Americold Realty Trust Reports Modest Revenue Growth, Improved Profitability, and Strategic Developments in Q3 2024

Americold Realty Trust, Inc. (ART), a Real Estate Investment Trust (REIT), reported its financial performance for the nine months ended September 30, 2024, highlighting several strategic developments and financial metrics. The company operates 239 warehouses globally, with a significant presence in North America, Europe, Asia-Pacific, and South America.

For the three months ended September 30, 2024, Americold's total revenues reached $674.2 million, a slight increase from $667.9 million in the same period of 2023. Warehouse segment revenues specifically rose to $612.2 million, up from $602.6 million, reflecting a 1.6% increase. The nine-month figures showed total revenues of $2.0 billion, compared to $1.99 billion in the previous year, indicating a modest growth trajectory.

The company's profitability metrics also improved, with a warehouse segment contribution (Net Operating Income, NOI) of $198.6 million for the third quarter, an 11.7% increase from $177.8 million in 2023. For the nine months, warehouse segment NOI increased by 14.2% to $600.3 million, compared to $525.5 million in the prior year. The total segment margin for the third quarter improved to 32.4%, up from 29.5% in 2023.

Strategically, Americold has been active in enhancing its operational efficiency through "Project Orion," a transformation initiative launched in February 2023, aimed at improving technology and business processes. The project has incurred costs of $138.3 million to date, with an unamortized balance of $76.0 million as of September 30, 2024. The company also experienced a cybersecurity incident in April 2023, but operations returned to normal by June 30, 2023.

In terms of acquisitions, Americold purchased eleven facilities for $191.0 million during the nine months ended September 30, 2024, which resulted in a significant loss of $115.1 million on debt extinguishment. The company also sold its minority interest in the Comfrio joint venture, recognizing a loss of $56.6 million due to remeasurement of equity interest.

Financially, total indebtedness increased from $3.0 billion at the end of 2023 to $3.4 billion by September 30, 2024. The company completed a public offering of $500.0 million in senior unsecured notes in September 2024, with proceeds used to repay existing borrowings. Interest expense decreased slightly, attributed to the repayment of revolving debt and increased capitalized interest.

Overall, Americold Realty Trust's performance reflects a combination of revenue growth, strategic acquisitions, and ongoing investments in technology and operational efficiency, despite facing challenges such as a cybersecurity incident and fluctuating market conditions.