 2,705 | 2,893 |
| Average physical pallet positions | 3,763 | 3,764 | 3,763 | 3,756 | 3,750 | 3,745 |
| Physical occupancy percentage | 66.8 | 68.1 | 73.3 | 70.8 | 72.1 | 77.3 |
| Same store rent and storage revenues per physical occupied pallet | 60.03 | 58.23 | 56.59 | 58.23 | 56.52 | 52.81 |
| Same store warehouse services: | ||||||
| Throughput pallets | 7,351 | 7,125 | 7,453 | 7,467 | 7,333 | 7,747 |
| Same store warehouse services revenues per throughput pallet | 28.47 | 28.92 | 28.77 | 28.17 | 27.25 | 26.96 |
| Actual FX rates for the period | ||||||
| 1 ARS = | 0.011 | 0.011 | 0.013 | 0.014 | 0.015 | 0.016 |
| 1 AUS = | 0.769 | 0.773 | 0.731 | 0.715 | 0.668 | 0.657 |
| 1 BRL = | 0.191 | 0.183 | 0.185 | 0.186 | 0.186 | 0.208 |
| 1 CAD = | 0.811 | 0.790 | 0.767 | 0.751 | 0.726 | 0.744 |
| 1 CLP = | 0.001 | 0.001 | n/a | n/a | n/a | n/a |
| 1 EUR = | 1.208 | 1.205 | n/a | n/a | n/a | n/a |
| 1 GBP = | 1.394 | 1.379 | n/a | n/a | n/a | n/a |
| 1 NZD = | 0.716 | 0.719 | 0.687 | 0.662 | 0.626 | 0.634 |
| 1 PLN = | 0.267 | 0.265 | n/a | n/a | n/a | n/a |
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 2021 |
|---|
External Growth and Capital Deployment
| Recently Completed Expansion and Development Projects | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Facility | Opportunity Type | Facility Type | Tenant Opportunity | Cubic Feet<br>(in millions) | Pallet Positions<br>(in thousands) | Estimated Total Cost<br><br>(in millions)(1) | NOI ROIC | Completion Date | Expected Full Stabilized Quarter |
| Rochelle, IL | Expansion | Distribution | Multi-tenant | 15.7 | 54 | $94.7 | 12-15% | Q2 2019 | Q4 2022 |
| Chesapeake, VA | Expansion | Public | Multi-tenant | 4.5 | 12 | $26.2 | 10-12% | Q4 2019 | Q1 2021 |
| North Little Rock, AR | Expansion | Public | Multi-tenant | 3.2 | 12 | $19.2 | 10-12% | Q4 2019 | Q1 2021 |
| Columbus, OH | Expansion | Public | Multi-tenant | 1.5 | 5 | $7.0 | 14-15% | Q1 2020 | Q2 2021 |
| Savannah, GA(2) | Development | Distribution | Multi-tenant | 14.8 | 37 | $69.5 | 10-15% | Q2 2020 | Q3 2021 |
| Atlanta, GA | Expansion /Redevelopment | Distribution | Multi-tenant | 18.3 | 60 | $130.0 | 10-15% | Q2 2021 | Q1 2023 |
| Auckland, New Zealand | Expansion | Distribution | Multi-tenant | 4.6 | 27 | NZ$64.0 | 12-14% | Q2 2021 | Q3 2022 |
| Lurgan, Northern Ireland | Expansion | Distribution | Multi-tenant | 0.7 | 4 | £6.6 | 10-12% | Q2 2021 | Q3 2022 |
(1)Cost to date through June 30, 2021, projects are substantially complete. Additional spending may be incurred for residual cost and retainage.
(2)Cost includes $15.9 million of development land as part of the PortFresh Holdings, LLC acquisition completed during January 2019.
| Expansion and Development Projects In Process and Announced | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Under<br>Construction | Investment in Expansion / Development(in millions) | Expected<br>Stabilized<br>NOI ROIC | Target<br>Complete<br>Date | Expected Full Stabilized Quarter | ||||||||||
| Facility | Opportunity Type | Facility Type | Tenant Opportunity | Cubic Feet<br><br>(millions) (1) | Pallet<br><br>Positions<br><br>(thousands) (1) | Cost (2) | ||||||||
| Calgary, Canada | Expansion | Distribution | Multi-tenant | 2.0 | 7 | C10.6 | C3.4-C5.4 | C$14-C$16 | 10-12% | Q4 2021 | Q1 2023 | |||
| Dunkirk, NY | Development | Production Advantaged | Build-to-suit | 7.0 | 25 | 4.5 | 37- 41 | $41 - $45 | 10-12% | Q2 2022 | Q3 2023 | |||
| Plainville, CT | Development | Distribution | Build-to-suit | 12.1 | 31 | 104.8 | 56.2-69.2 | $161-$174 | 10-12% | Q3 2022 | Q4 2023 | |||
| Lancaster, PA | Development | Distribution | Build-to-suit | 11.4 | 28 | 106.8 | 44.2-57.2 | $151-$164 | 10-12% | Q3 2022 | Q4 2023 | |||
| Dublin, Ireland | Development | Distribution | Multi-tenant | 6.3 | 20 | 9.9 | 15.7 - 17.7 | €25.5 - €27.5 | 10-12% | Q3 2022 | Q4 2023 | |||
| Russellville, AR | Expansion | Production Advantaged | Build-to-suit | 13.0 | 42 | 27.9 | 53.1-59.1 | $81-$87 | 10-12% | Q4 2022 | Q1 2024 | |||
| Atlanta 2, GA | Expansion | Distribution | Multi-tenant | 6.3 | 24 | 8.7 | 26 - 29 | $35 - $38 | 10-12% | Q2 2023 | Q1 2025 |
All values are in US Dollars.
(1)Cubic feet and pallet positions are estimates while the facilities are under construction.
(2)Cost as of June 30, 2021.
| Financial Supplement | Second Quarter 2021 | | --- | --- || Recent Acquisitions | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Facility | Metropolitan Area | No. of Facilities | Cubic Feet<br>(in millions) | Pallet<br>Positions<br>(in thousands) | Acquisition Price (in millions) | Net Entry NOI Yield (1) | | Expected Three Year Stabilized<br>NOI ROIC | Date Purchased | Expected Full Stabilized Quarter | | AM-C Warehouses | DFW, TX | 2 | 13.8 | 45 | $85.0 | 7.4 | % | 8-10% | 8/31/2020 | Q4 2023 | | Caspers Cold Storage | Tampa, FL | 1 | 3.2 | 12 | $25.5 | — | % | 9-10% | 8/31/2020 | Q4 2023 | | Halls Warehouse Corp(2) | New Jersey | 8 | 58.0 | 200 | $480.0 | 6.3 | % | 7-8% | 11/2/2020 | Q1 2024 | | Agro Merchants Group (2)(3)(4) | US, Europe, South America, Australia | 46 | 236.0 | 853 | $1,699.0 | 6.5 | % | 7.5-8.5% | 12/30/2020 | Q1 2026 | | Liberty Freezers | Canada | 4 | 10.4 | 42 | C$57.8 | 7.0 | % | 8-9% | 3/1/2021 | Q2 2024 | | KMT Brrr!(2) | New Jersey | 2 | 12.6 | 39 | $71.1 | 9.0 | % | 10.0-10.5% | 5/5/2021 | Q3 2024 | | Bowman Stores | England | 1 | 9.5 | 23 | £74.1 | 6.8 | % | 7.5-8.5% | 5/28/2021 | Q3 2024 | | ColdCo Logistics(5) | St. Louis | 2 | 2.8 | 12 | $20.5 | 10.7 | % | 12-13% | 8/2/2021 | Q4 2024 | | Newark Facility Management(6) | New Jersey | 1 | 11.5 | 17 | $376.5 | 6.1 | % | 6.5-7.5% | 9/2021 | Q4 2024 | | Lago Cold Stores | Australia | 3 | 6.8 | 30 | A$106.4 | 6.2 | % | 7-8% | Q4 2021 | Q1 2025 |
(1)Inclusive of expenses required to integrate and reach stabilization.
(2)Net Entry NOI Yield metric is exclusive of SG&A expense.
(3)Stabilized NOI ROIC of 7.5-8.5% reflects a period of five years for the Agro acquisition.
(4)Due to stock component of transaction, the Agro Acquisition price was different from original announcement.
(5)The net entry NOI yield of 10.7% excludes approximately $0.9 million of SG&A, resulting in a net entry EBITDA yield of 6.3%.
(6)The total acquisition price is $390.5 million. Excluding $2.6 million in annual tax credits valued at $14.0 million, the adjusted acquisition price is $376.5 million. The net entry NOI yield of 6.1% excludes approximately $1.7 million of SG&A, resulting in a net entry EBITDA yield of 5.6%. NOI and EBITDA exclude the $2.6 million in annual tax credits.
| Financial Supplement | Second Quarter 2021 |
|---|
Unconsolidated Joint Ventures (Investment in Partially Owned Entities)
As of June 30, 2021, the Company owned a 14.99% equity share in the Brazil-based SuperFrio. SuperFrio provides temperature-controlled storage and logistics services including storage, warehouse services, and transportation. The debt of our unconsolidated joint venture is non-recourse to us, except for customary exceptions pertaining to such matters as intentional misuse of funds, environmental conditions and material misrepresentations.
| SuperFrio | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| As of | |||||||||||||||
| Summary Balance Sheet - at the JV’s 100% share in BRLs | Q2 21 | Q1 21 | Q4 20 | Q3 20 | Q2 20 | ||||||||||
| Net book value of real estate | R$ | 817,378 | R$ | 579,770 | R$ | 579,475 | R$ | 436,291 | R$ | 432,208 | |||||
| Other assets | 362,475 | 169,695 | 177,804 | 228,043 | 245,830 | ||||||||||
| Total assets | 1,179,853 | 749,465 | 757,279 | 664,334 | 678,038 | ||||||||||
| Debt | 462,719 | 282,863 | 254,514 | 229,797 | 236,254 | ||||||||||
| Other liabilities | 369,004 | 223,385 | 278,816 | 208,782 | 214,150 | ||||||||||
| Equity | 348,130 | 243,217 | 223,949 | 225,755 | 227,634 | ||||||||||
| Total liabilities and equity | R$ | 1,179,853 | R$ | 749,465 | R$ | 757,279 | R$ | 664,334 | R$ | 678,038 | |||||
| Americold’s ownership percentage | 15 | % | 15 | % | 15 | % | 15 | % | 15 | % | |||||
| BRL/USD quarter-end rate | 0.2013 | 0.1775 | 0.1925 | 0.1783 | 0.1823 | ||||||||||
| Americold’s pro rata share of debt at BRL/USD rate | $ | 13,972 | $ | 7,531 | $ | 7,349 | $ | 6,146 | $ | 6,460 | |||||
| Three Months Ended | |||||||||||||||
| Summary Statement of Operations - at the JV’s 100% share in BRLs | Q2 21 | Q1 21 | Q4 20 | Q3 20 | Q2 20 | ||||||||||
| Total revenues | R$ | 69,047 | R$ | 44,653 | R$ | 51,122 | R$ | 44,349 | R$ | 40,972 | |||||
| Operating expenses | 55,911 | 41,260 | 35,750 | 33,775 | 32,888 | ||||||||||
| Operating income | 13,136 | 3,393 | 15,372 | 10,574 | 8,084 | ||||||||||
| Interest expense | 9,530 | 6,738 | 6,863 | 5,904 | 6,447 | ||||||||||
| Depreciation & amortization | 10,602 | 8,579 | 10,070 | 8,314 | 9,125 | ||||||||||
| Other income | (1,089) | (240) | (305) | (880) | (728) | ||||||||||
| Income tax benefit | 331 | (6,276) | (65) | (947) | (1,103) | ||||||||||
| Non-operating expenses | 19,374 | 8,801 | 16,563 | 12,391 | 13,741 | ||||||||||
| Net loss | R$ | (6,238) | R$ | (5,408) | R$ | (1,191) | R$ | (1,817) | R$ | (5,657) | |||||
| Americold’s ownership percentage | 15 | % | 15 | % | 15 | % | 15 | % | 15 | % | |||||
| BRL/USD average rate | 0.1910 | 0.1830 | 0.1854 | 0.1860 | 0.1862 | ||||||||||
| Americold’s pro rata share of NOI | $ | 376 | $ | 93 | $ | 427 | $ | 295 | $ | 226 | |||||
| Americold’s pro rata share of Net loss | $ | (179) | $ | (148) | $ | (33) | $ | (51) | $ | (158) | |||||
| Americold’s pro rata share of Core FFO | $ | 137 | $ | 116 | $ | 221 | $ | 187 | $ | 95 | |||||
| Americold’s pro rata share of AFFO | $ | 76 | $ | — | $ | 389 | $ | 312 | $ | 243 | |||||
| Financial Supplement | Second Quarter 2021 | ||||||||||||||
| --- | --- |
As of June 30, 2021, the Company owned a 22.12% equity share in the Brazil-based Comfrio. We acquired this JV ownership in conjunction with the Agro acquisition, which closed on December 30, 2020. 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.
| Comfrio | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| As of | |||||||||
| Summary Balance Sheet - at the JV’s 100% share in BRLs | Q2 21 | Q1 21 | Q4 20 | ||||||
| Net book value of real estate | R$ | 224,169 | R$ | 238,471 | R$ | 240,297 | |||
| Other assets | 277,756 | 255,380 | 295,052 | ||||||
| Total assets | 501,925 | 493,851 | 535,349 | ||||||
| Debt | 412,480 | 405,507 | 426,357 | ||||||
| Other liabilities | 107,125 | 101,536 | 108,782 | ||||||
| Accumulated deficit | (17,680) | (13,192) | 210 | ||||||
| Total liabilities and equity | R$ | 501,925 | R$ | 493,851 | R$ | 535,349 | |||
| Americold’s ownership percentage | 22 | % | 22 | % | 22 | % | |||
| BRL/USD quarter-end rate | 0.2013 | 0.1775 | 0.1925 | ||||||
| Americold’s pro rata share of debt at BRL/USD rate | $ | 18,267 | $ | 15,835 | $ | 18,056 | |||
| Three Months Ended | |||||||||
| Summary Statement of Operations - at the JV’s 100% share in BRLs | Q2 21 | Q1 21 | Q4 20 | ||||||
| Total revenues | R$ | 70,356 | R$ | 60,401 | R$ | 76,522 | |||
| Operating expenses | 33,612 | 46,039 | 36,159 | ||||||
| Operating income | 36,744 | 14,362 | 40,363 | ||||||
| Interest expense | 17,357 | 13,074 | 21,468 | ||||||
| Depreciation & amortization | 18,937 | 17,787 | 19,580 | ||||||
| Other income | (3,530) | (2,789) | (836) | ||||||
| Income tax benefit | — | — | (1,759) | ||||||
| Non-operating expenses | 32,764 | 28,072 | 38,453 | ||||||
| Net (loss) income | R$ | 3,980 | R$ | (13,710) | R$ | 1,910 | |||
| Americold’s ownership percentage | 22 | % | 22 | % | 22 | % | |||
| BRL/USD average rate | 0.1910 | 0.1830 | 0.1854 | ||||||
| Americold’s pro rata share of NOI at BRL/USD average rate | $ | 1,544 | $ | 578 | $ | 1,646 | |||
| Americold’s pro rata share of Net income (loss) at BRL/USD average rate(1) | $ | 167 | $ | (552) | $ | 78 | |||
| Americold’s pro rata share of Core FFO at BRL/USD average rate | $ | 434 | $ | (411) | n/a | ||||
| Americold’s pro rata share of AFFO at BRL/USD average rate | $ | 1,186 | $ | (17) | n/a | ||||
| (1) Q4 20 above represents the full quarter results for the Comfrio JV, however, our share of net loss reflected on the Condensed Consolidated Statement of Operations for the same time period does not reflect the results of Comfrio due to immateriality of one day of ownership. | |||||||||
| Financial Supplement | Second Quarter 2021 | ||||||||
| --- | --- |
2021 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 5, 2021 | May 6, 2021 | Feb. 18, 2021 | |
| Warehouse segment same store revenue growth (constant currency) | 0.0% - 2.0% | 2.0% - 4.0% | 2.0% - 4.0% |
| Warehouse segment same store NOI growth (constant currency) | 0 - 100 bps higher than associated revenue | 100 - 200 bps higher than associated revenue | 100 - 200 bps higher than associated revenue |
| Managed and Transportation segment NOI | $42M - $50M | $46M - $54M | $46M - $54M |
| Total selling, general and administrative expense (inclusive of non-cash share-based compensation expense of $21 - $23 million) | $175M - $185M | $190M - $196M | $190M - $196M |
| Current income tax expense | $8M - $10M | $9M - $13M | $9M - $13M |
| Deferred income tax (expense) benefit | ($4M - $6M) | $4M - $5M | $1M - $2M |
| Non real estate depreciation and amortization expense | $140M - $155M | $100M - $110M | $85M - $92M |
| Total maintenance capital expenditures | $77M - $82M | $90M - $100M | $90M - $100M |
| Development starts (1) | $175M - $300M | $175M - $300M | $175M - $300M |
| AFFO per share | $1.34 - $1.40 | $1.36 - $1.46 | $1.36 - $1.46 |
| Assumed FX rates | 1 ARS = 0.0127 USD<br><br>1 AUS = 0.7521 USD<br><br>1 BRL = 0.1820 USD<br><br>1 CAD = 0.8059 USD<br><br>1 CLP = 0.0018 USD<br><br>1 EUR = 1.2041 USD<br><br>1 GBP = 1.3976 USD<br><br>1 NZD = 0.7031 USD<br><br>1 PLN = 0.2665 USD | 1 ARS = 0.0101 USD<br>1 AUS = 0.7743 USD<br>1 BRL = 0.1795 USD<br>1 CAD = 0.8071 USD<br>1 CLP = 0.0013 USD<br>1 EUR = 1.1898 USD<br>1 GBP = 1.3904 USD<br>1 NZD = 0.7185 USD<br>1 PLN = 0.2587 USD | 1 ARS = 0.0130 USD<br>1 AUS = 0.7179 USD<br>1 BRL = 0.1930 USD<br>1 CAD = 0.7592 USD<br>1 CLP = 0.0013 USD<br>1 EUR = 1.1839 USD<br>1 GBP = 1.3121 USD<br>1 NZD = 0.6600 USD<br>1 PLN = 0.2686 USD |
(1)Represents the aggregate invested capital for initiated development opportunities.
| Financial Supplement | Second Quarter 2021 |
|---|---|
| Notes and Definitions | |
| --- | |
| 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 assets, plus specified non-cash items, such as real estate asset depreciation, net loss or gain on asset disposals, impairment of real estate assets, and our share of reconciling items of 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 net of withholding taxes, 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 FFO adjusted for the effects of gain or loss on the sale of non-real estate assets, non-real estate asset impairment, acquisition, litigation and other expenses, share-based compensation expense for the IPO retention grants, bridge loan commitment fees, loss on debt extinguishment, modifications and termination of derivative instruments and foreign currency exchange gain or loss. We also adjust for the impact of Core FFO attributable to partially owned entities. We have elected to reflect our share of Core FFO attributable to partially owned entities since the Brazil joint ventures are strategic partnerships which we continue to actively participate in on an ongoing basis. The previous joint venture, the China JV, was considered for disposition during the periods presented. 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 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 FFO and Core FFO as a measure of our performance may be limited. | |
| We calculate adjusted funds from operations, or Adjusted FFO, as Core FFO adjusted for the effects of amortization of deferred financing costs, pension withdrawal liability and above or below market leases, straight-line net rent, provision or benefit from deferred income taxes, share-based compensation expense from grants of stock options and restricted stock units under our equity incentive plans, excluding IPO grants, non-real estate depreciation and amortization, and maintenance capital expenditures. We also adjust for AFFO attributable to our portion of reconciling items of partially owned entities. 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 annual and quarterly 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 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, earnings before interest expense, taxes, depreciation and amortization, and net (gain) loss on sale of real estate, net of withholding taxes and adjustment to reflect our 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, litigation and other expenses, asset impairment, loss or gain on real estate and other asset disposals, bridge loan commitment fees, loss on debt extinguishment, modifications and termination of derivative instruments, share-based compensation expense, foreign currency exchange gain or loss, loss or income from investments in partially owned entities and reduction in EBITDAre from partially owned entities. 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 EBITDA but which we do not believe are indicative of our core business operations. EBITDA and Core EBITDA are not measurements of financial performance under U.S. GAAP, and our EBITDA and Core EBITDA may not be comparable to similarly titled measures of other companies. You should not consider our EBITDA and Core EBITDA as alternatives to net income or cash flows from operating activities determined in accordance with U.S. GAAP. Our calculations of EBITDA and Core EBITDA have limitations as analytical tools, including: |
•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 Core EBITDA and EBITDAre as measures of our operating performance and not as measures of liquidity. The table on page 22 reconciles EBITDA, EBITDAre and Core EBITDA to net income, which is the most directly comparable financial measure calculated in accordance with U.S. GAAP. |
|---|
| All quarterly amounts and non-GAAP disclosures within this filing shall be deemed unaudited. |
44