Americold Realty Trust reported year-over-year growth in third-quarter revenue and net operating income, with adjusted funds from operations (AFFO) of $0.35 per share. The temperature-controlled logistics company also raised its full-year AFFO outlook for a second consecutive time, citing improving operating metrics and cost savings.
A joint venture with EQT closed during the quarter, allowing Americold to reduce outstanding debt by $1.15 billion. Management said the transaction lowered its net leverage ratio by a full turn and brings in a partner to support future development.
Key details
- Revenue increased 4.2% to $691.6 million from $663.7 million a year earlier.
- AFFO was $0.35 per share for the quarter. The company’s announcement did not provide a year-over-year comparison for this figure in the available results.
- Full-year AFFO guidance rose to $1.31–$1.33 per share. Americold said this was its second consecutive increase to the outlook.
- Operating performance improved across several measures. Management pointed to gains in occupancy, throughput and pricing, alongside lower selling, general and administrative expenses from cost-saving initiatives, as contributors to year-over-year revenue and net operating income growth.
- The EQT joint venture reduced debt by $1.15 billion. Americold said the transaction lowered its net leverage ratio by a full turn and improved its financial flexibility. It also described EQT as a development partner for future growth opportunities.
- Management characterized the industry backdrop as stabilizing, while acknowledging that the operating environment remains challenging and citing multi-quarter improvement in key business metrics.
The quarter’s announcements point to two notable changes: Americold has a stronger balance sheet following the debt reduction, and it has raised its expected full-year AFFO per share as operating performance improves.