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Americold Realty Trust Announces Third Quarter 2021 Results

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Updates Earnings Call to Today, November 3, 2021 at 5 PM EST

Maintains 2021 Annual AFFO Guidance of $1.15 - $1.20 per Share

ATLANTA, November 03, 2021--(BUSINESS WIRE)--Americold Realty Trust (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 third quarter ended September 30, 2021.

Third Quarter 2021 Highlights

  • Total revenue increased 42.5% to $708.8 million.

  • Total NOI increased 15.1% to $155.8 million.

  • Core EBITDA increased 10.2% on an actual basis, and 11.2% on a constant currency basis, to $114.7 million.

  • Net income of $5.3 million, or $0.02 income per diluted common share.

  • Core FFO of $61.5 million, or $0.23 per diluted common share.

  • AFFO of $69.6 million, or $0.27 per diluted common share.

  • Global Warehouse segment revenue increased 39.7% to $542.0 million.

  • Global Warehouse segment NOI increased 13.5% to $145.0 million.

  • Global Warehouse segment same store revenue increased 2.3%, and 2.0% on a constant currency basis, Global Warehouse segment same store NOI decreased by 5.1%, or 5.4% on a constant currency basis.

  • On August 2, 2021, closed on the acquisition of ColdCo in St. Louis, Missouri for $20.5 million. ColdCo consists of one owned facility in St Louis, Missouri, generating approximately 93% of total NOI, and one leased facility in Reno, Nevada. ColdCo's customers are primarily focused on the storage and handling of product for direct-to-consumer distribution, and transportation services.

  • On September 1, 2021, closed on the acquisition of Newark Facility Management in Newark, New Jersey for $376.5 million. Newark consists of one owned facility totaling 11.5 million cubic feet that is a single-customer dedicated retail distribution center.

  • Completed our expansion project in Calgary, Canada for C$13.2 million.

  • Completed the 2021 GRESB Real Estate Assessment and the Carbon Disclosure Project, receiving an initial overall GRESB score of 63, which is higher than our peer average.

Year to Date 2021 Highlights

  • Total revenue increased 36.5% to $2.00 billion.

  • Total NOI increased 17.4% to $468.3 million.

  • Core EBITDA increased 13.6% to $350.8 million, or 12.4% on a constant currency basis.

  • Net loss of $22.3 million, or $0.09 loss per diluted common share.

  • Core FFO of $162.6 million, or $0.63 per diluted common share.

  • AFFO of $217.3 million, or $0.85 per diluted common share.

  • Global Warehouse segment revenue increased 34.1% to $1.53 billion.

  • Global Warehouse segment NOI increased 16.3% to $435.6 million.

  • Global Warehouse segment same store revenue increased 0.9%, and decreased 0.6% on a constant currency basis, Global Warehouse segment same store NOI decreased 3.8%, or 5.0% on a constant currency basis.

Subsequent Event Highlights

  • Appointed George Chappelle as Interim Chief Executive Officer.

  • Added three members to our Board of Trustees, Rob Bass, George Chappelle and Pamela Kohn. These three individuals have a combination of strong supply chain, logistics, food, and retail experience and complement our existing Board.

  • Announced the expansion of our Spearwood, Australia facility with an expected cost of A$61.5 million to create a highly-automated build with two anchor tenants. The expansion will add 3.3 million cubic feet, and is expected to be complete by the second quarter of 2023.

  • Entered into a purchase agreement to acquire a cold storage facility in Denver for a total investment of approximately $59 million, and we are expecting to close the transaction in November. This facility replaces a leased facility that expires at the end of the year.

Third Quarter 2021 Total Company Financial Results

Total revenue for the third quarter of 2021 was $708.8 million, a 42.5% increase from the same quarter of the prior year. This growth was primarily driven by the incremental revenue from acquisitions, including warehouse and transportation operations, our recently completed expansion and development projects and contractual and market-driven rate escalations. These increases are partially offset by the continued impacts of COVID-19 and resulting supply chain disruption which impacted our holdings across our network as food production has been unable to keep up with steady consumer demand.

For the third quarter of 2021, the Company reported a net income of $5.3 million, or $0.02 per diluted share, compared to net income of $12.4 million, or $0.06 per diluted share, for the same quarter of the prior year.

Total NOI for the third quarter of 2021 was $155.8 million, an increase of 15% from the same quarter of the prior year.

Core EBITDA was $114.7 million for the third quarter of 2021, compared to $104.1 million for the same quarter of the prior year. This reflects a 10.2% increase over prior year on an actual basis, and 11.2% on a constant currency basis, driven primarily from acquisition contribution. These increases were partially offset by the impact of reduced food production as a result of ongoing labor market challenges and the impact of inflation.

For the third quarter of 2021, Core FFO was $61.5 million, or $0.23 per diluted share, compared to $58.6 million, or $0.28 per diluted share, for same quarter of the prior year.

For the third quarter of 2021, AFFO was $69.6 million, or $0.27 per diluted share, compared to $62.7 million, or $0.30 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.

Third Quarter 2021 Global Warehouse Segment Results

For the third quarter of 2021, Global Warehouse segment revenue was $542.0 million, an increase of $154.0 million, or 40%, compared to $388.0 million for the third quarter of 2020. This growth was driven by the recently completed acquisitions and development projects, paired with contractual and market-driven rate escalations.

Warehouse segment NOI was $145.0 million for the third quarter of 2021, an increase of 13%. Global Warehouse segment margin was 26.7% for the third quarter of 2021, a 618 basis point decrease compared to the same quarter of the prior year. The year-over-year increase in segment NOI was driven by the increase in revenue, partially offset by a decline in warehouse services margin within our same store pool.

We had 162 same stores for the three months ended September 30, 2021. The following table presents revenues, cost of operations, contribution (NOI) and margins for our same stores and non-same stores with a reconciliation to the total financial metrics of our warehouse segment for the three months ended September 30, 2021. Amounts related to the Agro, AM-C, Bowman Stores, Caspers, ColdCo, Hall’s, KMT Brrr!, Liberty and Newark Facility Management acquisitions are reflected within non-same store results.

Three Months Ended September 30,

Change

Dollars in thousands

2021 actual

2021
constant
currency(1)

2020 actual

Actual

Constant
currency

TOTAL WAREHOUSE SEGMENT

Number of total warehouses(2)

239

175

n/a

n/a

Global Warehouse revenue:

Rent and storage

$

225,234

$

224,210

$

166,355

35.4%

34.8%

Warehouse services

316,813

315,105

221,669

42.9%

42.2%

Total revenue

$

542,047

$

539,315

$

388,024

39.7%

39.0%

Global Warehouse contribution (NOI)

$

144,992

$

144,455

$

127,756

13.5%

13.1%

Global Warehouse margin

26.7%

26.8%

32.9%

-618 bps

-614 bps

Units in thousands except per pallet data

Global Warehouse rent and storage metrics:

Average economic occupied pallets

4,061

n/a

3,144

29.2%

n/a

Average physical occupied pallets

3,709

n/a

2,849

30.2%

n/a

Average physical pallet positions

5,351

n/a

4,074

31.4%

n/a

Economic occupancy percentage

75.9%

n/a

77.2%

-129 bps

n/a

Physical occupancy percentage

69.3%

n/a

69.9%

-61 bps

n/a

Total rent and storage revenue per economic occupied pallet

$

55.46

$

55.21

$

52.91

4.8%

4.4%

Total rent and storage revenue per physical occupied pallet

$

60.73

$

60.45

$

58.40

4.0%

3.5%

Global Warehouse services metrics:

Throughput pallets

10,142

n/a

7,918

28.1%

n/a

Total warehouse services revenue per throughput pallet

$

31.24

$

31.07

$

27.99

11.6%

11.0%

SAME STORE WAREHOUSE

Number of same store warehouses

162

162

n/a

n/a

Global Warehouse same store revenue:

Rent and storage

$

157,233

$

157,108

$

154,926

1.5%

1.4%

Warehouse services

216,351

215,316

210,309

2.9%

2.4%

Total same store revenue

$

373,584

$

372,424

$

365,235

2.3%

2.0%

Global Warehouse same store contribution (NOI)

$

117,209

$

116,799

$

123,528

(5.1)%

(5.4)%

Global Warehouse same store margin

31.4%

31.4%

33.8%

-245 bps

-246 bps

Units in thousands except per pallet data

Global Warehouse same store rent and storage metrics:

Average economic occupied pallets

2,878

n/a

2,942

(2.2)%

n/a

Average physical occupied pallets

2,553

n/a

2,661

(4.1)%

n/a

Average physical pallet positions

3,760

n/a

3,756

0.1%

n/a

Economic occupancy percentage

76.5%

n/a

78.3%

-179 bps

n/a

Physical occupancy percentage

67.9%

n/a

70.8%

-295 bps

n/a

Same store rent and storage revenue per economic occupied pallet

$

54.62

$

54.58

$

52.66

3.7%

3.6%

Same store rent and storage revenue per physical occupied pallet

$

61.59

$

61.54

$

58.23

5.8%

5.7%

Global Warehouse same store services metrics:

Throughput pallets

7,328

n/a

7,467

(1.9)%

n/a

Same store warehouse services revenue per throughput pallet

$

29.52

$

29.38

$

28.16

4.8%

4.3%

Three Months Ended September 30,

Change

Dollars in thousands

2021 actual

2021
constant
currency(1)

2020 actual

Actual

Constant
currency

NON-SAME STORE WAREHOUSE

Number of non-same store warehouses(3)

77

13

n/a

n/a

Global Warehouse non-same store revenue:

Rent and storage

$

68,001

$

67,102

$

11,429

495.0%

487.1%

Warehouse services

100,462

99,789

11,360

784.3%

778.4%

Total non-same store revenue

$

168,463

$

166,891

$

22,789

639.2%

632.3%

Global Warehouse non-same store contribution (NOI)

$

27,783

$

27,656

$

4,228

557.1%

554.1%

Global Warehouse non-same store margin

16.5%

16.6%

18.6%

-206 bps

-198 bps

Units in thousands except per pallet data

Global Warehouse non-same store rent and storage metrics:

Average economic occupied pallets

1,182

n/a

202

485.5%

n/a

Average physical occupied pallets

1,156

n/a

188

515.0%

n/a

Average physical pallet positions

1,591

n/a

318

399.9%

n/a

Economic occupancy percentage

74.3%

n/a

63.5%

1086 bps

n/a

Physical occupancy percentage

72.7%

n/a

59.1%

1360 bps

n/a

Non-same store rent and storage revenue per economic occupied pallet

$

57.51

$

56.75

$

56.59

1.6%

0.3%

Non-same store rent and storage revenue per physical occupied pallet

$

58.81

$

58.04

$

60.79

(3.3)%

(4.5)%

Global Warehouse non-same store services metrics:

Throughput pallets

2,814

n/a

451

523.9%

n/a

Non-same store warehouse services revenue per throughput pallet

$

35.71

$

35.47

$

25.19

41.7%

40.8%

(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) Total warehouse count of 239 includes 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, four warehouses acquired through the Liberty acquisition on March 1, 2021, 46 warehouses acquired through the Agro acquisition on December 30, 2020, eight warehouses acquired through the Hall’s acquisition on November 2, 2020, three warehouses acquired through the Casper’s and AM-C warehouse acquisitions on August 31, 2020, and five warehouses acquired through the Nova Cold and Newport acquisitions on January 2, 2020. The results of these acquisitions are reflected in the results above since date of ownership.

(3) Non-same store warehouse count of 77 includes 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, four warehouses acquired through the Liberty Freezers acquisition on March 1, 2021, 46 warehouses acquired through the Agro acquisition on December 30, 2020, eight warehouses acquired through the Hall’s acquisition on November 2, 2020, three warehouses acquired through the Casper’s and AM-C warehouse acquisitions on August 31, 2020 and ten legacy facilities. During the third quarter of 2021, a leased facility from the Liberty Freezers acquisition was exited upon expiration of the lease. The results of these acquisitions are reflected in the results above since date of ownership.

(n/a = not applicable)

Nine Months Ended September 30,

Change

Dollars in thousands

2021 actual

2021
constant
currency(1)

2020 actual

Actual

Constant
currency

TOTAL WAREHOUSE SEGMENT

Number of total warehouses(2)

239

175

n/a

n/a

Global Warehouse revenue:

Rent and storage

$

642,787

$

633,774

$

492,328

30.6%

28.7%

Warehouse services

888,445

869,710

649,175

36.9%

34.0%

Total revenue

$

1,531,232

$

1,503,484

$

1,141,503

34.1%

31.7%

Global Warehouse contribution (NOI)

$

435,552

$

427,988

$

374,661

16.3%

14.2%

Global Warehouse margin

28.4%

28.5%

32.8%

-438 bps

-436 bps

Units in thousands except per pallet data

Global Warehouse rent and storage metrics:

Average economic occupied pallets

3,994

n/a

3,188

25.3%

n/a

Average physical occupied pallets

3,648

n/a

2,930

24.5%

n/a

Average physical pallet positions

5,250

n/a

4,043

29.9%

n/a

Economic occupancy percentage

76.1%

n/a

78.9%

-279 bps

n/a

Physical occupancy percentage

69.5%

n/a

72.5%

-298 bps

n/a

Total rent and storage revenue per economic occupied pallet

$

160.93

$

158.67

$

154.41

4.2%

2.8%

Total rent and storage revenue per physical occupied pallet

$

176.21

$

173.74

$

168.06

4.9%

3.4%

Global Warehouse services metrics:

Throughput pallets

29,591

n/a

23,834

24.2%

n/a

Total warehouse services revenue per throughput pallet

$

30.02

$

29.39

$

27.24

...

7.9%

SAME STORE WAREHOUSE

Number of same store warehouses

162

162

n/a

n/a

Global Warehouse same store revenue:

Rent and storage

$

457,384

$

453,945

$

460,623

(0.7)%

(1.4)%

Warehouse services

631,694

619,336

619,002

2.1%

0.1%

Total same store revenue

$

1,089,078

$

1,073,281

$

1,079,625

0.9%

(0.6)%

Global Warehouse same store contribution (NOI)

$

351,927

$

347,487

$

365,675

(3.8)%

(5.0)%

Global Warehouse same store margin

32.3%

32.4%

33.9%

-156 bps

-149 bps

Units in thousands except per pallet data

Global Warehouse same store rent and storage metrics:

Average economic occupied pallets

2,865

n/a

3,003

(4.6)%

n/a

Average physical occupied pallets

2,543

n/a

2,753

(7.6)%

n/a

Average physical pallet positions

3,762

n/a

3,750

0.3%

n/a

Economic occupancy percentage

76.2%

n/a

80.1%

-393 bps

n/a

Physical occupancy percentage

67.6%

n/a

73.4%

-582 bps

n/a

Same store rent and storage revenue per economic occupied pallet

$

159.64

$

158.44

$

153.38

4.1%

3.3%

Same store rent and storage revenue per physical occupied pallet

$

179.85

$

178.50

$

167.31

7.5%

6.7%

Global Warehouse same store services metrics:

Throughput pallets

21,805

n/a

22,547

(3.3)%

n/a

Same store warehouse services revenue per throughput pallet

$

28.97

$

28.40

$

27.45

5.5%

3.5%

Nine Months Ended September 30,

Change

Dollars in thousands

2021 actual

2021
constant
currency(1)

2020 actual

Actual

Constant
currency

NON-SAME STORE WAREHOUSE

Number of non-same store warehouses(3)

77

13

n/a

n/a

Global Warehouse non-same store revenue:

Rent and storage

$

185,403

$

179,829

$

31,705

484.8%

467.2%

Warehouse services

256,751

250,373

30,173

750.9%

729.8%

Total non-same store revenue

$

442,154

$

430,202

$

61,878

614.6%

595.2%

Global Warehouse non-same store contribution (NOI)

$

83,626

$

80,500

$

8,985

830.7%

795.9%

Global Warehouse non-same store margin

18.9%

18.7%

14.5%

439 bps

419 bps

Units in thousands except per pallet data

Global Warehouse non-same store rent and storage metrics:

Average economic occupied pallets

1,129

n/a

185

509.0%

n/a

Average physical occupied pallets

1,105

n/a

176

525.9%

n/a

Average physical pallet positions

1,488

n/a

293

407.9%

n/a

Economic occupancy percentage

75.9%

n/a

63.3%

1260 bps

n/a

Physical occupancy percentage

74.2%

n/a

60.2%

1400 bps

n/a

Non-same store rent and storage revenue per economic
occupied pallet

$

164.21

$

159.27

$

171.00

(4.0)%

(6.9)%

Non-same store rent and storage revenue per physical occupied pallet

$

167.84

$

162.79

$

179.65

(6.6)%

(9.4)%

Global Warehouse non-same store services metrics:

Throughput pallets

7,786

n/a

1,286

505.3%

n/a

Non-same store warehouse services revenue per throughput pallet

$

32.97

$

32.16

$

23.46

40.6%

37.1%

(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 239 includes 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, four warehouses acquired through the Liberty acquisition on March 1, 2021, 46 warehouses acquired through the Agro acquisition on December 30, 2020, eight warehouses acquired through the Hall’s acquisition on November 2, 2020, three warehouses acquired through the Casper’s and AM-C warehouse acquisitions on August 31, 2020, and five warehouses acquired through the Nova Cold and Newport acquisitions on January 2, 2020. The results of these acquisitions are reflected in the results above since date of ownership.

(3) Non-same store warehouse count of 77 includes 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, four warehouses acquired through the Liberty Freezers acquisition on March 1, 2021, 46 warehouses acquired through the Agro acquisition on December 30, 2020, eight warehouses acquired through the Hall’s acquisition on November 2, 2020, three warehouses acquired through the Casper’s and AM-C warehouse acquisitions on August 31, 2020 and ten legacy facilities. During the third quarter of 2021, a leased facility from the Liberty Freezers acquisition was exited upon expiration of the lease. The results of these acquisitions are reflected in the results above since date of ownership.

(n/a = not applicable)

Fixed Commitment Rent and Storage Revenue

As of September 30, 2021, $345.8 million of the Company’s annualized rent and storage revenue were derived from customers with fixed commitment storage contracts. This compares to $333.0 million at the end of the second quarter of 2021 and $279.7 million at the end of the third quarter of 2020. The Company’s recent acquisitions had a lower percentage of fixed committed contracts as a percentage of rent and storage revenue. On a combined pro forma basis, assuming a full twelve months of acquisitions revenue, 39.1% of rent and storage revenue was generated from fixed commitment storage contracts.

Economic and Physical Occupancy

Contracts that contain fixed commitments are designed to ensure the Company’s customers have space available when needed. For the third quarter of 2021, economic occupancy for the total warehouse segment was 75.9% and warehouse segment same store pool was 76.5%, representing a 657 basis point and 866 basis point increase above physical occupancy, respectively. Economic occupancy for the total warehouse segment decreased 129 basis points, and the warehouse segment same store pool decreased 179 basis points as compared to the third quarter of 2020, as we were impacted by reduced food production volumes.

Real Estate Portfolio

As of September 30, 2021, the Company’s portfolio consists of 248 facilities. The Company ended the third quarter of 2021 with 239 facilities in its Global Warehouse segment portfolio and nine facilities in its Third-party managed segment. During the third quarter of 2021, the Company added three facilities through the acquisitions of ColdCo and Newark. Additionally, during the third quarter, the Company exited a leased facility originating from the Liberty acquisition in Canada. The same store population consists of 162 facilities for the quarter ended September 30, 2021. The remaining 77 non-same store population includes the 67 facilities that were acquired in connection with the Agro, AM-C, Bowman Stores, Caspers, ColdCo, Hall’s, KMT Brrr!, Liberty and Newark acquisitions, the recently leased facility in Australia and ten legacy facilities, offset by the exit of the leased facility previously mentioned.

Balance Sheet Activity and Liquidity

As of September 30, 2021, the Company had total liquidity of approximately $0.8 billion, including cash, capacity on its revolving credit facility and $55 million of net proceeds available from equity forward contracts. Total debt outstanding was $3.0 billion (inclusive of $281.1 million of financing leases/sale lease-backs and exclusive of unamortized deferred financing fees), of which 82% 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 5.5x. Of the Company’s total debt outstanding, $2.7 billion relates to real estate debt, which excludes sale-leaseback and capitalized lease obligations. The Company’s real estate debt has a remaining weighted average term of 6.7 years and carries a weighted average contractual interest rate of 2.93%. As of September 30, 2021, 79% of the Company’s total debt outstanding was at a fixed rate.

The Company’s equity forwards, the current respective contractual latest settlement dates, and net proceeds are detailed in the table below:

Outstanding Equity Forward Data

in millions, except share price amounts

Quarter Raised

Forward
Shares

Net Share
Price1

Net
Proceeds

Contractual
Outside
Settlement Date

Target Use of Net Proceeds

2Q/3Q 2021

1.436

$38.96

$55.0

7/1/2022

Fund future growth initiatives

(1) Net of underwriter fee, forward costs and dividends paid.

Dividend

On August 19, 2021, the Company’s Board of Trustees declared a dividend of $0.22 per share for the third quarter of 2021, which was paid on October 15, 2021 to common shareholders of record as of September 30, 2021.

2021 Outlook

The Company’s annual AFFO per share guidance remains $1.15 - $1.20. Refer to page 43 of this Financial Supplement for the details of our annual guidance including updates to certain components. 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 Call

The Company will hold a webcast and conference call on Wednesday, November 3, 2021 at 5:00 p.m. Eastern Time to discuss third quarter 2021 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 1-877-300-8521 or 1-412-317-6026. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID# 10160966. The telephone replay will be available starting shortly after the call until November 17, 2021.

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 Company

Americold 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 248 temperature-controlled warehouses, with over 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 Measures

This press release contains non-GAAP financial measures, including FFO, core FFO, AFFO, EBITDAre, Core EBITDA and same store segment revenue and contribution. A reconciliation from U.S. GAAP net (loss) income available to common shareholders to FFO, a reconciliation from FFO to core FFO and AFFO, and definitions of FFO, and core FFO are included within the supplemental. A reconciliation from U.S. GAAP net (loss) income available to common shareholders to EBITDAre and Core EBITDA, a definition of Core EBITDA and definitions of net debt to Core EBITDA are included within the supplemental.

Forward-Looking Statements

This 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: 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; general economic conditions; 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 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 budgeted or stabilized returns within expected time frames, or at all, in respect thereof; a failure of our information technology systems, 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; inflation and supply chain disruptions; uncertainty of revenues, given the nature of our customer contracts; increased interest rates and operating costs, including as a result of the ongoing COVID-19 pandemic; 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; labor and power costs; labor availability; changes in applicable governmental regulations and tax legislation, including in the international markets and proposed tax legislation proposed by the Biden administration; 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; the competitive environment in which we operate; our relationship with our employees, 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; 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 the 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 shareholders to replace our trustees and affect the price of our common shares of beneficial interest, $0.01 par value per share, of our common shares; the potential dilutive effect of our common share offerings; and risks related to any forward sale agreements, including substantial dilution to our earnings per share or substantial cash payment obligations.

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, 2020, 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.

Americold Realty Trust and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

(In thousands, except shares and per share amounts)

September 30,

December 31,

2021

2020

Assets

Property, buildings and equipment:

Land

$

769,720

$

662,885

Buildings and improvements

4,057,597

4,004,824

Machinery and equipment

1,297,087

1,177,572

Assets under construction

402,576

303,531

6,526,980

6,148,812

Accumulated depreciation

(1,563,868)

(1,382,298)

Property, buildings and equipment – net

4,963,112

4,766,514

Operating lease right-of-use assets

385,341

291,797

Accumulated depreciation – operating leases

(48,978)

(24,483)

Operating leases – net

336,363

267,314

Financing leases:

Buildings and improvements

13,550

60,513

Machinery and equipment

148,724

109,416

162,274

169,929

Accumulated depreciation – financing leases

(56,686)

(40,937)

Financing leases – net

105,588

128,992

Cash, cash equivalents and restricted cash

152,770

621,051

Accounts receivable – net of allowance of $17,017 and $12,286 at September 30, 2021 and December
31, 2020, respectively

368,179

324,221

Identifiable intangible assets – net

1,011,102

797,423

Goodwill

1,039,850

794,335

Investments in partially owned entities

38,571

44,907

Other assets

112,019

86,394

Total assets

$

8,127,554

$

7,831,151

Liabilities and equity

Liabilities:

Borrowings under revolving line of credit

$

305,664

$

Accounts payable and accrued expenses

577,721

552,547

Mortgage notes, senior unsecured notes and term loans – net of deferred financing costs of $11,446 and
$15,952 in the aggregate, at September 30, 2021 and December 31, 2020, respectively

2,400,593

2,648,266

Sale-leaseback financing obligations

182,979

185,060

Financing lease obligations

98,135

125,926

Operating lease obligations

316,457

269,147

Unearned revenue

22,114

19,209

Pension and postretirement benefits

7,247

9,145

Deferred tax liability – net

193,194

220,502

Multiemployer pension plan withdrawal liability

8,267

8,528

Total liabilities

4,112,371

4,038,330

Equity

Shareholders’ equity:

Common shares of beneficial interest, $0.01 par value – 500,000,000 and 325,000,000 authorized
shares; 266,769,008 and 251,702,603 issued and outstanding at September 30, 2021 and December 31,
2020, respectively

2,668

2,517

Paid-in capital

5,110,432

4,687,823

Accumulated deficit and distributions in excess of net earnings

(1,090,595)

(895,521)

Accumulated other comprehensive loss

(13,477)

(4,379)

Total shareholders’ equity

4,009,028

3,790,440

Noncontrolling interests:

Noncontrolling interests in operating partnership and consolidated joint venture

6,155

2,381

Total equity

4,015,183

3,792,821

Total liabilities and equity

$

8,127,554

$

7,831,151

Americold Realty Trust and Subsidiaries

Condensed Consolidated Statements of Operations (Unaudited)

(In thousands, except per share amounts)

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Revenues:

Rent, storage and warehouse services

$

542,047

$

388,024

$

1,531,232

$

1,141,503

Third-party managed services

87,782

75,338

233,027

213,213

Transportation services

78,979

34,096

234,051

104,874

Other

4,459

Total revenues

708,808

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