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.
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 |
|
|
|
|
|
|
|
|
|
|
|
Number of same store warehouses |
|
226 |
|
|
|
|
|
226 |
|
|
|
|
|
|
|
Same store revenues: |
|
|
|
|
|
|
|
|
|
|
|
Rent and storage |
$ |
251,090 |
|
|
$ |
254,792 |
|
|
$ |
263,932 |
|
|
|
(4.9 |
)% |
|
|
(3.5 |
)% |
|
Warehouse services |
|
337,628 |
|
|
|
340,124 |
|
|
|
327,606 |
|
|
|
3.1 |
% |
|
|
3.8 |
% |
|
Total same store revenues |
$ |
588,718 |
|
|
$ |
594,916 |
|
|
$ |
591,538 |
|
|
|
(0.5 |
)% |
|
|
0.6 |
% |
|
Same store cost of operations: |
|
|
|
|
|
|
|
|
|
|
|
Power |
|
34,680 |
|
|
|
35,376 |
|
|
|
31,529 |
|
|
|
10.0 |
% |
|
|
12.2 |
% |
|
Other facilities costs |
|
59,192 |
|
|
|
60,253 |
|
|
|
60,569 |
|
|
|
(2.30 |
)% |
|
|
(0.5 |
)% |
|
Labor |
|
240,007 |
|
|
|
241,799 |
|
|
|
244,348 |
|
|
|
(1.8 |
)% |
|
|
(1.0 |
)% |
|
Other services costs |
|
53,131 |
|
|
|
53,732 |
|
|
|
62,731 |
|
|
|
(15.3 |
)% |
|
|
(14.3 |
)% |
|
Total same store cost of operations |
$ |
387,010 |
|
|
$ |
391,160 |
|
|
$ |
399,177 |
|
|
|
(3.0 |
)% |
|
|
(2.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store contribution (NOI) |
$ |
201,708 |
|
|
$ |
203,756 |
|
|
$ |
192,361 |
|
|
|
4.9 |
% |
|
|
5.9 |
% |
|
Same store rent and storage contribution (NOI)(2) |
$ |
157,218 |
|
|
$ |
159,163 |
|
|
$ |
171,834 |
|
|
|
(8.5 |
)% |
|
|
(7.4 |
)% |
|
Same store services contribution (NOI)(3) |
$ |
44,490 |
|
|
$ |
44,593 |
|
|
$ |
20,527 |
|
|
|
116.7 |
% |
|
|
117.2 |
% |
|
Same store margin |
|
34.3 |
% |
|
|
34.2 |
% |
|
|
32.5 |
% |
|
174 bps |
173 bps |
|
Same store rent and storage margin(4) |
|
62.6 |
% |
|
|
62.5 |
% |
|
|
65.0 |
% |
|
-249 bps |
-264 bps |
|
Same store services margin(5) |
|
13.2 |
% |
|
|
13.1 |
% |
|
|
6.3 |
% |
|
691 bps |
685 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store rent and storage metrics: |
|
|
|
|
|
|
|
|
|
|
|
Average economic occupied pallets(6) |
|
4,128 |
|
|
n/a |
|
|
4,397 |
|
|
|
-6.1 |
% |
|
n/a |
|
Average physical occupied pallets(7) |
|
3,572 |
|
|
n/a |
|
|
3,919 |
|
|
|
-8.9 |
% |
|
n/a |
|
Average physical pallet positions |
|
5,250 |
|
|
n/a |
|
|
5,235 |
|
|
|
0.3 |
% |
|
n/a |
|
Economic occupancy percentage(6) |
|
78.6 |
% |
|
n/a |
|
|
84.0 |
% |
|
-536 bps |
|
n/a |
|
Physical occupancy percentage(7) |
|
68.0 |
% |
|
n/a |
|
|
74.9 |
% |
|
-682 bps |
|
n/a |
|
Same store rent and storage revenues per average economic occupied
pallet |
$ |
60.83 |
|
|
$ |
61.72 |
|
|
$ |
60.03 |
|
|
|
1.3 |
% |
|
|
2.8 |
% |
|
Same store rent and storage revenues per average physical occupied
pallet |
$ |
70.29 |
|
|
$ |
71.33 |
|
|
$ |
67.35 |
|
|
|
4.4 |
% |
|
|
5.9 |
% |
|
Same store services metrics: |
|
|
|
|
|
|
|
|
|
|
|
Throughput pallets |
|
8,894 |
|
|
n/a |
|
|
9,043 |
|
|
|
(1.6 |
)% |
|
n/a |
|
Same store warehouse services revenues per throughput pallet |
$ |
37.96 |
|
|
$ |
38.24 |
|
|
$ |
36.23 |
|
|
|
4.8 |
% |
|
|
5.6 |
|
|
(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) Calculated as same store rent and
storage revenues less same store power and other facilities
costs.(3) Calculated as same store warehouse
services revenues less same store 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 services
contribution (NOI) divided by same store services
revenues.(6) 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.(7) 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NON-SAME STORE
WAREHOUSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Number of non-same store
warehouses(2) |
|
9 |
|
|
|
|
|
|
|
12 |
|
|
|
|
|
|
|
|
|
| Non-same store
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rent and storage |
$ |
8,799 |
|
|
$ |
8,829 |
|
|
$ |
12,709 |
|
|
|
n/r |
|
|
|
n/r |
|
| Warehouse services |
|
8,948 |
|
|
|
8,953 |
|
|
|
8,015 |
|
|
|
n/r |
|
|
|
n/r |
|
| Total non-same store
revenues |
$ |
17,747 |
|
|
$ |
17,782 |
|
|
$ |
20,724 |
|
|
|
n/r |
|
|
|
n/r |
|
| Non-same store cost of
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Power |
|
591 |
|
|
|
591 |
|
|
|
2,470 |
|
|
|
n/r |
|
|
|
n/r |
|
| Other facilities costs |
|
2,528 |
|
|
|
2,531 |
|
|
|
3,599 |
|
|
|
n/r |
|
|
|
n/r |
|
| Labor |
|
11,479 |
|
|
|
11,483 |
|
|
|
8,505 |
|
|
|
n/r |
|
|
|
n/r |
|
| Other services costs |
|
3,430 |
|
|
|
3,429 |
|
|
|
1,409 |
|
|
|
n/r |
|
|
|
n/r |
|
| Total non-same store cost of
operations |
$ |
18,028 |
|
|
$ |
18,034 |
|
|
$ |
15,983 |
|
|
|
n/r |
|
|
|
n/r |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-same store
contribution (NOI) |
$ |
(281 |
) |
|
$ |
(252 |
) |
|
$ |
4,741 |
|
|
|
n/r |
|
|
|
n/r |
|
| Non-same store rent and
storage contribution (NOI)(3) |
$ |
5,680 |
|
|
$ |
5,707 |
|
|
$ |
6,640 |
|
|
|
n/r |
|
|
|
n/r |
|
| Non-same store services
contribution (NOI)(4) |
$ |
(5,961 |
) |
|
$ |
(5,959 |
) |
|
$ |
(1,899 |
) |
|
|
n/r |
|
|
|
n/r |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-same store rent
and storage metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average economic occupied pallets(5) |
|
144 |
|
|
|
n/a |
|
|
|
144 |
|
|
|
n/r |
|
|
|
n/a |
|
|
Average physical occupied pallets(6) |
|
121 |
|
|
|
n/a |
|
|
|
122 |
|
|
|
n/r |
|
|
|
n/a |
|
|
Average physical pallet positions |
|
267 |
|
|
|
n/a |
|
|
|
258 |
|
|
|
n/r |
|
|
|
n/a |
|
| Economic occupancy
percentage(5) |
|
53.9 |
% |
|
|
n/a |
|
|
|
55.8 |
% |
|
|
n/r |
|
|
|
n/a |
|
| Physical occupancy
percentage(6) |
|
45.3 |
% |
|
|
n/a |
|
|
|
47.3 |
% |
|
|
n/r |
|
|
|
n/a |
|
| Non-same store rent and
storage revenues per average economic occupied pallet |
$ |
61.10 |
|
|
$ |
61.31 |
|
|
$ |
88.26 |
|
|
|
n/r |
|
|
|
n/r |
|
| Non-same store rent and
storage revenues per average physical occupied pallet |
$ |
72.72 |
|
|
$ |
72.97 |
|
|
$ |
104.17 |
|
|
|
n/r |
|
|
|
n/r |
|
| Non-same store
services metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Throughput pallets |
|
340 |
|
|
|
n/a |
|
|
|
341 |
|
|
|
n/r |
|
|
|
n/a |
|
| Non-same store warehouse
services revenues per throughput pallet |
$ |
26.32 |
|
|
$ |
26.33 |
|
|
$ |
23.50 |
|
|
|
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) The non-same store facility count
consists of: 5 sites in the recently completed expansion and
development phase (further detailed in the External Development and
Capital Deployment section of our quarterly supplement), 2
facilities that we purchased in 2023, 2 facilities whose operations
have ceased and the Company is evaluating alternative use
including, third party lease or sale. As of December 31, 2024,
there are 6 sites in the development and expansion phase that will
be added to the non - same store pool when operations
commence.(3) Calculated as non-same store rent and
storage revenues less non-same store power and other facilities
costs.(4) Calculated as non-same store warehouse
services revenues less non-same store labor and other services
costs.(5) 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.(6) 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)(n/r = not relevant) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Years 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 |
$ |
1,059,508 |
|
|
$ |
1,078,900 |
|
|
$ |
1,101,741 |
|
|
|
(3.8 |
)% |
|
|
(2.1 |
)% |
| Warehouse services |
|
1,357,235 |
|
|
|
1,370,974 |
|
|
|
1,289,348 |
|
|
|
5.3 |
% |
|
|
6.3 |
% |
| Total revenues |
$ |
2,416,743 |
|
|
$ |
2,449,874 |
|
|
$ |
2,391,089 |
|
|
|
1.1 |
% |
|
|
2.5 |
% |
| Global Warehouse cost
of operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Power |
|
147,453 |
|
|
|
151,196 |
|
|
|
147,750 |
|
|
|
(0.2 |
)% |
|
|
2.3 |
% |
| Other facilities costs(2) |
|
256,910 |
|
|
|
262,127 |
|
|
|
247,743 |
|
|
|
3.7 |
% |
|
|
5.8 |
% |
| Labor |
|
998,543 |
|
|
|
1,007,972 |
|
|
|
1,023,806 |
|
|
|
(2.5 |
)% |
|
|
(1.5 |
)% |
| Other services costs(3) |
|
212,124 |
|
|
|
215,995 |
|
|
|
249,187 |
|
|
|
(14.9 |
)% |
|
|
(13.3 |
)% |
| Total warehouse cost of
operations |
$ |
1,615,030 |
|
|
$ |
1,637,290 |
|
|
$ |
1,668,486 |
|
|
|
(3.2 |
)% |
|
|
(1.9 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Global Warehouse
contribution (NOI) |
$ |
801,713 |
|
|
$ |
812,584 |
|
|
$ |
722,603 |
|
|
|
10.9 |
% |
|
|
12.5 |
% |
| Rent and storage contribution
(NOI)(4) |
$ |
655,145 |
|
|
$ |
665,577 |
|
|
$ |
706,248 |
|
|
|
(7.2 |
)% |
|
|
(5.8 |
)% |
| Services contribution
(NOI)(5) |
$ |
146,568 |
|
|
$ |
147,007 |
|
|
$ |
16,355 |
|
|
|
796.2 |
% |
|
|
798.9 |
% |
| Global Warehouse
margin |
|
33.2 |
% |
|
|
33.2 |
% |
|
|
30.2 |
% |
|
|
295 bps |
|
|
295 bps |
| Rent and storage
margin(6) |
|
61.8 |
% |
|
|
61.7 |
% |
|
|
64.1 |
% |
|
|
-227 bps |
|
|
-241 bps |
| Services margin(7) |
|
10.8 |
% |
|
|
10.7 |
% |
|
|
1.3 |
% |
|
|
953 bps |
|
|
945 bps |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Global Warehouse rent
and storage metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average economic occupied pallets(8) |
|
4,304 |
|
|
|
n/a |
|
|
4,546 |
|
|
|
(5.3 |
)% |
|
|
n/a |
|
Average physical occupied pallets(9) |
|
3,731 |
|
|
|
n/a |
|
|
4,120 |
|
|
|
(9.4 |
)% |
|
|
n/a |
|
Average physical pallet positions |
|
5,523 |
|
|
|
n/a |
|
|
5,442 |
|
|
|
1.5 |
% |
|
|
n/a |
| Economic occupancy
percentage(8) |
|
77.9 |
% |
|
|
n/a |
|
|
83.5 |
% |
|
|
-561 bps |
|
|
n/a |
| Physical occupancy
percentage(9) |
|
67.6 |
% |
|
|
n/a |
|
|
75.7 |
% |
|
|
-815 bps |
|
|
n/a |
| Total rent and storage
revenues per average economic occupied pallet |
$ |
246.17 |
|
|
$ |
250.67 |
|
|
$ |
242.35 |
|
|
|
1.6 |
% |
|
|
3.4 |
% |
| Total rent and storage
revenues per average physical occupied pallet |
$ |
283.97 |
|
|
$ |
289.17 |
|
|
$ |
267.41 |
|
|
|
6.2 |
% |
|
|
8.1 |
% |
| Global Warehouse
services metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Throughput pallets |
|
36,509 |
|
|
|
n/a |
|
|
37,524 |
|
|
|
(2.7 |
)% |
|
|
n/a |
|
| Total warehouse services
revenues per throughput pallet |
$ |
37.18 |
|
|
$ |
37.55 |
|
|
$ |
34.36 |
|
|
|
8.2 |
% |
|
|
9.3 |
% |
|
(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
$35.9 million and $37.5 million for the years ended
December 31, 2024 and 2023,
respectively.(3) Includes non-real estate rent
expense (equipment lease and rentals) of $12.3 million and
$14.3 million for the years 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) |
| |
| |
Years 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 |
|
|
|
|
|
|
|
|
|
| Number of same store
warehouses |
|
226 |
|
|
|
|
|
226 |
|
|
|
|
|
| Same store
revenues: |
|
|
|
|
|
|
|
|
|
|
Rent and storage |
$ |
1,019,217 |
|
|
$ |
1,038,552 |
|
|
$ |
1,059,062 |
|
|
|
(3.8 |
)% |
|
|
(1.9 |
)% |
| Warehouse services |
|
1,323,458 |
|
|
|
1,337,122 |
|
|
|
1,260,770 |
|
|
|
5.0 |
% |
|
|
6.1 |
% |
| Total same store revenues |
$ |
2,342,675 |
|
|
$ |
2,375,674 |
|
|
$ |
2,319,832 |
|
|
|
1.0 |
% |
|
|
2.4 |
% |
| Same store cost of
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Power |
|
141,729 |
|
|
|
145,467 |
|
|
|
139,901 |
|
|
|
1.3 |
% |
|
|
4.0 |
% |
| Other facilities costs |
|
242,026 |
|
|
|
247,142 |
|
|
|
232,396 |
|
|
|
4.1 |
% |
|
|
6.3 |
% |
| Labor |
|
952,667 |
|
|
|
962,015 |
|
|
|
979,032 |
|
|
|
(2.7 |
)% |
|
|
(1.7 |
)% |
| Other services costs |
|
198,707 |
|
|
|
202,428 |
|
|
|
233,809 |
|
|
|
(15.0 |
)% |
|
|
(13.4 |
)% |
| Total same store cost of
operations |
$ |
1,535,129 |
|
|
$ |
1,557,052 |
|
|
$ |
1,585,138 |
|
|
|
(3.2 |
)% |
|
|
(1.8 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Same store
contribution (NOI) |
$ |
807,546 |
|
|
$ |
818,622 |
|
|
$ |
734,694 |
|
|
|
9.9 |
% |
|
|
11.4 |
% |
| Same store rent and storage
contribution (NOI)(2) |
$ |
635,462 |
|
|
$ |
645,943 |
|
|
$ |
686,765 |
|
|
|
(7.5 |
)% |
|
|
(5.9 |
)% |
| Same store services
contribution (NOI)(3) |
$ |
172,084 |
|
|
$ |
172,679 |
|
|
$ |
47,929 |
|
|
|
259.0 |
% |
|
|
260.3 |
% |
| Same store
margin |
|
34.5 |
% |
|
|
34.5 |
% |
|
|
31.7 |
% |
|
280 bps |
|
279 bps |
| Same store rent and storage
margin(4) |
|
62.3 |
% |
|
|
62.2 |
% |
|
|
64.8 |
% |
|
-250 bps |
|
-265 bps |
| Same store services
margin(5) |
|
13.0 |
% |
|
|
12.9 |
% |
|
|
3.8 |
% |
|
920 bps |
|
911 bps |
| |
|
|
|
|
|
|
|
|
|
| Same store rent and
storage metrics: |
|
|
|
|
|
|
|
|
|
|
Average economic occupied pallets(6) |
|
4,157 |
|
|
n/a |
|
|
4,427 |
|
|
|
(6.1 |
)% |
|
n/a |
|
Average physical occupied pallets(7) |
|
3,606 |
|
|
n/a |
|
|
4,023 |
|
|
|
(10.4 |
)% |
|
n/a |
|
Average physical pallet positions |
|
5,248 |
|
|
n/a |
|
|
5,256 |
|
|
|
(0.2 |
)% |
|
n/a |
| Economic occupancy
percentage(6) |
|
79.2 |
% |
|
n/a |
|
|
84.2 |
% |
|
-502 bps |
|
n/a |
| Physical occupancy
percentage(7) |
|
68.7 |
% |
|
n/a |
|
|
76.5 |
% |
|
-783 bps |
|
n/a |
| Same store rent and storage
revenues per average economic occupied pallet |
$ |
245.18 |
|
|
$ |
249.83 |
|
|
$ |
239.23 |
|
|
|
2.5 |
% |
|
|
4.4 |
% |
| Same store rent and storage
revenues per average physical occupied pallet |
$ |
282.64 |
|
|
$ |
288.01 |
|
|
$ |
263.25 |
|
|
|
7.4 |
% |
|
|
9.4 |
% |
| Same store services
metrics: |
|
|
|
|
|
|
|
|
|
|
|
| Throughput pallets |
|
35,173 |
|
|
n/a |
|
|
36,417 |
|
|
|
(3.4 |
)% |
|
n/a |
| Same store warehouse services
revenues per throughput pallet |
$ |
37.63 |
|
|
$ |
38.02 |
|
|
$ |
34.62 |
|
|
|
8.7 |
% |
|
|
9.8 |
% |
|
(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) Calculated as same store rent and
storage revenues less same store power and other facilities
costs.(3) Calculated as same store warehouse
services revenues less same store 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 services
contribution (NOI) divided by same store services
revenues.(6) 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.(7) 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) |
| |
| |
Years Ended December 31, |
|
Change |
| Dollars and units in
thousands, except per pallet data |
2024 Actual |
|
2024 Constant Currency(1) |
|
2023 Actual |
|
|
Actual |
|
|
|
Constant Currency |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| NON-SAME STORE
WAREHOUSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Number of non-same store
warehouses(2) |
|
9 |
|
|
|
|
|
12 |
|
|
|
|
|
|
|
|
|
|
Non-same store revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rent and storage |
$ |
40,291 |
|
|
$ |
40,348 |
|
|
$ |
42,679 |
|
|
|
n/r |
|
|
|
n/r |
|
| Warehouse services |
|
33,777 |
|
|
|
33,852 |
|
|
|
28,578 |
|
|
|
n/r |
|
|
|
n/r |
|
| Total non-same store
revenues |
$ |
74,068 |
|
|
$ |
74,200 |
|
|
$ |
71,257 |
|
|
|
n/r |
|
|
|
n/r |
|
| Non-same store cost of
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Power |
|
5,724 |
|
|
|
5,729 |
|
|
|
7,849 |
|
|
|
n/r |
|
|
|
n/r |
|
| Other facilities costs |
|
14,884 |
|
|
|
14,985 |
|
|
|
15,347 |
|
|
|
n/r |
|
|
|
n/r |
|
| Labor |
|
45,876 |
|
|
|
45,957 |
|
|
|
44,774 |
|
|
|
n/r |
|
|
|
n/r |
|
| Other services costs |
|
13,417 |
|
|
|
13,567 |
|
|
|
15,378 |
|
|
|
n/r |
|
|
|
n/r |
|
| Total non-same store cost of
operations |
$ |
79,901 |
|
|
$ |
80,238 |
|
|
$ |
83,348 |
|
|
|
n/r |
|
|
|
n/r |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-same store
contribution (NOI) |
$ |
(5,833 |
) |
|
$ |
(6,038 |
) |
|
$ |
(12,091 |
) |
|
|
n/r |
|
|
|
n/r |
|
| Non-same store rent and
storage contribution (NOI)(2) |
$ |
19,683 |
|
|
$ |
19,634 |
|
|
$ |
19,483 |
|
|
|
n/r |
|
|
|
n/r |
|
| Non-same store services
contribution (NOI)(3) |
$ |
(25,516 |
) |
|
$ |
(25,672 |
) |
|
$ |
(31,574 |
) |
|
|
n/r |
|
|
|
n/r |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-same store rent
and storage metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average economic occupied pallets(5) |
|
147 |
|
|
|
n/a |
|
|
|
119 |
|
|
|
n/r |
|
|
|
n/a |
|
|
Average physical occupied pallets(6) |
|
125 |
|
|
|
n/a |
|
|
|
97 |
|
|
|
n/r |
|
|
|
n/a |
|
|
Average physical pallet positions |
|
275 |
|
|
|
n/a |
|
|
|
186 |
|
|
|
n/r |
|
|
|
n/a |
|
| Economic occupancy
percentage(5) |
|
53.5 |
% |
|
|
n/a |
|
|
|
64.0 |
% |
|
|
n/r |
|
|
|
n/a |
|
| Physical occupancy
percentage(6) |
|
45.5 |
% |
|
|
n/a |
|
|
|
52.2 |
% |
|
|
n/r |
|
|
|
n/a |
|
| Non-same store rent and
storage revenues per average economic occupied pallet |
$ |
274.09 |
|
|
$ |
274.48 |
|
|
$ |
358.65 |
|
|
|
n/r |
|
|
|
n/r |
|
| Non-same store rent and
storage revenues per average physical occupied pallet |
$ |
322.33 |
|
|
$ |
322.78 |
|
|
$ |
439.99 |
|
|
|
n/r |
|
|
|
n/r |
|
| Non-same store
services metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Throughput pallets |
|
1,336 |
|
|
n/a |
|
|
|
|
1,107 |
|
|
|
n/r |
|
|
|
n/a |
|
| Non-same store warehouse
services revenues per throughput pallet |
$ |
25.28 |
|
|
$ |
25.34 |
|
|
$ |
25.82 |
|
|
|
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) The non-same store facility count
consists of: 5 sites in the recently completed expansion and
development phase (further detailed in the External Development and
Capital Deployment section of our quarterly supplement), 2
facilities that we purchased in 2023, 2 facilities whose operations
have ceased and the Company is evaluating alternative use
including, third party lease or sale. As of December 31, 2024,
there are 6 sites in the development and expansion phase that will
be added to the non - same store pool when operations
commence.(3) Calculated as non-same store rent and
storage revenues less non-same store power and other facilities
costs.(4) Calculated as non-same store warehouse
services revenues less non-same store labor and other services
costs.(5) 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.(6) 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)(n/r = not relevant) |
|
|
Warehouse Results
For the fourth quarter of 2024, Global Warehouse
segment revenues were $606.5 million, a decrease of $5.8 million,
or 0.9% (0.1% increase on a constant currency basis), compared to
$612.3 million for the fourth quarter of 2023. This decrease was
principally driven by lower occupancy and throughput pallets,
partially offset by annual rate increases in the normal course of
operations.
Global Warehouse segment contribution (NOI) was
$201.4 million for the fourth quarter of 2024 as compared to $197.1
million for the fourth quarter of 2023, an increase of $4.3 million
or 2.2% (3.2% on a constant currency basis). Global Warehouse
segment contribution (NOI) increased primarily due 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 driven by an increased focus on workforce
performance, operational efficiency, and retention. Global
Warehouse segment margin was 33.2% for the fourth quarter of 2024,
a 102 basis point increase as to compared to the fourth quarter of
2023, driven by the factors noted above.
Fixed Commitment Rent and Storage
Revenues
As of December 31, 2024, $625.3 million of the
Company’s annualized rent and storage revenues were derived from
customers with fixed commitment storage contracts. This compares to
$623.8 million at the end of the third quarter of 2024 and $576.8
million at the end of the fourth quarter of 2023. We continue to
make progress on commercializing business under this type of
arrangement. On a combined basis, 59.0% of rent and storage
revenues were generated from fixed commitment storage contracts. On
a combined basis, 61.9% of total warehouse segment revenues were
generated from customers with fixed committed contracts or
leases.
Economic and Physical
Occupancy
Fixed commitments storage contracts are designed
to ensure the Company’s customers have space available when needed.
For the fourth quarter of 2024, economic occupancy for the total
warehouse segment was 77.4% and the warehouse segment same store
pool was 78.6%, representing a 1,049 and 1,059 basis point increase
above physical occupancy, respectively. Economic occupancy for the
total warehouse segment decreased 524 basis points, and the
warehouse segment same store pool decreased 536 basis points as
compared to the fourth quarter of 2023.
Real Estate Portfolio
As of December 31, 2024, the Company’s portfolio
consists of 239 facilities. The Company ended the fourth quarter of
2024 with 235 facilities in its Global Warehouse segment portfolio
and 4 facilities in its Third-party managed segment. The same store
population consists of 226 facilities for the quarter ended
December 31, 2024. The non-same store facility count consists of: 5
sites in the recently completed expansion and development phase
(further detailed in the External Development and Capital
Deployment section of our quarterly supplement), 2 facilities that
we purchased in 2023, 2 facilities whose operations have ceased and
the Company is evaluating alternative use including, third party
lease or sale. As of December 31, 2024, there are 6 sites in the
development and expansion phase that will be added to the non -
same store pool when operations commence.
Balance Sheet Activity and
Liquidity
As of December 31, 2024, the Company had total
liquidity of approximately $921.8 million, including cash and
capacity on its revolving credit facility. Total net debt
outstanding was approximately $3.4 billion (inclusive of
approximately $174.8 million of financing leases/sale lease-backs
and exclusive of unamortized deferred financing fees), of which
95.0% was in an unsecured structure. At quarter end, net debt to
Core EBITDA (based on trailing twelve months Core EBITDA) was
approximately 5.4x. The Company’s unsecured debt has a remaining
weighted average term of 5.1 years, inclusive of extensions that
the Company is expected to utilize, and carries a weighted average
contractual interest rate of 3.9%. As of December 31, 2024,
approximately 92.7% 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 17, 2024, the Company’s Board of
Directors declared a dividend of $0.22 per share for the fourth
quarter of 2024, which was paid on January 15, 2025 to common
stockholders of record as of December 31, 2024.
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 239 temperature-controlled warehouses, with
approximately 1.4 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 Measures
This press release contains non-GAAP financial
measures, including NAREIT FFO, Core FFO, Adjusted FFO, NAREIT
EBITDAre, Core EBITDA, Core EBITDA margin, same store segment
revenues, contribution (NOI) and 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 US 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; 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 for
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 on
attractive terms, or at all; 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, including our ongoing at the market
program; 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, although not all forward-looking
statements may contain such words. Examples of forward-looking
statements included in this press release include those regarding
our 2025 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, 2024, 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 except to the extent required by law.
|
|
|
Americold Realty Trust, Inc. and Subsidiaries |
|
Condensed Consolidated Balance Sheets (Unaudited) |
|
(In thousands, except shares and per share amounts) |
| |
December 31, 2024 |
|
December 31, 2023 |
| Assets |
|
|
|
|
Property, buildings, and equipment: |
|
|
|
|
Land |
$ |
806,981 |
|
|
$ |
820,831 |
|
|
Buildings and improvements |
|
4,462,565 |
|
|
|
4,464,359 |
|
|
Machinery and equipment |
|
1,598,502 |
|
|
|
1,565,431 |
|
|
Assets under construction |
|
606,233 |
|
|
|
452,312 |
|
|
|
|
7,474,281 |
|
|
|
7,302,933 |
|
|
Accumulated depreciation |
|
(2,453,597 |
) |
|
|
(2,196,196 |
) |
|
Property, buildings, and equipment – net |
|
5,020,684 |
|
|
|
5,106,737 |
|
| |
|
|
|
|
Operating leases - net |
|
222,294 |
|
|
|
247,302 |
|
|
Financing leases - net |
|
104,216 |
|
|
|
105,164 |
|
| |
|
|
|
|
Cash, cash equivalents, and restricted cash |
|
47,652 |
|
|
|
60,392 |
|
|
Accounts receivable – net of allowance of $24,426 and $21,647 at
December 31, 2024 and December 31, 2023, respectively |
|
386,924 |
|
|
|
426,048 |
|
|
Identifiable intangible assets – net |
|
838,660 |
|
|
|
897,414 |
|
|
Goodwill |
|
784,042 |
|
|
|
794,004 |
|
|
Investments in and advances to partially owned entities |
|
40,252 |
|
|
|
38,113 |
|
|
Other assets |
|
291,230 |
|
|
|
194,078 |
|
|
Total assets |
$ |
7,735,954 |
|
|
$ |
7,869,252 |
|
| |
|
|
|
| Liabilities and Equity |
|
|
|
| Liabilities |
|
|
|
|
Borrowings under revolving line of credit |
$ |
255,052 |
|
|
$ |
392,156 |
|
|
Accounts payable and accrued expenses |
|
603,411 |
|
|
|
568,764 |
|
|
Senior unsecured notes and term loans – net of deferred financing
costs of $13,882 and $10,578 at December 31, 2024 and December 31,
2023, respectively |
|
3,031,462 |
|
|
|
2,601,122 |
|
|
Sale-leaseback financing obligations |
|
79,001 |
|
|
|
161,937 |
|
|
Financing lease obligations |
|
95,784 |
|
|
|
97,177 |
|
|
Operating lease obligations |
|
219,099 |
|
|
|
240,251 |
|
|
Unearned revenues |
|
21,979 |
|
|
|
28,379 |
|
|
Deferred tax liability - net |
|
115,772 |
|
|
|
135,797 |
|
|
Other liabilities |
|
7,389 |
|
|
|
9,082 |
|
|
Total liabilities |
|
4,428,949 |
|
|
|
4,234,665 |
|
| |
|
|
|
| Equity |
|
|
|
|
Stockholders' equity: |
|
|
|
|
Common stock, $0.01 par value per share – 500,000,000
authorized shares; 284,265,041 and 283,699,120 shares issued and
outstanding at December 31, 2024 and December 31, 2023,
respectively |
|
2,842 |
|
|
|
2,837 |
|
|
Paid-in capital |
|
5,646,879 |
|
|
|
5,625,907 |
|
|
Accumulated deficit and distributions in excess of net
earnings |
|
(2,341,654 |
) |
|
|
(1,995,975 |
) |
|
Accumulated other comprehensive loss |
|
(27,279 |
) |
|
|
(16,640 |
) |
|
Total stockholders’ equity |
|
3,280,788 |
|
|
|
3,616,129 |
|
|
Noncontrolling interests: |
|
|
|
|
Noncontrolling interests |
|
26,217 |
|
|
|
18,458 |
|
|
Total equity |
|
3,307,005 |
|
|
|
3,634,587 |
|
|
Total liabilities and equity |
$ |
7,735,954 |
|
|
$ |
7,869,252 |
|
|
|
|
Americold Realty Trust, Inc. and Subsidiaries |
|
Condensed Consolidated Statements of Operations (Unaudited) |
|
(In thousands, except per share amounts) |
| |
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Revenues: |
|
|
|
|
|
|
|
|
Rent, storage, and warehouse services |
$ |
606,465 |
|
|
$ |
612,262 |
|
|
$ |
2,416,743 |
|
|
$ |
2,391,089 |
|
|
Transportation services |
|
49,875 |
|
|
|
57,878 |
|
|
|
209,129 |
|
|
|
239,670 |
|
|
Third-party managed services |
|
10,095 |
|
|
|
9,151 |
|
|
|
40,669 |
|
|
|
42,570 |
|
|
Total revenues |
|
666,435 |
|
|
|
679,291 |
|
|
|
2,666,541 |
|
|
|
2,673,329 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
Rent, storage, and warehouse services cost of operations |
|
405,038 |
|
|
|
415,160 |
|
|
|
1,615,030 |
|
|
|
1,668,486 |
|
|
Transportation services cost of operations |
|
42,165 |
|
|
|
46,966 |
|
|
|
172,606 |
|
|
|
197,630 |
|
|
Third-party managed services cost of operations |
|
8,042 |
|
|
|
7,330 |
|
|
|
32,178 |
|
|
|
36,641 |
|
|
Depreciation and amortization |
|
89,711 |
|
|
|
94,099 |
|
|
|
360,817 |
|
|
|
353,743 |
|
|
Selling, general, and administrative |
|
66,576 |
|
|
|
57,763 |
|
|
|
255,118 |
|
|
|
226,786 |
|
|
Acquisition, cyber incident, and other, net |
|
33,144 |
|
|
|
15,774 |
|
|
|
77,169 |
|
|
|
64,087 |
|
|
Impairment of indefinite and long-lived assets |
|
30,173 |
|
|
|
236,515 |
|
|
|
33,126 |
|
|
|
236,515 |
|
|
Net Loss (gain) from sale of real estate |
|
— |
|
|
|
5 |
|
|
|
(3,514 |
) |
|
|
(2,254 |
) |
|
Total operating expenses |
|
674,849 |
|
|
|
873,612 |
|
|
|
2,542,530 |
|
|
|
2,781,634 |
|
| |
|
|
|
|
|
|
|
| Operating (loss) income |
|
(8,414 |
) |
|
|
(194,321 |
) |
|
|
124,011 |
|
|
|
(108,305 |
) |
| |
|
|
|
|
|
|
|
| Other income (expense): |
|
|
|
|
|
|
|
|
Interest expense |
|
(34,458 |
) |
|
|
(33,681 |
) |
|
|
(135,323 |
) |
|
|
(140,107 |
) |
|
Loss on debt extinguishment and termination of derivative
instruments |
|
— |
|
|
|
(627 |
) |
|
|
(116,082 |
) |
|
|
(2,482 |
) |
|
(Loss) gain from investments in partially owned entities |
|
(682 |
) |
|
|
174 |
|
|
|
(3,702 |
) |
|
|
(1,442 |
) |
|
Impairment of related party loan receivable |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(21,972 |
) |
|
Loss on put option |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(56,576 |
) |
|
Other, net |
|
47 |
|
|
|
1,054 |
|
|
|
27,919 |
|
|
|
2,795 |
|
| Loss from continuing
operations before income taxes |
|
(43,507 |
) |
|
|
(227,401 |
) |
|
|
(103,177 |
) |
|
|
(328,089 |
) |
| |
|
|
|
|
|
|
|
| Income tax benefit
(expense): |
|
|
|
|
|
|
|
|
Current income tax |
|
386 |
|
|
|
(2,627 |
) |
|
|
(4,782 |
) |
|
|
(8,508 |
) |
|
Deferred income tax |
|
6,712 |
|
|
|
3,228 |
|
|
|
13,210 |
|
|
|
10,781 |
|
| Total income tax benefit |
|
7,098 |
|
|
|
601 |
|
|
|
8,428 |
|
|
|
2,273 |
|
| |
|
|
|
|
|
|
|
| Net loss: |
|
|
|
|
|
|
|
| Net loss from continuing
operations |
|
(36,409 |
) |
|
|
(226,800 |
) |
|
|
(94,749 |
) |
|
|
(325,816 |
) |
|
Loss from discontinued operations, net of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(10,453 |
) |
| Net loss |
$ |
(36,409 |
) |
|
$ |
(226,800 |
) |
|
$ |
(94,749 |
) |
|
$ |
(336,269 |
) |
|
Net (loss) gain attributable to noncontrolling interests |
|
(194 |
) |
|
|
41 |
|
|
|
(436 |
) |
|
|
(54 |
) |
| Net loss attributable to
Americold Realty Trust, Inc. |
$ |
(36,215 |
) |
|
$ |
(226,841 |
) |
|
$ |
(94,313 |
) |
|
$ |
(336,215 |
) |
| |
|
|
|
|
|
|
|
| Weighted average common stock
outstanding – basic |
|
284,938 |
|
|
|
284,263 |
|
|
|
284,782 |
|
|
|
275,773 |
|
| Weighted average common stock
outstanding – diluted |
|
284,938 |
|
|
|
284,263 |
|
|
|
284,782 |
|
|
|
275,773 |
|
| |
|
|
|
|
|
|
|
| Net loss per common share from
continuing operations - basic |
$ |
(0.13 |
) |
|
$ |
(0.80 |
) |
|
$ |
(0.33 |
) |
|
$ |
(1.18 |
) |
| Net loss per common share from
discontinued operations - basic |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.04 |
) |
| Basic loss per share |
$ |
(0.13 |
) |
|
$ |
(0.80 |
) |
|
$ |
(0.33 |
) |
|
$ |
(1.22 |
) |
| |
|
|
|
|
|
|
|
| Net loss per common share from
continuing operations - diluted |
$ |
(0.13 |
) |
|
$ |
(0.80 |
) |
|
$ |
(0.33 |
) |
|
$ |
(1.18 |
) |
| Net loss per common share from
discontinued operations - diluted |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.04 |
) |
| Diluted loss per share |
$ |
(0.13 |
) |
|
$ |
(0.80 |
) |
|
$ |
(0.33 |
) |
|
$ |
(1.22 |
) |
|
|
|
Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and
Adjusted FFO |
|
(In thousands, except per share amounts) |
| |
Three Months Ended |
|
Years Ended |
| |
Q4 24 |
|
Q4 23 |
|
|
2024 |
|
|
|
2023 |
|
|
Net loss |
$ |
(36,409 |
) |
|
$ |
(226,800 |
) |
|
$ |
(94,749 |
) |
|
$ |
(336,269 |
) |
| Adjustments: |
|
|
|
|
|
|
Real estate related depreciation |
|
56,620 |
|
|
|
57,183 |
|
|
|
225,388 |
|
|
|
222,837 |
|
|
Loss (gain) from sale of real estate |
|
— |
|
|
|
5 |
|
|
|
(3,514 |
) |
|
|
(2,254 |
) |
|
Net loss on real estate related asset disposals |
|
264 |
|
|
|
260 |
|
|
|
330 |
|
|
|
235 |
|
|
Impairment charges on certain real estate assets |
|
18,032 |
|
|
|
— |
|
|
|
20,985 |
|
|
|
— |
|
|
Our share of reconciling items related to partially owned
entities |
|
314 |
|
|
|
280 |
|
|
|
1,144 |
|
|
|
1,705 |
|
| NAREIT FFO |
$ |
38,821 |
|
|
$ |
(169,072 |
) |
|
$ |
149,584 |
|
|
$ |
(113,746 |
) |
| Adjustments: |
|
|
|
|
|
|
Net loss (gain) on sale of non-real assets |
|
775 |
|
|
|
3,312 |
|
|
|
(236 |
) |
|
|
3,725 |
|
|
Acquisition, cyber incident, and other, net |
|
33,144 |
|
|
|
15,774 |
|
|
|
77,169 |
|
|
|
64,087 |
|
|
Impairment of indefinite and long-lived assets (excluding certain
real estate assets) |
|
12,141 |
|
|
|
236,515 |
|
|
|
12,141 |
|
|
|
236,515 |
|
|
Loss on debt extinguishment and termination of derivative
instruments |
|
— |
|
|
|
627 |
|
|
|
116,082 |
|
|
|
2,482 |
|
|
Foreign currency exchange loss (gain) |
|
1,766 |
|
|
|
(28 |
) |
|
|
(8,833 |
) |
|
|
431 |
|
|
Gain on legal settlement related to prior period operations |
|
— |
|
|
|
(2,180 |
) |
|
|
(6,104 |
) |
|
|
(2,180 |
) |
|
Project Orion deferred costs amortization |
|
1,791 |
|
|
|
— |
|
|
|
4,182 |
|
|
|
— |
|
|
Our share of reconciling items related to partially owned
entities |
|
116 |
|
|
|
(184 |
) |
|
|
805 |
|
|
|
64 |
|
|
Loss from discontinued operations, net of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,072 |
|
|
Impairment of related party receivable |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21,972 |
|
|
Loss on put option |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
56,576 |
|
|
Gain on sale of LATAM JV |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(304 |
) |
| Core FFO |
$ |
88,554 |
|
|
$ |
84,764 |
|
|
$ |
344,790 |
|
|
$ |
277,694 |
|
| Adjustments: |
|
|
|
|
|
|
Amortization of deferred financing costs and pension withdrawal
liability |
|
1,445 |
|
|
|
1,290 |
|
|
|
5,329 |
|
|
|
5,095 |
|
|
Amortization of below/above market leases |
|
354 |
|
|
|
360 |
|
|
|
1,445 |
|
|
|
1,506 |
|
|
Straight-line rent adjustment |
|
335 |
|
|
|
597 |
|
|
|
1,612 |
|
|
|
1,011 |
|
|
Deferred income tax benefit |
|
(6,712 |
) |
|
|
(3,228 |
) |
|
|
(13,210 |
) |
|
|
(10,781 |
) |
|
Stock-based compensation expense(1) |
|
6,335 |
|
|
|
5,780 |
|
|
|
25,274 |
|
|
|
23,592 |
|
|
Non-real estate depreciation and amortization |
|
33,091 |
|
|
|
36,916 |
|
|
|
135,429 |
|
|
|
130,906 |
|
|
Maintenance capital expenditures(2) |
|
(17,596 |
) |
|
|
(18,670 |
) |
|
|
(80,951 |
) |
|
|
(78,411 |
) |
|
Our share of reconciling items related to partially owned
entities |
|
136 |
|
|
|
208 |
|
|
|
671 |
|
|
|
1,013 |
|
| Adjusted FFO |
$ |
105,942 |
|
|
$ |
108,017 |
|
|
$ |
420,389 |
|
|
$ |
351,625 |
|
|
(1) Stock-based compensation expense excludes the
stock compensation expense associated with employee awards granted
in conjunction with Project Orion, which are recognized within
Acquisition, cyber incident, and other,
net.(2) 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 NAREIT FFO, Core FFO, and
Adjusted FFO (continued) |
|
(In thousands, except per share amounts) |
| |
Three Months Ended |
|
Years Ended |
| |
Q4 24 |
|
Q4 23 |
|
|
2024 |
|
|
|
2023 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
NAREIT FFO |
$ |
38,821 |
|
|
$ |
(169,072 |
) |
|
$ |
149,584 |
|
|
$ |
(113,746 |
) |
| Core FFO |
$ |
88,554 |
|
|
$ |
84,764 |
|
|
$ |
344,790 |
|
|
$ |
277,694 |
|
| Adjusted FFO |
$ |
105,942 |
|
|
$ |
108,017 |
|
|
$ |
420,389 |
|
|
$ |
351,625 |
|
| |
|
|
|
|
|
|
|
|
| Reconciliation of
weighted average shares: |
|
|
|
|
|
|
|
|
| Weighted average basic shares
for net income calculation |
|
284,938 |
|
|
|
284,263 |
|
|
|
284,782 |
|
|
|
275,773 |
|
| Dilutive stock options and
unvested restricted stock units |
|
434 |
|
|
|
502 |
|
|
|
403 |
|
|
|
624 |
|
| Weighted average dilutive
shares |
|
285,372 |
|
|
|
284,765 |
|
|
|
285,185 |
|
|
|
276,397 |
|
| |
|
|
|
|
|
|
|
|
| NAREIT FFO - basic per
share |
$ |
0.14 |
|
|
$ |
(0.59 |
) |
|
$ |
0.53 |
|
|
$ |
(0.41 |
) |
| NAREIT FFO - diluted per
share |
$ |
0.14 |
|
|
$ |
(0.59 |
) |
|
$ |
0.52 |
|
|
$ |
(0.41 |
) |
| |
|
|
|
|
|
|
|
|
| Core FFO - basic per
share |
$ |
0.31 |
|
|
$ |
0.30 |
|
|
$ |
1.21 |
|
|
$ |
1.01 |
|
| Core FFO - diluted per
share |
$ |
0.31 |
|
|
$ |
0.30 |
|
|
$ |
1.21 |
|
|
$ |
1.00 |
|
| |
|
|
|
|
|
|
|
|
| Adjusted FFO - basic per
share |
$ |
0.37 |
|
|
$ |
0.38 |
|
|
$ |
1.48 |
|
|
$ |
1.28 |
|
| Adjusted FFO - diluted per
share |
$ |
0.37 |
|
|
$ |
0.38 |
|
|
$ |
1.47 |
|
|
$ |
1.27 |
|
|
Reconciliation of Net (Loss) Income to NAREIT EBITDAre and Core
EBITDA |
|
(In thousands) |
| |
Three Months Ended |
|
Years Ended |
| |
Q4 24 |
|
Q4 23 |
|
|
2024 |
|
|
|
2023 |
|
|
Net loss |
$ |
(36,409 |
) |
|
$ |
(226,800 |
) |
|
$ |
(94,749 |
) |
|
$ |
(336,269 |
) |
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
89,711 |
|
|
|
94,099 |
|
|
|
360,817 |
|
|
|
353,743 |
|
|
Interest expense |
|
34,458 |
|
|
|
33,681 |
|
|
|
135,323 |
|
|
|
140,107 |
|
|
Income tax benefit |
|
(7,098 |
) |
|
|
(601 |
) |
|
|
(8,428 |
) |
|
|
(2,273 |
) |
|
Loss (gain) from sale of real estate |
|
— |
|
|
|
5 |
|
|
|
(3,514 |
) |
|
|
(2,254 |
) |
|
Adjustment to reflect share of EBITDAre of partially owned
entities |
|
1,461 |
|
|
|
1,533 |
|
|
|
5,909 |
|
|
|
8,996 |
|
| NAREIT EBITDAre |
$ |
82,123 |
|
|
$ |
(98,083 |
) |
|
$ |
395,358 |
|
|
$ |
162,050 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition, cyber incident, and other, net |
|
33,144 |
|
|
|
15,774 |
|
|
|
77,169 |
|
|
|
64,087 |
|
|
Loss (gain) from investments in partially owned entities |
|
682 |
|
|
|
(174 |
) |
|
|
3,702 |
|
|
|
3,823 |
|
|
Impairment of indefinite and long-lived assets |
|
30,173 |
|
|
|
236,515 |
|
|
|
33,126 |
|
|
|
236,515 |
|
|
Foreign currency exchange loss (gain) |
|
1,766 |
|
|
|
(28 |
) |
|
|
(8,833 |
) |
|
|
431 |
|
|
Stock-based compensation expense(1) |
|
6,335 |
|
|
|
5,780 |
|
|
|
25,274 |
|
|
|
23,592 |
|
|
Loss on debt extinguishment and termination of derivative
instruments |
|
— |
|
|
|
627 |
|
|
|
116,082 |
|
|
|
2,482 |
|
|
Loss on other asset disposals |
|
1,039 |
|
|
|
3,572 |
|
|
|
94 |
|
|
|
3,960 |
|
|
Gain on legal settlement related to prior period operations |
|
— |
|
|
|
(2,180 |
) |
|
|
(6,104 |
) |
|
|
(2,180 |
) |
|
Project Orion deferred costs amortization |
|
1,791 |
|
|
|
— |
|
|
|
4,182 |
|
|
|
— |
|
|
Reduction in EBITDAre from partially owned entities |
|
(1,461 |
) |
|
|
(1,533 |
) |
|
|
(5,909 |
) |
|
|
(8,996 |
) |
|
Gain on sale of LATAM JV |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(304 |
) |
|
Loss from discontinued operations, net of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,072 |
|
|
Impairment of related party receivable |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21,972 |
|
|
Loss on put option |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
56,576 |
|
| Core EBITDA |
$ |
155,592 |
|
|
$ |
160,270 |
|
|
$ |
634,141 |
|
|
$ |
572,080 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
$ |
666,435 |
|
|
$ |
679,291 |
|
|
$ |
2,666,541 |
|
|
$ |
2,673,329 |
|
| Core EBITDA margin |
|
23.3 |
% |
|
|
23.6 |
% |
|
|
23.8 |
% |
|
|
21.4 |
% |
|
(1) Stock-based compensation expense
excludes the stock compensation expense associated with employee
awards granted in conjunction with Project Orion, which are
recognized within Acquisition, cyber incident, and other, net. |
|
|
|
Revenues and Contribution (NOI) by Segment |
|
(in thousands) |
| |
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Segment revenues: |
|
|
|
|
|
|
|
|
Warehouse |
$ |
606,465 |
|
|
$ |
612,262 |
|
|
$ |
2,416,743 |
|
|
$ |
2,391,089 |
|
|
Transportation |
|
49,875 |
|
|
|
57,878 |
|
|
|
209,129 |
|
|
|
239,670 |
|
|
Third-party managed |
|
10,095 |
|
|
|
9,151 |
|
|
|
40,669 |
|
|
|
42,570 |
|
|
Total revenues |
|
666,435 |
|
|
|
679,291 |
|
|
|
2,666,541 |
|
|
|
2,673,329 |
|
| |
|
|
|
|
|
|
|
| Segment contribution: |
|
|
|
|
|
|
|
|
Warehouse |
|
201,427 |
|
|
|
197,102 |
|
|
|
801,713 |
|
|
|
722,603 |
|
|
Transportation |
|
7,710 |
|
|
|
10,912 |
|
|
|
36,523 |
|
|
|
42,040 |
|
|
Third-party managed |
|
2,053 |
|
|
|
1,821 |
|
|
|
8,491 |
|
|
|
5,929 |
|
|
Total segment contribution (NOI) |
|
211,190 |
|
|
|
209,835 |
|
|
|
846,727 |
|
|
|
770,572 |
|
| |
|
|
|
|
|
|
|
| Reconciling items: |
|
|
|
|
|
|
|
|
Depreciation and amortization expense |
|
(89,711 |
) |
|
|
(94,099 |
) |
|
|
(360,817 |
) |
|
|
(353,743 |
) |
|
Selling, general, and administrative expense |
|
(66,576 |
) |
|
|
(57,763 |
) |
|
|
(255,118 |
) |
|
|
(226,786 |
) |
|
Acquisition, cyber incident, and other, net expense |
|
(33,144 |
) |
|
|
(15,774 |
) |
|
|
(77,169 |
) |
|
|
(64,087 |
) |
|
Impairment of indefinite and long-lived assets |
|
(30,173 |
) |
|
|
(236,515 |
) |
|
|
(33,126 |
) |
|
|
(236,515 |
) |
|
(Loss) gain from sale of real estate |
|
— |
|
|
|
(5 |
) |
|
|
3,514 |
|
|
|
2,254 |
|
|
Interest expense |
|
(34,458 |
) |
|
|
(33,681 |
) |
|
|
(135,323 |
) |
|
|
(140,107 |
) |
|
Loss on debt extinguishment and termination of derivative
instruments |
|
— |
|
|
|
(627 |
) |
|
|
(116,082 |
) |
|
|
(2,482 |
) |
|
(Loss) gain from investments in partially owned entities |
|
(682 |
) |
|
|
174 |
|
|
|
(3,702 |
) |
|
|
(1,442 |
) |
|
Impairment of related party loan receivable |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(21,972 |
) |
|
Loss on put option |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(56,576 |
) |
|
Other, net |
|
47 |
|
|
|
1,054 |
|
|
|
27,919 |
|
|
|
2,795 |
|
|
Loss from continuing operations before income
taxes |
$ |
(43,507 |
) |
|
$ |
(227,401 |
) |
|
$ |
(103,177 |
) |
|
$ |
(328,089 |
) |
|
|
We view and manage our business through three
primary business segments—warehouse, transportation, and
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, NAREIT EBITDAre, Core EBITDA, Core EBITDA margin, net
debt to pro-forma Core EBITDA, segment contribution (“NOI”) and
margin, same store revenues and NOI, and maintenance capital
expenditures. |
|
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 charges 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 real estate
related depreciation, amortization and gains or losses from sales
of real estate or real estate related assets, 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 Net loss (gain) on sale of non-real
assets; Acquisition, cyber incident, and other, net; Impairment of
indefinite and long-lived assets (excluding certain real estate
assets); Loss on debt extinguishment and termination of derivative
instruments; Foreign currency exchange loss (gain); Gain on legal
settlement related to prior period operations; Project Orion
deferred costs amortization; Our share of reconciling items related
to partially owned entities; Loss from discontinued operations, net
of tax; Impairment of related party receivable; Loss on put option;
and Gain on sale of LATAM JV. 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 measures 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 below/above market leases;
Straight-line rent adjustment; Deferred income tax benefit;
Stock-based compensation expense; Non-real estate depreciation and
amortization; Maintenance capital expenditures; and Our share of
reconciling items related to 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 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. We
reconcile FFO, Core FFO and Adjusted FFO to Net loss, 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, Net loss before Depreciation and amortization; Interest
expense; Income tax benefit; Loss (gain) from sale of real estate;
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 incident, and other, net; Loss (gain) from
investments in partially owned entities; Impairment of indefinite
and long-lived assets; Foreign currency exchange loss (gain);
Stock-based compensation expense; Loss on debt extinguishment and
termination of derivative instruments; Loss on other asset
disposals; Gain on legal settlement related to prior period
operations; Project Orion deferred costs amortization; Reduction in
EBITDAre from partially owned entities; Gain on sale of LATAM JV;
Loss from discontinued operations, net of tax; Impairment of
related party receivable; and Loss on put option. 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. We calculate Core EBITDA margin as Core EBITDA divided
by revenues. 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: |
- 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.
|
|
Net debt to proforma Core EBITDA is calculated using total debt
outstanding less cash, cash equivalents, and restricted cash
divided by pro-forma and/or Core EBITDA. If applicable, we
calculate pro-forma Core EBITDA as Core EBITDA further adjusted for
acquisitions. The pro-forma adjustment for acquisitions reflects
the Core EBITDA for the period of time prior to acquisition. |
|
NOI is calculated as earnings/loss 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; Net
Loss (gain) from 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. |
|
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, expansion, or
significant modification (e.g., 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, 2023) 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 are being exited (e.g.
non-renewal of warehouse lease or held for sale to third parties),
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) no longer results 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 began 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 revenues” 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. |
|
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 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. |
|
All quarterly amounts and non-GAAP disclosures within this filing
shall be deemed unaudited. |
Contacts:
Americold Realty Trust, Inc.
Investor Relations
Telephone: 678-459-1959
Email: investor.relations@americold.com
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