COLD — Americold Realty Trust, Inc.

Summary of Americold Realty Trust Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Q4 AFFO: $0.38 per share, slightly above expectations and a year-over-year increase.
• Full Year AFFO: $1.43 per share, in line with expectations.
• Economic Occupancy: Increased by 280 basis points sequentially in Q4, reflecting seasonal harvest impacts and improved portfolio management.
• Revenue Metrics:
  • Storage revenue per pallet up 0.3%.
  • Services revenue per pallet up 2.4%.
• Total Company NOI: Expected between $780 million and $845 million for 2026.
• Core EBITDA: Projected between $570 million and $620 million for 2026.

2. Strategic Updates and Business Highlights

• Leadership Change: Chris Papa appointed as new Chief Financial Officer, bringing extensive experience from other REITs.
• Fixed Commitment Contracts: Approximately 60% of revenues now from fixed contracts, up from less than 40% previously, providing stability in cash flows.
• Cost Management: Initiatives to unlock $30 million in annualized cost savings and a reduction of $50 million in Project Orion-related cash spend.
• Portfolio Management: Successful exit from low-profit facilities, with 10 sites exited or idled in 2025 and 9 more identified for 2026.
• Expansion Projects: Three new development projects completed on time and on budget, including facilities in Allentown, Kansas City, and Dubai.

3. Forward Guidance and Outlook

• 2026 AFFO Guidance: Expected to be between $1.20 and $1.30 per share, reflecting cautious market conditions.
• Revenue Expectations: Anticipated same-store revenue of approximately $2.2 billion to $2.27 billion, with economic occupancy expected to be flat to down 300 basis points.
• Market Conditions: Continued pressure on revenue anticipated due to cautious customer demand and tight inventory management.

4. Bad News, Challenges, or Points of Concern

• Market Headwinds: Ongoing challenges include a competitive pricing environment and cautious customer outlook for demand in 2026.
• Economic Occupancy Concerns: Despite improvements, economic occupancy is expected to decline as customers reassess space requirements upon contract renewals.
• Excess Capacity: Significant excess capacity in the U.S. cold storage market, primarily due to speculative developments, which may impact pricing and occupancy.
• Customer Demand: Customers are experiencing flat net sales growth, with concerns about food inflation affecting volume growth.

5. Notable Q&A Insights

• Customer Sentiment: Discussions with customers indicate a cautious outlook for 2026, with many focusing on driving volume through innovation and new product launches.
• Occupancy Projections: The sequential occupancy growth in Q4 was attributed to seasonal factors and effective portfolio management, leading to a more favorable outlook than previously anticipated.
• Deleveraging Strategy: Management is exploring joint ventures and asset sales to reduce leverage, aiming for a target of 6x or below.
• International Portfolio: The international assets are performing well, but a thorough review is ongoing to ensure alignment with long-term strategic goals.
• Dividend Policy: The company remains committed to maintaining its dividend while pursuing deleveraging strategies.

This summary encapsulates the key points from Americold Realty Trust's Q4 2025 earnings call, highlighting financial performance, strategic initiatives, future outlook, and challenges faced in the current market environment.