Americold Q3 2020 Earnings Report
Key Takeaways
Americold Realty Trust announced its Q3 2020 results, demonstrating the stability of its temperature-controlled warehouse business. The company reported a 6.7% increase in total revenue and a 12.1% increase in NOI, driven by acquisitions and organic growth. Strategic acquisitions and expansions are expected to contribute to long-term growth.
Total revenue increased by 6.7% to $497.5 million.
Total NOI increased by 12.1% to $135.3 million.
Global Warehouse segment revenue increased by 6.1% to $388.0 million.
Americold entered into an agreement to acquire Agro Merchants Group for $1.74 billion.
Americold
Americold
Americold Revenue by Segment
Forward Guidance
The Company is tightening its AFFO per share guidance to $1.26-$1.29 from $1.24-$1.30 for 2020. Please note that this guidance includes the impact of the Halls acquisition, and assumes a year end closing for Agro.
Positive Outlook
- Guidance includes the impact of the Halls acquisition
- Assumes a year end closing for Agro
Challenges Ahead
- SG&A expense from a range of $135-$140 million to $140-$143 million
- Managed & Transportation segment NOI from a range of $28-$31 million to $30-$31 million
- Deferred tax income benefit from a range of $2-$4 million to $4-$5 million
- Non-real estate depreciation and amortization from a range of $70-$72 million to $71-$74 million; subject to the Halls acquisition purchase price allocation
- Total maintenance capital expenditures from a range of $65-$73 million to $66-$70 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income