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Americold Realty Trust – ‘8-K’ for 2/20/20 – ‘EX-99.2’

On:  Thursday, 2/20/20, at 4:14pm ET   ·   For:  2/20/20   ·   Accession #:  1628280-20-1890   ·   File #:  1-34723

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  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 2/20/20  Americold Realty Trust            8-K:2,7,8,9 2/20/20   15:5M                                     Workiva Inc Wde… FA01/FA

Current Report   —   Form 8-K   —   Sect. 13 / 15(d) – SEA’34
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                      HTML     36K 
 2: EX-99.1     Miscellaneous Exhibit                               HTML    392K 
 3: EX-99.2     Miscellaneous Exhibit                               HTML    868K 
 4: EX-99.3     Miscellaneous Exhibit                               HTML     16K 
15: R1          Cover Page Document                                 HTML     49K 
13: XML         IDEA XML File -- Filing Summary                      XML     13K 
12: XML         XBRL Instance -- americoldform8-kq419ea_htm          XML     16K 
11: EXCEL       IDEA Workbook of Financial Reports                  XLSX      6K 
 6: EX-101.CAL  XBRL Calculations -- art-20200220_cal                XML      7K 
 7: EX-101.DEF  XBRL Definitions -- art-20200220_def                 XML      9K 
 8: EX-101.LAB  XBRL Labels -- art-20200220_lab                      XML     69K 
 9: EX-101.PRE  XBRL Presentations -- art-20200220_pre               XML     38K 
 5: EX-101.SCH  XBRL Schema -- art-20200220                          XSD     16K 
10: JSON        XBRL Instance as JSON Data -- MetaLinks               12±    19K 
14: ZIP         XBRL Zipped Folder -- 0001628280-20-001890-xbrl      Zip    146K

‘EX-99.2’   —   Miscellaneous Exhibit

This Exhibit is an HTML Document rendered as filed.  [ Alternative Formats ]

 <!   C:   C: 
  Exhibit  
Exhibit 99.2
a1286694suppcoveroptiona2.jpg

    
 
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Financial Supplement
Fourth Quarter 2019
                                        


Table of Contents
 
 
 
 
 
Overview
PAGE
Corporate Profile
3
Earnings Release
5
Selected Quarterly Financial Data
15
 
 
Financial Information
 
Consolidated Balance Sheets
17
Consolidated Statements of Operations
18
Reconciliation of Net Income (Loss) to NAREIT FFO, Core FFO and AFFO
19
Reconciliation of Net Income (Loss) to EBITDA, NAREIT EBITDAre, and Core EBITDA
21
Acquisition, Litigation and Other
22
Debt Detail and Maturities
23
 
 
Operations Overview
 
Revenue and Contribution by Segment
24
Global Warehouse Economic and Physical Occupancy Trend
25
Global Warehouse Portfolio
26
Fixed Commitment and Lease Maturity Schedules
28
Recurring Maintenance Capital Expenditures, Repair and Maintenance Expenses and External Growth, Expansion and Development Capital Expenditures
30
 
 
Total Global Warehouse Segment Financial and Operating Performance
 
Global Warehouse Segment Financial Performance
31
Same-store Financial Performance
33
Same-store Key Operating Metrics
35
 
 
External Growth and Capital Deployment
37
 
 
2020 Guidance
38
 
 
Notes and Definitions
39











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Financial Supplement
Fourth Quarter 2019
                                        

 
Corporate Profile

We are the world’s largest publicly traded REIT focused on the ownership, operation, acquisition and development of temperature-controlled warehouses. We are organized as a self-administered and self-managed REIT with proven operating, development and acquisition expertise. As of December 31, 2019, we operated a global network of 178 temperature-controlled warehouses encompassing over one billion cubic feet, with 160 warehouses in the United States, six warehouses in Australia, seven warehouses in New Zealand, two warehouses in Argentina and three warehouses in Canada.

Corporate Headquarters
10 Glenlake Parkway South Tower, Suite 600
Atlanta, Georgia 30328
Telephone: (678) 441-1400
Website: www.americold.com

Senior Management
Fred W. Boehler: Chief Executive Officer, President and Trustee
Marc J. Smernoff: Chief Financial Officer and Executive Vice President
Carlos V. Rodriguez: Chief Operating Officer and Executive Vice President
Robert Chambers: Chief Commercial Officer and Executive Vice President
James A. Harron: Chief Investment Officer and Executive Vice President
James C. Snyder, Jr.: Chief Legal Officer and Executive Vice President
Sanjay Lall: Chief Information Officer and Executive Vice President
Khara Julien: Chief Human Resources Officer and Executive Vice President
David K. Stuver: Executive Vice President, Supply Chain Solutions
Thomas C. Novosel: Chief Accounting Officer and Senior Vice President
Board of Trustees
Mark R. Patterson: Chairman of the Board of Trustees
George J. Alburger, Jr.: Trustee
Kelly H. Barrett: Trustee
Fred W. Boehler: Chief Executive Officer, President and Trustee
Antonio F. Fernandez: Trustee
James R. Heistand: Trustee
Michelle M. MacKay: Trustee
David J. Neithercut: Trustee
Andrew P. Power: Trustee

Investor Relations
To request more information or to be added to our e-mail distribution list, please visit our website: www.americold.com
(Please proceed to the Investors section)

Analyst Coverage
 
 
 
 
 
Firm
Analyst Name
Contact
Baird Equity Research
David B. Rodgers
216-737-7341
Bank of America Merrill Lynch
Joshua Dennerlein
646-855-1681
Berenberg Capital Markets
Nate Crossett
646-949-9030
Citi
Emmanuel Korchman
212-816-1382
J.P. Morgan
Michael W. Mueller
212-622-6689
Raymond James
William A. Crow
727-567-2594
RBC
Michael Carroll
440-715-2649
SunTrust Robinson Humphrey
Ki Bin Kim
212-303-4124

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Financial Supplement
Fourth Quarter 2019
                                        



Stock Listing Information
The shares of Americold Realty Trust are traded on the New York Stock Exchange under the symbol “COLD”.

Credit Ratings
DBRS Morningstar
 
 
Credit Rating:
BBB
(Stable Outlook)
 
 
 
Fitch
 
 
Issuer Default Rating:
BBB
(Stable Outlook)
 
 
 
Moody’s
 
 
Issuer Rating:
Baa3
(Stable Outlook)

These credit ratings may not reflect the potential impact of risks relating to the structure or trading of the Company’s securities and are provided solely for informational purposes. Credit ratings are not recommendations to buy, hold or sell any security, and may be revised or withdrawn at any time by the issuing rating agency at its sole discretion. The Company does not undertake any obligation to maintain the ratings or to advise of any change in ratings. Each agency’s rating should be evaluated independently of any other agency’s rating. An explanation of the significance of the ratings may be obtained from each of the rating agencies.

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Financial Supplement
Fourth Quarter 2019
                                        


AMERICOLD REALTY TRUST ANNOUNCES FOURTH QUARTER AND FULL YEAR 2019 RESULTS

Atlanta, GA, February 20, 2020 - Americold Realty Trust (NYSE: COLD) (the “Company”), the world’s largest publicly traded REIT focused on the ownership, operation, acquisition and development of temperature-controlled warehouses, today announced financial and operating results for the fourth quarter and year ended December 31, 2019.

Fred Boehler, President and Chief Executive Officer of Americold Realty Trust, stated, “Our full year 2019 results reflect the continued execution of our strategy to drive long-term cash flow growth and shareholder value. We did this in three ways: by organically growing our core business, by completing and integrating strategic acquisitions, and by developing advanced temperature-controlled warehouses. We drove organic growth in our same store portfolio and realized total revenue growth and NOI growth of 3.5% and 5.1%, respectively, on a constant currency basis by leveraging the Americold Operating System. We completed $1.4 billion of strategic acquisitions during 2019 and delivered advanced temperature-controlled expansions in Chicago, Chesapeake and North Little Rock, while making significant progress at our ongoing development projects in Savannah and Atlanta. Through these actions, we grew the portfolio by 17% in 2019, to over one billion refrigerated cubic feet, while maintaining a low leveraged, flexible balance sheet. We also earned industry-leading recognition for the energy efficiency of our portfolio.”  

Mr. Boehler continued, “We are off to a strong start in 2020, having completed our previously announced platform acquisition of Nova Cold in Canada, and enhanced our market position in the upper midwest through the acquisition of Newport Cold Storage. We are excited to announce two additional growth projects including our customer driven expansion in Auckland, NZ and our investment in SuperFrio, a leading temperature-controlled operator in Brazil, via a strategic joint venture with Patria. These investments, combined with the Americold operating platform will enhance our ability to serve our customers, drive stable cash flow growth, and create long term value for our shareholders.”

Fourth Quarter and Full Year 2019 Highlights
•
Total revenue increased 16.9% to $486.0 million for the fourth quarter 2019; Total revenue increased 11.2% to $1.78 billion for the full year 2019.
•
Total NOI increased 26.8% to $137.8 million for the fourth quarter 2019; Total NOI increased 17.9% to $478.3 million for the full year 2019.
•
Core EBITDA increased 28.8% to $109.1 million, or 29.6% on a constant currency basis, for the fourth quarter 2019; Core EBITDA increased 19.7% to $367.1 million, or 21.0% on a constant currency basis, for the full year 2019.
•
Net income of $20.8 million, or $0.10 per diluted common share for the fourth quarter 2019; Net income of $48.2 million, or $0.26 per diluted common share for the full year 2019.
•
Core FFO of $64.6 million, or $0.33 per diluted common share for the fourth quarter 2019; Core FFO of $219.7 million, or $1.19 per diluted common share for the full year 2019.
•
AFFO of $59.7 million, or $0.30 per diluted common share for the fourth quarter 2019; AFFO of $214.5 million, or $1.17 per diluted common share for the full year 2019.
•
Global Warehouse segment revenue increased 25.6% to $383.8 million for the fourth quarter 2019; Global Warehouse segment revenue increased 17.0% to $1.38 billion for the full year 2019.

5
    
 
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Financial Supplement
Fourth Quarter 2019
                                        

•
Global Warehouse segment NOI increased 28.9% to $129.5 million for the fourth quarter 2019; Global Warehouse segment NOI increased 19.5% to $447.6 million for the full year 2019.
•
Global Warehouse segment same store revenue grew 3.4%, or 4.5% on a constant currency basis, with same store segment NOI improving 9.1%, or 10.0% on a constant currency basis for the fourth quarter 2019. Global Warehouse segment same store revenue grew 1.9%, or 3.5% on a constant currency basis, with same store segment NOI improving 3.9%, or 5.1% on a constant currency basis, in each case, for the full year 2019.
•
Completed the acquisition of MHW Group on November 19, 2019 for a total purchase price $54.2 million, consisting of two facilities in Pennsylvania and Maryland
•
Announced the acquisition of Nova Cold for CAD $337 million, which subsequently closed on January 2, 2020.

Fourth Quarter 2019 Total Company Financial Results
Total revenue for the fourth quarter of 2019 was $486.0 million, a 16.9% increase from the same quarter of the prior year. This growth was driven by the incremental revenue from the 2019 acquisitions, contractual rate escalations and growth in fixed commitment storage contracts. Additionally, the launch of the Chicago expansion and the stabilization of the Middleboro, MA facility also contributed to this growth. These factors were partially offset by the translation impact of the strengthening US dollar.

For the fourth quarter of 2019, the Company reported net income of $20.8 million, or $0.10 per diluted share, compared to $2.7 million for the same quarter of the prior year.

Total NOI for the fourth quarter of 2019 was $137.8 million, an increase of 26.8% from the same quarter of the prior year.

Core EBITDA was $109.1 million for the fourth quarter of 2019, compared to $84.7 million for the same quarter of the prior year. This reflects a 28.8% increase over prior year, or 29.6% on a constant currency basis, largely impacted by increased Core EBITDA from acquisitions and organic growth. Core EBITDA margin increased by 208 basis points to 22.4%. This growth and margin improvement was driven by the previously discussed items combined with disciplined cost controls through the Americold Operating System of power and facility related costs, partially offset by the translation impact of the strengthening US dollar, and startup costs related to the Chicago development project.

For the fourth quarter of 2019, Core FFO was $64.6 million, or $0.33 per diluted share, compared to $53.2 million for same quarter of the prior year. The year-over-year increase is driven primarily by increased FFO as a result of acquisitions.

For the fourth quarter of 2019, AFFO was $59.7 million, or $0.30 per diluted share, compared to $49.3 million for same quarter of the prior year. AFFO excludes certain expenses and income items that do not represent core expenses and income streams.

Please see the Company’s supplemental financial information for the definitions and reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures.


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Financial Supplement
Fourth Quarter 2019
                                        

Fourth Quarter 2019 Global Warehouse Segment Results
For the fourth quarter of 2019, Global Warehouse segment revenue was $383.8 million, an increase of $78.3 million, or 25.6%, compared to $305.5 million for the fourth quarter of 2018. This growth was driven by the incremental revenue from the 2019 acquisitions as well as the same revenue growth factors mentioned above.

Warehouse segment NOI was $129.5 million for the fourth quarter of 2019, which reflects growth of 28.9%. Global Warehouse segment margin was 33.8% for the fourth quarter of 2019, an 86 basis point increase compared to the same quarter of the prior year. The year-over-year growth was driven by incremental NOI from the 2019 acquisitions, the previously mentioned revenue trends, continued portfolio management and cost controls through the Americold Operating System of our power and facility related costs.

The following tables summarize the global warehouse and same store financial results and metrics for the quarter and year ended December 31, 2019 and 2018:

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Financial Supplement
Fourth Quarter 2019
                                        

 
Three Months Ended December 31,
 
Change
Dollars in thousands
2019 actual
 
2019 constant currency(1)
 
2018 actual
 
Actual
 
Constant currency
 
 
 
 
 
 
 
 
 
 
TOTAL WAREHOUSE SEGMENT
 
 
 
 
 
 
 
 
 
Number of total warehouses
167
 
 
 
144
 
n/a

 
n/a

Global Warehouse revenue:
 
 
 
 
 
 
 
 
 
Rent and storage
$
158,105

 
$
159,221

 
$
133,650

 
18.3
 %
 
19.1
 %
Warehouse services
225,673

 
227,806

 
171,808

 
31.4
 %
 
32.6
 %
Total revenue
$
383,778

 
$
387,027

 
$
305,458

 
25.6
 %
 
26.7
 %
Global Warehouse contribution (NOI)
$
129,547

 
$
130,413

 
$
100,491

 
28.9
 %
 
29.8
 %
Global Warehouse margin
33.8
%
 
33.7
%
 
32.9
%
 
86 bps

 
80 bps

Units in thousands except per pallet data
 
 
 
 
 
 
 
 
 
Global Warehouse rent and storage metrics:
 
 
 
 
 
 
 
 
 
Average physical occupied pallets
3,045

 
n/a

 
2,564

 
18.8
 %
 
n/a

Average economic occupied pallets
3,185

 
n/a

 
2,663

 
19.6
 %
 
n/a

Average physical pallet positions
3,833

 
n/a

 
3,182

 
20.5
 %
 
n/a

Physical occupancy percentage
79.5
%
 
n/a

 
80.6
%
 
-112 bps

 
n/a

Economic occupancy percentage
83.1
%
 
n/a

 
83.7
%
 
-60 bps

 
n/a

Total rent and storage revenue per physical occupied pallet
$
51.92

 
$
52.28

 
$
52.13

 
(0.4
)%
 
0.3
 %
Total rent and storage revenue per economic occupied pallet
$
49.64

 
$
49.99

 
$
50.18

 
(1.1
)%
 
(0.4
)%
Global Warehouse same store services metrics:
 
 
 
 
 
 
 
 
 
Throughput pallets
8,229

 
n/a

 
6,963

 
18.2
 %
 
n/a

Total warehouse services revenue per throughput pallet
$
27.43

 
$
27.68

 
$
24.67

 
11.2
 %
 
12.2
 %
 
 
 
 
 
 
 
 
 
 
SAME STORE WAREHOUSE
 
 
 
 
 
 
 
 
 
Number of same store warehouses
137
 
 
 
137
 
n/a

 
n/a

Global Warehouse same store revenue:
 
 
 
 
 
 
 
 
 
Rent and storage
$
130,295

 
$
131,370

 
$
128,990

 
1.0
 %
 
1.8
 %
Warehouse services
177,345

 
179,458

 
168,501

 
5.2
 %
 
6.5
 %
Total same store revenue
$
307,640

 
$
310,828

 
$
297,491

 
3.4
 %
 
4.5
 %
Global Warehouse same store contribution (NOI)
$
106,954

 
$
107,832

 
$
98,001

 
9.1
 %
 
10.0
 %
Global Warehouse same store margin
34.8
%
 
34.7
%
 
32.9
%
 
182 bps

 
175 bps

Units in thousands except per pallet data
 
 
 
 
 
 
 
 
 
Global Warehouse same store rent and storage metrics:
 
 
 
 
 
 
 
 
 
Average physical occupied pallets
2,471

 
n/a

 
2,471

 
—
 %
 
n/a

Average economic occupied pallets
2,597

 
n/a

 
2,566

 
1.2
 %
 
n/a

Average physical pallet positions
3,070

 
n/a

 
3,074

 
(0.1
)%
 
n/a

Physical occupancy percentage
80.5
%
 
n/a

 
80.4
%
 
10 bps

 
n/a

Economic occupancy percentage
84.6
%
 
n/a

 
83.5
%
 
112 bps

 
n/a

Same store rent and storage revenue per physical occupied pallet
$
52.73

 
$
53.16

 
$
52.19

 
1.0
 %
 
1.9
 %
Same store rent and storage revenue per economic occupied pallet
$
50.18

 
$
50.59

 
$
50.27

 
(0.2
)%
 
0.6
 %
Global Warehouse same store services metrics:
 
 
 
 
 
 
 
 
 
Throughput pallets
6,770

 
n/a

 
6,793

 
(0.3
)%
 
n/a

Same store warehouse services revenue per throughput pallet
$
26.20

 
$
26.51

 
$
24.81

 
5.6
 %
 
6.9
 %

8
    
 
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Financial Supplement
Fourth Quarter 2019
                                        

 
Three Months Ended December 31,
 
Change
Dollars in thousands
2019 actual
 
2019 constant currency(1)
 
2018 actual
 
Actual
 
Constant currency
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NON-SAME STORE WAREHOUSE
 
 
 
 
 
 
 
 
 
Number of non-same store warehouses
30
 
 
 
7
 
n/a

 
n/a

Global Warehouse non-same store revenue:
 
 
 
 
 
 
 
 
 
Rent and storage
$
27,810

 
$
27,851

 
$
4,660

 
n/r

 
n/r

Warehouse services
48,328

 
48,348

 
3,307

 
n/r

 
n/r

Total non-same store revenue
$
76,138

 
$
76,199

 
$
7,967

 
n/r

 
n/r

Global Warehouse non-same store contribution (NOI)
$
22,593

 
$
22,581

 
$
2,490

 
n/r

 
n/r

Global Warehouse non-same store margin
29.7
%
 
29.6
%
 
31.3
%
 
n/r

 
n/r

Units in thousands except per pallet data
 
 
 
 
 
 
 
 
 
Global Warehouse non-same store rent and storage metrics:
 
 
 
 
 
 
 
 
Average physical occupied pallets
574

 
n/a

 
92

 
n/r

 
n/a

Average economic occupied pallets
588

 
n/a

 
97

 
n/r

 
n/a

Average physical pallet positions
762

 
n/a

 
107

 
n/r

 
n/a

Physical occupancy percentage
75.3
%
 
n/a

 
85.8
%
 
n/r

 
n/a

Economic occupancy percentage
77.2
%
 
n/a

 
90.8
%
 
n/r

 
n/a

Non-same store rent and storage revenue per physical occupied pallet
$
48.43

 
$
48.50

 
$
50.58

 
(4.3
)%
 
(4.1
)%
Non-same store rent and storage revenue per economic occupied pallet
$
47.26

 
$
47.33

 
$
47.80

 
(1.1
)%
 
(1.0
)%
Global Warehouse non-same store services metrics:
 
 
 
 
 
 
 
 
 
Throughput pallets
1,459

 
n/a

 
170

 
n/r

 
n/a

Non-same store warehouse services revenue per throughput pallet
$
33.13

 
$
33.14

 
$
19.43

 
70.5
 %
 
70.6
 %


9
    
 
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Financial Supplement
Fourth Quarter 2019
                                        

 
Year Ended December 31,
 
Change
Dollars in thousands
2019 actual
 
2019 constant currency(1)
 
2018 actual
 
Actual
 
Constant currency
 
 
 
 
 
 
 
 
 
 
TOTAL WAREHOUSE SEGMENT
Number of total warehouses
167
 
 
 
144
 
n/a

 
n/a

Global Warehouse revenue:
 
 
 
 
 
 
 
 
 
Rent and storage
$
582,509

 
$
589,402

 
$
514,755

 
13.2
 %
 
14.5
%
Warehouse services
794,708

 
806,792

 
662,157

 
20.0
 %
 
21.8
%
Total revenue
$
1,377,217

 
$
1,396,194

 
$
1,176,912

 
17.0
 %
 
18.6
%
Global Warehouse contribution (NOI)
$
447,591

 
$
452,028

 
$
374,534

 
19.5
 %
 
20.7
%
Global Warehouse margin
32.5
%
 
32.4
%
 
31.8
%
 
68 bps

 
55 bps

Units in thousands except per pallet data
 
 
 
 
 
 
 
 
 
Global Warehouse rent and storage metrics:
 
 
 
 
 
 
 
 
 
Average physical occupied pallets
2,728

 
n/a

 
2,458

 
11.0
 %
 
n/a

Average economic occupied pallets
2,865

 
n/a

 
2,565

 
11.7
 %
 
n/a

Average physical pallet positions
3,604

 
n/a

 
3,193

 
12.9
 %
 
n/a

Physical occupancy percentage
75.7
%
 
n/a

 
77.0
%
 
-129 bps

 
n/a

Economic occupancy percentage
79.5
%
 
n/a

 
80.3
%
 
-81 bps

 
n/a

Total rent and storage revenue per physical occupied pallet
$
213.52

 
$
216.05

 
$
209.41

 
2.0
 %
 
3.2
%
Total rent and storage revenue per economic occupied pallet
$
203.29

 
$
205.69

 
$
200.72

 
1.3
 %
 
2.5
%
Global Warehouse same store services metrics:
 
 
 
 
 
 
 
 
 
Throughput pallets
30,090

 
n/a

 
26,945

 
11.7
 %
 
n/a

Total warehouse services revenue per throughput pallet
$
26.41

 
$
26.81

 
$
24.57

 
7.5
 %
 
9.1
%
 
 
 
 
 
 
 
 
 
 
SAME STORE WAREHOUSE
Number of same store warehouses
136
 
 
 
136
 
n/a

 
n/a

Global Warehouse same store revenue:
 
 
 
 
 
 
 
 
 
Rent and storage
$
499,151

 
$
505,811

 
$
495,130

 
0.8
 %
 
2.2
%
Warehouse services
668,673

 
680,640

 
650,806

 
2.7
 %
 
4.6
%
Total same store revenue
$
1,167,824

 
$
1,186,451

 
$
1,145,936

 
1.9
 %
 
3.5
%
Global Warehouse same store contribution (NOI)
$
380,572

 
$
384,988

 
$
366,188

 
3.9
 %
 
5.1
%
Global Warehouse same store margin
32.6
%
 
32.4
%
 
32.0
%
 
63 bps

 
49 bps

Units in thousands except per pallet data
 
 
 
 
 
 
 
 
 
Global Warehouse same store rent and storage:
 
 
 
 
 
 
 
 
 
Average physical occupied pallets
2,284

 
n/a

 
2,347

 
(2.6
)%
 
n/a

Average economic occupied pallets
2,414

 
n/a

 
2,447

 
(1.4
)%
 
n/a

Average physical pallet positions
3,034

 
n/a

 
3,048

 
(0.4
)%
 
n/a

Physical occupancy percentage
75.3
%
 
n/a

 
77.0
%
 
-171 bps

 
n/a

Economic occupancy percentage
79.5
%
 
n/a

 
80.3
%
 
-76 bps

 
n/a

Same store rent and storage revenue per physical occupied pallet
$
218.50

 
$
221.42

 
$
211.01

 
3.5
 %
 
4.9
%
Same store rent and storage revenue per economic occupied pallet
$
206.81

 
$
209.57

 
$
202.30

 
2.2
 %
 
3.6
%
Global Warehouse same store services:
 
 
 
 
 
 
 
 
 
Throughput pallets
26,149

 
n/a

 
26,422

 
(1.0
)%
 
n/a

Same store warehouse services revenue per throughput pallet
$
25.57

 
$
26.03

 
$
24.63

 
3.8
 %
 
5.7
%

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Financial Supplement
Fourth Quarter 2019
                                        

 
Year Ended December 31,
 
Change
Dollars in thousands
2019 actual
 
2019 constant currency(1)
 
2018 actual
 
Actual
 
Constant currency
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NON-SAME STORE WAREHOUSE
 
 
 
 
 
 
 
 
 
Number of non-same store warehouses
31
 
 
 
8
 
n/a

 
n/a

Global Warehouse non-same store revenue:
 
 
 
 
 
 
 
 
 
Rent and storage
$
83,358

 
$
83,591

 
$
19,625

 
n/r

 
n/r

Warehouse services
126,035

 
126,152

 
11,351

 
n/r

 
n/r

Total non-same store revenue
$
209,393

 
$
209,743

 
$
30,976

 
n/r

 
n/r

Global Warehouse non-same store contribution (NOI)
$
67,019

 
$
67,040

 
$
8,346

 
n/r

 
n/r

Global Warehouse non-same store margin
32.0
%
 
32.0
%
 
26.9
%
 
n/r

 
n/r

Units in thousands except per pallet data
 
 
 
 
 
 
 
 
 
Global Warehouse non-same store rent and storage:
 
 
 
 
 
 
 
 
 
Average physical occupied pallets
444

 
n/a

 
112

 
n/r

 
n/a

Average economic occupied pallets
452

 
n/a

 
117

 
n/r

 
n/a

Average physical pallet positions
570

 
n/a

 
145

 
n/r

 
n/a

Physical occupancy percentage
77.9
%
 
n/a

 
76.9
%
 
n/r

 
n/a

Economic occupancy percentage
79.3
%
 
n/a

 
80.7
%
 
n/r

 
n/a

Non-same store rent and storage revenue per physical occupied pallet
$
187.89

 
$
188.41

 
$
175.85

 
6.8
%
 
7.1
%
Non-same store rent and storage revenue per economic occupied pallet
$
184.46

 
$
184.98

 
$
167.62

 
10.0
%
 
10.4
%
Global Warehouse non-same store services:
 
 
 
 
 
 
 
 
 
Throughput pallets
3,941

 
n/a

 
523

 
n/r

 
n/a

Non-same store warehouse services revenue per throughput pallet
$
31.98

 
$
32.01

 
$
21.72

 
47.2
%
 
47.4
%
(1) The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis are the effect of changes in foreign currency exchange rates relative to the comparable prior period.
(n/a = not applicable)
(n/r = not relevant)

Fixed Commitment Rent and Storage Revenue
As of December 31, 2019, $251.1 million of the Company’s rent and storage revenue were derived from customers with fixed commitment storage contracts. This compares to $243.9 million at the end of the third quarter of 2019 and $220.2 million at the end of 2018. The Company’s recent acquisitions had a lower percentage of fixed committed contracts as a percentage of rent and storage revenue. On a combined pro forma basis, assuming acquisitions during 2019 occurred at the beginning of the year, 40.6% of rent and storage revenue were generated from fixed commitment storage contracts.

Economic and Physical Occupancy
Contracts that contain fixed commitments are designed to ensure the Company’s customers have space available when needed. At times, these customers may be paying for space that is not physically occupied. For the fourth quarter of 2019, economic occupancy for the total warehouse segment was 83.1% and warehouse segment same store pool was 84.6%, representing a 365 basis point and 410 basis point increase above physical occupancy, respectively. For the fourth quarter of 2019, physical occupancy for the total warehouse segment was 79.5% and warehouse segment same store pool was 80.5%.

11
    
 
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Financial Supplement
Fourth Quarter 2019
                                        

Real Estate Portfolio
As of December 31, 2019, the Company’s portfolio consists of 178 facilities, two more than what was reported as of the third quarter 2019. The Company ended the fourth quarter of 2019 with 167 facilities in its Global Warehouse segment portfolio and 11 facilities in its Third-party managed segment portfolio. During the fourth quarter, the Company exited a leased facility within the campus of sites in Paisley, New Zealand and as a result moved it to the non-same store category. Additionally, the Company acquired two sites in connection with the MHW Acquisition, which were added to the non-same store category. The same store population consists of 137 facilities for the quarter ended December 31, 2019. The remaining 30 non-same store Warehouse facilities include the 26 facilities that were acquired in 2019, and four legacy facilities.

Balance Sheet Activity and Liquidity
At December 31, 2019, the Company had total liquidity of approximately $1.4 billion, including cash and capacity on its revolving credit facility and $136.3 million and $233.6 million of net proceeds available from its September 2018 and April 2019 equity forwards, respectively. Total debt outstanding was $1.9 billion (inclusive of $173.9 million of financing leases/sale lease-backs and exclusive of unamortized deferred financing fees), of which 76% was in an unsecured structure. The Company has no material debt maturities until 2022, assuming the Company exercises the one-year extension option on its revolver. At quarter end, its net debt to pro forma Core EBITDA was approximately 4.2x. Of the Company’s total debt outstanding, $1.7 billion relates to real estate debt, which excludes sale-leaseback and capitalized lease obligations. The Company’s real estate debt has a remaining weighted average term of 6.3 years and carries a weighted average contractual interest rate of 4.23%. As of December 31, 2019, 92% of the Company’s total debt outstanding was at a fixed rate, inclusive of interest rate swaps.
 
Dividend
On December 10, 2019, the Company’s Board of Trustees declared a dividend of $0.20 per share for the fourth quarter of 2019, which was paid on January 15, 2020 to common shareholders of record as of December 31, 2019.

2020 Outlook
The Company announced guidance for 2020 as follows:
•
Global warehouse segment same store revenue growth to range between 2 and 4 percent on an actual and constant currency basis and same store NOI growth to be 100 to 200 basis points higher than the associated revenue.
•
Managed and Transportation NOI is expected in the range of $28 to $31 million.
•
Selling, general and administrative expense is expected in the range of $135 to $140 million.
•
Current income tax expense of $11 to $13 million.
•
Deferred income tax benefit of $1 to $3 million.
•
Non-real estate depreciation and amortization expense of $66 to $68 million.
•
Total recurring maintenance capital expenditures is expected in the range of $65 to $75 million.
•
Development starts of $75 to $200 million.
•
Anticipated AFFO per share of $1.22 to $1.30.
•
Please refer to our supplemental for currency translation rates embedded in this guidance.

12
    
 
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Financial Supplement
Fourth Quarter 2019
                                        

The Company’s guidance is provided for informational purposes based on current plans and assumptions as is subject to change. The ranges for these metrics do not include the impact of acquisitions, dispositions, or capital markets activity beyond that which has been previously announced.

Investor Webcast and Conference Call
The Company will hold a webcast and conference call on Thursday, February 20, 2020 at 5:00 p.m. Eastern Time to discuss fourth quarter and full year 2019 results. A live webcast of the call will be available via the Investors section of Americold Realty Trust’s website at www.americold.com. To listen to the live webcast, please go to the site at least five minutes prior to the scheduled start time in order to register, download and install any necessary audio software. Shortly after the call, a replay of the webcast will be available for 90 days on the Company’s website.

The conference call can also be accessed by dialing 1-877-407-3982 or 1-201-493-6780. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID# 13698379. The telephone replay will be available starting shortly after the call until March 5, 2020.

The Company’s supplemental package will be available prior to the conference call in the Investors section of the Company’s website at http://ir.americold.com.

About the Company
Americold is the world’s largest publicly traded REIT focused on the ownership, operation, acquisition and development of temperature-controlled warehouses. Based in Atlanta, Georgia, Americold owns and operates 178 temperature-controlled warehouses, with over 1 billion refrigerated cubic feet of storage, in the United States, Australia, New Zealand, Canada, and Argentina. Americold’s facilities are an integral component of the supply chain connecting food producers, processors, distributors and retailers to consumers.

Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, including FFO, core FFO, AFFO, EBITDAre, Core EBITDA and same store segment revenue and contribution. A reconciliation from U.S. GAAP net income (loss) available to common shareholders to FFO, a reconciliation from FFO to core FFO and AFFO, and definitions of FFO, and core FFO are included within the supplemental. A reconciliation from U.S. GAAP net income (loss) available to common shareholders to EBITDAre and Core EBITDA, a definition of Core EBITDA and definitions of net debt to Core EBITDA are included within the supplemental.

Forward-Looking Statements
This document contains statements about future events and expectations that constitute forward-looking statements. Forward-looking statements are based on our beliefs, assumptions and expectations of our future financial and operating performance and growth plans, taking into account the information currently available to us. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause our actual results to differ materially from the expectations of future results we express or imply in any forward-looking statements, and you should not place undue reliance on such statements. Factors that could contribute to these differences include adverse economic or real estate developments in our geographic markets or the temperature-controlled warehouse industry; general economic conditions; risks associated with the

13
    
 
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Financial Supplement
Fourth Quarter 2019
                                        

ownership of real estate and temperature-controlled warehouses in particular; defaults or non-renewals of contracts with customers; potential bankruptcy or insolvency of our customers; uncertainty of revenue, given the nature of our customer contracts; increased interest rates and operating costs; our failure to obtain necessary outside financing; risks related to, or restrictions contained in, our debt financing; decreased storage rates or increased vacancy rates; risks related to current and potential international operations and properties; our failure to realize the intended benefits from our recent acquisitions including synergies, or disruptions to our plans and operations or unknown or contingent liabilities related to our recent acquisitions; our failure to successfully integrate and operate acquired properties or businesses, including but not limited to: Cloverleaf Cold Storage, Lanier Cold Storage, MHW Group, Inc. and PortFresh Holdings, LLC; difficulties in identifying properties to be acquired and completing acquisitions; acquisition risks, including the failure of such acquisitions to perform in accordance with projections; risks related to expansions of existing properties and developments of new properties, including failure to meet budgeted or stabilized returns in respect thereof; difficulties in expanding our operations into new markets, including international markets; our failure to maintain our status as a REIT; our operating partnership’s failure to qualify as a partnership for federal income tax purposes; uncertainties and risks related to natural disasters and global climate change; possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently or previously owned by us; financial market fluctuations; actions by our competitors and their increasing ability to compete with us; labor and power costs; changes in real estate and zoning laws and increases in real property tax rates; the competitive environment in which we operate; our relationship with our employees, including the occurrence of any work stoppages or any disputes under our collective bargaining agreements; liabilities as a result of our participation in multi-employer pension plans; losses in excess of our insurance coverage; the cost and time requirements as a result of our operation as a publicly traded REIT; changes in foreign currency exchange rates; the potential dilutive effect of our common share offerings; the impact of anti-takeover provisions in our constituent documents and under Maryland law, which could make an acquisition of us more difficult, limit attempts by our shareholders to replace our trustees and affect the price of our common shares of beneficial interest, $0.01 par value per share; and risks related to our forward sale agreement entered into with Bank of America, N.A. in September 2018, as amended, including substantial dilution to our earnings per share or substantial cash payment obligations.
Words such as “anticipates,” “believes,” “continues,” “estimates,” “expects,” “goal,” “objectives,” “intends,” “may,” “opportunity,” “plans,” “potential,” “near-term,” “long-term,” “projections,” “assumptions,” “projects,” “guidance,” “forecasts,” “outlook,” “target,” “trends,” “should,” “could,” “would,” “will” and similar expressions are intended to identify such forward-looking statements. Examples of forward-looking statements included in this document include, among others, statements about our expected expansion and development pipeline and our targeted return on invested capital on expansion and development opportunities. We qualify any forward-looking statements entirely by these cautionary factors. Other risks, uncertainties and factors, including those discussed under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2018 and our other reports filed with the Securities and Exchange Commission, could cause our actual results to differ materially from those projected in any forward-looking statements we make. We assume no obligation to update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Contacts:
Americold Realty Trust
Investor Relations
Telephone: 678-459-1959
Email: investor.relations@americold.com

14
    
 
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Financial Supplement
Fourth Quarter 2019
                                        

Selected Quarterly Financial Data
In thousands, except per share amounts - unaudited
As of
Capitalization:
Q4 19
Q3 19
Q2 19
Q1 19
Q4 18
Fully diluted common shares outstanding at quarter end(1)
197,784
198,641
197,231
153,840
152,490
Common stock share price at quarter end
$35.06
$37.07
$32.42
$30.51
$25.54
Market value of common equity
$6,934,307
$7,363,622
$6,394,229
$4,693,658
$3,894,595
 
 
 
 
 
 
Gross debt (2)
$1,882,372
$1,883,986
$1,897,734
$1,522,396
$1,524,664
Less: cash and cash equivalents
234,303
310,116
320,805
172,838
208,078
Net debt
$1,648,069
$1,573,870
$1,576,929
$1,349,558
$1,316,586
 
 
 
 
 
 
Total enterprise value
$8,582,376
$8,937,492
$7,971,158
$6,043,216
$5,211,181
Net debt / total enterprise value
19.2
%
17.6
%
19.8
%
22.3
%
25.3
%
Net debt to pro forma Core EBITDA(2)
4.18x

4.12x

4.14x

4.41x

4.29x

 
 
 
 
 
 
 
Three Months Ended
Selected Operational Data:
Q4 19
Q3 19
Q2 19
Q1 19
Q4 18
Warehouse segment revenue
$383,778
$365.593
$338,231
$289,615
$305,458
Total revenue
485,984
466,182
438,460
393,079
415,817
Operating income (3)
46,579
39,385
29,085
16,417
51,171
Net income (loss)
20,809
27,091
4,891
(4,629)
2,678
Total warehouse segment contribution (NOI) (4)
129,547
113,408
113,817
90,819
100,491
Total segment contribution (NOI) (4)
137,754
120,706
121,119
98,678
108,678
 
 
 
 
 
 
Selected Other Data:
 
 
 
 
 
Core EBITDA (5)
$109,086
$93,369
$93,617
$71,057
$84,675
Core funds from operations (1)
64,621
59,083
56,077
39,941
53,192
Adjusted funds from operations (1)
59,716
52,445
58,054
44,316
49,334
 
 
 
 
 
 
Earnings Measurements:
 
 
 
 
 
Net income (loss) per share - basic
$0.11
$0.14
$0.03
$(0.03)
$0.02
Net income (loss) per share - diluted
$0.10
$0.14
$0.03
$(0.03)
$0.02
Core FFO per diluted share (5)
$0.33
$0.30
$0.30
$0.26
$0.35
AFFO per diluted share (5)
$0.30
$0.27
$0.31
$0.29
$0.33
Dividend distributions declared per common share (6)
$0.20
$0.20
$0.20
$0.20
$0.19
Diluted AFFO payout ratio (7)
66.7
%
74.1
%
64.5
%
69.0
%
57.6
%
 
 
 
 
 
 
Portfolio Statistics:
 
 
 
 
 
Total global warehouses
178
176
178
155
155
Ending economic occupancy
83.1
%
79.0
%
76.8
%
78.8
%
83.7
%
Ending physical occupancy
79.5
%
75.3
%
73.0
%
74.6
%
80.6
%
Total global same-store warehouses
137
138
138
137
136



15
    
 
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Financial Supplement
Fourth Quarter 2019
                                        

(1) Assumes the exercise of all outstanding stock options using the treasury stock method, conversion of all outstanding restricted stock units, and incorporates forward contracts using the treasury stock method
 
As of
 
 
 
 
 
 
(2) Net Debt to Core EBITDA Computation
12/31/2019
 
12/31/2018
 
 
 
 
 
 
Total debt
$
1,869,376

 
$
1,510,721

 
 
 
 
 
 
Deferred financing costs
12,996

 
13,943

 
 
 
 
 
 
Gross debt
$1,882,372
 
$1,524,664
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
 
 
 
 
Less: cash and cash equivalents
234,303

 
208,078

 
 
 
 
 
 
Net debt
$
1,648,069

 
$
1,316,586

 
 
 
 
 


Core EBITDA - last twelve months
$367,128
 
$306,777
 
 
 
 
 
 
Core EBITDA from acquisitions (a)
26,745

 
—

 
 
 
 
 
 
Pro forma Core EBITDA - last twelve months
$393,873
 
$306,777
 


 
 
 
 
Net debt to pro forma Core EBITDA
4.18x

 
4.29x

 
 
 
 
 
 
(a) Includes 4 months of Core EBITDA from Cloverleaf and Lanier acquisitions prior to Americold’s ownership, plus 10.5 months of Core EBITDA from the MHW acquisition prior to Americold’s ownership.
 
(3) Certain prior period amounts have been reclassified to conform to the current period presentation.
 
 
(4) Reconciliation of segment contribution (NOI)
 
 
Three Months Ended
 
Q4 19
 
Q3 19

Q2 19

Q1 19

Q4 18
Warehouse segment contribution (NOI)
$129,547
 
$113,408
 
$113,817
 
$90,819
 
$100,491
Third-party managed segment contribution (NOI)
3,115

 
2,583

 
2,804

 
3,259

 
3,571

Transportation segment contribution (NOI)
4,865

 
4,640

 
4,206

 
4,356

 
4,407

Quarry segment contribution (NOI)
227

 
75

 
292

 
244

 
209

Total segment contribution (NOI)
$137,754
 
$120,706
 
$121,119
 
$98,678
 
$108,678
Depreciation, depletion and amortization
(47,750
)
 
(45,065
)
 
(40,437
)
 
(30,096
)
 
(29,792
)
Selling, general and administrative (3)
(33,048
)
 
(32,476
)
 
(32,669
)
 
(31,117
)
 
(27,646
)
Acquisition, litigation and other (3)
(10,377
)
 
(3,780
)
 
(17,964
)
 
(8,493
)
 
832

Loss from sale of real estate
—

 
—

 
(34
)
 
—

 
(901
)
Impairment of long-lived assets
—

 
—

 
(930
)
 
(12,555
)
 
—

U.S. GAAP operating income
$46,579
 
$39,385
 
$29,085
 
$16,417
 
$51,171
 
 
 
 
 
 
 
 
 
 
(5) See “Reconciliation of Net Income (Loss) to EBITDA, EBITDAre, and Core EBITDA”
 
 
 
 
 
 
 
 
 
 
(6) Distributions per common share
Three Months Ended
 
Q4 19
 
Q3 19
 
Q2 19
 
Q1 19
 
Q4 18
Distributions declared on common shares during the quarter
$38,796
 
$38,795
 
$38,764
 
$30,235
 
$28,218
Common shares outstanding at quarter end
197,784


191,751

 
191,634

 
149,133

 
148,235

Distributions declared per common share of beneficial interest
$0.2000

$0.2000
 
$0.2000
 
$0.2000
 
$0.1875
 
 
 
 
 
 
 
 
 
 
(7) Calculated as distributions declared on common shares divided by AFFO per fully diluted share

16
    
 
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Financial Supplement
Fourth Quarter 2019
                                        

Financial Information
Americold Realty Trust and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except shares and per share amounts)

December 31, 2019

December 31, 2018
Assets



 Property, buildings and equipment:



Land
$
526,226


$
385,232

Buildings and improvements
2,696,732


1,849,749

Machinery and equipment
817,617


577,175

Assets under construction
108,639


85,983


4,149,214


2,898,139

Accumulated depreciation and depletion
(1,216,553
)

(1,097,624
)
Property, buildings and equipment – net
2,932,661


1,800,515





Operating lease right-of-use assets
77,723


—

Accumulated depreciation – operating leases
(18,110
)

—

Operating leases – net
59,613


—





 Financing leases:



Buildings and improvements
11,227


11,227

Machinery and equipment
76,811


49,276


88,038


60,503

Accumulated depreciation – financing leases
(29,697
)

(21,317
)
Financing leases – net
58,341


39,186





 Cash and cash equivalents
234,303


208,078

 Restricted cash
6,310


6,019

 Accounts receivable – net of allowance of $6,927 and $5,706 at December 31, 2019 and 2018, respectively
214,842


194,279

 Identifiable intangible assets – net
284,758


25,056

 Goodwill
318,483


186,095

 Investments in partially owned entities
—


14,541

 Other assets
61,372


58,659

Total assets
$
4,170,683


$
2,532,428





Liabilities and shareholders’ equity



Liabilities:



Accounts payable and accrued expenses
350,963


253,080

Mortgage notes, senior unsecured notes and term loan – net of deferred financing costs of $12,996 and $13,943 in the aggregate, at December 31, 2019 and 2018, respectively
1,695,447


1,351,014

Sale-leaseback financing obligations
115,759


118,920

Financing lease obligations
58,170


40,787

Operating lease obligations
62,342


—

Unearned revenue
16,423


18,625

Pension and postretirement benefits
12,706


16,317

Deferred tax liability – net
17,119


17,992

Multiemployer pension plan withdrawal liability
8,736


8,938

Total liabilities
2,337,665


1,825,673

 Shareholders’ equity:



Common shares of beneficial interest, $0.01 par value – authorized 250,000,000 shares; 191,799,909 and 148,234,959 issued and outstanding at December 31, 2019 and 2018, respectively
1,918


1,482

Paid-in capital
2,582,087


1,356,133

Accumulated deficit and distributions in excess of net earnings
(736,861
)

(638,345
)
Accumulated other comprehensive loss
(14,126
)

(12,515
)
Total shareholders’ equity
1,833,018


706,755

Total liabilities and shareholders’ equity
$
4,170,683


$
2,532,428


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Financial Supplement
Fourth Quarter 2019
                                        

Americold Realty Trust and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share amounts)

Three Months Ended December 31,

Years Ended December 31,

2019

2018

2019

2018
Revenues:







Rent, storage and warehouse services
$
383,778


$
305,458


$
1,377,217


$
1,176,912

Third-party managed services
64,442


66,852


252,939


259,034

Transportation services
35,571


41,363


144,844


158,790

Other
2,193


2,144


8,705


8,899

Total revenues
485,984


415,817


1,783,705


1,603,635

Operating expenses:







Rent, storage and warehouse services cost of operations
254,231


204,967


929,626


802,378

Third-party managed services cost of operations
61,327


63,281


241,178


244,274

Transportation services cost of operations
30,706


36,956


126,777


143,055

Cost of operations related to other revenues
1,966


1,935


7,867


8,279

Depreciation, depletion and amortization
47,750


29,792


163,348


117,653

Selling, general and administrative
33,048


27,646


129,310


110,825

Acquisition, litigation and other
10,377


(832
)

40,614


3,935

Impairment of long-lived assets
—


—


13,485


747

Loss (gain) from sale of real estate
—


901


34


(7,471
)
Total operating expenses
439,405


364,646


1,652,239


1,423,675









Operating income
46,579


51,171


131,466


179,960









Other (expense) income:







Interest expense
(23,827
)

(23,054
)

(94,408
)

(93,312
)
Interest income
1,080


1,387


6,286


3,996

Bridge loan commitment fees
—


—


(2,665
)

—

Loss on debt extinguishment and modifications
—


(26,174
)

—


(47,559
)
Foreign currency exchange gain (loss), net
76


(43
)

10


2,882

Other (expense) income, net
(863
)

(717
)

(1,870
)

(532
)
Loss from investments in partially owned entities
—


(745
)

(111
)

(1,069
)
Gain on sale of partially owned entities
—


—


4,297


—

Income before income tax (expense) benefit
23,045


1,825


43,005


44,366

Income tax (expense) benefit:







Current
(716
)

(206
)

(5,544
)

467

Deferred
(1,520
)

1,059


10,701


3,152

Total income tax (expense) benefit
(2,236
)

853


5,157


3,619









Net income
$
20,809


$
2,678


$
48,162


$
47,985

Less distributions on preferred shares of beneficial interest - Series A
—


—


—


(1
)
Less distributions on preferred shares of beneficial interest - Series B
—


—


—


(1,817
)
Net income attributable to common shares of beneficial interest
$
20,809


$
2,678


$
48,162


$
46,167









Weighted average common shares outstanding – basic
192,393


148,592


179,598


141,415

Weighted average common shares outstanding – diluted
197,922


151,524


183,950


144,338









Net income per common share of beneficial interest - basic
$
0.11


$
0.02


$
0.26


$
0.31

Net income per common share of beneficial interest - diluted
$
0.10


$
0.02


$
0.26


$
0.31














18
    
 
americoldrealtytrustlogoa09.jpg
 
Financial Supplement
Fourth Quarter 2019
                                        

Reconciliation of Net Income (Loss) to NAREIT FFO, Core FFO, and AFFO

(In thousands, except per share amounts - unaudited)

 
Three Months Ended

Year Ended

Q4 19
Q3 19
Q2 19
Q1 19
Q4 18

FY 2019
FY 2018
Net income (loss)
$
20,809

$
27,091

$
4,891

$
(4,629
)
$
2,678


$
48,162

$
47,985

Adjustments:








Real estate related depreciation and depletion
32,555

31,238

28,518

22,665

22,405


114,976

88,246

Net loss (gain) on sale of depreciable real estate
—

—

34

—

—


34

(7,471
)
Net loss (gain) on asset disposals
237

7

—

138

913


382

(65
)
Impairment charges on certain real estate assets
—

—

—

12,555

—


12,555

747

Real estate depreciation on China JV
—

232

269

289

398


790

1,202

NAREIT Funds from operations
$
53,601

$
58,568

$
33,712

$
31,018

$
26,394


$
176,899

$
130,644

Less distributions on preferred shares of beneficial interest
—

—

—

—

—


—

(1,817
)
Funds from operations attributable to common shareholders
$
53,601

$
58,568

$
33,712

$
31,018

$
26,394


$
176,899

$
128,827

Adjustments:








Net loss (gain) on sale of non-real estate assets
227

212

167

(118
)
110


488

(739
)
Non-real estate impairment
—

—

930

—

—


930

—

Acquisition, litigation and other expenses, excluding 2018 RSU modification expense(a)
10,377

3,780

17,964

8,493

(834
)

40,614

1,893

Stock-based compensation expense, IPO grants
492

777

556

607

1,433


2,432

4,208

Bridge loan commitment fees
—

—

2,665

—

—


2,665

—

Loss on debt extinguishment, modifications and termination of derivative instruments
—

—

—

—

26,174


—

47,559

Foreign currency exchange (gain) loss
(76
)
43

83

(60
)
43


(10
)
(2,882
)
Excise tax settlement
—

—

—

—

(128
)

—

(128
)
Alternative minimum tax receivable from TCJA
—

—

—

—

—


—

(3,745
)
Gain from sale of partially owned entities
—

(4,297
)
—

—

—


(4,297
)
—

Core FFO applicable to common shareholders
$
64,621

$
59,083

$
56,077

$
39,940

$
53,192


$
219,721

$
174,993

Adjustments:








Amortization of deferred financing costs and pension withdrawal liability
1,524

1,526

1,522

1,456

1,414


6,028

6,176

Amortization of below/above market leases
37

38

38

38

37


151

151

Straight-line net rent
(83
)
(150
)
(151
)
(137
)
(86
)

(521
)
(179
)
Deferred income tax expense (benefit)
1,520

(7,809
)
(3,352
)
(1,060
)
(1,059
)

(10,701
)
(3,152
)
Stock-based compensation expense, excluding IPO grants
3,210

2,593

2,628

2,032

994


10,463

6,474

Non-real estate depreciation and amortization
15,194

13,828

11,919

7,431

7,387


48,372

29,407

Non-real estate depreciation and amortization on China JV
—

108

107

102

107


317

538

Recurring maintenance capital expenditures (b)
(26,307
)
(16,772
)
(10,734
)
(5,487
)
(12,652
)

(59,300
)
(43,975
)
Adjusted FFO applicable to common shareholders
$
59,716

$
52,445

$
58,054

$
44,315

$
49,334


$
214,530

$
170,433









19
    
 
americoldrealtytrustlogoa09.jpg
 
Financial Supplement
Fourth Quarter 2019
                                        

Reconciliation of Net Income (Loss) to NAREIT FFO, Core FFO, and AFFO (continued)

(In thousands except per share amounts - unaudited)


Three Months Ended

Year Ended

Q4 19
Q3 19
Q2 19
Q1 19
Q4 18

FY 2019
FY 2018











NAREIT Funds from operations
$
53,601

$
58,568

$
33,712

$
31,018

$
26,394


$
176,899

$
130,644

Funds from operations attributable to common shareholders
53,601

58,568

33,712

31,018

26,394


176,899

128,827

Core FFO applicable to common shareholders
64,621

59,083

56,077

39,940

53,192


219,721

174,993

Adjusted FFO applicable to common shareholders
$
59,716

$
52,445

$
58,054

$
44,315

$
49,334


$
214,530

$
170,433












Reconciliation of weighted average shares:










Weighted average basic shares for net income calculation
192,393

192,325

182,325

149,404

148,592


179,598

141,415

Dilutive stock options, unvested restricted stock units, equity forward contract
5,529

5,038

3,792

3,041

2,932


4,352

2,923

Weighted average dilutive shares
197,922

197,363

186,117

152,445

151,524


183,950

144,338












NAREIT FFO - basic per share
$
0.28

$
0.30

$
0.18

$
0.21

$
0.18


$
0.98

$
0.91

NAREIT FFO - diluted per share
0.27

0.30

0.18

0.20

0.17


0.96

0.89










Core FFO - basic per share
0.34

0.31

0.31

0.27

0.36


1.22

1.24

Core FFO - diluted per share
0.33

0.30

0.30

0.26

0.35


1.19

1.21










Adjusted FFO - basic per share
0.31

0.27

0.32

0.30

0.33


1.19

1.21

Adjusted FFO - diluted per share
0.30

0.27

0.31

0.29

0.33


1.17

1.18

(a)
Refer to Acquisition, Litigation and Other summary for further details. The 2018 total excludes the $2.1 million RSU modification charge that is included within the Acquisition, litigation and other financial statement line item, thus amounts do not tie in total.

(b)
Recurring 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.



20
    
 
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Financial Supplement
Fourth Quarter 2019
                                        

Reconciliation of Net Income (Loss) to EBITDA, NAREIT EBITDAre, and Core EBITDA
(In thousands - unaudited)
 
Three Months Ended

Year Ended

Q4 19
Q3 19
Q2 19
Q1 19
Q4 18

FY 2019
FY 2018
Net income (loss)
$
20,809

$
27,091

$
4,891

$
(4,629
)
$
2,678


$
48,162

$
47,985

Adjustments:








Depreciation, depletion and amortization
47,750

45,065

40,437

30,096

29,792


163,348

117,653

Interest expense
23,827

24,907

24,098

21,576

23,054


94,408

93,312

Income tax expense (benefit)
2,236

(6,975
)
(906
)
488

(853
)

(5,157
)
(3,619
)
EBITDA
$
94,622

$
90,088

$
68,520

$
47,531

$
54,671


$
300,761

$
255,331

Adjustments:








Net loss (gain) on sale of depreciable real estate
—

—

34

—

913


34

(7,471
)
Adjustment to reflect share of EBITDAre of partially owned entities
—

519

592

615

250


1,726

1,664

NAREIT EBITDAre
$
94,622

$
90,607

$
69,146

$
48,146

$
55,834


$
302,521

$
249,524

Adjustments:








Acquisition, litigation and other expenses, excluding 2018 RSU modification expense(a)
10,377

3,780

17,964

8,493

(834
)

40,614

1,893

Bridge loan commitment fees
—

—

2,665

—

—


2,665

—

Loss (gain) from investments in partially owned entities
—

165

68

(122
)
745


111

1,069

Gain from sale of partially owned entities
—

(4,297
)
—

—

—


(4,297
)
—

Asset impairment
—

—

930

12,555

—


13,485

747

(Gain) loss on foreign currency exchange
(76
)
43

83

(60
)
43


(10
)
(2,882
)
Stock-based compensation expense
3,699

3,372

3,185

2,639

2,429


12,895

10,683

Loss on debt extinguishment, modifications and termination of derivative instruments
—

—

—

—

26,174


—

47,559

Loss (gain) on real estate and other asset disposals
464

218

168

20

534


870

(152
)
Reduction in EBITDAre from partially owned entities
—

(519
)
(592
)
(615
)
(250
)

(1,726
)
(1,664
)
Core EBITDA
$
109,086

$
93,369

$
93,617

$
71,056

$
84,675


$
367,128

$
306,777

(a)
Refer to Acquisition, Litigation and Other summary for further details. The 2018 total excludes the $2.1 million RSU modification charge that is included within the Acquisition, litigation and other financial statement line item, thus amounts do not tie in total.


21
    
 
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Financial Supplement
Fourth Quarter 2019
                                        

Acquisition, Litigation and Other
Dollars in thousands

The Company reported a new financial statement line referred to as “Acquisition, litigation and other” within our Statements of Operations during 2019 due to various charges incurred in the current period, and reclassified certain costs from SG&A in the comparable prior periods to conform with the new presentation. This caption represents certain corporate costs that are highly variable from period to period and will be further detailed in our 2019 Annual Report on Form 10-K.
 
Three Months Ended December 31,
 
Year Ended December 31,
Acquisition, litigation and other
2019
 
2018
 
2019
 
2018
Acquisition related costs
$
5,159

 
$
599

 
$
24,284

 
$
671

Litigation
2,978

 
—

 
4,553

 
—

 

 

 

 

Other:

 

 

 

Severance, equity award modifications and acceleration
1,824

 
(73
)
 
9,789

 
2,053

Non-offering related equity issuance expenses
38

 
(32
)
 
1,356

 
1,813

Non-recurring public company implementation costs
—

 
544

 
632

 
(1,804
)
Terminated site operations costs
378

 
(1,870
)
 
—

 
1,202

Total other
2,240

 
(1,431
)
 
11,777

 
3,264

 
 
 
 
 
 
 

Total acquisition, litigation and other
$
10,377

 
$
(832
)
 
$
40,614

 
$
3,935




22
    
 
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Financial Supplement
Fourth Quarter 2019
                                        

Debt Detail and Maturities
(In thousands - unaudited)
 
As of December 31, 2019
Indebtedness:
Carrying Value
 
Contractual Interest Rate(3)
 
Effective Interest Rate(4)
 
Stated
Maturity Date(5)
 
 
 
 
 
 
 
 
Unsecured Debt
 
 
 
 
 
 
 
2018 Senior Unsecured Revolving Credit Facility(1)(2)
$
—

 
L+0.90%
 
0.36%
 
1/2022
2018 Senior Unsecured Term Loan A Facility(2)(6)
475,000

 
L+1.00%
 
3.14%
 
1/2023
Series A notes(7)
200,000

 
4.68%
 
4.77%
 
1/2026
Series B notes
400,000

 
4.86%
 
4.92%
 
1/2029
Series C notes
350,000

 
4.10%
 
4.15%
 
1/2030
Total Unsecured Debt
$
1,425,000

 
3.96%
 
4.32%
 
6.9 years
 
 
 
 
 
 
 
 
2013 Mortgage Loans (15 cross-collateralized warehouses)
 
 
 
 
 
 
Senior Note
181,443

 
3.81%
 
4.14%
 
5/2023
Mezzanine A
70,000

 
7.38%
 
7.55%
 
5/2023
Mezzanine B
32,000

 
11.50%
 
11.75%
 
5/2023
Total 2013 Mortgage Loans
$
283,443

 
5.56%
 
5.84%
 
3.3 years
 
 
 
 
 
 
 
 
Total Real Estate Debt
$
1,708,443

 
4.23%
 
4.57%
 
6.3 years
 
 
 
 
 
 
 
 
Sale-leaseback financing obligations
115,759

 
11.64%
 
 
 
 
Financing lease obligations
58,170

 
5.30%
 
 
 
 
Total Debt Outstanding
$
1,882,372

 
4.72%
 
 
 
 
 
 
 
 
 
 
 
 
Less: deferred financing costs
(12,996
)
 
 
 
 
 
 
Total Book Value of Debt
$
1,869,376

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rate Type
 
 
% of Total
 
 
 
 
Fixed
1,732,372

 
92%
 
 
 
 
Variable
150,000

 
8%
 
 
 
 
Total Debt Outstanding
$
1,882,372

 
100%
 
 
 
 
 
 
 
 
 
 
 
 
Debt Type
 
 
% of Total
 
 
 
 
Unsecured
1,425,000

 
76%
 
 
 
 
Secured
457,372

 
24%
 
 
 
 
Total Debt Outstanding
$
1,882,372

 
100%
 
 
 
 
(1)
Revolver maturity assumes one year extension option. The borrowing capacity as of December 31, 2019 is $800 million less $23.0 million of outstanding letters of credit. The effective interest rate shown represents deferred financing fees allocated over the $800 million committed.
(2)
L = one-month LIBOR.
(3)
Interest rates as of December 31, 2019. At December 31, 2019, the one-month LIBOR rate on our Senior Unsecured Term Loan was 1.80%. Subtotals of stated contractual interest rates represent weighted average interest rates. Rates for sale-leasebacks and financing lease obligations represent weighted average interest rates.
(4)
The effective interest rates presented include the amortization of loan costs. Subtotals of stated effective interest rates represent weighted average interest rates.
(5)
Subtotals of stated maturity dates represent remaining weighted average life of the debt.
(6)
On January 4, 2019, the Company entered into a swap agreement to set the LIBOR portion of interest expense on $100 million of the Senior Unsecured Term Loan principal at a rate of 2.48%. This results in a fixed interest rate of 3.48% (2.48% + 1.00%) on $100 million of the Senior Unsecured Term Loan principal. The swap is effective January 31, 2019 through January 31, 2024. On August 15, 2019, the Company entered into a swap agreement to set the LIBOR portion of interest expense on $225 million of the Senior Unsecured Term Loan principal at a rate of 1.30%. This results in a fixed interest rate of 2.30% (1.30% + 1.00%) on $225 million of the Senior Unsecured Term Loan principal. The swap is effective August 30, 2019 through August 30, 2024.


23
    
 
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Financial Supplement
Fourth Quarter 2019
                                        

Operations Overview
Revenue and Contribution by Segment
(In thousands - unaudited)

Three Months Ended December 31,

Years Ended December 31,

2019

2018

2019

2018
Segment revenues:







Warehouse
$
383,778


$
305,458


$
1,377,217


$
1,176,912

Third-party managed
64,442


66,852


252,939


259,034

Transportation
35,571


41,363


144,844


158,790

Other
2,193


2,144


8,705


8,899

Total revenues
485,984


415,817


1,783,705


1,603,635









Segment contribution:







Warehouse
129,547


100,491


447,591


374,534

Third-party managed
3,115


3,571


11,761


14,760

Transportation
4,865


4,407


18,067


15,735

Other
227


209


838


620

Total segment contribution
137,754


108,678


478,257


405,649









Reconciling items:







Depreciation, depletion and amortization
(47,750
)

(29,792
)

(163,348
)

(117,653
)
Selling, general and administrative expense
(33,048
)

(27,646
)

(129,310
)

(110,825
)
Acquisition, litigation and other
(10,377
)

832


(40,614
)

(3,935
)
Impairment of long-lived assets
—


—


(13,485
)

(747
)
(Loss) gain from sale of real estate
—


(901
)

(34
)

7,471

Interest expense
(23,827
)

(23,054
)

(94,408
)

(93,312
)
Interest income
1,080


1,387


6,286


3,996

Bridge loan commitment fees
—


—


(2,665
)

—

Loss on debt extinguishment, modifications and termination of derivative instruments
—


(26,174
)

—


(47,559
)
Foreign currency exchange gain (loss)
76


(43
)

10


2,882

Other expense, net
(863
)

(717
)

(1,870
)

(532
)
Loss from investments in partially owned entities
—


(745
)

(111
)

(1,069
)
Gain from sale of partially owned entities
—


—


4,297


—

Income before income tax benefit
$
23,045


$
1,825


$
43,005


$
44,366

We view and manage our business through three primary business segments—warehouse, third-party managed and transportation. Our core business is our warehouse segment, where we provide temperature-controlled warehouse storage and related handling and other warehouse services. In our warehouse segment, we collect rent and storage fees from customers to store their frozen and perishable food and other products within our real estate portfolio. We also provide our customers with handling and other warehouse services related to the products stored in our buildings that are designed to optimize their movement through the cold chain, such as the placement of food products for storage and preservation, the retrieval of products from storage upon customer request, blast freezing, case-picking, kitting and repackaging and other recurring handling services.
Under our third-party managed segment, we manage warehouses on behalf of third parties and provide warehouse management services to several leading food retailers and manufacturers in customer-owned facilities, including some of our largest and longest-standing customers. We believe using our third-party management services allows our customers to increase efficiency, reduce costs, reduce supply-chain risks and focus on their core businesses. We also believe that providing third-party management services to many of our key customers underscores our ability to offer a complete and integrated suite of services across the cold chain.
In our transportation segment, we broker and manage transportation of frozen and perishable food and other products for our customers. Our transportation services include consolidation services (i.e., consolidating a customer’s products with those of other customers for more efficient shipment), freight under management services (i.e., arranging for and overseeing transportation of customer inventory) and dedicated transportation services, each designed to improve efficiency and reduce transportation and logistics costs to our customers. We provide these transportation services at cost plus a service fee or, in the case of our consolidation services, we charge a fixed fee.
We also operate a limestone quarry on the land we own around our Carthage, Missouri warehouse, which contains substantial limestone deposits. We do not view the operation of the quarry as an integral part of our business.

24
    
 
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Financial Supplement
Fourth Quarter 2019
                                        


Global Warehouse Economic and Physical Occupancy Trend
q42019occupancychart.jpg
Note: Dotted lines represent incremental economic occupancy percentage.
We define average economic occupancy as the aggregate number of physically occupied pallets and any additional pallets otherwise contractually committed for a given period, without duplication. We estimate the number of contractually committed pallet positions by taking into account actual pallet commitments specified in each customer’s contract, and subtracting the physical pallet positions.
We define average physical occupancy as the average number of occupied pallets divided by the estimated number of average physical pallet positions in our warehouses for the applicable period. We estimate the number of physical pallet positions by taking into account actual racked space and by estimating unracked space on an as-if racked basis. We base this estimate on the total cubic feet of each room within the warehouse that is unracked divided by the volume of an assumed rack space that is consistent with the characteristics of the relevant warehouse. On a warehouse by warehouse basis, rack space generally ranges from three to four feet depending upon the type of facility and the nature of the customer goods stored therein. The number of our pallet positions is reviewed and updated quarterly, taking into account changes in racking configurations and room utilization.
Historically, providers of temperature-controlled warehouse space have offered storage services to customers on an as-utilized, on-demand basis. We have entered into fixed storage commitments with certain customers which give us, among other things, additional clarity around the expected occupancy of our warehouses. As of December 31, 2019, we had entered into contracts featuring fixed storage commitments or leases with 133 of our customers in our warehouse segment. Customers with fixed storage provisions commit to occupy a certain number of pallets at a designated storage rate for the applicable portion of their contractual term, whether the customer elects to physically store goods in a warehouse or not. As a result, certain pallets in our warehouses may generate storage revenue pursuant to fixed storage commitments despite not being physically occupied. We refer to economic occupancy as the aggregate number of physically occupied pallets and any additional pallets otherwise contractually committed for a given period. To the extent that a customer with a fixed storage provision elects not to utilize all of its committed pallets in a particular warehouse, we have the flexibility to deploy those pallets to facilitate shorter-term customers that desire space on an as-utilized, on demand basis.

25
 
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Financial Supplement
Fourth Quarter 2019


Global Warehouse Portfolio
Unaudited
Country / Region
 
# of
warehouses
 
Cubic feet
(in millions)
 
% of
total
cubic feet
 
Pallet
positions
(in thousands)
 
Average economic occupancy (1)
 
Average
physical
occupancy (1)
 
Revenues (2)
(in millions)
 
Applicable
segment
contribution
(NOI) (2)(3)
(in millions)
 
Total
customers (4)
Owned / Leased (5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Central
 
41

 
256.1

 
25
%
 
1,011.3

 
80
%
 
77
%
 
$
314.5

 
$
117.7

 
851

East
 
28

 
216.0

 
21
%
 
670.8

 
77
%
 
73
%
 
284.5

 
84.7

 
816

Southeast
 
47

 
245.6

 
24
%
 
707.0

 
82
%
 
78
%
 
300.8

 
91.5

 
822

West
 
37

 
230.0

 
22
%
 
981.9

 
77
%
 
72
%
 
278.8

 
106.6

 
678

United States Total / Average
 
153

 
947.7

 
92
%
 
3,371.0

 
79
%
 
75
%
 
$
1,178.6

 
$
400.5

 
2,432

International
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Australia
 
5

 
47.6

 
5
%
 
138.8

 
83
%
 
81
%
 
$
161.2

 
$
37.2

 
60

New Zealand
 
7

 
20.4

 
2
%
 
72.4

 
93
%
 
89
%
 
29.6

 
8.5

 
64

Argentina
 
2

 
9.7

 
1
%
 
21.6

 
79
%
 
79
%
 
7.8

 
1.4

 
48

International Total / Average
 
14

 
77.7

 
8
%
 
232.8

 
86
%
 
83
%
 
$
198.6

 
$
47.1

 
173

Owned / Leased Total / Average
 
167

 
1,025.4

 
100
%
 
3,603.8

 
80
%
 
76
%
 
$
1,377.2

 
$
447.6

 
2,601

Third-Party Managed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
 
7

 
38.5

 
73
%
 
—

 
—

 
—

 
$
220.2

 
$
8.0

 
4

Australia (6)
 
1

 
—

  
—
%
 
—

 
—

 
—

 
14.9

 
2.3

 
1

Canada
 
3

 
14.3

 
27
%
 
—

 
—

 
—

 
17.9

 
1.5

 
2

Third-Party Managed Total / Average
 
11

 
52.8

 
100
%
 
—

 
—

 
—

 
$
253.0

 
$
11.8

 
7

Portfolio Total / Average
 
178

 
1,078.2

 
100
%
 
3,603.8

 
80
%
 
76
%
 
$
1,630.2

 
$
459.4

 
2,602

 
(1)
Refer to the preceding section Global Warehouse Economic and Physical Occupancy Trend for our definitions of economic occupancy and physical occupancy.
(2)
Year ended December 31, 2019.
(3)
We use the term “segment contribution (NOI)” to mean a segment’s revenues less its cost of operations (excluding any depreciation, depletion and amortization, impairment charges, corporate-level selling, general and administrative expenses, corporate-level acquisition, litigation and other expenses and gain or loss on sale of real estate). The applicable segment contribution (NOI) from our owned and leased warehouses and our third-party managed warehouses is included in our warehouse segment contribution (NOI) and third-party managed segment contribution (NOI), respectively.
(4)
We serve some of our customers in multiple geographic regions and in multiple facilities within geographic regions. As a result, the total number of customers that we serve is less than the total number of customers reflected in the table above that we serve in each geographic region.
(5)
As of December 31, 2019, we owned 133 of our U.S. warehouses and ten of our international warehouses, and we leased 20 of our U.S. warehouses and four of our international warehouses. As of December 31, 2019, seven of our owned facilities were located on land that we lease pursuant to long-term ground leases.
(6)
Constitutes non-refrigerated, or “ambient,” warehouse space. This facility contains 330,527 square feet of ambient space.


26
    
 
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Financial Supplement
Fourth Quarter 2019
                                        


chart-c869d3f1c92a0422ce6.jpgchart-b764d7bc3aa3b6e6c4d.jpg
chart-8e3a3723eaa92459fea.jpgchart-66fda9de00b22842a6e.jpg
_______________________________________________
(1)
Retail reflects a broad variety of product types from retail customers.
(2)
Packaged foods reflects a broad variety of temperature-controlled meals and foodstuffs.
(3)
Distributors reflects a broad variety of product types from distributor customers.


____________________
Note: December 31, 2019 LTM Revenue and NOI pro forma 2019 acquisitions.
Totals may not foot due to rounding.

27
    
 
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Financial Supplement
Fourth Quarter 2019
                                        


Fixed Commitment and Lease Maturity Schedules
Unaudited
The following table sets forth a summary schedule of the expirations for any defined contracts featuring fixed storage commitments and leases in effect as of December 31, 2019. The information set forth in the table assumes no exercise of extension options under these contracts and leases.
Contract Expiration Year
 
Number
of
Contracts
 
Annualized
Committed Rent
& Storage
Revenue
(in thousands)
 
% of Total
Warehouse
Rent & Storage
Segment
Revenue for the
Twelve Months
Ended
December 31,
2019
 
Total Warehouse Segment Revenue Generated by Contracts with Fixed Commitments & Leases for the Twelve Months Ended December 31, 2019(1) (in thousands)
 
Annualized
Committed Rent
& Storage
Revenue at
Expiration(2)
(in thousands)
Month-to-Month
 
40

 
$
38,810

 
6.3
%
 
$
86,188

 
$
38,261

2020
 
52

 
31,628

 
5.1
%
 
91,120

 
32,014

2021
 
43

 
42,438

 
6.9
%
 
190,363

 
43,202

2022
 
32

 
51,703

 
8.4
%
 
120,416

 
56,448

2023
 
22

 
38,091

 
6.2
%
 
88,095

 
40,697

2024
 
17

 
21,625

 
3.5
%
 
46,736

 
23,131

2025
 
1

 
1,558

 
0.3
%
 
3,364

 
1,807

2026
 
2

 
7,302

 
1.2
%
 
9,978

 
7,510

2027
 
3

 
4,671

 
0.8
%
 
12,348

 
4,992

2028
 
1

 
1,099

 
0.2
%
 
1,901

 
1,099

2029 and thereafter
 
3

 
12,166

 
2.0
%
 
26,658

 
14,337

Total
 
216

 
$
251,091

 
40.6
%
 
$
677,167

 
$
263,498

chart-d89a7a7091ac582a9b6.jpgchart-3575752c56bd52f18bf.jpg
____________________
Note: December 31, 2019 LTM total revenue and rent and storage revenue pro forma 2019 acquisitions.
(1)
Represents monthly fixed storage commitments and lease rental payments under the relevant expiring defined contract and lease as of December 31, 2019, plus the weighted average monthly warehouse services revenues attributable to these contracts and leases for the last twelve months ended December 31, 2019, multiplied by 12.
(2)
Represents annualized monthly revenues from fixed storage commitments and lease rental payments under the defined contracts and relevant expiring leases as of December 31, 2019 based upon the monthly revenues attributable thereto in the last month prior to expiration, multiplied by 12.

28
    
 
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Financial Supplement
Fourth Quarter 2019
                                        


The following table sets forth a summary schedule of the expirations of our facility leased warehouses and other leases pursuant to which we lease space to third parties in our warehouse portfolio, in each case, in place as of December 31, 2019. These leases had a weighted average remaining term of 37 months as of December 31, 2019.
Lease Expiration Year
 
No. of
Leases
Expiring
 
Annualized
Rent(1)
(in thousands)
 
% of Total
Warehouse Rent &
Storage Segment
Revenue for the
Twelve Months Ended
December 31, 2019
 
Leased
Square
Footage
(in thousands)
 
% Leased
Square
Footage
 
Annualized
Rent at
Expiration(2)
(in thousands)
Month-to-Month
 
2

 
$
259

 
—
%
 
22

 
1.0
%
 
$
259

2020
 
22

 
5,472

 
0.9
%
 
632

 
28.4
%
 
5,489

2021
 
13

 
2,069

 
0.3
%
 
508

 
22.8
%
 
2,264

2022
 
5

 
1,337

 
0.2
%
 
141

 
6.3
%
 
1,382

2023
 
3

 
2,909

 
0.5
%
 
440

 
19.7
%
 
2,985

2024
 
4

 
1,447

 
0.2
%
 
304

 
13.6
%
 
1,554

2025
 
1

 
1,558

 
0.3
%
 
130

 
5.8
%
 
1,807

2026 and thereafter
 
2

 
1,099

 
0.2
%
 
52

 
2.3
%
 
1,099

Total
 
52

 
$
16,150

 
2.6
%
 
2,229

 
100
%
 
$
16,839


____________________
Note: December 31, 2019 LTM rent and storage revenue pro forma 2019 acquisitions.
(1)
Represents monthly rental payments under the relevant leases as of December 31, 2019, multiplied by 12.
(2)
Represents monthly rental payments under the relevant leases in the calendar year of expiration, multiplied by 12.



29
    
 
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Financial Supplement
Fourth Quarter 2019
                                        


Recurring Maintenance Capital Expenditures, Repair and Maintenance Expenses and
External Growth, Expansion and Development Capital Expenditures
We utilize a strategic and preventative approach to recurring maintenance capital expenditures and repair and maintenance expenses to maintain the high quality and operational efficiency of our warehouses and ensure that our warehouses meet the “mission-critical” role they serve in the cold chain.
Recurring Maintenance Capital Expenditures
The following table sets forth our recurring maintenance capital expenditures for the three months and years ended December 31, 2019 and 2018.
 
 
Three Months Ended December 31,
 
Years Ended December 31,
2019
 
2018
 
2019
 
2018
 
(In thousands, except per cubic foot amounts)
Real estate
$
23,492

 
$
10,441

 
$
50,966

 
$
37,613

Personal property
1,552

 
1,472

 
4,357

 
3,175

Information technology
1,263

 
738

 
3,977

 
3,187

Total recurring maintenance capital expenditures
$
26,307

 
$
12,651

 
$
59,300

 
$
43,975

 
 
 
 
 
 
 
 
Total recurring maintenance capital expenditures per cubic foot
$
0.024

 
$
0.014

 
$
0.055

 
$
0.048


Repair and Maintenance Expenses
The following table sets forth our repair and maintenance expenses for the three months and years ended December 31, 2019 and 2018.
 
 
Three Months Ended December 31,
 
Years Ended December 31,
2019
 
2018
 
2019
 
2018
 
(In thousands, except per cubic foot amounts)
Real estate
$
4,318

 
$
4,714

 
$
22,378

 
$
19,813

Personal property
9,251

 
8,555

 
33,150

 
32,536

Total repair and maintenance expenses
$
13,569

 
$
13,269

 
$
55,528

 
$
52,349

 
 
 
 
 
 
 
 
Repair and maintenance expenses per cubic foot
$
0.013

 
$
0.014

 
$
0.051

 
$
0.057

External Growth, Expansion and Development Capital Expenditures
The following table sets forth our external growth, expansion and development capital expenditures for the three months and years ended December 31, 2019 and 2018.
 
 
Three Months Ended December 31,
 
Years Ended December 31,
2019
 
2018
 
2019
 
2018
 
(In thousands - unaudited)
Acquisitions, net of cash acquired and adjustments
$
50,557

 
$
—

 
$
1,377,220


$
—

Expansion and development initiatives
55,632

 
15,704

 
210,594

 
72,049

Information technology
2,659

 
1,138

 
5,857

 
3,686

Total growth and expansion capital expenditures
$
108,848

 
$
16,842

 
$
1,593,671

 
$
75,735



30
    
 
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Financial Supplement
Fourth Quarter 2019
                                        


Global Warehouse Segment Financial Performance
The following table presents the operating results of our warehouse segment for the three months ended December 31, 2019 and 2018.
 
Three Months Ended December 31,
 
Change
 
2019 actual
 
2019 constant currency(1)
 
2018 actual
 
Actual
 
Constant currency
 
(Dollars in thousands - unaudited)
 
 
 
 
Rent and storage
$
158,105

 
$
159,221

 
$
133,650

 
18.3
%
 
19.1
%
Warehouse services
225,673

 
227,806

 
171,808

 
31.4
%
 
32.6
%
Total warehouse segment revenue
383,778

 
387,027

 
305,458

 
25.6
%
 
26.7
%
 
 
 
 
 
 
 
 
 
 
Power
20,641

 
20,816

 
16,666

 
23.9
%
 
24.9
%
Other facilities costs (2)
30,006

 
30,265

 
25,314

 
18.5
%
 
19.6
%
Labor
170,704

 
172,459

 
136,028

 
25.5
%
 
26.8
%
Other services costs (3)
32,880

 
33,074

 
26,959

 
22.0
%
 
22.7
%
Total warehouse segment cost of operations
254,231

 
256,614

 
204,967

 
24.0
%
 
25.2
%
Warehouse segment contribution (NOI)
$
129,547

 
$
130,413

 
$
100,491

 
28.9
%
 
29.8
%
 
 
 
 
 
 
 
 
 
 
Warehouse rent and storage contribution (NOI) (4)
$
107,458

 
$
108,140

 
$
91,670

 
17.2
%
 
18.0
%
Warehouse services contribution (NOI) (5)
$
22,089

 
$
22,273

 
$
8,821

 
150.4
%
 
152.5
%
 
 
 
 
 
 
 
 
 
 
Total warehouse segment margin
33.8
%
 
33.7
%
 
32.9
%
 
86 bps

 
80 bps

Rent and storage margin(6)
68.0
%
 
67.9
%
 
68.6
%
 
-62 bps

 
-67 bps

Warehouse services margin(7)
9.8
%
 
9.8
%
 
5.1
%
 
465 bps

 
464 bps


(1)
The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis are the effect of changes in foreign currency exchange rates relative to the comparable prior period.
(2)
Includes real estate rent expense of $2.8 million and $3.1 million for the fourth quarter 2019 and 2018, respectively.
(3)
Includes non-real estate rent expense (equipment lease and rentals) of $3.3 million and $3.6 million for the fourth quarter of 2019 and 2018, respectively.
(4)
Calculated as rent and storage revenues less power and other facilities costs.
(5)
Calculated as warehouse services revenues less labor and other services costs.
(6)
Calculated as warehouse rent and storage contribution (NOI) divided by warehouse rent and storage revenues.
(7)
Calculated as warehouse services contribution (NOI) divided by warehouse services revenues.

























31
    
 
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Financial Supplement
Fourth Quarter 2019
                                        


The following table presents the operating results of our warehouse segment for the years ended December 31, 2019 and 2018.
 
Years Ended December 31,
 
Change
 
2019 actual
 
2019 constant currency(1)
 
2018 actual
 
Actual
 
Constant currency
 
(Dollars in thousands - unaudited)
 
 
 
 
Rent and storage
$
582,509

 
$
589,402

 
$
514,755

 
13.2
%
 
14.5
%
Warehouse services
794,708

 
806,792

 
662,157

 
20.0
%
 
21.8
%
Total warehouse segment revenue
1,377,217

 
1,396,194

 
1,176,912

 
17.0
%
 
18.6
%
 
 
 
 
 
 
 
 
 
 
Power
82,380

 
83,626

 
72,332

 
13.9
%
 
15.6
%
Other facilities costs (2)
113,551

 
115,226

 
104,618

 
8.5
%
 
10.1
%
Labor
614,049

 
624,363

 
526,080

 
16.7
%
 
18.7
%
Other services costs (3)
119,646

 
120,951

 
99,348

 
20.4
%
 
21.7
%
Total warehouse segment cost of operations
929,626

 
944,166

 
802,378

 
15.9
%
 
17.7
%
Warehouse segment contribution (NOI)
$
447,591

 
$
452,028

 
$
374,534

 
19.5
%
 
20.7
%
 
 
 
 
 
 
 
 
 
 
Warehouse rent and storage contribution (NOI) (4)
$
386,578

 
$
390,550

 
$
337,805

 
14.4
%
 
15.6
%
Warehouse services contribution (NOI) (5)
$
61,013

 
$
61,478

 
$
36,729

 
66.1
%
 
67.4
%
 
 
 
 
 
 
 
 
 
 
Total warehouse segment margin
32.5
%
 
32.4
%
 
31.8
%
 
68 bps

 
55 bps

Rent and storage margin(6)
66.4
%
 
66.3
%
 
65.6
%
 
74 bps

 
64 bps

Warehouse services margin(7)
7.7
%
 
7.6
%
 
5.5
%
 
213 bps

 
207 bps

(1)
The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis are the effect of changes in foreign currency exchange rates relative to the comparable prior period.
(2)
Includes real estate rent expense of $12.3 million and $13.9 million for the years ended December 31, 2019 and 2018, respectively
(3)
Includes non-real estate rent expense of $12.0 million and $13.8 million for the years ended December 31, 2019 and 2018, respectively.
(4)
Calculated as rent and storage revenues less power and other facilities costs.
(5)
Calculated as warehouse services revenues less labor and other services costs.
(6)
Calculated as warehouse rent and storage contribution (NOI) divided by warehouse rent and storage revenues.
(7)
Calculated as warehouse services contribution (NOI) divided by warehouse services revenues.





32
    
 
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Financial Supplement
Fourth Quarter 2019
                                        

Same-store Financial Performance
The following table presents revenues, cost of operations, contribution (NOI) and margins for our same stores and non-same stores with a reconciliation to the total financial metrics of our warehouse segment for the three months ended December 31, 2019 and 2018.

 
Three Months Ended December 31,
 
Change
 
2019 actual
 
2019 constant currency(1)
 
2018 actual
 
Actual
 
Constant currency
Number of same store warehouses
137
 
 
 
137
 
n/a

 
n/a

Same store revenues:
(Dollars in thousands - unaudited)
 
 
 
 
Rent and storage
$
130,295

 
$
131,370

 
$
128,990

 
1.0
 %
 
1.8
 %
Warehouse services
177,345

 
179,458

 
168,501

 
5.2
 %
 
6.5
 %
Total same store revenues
307,640

 
310,828

 
297,491

 
3.4
 %
 
4.5
 %
Same store cost of operations:
 
 
 
 
 
 
 
 
 
Power
15,645

 
15,815

 
15,854

 
(1.3
)%
 
(0.2
)%
Other facilities costs
24,298

 
24,524

 
24,072

 
0.9
 %
 
1.9
 %
Labor
137,476

 
139,210

 
133,240

 
3.2
 %
 
4.5
 %
Other services costs
23,267

 
23,447

 
26,324

 
(11.6
)%
 
(10.9
)%
Total same store cost of operations
$
200,686

 
$
202,996

 
$
199,490

 
0.6
 %
 
1.8
 %
 
 
 
 
 
 
 
 
 
 
Same store contribution (NOI)
$
106,954

 
$
107,832

 
$
98,001

 
9.1
 %
 
10.0
 %
Same store rent and storage contribution (NOI)(2)
$
90,352

 
$
91,031

 
$
89,064

 
1.4
 %
 
2.2
 %
Same store services contribution (NOI)(3)
$
16,602

 
$
16,801

 
$
8,937

 
85.8
 %
 
88.0
 %
 
 
 
 
 
 
 
 
 
 
Total same store margin
34.8
%
 
34.7
%
 
32.9
%
 
182 bps

 
175 bps

Same store rent and storage margin(4)
69.3
%
 
69.3
%
 
69.0
%
 
30 bps

 
25 bps

Same store services margin(5)
9.4
%
 
9.4
%
 
5.3
%
 
406 bps

 
406 bps

 
 
 
 
 
 
 
 
 
 
Number of non-same store warehouses
30
 
 
 
7
 
n/a

 
n/a

Non-same store revenues:
 
 
 
 
 
 
 
 
 
Rent and storage
$
27,810

 
$
27,851

 
$
4,660

 
n/r

 
n/r

Warehouse services
48,328

 
48,348

 
3,307

 
n/r

 
n/r

Total non-same store revenues
76,138

 
76,199

 
7,967

 
n/r

 
n/r

Non-same store cost of operations:
 
 
 
 
 
 
 
 
 
Power
4,996

 
5,001

 
812

 
n/r

 
n/r

Other facilities costs
5,708

 
5,741

 
1,242

 
n/r

 
n/r

Labor
33,228

 
33,249

 
2,788

 
n/r

 
n/r

Other services costs
9,613

 
9,627

 
635

 
n/r

 
n/r

Total non-same store cost of operations
$
53,545

 
$
53,618

 
$
5,477

 
n/r

 
n/r

 
 
 
 
 
 
 
 
 
 
Non-same store contribution (NOI)
$
22,593

 
$
22,581

 
$
2,490

 
n/r

 
n/r

Non-same store rent and storage contribution (NOI)(2)
$
17,106

 
$
17,109

 
$
2,606

 
n/r

 
n/r

Non-same store services contribution (NOI)(3)
$
5,487

 
$
5,472

 
$
(116
)
 
n/r

 
n/r

 
 
 
 
 
 
 
 
 
 
Total warehouse segment revenues
$
383,778

 
$
387,027

 
$
305,458

 
25.6
 %
 
26.7
 %
Total warehouse cost of operations
$
254,231

 
$
256,614

 
$
204,967

 
24.0
 %
 
25.2
 %
Total warehouse segment contribution
$
129,547

 
$
130,413

 
$
100,491

 
28.9
 %
 
29.8
 %
(1)
The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis is the effect of changes in foreign currency exchange rates relative to the comparable prior period.
(2)
Calculated as rent and storage revenues less power and other facilities costs.
(3)
Calculated as warehouse services revenues less labor and other services costs.
(4)
Calculated as same store rent and storage contribution (NOI) divided by same store rent and storage revenues.
(5)
Calculated as same store warehouse services contribution (NOI) divided by same store warehouse services revenues.

33
    
 
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Financial Supplement
Fourth Quarter 2019
                                        


The following table presents revenues, cost of operations, contribution (NOI) and margins for our same stores and non-same stores with a reconciliation to the total financial metrics of our warehouse segment for the years ended December 31, 2019 and 2018.

 
Years Ended December 31,
 
Change
 
2019 actual
 
2019 constant currency(1)
 
2018 actual
 
Actual
 
Constant currency
Number of same store warehouses
136
 
 
 
136
 
n/a

 
n/a

Same store revenue:
(Dollars in thousands - unaudited)
 
 
 
 
Rent and storage
$
499,151

 
$
505,811

 
$
495,130

 
0.8
 %
 
2.2
 %
Warehouse services
668,673

 
680,640

 
650,806

 
2.7
 %
 
4.6
 %
Total same store revenue
1,167,824

 
1,186,451

 
1,145,936

 
1.9
 %
 
3.5
 %
Same store cost of operations:
 
 
 
 
 
 
 
 
 
Power
67,537

 
68,760

 
69,844

 
(3.3
)%
 
(1.6
)%
Other facilities costs
97,158

 
98,684

 
97,018

 
0.1
 %
 
1.7
 %
Labor
527,687

 
537,894

 
516,052

 
2.3
 %
 
4.2
 %
Other services costs
94,870

 
96,125

 
96,834

 
(2.0
)%
 
(0.7
)%
Total same store cost of operations
$
787,252

 
$
801,463

 
$
779,748

 
1.0
 %
 
2.8
 %
 
 
 
 
 
 
 
 
 
 
Same store contribution (NOI)
$
380,572

 
$
384,988

 
$
366,188

 
3.9
 %
 
5.1
 %
Same store rent and storage contribution (NOI)(2)
$
334,456

 
$
338,367

 
$
328,268

 
1.9
 %
 
3.1
 %
Same store services contribution (NOI)(3)
$
46,116

 
$
46,621

 
$
37,920

 
21.6
 %
 
22.9
 %
 
 
 
 
 
 
 
 
 
 
Total same store margin
32.6
%
 
32.4
%
 
32.0
%
 
63 bps

 
49 bps

Same store rent and storage margin(4)
67.0
%
 
66.9
%
 
66.3
%
 
71 bps

 
60 bps

Same store services margin(5)
6.9
%
 
6.8
%
 
5.8
%
 
107 bps

 
102 bps

 
 
 
 
 
 
 
 
 
 
Number of non-same store warehouses
31
 
 
 
8
 
n/a

 
n/a

Non-same store revenue:
 
 
 
 
 
 
 
 
 
Rent and storage
$
83,358

 
$
83,591

 
$
19,625

 
n/r

 
n/r

Warehouse services
126,035

 
126,152

 
11,351

 
n/r

 
n/r

Total non-same store revenue
209,393

 
209,743

 
30,976

 
n/r

 
n/r

Non-same store cost of operations:
 
 
 
 
 
 
 
 
 
Power
14,843

 
14,866

 
2,488

 
n/r

 
n/r

Other facilities costs
16,393

 
16,542

 
7,600

 
n/r

 
n/r

Labor
86,362

 
86,469

1

10,028

 
n/r

 
n/r

Other services costs
24,776

 
24,826

 
2,514

 
n/r

 
n/r

Total non-same store cost of operations
$
142,374

 
$
142,703

 
$
22,630

 
n/r

 
n/r

 
 
 
 
 
 
 
 
 
 
Non-same store contribution (NOI)
$
67,019

 
$
67,040

 
$
8,346

 
n/r

 
n/r

Non-same store rent and storage contribution (NOI)(2)
$
52,122

 
$
52,183

 
$
9,537

 
n/r

 
n/r

Non-same store services contribution (NOI)(3)
$
14,897

 
$
14,857

 
$
(1,191
)
 
n/r

 
n/r

 
 
 
 
 
 
 
 
 
 
Total warehouse segment revenue
$
1,377,217

 
$
1,396,194

 
$
1,176,912

 
17.0
 %
 
18.6
 %
Total warehouse cost of operations
$
929,626

 
$
944,166

 
$
802,378

 
15.9
 %
 
17.7
 %
Total warehouse segment contribution
$
447,591

 
$
452,028

 
$
374,534

 
19.5
 %
 
20.7
 %
(1)
The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis is the effect of changes in foreign currency exchange rates relative to the comparable prior period.
(2)
Calculated as rent and storage revenues less power and other facilities costs.
(3)
Calculated as warehouse services revenues less labor and other services costs.
(4)
Calculated as same store rent and storage contribution (NOI) divided by same store rent and storage revenues.
(5)
Calculated as same store warehouse services contribution (NOI) divided by same store warehouse services revenues.

34
    
 
americoldrealtytrustlogoa09.jpg
 
Financial Supplement
Fourth Quarter 2019
                                        

Same-store Key Operating Metrics
The following table provides certain operating metrics to explain the drivers of our same store performance for the three months ended December 31, 2019 and 2018.

 
Three Months Ended December 31,
 
Change
Units in thousands except per pallet and site data - unaudited
2019
 
2018
 
Number of same store warehouses
137
 
137
 
n/a

Same store rent and storage:
 
 
 
 
 
Economic occupancy(1)
 
 
 
 
 
Average economic occupied pallets
2,597

 
2,566

 
1.2
 %
Economic occupancy percentage
84.6
%
 
83.5
%
 
112 bps

Same store rent and storage revenues per economic occupied pallet
$
50.18

 
$
50.27

 
(0.2
)%
Constant currency same store rent and storage revenue per economic occupied pallet
$
50.59

 
$
50.27

 
0.6
 %
 
 
 
 
 
 
Physical occupancy(2)
 
 
 
 
 
Average physical occupied pallets
2,471

 
2,471

 
—
 %
Average physical pallet positions
3,070

 
3,074

 
(0.1
)%
Physical occupancy percentage
80.5
%
 
80.4
%
 
10 bps

Same store rent and storage revenues per physical occupied pallet
$
52.73

 
$
52.19

 
1.0
 %
Constant currency same store rent and storage revenues per physical occupied pallet
$
53.16

 
$
52.19

 
1.9
 %
 
 
 
 
 
 
Same store warehouse services:
 
 
 
 
 
Throughput pallets
6,770

 
6,793

 
(0.3
)%
Same store warehouse services revenues per throughput pallet
$
26.20

 
$
24.81

 
5.6
 %
Constant currency same store warehouse services revenues per throughput pallet
$
26.51

 
$
24.81

 
6.9
 %
 
 
 
 
 
 
Number of non-same store warehouses
30
 
7
 
n/a

Non-same store rent and storage:
 
 
 
 
 
Economic occupancy(1)
 
 
 
 
 
Average economic occupied pallets
588

 
97

 
n/r

Economic occupancy percentage
77.2
%
 
90.8
%
 
 
 
 
 
 
 
 
Physical occupancy(2)
 
 
 
 
 
Average physical occupied pallets
574

 
92

 
n/r

Average physical pallet positions
762

 
107

 
n/r

Physical occupancy percentage
75.3
%
 
85.8
%
 
 
 
 
 
 
 
 
Non-same store warehouse services:
 
 
 
 
 
Throughput pallets
1,459

 
170

 
n/r


(1)
We define average economic occupancy as the aggregate number of physically occupied pallets and any additional pallets otherwise contractually committed for a given period, without duplication. We estimate the number of contractually committed pallet positions by taking into account actual pallet commitments specified in each customer’s contract, and subtracting the physical pallet positions.
(2)
We define average physical occupancy as the average number of occupied pallets divided by the estimated number of average physical pallet positions in our warehouses for the applicable period. We estimate the number of physical pallet positions by taking into account actual racked space and by estimating unracked space on an as-if racked basis. We base this estimate on a formula utilizing the total cubic feet of each room within the warehouse that is unracked divided by the volume of an assumed rack space that is consistent with the characteristics of the relevant warehouse. On a warehouse by warehouse basis, rack space generally ranges from three to four feet depending upon the type of facility and the nature of the customer goods stored therein. The number of our pallet positions is reviewed and updated quarterly, taking into account changes in racking configurations and room utilization.







35
    
 
americoldrealtytrustlogoa09.jpg
 
Financial Supplement
Fourth Quarter 2019
                                        


The following table provides certain operating metrics to explain the drivers of our same store performance for the years ended December 31, 2019 and 2018.

 
Years Ended December 31,
 
Change
Unit in thousands, except per pallet and site data - unaudited
2019
 
2018
 
Number of same store warehouses
136
 
136
 
n/a

Same store rent and storage:
 
 
 
 
 
Economic occupancy(1)
 
 
 
 
 
Average occupied economic pallets
2,414

 
2,447

 
(1.4
)%
Economic occupancy percentage
79.5
%
 
80.3
%
 
-76 bps

Same store rent and storage revenue per economic occupied pallet
$
206.81

 
$
202.30

 
2.2
 %
Constant currency same store rent and storage revenue per economic occupied pallet
$
209.57

 
$
202.30

 
3.6
 %
 
 
 
 
 
 
Physical occupancy(2)
 
 
 
 
 
Average physical occupied pallets
2,284

 
2,347

 
(2.6
)%
Average physical pallet positions
3,034

 
3,048

 
(0.4
)%
Physical occupancy percentage
75.3
%
 
77.0
%
 
-171 bps

Same store rent and storage revenue per physical occupied pallet
$
218.50

 
$
211.01

 
3.5
 %
Constant currency same store rent and storage revenue per physical occupied pallet
$
221.42

 
$
211.01

 
4.9
 %
 
 
 
 
 
 
Same store warehouse services:
 
 
 
 
 
Throughput pallets
26,149

 
26,422

 
(1.0
)%
Same store warehouse services revenue per throughput pallet
$
25.57

 
$
24.63

 
3.8
 %
Constant currency same store warehouse services revenue per throughput pallet
$
26.03

 
$
24.63

 
5.7
 %
 
 
 
 
 
 
Number of non-same store warehouses
31
 
8
 
n/a

Non-same store rent and storage:
 
 
 
 
 
Economic occupancy(1)
 
 
 
 
 
Average economic occupied pallets
452

 
117

 
n/r

Economic occupancy percentage
79.3
%
 
80.7
%
 
n/r

 
 
 
 
 
 
Physical occupancy(2)
 
 
 
 
 
Average physical occupied pallets
444

 
112

 
n/r

Average physical pallet positions
570

 
145

 
n/r

Physical occupancy percentage
77.9
%
 
76.9
%
 
 
 
 
 
 
 
 
Non-same store warehouse services:
 
 
 
 
 
Throughput pallets
3,941

 
523

 
n/r

(1)
We define average economic occupancy as the aggregate number of physically occupied pallets and any additional pallets otherwise contractually committed for a given period, without duplication. We estimate the number of contractually committed pallet positions by taking into account actual pallet commitment specified in each customer’s contract, and subtracting the physical pallet positions.
(2)
We define average physical occupancy as the average number of occupied pallets divided by the estimated number of average physical pallet positions in our warehouses for the applicable period. We estimate the number of physical pallet positions by taking into account actual racked space and by estimating unracked space on an as-if racked basis. We base this estimate on a formula utilizing the total cubic feet of each room within the warehouse that is unracked divided by the volume of an assumed rack space that is consistent with the characteristics of the relevant warehouse. On a warehouse by warehouse basis, rack space generally ranges from three to four feet depending upon the type of facility and the nature of the customer goods stored therein. The number of our pallet positions is reviewed and updated quarterly, taking into account changes in racking configurations and room utilization.


36
 
americoldrealtytrustlogoa09.jpg
 
Financial Supplement
Fourth Quarter 2019

External Growth and Capital Deployment
Recently Completed Expansion and Development Projects
 
 
Opportunity Type
 
Facility Type
 
Tenant Opportunity
 
Cubic Feet
(in millions)
 
Pallet Positions
(in thousands)
 
Cost of Expansion /
Development
 
Completion
Date
 
Expected Full Stabilized Quarter
Facility
 
Total Cost
(in millions)
 
NOI ROIC
 
Clearfield, UT
 
Expansion
 
Distribution
 
Multi-tenant
 
5.8

 
21

 
$29.0
 
12-15%
 
Q4 2017
 
Q4 2018
Middleboro, MA
 
Development
 
Production Advantaged
 
Build-to-suit
 
4.4

 
27

 
$23.5
 
8-12%
 
Q3 2018
 
Q4 2018
Rochelle, IL (1)
 
Expansion
 
Distribution
 
Multi-tenant
 
15.7

 
54

 
$89.7
 
12-15%
 
Q2 2019
 
Q1 2021
Chesapeake, VA (2)
 
Expansion
 
Public
 
Multi-tenant
 
4.5

 
12

 
$24.3
 
10-12%
 
Q4 2019
 
Q1 2021
North Little Rock, AR (3)
 
Expansion
 
Public
 
Multi-tenant
 
3.2

 
12

 
$18.9
 
10-12%
 
Q4 2019
 
Q1 2021
Columbus, OH (4)
 
Expansion
 
Public
 
Multi-tenant
 
1.5

 
5

 
$6.3
 
14-15%
 
Q1 2020
 
Q2 2021
Expansion and Development Projects In Process and Announced
 
 
 
 
 
 
 
 
Under
Construction
 
Investment in Expansion / Development
(in millions)
 
Expected
Stabilized
NOI ROIC
 
Target
Complete
Date
 
Expected Full Stabilized Quarter
Facility
 
Opportunity Type
 
Facility Type
 
Tenant Opportunity
Cubic Feet
(millions) (5)
 
Pallet
Positions
(thousands) (5)
Cost (6)
 
Estimate to
Complete 
 
Total Estimated
Cost
Savannah, GA (7)
 
New Build
 
Distribution
 
Multi-tenant
 
14.8

 
37

 
$57.0
 
$13-$18
 
$70-$75
 
10-15%
 
Q2 2020
 
Q3 2021
Atlanta, GA
 
Expansion /Redevelopment
 
Distribution
 
Multi-tenant
 
18.3

 
60

 
$30.6
 
$95-$105
 
$126-$136
 
10-15%
 
Q2 2021
 
Q1 2023
Auckland, New Zealand
 
Expansion
 
Distribution
 
Multi-tenant
 
4.6

 
27

 
NZD $0.0
 
NZD $65.0
 
NZD $65.0
 
12-14%
 
Q2 2021
 
Q3 2022
Recent Acquisitions
Facility
 
Metropolitan Area
 
No. of Facilities
 
Cubic Feet
(in millions)
 
Pallet
Positions
(in thousands)
 
Acquisition Price (in millions)
 
Net Entry NOI Yield (8)
 
Expected Three Year Stabilized
NOI ROIC
 
Date Purchased
 
Expected Full Stabilized Quarter
PortFresh Holdings, LLC
 
Savannah, GA
 
1
 
4.3

 
6

 
$20.0
 
6.7
%
 
9-12%
 
1/31/2019
 
Q2 2022
Cloverleaf Cold Storage (9)
 
9 states
 
22
 
132.0

 
602

 
$1,242.9
 
6.5
%
 
7-8%
 
5/1/2019
 
Q3 2022
Lanier Cold Storage
 
Georgia
 
2
 
14.4

 
51

 
$82.6
 
7.6
%
 
9-10%
 
5/1/2019
 
Q3 2022
MHW Group Inc. (10)
 
MD and PA
 
2
 
19.0

 
86

 
$54.2
 
7.8
%
 
9-10%
 
11/19/2019
 
Q4 2022
Nova Cold Logistics (9)
 
Canada
 
4
 
23.5

 
81

 
CAD $337.0
 
6.1
%
 
6.5-7.0%
 
1/2/2020
 
Q2 2023
Newport Cold
 
St. Paul, MN
 
1
 
6.1

 
26

 
$56.0
 
7.5
%
 
9-10%
 
1/2/2020
 
Q2 2023
_________________________
(1)
Cost to date as of December 31, 2019. Total cost expected to be approximately $92 - $93 million. Remaining spend incurred reflects residual cost and retainage.
(2)
Cost to date as of December 31, 2019. Total cost expected to be approximately $26 - $27 million. Remaining spend incurred reflects residual cost and retainage.
(3)
Cost to date as of December 31, 2019. Total cost expected to be approximately $19 - $20 million. Remaining spend incurred reflects residual cost and retainage.
(4)
Cost to date as of December 31, 2019. Total cost expected to be approximately $7 - $8 million. Remaining spend incurred reflects residual cost and retainage.
(5)
Cubic feet and pallet positions are estimates while the facilities are under construction.
(6)
Cost as of December 31, 2019.
(7)
Cost includes $15.9 million as part of the PortFresh Holdings, LLC acquisition completed during January 2019.
(8)
Inclusive of expenses required to integrate and reach stabilization.
(9)
Net Entry NOI Yield metric is exclusive of SG&A expense.
(10)
Acquisition price includes a $4.1 million option to purchase land under lease at date of acquisition, which was subsequently exercised during January 2020.

37
    
 
americoldrealtytrustlogoa09.jpg
 
Financial Supplement
Fourth Quarter 2019
                                        


2020 Guidance

The ranges for these metrics do not include the impact of acquisitions, dispositions, or capital markets activity beyond that which has been previously announced.
 
As of
 
Feb. 20, 2020
Warehouse segment same store revenue growth (actual and constant currency)
2.0% - 4.0%
Warehouse segment same store NOI growth (actual and constant currency)
100 - 200 bps higher than associated revenue
Managed and Transportation segment NOI
$28mm - $31mm
Total selling, general and administrative expense
$135mm - $140mm
Current income tax expense
$11mm - $13mm
Deferred income tax benefit
$1mm - $3mm
Non real estate amortization and depreciation expense
$66mm - $68mm
Total recurring maintenance capital expenditures
$65mm - $75mm
Development starts (1)
$75mm - $200mm
AFFO per share
$1.22 - $1.30
Assumed FX rates
1 AUS = 0.68 USD
1 NZD = 0.63 USD
1 ARS = 0.018 USD
1 CAD = 0.76 USD
1 BRL = 0.23 USD

(1)
Represents the aggregate invested capital for initiated development opportunities.

38
    
 
americoldrealtytrustlogoa09.jpg
 
Financial Supplement
Fourth Quarter 2019
                                        

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, and after adjustments for unconsolidated partnerships and joint ventures. 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, non-real estate asset impairment, acquisition, litigation and other expenses, excluding 2018 RSU modification expense, share-based compensation expense, IPO grants, bridge loan commitment fees, loss on debt extinguishment, modifications and termination of derivative instruments, foreign currency exchange gain or loss, gain from sale of partially owned entities, excise tax settlement and Alternative Minimum Tax receivable from TCJA. 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.
However, because FFO and Core FFO add back real estate depreciation and amortization and do not capture the level of recurring 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 financing costs, pension withdrawal liability and above or below market leases, straight-line net rent, provision or benefit from deferred income taxes, stock-based compensation expense from grants of stock options and restricted stock units under our equity incentive plans, excluding IPO grants, non-real estate depreciation, depletion or amortization (including in respect of the China JV), and recurring maintenance capital expenditures. 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 annual and quarterly 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 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, depletion and amortization, gains or losses on disposition of depreciated property, including gains or losses on change of control, impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate, and adjustment to reflect share of EBITDAre of unconsolidated affiliates. 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 impairment charges on intangible and long-lived assets, gain or loss on depreciable real property asset disposals, acquisition, litigation and other expenses, bridge loan commitment fees, loss on debt extinguishment and modifications, share-based compensation expense, foreign currency exchange gain or loss, loss on partially owned entities, gain on sale of partially owned entities, impairment of partially owned entities, and multi-employer pension plan withdrawal expense. 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 EBITDA but which we do not believe are indicative of our core business operations. EBITDA and Core EBITDA are not measurements of financial performance under U.S. GAAP, and our EBITDA and Core EBITDA may not be comparable to similarly titled measures of other companies. You should not consider our EBITDA and Core EBITDA as alternatives to net income or cash flows from operating activities determined in accordance with U.S. GAAP. Our calculations of EBITDA and Core EBITDA have limitations as analytical tools, including:
•
these measures do not reflect our historical or future cash requirements for recurring maintenance capital expenditures or growth and expansion capital expenditures;
•
these measures do not reflect changes in, or cash requirements for, our working capital needs;
•
these measures do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our indebtedness;
•
these measures do not reflect our tax expense or the cash requirements to pay our taxes; and
•
although depreciation, depletion and amortization are non-cash charges, the assets being depreciated, depleted and amortized will often have to be replaced in the future and these measures do not reflect any cash requirements for such replacements.
We use Core EBITDA and EBITDAre as measures of our operating performance and not as measures of liquidity. The table on page 21 reconciles EBITDA, EBITDAre and Core EBITDA to net income, which is the most directly comparable financial measure calculated in accordance with U.S. GAAP.
All quarterly amounts and non-GAAP disclosures within this filing shall be deemed unaudited.

39

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘8-K’ Filing    Date    Other Filings
8/30/24
1/31/24
3/5/208-K
Filed on / For Period end:2/20/20
1/15/203,  4
1/2/20
12/31/1910-K,  4
12/10/19
11/19/19
8/30/19
8/15/194
1/31/19
1/4/194
12/31/1810-K
 List all Filings 

4 Subsequent Filings that Reference this Filing

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 5/10/21  Americold Realty Trust            424B5                  1:765K                                   Donnelley … Solutions/FA
12/08/20  Americold Realty Trust            S-8        12/08/20    3:98K                                    Donnelley … Solutions/FA
10/15/20  Americold Realty Trust            424B5                  1:1.1M                                   Donnelley … Solutions/FA
10/13/20  Americold Realty Trust            424B5                  1:1.1M                                   Donnelley … Solutions/FA
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