Americold Realty Trust (COLD) Q3 2024 earnings summary

Executive summary

• AFFO reached $100.1 million ($0.35/share), up 10.9%–11% year-over-year, with double-digit same-store NOI growth and record warehouse services margins for the third consecutive quarter.

• Productivity gains and Project Orion technology drove $100 million incremental warehouse services NOI through Q3, with annual warehouse services margins now set at a 12% base.

• Operates 239 temperature-controlled warehouses globally, with 195 in North America, 25 in Europe, 17 in Asia-Pacific, and 2 in South America as of September 30, 2024.

• Exited less strategic markets, sold certain assets, and completed a $500 million public senior unsecured notes offering in September 2024.

• Announced a $148 million automated expansion in Dallas-Fort Worth, exceeding development guidance, and completed a Dubai expansion.

Financial highlights

• Q3 2024 total revenues were $674.2 million, up 0.9% year-over-year; constant currency growth was 2.1%.

• Q3 2024 net loss was $3.7 million, or $0.01 per diluted share, compared to a $2.1 million loss in Q3 2023; nine-month net loss was $58.3 million, improved from $109.5 million loss in prior year.

• AFFO per share guidance for 2024 is $1.44–$1.50, representing a 16% increase from 2023.

• Core EBITDA increased 9.1% to $157.2 million; margin rose to 23.3% from 21.6% year-over-year.

• Net debt at quarter-end was $3.5 billion, with liquidity of $921.9 million and net debt to Core EBITDA at 5.5x.

Outlook and guidance

• Full-year 2024 same-store constant currency revenue growth expected at 1.5%–3.5%.

• Economic occupancy for 2024 expected to decline 425–633 bps year-over-year; throughput volume to decrease 2.5%–4.5%.

• Constant currency rent and storage revenue per pallet growth forecasted at 4.5%–5%; services revenue per throughput pallet at 9%–10%.

• Same-store constant currency NOI growth forecasted at 10%–12% for 2024.

• Announced development starts guidance raised to $300–$350 million for 2024.