Americold Realty Trust, Inc. Announces Fourth Quarter 2022 Results
ATLANTA, GA., Feb. 16, 2023 (GLOBE NEWSWIRE) -- Americold Realty Trust, Inc. (NYSE: COLD) (the “Company”), the world’s largest publicly traded REIT focused on the ownership, operation, acquisition and development of temperature-controlled warehouses, today announced financial and operating results for the fourth quarter ended December 31, 2022.
Fourth Quarter 2022 Highlights
Total revenue increased 0.7% to $721.5 million.
Total NOI increased 16.6% to $188.2 million.
Core EBITDA increased 10.6% to $136.8 million, and increased 13.6% on a constant currency basis.
Net income of $3.0 million, or $0.01 per diluted common share.
Core FFO of $70.2 million, or $0.26 per diluted common share.
AFFO of $78.2 million, or $0.29 per diluted common share.
Global Warehouse segment revenue increased 8.0% to $598.7 million.
Global Warehouse segment NOI increased 14.2% to $172.3 million.
Global Warehouse segment same store revenue increased 8.3%, or 10.9% on a constant currency basis, Global Warehouse segment same store NOI increased by 13.1%, or 15.4% on a constant currency basis.
Completed the Barcelona expansion for approximately €13.0 million.
Completed the strategic exit of a significant component of our lower margin Third-party managed segment.
On November 1, we prepaid at par the remaining $264.1 million indebtedness on our 2013 CMBS thereby transitioning all real estate debt to unsecured.
Year to Date 2022 Highlights
Total revenue increased 7.4% to $2.9 billion.
Total NOI increased 10.5% to $696.0 million.
Core EBITDA increased 5.3% to $499.8 million, or 7.3% on a constant currency basis.
Net loss of $19.5 million, or $0.07 loss per diluted common share.
Core FFO of $249.0 million, or $0.92 per diluted common share.
AFFO of $300.3 million, or $1.11 per diluted common share.
Global Warehouse segment revenue increased 10.4% to $2.3 billion.
Global Warehouse segment NOI increased 8.5% to $636.2 million.
Global Warehouse segment same store revenue increased 6.4%, or 8.5% on a constant currency basis, Global Warehouse segment same store NOI increased 5.1%, or 6.7% on a constant currency basis.
Fourth Quarter 2022 Total Company Financial Results
Total revenue for the fourth quarter of 2022 was $721.5 million, a 0.7% increase from the same quarter of the prior year. This growth was driven by our core warehouse business which benefited from our pricing initiatives and rate escalations, higher economic occupancy, incremental revenue from acquisitions and recently completed expansion and development projects, partially offset by lower throughput volume in our same store portfolio. These increases exceeded the decrease in revenue from our Third-party managed segment as a result of our strategic exit of a significant component of this business. Additionally, total revenue was impacted by unfavorable foreign currency translation as the USD strengthened against the currencies of our foreign operations.
Total NOI for the fourth quarter of 2022 was $188.2 million, an increase of 16.6% from the same quarter of the prior year. This increase is a result of the same factors driving the increase in revenue mentioned above, the increase in profitability of our Transportation segment, partially offset by inflationary pressure on operating costs, labor and operational inefficiencies and a slight decline in contribution from our Third-party managed segment.
Core EBITDA was $136.8 million for the fourth quarter of 2022, compared to $123.7 million for the same quarter of the prior year. This reflects a 10.6% increase over prior year on an actual basis, and 13.6% on a constant currency basis. The increase is due to the same factors driving the increase in NOI mentioned above, partially offset by an increase in selling, general and administrative costs.
For the fourth quarter of 2022, the Company reported net income of $3.0 million, or $0.01 per diluted share, compared to net loss of $8.0 million, or $0.03 loss per diluted share, for the same quarter of the prior year.
For the fourth quarter of both 2022 and 2021, Core FFO was $70.2 million, or $0.26 per diluted share.
For the fourth quarter of 2022, AFFO was $78.2 million, or $0.29 per diluted share, compared to $82.2 million, or $0.31 per diluted share, for the same quarter of the prior year.
Please see the Company’s supplemental financial information for the definitions and reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures.
Fourth Quarter 2022 Global Warehouse Segment Results
For the fourth quarter of 2022, Global Warehouse segment revenue was $598.7 million, an increase of $44.5 million, or 8.0%, compared to $554.2 million for the fourth quarter of 2021. This growth was principally driven by growth in our same store pool resulting from our pricing initiative and rate escalations and higher economic occupancy as compared to 2021, paired with increases in our non-same store pool from incremental revenue from acquisitions and recently completed development projects. This was partially offset by the unfavorable impact of foreign currency translation and lower throughput in our same store pool.
Global Warehouse segment NOI was $172.3 million for the fourth quarter of 2022 as compared to $150.9 million for the fourth quarter of 2021. Global Warehouse segment NOI increased due to the drivers of warehouse revenue increase mentioned above, offset by the impact of inflationary pressures, start-up costs for our developments, labor and operational inefficiencies and the unfavorable impact of foreign currency translation. Global Warehouse segment margin was 28.8% for the fourth quarter of 2022, a 156 basis point increase compared to the same quarter of the prior year.
We had 208 same store warehouses for the three months ended December 31, 2022. The following table presents revenues, cost of operations, contribution (NOI) and margins for our same store and non-same store warehouses with a reconciliation to the total financial metrics of our warehouse segment for the three months ended December 31, 2022. Refer to our “Real Estate Portfolio” section below for the composition of our non-same store pool.
| Three Months Ended December 31, |
| Change | ||||||||||||||
Dollars and units in thousands, except per pallet data | 2022 Actual |
| 2022 Constant |
| 2021 Actual |
| Actual |
| Constant | ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
TOTAL WAREHOUSE SEGMENT |
|
|
|
|
|
|
|
|
| ||||||||
Number of total warehouses |
| 237 |
|
|
|
|
| 241 |
|
| n/a |
|
| n/a |
| ||
Global Warehouse revenue: |
|
|
|
|
|
|
|
|
| ||||||||
Rent and storage | $ | 267,031 |
|
| $ | 273,754 |
|
| $ | 233,367 |
|
| 14.4 | % |
| 17.3 | % |
Warehouse services |
| 331,659 |
|
|
| 340,155 |
|
|
| 320,788 |
|
| 3.4 | % |
| 6.0 | % |
Total revenue | $ | 598,690 |
|
| $ | 613,909 |
|
| $ | 554,155 |
|
| 8.0 | % |
| 10.8 | % |
Global Warehouse contribution (NOI) | $ | 172,328 |
|
| $ | 176,481 |
|
| $ | 150,884 |
|
| 14.2 | % |
| 17.0 | % |
Global Warehouse margin |
| 28.8 | % |
|
| 28.7 | % |
|
| 27.2 | % |
| 156 bps |
|
| 152 bps |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Global Warehouse rent and storage metrics: |
|
|
|
|
|
|
|
|
| ||||||||
Average economic occupied pallets |
| 4,537 |
|
|
| n/a |
|
|
| 4,207 |
|
| 7.9 | % |
| n/a |
|
Average physical occupied pallets |
| 4,229 |
|
|
| n/a |
|
|
| 3,861 |
|
| 9.5 | % |
| n/a |
|
Average physical pallet positions |
| 5,415 |
|
|
| n/a |
|
|
| 5,409 |
|
| 0.1 | % |
| n/a |
|
Economic occupancy percentage |
| 83.8 | % |
|
| n/a |
|
|
| 77.8 | % |
| 601 bps |
|
| n/a |
|
Physical occupancy percentage |
| 78.1 | % |
|
| n/a |
|
|
| 71.4 | % |
| 671 bps |
|
| n/a |
|
Total rent and storage revenue per economic occupied pallet | $ | 58.86 |
|
| $ | 60.34 |
|
| $ | 55.48 |
|
| 6.1 | % |
| 8.8 | % |
Total rent and storage revenue per physical occupied pallet | $ | 63.14 |
|
| $ | 64.73 |
|
| $ | 60.43 |
|
| 4.5 | % |
| 7.1 | % |
Global Warehouse services metrics: |
|
|
|
|
|
|
|
|
| ||||||||
Throughput pallets |
| 9,963 |
|
|
| n/a |
|
|
| 10,346 |
|
| (3.7 | )% |
| n/a |
|
Total warehouse services revenue per throughput pallet | $ | 33.29 |
|
| $ | 34.14 |
|
| $ | 31.01 |
|
| 7.4 | % |
| 10.1 | % |
|
|
|
|
|
|
|
|
|
| ||||||||
SAME STORE WAREHOUSE |
|
|
|
|
|
|
|
|
| ||||||||
Number of same store warehouses |
| 208 |
|
|
|
|
| 208 |
|
| n/a |
|
| n/a |
| ||
Global Warehouse same store revenue: |
|
|
|
|
|
|
|
|
| ||||||||
Rent and storage | $ | 230,785 |
|
| $ | 235,947 |
|
| $ | 201,750 |
|
| 14.4 | % |
| 17.0 | % |
Warehouse services |
| 295,365 |
|
|
| 302,612 |
|
|
| 284,044 |
|
| 4.0 | % |
| 6.5 | % |
Total same store revenue | $ | 526,150 |
|
| $ | 538,559 |
|
| $ | 485,794 |
|
| 8.3 | % |
| 10.9 | % |
Global Warehouse same store contribution (NOI) | $ | 163,096 |
|
| $ | 166,414 |
|
| $ | 144,196 |
|
| 13.1 | % |
| 15.4 | % |
Global Warehouse same store margin |
| 31.0 | % |
|
| 30.9 | % |
|
| 29.7 | % |
| 132 bps |
|
| 122 bps |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Global Warehouse same store rent and storage metrics: |
|
|
|
|
|
|
|
|
| ||||||||
Average economic occupied pallets |
| 4,082 |
|
|
| n/a |
|
|
| 3,802 |
|
| 7.4 | % |
| n/a |
|
Average physical occupied pallets |
| 3,827 |
|
|
| n/a |
|
|
| 3,481 |
|
| 10.0 | % |
| n/a |
|
Average physical pallet positions |
| 4,802 |
|
|
| n/a |
|
|
| 4,833 |
|
| (0.6 | )% |
| n/a |
|
Economic occupancy percentage |
| 85.0 | % |
|
| n/a |
|
|
| 78.7 | % |
| 634 bps |
|
| n/a |
|
Physical occupancy percentage |
| 79.7 | % |
|
| n/a |
|
|
| 72.0 | % |
| 768 bps |
|
| n/a |
|
Same store rent and storage revenue per economic occupied pallet | $ | 56.54 |
|
| $ | 57.80 |
|
| $ | 53.07 |
|
| 6.5 | % |
| 8.9 | % |
Same store rent and storage revenue per physical occupied pallet | $ | 60.30 |
|
| $ | 61.65 |
|
| $ | 57.96 |
|
| 4.0 | % |
| 6.4 | % |
Global Warehouse same store services metrics: |
|
|
|
|
|
|
|
|
| ||||||||
Throughput pallets |
| 8,882 |
|
|
| n/a |
|
|
| 9,157 |
|
| (3.0 | )% |
| n/a |
|
Same store warehouse services revenue per throughput pallet | $ | 33.26 |
|
| $ | 34.07 |
|
| $ | 31.02 |
|
| 7.2 | % |
| 9.8 | % |
| Three Months Ended December 31, |
| Change | ||||||||||||
Dollars and units in thousands, except per pallet data | 2022 Actual |
| 2022 Constant |
| 2021 Actual |
| Actual |
| Constant | ||||||
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
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|
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| ||||||
NON-SAME STORE WAREHOUSE |
|
|
|
|
|
|
|
|
| ||||||
Number of non-same store warehouses(2) |
| 29 |
|
|
|
|
| 33 |
|
| n/a |
| n/a | ||
Global Warehouse non-same store revenue: |
|
|
|
|
|
|
|
|
| ||||||
Rent and storage | $ | 36,246 |
|
| $ | 37,807 |
|
| $ | 31,617 |
|
| n/r |
| n/r |
Warehouse services |
| 36,294 |
|
|
| 37,543 |
|
|
| 36,744 |
|
| n/r |
| n/r |
Total non-same store revenue | $ | 72,540 |
|
| $ | 75,350 |
|
| $ | 68,361 |
|
| n/r |
| n/r |
Global Warehouse non-same store contribution (NOI) | $ | 9,232 |
|
| $ | 10,067 |
|
| $ | 6,688 |
|
| n/r |
| n/r |
Global Warehouse non-same store margin |
| 12.7 | % |
|
| 13.4 | % |
|
| 9.8 | % |
| n/r |
| n/r |
|
|
|
|
|
|
|
|
|
| ||||||
Global Warehouse non-same store rent and storage metrics: |
|
|
|
|
|
|
|
| |||||||
Average economic occupied pallets |
| 455 |
|
|
| n/a |
|
|
| 405 |
|
| n/r |
| n/a |
Average physical occupied pallets |
| 402 |
|
|
| n/a |
|
|
| 381 |
|
| n/r |
| n/a |
Average physical pallet positions |
| 614 |
|
|
| n/a |
|
|
| 576 |
|
| n/r |
| n/a |
Economic occupancy percentage |
| 74.1 | % |
|
| n/a |
|
|
| 70.2 | % |
| n/r |
| n/a |
Physical occupancy percentage |
| 65.5 | % |
|
| n/a |
|
|
| 66.0 | % |
| n/r |
| n/a |
Non-same store rent and storage revenue per economic occupied pallet | $ | 79.68 |
|
| $ | 83.11 |
|
| $ | 78.13 |
|
| n/r |
| n/r |
Non-same store rent and storage revenue per physical occupied pallet | $ | 90.16 |
|
| $ | 94.04 |
|
| $ | 83.05 |
|
| n/r |
| n/r |
Global Warehouse non-same store services metrics: |
|
|
|
|
|
|
|
|
| ||||||
Throughput pallets |
| 1,081 |
|
|
| n/a |
|
|
| 1,188 |
|
| n/r |
| n/a |
Non-same store warehouse services revenue per throughput pallet | $ | 33.57 |
|
| $ | 34.72 |
|
| $ | 30.92 |
|
| n/r |
| n/r |
(1) The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis are the effect of changes in foreign currency exchange rates relative to the comparable prior period.
(2) Refer to our “Real Estate Portfolio” section below for the composition of our non-same store pool.
(n/a = not applicable)
(n/r = not relevant)
| Year Ended December 31, |
| Change | ||||||||||||||
Dollars and units in thousands, except per pallet data | 2022 Actual |
| 2022 Constant |
| 2021 Actual |
| Actual |
| Constant | ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
TOTAL WAREHOUSE SEGMENT |
|
|
|
|
|
|
|
|
| ||||||||
Number of total warehouses |
| 237 |
|
|
|
|
| 241 |
|
| n/a |
|
| n/a |
| ||
Global Warehouse revenue: |
|
|
|
|
|
|
|
|
| ||||||||
Rent and storage | $ | 999,388 |
|
| $ | 1,019,787 |
|
| $ | 876,153 |
|
| 14.1 | % |
| 16.4 | % |
Warehouse services |
| 1,303,583 |
|
|
| 1,332,867 |
|
|
| 1,209,234 |
|
| 7.8 | % |
| 10.2 | % |
Total revenue | $ | 2,302,971 |
|
| $ | 2,352,654 |
|
| $ | 2,085,387 |
|
| 10.4 | % |
| 12.8 | % |
Global Warehouse contribution (NOI) | $ | 636,232 |
|
| $ | 647,885 |
|
| $ | 586,436 |
|
| 8.5 | % |
| 10.5 | % |
Global Warehouse margin |
| 27.6 | % |
|
| 27.5 | % |
|
| 28.1 | % |
| -49 bps |
|
| -58 bps |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Global Warehouse rent and storage metrics: |
|
|
|
|
|
|
|
|
| ||||||||
Average economic occupied pallets |
| 4,318 |
|
|
| n/a |
|
|
| 4,047 |
|
| 6.7 | % |
| n/a |
|
Average physical occupied pallets |
| 3,991 |
|
|
| n/a |
|
|
| 3,701 |
|
| 7.8 | % |
| n/a |
|
Average physical pallet positions |
| 5,431 |
|
|
| n/a |
|
|
| 5,290 |
|
| 2.7 | % |
| n/a |
|
Economic occupancy percentage |
| 79.5 | % |
|
| n/a |
|
|
| 76.5 | % |
| 300 bps |
|
| n/a |
|
Physical occupancy percentage |
| 73.5 | % |
|
| n/a |
|
|
| 70.0 | % |
| 352 bps |
|
| n/a |
|
Total rent and storage revenue per economic occupied pallet | $ | 231.44 |
|
| $ | 236.16 |
|
| $ | 216.48 |
|
| 6.9 | % |
| 9.1 | % |
Total rent and storage revenue per physical occupied pallet | $ | 250.40 |
|
| $ | 255.51 |
|
| $ | 236.72 |
|
| 5.8 | % |
| 7.9 | % |
Global Warehouse services metrics: |
|
|
|
|
|
|
|
|
| ||||||||
Throughput pallets |
| 40,093 |
|
|
| n/a |
|
|
| 39,939 |
|
| 0.4 | % |
| n/a |
|
Total warehouse services revenue per throughput pallet | $ | 32.51 |
|
| $ | 33.24 |
|
| $ | 30.28 |
|
| 7.4 | % |
| 9.8 | % |
|
|
|
|
|
|
|
|
|
| ||||||||
SAME STORE WAREHOUSE |
|
|
|
|
|
|
|
|
| ||||||||
Number of same store warehouses |
| 208 |
|
|
|
|
| 208 |
|
| n/a |
|
| n/a |
| ||
Global Warehouse same store revenue: |
|
|
|
|
|
|
|
|
| ||||||||
Rent and storage | $ | 862,268 |
|
| $ | 877,817 |
|
| $ | 783,256 |
|
| 10.1 | % |
| 12.1 | % |
Warehouse services |
| 1,151,824 |
|
|
| 1,177,011 |
|
|
| 1,109,896 |
|
| 3.8 | % |
| 6.0 | % |
Total same store revenue | $ | 2,014,092 |
|
| $ | 2,054,828 |
|
| $ | 1,893,152 |
|
| 6.4 | % |
| 8.5 | % |
Global Warehouse same store contribution (NOI) | $ | 599,745 |
|
| $ | 609,324 |
|
| $ | 570,831 |
|
| 5.1 | % |
| 6.7 | % |
Global Warehouse same store margin |
| 29.8 | % |
|
| 29.7 | % |
|
| 30.2 | % |
| -37 bps |
|
| -50 bps |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Global Warehouse same store rent and storage metrics: |
|
|
|
|
|
|
|
|
| ||||||||
Average economic occupied pallets |
| 3,879 |
|
|
| n/a |
|
|
| 3,714 |
|
| 4.4 | % |
| n/a |
|
Average physical occupied pallets |
| 3,592 |
|
|
| n/a |
|
|
| 3,394 |
|
| 5.8 | % |
| n/a |
|
Average physical pallet positions |
| 4,821 |
|
|
| n/a |
|
|
| 4,823 |
|
| — | % |
| n/a |
|
Economic occupancy percentage |
| 80.5 | % |
|
| n/a |
|
|
| 77.0 | % |
| 345 bps |
|
| n/a |
|
Physical occupancy percentage |
| 74.5 | % |
|
| n/a |
|
|
| 70.4 | % |
| 413 bps |
|
| n/a |
|
Same store rent and storage revenue per economic occupied pallet | $ | 222.27 |
|
| $ | 226.28 |
|
| $ | 210.88 |
|
| 5.4 | % |
| 7.3 | % |
Same store rent and storage revenue per physical occupied pallet | $ | 240.07 |
|
| $ | 244.40 |
|
| $ | 230.81 |
|
| 4.0 | % |
| 5.9 | % |
Global Warehouse same store services metrics: |
|
|
|
|
|
|
|
|
|
|
| ||||||
Throughput pallets |
| 35,733 |
|
|
| n/a |
|
|
| 36,281 |
|
| (1.5 | )% |
| n/a |
|
Same store warehouse services revenue per throughput pallet | $ | 32.23 |
|
| $ | 32.94 |
|
| $ | 30.59 |
|
| 5.4 | % |
| 7.7 | % |
| Year Ended December 31, |
| Change | ||||||||||||
Dollars and units in thousands, except per pallet data | 2022 Actual |
| 2022 Constant |
| 2021 Actual |
| Actual |
| Constant | ||||||
|
|
|
|
|
|
|
|
|
| ||||||
|
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| ||||||
NON-SAME STORE WAREHOUSE |
|
|
|
|
|
|
|
|
| ||||||
Number of non-same store warehouses(2) |
| 29 |
|
|
|
|
| 33 |
|
| n/a |
| n/a | ||
Global Warehouse non-same store revenue: |
|
|
|
|
|
|
|
|
| ||||||
Rent and storage | $ | 137,119 |
|
| $ | 141,970 |
|
| $ | 92,897 |
|
| n/r |
| n/r |
Warehouse services |
| 151,760 |
|
|
| 155,855 |
|
|
| 99,338 |
|
| n/r |
| n/r |
Total non-same store revenue | $ | 288,879 |
|
| $ | 297,825 |
|
| $ | 192,235 |
|
| n/r |
| n/r |
Global Warehouse non-same store contribution (NOI) | $ | 36,487 |
|
| $ | 38,559 |
|
| $ | 15,605 |
|
| n/r |
| n/r |
Global Warehouse non-same store margin |
| 12.6 | % |
|
| 12.9 | % |
|
| 8.1 | % |
| n/r |
| n/r |
|
|
|
|
|
|
|
|
|
| ||||||
Global Warehouse non-same store rent and storage metrics: |
|
|
|
|
|
|
|
| |||||||
Average economic occupied pallets |
| 439 |
|
|
| n/a |
|
|
| 333 |
|
| n/r |
| n/a |
Average physical occupied pallets |
| 399 |
|
|
| n/a |
|
|
| 308 |
|
| n/r |
| n/a |
Average physical pallet positions |
| 610 |
|
|
| n/a |
|
|
| 467 |
|
| n/r |
| n/a |
Economic occupancy percentage |
| 71.9 | % |
|
| n/a |
|
|
| 71.3 | % |
| n/r |
| n/a |
Physical occupancy percentage |
| 65.5 | % |
|
| n/a |
|
|
| 65.8 | % |
| n/r |
| n/a |
Non-same store rent and storage revenue per economic occupied pallet | $ | 312.48 |
|
| $ | 323.53 |
|
| $ | 278.91 |
|
| n/r |
| n/r |
Non-same store rent and storage revenue per physical occupied pallet | $ | 343.36 |
|
| $ | 355.51 |
|
| $ | 301.95 |
|
| n/r |
| n/r |
Global Warehouse non-same store services metrics: |
|
|
|
|
|
|
|
|
| ||||||
Throughput pallets |
| 4,360 |
|
|
| n/a |
|
|
| 3,658 |
|
| n/r |
| n/a |
Non-same store warehouse services revenue per throughput pallet | $ | 34.81 |
|
| $ | 35.75 |
|
| $ | 27.16 |
|
| n/r |
| n/r |
(1) The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis are the effect of changes in foreign currency exchange rates relative to the comparable prior period.
(2) Refer to our “Real Estate Portfolio” section below for the composition of our non-same store pool.
(n/a = not applicable)
Fixed Commitment Rent and Storage Revenue
As of December 31, 2022, $419.5 million of the Company’s annualized rent and storage revenue were derived from customers with fixed commitment storage contracts. This compares to $396.4 million at the end of the third quarter of 2022 and $356.5 million at the end of the fourth quarter of 2021. We continue to make progress on commercializing business under this type of arrangement. On a combined pro forma basis, assuming a full twelve months of acquisitions revenue, 41.9% of rent and storage revenue was generated from fixed commitment storage contracts.
Economic and Physical Occupancy
Contracts that contain fixed commitments are designed to ensure the Company’s customers have space available when needed. For the fourth quarter of 2022, economic occupancy for the total warehouse segment was 83.8% and warehouse segment same store pool was 85.0%, representing a 568 basis point and 531 basis point increase above physical occupancy, respectively. Economic occupancy for the total warehouse segment increased 601 basis points, and the warehouse segment same store pool increased 634 basis points as compared to the fourth quarter of 2021. The growth in occupancy reflects our customers’ increased food production levels throughout 2022.
Real Estate Portfolio
As of December 31, 2022, the Company’s portfolio consists of 242 facilities. The Company ended the fourth quarter of 2022 with 237 facilities in its Global Warehouse segment portfolio and five facilities in its Third-party managed segment. The same store population consists of 208 facilities for the quarter ended December 31, 2022. The remaining 29 non-same store population includes the 11 facilities that were acquired in connection with the Bowman Stores, Brighton, ColdCo, De Bruyn Cold Storage, KMT Brrr!, Lago Cold Stores, Liberty Freezers and Newark acquisitions, 13 facilities in expansion or redevelopment, a temporarily leased facility in Australia, two facilities we previously leased and purchased during 2022, a facility in which we ceased operations during the first quarter of 2022 in order to prepare for leasing to a third-party, and a leased facility in which we ceased operations during the fourth quarter of 2022 in anticipation of the upcoming lease maturity.
Balance Sheet Activity and Liquidity
As of December 31, 2022, the Company had total liquidity of approximately $681.6 million, including cash and capacity on its revolving credit facility. Total debt outstanding was $3.3 billion (inclusive of $248.7 million of financing leases/sale lease-backs and exclusive of unamortized deferred financing fees), of which 93% was in an unsecured structure. At quarter end, net debt to pro forma Core EBITDA was approximately 6.6x. The Company’s total debt outstanding includes $3.1 billion of real estate debt, which excludes sale-leaseback and capitalized lease obligations. The Company’s real estate debt has a remaining weighted average term of 5.7 years and carries a weighted average contractual interest rate of 3.57%. As of December 31, 2022, 85% of the Company’s total debt outstanding was at a fixed rate, inclusive of hedged variable-rate for fixed-rate debt. The Company has no material debt maturities until 2026, inclusive of extension options.
Dividend
On December 6, 2022, the Company’s Board of Directors declared a dividend of $0.22 per share for the fourth quarter of 2022, which was paid on January 13, 2022 to common stockholders of record as of December 31, 2022.
2023 Outlook
The Company announced its 2023 annual AFFO per share guidance to be within the range of $1.14 - $1.24. Refer to page 42 of our financial supplement for the details of our annual guidance. The Company’s guidance is provided for informational purposes based on current plans and assumptions and is subject to change. The ranges for these metrics do not include the impact of acquisitions, dispositions, or capital markets activity beyond that which has been previously announced.
Investor Webcast and Conference Call
The Company will hold a webcast and conference call on Thursday, February 16, 2023 at 5:00 p.m. Eastern Time to discuss its fourth quarter 2022 results. A live webcast of the call will be available via the Investors section of Americold Realty Trust’s website at www.americold.com. To listen to the live webcast, please go to the site at least five minutes prior to the scheduled start time in order to register, download and install any necessary audio software. Shortly after the call, a replay of the webcast will be available for 90 days on the Company’s website.
The conference call can also be accessed by dialing 1-877-407-3982 or 1-201-493-6780. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID# 13734551. The telephone replay will be available starting shortly after the call until March 2, 2023.
The Company’s supplemental package will be available prior to the conference call in the Investors section of the Company’s website at http://ir.americold.com.
About the Company
Americold is the world’s largest publicly traded REIT focused on the ownership, operation, acquisition and development of temperature-controlled warehouses. Based in Atlanta, Georgia, Americold owns and operates 242 temperature-controlled warehouses, with approximately 1.4 billion refrigerated cubic feet of storage, in North America, Europe, Asia-Pacific, and South America. Americold’s facilities are an integral component of the supply chain connecting food producers, processors, distributors and retailers to consumers.
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, including FFO, core FFO, AFFO, EBITDAre, Core EBITDA; same store segment revenue and contribution (NOI); real estate debt and maintenance capital expenditures. Definitions of these non-GAAP metrics are included beginning on page 43 of our financial supplement, and reconciliations of these non-GAAP measures to their most comparable GAAP metrics are included herein. Each of the non-GAAP measures included in this report has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of the Company’s results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the Company’s presentation of non-GAAP measures in this report may not be comparable to similarly titled measures disclosed by other companies, including other REITs.
Forward-Looking Statements
This document contains statements about future events and expectations that constitute forward-looking statements. Forward-looking statements are based on our beliefs, assumptions and expectations of our future financial and operating performance and growth plans, taking into account the information currently available to us. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause our actual results to differ materially from the expectations of future results we express or imply in any forward-looking statements, and you should not place undue reliance on such statements. Factors that could contribute to these differences include the following: the impact of supply chain disruptions, including, among others, the impact on labor availability, raw material availability, manufacturing and food production; construction materials and transportation; uncertainties and risks related to public health crises, including the ongoing COVID-19 pandemic; adverse economic or real estate developments in our geographic markets or the temperature-controlled warehouse industry; rising interest rates and inflation in operating costs, including as a result of the COVID-19 pandemic; general economic conditions; labor and power costs; labor shortages; risks associated with the ownership of real estate generally and temperature-controlled warehouses in particular; acquisition risks, including the failure to identify or complete attractive acquisitions or the failure of acquisitions to perform in accordance with projections and to realize anticipated cost savings and revenue improvements; our failure to realize the intended benefits from our recent acquisitions, and including synergies, or disruptions to our plans and operations or unknown or contingent liabilities related to our recent acquisitions; risks related to expansions of existing properties and developments of new properties, including failure to meet targeted completion dates and budgeted or stabilized returns within expected time frames, or at all, in respect thereof; risks related to our joint ventures; a failure of our information technology systems, systems conversions and integrations, cybersecurity attacks or a breach of our information security systems, networks or processes could cause business disruptions or loss of confidential information; risks related to privacy and data security concerns, and data collection and transfer restrictions and related foreign regulations; defaults or non-renewals of significant customer contracts, including as a result of the ongoing COVID-19 pandemic; uncertainty of revenues, given the nature of our customer contracts; our failure to obtain necessary outside financing; risks related to, or restrictions contained in, our debt financings; decreased storage rates or increased vacancy rates; risks related to current and potential international operations and properties; difficulties in expanding our operations into new markets, including international markets; risks related to the partial ownership of properties, including as a result of our lack of control over such investments and the failure of such entities to perform in accordance with projections; our failure to maintain our status as a REIT; possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently or previously owned by us; financial market fluctuations; actions by our competitors and their increasing ability to compete with us; changes in applicable governmental regulations and tax legislation, including in the international markets; geopolitical conflicts, such as the ongoing conflict between Russia and Ukraine; additional risks with respect to the addition of European operations and properties; changes in real estate and zoning laws and increases in real property tax rates; our relationship with our associates, including the occurrence of any work stoppages or any disputes under our collective bargaining agreements and employment related litigation; liabilities as a result of our participation in multi-employer pension plans; uninsured losses or losses in excess of our insurance coverage; the potential liabilities, costs and regulatory impacts associated with our in-house trucking services and the potential disruptions associated with our use of third-party trucking service providers to provide transportation services to our customers; the cost and time requirements as a result of our operation as a publicly traded REIT; changes in foreign currency exchange rates; the impact of anti-takeover provisions in our constituent documents and under Maryland law, which could make an acquisition of us more difficult, limit attempts by our stockholders to replace our directors and affect the price of our common stock, $0.01 par value per share, of our common stock; and the potential dilutive effect of our common stock offerings.
Words such as “anticipates,” “believes,” “continues,” “estimates,” “expects,” “goal,” “objectives,” “intends,” “may,” “opportunity,” “plans,” “potential,” “near-term,” “long-term,” “projections,” “assumptions,” “projects,” “guidance,” “forecasts,” “outlook,” “target,” “trends,” “should,” “could,” “would,” “will” and similar expressions are intended to identify such forward-looking statements. Examples of forward-looking statements included in this document include, among others, statements about our expected acquisition and expected expansion and development pipeline and our targeted return on invested capital on expansion and development opportunities. We qualify any forward-looking statements entirely by these cautionary factors. Other risks, uncertainties and factors, including those discussed under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021 and in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, could cause our actual results to differ materially from those projected in any forward-looking statements we make. We assume no obligation to update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Contacts:
Americold Realty Trust, Inc.
Investor Relations
Telephone: 678-459-1959
Email: investor.relations@americold.com
| |||||||
Americold Realty Trust, Inc. and Subsidiaries | |||||||
Consolidated Balance Sheets | |||||||
(In thousands, except shares and per share amounts) | |||||||
| December 31, |
| December 31, | ||||
| 2022 |
| 2021 | ||||
Assets |
|
|
| ||||
Property, buildings and equipment: |
|
|
| ||||
Land | $ | 786,975 |
|
| $ | 807,495 |
|
Buildings and improvements |
| 4,245,607 |
|
|
| 4,152,763 |
|
Machinery and equipment |
| 1,407,874 |
|
|
| 1,352,399 |
|
Assets under construction |
| 526,811 |
|
|
| 450,153 |
|
|
| 6,967,267 |
|
|
| 6,762,810 |
|
Accumulated depreciation |
| (1,901,450 | ) |
|
| (1,634,909 | ) |
Property, buildings and equipment – net |
| 5,065,817 |
|
|
| 5,127,901 |
|
|
|
|
| ||||
Operating lease right-of-use assets |
| 352,553 |
|
|
| 377,536 |
|
Accumulated depreciation – operating leases |
| (76,334 | ) |
|
| (57,483 | ) |
Operating leases – net |
| 276,219 |
|
|
| 320,053 |
|
|
|
|
| ||||
Financing leases: |
|
|
| ||||
Buildings and improvements |
| 13,546 |
|
|
| 13,552 |
|
Machinery and equipment |
| 127,009 |
|
|
| 146,341 |
|
|
| 140,555 |
|
|
| 159,893 |
|
Accumulated depreciation – financing leases |
| (57,626 | ) |
|
| (58,165 | ) |
Financing leases – net |
| 82,929 |
|
|
| 101,728 |
|
Cash, cash equivalents and restricted cash |
| 53,063 |
|
|
| 82,958 |
|
Accounts receivable – net of allowance of $15,951 and $18,755 at December 31, 2022 and 2021, respectively |
| 430,042 |
|
|
| 380,014 |
|
Identifiable intangible assets – net |
| 925,223 |
|
|
| 980,966 |
|
Goodwill |
| 1,033,637 |
|
|
| 1,072,980 |
|
Investments in partially owned entities |
| 78,926 |
|
|
| 37,458 |
|
Other assets |
| 158,705 |
|
|
| 112,139 |
|
Total assets | $ | 8,104,561 |
|
| $ | 8,216,197 |
|
Liabilities and equity |
|
|
| ||||
Liabilities: |
|
|
| ||||
Borrowings under revolving line of credit | $ | 500,052 |
|
| $ | 399,314 |
|
Accounts payable and accrued expenses |
| 557,540 |
|
|
| 559,412 |
|
Mortgage notes, senior unsecured notes and term loans – net of deferred financing costs of $13,044 and $11,050 in the aggregate, at December 31, 2022 and 2021, respectively |
| 2,569,281 |
|
|
| 2,443,806 |
|
Sale-leaseback financing obligations |
| 171,089 |
|
|
| 178,817 |
|
Financing lease obligations |
| 77,561 |
|
|
| 97,633 |
|
Operating lease obligations |
| 264,634 |
|
|
| 301,765 |
|
Unearned revenue |
| 32,046 |
|
|
| 26,143 |
|
Pension and postretirement benefits |
| 1,531 |
|
|
| 2,843 |
|
Deferred tax liability – net |
| 135,098 |
|
|
| 169,209 |
|
Multiemployer pension plan withdrawal liability |
| 7,851 |
|
|
| 8,179 |
|
Total liabilities |
| 4,316,683 |
|
|
| 4,187,121 |
|
Equity |
|
|
| ||||
Stockholders’ equity: |
|
|
| ||||
Common stock, $0.01 par value – 500,000,000 authorized shares; 269,814,956 and 268,282,592 issued and outstanding at December 31, 2022 and 2021, respectively |
| 2,698 |
|
|
| 2,683 |
|
Paid-in capital |
| 5,191,969 |
|
|
| 5,171,690 |
|
Accumulated deficit and distributions in excess of net earnings |
| (1,415,198 | ) |
|
| (1,157,888 | ) |
Accumulated other comprehensive (loss) income |
| (6,050 | ) |
|
| 4,522 |
|
Total stockholders’ equity |
| 3,773,419 |
|
|
| 4,021,007 |
|
Noncontrolling interests: |
|
|
| ||||
Noncontrolling interests in operating partnership |
| 14,459 |
|
|
| 8,069 |
|
Total equity |
| 3,787,878 |
|
|
| 4,029,076 |
|
|
|
|
| ||||
Total liabilities and equity | $ | 8,104,561 |
|
| $ | 8,216,197 |
|
| |||||||||||||||
Americold Realty Trust, Inc. and Subsidiaries | |||||||||||||||
Consolidated Statements of Operations | |||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||
| Three Months Ended December 31, |
| Year Ended December 31, | ||||||||||||
| 2022 |
| 2021 |
| 2022 |
| 2021 | ||||||||
Revenues: |
|
|
|
|
|
|
| ||||||||
Rent, storage and warehouse services | $ | 598,690 |
|
| $ | 554,155 |
|
| $ | 2,302,971 |
|
| $ | 2,085,387 |
|
Transportation services |
| 76,190 |
|
|
| 78,041 |
|
|
| 313,358 |
|
|
| 312,092 |
|
Third-party managed services |
| 46,624 |
|
|
| 84,284 |
|
|
| 298,406 |
|
|
| 317,311 |
|
Total revenues |
| 721,504 |
|
|
| 716,480 |
|
|
| 2,914,735 |
|
|
| 2,714,790 |
|
Operating expenses: |
|
|
|
|
|
|
| ||||||||
Rent, storage and warehouse services cost of operations |
| 426,363 |
|
|
| 403,271 |
|
|
| 1,666,739 |
|
|
| 1,498,951 |
|
Transportation services cost of operations |
| 61,738 |
|
|
| 70,869 |
|
|
| 265,956 |
|
|
| 282,716 |
|
Third-party managed services cost of operations |
| 45,177 |
|
|
| 80,946 |
|
|
| 286,077 |
|
|
| 303,347 |
|
Depreciation and amortization |
| 82,467 |
|
|
| 87,601 |
|
|
| 331,446 |
|
|
| 319,840 |
|
Selling, general and administrative |
| 60,073 |
|
|
| 49,004 |
|
|
| 231,067 |
|
|
| 182,076 |
|
Acquisition, litigation and other, net |
| 11,899 |
|
|
| 20,567 |
|
|
| 32,511 |
|
|
| 51,578 |
|
Impairment of indefinite and long-lived assets |
| 764 |
|
|
| — |
|
|
| 7,380 |
|
|
| 3,312 |