Analyst Note
| Yousuf Hafuda |Americold Realty reported impressive third-quarter results considering the disruptive effect the coronavirus crisis has had on supply chains globally. Although industrial real estate has emerged as a darling of the commercial real estate industry amid the coronavirus pandemic, the cold storage industry is likewise proving a great option for investors at the moment. During the third quarter, Americold reported core funds from operations of $0.28 per share, a modest decrease as compared with $0.30 during the third quarter of 2019. Despite the decline, the firm reported third-quarter net operating income of $135 million, an increase of around 12% as compared with a year ago. Americold Realty’s results included several bright spots that lead us to reaffirm our $32 per share fair value estimate for the no-moat rated firm.