Three Months Ended June 30, | Change | |||||||||
Dollars and units in thousands, except per pallet data | 2023 Actual |
2023 Constant Currency(1)
| 2022 Actual | Actual | Constant Currency | |||||
TOTAL WAREHOUSE SEGMENT | ||||||||||
Number of total warehouses | 237 | 240 | n/a | n/a | ||||||
Rent and storage | $ | 275,183 | $ | 278,327 | $ | 242,351 | 13.5 | % | 14.8 | % |
Warehouse services | 305,987 | 309,388 | 322,028 | (5.0) | % | (3.9) | % | |||
Total revenue | $ | 581,170 | $ | 587,715 | $ | 564,379 | 3.0 | % | 4.1 | % |
Global Warehouse contribution (NOI) | $ | 172,842 | $ | 174,676 | $ | 150,985 | 14.5 | % | 15.7 | % |
Global Warehouse margin | 29.7 | % | 29.7 | % | 26.8 | % | 299 bps | 297 bps | ||
Global Warehouse rent and storage metrics: | ||||||||||
Average economic occupied pallets | 4,580 | n/a | 4,203 | 9.0 | % | n/a | ||||
Average physical occupied pallets | 4,187 | n/a | 3,888 | 7.7 | % | n/a | ||||
Average physical pallet positions | 5,424 | n/a | 5,432 | (0.2) | % | n/a | ||||
Economic occupancy percentage | 84.4 | % | n/a | 77.4 | % | 705 bps | n/a | |||
Physical occupancy percentage | 77.2 | % | n/a | 71.6 | % | 562 bps | n/a | |||
Total rent and storage revenue per economic occupied pallet | $ | 60.08 | $ | 60.76 | $ | 57.64 | 4.2 | % | 5.4 | % |
Total rent and storage revenue per physical occupied pallet | $ | 65.72 | $ | 66.48 | $ | 62.34 | 5.4 | % | 6.6 | % |
Global Warehouse services metrics: | ||||||||||
Throughput pallets | 9,118 | n/a | 10,056 | (9.3) | % | n/a | ||||
Total warehouse services revenue per throughput pallet | $ | 33.56 | $ | 33.93 | $ | 32.02 | 4.8 | % | 6.0 | % |
SAME STORE WAREHOUSE | ||||||||||
Number of same store warehouses | 220 | 220 | n/a | n/a | ||||||
Global Warehouse same store revenue: | ||||||||||
Rent and storage | $ | 256,892 | $ | 259,801 | $ | 229,696 | 11.8 | % | 13.1 | % |
Warehouse services | 296,205 | 299,473 | 308,574 | (4.0) | % | (2.9) | % | |||
Total same store revenue | $ | 553,097 | $ | 559,274 | $ | 538,270 | 2.8 | % | 3.9 | % |
Global Warehouse same store contribution (NOI) | $ | 171,864 | $ | 173,584 | $ | 152,543 | 12.7 | % | 13.8 | % |
Global Warehouse same store margin | 31.1 | % | 31.0 | % | 28.3 | % | 273 bps | 270 bps | ||
Global Warehouse same store rent and storage metrics: | ||||||||||
Average economic occupied pallets | 4,335 | n/a | 4,018 | 7.9 | % | n/a | ||||
Average physical occupied pallets | 3,983 | n/a | 3,707 | 7.4 | % | n/a | ||||
Average physical pallet positions | 5,110 | n/a | 5,153 | (0.8) | % | n/a | ||||
Economic occupancy percentage | 84.8 | % | n/a | 78.0 | % | 687 bps | n/a | |||
Physical occupancy percentage | 77.9 | % | n/a | 71.9 | % | 599 bps | n/a | |||
Same store rent and storage revenue per economic occupied pallet | $ | 59.26 | $ | 59.93 | $ | 57.17 | 3.6 | % | 4.8 | % |
Same store rent and storage revenue per physical occupied pallet | $ | 64.50 | $ | 65.23 | $ | 61.96 | 4.1 | % | 5.3 | % |
Global Warehouse same store services metrics: | ||||||||||
Throughput pallets | 8,678 | n/a | 9,571 | (9.3) | % | n/a | ||||
Same store warehouse services revenue per throughput pallet | $ | 34.13 | $ | 34.51 | $ | 32.24 | 5.9 | % | 7.0 | % |
Three Months Ended June 30, | Change | |||||||
Dollars and units in thousands, except per pallet data | 2023 Actual |
2023 Constant Currency(1)
| 2022 Actual | Actual | Constant Currency | |||
NON-SAME STORE WAREHOUSE | ||||||||
Number of non-same store warehouses(2)
| 17 | 20 | n/a | n/a | ||||
Global Warehouse non-same store revenue: | ||||||||
Rent and storage | $ | 18,291 | $ | 18,526 | $ | 12,655 | n/r | n/r |
Warehouse services | 9,782 | 9,915 | 13,454 | n/r | n/r | |||
Total non-same store revenue | $ | 28,073 | $ | 28,441 | $ | 26,109 | n/r | n/r |
Global Warehouse non-same store contribution (NOI) | $ | 978 | $ | 1,092 | $ | (1,558) | n/r | n/r |
Global Warehouse non-same store margin | 3.5 | % | 3.8 | % | (6.0) | % | n/r | n/r |
Global Warehouse non-same store rent and storage metrics: | ||||||||
Average economic occupied pallets | 245 | n/a | 187 | n/r | n/a | |||
Average physical occupied pallets | 204 | n/a | 181 | n/r | n/a | |||
Average physical pallet positions | 314 | n/a | 280 | n/r | n/a | |||
Economic occupancy percentage | 78.0 | % | n/a | 66.7 | % | n/r | n/a | |
Physical occupancy percentage | 65.0 | % | n/a | 64.6 | % | n/r | n/a | |
Non-same store rent and storage revenue per economic occupied pallet | $ | 74.61 | $ | 75.57 | $ | 67.77 | n/r | n/r |
Non-same store rent and storage revenue per physical occupied pallet | $ | 89.57 | $ | 90.72 | $ | 70.04 | n/r | n/r |
Global Warehouse non-same store services metrics: | ||||||||
Throughput pallets | 440 | n/a | 485 | n/r | n/a | |||
Non-same store warehouse services revenue per throughput pallet | $ | 22.21 | $ | 22.52 | $ | 27.72 | n/r | n/r |
Six Months Ended June 30, | Change | |||||||||
Dollars in thousands | 2023 Actual | 2023 Constant Currency(1) | 2022 Actual | Actual | Constant currency | |||||
TOTAL WAREHOUSE SEGMENT | ||||||||||
Number of total warehouses | 237 | 240 | n/a | n/a | ||||||
Global Warehouse revenue: | ||||||||||
Rent and storage | $ | 546,591 | $ | 554,239 | $ | 472,108 | 15.8 | % | 17.4 | % |
Warehouse services | 629,631 | 637,989 | 633,196 | (0.6) | % | 0.8 | % | |||
Total revenue | $ | 1,176,222 | $ | 1,192,228 | $ | 1,105,304 | 6.4 | % | 7.9 | % |
Global Warehouse contribution (NOI) | $ | 347,669 | $ | 352,040 | $ | 297,243 | 17.0 | % | 18.4 | % |
Global Warehouse margin | 29.6 | % | 29.5 | % | 26.9 | % | 267 bps | 264 bps | ||
Units in thousands except per pallet data | ||||||||||
Global Warehouse rent and storage metrics: | ||||||||||
Average economic occupied pallets | 4,566 | n/a | 4,189 | 9.0 | % | n/a | ||||
Average physical occupied pallets | 4,188 | n/a | 3,846 | 8.9 | % | n/a | ||||
Average physical pallet positions | 5,421 | n/a | 5,435 | (0.3) | % | n/a | ||||
Economic occupancy percentage | 84.2 | % | n/a | 77.1 | % | 716 bps | n/a | |||
Physical occupancy percentage | 77.3 | % | n/a | 70.8 | % | 650 bps | n/a | |||
Total rent and storage revenue per economic occupied pallet | $ | 119.70 | $ | 121.37 | $ | 112.69 | 6.2 | % | 7.7 | % |
Total rent and storage revenue per physical occupied pallet | $ | 130.50 | $ | 132.33 | $ | 122.75 | 6.3 | % | 7.8 | % |
Global Warehouse services metrics: | ||||||||||
Throughput pallets | 18,770 | n/a | 19,913 | (5.7) | % | n/a | ||||
Total warehouse services revenue per throughput pallet | $ | 33.54 | $ | 33.99 | $ | 31.80 | 5.5 | % | 6.9 | % |
SAME STORE WAREHOUSE | ||||||||||
Number of same store warehouses | 220 | 220 | n/a | n/a | ||||||
Global Warehouse same store revenue: | ||||||||||
Rent and storage | $ | 514,283 | $ | 521,233 | $ | 447,781 | 14.9 | % | 16.4 | % |
Warehouse services | 610,220 | 618,034 | 606,598 | 0.6 | % | 1.9 | % | |||
Total same store revenue | $ | 1,124,503 | $ | 1,139,267 | $ | 1,054,379 | 6.7 | % | 8.1 | % |
Global Warehouse same store contribution (NOI) | $ | 352,872 | $ | 356,912 | $ | 297,664 | 18.5 | % | 19.9 | % |
Global Warehouse same store margin | 31.4 | % | 31.3 | % | 28.2 | % | 315 bps | 310 bps | ||
Units in thousands except per pallet data | ||||||||||
Global Warehouse same store rent and storage metrics: | ||||||||||
Average economic occupied pallets | 4,330 | n/a | 3,998 | 8.3 | % | n/a | ||||
Average physical occupied pallets | 3,984 | n/a | 3,663 | 8.7 | % | n/a | ||||
Average physical pallet positions | 5,110 | n/a | 5,157 | (0.9) | % | n/a | ||||
Economic occupancy percentage | 84.7 | % | n/a | 77.5 | % | 722 bps | n/a | |||
Physical occupancy percentage | 78.0 | % | n/a | 71.0 | % | 692 bps | n/a | |||
Same store rent and storage revenue per economic occupied pallet | $ | 118.77 | $ | 120.37 | $ | 112.01 | 6.0 | % | 7.5 | % |
Same store rent and storage revenue per physical occupied pallet | $ | 129.10 | $ | 130.84 | $ | 122.23 | 5.6 | % | 7.0 | % |
Global Warehouse same store services metrics: | ||||||||||
Throughput pallets | 17,868 | n/a | 18,902 | (5.5) | % | n/a | ||||
Same store warehouse services revenue per throughput pallet | $ | 34.15 | $ | 34.59 | $ | 32.09 | 6.4 | % | 7.8 | % |
Six Months Ended June 30, | Change | |||||||
Dollars in thousands | 2023 Actual | 2023 Constant Currency(1) | 2022 Actual | Actual | Constant currency | |||
NON-SAME STORE WAREHOUSE | ||||||||
Number of non-same store warehouses(2)
| 17 | 20 | n/a | n/a | ||||
Global Warehouse non-same store revenue: | ||||||||
Rent and storage | $ | 32,308 | $ | 33,007 | $ | 24,326 | n/r | n/r |
Warehouse services | 19,412 | 19,955 | 26,599 | n/r | n/r | |||
Total non-same store revenue | $ | 51,720 | $ | 52,962 | $ | 50,925 | n/r | n/r |
Global Warehouse non-same store contribution (NOI) | $ | (5,205) | $ | (4,870) | $ | (422) | n/r | n/r |
Global Warehouse non-same store margin | (10.1) | % | (9.2) | % | (0.8) | % | n/r | n/r |
Units in thousands except per pallet data | ||||||||
Global Warehouse non-same store rent and storage metrics: | ||||||||
Average economic occupied pallets | 236 | n/a | 192 | n/r | n/a | |||
Average physical occupied pallets | 205 | n/a | 183 | n/r | n/a | |||
Average physical pallet positions | 310 | n/a | 278 | n/r | n/a | |||
Economic occupancy percentage | 76.1 | % | n/a | 69.0 | % | n/r | n/a | |
Physical occupancy percentage | 65.9 | % | n/a | 65.8 | % | n/r | n/a | |
Non-same store rent and storage revenue per economic occupied pallet | $ | 136.76 | $ | 139.71 | $ | 126.92 | n/r | n/r |
Non-same store rent and storage revenue per physical occupied pallet | $ | 157.84 | $ | 161.25 | $ | 133.18 | n/r | n/r |
Global Warehouse non-same store services metrics: | ||||||||
Throughput pallets | 902 | n/a | 1,011 | n/r | n/a | |||
Non-same store warehouse services revenue per throughput pallet | $ | 21.52 | $ | 22.13 | $ | 26.31 | n/r | n/r |
Americold Realty Trust, Inc. and Subsidiaries | ||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||
(In thousands, except shares and per share amounts) | ||||
June 30, 2023 | December 31, 2022 | |||
Assets | ||||
Property, buildings and equipment: | ||||
Land | $ | 797,381 | $ | 786,975 |
Buildings and improvements | 4,373,257 | 4,245,607 | ||
Machinery and equipment | 1,438,824 | 1,407,874 | ||
Assets under construction | 494,617 | 526,811 | ||
7,104,079 | 6,967,267 | |||
Accumulated depreciation | (2,042,566) | (1,901,450) | ||
Property, buildings and equipment - net | 5,061,513 | 5,065,817 | ||
Operating lease right-of-use assets | 356,636 | 352,553 | ||
Accumulated depreciation - operating leases | (91,095) | (76,334) | ||
Operating leases - net | 265,541 | 276,219 | ||
Financing leases: | ||||
Buildings and improvements | 13,544 | 13,546 | ||
Machinery and equipment | 139,629 | 127,009 | ||
153,173 | 140,555 | |||
Accumulated depreciation - financing leases | (67,163) | (57,626) | ||
Financing leases - net | 86,010 | 82,929 | ||
Cash, cash equivalents and restricted cash | 48,873 | 53,063 | ||
Accounts receivable - net of allowance of $15,891 and $15,951 at June 30, 2023 and December 31, 2022, respectively
| 465,571 | 430,042 | ||
Identifiable intangible assets - net | 914,173 | 925,223 | ||
Goodwill | 1,036,332 | 1,033,637 | ||
Investments in partially owned entities and other | 36,957 | 78,926 | ||
Other assets | 194,421 | 158,705 | ||
Assets of discontinued operations - held for sale | 106,368 | - | ||
Total assets | $ | 8,215,759 | $ | 8,104,561 |
Liabilities and equity | ||||
Liabilities: | ||||
Borrowings under revolving line of credit | $ | 723,436 | $ | 500,052 |
Accounts payable and accrued expenses | 527,073 | 557,540 | ||
Senior unsecured notes and term loans - net of deferred financing costs of $11,848and $13,044, in the aggregate, at June 30, 2023 and December 31, 2022, respectively
| 2,590,127 | 2,569,281 | ||
Sale-leaseback financing obligations | 166,654 | 171,089 | ||
Financing lease obligations | 76,502 | 77,561 | ||
Operating lease obligations | 255,819 | 264,634 | ||
Unearned revenue | 31,180 | 32,046 | ||
Pension and postretirement benefits | 1,580 | 1,531 | ||
Deferred tax liability - net | 133,236 | 135,098 | ||
Multi-employer pension plan withdrawal liability | 7,641 | 7,851 | ||
Liabilities of discontinued operations - held for sale | 112,752 | - | ||
Total liabilities | 4,626,000 | 4,316,683 | ||
Equity | ||||
Stockholders' equity: | ||||
Common stock, $0.01 par value per share - 500,000,000 authorized shares;270,186,276and 269,814,956 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively
| 2,702 | 2,698 | ||
Paid-in capital | 5,203,891 | 5,191,969 | ||
Accumulated deficit and distributions in excess of net earnings | (1,641,872) | (1,415,198) | ||
Accumulated other comprehensive loss | 10,377 | (6,050) | ||
Total stockholders' equity | 3,575,098 | 3,773,419 | ||
Noncontrolling interests: | ||||
Noncontrolling interests in Operating Partnership | 14,661 | 14,459 | ||
Total equity | 3,589,759 | 3,787,878 | ||
Total liabilities and equity | $ | 8,215,759 | $ | 8,104,561 |
Americold Realty Trust, Inc. and Subsidiaries | ||||||||
Condensed Consolidated Statements of Operations (Unaudited) | ||||||||
(In thousands, except per share amounts) | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Revenues: | ||||||||
Rent, storage and warehouse services | $ | 581,170 | $ | 564,379 | $ | 1,176,222 | $ | 1,105,304 |
Transportation services | 58,072 | 81,891 | 126,150 | 160,801 | ||||
Third-party managed services | 10,368 | 83,486 | 23,727 | 169,346 | ||||
Total revenues | 649,610 | 729,756 | 1,326,099 | 1,435,451 | ||||
Operating expenses: | ||||||||
Rent, storage and warehouse services cost of operations | 408,328 | 413,394 | 828,553 | 808,061 | ||||
Transportation services cost of operations | 48,263 | 68,306 | 104,681 | 138,687 | ||||
Third-party managed services cost of operations | 8,968 | 79,765 | 21,248 | 162,124 | ||||
Depreciation and amortization | 84,892 | 82,690 | 169,916 | 165,310 | ||||
Selling, general and administrative | 53,785 | 56,273 | 116,640 | 113,875 | ||||
Acquisition, cyber incident and other, net | 27,235 | 5,663 | 34,382 | 15,738 | ||||
Gain from sale of real estate | (2,528) | - | (2,337) | - | ||||
Total operating expenses | 628,943 | 706,091 | 1,273,083 | 1,403,795 | ||||
Operating income | 20,667 | 23,665 | 53,016 | 31,656 | ||||
Other (expense) income: | ||||||||
Interest expense | (36,431) | (26,545) | (70,854) | (52,318) | ||||
Loss on debt extinguishment, modifications and termination of derivative instruments | (627) | (627) | (1,172) | (1,244) | ||||
Other, net | (415) | (962) | 1,018 | 1,396 | ||||
Loss from investments in partially owned entities | (709) | (359) | (1,357) | (823) | ||||
Impairment of related party loan receivable | (21,972) | - | (21,972) | - | ||||
Loss on put option | (56,576) | - | (56,576) | - | ||||
Loss from continuing operations before income taxes | (96,063) | (4,828) | (97,897) | (21,333) | ||||
Income tax (expense) benefit: | ||||||||
Current | (1,923) | (817) | (3,900) | (1,998) | ||||
Deferred | 1,459 | 12,886 | 5,080 | 14,775 | ||||
Total income tax (expense) benefit | (464) | 12,069 | 1,180 | 12,777 | ||||
Net (loss) income: | ||||||||
Net (loss) income from continuing operations | (96,527) | 7,241 | (96,717) | (8,556) | ||||
Loss from discontinued operations, net of tax | (8,275) | (3,288) | (10,656) | (4,936) | ||||
Net (loss) income | $ | (104,802) | $ | 3,953 | $ | (107,373) | $ | (13,492) |
Net (loss) income attributable to noncontrolling interests | (78) | 18 | (87) | (20) | ||||
Net (loss) income attributable to Americold Realty Trust, Inc. | $ | (104,724) | $ | 3,935 | $ | (107,286) | $ | (13,472) |
Weighted average common stock outstanding - basic | 270,462 | 269,497 | 270,387 | 269,464 | ||||
Weighted average common stock outstanding - diluted | 270,462 | 270,384 | 270,387 | 269,464 | ||||
Net (loss) income per common share from continuing operations - basic | $ | (0.36) | $ | 0.03 | $ | (0.36) | $ | (0.03) |
Net loss per common share from discontinued operations - basic | $ | (0.03) | $ | (0.02) | $ | (0.04) | $ | (0.02) |
Basic (loss) earnings per share(1)
| $ | (0.39) | $ | 0.01 | $ | (0.40) | $ | (0.05) |
Net (loss) income per common share from continuing operations - diluted | $ | (0.36) | $ | 0.03 | $ | (0.36) | $ | (0.03) |
Net loss per common share from discontinued operations - diluted | $ | (0.03) | $ | (0.02) | $ | (0.04) | $ | (0.02) |
Diluted (loss) earnings per share(1)
| $ | (0.39) | $ | 0.01 | $ | (0.40) | $ | (0.05) |
Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and AFFO | ||||||||||||
(In thousands, except per share amounts) | ||||||||||||
Three Months Ended | YTD | |||||||||||
Q2 23 | Q1 23 | Q4 22 | Q3 22 | Q2 22 | 2023 | |||||||
Net (loss) income | $ | (104,802) | $ | (2,571) | $ | 2,955 | $ | (8,937) | $ | 3,953 | $ | (107,373) |
Adjustments: | ||||||||||||
Real estate related depreciation | 54,740 | 54,541 | 53,094 | 53,139 | 51,738 | 109,281 | ||||||
(Gain) loss on sale of real estate | (2,528) | 191 | (21) | 5,710 | - | (2,337) | ||||||
Net loss on asset disposals | - | - | 175 | 893 | 4 | - | ||||||
Impairment charges on real estate assets | - | - | - | 3,407 | - | - | ||||||
Our share of reconciling items related to partially owned entities | 232 | 903 | 1,209 | 822 | 1,346 | 1,135 | ||||||
NAREIT FFO(b)
| $ | (52,358) | $ | 53,064 | $ | 57,412 | $ | 55,034 | $ | 57,041 | $ | 706 |
Adjustments: | ||||||||||||
Net loss on sale of non-real estate assets | 289 | 420 | 2,274 | 310 | 72 | 709 | ||||||
Acquisition, cyber incident and other, net | 27,235 | 7,147 | 11,899 | 4,874 | 5,663 | 34,382 | ||||||
Goodwill impairment | - | - | - | 3,209 | - | - | ||||||
Loss on debt extinguishment, modifications and termination of derivative instruments | 627 | 545 | 933 | 1,040 | 627 | 1,172 | ||||||
Foreign currency exchange loss (gain) | 212 | (458) | (2,477) | 2,487 | 1,290 | (246) | ||||||
Gain on extinguishment of New Market Tax Credit Structure | - | - | - | - | (3,410) | - | ||||||
Loss on deconsolidation of subsidiary contributed to LATAM joint venture | - | - | - | - | 4,148 | - | ||||||
Our share of reconciling items related to partially owned entities | (27) | 128 | 127 | 136 | (36) | 101 | ||||||
Loss from discontinued operations, net of tax | 8,275 | - | - | - | - | 8,275 | ||||||
Impairment of related party loan receivable | 21,972 | - | - | - | - | 21,972 | ||||||
Loss on put option | 56,576 | - | - | - | - | 56,576 | ||||||
Gain on sale of LATAM JV | (304) | - | - | - | - | (304) | ||||||
Core FFO(b)
| $ | 62,497 | $ | 60,846 | $ | 70,168 | $ | 67,090 | $ | 65,395 | $ | 123,343 |
Adjustments: | ||||||||||||
Amortization of deferred financing costs and pension withdrawal liability | 1,279 | 1,240 | 1,305 | 1,222 | 1,160 | 2,519 | ||||||
Amortization of below/above market leases | 375 | 402 | 534 | 540 | 549 | 777 | ||||||
Non-real estate asset impairment | - | - | 764 | - | - | - | ||||||
Straight-line net rent | 361 | (491) | 333 | 133 | 77 | (130) | ||||||
Deferred income tax benefit | (1,459) | (3,621) | (3,412) | (4,374) | (12,886) | (5,080) | ||||||
Share-based compensation expense | 4,639 | 6,970 | 5,036 | 6,720 | 7,032 | 11,609 | ||||||
Non-real estate depreciation and amortization | 30,152 | 30,483 | 29,373 | 30,530 | 30,952 | 60,635 | ||||||
Maintenance capital expenditures | (22,590) | (16,244) | (26,701) | (22,586) | (20,118) | (38,834) | ||||||
Our share of reconciling items related to partially owned entities | 303 | 304 | 819 | 57 | 1,713 | 607 | ||||||
Adjusted FFO(b)
| $ | 75,557 | $ | 79,889 | $ | 78,219 | $ | 79,332 | $ | 73,874 | 155,446 |
Reconciliation of Net Income (Loss) to NAREIT FFO, Core FFO, and AFFO (continued) | ||||||||||||
(In thousands except per share amounts) | ||||||||||||
Three Months Ended | YTD | |||||||||||
Q2 23 | Q1 23 | Q4 22 | Q3 22 | Q2 22 | 2023 | |||||||
NAREIT Funds from operations(b)
| $ | (52,358) | $ | 53,064 | $ | 57,412 | $ | 55,034 | $ | 57,041 | $ | 706 |
Core FFO(b)
| $ | 62,497 | $ | 60,846 | $ | 70,168 | $ | 67,090 | $ | 65,395 | $ | 123,343 |
Adjusted FFO(b)
| $ | 75,557 | $ | 79,889 | $ | 78,219 | $ | 79,332 | $ | 73,874 | $ | 155,446 |
Reconciliation of weighted average shares: | ||||||||||||
Weighted average basic shares for net income calculation | 270,462 | 270,230 | 269,826 | 269,586 | 269,497 | 270,387 | ||||||
Dilutive stock options and unvested restricted stock units | 695 | 778 | 944 | 1,105 | 887 | 688 | ||||||
Weighted average dilutive shares | 271,157 | 271,008 | 270,770 | 270,691 | 270,384 | 271,075 | ||||||
NAREIT FFO - basic per share(b)
| $ | (0.19) | $ | 0.20 | $ | 0.21 | $ | 0.20 | $ | 0.21 | $ | 0.01 |
NAREIT FFO - diluted per share(b)
| $ | (0.19) | $ | 0.20 | $ | 0.21 | $ | 0.20 | $ | 0.21 | $ | 0.01 |
Core FFO - basic per share (b)
| $ | 0.23 | $ | 0.23 | $ | 0.26 | $ | 0.25 | $ | 0.24 | $ | 0.46 |
Core FFO - diluted per share(b)
| $ | 0.23 | $ | 0.22 | $ | 0.26 | $ | 0.25 | $ | 0.24 | $ | 0.46 |
Adjusted FFO - basic per share (b)
| $ | 0.28 | $ | 0.30 | $ | 0.29 | $ | 0.29 | $ | 0.27 | $ | 0.57 |
Adjusted FFO - diluted per share(b)
| $ | 0.28 | $ | 0.29 | $ | 0.29 | $ | 0.29 | $ | 0.27 | $ | 0.57 |
Three Months Ended - Recasted | YTD Recasted | |||||||||
(In thousands except per share amounts)
| Q1 23 | Q4 22 | Q3 22 | Q2 22 | 2023 | |||||
NAREIT FFO | $ | 52,432 | $ | 56,457 | $ | 54,466 | $ | 56,018 | $ | 74 |
Core FFO | $ | 62,547 | $ | 71,157 | $ | 68,004 | $ | 67,811 | $ | 125,044 |
Adjusted FFO applicable to common shareholders | $ | 81,506 | $ | 78,717 | $ | 80,207 | $ | 74,490 | $ | 157,063 |
NAREIT FFO - basic per share | $ | 0.19 | $ | 0.21 | $ | 0.20 | $ | 0.21 | - | |
NAREIT FFO - diluted per share | $ | 0.19 | $ | 0.21 | $ | 0.20 | $ | 0.21 | - | |
Core FFO - basic per share | $ | 0.23 | $ | 0.26 | $ | 0.25 | $ | 0.25 | $ | 0.46 |
Core FFO - diluted per share | $ | 0.23 | $ | 0.26 | $ | 0.25 | $ | 0.25 | $ | 0.46 |
Adjusted FFO - basic per share | $ | 0.30 | $ | 0.29 | $ | 0.30 | $ | 0.28 | $ | 0.58 |
Adjusted FFO - diluted per share | $ | 0.30 | $ | 0.29 | $ | 0.30 | $ | 0.28 | $ | 0.58 |
Reconciliation of Net (Loss) Income to EBITDA, NAREIT EBITDAre, and Core EBITDA | ||||||||||||
(In thousands) | ||||||||||||
Three Months Ended | Trailing Twelve Months Ended | |||||||||||
Q2 23 | Q1 23 | Q4 22 | Q3 22 | Q2 22 | Q2 23 | |||||||
Net (loss) income | $ | (104,802) | $ | (2,571) | $ | 2,955 | $ | (8,937) | $ | 3,953 | $ | (113,355) |
Adjustments: | ||||||||||||
Depreciation and amortization | 84,892 | 85,024 | 82,467 | 83,669 | 82,690 | 336,052 | ||||||
Interest expense | 36,431 | 34,423 | 33,407 | 30,402 | 26,545 | 134,663 | ||||||
Income tax benefit | 464 | (1,644) | (2,691) | (3,368) | (12,069) | (7,239) | ||||||
EBITDA | $ | 16,985 | $ | 115,232 | $ | 116,138 | $ | 101,766 | $ | 101,119 | $ | 350,121 |
Adjustments: | ||||||||||||
Loss (gain) on sale of real estate | (2,528) | 191 | (21) | 5,710 | - | 3,352 | ||||||
Adjustment to reflect share of EBITDAre of partially owned entities | 3,085 | 2,883 | 5,019 | 3,383 | 6,215 | 14,370 | ||||||
NAREIT EBITDAre(a)
| $ | 17,542 | $ | 118,306 | $ | 121,136 | $ | 110,859 | $ | 107,334 | $ | 367,843 |
Adjustments: | ||||||||||||
Acquisition, cyber incident and other, net | 27,235 | 7,147 | 11,899 | 4,874 | 5,663 | 51,155 | ||||||
Loss from investments in partially owned entities | 709 | 3,029 | 2,101 | 1,440 | 3,647 | 7,279 | ||||||
Impairment of indefinite and long-lived assets | - | - | 764 | 6,616 | - | 7,380 | ||||||
Foreign currency exchange (gain) loss | 212 | (458) | (2,477) | 2,487 | 1,290 | (236) | ||||||
Share-based compensation expense | 4,639 | 6,970 | 5,036 | 6,720 | 7,032 | 23,365 | ||||||
Loss on debt extinguishment, modifications and termination of derivative instruments | 627 | 545 | 933 | 1,040 | 628 | 3,145 | ||||||
Loss (gain) on real estate and other asset disposals | 289 | 420 | 2,449 | 1,203 | 76 | 4,361 | ||||||
Gain on extinguishment of New Market Tax Credit Structure | - | - | - | - | (3,410) | - | ||||||
Loss on deconsolidation of subsidiary contributed to LATAM joint venture | - | - | - | - | 4,148 | - | ||||||
Reduction in EBITDAre from partially owned entities | (3,085) | (2,883) | (5,019) | (3,383) | (6,215) | (14,370) | ||||||
Gain from sale of partially owned entities | (304) | - | - | - | - | (304) | ||||||
Loss from discontinued operations, net of tax | 8,275 | - | - | - | - | 8,275 | ||||||
Impairment of related party loan receivable | 21,972 | - | - | - | - | 21,972 | ||||||
Loss on put option | 56,576 | - | - | - | - | 56,576 | ||||||
Core EBITDA | $ | 134,687 | $ | 133,076 | $ | 136,822 | $ | 131,856 | $ | 120,193 | 536,441 |
Three Months Ended - Recasted | Trailing Twelve Months Ended - Recasted | ||||
(In thousands) | Q1 23 | Q4 22 | Q3 22 | Q2 22 | Q2 2023 |
NAREIT EBITDAre | $116,872 | $117,602 | $108,487 | $102,460 | $360,503 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Segment revenues: | ||||||||
Warehouse | $ | 581,170 | $ | 564,379 | $ | 1,176,222 | $ | 1,105,304 |
Transportation | 58,072 | 81,891 | 126,150 | 160,801 | ||||
Third-party managed | 10,368 | 83,486 | 23,727 | 169,346 | ||||
Total revenues | 649,610 | 729,756 | 1,326,099 | 1,435,451 | ||||
Segment contribution: | ||||||||
Warehouse | 172,842 | 150,985 | 347,669 | 297,243 | ||||
Transportation | 9,809 | 13,585 | 21,469 | 22,114 | ||||
Third-party managed | 1,400 | 3,721 | 2,479 | 7,222 | ||||
Total segment contribution | 184,051 | 168,291 | 371,617 | 326,579 | ||||
Reconciling items: | ||||||||
Depreciation and amortization | (84,892) | (82,690) | (169,916) | (165,310) | ||||
Selling, general and administrative | (53,785) | (56,273) | (116,640) | (113,875) | ||||
Acquisition, cyber incident and other, net | (27,235) | (5,663) | (34,382) | (15,738) | ||||
Gain from sale of real estate | 2,528 | - | 2,337 | - | ||||
Interest expense | (36,431) | (26,545) | (70,854) | (52,318) | ||||
Loss on debt extinguishment, modifications and termination of derivative instruments | (627) | (627) | (1,172) | (1,244) | ||||
Other (expense) income, net | (415) | (962) | 1,018 | 1,396 | ||||
Loss from investments in partially owned entities | (709) | (359) | (1,357) | (823) | ||||
Impairment of related party receivable | (21,972) | - | (21,972) | - | ||||
Loss on put option
| (56,576) | - | (56,576) | - | ||||
Loss from continuing operations before income taxes | $ | (96,063) | $ | (4,828) | $ | (97,897) | $ | (21,333) |
Notes and Definitions |
We calculate funds from operations, or FFO, in accordance with the standards established by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. NAREIT defines FFO as net income or loss determined in accordance with U.S. GAAP, excluding extraordinary items as defined under U.S. GAAP and gains or losses from sales of previously depreciated operating real estate assets, plus specified non-cash items, such as real estate asset depreciation and amortization, real estate asset impairment and our share of reconciling items for partially owned entities. We believe that FFO is helpful to investors as a supplemental performance measure because it excludes the effect of depreciation, amortization and gains or losses from sales of real estate, all of which are based on historical costs, which implicitly assumes that the value of real estate diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, FFO can facilitate comparisons of operating performance between periods and among other equity REITs. |
We calculate core funds from operations, or Core FFO, as FFO adjusted for the effects of gain or loss on the sale of non-real estate assets, acquisition, cyber incident and other, net, goodwill impairment, loss on debt extinguishment, modifications and termination of derivative instruments,and foreign currency exchange gains and losses, discontinued operations from assets held for sale, impairment of related party loan receivable, and loss on fair value of put. We also adjust for the impact of Core FFO attributable to gain on extinguishment of New Market Tax Structure, loss on deconsolidation of subsidiary contributed to the LATAM joint venture, our share of reconciling items related to partially owned entities, and gain from disposition of partially owned entities. We believe that Core FFO is helpful to investors as a supplemental performance measure because it excludes the effects of certain items which can create significant earnings volatility, but which do not directly relate to our core business operations. We believe Core FFO can facilitate comparisons of operating performance between periods, while also providing a more meaningful predictor of future earnings potential.
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However, because FFO and Core FFO add back real estate depreciation and amortization and do not capture the level of maintenance capital expenditures necessary to maintain the operating performance of our properties, both of which have material economic impacts on our results from operations, we believe the utility of FFO and Core FFO as a measure of our performance may be limited. |
We calculate adjusted funds from operations, or Adjusted FFO, as Core FFO adjusted for the effects of amortization of deferred financing costs and pension withdrawal liability, amortization of above or below market leases, non-real estate asset impairment, straight-line net rent, benefit or expense from deferred income taxes, stock-based compensation expense, non-real estate depreciation and amortization and maintenance capital expenditures. We also adjust for AFFO attributable to our share of reconciling items of partially owned entities and discontinued operations. We believe that Adjusted FFO is helpful to investors as a meaningful supplemental comparative performance measure of our ability to make incremental capital investments in our business and to assess our ability to fund distribution requirements from our operating activities. |
FFO, Core FFO and Adjusted FFO are used by management, investors and industry analysts as supplemental measures of operating performance of equity REITs. FFO, Core FFO and Adjusted FFO should be evaluated along with U.S. GAAP net income and net income per diluted share (the most directly comparable U.S. GAAP measures) in evaluating our operating performance. FFO, Core FFO and Adjusted FFO do not represent net income or cash flows from operating activities in accordance with U.S. GAAP and are not indicative of our results of operations or cash flows from operating activities as disclosed in our consolidated statements of operations included in our quarterly and annual reports. FFO, Core FFO and Adjusted FFO should be considered as supplements, but not alternatives, to our net income or cash flows from operating activities as indicators of our operating performance. Moreover, other REITs may not calculate FFO in accordance with the NAREIT definition or may interpret the NAREIT definition differently than we do. Accordingly, our FFO may not be comparable to FFO as calculated by other REITs. In addition, there is no industry definition of Core FFO or Adjusted FFO and, as a result, other REITs may also calculate Core FFO or Adjusted FFO, or other similarly-captioned metrics, in a manner different than we do. The table above reconciles FFO, Core FFO and Adjusted FFO to net (loss) income, which is the most directly comparable financial measure calculated in accordance with U.S. GAAP. |
We calculate EBITDA for Real Estate, or EBITDAre, in accordance with the standards established by the Board of Governors of NAREIT, defined as, earnings before interest expense, taxes, depreciation and amortization, net gain on sale of real estate, net of withholding taxes, and adjustment to reflect share of EBITDAre of partially owned entities. EBITDAre is a measure commonly used in our industry, and we present EBITDAre to enhance investor understanding of our operating performance. We believe that EBITDAre provides investors and analysts with a measure of operating results unaffected by differences in capital structures, capital investment cycles and useful life of related assets among otherwise comparable companies. |
We also calculate our Core EBITDA as EBITDAre further adjusted for acquisition, cyber and other, net, loss from investments in partially owned entities, impairment of indefinite and long-lived assets (when applicable), foreign currency exchange loss or gain, stock-based compensation expense, loss on debt extinguishment, modifications and termination of derivative instruments, net gain on other asset disposals, reduction in EBITDAre from partially owned entities, discontinued operations, impairment of related party loan receivable, loss on fair value of put, gain on extinguishment of new market tax credit structure, and loss on deconsolidation of subsidiary contributed to LATAM joint venture.. We believe that the presentation of Core EBITDA provides a measurement of our operations that is meaningful to investors because it excludes the effects of certain items that are otherwise included in EBITDAre but which we do not believe are indicative of our core business operations. EBITDAre and Core EBITDA are not measurements of financial performance under U.S. GAAP, and our EBITDAre and Core EBITDA may not be comparable to similarly titled measures of other companies. You should not consider our EBITDAre and Core EBITDA as alternatives to net income or cash flows from operating activities determined in accordance with U.S. GAAP. Our calculations of EBITDAre and Core EBITDA have limitations as analytical tools, including:
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We use Core EBITDA and EBITDAre as measures of our operating performance and not as measures of liquidity. The table on page 21 of our financial supplement reconciles EBITDA, EBITDAre and Core EBITDA to net income, which is the most directly comparable financial measure calculated in accordance with U.S. GAAP. |
Net debt to proforma Core EBITDA is calculated using total debt, plus capital lease obligations, less cash and cash equivalents, divided by pro-forma Core EBITDA. We calculate pro-forma Core EBITDA as Core EBITDA further adjusted for acquisitions, dispositions and for rent expense associated with lease buy-outs and lease exits. The pro-forma adjustment for acquisitions reflects the Core EBITDA for the period of time prior to acquisition. The pro-forma adjustment for leased facilities exited or purchased reflects the add-back for the related lease expense from the last year. The pro-forma adjustment for dispositions reduces Core EBITDA for the earnings of facilities disposed of or exited during the year, including the strategic exit of certain third-party managed business. |
We define our "same store" population once a year at the beginning of the current calendar year. Our same store population includes properties that were owned or leased for the entirety of two comparable periods and that have reported at least twelve months of consecutive normalized operations prior to January 1 of the prior calendar year. We define "normalized operations" as properties that have been open for operation or lease after development or significant modification, including the expansion of a warehouse footprint or a warehouse rehabilitation subsequent to an event, such as a natural disaster or similar event causing disruption to operations. In addition, our definition of "normalized operations" takes into account changes in the ownership structure (e.g., purchase of acquired properties will be included in the "same store" population if owned by us as of the first business day of each year, of the prior calendar year and still owned by us as of the end of the current reporting period, unless the property is under development). The "same store" pool is also adjusted to remove properties that were sold or entering development subsequent to the beginning of the current calendar year. As such, the "same store" population for the period ended December 31, 2022 includes all properties that we owned at January 2, which had both been owned and had reached "normalized operations" by January 2, 2022.
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We calculate "same store revenue" as revenues for the same store population. We calculate "same store contribution (NOI)" as revenues for the same store population less its cost of operations (excluding any depreciation and amortization, impairment charges, corporate-level selling, general and administrative expenses, corporate-level acquisition, cyber incident and other, net and gain or loss on sale of real estate). In order to derive an appropriate measure of period-to-period operating performance, we also calculate our same store contribution (NOI) on a constant currency basis to remove the effects of foreign currency exchange rate movements by using the comparable prior period exchange rate to translate from local currency into U.S. dollars for both periods. We evaluate the performance of the warehouses we own or lease using a "same store" analysis, and we believe that same store contribution (NOI) is helpful to investors as a supplemental performance measure because it includes the operating performance from the population of properties that is consistent from period to period and also on a constant currency basis, thereby eliminating the effects of changes in the composition of our warehouse portfolio and currency fluctuations on performance measures. Same store contribution (NOI) is not a measurement of financial performance under U.S. GAAP. In addition, other companies providing temperature-controlled warehouse storage and handling and other warehouse services may not define same store or calculate same store contribution (NOI) in a manner consistent with our definition or calculation. Same store contribution (NOI) should be considered as a supplement, but not as an alternative, to our results calculated in accordance with U.S. GAAP. The tables beginning on page 33 of our financial supplement provide reconciliations for same store revenues and same store contribution (NOI). |
We define "maintenance capital expenditures" as capital expenditures made to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology. Maintenance capital expenditures include capital expenditures made to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology. Maintenance capital expenditures do not include acquisition costs contemplated when underwriting the purchase of a building or costs which are incurred to bring a building up to Americold's operating standards. See the tables on page 30 of our financial supplement for additional information regarding our maintenance capital expenditures. |
We define "total real estate debt" as the aggregate of the following: mortgage notes, senior unsecured notes, term loans and borrowings under our revolving line of credit. We define "total debt outstanding" as the aggregate of the following: total real estate debt, sale-leaseback financing obligations and financing lease obligations. See the tables on page 23 of our financial supplement for additional information regarding our indebtedness. |
All quarterly amounts and non-GAAP disclosures within this filing shall be deemed unaudited. |
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Americold Realty Trust published this content on 03 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2023 20:06:40 UTC.