Skip to content
    COLD
    Earnings call· Mar 2026(Q1 FY26)

    AMERICOLD REALTY TRUST Q1 FY26 earnings call COLD

    May 7, 2026 Source

    Executive summary

    Americold Q1 FY26 — Strategic JV Formed, AFFO Exceeds Consensus

    Americold delivered Q1 FY26 AFFO above consensus, driven by stabilizing physical occupancy and successful contract renewals. A significant joint venture with EQT Partners was announced, contributing 12 properties for $1.3 billion and generating $1.1 billion in proceeds to deleverage the balance sheet. The company is actively managing its portfolio, streamlining operations with $30 million in Q1 savings, and pursuing organic growth in new sectors, while maintaining its full-year AFFO guidance despite the JV's impact.

    Highlights

    5

    • Delivered AFFO of $0.29 per share, exceeding analyst consensus.

    • Formed a new joint venture with EQT Partners, contributing 12 properties worth over $1.3 billion, with Americold receiving approximately $1.1 billion in proceeds to pay down debt.

    • Physical occupancy was flat year-over-year, indicating inventory stabilization and market share gains.

    • Successfully renewed 34% of fixed committed contracts, representing approximately $100 million of revenue, maintaining 59% of total rent and storage revenue from fixed commitments.

    • Identified and fully executed $30 million in potential savings within indirect labor and SG&A in Q1.

    Concerns

    3

    • Net debt to pro forma core EBITDA was 7.1x at quarter-end, still above the target of 6x or less, though the JV will reduce it by about 3/4 of a turn.

    • Q1 warehouse NOI decreased 4.5% due to ongoing pricing pressure, lower throughput, and a $2 million headwind from energy costs.

    • The JV is estimated to be a full-year headwind to AFFO of approximately $0.10 per share, or $0.06 per share for H2 2026, though offset by business performance and cost savings.

    Guidance & targets

    3
    CategoryTargetConfidence
    Full-year AFFO
    $120 million to $130 million
    high materiality
    High
    Net Debt to Pro Forma Core EBITDA
    6x or less
    high materiality
    High
    AFFO per share impact from EQT JV
    approximately $0.10 per share
    medium materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Europe
    Reflects positive impact of new business won by the international team over the past couple of quarters.
    Physical occupancy: increased by over 800 basis pointsThroughput: increased from prior year
    		————
    Asia Pacific
    Throughput: increased from prior year
    		————

    Operational metrics

    21
    AFFO per share
    $0.29
    Q1 FY26

    Exceeded analyst consensus.

    Net Debt to Pro Forma Core EBITDA
    7.1x
    Q1 FY26

    At the end of Q1. Expected to reduce by about 3/4 of a turn post-JV transaction.

    Customer churn rate
    2.5%
    Q1 FY26

    Remains low, validating service as a top priority for customers.

    Fixed committed contracts renewed
    34%
    Q1 FY26

    Represents approximately $100 million of revenue and extends weighted average duration of future expirations.

    Total rent and storage revenue from fixed committed contracts
    59%
    Q1 FY26

    Maintained solid performance during a critical renewal period.

    Cost savings
    $30 million
    Q1 FY26

    All initiatives were completed as expected in Q1.

    Indirect labor positions reduced
    over 400
    Q1 FY26

    Part of the cost savings initiatives.

    Annualized leasing revenue increase
    over $4 million7%
    Q1 FY26

    Reflected on Page 24 of the financial supplement.

    Warehouse NOI decrease
    4.5%
    Q1 FY26

    As expected, driven by pricing pressure, lower throughput, and energy costs.

    Energy cost headwind
    $2 million
    Q1 FY26

    Modest headwind in Q1.

    Power expense as % of same-store warehouse costs
    6%
    Q1 FY26

    Company leverages AI to strategically pull power from the grid during nonpeak hours.

    E-commerce business growth rate
    double-digit rate
    Q1 FY26

    Currently onboarding 3 new accounts.

    E-commerce packages shipped
    over 1 million
    Last year

    Reflects growing e-commerce capability.

    E-commerce sites
    5
    Q1 FY26

    Expanded capability across the country.

    E-commerce US population coverage
    99.5%
    Q1 FY26

    Ability to cover in 2 days or less.

    JV properties revenue
    $231 million
    FY25

    Revenue generated by the 12 properties contributed to the EQT JV.

    JV properties NOI
    $103 million
    FY25

    NOI generated by the 12 properties contributed to the EQT JV.

    JV management fee
    $15 million to $20 million
    Each year

    Americold will receive this fee for operating the assets.

    JV Americold NOI share
    30%
    Ongoing

    Americold's share of NOI generated by the venture, recorded under Income (Loss) from Investments in Partially Owned Entities.

    Americold trading valuation per pallet position
    $1,500
    Current

    Compared to the JV implied valuation of $3,300 per pallet position, highlighting a significant premium for the JV assets.

    Acquired facility return on investment
    approximate 10%
    Q1 FY26

    Achieved by purchasing an existing leased facility below market value and entering into a 15-year triple net lease.

    Industry KPIs

    4
    MetricValueDetails
    Occupancy rateflat%
    Net debt adjusted EBITDA7.1xx
    Investment cap rate stabilized yieldapproximately 7%%
    Development starts dollar value and mix56,000 pallet positionspallet positions

    Orderbook & backlog

    2
    McCain Foods Plover development project56,000 pallet positionsQ1 FY26

    New customer-dedicated project backed by a 20-year fixed commitment agreement, potentially fitting into the EQT joint venture.

    Pallet positions removed from Atlanta market62,000 pallet positionsQ1 FY26

    From two facilities exited in Q1, which were leased and returned to the owner for demolition.

    Deals & partnerships

    3
    EQT PartnersFormation of a new joint venture for cold storage properties$1.3 billion

    EQT will hold a 70% interest, Americold contributes a seed pool of 12 properties across the U.S. worth over $1.3 billion. Americold will continue to operate the assets and provide asset management and development expertise. The JV represents a blended cap rate of approximately 7%.

    On the RunExpansion of tri-temperature warehousing services

    Expanded coverage to 600 of their locations in Australia, supporting their national network as a convenience and petrol provider.

    KFCContract renewal for tri-temperature warehousing and distribution services10 years

    Renewed contract in Australia for an additional 10 years. Americold will continue to support their restaurant network of approximately 500 stores on the East Coast of Australia, distributing all food and nonfood materials. Implementing a technology solution for sales forecast, replenishment orders, and inventory optimization.

    Capital programs

    2
    Sydney expansioncompleted

    Benefit: critical capacity

    Delivered on time and on budget during the quarter. Dedicated to large grocery retailers.

    Christchurch expansioncompleted

    Benefit: critical capacity

    Delivered on time and on budget during the quarter. Dedicated to large grocery retailers.

    Risks & headwinds

    6
    Challenging macro environmentongoing

    continued

    Mitigation: Focused on strategic priorities, cost savings, portfolio management, and organic growth.

    Increased industry capacityongoing

    more than historically

    Mitigation: Actively managing portfolio by exiting/idling underperforming properties (e.g., 62,000 pallet positions removed from Atlanta market).

    Pricing pressure in storage marketQ1 FY26

    ongoing

    Mitigation: Leading with value proposition (Americold Advantage: service, technology solutions) rather than solely competing on price; maintaining high fixed commitment contract percentage.

    Lower throughputQ1 FY26

    Q1 FY26

    Mitigation: Driving organic growth through new business wins and market share gains from struggling smaller operators.

    Energy costsQ1 FY26

    $2 million headwind

    Mitigation: Almost all customer contracts have pass-through mechanisms; locking in power rates in deregulated states (25% of portfolio); leveraging AI for strategic power pulling during nonpeak hours.

    Soft market conditions impacting development projectsongoing

    Certain projects impacted more than others

    Mitigation: Reviewing expansion and development project assumptions around timing of stabilization dates, cash flows, and expected yields.

    What to watch in Q2 FY26

    4

    JV transaction closing

    Q3 FY26
    CurrentAnticipated close Q3
    TargetClosed

    Why it matters

    The closing of the EQT joint venture will significantly reduce Americold's net debt and impact its AFFO, marking a major step towards its leverage target.

    We anticipate closing the transaction in the third quarter, at which point Americold will receive approximately $1.1 billion in proceeds, which we intend to use to pay down a portion of our outstanding debt.

    Q&A highlights

    6

    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

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Priorities & Balance Sheet Strengthening

    Americold is focused on five key strategic priorities, with deleveraging the balance sheet being foundational. The company announced a new joint venture with EQT Partners, contributing 12 U.S. properties valued at over $1.3 billion. This transaction is expected to generate approximately $1.1 billion in proceeds for Americold, which will be used to repay 2026, 2027, and a portion of 2028 U.S. dollar-denominated debt maturities, significantly reducing leverage towards the 6x target.

    02

    Portfolio Management & Optimization

    The company continues to actively manage its real estate portfolio. Two of the nine identified facilities for exit or idling in 2026 were completed in Q1, removing over 62,000 pallet positions from the Atlanta market. Americold also purchased an existing leased facility below market value and subsequently entered into a 15-year triple net lease with a new tenant, achieving an approximate 10% return on investment. Annualized leasing revenue increased by over $4 million or 7% in the quarter.

    03

    Operational Efficiency & Cost Savings

    Americold successfully executed $30 million in identified savings within indirect labor and SG&A in Q1, reducing over 400 indirect labor positions. A second phase of cost savings initiatives has commenced, aiming to further optimize operations and enhance efficiency across the organizational structure. The company is cautious to maintain high customer service levels while pursuing these cost reductions.

    04

    Organic Growth & Market Expansion

    The company is driving organic growth by leveraging its operational expertise. In Australia, it expanded its relationship with On the Run to support 600 locations with tri-temperature warehousing and renewed its contract with KFC for an additional 10 years, covering 500 stores and implementing a new technology solution for sales forecasting and inventory optimization. In North America, new deals were closed in pet food, floral, and pharmaceutical sectors, and the e-commerce business is growing at a double-digit rate, shipping over 1 million packages last year from 5 sites covering 99.5% of the U.S. population.

    05

    Development & Strategic Partnerships

    Expansions in Sydney, Australia, and Christchurch, New Zealand, were delivered on time and on budget in Q1, adding critical capacity dedicated to large grocery retailers. The new partnership with EQT will facilitate future development opportunities, such as a customer-dedicated project with McCain Foods in Plover, Wisconsin, adding 56,000 pallet positions backed by a 20-year fixed commitment agreement, which is being considered for the joint venture.

    06

    Industry Trends & Customer Behavior

    Customers remain cautious but are increasing investments in innovation, marketing, and promotions to drive organic volume growth. Large food manufacturers are consolidating inventory closer to production facilities, a trend Americold is well-positioned to capitalize on. Smaller, less sophisticated operators continue to struggle, leading to market share gains for Americold as volumes return to industry leaders.

    AI-generated summary of the company’s earnings call. Not investment advice.