US Exchange Filings

Americold Raises AFFO Outlook Following Growth and $1.15B Debt Reduction

Americold raised its full-year AFFO outlook for a second time as operating metrics improved, while an EQT joint venture enabled a $1.15 billion debt reduction and cut net leverage by a full turn. The moves strengthen its financial flexibility and signal improving momentum.

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.

Original Filing

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