COLD

Business Context and Reporting Period

Company: Americold Realty Trust, Inc. (NYSE: COLD)
Filing Type: Form 10-Q (Quarterly Report)
Reporting Period: Three months ended March 31, 2026
Business Overview: Americold is a global leader in temperature-controlled logistics and real estate, operating 224 warehouses globally (1.4 billion cubic feet) across North America, Europe, Asia-Pacific, and South America. The Company operates two primary segments: Warehouse and Transportation. During the quarter, the Company revised its segment structure to combine the former Third-party managed segment into the Warehouse segment.

Key Financial Metrics

Segment Performance (Constant Currency):
- Warehouse Segment: Revenues decreased 3.0% to $567.5 million; Contribution NOI decreased 7.3% to $184.1 million.
- Transportation Segment: Revenues increased 13.2% to $49.8 million; Contribution NOI increased 17.5% to $8.5 million.

Material Changes vs. Prior Period

• Revenue: Total revenue remained relatively flat (+0.1%) year-over-year, driven by a 18.1% increase in Transportation services revenue offset by a 1.2% decrease in Warehouse revenue.
• Operating Expenses: Operating expenses increased to $615.6 million from $606.8 million. Notably, "Transactions, strategic initiatives and other costs, net" decreased 19.6% to $20.4 million, primarily due to lower Project Orion transformation costs and reduced lease termination fees.
• Interest Expense: Increased 15.0% to $41.5 million due to higher outstanding debt levels, partially offset by the repayment of Private Series A Notes.
• Debt Structure: The Company repaid $200 million in Private Series A Notes in January 2026. Revolving credit facility borrowings increased to $606.2 million from $332.1 million at year-end 2025.
• Acquisitions: Completed the acquisition of a warehouse in Massillon, Ohio, for $18.7 million in March 2026.

Guidance, Outlook, and Risks

Management Commentary: Management emphasizes disciplined execution and capital efficiency. While facing headwinds from increased speculative development and inflationary pressures, the Company remains focused on cost control and operational excellence. The Transportation segment showed strong growth driven by volume expansion in North America and Europe.

Subsequent Event: On May 7, 2026, the Company announced a joint venture agreement with EQT Partners to create a North American cold storage platform. Americold will contribute 12 facilities and hold a 30% equity interest, with proceeds intended to pay down indebtedness.

Key Risks:

• Market Conditions: Increased speculative capacity in key markets intensifying competition and pricing pressure.
• Macroeconomic Factors: Inflationary pressures, rising interest rates, and geopolitical conflicts impacting energy costs and consumer spending.
• Operational Risks: Labor shortages, supply chain disruptions, and cybersecurity threats.
• Joint Venture Execution: Risks related to the consummation and integration of the new EQT joint venture.

Investor Verification Checklist

• Debt Maturities: Verify the repayment schedule for the $1.23 billion of debt maturing within 12 months (including the Revolving Credit Facility and Term Loans) and the status of extension options.
• Occupancy Trends: Monitor the decline in Same Store economic occupancy (down 70 bps) and physical occupancy trends in the context of increased speculative supply.
• Project Orion Costs: Track the remaining non-capitalizable costs associated with the Oracle ERP implementation, particularly for the European rollout.
• Joint Venture Details: Review the final terms and closing conditions of the EQT joint venture announced in May 2026 to assess the impact on leverage and asset base.
• Liquidity Position: Assess the reduction in cash balances from $136.9 million to $39.8 million and the reliance on the revolving credit facility for working capital.