Advertisement
Americold Realty Trust Inc reported its quarterly revenue slightly above market expectations, even as it recorded a year-on-year dip of 1.6%. The company posted a net loss of USD 11.4 million due to reduced warehouse volumes and increased operational costs linked to Project Orion. Adjusted funds from operations (FFO) per share remained consistent with the previous year at USD 0.35. Analysts maintained a broadly positive stance, with most rating the stock as a 'buy' amid reaffirmed full-year guidance and modest warehouse growth projections.
Americold Realty Trust Inc recently announced that its third-quarter revenue had marginally exceeded analyst expectations, despite a 1.6% year-on-year decrease. The company reported a net loss of USD 11.4 million, primarily attributed to lower warehouse volumes and higher selling, general, and administrative expenses associated with Project Orion. Advertisement
Adjusted FFO per share held steady compared to the same period last year at USD 0.35, while adjusted EBITDA stood at USD 148.3 million and adjusted FFO totalled USD 100.7 million. Revenue reached USD 663.7 million, narrowly surpassing the consensus estimate of USD 663.5 million from four analysts.
The management reaffirmed its full-year 2025 outlook, forecasting warehouse segment same-store revenue growth in the range of -4.0% to 0.0% and projecting adjusted FFO per share between USD 1.39 and USD 1.45. The company stated that its strategic focus remains on exploring new categories and building partnerships to enhance occupancy and long-term growth potential.
Analyst sentiment around Americold's performance remains largely positive, with nine ratings in the 'strong buy' or 'buy' category, five 'hold' recommendations, and a single 'sell' or 'strong sell' rating. On average, Wall Street analysts continue to assign the stock a 'buy' rating, aligning with the broader commercial REITs peer group.
The median 12-month price target for Americold shares stands at USD 17.00, representing an approximate 24.9% premium to its recent closing price of USD 12.77. The company's valuation has notably shifted, with its shares trading at 424 times the next 12-month earnings, up from a price-to-earnings ratio of 59 three months earlier.
Americold's recent quarterly results underscore a challenging operating landscape marked by subdued volumes and higher costs, yet the company's consistency in adjusted FFO and reaffirmed guidance reflect operational stability. While near-term headwinds persist, the firm's emphasis on strategic diversification and partnership-driven expansion continues to resonate positively with investors, reinforcing a generally optimistic outlook for its future performance within the commercial REIT sector.
Source - Reuters
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
