Americold Earnings: Lower Throughput Pallets and Warehouse Services Weigh on Overall Results

No-moat-rated Americold Realty reported mixed third-quarter results with strong performance in the warehouse rent and storage segment but disappointing results in the warehouse services segment. The firm reported adjusted funds from operations, or AFFO, of $0.32 per share, 10.3% higher than the $0.29 in adjusted FFO during the third quarter of 2022. Core EBITDA, which removes the impact of higher interest expenses and is less prone to quarterly fluctuations, was reported at $144.1 million in the third quarter up 9.2% compared with the $131.9 million in core EBITDA during the third quarter of the previous year. Management has tightened its 2023 AFFO guidance to $1.24-$1.30 per share, which is approximately 14.4% higher than the full-year 2022 AFFO at the midpoint. We do not plan to change our $33 fair value estimate for the company as we incorporate the third-quarter results.