Americold Beats Q1 Earnings Expectations, Announces $1.3 Billion Joint Venture with EQT
Americold Realty Trust reported first-quarter 2026 adjusted funds from operations (AFFO) of $0.29 per share, surpassing analyst consensus despite ongoing pressure in the cold storage market. Management highlighted stabilizing physical occupancy trends and maintained its full-year AFFO guidance between $1.20 and $1.30 per share. A major strategic development was the announcement of a new joint venture with EQT Partners, wherein EQT will hold a 70% interest. Americold is contributing a seed portfolio of 12 U.S. properties valued at over $1.3 billion. The transaction, expected to close in the third quarter, will generate approximately $1.1 billion in proceeds. These funds are designated for repaying debt maturities in 2026 and 2027, aiming to reduce the net debt to EBITDA ratio toward the target of 6 times or less. While the deal may create a modest AFFO headwind, it strengthens the company's balance sheet. Additionally, Americold emphasized successful cost-cutting initiatives totaling $30 million and strong renewal activity for fixed committed contracts, reflecting constructive customer relationships and a focus on service quality over price competition.
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Americold Beats Q1 Earnings Expectations, Announces $1.3 Billion Joint Venture with EQT
Americold Realty Trust reported first-quarter 2026 adjusted funds from operations (AFFO) of $0.29 per share, surpassing analyst consensus despite ongoing pressure in the cold storage market. Management highlighted stabilizing physical occupancy trends and maintained its full-year AFFO guidance between $1.20 and $1.30 per share. A major strategic development was the announcement of a new joint venture with EQT Partners, wherein EQT will hold a 70% interest. Americold is contributing a seed portfolio of 12 U.S. properties valued at over $1.3 billion. The transaction, expected to close in the third quarter, will generate approximately $1.1 billion in proceeds. These funds are designated for repaying debt maturities in 2026 and 2027, aiming to reduce the net debt to EBITDA ratio toward the target of 6 times or less. While the deal may create a modest AFFO headwind, it strengthens the company's balance sheet. Additionally, Americold emphasized successful cost-cutting initiatives totaling $30 million and strong renewal activity for fixed committed contracts, reflecting constructive customer relationships and a focus on service quality over price competition.
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