AMERICOLD REALTY TRUST Q1 FY2025 earnings call

• Customer Service: Unparalleled focus on customer service remains a top priority. Fixed commitment contracts for rent and storage revenue continued to grow, reaching 60% in Q1. Labor metrics improved with associate turnover finishing the quarter at 29%, an improvement of approximately 300 basis points from the fourth quarter, and the percentage of associates with less than twelve months of service improving 200 basis points. - Pricing: Same-store rent and storage revenue per economic occupied pallet on a constant currency basis increased approximately 2% versus the prior year, and same-store services revenue per throughput pallet increased over 3%. - Development: Managed a high-quality, low-risk pipeline of about $1 billion in opportunities. Announced projects such as a development project in Port Saint John, Canada; an expansion at the Christchurch, New Zealand facility; and progress with automated retail distribution facilities in Lancaster, Pennsylvania, and Plainville, Connecticut. Also completed the acquisition in Houston driven by a new fixed commitment contract with a major retailer.

In Q1 2025, Americold Realty Trust's AFFO per share was $0.34. For the Global Warehouse segment, rent and storage revenue derived from fixed commitment storage contracts increased to 60% in the first quarter, a sixteenth straight quarterly record. Same-store rent and storage revenue per economic occupied pallet on a constant currency basis increased approximately 2% compared to the prior year, and same-store services revenue per throughput pallet increased over 3%.

For full year 2025, AFFO per share is expected to be between $1.42 and $1.52. Global Warehouse same-store constant currency revenue growth is expected to be in the range of flat to up 2%. Non-same store pool is expected to generate NOI in the range of $7 million to $13 million. At quarter end, total net debt outstanding was $3.7 billion, with total liquidity of approximately $651 million. Completed a public bond offering of $400 million and exited the Superfrio joint venture in Brazil.

• Tariffs: Direct impacts are relatively modest, but indirect impacts such as on consumer confidence are significant. The ongoing trade rhetoric and changing tariff situation have affected consumer confidence, causing customers to adjust product portfolios and drive inventory levels down. The Michigan consumer sentiment index is near levels seen during the 2008 financial crisis and peak of COVID.

Q: Samir Khanal asked about the impact of tariffs and pricing.

A: George Chappelle said the direct impacts of tariffs are modest, but indirect impacts like on consumer confidence are significant, leading to revised guidance. Rob Chambers added that pricing is contractual and Americold provides value to customers.

Q: Steve Sakwa inquired about the physical vs economic occupancy gap.

A: George Chappelle and Rob Chambers stated that fixed commitment contracts continue to grow, customers value the flexibility of the gap as it provides a win-win structure.

Q: Mike Mueller asked about acquisition multiples and development returns.

A: George Chappelle said he couldn't provide acquisition multiples, and Rob Chambers mentioned that underwriting expectations remain unchanged, focusing on low-risk developments