On August 8, 2024, Americold Realty Trust Inc (COLD, Financial) released its 8-K filing detailing its financial results for the second quarter of 2024. Americold Realty Trust Inc, headquartered in Atlanta, Georgia, is the world's second-largest owner and operator of temperature-controlled warehouses, with approximately 245 facilities spanning 1.5 billion cubic feet. The company operates as a real estate investment trust (REIT) and derives over 80% of its revenue from the United States, with additional operations in Europe, Canada, Australia, and New Zealand.
Performance Overview
Americold Realty Trust Inc reported total revenue of $661.0 million for Q2 2024, a 1.7% increase from $649.6 million in Q2 2023, aligning closely with the analyst estimate of $661.98 million. However, the company posted a net loss of $64.4 million, or $0.23 per diluted share, missing the estimated earnings per share (EPS) of $0.05. This compares to a net loss of $104.8 million, or $0.39 per diluted share, in the same quarter last year.
Key Financial Achievements
Despite the net loss, Americold achieved several notable financial milestones:
- Total Company Net Operating Income (NOI) increased by 17.1% to $215.5 million from $184.1 million in Q2 2023.
- Core EBITDA rose by 22.9% to $165.5 million, up from $134.7 million in the prior year.
- Core Funds From Operations (FFO) reached $95.0 million, or $0.33 per diluted share, compared to $62.5 million, or $0.23 per diluted share, in Q2 2023.
- Adjusted Funds From Operations (AFFO) were $109.4 million, or $0.38 per diluted share, up from $75.6 million, or $0.28 per diluted share, in the same quarter last year.
Global Warehouse Segment Performance
The Global Warehouse segment, which is the core of Americold's business, showed robust performance:
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Total Revenue | $600.4 million | $581.2 million | +3.3% |
| Segment NOI | $204.5 million | $172.8 million | +18.3% |
| Segment Margin | 34.1% | 29.7% | +433 bps |
Challenges and Outlook
While Americold Realty Trust Inc has shown strong growth in NOI and EBITDA, the company faces challenges such as lower economic occupancy and throughput, which have been partially offset by pricing initiatives and rate escalations. The company has also been investing heavily in technology and processes to enhance revenue capture and cost management.
George Chappelle, Chief Executive Officer of Americold Realty Trust, stated, "As the operational and financial results of the second quarter highlight, it's been another great quarter for organic growth at Americold as we produced double digit year-over-year growth in Global Warehouse Same Store NOI, Same Store Warehouse Services Margins, and ultimately AFFO."
Balance Sheet and Liquidity
As of June 30, 2024, Americold had total liquidity of approximately $553.7 million, including cash and capacity on its revolving credit facility. Total net debt outstanding was $3.3 billion, with 95% in an unsecured structure. The company’s net debt to pro forma Core EBITDA ratio stood at approximately 5.3x.
Conclusion
Americold Realty Trust Inc's Q2 2024 results highlight strong operational performance and significant growth in key financial metrics, despite challenges in occupancy and throughput. The company's strategic investments in technology and workforce stabilization have laid a solid foundation for future growth. For more detailed insights, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Americold Realty Trust Inc for further details.
