Americold Realty Trust, Inc. (NYSE: COLD) (the “Company”), the
world’s largest publicly traded REIT focused on the ownership,
operation, acquisition and development of temperature-controlled
warehouses, today announced financial and operating results for the
second quarter ended June 30, 2022.
Second Quarter 2022
Highlights
- Total revenue increased 11.5% to
$729.8 million.
- Total NOI increased 8.3% to $168.3
million.
- Core EBITDA increased 1.6% on an
actual basis to $120.2 million., and increased 3.5% on a constant
currency basis.
- Net income of $4.0 million, or
$0.01 income per diluted common share.
- Core FFO of $65.4 million, or $0.24
per diluted common share.
- AFFO of $73.9 million, or $0.27 per
diluted common share.
- Global Warehouse segment revenue
increased 12.0% to $564.4 million.
- Global Warehouse segment NOI
increased 4.6% to $151.0 million.
- Global Warehouse segment same store
revenue increased 5.9%, or 8.1% on a constant currency basis,
Global Warehouse segment same store NOI increased by 1.6%, or 3.1%
on a constant currency basis.
- On April 28, we completed the
purchase of our previously leased Gdynia, Poland facility for
€6.6 million.
- On June 2, we executed a joint
venture agreement contributing our Chilean operations (valued at
$37 million) in exchange for a 15% ownership stake in the
LATAM JV. Upon deconsolidation, we recognized a $4.1 million
loss as a component of ‘Other, net’.
- On June 21, we announced the grand
opening of our Dunkirk, NY build-to-suit facility for approximately
$36 million.
Year to Date 2022
Highlights
- Total revenue increased 11.3% to
$1.4 billion.
- Total NOI increased 4.5% to $326.6
million.
- Core EBITDA decreased 2.1% to
$231.1 million, or 0.6% on a constant currency basis.
- Net loss of $13.5 million, or $0.05
loss per diluted common share.
- Core FFO of $111.7 million, or
$0.41 per diluted common share.
- AFFO of $142.7 million, or $0.53
per diluted common share.
- Global Warehouse segment revenue
increased 11.7% to $1.1 billion.
- Global Warehouse segment NOI
increased 2.3% to $297.2 million.
- Global Warehouse segment same store
revenue increased 5.2%, or 7.0% on a constant currency basis,
Global Warehouse segment same store NOI decreased 1.6%, or 0.4% on
a constant currency basis.
Subsequent Event Highlights
- On July 1, we completed the
acquisition of De Bruyn Cold Storage Pty Ltd, consisting of a
facility in Tasmania, Australia for approximately A$24.9
million.
- On August 1, we completed the
purchase of our previously leased Christchurch, New Zealand
facility for N$18 million (inclusive of N$5 million
renovation).
Second Quarter 2022 Total Company
Financial ResultsTotal revenue for the second quarter of
2022 was $729.8 million, an 11.5% increase from the same quarter of
the prior year. This growth was driven by our pricing initiative
and rate escalations in both the warehouse and transportation
segments, higher economic occupancy in our warehouse segment, the
incremental revenue from acquisitions, including warehouse and
transportation operations, and our recently completed expansion and
development projects. This was partially offset by a slight decline
in throughput in our global warehouse same store pool, as well as
unfavorable foreign currency translation as the USD strengthened
against the currencies of our foreign subsidiaries.
Total NOI for the second quarter of 2022 was
$168.3 million, an increase of 8.3% from the same quarter of the
prior year. This increase is a result of the same factors driving
the increase in revenue mentioned above, partially offset by
inflationary pressure, which continues to impact nearly all cost
categories across our global portfolio, and labor
inefficiencies.
Core EBITDA was $120.2 million for the second
quarter of 2022, compared to $118.3 million for the same quarter of
the prior year. This reflects a 1.6% increase over prior year on an
actual basis, and 3.5% on a constant currency basis. The increase
is due to the same factors driving the increase in NOI and revenue
mentioned above, partially offset by an increase in selling,
general and administrative costs.
For the second quarter of 2022, the Company
reported net income of $4.0 million, or $0.01 per diluted share,
compared to net loss of $13.4 million, or $0.05 loss per diluted
share, for the same quarter of the prior year.
For the second quarter of 2022, Core FFO was
$65.4 million, or $0.24 per diluted share, compared to $38.6
million, or $0.15 per diluted share, for the same quarter of the
prior year.
For the second quarter of 2022, AFFO was $73.9
million, or $0.27 per diluted share, compared to $71.7 million, or
$0.28 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.
Second Quarter 2022 Global Warehouse
Segment ResultsFor the second quarter of 2022, Global
Warehouse segment revenue was $564.4 million, an increase of $60.6
million, or 12.0%, compared to $503.7 million for the second
quarter of 2021. This growth was driven by our pricing initiative
and rate escalations, higher economic occupancy as compared to
2021, incremental revenue from acquisitions, and recently completed
development projects. This was partially offset by the unfavorable
impact of foreign currency translation and slightly lower
throughput in our same store pool.
Global Warehouse segment NOI was $151.0 million
for the second quarter of 2022 as compared to $144.4 million for
the second quarter of 2021. Global Warehouse segment NOI increased
period-over-period due to the drivers of warehouse revenue increase
mentioned above, offset by the impact of inflationary pressures
across our portfolio, start-up costs for our developments, labor
inefficiencies, and the unfavorable impact of foreign currency
translation. Global Warehouse segment margin was 26.8% for the
second quarter of 2022, a 191 basis point decrease compared to the
same quarter of the prior year.
We had 213 same store warehouses for the three
and six months ended June 30, 2022. The following table
presents revenues, cost of operations, contribution (NOI) and
margins for our same store and non-same store warehouses with a
reconciliation to the total financial metrics of our warehouse
segment for the three and six months ended June 30, 2022.
Results related to the acquisitions of Bowman Stores, ColdCo, KMT
Brrr!, Lago Cold Stores, Liberty Freezers and Newark Facility
Management, one recently leased warehouse in Australia, a recently
constructed facility in Denver purchased in November 2021, a leased
facility which we purchased during the second quarter of 2022, as
well as certain expansion and development projects not yet
stabilized are reflected within non-same store results.
|
Three Months Ended June 30, |
|
Change |
Dollars and units in
thousands, except per pallet data |
2022 Actual |
|
2022 ConstantCurrency(1) |
|
2021 actual |
|
Actual |
|
ConstantCurrency |
|
|
|
|
|
|
|
|
|
|
TOTAL WAREHOUSE
SEGMENT |
|
|
|
|
|
|
|
|
|
Number of total
warehouses(2) |
|
240 |
|
|
|
|
|
237 |
|
|
n/a |
|
|
n/a |
|
Global Warehouse
revenue: |
|
|
|
|
|
|
|
|
|
Rent and storage |
$ |
242,351 |
|
|
$ |
247,225 |
|
|
$ |
212,277 |
|
|
14.2 |
% |
|
16.5 |
% |
Warehouse services |
|
322,028 |
|
|
|
329,225 |
|
|
|
291,457 |
|
|
10.5 |
% |
|
13.0 |
% |
Total revenue |
$ |
564,379 |
|
|
$ |
576,450 |
|
|
$ |
503,734 |
|
|
12.0 |
% |
|
14.4 |
% |
Global Warehouse
contribution (NOI) |
$ |
150,985 |
|
|
$ |
153,606 |
|
|
$ |
144,379 |
|
|
4.6 |
% |
|
6.4 |
% |
Global Warehouse
margin |
|
26.8 |
% |
|
|
26.6 |
% |
|
|
28.7 |
% |
|
-191 bps |
|
|
-201 bps |
|
|
|
|
|
|
|
|
|
|
|
Global Warehouse rent
and storage metrics: |
|
|
|
|
|
|
|
|
|
Average economic occupied pallets |
|
4,204 |
|
|
n/a |
|
|
|
3,944 |
|
|
6.6 |
% |
|
n/a |
|
Average physical occupied pallets |
|
3,883 |
|
|
n/a |
|
|
|
3,607 |
|
|
7.7 |
% |
|
n/a |
|
Average physical pallet positions |
|
5,432 |
|
|
n/a |
|
|
|
5,241 |
|
|
3.6 |
% |
|
n/a |
|
Economic occupancy
percentage |
|
77.4 |
% |
|
n/a |
|
|
|
75.2 |
% |
|
214 bps |
|
|
n/a |
|
Physical occupancy
percentage |
|
71.5 |
% |
|
n/a |
|
|
|
68.8 |
% |
|
267 bps |
|
|
n/a |
|
Total rent and storage revenue
per economic occupied pallet |
$ |
57.64 |
|
|
$ |
58.80 |
|
|
$ |
53.82 |
|
|
7.1 |
% |
|
9.3 |
% |
Total rent and storage revenue
per physical occupied pallet |
$ |
62.41 |
|
|
$ |
63.66 |
|
|
$ |
58.85 |
|
|
6.0 |
% |
|
8.2 |
% |
Global Warehouse
services metrics: |
|
|
|
|
|
|
|
|
|
Throughput pallets |
|
10,055 |
|
|
|
n/a |
|
|
|
9,919 |
|
|
1.4 |
% |
|
n/a |
|
Total warehouse services
revenue per throughput pallet |
$ |
32.03 |
|
|
$ |
32.74 |
|
|
$ |
29.38 |
|
|
9.0 |
% |
|
11.4 |
% |
|
|
|
|
|
|
|
|
|
|
SAME STORE
WAREHOUSE |
|
|
|
|
|
|
|
|
|
Number of same store
warehouses |
|
213 |
|
|
|
|
|
213 |
|
|
n/a |
|
|
n/a |
|
Global Warehouse same
store revenue: |
|
|
|
|
|
|
|
|
|
Rent and storage |
$ |
211,562 |
|
|
$ |
215,439 |
|
|
$ |
194,608 |
|
|
8.7 |
% |
|
10.7 |
% |
Warehouse services |
|
286,634 |
|
|
|
293,008 |
|
|
|
275,843 |
|
|
3.9 |
% |
|
6.2 |
% |
Total same store revenue |
$ |
498,196 |
|
|
$ |
508,447 |
|
|
$ |
470,451 |
|
|
5.9 |
% |
|
8.1 |
% |
Global Warehouse same
store contribution (NOI) |
$ |
144,128 |
|
|
$ |
146,300 |
|
|
$ |
141,878 |
|
|
1.6 |
% |
|
3.1 |
% |
Global Warehouse same
store margin |
|
28.9 |
% |
|
|
28.8 |
% |
|
|
30.2 |
% |
|
-123 bps |
|
|
-138 bps |
|
|
|
|
|
|
|
|
|
|
|
Global Warehouse same
store rent and storage metrics: |
|
|
|
|
|
|
|
|
|
Average economic occupied pallets |
|
3,798 |
|
|
|
n/a |
|
|
|
3,656 |
|
|
3.9 |
% |
|
n/a |
|
Average physical occupied pallets |
|
3,503 |
|
|
|
n/a |
|
|
|
3,343 |
|
|
4.8 |
% |
|
n/a |
|
Average physical pallet positions |
|
4,860 |
|
|
|
n/a |
|
|
|
4,859 |
|
|
— |
% |
|
n/a |
|
Economic occupancy
percentage |
|
78.1 |
% |
|
|
n/a |
|
|
|
75.3 |
% |
|
288 bps |
|
|
n/a |
|
Physical occupancy
percentage |
|
72.1 |
% |
|
|
n/a |
|
|
|
68.8 |
% |
|
328 bps |
|
|
n/a |
|
Same store rent and storage
revenue per economic occupied pallet |
$ |
55.71 |
|
|
$ |
56.73 |
|
|
$ |
53.23 |
|
|
4.7 |
% |
|
6.6 |
% |
Same store rent and storage
revenue per physical occupied pallet |
$ |
60.39 |
|
|
$ |
61.49 |
|
|
$ |
58.22 |
|
|
3.7 |
% |
|
5.6 |
% |
Global Warehouse same
store services metrics: |
|
|
|
|
|
|
|
|
|
Throughput pallets |
|
9,032 |
|
|
|
n/a |
|
|
|
9,171 |
|
|
(1.5 |
)% |
|
n/a |
|
Same store warehouse services
revenue per throughput pallet |
$ |
31.74 |
|
|
$ |
32.44 |
|
|
$ |
30.08 |
|
|
5.5 |
% |
|
7.9 |
% |
|
Three Months Ended June 30, |
|
Change |
Dollars and units in
thousands, except per pallet data |
2022 Actual |
|
2022 ConstantCurrency(1) |
|
2021 actual |
|
Actual |
|
ConstantCurrency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-SAME STORE
WAREHOUSE |
|
|
|
|
|
|
|
|
|
Number of non-same store
warehouses(3) |
|
27 |
|
|
|
|
|
24 |
|
|
n/a |
|
n/a |
Global Warehouse
non-same store revenue: |
|
|
|
|
|
|
|
|
|
Rent and storage |
$ |
30,789 |
|
|
$ |
31,786 |
|
|
$ |
17,669 |
|
|
n/r |
|
n/r |
Warehouse services |
|
35,394 |
|
|
|
36,217 |
|
|
|
15,614 |
|
|
n/r |
|
n/r |
Total non-same store
revenue |
$ |
66,183 |
|
|
$ |
68,003 |
|
|
$ |
33,283 |
|
|
n/r |
|
n/r |
Global Warehouse
non-same store contribution (NOI) |
$ |
6,857 |
|
|
$ |
7,306 |
|
|
$ |
2,501 |
|
|
n/r |
|
n/r |
Global Warehouse
non-same store margin |
|
10.4 |
% |
|
|
10.7 |
% |
|
|
7.5 |
% |
|
n/r |
|
n/r |
|
|
|
|
|
|
|
|
|
|
Global
Warehouse non-same store rent and storage metrics: |
|
|
|
|
|
|
|
|
Average economic occupied pallets |
|
407 |
|
|
|
n/a |
|
|
|
288 |
|
|
n/r |
|
n/a |
Average physical occupied pallets |
|
380 |
|
|
|
n/a |
|
|
|
264 |
|
|
n/r |
|
n/a |
Average physical pallet positions |
|
572 |
|
|
|
n/a |
|
|
|
383 |
|
|
n/r |
|
n/a |
Economic occupancy
percentage |
|
71.1 |
% |
|
|
n/a |
|
|
|
75.2 |
% |
|
n/r |
|
n/a |
Physical occupancy
percentage |
|
66.4 |
% |
|
|
n/a |
|
|
|
69.0 |
% |
|
n/r |
|
n/a |
Non-same store rent and
storage revenue per economic occupied pallet |
$ |
75.74 |
|
|
$ |
78.19 |
|
|
$ |
61.39 |
|
|
n/r |
|
n/r |
Non-same store rent and
storage revenue per physical occupied pallet |
$ |
81.03 |
|
|
$ |
83.66 |
|
|
$ |
66.92 |
|
|
n/r |
|
n/r |
Global Warehouse
non-same store services metrics: |
|
|
|
|
|
|
|
|
|
Throughput pallets |
|
1,023 |
|
|
|
n/a |
|
|
|
748 |
|
|
n/r |
|
n/a |
Non-same store warehouse
services revenue per throughput pallet |
$ |
34.59 |
|
|
$ |
35.40 |
|
|
$ |
20.87 |
|
|
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) Total
warehouse count of 240 includes three warehouses acquired through
the Lago acquisition on November 15, 2021 (including one leased
facility from the Lago Cold Stores acquisition that was exited upon
expiration during the first quarter of 2022), one recently leased
warehouse in Australia, one warehouse acquired through the Newark
Facility Management acquisition on September 1, 2021, two
facilities acquired through the ColdCo acquisition on August 2,
2021, one warehouse acquired through the Bowman Stores acquisition
on May 28, 2021, two warehouses acquired through the KMT Brrr!
acquisition on May 5, 2021 and four warehouses acquired through the
Liberty acquisition on March 1, 2021 (including one leased facility
that was exited upon expiration during the third quarter of 2022).
The results of these acquisitions are reflected in the results
above since date of ownership.(3) Non-same store warehouse count of
27 includes one recently leased warehouse in Australia, one
recently constructed facility in Denver that we purchased in
November 2021, one facility previously leased that we bought during
the second quarter of 2022, three warehouses acquired through the
Lago Cold Stores acquisition on November 15, 2021 (including one
leased facility that was exited upon expiration during the first
quarter of 2022), one warehouse acquired through the Newark
Facility Management acquisition on September 1, 2021, two
facilities acquired through the ColdCo acquisition on August 2,
2021, one warehouse acquired through the Bowman stores acquisition
on May 28, 2021, two warehouses acquired through the KMT Brrr!
acquisition on May 5, 2021,four remaining warehouses acquired
through the Liberty Freezers acquisition on March 1, 2021
(including one leased facility that was exited during the third
quarter of 2021), 12 warehouses in expansion or redevelopment and
one warehouse which we ceased operations within as it is being
prepared for lease to a third-party. The results of the facilities
exited are included in the results above, and the results of these
acquisitions are reflected in the results above since date of
ownership. (n/a = not applicable)(n/r = not relevant)
|
Six Months Ended June 30, |
|
Change |
Dollars and units in
thousands, except per pallet data |
2022 Actual |
|
2022 ConstantCurrency(1) |
|
2021 actual |
|
Actual |
|
ConstantCurrency |
|
|
|
|
|
|
|
|
|
|
TOTAL WAREHOUSE
SEGMENT |
|
|
|
|
|
|
|
|
|
Number of total
warehouses(2) |
|
240 |
|
|
|
|
|
237 |
|
|
n/a |
|
|
n/a |
|
Global Warehouse
revenue: |
|
|
|
|
|
|
|
|
|
Rent and storage |
$ |
472,108 |
|
|
$ |
479,670 |
|
|
$ |
417,553 |
|
|
13.1 |
% |
|
14.9 |
% |
Warehouse services |
|
633,196 |
|
|
|
645,502 |
|
|
|
571,632 |
|
|
10.8 |
% |
|
12.9 |
% |
Total revenue |
$ |
1,105,304 |
|
|
$ |
1,125,172 |
|
|
$ |
989,185 |
|
|
11.7 |
% |
|
13.7 |
% |
Global Warehouse
contribution (NOI) |
$ |
297,243 |
|
|
$ |
301,565 |
|
|
$ |
290,560 |
|
|
2.3 |
% |
|
3.8 |
% |
Global Warehouse
margin |
|
26.9 |
% |
|
|
26.8 |
% |
|
|
29.4 |
% |
|
-248 bps |
|
|
-257 bps |
|
|
|
|
|
|
|
|
|
|
|
Global Warehouse rent
and storage metrics: |
|
|
|
|
|
|
|
|
|
Average economic occupied pallets |
|
4,190 |
|
|
|
n/a |
|
|
|
3,961 |
|
|
5.8 |
% |
|
n/a |
|
Average physical occupied pallets |
|
3,844 |
|
|
|
n/a |
|
|
|
3,617 |
|
|
6.3 |
% |
|
n/a |
|
Average physical pallet positions |
|
5,435 |
|
|
|
n/a |
|
|
|
5,200 |
|
|
4.5 |
% |
|
n/a |
|
Economic occupancy
percentage |
|
77.1 |
% |
|
|
n/a |
|
|
|
76.2 |
% |
|
92 bps |
|
|
n/a |
|
Physical occupancy
percentage |
|
70.7 |
% |
|
|
n/a |
|
|
|
69.6 |
% |
|
117 bps |
|
|
n/a |
|
Total rent and storage revenue
per economic occupied pallet |
$ |
112.69 |
|
|
$ |
114.49 |
|
|
$ |
105.42 |
|
|
6.9 |
% |
|
8.6 |
% |
Total rent and storage revenue
per physical occupied pallet |
$ |
122.82 |
|
|
$ |
124.79 |
|
|
$ |
115.44 |
|
|
6.4 |
% |
|
8.1 |
% |
Global Warehouse
services metrics: |
|
|
|
|
|
|
|
|
|
Throughput pallets |
|
19,914 |
|
|
|
n/a |
|
|
|
19,449 |
|
|
2.4 |
% |
|
n/a |
|
Total warehouse services
revenue per throughput pallet |
$ |
31.80 |
|
|
$ |
32.41 |
|
|
$ |
29.39 |
|
|
8.2 |
% |
|
10.3 |
% |
|
|
|
|
|
|
|
|
|
|
SAME STORE
WAREHOUSE |
|
|
|
|
|
|
|
|
|
Number of same store
warehouses |
|
213 |
|
|
|
|
|
213 |
|
|
n/a |
|
|
n/a |
|
Global Warehouse same
store revenue: |
|
|
|
|
|
|
|
|
|
Rent and storage |
$ |
413,868 |
|
|
$ |
419,875 |
|
|
$ |
387,000 |
|
|
6.9 |
% |
|
8.5 |
% |
Warehouse services |
|
564,742 |
|
|
|
575,799 |
|
|
|
543,160 |
|
|
4.0 |
% |
|
6.0 |
% |
Total same store revenue |
$ |
978,610 |
|
|
$ |
995,674 |
|
|
$ |
930,160 |
|
|
5.2 |
% |
|
7.0 |
% |
Global Warehouse same
store contribution (NOI) |
$ |
282,052 |
|
|
$ |
285,643 |
|
|
$ |
286,707 |
|
|
(1.6 |
)% |
|
(0.4 |
)% |
Global Warehouse same
store margin |
|
28.8 |
% |
|
|
28.7 |
% |
|
|
30.8 |
% |
|
-200 bps |
|
|
-214 bps |
|
|
|
|
|
|
|
|
|
|
|
Global Warehouse same
store rent and storage metrics: |
|
|
|
|
|
|
|
|
|
Average economic occupied pallets |
|
3,785 |
|
|
|
n/a |
|
|
|
3,700 |
|
|
2.3 |
% |
|
n/a |
|
Average physical occupied pallets |
|
3,468 |
|
|
|
n/a |
|
|
|
3,380 |
|
|
2.6 |
% |
|
n/a |
|
Average physical pallet positions |
|
4,865 |
|
|
|
n/a |
|
|
|
4,852 |
|
|
0.3 |
% |
|
n/a |
|
Economic occupancy
percentage |
|
77.8 |
% |
|
|
n/a |
|
|
|
76.3 |
% |
|
156 bps |
|
|
n/a |
|
Physical occupancy
percentage |
|
71.3 |
% |
|
|
n/a |
|
|
|
69.7 |
% |
|
162 bps |
|
|
n/a |
|
Same store rent and storage
revenue per economic occupied pallet |
$ |
109.34 |
|
|
$ |
110.93 |
|
|
$ |
104.60 |
|
|
4.5 |
% |
|
6.0 |
% |
Same store rent and storage
revenue per physical occupied pallet |
$ |
119.35 |
|
|
$ |
121.08 |
|
|
$ |
114.49 |
|
|
4.2 |
% |
|
5.8 |
% |
Global Warehouse same
store services metrics: |
|
|
|
|
|
|
|
|
|
Throughput pallets |
|
17,885 |
|
|
|
n/a |
|
|
|
18,077 |
|
|
(1.1 |
)% |
|
n/a |
|
Same store warehouse services
revenue per throughput pallet |
$ |
31.58 |
|
|
$ |
32.19 |
|
|
$ |
30.05 |
|
|
5.1 |
% |
|
7.1 |
% |
|
Six Months Ended June 30, |
|
Change |
Dollars and units in
thousands, except per pallet data |
2022 Actual |
|
2022 ConstantCurrency(1) |
|
2021 actual |
|
Actual |
|
ConstantCurrency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-SAME STORE
WAREHOUSE |
|
|
|
|
|
|
|
|
|
Number of non-same store
warehouses(3) |
|
27 |
|
|
|
|
|
24 |
|
|
n/a |
|
n/a |
Global Warehouse
non-same store revenue: |
|
|
|
|
|
|
|
|
|
Rent and storage |
$ |
58,240 |
|
|
$ |
59,795 |
|
|
$ |
30,552 |
|
|
n/r |
|
n/r |
Warehouse services |
|
68,454 |
|
|
|
69,704 |
|
|
|
28,473 |
|
|
n/r |
|
n/r |
Total non-same store
revenue |
$ |
126,694 |
|
|
$ |
129,499 |
|
|
$ |
59,025 |
|
|
n/r |
|
n/r |
Global Warehouse
non-same store contribution (NOI) |
$ |
15,191 |
|
|
$ |
15,923 |
|
|
$ |
3,853 |
|
|
n/r |
|
n/r |
Global Warehouse
non-same store margin |
|
12.0 |
% |
|
|
12.3 |
% |
|
|
6.5 |
% |
|
n/r |
|
n/r |
|
|
|
|
|
|
|
|
|
|
Global
Warehouse non-same store rent and storage metrics: |
|
|
|
|
|
|
|
|
Average economic occupied pallets |
|
404 |
|
|
|
n/a |
|
|
|
261 |
|
|
n/r |
|
n/a |
Average physical occupied pallets |
|
376 |
|
|
|
n/a |
|
|
|
237 |
|
|
n/r |
|
n/a |
Average physical pallet positions |
|
570 |
|
|
|
n/a |
|
|
|
348 |
|
|
n/r |
|
n/a |
Economic occupancy
percentage |
|
70.9 |
% |
|
|
n/a |
|
|
|
75.0 |
% |
|
n/r |
|
n/a |
Physical occupancy
percentage |
|
66.0 |
% |
|
|
n/a |
|
|
|
68.1 |
% |
|
n/r |
|
n/a |
Non-same store rent and
storage revenue per economic occupied pallet |
$ |
144.02 |
|
|
$ |
147.87 |
|
|
$ |
117.01 |
|
|
n/r |
|
n/r |
Non-same store rent and
storage revenue per physical occupied pallet |
$ |
154.83 |
|
|
$ |
158.97 |
|
|
$ |
128.93 |
|
|
n/r |
|
n/r |
Global Warehouse
non-same store services metrics: |
|
|
|
|
|
|
|
|
|
Throughput pallets |
|
2,029 |
|
|
|
n/a |
|
|
|
1,372 |
|
|
n/r |
|
n/a |
Non-same store warehouse
services revenue per throughput pallet |
$ |
33.73 |
|
|
$ |
34.35 |
|
|
$ |
20.75 |
|
|
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) Total
warehouse count of 240 includes three warehouses acquired through
the Lago acquisition on November 15, 2021 (including one leased
facility from the Lago Cold Stores acquisition that was exited upon
expiration during the first quarter of 2022), one recently leased
warehouse in Australia, one warehouse acquired through the Newark
Facility Management acquisition on September 1, 2021, two
facilities acquired through the ColdCo acquisition on August 2,
2021, one warehouse acquired through the Bowman Stores acquisition
on May 28, 2021, two warehouses acquired through the KMT Brrr!
acquisition on May 5, 2021 and four warehouses acquired through the
Liberty acquisition on March 1, 2021 (including one leased facility
that was exited upon expiration during the third quarter of 2022).
The results of these acquisitions are reflected in the results
above since date of ownership.(3) Non-same store warehouse count of
27 includes one recently leased warehouse in Australia, one
recently constructed facility in Denver that we purchased in
November 2021, one facility previously leased that we bought during
the second quarter of 2022, three warehouses acquired through the
Lago Cold Stores acquisition on November 15, 2021 (including one
leased facility that was exited upon expiration during the first
quarter of 2022), one warehouse acquired through the Newark
Facility Management acquisition on September 1, 2021, two
facilities acquired through the ColdCo acquisition on August 2,
2021, one warehouse acquired through the Bowman stores acquisition
on May 28, 2021, two warehouses acquired through the KMT Brrr!
acquisition on May 5, 2021,four remaining warehouses acquired
through the Liberty Freezers acquisition on March 1, 2021
(including one leased facility that was exited during the third
quarter of 2021), 12 warehouses in expansion or redevelopment and
one warehouse which we ceased operations within as it is being
prepared for lease to a third-party. The results of the facilities
exited are included in the results above, and the results of these
acquisitions are reflected in the results above since date of
ownership. (n/a = not applicable)
Fixed Commitment Rent and Storage
RevenueAs of June 30, 2022, $379.3 million of the
Company’s annualized rent and storage revenue were derived from
customers with fixed commitment storage contracts. This compares to
$367.4 million at the end of the first quarter of 2022 and $333.0
million at the end of the second quarter of 2021. While the
Company’s recent acquisitions had a lower percentage of fixed
committed contracts as a percentage of rent and storage revenue, 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, 40.5% of rent and storage
revenue was generated from fixed commitment storage contracts.
Economic and Physical
OccupancyContracts that contain fixed commitments are
designed to ensure the Company’s customers have space available
when needed. For the second quarter of 2022, economic occupancy for
the total warehouse segment was 77.4% and warehouse segment same
store pool was 78.1%, representing a 591 basis point and 606 basis
point increase above physical occupancy, respectively. Economic
occupancy for the total warehouse segment increased 214 basis
points, and the warehouse segment same store pool increased 288
basis points as compared to the second quarter of 2021. The growth
in occupancy reflects improvement in the labor market, which
increased our customers’ food production levels. This was paired
with a slight slow-down in end-consumer demand as a result of the
rising cost of food, which also positively impacted our
holdings.
Real Estate Portfolio As of
June 30, 2022, the Company’s portfolio consists of 249
facilities. The Company ended the second quarter of 2022 with 240
facilities in its Global Warehouse segment portfolio and nine
facilities in its Third-party managed segment. The same store
population consists of 213 facilities for the quarter ended
June 30, 2022. The remaining 27 non-same store population
includes the 12 facilities that were acquired in connection with
the Bowman Stores, Brighton, ColdCo, KMT Brrr!, Lago Cold Stores,
Liberty Freezers and Newark acquisitions, the recently leased
facility in Australia, 12 facilities in expansion or redevelopment,
a facility we previously leased and purchased during the second
quarter of 2022 and a facility in which we ceased operations during
the first quarter of 2022, in order to prepare for leasing to a
third-party.
Balance Sheet Activity and
LiquidityAs of June 30, 2022, the Company had total
liquidity of approximately $596.9 million, including cash and
capacity on its revolving credit facility. Total debt outstanding
was $3.2 billion (inclusive of $267.3 million of financing
leases/sale lease-backs and exclusive of unamortized deferred
financing fees), of which 83% was in an unsecured structure. The
Company has no material debt maturities until 2023. At quarter end,
its net debt to pro forma Core EBITDA was approximately 6.6x. The
Company’s total debt outstanding includes $3.0 billion of real
estate debt, which excludes sale-leaseback and capitalized lease
obligations. The Company’s real estate debt has a remaining
weighted average term of 5.5 years and carries a weighted average
contractual interest rate of 3.23%. As of June 30, 2022, 70%
of the Company’s total debt outstanding was at a fixed rate.
DividendOn May 17, 2022, the
Company’s Board of Directors declared a dividend of $0.22 per share
for the second quarter of 2022, which was paid on July 15, 2022 to
common stockholders of record as of June 30, 2022.
2022 Outlook The Company
maintained its 2022 annual AFFO per share guidance to within the
range of $1.00 - $1.10. Refer to page 45 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
CallThe Company will hold a webcast and conference call on
Thursday, August 4, 2022 at 5:00 p.m. Eastern Time to discuss
its second quarter 2022 results. A live webcast of the call will be
available via the Investors section of Americold Realty Trust’s
website at www.americold.com. To listen to the live webcast, please
go to the site at least five minutes prior to the scheduled start
time in order to register, download and install any necessary audio
software. Shortly after the call, a replay of the webcast will be
available for 90 days on the Company’s website.
The conference call can also be accessed by
dialing 1-855-327-6837 or 1-631-891-4304. The telephone replay can
be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and
providing the conference ID# 10019561. The telephone replay will be
available starting shortly after the call until August 18,
2022.
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 CompanyAmericold is
the world’s largest publicly traded REIT focused on the ownership,
operation, acquisition and development of temperature-controlled
warehouses. Based in Atlanta, Georgia, Americold owns and operates
249 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 MeasuresThis
press release contains non-GAAP financial measures, including FFO,
core FFO, AFFO, EBITDAre, Core EBITDA; same store segment revenue
and contribution (NOI); real estate debt and maintenance capital
expenditures. Definitions of these non-GAAP metrics are included
beginning on page 46, and reconciliations of these non-GAAP
measures to their most comparable GAAP metrics are included herein.
Each of the non-GAAP measures included in this report has
limitations as an analytical tool and should not be considered in
isolation or as a substitute for an analysis of the Company’s
results calculated in accordance with GAAP. In addition, because
not all companies use identical calculations, the Company’s
presentation of non-GAAP measures in this report may not be
comparable to similarly titled measures disclosed by other
companies, including other REITs.
Forward-Looking StatementsThis
document contains statements about future events and expectations
that constitute forward-looking statements. Forward-looking
statements are based on our beliefs, assumptions and expectations
of our future financial and operating performance and growth plans,
taking into account the information currently available to us.
These statements are not statements of historical fact.
Forward-looking statements involve risks and uncertainties that may
cause our actual results to differ materially from the expectations
of future results we express or imply in any forward-looking
statements, and you should not place undue reliance on such
statements. Factors that could contribute to these differences
include the following: the impact of supply chain disruptions,
including, among others, the impact on labor availability, raw
material availability, manufacturing and food production;
construction materials and transportation; uncertainties and risks
related to public health crises, including the ongoing COVID-19
pandemic; adverse economic or real estate developments in our
geographic markets or the temperature-controlled warehouse
industry; rising interest rates and inflation in operating costs,
including as a result of the COVID-19 pandemic; general economic
conditions; labor and power costs; labor shortages; risks
associated with the ownership of real estate generally and
temperature-controlled warehouses in particular; acquisition risks,
including the failure to identify or complete attractive
acquisitions or the failure of acquisitions to perform in
accordance with projections and to realize anticipated cost savings
and revenue improvements; our failure to realize the intended
benefits from our recent acquisitions, and including synergies, or
disruptions to our plans and operations or unknown or contingent
liabilities related to our recent acquisitions; risks related to
expansions of existing properties and developments of new
properties, including failure to meet targeted completion dates and
budgeted or stabilized returns within expected time frames, or at
all, in respect thereof; a failure of our information technology
systems, systems conversions and integrations, cybersecurity
attacks or a breach of our information security systems, networks
or processes could cause business disruptions or loss of
confidential information; risks related to privacy and data
security concerns, and data collection and transfer restrictions
and related foreign regulations; defaults or non-renewals of
significant customer contracts, including as a result of the
ongoing COVID-19 pandemic; uncertainty of revenues, given the
nature of our customer contracts; our failure to obtain necessary
outside financing; risks related to, or restrictions contained in,
our debt financings; decreased storage rates or increased vacancy
rates; risks related to current and potential international
operations and properties; difficulties in expanding our operations
into new markets, including international markets; risks related to
the partial ownership of properties, including as a result of our
lack of control over such investments and the failure of such
entities to perform in accordance with projections; our failure to
maintain our status as a REIT; possible environmental liabilities,
including costs, fines or penalties that may be incurred due to
necessary remediation of contamination of properties presently or
previously owned by us; financial market fluctuations; actions by
our competitors and their increasing ability to compete with us;
changes in applicable governmental regulations and tax legislation,
including in the international markets; geopolitical conflicts,
such as the ongoing conflict between Russia and Ukraine; additional
risks with respect to the addition of European operations and
properties; changes in real estate and zoning laws and increases in
real property tax rates; our relationship with our associates,
including the occurrence of any work stoppages or any disputes
under our collective bargaining agreements and employment related
litigation; liabilities as a result of our participation in
multi-employer pension plans; uninsured losses or losses in excess
of our insurance coverage; the potential liabilities, costs and
regulatory impacts associated with our in-house trucking services
and the potential disruptions associated with our use of
third-party trucking service providers to provide transportation
services to our customers; the cost and time requirements as a
result of our operation as a publicly traded REIT; changes in
foreign currency exchange rates; the impact of anti-takeover
provisions in our constituent documents and under Maryland law,
which could make an acquisition of us more difficult, limit
attempts by our stockholders to replace our directors and affect
the price of our common stock, $0.01 par value per share, of our
common stock; and the potential dilutive effect of our common stock
offerings.
Words such as “anticipates,” “believes,”
“continues,” “estimates,” “expects,” “goal,” “objectives,”
“intends,” “may,” “opportunity,” “plans,” “potential,” “near-term,”
“long-term,” “projections,” “assumptions,” “projects,” “guidance,”
“forecasts,” “outlook,” “target,” “trends,” “should,” “could,”
“would,” “will” and similar expressions are intended to identify
such forward-looking statements. Examples of forward-looking
statements included in this document include, among others,
statements about our expected acquisition and expected expansion
and development pipeline and our targeted return on invested
capital on expansion and development opportunities. We qualify any
forward-looking statements entirely by these cautionary factors.
Other risks, uncertainties and factors, including those discussed
under “Risk Factors” in our Annual Report on Form 10-K for the year
ended December 31, 2021 and in our Quarterly Report on Form 10-Q
for the quarter ended March 31, 2022, could cause our actual
results to differ materially from those projected in any
forward-looking statements we make. We assume no obligation to
update or revise these forward-looking statements for any reason,
or to update the reasons actual results could differ materially
from those anticipated in these forward-looking statements, even if
new information becomes available in the future.
Contacts:
Americold Realty Trust, Inc.Investor Relations Telephone:
678-459-1959Email: investor.relations@americold.com
|
Americold Realty Trust, Inc. and Subsidiaries |
Consolidated Balance Sheets |
(In thousands, except shares and per share amounts) |
|
June 30, |
|
December 31, |
|
2022 |
|
2021 |
Assets |
|
|
|
Property, buildings and equipment: |
|
|
|
Land |
$ |
780,381 |
|
|
$ |
807,495 |
|
Buildings and improvements |
|
4,150,724 |
|
|
|
4,152,763 |
|
Machinery and equipment |
|
1,360,551 |
|
|
|
1,352,399 |
|
Assets under construction |
|
533,028 |
|
|
|
450,153 |
|
|
|
6,824,684 |
|
|
|
6,762,810 |
|
Accumulated depreciation |
|
(1,765,611 |
) |
|
|
(1,634,909 |
) |
Property, buildings and equipment – net |
|
5,059,073 |
|
|
|
5,127,901 |
|
|
|
|
|
Operating lease right-of-use assets |
|
367,774 |
|
|
|
377,536 |
|
Accumulated depreciation – operating leases |
|
(68,987 |
) |
|
|
(57,483 |
) |
Operating leases – net |
|
298,787 |
|
|
|
320,053 |
|
|
|
|
|
Financing leases: |
|
|
|
Buildings and improvements |
|
13,549 |
|
|
|
13,552 |
|
Machinery and equipment |
|
137,421 |
|
|
|
146,341 |
|
|
|
150,970 |
|
|
|
159,893 |
|
Accumulated depreciation – financing leases |
|
(55,355 |
) |
|
|
(58,165 |
) |
Financing leases – net |
|
95,615 |
|
|
|
101,728 |
|
Cash, cash equivalents and restricted cash |
|
74,616 |
|
|
|
82,958 |
|
Accounts receivable – net of allowance of $10,523 and $18,755 at
June 30, 2022 and December 31, 2021, respectively |
|
408,090 |
|
|
|
380,014 |
|
Identifiable intangible assets – net |
|
944,058 |
|
|
|
980,966 |
|
Goodwill |
|
1,040,746 |
|
|
|
1,072,980 |
|
Investments in partially owned entities |
|
72,505 |
|
|
|
37,458 |
|
Other assets |
|
141,836 |
|
|
|
112,139 |
|
Total assets |
$ |
8,135,326 |
|
|
$ |
8,216,197 |
|
Liabilities and equity |
|
|
|
Liabilities: |
|
|
|
Borrowings under revolving line of credit |
$ |
584,330 |
|
|
$ |
399,314 |
|
Accounts payable and accrued expenses |
|
554,601 |
|
|
|
559,412 |
|
Mortgage notes, senior unsecured notes and term loans – net of
deferred financing costs of $9,934 and $11,050 in the aggregate, at
June 30, 2022 and December 31, 2021, respectively |
|
2,361,487 |
|
|
|
2,443,806 |
|
Sale-leaseback financing obligations |
|
175,340 |
|
|
|
178,817 |
|
Financing lease obligations |
|
91,926 |
|
|
|
97,633 |
|
Operating lease obligations |
|
282,990 |
|
|
|
301,765 |
|
Unearned revenue |
|
30,670 |
|
|
|
26,143 |
|
Pension and postretirement benefits |
|
3,051 |
|
|
|
2,843 |
|
Deferred tax liability – net |
|
143,340 |
|
|
|
169,209 |
|
Multiemployer pension plan withdrawal liability |
|
8,011 |
|
|
|
8,179 |
|
Total liabilities |
|
4,235,746 |
|
|
|
4,187,121 |
|
Equity |
|
|
|
Stockholders’ equity: |
|
|
|
Common stock, $0.01 par value – 500,000,000 authorized shares;
269,290,641 and 268,282,592 issued and outstanding at June 30,
2022 and December 31, 2021, respectively |
|
2,693 |
|
|
|
2,683 |
|
Paid-in capital |
|
5,182,309 |
|
|
|
5,171,690 |
|
Accumulated deficit and distributions in excess of net
earnings |
|
(1,290,511 |
) |
|
|
(1,157,888 |
) |
Accumulated other comprehensive (loss) income |
|
(6,496 |
) |
|
|
4,522 |
|
Total stockholders’ equity |
|
3,887,995 |
|
|
|
4,021,007 |
|
Noncontrolling interests: |
|
|
|
Noncontrolling interests in operating partnership |
|
11,585 |
|
|
|
8,069 |
|
Total equity |
|
3,899,580 |
|
|
|
4,029,076 |
|
|
|
|
|
Total liabilities and equity |
$ |
8,135,326 |
|
|
$ |
8,216,197 |
|
|
Americold Realty Trust, Inc. and Subsidiaries |
Consolidated Statements of Operations |
(In thousands, except per share amounts) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues: |
|
|
|
|
|
|
|
Rent, storage and warehouse services |
$ |
564,379 |
|
|
$ |
503,734 |
|
|
$ |
1,105,304 |
|
|
$ |
989,185 |
|
Third-party managed services |
|
83,486 |
|
|
|
72,173 |
|
|
|
169,346 |
|
|
|
145,245 |
|
Transportation services |
|
81,891 |
|
|
|
78,800 |
|
|
|
160,801 |
|
|
|
155,072 |
|
Total revenues |
|
729,756 |
|
|
|
654,707 |
|
|
|
1,435,451 |
|
|
|
1,289,502 |
|
Operating expenses: |
|
|
|
|
|
|
|
Rent, storage and warehouse services cost of operations |
|
413,394 |
|
|
|
359,355 |
|
|
|
808,061 |
|
|
|
698,625 |
|
Third-party managed services cost of operations |
|
79,765 |
|
|
|
70,480 |
|
|
|
162,124 |
|
|
|
139,170 |
|
Transportation services cost of operations |
|
68,306 |
|
|
|
69,550 |
|
|
|
138,687 |
|
|
|
139,119 |
|
Depreciation and amortization |
|
82,690 |
|
|
|
84,459 |
|
|
|
165,310 |
|
|
|
161,670 |
|
Selling, general and administrative |
|
56,273 |
|
|
|
42,475 |
|
|
|
113,875 |
|
|
|
87,527 |
|
Acquisition, litigation and other, net |
|
5,663 |
|
|
|
3,922 |
|
|
|
15,738 |
|
|
|
24,673 |
|
Impairment of long-lived assets |
|
— |
|
|
|
1,528 |
|
|
|
— |
|
|
|
1,528 |
|
Total operating expenses |
|
706,091 |
|
|
|
631,769 |
|
|
|
1,403,795 |
|
|
|
1,252,312 |
|
|
|
|
|
|
|
|
|
Operating income |
|
23,665 |
|
|
|
22,938 |
|
|
|
31,656 |
|
|
|
37,190 |
|
|
|
|
|
|
|
|
|
Other (expense) income: |
|
|
|
|
|
|
|
Interest expense |
|
(26,545 |
) |
|
|
(26,579 |
) |
|
|
(52,318 |
) |
|
|
(52,535 |
) |
Loss on debt extinguishment, modifications and termination of
derivative instruments |
|
(627 |
) |
|
|
(925 |
) |
|
|
(1,244 |
) |
|
|
(4,424 |
) |
Other, net |
|
(4,609 |
) |
|
|
141 |
|
|
|
(4,363 |
) |
|
|
317 |
|
Loss before income taxes |
|
(8,116 |
) |
|
|
(4,425 |
) |
|
|
(26,269 |
) |
|
|
(19,452 |
) |
Income tax benefit
(expense) |
|
|
|
|
|
|
|
Current |
|
(817 |
) |
|
|
(2,406 |
) |
|
|
(1,998 |
) |
|
|
(3,617 |
) |
Deferred |
|
12,886 |
|
|
|
(6,568 |
) |
|
|
14,775 |
|
|
|
(4,566 |
) |
Total income tax benefit
(expense) |
|
12,069 |
|
|
|
(8,974 |
) |
|
|
12,777 |
|
|
|
(8,183 |
) |
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
3,953 |
|
|
$ |
(13,399 |
) |
|
$ |
(13,492 |
) |
|
$ |
(27,635 |
) |
Net income (loss) attributable
to noncontrolling interests |
|
18 |
|
|
|
(29 |
) |
|
|
(20 |
) |
|
|
149 |
|
Net income (loss) attributable
to Americold Realty Trust |
$ |
3,935 |
|
|
$ |
(13,370 |
) |
|
$ |
(13,472 |
) |
|
$ |
(27,784 |
) |
|
|
|
|
|
|
|
|
Weighted average common stock
outstanding – basic |
|
269,497 |
|
|
|
253,213 |
|
|
|
269,464 |
|
|
|
253,076 |
|
Weighted average common stock
outstanding – diluted |
|
270,384 |
|
|
|
253,213 |
|
|
|
270,532 |
|
|
|
253,076 |
|
|
|
|
|
|
|
|
|
Net income (loss) per common
stock of beneficial interest - basic |
$ |
0.01 |
|
|
$ |
(0.05 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.11 |
) |
Net income (loss) per common
stock of beneficial interest - diluted |
$ |
0.01 |
|
|
$ |
(0.05 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.11 |
) |
|
Reconciliation of Net Income (Loss) to NAREIT FFO, Core FFO, and
AFFO |
(In thousands, except per share amounts) |
|
Three Months Ended |
|
YTD |
|
Q2 22 |
Q1 22 |
Q4 21 |
Q3 21 |
Q2 21 |
|
2022 |
Net income (loss) |
$ |
3,953 |
|
$ |
(17,445 |
) |
$ |
(7,982 |
) |
$ |
5,308 |
|
$ |
(13,399 |
) |
|
$ |
(13,492 |
) |
Adjustments: |
|
|
|
|
|
|
|
Real estate related depreciation |
|
51,738 |
|
|
52,200 |
|
|
54,816 |
|
|
48,217 |
|
|
44,871 |
|
|
|
103,938 |
|
Net loss (gain) on asset disposals |
|
4 |
|
|
63 |
|
|
65 |
|
|
(1 |
) |
|
(13 |
) |
|
|
67 |
|
Impairment charges on real estate assets |
|
— |
|
|
— |
|
|
— |
|
|
224 |
|
|
1,528 |
|
|
|
— |
|
Our share of reconciling items related to partially owned
entities |
|
1,346 |
|
|
1,033 |
|
|
822 |
|
|
463 |
|
|
861 |
|
|
|
2,379 |
|
NAREIT Funds from
operations |
$ |
57,041 |
|
$ |
35,851 |
|
$ |
47,721 |
|
$ |
54,211 |
|
$ |
33,848 |
|
|
$ |
92,892 |
|
Adjustments: |
|
|
|
|
|
|
|
Net loss (gain) on sale of non-real estate assets |
|
72 |
|
|
(235 |
) |
|
861 |
|
|
(171 |
) |
|
(304 |
) |
|
|
(163 |
) |
Acquisition, litigation and other |
|
5,663 |
|
|
10,075 |
|
|
20,567 |
|
|
6,338 |
|
|
3,922 |
|
|
|
15,738 |
|
Loss on debt extinguishment, modifications and termination of
derivative instruments |
|
628 |
|
|
616 |
|
|
638 |
|
|
627 |
|
|
925 |
|
|
|
1,244 |
|
Foreign currency exchange loss (gain) |
|
1,290 |
|
|
(325 |
) |
|
294 |
|
|
349 |
|
|
140 |
|
|
|
965 |
|
Gain on extinguishment of New Market Tax Credit structure |
|
(3,410 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(3,410 |
) |
Loss on deconsolidation of Chile Joint Venture |
|
4,148 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
4,148 |
|
Our share of reconciling items related to partially owned
entities |
|
(36 |
) |
|
347 |
|
|
74 |
|
|
122 |
|
|
89 |
|
|
|
311 |
|
Core FFO applicable to common
shareholders |
$ |
65,396 |
|
$ |
46,329 |
|
$ |
70,155 |
|
$ |
61,476 |
|
$ |
38,620 |
|
|
$ |
111,725 |
|
Adjustments: |
|
|
|
|
|
|
|
Amortization of deferred financing costs and pension withdrawal
liability |
|
1,160 |
|
|
1,146 |
|
|
1,104 |
|
|
1,088 |
|
|
1,085 |
|
|
|
2,306 |
|
Non-real estate asset impairment |
|
— |
|
|
— |
|
|
— |
|
|
1,560 |
|
|
— |
|
|
|
— |
|
Amortization of below/above market leases |
|
549 |
|
|
508 |
|
|
843 |
|
|
1,017 |
|
|
362 |
|
|
|
1,057 |
|
Straight-line net rent |
|
77 |
|
|
204 |
|
|
(302 |
) |
|
411 |
|
|
(170 |
) |
|
|
281 |
|
Deferred income tax (benefit) expense |
|
(12,886 |
) |
|
(1,889 |
) |
|
(10,151 |
) |
|
(3,562 |
) |
|
6,568 |
|
|
|
(14,775 |
) |
Share-based compensation expense, excluding IPO grants |
|
7,032 |
|
|
8,349 |
|
|
9,112 |
|
|
4,291 |
|
|
5,467 |
|
|
|
15,381 |
|
Non-real estate depreciation and amortization |
|
30,952 |
|
|
30,420 |
|
|
32,785 |
|
|
22,352 |
|
|
39,588 |
|
|
|
61,372 |
|
Maintenance capital expenditures(a) |
|
(20,118 |
) |
|
(16,106 |
) |
|
(20,808 |
) |
|
(18,938 |
) |
|
(20,488 |
) |
|
|
(36,224 |
) |
Our share of reconciling items related to partially owned
entities |
|
1,713 |
|
|
(107 |
) |
|
(502 |
) |
|
(100 |
) |
|
711 |
|
|
|
1,606 |
|
Adjusted FFO applicable to
common shareholders |
$ |
73,875 |
|
$ |
68,854 |
|
$ |
82,236 |
|
$ |
69,595 |
|
$ |
71,743 |
|
|
$ |
142,729 |
|
|
Reconciliation of Net Income (Loss) to NAREIT FFO, Core FFO, and
AFFO (continued) |
(In thousands except per share amounts) |
|
Three Months Ended |
YTD |
|
Q2 22 |
Q1 22 |
Q4 21 |
Q3 21 |
Q2 21 |
|
|
2022 |
|
|
|
|
|
|
|
|
NAREIT Funds from operations |
$ |
57,041 |
$ |
35,851 |
$ |
47,721 |
$ |
54,211 |
$ |
33,848 |
|
$ |
92,892 |
Core FFO applicable to common
shareholders |
$ |
65,396 |
$ |
46,329 |
$ |
70,155 |
$ |
61,476 |
$ |
38,620 |
|
$ |
111,725 |
Adjusted FFO applicable to
common shareholders |
$ |
73,875 |
$ |
68,854 |
$ |
82,236 |
$ |
69,595 |
$ |
71,743 |
|
$ |
142,729 |
|
|
|
|
|
|
|
|
Reconciliation of
weighted average shares: |
|
|
|
|
|
|
|
Weighted average basic shares
for net income calculation |
|
269,497 |
|
269,164 |
|
267,499 |
|
261,865 |
|
253,213 |
|
|
269,464 |
Dilutive stock options,
unvested restricted stock units, equity forward contracts |
|
887 |
|
835 |
|
680 |
|
685 |
|
3,544 |
|
|
1,068 |
Weighted average dilutive
shares |
|
270,384 |
|
269,999 |
|
268,179 |
|
262,550 |
|
256,757 |
|
|
270,532 |
|
|
|
|
|
|
|
|
NAREIT FFO - basic per
share |
$ |
0.21 |
$ |
0.13 |
$ |
0.18 |
$ |
0.21 |
$ |
0.13 |
|
$ |
0.34 |
NAREIT FFO - diluted per
share |
$ |
0.21 |
$ |
0.13 |
$ |
0.18 |
$ |
0.21 |
$ |
0.13 |
|
$ |
0.34 |
|
|
|
|
|
|
|
|
Core FFO - basic per
share |
$ |
0.24 |
$ |
0.17 |
$ |
0.26 |
$ |
0.23 |
$ |
0.15 |
|
$ |
0.41 |
Core FFO - diluted per
share |
$ |
0.24 |
$ |
0.17 |
$ |
0.26 |
$ |
0.23 |
$ |
0.15 |
|
$ |
0.41 |
|
|
|
|
|
|
|
|
Adjusted FFO - basic per
share |
$ |
0.27 |
$ |
0.26 |
$ |
0.31 |
$ |
0.27 |
$ |
0.28 |
|
$ |
0.53 |
Adjusted FFO - diluted per
share |
$ |
0.27 |
$ |
0.26 |
$ |
0.31 |
$ |
0.27 |
$ |
0.28 |
|
$ |
0.53 |
(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. |
Reconciliation of Net (Loss) Income to EBITDA, NAREIT EBITDAre, and
Core EBITDA |
(In thousands - unaudited) |
|
Three Months Ended |
|
TrailingTwelveMonthsEnded |
|
Q1 22 |
Q4 21 |
Q3 21 |
Q2 21 |
Q1 21 |
|
Q1 2022 |
Net (loss) income |
$ |
3,953 |
|
$ |
(7,982 |
) |
$ |
5,308 |
|
$ |
(13,399 |
) |
$ |
(14,236 |
) |
|
$ |
(12,120 |
) |
Adjustments: |
|
|
|
|
|
|
|
Interest expense |
|
26,545 |
|
|
21,339 |
|
|
25,303 |
|
|
26,579 |
|
|
25,956 |
|
|
|
99,766 |
|
Income tax (benefit) expense |
|
(12,069 |
) |
|
(9,526 |
) |
|
(226 |
) |
|
8,974 |
|
|
(791 |
) |
|
|
(12,847 |
) |
Depreciation and amortization |
|
82,690 |
|
|
87,601 |
|
|
70,569 |
|
|
84,459 |
|
|
77,211 |
|
|
|
325,319 |
|
EBITDA |
$ |
101,119 |
|
$ |
91,432 |
|
$ |
100,954 |
|
$ |
106,613 |
|
$ |
88,140 |
|
|
$ |
400,118 |
|
Adjustments: |
|
|
|
|
|
|
|
Adjustment to reflect share of EBITDAre of partially owned
entities |
|
6,215 |
|
|
4,625 |
|
|
1,854 |
|
|
1,838 |
|
|
649 |
|
|
|
14,532 |
|
NAREIT EBITDAre |
$ |
107,334 |
|
$ |
96,057 |
|
$ |
102,808 |
|
$ |
108,451 |
|
$ |
88,789 |
|
|
$ |
414,650 |
|
Adjustments: |
|
|
|
|
|
|
|
Acquisition, litigation and other |
|
5,663 |
|
|
20,567 |
|
|
6,338 |
|
|
3,922 |
|
|
20,751 |
|
|
|
36,490 |
|
Loss from investments in partially owned entities |
|
3,647 |
|
|
753 |
|
|
490 |
|
|
61 |
|
|
700 |
|
|
|
4,951 |
|
Asset impairment |
|
— |
|
|
— |
|
|
1,784 |
|
|
1,528 |
|
|
— |
|
|
|
3,312 |
|
Foreign currency exchange (gain) loss |
|
1,290 |
|
|
294 |
|
|
349 |
|
|
140 |
|
|
(173 |
) |
|
|
2,073 |
|
Share-based compensation expense |
|
7,032 |
|
|
9,112 |
|
|
4,291 |
|
|
5,467 |
|
|
5,030 |
|
|
|
25,902 |
|
Loss on debt extinguishment, modifications and termination of
derivative instruments |
|
627 |
|
|
638 |
|
|
627 |
|
|
925 |
|
|
3,499 |
|
|
|
2,817 |
|
(Gain) loss on real estate and other asset disposals |
|
76 |
|
|
926 |
|
|
(172 |
) |
|
(317 |
) |
|
(158 |
) |
|
|
513 |
|
Reduction in EBITDAre from partially owned entities |
|
(6,215 |
) |
|
(4,625 |
) |
|
(1,854 |
) |
|
(1,838 |
) |
|
(649 |
) |
|
|
(14,532 |
) |
Core EBITDA |
$ |
119,454 |
|
$ |
123,722 |
|
$ |
114,661 |
|
$ |
118,339 |
|
$ |
117,789 |
|
|
$ |
476,176 |
|
(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. |
Revenue and Contribution (NOI) by Segment |
(in thousands) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Segment revenues: |
|
|
|
|
|
|
|
Warehouse |
$ |
564,379 |
|
|
$ |
503,734 |
|
|
$ |
1,105,304 |
|
|
$ |
989,185 |
|
Third-party managed |
|
83,486 |
|
|
|
72,173 |
|
|
|
169,346 |
|
|
|
145,245 |
|
Transportation |
|
81,891 |
|
|
|
78,800 |
|
|
|
160,801 |
|
|
|
155,072 |
|
Total revenues |
|
729,756 |
|
|
|
654,707 |
|
|
|
1,435,451 |
|
|
|
1,289,502 |
|
|
|
|
|
|
|
|
|
Segment contribution
(NOI): |
|
|
|
|
|
|
|
Warehouse |
|
150,985 |
|
|
|
144,379 |
|
|
|
297,243 |
|
|
|
290,560 |
|
Third-party managed |
|
3,721 |
|
|
|
1,693 |
|
|
|
7,222 |
|
|
|
6,075 |
|
Transportation |
|
13,585 |
|
|
|
9,250 |
|
|
|
22,114 |
|
|
|
15,953 |
|
Total segment contribution (NOI) |
|
168,291 |
|
|
|
155,322 |
|
|
|
326,579 |
|
|
|
312,588 |
|
|
|
|
|
|
|
|
|
Reconciling items: |
|
|
|
|
|
|
|
Depreciation and
amortization |
|
(82,690 |
) |
|
|
(84,459 |
) |
|
|
(165,310 |
) |
|
|
(161,670 |
) |
Selling, general and
administrative |
|
(56,273 |
) |
|
|
(42,475 |
) |
|
|
(113,875 |
) |
|
|
(87,527 |
) |
Acquisition, litigation and
other, net |
|
(5,663 |
) |
|
|
(3,922 |
) |
|
|
(15,738 |
) |
|
|
(24,673 |
) |
Impairment of long-lived
assets |
|
— |
|
|
|
(1,528 |
) |
|
|
— |
|
|
|
(1,528 |
) |
Interest expense |
|
(26,545 |
) |
|
|
(26,579 |
) |
|
|
(52,318 |
) |
|
|
(52,535 |
) |
Loss on debt extinguishment,
modifications and termination of derivative instruments |
|
(627 |
) |
|
|
(925 |
) |
|
|
(1,244 |
) |
|
|
(4,424 |
) |
Other, net |
|
(4,609 |
) |
|
|
141 |
|
|
|
(4,363 |
) |
|
|
317 |
|
Loss before income tax benefit (expense) |
$ |
(8,116 |
) |
|
$ |
(4,425 |
) |
|
$ |
(26,269 |
) |
|
$ |
(19,452 |
) |
We view and manage our business through three
primary business segments—warehouse, third-party managed and
transportation. 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, blast freezing, case-picking, kitting and repackaging and
other recurring handling services.
Under our third-party managed segment, we manage
warehouses on behalf of third parties and provide warehouse
management services to several leading food retailers and
manufacturers in customer-owned facilities, including some of our
largest and longest-standing customers. 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 to many of our key customers underscores our
ability to offer a complete and integrated suite of services across
the cold chain.
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 services, we charge a fixed fee.
Notes and DefinitionsWe
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 assets, plus specified non-cash
items, such as real estate asset depreciation and amortization,
real estate asset impairment 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 FFO adjusted for the effects of gain or loss on the sale of
non-real estate assets, acquisition, litigation and other, net,
share-based compensation expense for the IPO retention grants, loss
on debt extinguishment, modifications and termination of derivative
instruments, foreign currency exchange gain or loss, gain on
extinguishment of New Market Tax Credit structure and loss on
deconsolidation of subsidiary contributed to joint venture. We also
adjust for the impact of Core FFO attributable to partially owned
entities. We have elected to reflect our share of Core FFO
attributable to partially owned entities since the Brazil joint
ventures are strategic partnerships which we continue to actively
participate in on an ongoing basis. The previous joint venture, the
China JV, was considered for disposition during the periods
presented. 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 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 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,
non-real estate asset impairment, amortization of above or below
market leases, straight-line net rent, provision or benefit from
deferred income taxes, share-based compensation expense, excluding
IPO grants, 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. 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 annual and
quarterly 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 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 and adjustment to
reflect our 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, litigation and other, net, loss
or income from investments in partially owned entities, asset
impairment, foreign currency exchange gain or loss, share-based
compensation expense, loss on debt extinguishment, modifications
and termination of derivative instruments, loss or gain on real
estate and asset disposals, gain on extinguishment of New Market
Tax Credit structure and loss on deconsolidation of subsidiary
contributed to joint venture and reduction in EBITDAre from
partially owned entities. 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 EBITDA but which we do not believe are
indicative of our core business operations. EBITDA and Core EBITDA
are not measurements of financial performance under U.S. GAAP, and
our EBITDA and Core EBITDA may not be comparable to similarly
titled measures of other companies. You should not consider our
EBITDA and Core EBITDA as alternatives to net income or cash flows
from operating activities determined in accordance with U.S. GAAP.
Our calculations of EBITDA and Core EBITDA have limitations as
analytical tools, including:
- 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 22 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.
We define our “same store” population once a
year at the beginning of the current calendar year. Our same store
population includes properties that were owned or leased for the
entirety of two comparable periods and that have reported at least
twelve months of consecutive normalized operations prior to January
1 of the prior calendar year. We define “normalized operations” as
properties that have been open for operation or lease after
development or significant modification, including the expansion of
a warehouse footprint or a warehouse rehabilitation subsequent to
an event, such as a natural disaster or similar event causing
disruption to operations. In addition, our definition of
“normalized operations” takes into account changes in the ownership
structure (e.g., purchase of acquired properties will be included
in the “same store” population if owned by us as of the first
business day of each year, of the prior calendar year and 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 entering
development subsequent to the beginning of the current calendar
year. As such, the “same store” population for the period ended
June 30, 2022 includes all properties that we owned at January
3, which had both been owned and had reached “normalized
operations” by January 3, 2022.
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,
litigation 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 35 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 32 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 24 for
additional information regarding our indebtedness.
All quarterly amounts and non-GAAP disclosures
within this filing shall be deemed unaudited.
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