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Americold Realty Trust Inc COLD

Morningstar Rating
$23.28 −0.16 (0.68%)
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Company Report

Following Two Years of Rising Interest Rates, We Believe REITs Are Trading at Significant Discounts

We believe that there are several attractive opportunities across the US REIT sector for investors to consider. Following the recovery of many REIT sector fundamentals from the pandemic by mid-2021, we viewed the REIT sector as fairly valued through early 2022. However, the past two years have seen the rapid rise in interest rates and a slowing economy, which has led to major valuation declines across the sector. Our analysis of the REIT sector over the past 25 years suggests that the relative stock performance of REITs is negatively correlated with interest rate movements. The second and third quarters of 2023 saw large interest rate increases with the 10-year Treasury approaching 5%, which led to the sector underperforming. This occurred even as many REITs reported same-store net operating income, or NOI, growth at historical highs in 2022 due to high inflation. Higher interest rates, lower liquidity, tighter capital market conditions, and decelerating same-store NOI growth all led to a significant correction in the stock price for many REITs.

Price vs Fair Value

COLD is trading at a 26% discount.
Price
$23.28
Fair Value
$85.70
Uncertainty
Medium
1-Star Price
$24.61
5-Star Price
$15.24
Economic Moat
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Capital Allocation
Qkbpgqrt

Bulls Say, Bears Say

Bulls

Demand for cold storage is tied to demand for food, which is relatively stable through economic cycles.

Bears

A flood of capital from private equity (and other institutional investors) potentially creates overcapacity, puts downward pressure on rents, and depresses capitalization rates.

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News

Trading Information

Previous Close Price
$23.44
Day Range
$23.0423.43
52-Week Range
$23.0433.90
Bid/Ask
$21.00 / $30.27
Market Cap
$6.61 Bil
Volume/Avg
1.3 Mil / 2.6 Mil

Key Statistics

Price/Earnings (Normalized)
291.09
Price/Sales
2.40
Dividend Yield (Trailing)
3.78%
Dividend Yield (Forward)
3.78%
Total Yield
3.78%

Company Profile

Americold Realty Trust Inc is the world's second-largest owner and operator of temperature-controlled warehouses behind privately held Lineage Logistics. The Atlanta, Georgia-based firm owns and operates approximately 245 temperature-controlled warehouses, spanning 1.5 billion cubic feet. In 2022, the firm derived more than 80% of its revenue from the United States but also has sizable operations in Europe, Canada, Australia, and New Zealand. Americold supplements its core business by providing supply management and transportation services to its various customers. It operates as a real estate investment trust.
Sector
Real Estate
Industry
REIT - Industrial
Stock Style Box
Small Core
Total Number of Employees
14,706

Competitors

Valuation

Metric
COLD
PSA
PLD
Price/Earnings (Normalized)
291.0922.1343.24
Price/Book Value
1.838.132.00
Price/Sales
2.4010.2213.61
Price/Cash Flow
15.5514.3120.59
Price/Earnings
COLD
PSA
PLD

Financial Strength

Metric
COLD
PSA
PLD
Quick Ratio
0.530.620.33
Current Ratio
0.600.620.55
Interest Coverage
−1.3411.476.60
Quick Ratio
COLD
PSA
PLD

Profitability

Metric
COLD
PSA
PLD
Return on Assets (Normalized)
1.04%12.33%3.93%
Return on Equity (Normalized)
2.26%39.85%6.71%
Return on Invested Capital (Normalized)
3.04%13.46%4.89%
Return on Assets
COLD
PSA
PLD
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REIT - Industrial Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
PLD
Prologis IncBhgxrkwwPbxj$106.1 Bil
PSA
Public StorageCxfrpshzvrGncjl$46.7 Bil
EXR
Extra Space Storage IncNkpwfpympgMdr$29.1 Bil
SEGXF
Segro PLCFtj$14.1 Bil
REXR
Rexford Industrial Realty IncNxgp$9.8 Bil
CUBE
CubeSmartRswgtmfjTbllqq$9.5 Bil
ACDSF
CapitaLand Ascendas REIT UnitsBnw$8.5 Bil
EGP
EastGroup Properties IncZnxqtz$8.1 Bil
FR
First Industrial Realty Trust IncQkkht$6.7 Bil

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