AMERICOLD REALTY TRUST Q4 FY2024 earnings call

• Customer Service: Received multiple awards, e.g., Russellville, AR facility was Site of the Year by ConAgra; Atlanta Westgate recognized as Frozen Site of the Year by Kraft Heinz; Lowell, AR facility Site of the Year by Butterball for exceptional service. - Workforce Metrics: Perm-to-temp hours ratio at 75-25, associate turnover 32% (10% better than past), associates with <12 months service at 22% (10% improvement from prior year). - Development: Exceeded 2024 announced starts, broke ground on $150M automated expansion in Dallas-Fort Worth; two customer-dedicated automated retail facilities in Lancaster, PA and Plainville, CT; announced $79M import-export hub in Canada at Port St. John, NB, and $34M expansion in Christchurch, NZ. - Technology: Project Orion's successful go-live contributed meaningfully to the bottom line throughout 2024.

In the fourth quarter, same-store NOI was approximately $204 million, a 6% increase from the prior year. Fourth-quarter AFFO was approximately $106 million, or $0.37 per share. Full-year 2024 same-store NOI grew over 11%, and AFFO was $1.47 per share. Rent and storage revenues from fixed commitment storage contracts were ~59% for the quarter, a 680 basis point improvement year-over-year. Same-store economic occupancy was almost 79% in Q4. Same-store warehouse services NOI saw an incremental $125 million in 2024, and the services margin finished at 13%, up almost 7 percentage points from the prior year.

For 2025, AFFO per share is guided to a range of $1.51 to $1.59, with a midpoint of $1.55 (approx 5% increase from 2024). Same-store pool expectations include flat economic occupancy with 100 basis points change, throughput volumes increasing 1-2%, constant currency rent and storage revenue growth 1.5-2.5%, services revenue growth 2.5-3.5%, same-store constant currency NOI growth 4-6%, and services margins >12%. The non-same store pool is expected to generate NOI in the range of 0 to $7 million. Net debt was $3.4 billion at quarter end, with total liquidity of approximately $922 million.

• Market Occupancy: Challenges in predicting occupancy, especially with lapping counter-cyclical inventory from 2023. - Tariffs: Uncertainty around tariff effects on imported goods, though impact on overall business is low. - Lease Expirations: While renewal rates are high, approaching 60% fixed commitments makes incremental increases harder.

Q: Steve Sakwa inquired about the occupancy target and service margin.

A: George and Rob discussed occupancy stabilization and service margins exceeding 12%.

Q: Michael Mueller asked about normalization and occupancy.

A: George, Rob, and Jay talked about seasonal trends and new business pipeline contributing to occupancy improvement.

Q: Blaine Heck questioned tariffs and deportation.

A: George discussed low exposure to imported goods and potential tailwinds from CPKC initiatives.

Q: Michael Carroll asked about the new business pipeline.

A: Robert talked about probability-weighted pipeline and win rates.

Q: Todd Thomas inquired about lease expirations and facility consolidation.

A: Robert and Jay discussed lease renewal rates and facility consolidation benefits.

Q: Nicholas Thillman asked about new business and pricing.

A: Robert talked about activity-based pricing and market share gains.

Q: Greg McGinniss asked about the Port St. John partnership.

A: George and Robert discussed collaboration with DP World and CPKC and future opportunities.

Q: Ki Bin Kim asked about non-same-store NOI and development yields.

A: Jay discussed timing of project ramp-ups and inclusion of land costs in yield projections.