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Overall the call presents a constructive and strategic tone. Management reported an AFFO beat, executed significant cost savings, stabilized physical occupancy, secured a large JV with EQT that should materially improve the balance sheet, and continued to win and expand customer relationships and international projects. Offsetting these positives are near-term headwinds: Q1 warehouse NOI declined ~4.5%, storage pricing pressure persists, leverage remains elevated at 7.1x (albeit improving pro forma), and the JV will create a modest AFFO headwind depending on closing timing. On balance, the strategic actions (JV, cost cuts, portfolio optimization and commercial wins) and the operational stabilization outweigh the short-term earnings and market challenges.
Management said Q1 AFFO per share was $0.29 (above consensus) and reiterated full‑year AFFO guidance of $120–$130 million, noting the pending EQT joint venture (12 properties; Americold seed pool >$1.3 billion; blended cap rate ~7%; ~$3,300 per pallet; ~ $231M revenue / ~$103M NOI in FY2025) is expected to close in Q3 and generate roughly $1.1 billion of proceeds to repay 2026, 2027 and part of 2028 maturities. Americold will retain a 30% share of JV NOI, receive a ~$15–$20M annual management fee, and expects the JV to reduce net debt / pro forma core EBITDA from 7.1x at Q1 by about 0.75x toward a ≤6x target. Management also warned the JV could be a ~ $0.10 per‑share AFFO headwind on a full‑year basis (about $0.06 in H2 depending on close timing) but said current operating performance (Q1 warehouse NOI down 4.5%, physical occupancy flat YoY, Europe physical occupancy +800 bps, churn 2.5%, 34% of at‑risk fixed commitments renewed representing ~ $100M revenue, 59% of rent/storage from fixed commitments) plus executed cost saves ($30M identified and completed; >400 indirect positions removed) give them confidence in maintaining guidance.
Delivered AFFO per share of $0.29 in Q1, beating analyst consensus; the company has now delivered three straight quarters that met or exceeded AFFO per share consensus and management maintained full-year AFFO guidance (previously in the ~$120M–$130M range) while executing strategic initiatives.
Same-store physical occupancy was flat year-over-year in Q1, indicating inventory stabilization; Europe's physical occupancy increased by over 800 basis points the quarter and throughput in both Europe and Asia Pacific rose versus prior year.
Announced a joint venture with EQT where Americold contributed a seed pool of 12 U.S. properties (>$1.3B) and EQT holds 70%; Americold expects approximately $1.1B in proceeds, management fees of ~$15M–$20M/year and 30% of JV NOI; JV valuation metrics include an implied blended cap rate of ~7% and ~$3,300 per pallet position.
Net debt to pro forma core EBITDA was 7.1x at quarter end; the JV transaction is expected to reduce leverage by ~0.75x on a pro forma basis, materially advancing toward the company's target of 6x or less.
Completed $30M of identified savings in indirect labor and SG&A in Q1 as planned, reduced indirect headcount by over 400 positions, and reported core SG&A relatively flat year-over-year (excluding Q1 accrual fluctuations); phase‑2 cost actions are underway to identify further savings.
Renewed 34% of the year's fixed committed contracts that were month-to-month or expiring in 2026 (representing ≈$100M of revenue), maintained 59% of rent and storage revenue from fixed committed contracts, held a low customer churn rate of 2.5%, and increased annualized leasing revenue by over $4M (~+7%).
Expanded relationships internationally (On the Run national rollout in Australia; 10-year KFC Australia renewal), grew nonfood categories (pet food, floral) and initiated pharmaceutical storage commitments; e-commerce business is growing at a double-digit rate, shipped over 1M packages last year, and expanded to 5 U.S. sites covering 99.5% of the population within two-day delivery.
Delivered expansions in Sydney and Christchurch on time and on budget; secured a customer-backed development opportunity with McCain Foods (≈56,000 pallet positions, 20-year fixed commitment) that may be a JV candidate; purchased a leased facility and placed it on a 15-year triple-net lease yielding an ~10% ROI.
Hello, and welcome, everyone joining today's Americold Realty Trust First Quarter 2026 Earnings Call. [Operator Instructions] Please note this call is being recorded. It is now my pleasure to turn the meeting over to Rich Leland. Please go ahead.
Hello, and thank you for joining us today for Americold Realty Trust's First Quarter 2026 Earnings Conference Call. In addition to the press release distributed this morning, we have filed a supplemental financial package with additional detail on our results. These materials are available on the Investor Relations section of our website at www.americold.com. This morning's conference call is hosted by Americold's Chief Executive Officer, Rob Chambers, along with Chris Papa, our Chief Financial Officer. Management will make some prepared comments, after which we'll open up the call to your questions. Before we begin, let me remind you that management's remarks today may contain forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from those anticipated. These forward-looking statements are based on current expectations, assumptions and beliefs as well as information available to us at this time and speak only as of the date they are made.
Management undertakes no obligation to update publicly any of these statements in light of new information or future events. During this call, we will also discuss certain non-GAAP financial measures, including NOI, core EBITDA and net debt to pro forma core EBITDA and AFFO, among others. The fu...