Rent and Storage Segment NOI Growth Should Slow Down for Americold in 2024

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 89% of the company’s revenue in 2023. 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 provides ancillary warehouse services like flash freezing and picking/packing to serve, attract, and retain customers. The company also has a transportation services segment where it brokers, manages, and operates transportation for its customers. The remainder of the 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.