Business Wire | Feb 18, 2021 04:07PM EST

Americold Realty Trust Announces Fourth Quarter 2020 Results

Feb. 18, 2021

ATLANTA--(BUSINESS WIRE)--Feb. 18, 2021--Americold Realty Trust (NYSE: COLD) (the "Company"), the world's largest publicly traded REIT focused on the ownership, operation, acquisition and development of temperature-controlled warehouses, today announced financial and operating results for the fourth quarter ended December 31, 2020.

Fred Boehler, President and Chief Executive Officer of Americold Realty Trust, stated, "Against the challenging backdrop of the COVID-19 pandemic, we are extremely proud of the consistency and the stability of our core business throughout 2020 and our ability to deliver results in line with our pre-COVID guidance. For the full year, we generated total company revenue growth and NOI growth of 11.4% and 15.3%, respectively, driven by our continued organic growth and acquisition activity. Within our global warehouse segment, we drove same store revenue and NOI growth of 2.3% and 5.6%, respectively, on a constant currency basis. We also delivered AFFO per share growth of 10.3%, while maintaining a low levered balance sheet. We attribute these strong results to our portfolio's diversity and scale, as well as the effectiveness of the Americold Operating System and our commercialization efforts, which enabled us to overcome the supply chain disruption and financial impact of COVID-19."

Mr. Boehler continued, "2020 was also a momentous year for external growth at Americold. In the fourth quarter, we completed the acquisitions of Agro Merchants Group, previously the fourth largest temperature controlled warehouse company globally, as well as New Jersey based Hall's Warehouse Corporation. In total, we closed on $2.6 billion of acquisitions in 2020 and added 62 facilities totaling 342 million cubic feet to our global network. We entered key strategic markets in Europe and Canada through platform transactions and in Brazil through two joint ventures. We bolstered our presence in our legacy markets through deliberate and purposeful tuck-in acquisitions. At this point, our platform supports customers in 13 countries across four continents. We also grew our strategic development program, with seven projects totaling 62 million cubic feet under construction as of year end. We believe these projects materially enhance the value of our network at key logistics nodes. Finally, we executed on our stated ESG priorities, with over 95% of our facilities, excluding our 2020 acquisitions, receiving third-party gold or silver designations for energy excellence. Safety remains a top priority at Americold, and we had our sixth consecutive year with a reduction in our total recordable incident rate. We also continue to invest in training and advancement programs to further develop our employees."

"As we look ahead to 2021 and beyond, we will continue to focus on driving internal growth, integrating our recent acquisitions and executing strategic growth initiatives. Above all, we will continue to support our customers as an integral part of the global food supply chain, and our success in doing so should result in lasting shareholder value creation."

Fourth Quarter 2020 Highlights

* Total revenue increased 7.8% to $523.7 million. * Total NOI increased 11% to $152.4 million. * Core EBITDA increased 7.5% on an actual basis, and 7.0% on a constant currency basis, to $117.2 million. * Net loss of $44.0 million, or $0.21 per diluted common share. * Core FFO of $81.9 million, or $0.39 per diluted common share. * AFFO of $76.9 million, or $0.37 per diluted common share. * Global Warehouse segment revenue increased 6.3% to $407.8 million. * Global Warehouse segment NOI increased 12% to $145.7 million. * Global Warehouse segment same store revenue decreased 0.5%, or 1.4% on a constant currency basis, same store segment NOI increased by 4.0%, or increased by 3.3% on a constant currency basis. * Completed the acquisitions of Hall's for cash consideration of $481 million and Agro Merchants for total consideration of $1.7 billion. * Completed a public offering, including the green shoe, for net proceeds of approximately $1.35 billion. This funded growth initiatives, including the Agro and Hall's acquisitions. * Closed an institutional private placement offering consisting of (i) (euro)400 million senior unsecured notes with a coupon of 1.62% due January 7, 2031 ("Series D") and (ii) (euro)350 million senior unsecured notes with a coupon of 1.65% due January 7, 2033 ("Series E"). * Announced and broke ground on the expansion of our Russellville, Arkansas facility with an expected cost of $84 million to create a highly-automated build for one of our top tier customers, Conagra, with expected completion by the fourth quarter of 2022. * Announced and broke ground on the expansion of our Calgary, Canada facility with an expected cost of C$15 million for a conventional, multi-tenant use, with expected completion by the fourth quarter of 2021. * Ended the year with 161 facilities certified either Gold or Silver by the Global Cold Chain Alliance as part of its Energy Excellence Recognition Program, with over 95% of legacy Global Warehouse segment portfolio (which excludes all 2020 acquisitions) being certified by this program.

Full Year 2020 Highlights

* Total revenue increased 11.4% to $1.99 billion. * Total NOI increased 15.3% to $551.5 million. * Core EBITDA increased 16.0% to $425.9 million, or 16.3% on a constant currency basis. * Net income of $24.6 million, or $0.11 per diluted common share. * Core FFO of $255.7 million, or $1.24 per diluted common share. * AFFO of $267.9 million, or $1.29 per diluted common share. * Global Warehouse segment revenue increased 12.5% to $1.55 billion. * Global Warehouse segment NOI increased 16.3% to $520.3 million. * Global Warehouse segment same store revenue increased 1.9%, or 2.3% on a constant currency basis, same store segment NOI increased 5.3%, or 5.6% on a constant currency basis. * Completed $2.6 billion of acquisitions, including Nova Cold Logistics, Newport Cold, AM-C Warehouses, Caspers Cold Storage, Halls Warehouse Corporation, and Agro Merchants Group and acquired a 15% interest in SuperFrio for Brazil Reals of 118 million. * Announced and broke ground on five development and expansion projects with an expected total cost of $461 million.

Subsequent Event Highlights

* On January 29, 2021, closed on an amendment to our existing unsecured credit facility, which increased the multicurrency line of credit from $800 million to $1 billion, and concurrently paid down Senior Unsecured Term Loan A Facility Tranche A-1 from $325 million to $125 million using cash on the balance sheet.

Fourth Quarter 2020 Total Company Financial Results

Total revenue for the fourth quarter of 2020 was $523.7 million, a 7.8% increase from the same quarter of the prior year. This growth was primarily driven by the incremental revenue from acquisitions, recently completed development projects and revenue in our Managed segment driven by higher pass through of costs due to elevated retail volumes.

For the fourth quarter of 2020, the Company reported a net loss of $44.0 million, or $0.21 per diluted share, compared to net income of $20.8 million, or $0.10 per diluted share, for the same quarter of the prior year.

Total NOI for the fourth quarter of 2020 was $152.4 million, an increase of 11% from the same quarter of the prior year.

Core EBITDA was $117.2 million for the fourth quarter of 2020, compared to $109.1 million for the same quarter of the prior year. This reflects an 7.5% increase over prior year on an actual basis, and 7.0% on a constant currency basis, driven primarily from acquisition contribution, recently completed development projects, and organic growth in our core business. These increases were partially offset by the incremental costs incurred in response to COVID-19 and higher SG&A.

For the fourth quarter of 2020, Core FFO was $81.9 million, or $0.39 per diluted share, compared to $64.6 million, or $0.33 per diluted share, for same quarter of the prior year.

For the fourth quarter of 2020, AFFO was $76.9 million, or $0.37 per diluted share, compared to $59.7 million, or $0.30 per diluted share, for the same quarter of the prior year.

Please see the Company's supplemental financial information for the definitions and reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures.

Fourth Quarter 2020 Global Warehouse Segment Results

For the fourth quarter of 2020, Global Warehouse segment revenue was $407.8 million, an increase of $24.0 million, or 6%, compared to $383.8 million for the fourth quarter of 2019. This growth was driven by the recently completed acquisitions and development projects, paired with contractual rate escalations, partially offset by lower throughput associated with the protein and food service sectors.

Warehouse segment NOI was $145.7 million for the fourth quarter of 2020, an increase of 12%. Global Warehouse segment margin was 35.7% for the fourth quarter of 2020, an 196 basis point increase compared to the same quarter of the prior year. The year-over-year growth in segment NOI was driven by the previously mentioned revenue trends. The Company continues to incur incremental expenses to address the risks and challenges of COVID-19. These incremental COVID-19 expenses primarily include higher sanitation costs of $1.0 million while personal protective equipment ("PPE") costs were nominal. The Company has experienced certain inefficiencies due to social distancing, staggered schedules, and other changes to processes, all of which it expects to incur going forward. The Company expects to recover these costs through ongoing revenue as it signs new business and renews existing business. The Company's results include the impact of these items. Additionally, the growth reflected favorable comparisons to costs incurred in the prior year, including both health insurance and Rochelle startup related costs, both incurred in the prior comparable period.

We had 135 same stores for the years ended December 31, 2020 and 2019. The following table presents revenues, cost of operations, contribution (NOI) and margins for our same stores and non-same stores with a reconciliation to the total financial metrics of our warehouse segment for the three and twelve months ended December 31, 2020 and December 31, 2019. Amounts related to the AM-C, Cloverleaf, Caspers, Hall's, Lanier, MHW, Newport and Nova Cold acquisitions are reflected within non-same store results. The operational results from one day of ownership from the Agro acquisition is not material for the year ended December 31, 2020.

Three Months Ended December 31, Change

2020Dollars in constant Constantthousands 2020 actual 2019 actual Actual currency currency^ (1)



TOTAL WAREHOUSE SEGMENT

Number of total 229 167 n/a n/a warehouses^(2)

Global Warehouse revenue:

Rent and storage $ 173,822 $ 173,135 $ 158,105 9.9 % 9.5 %

Warehouse services 233,989 231,590 225,673 3.7 % 2.6 %

Total revenue $ 407,811 $ 404,725 $ 383,778 6.3 % 5.5 %

Global Warehouse $ 145,672 $ 144,932 $ 129,547 12.4 % 11.9 %contribution (NOI)

Global Warehouse 35.7 % 35.8 % 33.8 % 196 205 bpsmargin bps

Units in thousandsexcept per pallet data

Global Warehouserent and storage metrics:

Average economic 3,368 n/a 3,185 5.7 % n/a occupied pallets

Average physical 3,075 n/a 3,045 1.0 % n/a occupied pallets

Average physical 4,252 n/a 3,833 10.9 % n/a pallet positions

Economic occupancy 79.2 % n/a 83.1 % -389 n/a percentage bps

Physical occupancy 72.3 % n/a 79.5 % -713 n/a percentage bps

Total rent andstorage revenue per $ 51.61 $ 51.41 $ 49.64 4.0 % 3.6 %economic occupiedpallet

Total rent andstorage revenue per $ 56.52 $ 56.30 $ 51.92 8.9 % 8.4 %physical occupiedpallet

Global Warehouse services metrics:

Throughput pallets 8,290 n/a 8,229 0.7 % n/a

Total warehouseservices revenue $ 28.23 $ 27.94 $ 27.43 2.9 % 1.9 %per throughputpallet



SAME STORE WAREHOUSE

Number of same 135 135 n/a n/a store warehouses

Global Warehouse same store revenue:

Rent and storage $ 129,459 $ 128,861 $ 128,722 0.6 % 0.1 %

Warehouse services 172,933 170,580 175,107 (1.2 ) (2.6 )% %

Total same store $ 302,392 $ 299,441 $ 303,829 (0.5 ) (1.4 )%revenue %

Global Warehousesame store $ 111,067 $ 110,357 $ 106,819 4.0 % 3.3 %contribution (NOI)

Global Warehouse 36.7 % 36.9 % 35.2 % 157 170 bpssame store margin bps

Units in thousandsexcept per pallet data

Global Warehousesame store rent and storage metrics:

Average economic 2,511 n/a 2,556 (1.8 ) n/a occupied pallets %

Average physical 2,246 n/a 2,433 (7.7 ) n/a occupied pallets %

Average physical 3,037 n/a 3,030 0.2 % n/a pallet positions

Economic occupancy 82.7 % n/a 84.3 % -166 n/a percentage bps

Physical occupancy 73.9 % n/a 80.3 % -634 n/a percentage bps

Same store rent andstorage revenue per $ 51.55 $ 51.31 $ 50.37 2.3 % 1.9 %economic occupiedpallet

Same store rent andstorage revenue per $ 57.65 $ 57.38 $ 52.92 8.9 % 8.4 %physical occupiedpallet

Global Warehousesame store services metrics:

Throughput pallets 6,243 n/a 6,672 (6.4 ) n/a %

Same storewarehouse services $ 27.70 $ 27.32 $ 26.25 5.5 % 4.1 %revenue perthroughput pallet

Three Months Ended December 31,

Change

Dollars in thousands

2020 actual

2020 constant

currency(1)

2019 actual

Actual

Constant currency

NON-SAME STORE WAREHOUSE

Number of non-same store warehouses(3)

94

32

n/a

n/a

Global Warehouse non-same store revenue:

Rent and storage

$

44,363

$

44,274

$

29,383

51.0

%

50.7

%

Warehouse services

61,056

61,010

50,566

20.7

%

20.7

%

Total non-same store revenue

$

105,419

$

105,284

$

79,949

31.9

%

31.7

%

Global Warehouse non-same store contribution (NOI)

$

34,605

$

34,575

$

22,728

52.3

%

52.1

%

Global Warehouse non-same store margin

32.8

%

32.8

%

28.4

%

440 bps

441 bps

Units in thousands except per pallet data

Global Warehouse non-same store rent and storage metrics:

Average economic occupied pallets

856

n/a

629

36.1

%

n/a

Average physical occupied pallets

829

n/a

613

35.4

%

n/a

Average physical pallet positions

1,214

n/a

803

51.2

%

n/a

Economic occupancy percentage

70.5

%

n/a

78.4

%

-788 bps

n/a

Physical occupancy percentage

68.3

%

n/a

76.3

%

-805 bps

n/a

Non-same store rent and storage revenue per economic occupied pallet

$

51.80

$

51.70

$

46.69

10.9

%

10.7

%

Non-same store rent and storage revenue per physical occupied pallet

$

53.49

$

53.38

$

47.95

11.6

%

11.3

%

Global Warehouse non-same store services metrics:

Throughput pallets

2,047

n/a

1,557

31.5

%

n/a

Non-same store warehouse services revenue per throughput pallet

$

29.83

$

29.81

$

32.48

(8.2

)%

(8.2

)%

Three Months Ended December 31, Change

2020 constant 2019 ConstantDollars in thousands 2020 actual actual Actual currency currency^ (1)



NON-SAME STORE WAREHOUSE

Number of non-same 94 32 n/a n/a store warehouses^(3)

Global Warehousenon-same store revenue:

Rent and storage $ 44,363 $ 44,274 $ 29,383 51.0 % 50.7 %

Warehouse services 61,056 61,010 50,566 20.7 % 20.7 %

Total non-same store $ 105,419 $ 105,284 $ 79,949 31.9 % 31.7 %revenue

Global Warehousenon-same store $ 34,605 $ 34,575 $ 22,728 52.3 % 52.1 %contribution (NOI)

Global Warehouse 440non-same store 32.8 % 32.8 % 28.4 % bps 441 bpsmargin

Units in thousandsexcept per pallet data

Global Warehouse non-same store rent and storage metrics:

Average economic 856 n/a 629 36.1 % n/a occupied pallets

Average physical 829 n/a 613 35.4 % n/a occupied pallets

Average physical 1,214 n/a 803 51.2 % n/a pallet positions

Economic occupancy 70.5 % n/a 78.4 % -788 n/a percentage bps

Physical occupancy 68.3 % n/a 76.3 % -805 n/a percentage bps

Non-same store rentand storage revenue $ 51.80 $ 51.70 $ 46.69 10.9 % 10.7 %per economicoccupied pallet

Non-same store rentand storage revenue $ 53.49 $ 53.38 $ 47.95 11.6 % 11.3 %per physicaloccupied pallet

Global Warehousenon-same store services metrics:

Throughput pallets 2,047 n/a 1,557 31.5 % n/a

Non-same storewarehouse services $ 29.83 $ 29.81 $ 32.48 (8.2 ) (8.2 )%revenue per %throughput pallet

Year Ended December 31,

Change

Dollars in thousands

2020 actual

2020 constant

currency(1)

2019 actual

Actual

Constant currency

TOTAL WAREHOUSE SEGMENT

Number of total warehouses(2)

229

167

n/a

n/a

Global Warehouse revenue:

Rent and storage

$

666,150

$

669,154

$

582,509

14.4

%

14.9

%

Warehouse services

883,164

885,728

794,708

11.1

%

11.5

%

Total revenue

$

1,549,314

$

1,554,882

$

1,377,217

12.5

%

12.9

%

Global Warehouse contribution (NOI)

$

520,333

$

521,883

$

447,591

16.3

%

16.6

%

Global Warehouse margin

33.6

%

33.6

%

32.5

%

109 bps

106 bps

Units in thousands except per pallet data

Global Warehouse rent and storage metrics:

Average economic occupied pallets

3,233

n/a

2,865

12.8

%

n/a

Average physical occupied pallets

2,966

n/a

2,728

8.7

%

n/a

Average physical pallet positions

4,095

n/a

3,604

13.6

%

n/a

Economic occupancy percentage

79.0

%

n/a

79.5

%

-55 bps

n/a

Physical occupancy percentage

72.4

%

n/a

75.7

%

-327 bps

n/a

Total rent and storage revenue per economic occupied pallet

$

206.03

$

206.96

$

203.31

1.3

%

1.8

%

Total rent and storage revenue per physical occupied pallet

$

224.60

$

225.61

$

213.52

5.2

%

5.7

%

Global Warehouse services metrics:

Throughput pallets

32,124

n/a

30,090

6.8

%

n/a

Total warehouse services revenue per throughput pallet

$

27.49

$

27.57

$

26.41

4.1

%

4.4

%

SAME STORE WAREHOUSE

Number of same store warehouses

135

135

n/a

n/a

Global Warehouse same store revenue:

Rent and storage

$

507,848

$

510,614

$

494,273

2.7

%

3.3

%

Warehouse services

668,717

671,079

660,843

1.2

%

1.5

%

Total same store revenue

$

1,176,565

$

1,181,693

$

1,155,116

1.9

%

2.3

%

Global Warehouse same store contribution (NOI)

$

401,287

$

402,643

$

381,209

5.3

%

5.6

%

Global Warehouse same store margin

34.1

%

34.1

%

33.0

%

110 bps

107 bps

Units in thousands except per pallet data

Global Warehouse same store rent and storage metrics:

Average economic occupied pallets

2,440

n/a

2,405

1.5

%

n/a

Average physical occupied pallets

2,204

n/a

2,282

(3.4

)%

n/a

Average physical pallet positions

3,031

n/a

3,028

0.1

%

n/a

Economic occupancy percentage

80.5

%

n/a

79.4

%

110 bps

n/a

Physical occupancy percentage

72.7

%

n/a

75.4

%

-265 bps

n/a

Same store rent and storage revenue per economic occupied pallet

$

208.10

$

209.23

$

205.53

1.3

%

1.8

%

Same store rent and storage revenue per physical occupied pallet

$

230.45

$

231.70

$

216.62

6.4

%

7.0

%

Global Warehouse same store services metrics:

Throughput pallets

25,133

n/a

25,842

(2.7

)%

n/a

Same store warehouse services revenue per throughput pallet

$

26.61

$

26.70

$

25.57

4.1

%

4.4

%

Year Ended December 31, Change

Dollars in 2020 constant Constantthousands 2020 actual 2019 actual Actual currency currency^(1)



TOTALWAREHOUSE SEGMENT

Number oftotal 229 167 n/a n/a warehouses^(2)

GlobalWarehouse revenue:

Rent and $ 666,150 $ 669,154 $ 582,509 14.4 % 14.9 %storage

Warehouse 883,164 885,728 794,708 11.1 % 11.5 %services

Total revenue $ 1,549,314 $ 1,554,882 $ 1,377,217 12.5 % 12.9 %

GlobalWarehouse $ 520,333 $ 521,883 $ 447,591 16.3 % 16.6 %contribution(NOI)

Global 109Warehouse 33.6 % 33.6 % 32.5 % bps 106 bpsmargin

Units inthousands except perpallet data

GlobalWarehouserent and storagemetrics:

Averageeconomic 3,233 n/a 2,865 12.8 % n/a occupiedpallets

Averagephysical 2,966 n/a 2,728 8.7 % n/a occupiedpallets

Averagephysical 4,095 n/a 3,604 13.6 % n/a palletpositions

Economic -55occupancy 79.0 % n/a 79.5 % bps n/a percentage

Physical -327occupancy 72.4 % n/a 75.7 % bps n/a percentage

Total rentand storagerevenue per $ 206.03 $ 206.96 $ 203.31 1.3 % 1.8 %economicoccupiedpallet

Total rentand storagerevenue per $ 224.60 $ 225.61 $ 213.52 5.2 % 5.7 %physicaloccupiedpallet

GlobalWarehouse servicesmetrics:

Throughput 32,124 n/a 30,090 6.8 % n/a pallets

Totalwarehouseservices $ 27.49 $ 27.57 $ 26.41 4.1 % 4.4 %revenue perthroughputpallet



SAME STORE WAREHOUSE

Number ofsame store 135 135 n/a n/a warehouses

GlobalWarehouse same storerevenue:

Rent and $ 507,848 $ 510,614 $ 494,273 2.7 % 3.3 %storage

Warehouse 668,717 671,079 660,843 1.2 % 1.5 %services

Total same $ 1,176,565 $ 1,181,693 $ 1,155,116 1.9 % 2.3 %store revenue

GlobalWarehousesame store $ 401,287 $ 402,643 $ 381,209 5.3 % 5.6 %contribution(NOI)

GlobalWarehouse 34.1 % 34.1 % 33.0 % 110 107 bpssame store bpsmargin

Units inthousands except perpallet data

GlobalWarehousesame store rent andstoragemetrics:

Averageeconomic 2,440 n/a 2,405 1.5 % n/a occupiedpallets

Averagephysical 2,204 n/a 2,282 (3.4 ) n/a occupied %pallets

Averagephysical 3,031 n/a 3,028 0.1 % n/a palletpositions

Economic 110occupancy 80.5 % n/a 79.4 % bps n/a percentage

Physical -265occupancy 72.7 % n/a 75.4 % bps n/a percentage

Same storerent andstoragerevenue per $ 208.10 $ 209.23 $ 205.53 1.3 % 1.8 %economicoccupiedpallet

Same storerent andstoragerevenue per $ 230.45 $ 231.70 $ 216.62 6.4 % 7.0 %physicaloccupiedpallet

GlobalWarehousesame store servicesmetrics:

Throughput 25,133 n/a 25,842 (2.7 ) n/a pallets %

Same storewarehouseservices $ 26.61 $ 26.70 $ 25.57 4.1 % 4.4 %revenue perthroughputpallet

Year Ended December 31,

Change

Dollars in thousands

2020 actual

2020 constant

currency(1)

2019 actual

Actual

Constant currency

NON-SAME STORE WAREHOUSE

Number of non-same store warehouses(3)

94

32

n/a

n/a

Global Warehouse non-same store revenue:

Rent and storage

$

158,302

$

158,540

$

88,236

79.4

%

79.7

%

Warehouse services

214,447

214,649

133,865

60.2

%

60.3

%

Total non-same store revenue

$

372,749

$

373,189

$

222,101

67.8

%

68.0

%

Global Warehouse non-same store contribution (NOI)

$

119,046

$

119,240

$

66,382

79.3

%

79.6

%

Global Warehouse non-same store margin

31.9

%

32.0

%

29.9

%

205 bps

206 bps

Units in thousands except per pallet data

Global Warehouse non-same store rent and storage metrics:

Average economic occupied pallets

793

n/a

460

72.2

%

n/a

Average physical occupied pallets

762

n/a

446

70.8

%

n/a

Average physical pallet positions

1,065

n/a

576

84.8

%

n/a

Economic occupancy percentage

74.5

%

n/a

79.9

%

-542 bps

n/a

Physical occupancy percentage

71.6

%

n/a

77.5

%

-586 bps

n/a

Non-same store rent and storage revenue per economic occupied pallet

$

199.67

$

199.97

$

191.67

4.2

%

4.3

%

Non-same store rent and storage revenue per physical occupied pallet

$

207.69

$

208.00

$

197.71

5.0

%

5.2

%

Global Warehouse non-same store services metrics:

Throughput pallets

6,990

n/a

4,249

64.5

%

n/a

Non-same store warehouse services revenue per throughput pallet

$

30.68

$

30.71

$

31.51

(2.6

)%

(2.5

)%

(1) The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis are the effect of changes in foreign currency exchange rates relative to the comparable prior period.

(2) Total warehouse count of 229 includes 46 warehouses acquired through the Agro acquisition on December 30, 2020, eight warehouses acquired through the Hall's acquisition on November 2, 2020, three warehouses acquired through the Casper's and AM-C warehouse acquisitions on August 31, 2020, and five warehouses acquired through the Nova Cold and Newport acquisitions on January 2, 2020. The results of these acquisitions are reflected in the results above since date of ownership. The operational results from one day of ownership of the Agro warehouses is immaterial to the three months and year ended December 31, 2020.

(3) Non-same store warehouse count of 94 includes 46 warehouses acquired through the Agro acquisition on December 30, 2020, eight warehouses acquired through the Hall's acquisition on November 2, 2020, three warehouses acquired through the Casper's and AM-C warehouse acquisitions on August 31, 2020, and five warehouses acquired through the Nova Cold and Newport acquisitions on January 2, 2020. The results of these acquisitions are reflected in the results above since date of ownership. The operational results from one day of ownership of the Agro warehouses is immaterial to the three months and year ended December 31, 2020.

(n/a = not applicable)

Fixed Commitment Rent and Storage Revenue

As of December 31, 2020, $283.6 million of the Company's annualized rent and storage revenue were derived from customers with fixed commitment storage contracts. This compares to $279.7 million at the end of the third quarter of 2020 and $251.1 million at the end of the fourth quarter of 2019. The Company's recent acquisitions had a lower percentage of fixed committed contracts as a percentage of rent and storage revenue. On a combined pro forma basis, assuming a full twelve months of acquisitions revenue, 40.7% of rent and storage revenue were generated from fixed commitment storage contracts, which is a 140 basis point decrease over the third quarter of 2020. The Agro acquisition is excluded from the fixed commitment rent and storage revenue metrics.

Economic and Physical Occupancy

Contracts that contain fixed commitments are designed to ensure the Company's customers have space available when needed. For the fourth quarter of 2020, economic occupancy for the total warehouse segment was 79.2% and warehouse segment same store pool was 82.7%, representing a 688 basis point and 874 basis point increase above physical occupancy, respectively. For the fourth quarter of 2020, physical occupancy for the total warehouse segment was 72.3% and warehouse segment same store pool was 73.9%.

Real Estate Portfolio

As of December 31, 2020, the Company's portfolio consists of 238 facilities. The Company ended the fourth quarter of 2020 with 229 facilities in its Global Warehouse segment portfolio and nine facilities in its Third-party managed segment. During the fourth quarter of 2020, the Company added eight facilities through the acquisition of Hall's and 46 facilities in connection with the Agro acquisition. Additionally, the Company exited the operations of one Third-party managed facility in Canada. The same store population consists of 135 facilities for the quarter ended December 31, 2020. The remaining 94 non-same store population includes the 88 facilities that were acquired since the beginning of 2019 and six legacy facilities.

Balance Sheet Activity and Liquidity

As of December 31, 2020, the Company had total liquidity of approximately $1.7 billion, including cash and capacity on its revolving credit facility and $392 million of net proceeds available from equity forward contracts. Total debt outstanding was $3.0 billion (inclusive of $311.0 million of financing leases/sale lease-backs and exclusive of unamortized deferred financing fees), of which 80% was in an unsecured structure. The Company has no material debt maturities until 2023. At quarter end, its net debt to pro forma Core EBITDA was approximately 4.4x. Of the Company's total debt outstanding, $2.7 billion relates to real estate debt, which excludes sale-leaseback and capitalized lease obligations. The Company's real estate debt has a remaining weighted average term of 7.6 years and carries a weighted average contractual interest rate of 3.00%. As of December 31, 2020, 82% of the Company's total debt outstanding was at a fixed rate.

The Company's equity forwards, the respective contractual latest settlement dates, and net proceeds are detailed in the table below:

Year Ended December 31, Change

2020Dollars in constant Constantthousands 2020 actual 2019 actual Actual currency currency^ (1)



NON-SAME STORE WAREHOUSE

Number of non-samestore warehouses^ 94 32 n/a n/a (3)

Global Warehousenon-same store revenue:

Rent and storage $ 158,302 $ 158,540 $ 88,236 79.4 % 79.7 %

Warehouse services 214,447 214,649 133,865 60.2 % 60.3 %

Total non-same $ 372,749 $ 373,189 $ 222,101 67.8 % 68.0 %store revenue

Global Warehousenon-same store $ 119,046 $ 119,240 $ 66,382 79.3 % 79.6 %contribution (NOI)

Global Warehouse 205non-same store 31.9 % 32.0 % 29.9 % bps 206 bpsmargin

Units in thousandsexcept per pallet data

Global Warehouse non-same store rent and storage metrics:

Average economic 793 n/a 460 72.2 % n/a occupied pallets

Average physical 762 n/a 446 70.8 % n/a occupied pallets

Average physical 1,065 n/a 576 84.8 % n/a pallet positions

Economic occupancy 74.5 % n/a 79.9 % -542 n/a percentage bps

Physical occupancy 71.6 % n/a 77.5 % -586 n/a percentage bps

Non-same store rentand storage revenue $ 199.67 $ 199.97 $ 191.67 4.2 % 4.3 %per economicoccupied pallet

Non-same store rentand storage revenue $ 207.69 $ 208.00 $ 197.71 5.0 % 5.2 %per physicaloccupied pallet

Global Warehousenon-same store services metrics:

Throughput pallets 6,990 n/a 4,249 64.5 % n/a

Non-same storewarehouse services $ 30.68 $ 30.71 $ 31.51 (2.6 ) (2.5 )%revenue per %throughput pallet

(1) The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis are the effect of changes in foreign currency exchange rates relative to the comparable prior period.

(2) Total warehouse count of 229 includes 46 warehouses acquired through the Agro acquisition on December 30, 2020, eight warehouses acquired through the Hall's acquisition on November 2, 2020, three warehouses acquired through the Casper's and AM-C warehouse acquisitions on August 31, 2020, and five warehouses acquired through the Nova Cold and Newport acquisitions on January 2, 2020. The results of these acquisitions are reflected in the results above since date of ownership. The operational results from one day of ownership of the Agro warehouses is immaterial to the three months and year ended December 31, 2020.

(3) Non-same store warehouse count of 94 includes 46 warehouses acquired through the Agro acquisition on December 30, 2020, eight warehouses acquired through the Hall's acquisition on November 2, 2020, three warehouses acquired through the Casper's and AM-C warehouse acquisitions on August 31, 2020, and five warehouses acquired through the Nova Cold and Newport acquisitions on January 2, 2020. The results of these acquisitions are reflected in the results above since date of ownership. The operational results from one day of ownership of the Agro warehouses is immaterial to the three months and year ended December 31, 2020.

(n/a = not applicable)

Fixed Commitment Rent and Storage Revenue

As of December 31, 2020, $283.6 million of the Company's annualized rent and storage revenue were derived from customers with fixed commitment storage contracts. This compares to $279.7 million at the end of the third quarter of 2020 and $251.1 million at the end of the fourth quarter of 2019. The Company's recent acquisitions had a lower percentage of fixed committed contracts as a percentage of rent and storage revenue. On a combined pro forma basis, assuming a full twelve months of acquisitions revenue, 40.7% of rent and storage revenue were generated from fixed commitment storage contracts, which is a 140 basis point decrease over the third quarter of 2020. The Agro acquisition is excluded from the fixed commitment rent and storage revenue metrics.

Economic and Physical Occupancy

Contracts that contain fixed commitments are designed to ensure the Company's customers have space available when needed. For the fourth quarter of 2020, economic occupancy for the total warehouse segment was 79.2% and warehouse segment same store pool was 82.7%, representing a 688 basis point and 874 basis point increase above physical occupancy, respectively. For the fourth quarter of 2020, physical occupancy for the total warehouse segment was 72.3% and warehouse segment same store pool was 73.9%.

Real Estate Portfolio

As of December 31, 2020, the Company's portfolio consists of 238 facilities. The Company ended the fourth quarter of 2020 with 229 facilities in its Global Warehouse segment portfolio and nine facilities in its Third-party managed segment. During the fourth quarter of 2020, the Company added eight facilities through the acquisition of Hall's and 46 facilities in connection with the Agro acquisition. Additionally, the Company exited the operations of one Third-party managed facility in Canada. The same store population consists of 135 facilities for the quarter ended December 31, 2020. The remaining 94 non-same store population includes the 88 facilities that were acquired since the beginning of 2019 and six legacy facilities.

Balance Sheet Activity and Liquidity

As of December 31, 2020, the Company had total liquidity of approximately $1.7 billion, including cash and capacity on its revolving credit facility and $392 million of net proceeds available from equity forward contracts. Total debt outstanding was $3.0 billion (inclusive of $311.0 million of financing leases/sale lease-backs and exclusive of unamortized deferred financing fees), of which 80% was in an unsecured structure. The Company has no material debt maturities until 2023. At quarter end, its net debt to pro forma Core EBITDA was approximately 4.4x. Of the Company's total debt outstanding, $2.7 billion relates to real estate debt, which excludes sale-leaseback and capitalized lease obligations. The Company's real estate debt has a remaining weighted average term of 7.6 years and carries a weighted average contractual interest rate of 3.00%. As of December 31, 2020, 82% of the Company's total debt outstanding was at a fixed rate.

The Company's equity forwards, the respective contractual latest settlement dates, and net proceeds are detailed in the table below:

Outstanding Equity Forward Data

in millions, except share price amounts

ContractualQuarter Forward Net Share Net Outside Target Use of NetRaised Shares Price^1 Proceeds Proceeds Settlement Date

3Q 2018 6.000 $21.73 $130.4 3/18/2022 Fund the Ahold Development

2Q 2020 - 2.429 $35.97 $87.4 7/1/2021 Fund the Calgary and3Q 2020 Arkansas expansions

4Q 2020 4.785 $36.43 $174.3 10/13/2021 Fund future growth initiatives

13.214 $29.67 $392.1



^(1) Net of underwriter fee, forward costs and dividends paid.

Dividend

On December 8, 2020, the Company's Board of Trustees declared a dividend of $0.21 per share for the fourth quarter of 2020, which was paid on January 15, 2021 to common shareholders of record as of December 31, 2020.

2021 Outlook

The Company announced guidance as follows:

* Global warehouse segment same store revenue growth to range between 2% and 4% on a constant currency basis and same store NOI growth to be 100 to 200 basis points higher than the associated revenue growth on a constant currency basis. * Managed and Transportation NOI is expected in the range of $46-$54 million. * Selling, general and administrative expense is expected in the range of $190-$196 million, inclusive of non-cash share-based compensation expense of $21-$23 million. * Current income tax expense of $9-$13 million. * Deferred income tax benefit from a range of $1-$2 million. * Non-real estate depreciation and amortization of $85-$92 million. * Total maintenance capital expenditures is expected in the range of $90-$100 million. * Development starts of $175-$300 million. * Anticipated AFFO per share of $1.36 to $1.46. * Please refer to our supplemental for currency translation rates embedded in this guidance.

The Company's guidance is provided for informational purposes based on current plans and assumptions and is subject to change. The ranges for these metrics do not include the impact of acquisitions, dispositions, or capital markets activity beyond that which has been previously announced.

Investor Webcast and Conference Call

The Company will hold a webcast and conference call on Thursday, February 18, 2021 at 5:00 p.m. Eastern Time to discuss fourth quarter 2020 results. A live webcast of the call will be available via the Investors section of Americold Realty Trust's website at www.americold.com. To listen to the live webcast, please go to the site at least five minutes prior to the scheduled start time in order to register, download and install any necessary audio software. Shortly after the call, a replay of the webcast will be available for 90 days on the Company's website.

The conference call can also be accessed by dialing 1-877-407-3982 or 1-201-493-6780. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID# 13714728. The telephone replay will be available starting shortly after the call until March 4, 2021.

The Company's supplemental package will be available prior to the conference call in the Investors section of the Company's website at http://ir.americold.com.

About the Company

Americold is the world's largest publicly traded REIT focused on the ownership, operation, acquisition and development of temperature-controlled warehouses. Based in Atlanta, Georgia, Americold owns and operates 238 temperature-controlled warehouses, with over 1.4 billion refrigerated cubic feet of storage, in North America, Europe, Asia-Pacific, and South America. Americold's facilities are an integral component of the supply chain connecting food producers, processors, distributors and retailers to consumers.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures, including FFO, core FFO, AFFO, EBITDAre, Core EBITDA and same store segment revenue and contribution. A reconciliation from U.S. GAAP net (loss) income available to common shareholders to FFO, a reconciliation from FFO to core FFO and AFFO, and definitions of FFO, and core FFO are included within the supplemental. A reconciliation from U.S. GAAP net (loss) income available to common shareholders to EBITDAre and Core EBITDA, a definition of Core EBITDA and definitions of net debt to Core EBITDA are included within the supplemental.

Forward-Looking Statements

This document contains statements about future events and expectations that constitute forward-looking statements. Forward-looking statements are based on our beliefs, assumptions and expectations of our future financial and operating performance and growth plans, taking into account the information currently available to us. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause our actual results to differ materially from the expectations of future results we express or imply in any forward-looking statements, and you should not place undue reliance on such statements. Factors that could contribute to these differences include the following: uncertainties and risks related to public health crises, including the ongoing COVID-19 pandemic; adverse economic or real estate developments in our geographic markets or the temperature-controlled warehouse industry; general economic conditions; risks associated with the ownership of real estate and temperature-controlled warehouses in particular; acquisition risks, including the failure to identify or complete attractive acquisitions or the failure of acquisitions to perform in accordance with projections and to realize anticipated cost savings and revenue improvements; our failure to realize the intended benefits from our recent acquisitions, including the Agro acquisition, and including synergies, or disruptions to our plans and operations or unknown or contingent liabilities related to our recent acquisitions; risks related to expansions of existing properties and developments of new properties, including failure to meet budgeted or stabilized returns within expected time frames, or at all, in respect thereof; a failure of our information technology systems, cybersecurity attacks or a breach of our information security systems, networks or processes could cause business disruptions or loss of confidential information; risks related to privacy and data security concerns, and data collection and transfer restrictions and related foreign regulations; defaults or non-renewals of significant customer contracts, including as a result of the ongoing COVID-19 pandemic; uncertainty of revenues, given the nature of our customer contracts; increased interest rates and operating costs, including as a result of the ongoing COVID-19 pandemic; our failure to obtain necessary outside financing; risks related to, or restrictions contained in, our debt financings; decreased storage rates or increased vacancy rates; risks related to current and potential international operations and properties; difficulties in expanding our operations into new markets, including international markets; risks related to the partial ownership of properties, including as a result of our lack of control over such investments and the failure of such entities to perform in accordance with projections; our failure to maintain our status as a REIT; possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently or previously owned by us; financial market fluctuations; actions by our competitors and their increasing ability to compete with us; labor and power costs; changes in applicable governmental regulations and tax legislation, including in the international markets; additional risks with respect to the addition of European operations and properties; changes in real estate and zoning laws and increases in real property tax rates; the competitive environment in which we operate; our relationship with our employees, including the occurrence of any work stoppages or any disputes under our collective bargaining agreements and employment related litigation; liabilities as a result of our participation in multi-employer pension plans; losses in excess of our insurance coverage; the potential liabilities, costs and regulatory impacts associated with our in-house trucking services and the potential disruptions associated with the use of third-party trucking service providers to provide transportation services to our customers; the cost and time requirements as a result of our operation as a publicly traded REIT; changes in foreign currency exchange rates; the impact of anti-takeover provisions in our constituent documents and under Maryland law, which could make an acquisition of us more difficult, limit attempts by our shareholders to replace our trustees and affect the price of our common shares of beneficial interest, $0.01 par value per share, of our common shares; the potential dilutive effect of our common share offerings; and risks related to any forward sale agreement, including the 2018 forward sale agreement, the 2020 ATM forward sale agreements and the 2020 forward sale agreements, or collectively, our forward sale agreements, including substantial dilution to our earnings per share or substantial cash payment obligations.

Words such as "anticipates," "believes," "continues," "estimates," "expects," "goal," "objectives," "intends," "may," "opportunity," "plans," "potential," "near-term," "long-term," "projections," "assumptions," "projects," "guidance," "forecasts," "outlook," "target," "trends," "should," "could," "would," "will" and similar expressions are intended to identify such forward-looking statements. Examples of forward-looking statements included in this document include, among others, statements about our expected acquisition and expected expansion and development pipeline and our targeted return on invested capital on expansion and development opportunities. We qualify any forward-looking statements entirely by these cautionary factors. Other risks, uncertainties and factors, including those discussed under "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2019, in our Quarterly Report for the quarter ended March 31, 2020, in our Form 8-K filed April 16, 2020 and in our Form 8-K filed on October 13, 2020, could cause our actual results to differ materially from those projected in any forward-looking statements we make. We assume no obligation to update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Americold Realty Trust and Subsidiaries

Consolidated Balance Sheets

(In thousands, except shares and per share amounts)

December 31,

2020 2019

Assets

Property, buildings and equipment:

Land $ 662,885 $ 526,226

Buildings and improvements 4,004,824 2,696,732

Machinery and equipment 1,177,572 817,617

Assets under construction 303,531 108,639

6,148,812 4,149,214

Accumulated depreciation (1,382,298 ) (1,216,553 )

Property, buildings and equipment - net 4,766,514 2,932,661



Operating lease right-of-use assets 291,797 77,723

Accumulated depreciation - operating leases (24,483 ) (18,110 )

Operating leases - net 267,314 59,613



Financing leases:

Buildings and improvements 60,513 11,227

Machinery and equipment 109,416 76,811

169,929 88,038

Accumulated depreciation - financing leases (40,937 ) (29,697 )

Financing leases - net 128,992 58,341

Cash, cash equivalents and restricted cash 621,051 240,613

Accounts receivable - net of allowance of $12,286and $6,927 at December 31, 2020 and 2019, 324,221 214,842 respectively

Identifiable intangible assets - net 797,423 284,758

Goodwill 794,335 318,483

Investments in partially owned entities 44,907 -

Other assets 86,394 61,372

Total assets $ 7,831,151 $ 4,170,683

Liabilities and equity

Liabilities:

Borrowings under revolving line of credit $ - $ -

Accounts payable and accrued expenses 552,547 350,963

Mortgage notes, senior unsecured notes and termloan - net of deferred financing costs of $15,952 2,648,266 1,695,447 and $12,996 in the aggregate, at December 31,2020 and 2019, respectively

Sale-leaseback financing obligations 185,060 115,759

Financing lease obligations 125,926 58,170

Operating lease obligations 269,147 62,342

Unearned revenue 19,209 16,423

Pension and postretirement benefits 9,145 12,706

Deferred tax liability - net 220,502 17,119

Multiemployer pension plan withdrawal liability 8,528 8,736

Total liabilities 4,038,330 2,337,665

Equity

Shareholders' equity:

Common shares of beneficial interest, $0.01 parvalue - 325,000,000 and 250,000,000 authorizedshares; 251,702,603 and 191,799,909 issued and 2,517 1,918 outstanding at December 31, 2020 and 2019,respectively

Paid-in capital 4,687,823 2,582,087

Accumulated deficit and distributions in excess (895,521 ) (736,861 )of net earnings

Accumulated other comprehensive loss (4,379 ) (14,126 )

Total shareholders' equity 3,790,440 1,833,018

Noncontrolling interests:

Noncontrolling interests in operating partnership 2,381 -

Total equity 3,792,821 1,833,018



Total liabilities and equity $ 7,831,151 $ 4,170,683

Americold Realty Trust and Subsidiaries

Condensed Consolidated Statements of Operations (Unaudited)

(In thousands, except per share amounts)

Three Months Ended December 31,

Year Ended December 31,

2020

2019

2020

2019

Revenues:

Rent, storage and warehouse services

$

407,811

$

383,778

$

1,549,314

$

1,377,217

Third-party managed services

78,538

64,442

291,751

252,939

Transportation services

37,329

35,571

142,203

144,844

Other

-

2,193

4,459

8,705

Total revenues

523,678

485,984

1,987,727

1,783,705

Operating expenses:

Rent, storage and warehouse services cost of operations

262,139

254,231

1,028,981

929,626

Third-party managed services cost of operations

76,771

61,327

279,523

241,178

Transportation services cost of operations

32,286

30,706

123,396

126,777

Cost of operations related to other revenues

43

1,966

4,329

7,867

Depreciation and amortization

58,319

47,750

215,891

163,348

Selling, general and administrative

39,536

33,048

144,738

129,310

Acquisition, litigation and other

26,535

10,377

36,306

40,614

Impairment of long-lived assets

1,954

-

8,236

13,485

(Gain) loss from sale of real estate

(676

)

-

(22,124

)

34

Total operating expenses

496,907

439,405

1,819,276

1,652,239

Operating income

26,771

46,579

168,451

131,466

Other (expense) income:

Interest expense

(21,367

)

(23,827

)

(91,481

)

(94,408

)

Interest income

135

1,080

1,162

6,286

Bridge loan commitment fees

(2,438

)

-

(2,438

)

(2,665

)

Loss on debt extinguishment, modifications and termination of derivative instruments

(9,194

)

-

(9,975

)

-

Foreign currency exchange (loss) gain, net

(44,905

)

76

(45,278

)

10

Other expense, net

(2,395

)

(863

)

(2,563

)

(1,870

)

Gain from sale of partially owned entities

-

-

-

4,297

Gain (loss) from investments in partially owned entities

4

-

(250

)

(111

)

(Loss) income before income tax benefit (expense)

(53,389

)

23,045

17,628

43,005

Income tax benefit (expense)

Current

18

(716

)

(6,805

)

(5,544

)

Deferred

9,379

(1,520

)

13,732

10,701

Total income tax benefit (expense)

9,397

(2,236

)

6,927

5,157

Net (loss) income

$

(43,992

)

$

20,809

$

24,555

$

48,162

Weighted average common shares outstanding - basic

205,984

192,393

203,255

179,598

Weighted average common shares outstanding - diluted

209,928

197,922

206,940

183,950

Net (loss) income per common share of beneficial interest - basic

$

(0.21

)

$

0.11

$

0.11

$

0.26

Net (loss) income per common share of beneficial interest - diluted

$

(0.21

)

$

0.10

$

0.11

$

0.26

Americold Realty Trust and Subsidiaries

Condensed Consolidated Statements of Operations (Unaudited)

(In thousands, except per share amounts)

Three Months Ended December Year Ended December 31, 31,

2020 2019 2020 2019

Revenues:

Rent, storageand warehouse $ 407,811 $ 383,778 $ 1,549,314 $ 1,377,217 services

Third-partymanaged 78,538 64,442 291,751 252,939 services

Transportation 37,329 35,571 142,203 144,844 services

Other - 2,193 4,459 8,705

Total revenues 523,678 485,984 1,987,727 1,783,705

Operating expenses:

Rent, storageand warehouse 262,139 254,231 1,028,981 929,626 services costof operations

Third-partymanaged 76,771 61,327 279,523 241,178 services costof operations

Transportationservices cost 32,286 30,706 123,396 126,777 of operations

Cost ofoperations 43 1,966 4,329 7,867 related toother revenues

Depreciationand 58,319 47,750 215,891 163,348 amortization

Selling,general and 39,536 33,048 144,738 129,310 administrative

Acquisition,litigation and 26,535 10,377 36,306 40,614 other

Impairment oflong-lived 1,954 - 8,236 13,485 assets

(Gain) lossfrom sale of (676 ) - (22,124 ) 34 real estate

Total operating 496,907 439,405 1,819,276 1,652,239 expenses



Operating 26,771 46,579 168,451 131,466 income



Other (expense) income:

Interest (21,367 ) (23,827 ) (91,481 ) (94,408 ) expense

Interest income 135 1,080 1,162 6,286

Bridge loan (2,438 ) - (2,438 ) (2,665 ) commitment fees

Loss on debtextinguishment,modifications (9,194 ) - (9,975 ) - and terminationof derivativeinstruments

Foreigncurrency (44,905 ) 76 (45,278 ) 10 exchange (loss)gain, net

Other expense, (2,395 ) (863 ) (2,563 ) (1,870 ) net

Gain from saleof partially - - - 4,297 owned entities

Gain (loss)frominvestments in 4 - (250 ) (111 ) partially ownedentities

(Loss) incomebefore income (53,389 ) 23,045 17,628 43,005 tax benefit(expense)

Income taxbenefit (expense)

Current 18 (716 ) (6,805 ) (5,544 )

Deferred 9,379 (1,520 ) 13,732 10,701

Total incometax benefit 9,397 (2,236 ) 6,927 5,157 (expense)



Net (loss) $ (43,992 ) $ 20,809 $ 24,555 $ 48,162 income



Weightedaverage commonshares 205,984 192,393 203,255 179,598 outstanding -basic

Weightedaverage commonshares 209,928 197,922 206,940 183,950 outstanding -diluted



Net (loss)income percommon share of $ (0.21 ) $ 0.11 $ 0.11 $ 0.26 beneficialinterest -basic

Net (loss)income percommon share of $ (0.21 ) $ 0.10 $ 0.11 $ 0.26 beneficialinterest -diluted

Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and AFFO

(In thousands, except per share amounts - unaudited)

Three Months Ended

Year Ended

Q4 20

Q3 20

Q2 20

Q1 20

Q4 19

FY 2020

FY 2019

Net (loss) income

$

(43,992

)

$

12,374

$

32,662

$

23,511

$

20,809

$

24,555

$

48,162

Adjustments:

Real estate related depreciation

39,128

36,289

35,558

35,442

32,555

146,417

114,976

Net (gain) loss on sale of real estate, net of withholding taxes (b)

(676

)

427

(19,414

)

(2,096

)

-

(21,759

)

34

Net loss (gain) on asset disposals

888

1,160

(3

)

-

237

2,045

382

Impairment charges on real estate assets

2,449

-

3,181

-

-

5,630

12,555

Real estate depreciation on partially owned entities

-

-

(34

)

34

-

-

790

Our share of reconciling items related to partially owned entities

182

111

156

-

-

449

-

NAREIT Funds from operations

$

(2,021

)

$

50,361

$

52,106

$

56,891

$

53,601

$

157,337

$

176,899

Adjustments:

Net loss (gain) on sale of non-real estate assets

1,112

(100

)

(252

)

(165

)

227

595

488

Non-real estate impairment

(495

)

2,615

486

-

-

2,606

930

Acquisition, litigation and other

26,535

5,282

2,801

1,688

10,377

36,306

40,614

Share-based compensation expense, IPO grants

200

196

203

373

492

972

2,432

Bridge loan commitment fees

2,438

-

-

-

-

2,438

2,665

Loss on debt extinguishment, modifications and termination of derivative instruments

9,194

-

-

781

-

9,975

-

Foreign currency exchange loss (gain)

44,905

196

(315

)

492

(76

)

45,278

(10

)

Gain from sale of partially owned entities

-

-

-

-

-

-

(4,297

)

Our share of reconciling items related to partially owned entities

39

76

79

-

-

194

-

Core FFO applicable to common shareholders

$

81,907

$

58,626

$

55,108

$

60,060

$

64,621

$

255,701

$

219,721

Adjustments:

Amortization of deferred financing costs and pension withdrawal liability

1,202

1,203

1,196

1,546

1,524

5,147

6,028

Amortization of below/above market leases

37

39

-

76

37

152

151

Straight-line net rent

(324

)

(87

)

(108

)

(109

)

(83

)

(628

)

(521

)

Deferred income tax (benefit) expense

(9,379

)

(1,284

)

(967

)

(2,102

)

1,520

(13,732

)

(10,701

)

Share-based compensation expense, excluding IPO grants

4,371

4,373

4,261

3,934

3,210

16,939

10,463

Non-real estate depreciation and amortization

19,191

17,280

16,841

16,162

15,194

69,474

48,372

Non-real estate depreciation and amortization on partially owned entities

-

-

(22

)

22

-

-

317

Maintenance capital expenditures (a)

(20,291

)

(17,534

)

(15,284

)

(12,438

)

(26,307

)

(65,547

)

(59,300

)

Our share of reconciling items related to partially owned entities

168

125

78

-

-

371

-

Adjusted FFO applicable to common shareholders

$

76,882

$

62,741

$

61,103

$

67,151

$

59,716

$

267,877

$

214,530

Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and AFFO

(In thousands, except per share amounts - unaudited)

Three Months Ended Year Ended

Q4 20 Q3 20 Q2 20 Q1 20 Q4 19 FY 2020 FY 2019

Net (loss) $ (43,992 ) $ 12,374 $ 32,662 $ 23,511 $ 20,809 $ 24,555 $ 48,162 income

Adjustments:

Real estaterelated 39,128 36,289 35,558 35,442 32,555 146,417 114,976 depreciation

Net (gain) losson sale of realestate, net of (676 ) 427 (19,414 ) (2,096 ) - (21,759 ) 34 withholdingtaxes ^(b)

Net loss (gain)on asset 888 1,160 (3 ) - 237 2,045 382 disposals

Impairmentcharges on real 2,449 - 3,181 - - 5,630 12,555 estate assets

Real estatedepreciation on - - (34 ) 34 - - 790 partially ownedentities

Our share ofreconcilingitems related 182 111 156 - - 449 - to partiallyowned entities

NAREIT Funds $ (2,021 ) $ 50,361 $ 52,106 $ 56,891 $ 53,601 $ 157,337 $ 176,899 from operations

Adjustments:

Net loss (gain)on sale of 1,112 (100 ) (252 ) (165 ) 227 595 488 non-real estateassets

Non-real estate (495 ) 2,615 486 - - 2,606 930 impairment

Acquisition,litigation and 26,535 5,282 2,801 1,688 10,377 36,306 40,614 other

Share-basedcompensation 200 196 203 373 492 972 2,432 expense, IPOgrants

Bridge loan 2,438 - - - - 2,438 2,665 commitment fees

Loss on debtextinguishment,modifications 9,194 - - 781 - 9,975 - and terminationof derivativeinstruments

Foreigncurrency 44,905 196 (315 ) 492 (76 ) 45,278 (10 ) exchange loss(gain)

Gain from saleof partially - - - - - - (4,297 ) owned entities

Our share ofreconcilingitems related 39 76 79 - - 194 - to partiallyowned entities

Core FFOapplicable to $ 81,907 $ 58,626 $ 55,108 $ 60,060 $ 64,621 $ 255,701 $ 219,721 commonshareholders

Adjustments:

Amortization ofdeferredfinancing costs 1,202 1,203 1,196 1,546 1,524 5,147 6,028 and pensionwithdrawalliability

Amortization ofbelow/above 37 39 - 76 37 152 151 market leases

Straight-line (324 ) (87 ) (108 ) (109 ) (83 ) (628 ) (521 ) net rent

Deferred incometax (benefit) (9,379 ) (1,284 ) (967 ) (2,102 ) 1,520 (13,732 ) (10,701 ) expense

Share-basedcompensationexpense, 4,371 4,373 4,261 3,934 3,210 16,939 10,463 excluding IPOgrants

Non-real estatedepreciation 19,191 17,280 16,841 16,162 15,194 69,474 48,372 andamortization

Non-real estatedepreciationand - - (22 ) 22 - - 317 amortization onpartially ownedentities

Maintenancecapital (20,291 ) (17,534 ) (15,284 ) (12,438 ) (26,307 ) (65,547 ) (59,300 ) expenditures ^(a)

Our share ofreconcilingitems related 168 125 78 - - 371 - to partiallyowned entities

Adjusted FFOapplicable to $ 76,882 $ 62,741 $ 61,103 $ 67,151 $ 59,716 $ 267,877 $ 214,530 commonshareholders

Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and AFFO (continued)

(In thousands except per share amounts - unaudited)

Three Months Ended

Year Ended

Q4 20

Q3 20

Q2 20

Q1 20

Q4 19

FY 2020

FY 2019

NAREIT Funds from operations

$

(2,021

)

$

50,361

$

52,106

$

56,891

$

53,601

$

157,337

$

176,899

Core FFO applicable to common shareholders

$

81,907

$

58,626

$

55,108

$

60,060

$

64,621

$

255,701

$

219,721

Adjusted FFO applicable to common shareholders

$

76,882

$

62,741

$

61,103

$

67,151

$

59,716

$

267,877

$

214,530

Reconciliation of weighted average shares:

Weighted average basic shares for net income calculation

205,984

204,289

201,787

200,707

192,393

203,255

179,598

Dilutive stock options, unvested restricted stock units, equity forward contracts

3,944

4,211

3,511

3,076

5,529

3,685

4,352

Weighted average dilutive shares

209,928

208,500

205,298

203,783

197,922

206,940

183,950

NAREIT FFO - basic per share

$

(0.01

)

$

0.25

$

0.26

$

0.28

$

0.28

$

0.77

$

0.98

NAREIT FFO - diluted per share

$

(0.01

)

$

0.24

$

0.25

$

0.28

$

0.27

$

0.76

$

0.96

Core FFO - basic per share

$

0.40

$

0.29

$

0.27

$

0.30

$

0.34

$

1.26

$

1.22

Core FFO - diluted per share

$

0.39

$

0.28

$

0.27

$

0.29

$

0.33

$

1.24

$

1.19

Adjusted FFO - basic per share

$

0.37

$

0.31

$

0.30

$

0.33

$

0.31

$

1.32

$

1.19

Adjusted FFO - diluted per share

$

0.37

$

0.30

$

0.30

$

0.33

$

0.30

$

1.29

$

1.17

Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and AFFO(continued)

(In thousands except per share amounts - unaudited)

Three Months Ended Year Ended

Q4 20 Q3 20 Q2 20 Q1 20 Q4 19 FY 2020 FY 2019



NAREIT Fundsfrom $ (2,021 ) $ 50,361 $ 52,106 $ 56,891 $ 53,601 $ 157,337 $ 176,899 operations

Core FFOapplicable to $ 81,907 $ 58,626 $ 55,108 $ 60,060 $ 64,621 $ 255,701 $ 219,721 commonshareholders

Adjusted FFOapplicable to $ 76,882 $ 62,741 $ 61,103 $ 67,151 $ 59,716 $ 267,877 $ 214,530 commonshareholders



Reconciliationof weighted averageshares:

Weightedaverage basicshares for net 205,984 204,289 201,787 200,707 192,393 203,255 179,598 incomecalculation

Dilutive stockoptions,unvestedrestricted 3,944 4,211 3,511 3,076 5,529 3,685 4,352 stock units,equity forwardcontracts

Weightedaverage 209,928 208,500 205,298 203,783 197,922 206,940 183,950 dilutiveshares



NAREIT FFO -basic per $ (0.01 ) $ 0.25 $ 0.26 $ 0.28 $ 0.28 $ 0.77 $ 0.98 share

NAREIT FFO -diluted per $ (0.01 ) $ 0.24 $ 0.25 $ 0.28 $ 0.27 $ 0.76 $ 0.96 share



Core FFO -basic per $ 0.40 $ 0.29 $ 0.27 $ 0.30 $ 0.34 $ 1.26 $ 1.22 share

Core FFO -diluted per $ 0.39 $ 0.28 $ 0.27 $ 0.29 $ 0.33 $ 1.24 $ 1.19 share



Adjusted FFO -basic per $ 0.37 $ 0.31 $ 0.30 $ 0.33 $ 0.31 $ 1.32 $ 1.19 share

Adjusted FFO -diluted per $ 0.37 $ 0.30 $ 0.30 $ 0.33 $ 0.30 $ 1.29 $ 1.17 share

(a)

Maintenance capital expenditures include capital expenditures made to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology.

(b)

(Gain) loss on sale of real estate, net of withholding tax include withholding tax on the sale of Sydney land which is included in income tax expense on the Consolidated Statement of Operations.

Maintenance capital expenditures include capital expenditures made to(a) extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology.

(Gain) loss on sale of real estate, net of withholding tax include(b) withholding tax on the sale of Sydney land which is included in income tax expense on the Consolidated Statement of Operations.

Reconciliation of Net (Loss) Income to EBITDA, NAREIT EBITDAre, and Core EBITDA

(In thousands - unaudited)

Three Months Ended

Year Ended

Q4 20

Q3 20

Q2 20

Q1 20

Q4 19

FY 2020

FY 2019

Net (loss) income

$

(43,992

)

$

12,374

$

32,662

$

23,511

$

20,809

$

24,555

$

48,162

Adjustments:

Depreciation and amortization

58,319

53,569

52,399

51,604

47,750

215,891

163,348

Interest expense

21,367

23,066

23,178

23,870

23,827

91,481

94,408

Income tax (benefit) expense

(9,397

)

819

1,196

90

2,236

(7,292

)

(5,157

)

EBITDA

$

26,297

$

89,828

$

109,435

$

99,075

$

94,622

$

324,635

$

300,761

Adjustments:

Net (gain) loss on sale of real estate, net of withholding taxes

(676

)

427

(19,414

)

(2,096

)

-

(21,759

)

34

Adjustment to reflect share of EBITDAre of partially owned entities

432

293

237

60

-

1,022

1,726

NAREIT EBITDAre

$

26,053

$

90,548

$

90,258

$

97,039

$

94,622

$

303,898

$

302,521

Adjustments:

Acquisition, litigation and other

26,535

5,282

2,801

1,688

10,377

36,306

40,614

Bridge loan commitment fees

2,438

-

-

-

-

2,438

2,665

(Income) loss from investments in partially owned entities

(4

)

98

129

27

-

250

111

Gain from sale of partially owned entities

-

-

-

-

-

-

(4,297

)

Asset impairment

1,954

2,615

3,667

-

-

8,236

13,485

Foreign currency exchange loss (gain)

44,905

196

(315

)

492

(76

)

45,278

(10

)

Share-based compensation expense

4,571

4,569

4,464

4,307

3,699

17,911

12,895

Loss on debt extinguishment, modifications and termination of derivative instruments

9,194

-

-

781

-

9,975

-

Loss (gain) on real estate and other asset disposals

1,999

1,060

(255

)

(164

)

464

2,640

870

Reduction in EBITDAre from partially owned entities

(432

)

(293

)

(237

)

(60

)

-

(1,022

)

(1,726

)

Core EBITDA

$

117,213

$

104,075

$

100,512

$

104,110

$

109,086

$

425,910

$

367,128

Reconciliation of Net (Loss) Income to EBITDA, NAREIT EBITDAre, and Core EBITDA

(In thousands - unaudited)

Three Months Ended Year Ended

Q4 20 Q3 20 Q2 20 Q1 20 Q4 19 FY 2020 FY 2019

Net (loss) $ (43,992 ) $ 12,374 $ 32,662 $ 23,511 $ 20,809 $ 24,555 $ 48,162 income

Adjustments:

Depreciationand 58,319 53,569 52,399 51,604 47,750 215,891 163,348 amortization

Interest 21,367 23,066 23,178 23,870 23,827 91,481 94,408 expense

Income tax(benefit) (9,397 ) 819 1,196 90 2,236 (7,292 ) (5,157 ) expense

EBITDA $ 26,297 $ 89,828 $ 109,435 $ 99,075 $ 94,622 $ 324,635 $ 300,761

Adjustments:

Net (gain) losson sale of realestate, net of (676 ) 427 (19,414 ) (2,096 ) - (21,759 ) 34 withholdingtaxes

Adjustment toreflect shareof EBITDAre of 432 293 237 60 - 1,022 1,726 partially ownedentities

NAREIT EBITDAre $ 26,053 $ 90,548 $ 90,258 $ 97,039 $ 94,622 $ 303,898 $ 302,521

Adjustments:

Acquisition,litigation and 26,535 5,282 2,801 1,688 10,377 36,306 40,614 other

Bridge loan 2,438 - - - - 2,438 2,665 commitment fees

(Income) lossfrominvestments in (4 ) 98 129 27 - 250 111 partially ownedentities

Gain from saleof partially - - - - - - (4,297 ) owned entities

Asset 1,954 2,615 3,667 - - 8,236 13,485 impairment

Foreigncurrency 44,905 196 (315 ) 492 (76 ) 45,278 (10 ) exchange loss(gain)

Share-basedcompensation 4,571 4,569 4,464 4,307 3,699 17,911 12,895 expense

Loss on debtextinguishment,modifications 9,194 - - 781 - 9,975 - and terminationof derivativeinstruments

Loss (gain) onreal estate and 1,999 1,060 (255 ) (164 ) 464 2,640 870 other assetdisposals

Reduction inEBITDAre from (432 ) (293 ) (237 ) (60 ) - (1,022 ) (1,726 ) partially ownedentities

Core EBITDA $ 117,213 $ 104,075 $ 100,512 $ 104,110 $ 109,086 $ 425,910 $ 367,128

Revenue and Contribution by Segment

(in thousands - unaudited)

Three Months Ended December 31,

Year Ended December 31,

2020

2019

2020

2019

Segment revenues:

Warehouse

$

407,811

$

383,778

$

1,549,314

$

1,377,217

Third-party managed

78,538

64,442

291,751

252,939

Transportation

37,329

35,571

142,203

144,844

Other

-

2,193

4,459

8,705

Total revenues

523,678

485,984

1,987,727

1,783,705

Segment contribution:

Warehouse

145,672

129,547

520,333

447,591

Third-party managed

1,767

3,115

12,228

11,761

Transportation

5,043

4,865

18,807

18,067

Other

(43

)

227

130

838

Total segment contribution

152,439

137,754

551,498

478,257

Reconciling items:

Depreciation and amortization

(58,319

)

(47,750

)

(215,891

)

(163,348

)

Selling, general and administrative

(39,536

)

(33,048

)

(144,738

)

(129,310

)

Acquisition, litigation and other

(26,535

)

(10,377

)

(36,306

)

(40,614

)

Impairment of long-lived assets

(1,954

)

-

(8,236

)

(13,485

)

Gain (loss) from sale of real estate, net

676

-

22,124

(34

)

Interest expense

(21,367

)

(23,827

)

(91,481

)

(94,408

)

Interest income

135

1,080

1,162

6,286

Bridge loan commitment fees

(2,438

)

-

(2,438

)

(2,665

)

Loss on debt extinguishment, modifications and termination of derivative instruments

(9,194

)

-

(9,975

)

-

Foreign currency exchange (loss) gain, net

(44,905

)

76

(45,278

)

10

Other expense, net

(2,395

)

(863

)

(2,563

)

(1,870

)

Gain (loss) from investments in partially owned entities

4

-

(250

)

(111

)

Gain from sale of partially owned entities

-

-

-

4,297

(Loss) income before income tax benefit (expense)

$

(53,389

)

$

23,045

$

17,628

$

43,005

We view and manage our business through three primary business segments-warehouse, third-party managed and transportation. Our core business is our warehouse segment, where we provide temperature-controlled warehouse storage and related handling and other warehouse services. In our warehouse segment, we collect rent and storage fees from customers to store their frozen and perishable food and other products within our real estate portfolio. We also provide our customers with handling and other warehouse services related to the products stored in our buildings that are designed to optimize their movement through the cold chain, such as the placement of food products for storage and preservation, the retrieval of products from storage upon customer request, blast freezing, case-picking, kitting and repackaging and other recurring handling services.

Under our third-party managed segment, we manage warehouses on behalf of third parties and provide warehouse management services to several leading food retailers and manufacturers in customer-owned facilities, including some of our largest and longest-standing customers. We believe using our third-party management services allows our customers to increase efficiency, reduce costs, reduce supply-chain risks and focus on their core businesses. We also believe that providing third-party management services to many of our key customers underscores our ability to offer a complete and integrated suite of services across the cold chain.

In our transportation segment, we broker and manage transportation of frozen and perishable food and other products for our customers. Our transportation services include consolidation services (i.e., consolidating a customer's products with those of other customers for more efficient shipment), freight under management services (i.e., arranging for and overseeing transportation of customer inventory) and dedicated transportation services, each designed to improve efficiency and reduce transportation and logistics costs to our customers. We provide these transportation services at cost plus a service fee or, in the case of our consolidation services, we charge a fixed fee.

In addition to our primary business segments, we owned a limestone quarry in Carthage, Missouri. We do not view the operation of the quarry as an integral part of our business, and as a result this business segment was subsequently sold on July 1, 2020.

Revenue and Contribution by Segment

(in thousands - unaudited)

Three Months Ended December Year Ended December 31, 31,

2020 2019 2020 2019

Segment revenues:

Warehouse $ 407,811 $ 383,778 $ 1,549,314 $ 1,377,217

Third-party 78,538 64,442 291,751 252,939 managed

Transportation 37,329 35,571 142,203 144,844

Other - 2,193 4,459 8,705

Total revenues 523,678 485,984 1,987,727 1,783,705



Segment contribution:

Warehouse 145,672 129,547 520,333 447,591

Third-party 1,767 3,115 12,228 11,761 managed

Transportation 5,043 4,865 18,807 18,067

Other (43 ) 227 130 838

Total segment 152,439 137,754 551,498 478,257 contribution



Reconciling items:

Depreciationand (58,319 ) (47,750 ) (215,891 ) (163,348 ) amortization

Selling,general and (39,536 ) (33,048 ) (144,738 ) (129,310 ) administrative

Acquisition,litigation and (26,535 ) (10,377 ) (36,306 ) (40,614 ) other

Impairment oflong-lived (1,954 ) - (8,236 ) (13,485 ) assets

Gain (loss)from sale of 676 - 22,124 (34 ) real estate,net

Interest (21,367 ) (23,827 ) (91,481 ) (94,408 ) expense

Interest income 135 1,080 1,162 6,286

Bridge loan (2,438 ) - (2,438 ) (2,665 ) commitment fees

Loss on debtextinguishment,modifications (9,194 ) - (9,975 ) - and terminationof derivativeinstruments

Foreigncurrency (44,905 ) 76 (45,278 ) 10 exchange (loss)gain, net

Other expense, (2,395 ) (863 ) (2,563 ) (1,870 ) net

Gain (loss)frominvestments in 4 - (250 ) (111 ) partially ownedentities

Gain from saleof partially - - - 4,297 owned entities

(Loss) incomebefore income $ (53,389 ) $ 23,045 $ 17,628 $ 43,005 tax benefit(expense)

We view and manage our business through three primary business segments-warehouse, third-party managed and transportation. Our core business is our warehouse segment, where we provide temperature-controlled warehouse storage and related handling and other warehouse services. In our warehouse segment, we collect rent and storage fees from customers to store their frozen and perishable food and other products within our real estate portfolio. We also provide our customers with handling and other warehouse services related to the products stored in our buildings that are designed to optimize their movement through the cold chain, such as the placement of food products for storage and preservation, the retrieval of products from storage upon customer request, blast freezing, case-picking, kitting and repackaging and other recurring handling services.

Under our third-party managed segment, we manage warehouses on behalf of third parties and provide warehouse management services to several leading food retailers and manufacturers in customer-owned facilities, including some of our largest and longest-standing customers. We believe using our third-party management services allows our customers to increase efficiency, reduce costs, reduce supply-chain risks and focus on their core businesses. We also believe that providing third-party management services to many of our key customers underscores our ability to offer a complete and integrated suite of services across the cold chain.

In our transportation segment, we broker and manage transportation of frozen and perishable food and other products for our customers. Our transportation services include consolidation services (i.e., consolidating a customer's products with those of other customers for more efficient shipment), freight under management services (i.e., arranging for and overseeing transportation of customer inventory) and dedicated transportation services, each designed to improve efficiency and reduce transportation and logistics costs to our customers. We provide these transportation services at cost plus a service fee or, in the case of our consolidation services, we charge a fixed fee.

In addition to our primary business segments, we owned a limestone quarry in Carthage, Missouri. We do not view the operation of the quarry as an integral part of our business, and as a result this business segment was subsequently sold on July 1, 2020.

Notes and Definitions

We calculate funds from operations, or FFO, in accordance with the standardsestablished by the Board of Governors of the National Association of RealEstate Investment Trusts, or NAREIT. NAREIT defines FFO as net income or lossdetermined in accordance with U.S. GAAP, excluding extraordinary items asdefined under U.S. GAAP and gains or losses from sales of previouslydepreciated operating real estate assets, plus specified non-cash items, suchas real estate asset depreciation and amortization, and our share ofreconciling items of partially owned entities. We believe that FFO is helpfulto investors as a supplemental performance measure because it excludes theeffect of depreciation, amortization and gains or losses from sales of realestate, all of which are based on historical costs, which implicitly assumesthat the value of real estate diminishes predictably over time. Since realestate values instead have historically risen or fallen with market conditions,FFO can facilitate comparisons of operating performance between periods andamong other equity REITs.

We calculate core funds from operations, or Core FFO, as FFO adjusted for theeffects of gain or loss on the sale of non-real estate assets, non-real estateasset impairment, acquisition, litigation and other expenses, share-basedcompensation expense for the IPO retention grants, bridge loan commitment fees,loss on debt extinguishment, modifications and termination of derivativeinstruments and foreign currency exchange gain or loss. We also adjust for theimpact of Core FFO attributable to partially owned entities. We have elected toreflect our share of Core FFO attributable to partially owned entities sincethe Brazil JV is a strategic partnership which we continue to activelyparticipate in on an ongoing basis. The previous joint venture, the China JV,was considered for disposition during the periods presented. We believe thatCore FFO is helpful to investors as a supplemental performance measure becauseit excludes the effects of certain items which can create significant earningsvolatility, but which do not directly relate to our core business operations.We believe Core FFO can facilitate comparisons of operating performance betweenperiods, while also providing a more meaningful predictor of future earningspotential.

However, because FFO and Core FFO add back real estate depreciation andamortization and do not capture the level of maintenance capital expendituresnecessary to maintain the operating performance of our properties, both ofwhich have material economic impacts on our results from operations, we believethe utility of FFO and Core FFO as a measure of our performance may be limited.

We calculate adjusted funds from operations, or Adjusted FFO, as Core FFOadjusted for the effects of amortization of deferred financing costs, pensionwithdrawal liability and above or below market leases, straight-line net rent,provision or benefit from deferred income taxes, stock-based compensationexpense from grants of stock options and restricted stock units under ourequity incentive plans, excluding IPO grants, non-real estate depreciation andamortization, and maintenance capital expenditures. We also adjust for AFFOattributable to our portion of reconciling items of partially owned entities.We believe that Adjusted FFO is helpful to investors as a meaningfulsupplemental comparative performance measure of our ability to make incrementalcapital investments in our business and to assess our ability to funddistribution requirements from our operating activities.

FFO, Core FFO and Adjusted FFO are used by management, investors and industryanalysts as supplemental measures of operating performance of equity REITs.FFO, Core FFO and Adjusted FFO should be evaluated along with U.S. GAAP netincome and net income per diluted share (the most directly comparable U.S. GAAPmeasures) in evaluating our operating performance. FFO, Core FFO and AdjustedFFO do not represent net income or cash flows from operating activities inaccordance with U.S. GAAP and are not indicative of our results of operationsor cash flows from operating activities as disclosed in our consolidatedstatements of operations included in our annual and quarterly reports. FFO,Core FFO and Adjusted FFO should be considered as supplements, but notalternatives, to our net income or cash flows from operating activities asindicators of our operating performance. Moreover, other REITs may notcalculate FFO in accordance with the NAREIT definition or may interpret theNAREIT definition differently than we do. Accordingly, our FFO may not becomparable to FFO as calculated by other REITs. In addition, there is noindustry definition of Core FFO or Adjusted FFO and, as a result, other REITsmay also calculate Core FFO or Adjusted FFO, or other similarly-captionedmetrics, in a manner different than we do. The table above reconciles FFO, CoreFFO and Adjusted FFO to net income, which is the most directly comparablefinancial measure calculated in accordance with U.S. GAAP.

We calculate EBITDA for Real Estate, or EBITDAre, in accordance with thestandards established by the Board of Governors of NAREIT, defined as, earningsbefore interest expense, taxes, depreciation and amortization, gains or losseson disposition of depreciated property, including gains or losses on change ofcontrol, impairment write-downs of depreciated property and of investments inunconsolidated affiliates caused by a decrease in value of depreciated propertyin the affiliate, and adjustment to reflect share of EBITDAre of unconsolidatedaffiliates. EBITDAre is a measure commonly used in our industry, and we presentEBITDAre to enhance investor understanding of our operating performance. Webelieve that EBITDAre provides investors and analysts with a measure ofoperating results unaffected by differences in capital structures, capitalinvestment cycles and useful life of related assets among otherwise comparablecompanies.

We also calculate our Core EBITDA as EBITDAre further adjusted for acquisition,litigation and other expenses, impairment of long-lived assets, loss or gain onother asset disposals, bridge loan commitment fees, loss on debt extinguishmentand modifications, share-based compensation expense, foreign currency exchangegain or loss, loss or income on partially owned entities and reduction inEBITDAre from partially owned entities. We believe that the presentation ofCore EBITDA provides a measurement of our operations that is meaningful toinvestors because it excludes the effects of certain items that are otherwiseincluded in EBITDA but which we do not believe are indicative of our corebusiness operations. EBITDA and Core EBITDA are not measurements of financialperformance under U.S. GAAP, and our EBITDA and Core EBITDA may not becomparable to similarly titled measures of other companies. You should notconsider our EBITDA and Core EBITDA as alternatives to net income or cash flowsfrom operating activities determined in accordance with U.S. GAAP. Ourcalculations of EBITDA and Core EBITDA have limitations as analytical tools,including:

* these measures do not reflect our historical or future cash requirements for maintenance capital expenditures or growth and expansion capital expenditures; * these measures do not reflect changes in, or cash requirements for, our working capital needs; * these measures do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our indebtedness; * these measures do not reflect our tax expense or the cash requirements to pay our taxes; and * although depreciation and amortization are non-cash charges, the assets being depreciated will often have to be replaced in the future and these measures do not reflect any cash requirements for such replacements.

We use Core EBITDA and EBITDAre as measures of our operating performance andnot as measures of liquidity. The table on page 23 of our financial supplementreconciles EBITDA, EBITDAre and Core EBITDA to net income, which is the mostdirectly comparable financial measure calculated in accordance with U.S. GAAP.

All quarterly amounts and non-GAAP disclosures within this filing shall bedeemed unaudited.

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CONTACT: Americold Realty Trust Investor Relations Telephone: 678-459-1959 Email: investor.relations@americold.com