Americold shares fall 4% as occupancy challenges lead to guidance cut

Published 07/08/2025, 12:26
 Americold shares fall 4% as occupancy challenges lead to guidance cut

ATLANTA - On Thursday, Americold Realty Trust (NYSE:COLD) reported second-quarter earnings that missed analyst expectations and lowered its full-year outlook, citing persistent industry headwinds affecting occupancy levels.

The temperature-controlled warehouse operator’s shares tumbled 4.01% in pre-market trading after the quarterly release.

The company reported second-quarter net income of $0.01 per share, significantly below the analyst consensus of $0.07 per share, despite revenue of $650.7 million exceeding expectations of $644.88 million. Adjusted funds from operations (AFFO) came in at $0.36 per share, down 5.6% from the same period last year.

Global warehouse segment same-store revenues decreased 1.5% YoY, while same-store net operating income (NOI) fell 4.2%. The company reported economic occupancy of 73.8%, down 430 basis points from 78.1% in the second quarter of 2024, reflecting lower volumes across its temperature-controlled warehouse network.

"Our team continues to execute well in the current market, despite the impacts from multiple headwinds that are constraining occupancy levels across the industry," said George Chappelle, Chief Executive Officer of Americold. "The first half of the year has largely been in-line with expectations, demonstrating the resilience and breadth of our various operating levers."

In response to the challenging environment, Americold lowered its full-year AFFO guidance to $1.39-$1.45 per share from the previous range of $1.42-$1.52. The company also revised its same-store revenue growth outlook to between -4.0% and 0.0%, down from the previous guidance of 0.0% to 2.0%.

Despite near-term challenges, the company highlighted progress on strategic initiatives, including the launch of three development projects during the quarter - a facility in Kansas City in partnership with CPKC, an expansion in Allentown, and a flagship build with DP World in Dubai.

Total (EPA:TTEF) revenues for the quarter decreased 1.5% YoY, while Core EBITDA of $159.1 million represented a 3.9% decline from the prior year period.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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