What Americold Realty Trust (COLD) Said on Its Q3 Earnings Call

Key Points

• Americold raised its 2026 AFFO outlook to $1.31–$1.33 per share after reporting Q3 AFFO of $0.35 per share, as occupancy, pricing and throughput improved. Management said conditions are stabilizing, but consumer demand remains weak and a broad market recovery has not yet begun.
• Q3 physical occupancy rose to 70%, up 460 basis points year over year, while same-store warehouse revenue increased 4.9% and NOI rose 5.5%. A record 15.9% handling margin reflected productivity gains, though higher power costs pressured results.
• The $1.3 billion EQT joint venture generated about $1.15 billion in net proceeds, which Americold used to repay debt and push its next scheduled maturity to 2029; the deal is expected to cut annual interest expense by nearly $50 million. It will also dilute AFFO by about $0.03 per share in Q4 and an additional $0.07–$0.08 in 2027.

Americold Realty Trust NYSE: COLD raised its full-year earnings outlook after higher occupancy, pricing and throughput helped lift third-quarter warehouse results, though management said consumer demand remains weak and a broader market recovery has yet to take hold.

The cold-storage company reported adjusted funds from operations, or AFFO, of $0.35 per share for the quarter and increased its 2026 forecast to $1.31 to $1.33 per share. Chief Executive Officer Rob Chambers said it was the second consecutive quarter in which Americold raised its full-year outlook.

“We would still characterize the current environment as stabilizing, but not yet inflecting,” Chambers said. He attributed most of the company’s occupancy improvement to market share gains and customer wins, rather than a broader industry rebound.

Occupancy and margins improve

Physical occupancy reached 70% in the third quarter, up 460 basis points from a year earlier and 150 basis points from the second quarter. Economic occupancy, which includes space paid for under commitments, rose 210 basis points year over year to 78.5%. Chambers said portfolio management initiatives accounted for about 50 basis points of the physical occupancy gain.

Rent and storage revenue per economic pallet increased 1.2%, while services revenue per throughput pallet rose 1.9%. The company’s handling margin reached a record 15.9%, up 230 basis points from a year earlier, aided by productivity gains and earlier indirect labor initiatives, Chief Financial Officer Chris Papa said.

Same-store warehouse revenue increased 4.9% year over year, and same-store net operating income, or NOI, rose 5.5%. Power costs climbed 13%, pressuring margins, though Papa said the earnings impact was partly mitigated by surcharges, procurement strategies and efficiency initiatives. Warehouse figures were reported in constant currency and exclude sites contributed to the EQT joint venture.

EQT transaction reduces debt

Americold closed its $1.3 billion joint venture with EQT on Aug. 31. Papa said the company received approximately $1.15 billion in net proceeds and immediately used them to pay down debt, eliminating maturities through 2028. Its next scheduled maturity is in January 2029.

The transaction is expected to reduce annual interest expense by nearly $50 million. Americold’s leverage ratio fell to 6.2 times in the third quarter, or 6.3 times including its proportional share of joint venture debt, a reduction of about one turn from the previous quarter. Papa said the company’s long-term stabilized leverage target is six times or below.

The venture will also dilute AFFO. Papa estimated an impact of approximately $0.03 per share in the fourth quarter and $0.07 to $0.08 of incremental dilution in 2027. Americold owns 30% of the venture and expects to earn $15 million to $20 million annually in management fees.

Separately, Americold exited three assets during the quarter for about $50 million in cash proceeds. Since starting its portfolio management program last year, it has exited 13 sites for nearly $100 million. Another 14 sites are available for sale, with several hundred million dollars in potential proceeds, Chambers said. He cautioned that their pricing would vary and should not be expected to match the capitalization rate of the EQT transaction.

Outlook and expansion plans

For 2026, Americold raised its same-store revenue forecast to $2.06 billion to $2.1 billion and projected same-store NOI of $680 million to $700 million. The NOI range represents an increase of approximately $13 million at the midpoint and would leave the result essentially flat year over year, Papa said.

Management is planning for the 2027 demand environment to look broadly similar to 2026. Chambers said AFFO per share is expected to be lowest in the first quarter and increase sequentially through the year, reflecting joint venture dilution, seasonal occupancy changes, some retail customer transitions and higher first-quarter administrative costs. The company plans to issue formal 2027 guidance on its fourth-quarter call.

Americold is also pursuing customers beyond its core food business. Chambers said the company recently won business from an aerospace company and sees potential opportunities in pharmaceuticals, chemicals and electronics. The aerospace customer will use an existing facility that also stores food, he said, adding that requirements differ by customer and product.

Within food distribution, Americold signed a five-year agreement with Little Caesars in Europe to handle procurement, inventory management and distribution. Chambers said the company’s development pipeline includes additional opportunities, but interest rates, construction costs and pricing conditions have kept it on the sidelines for now.

About Americold Realty Trust (NYSE:COLD)

Americold Realty Trust, Inc is a real estate investment trust that owns, operates and develops temperature-controlled warehouses and distribution facilities. Through its operating platform, Americold Logistics, the company provides refrigerated and frozen storage, handling, transportation and supply-chain services for food producers, retailers, distributors and other customers.

Its facilities support the movement of perishable products, including meat, seafood, dairy, fruit, vegetables, prepared foods and pharmaceuticals.

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