Americold Realty Trust reports Q2 net loss amid $310 million impairment

Americold Realty Trust reported a second-quarter net loss of $342.8 million, or $1.19 per diluted share, primarily driven by a $309.6 million impairment charge. This charge followed a mutual agreement with a customer to wind down operations at facilities in Lancaster, Pennsylvania, and Plainville, Connecticut.

Despite the GAAP loss, the company reported improved underlying operational metrics. Second-quarter revenue rose 1.9% to $662.9 million, and adjusted funds from operations (AFFO) totaled $0.35 per share, exceeding expectations. CEO Rob Chambers noted that physical occupancy increased by more than 200 basis points sequentially, driven by new customer wins and market-share gains.

To address a net debt-to-pro forma Core EBITDA ratio of approximately 7.3x, Americold is advancing a joint venture with EQT. Management expects the transaction, slated to close in the third quarter, to strengthen the balance sheet and increase financial flexibility. Consequently, the company raised its full-year adjusted AFFO guidance to a range of $1.26 to $1.32 per share.