Americold Realty Trust reported an 11% decrease in second quarter revenues to $649.6 million, while net operating income (NOI) rose 9.4% to $184.1 million and a net loss of $104.8 million equated to $0.39 per diluted common share.
The Atlanta, Georgia, USA-headquartered company’s global warehouse segment generated a 3% rise in revenues to $581.2 million and a 14.5% NOI gain to $172.8 million during the three-month period ending on June 30, 2023. Same store revenue rose 2.8%, or 3.9% on a constant currency basis, while same store NOI was up 12.7%, or 13.8% on a constant currency basis.
“We are pleased with our second quarter results, where we delivered AFFO (Adjusted Funds from Operations) per share of $0.28. This performance was primarily driven by our global warehouse same store pool, said CEO George Chappelle. “Our same store economic occupancy increased by 687 basis points over prior year to 84.8%, a record-setting, second quarter level. Additionally, this quarter, we derived 48.5% of rent and storage revenue from fixed commitment storage contracts, which is another record-setting level.”
As a result, Americold increased its full year 2023 AFFO per share guidance to the range of $1.20 to $1.30. This guidance increase reflects both a strong first half of the year in combination with continued progress throughout the second half.
Seals Deal with Canadian Pacific Kansas City
During Q2 the company announced an agreement with Canadian Pacific Kansas City (CPKC), one of North America’s largest railroad companies. The strategic collaboration will see Americold build, own and operate cold storage facilities on the land located on CPKC’s railroad network.
“Similar to our recent DP World announcement, our agreement with CPKC illustrates our unique ability to create value by collaborating with global leaders in the supply chain,” said Chappelle. “We look forward to continuing to support our customers’ growth through these exclusive collaborations as well as through other traditional greenfield development and expansion opportunities.”
Trading under the COLD symbol on the New York Stock Exchange, Americold Realty Trust, is the world’s largest publicly traded real estate investment trust (REIT) focused on the ownership, operation, acquisitions and development of temperature-controlled warehouses. It owns and operates 242 cold storage facilities, with approximately 1,476,600,000 cubic feet of space available to customers in North and South America, Europe and the Asia-Pacific region.
