Company Reports

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 more than 90% of the company’s revenue in 2025. While these warehouses vary in size and exact temperature, more than four-fifths of Americold’s warehouses are in North America, and we consider Americold’s facilities 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.

Americold Realty reported adjusted funds from operations of $0.35 per share and a same-store net operating income decline of 1.5% for the warehouse segment in the second quarter.

Americold Realty reported adjusted funds from operations of $0.29 per share and a same-store net operating income decline of 4.5% for the warehouse segment in the first quarter.

While Americold Realty Trust's shares jumped more than 15% on the day Feb. 24, the firm announced fourth-quarter earnings last week, and it is only up 3% year to date and is down more than 40% over the past year.

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 more than 90% of the company’s revenue in 2025. While these warehouses vary in size and exact temperature, more than four-fifths of Americold’s warehouses are in North America, and we consider Americold’s facilities 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.

Americold reported decent fourth-quarter results as adjusted fund from operations of $0.38 per share, grew 3% from the prior-year quarter. Core EBITDA, which excludes interest expense impacts, grew nearly 5% from a year ago.

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 90% of the company’s revenue in 2024. While these warehouses vary in size and exact temperature, more than four-fifths of Americold’s warehouses are in North America, and we consider Americold’s facilities 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.

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 90% of the company’s revenue in 2024. While these warehouses vary in size and exact temperature, more than four-fifths of Americold’s warehouses are in North America, and we consider Americold’s facilities 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.

Americold's third-quarter numbers reflected continued weakness in the North American cold storage market. Adjusted funds from operations was flat on a year-over-year basis at $0.35 per share. Core EBITDA, which removes the impact of interest expenses and other nonrecurring items, declined 5.4%.

Americold's stock has corrected by around 60% since July 2024, in sharp contrast with the broader US market and REITs during the same period. The market is overreacting to near-term concerns, creating an attractive investment opportunity for long-term-oriented investors.

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 90% of the company’s revenue in 2024. While these warehouses vary in size and exact temperature, more than four-fifths of Americold’s warehouses are in North America, and we consider Americold’s facilities 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.

Americold reported disappointing numbers in the second quarter as AFFO came in at $0.36 per share, 5.6% lower than the previous year. Core EBITDA, which removes the impact of interest expenses, declined 3.9% on a year-over-year basis.

Americold reported disappointing numbers in the first quarter as adjusted funds from operations were $0.34 per share, 9.0% lower than the previous year. Core EBITDA, which removes the impact of interest expenses and is less prone to quarterly fluctuations, declined 5.3% on a year-over-year basis.

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 90% of the company’s revenue in 2024. While these warehouses vary in size and exact temperature, more than 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.

Americold reported decent numbers in the fourth quarter as adjusted funds from operations came in at $0.37 per share, 2.1% lower than the previous year. Core EBITDA, which removes the impact of interest expenses and is less prone to quarterly fluctuations, declined 2.9% on a year-over-year basis.

Over the past few years, we have observed an inverse relationship between share prices in the REIT sector and interest-rate movements. We believe a major reason is that all commercial real estate valuations are connected to interest rates. Capitalization rates directly indicate the return expectations for a real estate investment and expectations for risk and growth. Historically, we have observed that commercial real trades at cap rates consistently spread above the 10-year US Treasury. If interest rates rise, investors will require a higher return, and thus a higher cap rate, to accept the risk associated with an investment in a real estate asset. Since return expectations have held relatively steady for most real estate sectors over the past few years, higher cap rates translate to falling prices for real estate.

No-moat-rated Americold Realty reported third-quarter results that looked decent on the whole because of the extremely strong recovery in the services segment, but the core rent and storage business is under substantial pressure. The firm reported adjusted funds from operations of $0.35 per share, 9.4% higher than the $0.32 reported for the third quarter of 2023. Core EBITDA, which removes the impact of higher interest expenses and is less prone to quarterly fluctuations, was $157.2 million in the third quarter of 2024, up 9.1% compared with $144.0 million in the third quarter of the previous year. The year-over-year growth in the headline numbers can be completely attributed to the strong recovery in the services business, where margins have expanded significantly. We do not plan to change our $31.50 per share fair value estimate for the company as we incorporate these results.

The REIT sector in the US offers many companies that should see relatively stable cashflow growth over the next several years. While the pandemic hurt REIT valuations in 2020, the recovery of fundamentals across most sectors combined with low interest rates led to strong total returns in 2021 and early 2022. However, despite fundamentals continuing to perform well over the past three years with many reaching historical levels of net operating income growth, the REIT sector underperformed the broader equity markets in 2023 and into the first half of 2024. We believe that is due to the sector’s negative correlation with interest rates, as income-oriented investors rotate out of the sector, higher rates lower the value REITs can create with external growth, and property valuations fall in line with higher rates. However, interest rates have fallen since the end of July, leading to a rally for the REIT sector. Still, we still view many of companies in the US REIT sector as being undervalued as the companies should continue to produce solid long-term growth.

Despite a rally over the past two months, we still view the US REIT sector as being undervalued. While the pandemic hurt REIT valuations in 2020, the recovery of fundamentals across most sectors led combined with low interest rates led to strong total returns in 2021 and early 2022. However, despite fundamentals continuing to perform well over the past three years, with many reaching historical levels of net operating income growth, the REIT sector has underperformed the broader equity markets in 2023 and into the first half of 2024. We believe that the cause has been due to the sector's negative correlation with interest rates as income-oriented investors rotate out of the sector, higher rates lower the value REITs can create with external growth, and property valuations fall in line with higher rates. However, interest rates have fallen since the end of July, leading to a rally for the REIT sector. We believe that US REITs will continue to see share price movements that are inverse of interest rate movements.

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.