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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) February 22, 2024
 
Americold Realty Trust, Inc.
(Exact name of registrant as specified in its charter)
 
Maryland
001-34723
93-0295215
(State or other jurisdiction
of incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
 
10 Glenlake Parkway, South Tower, Suite 600

Atlanta, Georgia 30328
(Address of principal executive offices)
(Zip Code)
(678) 441-1400
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange
on which registered
Common Stock, $0.01 par value per share COLD New York Stock Exchange




Item 2.02 — Results of Operations and Financial Condition.
On February 22, 2024, Americold Realty Trust, Inc. (the “Company”) issued a press release announcing the Company’s financial results for the fourth quarter and year ended December 31, 2023. A copy of the press release as well as a copy of the supplemental information referred to in the press release are available on the Company’s website and are attached hereto as Exhibits 99.1 and 99.2 and incorporated herein by reference.     
The foregoing information is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition”. The information in Item 2.02 of this Current Report on Form 8-K and the exhibits furnished therewith shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be or be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

Item 7.01 — Regulation FD Disclosure.

The information set forth in Item 2.02 is incorporated by reference into this Item 7.01. The information in Items 2.20 and 7.01 of this Current Report on Form 8-K and the exhibits furnished therewith shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that Section, and shall not be or be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

Item 9.01 — Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. Description
Press Release dated February 22, 2024 for the fourth quarter and year ended December 31, 2023.
Supplemental Information Package for the fourth quarter and year ended December 31, 2023.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)





SIGNATURES
    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: February 22, 2024
AMERICOLD REALTY TRUST, INC.
By:
/s/ Jay Wells
Name: Jay Wells
Title: Chief Financial Officer and Executive Vice President


EX-99.1 2 q42023-pressrelease.htm EX-99.1 Document

Exhibit 99.1
AMERICOLD ANNOUNCES FOURTH QUARTER AND FULL YEAR 2023 RESULTS
Delivers Double-Digit AFFO per Share Growth for Full Year 2023

Achieves Record Setting Same-Store Economic Occupancy and Fixed Commitments in Full Year 2023
Delivers Strong Same-Store Warehouse Services NOI margins in Fourth Quarter 2023
Announces Two Inaugural Developments with Canadian Pacific and DP World Strategic Partnerships

Atlanta, GA, February 22, 2024 - Americold Realty Trust, Inc. (NYSE: COLD) (the “Company”), a global leader in temperature-controlled logistics, real estate, and value-added services focused on the ownership, operation, acquisition and development of temperature-controlled warehouses, today announced financial and operating results for the fourth quarter and full year ended December 31, 2023.

George Chappelle, Chief Executive Officer of Americold Realty Trust, stated, “We are pleased with our fourth quarter results where we delivered AFFO per share of $0.38, an increase of over 31% versus the prior year’s quarter. This performance was driven by our global warehouse same store pool, which generated NOI growth of 7.9%, on a constant currency basis. Our strong same-store pool results were driven by our pricing initiatives, record-setting fixed commit levels, aggressive variable cost management, and improved Warehouse Services efficiencies. In the face of a challenging throughput environment, we continued to accelerate our progress and delivered Warehouse Services margins of 6.1% during the fourth quarter of 2023, which is a 330 basis point improvement versus the third quarter of 2023. Additionally, this quarter, we derived 52.2% of rent and storage revenue from fixed commitment storage contracts, which is another record-setting level for Americold.”

“For the full year, we delivered AFFO per share of $1.27, an increase of 14% versus the prior year. When further adjusted for the impact of the cyber event in the second quarter of 2023 and the exit of a large retail customer in our third-party managed business in the fourth quarter 2022, this year over year AFFO per share growth rate would have been 19%. This performance was primarily driven by our global warehouse same store pool, which generated NOI growth of 12.8%, on a constant currency basis. Additionally, our 2023 full year same store economic occupancy was 84.3%, which is a full year record for Americold, and was almost 400 basis points higher than our previous record, which demonstrates that our infrastructure and value-added services continue to remain in high demand.”

“Lastly, we are excited to announce an approximately $130 million greenfield development in Kansas City, Missouri, as part of our collaboration with Canadian Pacific Kansas City, one of North America's largest railroad companies. Additionally, in the fourth quarter, we announced our plans through our RSA JV to build a conventional, multi-customer major market distribution center in Dubai at DP World's Port Jebel Ali Free Zone for $35 million. As we move into 2024, we look forward to progressing on these new developments. These partnerships with CPKC and DP World illustrate Americold's unique ability to create value by collaborating with global leaders in adjacent areas of the supply chain.”




Fourth Quarter 2023 Highlights
•Total revenue decreased 5.9% to $679.3 million.
•Total NOI increased 11.5% to $209.8 million.    
•Net loss of $226.8 million, or $0.80 loss per diluted common share.
•Core EBITDA increased 17.1% to $160.3 million, and increased 17.6% on a constant currency basis.
•Core FFO of $84.8 million, or $0.30 per diluted common share.
•AFFO of $108.0 million, or $0.38 per diluted common share.
•Global Warehouse segment revenue increased 2.3% to $612.3 million.
•Global Warehouse segment NOI increased 14.4% to $197.1 million.
•Global Warehouse segment same store revenue increased 0.6% on an actual basis, or 1.1% on a constant currency basis, Global Warehouse segment same store NOI increased by 7.3%, or 7.9% on a constant currency basis.
•On October 5, we completed the acquisition of Safeway Freezers, a cold storage facility located in Vineland, New Jersey for approximately $24.0 million. The Company expects to invest an additional $13.0 million in necessary capital expenditures to meet the Americold Operating System standards. The new facility consists of 6.0 million cubic feet and 16,800 pallet positions.
•Completed the expansion project for our site in Plainville, CT for approximately 161.0 million. This site consists of 12.1 million cubic feet and 31,000 pallet positions.
•Announcement of Kansas City, Missouri development as part of our collaboration with Canadian Pacific - Kansas City, or CPKC, one of North Americas’s largest railroad companies. This facility will consist of 13.5 million cubic feet and 22,000 pallet positions.
Full year to Date 2023 Highlights
•Total revenue decreased 8.3% to $2.7 billion.
•Total NOI increased 10.7% to $770.6 million.
•Net loss of $336.3 million, or $1.22 loss per diluted common share.
•Core EBITDA increased 14.5% to $572.1 million, or 15.7% on a constant currency basis.
•Core FFO of $277.7 million, or $1.00 per diluted common share.
•AFFO of $351.6 million, or $1.27 per diluted common share.
•Global Warehouse segment revenue increased 3.8% to $2.4 billion.
•Global Warehouse segment NOI increased 13.6% to $722.6 million.
•Global Warehouse segment same store revenue increased 3.4%, or 4.3% on a constant currency basis, Global Warehouse segment same store NOI increased 11.8%, or 12.8% on a constant currency basis.
Fourth Quarter 2023 Total Company Financial Results
Total revenue for the fourth quarter of 2023 was $679.3 million, a 5.9% decrease, which was driven by decreases in our Third-party managed and Transportation segments, largely offset by growth within our Global Warehouse segment. The growth within our Global Warehouse segment was driven by incremental revenue from recently completed expansion and development projects, our



pricing initiatives and rate escalations, partially offset by a decline in throughput due to consumer buying habits, and the unfavorable impact of foreign currency translation.
Total NOI for the fourth quarter of 2023 was $209.8 million, an increase of 11.5% from the same quarter of the prior year. This increase is a result of the improvement in our Global Warehouse segment revenue as previously mentioned, paired with strong variable cost control driving higher warehouse services margins despite the challenging throughput environment.
For the fourth quarter of 2023, the Company reported net loss of $226.8 million, or $0.80 loss per diluted share, compared to net income of $3.0 million, or $0.01 earnings per diluted share, for the comparable quarter of the prior year.
Core EBITDA was $160.3 million for the fourth quarter of 2023, compared to $136.8 million for the comparable quarter of the prior year. This reflects a 17.1% increase over prior year on an actual basis, and 17.6% on a constant currency basis. The increase is due to the same factors driving the increase in NOI mentioned above, as well as a slight reduction in SG&A costs.
For the fourth quarter of 2023, Core FFO was $84.8 million, or $0.30 per diluted share, compared to $70.2 million, or $0.26 per diluted share, for the fourth quarter of 2022.
For the fourth quarter of 2023, AFFO was $108.0 million, or $0.38 per diluted share, compared to $78.2 million, or $0.29 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 2023 Global Warehouse Segment Results
For the fourth quarter of 2023, Global Warehouse segment revenue was $612.3 million, an increase of $13.6 million, or 2.3%, compared to $598.7 million for the fourth quarter of 2022. This growth was principally driven by recently completed development projects and acquisitions. Additionally, our same-store pool contributed growth resulting from our pricing initiatives and rate escalations. This was partially offset by lower throughput pallets due to consumer buying habits and the unfavorable impact of foreign currency translation.
Global Warehouse segment contribution (NOI) was $197.1 million for the fourth quarter of 2023 as compared to $172.3 million for the fourth quarter of 2022, an increase of $24.8 million or 14.4%. Global Warehouse segment contribution (NOI) increased due to the drivers of warehouse revenue increase mentioned above. Global Warehouse segment margin was 32.2% for the fourth quarter of 2023, a 341 basis point increase compared to the same quarter of the prior year, driven by improvement in our warehouse services margin.
We had 219 same store warehouses for the three months and year ended December 31, 2023. The following table presents revenues, 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 and year ended December 31, 2023. 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 2023 Actual
2023 Constant Currency(1)
2022 Actual Actual Constant Currency
TOTAL WAREHOUSE SEGMENT
Number of total warehouses 240 240 n/a n/a
Rent and storage $ 276,641  $ 278,493  $ 267,031  3.6  % 4.3  %
Warehouse services 335,621  336,331  331,659  1.2  % 1.4  %
Total revenue $ 612,262  $ 614,824  $ 598,690  2.3  % 2.7  %
Global Warehouse contribution (NOI) $ 197,102  $ 197,967  $ 172,327  14.4  % 14.9  %
Global Warehouse margin 32.2  % 32.2  % 28.8  % 341 bps 341 bps
Global Warehouse rent and storage metrics:
Average economic occupied pallets 4,541  n/a 4,537  0.1  % n/a
Average physical occupied pallets 4,041  n/a 4,229  (4.4) % n/a
Average physical pallet positions 5,493  n/a 5,415  1.4  % n/a
Economic occupancy percentage 82.7  % n/a 83.8  % -112 bps n/a
Physical occupancy percentage 73.6  % n/a 78.1  % -453 bps n/a
Total rent and storage revenue per average economic occupied pallet $ 60.92  $ 61.33  $ 58.86  3.5  % 4.2  %
Total rent and storage revenue per average physical occupied pallet $ 68.46  $ 68.92  $ 63.14  8.4  % 9.1  %
Global Warehouse services metrics:
Throughput pallets 9,384  n/a 9,963  (5.8) % n/a
Total warehouse services revenue per throughput pallet $ 35.77  $ 35.84  $ 33.29  7.4  % 7.7  %
SAME STORE WAREHOUSE
Number of same store warehouses 219 219 n/a n/a
Global Warehouse same store revenue:
Rent and storage $ 254,642  $ 256,614  $ 252,984  0.7  % 1.4  %
Warehouse services 319,511  320,399  317,648  0.6  % 0.9  %
Total same store revenue $ 574,153  $ 577,013  $ 570,632  0.6  % 1.1  %
Global Warehouse same store contribution (NOI) $ 185,124  $ 186,061  $ 172,503  7.3  % 7.9  %
Global Warehouse same store margin 32.2  % 32.2  % 30.2  % 201 bps 202 bps
Global Warehouse same store rent and storage metrics:
Average economic occupied pallets 4,216  n/a 4,299  (1.9) % n/a
Average physical occupied pallets 3,752  n/a 4,015  (6.6) % n/a
Average physical pallet positions 5,037  n/a 5,104  (1.3) % n/a
Economic occupancy percentage 83.7  % n/a 84.2  % -53 bps n/a
Physical occupancy percentage 74.5  % n/a 78.7  % -418 bps n/a
Same store rent and storage revenue per average economic occupied pallet $ 60.40  $ 60.87  $ 58.85  2.6  % 3.4  %
Same store rent and storage revenue per average physical occupied pallet $ 67.87  $ 68.39  $ 63.01  7.7  % 8.5  %
Global Warehouse same store services metrics:
Throughput pallets 8,684  n/a 9,396  (7.6) % n/a
Same store warehouse services revenue per throughput pallet $ 36.79  $ 36.90  $ 33.81  8.8  % 9.1  %



Three Months Ended December 31, Change
Dollars and units in thousands, except per pallet data 2023 Actual
2023 Constant Currency(1)
2022 Actual Actual Constant Currency
NON-SAME STORE WAREHOUSE
Number of non-same store warehouses(2)
21 21 n/a n/a
Global Warehouse non-same store revenue:
Rent and storage $ 21,999  $ 21,879  $ 14,047  n/r n/r
Warehouse services 16,110  15,932  14,011  n/r n/r
Total non-same store revenue $ 38,109  $ 37,811  $ 28,058  n/r n/r
Global Warehouse non-same store contribution (NOI) $ 11,978  $ 11,906  $ (176) n/r n/r
Global Warehouse non-same store margin 31.4  % 31.5  % (0.6) % n/r n/r
Global Warehouse non-same store rent and storage metrics:
Average economic occupied pallets 325  n/a 238  n/r n/a
Average physical occupied pallets 289  n/a 214  n/r n/a
Average physical pallet positions 456  n/a 311  n/r n/a
Economic occupancy percentage 71.3  % n/a 76.5  % n/r n/a
Physical occupancy percentage 63.4  % n/a 68.8  % n/r n/a
Non-same store rent and storage revenue per average economic occupied pallet $ 67.69  $ 67.32  $ 59.02  n/r n/r
Non-same store rent and storage revenue per average physical occupied pallet $ 76.12  $ 75.71  $ 65.64  n/r n/r
Global Warehouse non-same store services metrics:
Throughput pallets 700  n/a 567  n/r n/a
Non-same store warehouse services revenue per throughput pallet $ 23.01  $ 22.76  $ 24.71  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 in thousands 2023 Actual 2023 Constant Currency(1) 2022 Actual Actual Constant currency
TOTAL WAREHOUSE SEGMENT
Number of total warehouses 240 240 n/a n/a
Global Warehouse revenue:
Rent and storage $ 1,101,741  $ 1,113,052  $ 999,388  10.2  % 11.4  %
Warehouse services 1,289,348  1,299,295  1,303,583  (1.1) % (0.3) %
Total revenue $ 2,391,089  $ 2,412,347  $ 2,302,971  3.8  % 4.7  %
Global Warehouse contribution (NOI) $ 722,603  $ 728,579  $ 636,232  13.6  % 14.5  %
Global Warehouse margin 30.2  % 30.2  % 27.6  % 259 bps 258 bps
Units in thousands except per pallet data
Global Warehouse rent and storage metrics:
Average economic occupied pallets 4,546  n/a 4,318  5.3  % n/a
Average physical occupied pallets 4,120  n/a 3,991  3.2  % n/a
Average physical pallet positions 5,442  n/a 5,431  0.2  % n/a
Economic occupancy percentage 83.5  % n/a 79.5  % 403 bps n/a
Physical occupancy percentage 75.7  % n/a 73.5  % 222 bps n/a
Total rent and storage revenue per average economic occupied pallet $ 242.35  $ 244.84  $ 231.44  4.7  % 5.8  %
Total rent and storage revenue per average physical occupied pallet $ 267.41  $ 270.16  $ 250.40  6.8  % 7.9  %
Global Warehouse services metrics:
Throughput pallets 37,524  n/a 40,093  (6.4) % n/a
Total warehouse services revenue per throughput pallet $ 34.36  $ 34.63  $ 32.51  5.7  % 6.5  %
SAME STORE WAREHOUSE
Number of same store warehouses 219 219 n/a n/a
Global Warehouse same store revenue:
Rent and storage $ 1,024,515  $ 1,035,596  $ 944,102  8.5  % 9.7  %
Warehouse services 1,233,344  1,243,103  1,240,378  (0.6) % 0.2  %
Total same store revenue $ 2,257,859  $ 2,278,699  $ 2,184,480  3.4  % 4.3  %
Global Warehouse same store contribution (NOI) $ 708,521  $ 714,581  $ 633,714  11.8  % 12.8  %
Global Warehouse same store margin 31.4  % 31.4  % 29.0  % 237 bps 235 bps
Units in thousands except per pallet data
Global Warehouse same store rent and storage metrics:
Average economic occupied pallets 4,268  n/a 4,099  4.1  % n/a
Average physical occupied pallets 3,877  n/a 3,788  2.3  % n/a
Average physical pallet positions 5,065  n/a 5,128  (1.2) % n/a
Economic occupancy percentage 84.3  % n/a 79.9  % 433 bps n/a
Physical occupancy percentage 76.5  % n/a 73.9  % 268 bps n/a
Same store rent and storage revenue per average economic occupied pallet $ 240.05  $ 242.64  $ 230.32  4.2  % 5.3  %
Same store rent and storage revenue per average physical occupied pallet $ 264.25  $ 267.11  $ 249.23  6.0  % 7.2  %
Global Warehouse same store services metrics:
Throughput pallets 35,227  n/a 37,841  (6.9) % n/a
Same store warehouse services revenue per throughput pallet $ 35.01  $ 35.29  $ 32.78  6.8  % 7.7  %



Year Ended December 31, Change
Dollars in thousands 2023 Actual 2023 Constant Currency(1) 2022 Actual Actual Constant currency
NON-SAME STORE WAREHOUSE
Number of non-same store warehouses(2)
21 21 n/a n/a
Global Warehouse non-same store revenue:
Rent and storage $ 77,226  $ 77,456  $ 55,286  n/r n/r
Warehouse services 56,004  56,192  63,205  n/r n/r
Total non-same store revenue $ 133,230  $ 133,648  $ 118,491  n/r n/r
Global Warehouse non-same store contribution (NOI) $ 14,082  $ 13,998  $ 2,518  n/r n/r
Global Warehouse non-same store margin 10.6  % 10.5  % 2.1  % n/r n/r
Units in thousands except per pallet data
Global Warehouse non-same store rent and storage metrics:
Average economic occupied pallets 278  n/a 219  n/r n/a
Average physical occupied pallets 243  n/a 203  n/r n/a
Average physical pallet positions 377  n/a 303  n/r n/a
Economic occupancy percentage 73.7  % n/a 72.3  % n/r n/a
Physical occupancy percentage 64.5  % n/a 67.0  % n/r n/a
Non-same store rent and storage revenue per average economic occupied pallet $ 277.79  $ 278.62  $ 252.45  n/r n/r
Non-same store rent and storage revenue per average physical occupied pallet $ 317.80  $ 318.75  $ 272.34  n/r n/r
Global Warehouse non-same store services metrics:
Throughput pallets 2,297  n/a 2,250  n/r n/a
Non-same store warehouse services revenue per throughput pallet $ 24.38  $ 24.46  $ 28.09  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)


Fixed Commitment Rent and Storage Revenue
As of December 31, 2023, $576.8 million of the Company’s annualized rent and storage revenue were derived from customers with fixed commitment storage contracts. This compares to $550.7 million at the end of the third quarter of 2023 and $419.5 million at the end of the fourth quarter of 2022. 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, 52.2% 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 2023, economic occupancy for the total warehouse segment was 82.7% and warehouse segment same store pool was 83.7%, representing a 910 basis point and 921 basis point increase above physical occupancy, respectively. Economic occupancy for the total warehouse segment decreased 112 basis points, and the warehouse segment same store pool decreased 53 basis points as compared to the fourth quarter of 2022. The reduction in occupancy reflects the ramp in manufacturer production during the fourth quarter of 2022 as labor improved, which did not recur in 2023.




Real Estate Portfolio
As of December 31, 2023, the Company’s portfolio consists of 245 facilities. The Company ended the fourth quarter of 2023 with 240 facilities in its Global Warehouse segment portfolio and five facilities in its Third-party managed segment. The same store population consists of 219 facilities for the quarter ended December 31, 2023. The remaining 21 non-same store population consists of: three sites acquired through acquisition, 12 sites in the expansion and development phase, three leased sites that we purchased, one temporarily leased facility in Australia, one leased facility we ceased operations during fourth quarter of 2022 in anticipation of the upcoming lease maturity, and one leased site we exited in preparation to lease to a third party.

Balance Sheet Activity and Liquidity
As of December 31, 2023, the Company had total liquidity of approximately $797.4 million, including cash and capacity on its revolving credit facility. Total debt outstanding was $3.2 billion (inclusive of $259.1 million of financing leases/sale lease-backs and exclusive of unamortized deferred financing fees), of which 92% was in an unsecured structure. At quarter end, net debt to pro forma Core EBITDA was approximately 5.6x. The Company’s total debt outstanding includes $3.0 billion of real estate debt, which excludes sale-leaseback and financing lease obligations. The Company’s real estate debt has a remaining weighted average term of 5.3 years and carries a weighted average contractual interest rate of 3.8%. As of December 31, 2023, 88% 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 12, 2023, the Company’s Board of Directors declared a dividend of $0.22 per share for the fourth quarter of 2023, which was paid on January 12, 2024 to common stockholders of record as of December 31, 2023.

2024 Outlook
The Company announced its 2024 annual AFFO per share guidance to be within the range of $1.32 - $1.42. 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 22, 2024 at 5:00 p.m. Eastern Time to discuss its fourth quarter 2023 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 fifteen 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#13740732. The telephone replay will be available starting shortly after the call until March 7, 2024.
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 a global leader in temperature-controlled logistics real estate and value added services. Focused on the ownership, operation, acquisition and development of temperature-controlled warehouses, Americold owns and/or operates 245 temperature-controlled warehouses, with approximately 1.5 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 NAREIT FFO, core FFO, AFFO, EBITDAre, Core EBITDA; same store segment revenue, contribution (NOI), margin, and maintenance capital expenditures. Definitions of these non-GAAP metrics are included in our quarterly 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 press release 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 press release may not be comparable to similarly titled measures disclosed by other companies, including other REITs.

Forward-Looking Statements
This press release 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: rising inflationary pressures, increased interest rates and operating costs; labor and power costs; labor shortages; our relationship with our associates, the occurrence of any work stoppages or any disputes under our collective bargaining agreements and employment related litigation; the impact of supply chain disruptions; risks related to rising construction costs; risks related to expansions of existing properties and developments of new properties, including failure to meet budgeted or stabilized returns within expected time frames, or at all, in respect thereof; uncertainty of revenues, given the nature of our customer contracts; acquisition risks, including the failure to identify or complete attractive acquisitions or failure to realize the intended benefits from our recent acquisitions; difficulties in expanding our operations into new markets; uncertainties and risks related to public health crises; a failure of our information technology systems, systems conversions and integrations, cybersecurity attacks or a breach of our information security systems, networks or processes, including those related to the cyber matter which occurred on April 26, 2023; risks related to implementation of the new ERP system, defaults or non-renewals of significant customer contracts; risks related to privacy and data security concerns, and data collection and transfer restrictions and related foreign regulations; changes in applicable governmental regulations and tax legislation; risks related to current and potential international operations and properties; actions by our competitors and their increasing ability to compete with us; changes in foreign currency exchange rates; 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; liabilities as a result of our participation in multi-employer pension plans; risks related to the partial ownership of properties, including our JV investments; risks related to natural disasters; adverse economic or real estate developments in our geographic markets or the temperature-controlled warehouse industry; changes in real estate and zoning laws and increases in real property tax rates; general economic conditions; risks associated with the ownership of real estate generally and temperature-controlled warehouses in particular; possible environmental liabilities; uninsured losses or losses in excess of our insurance coverage; financial market fluctuations; our failure to obtain necessary outside financing; risks related to, or restrictions contained in, our debt financings; decreased storage rates or increased vacancy rates; the potential dilutive effect of our common stock offerings; the cost and time requirements as a result of our operation as a publicly traded REIT; and our failure to maintain our status as a REIT.



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 press release include those regarding our 2023 outlook and our migration of our customers to fixed commitment storage contracts. 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, 2022, and Quarterly Reports on From 10-Q for the quarters ended March 31, 2023, June 30, 2023 and September 30, 2023, and other reports filed with the Securities and Exchange Commission, 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
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except shares and per share amounts)
December 31, 2023 December 31, 2022
Assets
 Property, buildings, and equipment:
Land $ 820,831  $ 786,975 
Buildings and improvements 4,464,359  4,245,607 
Machinery and equipment 1,565,431  1,407,874 
Assets under construction 452,312  526,811 
7,302,933  6,967,267 
Accumulated depreciation (2,196,196) (1,901,450)
Property, buildings, and equipment – net 5,106,737  5,065,817 
Operating lease right-of-use assets 343,532  352,553 
Accumulated amortization-operating leases (96,230) (76,334)
Operating leases-net 247,302  276,219 
Financing Leases:
Buildings and improvements 13,542  13,546 
Machinery and equipment 161,446  127,009 
174,988  140,555 
Accumulated depreciation (69,824) (57,626)
Financing leases – net 105,164  82,929 
 Cash, cash equivalents, and restricted cash 60,392  53,063 
Accounts receivable, net of allowance of $21,647 and $15,951 at December 31, 2023 and 2022, respectively 426,048  430,042 
 Identifiable intangible assets – net 897,414  925,223 
 Goodwill 794,004  1,033,637 
 Investments in and advances to partially owned entities and other 38,113  78,926 
 Other assets 194,078  158,705 
 Total assets $ 7,869,252  $ 8,104,561 
Liabilities and equity
 Liabilities:
Borrowings under revolving line of credit $ 392,156  $ 500,052 
Accounts payable and accrued expenses 568,764  557,540 
Senior unsecured notes and term loans - net of deferred financing cost of $10,578 and $13,044 at December 31, 2023 and 2022, respectively 2,601,122  2,569,281 
Sale-leaseback financing obligations 161,937  171,089 
Financing lease obligations 97,177  77,561 
Operating lease obligations 240,251  264,634 
Unearned revenue 28,379  32,046 
Pension and postretirement benefits 1,624  1,531 
Deferred tax liability - net 135,797  135,098 
Multiemployer pension plan withdrawal liability 7,458  7,851 
Total liabilities 4,234,665  4,316,683 
Equity
Stockholders' equity
Common stock, $0.01 par value per share – 500,000,000 authorized shares; 283,699,120 and 269,814,956 issued and outstanding at December 31, 2023 and 2022, respectively 2,837  2,698 
Paid-in capital 5,625,907  5,191,969 
Accumulated deficit and distributions in excess of net earnings (1,995,975) (1,415,198)
Accumulated other comprehensive loss (16,640) (6,050)
Total stockholders’ equity 3,616,129  3,773,419 
Noncontrolling interests:
Noncontrolling interests in operating partnership 18,458  14,459 
Total equity 3,634,587  3,787,878 
Total liabilities and equity $ 7,869,252  $ 8,104,561 





Americold Realty Trust, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share amounts)
Three Months Ended December 31, Year Ended December 31,
2023 2022 2023 2022
Revenues:
Rent, storage, and warehouse services $ 612,262  $ 598,690  $ 2,391,089  $ 2,302,971 
Transportation services 57,878  76,190  239,670  313,358 
Third-party managed services 9,151  46,624  42,570  298,406 
Total revenues 679,291  721,504  2,673,329  2,914,735 
Operating expenses:
Rent, storage, and warehouse services cost of operations 415,160  426,363  1,668,486  1,666,739 
Transportation services cost of operations 46,966  61,738  197,630  265,956 
Third-party managed services cost of operations 7,330  45,177  36,641  286,077 
Depreciation and amortization 94,099  82,467  353,743  331,446 
Selling, general, and administrative 57,763  60,073  226,786  231,067 
Acquisition, cyber incident, and other, net 15,774  11,899  64,087  32,511 
Impairment of indefinite and long-lived assets 236,515  764  236,515  7,380 
Loss (gain) on sale of real estate (21) (2,254) 5,689 
Total operating expenses 873,612  688,460  2,781,634  2,826,865 
Operating (loss) income (194,321) 33,044  (108,305) 87,870 
Other income (expense)
Interest expense (33,681) (33,407) (140,107) (116,127)
Loss on debt extinguishment, modifications and termination of derivative instruments (627) (933) (2,482) (3,217)
Gain (loss) from partially owned entities 174  (139) (1,442) (918)
Impairment of related party loan receivable —  —  (21,972) — 
Loss on put option —  —  (56,576) — 
Other, net 1,054  3,661  2,795  2,464 
(Loss) income from continuing operations before income taxes (227,401) 2,226  (328,089) (29,928)
Income tax benefit (expense)
Current (2,627) (721) (8,508) (3,725)
Deferred 3,228  3,412  10,781  22,561 
Income tax benefit 601  2,691  2,273  18,836 
Net (loss) income
Net (loss) income from continuing operations (226,800) 4,917  (325,816) (11,092)
Net loss from discontinued operations —  (1,962) (10,453) (8,382)
Net (loss) income $ (226,800) $ 2,955  $ (336,269) $ (19,474)
Net loss attributable to noncontrolling interests 41  11  (54) (34)
Net (loss) income attributable to Americold Realty Trust, Inc. $ (226,841) $ 2,944  $ (336,215) $ (19,440)
Weighted average common stock outstanding – basic 284,263  269,826  275,773  269,565 
Weighted average common stock outstanding – diluted 284,263  270,770  275,773  269,565 
Net (loss) income per common share - basic $ (0.80) $ 0.02  $ (1.18) $ (0.04)
Net loss per common share from discontinued operations - basic $ —  $ (0.01) $ (0.04) $ (0.03)
Basic (loss) income per share $ (0.80) $ 0.01  $ (1.22) $ (0.07)
Net (loss) income per common share - diluted $ (0.80) $ 0.02  $ (1.18) $ (0.04)
Net loss per common share from discontinued operations - diluted $ —  $ (0.01) $ (0.04) $ (0.03)
Diluted (loss) income per share $ (0.80) $ 0.01  $ (1.22) $ (0.07)





Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and AFFO
(In thousands, except per share amounts)
Three Months Ended YTD
Q4 23 Q3 23 Q2 23 Q1 23 Q4 22 2023 2022
Net (loss) income $ (226,800) $ (2,096) $ (104,802) $ (2,571) $ 2,955  $ (336,269) $ (19,474)
Adjustments:
Real estate related depreciation 57,183  56,373  54,740  54,541  53,094  222,837  210,171 
Loss (gain) on sale of real estate 78  (2,528) 191  (21) (2,254) 5,689 
Net loss (gain) on asset disposals 260  (25) —  —  175  235  1,135 
Impairment charges on real estate assets —  —  —  —  —  —  3,407 
Our share of reconciling items related to partially owned entities 280  290  232  903  1,209  1,705  4,410 
NAREIT Funds from operations $ (169,072) $ 54,620  $ (52,358) $ 53,064  $ 57,412  $ (113,746) $ 205,338 
Adjustments:
Net loss (gain) on sale of non-real estate assets 3,312  (296) 289  420  2,274  3,725  2,421 
Acquisition, cyber incident and other, net 15,774  13,931  27,235  7,147  11,899  64,087  32,511 
Goodwill impairment 236,515  —  —  —  —  236,515  3,209 
Loss on debt extinguishment, modifications and termination of derivative instruments 627  683  627  545  933  2,482  3,217 
Foreign currency exchange (gain) loss (28) 705  212  (458) (2,477) 431  975 
Gain on legal settlement related to prior period operations (2,180) —  —  —  —  (2,180) — 
Gain on extinguishment of New Market Tax Credit Structure —  —  —  —  —  —  (3,410)
Loss on deconsolidation of subsidiary contributed to LATAM joint venture —  —  —  —  —  —  4,148 
Our share of reconciling items related to partially owned entities (184) 147  (27) 128  127  64  574 
(Gain) loss from discontinued operations, net of tax —  (203) 8,275  —  —  8,072  — 
Impairment of related party receivable —  —  21,972  —  —  21,972  — 
Loss on put option —  —  56,576  —  —  56,576  — 
Gain on sale of LATAM JV —  —  (304) —  —  (304) — 
Core FFO(b)
$ 84,764  $ 69,587  $ 62,497  $ 60,846  $ 70,168  $ 277,694  $ 248,983 
Adjustments:
Amortization of deferred financing costs and pension withdrawal liability 1,290  1,286  1,279  1,240  1,305  5,095  4,833 
Amortization of below/above market leases 360  369  375  402  534  1,506  2,131 
Non-real estate asset impairment —  —  —  —  764  —  764 
Straight-line net rent 597  544  361  (491) 333  1,011  747 
Deferred income tax benefit (3,228) (2,473) (1,459) (3,621) (3,412) (10,781) (22,561)
Stock-based compensation expense 5,780  6,203  4,639  6,970  5,036  23,592  27,137 
Non-real estate depreciation and amortization 36,916  33,355  30,152  30,483  29,373  130,906  121,275 
Maintenance capital expenditures (18,670) (20,907) (22,590) (16,244) (26,701) (78,411) (85,511)
Our share of reconciling items related to partially owned entities 208  198  303  304  819  1,013  2,482 
Adjusted FFO(b)
$ 108,017  $ 88,162  $ 75,557  $ 79,889  $ 78,219  351,625  $ 300,280 










Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and AFFO (continued)
(In thousands except per share amounts)
Three Months Ended YTD
Q4 23 Q3 23 Q2 23 Q1 23 Q4 22 2023 2022
NAREIT Funds from operations(b)
$ (169,072) $ 54,620  $ (52,358) $ 53,064  $ 57,412  $ (113,746) $ 205,338 
Core FFO(b)
$ 84,764  $ 69,587  $ 62,497  $ 60,846  $ 70,168  $ 277,694  $ 248,984 
Adjusted FFO(b)
$ 108,017  $ 88,162  $ 75,557  $ 79,889  $ 78,219  $ 351,625  $ 300,281 
Reconciliation of weighted average shares:
Weighted average basic shares for net income calculation 284,263  278,137  270,462  270,230  269,826  275,773  269,565 
Dilutive stock options and unvested restricted stock units 502  519  695  778  944  624  1,041 
Weighted average dilutive shares 284,765  278,656  271,157  271,008  270,770  276,397  270,606 
NAREIT FFO - basic per share(b)
$ (0.59) $ 0.20  $ (0.19) $ 0.20  $ 0.21  $ (0.41) $ 0.76 
NAREIT FFO - diluted per share(b)
$ (0.59) $ 0.20  $ (0.19) $ 0.20  $ 0.21  $ (0.41) $ 0.76 
Core FFO - basic per share (b)
$ 0.30  $ 0.25  $ 0.23  $ 0.23  $ 0.26  $ 1.01  $ 0.92 
Core FFO - diluted per share(b)
$ 0.30  $ 0.25  $ 0.23  $ 0.22  $ 0.26  $ 1.00  $ 0.92 
Adjusted FFO - basic per share (b)
$ 0.38  $ 0.32  $ 0.28  $ 0.30  $ 0.29  $ 1.28  $ 1.11 
Adjusted FFO - diluted per share(b)
$ 0.38  $ 0.32  $ 0.28  $ 0.29  $ 0.29  $ 1.27  $ 1.11 
(a)Maintenance capital expenditures include capital expenditures made to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology.
(b)During the three and six months ended June 30, 2023, management excluded losses from discontinued operations from Core FFO applicable to common stockholders, and Adjusted FFO applicable to common stockholders and included certain losses from discontinued operations for NAREIT FFO and all of the related per share amounts for Core, NAREIT, and Adjusted FFO. For purposes of comparability using this same approach, the following adjusted historical results recasted are as follows:
Three Months Ended-Recasted YTD Recasted
(In thousands except per share amounts) Q1 23 Q4 22 2023 2022
NAREIT FFO $ 52,432  $ 56,457  $ (114,378) $ 202,088 
Core FFO $ 62,547  $ 71,157  $ 279,395  $ 254,078 
Adjusted FFO applicable to common shareholders $ 81,506  $ 78,717  $ 353,242  $ 303,007 
NAREIT FFO - basic per share $ 0.19  $ 0.21  $ (0.41) $ 0.75 
NAREIT FFO - diluted per share $ 0.19  $ 0.21  $ (0.41) $ 0.75 
Core FFO - basic per share $ 0.23  $ 0.26  $ 1.01  $ 0.94 
Core FFO - diluted per share $ 0.23  $ 0.26  $ 1.01  $ 0.94 
Adjusted FFO - basic per share $ 0.30  $ 0.29  $ 1.28  $ 1.12 
Adjusted FFO - diluted per share $ 0.30  $ 0.29  $ 1.28  $ 1.12 




Reconciliation of Net (Loss) Income to EBITDA, NAREIT EBITDAre, and Core EBITDA
(In thousands)
Three Months Ended Year End
Q4 23 Q3 23 Q2 23 Q1 23 Q4 22 2023 2022
Net (loss) income $ (226,800) $ (2,096) $ (104,802) $ (2,571) $ 2,955  $ (336,269) $ (19,474)
Adjustments:
Depreciation and amortization 94,099  89,728  84,892  85,024  82,467  353,743  331,446 
Interest expense 33,681  35,572  36,431  34,423  33,407  140,107  116,127 
Income tax (benefit) expense (601) (492) 464  (1,644) (2,691) (2,273) (18,836)
EBITDA $ (99,621) $ 122,712  $ 16,985  $ 115,232  $ 116,138  $ 155,308  $ 409,263 
Adjustments:
Loss (gain) on sale of real estate 78  (2,528) 191  (21) (2,254) 5,689 
Adjustment to reflect share of EBITDAre of partially owned entities 1,533  1,495  3,085  2,883  5,019  8,996  17,815 
NAREIT EBITDAre(a)
$ (98,083) $ 124,285  $ 17,542  $ 118,306  $ 121,136  $ 162,050  $ 432,767 
Adjustments:
Acquisition, cyber incident and other, net 15,774  13,931  27,235  7,147  11,899  64,087  32,511 
(Gain) loss from investments in partially owned entities (174) 259  709  3,029  2,101  3,823  9,300 
Impairment of indefinite and long-lived assets 236,515  —  —  —  764  236,515  7,380 
Foreign currency exchange (gain) loss (28) 705  212  (458) (2,477) 431  975 
Stock-based compensation expense 5,780  6,203  4,639  6,970  5,036  23,592  27,137 
Loss on debt extinguishment, modifications and termination of derivative instruments 627  683  627  545  933  2,482  3,217 
Gain (loss) on real estate and other asset disposals 3,572  (321) 289  420  2,449  3,960  3,556 
Loss on deconsolidation of subsidiary contributed to LATAM joint venture —  —  —  —  —  —  4,148 
Reduction in EBITDAre from partially owned entities (1,533) (1,495) (3,085) (2,883) (5,019) (8,996) (17,815)
Gain from sale of partially owned entities —  —  (304) —  —  (304) — 
(Gain) loss from discontinued operations, net of tax —  (203) 8,275  —  —  8,072  — 
Impairment of related party receivable —  —  21,972  —  —  21,972  — 
Loss on put option —  —  56,576  —  —  56,576  — 
Core EBITDA $ 160,270  $ 144,047  $ 134,687  $ 133,076  $ 136,822  572,080  499,766 
(a)During the three and six months ended June 30, 2023, management included certain losses from discontinued operations in NAREIT EBITDAre. For purposes of comparability using this same approach, the following adjusted historical results recasted are as follows:
Three Months Ended-Recasted Year End Recasted
(In thousands) Q1 23 Q4 22 2023 2022
NAREIT EBITDAre $116,872 $117,602 $160,616 $419,791








Three Months Ended December 31, Year Ended December 31,
2023 2022 2023 2022
Segment revenues:
Warehouse 612,262  598,690  $ 2,391,089  $ 2,302,971 
Transportation 57,878  76,190  239,670  313,358 
Third-party managed 9,151  46,624  42,570  298,406 
Total revenues 679,291  721,504  2,673,329  2,914,735 
Segment contribution:
Warehouse 197,102  172,327  $ 722,603  $ 636,232 
Transportation 10,912  14,452  42,040  47,402 
Third-party managed 1,821  1,447  5,929  12,329 
Total segment contribution 209,835  188,226  770,572  695,963 
Reconciling items:
Depreciation and amortization (94,099) (82,467) (353,743) (331,446)
Selling, general, and administrative (57,763) (60,073) (226,786) (231,067)
Acquisition, cyber incident, and other, net (15,774) (11,899) (64,087) (32,511)
Impairment of indefinite and long-lived assets (236,515) (764) (236,515) (7,380)
(Loss) gain on sale of real estate (5) 21  2,254  (5,689)
Interest expense (33,681) (33,407) (140,107) (116,127)
Other, net 1,054  3,661  2,795  2,464 
Loss on debt extinguishment, modifications and termination of derivative instruments (627) (933) (2,482) (3,217)
Gain (loss) from partially owned entities 174  (139) (1,442) (918)
Impairment of related party loan receivable —  —  (21,972) — 
Loss on put option —  —  (56,576) — 
(Loss) income from continuing operations before income taxes $ (227,401) $ 2,226  $ (328,089) $ (29,928)
We view and manage our business through three primary business segments—warehouse, transportation, third-party managed. Our core business is our warehouse segment, where we provide temperature-controlled warehouse storage and related handling and other warehouse services. In our warehouse segment, we collect rent and storage fees from customers to store their frozen and perishable food and other products within our real estate portfolio. We also provide our customers with handling and other warehouse services related to the products stored in our buildings that are designed to optimize their movement through the cold chain, such as the placement of food products for storage and preservation, the retrieval of products from storage upon customer request, case-picking, blast freezing, produce grading and bagging, ripening, kitting, protein boxing, repackaging, e-commerce fulfillment, and other recurring handling services.
In our transportation segment, we broker and manage transportation of frozen and perishable food and other products for our customers. Our transportation services include consolidation services (i.e., consolidating a customer’s products with those of other customers for more efficient shipment), freight under management services (i.e., arranging for and overseeing transportation of customer inventory) and dedicated transportation services, each designed to improve efficiency and reduce transportation and logistics costs to our customers. We provide these transportation services at cost plus a service fee or, in the case of our consolidation or dedicated services, we may charge a fixed fee. We supplemented our regional, national and truckload consolidation services with the transportation operations from various warehouse acquisitions. We also provide multi-modal global freight forwarding services to support our customers’ needs in certain markets.
Under our third-party managed segment, we manage warehouses on behalf of third parties and provide warehouse management services to leading food manufacturers and retailers in their owned facilities. We believe using our third-party management services allows our customers to increase efficiency, reduce costs, reduce supply-chain risks and focus on their core businesses. We also believe that providing third-party management services allows us to offer a complete and integrated suite of services across the cold chain.




Notes and Definitions
We use the following non-GAAP financial measures as supplemental performance measures of our business: NAREIT FFO, Core FFO, Adjusted FFO, EBITDAre, Core EBITDA, net debt to pro-forma Core EBITDA and segment contribution (‘NOI”).
We calculate funds from operations, or FFO, in accordance with the standards established by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. NAREIT defines FFO as net income or loss determined in accordance with U.S. GAAP, excluding extraordinary items as defined under U.S. GAAP and gains or losses from sales of previously depreciated operating real estate and other assets, plus specified non-cash items, such as real estate asset depreciation and amortization impairment charge on real estate related assets and our share of reconciling items for partially owned entities. We believe that FFO is helpful to investors as a supplemental performance measure because it excludes the effect of depreciation, amortization and gains or losses from sales of real estate, all of which are based on historical costs, which implicitly assumes that the value of real estate diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, FFO can facilitate comparisons of operating performance between periods and among other equity REITs.
We calculate core funds from operations, or Core FFO, as NAREIT FFO adjusted for the effects of gain or loss on the sale of non-real estate assets, acquisition, cyber incident and other, net, goodwill impairment (when applicable), loss on debt extinguishment, modifications and termination of derivative instruments, foreign currency exchange (gain) loss, gain on legal settlement related to prior period operations, gain or loss from discontinued operations net of tax, impairment of related party receivable, loss on fair put option, gain on extinguishment of New Market Tax Credit structure, loss on deconsolidation of subsidiary contributed to LATAM joint venture, and gain from sale of LATAM joint venture. We also adjust for the impact of Core FFO on our share of reconciling items for partially owned entities, and gain from disposition of partially owned entities. We believe that Core FFO is helpful to investors as a supplemental performance measure because it excludes the effects of certain items which can create significant earnings volatility, but which do not directly relate to our core business operations. We believe Core FFO can facilitate comparisons of operating performance between periods, while also providing a more meaningful predictor of future earnings potential.
However, because NAREIT FFO and Core FFO add back real estate depreciation and amortization and do not capture the level of maintenance capital expenditures necessary to maintain the operating performance of our properties, both of which have material economic impacts on our results from operations, we believe the utility of NAREIT FFO and Core FFO as a measure of our performance may be limited.
We calculate adjusted funds from operations, or Adjusted FFO, as Core FFO adjusted for the effects of amortization of deferred financing costs and pension withdrawal liability, amortization of above or below market leases, non-real estate asset impairment, straight-line net rent, benefit from deferred income taxes, stock-based compensation expense, non-real estate depreciation and amortization and maintenance capital expenditures. We also adjust for AFFO attributable to our share of reconciling items of partially owned entities and discontinued operations. We believe that Adjusted FFO is helpful to investors as a meaningful supplemental comparative performance measure of our ability to make incremental capital investments in our business and to assess our ability to fund distribution requirements from our operating activities.
FFO, Core FFO and Adjusted FFO are used by management, investors and industry analysts as supplemental measures of operating performance of equity REITs. FFO, Core FFO and Adjusted FFO should be evaluated along with U.S. GAAP net income and net income per diluted share (the most directly comparable U.S. GAAP measures) in evaluating our operating performance. FFO, Core FFO and Adjusted FFO do not represent net income or cash flows from operating activities in accordance with U.S. GAAP and are not indicative of our results of operations or cash flows from operating activities as disclosed in our consolidated statements of operations included in our quarterly and annual reports. FFO, Core FFO and Adjusted FFO should be considered as supplements, but not alternatives, to our net income or cash flows from operating activities as indicators of our operating performance. Moreover, other REITs may not calculate FFO in accordance with the NAREIT definition or may interpret the NAREIT definition differently than we do. Accordingly, our FFO may not be comparable to FFO as calculated by other REITs. In addition, there is no industry definition of Core FFO or Adjusted FFO and, as a result, other REITs may also calculate Core FFO or Adjusted FFO, or other similarly-captioned metrics, in a manner different than we do. The table above reconciles FFO, Core FFO and Adjusted FFO to net (loss) income, which is the most directly comparable financial measure calculated in accordance with U.S. GAAP.
We calculate EBITDA for Real Estate, or EBITDAre, in accordance with the standards established by the Board of Governors of NAREIT, defined as, earnings before interest expense, taxes, depreciation and amortization, net gain on sale of real estate, net of withholding taxes, and adjustment to reflect share of EBITDAre of partially owned entities. EBITDAre is a measure commonly used in our industry, and we present EBITDAre to enhance investor understanding of our operating performance. We believe that EBITDAre provides investors and analysts with a measure of operating results unaffected by differences in capital structures, capital investment cycles and useful life of related assets among otherwise comparable companies.
We also calculate our Core EBITDA as EBITDAre further adjusted for acquisition, cyber and other, net, loss from investments in partially owned entities, impairment of indefinite and long-lived assets (when applicable), foreign currency exchange loss or gain, stock-based compensation expense, loss on debt extinguishment, modifications and termination of derivative instruments, net gain on other asset disposals, reduction in EBITDAre from partially owned entities, discontinued operations, impairment of related party loan receivable, loss on fair value of put, gain on extinguishment of new market tax credit structure, and loss on deconsolidation of subsidiary contributed to LATAM joint venture.. We believe that the presentation of Core EBITDA provides a measurement of our operations that is meaningful to investors because it excludes the effects of certain items that are otherwise included in EBITDAre but which we do not believe are indicative of our core business operations. EBITDAre and Core EBITDA are not measurements of financial performance under U.S. GAAP, and our EBITDAre and Core EBITDA may not be comparable to similarly titled measures of other companies. You should not consider our EBITDAre and Core EBITDA as alternatives to net income or cash flows from operating activities determined in accordance with U.S. GAAP. Our calculations of EBITDAre and Core EBITDA have limitations as analytical tools, including:
NOI is calculated as earnings before interest expense, taxes, depreciation and amortization, and excluding corporate Selling, general, and administrative expense; Acquisition, cyber incident, and other, net; Impairment of indefinite and long-lived assets; gain or loss on sale of real estate and all components of non-operating other income and expense. Management believes that this is a helpful metric to measure period to period operating performance of the business.
•these measures do not reflect our historical or future cash requirements for maintenance capital expenditures or growth and expansion capital expenditures;
•these measures do not reflect changes in, or cash requirements for, our working capital needs;
•these measures do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our indebtedness;
•these measures do not reflect our tax expense or the cash requirements to pay our taxes; and
•although depreciation and amortization are non-cash charges, the assets being depreciated will often have to be replaced in the future and these measures do not reflect any cash requirements for such replacements.



We use Core EBITDA and EBITDAre as measures of our operating performance and not as measures of liquidity. The table on page 21 of our financial supplement reconciles EBITDA, EBITDAre and Core EBITDA to net income, which is the most directly comparable financial measure calculated in accordance with U.S. GAAP.
Net debt to proforma Core EBITDA is calculated using total debt, plus capital lease obligations, less cash and cash equivalents, divided by pro-forma Core EBITDA. We calculate pro-forma Core EBITDA as Core EBITDA further adjusted for acquisitions, dispositions and for rent expense associated with lease buy-outs and lease exits. The pro-forma adjustment for acquisitions reflects the Core EBITDA for the period of time prior to acquisition. The pro-forma adjustment for leased facilities exited or purchased reflects the add-back for the related lease expense from the last year. The pro-forma adjustment for dispositions reduces Core EBITDA for the earnings of facilities disposed of or exited during the year, including the strategic exit of certain third-party managed business.
We define our “same store” population once annually at the beginning of the current calendar year. Our population includes properties owned or leased for the entirety of two comparable periods with at least twelve consecutive months of normalized operations prior to January 1 of the current calendar year. We define “normalized operations” as properties that have been open for operation or lease, after development or significant modification (e.g., expansion or rehabilitation subsequent to a natural disaster). Acquired properties are included in the “same store” population if owned by us as of the first business day of the prior calendar year (e.g. January 1, 2022) and are still owned by us as of the end of the current reporting period, unless the property is under development. The “same store” pool is also adjusted to remove properties that were sold or entered development subsequent to the beginning of the current calendar year. Beginning January of 2024, changes in ownership structure (e.g., purchase of a previously leased warehouse) will no longer result in a facility being excluded from the same store population, as management believes that actively managing its real estate is normal course of operations. Additionally, management will begin to classify new developments (both conventional and automated facilities) as a component of the same store pool once the facility is considered fully operational and both inbounding and outbounding product for at least twelve consecutive months prior to January 1 of the current calendar year.
We calculate “same store revenue” as revenues for the same store population. We calculate “same store contribution (NOI)” as revenues for the same store population less its cost of operations (excluding any depreciation and amortization, impairment charges, corporate-level selling, general and administrative expenses, corporate-level acquisition, cyber incident and other, net and gain or loss on sale of real estate). In order to derive an appropriate measure of period-to-period operating performance, we also calculate our same store contribution (NOI) on a constant currency basis to remove the effects of foreign currency exchange rate movements by using the comparable prior period exchange rate to translate from local currency into U.S. dollars for both periods. We evaluate the performance of the warehouses we own or lease using a “same store” analysis, and we believe that same store contribution (NOI) is helpful to investors as a supplemental performance measure because it includes the operating performance from the population of properties that is consistent from period to period and also on a constant currency basis, thereby eliminating the effects of changes in the composition of our warehouse portfolio and currency fluctuations on performance measures. Same store contribution (NOI) is not a measurement of financial performance under U.S. GAAP. In addition, other companies providing temperature-controlled warehouse storage and handling and other warehouse services may not define same store or calculate same store contribution (NOI) in a manner consistent with our definition or calculation. Same store contribution (NOI) should be considered as a supplement, but not as an alternative, to our results calculated in accordance with U.S. GAAP. The tables beginning on page 33 of our financial supplement provide reconciliations for same store revenues and same store contribution (NOI).
We define “maintenance capital expenditures” as capital expenditures made to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology. Maintenance capital expenditures include capital expenditures made to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology. Maintenance capital expenditures do not include acquisition costs contemplated when underwriting the purchase of a building or costs which are incurred to bring a building up to Americold’s operating standards. See the tables on page 30 of our financial supplement for additional information regarding our maintenance capital expenditures.
We define “total real estate debt” as the aggregate of the following: mortgage notes, senior unsecured notes, term loans and borrowings under our revolving line of credit. We define “total debt outstanding” as the aggregate of the following: total real estate debt, sale-leaseback financing obligations and financing lease obligations. See the tables on page 23 of our financial supplement for additional information regarding our indebtedness.
All quarterly amounts and non-GAAP disclosures within this filing shall be deemed unaudited.


EX-99.2 3 q42023-quarterlysupplement.htm EX-99.2 Document

Exhibit 99.2
fs_g2-q4fy23earningscovera.jpg


    
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Financial Supplement
Fourth Quarter 2023
                                        

Table of Contents
Overview PAGE
Corporate Profile
Earnings Release
Selected Quarterly Financial Data
Financial Information
Consolidated Balance Sheets
Consolidated Statements of Operations
Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO and AFFO
Reconciliation of Net (Loss) Income to EBITDA, NAREIT EBITDAre, and Core EBITDA
Acquisition, Cyber Incident and Other, net
Debt Detail and Maturities
Operations Overview
Revenue and Contribution (NOI) by Segment
Global Warehouse Economic and Physical Occupancy Trend
Global Warehouse Portfolio
Fixed Commitment and Lease Maturity Schedules
Maintenance Capital Expenditures, Repair and Maintenance Expenses and External Growth, Expansion and Development Capital Expenditures
Total Global Warehouse Segment Financial and Operating Performance
Global Warehouse Segment Financial Performance
Same-store Financial Performance
Same-store Key Operating Metrics
Same-store Historical Performance Trend
External Growth and Capital Deployment
Unconsolidated Joint Ventures (Investments in Partially Owned Entities)
2024 Guidance
Notes and Definitions









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Financial Supplement
Fourth Quarter 2023
                                        

Corporate Profile
We are a global leader in temperature-controlled storage, logistics, real estate and value added services, and are focused on the ownership, operation, acquisition and development of temperature-controlled warehouses. We are organized as a self-administered and self-managed REIT with proven operating, development and acquisition expertise. As of December 31, 2023, we operated a global network of 245 temperature-controlled warehouses encompassing approximately 1.5 billion cubic feet, with 197 warehouses in North America, 27 in Europe, 19 warehouses in Asia-Pacific, and 2 warehouses in South America. In addition, we hold two minority interests in joint ventures, one with SuperFrio, which owns or operates 35 temperature-controlled warehouses in Brazil, and one with the RSA JV, which owns 2 temperature-controlled warehouses in United Arab Emirates.

Corporate Headquarters
10 Glenlake Parkway South Tower, Suite 600
Atlanta, Georgia 30328
Telephone: (678) 441-1400
Website: www.americold.com

Senior Management
George F. Chappelle Jr.: Chief Executive Officer and Director
E. Jay Wells: Chief Financial Officer and Executive Vice President
Robert S. Chambers: President, Americas
Samantha L. Charleston: Chief Human Resources Officer and Executive Vice President
Nathan H. Harwell: Chief Legal Officer and Executive Vice President
R. Scott Henderson: Chief Investment Officer and Executive Vice President
Michael P. Spires: Chief Information Officer and Executive Vice President
Bryan M. Verbarendse: Chief Operating Officer - North America and Executive Vice President
Richard C. Winnall: President, International
Thomas C. Novosel: Chief Accounting Officer and Senior Vice President
Board of Directors
Mark R. Patterson: Chairman of the Board of Directors
George J. Alburger, Jr.: Director
Kelly H. Barrett: Director
Robert L. Bass: Director
George F. Chappelle Jr.: Chief Executive Officer and Director
Antonio F. Fernandez: Director
Pamela K. Kohn: Director
David J. Neithercut: Director
Andrew P. Power: Director

Investor Relations
To request more information or to be added to our e-mail distribution list, please visit our website: www.americold.com
(Please proceed to the Investors section)

Investor Relations
Telephone: 678-459-1959
Email: investor.relations@americold.com


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Financial Supplement
Fourth Quarter 2023
                                        
Analyst Coverage
Firm Analyst Name Contact Email
Baird Equity Research Nicholas Thillman 414-298-5053 nthillman@rwbaird.com
Bank of America Merrill Lynch Joshua Dennerlein 646-855-1681 joshua.dennerlein@bofa.com
Barclays Brendan Lynch 212-526-9428 brendan.lynch@barclays.com
BNP Paribas Exane Research Nate Crossett 646-725-3716 nate.crossett@exanebnpparibas.com
Citi
Craig Mailman
212-816-4471
craig.mailman@citi.com
Evercore ISI Samir Khanal /
Steve Sakwa
212-888-3796 / 212-446-9462 samir.khanal@evercoreisi.com / steve.sakwa@evercoreisi.com
Green Street Advisors Vince Tibone 949-640-8780 vtibone@greenstreet.com
J.P. Morgan Michael W. Mueller 212-622-6689 michael.w.mueller@jpmorgan.com
KeyBanc Todd Thomas 917-368-2286 tthomas@key.com
MorningStar Research Services Suryansh Sharma 314-585-6793 suryansh.sharma@morningstar.com
Raymond James William A. Crow 727-567-2594 bill.crow@raymondjames.com
RBC Michael Carroll 440-715-2649 michael.carroll@rbccm.com
Truist Ki Bin Kim 212-303-4124 kibin.kim@truist.com
Wolfe Research Andrew Rosivach 646-582-9250 arosivach@wolferesearch.com

Stock Listing Information
The shares of Americold Realty Trust, Inc. are traded on the New York Stock Exchange under the symbol “COLD”.

Credit Ratings
DBRS Morningstar
Credit Rating: BBB (Stable Trend)
Fitch
Issuer Default Rating: BBB (Stable Outlook)
Moody’s
Issuer Rating: Baa3 (Stable Outlook)

These credit ratings may not reflect the potential impact of risks relating to the structure or trading of the Company’s securities and are provided solely for informational purposes. Credit ratings are not recommendations to buy, hold or sell any security, and may be revised or withdrawn at any time by the issuing rating agency at its sole discretion. The Company does not undertake any obligation to maintain the ratings or to advise of any change in ratings. Each agency’s rating should be evaluated independently of any other agency’s rating. An explanation of the significance of the ratings may be obtained from each of the rating agencies.















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Financial Supplement
Fourth Quarter 2023
AMERICOLD ANNOUNCES FOURTH QUARTER AND FULL YEAR 2023 RESULTS
Delivers Double-Digit AFFO per Share Growth for Full Year 2023

Achieves Record Setting Same-Store Economic Occupancy and Fixed Commitments in Full Year 2023
Delivers Strong Same-Store Warehouse Services NOI margins in Fourth Quarter 2023
Announces Two Inaugural Developments with Canadian Pacific and DP World Strategic Partnerships

Atlanta, GA, February 22, 2024 - Americold Realty Trust, Inc. (NYSE: COLD) (the “Company”), a global leader in temperature-controlled logistics, real estate, and value-added services focused on the ownership, operation, acquisition and development of temperature-controlled warehouses, today announced financial and operating results for the fourth quarter and full year ended December 31, 2023.

George Chappelle, Chief Executive Officer of Americold Realty Trust, stated, “We are pleased with our fourth quarter results where we delivered AFFO per share of $0.38, an increase of over 31% versus the prior year’s quarter. This performance was driven by our global warehouse same store pool, which generated NOI growth of 7.9%, on a constant currency basis. Our strong same-store pool results were driven by our pricing initiatives, record-setting fixed commit levels, aggressive variable cost management, and improved Warehouse Services efficiencies. In the face of a challenging throughput environment, we continued to accelerate our progress and delivered Warehouse Services margins of 6.1% during the fourth quarter of 2023, which is a 330 basis point improvement versus the third quarter of 2023. Additionally, this quarter, we derived 52.2% of rent and storage revenue from fixed commitment storage contracts, which is another record-setting level for Americold.”

“For the full year, we delivered AFFO per share of $1.27, an increase of 14% versus the prior year. When further adjusted for the impact of the cyber event in the second quarter of 2023 and the exit of a large retail customer in our third-party managed business in the fourth quarter 2022, this year over year AFFO per share growth rate would have been 19%. This performance was primarily driven by our global warehouse same store pool, which generated NOI growth of 12.8%, on a constant currency basis. Additionally, our 2023 full year same store economic occupancy was 84.3%, which is a full year record for Americold, and was almost 400 basis points higher than our previous record, which demonstrates that our infrastructure and value-added services continue to remain in high demand.”

“Lastly, we are excited to announce an approximately $130 million greenfield development in Kansas City, Missouri, as part of our collaboration with Canadian Pacific Kansas City, one of North America's largest railroad companies. Additionally, in the fourth quarter, we announced our plans through our RSA JV to build a conventional, multi-customer major market distribution center in Dubai at DP World's Port Jebel Ali Free Zone for $35 million. As we move into 2024, we look forward to progressing on these new developments. These partnerships with CPKC and DP World illustrate Americold's unique ability to create value by collaborating with global leaders in adjacent areas of the supply chain.”

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Financial Supplement
Fourth Quarter 2023
Fourth Quarter 2023 Highlights
•Total revenue decreased 5.9% to $679.3 million.
•Total NOI increased 11.5% to $209.8 million.    
•Net loss of $226.8 million, or $0.80 loss per diluted common share.
•Core EBITDA increased 17.1% to $160.3 million, and increased 17.6% on a constant currency basis.
•Core FFO of $84.8 million, or $0.30 per diluted common share.
•AFFO of $108.0 million, or $0.38 per diluted common share.
•Global Warehouse segment revenue increased 2.3% to $612.3 million.
•Global Warehouse segment NOI increased 14.4% to $197.1 million.
•Global Warehouse segment same store revenue increased 0.6% on an actual basis, or 1.1% on a constant currency basis, Global Warehouse segment same store NOI increased by 7.3%, or 7.9% on a constant currency basis.
•On October 5, we completed the acquisition of Safeway Freezers, a cold storage facility located in Vineland, New Jersey for approximately $24.0 million. The Company expects to invest an additional $13.0 million in necessary capital expenditures to meet the Americold Operating System standards. The new facility consists of 6.0 million cubic feet and 16,800 pallet positions.
•Completed the expansion project for our site in Plainville, CT for approximately 161.0 million. This site consists of 12.1 million cubic feet and 31,000 pallet positions.
•Announcement of Kansas City, Missouri development as part of our collaboration with Canadian Pacific - Kansas City, or CPKC, one of North Americas’s largest railroad companies. This facility will consist of 13.5 million cubic feet and 22,000 pallet positions.
Full year to Date 2023 Highlights
•Total revenue decreased 8.3% to $2.7 billion.
•Total NOI increased 10.7% to $770.6 million.
•Net loss of $336.3 million, or $1.22 loss per diluted common share.
•Core EBITDA increased 14.5% to $572.1 million, or 15.7% on a constant currency basis.
•Core FFO of $277.7 million, or $1.00 per diluted common share.
•AFFO of $351.6 million, or $1.27 per diluted common share.
•Global Warehouse segment revenue increased 3.8% to $2.4 billion.
•Global Warehouse segment NOI increased 13.6% to $722.6 million.
•Global Warehouse segment same store revenue increased 3.4%, or 4.3% on a constant currency basis, Global Warehouse segment same store NOI increased 11.8%, or 12.8% on a constant currency basis.
Fourth Quarter 2023 Total Company Financial Results
Total revenue for the fourth quarter of 2023 was $679.3 million, a 5.9% decrease, which was driven by decreases in our Third-party managed and Transportation segments, largely offset by growth within our Global Warehouse segment. The growth within our Global Warehouse segment was driven by incremental revenue from recently completed expansion and development projects, our
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Financial Supplement
Fourth Quarter 2023
pricing initiatives and rate escalations, partially offset by a decline in throughput due to consumer buying habits, and the unfavorable impact of foreign currency translation.
Total NOI for the fourth quarter of 2023 was $209.8 million, an increase of 11.5% from the same quarter of the prior year. This increase is a result of the improvement in our Global Warehouse segment revenue as previously mentioned, paired with strong variable cost control driving higher warehouse services margins despite the challenging throughput environment.
For the fourth quarter of 2023, the Company reported net loss of $226.8 million, or $0.80 loss per diluted share, compared to net income of $3.0 million, or $0.01 earnings per diluted share, for the comparable quarter of the prior year.
Core EBITDA was $160.3 million for the fourth quarter of 2023, compared to $136.8 million for the comparable quarter of the prior year. This reflects a 17.1% increase over prior year on an actual basis, and 17.6% on a constant currency basis. The increase is due to the same factors driving the increase in NOI mentioned above, as well as a slight reduction in SG&A costs.
For the fourth quarter of 2023, Core FFO was $84.8 million, or $0.30 per diluted share, compared to $70.2 million, or $0.26 per diluted share, for the fourth quarter of 2022.
For the fourth quarter of 2023, AFFO was $108.0 million, or $0.38 per diluted share, compared to $78.2 million, or $0.29 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 2023 Global Warehouse Segment Results
For the fourth quarter of 2023, Global Warehouse segment revenue was $612.3 million, an increase of $13.6 million, or 2.3%, compared to $598.7 million for the fourth quarter of 2022. This growth was principally driven by recently completed development projects and acquisitions. Additionally, our same-store pool contributed growth resulting from our pricing initiatives and rate escalations. This was partially offset by lower throughput pallets due to consumer buying habits and the unfavorable impact of foreign currency translation.
Global Warehouse segment contribution (NOI) was $197.1 million for the fourth quarter of 2023 as compared to $172.3 million for the fourth quarter of 2022, an increase of $24.8 million or 14.4%. Global Warehouse segment contribution (NOI) increased due to the drivers of warehouse revenue increase mentioned above. Global Warehouse segment margin was 32.2% for the fourth quarter of 2023, a 341 basis point increase compared to the same quarter of the prior year, driven by improvement in our warehouse services margin.
We had 219 same store warehouses for the three months and year ended December 31, 2023. The following table presents revenues, 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 and year ended December 31, 2023. Refer to our “Real Estate Portfolio” section below for the composition of our non-same store pool.

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Financial Supplement
Fourth Quarter 2023
Three Months Ended December 31, Change
Dollars and units in thousands, except per pallet data 2023 Actual
2023 Constant Currency(1)
2022 Actual Actual Constant Currency
TOTAL WAREHOUSE SEGMENT
Number of total warehouses 240 240 n/a n/a
Rent and storage $ 276,641  $ 278,493  $ 267,031  3.6  % 4.3  %
Warehouse services 335,621  336,331  331,659  1.2  % 1.4  %
Total revenue $ 612,262  $ 614,824  $ 598,690  2.3  % 2.7  %
Global Warehouse contribution (NOI) $ 197,102  $ 197,967  $ 172,327  14.4  % 14.9  %
Global Warehouse margin 32.2  % 32.2  % 28.8  % 341 bps 341 bps
Global Warehouse rent and storage metrics:
Average economic occupied pallets 4,541  n/a 4,537  0.1  % n/a
Average physical occupied pallets 4,041  n/a 4,229  (4.4) % n/a
Average physical pallet positions 5,493  n/a 5,415  1.4  % n/a
Economic occupancy percentage 82.7  % n/a 83.8  % -112 bps n/a
Physical occupancy percentage 73.6  % n/a 78.1  % -453 bps n/a
Total rent and storage revenue per average economic occupied pallet $ 60.92  $ 61.33  $ 58.86  3.5  % 4.2  %
Total rent and storage revenue per average physical occupied pallet $ 68.46  $ 68.92  $ 63.14  8.4  % 9.1  %
Global Warehouse services metrics:
Throughput pallets 9,384  n/a 9,963  (5.8) % n/a
Total warehouse services revenue per throughput pallet $ 35.77  $ 35.84  $ 33.29  7.4  % 7.7  %
SAME STORE WAREHOUSE
Number of same store warehouses 219 219 n/a n/a
Global Warehouse same store revenue:
Rent and storage $ 254,642  $ 256,614  $ 252,984  0.7  % 1.4  %
Warehouse services 319,511  320,399  317,648  0.6  % 0.9  %
Total same store revenue $ 574,153  $ 577,013  $ 570,632  0.6  % 1.1  %
Global Warehouse same store contribution (NOI) $ 185,124  $ 186,061  $ 172,503  7.3  % 7.9  %
Global Warehouse same store margin 32.2  % 32.2  % 30.2  % 201 bps 202 bps
Global Warehouse same store rent and storage metrics:
Average economic occupied pallets 4,216  n/a 4,299  (1.9) % n/a
Average physical occupied pallets 3,752  n/a 4,015  (6.6) % n/a
Average physical pallet positions 5,037  n/a 5,104  (1.3) % n/a
Economic occupancy percentage 83.7  % n/a 84.2  % -53 bps n/a
Physical occupancy percentage 74.5  % n/a 78.7  % -418 bps n/a
Same store rent and storage revenue per average economic occupied pallet $ 60.40  $ 60.87  $ 58.85  2.6  % 3.4  %
Same store rent and storage revenue per average physical occupied pallet $ 67.87  $ 68.39  $ 63.01  7.7  % 8.5  %
Global Warehouse same store services metrics:
Throughput pallets 8,684  n/a 9,396  (7.6) % n/a
Same store warehouse services revenue per throughput pallet $ 36.79  $ 36.90  $ 33.81  8.8  % 9.1  %
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Financial Supplement
Fourth Quarter 2023
Three Months Ended December 31, Change
Dollars and units in thousands, except per pallet data 2023 Actual
2023 Constant Currency(1)
2022 Actual Actual Constant Currency
NON-SAME STORE WAREHOUSE
Number of non-same store warehouses(2)
21 21 n/a n/a
Global Warehouse non-same store revenue:
Rent and storage $ 21,999  $ 21,879  $ 14,047  n/r n/r
Warehouse services 16,110  15,932  14,011  n/r n/r
Total non-same store revenue $ 38,109  $ 37,811  $ 28,058  n/r n/r
Global Warehouse non-same store contribution (NOI) $ 11,978  $ 11,906  $ (176) n/r n/r
Global Warehouse non-same store margin 31.4  % 31.5  % (0.6) % n/r n/r
Global Warehouse non-same store rent and storage metrics:
Average economic occupied pallets 325  n/a 238  n/r n/a
Average physical occupied pallets 289  n/a 214  n/r n/a
Average physical pallet positions 456  n/a 311  n/r n/a
Economic occupancy percentage 71.3  % n/a 76.5  % n/r n/a
Physical occupancy percentage 63.4  % n/a 68.8  % n/r n/a
Non-same store rent and storage revenue per average economic occupied pallet $ 67.69  $ 67.32  $ 59.02  n/r n/r
Non-same store rent and storage revenue per average physical occupied pallet $ 76.12  $ 75.71  $ 65.64  n/r n/r
Global Warehouse non-same store services metrics:
Throughput pallets 700  n/a 567  n/r n/a
Non-same store warehouse services revenue per throughput pallet $ 23.01  $ 22.76  $ 24.71  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)

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Financial Supplement
Fourth Quarter 2023
Year Ended December 31, Change
Dollars in thousands 2023 Actual 2023 Constant Currency(1) 2022 Actual Actual Constant currency
TOTAL WAREHOUSE SEGMENT
Number of total warehouses 240 240 n/a n/a
Global Warehouse revenue:
Rent and storage $ 1,101,741  $ 1,113,052  $ 999,388  10.2  % 11.4  %
Warehouse services 1,289,348  1,299,295  1,303,583  (1.1) % (0.3) %
Total revenue $ 2,391,089  $ 2,412,347  $ 2,302,971  3.8  % 4.7  %
Global Warehouse contribution (NOI) $ 722,603  $ 728,579  $ 636,232  13.6  % 14.5  %
Global Warehouse margin 30.2  % 30.2  % 27.6  % 259 bps 258 bps
Units in thousands except per pallet data
Global Warehouse rent and storage metrics:
Average economic occupied pallets 4,546  n/a 4,318  5.3  % n/a
Average physical occupied pallets 4,120  n/a 3,991  3.2  % n/a
Average physical pallet positions 5,442  n/a 5,431  0.2  % n/a
Economic occupancy percentage 83.5  % n/a 79.5  % 403 bps n/a
Physical occupancy percentage 75.7  % n/a 73.5  % 222 bps n/a
Total rent and storage revenue per average economic occupied pallet $ 242.35  $ 244.84  $ 231.44  4.7  % 5.8  %
Total rent and storage revenue per average physical occupied pallet $ 267.41  $ 270.16  $ 250.40  6.8  % 7.9  %
Global Warehouse services metrics:
Throughput pallets 37,524  n/a 40,093  (6.4) % n/a
Total warehouse services revenue per throughput pallet $ 34.36  $ 34.63  $ 32.51  5.7  % 6.5  %
SAME STORE WAREHOUSE
Number of same store warehouses 219 219 n/a n/a
Global Warehouse same store revenue:
Rent and storage $ 1,024,515  $ 1,035,596  $ 944,102  8.5  % 9.7  %
Warehouse services 1,233,344  1,243,103  1,240,378  (0.6) % 0.2  %
Total same store revenue $ 2,257,859  $ 2,278,699  $ 2,184,480  3.4  % 4.3  %
Global Warehouse same store contribution (NOI) $ 708,521  $ 714,581  $ 633,714  11.8  % 12.8  %
Global Warehouse same store margin 31.4  % 31.4  % 29.0  % 237 bps 235 bps
Units in thousands except per pallet data
Global Warehouse same store rent and storage metrics:
Average economic occupied pallets 4,268  n/a 4,099  4.1  % n/a
Average physical occupied pallets 3,877  n/a 3,788  2.3  % n/a
Average physical pallet positions 5,065  n/a 5,128  (1.2) % n/a
Economic occupancy percentage 84.3  % n/a 79.9  % 433 bps n/a
Physical occupancy percentage 76.5  % n/a 73.9  % 268 bps n/a
Same store rent and storage revenue per average economic occupied pallet $ 240.05  $ 242.64  $ 230.32  4.2  % 5.3  %
Same store rent and storage revenue per average physical occupied pallet $ 264.25  $ 267.11  $ 249.23  6.0  % 7.2  %
Global Warehouse same store services metrics:
Throughput pallets 35,227  n/a 37,841  (6.9) % n/a
Same store warehouse services revenue per throughput pallet $ 35.01  $ 35.29  $ 32.78  6.8  % 7.7  %
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Financial Supplement
Fourth Quarter 2023
Year Ended December 31, Change
Dollars in thousands 2023 Actual 2023 Constant Currency(1) 2022 Actual Actual Constant currency
NON-SAME STORE WAREHOUSE
Number of non-same store warehouses(2)
21 21 n/a n/a
Global Warehouse non-same store revenue:
Rent and storage $ 77,226  $ 77,456  $ 55,286  n/r n/r
Warehouse services 56,004  56,192  63,205  n/r n/r
Total non-same store revenue $ 133,230  $ 133,648  $ 118,491  n/r n/r
Global Warehouse non-same store contribution (NOI) $ 14,082  $ 13,998  $ 2,518  n/r n/r
Global Warehouse non-same store margin 10.6  % 10.5  % 2.1  % n/r n/r
Units in thousands except per pallet data
Global Warehouse non-same store rent and storage metrics:
Average economic occupied pallets 278  n/a 219  n/r n/a
Average physical occupied pallets 243  n/a 203  n/r n/a
Average physical pallet positions 377  n/a 303  n/r n/a
Economic occupancy percentage 73.7  % n/a 72.3  % n/r n/a
Physical occupancy percentage 64.5  % n/a 67.0  % n/r n/a
Non-same store rent and storage revenue per average economic occupied pallet $ 277.79  $ 278.62  $ 252.45  n/r n/r
Non-same store rent and storage revenue per average physical occupied pallet $ 317.80  $ 318.75  $ 272.34  n/r n/r
Global Warehouse non-same store services metrics:
Throughput pallets 2,297  n/a 2,250  n/r n/a
Non-same store warehouse services revenue per throughput pallet $ 24.38  $ 24.46  $ 28.09  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)


Fixed Commitment Rent and Storage Revenue
As of December 31, 2023, $576.8 million of the Company’s annualized rent and storage revenue were derived from customers with fixed commitment storage contracts. This compares to $550.7 million at the end of the third quarter of 2023 and $419.5 million at the end of the fourth quarter of 2022. 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, 52.2% 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 2023, economic occupancy for the total warehouse segment was 82.7% and warehouse segment same store pool was 83.7%, representing a 910 basis point and 921 basis point increase above physical occupancy, respectively. Economic occupancy for the total warehouse segment decreased 112 basis points, and the warehouse segment same store pool decreased 53 basis points as compared to the fourth quarter of 2022. The reduction in occupancy reflects the ramp in manufacturer production during the fourth quarter of 2022 as labor improved, which did not recur in 2023.

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Financial Supplement
Fourth Quarter 2023
Real Estate Portfolio
As of December 31, 2023, the Company’s portfolio consists of 245 facilities. The Company ended the fourth quarter of 2023 with 240 facilities in its Global Warehouse segment portfolio and five facilities in its Third-party managed segment. The same store population consists of 219 facilities for the quarter ended December 31, 2023. The remaining 21 non-same store population consists of: three sites acquired through acquisition, 12 sites in the expansion and development phase, three leased sites that we purchased, one temporarily leased facility in Australia, one leased facility we ceased operations during fourth quarter of 2022 in anticipation of the upcoming lease maturity, and one leased site we exited in preparation to lease to a third party.

Balance Sheet Activity and Liquidity
As of December 31, 2023, the Company had total liquidity of approximately $797.4 million, including cash and capacity on its revolving credit facility. Total debt outstanding was $3.2 billion (inclusive of $259.1 million of financing leases/sale lease-backs and exclusive of unamortized deferred financing fees), of which 92% was in an unsecured structure. At quarter end, net debt to pro forma Core EBITDA was approximately 5.6x. The Company’s total debt outstanding includes $3.0 billion of real estate debt, which excludes sale-leaseback and financing lease obligations. The Company’s real estate debt has a remaining weighted average term of 5.3 years and carries a weighted average contractual interest rate of 3.8%. As of December 31, 2023, 88% 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 12, 2023, the Company’s Board of Directors declared a dividend of $0.22 per share for the fourth quarter of 2023, which was paid on January 12, 2024 to common stockholders of record as of December 31, 2023.

2024 Outlook
The Company announced its 2024 annual AFFO per share guidance to be within the range of $1.32 - $1.42. Refer to page 42 of this 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 22, 2024 at 5:00 p.m. Eastern Time to discuss its fourth quarter 2023 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 fifteen 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#13740732. The telephone replay will be available starting shortly after the call until March 7, 2024.
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.
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Financial Supplement
Fourth Quarter 2023

About the Company
Americold is a global leader in temperature-controlled logistics real estate and value added services. Focused on the ownership, operation, acquisition and development of temperature-controlled warehouses, Americold owns and/or operates 245 temperature-controlled warehouses, with approximately 1.5 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 NAREIT FFO, core FFO, AFFO, EBITDAre, Core EBITDA; same store segment revenue, contribution (NOI), margin, and maintenance capital expenditures. Definitions of these non-GAAP metrics are included in our quarterly 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 press release 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 press release may not be comparable to similarly titled measures disclosed by other companies, including other REITs.

Forward-Looking Statements
This press release 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: rising inflationary pressures, increased interest rates and operating costs; labor and power costs; labor shortages; our relationship with our associates, the occurrence of any work stoppages or any disputes under our collective bargaining agreements and employment related litigation; the impact of supply chain disruptions; risks related to rising construction costs; risks related to expansions of existing properties and developments of new properties, including failure to meet budgeted or stabilized returns within expected time frames, or at all, in respect thereof; uncertainty of revenues, given the nature of our customer contracts; acquisition risks, including the failure to identify or complete attractive acquisitions or failure to realize the intended benefits from our recent acquisitions; difficulties in expanding our operations into new markets; uncertainties and risks related to public health crises; a failure of our information technology systems, systems conversions and integrations, cybersecurity attacks or a breach of our information security systems, networks or processes, including those related to the cyber matter which occurred on April 26, 2023; risks related to implementation of the new ERP system, defaults or non-renewals of significant customer contracts; risks related to privacy and data security concerns, and data collection and transfer restrictions and related foreign regulations; changes in applicable governmental regulations and tax legislation; risks related to current and potential international operations and properties; actions by our competitors and their increasing ability to compete with us; changes in foreign currency exchange rates; 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; liabilities as a result of our participation in multi-employer pension plans; risks related to the partial ownership of properties, including our JV investments; risks related to natural disasters; adverse economic or real estate developments in our geographic markets or the temperature-controlled warehouse industry; changes in real estate and zoning laws and increases in real property tax rates; general economic conditions; risks associated with the ownership of real estate generally and temperature-controlled warehouses in particular; possible environmental liabilities; uninsured losses or losses in excess of our insurance coverage; financial market fluctuations; our failure to obtain necessary outside financing; risks related to, or restrictions contained in, our debt financings; decreased storage rates or increased vacancy rates; the potential dilutive effect of our common stock offerings; the cost and time requirements as a result of our operation as a publicly traded REIT; and our failure to maintain our status as a REIT.
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Financial Supplement
Fourth Quarter 2023
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 press release include those regarding our 2023 outlook and our migration of our customers to fixed commitment storage contracts. 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, 2022, and Quarterly Reports on From 10-Q for the quarters ended March 31, 2023, June 30, 2023 and September 30, 2023, and other reports filed with the Securities and Exchange Commission, 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
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Financial Supplement
Fourth Quarter 2023
                                        
Selected Quarterly Financial Data
In thousands, except per share amounts As of
Capitalization: Q4 23 Q3 23 Q2 23 Q1 23 Q4 22
Fully diluted common stock outstanding at quarter end(1)
285,771 285,869 272,479 272,522 271,702
Common stock share price at quarter end $30.27 $30.41 $32.30 $28.45 $28.31
Market value of common equity $8,650,288 $8,693,276 $8,801,072 $7,753,251 $7,691,884
Gross debt (2)
$3,262,970 $3,165,843 $3,568,567 $3,450,715 $3,331,027
Less: cash and cash equivalents 60,392 53,831 48,873 47,222 53,063
Net debt $3,202,578 $3,112,012 $3,519,694 $3,403,493 $3,277,964
Total enterprise value $11,852,866 $11,805,288 $12,320,766 $11,156,744 $10,969,848
Net debt / total enterprise value 27.0  % 26.4  % 28.6  % 30.5  % 29.9  %
Net debt to pro forma Core EBITDA(2)
5.58x 5.68x 6.59x 6.54x 6.61x
Three Months Ended
Selected Operational Data: Q4 23 Q3 23 Q2 23 Q1 23 Q4 22
Warehouse segment revenue $612,262 $602,605 $581,170 $595,052 $598,690
Total revenue 679,291 667,939 649,610 676,489 721,504
Operating (loss) income (194,321) 33,000 20,667 32,349 33,044
Net (loss) income from continuing operations (226,800) (2,299) (96,527) (190) 4,917
Net (loss) income (226,800) (2,096) (104,802) (2,571) 2,955
Total warehouse segment contribution (NOI) (3)
197,102 177,832 172,842 174,827 172,327
Total segment contribution (NOI) (3)
209,835 189,120 184,051 187,566 188,226
Selected Other Data:
Core EBITDA (4)
$160,270 $144,047 $134,687 $133,076 $136,822
Core funds from operations (FFO) (1)(4)
84,764 69,587 62,497 60,846 70,168
Adjusted funds from operations (AFFO) (1)(4)
108,017 88,162 75,557 79,889 78,219
Net (loss) income per share - basic $(0.80) $(0.01) $(0.39) $(0.01) $0.01
Net (loss) income per share - diluted $(0.80) $(0.01) $(0.39) $(0.01) $0.01
Core FFO per diluted share (4)
$0.30 $0.25 $0.23 $0.22 $0.26
AFFO per diluted share (4)
$0.38 $0.32 $0.28 $0.29 $0.29
Dividend distributions declared per common share (5)
$0.22 $0.22 $0.22 $0.22 $0.22
Diluted AFFO payout ratio (6)
57.9  % 68.8  % 78.6  % 75.9  % 75.9  %
Portfolio Statistics:
Total global warehouses 245 243 242 243 242
Average economic occupancy 82.7  % 83.0  % 84.4  % 84.0  % 83.8  %
Average physical occupancy 73.6  % 74.7  % 77.2  % 77.3  % 78.1  %
Total global same-store warehouses 219 219 220 221 208

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Financial Supplement
Fourth Quarter 2023
                                        
(1) Assumes the exercise of all outstanding stock options using the treasury stock method, conversion of all outstanding restricted stock and OP units, and incorporates forward contracts using the treasury stock method
As of
(2) Net Debt to Core EBITDA Computation 12/31/2023 12/31/2022
Total debt $ 3,252,392  $ 3,317,983 
Deferred financing costs 10,578 13,044 
Gross debt $3,262,970 $3,331,027
Adjustments:
Less: cash, cash equivalents and restricted cash 60,392  53,063 
Net debt $ 3,202,578  $ 3,277,964 
Core EBITDA - last twelve months $572,080 $499,766
Net Core EBITDA from acquisitions, dispositions and lease exits (a) 2,069  (3,588)
Pro forma Core EBITDA - last twelve months $574,149 $496,178
Net debt to pro forma Core EBITDA 5.58x 6.61x
(a) As of December 31, 2023, amount includes nine months of Core EBITDA from the Safeway acquisition prior to Americold’s ownership as well as the facility lease expense for sites that it previously incurred operating lease expense for but was subsequently purchased.
(3) Reconciliation of segment contribution (NOI)
Three Months Ended
Q4 23 Q3 23 Q2 23 Q1 23 Q4 22
Warehouse segment contribution (NOI) $197,102 $177,832 $172,842 $174,827 $172,327
Transportation segment contribution (NOI) 10,912  9,659  9,809  11,660  14,452 
Third-party managed segment contribution (NOI) 1,821  1,629  1,400  1,079  1,447 
Total segment contribution (NOI) $209,835 $189,120 $184,051 $187,566 $188,226
Depreciation and amortization (94,099) (89,728) (84,892) (85,024) (82,467)
Selling, general and administrative (57,763) (52,383) (53,785) (62,855) (60,073)
Acquisition, cyber incident and other, net (15,774) (13,931) (27,235) (7,147) (11,899)
(Loss) gain from sale of real estate (5) (78) 2,528  (191) 21 
Impairment of indefinite and long-lived assets (236,515) —  —  —  (764)
U.S. GAAP operating (loss) income ($194,321) $33,000 $20,667 $32,349 $33,044
(4) See “Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and AFFO” and “Reconciliation of Net (Loss) Income to EBITDA, EBITDAre, and Core EBITDA” pages 19-21
(5) Distributions per common share Three Months Ended
Q4 23 Q3 23 Q2 23 Q1 23 Q4 22
Distributions declared on common stock during the quarter $62,645 $62,868 $59,921 $59,932 $59,751
Common stock outstanding at quarter end 283,699  283,517  270,186  270,096  269,815 
Distributions declared per common share $0.22 $0.22 $0.22 $0.22 $0.22
(6) Calculated as distributions declared on common stock divided by AFFO per weighted average diluted share
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Financial Supplement
Fourth Quarter 2023
                                        
Financial Information
Americold Realty Trust, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except shares and per share amounts)
December 31, 2023 December 31, 2022
Assets
 Property, buildings, and equipment:
Land $ 820,831  $ 786,975 
Buildings and improvements 4,464,359  4,245,607 
Machinery and equipment 1,565,431  1,407,874 
Assets under construction 452,312  526,811 
7,302,933  6,967,267 
Accumulated depreciation (2,196,196) (1,901,450)
Property, buildings, and equipment – net 5,106,737  5,065,817 
Operating lease right-of-use assets 343,532  352,553 
Accumulated amortization-operating leases (96,230) (76,334)
Operating leases-net 247,302  276,219 
Financing Leases:
Buildings and improvements 13,542  13,546 
Machinery and equipment 161,446  127,009 
174,988  140,555 
Accumulated depreciation (69,824) (57,626)
Financing leases – net 105,164  82,929 
 Cash, cash equivalents, and restricted cash 60,392  53,063 
Accounts receivable, net of allowance of $21,647 and $15,951 at December 31, 2023 and 2022, respectively 426,048  430,042 
 Identifiable intangible assets – net 897,414  925,223 
 Goodwill 794,004  1,033,637 
 Investments in and advances to partially owned entities and other 38,113  78,926 
 Other assets 194,078  158,705 
 Total assets $ 7,869,252  $ 8,104,561 
Liabilities and equity
 Liabilities:
Borrowings under revolving line of credit $ 392,156  $ 500,052 
Accounts payable and accrued expenses 568,764  557,540 
Senior unsecured notes and term loans - net of deferred financing cost of $10,578 and $13,044 at December 31, 2023 and 2022, respectively 2,601,122  2,569,281 
Sale-leaseback financing obligations 161,937  171,089 
Financing lease obligations 97,177  77,561 
Operating lease obligations 240,251  264,634 
Unearned revenue 28,379  32,046 
Pension and postretirement benefits 1,624  1,531 
Deferred tax liability - net 135,797  135,098 
Multiemployer pension plan withdrawal liability 7,458  7,851 
Total liabilities 4,234,665  4,316,683 
Equity
Stockholders' equity
Common stock, $0.01 par value per share – 500,000,000 authorized shares; 283,699,120 and 269,814,956 issued and outstanding at December 31, 2023 and 2022, respectively 2,837  2,698 
Paid-in capital 5,625,907  5,191,969 
Accumulated deficit and distributions in excess of net earnings (1,995,975) (1,415,198)
Accumulated other comprehensive loss (16,640) (6,050)
Total stockholders’ equity 3,616,129  3,773,419 
Noncontrolling interests:
Noncontrolling interests in operating partnership 18,458  14,459 
Total equity 3,634,587  3,787,878 
Total liabilities and equity $ 7,869,252  $ 8,104,561 
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Financial Supplement
Fourth Quarter 2023
                                        
Americold Realty Trust, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share amounts)
Three Months Ended December 31, Year Ended December 31,
2023 2022 2023 2022
Revenues:
Rent, storage, and warehouse services $ 612,262  $ 598,690  $ 2,391,089  $ 2,302,971 
Transportation services 57,878  76,190  239,670  313,358 
Third-party managed services 9,151  46,624  42,570  298,406 
Total revenues 679,291  721,504  2,673,329  2,914,735 
Operating expenses:
Rent, storage, and warehouse services cost of operations 415,160  426,363  1,668,486  1,666,739 
Transportation services cost of operations 46,966  61,738  197,630  265,956 
Third-party managed services cost of operations 7,330  45,177  36,641  286,077 
Depreciation and amortization 94,099  82,467  353,743  331,446 
Selling, general, and administrative 57,763  60,073  226,786  231,067 
Acquisition, cyber incident, and other, net 15,774  11,899  64,087  32,511 
Impairment of indefinite and long-lived assets 236,515  764  236,515  7,380 
Loss (gain) on sale of real estate (21) (2,254) 5,689 
Total operating expenses 873,612  688,460  2,781,634  2,826,865 
Operating (loss) income (194,321) 33,044  (108,305) 87,870 
Other income (expense)
Interest expense (33,681) (33,407) (140,107) (116,127)
Loss on debt extinguishment, modifications and termination of derivative instruments (627) (933) (2,482) (3,217)
Gain (loss) from partially owned entities 174  (139) (1,442) (918)
Impairment of related party loan receivable —  —  (21,972) — 
Loss on put option —  —  (56,576) — 
Other, net 1,054  3,661  2,795  2,464 
(Loss) income from continuing operations before income taxes (227,401) 2,226  (328,089) (29,928)
Income tax benefit (expense)
Current (2,627) (721) (8,508) (3,725)
Deferred 3,228  3,412  10,781  22,561 
Income tax benefit 601  2,691  2,273  18,836 
Net (loss) income
Net (loss) income from continuing operations (226,800) 4,917  (325,816) (11,092)
Net loss from discontinued operations —  (1,962) (10,453) (8,382)
Net (loss) income $ (226,800) $ 2,955  $ (336,269) $ (19,474)
Net loss attributable to noncontrolling interests 41  11  (54) (34)
Net (loss) income attributable to Americold Realty Trust, Inc. $ (226,841) $ 2,944  $ (336,215) $ (19,440)
Weighted average common stock outstanding – basic 284,263  269,826  275,773  269,565 
Weighted average common stock outstanding – diluted 284,263  270,770  275,773  269,565 
Net (loss) income per common share - basic $ (0.80) $ 0.02  $ (1.18) $ (0.04)
Net loss per common share from discontinued operations - basic $ —  $ (0.01) $ (0.04) $ (0.03)
Basic (loss) income per share $ (0.80) $ 0.01  $ (1.22) $ (0.07)
Net (loss) income per common share - diluted $ (0.80) $ 0.02  $ (1.18) $ (0.04)
Net loss per common share from discontinued operations - diluted $ —  $ (0.01) $ (0.04) $ (0.03)
Diluted (loss) income per share $ (0.80) $ 0.01  $ (1.22) $ (0.07)
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Financial Supplement
Fourth Quarter 2023
                                        
Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and AFFO
(In thousands, except per share amounts)
  Three Months Ended YTD
Q4 23 Q3 23 Q2 23 Q1 23 Q4 22 2023 2022
Net (loss) income $ (226,800) $ (2,096) $ (104,802) $ (2,571) $ 2,955  $ (336,269) $ (19,474)
Adjustments:
Real estate related depreciation 57,183  56,373  54,740  54,541  53,094  222,837  210,171 
Loss (gain) on sale of real estate 78  (2,528) 191  (21) (2,254) 5,689 
Net loss (gain) on asset disposals 260  (25) —  —  175  235  1,135 
Impairment charges on real estate assets —  —  —  —  —  —  3,407 
Our share of reconciling items related to partially owned entities 280  290  232  903  1,209  1,705  4,410 
NAREIT Funds from operations $ (169,072) $ 54,620  $ (52,358) $ 53,064  $ 57,412  $ (113,746) $ 205,338 
Adjustments:
Net loss (gain) on sale of non-real estate assets 3,312  (296) 289  420  2,274  3,725  2,421 
Acquisition, cyber incident and other, net 15,774  13,931  27,235  7,147  11,899  64,087  32,511 
Goodwill impairment 236,515  —  —  —  —  236,515  3,209 
Loss on debt extinguishment, modifications and termination of derivative instruments 627  683  627  545  933  2,482  3,217 
Foreign currency exchange (gain) loss (28) 705  212  (458) (2,477) 431  975 
Gain on legal settlement related to prior period operations (2,180) —  —  —  —  (2,180) — 
Gain on extinguishment of New Market Tax Credit Structure —  —  —  —  —  —  (3,410)
Loss on deconsolidation of subsidiary contributed to LATAM joint venture —  —  —  —  —  —  4,148 
Our share of reconciling items related to partially owned entities (184) 147  (27) 128  127  64  574 
(Gain) loss from discontinued operations, net of tax —  (203) 8,275  —  —  8,072  — 
Impairment of related party receivable —  —  21,972  —  —  21,972  — 
Loss on put option —  —  56,576  —  —  56,576  — 
Gain on sale of LATAM JV —  —  (304) —  —  (304) — 
Core FFO(b)
$ 84,764  $ 69,587  $ 62,497  $ 60,846  $ 70,168  $ 277,694  $ 248,983 
Adjustments:
Amortization of deferred financing costs and pension withdrawal liability 1,290  1,286  1,279  1,240  1,305  5,095  4,833 
Amortization of below/above market leases 360  369  375  402  534  1,506  2,131 
Non-real estate asset impairment —  —  —  —  764  —  764 
Straight-line net rent 597  544  361  (491) 333  1,011  747 
Deferred income tax benefit (3,228) (2,473) (1,459) (3,621) (3,412) (10,781) (22,561)
Stock-based compensation expense 5,780  6,203  4,639  6,970  5,036  23,592  27,137 
Non-real estate depreciation and amortization 36,916  33,355  30,152  30,483  29,373  130,906  121,275 
Maintenance capital expenditures (18,670) (20,907) (22,590) (16,244) (26,701) (78,411) (85,511)
Our share of reconciling items related to partially owned entities 208  198  303  304  819  1,013  2,482 
Adjusted FFO(b)
$ 108,017  $ 88,162  $ 75,557  $ 79,889  $ 78,219  351,625  $ 300,280 





19

    
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Financial Supplement
Fourth Quarter 2023
                                        
Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and AFFO (continued)
(In thousands except per share amounts)
Three Months Ended YTD
Q4 23 Q3 23 Q2 23 Q1 23 Q4 22 2023 2022
NAREIT Funds from operations(b)
$ (169,072) $ 54,620  $ (52,358) $ 53,064  $ 57,412  $ (113,746) $ 205,338 
Core FFO(b)
$ 84,764  $ 69,587  $ 62,497  $ 60,846  $ 70,168  $ 277,694  $ 248,984 
Adjusted FFO(b)
$ 108,017  $ 88,162  $ 75,557  $ 79,889  $ 78,219  $ 351,625  $ 300,281 
Reconciliation of weighted average shares:
Weighted average basic shares for net income calculation 284,263  278,137  270,462  270,230  269,826  275,773  269,565 
Dilutive stock options and unvested restricted stock units 502  519  695  778  944  624  1,041 
Weighted average dilutive shares 284,765  278,656  271,157  271,008  270,770  276,397  270,606 
NAREIT FFO - basic per share(b)
$ (0.59) $ 0.20  $ (0.19) $ 0.20  $ 0.21  $ (0.41) $ 0.76 
NAREIT FFO - diluted per share(b)
$ (0.59) $ 0.20  $ (0.19) $ 0.20  $ 0.21  $ (0.41) $ 0.76 
Core FFO - basic per share (b)
$ 0.30  $ 0.25  $ 0.23  $ 0.23  $ 0.26  $ 1.01  $ 0.92 
Core FFO - diluted per share(b)
$ 0.30  $ 0.25  $ 0.23  $ 0.22  $ 0.26  $ 1.00  $ 0.92 
Adjusted FFO - basic per share (b)
$ 0.38  $ 0.32  $ 0.28  $ 0.30  $ 0.29  $ 1.28  $ 1.11 
Adjusted FFO - diluted per share(b)
$ 0.38  $ 0.32  $ 0.28  $ 0.29  $ 0.29  $ 1.27  $ 1.11 
(a)Maintenance capital expenditures include capital expenditures made to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology.
(b)During the three and six months ended June 30, 2023, management excluded losses from discontinued operations from Core FFO applicable to common stockholders, and Adjusted FFO applicable to common stockholders and included certain losses from discontinued operations for NAREIT FFO and all of the related per share amounts for Core, NAREIT, and Adjusted FFO. For purposes of comparability using this same approach, the following adjusted historical results recasted are as follows:
Three Months Ended-Recasted YTD Recasted
(In thousands except per share amounts)
Q1 23 Q4 22 2023 2022
NAREIT FFO $ 52,432  $ 56,457  $ (114,378) $ 202,088 
Core FFO $ 62,547  $ 71,157  $ 279,395  $ 254,078 
Adjusted FFO applicable to common shareholders $ 81,506  $ 78,717  $ 353,242  $ 303,007 
NAREIT FFO - basic per share $ 0.19  $ 0.21  $ (0.41) $ 0.75 
NAREIT FFO - diluted per share $ 0.19  $ 0.21  $ (0.41) $ 0.75 
Core FFO - basic per share $ 0.23  $ 0.26  $ 1.01  $ 0.94 
Core FFO - diluted per share $ 0.23  $ 0.26  $ 1.01  $ 0.94 
Adjusted FFO - basic per share $ 0.30  $ 0.29  $ 1.28  $ 1.12 
Adjusted FFO - diluted per share $ 0.30  $ 0.29  $ 1.28  $ 1.12 

20

    
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Financial Supplement
Fourth Quarter 2023
                                        
Reconciliation of Net (Loss) Income to EBITDA, NAREIT EBITDAre, and Core EBITDA
(In thousands)
  Three Months Ended Year End
Q4 23 Q3 23 Q2 23 Q1 23 Q4 22 2023 2022
Net (loss) income $ (226,800) $ (2,096) $ (104,802) $ (2,571) $ 2,955  $ (336,269) $ (19,474)
Adjustments:
Depreciation and amortization 94,099  89,728  84,892  85,024  82,467  353,743  331,446 
Interest expense 33,681  35,572  36,431  34,423  33,407  140,107  116,127 
Income tax (benefit) expense (601) (492) 464  (1,644) (2,691) (2,273) (18,836)
EBITDA $ (99,621) $ 122,712  $ 16,985  $ 115,232  $ 116,138  $ 155,308  $ 409,263 
Adjustments:
Loss (gain) on sale of real estate 78  (2,528) 191  (21) (2,254) 5,689 
Adjustment to reflect share of EBITDAre of partially owned entities 1,533  1,495  3,085  2,883  5,019  8,996  17,815 
NAREIT EBITDAre(a)
$ (98,083) $ 124,285  $ 17,542  $ 118,306  $ 121,136  $ 162,050  $ 432,767 
Adjustments:
Acquisition, cyber incident and other, net 15,774  13,931  27,235  7,147  11,899  64,087  32,511 
(Gain) loss from investments in partially owned entities (174) 259  709  3,029  2,101  3,823  9,300 
Impairment of indefinite and long-lived assets 236,515  —  —  —  764  236,515  7,380 
Foreign currency exchange (gain) loss (28) 705  212  (458) (2,477) 431  975 
Stock-based compensation expense 5,780  6,203  4,639  6,970  5,036  23,592  27,137 
Loss on debt extinguishment, modifications and termination of derivative instruments 627  683  627  545  933  2,482  3,217 
Gain (loss) on real estate and other asset disposals 3,572  (321) 289  420  2,449  3,960  3,556 
Gain on legal settlement related to prior period operations (2,180) —  —  —  —  (2,180) — 
Gain on extinguishment of New Market Tax Credit Structure —  —  —  —  —  —  (3,410)
Loss on deconsolidation of subsidiary contributed to LATAM joint venture —  —  —  —  —  —  4,148 
Reduction in EBITDAre from partially owned entities (1,533) (1,495) (3,085) (2,883) (5,019) (8,996) (17,815)
Gain from sale of partially owned entities —  —  (304) —  —  (304) — 
(Gain) loss from discontinued operations, net of tax —  (203) 8,275  —  —  8,072  — 
Impairment of related party receivable —  —  21,972  —  —  21,972  — 
Loss on put option —  —  56,576  —  —  56,576  — 
Core EBITDA $ 160,270  $ 144,047  $ 134,687  $ 133,076  $ 136,822  572,080  499,766 
(a)During the three and six months ended June 30, 2023, management included certain losses from discontinued operations in NAREIT EBITDAre. For purposes of comparability using this same approach, the following adjusted historical results recasted are as follows:
Three Months Ended-Recasted Year End Recasted
(In thousands) Q1 23 Q4 22 2023 2022
NAREIT EBITDAre $116,872 $117,602 $160,616 $419,791
21

    
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Financial Supplement
Fourth Quarter 2023
                                        
Acquisition, cyber incident and other, net
Dollars in thousands

This caption represents certain corporate costs that are highly variable from period to period and will be further detailed in our Annual Report on Form 10-K.

In addition to the costs recorded to Acquisition, cyber incident and other disclosed in the table below, the Company has invested $43.9 million as of December 31, 2023 and $3.3 million as of December 31, 2022 since the inception of Project Orion which is included in “Other Assets” on the condensed consolidated balance sheet.
Three Months Ended December 31, Year Ended December 31,
Acquisition, cyber incident and other, net 2023 2022 2023 2022
Project Orion expenses 6,226  3,945  13,929  3,945 
Cyber incident related costs, net of insurance recoveries 4,474  (1,425) 28,877  (2,210)
Pension plan termination charges 2,461  —  2,461  — 
Severance costs 2,197  1,470  11,668  6,530 
Acquisition and integration related costs 257  4,194  5,094  20,073 
Litigation 159  —  558  179 
Other, net —  —  1,500  (160)
Terminated site operations costs —  3,715  —  4,154 
Total Acquisition, cyber incident and other, net $ 15,774  $ 11,899  $ 64,087  $ 32,511 



22

    
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Financial Supplement
Fourth Quarter 2023
                                        
Debt Detail and Maturities
(In thousands)
As of December 31, 2023
Indebtedness:
Carrying Value
Contractual Interest Rate(1)
Effective Interest Rate(2)
Stated
Maturity Date(3)
Unsecured Debt(4)
Senior Unsecured Revolving Credit Facility - C$35M(5)
26,429  CDOR + 0.84% 6.88% 08/2027
Senior Unsecured Revolving Credit Facility - £78M(5)
99,302  SONIA + 0.84% 6.67% 08/2027
Senior Unsecured Revolving Credit Facility - USD(5)
34,000  SOFR + 0.84% 6.86% 08/2027
Senior Unsecured Revolving Credit Facility - A$191M(5)
130,108  BBSW + 0.84% 5.81% 08/2027
Senior Unsecured Revolving Credit Facility - €68M(5)
74,513  EURIBOR + 0.84% 5.29% 08/2027
Senior Unsecured Revolving Credit Facility - NZD44M(5)
27,804  BKBM + 0.84% 7.08% 08/2027
Senior Unsecured Term Loan A Facility Tranche A-1 - USD
375,000  SOFR + 0.94% 4.90% 08/2027
Senior Unsecured Term Loan A Facility Tranche A-2 - C$250M
188,775  CDOR + 0.94% 4.77% 01/2028
Senior Unsecured Term Loan A Facility Tranche A-3 - USD 270,000  SOFR + 0.94% 4.26% 01/2028
Series A notes - USD
200,000  4.68% 4.76% 01/2026
Series B notes - USD 400,000  4.86% 4.92% 01/2029
Series C notes - USD
350,000  4.10% 4.15% 01/2030
Series D notes - €400M
441,560  1.62% 1.67% 01/2031
Series E notes - €350M
386,365  1.65% 1.70% 01/2033
Total Unsecured Real Estate Debt
$ 3,003,856  3.84% 4.02%
5.3 years
Sale-leaseback financing obligations
161,937  10.99%
Financing lease obligations
97,177  3.90%
Total Debt Outstanding
$ 3,262,970  4.20%
Less: unamortized deferred financing costs
(10,578)
Total Book Value of Debt
$ 3,252,392 
Rate Type
% of Total
Fixed
$ 2,870,814  88%
Variable-unhedged
392,156  12%
Total Debt Outstanding
$ 3,262,970  100%
Debt Type
% of Total
Unsecured
$ 3,003,856  92%
Secured
259,114  8%
Total Debt Outstanding
$ 3,262,970  100%
(1)Interest rates as of December 31, 2023. At December 31, 2023, the Adjusted SOFR rate on our Senior Unsecured Revolving Credit Facility was 5.31%, the one-month CDOR rate was 5.44%, the one-month EURIBOR rate was 3.84%, the one-month SONIA rate was 5.19%, the one-month BBSW rate was 4.36%, the one-month BKBM rate was 5.63%. The entirety of our Senior Unsecured Term Loan Tranche A-1 is hedged at a weighted average rate of 4.60%. SOFR includes an adjustment of 0.10%, in addition to the margin. SONIA includes an adjustment of 0.03% in addition to our margin.
(2)The effective interest rates presented include the amortization of loan costs and are based on the hedged rate for the $375.0 million TLA Tranche A-1, the C$250.0 million TLA Tranche A-2, and the $270.0 million Tranche A-3. Subtotals of stated effective interest rates represent weighted average interest rates.
(3)Subtotals of stated maturity dates represent remaining weighted average life of the debt and assuming the exercise of extension options on the TLA Tranche A-1 and Senior Unsecured Revolving Credit Facility.
(4)Borrowing currency and value presented in caption unless USD denominated.
(5)The Senior Unsecured Revolving Credit maturity assumes two six-month extension options. The borrowing capacity as of December 31, 2023 is $1.15 billion less $20.8 million of outstanding letters of credit. The effective interest rate shown represents deferred financing fees allocated over the $1.15 billion committed.
23

    
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Financial Supplement
Fourth Quarter 2023
                                        
Operations Overview

Three Months Ended December 31, Year Ended December 31,
2023 2022 2023 2022
Segment revenues:
Warehouse 612,262  598,690  $ 2,391,089  $ 2,302,971 
Transportation 57,878  76,190  239,670  313,358 
Third-party managed 9,151  46,624  42,570  298,406 
Total revenues 679,291  721,504  2,673,329  2,914,735 
Segment contribution:
Warehouse 197,102  172,327  $ 722,603  $ 636,232 
Transportation 10,912  14,452  42,040  47,402 
Third-party managed 1,821  1,447  5,929  12,329 
Total segment contribution 209,835  188,226  770,572  695,963 
Reconciling items:
Depreciation and amortization (94,099) (82,467) (353,743) (331,446)
Selling, general, and administrative (57,763) (60,073) (226,786) (231,067)
Acquisition, cyber incident, and other, net (15,774) (11,899) (64,087) (32,511)
Impairment of indefinite and long-lived assets (236,515) (764) (236,515) (7,380)
(Loss) gain on sale of real estate (5) 21  2,254  (5,689)
Interest expense (33,681) (33,407) (140,107) (116,127)
Other, net 1,054  3,661  2,795  2,464 
Loss on debt extinguishment, modifications and termination of derivative instruments (627) (933) (2,482) (3,217)
Gain (loss) from partially owned entities 174  (139) (1,442) (918)
Impairment of related party loan receivable —  —  (21,972) — 
Loss on put option —  —  (56,576) — 
(Loss) income from continuing operations before income taxes $ (227,401) $ 2,226  $ (328,089) $ (29,928)
We view and manage our business through three primary business segments—warehouse, transportation, third-party managed. Our core business is our warehouse segment, where we provide temperature-controlled warehouse storage and related handling and other warehouse services. In our warehouse segment, we collect rent and storage fees from customers to store their frozen and perishable food and other products within our real estate portfolio. We also provide our customers with handling and other warehouse services related to the products stored in our buildings that are designed to optimize their movement through the cold chain, such as the placement of food products for storage and preservation, the retrieval of products from storage upon customer request, case-picking, blast freezing, produce grading and bagging, ripening, kitting, protein boxing, repackaging, e-commerce fulfillment, and other recurring handling services.
In our transportation segment, we broker and manage transportation of frozen and perishable food and other products for our customers. Our transportation services include consolidation services (i.e., consolidating a customer’s products with those of other customers for more efficient shipment), freight under management services (i.e., arranging for and overseeing transportation of customer inventory) and dedicated transportation services, each designed to improve efficiency and reduce transportation and logistics costs to our customers. We provide these transportation services at cost plus a service fee or, in the case of our consolidation or dedicated services, we may charge a fixed fee. We supplemented our regional, national and truckload consolidation services with the transportation operations from various warehouse acquisitions. We also provide multi-modal global freight forwarding services to support our customers’ needs in certain markets.
Under our third-party managed segment, we manage warehouses on behalf of third parties and provide warehouse management services to leading food manufacturers and retailers in their owned facilities. We believe using our third-party management services allows our customers to increase efficiency, reduce costs, reduce supply-chain risks and focus on their core businesses. We also believe that providing third-party management services allows us to offer a complete and integrated suite of services across the cold chain.
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Financial Supplement
Fourth Quarter 2023
                                        
Global Warehouse Economic and Physical Occupancy Trend
chart-9a59624a6adf4525a8ca.jpg
FY Q1 Q2 Q3 Q4

Note: Dotted lines represent incremental economic occupancy percentage.

We define average economic occupancy as the aggregate number of physically occupied pallets and any additional pallets otherwise contractually committed for a given period, without duplication. We estimate the number of contractually committed pallet positions by taking into account actual pallet commitments specified in each customer’s contract, and subtracting the physical pallet positions.
We define average physical occupancy as the average number of occupied pallets divided by the estimated number of average physical pallet positions in our warehouses for the applicable period. We estimate the number of physical pallet positions by taking into account actual racked space and by estimating unracked space on an as-if racked basis. We base this estimate on the total cubic feet of each room within the warehouse that is unracked divided by the volume of an assumed rack space that is consistent with the characteristics of the relevant warehouse. On a warehouse by warehouse basis, rack space generally ranges from three to four feet depending upon the type of facility and the nature of the customer goods stored therein. The number of our pallet positions is reviewed and updated quarterly, taking into account changes in racking configurations and room utilization.
Historically, providers of temperature-controlled warehouse space have offered storage services to customers on an as-utilized, on-demand basis. We have entered into fixed storage commitments with certain customers which give us, among other things, additional clarity around the expected occupancy of our warehouses. As of December 31, 2023, we had entered into contracts featuring fixed storage commitments or leases with 290 of our customers in our warehouse segment. Customers with fixed storage provisions commit to occupy a certain number of pallets at a designated storage rate for the applicable portion of their contractual term, whether the customer elects to physically store goods in a warehouse or not. As a result, certain pallets in our warehouses may generate storage revenue pursuant to fixed storage commitments despite not being physically occupied. To the extent that a customer with a fixed storage provision elects not to utilize all of its committed pallets in a particular warehouse, we have the flexibility to deploy those pallets to facilitate shorter-term customers that desire space on an as-utilized, on demand basis.
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Financial Supplement
Fourth Quarter 2023
Global Warehouse Portfolio

Country / Region
# of
warehouses
Cubic feet
(in millions)
  % of
total
cubic feet
Pallet
positions
(in thousands)
Average economic occupancy (1)
Average
physical
occupancy (1)
Revenues (2)
(in millions)
Segment
contribution
(NOI) (2)(3)
(in millions)
Total
customers (4)
Warehouse Segment Portfolio (5)
United States
East 53  376.8  25  % 1,176  85  % 72  % $ 635.6  $ 195.3  1,105 
Southeast 49  317.4  21  % 980  83  % 75  % 458.0  103.9  697 
Central 41  268.2  18  % 1,085  84  % 77  % 439.3  155.6  731 
West 45  273.7  18  % 1,158  80  % 74  % 401.5  140.6  624 
Canada 32.6  % 121  92  % 89  % 45.5  16.5  85 
North America Total 193  1,268.7    86  % 4,520  83  % 75  % $ 1,979.9  $ 611.9  2,373 
Netherlands 36.7  % 112  82  % 82  % 51.2  10.2  141 
United Kingdom 40.1  % 244  89  % 84  % 53.8  22.6  187 
Spain 15.2  % 77  61  % 61  % 21.5  5.3  275 
Portugal 11.5  % 58  64  % 64  % 11.6  2.7  175 
Ireland 9.5  % 59  79  % 70  % 20.4  4.9  144 
Austria 4.2  —  % 44  75  % 75  % 23.2  6.9  141 
Poland 3.5  —  % 14  95  % 95  % 6.3  1.4  62 
Europe Total 27  120.7  % 608  80  % 77  % $ 188.0  $ 54.0  1,235 
Australia 11  60.0  % 206  92  % 84  % 171.6  39.0  128 
New Zealand 20.4  % 86  97  % 88  % 38.9  13.9  62 
Asia-Pacific Total 18  80.4  % 292  94  % 85  % $ 210.5  $ 52.9  186 
Argentina 9.7  % 23  81  % 81  % 12.7  3.8  51 
South America Total 9.7  % 23  81  % 81  % $ 12.7  $ 3.8  51 
Warehouse Segment Total / Average 240  1,479.5    100  % 5,443  84  % 76  % $ 2,391.1  $ 722.6  3,826 
Third-Party Managed Portfolio
North America 20.2  100  % —  —  —  $ 19.8  $ 1.4 
Asia-Pacific —  —  % —  —  —  22.8  4.5 
Third-Party Managed Total / Average 20.2  100  % —  —  —  $ 42.6  $ 5.9 
Portfolio Total / Average 245  1,499.7  100  % 5,443  83  % 76  % $ 2,433.7  $ 728.5  3,826 
(1)Refer to the preceding section Global Warehouse Economic and Physical Occupancy Trend for our definitions of economic occupancy and physical occupancy.
(2)Years ended December 31, 2023.
(3)We use the term “segment contribution (NOI)” to mean a segment’s revenues less its cost of operations (excluding any depreciation and amortization, impairment charges, corporate-level selling, general and administrative expenses and corporate-level acquisition, cyber incident and other, net). The applicable segment contribution (NOI) from our owned and leased warehouses and our third-party managed warehouses is included in our warehouse segment contribution (NOI) and third-party managed segment contribution (NOI), respectively.
(4)We serve some of our customers in multiple geographic regions and in multiple facilities within geographic regions. As a result, the total number of customers that we serve is less than the total number of customers reflected in the table above that we serve in each geographic region.
(5)As of December 31, 2023, we owned 157 of our North American warehouses and 40 of our international warehouses, and we leased 36 of our North American warehouses and seven of our international warehouses. As of December 31, 2023, fourteen of our owned facilities were located on land that we lease pursuant to long-term ground leases.
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Financial Supplement
Fourth Quarter 2023
                                        
chart-1b42c6083e4745a1a9aa.jpgchart-ddcd2826dbaf4825a98a.jpg
chart-d5497f554246442297ea.jpgchart-b07abcc8e9af4d42a0ea.jpg
_______________________________________________
(1)Retail reflects a broad variety of product types from retail customers.
(2)Packaged foods reflects a broad variety of temperature-controlled meals and foodstuffs.
(3)Distributors reflects a broad variety of product types from distributor customers.
____________________
Note: December 31, 2023 LTM Revenue and NOI pro forma 2022 acquisitions.
December 31, 2023 warehouse segment cubic feet includes all 2022 acquisitions.
Totals may not foot due to rounding.
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Financial Supplement
Fourth Quarter 2023
                                        
Fixed Commitment and Lease Maturity Schedules

The following table sets forth a summary schedule of the expirations for any defined contracts featuring fixed storage commitments and leases in effect as of December 31, 2023. The information set forth in the table assumes no exercise of extension options under these contracts and leases.
Contract Expiration Year Number
of
Contracts
Annualized
Committed Rent
& Storage
Revenue
(in thousands)
% of Total
Warehouse
Rent & Storage
Segment
Revenue for the
Years ended
December 31, 2023
Total Warehouse Segment Revenue Generated by Contracts with Fixed Commitments & Leases for the Years ended  December 31, 2023(1) (in thousands)
Annualized
Committed Rent
& Storage
Revenue at
Expiration(2)
(in thousands)
Month-to-Month 174  $ 112,575  10.2  % $ 244,436  $ 112,576 
2024 187  141,310  12.8  % 322,828  140,435 
2025 68  87,041  7.9  % 158,953  89,785 
2026 50  99,144  9.0  % 182,497  104,497 
2027 22  16,805  1.5  % 31,429  18,168 
2028 16  13,575  1.2  % 24,325  14,720 
2029+ 23  106,390  9.6  % 302,191  121,887 
Total 540  $ 576,840  52.2  % $ 1,266,659  $ 602,068 
____________________
Note: December 31, 2023 LTM total revenue and rent and storage revenue pro forma 2023 acquisitions.
(1)Represents monthly fixed storage commitments and lease rental payments under the relevant expiring defined contract and lease as of December 31, 2023, plus the weighted average monthly warehouse services revenues attributable to these contracts and leases for the last twelve months ended December 31, 2023, multiplied by 12.
(2)Represents annualized monthly revenues from fixed storage commitments and lease rental payments under the defined contracts and relevant expiring leases as of December 31, 2023 based upon the monthly revenues attributable thereto in the last month prior to expiration, multiplied by 12.



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Financial Supplement
Fourth Quarter 2023
                                        
The following table sets forth a summary schedule of the expirations of our facility leased warehouses and other leases pursuant to which we lease space to third parties in our warehouse portfolio, in each case, in place as of December 31, 2023. These leases had a weighted average remaining term of 46 months as of December 31, 2023.
Lease Expiration Year No. of
Leases
Expiring
Annualized
Rent(1)
(in thousands)
% of Total
Warehouse Rent &
Storage Segment
Revenue for the
Years ended
December 31, 2023
Leased
Square
Footage
(in thousands)
% Leased
Square
Footage
Annualized
Rent at
Expiration(2)
(in thousands)
Month-to-Month 11  $ 1,690  0.2  % 99  2.9  % $ 1,691 
2024 34  9,042  0.8  % 897  26.2  % 9,155 
2025 16  8,355  0.8  % 511  14.9  % 8,501 
2026 11  5,856  0.5  % 477  13.9  % 6,171 
2027 3,039  0.3  % 172  5.0  % 3,340 
2028 6,136  0.6  % 617  18.0  % 6,640 
2029+ 12,919  1.2  % 656  19.1  % 17,521 
Total 94  47,037  4.3  % —  3,429  100  % 53,019 
____________________
Note: December 31, 2023 LTM rent and storage revenue pro forma 2023 acquisitions.
(1)Represents monthly rental payments under the relevant leases as of December 31, 2023, multiplied by 12.
(2)Represents monthly rental payments under the relevant leases in the calendar year of expiration, multiplied by 12.


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Financial Supplement
Fourth Quarter 2023
                                        
Maintenance Capital Expenditures, Repair and Maintenance Expenses and
External Growth, Expansion and Development Capital Expenditures
We utilize a strategic and preventative approach to maintenance capital expenditures and repair and maintenance expenses to maintain the high quality and operational efficiency of our warehouses and ensure that our warehouses meet the “mission-critical” role they serve in the cold chain.
Maintenance Capital Expenditures
Three Months Ended December 31, Year Ended December 31,
2023 2022 2023 2022
(In thousands, except per cubic foot amounts)
Real estate $ 17,402  $ 24,737  $ 70,772  $ 74,852 
Personal property 740  444  3,124  4,232 
Information technology 528  1,520  4,515  6,427 
Maintenance capital expenditures(1)
$ 18,670  $ 26,701  $ 78,411  $ 85,511 
Maintenance capital expenditures per cubic foot $ 0.012  $ 0.018  $ 0.052  $ 0.059 
(1) Excludes $0.7 million and $9.9 million of deferred acquisition maintenance capital expenditures incurred for the years ended December 31, 2023 and 2022, respectively.

Repair and Maintenance Expenses
Three Months Ended December 31, Year Ended December 31,
2023 2022 2023 2022
(In thousands, except per cubic foot amounts)
Real estate $ 22,652  $ 11,632  $ 56,210  $ 41,086 
Personal property 7,437  19,303  62,485  61,822 
Repair and maintenance expenses $ 30,089  $ 30,935  $ 118,695  $ 102,908 
Repair and maintenance expenses per cubic foot $ 0.020  $ 0.021  $ 0.079  $ 0.071 

External Growth, Expansion and Development Capital Expenditures
Three Months Ended December 31, Year Ended December 31,
2023 2022 2023 2022
(In thousands)
Business combinations $ 5,910  $ 601  $ 46,653  $ 15,829 
Asset acquisitions 22,194  —  65,771  14,581 
Expansion and development initiatives(2)
46,432  46,251  126,160  190,718 
Information technology 3,856  3,512  10,208  6,910 
Growth and expansion capital expenditures $ 78,392  $ 50,364  $ 248,792  $ 228,038 
(2)We capitalized interest of $3.0 million and $3.0 million for the three months ended December 31, 2023 and 2022, respectively. During the years ended December 31, 2023 and 2022, respectively, we capitalized interest of $13.2 million and $11.8 million. During the three months ended December 31, 2023 and 2022, we capitalized amounts relating to insurance, property taxes, and compensation and travel expense of employees direct and incremental to development of properties of approximately $10.4 million and $1.3 million, respectively, and during the years ended December 31, 2023 and 2022, we capitalized $17.5 million and $5.5 million, respectively.
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Financial Supplement
Fourth Quarter 2023
                                        

Global Warehouse Segment Financial Performance
The following table presents the operating results of our warehouse segment for the three months ended December 31, 2023 and 2022.
Three Months Ended December 31, Change
2023 Actual
2023 Constant Currency(1)
2022 Actual
Actual Constant Currency
(Dollars in thousands)
Rent and storage $ 276,641  $ 278,493  $ 267,031  3.6  % 4.3  %
Warehouse services 335,621  336,331  331,659  1.2  % 1.4  %
Total warehouse segment revenue $ 612,262  $ 614,824  $ 598,690  2.3  % 2.7  %
Power 33,999  34,125  37,963  (10.4) % (10.1) %
Other facilities costs (2)
64,168  64,715  58,906  8.9  % 9.9  %
Labor 252,853  253,801  255,181  (0.9) % (0.5) %
Other services costs (3)
64,140  64,216  74,313  (13.7) % (13.6) %
Total warehouse segment cost of operations $ 415,160  $ 416,857  $ 426,363  (2.6) % (2.2) %
Warehouse segment contribution (NOI) $ 197,102  $ 197,967  $ 172,327  14.4  % 14.9  %
Warehouse rent and storage contribution (NOI) (4)
$ 178,474  $ 179,653  $ 170,162  4.9  % 5.6  %
Warehouse services contribution (NOI) (5)
$ 18,628  $ 18,314  $ 2,165  760.4  % 745.9  %
Total warehouse segment margin 32.2  % 32.2  % 28.8  % 341 bps 341 bps
Rent and storage margin(6)
64.5  % 64.5  % 63.7  % 79 bps 79 bps
Warehouse services margin(7)
5.6  % 5.4  % 0.7  % 490 bps 479 bps
(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)Includes real estate rent expense of $9.3 million and $10.2 million for the fourth quarter 2023 and 2022, respectively.
(3)Includes non-real estate rent expense (equipment lease and rentals) of $3.3 million and $3.6 million for the fourth quarter of 2023 and 2022, respectively.
(4)Calculated as rent and storage revenues less power and other facilities costs.
(5)Calculated as warehouse services revenues less labor and other services costs.
(6)Calculated as warehouse rent and storage contribution (NOI) divided by warehouse rent and storage revenues.
(7)Calculated as warehouse services contribution (NOI) divided by warehouse services revenues.






















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Financial Supplement
Fourth Quarter 2023
                                        
The following table presents the operating results of our warehouse segment for the Years ended ended December 31, 2023 and 2022.
Year Ended December 31, Change
2023 Actual
2023 Constant Currency(1)
2022 Actual Actual Constant Currency
(Dollars in thousands)
Rent and storage $ 1,101,741  $ 1,113,052  $ 999,388  10.2  % 11.4  %
Warehouse services 1,289,348  1,299,295  1,303,583  (1.1) % (0.3) %
Total warehouse segment revenues 2,391,089  2,412,347  2,302,971  3.8  % 4.7  %
Power 147,750  149,572  155,661  (5.1) % (3.9) %
Other facilities costs (2)
247,743  250,302  231,944  6.8  % 7.9  %
Labor 1,023,806  1,033,200  1,006,862  1.7  % 2.6  %
Other services costs (3)
249,187  250,694  272,272  (8.5) % (7.9) %
Total warehouse segment cost of operations $ 1,668,486  $ 1,683,768  $ 1,666,739  0.1  % 1.0  %
Warehouse segment contribution (NOI) $ 722,603  $ 728,579  $ 636,232  13.6  % 14.5  %
Warehouse rent and storage contribution (NOI) (4)
$ 706,248  $ 713,178  $ 611,783  15.4  % 16.6  %
Warehouse services contribution (NOI) (5)
$ 16,355  $ 15,401  $ 24,449  (33.1) % (37.0) %
Total warehouse segment margin 30.2  % 30.2  % 27.6  % 259 bps 258 bps
Rent and storage margin(6)
64.1  % 64.1  % 61.2  % 289 bps 286 bps
Warehouse services margin(7)
1.3  % 1.2  % 1.9  % -61 bps -69 bps
(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)Includes real estate rent expense of $37.5 million and $42.0 million, on an actual basis, for the years ended December 31, 2023 and 2022, respectively.
(3)Includes non-real estate rent expense (equipment lease and rentals) of $14.3 million and $12.9 million, on an actual basis, for the years ended December 31, 2023 and 2022, respectively.
(4)Calculated as rent and storage revenues less power and other facilities costs.
(5)Calculated as warehouse services revenues less labor and other services costs.
(6)Calculated as warehouse rent and storage contribution (NOI) divided by warehouse rent and storage revenues.
(7)Calculated as warehouse services contribution (NOI) divided by warehouse services revenues.
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Financial Supplement
Fourth Quarter 2023
                                        
Same-store Financial Performance - The following table presents revenues, cost of operations, NOI and margins for our same stores and non-same stores with a reconciliation to the total financial metrics of our warehouse segment for the three months ended December 31, 2023 and 2022.
Three Months Ended December 31, Change
2023 Actual
2023 Constant Currency(1)
2022 Actual
Actual Constant Currency
Number of same store warehouses 219 219 n/a n/a
Same store revenues: (Dollars in thousands)
Rent and storage $ 254,642  $ 256,614  $ 252,984  0.7  % 1.4  %
Warehouse services 319,511  320,399  317,648  0.6  % 0.9  %
Total same store revenues $ 574,153  $ 577,013  $ 570,632  0.6  % 1.1  %
Same store cost of operations:
Power 29,993  30,173  34,952  (14.2) % (13.7) %
Other facilities costs 59,125  59,699  53,777  9.9  % 11.0  %
Labor 238,662  239,686  239,194  (0.2) % 0.2  %
Other services costs 61,249  61,394  70,206  (12.8) % (12.6) %
Total same store cost of operations $ 389,029  $ 390,952  $ 398,129  (2.3) % (1.8) %
Same store contribution (NOI) $ 185,124  $ 186,061  $ 172,503  7.3  % 7.9  %
Same store rent and storage contribution (NOI)(2)
$ 165,524  $ 166,742  $ 164,255  0.8  % 1.5  %
Same store services contribution (NOI)(3)
$ 19,600  $ 19,319  $ 8,248  137.6  % 134.2  %
Total same store margin 32.2  % 32.2  % 30.2  % 201 bps 202 bps
Same store rent and storage margin(4)
65.0  % 65.0  % 64.9  % 8 bps 5 bps
Same store services margin(5)
6.1  % 6.0  % 2.6  % 354 bps 343 bps
Number of non-same store warehouses(6)
21 21 n/a n/a
Non-same store revenues:
Rent and storage $ 21,999  $ 21,879  $ 14,047  n/r n/r
Warehouse services 16,110  15,932  14,011  n/r n/r
Total non-same store revenues $ 38,109  $ 37,811  $ 28,058  n/r n/r
Non-same store cost of operations:
Power 4,006  3,952  3,011  n/r n/r
Other facilities costs 5,043  5,016  5,129  n/r n/r
Labor 14,191  14,115  15,987  n/r n/r
Other services costs 2,891  2,822  4,107  n/r n/r
Total non-same store cost of operations $ 26,131  $ 25,905  $ 28,234  n/r n/r
Non-same store contribution (NOI) $ 11,978  $ 11,906  $ (176) n/r n/r
Non-same store rent and storage contribution (NOI)(2)
$ 12,950  $ 12,911  $ 5,907  n/r n/r
Non-same store services contribution (NOI)(3)
$ (972) $ (1,005) $ (6,083) n/r n/r
Total warehouse segment revenues $ 612,262  $ 614,824  $ 598,690  2.3  % 2.7  %
Total warehouse cost of operations $ 415,160  $ 416,857  $ 426,363  (2.6) % (2.2) %
Total warehouse segment contribution (NOI) $ 197,102  $ 197,967  $ 172,327  14.4  % 14.9  %
3
(1) The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis is the effect of changes in foreign currency exchange rates relative to the comparable prior period.
(2) Calculated as rent and storage revenues less power and other facilities costs.
(3) Calculated as warehouse services revenues less labor and other services costs.
(4) Calculated as same store rent and storage contribution (NOI) divided by same store rent and storage revenues.
(5) Calculated as same store warehouse services contribution (NOI) divided by same store warehouse services revenues.
(6)
The non-same store facility count of 21 consists of: three sites acquired through acquisition, 12 sites in the expansion and development phase, three leased sites that we purchased, one temporarily leased facility in Australia, one leased facility we ceased operations during fourth quarter of 2022 in anticipation of the upcoming lease maturity, and one leased site we exited in preparation to lease to a third party.





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Financial Supplement
Fourth Quarter 2023
                                        
The following table presents revenues, cost of operations, NOI and margins for our same stores and non-same stores with a reconciliation to the total financial metrics of our warehouse segment for the Years ended December 31, 2023 and 2022.
Year Ended December 31, Change
2023 Actual
2023 Constant Currency(1)
2022 Actual Actual Constant Currency
Number of same store warehouses 219 219 n/a n/a
Same store revenues: (Dollars in thousands)
Rent and storage $ 1,024,515  $ 1,035,596  $ 944,102  8.5  % 9.7  %
Warehouse services 1,233,344  1,243,103  1,240,378  (0.6) % 0.2  %
Total same store revenues 2,257,859  2,278,699  2,184,480  3.4  % 4.3  %
Same store cost of operations:
Power 132,889  134,790  141,559  (6.1) % (4.8) %
Other facilities costs 226,709  229,185  209,515  8.2  % 9.4  %
Labor 960,260  969,187  945,201  1.6  % 2.5  %
Other services costs 229,480  230,956  254,491  (9.8) % (9.2) %
Total same store cost of operations $ 1,549,338  $ 1,564,118  $ 1,550,766  (0.1) % 0.9  %
Same store contribution (NOI) $ 708,521  $ 714,581  $ 633,714  11.8  % 12.8  %
Same store rent and storage contribution (NOI)(2)
$ 664,917  $ 671,621  $ 593,028  12.1  % 13.3  %
Same store services contribution (NOI)(3)
$ 43,604  $ 42,960  $ 40,686  7.2  % 5.6  %
Total same store margin 31.4  % 31.4  % 29.0  % 237 bps 235 bps
Same store rent and storage margin(4)
64.9  % 64.9  % 62.8  % 209 bps 204 bps
Same store services margin(5)
3.5  % 3.5  % 3.3  % 26 bps 18 bps
Number of non-same store warehouses(6)
21 21 n/a n/a
Non-same store revenues:
Rent and storage $ 77,226  $ 77,456  $ 55,286  n/r n/r
Warehouse services 56,004  56,192  63,205  n/r n/r
Total non-same store revenues 133,230  133,648  118,491  n/r n/r
Non-same store cost of operations:
Power 14,861  14,782  14,102  n/r n/r
Other facilities costs 21,034  21,117  22,429  n/r n/r
Labor 63,546  64,013  61,661  n/r n/r
Other services costs 19,707  19,738  17,781  n/r n/r
Total non-same store cost of operations $ 119,148  $ 119,650  $ 115,973  n/r n/r
Non-same store contribution (NOI) $ 14,082  $ 13,998  $ 2,518  n/r n/r
Non-same store rent and storage contribution (NOI)(2)
$ 41,331  $ 41,557  $ 18,755  n/r n/r
Non-same store services contribution (NOI)(3)
$ (27,249) $ (27,559) $ (16,237) n/r n/r
Total warehouse segment revenues $ 2,391,089  $ 2,412,347  $ 2,302,971  3.8  % 4.7  %
Total warehouse cost of operations $ 1,668,486  $ 1,683,768  $ 1,666,739  0.1  % 1.0  %
Total warehouse segment contribution (NOI) $ 722,603  $ 728,579  $ 636,232  13.6  % 14.5  %
(1) The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis is the effect of changes in foreign currency exchange rates relative to the comparable prior period.
(2) Calculated as rent and storage revenues less power and other facilities costs.
(3) Calculated as warehouse services revenues less labor and other services costs.
(4) Calculated as same store rent and storage contribution (NOI) divided by same store rent and storage revenues.
(5) Calculated as same store warehouse services contribution (NOI) divided by same store warehouse services revenues.
(6)
The non-same store facility count of 21 consists of: three sites acquired through acquisition, 12 sites in the expansion and development phase, three leased sites that we purchased, one temporarily leased facility in Australia, one leased facility we ceased operations during fourth quarter of 2022 in anticipation of the upcoming lease maturity, and one leased site we exited in preparation to lease to a third party.
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Financial Supplement
Fourth Quarter 2023
                                        
Same-store Key Operating Metrics
The following table provides certain operating metrics to explain the drivers of our same store performance for the three months ended December 31, 2023 and 2022.
Three Months Ended December 31, Change
Units in thousands except per pallet and site data 2023 2022
Number of same store warehouses 219 219 n/a
Same store rent and storage:
Economic occupancy(1)
Average economic occupied pallets 4,216  4,299  (1.9) %
Economic occupancy percentage 83.7  % 84.2  % -53 bps
Same store rent and storage revenues per average economic occupied pallet $ 60.40  $ 58.85  2.6  %
Constant currency same store rent and storage revenue per average economic occupied pallet $ 60.87  $ 58.85  3.4  %
Physical occupancy(2)
Average physical occupied pallets 3,752  4,015  (6.6) %
Average physical pallet positions 5,037  5,104  (1.3) %
Physical occupancy percentage 74.5  % 78.7  % -418 bps
Same store rent and storage revenues per average physical occupied pallet $ 67.87  $ 63.01  7.7  %
Constant currency same store rent and storage revenues per average physical occupied pallet $ 68.39  $ 63.01  8.5  %
Same store warehouse services:
Throughput pallets 8,684  9,396  (7.6) %
Same store warehouse services revenues per throughput pallet $ 36.79  $ 33.81  8.8  %
Constant currency same store warehouse services revenues per throughput pallet $ 36.90  $ 33.81  9.1  %
Number of non-same store warehouses(3)
21 21 n/a
Non-same store rent and storage:
Economic occupancy(1)
Average economic occupied pallets 325  238  n/r
Economic occupancy percentage 71.3  % 76.5  % n/r
Physical occupancy(2)
Average physical occupied pallets 289  214  n/r
Average physical pallet positions 456  311  n/r
Physical occupancy percentage 63.4  % 68.8  % n/r
Non-same store warehouse services:
Throughput pallets 700  567  n/r
(1)We define average economic occupancy as the aggregate number of physically occupied pallets and any additional pallets otherwise contractually committed for a given period, without duplication. We estimate the number of contractually committed pallet positions by taking into account actual pallet commitments specified in each customer’s contract, and subtracting the physical pallet positions.
(2)We define average physical occupancy as the average number of occupied pallets divided by the estimated number of average physical pallet positions in our warehouses for the applicable period. We estimate the number of physical pallet positions by taking into account actual racked space and by estimating unracked space on an as-if racked basis. We base this estimate on a formula utilizing the total cubic feet of each room within the warehouse that is unracked divided by the volume of an assumed rack space that is consistent with the characteristics of the relevant warehouse. On a warehouse by warehouse basis, rack space generally ranges from three to four feet depending upon the type of facility and the nature of the customer goods stored therein. The number of our pallet positions is reviewed and updated quarterly, taking into account changes in racking configurations and room utilization.
(3)The non-same store facility count of 21 consists of: three sites acquired through acquisition, 12 sites in the expansion and development phase, three leased sites that we purchased, one temporarily leased facility in Australia, one leased facility we ceased operations during fourth quarter of 2022 in anticipation of the upcoming lease maturity, and one leased site we exited in preparation to lease to a third party.







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Financial Supplement
Fourth Quarter 2023
                                        

The following table provides certain operating metrics to explain the drivers of our same store performance for the years ended ended December 31, 2023 and 2022.
Year Ended December 31,
Units in thousands except per pallet and site number data 2023 2022 Change
Number of same store sites 219  219  n/a
Same store rent and storage:
Economic occupancy(1)
Average occupied economic pallets 4,268  4,099  4.1  %
Economic occupancy percentage 84.3  % 79.9  % 433 bps
Same store rent and storage revenues per average economic occupied pallet $ 240.05  $ 230.32  4.2  %
Constant currency same store rent and storage revenues per average economic occupied pallet $ 242.64  $ 230.32  5.3  %
Physical occupancy(2)
Average physical occupied pallets 3,877  3,788  2.3  %
Average physical pallet positions 5,065  5,128  (1.2) %
Physical occupancy percentage 76.5  % 73.9  % 268 bps
Same store rent and storage revenues per average physical occupied pallet $ 264.25  $ 249.23  6.0  %
Constant currency same store rent and storage revenues per average physical occupied pallet $ 267.11  $ 249.23  7.2  %
Same store warehouse services:
Throughput pallets (in thousands) 35,227  37,841  (6.9) %
Same store warehouse services revenues per throughput pallet $ 35.01  $ 32.78  6.8  %
Constant currency same store warehouse services revenues per throughput pallet $ 35.29  $ 32.78  7.7  %
Number of non-same store sites(3)
21  21  n/a
Non-same store rent and storage:
Economic occupancy(1)
Average economic occupied pallets 278  219  n/r
Economic occupancy percentage 73.7  % 72.3  % n/r
Physical occupancy(2)
Average physical occupied pallets 243  203  n/r
Average physical pallet positions 377  303  n/r
Physical occupancy percentage 64.5  % 67.0  % n/r
Non-same store warehouse services:
Throughput pallets (in thousands) 2,297  2,250  n/r
(1)We define average economic occupancy as the aggregate number of physically occupied pallets and any additional pallets otherwise contractually committed for a given period, without duplication. We estimate the number of contractually committed pallet positions by taking into account actual pallet commitments specified in each customer’s contract, and subtracting the physical pallet positions.
(2)We define average physical occupancy as the average number of occupied pallets divided by the estimated number of average physical pallet positions in our warehouses for the applicable period. We estimate the number of physical pallet positions by taking into account actual racked space and by estimating unracked space on an as-if racked basis. We base this estimate on a formula utilizing the total cubic feet of each room within the warehouse that is unracked divided by the volume of an assumed rack space that is consistent with the characteristics of the relevant warehouse. On a warehouse by warehouse basis, rack space generally ranges from three to four feet depending upon the type of facility and the nature of the customer goods stored therein. The number of our pallet positions is reviewed and updated quarterly, taking into account changes in racking configurations and room utilization.
(3)The non-same store facility count of 21 consists of: three sites acquired through acquisition, 12 sites in the expansion and development phase, three leased sites that we purchased, one temporarily leased facility in Australia, one leased facility we ceased operations during fourth quarter of 2022 in anticipation of the upcoming lease maturity, and one leased site we exited in preparation to lease to a third party.


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Financial Supplement
Fourth Quarter 2023
                                        
2023 Same-store Historical Performance Trend - The following table reflects the actual results of our current same store pool, in USD, for the respective periods.
Q4 23 Q3 23 Q2 23 Q1 23 Q4 22 Q3 22 Q2 22 Q1 22
Number of same store warehouses 219 219 219 219 219 219 219 219
Same store revenues:
Rent and storage $254,642 $257,914 $255,693 $256,266 $252,984 $245,608 $228,550 $216,960
Warehouse services 319,511 308,740 293,687 311,406 317,648 321,220 306,056 295,454
Total same store revenues $574,153 $566,654 $549,380 $567,672 $570,632 $566,828 $534,606 $512,414
Same store cost of operations:
Power 29,993 37,340 32,653 32,903 34,952 44,153 32,561 29,893
Other facilities costs 59,125 56,066 55,907 55,611 53,777 53,177 51,591 50,970
Labor 238,662 242,791 236,330 242,477 239,194 240,656 235,273 230,078
Other services costs 61,249 57,358 53,917 56,956 70,206 63,269 63,601 57,415
Total same store cost of operations $389,029 $393,555 $378,807 $387,947 $398,129 $401,255 $383,026 $368,356
Same store contribution (NOI) $185,124 $173,099 $170,573 $179,725 $172,503 $165,573 $151,580 $144,058
Same store rent and storage contribution (NOI)(1)
$165,524 $164,508 $167,133 $167,752 $164,255 $148,278 $144,398 $136,097
Same store services contribution (NOI)(2)
$19,600 $8,591 $3,440 $11,973 $8,248 $17,295 $7,182 $7,961
Total same store margin 32.2  % 30.5  % 31.0  % 31.7  % 30.2  % 29.2  % 28.4  % 28.1  %
Same store rent and storage margin(3)
65.0  % 63.8  % 65.4  % 65.5  % 64.9  % 60.4  % 63.2  % 62.7  %
Same store services margin(4)
6.1  % 2.8  % 1.2  % 3.8  % 2.6  % 5.4  % 2.3  % 2.7  %
Same store rent and storage:
Economic occupancy
Average economic occupied pallets 4,216 4,230 4,319 4,310 4,299 4,131 4,002 3,963
Economic occupancy percentage 83.7  % 84.0  % 84.8  % 84.6  % 84.2  % 80.5  % 77.9  % 77.0  %
Same store rent and storage revenues per economic occupied pallet $60.40 $60.98 $59.21 $59.45 $58.85 $59.45 $57.11 $54.74
Physical occupancy
Average physical occupied pallets 3,752 3,816 3,968 3,971 4,015 3,839 3,692 3,607
Average physical pallet positions 5,037 5,036 5,094 5,094 5,104 5,130 5,135 5,144
Physical occupancy percentage 74.5  % 75.8  % 77.9  % 78.0  % 78.7  % 74.8  % 71.9  % 70.1  %
Same store rent and storage revenues per physical occupied pallet $67.87 $67.58 $64.44 $64.53 $63.01 $63.98 $61.90 $60.15
Same store warehouse services:
Throughput pallets 8,684 8,798 8,617 9,128 9,396 9,665 9,508 9,272
Same store warehouse services revenues per throughput pallet $36.79 $35.09 $34.08 $34.12 $33.81 $33.24 $32.19 $31.87
Total non-same store results:
Non-same store warehouse revenue 38,109 35,950 31,971 27,380 28,058 32,147 29,775 28,511
Non-same store warehouse cost of operations 26,131 31,219 29,522 32,276 28,234 31,060 30,368 26,311
Non-same store warehouse NOI 11,978 4,731 2,449 (4,896) (176) 1,087 (593) 2,200
Actual FX rates for the period Q4 23 Q3 23 Q2 23 Q1 23 Q4 22 Q3 22 Q2 22 Q1 22
1 ARS = 0.003 0.003 0.004 0.005 0.006 0.007 0.008 0.009
1 AUS = 0.652 0.654 0.672 0.684 0.658 0.683 0.715 0.724
1 BRL = 0.202 0.205 0.206 0.193 0.190 0.191 0.204 0.192
1 CAD = 0.735 0.745 0.753 0.740 0.737 0.766 0.784 0.789
1 CLP = 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001
1 EUR = 1.076 1.088 1.084 1.073 1.022 1.007 1.065 1.122
1 GBP = 1.242 1.266 1.264 1.215 1.175 1.177 1.257 1.342
1 NZD = 0.604 0.605 0.614 0.630 0.604 0.613 0.651 0.676
1 PLN = 0.244 0.242 0.243 0.228 0.216 0.213 0.229 0.243
(1)Calculated as rent and storage revenues less power and other facilities costs.
(2)Calculated as warehouse services revenues less labor and other services costs.
(3)Calculated as warehouse rent and storage contribution (NOI) divided by warehouse rent and storage revenues.
(4)Calculated as warehouse services contribution (NOI) divided by warehouse services revenues.    
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Financial Supplement
Fourth Quarter 2023
                                        
2024 Same-store Historical Performance Trend - The following table reflects the actual results of our 2024 same store pool, in USD, for the respective periods.
Beginning January of 2024, changes in ownership structure will no longer result in a facility being excluded from the same store population, as management believes that actively managing its real estate is normal course of operations. Additionally, management will begin to classify new developments (both conventional and automated facilities) as a component of the same store pool once the facility is considered fully operational and both inbounding and outbounding product for at least twelve consecutive months prior to January 1 of the current calendar year.
Three Months Ended Year Ended
Q4 23 Q3 23 Q2 23 Q1 23 2023
Number of same store warehouses 227 227 227 227 227
Same store revenues:
Rent and storage $263,932 $266,947 $264,134 $264,049 $1,059,062
Warehouse services 327,606 316,769 299,417 316,978 1,260,770
Total same store revenues $591,538 $583,716 $563,551 $581,027 $2,319,832
Same store cost of operations:
Power 31,529 39,396 34,167 34,810 139,902
Other facilities costs(5)
60,569 57,367 57,190 57,270 232,396
Labor 244,348 247,648 240,574 246,463 979,033
Other services costs 62,731 57,895 55,415 57,768 233,809
Total same store cost of operations $399,177 $402,306 $387,346 $396,311 $1,585,140
Same store contribution (NOI) $192,361 $181,410 $176,205 $184,716 $734,692
Same store rent and storage contribution (NOI)(1)
$171,834 $170,184 $172,777 $171,969 $686,764
Same store services contribution (NOI)(2)
$20,527 $11,226 $3,428 $12,747 $47,928
Total same store margin 32.5  % 31.1  % 31.3  % 31.8  % 31.7  %
Same store rent and storage margin(3)
65.1  % 63.8  % 65.4  % 65.1  % 64.8  %
Same store services margin(4)
6.3  % 3.5  % 1.1  % 4.0  % 3.8  %
Same store rent and storage:
Economic occupancy
Average economic occupied pallets 4,397 4,390 4,468 4,453 4,427
Economic occupancy percentage 84.0  % 83.9  % 84.7  % 84.4  % 84.2  %
Same store rent and storage revenues per economic occupied pallet $60.03 $60.81 $59.12 $59.30 $239.24
Physical occupancy
Average physical occupied pallets 3,919 3,966 4,099 4,107 4,023
Average physical pallet positions 5,235 5,235 5,277 5,277 5,256
Physical occupancy percentage 74.9  % 75.8  % 77.7  % 77.8  % 76.5  %
Same store rent and storage revenues per physical occupied pallet $67.34 $67.30 $64.43 $64.30 $263.26
Same store warehouse services:
Throughput pallets 9,043 9,106 8,873 9,396 36,418
Same store warehouse services revenues per throughput pallet $36.23 $34.79 $33.74 $33.74 $34.62
Total non-same store results:
Non-same store warehouse revenue $20,724 $18,889 $17,619 $14,025 $71,257
Non-same store warehouse cost of operations $15,983 $22,467 $20,982 $23,914 $83,346
Non-same store warehouse NOI $4,741 $(3,578) $(3,363) $(9,889) $(12,089)
(1)Calculated as rent and storage revenues less power and other facilities costs.
(2)Calculated as warehouse services revenues less labor and other services costs.
(3)Calculated as warehouse rent and storage contribution (NOI) divided by warehouse rent and storage revenues.
(4)Calculated as warehouse services contribution (NOI) divided by warehouse services revenues.
(5)Includes real estate rent expense of $0.4 million for each of the three months ended March 31, 2023 and the three months ended June 30, 2023 related to a facility purchased that was previously leased. This facility was purchased on June 28, 2023.
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Financial Supplement
Fourth Quarter 2023
External Growth and Capital Deployment
Recently Completed Expansion and Development Projects
Facility Opportunity Type Facility Type
 (A = Automated)
 (C = Conventional)
Tenant Opportunity Cubic Feet
(in millions)
Pallet Positions
(in thousands)
Estimated Total Cost
(in millions)(1)
Expected
Stabilized
NOI ROIC
Completion Date Expected Full Stabilized Quarter
Auckland, New Zealand Expansion Distribution (C) Multi-tenant 4.6  27  NZ$64 12-14% Q2 2021 Q3 2022
Lurgan, Northern Ireland Expansion Distribution (C) Multi-tenant 0.7  £7 10-12% Q2 2021 Q3 2022
Calgary, Canada Expansion Distribution (C) Multi-tenant 2.0  C$13 10-12% Q3 2021 Q1 2023
Dunkirk, NY Development Production Advantaged (C) Build-to-suit 7.0  25  $38 10-12% Q2 2022 Q3 2023
Dublin, Ireland Development Distribution (C) Multi-tenant 6.3  20  €34 10-12% Q3 2022 Q1 2024
Barcelona Expansion Distribution (C) Multi-tenant 3.3  12  €13 10-12% Q4 2022 Q3 2024
Lancaster, PA Development Distribution (A) Build-to-suit 11.4  28  $164 10-12% Q1 2023 Q3 2025
Gateway, GA Phase 2 Expansion Distribution (A) Multi-tenant 6.3  24  $39 10-12% Q2 2023 Q1 2025
Russellville, AR Expansion Production Advantaged (A) Build-to-suit 13.0  42  $90 10-12% Q3 2023 Q4 2024
Spearwood, Australia Expansion Distribution (A) Multi-tenant 3.3  20 
A$64
10-12% Q3 2023 Q1 2025
Plainville, CT Development Distribution (A) Build-to-suit 12.1  31  $161 10-12% Q4 2023 Q4 2025
(1)Cost to date through December 31, 2023, projects are substantially complete. Additional spending may be incurred for residual cost and retainage.


Expansion and Development Projects In Process and Announced
    Facility Type
 (A = Automated)
 (C = Conventional)
Under
Construction
Investment in Expansion / Development
(in millions)
Expected
Stabilized
NOI ROIC
Target
Complete
Date
Expected Full Stabilized Quarter
Facility Opportunity Type Tenant Opportunity
Cubic Feet
(millions) (1)
Pallet
Positions
(thousands) (1)
Cost (2)
Estimate to
Complete 
Total Estimated
Cost
Allentown, PA Expansion Conventional (C) Multi-tenant 14.6  37  $5
$80-$85
$85-$90
10-12% Q2 2025 Q1 2027
Kansas City, MO Development Conventional (C) Multi-tenant 13.5  22  $—
$128 - $134
$128 - $134
10-12% Q2 2025 Q1 2026
(1)Cubic feet and pallet positions are estimates while the facilities are under construction.
(2)Cost as of December 31, 2023.

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Financial Supplement
Fourth Quarter 2023
Recent Acquisitions
Facility Metropolitan Area No. of Facilities Cubic Feet
(in millions)
Pallet
Positions
(in thousands)
Acquisition Price (in millions) (1)
Net Entry NOI Yield (1)
Expected Three Year Stabilized
NOI ROIC
Date Purchased Expected Full Stabilized Quarter
De Bruyn Cold Storage Australia 1 2.0  21  A$24.9 8.2  % 9-10% 7/1/2022 Q4 2025
Ormeau Australia 1 2.1  10  A$36.1 —  9-10% 7/7/2023 Q2 2026
Safeway New Jersey 1 6.0  17  $37.0 8.9  % 9-10% 10/5/2023 Q3 2026
(1)Inclusive of expenses required to integrate and reach stabilization.
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Financial Supplement
Fourth Quarter 2023
Unconsolidated Joint Ventures (Investments in Partially Owned Entities)

As of December 31, 2023, the Company owned a 14.99% equity share in the Brazil-based SuperFrio. The debt of our unconsolidated joint venture is non-recourse to us, except for customary exceptions pertaining to such matters as intentional misuse of funds, environmental conditions and material misrepresentations.

SuperFrio
As of
Summary Balance Sheet - at the JV’s 100% share in BRLs Q4 23 Q3 23 Q2 23 Q1 23 Q4 22
($’s in thousands)
Net book value of property, buildings and equipment R$ 1,116,560  R$ 1,107,455  R$ 1,119,533  R$ 1,112,850  R$ 1,099,418 
Other assets 490,036  463,194  476,615  466,146  512,948 
Total assets 1,606,596  1,570,649  1,596,148  1,578,996  1,612,366 
Debt 686,298  646,243  666,362  659,675  679,304 
Other liabilities 496,756  500,639  492,444  464,967  461,286 
Equity 423,542  423,767  437,342  454,354  471,776 
Total liabilities and equity R$ 1,606,596  R$ 1,570,649  R$ 1,596,148  R$ 1,578,996  R$ 1,612,366 
Americold’s ownership percentage 15  % 15  % 15  % 15  % 15  %
BRL/USD quarter-end rate 0.2061 0.1987 0.2089 0.1975 0.1892
Americold’s pro rata share of debt at BRL/USD rate $ 21,217  $ 19,261  $ 20,880  $ 19,543  $ 19,279 
Three Months Ended
Summary Statement of Operations - at the JV’s 100% share in BRLs Q4 23 Q3 23 Q2 23 Q1 23 Q4 22
($’s in thousands)
Revenues R$ 169,006  R$ 161,229  R$ 158,418  R$ 156,234  R$ 163,109 
Cost of operations 110,295  110,741  113,467  110,947  103,302 
Selling, general and administrative expense 7,523  7,464  8,111  8,658  13,732 
M&A expense (5,677) 4,896  (919) 2,751  3,940 
Depreciation & amortization 20,315  19,658  19,846  20,070  20,672 
Total operating expenses 132,456  142,759  140,505  142,426  141,646 
Operating income 36,550  18,470  17,913  13,808  21,463 
Interest expense 31,831  31,292  32,977  32,488  28,588 
Other expense (income) (981) (906) (1,532) (1,799) (631)
Current income tax expense (347) 1,012  890  1,567  1,519 
Deferred income tax benefit 124  (732) (78) (245) (216)
Non-operating expenses 30,627  30,666  32,257  32,011  29,260 
Net gain (loss) R$ 5,923  R$ (12,196) R$ (14,344) R$ (18,203) R$ (7,797)
Americold’s ownership percentage 15  % 15  % 15  % 15  % 15  %
BRL/USD average rate 0.2019 0.2047 0.2022 0.1927 0.1901
Americold’s pro rata share of NOI $ 1,778  $ 1,550  $ 1,363  $ 1,309  $ 1,705 
Americold’s pro rata share of Net gain (loss) $ 179  $ (374) $ (435) $ (526) $ (222)
Americold’s pro rata share of Core FFO $ 309  $ 73  $ (225) $ (177) $ 163 
Americold’s pro rata share of AFFO $ 526  $ 275  $ 85  $ 42  $ 378 
    

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Financial Supplement
Fourth Quarter 2023
                                        
2024 Guidance

The ranges for these metrics do not include the impact of acquisitions, dispositions, or capital markets activity beyond that which has been previously announced.
As of
February 22, 2024
Warehouse segment same store revenue growth (constant currency)
2.5% - 5.5%
Warehouse segment same store NOI growth (constant currency)
400 - 450 bps higher than associated revenue
Warehouse segment non-same store NOI
$(3)M - $9M
Transportation and Managed segment NOI
$45M - $50M
Total selling, general and administrative expense (inclusive of share-based compensation expense of $23M - $25M and $5M - $7M of Orion amortization)
$247M - $261M
Interest expense
$141M - $149M
Current income tax expense
$9M - $12M
Deferred income tax benefit
$6M - $8M
Non real estate depreciation and amortization expense
$112M - $118M
Total maintenance capital expenditures
$80M - $90M
Development starts (1)
$200M - $300M
AFFO per share
$1.32 - $1.42
Assumed FX rates
1 ARS = 0.0012 USD
1 AUS = 0.6615 USD
1 BRL = 0.2016 USD
1 CAD = 0.7438 USD
1 EUR = 1.0914 USD
1 GBP = 1.2662 USD
1 NZD = 0.6168 USD
1 PLN = 0.2520 USD
(1)Represents the aggregate invested capital for initiated development opportunities.

















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Financial Supplement
Fourth Quarter 2023
                                        
Notes and Definitions
We use the following non-GAAP financial measures as supplemental performance measures of our business: NAREIT FFO, Core FFO, Adjusted FFO, EBITDAre, Core EBITDA, net debt to pro-forma Core EBITDA and segment contribution (‘NOI”).
We calculate funds from operations, or FFO, in accordance with the standards established by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. NAREIT defines FFO as net income or loss determined in accordance with U.S. GAAP, excluding extraordinary items as defined under U.S. GAAP and gains or losses from sales of previously depreciated operating real estate and other assets, plus specified non-cash items, such as real estate asset depreciation and amortization impairment charge on real estate related assets and our share of reconciling items for partially owned entities. We believe that FFO is helpful to investors as a supplemental performance measure because it excludes the effect of depreciation, amortization and gains or losses from sales of real estate, all of which are based on historical costs, which implicitly assumes that the value of real estate diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, FFO can facilitate comparisons of operating performance between periods and among other equity REITs.
We calculate core funds from operations, or Core FFO, as NAREIT FFO adjusted for the effects of gain or loss on the sale of non-real estate assets, acquisition, cyber incident and other, net, goodwill impairment (when applicable), loss on debt extinguishment, modifications and termination of derivative instruments, foreign currency exchange (gain) loss, gain on legal settlement related to prior period operations, gain or loss from discontinued operations net of tax, impairment of related party receivable, loss on fair put option, gain on extinguishment of New Market Tax Credit structure, loss on deconsolidation of subsidiary contributed to LATAM joint venture, and gain from sale of LATAM joint venture. We also adjust for the impact of Core FFO on our share of reconciling items for partially owned entities, and gain from disposition of partially owned entities. We believe that Core FFO is helpful to investors as a supplemental performance measure because it excludes the effects of certain items which can create significant earnings volatility, but which do not directly relate to our core business operations. We believe Core FFO can facilitate comparisons of operating performance between periods, while also providing a more meaningful predictor of future earnings potential.
However, because NAREIT FFO and Core FFO add back real estate depreciation and amortization and do not capture the level of maintenance capital expenditures necessary to maintain the operating performance of our properties, both of which have material economic impacts on our results from operations, we believe the utility of NAREIT FFO and Core FFO as a measure of our performance may be limited.
We calculate adjusted funds from operations, or Adjusted FFO, as Core FFO adjusted for the effects of amortization of deferred financing costs and pension withdrawal liability, amortization of above or below market leases, non-real estate asset impairment, straight-line net rent, benefit from deferred income taxes, stock-based compensation expense, non-real estate depreciation and amortization and maintenance capital expenditures. We also adjust for AFFO attributable to our share of reconciling items of partially owned entities and discontinued operations. We believe that Adjusted FFO is helpful to investors as a meaningful supplemental comparative performance measure of our ability to make incremental capital investments in our business and to assess our ability to fund distribution requirements from our operating activities.
FFO, Core FFO and Adjusted FFO are used by management, investors and industry analysts as supplemental measures of operating performance of equity REITs. FFO, Core FFO and Adjusted FFO should be evaluated along with U.S. GAAP net income and net income per diluted share (the most directly comparable U.S. GAAP measures) in evaluating our operating performance. FFO, Core FFO and Adjusted FFO do not represent net income or cash flows from operating activities in accordance with U.S. GAAP and are not indicative of our results of operations or cash flows from operating activities as disclosed in our consolidated statements of operations included in our quarterly and annual reports. FFO, Core FFO and Adjusted FFO should be considered as supplements, but not alternatives, to our net income or cash flows from operating activities as indicators of our operating performance. Moreover, other REITs may not calculate FFO in accordance with the NAREIT definition or may interpret the NAREIT definition differently than we do. Accordingly, our FFO may not be comparable to FFO as calculated by other REITs. In addition, there is no industry definition of Core FFO or Adjusted FFO and, as a result, other REITs may also calculate Core FFO or Adjusted FFO, or other similarly-captioned metrics, in a manner different than we do. The table above reconciles FFO, Core FFO and Adjusted FFO to net (loss) income, which is the most directly comparable financial measure calculated in accordance with U.S. GAAP.
We calculate EBITDA for Real Estate, or EBITDAre, in accordance with the standards established by the Board of Governors of NAREIT, defined as, earnings before interest expense, taxes, depreciation and amortization, net gain on sale of real estate, net of withholding taxes, and adjustment to reflect share of EBITDAre of partially owned entities. EBITDAre is a measure commonly used in our industry, and we present EBITDAre to enhance investor understanding of our operating performance. We believe that EBITDAre provides investors and analysts with a measure of operating results unaffected by differences in capital structures, capital investment cycles and useful life of related assets among otherwise comparable companies.
We also calculate our Core EBITDA as EBITDAre further adjusted for acquisition, cyber and other, net, loss from investments in partially owned entities, impairment of indefinite and long-lived assets (when applicable), foreign currency exchange loss or gain, stock-based compensation expense, loss on debt extinguishment, modifications and termination of derivative instruments, net gain on other asset disposals, reduction in EBITDAre from partially owned entities, discontinued operations, impairment of related party loan receivable, loss on fair value of put, gain on extinguishment of new market tax credit structure, and loss on deconsolidation of subsidiary contributed to LATAM joint venture.. We believe that the presentation of Core EBITDA provides a measurement of our operations that is meaningful to investors because it excludes the effects of certain items that are otherwise included in EBITDAre but which we do not believe are indicative of our core business operations. EBITDAre and Core EBITDA are not measurements of financial performance under U.S. GAAP, and our EBITDAre and Core EBITDA may not be comparable to similarly titled measures of other companies. You should not consider our EBITDAre and Core EBITDA as alternatives to net income or cash flows from operating activities determined in accordance with U.S. GAAP. Our calculations of EBITDAre and Core EBITDA have limitations as analytical tools, including:
NOI is calculated as earnings before interest expense, taxes, depreciation and amortization, and excluding corporate Selling, general, and administrative expense; Acquisition, cyber incident, and other, net; Impairment of indefinite and long-lived assets; gain or loss on sale of real estate and all components of non-operating other income and expense. Management believes that this is a helpful metric to measure period to period operating performance of the business.
•these measures do not reflect our historical or future cash requirements for maintenance capital expenditures or growth and expansion capital expenditures;
•these measures do not reflect changes in, or cash requirements for, our working capital needs;
•these measures do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our indebtedness;
•these measures do not reflect our tax expense or the cash requirements to pay our taxes; and
•although depreciation and amortization are non-cash charges, the assets being depreciated will often have to be replaced in the future and these measures do not reflect any cash requirements for such replacements.
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Financial Supplement
Fourth Quarter 2023
                                        
We use Core EBITDA and EBITDAre as measures of our operating performance and not as measures of liquidity. The table on page 21 reconciles EBITDA, EBITDAre and Core EBITDA to net income, which is the most directly comparable financial measure calculated in accordance with U.S. GAAP.
Net debt to proforma Core EBITDA is calculated using total debt, plus capital lease obligations, less cash and cash equivalents, divided by pro-forma Core EBITDA. We calculate pro-forma Core EBITDA as Core EBITDA further adjusted for acquisitions, dispositions and for rent expense associated with lease buy-outs and lease exits. The pro-forma adjustment for acquisitions reflects the Core EBITDA for the period of time prior to acquisition. The pro-forma adjustment for leased facilities exited or purchased reflects the add-back for the related lease expense from the last year. The pro-forma adjustment for dispositions reduces Core EBITDA for the earnings of facilities disposed of or exited during the year, including the strategic exit of certain third-party managed business.
We define our “same store” population once annually at the beginning of the current calendar year. Our population includes properties owned or leased for the entirety of two comparable periods with at least twelve consecutive months of normalized operations prior to January 1 of the current calendar year. We define “normalized operations” as properties that have been open for operation or lease, after development or significant modification (e.g., expansion or rehabilitation subsequent to a natural disaster). Acquired properties are included in the “same store” population if owned by us as of the first business day of the prior calendar year (e.g. January 1, 2022) and are still owned by us as of the end of the current reporting period, unless the property is under development. The “same store” pool is also adjusted to remove properties that were sold or entered development subsequent to the beginning of the current calendar year. Beginning January of 2024, changes in ownership structure (e.g., purchase of a previously leased warehouse) will no longer result in a facility being excluded from the same store population, as management believes that actively managing its real estate is normal course of operations. Additionally, management will begin to classify new developments (both conventional and automated facilities) as a component of the same store pool once the facility is considered fully operational and both inbounding and outbounding product for at least twelve consecutive months prior to January 1 of the current calendar year.
We calculate “same store revenue” as revenues for the same store population. We calculate “same store contribution (NOI)” as revenues for the same store population less its cost of operations (excluding any depreciation and amortization, impairment charges, corporate-level selling, general and administrative expenses, corporate-level acquisition, cyber incident and other, net and gain or loss on sale of real estate). In order to derive an appropriate measure of period-to-period operating performance, we also calculate our same store contribution (NOI) on a constant currency basis to remove the effects of foreign currency exchange rate movements by using the comparable prior period exchange rate to translate from local currency into U.S. dollars for both periods. We evaluate the performance of the warehouses we own or lease using a “same store” analysis, and we believe that same store contribution (NOI) is helpful to investors as a supplemental performance measure because it includes the operating performance from the population of properties that is consistent from period to period and also on a constant currency basis, thereby eliminating the effects of changes in the composition of our warehouse portfolio and currency fluctuations on performance measures. Same store contribution (NOI) is not a measurement of financial performance under U.S. GAAP. In addition, other companies providing temperature-controlled warehouse storage and handling and other warehouse services may not define same store or calculate same store contribution (NOI) in a manner consistent with our definition or calculation. Same store contribution (NOI) should be considered as a supplement, but not as an alternative, to our results calculated in accordance with U.S. GAAP. The tables beginning on page 33 provide reconciliations for same store revenues and same store contribution (NOI).
We define “maintenance capital expenditures” as capital expenditures made to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology. Maintenance capital expenditures include capital expenditures made to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology. Maintenance capital expenditures do not include acquisition costs contemplated when underwriting the purchase of a building or costs which are incurred to bring a building up to Americold’s operating standards. See the tables on page 30 for additional information regarding our maintenance capital expenditures.
We define “total real estate debt” as the aggregate of the following: mortgage notes, senior unsecured notes, term loans and borrowings under our revolving line of credit. We define “total debt outstanding” as the aggregate of the following: total real estate debt, sale-leaseback financing obligations and financing lease obligations. See the tables on page 23 for additional information regarding our indebtedness.
All quarterly amounts and non-GAAP disclosures within this filing shall be deemed unaudited.
44