Americold Realty Trust NYSE: COLD reported first-quarter 2026 adjusted funds from operations of $0.29 per share, exceeding analyst consensus, as management said occupancy trends showed signs of stabilization despite continued pressure in the cold storage market.
Chief Executive Officer Rob Chambers said the company’s key metrics came in “in line or slightly better” than its original guidance. Physical occupancy was flat year over year in the quarter, a trend Chambers said continued into April and supported management’s view that inventory levels have “largely stabilized.”
Chief Financial Officer Chris Papa, who joined Americold in February, said same-store physical occupancy stabilized while economic occupancy contracted slightly less than anticipated. Warehouse net operating income declined 4.5% in the quarter, which Papa said was expected and reflected pricing pressure in storage, lower throughput and a $2 million headwind from energy costs.
Americold Maintains Guidance After EQT Joint Venture Announcement
The company announced a new joint venture with EQT Partners, which will hold a 70% interest in the venture. Americold will contribute a seed portfolio of 12 U.S. properties valued at more than $1.3 billion, representing a blended cap rate of about 7%, or nearly $3,300 per pallet position, according to Chambers.
Americold expects the transaction to close in the third quarter and generate approximately $1.1 billion in proceeds. Papa said the company plans to use the proceeds to repay all of its 2026 and 2027 U.S. dollar-denominated debt maturities, as well as a portion of its 2028 maturities.
The 12 contributed properties generated approximately $231 million in revenue and $103 million in NOI in fiscal 2025, Papa said. Americold will continue operating the warehouses and expects to receive annual management fees of approximately $15 million to $20 million, in addition to its 30% share of the venture’s NOI.
Papa said Americold ended the first quarter with net debt to pro forma core EBITDA of 7.1 times. On a pro forma basis, the joint venture would reduce that ratio by about three-quarters of a turn, moving the company closer to its target of 6 times or less.
Management said the joint venture could create a full-year AFFO headwind of about $0.10 per share, or roughly $0.06 per share in the second half of 2026, depending on closing timing. However, Chambers said the underlying business is tracking toward the higher end of the original guidance range before accounting for the joint venture. Americold maintained its AFFO guidance range of $1.20 to $1.30 per share, inclusive of the expected transaction impact.
Fixed Commitment Contracts and Pricing Trends
Chambers said Americold renewed 34% of the year’s fixed committed contracts that were either month to month or scheduled to expire in 2026. Those renewals represented about $100 million of revenue and extended the weighted average duration of future expirations.
The company held its total rent and storage revenue from fixed committed contracts at 59%. Chambers said the renewal activity was “one of the highlights of the quarter” and described customer conversations as constructive, even as the industry continues to face excess capacity.
Americold reported customer churn of 2.5%. Chambers said the figure supports management’s view that service remains a high priority for customers when selecting cold chain partners. He said Americold continues to emphasize its “Americold Advantage,” which includes service, technology solutions and additional services, rather than competing primarily on price.
Cost Reductions and Portfolio Optimization Continue
Americold completed the $30 million of indirect labor and SG&A savings initiatives it identified late last year. Papa said the company reduced indirect labor by more than 400 positions in the first quarter and has begun a second phase of work to identify additional savings and improve organizational efficiency.
The company is also continuing to rationalize its real estate portfolio. Chambers said Americold previously identified nine additional facilities to exit or idle in 2026, and two exits were completed in the first quarter. Both facilities were leased properties in the Atlanta market, and the company returned the keys at the end of the lease terms after shifting much of the customer inventory into nearby facilities. Chambers said the buildings will be torn down, removing more than 62,000 pallet positions from the market.
Americold also purchased an existing leased facility at what Chambers described as well below market value and then entered into a 15-year triple-net lease with a new tenant to fully occupy the space. He said the transaction is expected to generate an approximate 10% return on investment. The company also signed additional leasing deals during the quarter, increasing annualized leasing revenue by more than $4 million, or about 7%.
Growth Initiatives Include E-Commerce, QSR and Customer-Led Development
Chambers highlighted several growth initiatives outside the company’s core food storage business. In Australia, Americold expanded its relationship with On the Run to support 600 convenience and petrol locations with tri-temperature warehousing services. The company also renewed its contract with KFC in Australia for an additional 10 years, continuing a relationship that has lasted about 30 years.
Americold’s e-commerce business is growing at a double-digit rate, Chambers said. The company is onboarding three new accounts, shipped more than 1 million packages last year and has expanded capabilities to five sites across the United States. Chambers said Americold can cover 99.5% of the U.S. population in two days or less.
On development, Americold completed expansions in Sydney, Australia, and Christchurch, New Zealand, during the quarter, both on time and on budget. The expansions are dedicated to large grocery retailers.
The company also announced a new customer-dedicated project with McCain Foods in Plover, Wisconsin. McCain is a top-five Americold customer with a relationship of nearly 35 years. The project would add 56,000 pallet positions adjacent to McCain’s manufacturing plant and is supported by a 20-year fixed commitment agreement. Chambers said the project could fit well within the new EQT joint venture.
Management Cites Stabilization but Remains Cautious
During the question-and-answer portion of the call, Chambers said the flat-to-slightly-higher physical occupancy trend was driven by industry stabilization, new business wins and market share gains, rather than facility consolidation. He said Americold has benefited in some cases as smaller operators and new entrants have struggled or exited the market.
Chambers said customers remain cautious about the year but are increasingly discussing investments in innovation, marketing and promotions aimed at consumer value and organic volume growth. He said Americold is not “standing still and waiting for a rebound in demand” and remains focused on deleveraging, portfolio management, cost savings, occupancy growth and strategic customer partnerships.
About Americold Realty Trust NYSE: COLD
Americold Realty Trust is a real estate investment trust specializing in temperature-controlled warehousing and logistics solutions. The company owns, operates, and develops a global network of cold storage facilities designed to support the storage, handling, and distribution of perishable products. Services include blast freezing, repacking, labeling, cross-docking, and transportation management, all integrated to streamline clients' cold chain operations and help ensure product quality and safety from origin to point of consumption.
With roots dating back to the early 20th century, Americold has expanded through strategic acquisitions and facility development to become one of the world's largest publicly traded cold storage providers.
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