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 marking 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, showing improvement.
• NOI and Core EBITDA: Both reported increases year-over-year for the first time since Q3 2024.
• Occupancy Rates: Noted a sequential increase in occupancy, though still facing pressures.

2. Strategic Updates and Business Highlights

• Leadership Change: Chris Papa appointed as new Chief Financial Officer, bringing extensive experience in real estate.
• Revenue Structure: Achieved approximately 60% of rent and storage revenues from fixed commitment contracts, up from less than 40% previously.
• Operational Efficiency: Services margins reached nearly 14% in Q4, with a full-year margin of 12.7%, up nearly 1,000 basis points over two years.
• Portfolio Management: Successfully exited or idled 10 sites in North America, with plans for further evaluations in 2026.
• New Business Wins: Expanded into new sectors, including a significant contract with On The Run in Australia, indicating growth in convenience store distribution.

3. Forward Guidance and Outlook

• 2026 AFFO Guidance: Expected to be between $1.20 and $1.30 per share, reflecting a cautious outlook.
• Economic Occupancy Expectations: Anticipated to be flat to down by 300 basis points due to customer reevaluations of space commitments.
• Revenue Projections: Same-store revenue expected to be approximately $2.2 billion to $2.27 billion, with NOI ranging from $735 million to $785 million.
• Cost Management: Targeting $30 million in annualized cost savings and reducing Project Orion-related cash spend by $50 million.

4. Bad News, Challenges, or Points of Concern

• Market Headwinds: Ongoing pressures in the cold storage market due to excess capacity, particularly in the U.S., and cautious customer demand.
• Customer Sentiment: Customers are managing inventory tightly, with many not predicting significant increases in consumer demand for 2026.
• Occupancy and Pricing Pressures: Continued challenges in balancing occupancy and pricing, with expectations for both to remain headwinds throughout the year.
• Deleveraging Needs: The company is focused on reducing leverage, currently at 6.8x, which may impact future growth and capital allocation decisions.

5. Notable Q&A Insights

• Customer Demand: Customers are experiencing flat net sales growth, with a focus on driving volume through innovation and new product launches.
• Occupancy Trends: The sequential occupancy growth in Q4 was attributed to seasonal factors and successful portfolio management initiatives.
• Deleveraging Strategy: The company is exploring joint ventures and asset sales to reduce leverage while maintaining investment-grade status.
• International Operations: The international portfolio is performing well, but the company is conducting a thorough review to ensure optimal focus on profitable markets.
• Fixed Contracts: High retention rates of fixed commitment contracts are expected, but customers are likely to reduce their space commitments upon renewal.

This summary encapsulates the key points from the earnings call, providing a balanced view of Americold's current financial health, strategic direction, and challenges ahead.