Americold Earnings: Slowdown in Warehouse Rent Segment Offset by Rebound in Services Segment

No-moat-rated Americold Realty Trust reported mixed fourth-quarter results. The core warehouse rent and storage segment, which had performed strongly in the past few quarters, slowed substantially, but this was offset by a strong rebound in the profitability of the warehouse services segment, which had been under considerable pressure after the pandemic. The firm reported adjusted funds from operations of $0.38 per share, 31% higher than the $0.29 in adjusted FFO during the fourth quarter of 2022. Core EBITDA, which removes the impact of higher interest expense and is less prone to quarterly fluctuations, was reported at $160.3 million in the fourth quarter, up 17.1% from the $136.8 million in core EBITDA in the year-ago quarter. We plan to reduce our $33 fair value estimate by a mid-single-digit percentage as we incorporate these results.