Americold Realty TrustNYSE: COLD

Americold Realty Trust, the largest tradeable cold-storage REIT, has underperformed due to management miscalculations and excess capacity. I like the cold-storage industry long-term, and furthermore wonder whether incoming Trump Administration policies could cause a business inflection. Americold's leadership team is relatively new, and might be on a short leash to improve results or be replaced.

Americold Realty Trust Inc. (COLD) came out with quarterly funds from operations (FFO) of $0.35 per share, missing the Zacks Consensus Estimate of $0.36 per share. This compares to FFO of $0.32 per share a year ago.

Cold Storage REITs like Americold and Lineage are essential due to their role in reducing food spoilage and supporting the cold chain infrastructure. Key growth drivers include online grocery adoption, increased frozen food consumption, recovering margins, and consolidation opportunities, making Cold Storage REITs attractive investments. Despite operational challenges, COLD's management has navigated well, and the company is poised for strong AFFO growth, justifying an overweight position.

Americold Realty Trust (COLD) is well positioned to outperform the market, as it exhibits above-average growth in financials.

Americold Realty Trust (COLD) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).

ATLANTA, GA., Sept. 17, 2024 (GLOBE NEWSWIRE) -- Americold Realty Trust, Inc. (NYSE: COLD) (the “Company”), a global leader in temperature-controlled logistics real estate and value-added services focused on the ownership, operation, acquisition and development of temperature-controlled warehouses, today announced that the Company will release third quarter 2024 financial results before the market opens on Thursday, November 7, 2024. A conference call will be held on Thursday, November 7, 2024 at 8:00 a.m. Eastern Time.

ATLANTA, GA., Sept. 05, 2024 (GLOBE NEWSWIRE) -- Americold Realty Trust, Inc. (NYSE: COLD) (the “Company” or “Americold”), a global leader in temperature-controlled logistics, real estate, and value-added services focused on the ownership, operation, acquisition and development of temperature-controlled warehouses, announced today that its operating partnership, Americold Realty Operating Partnership, L.P., a Delaware limited partnership (the “Operating Partnership”), has priced an underwritten public offering of $500 million of its 5.409% notes due September 12, 2034 (the “Notes”). The Notes, which were priced at 100% of their principal amount to yield 5.409% to maturity, will be fully and unconditionally guaranteed, jointly and severally (the “Guarantees” and, together with the Notes, the “Securities”), by each of the Company, Americold Realty Operations, Inc., a Delaware corporation and wholly-owned subsidiary of the Company and a limited partner of the Operating Partnership (the “Limited Partner”), and certain subsidiaries of the Operating Partnership (the “Subsidiary Guarantors” and, together with the Company and the Limited Partner, the “Guarantors”). The offering is expected to close on September 12, 2024, subject to customary closing conditions.

Cold storage facilities are specialized, capital intensive, and expensive, so REITs often avoid them. Americold Realty or COLD is a leading cold storage REIT that has seen significant growth since going public in 2018, but recent performance has slowed. Despite recent challenges, COLD has potential for valuation improvement or acquisition, offering opportunities for shareholder value.

While the top- and bottom-line numbers for Americold Realty Trust (COLD) give a sense of how the business performed in the quarter ended June 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.