Is the 860 bps economic-to-physical occupancy spread a good run rate? Can economic occupancy return to the low 80s over time, and what is the ultimate trajectory?

The tightening of the spread to high single digits (860 bps) is stable and reasonable, with potential for another 100 bps improvement. Economic occupancy can return to the 80s over time through disciplined pricing and new business wins, which the current strategy supports. “certainly, we think occupancy can get back into the 80s. We were there for a long time. We think there's the opportunity to get back there.”

Is the physical occupancy increase mainly new business, or also inventory restocking? Is throughput improvement also due to new customer wins, or broader?

Throughput is largely driven by new wins in fast-turning product categories (retail in Europe, convenience in Asia Pac, e-commerce). Physical occupancy gains are a mix of market share and new business wins, driven by strong execution, and are expected to continue. “I mean, the physical occupancy gains are something that was a mix of both market share and new business wins, driven by really, really strong execution. So we would expect that to continue, and we're encouraged to see those trends all head in the right direction.”

How are food costs and inflation trending? What are customers saying about promotions? Are there specific product areas suffering/stabilizing?

The environment remains challenging with high input costs for customers and ongoing inflation/high interest rates for consumers. However, there are "green shoots" like significant wage rate growth for lower-income consumers. Customers are using promotions to drive volume and innovating with new SKUs (higher protein, fiber, smaller sizes) which drives incremental safety stock. Americold is not relying on demand recovery for guidance. “I think it's still a challenging environment out there. But there are some green shoots.”

COLD

Americold Realty Trust (COLD) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Real Estate· Aug 6, 2026

Source: earnings call transcript

Executive summary

Americold Realty Trust Q2 FY26 — Strong Execution Drives AFFO Beat and Raised Guidance

Americold delivered a strong Q2 FY26, exceeding AFFO expectations and raising full-year guidance, driven by robust execution against its strategic priorities. The company saw significant sequential and year-over-year improvements in physical and economic occupancy, coupled with increased pricing for storage and handling, despite a challenging inflationary environment. Strategic portfolio management, including the EQT joint venture and divestitures, is strengthening the balance sheet and reallocating capital to higher-return opportunities, positioning Americold for sustainable long-term growth.

Highlights

AFFO per share came in ahead of expectations at $0.35, marking the fourth consecutive quarter of meeting or exceeding analyst consensus.
Physical occupancy increased over 200 basis points sequentially and nearly 300 basis points year-over-year.
Economic occupancy was up year-over-year, with the gap to physical occupancy tightening by 240 basis points to 860 basis points.
Pricing for both stores and handling increased year-over-year, while the churn rate remained low at 2.1%.
Full-year AFFO guidance was raised to $1.26 to $1.32 per share, an increase of $0.04 at the midpoint, offsetting $0.05 dilution from the EQT joint venture.

Concerns

The company recorded a $298.8 million noncash impairment charge related to the wind-down of operations at its Lancaster and Plainville facilities.
Ongoing cost pressures from power rates are being experienced, though mechanisms are in place to pass through adjustments.
The broader industry environment remains challenging due to food inflation, higher input costs for customers, and consumers facing persistent inflation and high interest rates.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year AFFO per share	$1.26 to $1.32 per share high materiality	FY26 · 2026	High
Full-year same-store revenue (recast pool)	$2.03 billion to $2.09 billion high materiality	FY26 · 2026	High
Full-year same-store NOI (recast pool)	$660 million to $695 million high materiality	FY26 · 2026	High
Full-year core EBITDA	$570 million to $600 million high materiality	FY26 · 2026	High
Full-year interest expense	$155 million to $160 million medium materiality	FY26 · 2026	High
Full-year same-store revenue growth (recast pool)	-1.1% to +1.8% high materiality	FY26 · 2026	High
Full-year same-store NOI growth (recast pool)	-5% to +0.1% high materiality	FY26 · 2026	High
Full-year same-store occupancy (recast pool)	100 bps up to 200 bps down medium materiality	FY26 · 2026	Medium

COLD operating KPIs by quarter

COLD operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Mar 2026 Q1 FY26	This call Jun 2026 Q2 FY26	Change vs prior quarter
Customer churn rate	2.5% Our customer churn rate remains low at 2.5%, further validating our view that service remains a top priority to our customers when considering their cold chain partner. Source: earnings call transcript	2.1% You can see this reflected in both our churn rate, which remains low at 2.1% and in the consistency of our storage revenue from fixed commitments, which remained stable at 58% for the quarter. Source: earnings call transcript	-0.4 pt

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Disposition volume remaining several hundred million dollars Q2 FY26

properties currently listed for sale

Deals & partnerships

EQT Strategic joint venture for 12 assets $1.3 billion

Americold will contribute 12 assets at a blended cap rate of approximately 7% or $3,300 per pallet position; teams working through final closing conditions.

Undisclosed Sale of two previously idled facilities $27 million

Both facilities will be removed from the cold storage industry, eliminating 31,000 power positions.

Undisclosed customer (Ahold) Mutual agreement to wind down operations at Lancaster and Plainville facilities

Strategically reallocate capital to other more productive uses; current contribution to NOI was negligible; broader commercial agreement reached to extend and expand customer's business at other assets across the network.

Good Ranchers Renewal of long-standing relationship and expansion of services

Direct-to-consumer protein provider expanded from a single site to now using 5 facilities across Americold's network for nationwide distribution.

Capital programs

McCain Foods plant adjacent project announced $163 million

dedicated to McCain Foods and anchored by a 20-year fixed commitment agreement

Port St. John, Canada facility completed

grand opening in June; developed in partnership with both CPKC and DP World; integrated import-export facility, first of its kind globally

Dallas-Fort Worth expansion project underway

remains on budget and on track for an opening later this year

Risks & headwinds

Challenging industry environment current

ongoing food inflation, higher input costs for customers, consumers facing inflation and high interest rates

Mitigation:focused on controlling what is controllable; strong execution, market share gains, new business wins, cost structure optimization; any demand recovery would be upside

Power cost pressures Q2 FY26

cost pressures on rate

Mitigation:mechanisms to pass through adjustments for increased costs; operational opportunities to keep power from escalating

Underperforming development projects Q2 FY26

$298.8 million noncash impairment charge

Mitigation:wind-down operations at Lancaster and Plainville facilities; reallocate capital to other more productive uses; focus development spend on lower-risk customer-driven projects

What to watch in Q3 FY26

EQT Joint Venture Closing

Q3 FY26

Current On track to close in Q3 FY26

Target Transaction closed, debt repaid

Why it matters

Significant deleveraging event, impacts financial flexibility and leverage ratio.

Our teams are working through the final closing conditions, and we expect to have the transaction completed in the third quarter.

Find out whether COLD delivers this. Inve re-checks your case every morning.

Q&A highlights

How much of the physical occupancy increase is structural market share gains versus temporary inventory rebuilding? Can these gains be sustained through the back half of the year and into 2027?

The increase is primarily due to successful new business wins (record amount in the last 18 months) and market share gains, especially in North America, by focusing on service excellence and holding steady on rates while smaller competitors cut prices. Customers are returning to Americold due to service reliability. These gains are considered sustainable.

“I think it's sustainable market share gains and new business wins that's driving that physical occupancy growth.”

asked by Michael Goldsmith · answered by Robert Chambers

2 min read 6 chapters

Detailed narrative

Strategic Joint Venture with EQT

Americold is on track to close its $1.3 billion strategic joint venture with EQT in Q3 FY26, contributing 12 assets at a blended cap rate of approximately 7% or $3,300 per pallet position. Americold will hold a 30% interest, recording net income from the JV and earning an annual management fee.

Proceeds of approximately $1.1 billion will repay outstanding debt, including all 2026-2028 US dollar-denominated maturities, reducing total debt by 25% and lowering leverage by 0.75x towards a target of 6x or less.

Active Portfolio Management

The company sold two previously idled facilities for $27 million, removing 31,000 power positions. Since launching this initiative, 10 underperforming facilities have been exited, with 15 more awaiting exit or actively marketed. Americold also mutually agreed with a customer to wind down operations at its Lancaster and Plainville facilities, resulting in a $298.8 million noncash impairment charge and classifying them as held for sale.

This reallocates capital to more productive uses and strengthens customer relationships through broader commercial agreements.

Expansion into Adjacent Sectors

Americold is extending capabilities into underpenetrated sectors like retail in Europe, QSR and convenience in Asia Pac, e-commerce, and pet food. New business wins include Good Ranchers, a direct-to-consumer protein provider, expanding from one to five facilities across the network. These initiatives leverage operational expertise for fast-turning products and differentiate Americold from smaller competitors lacking resources for operationally intensive sectors.

Disciplined Development Spend

The company announced a new $163 million plant-adjacent project for McCain Foods, anchored by a 20-year fixed commitment agreement. The Port St. John, Canada facility, developed in partnership with CPKC and DP World, opened in June, offering an integrated rail, port, and cold storage solution.

The Dallas-Fort Worth expansion remains on budget and on track for a late 2026 opening, reflecting a focus on lower-risk, customer-driven projects.

Cost Structure Optimization

Americold completed the first phase of its cost-saving initiative, reducing indirect headcount by 400 positions (over 10% globally) for $30 million in annual savings. A new 'fit-for-purpose' initiative targets an additional $25 million in savings by Q1 FY27, primarily from SG&A and support functions, building on prior investments in labor and technology. SG&A was down year-over-year this quarter, offsetting wage inflation.

ESG Upgrade and Industry Stabilization

MSCI upgraded Americold's ESG rating by four categories from BB to AA in early July, reflecting maturity in sustainability efforts. Management noted continued signs of industry stabilization, with inventories aligning with demand and no further destocking. The company's strategy of holding steady on rates and focusing on service excellence has led to market share gains and new business wins, particularly in Europe and Asia Pac.

Analysts noted a $0.10 gross guidance increase before the EQT JV dilution, reflecting underlying business strength.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.