Americold (COLD) Q1 FY26 earnings call: guidance and Q&A

Details on the 12 properties contributed to the JV (location, age, customer mix, quality) and if the 7% cap rate is indicative of the portfolio. Also, EV to EBITDA multiple.

The facilities are representative of the broader North American portfolio, geographically diverse, across supply chain nodes, with a mix of conventional and automation, multi-tenant and dedicated, fixed and transactional contracts. The 7% cap rate is based on a $1.3 billion enterprise value, with an NOI strip of roughly $110 million before fees, and a net NOI in the low $90 million range. The implied EV to EBITDA multiple is a couple of hundred basis points higher than where the stock is currently trading.

“I mean the facilities are a good representation of the broader North American portfolio. So what we see would be facilities that are geographically diverse, facilities that are across each of the nodes in the supply chain, along with some conventional and automation as well.”

asked by Michael Griffin · answered by Robert Chambers

Disaggregate physical occupancy growth between facility consolidation and industry improvement.

There was nominal impact from facility consolidation as the same-store pool was adjusted previously. The physical occupancy growth in Q1 was primarily a result of industry stabilization, new business wins, and market share gains from volumes returning from struggling smaller providers.

“So the impact to physical occupancy in Q1 was a result of industry stabilization along with a combination of new business wins coming in, some market share gains that we've seen as we've seen some of the volumes that had previously been with some of these small providers come back in.”

asked by Brendan Lynch · answered by Robert Chambers

Clarification on the $1.6 billion implied total value given EQT's 70% stake and $1.1 billion proceeds.

The total transaction size for the JV is $1.3 billion. The $1.1 billion in cash proceeds for Americold is expected after accounting for the debt planned for the project and Americold's equity contribution to the venture.

“Well, I mean the total transaction size is $1.3 billion. Given the debt we're planning on putting on the project and our equity contributed to the venture, we think we'll be able to pull out about $1.1 billion of proceeds from the venture.”

asked by Viktor Fediv · answered by Christopher Papa

Details on negotiations, tenant feedback, ability to absorb pricing, or requests for concessions.

Americold successfully renewed 34% of its fixed commitment contracts in Q1, representing $100 million of revenue. Negotiations are constructive, with customers recognizing the value of the fixed commitment structure, allowing Americold to maintain 59% of its total rent and storage revenue from these contracts. Pricing metrics were marginally better than guided, with storage pricing slightly down year-over-year, but the company emphasizes its value proposition (service, technology) over just price.

“I mean, I think the work that we did in the quarter on fixed commitments is one of the -- certainly one of the highlights of the quarter. As we mentioned in our prepared remarks, we were able to work through 34% of all the fixed commitment contracts that were month-to-month or had expirations in 2026.”

asked by Michael Goldsmith · answered by Robert Chambers

Is there a mandate for Americold to contribute specific future investments or development opportunities to the JV, or is it agreed upon by both parties?

Americold intends to scale the JV and will provide "first looks" of development opportunities to the joint venture. However, there is no mandate that prevents Americold from pursuing projects independently if the JV passes on them. The focus is on North American development, including potential expansions in the seed pool and build-to-suits.

“Look, I mean, we want to scale this venture. And so we're -- we'll be working to provide first looks of development opportunities to the joint venture. There's no mandate that if the venture passes on those that we can't do those on our own accord.”

asked by Michael Carroll · answered by Robert Chambers

Is the JV baked into the current guidance, given the conflicting statements in the release and management's comments?

The original guidance did not include the JV or incremental cost optimization initiatives. However, due to the business performing slightly ahead of expectations and the realized cost savings, Americold is confident it can absorb the JV's impact and maintain its original full-year AFFO guidance range of $120 million to $130 million. More granular updates will be provided as the deal nears completion.

“But the punchline here is we're maintaining our guide inclusive of the impact of the joint venture in 2026.”

asked by Michael Mueller · answered by Robert Chambers