Summary of Americold Realty Trust Q2 2026 Earnings Call

1Key Financial Results and Metrics

AFFO per Share: Reported at $0.35, exceeding expectations for the fourth consecutive quarter.

Occupancy Levels: Physical occupancy increased over 200 basis points sequentially and nearly 300 basis points year-over-year, indicating strong demand.

Economic Occupancy: Improved year-over-year, with a gap between physical and economic occupancy tightening by 240 basis points to 860 basis points.

Revenue Guidance: Same-store revenue expected between $2.03 billion and $2.09 billion, showing slight year-over-year growth.

NOI Guidance: Same-store NOI projected between $660 million and $695 million.

Core EBITDA: Expected in the range of $570 million to $600 million.

Debt Management: Total debt at $4.3 billion; a $1.1 billion paydown anticipated from a joint venture with EQT, reducing leverage by approximately 0.75 turns.

2Strategic Updates and Business Highlights

Joint Venture with EQT: A $1.3 billion strategic joint venture approved, expected to close in Q3 2026, aimed at strengthening the balance sheet and enhancing growth opportunities.

Portfolio Management: Sold two underperforming facilities for $27 million and exited ten facilities overall, with plans for additional sales.

New Business Wins: Significant growth in new business, particularly in Europe and Asia Pacific, with expansions in retail and convenience sectors.

Cost Structure Optimization: Initiatives to reduce indirect labor costs by $30 million annually, with an additional $25 million targeted by Q1 2027.

ESG Rating Upgrade: MSCI upgraded Americold's ESG rating from BB to AA, highlighting improved sustainability practices.

3Forward Guidance and Outlook

AFFO Guidance: Increased to a range of $1.26 to $1.32 per share, reflecting strong execution and operational improvements.

Occupancy and Pricing: Expectations for continued stabilization in occupancy and slight positive growth in pricing through the remainder of the year.

Long-Term Goals: Aiming to return economic occupancy to the low 80s over time, with a focus on disciplined execution and capital allocation.

4Bad News, Challenges, or Points of Concern

Impairment Charges: A noncash impairment charge of $298.8 million recorded for the Lancaster and Plainville facilities, which are being classified as held for sale.

Competitive Pressures: Smaller competitors continue to struggle, leading to price competition; however, Americold remains focused on service quality over pricing.

Market Conditions: Ongoing inflation and economic pressures affecting consumer behavior and customer spending, though some positive trends in wage growth for lower-income consumers noted.

5Notable Q&A Insights

Occupancy Gains: Management attributes the increase in physical occupancy primarily to new business wins rather than inventory restocking, with a strong focus on service quality driving customer retention.

Throughput Improvement: Higher throughput driven by new business wins, particularly in fast-turning sectors like e-commerce and convenience.

Future Development: Plans to focus on lower-risk, customer-driven projects, with a commitment to maintaining operational excellence in new developments.

Market Dynamics: Discussion on the power dynamic between landlords and tenants, with Americold positioned to benefit from a stabilizing market while remaining cautious about long-term commitments from tenants. Overall, Americold Realty Trust reported a strong quarter with positive trends in occupancy and financial performance, while also addressing challenges and strategic initiatives aimed at long-term growth and stability.