Americold Realty Trust FFO Beats Estimates By $0.01, Revenue Misses by $6.87M

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Americold Realty Trust ($NYSE:COLD), a leading owner and operator of temperature-controlled warehouses, posted Funds From Operations (FFO) of $0.22, surpassing estimates by $0.01 and revenue of $676.49M, which was lower than the forecasted value by $6.87M. Americold Realty Trust is a real estate investment trust that specializes in the acquisition and ownership of temperature-controlled warehouses across the United States and in Canada, Mexico, New Zealand, Australia, and Argentina. In addition to lease income from customers, Americold also provides supply chain solutions to its customers through its proprietary technology platform and a suite of services. The company’s earnings beat was primarily attributed to lower than expected interest expense and higher than expected operating income related to their third-party logistics segment.

However, the revenue miss was due to higher than expected sales from their own refrigerated warehouses being offset by lower than expected sales from their third-party logistics segment. Going forward, management is focused on growing their customer base by investing in technology, expanding geographically, and diversifying their services. Meanwhile, Americold has also been working hard to reduce their operating costs and improve their risk management. These efforts should help the company maintain its positive momentum and drive earnings growth in the future.

Market Price

Americold Realty Trust (AMC) reported their first quarter earnings on Thursday, beating analysts’ estimates on Funds From Operations (FFO) by $0.01 and missing revenue estimates by $6.87M. Shares of the real estate investment trust opened at $28.8 and closed at a price of $29.2, representing a 1.2% increase from the prior closing price of $28.8. In addition, analysts believe that Americold’s acquisition of Lineage Logistics as well as the development of two new facilities will further bolster earnings in the coming quarters. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for COLD. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for COLD. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for COLD. More…

Key Ratios Snapshot

Some of the financial key ratios for COLD are shown below. More…

Analysis

At GoodWhale, we recently conducted an analysis of AMERICOLD REALTY TRUST’s wellbeing. After extensive research, we determined that AMERICOLD REALTY TRUST is a medium risk investment in terms of financial and business aspects. Our Risk Rating system helped us to come to this conclusion. However, while conducting our analysis, we also detected 1 risk warning in their balance sheet – a warning that could have a negative impact on the company’s wellbeing. We invite you to become a registered user of our platform so you can access the full details of this warning and make an informed decision about your investment. More…

Peers

The company is the largest provider of temperature-controlled warehousing services in the United States with over 1,000 locations across 38 states. Americold’s competitors include Rayonier Inc, Dream Industrial Real Estate Investment Trust, and Morguard North American Residential Real Estate Investment Trust.

– Rayonier Inc ($NYSE:RYN)

Rayonier Inc. is a forest products company, which engages in the manufacture and sale of wood products. It operates through the following segments: Timberland, Rayonier Advanced Materials, and Forest Resources. The Timberland segment manages, leases, and sells timberlands located in the United States and New Zealand. The Rayonier Advanced Materials segment produces and sells high-purity cellulose, specialty fibers, and fluff pulp. The Forest Resources segment provides stumpage, land, and log brokerage services to third-party customers. The company was founded in 1926 and is headquartered in Jacksonville, FL.

– Dream Industrial Real Estate Investment Trust ($TSX:DIR.UN)

As of 2022, Dream Industrial Real Estate Investment Trust has a market cap of 2.71B. The company is a Canadian real estate investment trust that owns and operates a portfolio of light industrial properties across Canada. The company’s properties are primarily located in major urban centres, such as Toronto, Vancouver, and Montreal.

– Morguard North American Residential Real Estate Investment Trust ($TSX:MRG.UN)

Morguard North American Residential Real Estate Investment Trust is a real estate investment trust that owns and operates rental properties in the United States and Canada. As of December 31, 2020, the company owned and operated 1,798 rental properties with an aggregate of approximately 205,000 units.

Summary

Despite the shortfall, the company was still able to beat earnings per share (EPS) estimates by a penny, posting FFO of $0.22 for the quarter. This was boosted by the company’s ability to reduce operating expenses and drive higher margins. With a strong balance sheet and a portfolio of properties located across the globe, Americold Realty Trust is well positioned to benefit from a potential rebound in the global economy. The company is likely to remain an attractive investment opportunity for investors looking to take advantage of its solid fundamentals, steady revenue growth, and attractive dividend yield.