Long-Term Demand for Americold's Cold Storage Warehouses Should Remain Resilient

Americold Realty owns and operates cold storage warehouses that mainly store perishable food products but also other temperature-sensitive items like pharmaceuticals, florals, and chemicals. The company’s main line of business is the warehouse rent and storage segment, which accounted for 77% of the company’s revenue in 2021. While these warehouses vary in size and exact temperature, four fifths of Americold’s warehouses are in North America and we consider Americold’s facilities as among the best in terms of quality and location. The company also provides ancillary services like flash freezing, picking/packing, and transportation, but they accounted for only 11% of revenue and largely serve to attract and retain customers. The remainder of Americold’s revenue comes from the third-party managed segment, where it operates facilities on behalf of customers who own cold storage space but do not have expertise in operating it.