Americold Realty (NYSE:COLD) Trust, a real estate investment trust (REIT) specializing in temperature-controlled warehouses, has entered into a significant financial agreement. On Thursday, the company, through its operating partnership, agreed to sell $500 million in aggregate principal amount of 5.409% notes due in 2034.
The transaction involves guarantees from Americold Realty Trust , a subsidiary, and several subsidiary guarantors. This deal was struck with a group of underwriters led by BofA Securities, Inc., Citigroup Global Markets Inc., and J.P. Morgan Securities LLC.
The notes offering, scheduled to close on September 12, 2024, is subject to customary closing conditions. The terms of the securities were detailed in the final prospectus supplement filed with the Securities and Exchange Commission (SEC) on the day of the announcement. The notes, along with the guarantees, were registered under an automatic shelf registration statement, which is part of the Securities Act of 1933.
Americold Realty Trust, headquartered in Atlanta, Georgia, operates as a major player in the logistics sector, providing essential infrastructure for food production, processing, and distribution. The issuance of these notes is a strategic step for Americold, as it seeks to manage its capital structure and fund its operations and potential expansions.
In other recent news, Americold Realty Trust has posted robust second-quarter financial results for 2024, with a notable 36% increase in Adjusted Funds From Operations (AFFO) reaching approximately $109 million or $0.38 per share. This performance was primarily driven by strong same-store warehouse services and effective pricing strategies. Amid these developments, Americold raised its full-year 2024 AFFO guidance to a range of $1.44 to $1.50 per share.
In recent analyst moves, Citi has increased Americold's price target to $30, citing improved margins. Similarly, Scotiabank has raised its price target for Americold to $31, primarily due to the company's improved AFFO guidance. Truist Securities and Baird also increased their price targets for Americold to $33 and $31 respectively, both highlighting the company's improved financial performance and operational efficiencies.
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