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Achieved Double Digit Adjusted FFO per share Growth for Full Year 2024
Delivered $125 million of Incremental Full Year Same Store Warehouse Services NOI
Announced New $79 million State-of-the-Art Facility Development with Strategic Partners
Announces $34 million Customer-Driven Expansion in Christchurch, NZ
ATLANTA, GA., Feb. 20, 2025 (GLOBE NEWSWIRE) -- 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, 2024.
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George Chappelle, Chief Executive Officer of Americold Realty Trust, stated, "Throughout 2024 we made significant progress on several productivity, efficiency and development initiatives that allowed us to deliver strong full-year results, including 11.4% growth in Global Warehouse Same Store NOI and 16% growth in Adjusted FFO per share. In addition, we are especially pleased with the progress we made on improving warehouse services margins throughout the year. Less than two years ago, we communicated our goal to increase same store handling NOI by $100 million, and we surpassed that goal in 2024 with a $125 million year-over-year improvement.”
"We are also strategically deploying capital across the business and announced three new projects during 2024 in Kansas City, Dallas Fort Worth, and Sydney, Australia. Subsequent to year end, we also announced an exciting $79 million development in Port Saint John, Canada with our strategic partners DP World and CPKC, and today we are announcing a $34 million expansion in Christchurch, New Zealand dedicated to one of the country's largest grocers. We are enthusiastic about these low risk expansions, as well as future opportunities from these innovative partnerships, all of which will create significant long-term shareholder value.”
"As we turn our focus to 2025, we are continuing to make targeted investments across the business that position us for future growth, while also enhancing our proven ability to perform in various macroeconomic environments. I want to thank our entire team for their hard work and dedication, and I believe Americold is well positioned for the eventual return of consumer demand.”
Fourth Quarter 2024 Highlights
- Total revenues of $666.4 million, a 1.9% change from $679.3 million in Q4 2023 and a change of 0.8% on a constant currency basis.
- Net loss of $36.4 million, or $0.13 loss per diluted common share, an 84.0% increase from an $0.80 net loss per diluted common share in Q4 2023.
- Global Warehouse segment same store revenues decreased 0.5% on an actual basis and increased 0.6% on a constant currency basis as compared to Q4 2023.
- Global Warehouse same store services margin increased to 13.2% from 6.3% in Q4 2023.
- Global Warehouse segment same store NOI increased 4.9%, or 5.9% on a constant currency basis as compared to Q4 2023.
- Adjusted FFO of $105.9 million, or $0.37 per diluted common share, a 2.1% decrease from Q4 2023 Adjusted FFO per diluted common share.
- Core EBITDA of $155.6 million, decreased $4.7 million, or 2.9% from $160.3 million in Q4 2023.
- Core EBITDA margin of 23.3%, decreased 25 basis points from 23.6% in Q4 2023.
Full Year to Date 2024 Highlights
- Total revenues of $2.7 billion, a 0.3% change from 2023 and an increase of 1.2% on a constant currency basis.
- Net loss of $94.7 million, or $0.33 loss per diluted common share, a 71.8% increase from a $1.18 net loss per diluted common share from continuing operations in 2023.
- Global Warehouse segment same store revenues increased 1.0% on an actual basis and increased 2.4% on a constant currency basis as compared to 2023.
- Global Warehouse segment same store NOI increased 9.9%, or 11.4% on a constant currency basis as compared to 2023.
- Global Warehouse same store services margin increased to 13.0% from 3.8% in 2023.
- Adjusted FFO of $420.4 million, or $1.47 per diluted common share, an increase of 15.9% from 2023 Adjusted FFO per diluted common share.
- Core EBITDA of $634.1 million, increased $62.1 million, or 10.8% from $572.1 million in 2023.
- Core EBITDA margin of 23.8%, increased 238 basis points from 21.4% in 2023.
2025 Outlook
The table below includes 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.
| As of | |
| February 20, 2025 | |
| Warehouse segment same store revenues growth (constant currency) | 2.0% - 4.0% |
| Warehouse segment same store NOI growth (constant currency) | 200 bps higher than associated revenues |
| Warehouse segment non-same store NOI | $0M - $7M |
| Transportation and Third-Party Managed segment NOI | $44M - $48M |
| Total selling, general and administrative expense (inclusive of share-based compensation expense of $27.5M - $29.5M and $13.0M - $15.0M of Project Orion amortization) | $280M - $289M |
| Interest expense | $145M - $150M |
| Current income tax expense | $8M - $10M |
| Non real estate depreciation and amortization expense | $139M - $149M |
| Total maintenance capital expenditures | $82M - $88M |
| Development starts(1) | $200M - $300M |
| Adjusted FFO per share | $1.51 - $1.59 |
| (1) Represents the aggregate invested capital for initiated development opportunities. | |
Investor Webcast and Conference Call
The Company will hold a webcast and conference call on Thursday, February 20, 2025 at 8:00 a.m. Eastern Time to discuss its fourth quarter and full year 2024 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#13750638. The telephone replay will be available starting shortly after the call until March 6, 2025.
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.
During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends that have occurred after quarter-end. The Company's responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously.
Fourth Quarter 2024 Total Company Financial Results
Total revenues for the fourth quarter of 2024 were $666.4 million, a 1.9% decrease from $679.3 million in the same quarter of the prior year, primarily due to a 13.8% decrease in transportation services revenue and related volumes (12.2% decrease on a constant currency basis), coupled with lower volumes in the warehouse segment. These decreases were partially offset by annual rate increases in the normal course of operations.
Total NOI for the fourth quarter of 2024 was $211.2 million, an increase of 0.6% (1.7% increase on a constant currency basis) from the same quarter of the prior year. This increase is primarily related to a 2.4% decrease (1.4% decrease on a constant currency basis) in rent, storage, and warehouse services cost of operations, which is substantially due to an increased focus on workforce performance, operational efficiency, and retention.
For the fourth quarter of 2024, the Company reported a net loss of $36.4 million, or $0.13 loss per diluted share, compared to a net loss of $226.8 million, or $0.80 loss per diluted share, for the comparable quarter of the prior year. This is primarily due to a goodwill impairment charge recognized during fourth quarter of 2023 of $236.5 million.
Core EBITDA was $155.6 million for the fourth quarter of 2024, compared to $160.3 million for the comparable quarter of the prior year. This decrease (2.9% on an actual basis and 2.2% on a constant currency basis) was primarily driven by higher software related costs from the implementation of Project Orion, and increased spending on information security related investments, which is recognized within selling, general, and administrative costs. The overall decrease in Core EBITDA is partially offset by a 0.6% increase in NOI, further described above.
For the fourth quarter of 2024, Core FFO was $88.6 million, or $0.31 per diluted share, compared to $84.8 million, or $0.30 per diluted share, for the fourth quarter of 2023.
For the fourth quarter of 2024, Adjusted FFO was $105.9 million, or $0.37 per diluted share, compared to $108.0 million, or $0.38 per diluted share, for the fourth quarter of 2023.
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 2024 Global Warehouse Segment Results
The following tables present revenues, contribution (NOI), margins, and certain operating metrics for our global, same store, and non-same store warehouses for the three months and years ended December 31, 2024 and 2023.
| Three Months Ended, December 31, | Change | ||||||||||||||||||
| Dollars and units in thousands, except per pallet data | 2024 Actual | 2024 Constant Currency(1) | 2023 Actual | Actual | Constant Currency | ||||||||||||||
| TOTAL WAREHOUSE SEGMENT | |||||||||||||||||||
| Global Warehouse revenues: | |||||||||||||||||||
| Rent and storage | $ | 259,889 | $ | 263,621 | $ | 276,641 | (6.1 | )% | (4.7 | )% | |||||||||
| Warehouse services | 346,576 | 349,077 | 335,621 | 3.3 | % | 4.0 | % | ||||||||||||
| Total revenues | $ | 606,465 | $ | 612,698 | $ | 612,262 | (0.9 | )% | 0.1 | % | |||||||||
| Global Warehouse cost of operations: | |||||||||||||||||||
| Power | 35,271 | 35,967 | 33,999 | 3.7 | % | 5.8 | % | ||||||||||||
| Other facilities costs(2) | 61,720 | 62,784 | 64,168 | (3.8 | )% | (2.2 | )% | ||||||||||||
| Labor | 251,486 | 253,282 | 252,853 | (0.5 | )% | 0.2 | % | ||||||||||||
| Other services costs(3) | 56,561 | 57,161 | 64,140 | (11.8 | )% | (10.9 | )% | ||||||||||||
| Total warehouse segment cost of operations | $ | 405,038 | $ | 409,194 | $ | 415,160 | (2.4 | )% | (1.4 | )% | |||||||||
| Global Warehouse contribution (NOI) | $ | 201,427 | $ | 203,504 | $ | 197,102 | 2.2 | % | 3.2 | % | |||||||||
| Rent and storage contribution (NOI)(4) | $ | 162,898 | $ | 164,870 | $ | 178,474 | (8.7 | )% | (7.6 | )% | |||||||||
| Services contribution (NOI)(5) | $ | 38,529 | $ | 38,634 | $ | 18,628 | 106.8 | % | 107.4 | % | |||||||||
| Global Warehouse margin | 33.2 | % | 33.2 | % | 32.2 | % | 102 bps | 102 bps | |||||||||||
| Rent and storage margin(6) | 62.7 | % | 62.5 | % | 64.5 | % | -183 bps | -197 bps | |||||||||||
| Warehouse services margin(7) | 11.1 | % | 11.1 | % | 5.6 | % | 557 bps | 552 bps | |||||||||||
| Global Warehouse rent and storage metrics: | |||||||||||||||||||
| Average economic occupied pallets(8) | 4,272 | n/a | 4,541 | (5.9 | )% | n/a | |||||||||||||
| Average physical occupied pallets(9) | 3,693 | n/a | 4,041 | (8.6 | )% | n/a | |||||||||||||
| Average physical pallet positions | 5,517 | n/a | 5,493 | 0.4 | % | n/a | |||||||||||||
| Economic occupancy percentage(8) | 77.4 | % | n/a | 82.7 | % | -524 bps | n/a | ||||||||||||
| Physical occupancy percentage(9) | 66.9 | % | n/a | 73.6 | % | -663 bps | n/a | ||||||||||||
| Total rent and storage revenues per average economic occupied pallet | $ | 60.84 | $ | 61.71 | $ | 60.92 | (0.1 | )% | 1.3 | % | |||||||||
| Total rent and storage revenues per average physical occupied pallet | $ | 70.37 | $ | 71.38 | $ | 68.46 | 2.8 | % | 4.3 | % | |||||||||
| Global Warehouse services metrics: | |||||||||||||||||||
| Throughput pallets | 9,234 | n/a | 9,384 | (1.6 | )% | n/a | |||||||||||||
| Total warehouse services revenues per throughput pallet | $ | 37.53 | $ | 37.80 | $ | 35.77 | 4.9 | % | 5.7 | % | |||||||||
| (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 $9.0 million and $9.3 million for the three months ended December 31, 2024 and 2023, respectively. (3) Includes non-real estate rent expense (equipment lease and rentals) of $2.8 million and $3.3 million for the three months ended December 31, 2024 and 2023, respectively. (4) Calculated as warehouse 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. (8) We define average economic occupied pallets as the sum of the average number of physically occupied pallets and otherwise contractually committed pallets for a given period, without duplication. Economic occupancy percentage is calculated by dividing the average economic occupied pallets by the estimated average of total physical pallet positions in our warehouses, regardless of whether they are occupied, for the applicable period. (9) We define average physical occupied pallets as the average number of physically occupied pallets positions in our warehouses for the applicable period. Physical occupancy percentage is calculated by dividing the average number of physically occupied pallets by the estimated average of total physical pallet positions in our warehouses, regardless of whether they are occupied, for the applicable period. (n/a = not applicable) | |||||||||||||||||||
| Three Months Ended, December 31, | Change | ||||||||||||||||||
| Dollars and units in thousands, except per pallet data | 2024 Actual | 2024 Constant Currency(1) | 2023 Actual | Actual | Constant Currency | ||||||||||||||
| SAME STORE WAREHOUSE | |||||||||||||||||||
