Author: Admin

Americold Realty Trust, Inc. (NYSE: COLD) (the “Company”), a global leader in temperature-controlled logistics, real estate, and value-added services focused on the ownership, operation, acquisition and development of temperature-controlled warehouses, today announced financial and operating results for the first quarter ended March 31, 2024.

George Chappelle, Chief Executive Officer of Americold Realty Trust, stated, “We are pleased with our first quarter where we delivered exceptional operational results and continued to execute on our core priorities. We produced double digit growth in total NOI which resulted in a year-over-year increase in AFFO per share of over 28%. This performance was primarily driven by our Global Warehouse same store pool, which generated NOI growth of 10.1%, on a constant currency basis. Our strong same-store pool results were due to significant improvements in our Services Margins, where we delivered record first quarter margins of 10.7%, on a constant currency basis. Our laser focus on our four core priorities; Customer Service, Labor Management, Pricing, and Development, is the catalyst which allowed us to achieve these profitable results, which we expect to be sustainable across our platform over the long term.”

“Our significant investments in our ERP infrastructure are showing early positive returns, resulting in improved revenue recognition and better variable cost management, and are delivering sustainable returns in line with our previously disclosed expectations. Additionally, our collaborations with CPKC and DP World continue to fuel our development pipeline for future profitable growth as we broke ground this quarter on our inaugural facility on CPKC’s intermodal terminal in Kansas City, and have entered Phase 3 of our expansion project in Dubai with our JV partner RSA Global. Lastly, we are pleased to announce a new conventional expansion project in Sydney, Australia, anchored by one of the country’s largest grocers, for a total investment of approximately $36 million US dollars.”

First Quarter 2024 Highlights

• Total revenue of $665.0 million, a 1.7% change from $676.5 million in Q1 2023.

• Total NOI increased 12.4% to $210.8 million from $187.6 million in Q1 2023.               

• Net income of $9.8 million, or $0.03 per diluted common share.

• Core FFO of $77.3 million, or $0.27 per diluted common share.

• AFFO of $104.9 million, or $0.37 per diluted common share.

• Global Warehouse segment same store revenue decreased 0.7% on an actual basis, or increased 0.8% on a constant currency basis. Global Warehouse segment same store NOI increased 8.6%, or 10.1% on a constant currency basis.

• Broke ground on two developments in Kansas City, Missouri, and Dubai with our two strategic partners, CPKC and DP World.

• Announced expansion project in Sydney, Australia, for $36 million, anchored by one of the country’s largest grocers. This expansion consists of 2.8 million cubic feet and 13,000 pallet positions.

2024 Outlook
The table below includes the details of our annual guidance. The Company’s guidance is provided for informational purposes based on current plans and assumptions and is subject to change. The ranges for these metrics do not include the impact of acquisitions, dispositions, or capital markets activity beyond that which has been previously announced.

Investor Webcast and Conference Call
The Company will hold a webcast and conference call on Thursday, May 9, 2024 at 5:00 p.m. Eastern Time to discuss its first quarter 2024 results. A live webcast of the call will be available via the Investors section of Americold Realty Trust’s website at www.americold.com. To listen to the live webcast, please go to the site at least fifteen minutes prior to the scheduled start time in order to register, download and install any necessary audio software. Shortly after the call, a replay of the webcast will be available for 90 days on the Company’s website.

The conference call can also be accessed by dialing 1-877-407-3982 or 1-201-493-6780. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID#13743082. The telephone replay will be available starting shortly after the call until May 23, 2024.

The Company’s supplemental package will be available prior to the conference call in the Investors section of the Company’s website at http://ir.americold.com.

During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends that have occurred after quarter-end. The Company’s responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously.

First Quarter 2024 Total Company Financial Results

Total revenue for the first quarter of 2024 was $665.0 million, a 1.7% change from the $676.5 million from the same quarter of the prior year, which was the result of changes in our Transportation and Third-party managed segments, partially offset by growth within our Global Warehouse segment. The growth within our Global Warehouse segment was driven by incremental revenue from recently completed expansion and development projects, our pricing initiatives and rate escalations.

Total NOI for the first quarter of 2024 was $210.8 million, an increase of 12.4% from the same quarter of the prior year. This increase is a result of strong variable cost control driving higher warehouse services margins.

For the first quarter of 2024, the Company reported net income of $9.8 million, or $0.03 earnings per diluted share, compared to net loss of $2.6 million, or $0.01 loss per diluted share, for the comparable quarter of the prior year.

Core EBITDA was $155.8 million for the first quarter of 2024, compared to $133.1 million for the comparable quarter of the prior year. This reflects a 17.1% increase over prior year on an actual basis, and 18.9% on a constant currency basis. The increase is due to the same factors driving the increase in NOI mentioned above.

For the first quarter of 2024, Core FFO was $77.3 million, or $0.27 per diluted share, compared to $60.8 million, or $0.22 per diluted share, for the first quarter of 2023.

For the first quarter of 2024, AFFO was $104.9 million, or $0.37 per diluted share, compared to $79.9 million, or $0.29 per diluted share, for the same quarter of the prior year.

Please see the Company’s supplemental financial information for the definitions and reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures.

First Quarter 2024 Global Warehouse Segment Results

The following table presents revenues, contribution (NOI) and margins for our same store and non-same store warehouses with a reconciliation to the total financial metrics of our warehouse segment for the three months and year ended March 31, 2024. Refer to our “Real Estate Portfolio” section below for the composition of our non-same store pool.

(1) The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis are the effect of changes in foreign currency exchange rates relative to the comparable prior period.
(2) Refer to our “Real Estate Portfolio” section below for the composition of our non-same store pool.
(n/a = not applicable)
(n/r = not relevant)

For the first quarter of 2024, Global Warehouse segment revenue was $597.7 million, an increase of $2.7 million, or 0.4%, compared to $595.1 million for the first quarter of 2023. This growth was principally driven by recently completed development projects and acquisitions, and our pricing initiatives and rate escalations. This was partially offset by lower occupancy and throughput pallets due to consumer buying habits and the unfavorable impact of foreign currency translation.

Global Warehouse segment contribution (NOI) was $197.1 million for the first quarter of 2024 as compared to $174.8 million for the  first quarter of 2023, an increase of $22.3 million or 12.8%. Global Warehouse segment contribution (NOI) increased due to higher revenue, strong variable cost controls and labor efficiencies. Global Warehouse segment margin was 33.0% for the first quarter of 2024, a 360 basis point increase compared to the same quarter of the prior year, driven by improvement in our warehouse services margin.

Fixed Commitment Rent and Storage Revenue
As of March 31, 2024, $597.9 million of the Company’s annualized rent and storage revenue were derived from customers with fixed commitment storage contracts. This compares to $576.8 million at the end of the fourth quarter of 2023 and $480.4 million at the end of the first quarter of 2023. We continue to make progress on commercializing business under this type of arrangement. On a combined pro forma basis, assuming a full twelve months of acquisitions revenue, 54.2% of rent and storage revenue was generated from fixed commitment storage contracts.

Economic and Physical Occupancy
Contracts that contain fixed commitments are designed to ensure the Company’s customers have space available when needed. For the first quarter of 2024, economic occupancy for the total warehouse segment was 79.4% and warehouse segment same store pool was 80.9%, representing a 1,054 basis point and 1,066 basis point increase above physical occupancy, respectively. Economic occupancy for the total warehouse segment decreased 462 basis points, and the warehouse segment same store pool decreased 352 basis points as compared to the first quarter of 2023. The reduction in occupancy reflects the ramp in manufacturer production during the fourth quarter of 2022 as labor improved, which did not recur in 2023.

Real Estate Portfolio
As of March 31, 2024, the Company’s portfolio consists of 241 facilities. The Company ended the first quarter of 2024 with 236 facilities in its Global Warehouse segment portfolio and five facilities in its Third-party managed segment. The same store population consists of 226 facilities for the quarter ended March 31, 2024. The remaining 10 non-same store population consists of: five sites in the expansion and development phase, two facilities that we purchased in 2023, one facility requiring capital investment in anticipation of repurposing, one leased facility expiring during the second quarter of 2024 which has already ramped down operations, and one site in which we have ceased operations and intend to lease to a third party.

Balance Sheet Activity and Liquidity
As of March 31, 2024, the Company had total liquidity of approximately $732.5 million, including cash and capacity on its revolving credit facility. Total debt outstanding was $3.2 billion (inclusive of $235.2 million of financing leases/sale lease-backs and exclusive of unamortized deferred financing fees), of which 93% was in an unsecured structure. At quarter end, net debt to pro forma Core EBITDA was approximately 5.4x. The Company’s total debt outstanding includes $3.0 billion of unsecured debt, which excludes sale-leaseback and financing lease obligations. The Company’s real estate debt has a remaining weighted average term of 4.9 years and carries a weighted average contractual interest rate of 3.9%. As of March 31, 2024, 86% of the Company’s total debt outstanding was at a fixed rate, inclusive of hedged variable-rate for fixed-rate debt. The Company has no material debt maturities until 2026, inclusive of extension options.

Dividend
On March 7, 2024, the Company’s Board of Directors declared a dividend of $0.22 per share for the first quarter of 2024, which was paid on April 15, 2024 to common stockholders of record as of March 28, 2024.

The Metropolitan Atlanta Rapid Transit Authority (MARTA) Board of Directors will hold in-person and virtual public hearings to consider the proposed fiscal year 2025 Operating and Capital Budgets on Wednesday, May 15 at 7 p.m. and Thursday, May 16 at 7 p.m., with a community exchange session beginning one hour earlier.

WHAT:          MARTA public hearings on FY 2025 Operating and Capital Budgets

WHEN:         Wednesday, May 15

                    6 p.m. – Community exchange

                    7 p.m. – Public hearing

WHERE:       DeKalb Maloof Auditorium

                    1500 Commerce Drive

                    Decatur, Ga. 30030

MARTA:        Blue line to Decatur Station

                    Bus routes 15 and 283

WHEN:         Thursday, May 16

                    6 p.m. – Community exchange    

                    7 p.m. – Public hearing  

WHERE:        MARTA Headquarters

                    2424 Piedmont Road NE

                    Atlanta, Ga. 30324  

MARTA:        Red/Gold Lines to Lindbergh Center Station – north exit

                    Bus routes 5, 6, 30, 39, and 809                  

VIRTUAL:    Visit www.itsmarta.com (May 16 only) 

The proposed FY 2025 Operating and Capital Budgets video presentation will be available for review at MARTA (itsmarta.com)starting May 16.

For formats in accordance with ADA and Limited English Proficiency regulations, call 404-848-4037. For hearing impaired customers requiring accommodations, call the Telephone Device for the Deaf (TDD) at 404-848-5665. A sign language interpreter will be present at the hearings.

Public comments must be submitted by May 20 via voice message at 404-848-5299, email at publichearinginfo@itsmarta.com, or mail to MARTA’s Office of External Affairs, 2424 Piedmont Road NE, Atlanta, 30324-3330.  

What Do Your Travel Customers Want?

What Makes your Audience Click? What really excites your customers? What does your target audience really want? There likely aren’t more important questions to ask because you can only sell what they want. If you crack these tough questions right, you’re liable to make a big impact on them and open up a big sales pipeline….

Who Do People Travel?

Why Do People Travel? Travel agencies and tour company managers should really dig down to discover the real reasons people travel. And travel marketers must be experts in the needs and motivations of travelers. Your customer’s wishes are the source of your revenues. Because, the answers for travelling are uniquely personal, not necessarily the superficial…

As Georgians celebrate National Golf Day, golfers must understand myths standing in the way of improving their play and enjoyment of the game. Many amateurs take advice from other amateurs and misconceptions can be passed down from generation to generation. Luckily, Georgia is home to golf experts who possess incredibly helpful knowledge for beginners and seasoned players alike.  

Matt Russell, PXG Atlanta’s Custom Club Fitter and former professional golfer and three-time All-American at Berry College, shares below the top five golf myths golfers across the Peach State should consider before hitting the fairway this summer.    

Myth #1: You have to be good before you play the game.

You don’t need to master the game before hitting the course. People often feel they need to perfect their form and practice before ever stepping onto the green. As a golfer, what makes you better is simply getting outside to play, regardless of your skill level. In Georgia, there is a range of courses for players from beginners or seasoned that are great to excel your game such as North Fulton Golf Course, Bobby Jones Golf Course, Alfred Tup Holmes Golf Course, Brown’s Mill Golf Course and Charlie Yates Golf Course. 

Myth #2: You have to wait before you buy fitted clubs.

Just like any other sport, ill-fitted gear will negatively affect your game, and it’s the same in golf. Using clubs that aren’t suited for you can hinder your performance. Don’t wait to buy fitted clubs and invest early on to improve your game from the beginning.

Myth #3: Golf is seasonal sport 

This is true in most places in the U.S., but in Georgia, we have a unique opportunity that allows us to play golf all year long in all four seasons. The seasonal changes also make the courses a different game. So, playing a round in Spring and Summer on a course will be a lot different in Fall and Winter, making your game more exciting and challenging.  

Myth #4: Golf is an 18-hole endeavor 

In Atlanta and all over Georgia, there are many great nine-hole courses where you can play a good game of golf or even practice on a few holes – Candler Park Golf Course, Bobby Jones Golf Course, John A. White Golf Course and Charlie Yates Golf Course. Don’t feel like you have to commit five hours of your day to play. The game is what you make it depending on your lifestyle and schedule.  

Myth #5: You have to be a member of a private club

Georgia and Atlanta offer a lot of opportunities to play a number of public courses that range at multiple price levels. Golf, no matter what it feels like sometimes is an inclusive game that is open to anyone who wants to enjoy it.  

Bonus Myth: PXG is an expensive brand. 

While PXG is known for its premium quality, it’s more affordable than you might think once you compare prices as you begin to invest in your game. Don’t think you need a full set of golf clubs to play – one or two high-quality clubs are enough. Give yourself time to learn and practice the game before investing in a full set. Investing in a few high-quality clubs early on can enhance your game and ultimately last you longer, so you can keep having fun on the course. 

Following the success of last year’s events, Carvana, an industry pioneer for buying and selling used cars online, is celebrating Mobility Awareness Month with its second annual Pickleball for All event – an accessible pickleball exhibition and clinic for athletes of all abilities. Alongside the Professional Pickleball Association (PPA Tour), the event aims to lower the barrier of entry to the sport of pickleball for the millions of Americans who live with physical or cognitive limitations.

Adding a new dimension to the initiative this year, Carvana is partnering with Special Olympics Georgia (SOGA) to champion local Atlantans with intellectual disabilities and provide them with equipment to help ensure their ongoing inclusion in the sport of pickleball. Sports have always been a force for unification and pickleball is a great example of a sport centered on community, camaraderie and competition that is open to all.

“Special Olympics Georgia is excited to be a part of Pickleball for All at the Vizzy Atlanta Open hosted by the PPA Tour and Carvana,” said Georgia Milton-Sheats, CEO of Special Olympics Georgia. “We appreciate their belief in the organization and our registered athletes. We know our athletes will have an amazing and fun-filled day, while learning more about the sport!”

The event welcomes all ages and skill levels to come play, watch and learn about adaptive pickleball with pros and para-athletes alike. Participants will even hear from a number of able-bodied pros and pickleball para-athletes, including former Motocross athlete and spinal cord injury survivor, Taylor Nichols.

Attendees will have the opportunity to not only participate in skills clinics and open-play across six courts, but also to cheer on fellow participants. In addition to the excitement of the games, there are chances to win exclusive prizes, including tickets to the Vizzy Atlanta Open, PPA Tour swag and pickleball prize packs. Carvana will also be announcing the donation of two sports wheelchairs to a local organization during the event, keeping with the company’s ethos of providing transparent, accessible mobility for all.

“We’re proud to bring another ‘Pickleball for All’ clinic to life at the Vizzy Atlanta Open,” said Ryan Keeton, Carvana Co-Founder and Chief Brand Officer. “With Carvana’s core value of ‘there are no sidelines’ at heart, alongside the PPA Tour, we’re dedicated to breaking down barriers and making sports like pickleball fun and inclusive for everyone.”

The clinic and exhibition will take place on May 15, 2024 from 4:00 p.m – 6 p.m. EST at Life Time Peachtree Corners, located at 6350 Courtside Dr NW Peachtree Corners, Georgia 30092. The event comes in the midst of the Carvana PPA Tour’s Vizzy Atlanta Open where professional pickleball players are hitting the courts leading up to the championship tournament on May 19, 2024. Learn more about the Pickleball For All clinic here.