Maryland
|
001-34723
|
93-0295215
|
||||||
(State or other jurisdiction
of incorporation)
|
(Commission File Number)
|
(IRS Employer
Identification No.)
|
10 Glenlake Parkway, | South Tower, Suite 600 |
|
|||||||||
Atlanta, | Georgia | 30328 | |||||||||
(Address of principal executive offices)
|
(Zip Code)
|
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class
|
Trading
Symbol(s)
|
Name of each exchange
on which registered
|
||||||||||||
Common Shares of Beneficial Interest, $0.01 par value per share | COLD | New York Stock Exchange |
Exhibit No. | Description | |||||||
10.1#
|
Employment Agreement dated November 2, 2021 by and between AmeriCold Logistics, LLC and George F. Chappelle Jr. | |||||||
Form of Indemnification Agreement (incorporated by reference to Exhibit 10.18 to Americold Realty Trust’s Annual Report on Form 10-K for the year ended December 31, 2020 (File No. 001-34723)) | ||||||||
Press Release dated November 3, 2021 for the third quarter ended September 30, 2021.
|
||||||||
Supplemental Information Package for the third quarter ended September 30, 2021.
|
||||||||
Leadership Transition Press Release dated November 3, 2021. |
AMERICOLD REALTY TRUST | ||||||||
By: |
/s/ Marc J. Smernoff
|
|||||||
Name: Marc J. Smernoff
|
||||||||
Title: Chief Financial Officer and Executive Vice President
|
||||||||
Three Months Ended September 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||||
Dollars in thousands | 2021 actual |
2021 constant currency(1)
|
2020 actual | Actual | Constant currency | ||||||||||||||||||||||||||||||||||||||||||
TOTAL WAREHOUSE SEGMENT | |||||||||||||||||||||||||||||||||||||||||||||||
Number of total warehouses(2)
|
239 | 175 | n/a | n/a | |||||||||||||||||||||||||||||||||||||||||||
Global Warehouse revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Rent and storage | $ | 225,234 | $ | 224,210 | $ | 166,355 | 35.4 | % | 34.8 | % | |||||||||||||||||||||||||||||||||||||
Warehouse services | 316,813 | 315,105 | 221,669 | 42.9 | % | 42.2 | % | ||||||||||||||||||||||||||||||||||||||||
Total revenue | $ | 542,047 | $ | 539,315 | $ | 388,024 | 39.7 | % | 39.0 | % | |||||||||||||||||||||||||||||||||||||
Global Warehouse contribution (NOI) | $ | 144,992 | $ | 144,455 | $ | 127,756 | 13.5 | % | 13.1 | % | |||||||||||||||||||||||||||||||||||||
Global Warehouse margin | 26.7 | % | 26.8 | % | 32.9 | % | -618 bps | -614 bps | |||||||||||||||||||||||||||||||||||||||
Units in thousands except per pallet data | |||||||||||||||||||||||||||||||||||||||||||||||
Global Warehouse rent and storage metrics: | |||||||||||||||||||||||||||||||||||||||||||||||
Average economic occupied pallets | 4,061 | n/a | 3,144 | 29.2 | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Average physical occupied pallets | 3,709 | n/a | 2,849 | 30.2 | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Average physical pallet positions | 5,351 | n/a | 4,074 | 31.4 | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Economic occupancy percentage | 75.9 | % | n/a | 77.2 | % | -129 bps | n/a | ||||||||||||||||||||||||||||||||||||||||
Physical occupancy percentage | 69.3 | % | n/a | 69.9 | % | -61 bps | n/a | ||||||||||||||||||||||||||||||||||||||||
Total rent and storage revenue per economic occupied pallet | $ | 55.46 | $ | 55.21 | $ | 52.91 | 4.8 | % | 4.4 | % | |||||||||||||||||||||||||||||||||||||
Total rent and storage revenue per physical occupied pallet | $ | 60.73 | $ | 60.45 | $ | 58.40 | 4.0 | % | 3.5 | % | |||||||||||||||||||||||||||||||||||||
Global Warehouse services metrics: | |||||||||||||||||||||||||||||||||||||||||||||||
Throughput pallets | 10,142 | n/a | 7,918 | 28.1 | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Total warehouse services revenue per throughput pallet | $ | 31.24 | $ | 31.07 | $ | 27.99 | 11.6 | % | 11.0 | % | |||||||||||||||||||||||||||||||||||||
SAME STORE WAREHOUSE | |||||||||||||||||||||||||||||||||||||||||||||||
Number of same store warehouses | 162 | 162 | n/a | n/a | |||||||||||||||||||||||||||||||||||||||||||
Global Warehouse same store revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Rent and storage | $ | 157,233 | $ | 157,108 | $ | 154,926 | 1.5 | % | 1.4 | % | |||||||||||||||||||||||||||||||||||||
Warehouse services | 216,351 | 215,316 | 210,309 | 2.9 | % | 2.4 | % | ||||||||||||||||||||||||||||||||||||||||
Total same store revenue | $ | 373,584 | $ | 372,424 | $ | 365,235 | 2.3 | % | 2.0 | % | |||||||||||||||||||||||||||||||||||||
Global Warehouse same store contribution (NOI) | $ | 117,209 | $ | 116,799 | $ | 123,528 | (5.1) | % | (5.4) | % | |||||||||||||||||||||||||||||||||||||
Global Warehouse same store margin | 31.4 | % | 31.4 | % | 33.8 | % | -245 bps | -246 bps | |||||||||||||||||||||||||||||||||||||||
Units in thousands except per pallet data | |||||||||||||||||||||||||||||||||||||||||||||||
Global Warehouse same store rent and storage metrics: | |||||||||||||||||||||||||||||||||||||||||||||||
Average economic occupied pallets | 2,878 | n/a | 2,942 | (2.2) | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Average physical occupied pallets | 2,553 | n/a | 2,661 | (4.1) | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Average physical pallet positions | 3,760 | n/a | 3,756 | 0.1 | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Economic occupancy percentage | 76.5 | % | n/a | 78.3 | % | -179 bps | n/a | ||||||||||||||||||||||||||||||||||||||||
Physical occupancy percentage | 67.9 | % | n/a | 70.8 | % | -295 bps | n/a | ||||||||||||||||||||||||||||||||||||||||
Same store rent and storage revenue per economic occupied pallet | $ | 54.62 | $ | 54.58 | $ | 52.66 | 3.7 | % | 3.6 | % | |||||||||||||||||||||||||||||||||||||
Same store rent and storage revenue per physical occupied pallet | $ | 61.59 | $ | 61.54 | $ | 58.23 | 5.8 | % | 5.7 | % | |||||||||||||||||||||||||||||||||||||
Global Warehouse same store services metrics: | |||||||||||||||||||||||||||||||||||||||||||||||
Throughput pallets | 7,328 | n/a | 7,467 | (1.9) | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Same store warehouse services revenue per throughput pallet | $ | 29.52 | $ | 29.38 | $ | 28.16 | 4.8 | % | 4.3 | % |
Nine Months Ended September 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||||
Dollars in thousands | 2021 actual |
2021 constant currency(1)
|
2020 actual | Actual | Constant currency | ||||||||||||||||||||||||||||||||||||||||||
TOTAL WAREHOUSE SEGMENT | |||||||||||||||||||||||||||||||||||||||||||||||
Number of total warehouses(2)
|
239 | 175 | n/a | n/a | |||||||||||||||||||||||||||||||||||||||||||
Global Warehouse revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Rent and storage | $ | 642,787 | $ | 633,774 | $ | 492,328 | 30.6 | % | 28.7 | % | |||||||||||||||||||||||||||||||||||||
Warehouse services | 888,445 | 869,710 | 649,175 | 36.9 | % | 34.0 | % | ||||||||||||||||||||||||||||||||||||||||
Total revenue | $ | 1,531,232 | $ | 1,503,484 | $ | 1,141,503 | 34.1 | % | 31.7 | % | |||||||||||||||||||||||||||||||||||||
Global Warehouse contribution (NOI) | $ | 435,552 | $ | 427,988 | $ | 374,661 | 16.3 | % | 14.2 | % | |||||||||||||||||||||||||||||||||||||
Global Warehouse margin | 28.4 | % | 28.5 | % | 32.8 | % | -438 bps | -436 bps | |||||||||||||||||||||||||||||||||||||||
Units in thousands except per pallet data | |||||||||||||||||||||||||||||||||||||||||||||||
Global Warehouse rent and storage metrics: | |||||||||||||||||||||||||||||||||||||||||||||||
Average economic occupied pallets | 3,994 | n/a | 3,188 | 25.3 | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Average physical occupied pallets | 3,648 | n/a | 2,930 | 24.5 | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Average physical pallet positions | 5,250 | n/a | 4,043 | 29.9 | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Economic occupancy percentage | 76.1 | % | n/a | 78.9 | % | -279 bps | n/a | ||||||||||||||||||||||||||||||||||||||||
Physical occupancy percentage | 69.5 | % | n/a | 72.5 | % | -298 bps | n/a | ||||||||||||||||||||||||||||||||||||||||
Total rent and storage revenue per economic occupied pallet | $ | 160.93 | $ | 158.67 | $ | 154.41 | 4.2 | % | 2.8 | % | |||||||||||||||||||||||||||||||||||||
Total rent and storage revenue per physical occupied pallet | $ | 176.21 | $ | 173.74 | $ | 168.06 | 4.9 | % | 3.4 | % | |||||||||||||||||||||||||||||||||||||
Global Warehouse services metrics: | |||||||||||||||||||||||||||||||||||||||||||||||
Throughput pallets | 29,591 | n/a | 23,834 | 24.2 | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Total warehouse services revenue per throughput pallet | $ | 30.02 | $ | 29.39 | $ | 27.24 | 10.2 | % | 7.9 | % | |||||||||||||||||||||||||||||||||||||
SAME STORE WAREHOUSE | |||||||||||||||||||||||||||||||||||||||||||||||
Number of same store warehouses | 162 | 162 | n/a | n/a | |||||||||||||||||||||||||||||||||||||||||||
Global Warehouse same store revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Rent and storage | $ | 457,384 | $ | 453,945 | $ | 460,623 | (0.7) | % | (1.4) | % | |||||||||||||||||||||||||||||||||||||
Warehouse services | 631,694 | 619,336 | 619,002 | 2.1 | % | 0.1 | % | ||||||||||||||||||||||||||||||||||||||||
Total same store revenue | $ | 1,089,078 | $ | 1,073,281 | $ | 1,079,625 | 0.9 | % | (0.6) | % | |||||||||||||||||||||||||||||||||||||
Global Warehouse same store contribution (NOI) | $ | 351,927 | $ | 347,487 | $ | 365,675 | (3.8) | % | (5.0) | % | |||||||||||||||||||||||||||||||||||||
Global Warehouse same store margin | 32.3 | % | 32.4 | % | 33.9 | % | -156 bps | -149 bps | |||||||||||||||||||||||||||||||||||||||
Units in thousands except per pallet data | |||||||||||||||||||||||||||||||||||||||||||||||
Global Warehouse same store rent and storage metrics: | |||||||||||||||||||||||||||||||||||||||||||||||
Average economic occupied pallets | 2,865 | n/a | 3,003 | (4.6) | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Average physical occupied pallets | 2,543 | n/a | 2,753 | (7.6) | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Average physical pallet positions | 3,762 | n/a | 3,750 | 0.3 | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Economic occupancy percentage | 76.2 | % | n/a | 80.1 | % | -393 bps | n/a | ||||||||||||||||||||||||||||||||||||||||
Physical occupancy percentage | 67.6 | % | n/a | 73.4 | % | -582 bps | n/a | ||||||||||||||||||||||||||||||||||||||||
Same store rent and storage revenue per economic occupied pallet | $ | 159.64 | $ | 158.44 | $ | 153.38 | 4.1 | % | 3.3 | % | |||||||||||||||||||||||||||||||||||||
Same store rent and storage revenue per physical occupied pallet | $ | 179.85 | $ | 178.50 | $ | 167.31 | 7.5 | % | 6.7 | % | |||||||||||||||||||||||||||||||||||||
Global Warehouse same store services metrics: | |||||||||||||||||||||||||||||||||||||||||||||||
Throughput pallets | 21,805 | n/a | 22,547 | (3.3) | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Same store warehouse services revenue per throughput pallet | $ | 28.97 | $ | 28.40 | $ | 27.45 | 5.5 | % | 3.5 | % |
Outstanding Equity Forward Data | |||||||||||||||||
in millions, except share price amounts | |||||||||||||||||
Quarter Raised | Forward Shares |
Net Share Price1
|
Net Proceeds | Contractual Outside Settlement Date | Target Use of Net Proceeds | ||||||||||||
2Q/3Q 2021 | 1.436 | $38.96 | $55.0 | 7/1/2022 | Fund future growth initiatives | ||||||||||||
(1) Net of underwriter fee, forward costs and dividends paid.
|
Americold Realty Trust and Subsidiaries | |||||||||||
Condensed Consolidated Balance Sheets (Unaudited) | |||||||||||
(In thousands, except shares and per share amounts) | |||||||||||
September 30, | December 31, | ||||||||||
2021 | 2020 | ||||||||||
Assets | |||||||||||
Property, buildings and equipment: | |||||||||||
Land | $ | 769,720 | $ | 662,885 | |||||||
Buildings and improvements | 4,057,597 | 4,004,824 | |||||||||
Machinery and equipment | 1,297,087 | 1,177,572 | |||||||||
Assets under construction | 402,576 | 303,531 | |||||||||
6,526,980 | 6,148,812 | ||||||||||
Accumulated depreciation | (1,563,868) | (1,382,298) | |||||||||
Property, buildings and equipment – net | 4,963,112 | 4,766,514 | |||||||||
Operating lease right-of-use assets | 385,341 | 291,797 | |||||||||
Accumulated depreciation – operating leases | (48,978) | (24,483) | |||||||||
Operating leases – net | 336,363 | 267,314 | |||||||||
Financing leases: | |||||||||||
Buildings and improvements | 13,550 | 60,513 | |||||||||
Machinery and equipment | 148,724 | 109,416 | |||||||||
162,274 | 169,929 | ||||||||||
Accumulated depreciation – financing leases | (56,686) | (40,937) | |||||||||
Financing leases – net | 105,588 | 128,992 | |||||||||
Cash, cash equivalents and restricted cash | 152,770 | 621,051 | |||||||||
Accounts receivable – net of allowance of $17,017 and $12,286 at September 30, 2021 and December 31, 2020, respectively
|
368,179 | 324,221 | |||||||||
Identifiable intangible assets – net | 1,011,102 | 797,423 | |||||||||
Goodwill | 1,039,850 | 794,335 | |||||||||
Investments in partially owned entities | 38,571 | 44,907 | |||||||||
Other assets | 112,019 | 86,394 | |||||||||
Total assets | $ | 8,127,554 | $ | 7,831,151 | |||||||
Liabilities and equity | |||||||||||
Liabilities: | |||||||||||
Borrowings under revolving line of credit | $ | 305,664 | $ | — | |||||||
Accounts payable and accrued expenses | 577,721 | 552,547 | |||||||||
Mortgage notes, senior unsecured notes and term loans – net of deferred financing costs of $11,446 and $15,952 in the aggregate, at September 30, 2021 and December 31, 2020, respectively
|
2,400,593 | 2,648,266 | |||||||||
Sale-leaseback financing obligations | 182,979 | 185,060 | |||||||||
Financing lease obligations | 98,135 | 125,926 | |||||||||
Operating lease obligations | 316,457 | 269,147 | |||||||||
Unearned revenue | 22,114 | 19,209 | |||||||||
Pension and postretirement benefits | 7,247 | 9,145 | |||||||||
Deferred tax liability – net | 193,194 | 220,502 | |||||||||
Multiemployer pension plan withdrawal liability | 8,267 | 8,528 | |||||||||
Total liabilities | 4,112,371 | 4,038,330 | |||||||||
Equity | |||||||||||
Shareholders’ equity: | |||||||||||
Common shares of beneficial interest, $0.01 par value – 500,000,000 and 325,000,000 authorized shares; 266,769,008 and 251,702,603 issued and outstanding at September 30, 2021 and December 31, 2020, respectively
|
2,668 | 2,517 | |||||||||
Paid-in capital | 5,110,432 | 4,687,823 | |||||||||
Accumulated deficit and distributions in excess of net earnings | (1,090,595) | (895,521) | |||||||||
Accumulated other comprehensive loss | (13,477) | (4,379) | |||||||||
Total shareholders’ equity | 4,009,028 | 3,790,440 | |||||||||
Noncontrolling interests: | |||||||||||
Noncontrolling interests in operating partnership and consolidated joint venture | 6,155 | 2,381 | |||||||||
Total equity | 4,015,183 | 3,792,821 | |||||||||
Total liabilities and equity | $ | 8,127,554 | $ | 7,831,151 |
Americold Realty Trust and Subsidiaries | |||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Rent, storage and warehouse services | $ | 542,047 | $ | 388,024 | $ | 1,531,232 | $ | 1,141,503 | |||||||||||||||||||||||||||
Third-party managed services | 87,782 | 75,338 | 233,027 | 213,213 | |||||||||||||||||||||||||||||||
Transportation services | 78,979 | 34,096 | 234,051 | 104,874 | |||||||||||||||||||||||||||||||
Other | — | — | — | 4,459 | |||||||||||||||||||||||||||||||
Total revenues | 708,808 | 497,458 | 1,998,310 | 1,464,049 | |||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Rent, storage and warehouse services cost of operations | 397,055 | 260,268 | 1,095,680 | 766,842 | |||||||||||||||||||||||||||||||
Third-party managed services cost of operations | 83,231 | 71,945 | 222,401 | 202,752 | |||||||||||||||||||||||||||||||
Transportation services cost of operations | 72,728 | 29,909 | 211,847 | 91,110 | |||||||||||||||||||||||||||||||
Cost of operations related to other revenues | 23 | 17 | 82 | 4,286 | |||||||||||||||||||||||||||||||
Depreciation and amortization | 70,569 | 53,569 | 232,239 | 157,572 | |||||||||||||||||||||||||||||||
Selling, general and administrative | 45,545 | 35,969 | 133,072 | 105,202 | |||||||||||||||||||||||||||||||
Acquisition, litigation and other | 6,338 | 5,282 | 31,011 | 9,771 | |||||||||||||||||||||||||||||||
Impairment of long-lived assets | 1,784 | 2,615 | 3,312 | 6,282 | |||||||||||||||||||||||||||||||
Loss (gain) from sale of real estate | — | 427 | — | (21,448) | |||||||||||||||||||||||||||||||
Total operating expenses | 677,273 | 460,001 | 1,929,644 | 1,322,369 | |||||||||||||||||||||||||||||||
Operating income | 31,535 | 37,457 | 68,666 | 141,680 | |||||||||||||||||||||||||||||||
Other (expense) income: | |||||||||||||||||||||||||||||||||||
Interest expense | (25,303) | (23,066) | (77,838) | (70,114) | |||||||||||||||||||||||||||||||
Loss on debt extinguishment, modifications and termination of derivative instruments | (627) | — | (5,051) | (781) | |||||||||||||||||||||||||||||||
Other, net | (523) | (1,198) | (147) | 232 | |||||||||||||||||||||||||||||||
Income (loss) before income tax (expense) benefit | 5,082 | 13,193 | (14,370) | 71,017 | |||||||||||||||||||||||||||||||
Income tax (expense) benefit | |||||||||||||||||||||||||||||||||||
Current | (3,336) | (2,103) | (6,953) | (6,823) | |||||||||||||||||||||||||||||||
Deferred | 3,562 | 1,284 | (1,004) | 4,353 | |||||||||||||||||||||||||||||||
Total income tax benefit (expense) | 226 | (819) | (7,957) | (2,470) | |||||||||||||||||||||||||||||||
Net income (loss) | $ | 5,308 | $ | 12,374 | $ | (22,327) | $ | 68,547 | |||||||||||||||||||||||||||
Net income attributable to non controlling interests | 14 | — | 163 | — | |||||||||||||||||||||||||||||||
Net income (loss) attributable to Americold Realty Trust | $ | 5,294 | $ | 12,374 | $ | (22,490) | $ | 68,547 | |||||||||||||||||||||||||||
Weighted average common shares outstanding – basic | 261,865 | 204,289 | 256,129 | 202,380 | |||||||||||||||||||||||||||||||
Weighted average common shares outstanding – diluted | 262,550 | 208,500 | 256,129 | 206,051 | |||||||||||||||||||||||||||||||
Net income (loss) per common share of beneficial interest - basic | $ | 0.02 | $ | 0.06 | $ | (0.09) | $ | 0.33 | |||||||||||||||||||||||||||
Net income (loss) per common share of beneficial interest - diluted | $ | 0.02 | $ | 0.06 | $ | (0.09) | $ | 0.33 |
Reconciliation of Net Income (Loss) to NAREIT FFO, Core FFO, and AFFO | ||||||||||||||||||||||||||
(In thousands, except per share amounts - unaudited) | ||||||||||||||||||||||||||
Three Months Ended | YTD 2021 | |||||||||||||||||||||||||
Q3 21 | Q2 21 | Q1 21 | Q4 20 | Q3 20 | ||||||||||||||||||||||
Net income (loss) | $ | 5,308 | $ | (13,399) | $ | (14,236) | $ | (43,992) | $ | 12,374 | $ | (22,327) | ||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Real estate related depreciation | 48,217 | 44,871 | 52,280 | 39,128 | 36,289 | 145,368 | ||||||||||||||||||||
Net (gain) loss on sale of real estate, net of withholding taxes (b)
|
— | — | — | (676) | 427 | — | ||||||||||||||||||||
Net (gain) loss on asset disposals | (1) | (13) | (39) | 888 | 1,160 | (53) | ||||||||||||||||||||
Impairment charges on real estate assets | 224 | 1,528 | — | 2,449 | — | 1,752 | ||||||||||||||||||||
Our share of reconciling items related to partially owned entities | 463 | 861 | 266 | 182 | 111 | 1,590 | ||||||||||||||||||||
NAREIT Funds from operations | $ | 54,211 | $ | 33,848 | $ | 38,271 | $ | (2,021) | $ | 50,361 | 126,330 | |||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Net (gain) loss on sale of non-real estate assets | (171) | (304) | (119) | 1,112 | (100) | (594) | ||||||||||||||||||||
Non-core asset impairment | — | — | — | (495) | 2,615 | — | ||||||||||||||||||||
Acquisition, litigation and other | 6,338 | 3,922 | 20,751 | 26,535 | 5,282 | 31,011 | ||||||||||||||||||||
Share-based compensation expense, IPO grants | — | — | 163 | 200 | 196 | 163 | ||||||||||||||||||||
Bridge loan commitment fees | — | — | — | 2,438 | — | — | ||||||||||||||||||||
Loss on debt extinguishment, modifications and termination of derivative instruments | 627 | 925 | 3,499 | 9,194 | — | 5,051 | ||||||||||||||||||||
Foreign currency exchange loss (gain) | 349 | 140 | (173) | 44,905 | 196 | 316 | ||||||||||||||||||||
Our share of reconciling items related to partially owned entities | 122 | 89 | 154 | 39 | 76 | 365 | ||||||||||||||||||||
Core FFO applicable to common shareholders | $ | 61,476 | $ | 38,620 | $ | 62,546 | $ | 81,907 | $ | 58,626 | 162,642 | |||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Amortization of deferred financing costs and pension withdrawal liability | 1,088 | 1,085 | 1,148 | 1,202 | 1,203 | 3,321 | ||||||||||||||||||||
Non-real estate asset impairment | 1,560 | — | — | — | — | 1,560 | ||||||||||||||||||||
Amortization of below/above market leases | 1,017 | 362 | 39 | 37 | 39 | 1,418 | ||||||||||||||||||||
Straight-line net rent | 411 | (170) | (155) | (324) | (87) | 86 | ||||||||||||||||||||
Deferred income tax (benefit) expense | (3,562) | 6,568 | (2,002) | (9,379) | (1,284) | 1,004 | ||||||||||||||||||||
Share-based compensation expense, excluding IPO grants | 4,291 | 5,467 | 4,867 | 4,371 | 4,373 | 14,625 | ||||||||||||||||||||
Non-real estate depreciation and amortization | 22,352 | 39,588 | 24,931 | 19,191 | 17,280 | 86,871 | ||||||||||||||||||||
Maintenance capital expenditures (a)
|
(18,938) | (20,488) | (15,731) | (20,291) | (17,534) | (55,157) | ||||||||||||||||||||
Our share of reconciling items related to partially owned entities | (100) | 711 | 278 | 168 | 125 | 889 | ||||||||||||||||||||
Adjusted FFO applicable to common shareholders | $ | 69,595 | $ | 71,743 | $ | 75,921 | $ | 76,882 | $ | 62,741 | 217,259 |
Reconciliation of Net Income (Loss) to NAREIT FFO, Core FFO, and AFFO (continued) | ||||||||||||||||||||||||||
(In thousands except per share amounts - unaudited) | ||||||||||||||||||||||||||
Three Months Ended | YTD 2021 | |||||||||||||||||||||||||
Q3 21 | Q2 21 | Q1 21 | Q4 20 | Q3 20 | ||||||||||||||||||||||
NAREIT Funds from operations | $ | 54,211 | $ | 33,848 | $ | 38,271 | $ | (2,021) | $ | 50,361 | $ | 126,330 | ||||||||||||||
Core FFO applicable to common shareholders | $ | 61,476 | $ | 38,620 | $ | 62,546 | $ | 81,907 | $ | 58,626 | $ | 162,642 | ||||||||||||||
Adjusted FFO applicable to common shareholders | $ | 69,595 | $ | 71,743 | $ | 75,921 | $ | 76,882 | $ | 62,741 | $ | 217,259 | ||||||||||||||
Reconciliation of weighted average shares: | ||||||||||||||||||||||||||
Weighted average basic shares for net income calculation | 261,865 | 253,213 | 252,938 | 205,984 | 204,289 | $ | 256,129 | |||||||||||||||||||
Dilutive stock options, unvested restricted stock units, equity forward contracts | 685 | 3,544 | 3,226 | 3,944 | 4,211 | 2,494 | ||||||||||||||||||||
Weighted average dilutive shares | 262,550 | 256,757 | 256,164 | 209,928 | 208,500 | $ | 258,623 | |||||||||||||||||||
NAREIT FFO - basic per share | $ | 0.21 | $ | 0.13 | $ | 0.15 | $ | (0.01) | $ | 0.25 | $ | 0.49 | ||||||||||||||
NAREIT FFO - diluted per share | $ | 0.21 | $ | 0.13 | $ | 0.15 | $ | (0.01) | $ | 0.24 | $ | 0.49 | ||||||||||||||
Core FFO - basic per share | $ | 0.23 | $ | 0.15 | $ | 0.25 | $ | 0.40 | $ | 0.29 | $ | 0.64 | ||||||||||||||
Core FFO - diluted per share | $ | 0.23 | $ | 0.15 | $ | 0.24 | $ | 0.39 | $ | 0.28 | $ | 0.63 | ||||||||||||||
Adjusted FFO - basic per share | $ | 0.27 | $ | 0.28 | $ | 0.30 | $ | 0.37 | $ | 0.31 | $ | 0.85 | ||||||||||||||
Adjusted FFO - diluted per share | $ | 0.27 | $ | 0.28 | $ | 0.30 | $ | 0.37 | $ | 0.30 | $ | 0.85 | ||||||||||||||
(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 Condensed Consolidated Statement of Operations. |
Reconciliation of Net Income (Loss) to EBITDA, NAREIT EBITDAre, and Core EBITDA | ||||||||||||||||||||||||||
(In thousands - unaudited) | ||||||||||||||||||||||||||
Three Months Ended | Trailing Twelve Months Ended | |||||||||||||||||||||||||
Q3 21 | Q2 21 | Q1 21 | Q4 20 | Q3 20 | Q3 2021 | |||||||||||||||||||||
Net income (loss) | $ | 5,308 | $ | (13,399) | $ | (14,236) | $ | (43,992) | $ | 12,374 | $ | (66,319) | ||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Depreciation and amortization | 70,569 | 84,459 | 77,211 | 58,319 | 53,569 | 290,558 | ||||||||||||||||||||
Interest expense | 25,303 | 26,579 | 25,956 | 21,367 | 23,066 | 99,205 | ||||||||||||||||||||
Income tax (benefit) expense | (226) | 8,974 | (791) | (9,397) | 819 | (1,440) | ||||||||||||||||||||
EBITDA | $ | 100,954 | $ | 106,613 | $ | 88,140 | $ | 26,297 | $ | 89,828 | $ | 411,832 | ||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Net (gain) loss on sale of real estate, net of withholding taxes | — | — | — | (676) | 427 | (676) | ||||||||||||||||||||
Adjustment to reflect share of EBITDAre of partially owned entities | 1,854 | 1,838 | 649 | 432 | 293 | 4,773 | ||||||||||||||||||||
NAREIT EBITDAre | $ | 102,808 | $ | 108,451 | $ | 88,789 | $ | 26,053 | $ | 90,548 | $ | 416,649 | ||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Acquisition, litigation and other | 6,338 | 3,922 | 20,751 | 26,535 | 5,282 | 57,546 | ||||||||||||||||||||
Bridge loan commitment fees | — | — | — | 2,438 | — | 2,438 | ||||||||||||||||||||
Loss (income) from investments in partially owned entities | 490 | 61 | 700 | (4) | 98 | 1,247 | ||||||||||||||||||||
Asset impairment | 1,784 | 1,528 | — | 1,954 | 2,615 | 5,266 | ||||||||||||||||||||
Foreign currency exchange loss (gain) | 349 | 140 | (173) | 44,905 | 196 | 45,221 | ||||||||||||||||||||
Share-based compensation expense | 4,291 | 5,467 | 5,030 | 4,571 | 4,569 | 19,359 | ||||||||||||||||||||
Loss on debt extinguishment, modifications and termination of derivative instruments | 627 | 925 | 3,499 | 9,194 | — | 14,245 | ||||||||||||||||||||
(Gain) loss on real estate and other asset disposals | (172) | (317) | (158) | 1,999 | 1,060 | 1,352 | ||||||||||||||||||||
Reduction in EBITDAre from partially owned entities | (1,854) | (1,838) | (649) | (432) | (293) | (4,773) | ||||||||||||||||||||
Core EBITDA | $ | 114,661 | $ | 118,339 | $ | 117,789 | $ | 117,213 | $ | 104,075 | $ | 468,002 |
Revenue and Contribution by Segment | |||||||||||||||||||||||
(in thousands - unaudited) | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Segment revenues: | |||||||||||||||||||||||
Warehouse | $ | 542,047 | $ | 388,024 | $ | 1,531,232 | $ | 1,141,503 | |||||||||||||||
Third-party managed | 87,782 | 75,338 | 233,027 | 213,213 | |||||||||||||||||||
Transportation | 78,979 | 34,096 | 234,051 | 104,874 | |||||||||||||||||||
Other | — | — | — | 4,459 | |||||||||||||||||||
Total revenues | 708,808 | 497,458 | 1,998,310 | 1,464,049 | |||||||||||||||||||
Segment contribution: | |||||||||||||||||||||||
Warehouse | 144,992 | 127,756 | 435,552 | 374,661 | |||||||||||||||||||
Third-party managed | 4,551 | 3,393 | 10,626 | 10,461 | |||||||||||||||||||
Transportation | 6,251 | 4,187 | 22,204 | 13,764 | |||||||||||||||||||
Other | (23) | (17) | (82) | 173 | |||||||||||||||||||
Total segment contribution | 155,771 | 135,319 | 468,300 | 399,059 | |||||||||||||||||||
Reconciling items: | |||||||||||||||||||||||
Depreciation and amortization | (70,569) | (53,569) | (232,239) | (157,572) | |||||||||||||||||||
Selling, general and administrative | (45,545) | (35,969) | (133,072) | (105,202) | |||||||||||||||||||
Acquisition, litigation and other | (6,338) | (5,282) | (31,011) | (9,771) | |||||||||||||||||||
Impairment of long-lived assets | (1,784) | (2,615) | (3,312) | (6,282) | |||||||||||||||||||
Gain (loss) from sale of real estate | — | (427) | — | 21,448 | |||||||||||||||||||
Interest expense | (25,303) | (23,066) | (77,838) | (70,114) | |||||||||||||||||||
Loss on debt extinguishment, modifications and termination of derivative instruments | (627) | — | (5,051) | (781) | |||||||||||||||||||
Other, net | (523) | (1,198) | (147) | 232 | |||||||||||||||||||
Income (loss) before income tax (expense) benefit | $ | 5,082 | $ | 13,193 | $ | (14,370) | $ | 71,017 |
Notes and Definitions | ||
We calculate funds from operations, or FFO, in accordance with the standards established by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. NAREIT defines FFO as net income or loss determined in accordance with U.S. GAAP, excluding extraordinary items as defined under U.S. GAAP and gains or losses from sales of previously depreciated operating real estate assets, plus specified non-cash items, such as real estate asset depreciation, net loss or gain on asset disposals, impairment of real estate assets, and our share of reconciling items of partially owned entities. We believe that FFO is helpful to investors as a supplemental performance measure because it excludes the effect of depreciation, amortization and gains or losses from sales of real estate net of withholding taxes, all of which are based on historical costs, which implicitly assumes that the value of real estate diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, FFO can facilitate comparisons of operating performance between periods and among other equity REITs. | ||
We calculate core funds from operations, or Core FFO, as FFO adjusted for the effects of gain or loss on the sale of non-real estate assets, non-core asset impairment, acquisition, litigation and other expenses, share-based compensation expense for the IPO retention grants, bridge loan commitment fees, loss on debt extinguishment, modifications and termination of derivative instruments and foreign currency exchange gain or loss. We also adjust for the impact of Core FFO attributable to partially owned entities. We have elected to reflect our share of Core FFO attributable to partially owned entities since the Brazil joint ventures are strategic partnerships which we continue to actively participate in on an ongoing basis. The previous joint venture, the China JV, was considered for disposition during the periods presented. We believe that Core FFO is helpful to investors as a supplemental performance measure because it excludes the effects of certain items which can create significant earnings volatility, but which do not directly relate to our core business operations. We believe Core FFO can facilitate comparisons of operating performance between periods, while also providing a more meaningful predictor of future earnings potential. | ||
However, because FFO and Core FFO add back real estate depreciation and amortization and do not capture the level of maintenance capital expenditures necessary to maintain the operating performance of our properties, both of which have material economic impacts on our results from operations, we believe the 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 FFO adjusted for the effects of amortization of deferred financing costs, pension withdrawal liability and above or below market leases, straight-line net rent, provision or benefit from deferred income taxes, share-based compensation expense from grants of stock options and restricted stock units under our equity incentive plans, excluding IPO grants, non-real estate depreciation and amortization, non-real estate asset impairment and maintenance capital expenditures. We also adjust for AFFO attributable to our portion of reconciling items of partially owned entities. We believe that Adjusted FFO is helpful to investors as a meaningful supplemental comparative performance measure of our ability to make incremental capital investments in our business and to assess our ability to fund distribution requirements from our operating activities. | ||
FFO, Core FFO and Adjusted FFO are used by management, investors and industry analysts as supplemental measures of operating performance of equity REITs. FFO, Core FFO and Adjusted FFO should be evaluated along with U.S. GAAP net income and net income per diluted share (the most directly comparable U.S. GAAP measures) in evaluating our operating performance. FFO, Core FFO and Adjusted FFO do not represent net income or cash flows from operating activities in accordance with U.S. GAAP and are not indicative of our results of operations or cash flows from operating activities as disclosed in our consolidated statements of operations included in our annual and quarterly reports. FFO, Core FFO and Adjusted FFO should be considered as supplements, but not alternatives, to our net income or cash flows from operating activities as indicators of our operating performance. Moreover, other REITs may not calculate FFO in accordance with the NAREIT definition or may interpret the NAREIT definition differently than we do. Accordingly, our FFO may not be comparable to FFO as calculated by other REITs. In addition, there is no industry definition of Core FFO or Adjusted FFO and, as a result, other REITs may also calculate Core FFO or Adjusted FFO, or other similarly-captioned metrics, in a manner different than we do. The table above reconciles FFO, Core FFO and Adjusted FFO to net income, which is the most directly comparable financial measure calculated in accordance with U.S. GAAP. | ||
We calculate EBITDA for Real Estate, or EBITDAre, in accordance with the standards established by the Board of Governors of NAREIT, defined as, earnings before interest expense, taxes, depreciation and amortization, and net (gain) loss on sale of real estate, net of withholding taxes and adjustment to reflect our share of EBITDAre of partially owned entities. EBITDAre is a measure commonly used in our industry, and we present EBITDAre to enhance investor understanding of our operating performance. We believe that EBITDAre provides investors and analysts with a measure of operating results unaffected by differences in capital structures, capital investment cycles and useful life of related assets among otherwise comparable companies. | ||
We also calculate our Core EBITDA as EBITDAre further adjusted for acquisition, litigation and other expenses, asset impairment, loss or gain on real estate and other asset disposals, bridge loan commitment fees, loss on debt extinguishment, modifications and termination of derivative instruments, share-based compensation expense, foreign currency exchange gain or loss, loss or income from investments in partially owned entities and reduction in EBITDAre from partially owned entities. We believe that the presentation of Core EBITDA provides a measurement of our operations that is meaningful to investors because it excludes the effects of certain items that are otherwise included in EBITDA but which we do not believe are indicative of our core business operations. EBITDA and Core EBITDA are not measurements of financial performance under U.S. GAAP, and our EBITDA and Core EBITDA may not be comparable to similarly titled measures of other companies. You should not consider our EBITDA and Core EBITDA as alternatives to net income or cash flows from operating activities determined in accordance with U.S. GAAP. Our calculations of EBITDA and Core EBITDA have limitations as analytical tools, including: |
We use Core EBITDA and EBITDAre as measures of our operating performance and not as measures of liquidity. The table on page 22 of our financial supplement reconciles EBITDA, EBITDAre and Core EBITDA to net income, which is the most directly comparable financial measure calculated in accordance with U.S. GAAP. | ||
All quarterly amounts and non-GAAP disclosures within this filing shall be deemed unaudited. |
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Financial Supplement |
Third Quarter 2021
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Table of Contents | |||||
Overview | PAGE | ||||
Corporate Profile | |||||
Earnings Release | |||||
Selected Quarterly Financial Data | |||||
Financial Information | |||||
Condensed Consolidated Balance Sheets | |||||
Condensed Consolidated Statements of Operations | |||||
Reconciliation of Net Income (Loss) to NAREIT FFO, Core FFO and AFFO | |||||
Reconciliation of Net Income (Loss) to EBITDA, NAREIT EBITDAre, and Core EBITDA | |||||
Acquisition, Litigation and Other | |||||
Debt Detail and Maturities | |||||
Operations Overview | |||||
Revenue and Contribution by Segment | |||||
Global Warehouse Economic and Physical Occupancy Trend | |||||
Global Warehouse Portfolio | |||||
Fixed Commitment and Lease Maturity Schedules | |||||
Maintenance Capital Expenditures, Repair and Maintenance Expenses and External Growth, Expansion and Development Capital Expenditures | |||||
Total Global Warehouse Segment Financial and Operating Performance | |||||
Global Warehouse Segment Financial Performance | |||||
Same-store Financial Performance | |||||
Same-store Key Operating Metrics | |||||
Same-store Historical Performance Trend | |||||
External Growth and Capital Deployment | |||||
Unconsolidated Joint Ventures (Investments in Partially Owned Entities) | |||||
2021 Guidance | |||||
Notes and Definitions |
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Financial Supplement |
Third Quarter 2021
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Financial Supplement |
Third Quarter 2021
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Analyst Coverage | ||||||||
Firm | Analyst Name | Contact | ||||||
Baird Equity Research | David B. Rodgers | 216-737-7341 | ||||||
Bank of America Merrill Lynch | Joshua Dennerlein | 646-855-1681 | ||||||
Barclays | Anthony Powell | 212-526-8768 | ||||||
Berenberg Capital Markets | Nate Crossett | 646-949-9030 | ||||||
Citi | Emmanuel Korchman | 212-816-1382 | ||||||
Green Street Advisors | Vince Tibone | 949-640-8780 | ||||||
J.P. Morgan | Michael W. Mueller | 212-622-6689 | ||||||
KeyBanc | Craig Mailman | 917-368-2316 | ||||||
Raymond James | William A. Crow | 727-567-2594 | ||||||
RBC | Michael Carroll | 440-715-2649 | ||||||
Truist | Ki Bin Kim | 212-303-4124 |
DBRS Morningstar | ||||||||
Credit Rating: | BBB | (Positive Trend) | ||||||
Fitch | ||||||||
Issuer Default Rating: | BBB | (Stable Outlook) | ||||||
Moody’s | ||||||||
Issuer Rating: | Baa3 | (Stable Outlook) |
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Third Quarter 2021
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Third Quarter 2021
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Three Months Ended September 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||||
Dollars in thousands | 2021 actual |
2021 constant currency(1)
|
2020 actual | Actual | Constant currency | ||||||||||||||||||||||||||||||||||||||||||
TOTAL WAREHOUSE SEGMENT | |||||||||||||||||||||||||||||||||||||||||||||||
Number of total warehouses(2)
|
239 | 175 | n/a | n/a | |||||||||||||||||||||||||||||||||||||||||||
Global Warehouse revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Rent and storage | $ | 225,234 | $ | 224,210 | $ | 166,355 | 35.4 | % | 34.8 | % | |||||||||||||||||||||||||||||||||||||
Warehouse services | 316,813 | 315,105 | 221,669 | 42.9 | % | 42.2 | % | ||||||||||||||||||||||||||||||||||||||||
Total revenue | $ | 542,047 | $ | 539,315 | $ | 388,024 | 39.7 | % | 39.0 | % | |||||||||||||||||||||||||||||||||||||
Global Warehouse contribution (NOI) | $ | 144,992 | $ | 144,455 | $ | 127,756 | 13.5 | % | 13.1 | % | |||||||||||||||||||||||||||||||||||||
Global Warehouse margin | 26.7 | % | 26.8 | % | 32.9 | % | -618 bps | -614 bps | |||||||||||||||||||||||||||||||||||||||
Units in thousands except per pallet data | |||||||||||||||||||||||||||||||||||||||||||||||
Global Warehouse rent and storage metrics: | |||||||||||||||||||||||||||||||||||||||||||||||
Average economic occupied pallets | 4,061 | n/a | 3,144 | 29.2 | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Average physical occupied pallets | 3,709 | n/a | 2,849 | 30.2 | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Average physical pallet positions | 5,351 | n/a | 4,074 | 31.4 | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Economic occupancy percentage | 75.9 | % | n/a | 77.2 | % | -129 bps | n/a | ||||||||||||||||||||||||||||||||||||||||
Physical occupancy percentage | 69.3 | % | n/a | 69.9 | % | -61 bps | n/a | ||||||||||||||||||||||||||||||||||||||||
Total rent and storage revenue per economic occupied pallet | $ | 55.46 | $ | 55.21 | $ | 52.91 | 4.8 | % | 4.4 | % | |||||||||||||||||||||||||||||||||||||
Total rent and storage revenue per physical occupied pallet | $ | 60.73 | $ | 60.45 | $ | 58.40 | 4.0 | % | 3.5 | % | |||||||||||||||||||||||||||||||||||||
Global Warehouse services metrics: | |||||||||||||||||||||||||||||||||||||||||||||||
Throughput pallets | 10,142 | n/a | 7,918 | 28.1 | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Total warehouse services revenue per throughput pallet | $ | 31.24 | $ | 31.07 | $ | 27.99 | 11.6 | % | 11.0 | % | |||||||||||||||||||||||||||||||||||||
SAME STORE WAREHOUSE | |||||||||||||||||||||||||||||||||||||||||||||||
Number of same store warehouses | 162 | 162 | n/a | n/a | |||||||||||||||||||||||||||||||||||||||||||
Global Warehouse same store revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Rent and storage | $ | 157,233 | $ | 157,108 | $ | 154,926 | 1.5 | % | 1.4 | % | |||||||||||||||||||||||||||||||||||||
Warehouse services | 216,351 | 215,316 | 210,309 | 2.9 | % | 2.4 | % | ||||||||||||||||||||||||||||||||||||||||
Total same store revenue | $ | 373,584 | $ | 372,424 | $ | 365,235 | 2.3 | % | 2.0 | % | |||||||||||||||||||||||||||||||||||||
Global Warehouse same store contribution (NOI) | $ | 117,209 | $ | 116,799 | $ | 123,528 | (5.1) | % | (5.4) | % | |||||||||||||||||||||||||||||||||||||
Global Warehouse same store margin | 31.4 | % | 31.4 | % | 33.8 | % | -245 bps | -246 bps | |||||||||||||||||||||||||||||||||||||||
Units in thousands except per pallet data | |||||||||||||||||||||||||||||||||||||||||||||||
Global Warehouse same store rent and storage metrics: | |||||||||||||||||||||||||||||||||||||||||||||||
Average economic occupied pallets | 2,878 | n/a | 2,942 | (2.2) | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Average physical occupied pallets | 2,553 | n/a | 2,661 | (4.1) | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Average physical pallet positions | 3,760 | n/a | 3,756 | 0.1 | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Economic occupancy percentage | 76.5 | % | n/a | 78.3 | % | -179 bps | n/a | ||||||||||||||||||||||||||||||||||||||||
Physical occupancy percentage | 67.9 | % | n/a | 70.8 | % | -295 bps | n/a | ||||||||||||||||||||||||||||||||||||||||
Same store rent and storage revenue per economic occupied pallet | $ | 54.62 | $ | 54.58 | $ | 52.66 | 3.7 | % | 3.6 | % | |||||||||||||||||||||||||||||||||||||
Same store rent and storage revenue per physical occupied pallet | $ | 61.59 | $ | 61.54 | $ | 58.23 | 5.8 | % | 5.7 | % | |||||||||||||||||||||||||||||||||||||
Global Warehouse same store services metrics: | |||||||||||||||||||||||||||||||||||||||||||||||
Throughput pallets | 7,328 | n/a | 7,467 | (1.9) | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Same store warehouse services revenue per throughput pallet | $ | 29.52 | $ | 29.38 | $ | 28.16 | 4.8 | % | 4.3 | % |
|
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Financial Supplement |
Third Quarter 2021
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Financial Supplement |
Third Quarter 2021
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Nine Months Ended September 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||||
Dollars in thousands | 2021 actual |
2021 constant currency(1)
|
2020 actual | Actual | Constant currency | ||||||||||||||||||||||||||||||||||||||||||
TOTAL WAREHOUSE SEGMENT | |||||||||||||||||||||||||||||||||||||||||||||||
Number of total warehouses(2)
|
239 | 175 | n/a | n/a | |||||||||||||||||||||||||||||||||||||||||||
Global Warehouse revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Rent and storage | $ | 642,787 | $ | 633,774 | $ | 492,328 | 30.6 | % | 28.7 | % | |||||||||||||||||||||||||||||||||||||
Warehouse services | 888,445 | 869,710 | 649,175 | 36.9 | % | 34.0 | % | ||||||||||||||||||||||||||||||||||||||||
Total revenue | $ | 1,531,232 | $ | 1,503,484 | $ | 1,141,503 | 34.1 | % | 31.7 | % | |||||||||||||||||||||||||||||||||||||
Global Warehouse contribution (NOI) | $ | 435,552 | $ | 427,988 | $ | 374,661 | 16.3 | % | 14.2 | % | |||||||||||||||||||||||||||||||||||||
Global Warehouse margin | 28.4 | % | 28.5 | % | 32.8 | % | -438 bps | -436 bps | |||||||||||||||||||||||||||||||||||||||
Units in thousands except per pallet data | |||||||||||||||||||||||||||||||||||||||||||||||
Global Warehouse rent and storage metrics: | |||||||||||||||||||||||||||||||||||||||||||||||
Average economic occupied pallets | 3,994 | n/a | 3,188 | 25.3 | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Average physical occupied pallets | 3,648 | n/a | 2,930 | 24.5 | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Average physical pallet positions | 5,250 | n/a | 4,043 | 29.9 | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Economic occupancy percentage | 76.1 | % | n/a | 78.9 | % | -279 bps | n/a | ||||||||||||||||||||||||||||||||||||||||
Physical occupancy percentage | 69.5 | % | n/a | 72.5 | % | -298 bps | n/a | ||||||||||||||||||||||||||||||||||||||||
Total rent and storage revenue per economic occupied pallet | $ | 160.93 | $ | 158.67 | $ | 154.41 | 4.2 | % | 2.8 | % | |||||||||||||||||||||||||||||||||||||
Total rent and storage revenue per physical occupied pallet | $ | 176.21 | $ | 173.74 | $ | 168.06 | 4.9 | % | 3.4 | % | |||||||||||||||||||||||||||||||||||||
Global Warehouse services metrics: | |||||||||||||||||||||||||||||||||||||||||||||||
Throughput pallets | 29,591 | n/a | 23,834 | 24.2 | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Total warehouse services revenue per throughput pallet | $ | 30.02 | $ | 29.39 | $ | 27.24 | 10.2 | % | 7.9 | % | |||||||||||||||||||||||||||||||||||||
SAME STORE WAREHOUSE | |||||||||||||||||||||||||||||||||||||||||||||||
Number of same store warehouses | 162 | 162 | n/a | n/a | |||||||||||||||||||||||||||||||||||||||||||
Global Warehouse same store revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Rent and storage | $ | 457,384 | $ | 453,945 | $ | 460,623 | (0.7) | % | (1.4) | % | |||||||||||||||||||||||||||||||||||||
Warehouse services | 631,694 | 619,336 | 619,002 | 2.1 | % | 0.1 | % | ||||||||||||||||||||||||||||||||||||||||
Total same store revenue | $ | 1,089,078 | $ | 1,073,281 | $ | 1,079,625 | 0.9 | % | (0.6) | % | |||||||||||||||||||||||||||||||||||||
Global Warehouse same store contribution (NOI) | $ | 351,927 | $ | 347,487 | $ | 365,675 | (3.8) | % | (5.0) | % | |||||||||||||||||||||||||||||||||||||
Global Warehouse same store margin | 32.3 | % | 32.4 | % | 33.9 | % | -156 bps | -149 bps | |||||||||||||||||||||||||||||||||||||||
Units in thousands except per pallet data | |||||||||||||||||||||||||||||||||||||||||||||||
Global Warehouse same store rent and storage metrics: | |||||||||||||||||||||||||||||||||||||||||||||||
Average economic occupied pallets | 2,865 | n/a | 3,003 | (4.6) | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Average physical occupied pallets | 2,543 | n/a | 2,753 | (7.6) | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Average physical pallet positions | 3,762 | n/a | 3,750 | 0.3 | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Economic occupancy percentage | 76.2 | % | n/a | 80.1 | % | -393 bps | n/a | ||||||||||||||||||||||||||||||||||||||||
Physical occupancy percentage | 67.6 | % | n/a | 73.4 | % | -582 bps | n/a | ||||||||||||||||||||||||||||||||||||||||
Same store rent and storage revenue per economic occupied pallet | $ | 159.64 | $ | 158.44 | $ | 153.38 | 4.1 | % | 3.3 | % | |||||||||||||||||||||||||||||||||||||
Same store rent and storage revenue per physical occupied pallet | $ | 179.85 | $ | 178.50 | $ | 167.31 | 7.5 | % | 6.7 | % | |||||||||||||||||||||||||||||||||||||
Global Warehouse same store services metrics: | |||||||||||||||||||||||||||||||||||||||||||||||
Throughput pallets | 21,805 | n/a | 22,547 | (3.3) | % | n/a | |||||||||||||||||||||||||||||||||||||||||
Same store warehouse services revenue per throughput pallet | $ | 28.97 | $ | 28.40 | $ | 27.45 | 5.5 | % | 3.5 | % |
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Financial Supplement |
Third Quarter 2021
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Financial Supplement |
Third Quarter 2021
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Outstanding Equity Forward Data | |||||||||||||||||
in millions, except share price amounts | |||||||||||||||||
Quarter Raised | Forward Shares |
Net Share Price1
|
Net Proceeds | Contractual Outside Settlement Date | Target Use of Net Proceeds | ||||||||||||
2Q/3Q 2021 | 1.436 | $38.96 | $55.0 | 7/1/2022 | Fund future growth initiatives | ||||||||||||
(1) Net of underwriter fee, forward costs and dividends paid.
|
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Financial Supplement |
Third Quarter 2021
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Financial Supplement |
Third Quarter 2021
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Financial Supplement |
Third Quarter 2021
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Financial Supplement |
Third Quarter 2021
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In thousands, except per share amounts - unaudited | As of | ||||||||||||||||
Capitalization: | Q3 21 | Q2 21 | Q1 21 | Q4 20 | Q3 20 | ||||||||||||
Fully diluted common shares outstanding at quarter end(1)
|
269,073 | 263,676 | 257,392 | 256,829 | 208,764 | ||||||||||||
Common stock share price at quarter end | $29.05 | $37.85 | $38.47 | $37.73 | $35.75 | ||||||||||||
Market value of common equity | $7,816,571 | $9,980,137 | $9,901,870 | $9,690,158 | $7,463,313 | ||||||||||||
Gross debt (2)
|
$2,998,817 | $2,874,481 | $2,778,873 | $2,975,204 | $2,034,087 | ||||||||||||
Less: cash and cash equivalents | 152,770 | 316,077 | 287,691 | 621,051 | 173,913 | ||||||||||||
Net debt | $2,846,047 | $2,558,404 | $2,491,182 | $2,354,153 | $1,860,174 | ||||||||||||
Total enterprise value | $10,662,618 | $12,538,541 | $12,393,052 | $12,044,311 | $9,323,487 | ||||||||||||
Net debt / total enterprise value | 26.7 | % | 20.4 | % | 20.1 | % | 19.5 | % | 20.0 | % | |||||||
Net debt to pro forma Core EBITDA(2)
|
5.49x | 4.88x | 4.79x | 4.43x | 4.34x | ||||||||||||
Three Months Ended | |||||||||||||||||
Selected Operational Data: | Q3 21 | Q2 21 | Q1 21 | Q4 20 | Q3 20 | ||||||||||||
Warehouse segment revenue | $542,047 | $503,734 | $485,451 | $407,811 | $388,024 | ||||||||||||
Total revenue | 708,808 | 654,707 | 634,795 | 523,678 | 497,458 | ||||||||||||
Operating income | 31,535 | 22,905 | 14,226 | 26,771 | 37,457 | ||||||||||||
Net income (loss) | 5,308 | (13,399) | (14,236) | (43,992) | 12,374 | ||||||||||||
Total warehouse segment contribution (NOI) (3)
|
144,992 | 144,379 | 146,181 | 145,672 | 127,756 | ||||||||||||
Total segment contribution (NOI) (3)
|
155,771 | 155,289 | 157,240 | 152,439 | 135,319 | ||||||||||||
Selected Other Data: | |||||||||||||||||
Core EBITDA (4)
|
$114,661 | $118,339 | $117,789 | $117,213 | $104,075 | ||||||||||||
Core funds from operations (1)
|
61,476 | 38,620 | 62,546 | 81,907 | 58,626 | ||||||||||||
Adjusted funds from operations (1)
|
69,595 | 71,743 | 75,921 | 76,882 | 62,741 | ||||||||||||
Earnings Measurements: | |||||||||||||||||
Net income (loss) per share - basic | $0.02 | $(0.05) | $(0.06) | $(0.21) | $0.06 | ||||||||||||
Net income (loss) per share - diluted | $0.02 | $(0.05) | $(0.06) | $(0.21) | $0.06 | ||||||||||||
Core FFO per diluted share (4)
|
$0.23 | $0.15 | $0.24 | $0.39 | $0.28 | ||||||||||||
AFFO per diluted share (4)
|
$0.27 | $0.28 | $0.30 | $0.37 | $0.30 | ||||||||||||
Dividend distributions declared per common share (5)
|
$0.22 | $0.22 | $0.22 | $0.21 | $0.21 | ||||||||||||
Diluted AFFO payout ratio (6)
|
81.5 | % | 78.6 | % | 73.3 | % | 56.8 | % | 70.0 | % | |||||||
Portfolio Statistics: | |||||||||||||||||
Total global warehouses | 248 | 246 | 242 | 238 | 185 | ||||||||||||
Average economic occupancy | 75.9 | % | 75.2 | % | 77.0 | % | 79.2 | % | 77.2 | % | |||||||
Average physical occupancy | 69.3 | % | 68.8 | % | 70.3 | % | 72.3 | % | 69.9 | % | |||||||
Total global same-store warehouses | 162 | 162 | 162 | 135 | 135 |
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Financial Supplement |
Third Quarter 2021
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Financial Supplement |
Third Quarter 2021
|
Americold Realty Trust and Subsidiaries | |||||||||||
Condensed Consolidated Balance Sheets (Unaudited) | |||||||||||
(In thousands, except shares and per share amounts) | |||||||||||
September 30, | December 31, | ||||||||||
2021 | 2020 | ||||||||||
Assets | |||||||||||
Property, buildings and equipment: | |||||||||||
Land | $ | 769,720 | $ | 662,885 | |||||||
Buildings and improvements | 4,057,597 | 4,004,824 | |||||||||
Machinery and equipment | 1,297,087 | 1,177,572 | |||||||||
Assets under construction | 402,576 | 303,531 | |||||||||
6,526,980 | 6,148,812 | ||||||||||
Accumulated depreciation | (1,563,868) | (1,382,298) | |||||||||
Property, buildings and equipment – net | 4,963,112 | 4,766,514 | |||||||||
Operating lease right-of-use assets | 385,341 | 291,797 | |||||||||
Accumulated depreciation – operating leases | (48,978) | (24,483) | |||||||||
Operating leases – net | 336,363 | 267,314 | |||||||||
Financing leases: | |||||||||||
Buildings and improvements | 13,550 | 60,513 | |||||||||
Machinery and equipment | 148,724 | 109,416 | |||||||||
162,274 | 169,929 | ||||||||||
Accumulated depreciation – financing leases | (56,686) | (40,937) | |||||||||
Financing leases – net | 105,588 | 128,992 | |||||||||
Cash, cash equivalents and restricted cash | 152,770 | 621,051 | |||||||||
Accounts receivable – net of allowance of $17,017 and $12,286 at September 30, 2021 and December 31, 2020, respectively
|
368,179 | 324,221 | |||||||||
Identifiable intangible assets – net | 1,011,102 | 797,423 | |||||||||
Goodwill | 1,039,850 | 794,335 | |||||||||
Investments in partially owned entities | 38,571 | 44,907 | |||||||||
Other assets | 112,019 | 86,394 | |||||||||
Total assets | $ | 8,127,554 | $ | 7,831,151 | |||||||
Liabilities and equity | |||||||||||
Liabilities: | |||||||||||
Borrowings under revolving line of credit | $ | 305,664 | $ | — | |||||||
Accounts payable and accrued expenses | 577,721 | 552,547 | |||||||||
Mortgage notes, senior unsecured notes and term loans – net of deferred financing costs of $11,446 and $15,952 in the aggregate, at September 30, 2021 and December 31, 2020, respectively
|
2,400,593 | 2,648,266 | |||||||||
Sale-leaseback financing obligations | 182,979 | 185,060 | |||||||||
Financing lease obligations | 98,135 | 125,926 | |||||||||
Operating lease obligations | 316,457 | 269,147 | |||||||||
Unearned revenue | 22,114 | 19,209 | |||||||||
Pension and postretirement benefits | 7,247 | 9,145 | |||||||||
Deferred tax liability – net | 193,194 | 220,502 | |||||||||
Multiemployer pension plan withdrawal liability | 8,267 | 8,528 | |||||||||
Total liabilities | 4,112,371 | 4,038,330 | |||||||||
Equity | |||||||||||
Shareholders’ equity: | |||||||||||
Common shares of beneficial interest, $0.01 par value – 500,000,000 and 325,000,000 authorized shares; 266,769,008 and 251,702,603 issued and outstanding at September 30, 2021 and December 31, 2020, respectively
|
2,668 | 2,517 | |||||||||
Paid-in capital | 5,110,432 | 4,687,823 | |||||||||
Accumulated deficit and distributions in excess of net earnings | (1,090,595) | (895,521) | |||||||||
Accumulated other comprehensive loss | (13,477) | (4,379) | |||||||||
Total shareholders’ equity | 4,009,028 | 3,790,440 | |||||||||
Noncontrolling interests: | |||||||||||
Noncontrolling interests in operating partnership and consolidated joint venture | 6,155 | 2,381 | |||||||||
Total equity | 4,015,183 | 3,792,821 | |||||||||
Total liabilities and equity | $ | 8,127,554 | $ | 7,831,151 |
|
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Financial Supplement |
Third Quarter 2021
|
Americold Realty Trust and Subsidiaries | |||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Rent, storage and warehouse services | $ | 542,047 | $ | 388,024 | $ | 1,531,232 | $ | 1,141,503 | |||||||||||||||||||||||||||
Third-party managed services | 87,782 | 75,338 | 233,027 | 213,213 | |||||||||||||||||||||||||||||||
Transportation services | 78,979 | 34,096 | 234,051 | 104,874 | |||||||||||||||||||||||||||||||
Other | — | — | — | 4,459 | |||||||||||||||||||||||||||||||
Total revenues | 708,808 | 497,458 | 1,998,310 | 1,464,049 | |||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Rent, storage and warehouse services cost of operations | 397,055 | 260,268 | 1,095,680 | 766,842 | |||||||||||||||||||||||||||||||
Third-party managed services cost of operations | 83,231 | 71,945 | 222,401 | 202,752 | |||||||||||||||||||||||||||||||
Transportation services cost of operations | 72,728 | 29,909 | 211,847 | 91,110 | |||||||||||||||||||||||||||||||
Cost of operations related to other revenues | 23 | 17 | 82 | 4,286 | |||||||||||||||||||||||||||||||
Depreciation and amortization | 70,569 | 53,569 | 232,239 | 157,572 | |||||||||||||||||||||||||||||||
Selling, general and administrative | 45,545 | 35,969 | 133,072 | 105,202 | |||||||||||||||||||||||||||||||
Acquisition, litigation and other | 6,338 | 5,282 | 31,011 | 9,771 | |||||||||||||||||||||||||||||||
Impairment of long-lived assets | 1,784 | 2,615 | 3,312 | 6,282 | |||||||||||||||||||||||||||||||
Loss (gain) from sale of real estate | — | 427 | — | (21,448) | |||||||||||||||||||||||||||||||
Total operating expenses | 677,273 | 460,001 | 1,929,644 | 1,322,369 | |||||||||||||||||||||||||||||||
Operating income | 31,535 | 37,457 | 68,666 | 141,680 | |||||||||||||||||||||||||||||||
Other (expense) income: | |||||||||||||||||||||||||||||||||||
Interest expense | (25,303) | (23,066) | (77,838) | (70,114) | |||||||||||||||||||||||||||||||
Loss on debt extinguishment, modifications and termination of derivative instruments | (627) | — | (5,051) | (781) | |||||||||||||||||||||||||||||||
Other, net | (523) | (1,198) | (147) | 232 | |||||||||||||||||||||||||||||||
Income (loss) before income tax (expense) benefit | 5,082 | 13,193 | (14,370) | 71,017 | |||||||||||||||||||||||||||||||
Income tax (expense) benefit | |||||||||||||||||||||||||||||||||||
Current | (3,336) | (2,103) | (6,953) | (6,823) | |||||||||||||||||||||||||||||||
Deferred | 3,562 | 1,284 | (1,004) | 4,353 | |||||||||||||||||||||||||||||||
Total income tax benefit (expense) | 226 | (819) | (7,957) | (2,470) | |||||||||||||||||||||||||||||||
Net income (loss) | $ | 5,308 | $ | 12,374 | $ | (22,327) | $ | 68,547 | |||||||||||||||||||||||||||
Net income attributable to non controlling interests | 14 | — | 163 | — | |||||||||||||||||||||||||||||||
Net income (loss) attributable to Americold Realty Trust | $ | 5,294 | $ | 12,374 | $ | (22,490) | $ | 68,547 | |||||||||||||||||||||||||||
Weighted average common shares outstanding – basic | 261,865 | 204,289 | 256,129 | 202,380 | |||||||||||||||||||||||||||||||
Weighted average common shares outstanding – diluted | 262,550 | 208,500 | 256,129 | 206,051 | |||||||||||||||||||||||||||||||
Net income (loss) per common share of beneficial interest - basic | $ | 0.02 | $ | 0.06 | $ | (0.09) | $ | 0.33 | |||||||||||||||||||||||||||
Net income (loss) per common share of beneficial interest - diluted | $ | 0.02 | $ | 0.06 | $ | (0.09) | $ | 0.33 |
|
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Financial Supplement |
Third Quarter 2021
|
Reconciliation of Net Income (Loss) to NAREIT FFO, Core FFO, and AFFO | ||||||||||||||||||||||||||
(In thousands, except per share amounts - unaudited) | ||||||||||||||||||||||||||
Three Months Ended | YTD 2021 | |||||||||||||||||||||||||
Q3 21 | Q2 21 | Q1 21 | Q4 20 | Q3 20 | ||||||||||||||||||||||
Net income (loss) | $ | 5,308 | $ | (13,399) | $ | (14,236) | $ | (43,992) | $ | 12,374 | $ | (22,327) | ||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Real estate related depreciation | 48,217 | 44,871 | 52,280 | 39,128 | 36,289 | 145,368 | ||||||||||||||||||||
Net (gain) loss on sale of real estate, net of withholding taxes (b)
|
— | — | — | (676) | 427 | — | ||||||||||||||||||||
Net (gain) loss on asset disposals | (1) | (13) | (39) | 888 | 1,160 | (53) | ||||||||||||||||||||
Impairment charges on real estate assets | 224 | 1,528 | — | 2,449 | — | 1,752 | ||||||||||||||||||||
Our share of reconciling items related to partially owned entities | 463 | 861 | 266 | 182 | 111 | 1,590 | ||||||||||||||||||||
NAREIT Funds from operations | $ | 54,211 | $ | 33,848 | $ | 38,271 | $ | (2,021) | $ | 50,361 | 126,330 | |||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Net (gain) loss on sale of non-real estate assets | (171) | (304) | (119) | 1,112 | (100) | (594) | ||||||||||||||||||||
Non-core asset impairment | — | — | — | (495) | 2,615 | — | ||||||||||||||||||||
Acquisition, litigation and other | 6,338 | 3,922 | 20,751 | 26,535 | 5,282 | 31,011 | ||||||||||||||||||||
Share-based compensation expense, IPO grants | — | — | 163 | 200 | 196 | 163 | ||||||||||||||||||||
Bridge loan commitment fees | — | — | — | 2,438 | — | — | ||||||||||||||||||||
Loss on debt extinguishment, modifications and termination of derivative instruments | 627 | 925 | 3,499 | 9,194 | — | 5,051 | ||||||||||||||||||||
Foreign currency exchange loss (gain) | 349 | 140 | (173) | 44,905 | 196 | 316 | ||||||||||||||||||||
Our share of reconciling items related to partially owned entities | 122 | 89 | 154 | 39 | 76 | 365 | ||||||||||||||||||||
Core FFO applicable to common shareholders | $ | 61,476 | $ | 38,620 | $ | 62,546 | $ | 81,907 | $ | 58,626 | 162,642 | |||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Amortization of deferred financing costs and pension withdrawal liability | 1,088 | 1,085 | 1,148 | 1,202 | 1,203 | 3,321 | ||||||||||||||||||||
Non-real estate asset impairment | 1,560 | — | — | — | — | 1,560 | ||||||||||||||||||||
Amortization of below/above market leases | 1,017 | 362 | 39 | 37 | 39 | 1,418 | ||||||||||||||||||||
Straight-line net rent | 411 | (170) | (155) | (324) | (87) | 86 | ||||||||||||||||||||
Deferred income tax (benefit) expense | (3,562) | 6,568 | (2,002) | (9,379) | (1,284) | 1,004 | ||||||||||||||||||||
Share-based compensation expense, excluding IPO grants | 4,291 | 5,467 | 4,867 | 4,371 | 4,373 | 14,625 | ||||||||||||||||||||
Non-real estate depreciation and amortization | 22,352 | 39,588 | 24,931 | 19,191 | 17,280 | 86,871 | ||||||||||||||||||||
Maintenance capital expenditures (a)
|
(18,938) | (20,488) | (15,731) | (20,291) | (17,534) | (55,157) | ||||||||||||||||||||
Our share of reconciling items related to partially owned entities | (100) | 711 | 278 | 168 | 125 | 889 | ||||||||||||||||||||
Adjusted FFO applicable to common shareholders | $ | 69,595 | $ | 71,743 | $ | 75,921 | $ | 76,882 | $ | 62,741 | 217,259 |
|
||||||||
Financial Supplement |
Third Quarter 2021
|
Reconciliation of Net Income (Loss) to NAREIT FFO, Core FFO, and AFFO (continued) | ||||||||||||||||||||||||||
(In thousands except per share amounts - unaudited) | ||||||||||||||||||||||||||
Three Months Ended | YTD 2021 | |||||||||||||||||||||||||
Q3 21 | Q2 21 | Q1 21 | Q4 20 | Q3 20 | ||||||||||||||||||||||
NAREIT Funds from operations | $ | 54,211 | $ | 33,848 | $ | 38,271 | $ | (2,021) | $ | 50,361 | $ | 126,330 | ||||||||||||||
Core FFO applicable to common shareholders | $ | 61,476 | $ | 38,620 | $ | 62,546 | $ | 81,907 | $ | 58,626 | $ | 162,642 | ||||||||||||||
Adjusted FFO applicable to common shareholders | $ | 69,595 | $ | 71,743 | $ | 75,921 | $ | 76,882 | $ | 62,741 | $ | 217,259 | ||||||||||||||
Reconciliation of weighted average shares: | ||||||||||||||||||||||||||
Weighted average basic shares for net income calculation | 261,865 | 253,213 | 252,938 | 205,984 | 204,289 | $ | 256,129 | |||||||||||||||||||
Dilutive stock options, unvested restricted stock units, equity forward contracts | 685 | 3,544 | 3,226 | 3,944 | 4,211 | 2,494 | ||||||||||||||||||||
Weighted average dilutive shares | 262,550 | 256,757 | 256,164 | 209,928 | 208,500 | $ | 258,623 | |||||||||||||||||||
NAREIT FFO - basic per share | $ | 0.21 | $ | 0.13 | $ | 0.15 | $ | (0.01) | $ | 0.25 | $ | 0.49 | ||||||||||||||
NAREIT FFO - diluted per share | $ | 0.21 | $ | 0.13 | $ | 0.15 | $ | (0.01) | $ | 0.24 | $ | 0.49 | ||||||||||||||
Core FFO - basic per share | $ | 0.23 | $ | 0.15 | $ | 0.25 | $ | 0.40 | $ | 0.29 | $ | 0.64 | ||||||||||||||
Core FFO - diluted per share | $ | 0.23 | $ | 0.15 | $ | 0.24 | $ | 0.39 | $ | 0.28 | $ | 0.63 | ||||||||||||||
Adjusted FFO - basic per share | $ | 0.27 | $ | 0.28 | $ | 0.30 | $ | 0.37 | $ | 0.31 | $ | 0.85 | ||||||||||||||
Adjusted FFO - diluted per share | $ | 0.27 | $ | 0.28 | $ | 0.30 | $ | 0.37 | $ | 0.30 | $ | 0.85 | ||||||||||||||
(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 Condensed Consolidated Statement of Operations. |
|
||||||||
Financial Supplement |
Third Quarter 2021
|
Reconciliation of Net Income (Loss) to EBITDA, NAREIT EBITDAre, and Core EBITDA | ||||||||||||||||||||||||||
(In thousands - unaudited) | ||||||||||||||||||||||||||
Three Months Ended | Trailing Twelve Months Ended | |||||||||||||||||||||||||
Q3 21 | Q2 21 | Q1 21 | Q4 20 | Q3 20 | Q3 2021 | |||||||||||||||||||||
Net income (loss) | $ | 5,308 | $ | (13,399) | $ | (14,236) | $ | (43,992) | $ | 12,374 | $ | (66,319) | ||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Depreciation and amortization | 70,569 | 84,459 | 77,211 | 58,319 | 53,569 | 290,558 | ||||||||||||||||||||
Interest expense | 25,303 | 26,579 | 25,956 | 21,367 | 23,066 | 99,205 | ||||||||||||||||||||
Income tax (benefit) expense | (226) | 8,974 | (791) | (9,397) | 819 | (1,440) | ||||||||||||||||||||
EBITDA | $ | 100,954 | $ | 106,613 | $ | 88,140 | $ | 26,297 | $ | 89,828 | $ | 411,832 | ||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Net (gain) loss on sale of real estate, net of withholding taxes | — | — | — | (676) | 427 | (676) | ||||||||||||||||||||
Adjustment to reflect share of EBITDAre of partially owned entities | 1,854 | 1,838 | 649 | 432 | 293 | 4,773 | ||||||||||||||||||||
NAREIT EBITDAre | $ | 102,808 | $ | 108,451 | $ | 88,789 | $ | 26,053 | $ | 90,548 | $ | 416,649 | ||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Acquisition, litigation and other | 6,338 | 3,922 | 20,751 | 26,535 | 5,282 | 57,546 | ||||||||||||||||||||
Bridge loan commitment fees | — | — | — | 2,438 | — | 2,438 | ||||||||||||||||||||
Loss (income) from investments in partially owned entities | 490 | 61 | 700 | (4) | 98 | 1,247 | ||||||||||||||||||||
Asset impairment | 1,784 | 1,528 | — | 1,954 | 2,615 | 5,266 | ||||||||||||||||||||
Foreign currency exchange loss (gain) | 349 | 140 | (173) | 44,905 | 196 | 45,221 | ||||||||||||||||||||
Share-based compensation expense | 4,291 | 5,467 | 5,030 | 4,571 | 4,569 | 19,359 | ||||||||||||||||||||
Loss on debt extinguishment, modifications and termination of derivative instruments | 627 | 925 | 3,499 | 9,194 | — | 14,245 | ||||||||||||||||||||
(Gain) loss on real estate and other asset disposals | (172) | (317) | (158) | 1,999 | 1,060 | 1,352 | ||||||||||||||||||||
Reduction in EBITDAre from partially owned entities | (1,854) | (1,838) | (649) | (432) | (293) | (4,773) | ||||||||||||||||||||
Core EBITDA | $ | 114,661 | $ | 118,339 | $ | 117,789 | $ | 117,213 | $ | 104,075 | $ | 468,002 |
|
||||||||
Financial Supplement |
Third Quarter 2021
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
Acquisition, litigation and other | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||
Acquisition and integration related costs | $ | 6,301 | $ | 4,861 | $ | 22,851 | $ | 8,278 | |||||||||||||||||||||||||||
Litigation | 825 | 258 | 942 | 258 | |||||||||||||||||||||||||||||||
Severance costs | 149 | (50) | 2,850 | 1,022 | |||||||||||||||||||||||||||||||
Terminated site operations costs | 6 | (520) | 78 | (520) | |||||||||||||||||||||||||||||||
Cyber incident related costs, net of insurance recoveries | (943) | — | 3,539 | — | |||||||||||||||||||||||||||||||
Other | — | 733 | 751 | 733 | |||||||||||||||||||||||||||||||
Total acquisition, litigation and other | $ | 6,338 | $ | 5,282 | $ | 31,011 | $ | 9,771 |
|
||||||||
Financial Supplement |
Third Quarter 2021
|
Debt Detail and Maturities
|
|||||||||||||||||||||||
(In thousands - unaudited)
|
|||||||||||||||||||||||
As of September 30, 2021
|
|||||||||||||||||||||||
Indebtedness:
|
Carrying Value |
Contractual Interest Rate(3)
|
Effective Interest Rate(4)
|
Stated
Maturity Date(5)
|
|||||||||||||||||||
Unsecured Debt
|
|||||||||||||||||||||||
2020 Senior Unsecured Revolving Credit Facility-1(1)(2)(7)(10)
|
$ | 43,368 |
C+0.85%
|
1.91% | 3/2025 | ||||||||||||||||||
2020 Senior Unsecured Revolving Credit Facility-2(1)(2)(9)(11)
|
92,296 |
S+0.85%
|
1.53% | 3/2025 | |||||||||||||||||||
2020 Senior Unsecured Revolving Credit Facility-3(1)(2)
|
170,000 |
L+0.85%
|
1.56% | 3/2025 | |||||||||||||||||||
2020 Senior Unsecured Term Loan A Facility Tranche A-1(2)(6)
|
125,000 |
L+0.95%
|
1.41% | 3/2025 | |||||||||||||||||||
2020 Senior Unsecured Term Loan A Facility Tranche A-2(2)(7)
|
197,124 |
C+0.95%
|
1.51% | 3/2025 | |||||||||||||||||||
Series A notes
|
200,000 | 4.68% | 4.77% | 1/2026 | |||||||||||||||||||
Series B notes
|
400,000 | 4.86% | 4.92% | 1/2029 | |||||||||||||||||||
Series C notes
|
350,000 | 4.10% | 4.15% | 1/2030 | |||||||||||||||||||
Series D notes(8)
|
463,200 | 1.62% | 1.67% | 1/2031 | |||||||||||||||||||
Series E notes(8)
|
405,300 | 1.65% | 1.70% | 1/2033 | |||||||||||||||||||
Total Unsecured Debt
|
2,446,288 | 2.63% | 2.78% |
7.2 years
|
|||||||||||||||||||
2013 Mortgage Loans (15 cross-collateralized warehouses)
|
|||||||||||||||||||||||
Senior Note
|
169,415 | 3.81% | 4.14% | 5/2023 | |||||||||||||||||||
Mezzanine A
|
70,000 | 7.38% | 7.55% | 5/2023 | |||||||||||||||||||
Mezzanine B
|
32,000 | 11.50% | 11.75% | 5/2023 | |||||||||||||||||||
Total 2013 Mortgage Loans
|
271,415 | 5.64% | 5.92% |
1.6 years
|
|||||||||||||||||||
Total Real Estate Debt | $ | 2,717,703 |
2.93%
|
3.09% |
6.7 years
|
||||||||||||||||||
Sale-leaseback financing obligations
|
182,979 | 10.97% | |||||||||||||||||||||
Financing lease obligations
|
98,135 | 3.75% | |||||||||||||||||||||
Total Debt Outstanding
|
$ | 2,998,817 | 3.45% | ||||||||||||||||||||
Less: unamortized deferred financing costs
|
(11,446) | ||||||||||||||||||||||
Total Book Value of Debt
|
$ | 2,987,371 | |||||||||||||||||||||
Rate Type
|
% of Total | ||||||||||||||||||||||
Fixed
|
$ | 2,371,029 | 79% | ||||||||||||||||||||
Variable
|
627,788 | 21% | |||||||||||||||||||||
Total Debt Outstanding
|
$ | 2,998,817 | 100% | ||||||||||||||||||||
Debt Type
|
% of Total | ||||||||||||||||||||||
Unsecured
|
$ | 2,446,288 | 82% | ||||||||||||||||||||
Secured
|
552,529 | 18% | |||||||||||||||||||||
Total Debt Outstanding
|
$ | 2,998,817 | 100% |
|
||||||||
Financial Supplement |
Third Quarter 2021
|
Revenue and Contribution by Segment | |||||||||||||||||||||||
(in thousands - unaudited) | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Segment revenues: | |||||||||||||||||||||||
Warehouse | $ | 542,047 | $ | 388,024 | $ | 1,531,232 | $ | 1,141,503 | |||||||||||||||
Third-party managed | 87,782 | 75,338 | 233,027 | 213,213 | |||||||||||||||||||
Transportation | 78,979 | 34,096 | 234,051 | 104,874 | |||||||||||||||||||
Other | — | — | — | 4,459 | |||||||||||||||||||
Total revenues | 708,808 | 497,458 | 1,998,310 | 1,464,049 | |||||||||||||||||||
Segment contribution: | |||||||||||||||||||||||
Warehouse | 144,992 | 127,756 | 435,552 | 374,661 | |||||||||||||||||||
Third-party managed | 4,551 | 3,393 | 10,626 | 10,461 | |||||||||||||||||||
Transportation | 6,251 | 4,187 | 22,204 | 13,764 | |||||||||||||||||||
Other | (23) | (17) | (82) | 173 | |||||||||||||||||||
Total segment contribution | 155,771 | 135,319 | 468,300 | 399,059 | |||||||||||||||||||
Reconciling items: | |||||||||||||||||||||||
Depreciation and amortization | (70,569) | (53,569) | (232,239) | (157,572) | |||||||||||||||||||
Selling, general and administrative | (45,545) | (35,969) | (133,072) | (105,202) | |||||||||||||||||||
Acquisition, litigation and other | (6,338) | (5,282) | (31,011) | (9,771) | |||||||||||||||||||
Impairment of long-lived assets | (1,784) | (2,615) | (3,312) | (6,282) | |||||||||||||||||||
Gain (loss) from sale of real estate | — | (427) | — | 21,448 | |||||||||||||||||||
Interest expense | (25,303) | (23,066) | (77,838) | (70,114) | |||||||||||||||||||
Loss on debt extinguishment, modifications and termination of derivative instruments | (627) | — | (5,051) | (781) | |||||||||||||||||||
Other, net | (523) | (1,198) | (147) | 232 | |||||||||||||||||||
Income (loss) before income tax (expense) benefit | $ | 5,082 | $ | 13,193 | $ | (14,370) | $ | 71,017 |
|
||||||||
Financial Supplement |
Third Quarter 2021
|
FY | Q1 | Q2 | Q3 | Q4 |
|
||||||||
Financial Supplement |
Third Quarter 2021
|
Country / Region |
# of
warehouses
|
Cubic feet
(in millions)
|
% of
total cubic feet |
Pallet
positions (in thousands) |
Average economic occupancy (1)
|
Average
physical
occupancy (1)
|
Revenues (2)
(in millions)
|
Segment
contribution
(NOI) (2)(3)
(in millions)
|
Total
customers (4)
|
|||||||||||||||||||||||||||||||||||||||||||||||
Warehouse Segment Portfolio (5)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
East | 38 | 293.4 | 21 | % | 938 | 81 | % | 73 | % | $ | 315.5 | $ | 79.2 | 1,022 | ||||||||||||||||||||||||||||||||||||||||||
Southeast | 60 | 340.2 | 24 | % | 1,083 | 74 | % | 67 | % | 325.1 | 82.8 | 880 | ||||||||||||||||||||||||||||||||||||||||||||
Central | 51 | 305.8 | 22 | % | 1,299 | 75 | % | 68 | % | 325.7 | 108.8 | 938 | ||||||||||||||||||||||||||||||||||||||||||||
West | 38 | 234.5 | 17 | % | 986 | 66 | % | 59 | % | 207.5 | 65.7 | 627 | ||||||||||||||||||||||||||||||||||||||||||||
Canada | 7 | 34.9 | 2 | % | 115 | 82 | % | 82 | % | 30.3 | 11.6 | 104 | ||||||||||||||||||||||||||||||||||||||||||||
North America Total / Average | 194 | 1,208.8 | 85 | % | 4,421 | 74 | % | 67 | % | $ | 1,204.1 | $ | 348.1 | 2,624 | ||||||||||||||||||||||||||||||||||||||||||
Netherlands | 7 | 36.7 | 3 | % | 123 | 77 | % | 77 | % | 52.1 | 10.7 | 463 | ||||||||||||||||||||||||||||||||||||||||||||
United Kingdom & Northern Ireland | 6 | 40.1 | 3 | % | 242 | 87 | % | 87 | % | 29.9 | 9.9 | 125 | ||||||||||||||||||||||||||||||||||||||||||||
Spain | 4 | 15.2 | 1 | % | 53 | 61 | % | 61 | % | 14.0 | 2.7 | 319 | ||||||||||||||||||||||||||||||||||||||||||||
Portugal | 4 | 11.5 | 1 | % | 53 | 85 | % | 85 | % | 12.9 | 4.0 | 220 | ||||||||||||||||||||||||||||||||||||||||||||
Ireland | 3 | 9.5 | 1 | % | 35 | 100 | % | 100 | % | 10.3 | 4.0 | 126 | ||||||||||||||||||||||||||||||||||||||||||||
Austria | 1 | 4.2 | — | % | 42 | 88 | % | 88 | % | 16.4 | 4.5 | 153 | ||||||||||||||||||||||||||||||||||||||||||||
Poland | 2 | 3.5 | — | % | 14 | 79 | % | 79 | % | 3.4 | 0.2 | 81 | ||||||||||||||||||||||||||||||||||||||||||||
Europe Total | 27 | 120.7 | 9 | % | 562 | 83 | % | 83 | % | $ | 139.0 | $ | 36.0 | 1,348 | ||||||||||||||||||||||||||||||||||||||||||
Australia | 8 | 50.5 | 4 | % | 157 | 93 | % | 78 | % | 149.7 | 37.4 | 89 | ||||||||||||||||||||||||||||||||||||||||||||
New Zealand | 7 | 20.4 | 1 | % | 65 | 90 | % | 82 | % | 25.1 | 9.7 | 60 | ||||||||||||||||||||||||||||||||||||||||||||
Asia-Pacific Total | 15 | 70.9 | 5 | % | 222 | 92 | % | 79 | % | $ | 174.8 | $ | 47.1 | 144 | ||||||||||||||||||||||||||||||||||||||||||
Argentina | 2 | 9.7 | 1 | % | 23 | 67 | % | 67 | % | 5.7 | 1.2 | 47 | ||||||||||||||||||||||||||||||||||||||||||||
Chile | 1 | 7.6 | 1 | % | 23 | 104 | % | 104 | % | 7.6 | 3.2 | 26 | ||||||||||||||||||||||||||||||||||||||||||||
South America Total | 3 | 17.3 | 1 | % | 46 | 86 | % | 86 | % | $ | 13.3 | $ | 4.4 | 73 | ||||||||||||||||||||||||||||||||||||||||||
Warehouse Segment Total / Average | 239 | 1,417.7 | 100 | % | 5,250 | 86 | % | 82 | % | $ | 1,531.2 | $ | 435.6 | 4,305 | ||||||||||||||||||||||||||||||||||||||||||
Third-Party Managed Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | 7 | 38.5 | 88 | % | — | — | — | $ | 215.3 | $ | 7.3 | 4 | ||||||||||||||||||||||||||||||||||||||||||||
Canada | 1 | 5.3 | 12 | % | — | — | — | 1.9 | 0.4 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||
North America Total / Average | 8 | 43.8 | 100 | % | — | — | — | $ | 217.2 | $ | 7.7 | 5 | ||||||||||||||||||||||||||||||||||||||||||||
Asia-Pacific | 1 | — | — | % | — | — | — | 15.8 | 2.9 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||
Third-Party Managed Total / Average | 9 | 43.8 | 100 | % | — | — | — | $ | 233.0 | $ | 10.6 | 6 | ||||||||||||||||||||||||||||||||||||||||||||
Portfolio Total / Average | 248 | 1,461.5 | 100 | % | 5,250 | 76 | % | 70 | % | $ | 1,764.2 | $ | 446.2 | 4,305 |
|
||||||||
Financial Supplement |
Third Quarter 2021
|
|
||||||||
Financial Supplement |
Third Quarter 2021
|
Contract Expiration Year |
Number
of Contracts |
Annualized
Committed Rent & Storage Revenue (in thousands) |
% of Total
Warehouse
Rent & Storage
Segment
Revenue for the
Twelve Months
Ended
September 30, 2021
|
Total Warehouse Segment Revenue Generated by Contracts with Fixed Commitments & Leases for the Twelve Months Ended September 30, 2021(1) (in thousands)
|
Annualized
Committed Rent & Storage Revenue at Expiration(2) (in thousands) |
|||||||||||||||||||||||||||
Month-to-Month | 39 | $ | 27,457 | 3.1 | % | $ | 128,005 | $ | 27,457 | |||||||||||||||||||||||
2021 | 26 | 15,884 | 1.8 | % | 90,751 | 15,900 | ||||||||||||||||||||||||||
2022 | 79 | 93,577 | 10.6 | % | 198,772 | 94,047 | ||||||||||||||||||||||||||
2023 | 49 | 75,051 | 8.5 | % | 151,078 | 77,919 | ||||||||||||||||||||||||||
2024 | 39 | 44,328 | 5.0 | % | 107,931 | 48,094 | ||||||||||||||||||||||||||
2025 | 13 | 21,218 | 2.4 | % | 42,018 | 23,113 | ||||||||||||||||||||||||||
2026 | 14 | 37,163 | 4.2 | % | 53,873 | 39,694 | ||||||||||||||||||||||||||
2027 | 5 | 6,112 | 0.7 | % | 10,672 | 6,584 | ||||||||||||||||||||||||||
2028 | 2 | 1,129 | 0.1 | % | 4,576 | 1,133 | ||||||||||||||||||||||||||
2029 and thereafter | 9 | 23,862 | 2.7 | % | 100,787 | 28,241 | ||||||||||||||||||||||||||
Total | 275 | $ | 345,781 | 39.1 | % | $ | 888,463 | $ | 362,182 |
|
||||||||
Financial Supplement |
Third Quarter 2021
|
Lease Expiration Year |
No. of
Leases Expiring |
Annualized
Rent(1)
(in thousands)
|
% of Total
Warehouse Rent &
Storage Segment
Revenue for the
Twelve Months Ended
September 30, 2021
|
Leased
Square Footage (in thousands) |
% Leased
Square Footage |
Annualized
Rent at
Expiration(2)
(in thousands)
|
||||||||||||||||||||||||||||||||
Month-to-Month | 3 | $ | 771 | 0.1 | % | 22 | 0.7 | % | $ | 771 | ||||||||||||||||||||||||||||
2021 | 12 | 1,496 | 0.2 | % | 175 | 5.9 | % | 1,496 | ||||||||||||||||||||||||||||||
2022 | 25 | 8,970 | 1.0 | % | 472 | 15.8 | % | 9,177 | ||||||||||||||||||||||||||||||
2023 | 9 | 5,118 | 0.6 | % | 707 | 23.7 | % | 5,433 | ||||||||||||||||||||||||||||||
2024 | 9 | 3,699 | 0.4 | % | 710 | 23.8 | % | 3,893 | ||||||||||||||||||||||||||||||
2025 | 7 | 4,343 | 0.5 | % | 299 | 10.0 | % | 4,701 | ||||||||||||||||||||||||||||||
2026 and thereafter | 11 | 8,147 | 1.0 | % | 599 | 20.1 | % | 10,325 | ||||||||||||||||||||||||||||||
Total | 76 | $ | 32,544 | 3.8 | % | 2,984 | 100 | % | $ | 35,796 |
|
||||||||
Financial Supplement |
Third Quarter 2021
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(In thousands, except per cubic foot amounts) | |||||||||||||||||||||||
Real estate | $ | 14,497 | $ | 15,896 | $ | 45,398 | $ | 39,425 | |||||||||||||||
Personal property | 1,231 | 906 | 4,441 | 3,967 | |||||||||||||||||||
Information technology | 3,210 | 732 | 5,318 | 1,864 | |||||||||||||||||||
Maintenance capital expenditures (1) | $ | 18,938 | $ | 17,534 | $ | 55,157 | $ | 45,256 | |||||||||||||||
Maintenance capital expenditures per cubic foot | $ | 0.013 | $ | 0.016 | $ | 0.038 | $ | 0.041 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(In thousands, except per cubic foot amounts) | |||||||||||||||||||||||
Real estate | $ | 6,435 | $ | 7,333 | $ | 20,760 | $ | 21,278 | |||||||||||||||
Personal property | 15,655 | 7,368 | 40,731 | 22,766 | |||||||||||||||||||
Repair and maintenance expenses | $ | 22,090 | $ | 14,701 | $ | 61,491 | $ | 44,044 | |||||||||||||||
Repair and maintenance expenses per cubic foot | $ | 0.015 | $ | 0.013 | $ | 0.042 | $ | 0.040 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Acquisitions, net of cash acquired and adjustments | $ | 400,987 | $ | 108,040 | $ | 616,316 | $ | 423,708 | |||||||||||||||
Expansion and development initiatives(1)
|
75,960 | 59,806 | 243,072 | 174,585 | |||||||||||||||||||
Information technology | 1,682 | 2,189 | 5,255 | 5,169 | |||||||||||||||||||
Growth and expansion capital expenditures | $ | 478,629 | $ | 170,035 | $ | 864,643 | $ | 603,462 |
|
||||||||
Financial Supplement |
Third Quarter 2021
|
Three Months Ended September 30, | Change | ||||||||||||||||||||||||||||
2021 actual |
2021 constant currency(1)
|
2020 actual | Actual | Constant currency | |||||||||||||||||||||||||
(Dollars in thousands - unaudited) | |||||||||||||||||||||||||||||
Rent and storage | $ | 225,234 | $ | 224,210 | $ | 166,355 | 35.4 | % | 34.8 | % | |||||||||||||||||||
Warehouse services | 316,813 | 315,105 | 221,669 | 42.9 | % | 42.2 | % | ||||||||||||||||||||||
Total warehouse segment revenue | $ | 542,047 | $ | 539,315 | $ | 388,024 | 39.7 | % | 39.0 | % | |||||||||||||||||||
Power | 38,931 | 38,774 | 27,145 | 43.4 | % | 42.8 | % | ||||||||||||||||||||||
Other facilities costs (2)
|
53,050 | 52,533 | 35,752 | 48.4 | % | 46.9 | % | ||||||||||||||||||||||
Labor | 245,515 | 244,106 | 166,491 | 47.5 | % | 46.6 | % | ||||||||||||||||||||||
Other services costs (3)
|
59,559 | 59,447 | 30,880 | 92.9 | % | 92.5 | % | ||||||||||||||||||||||
Total warehouse segment cost of operations | $ | 397,055 | $ | 394,860 | $ | 260,268 | 52.6 | % | 51.7 | % | |||||||||||||||||||
Warehouse segment contribution (NOI) | $ | 144,992 | $ | 144,455 | $ | 127,756 | 13.5 | % | 13.1 | % | |||||||||||||||||||
Warehouse rent and storage contribution (NOI) (4)
|
$ | 133,253 | $ | 132,903 | $ | 103,458 | 28.8 | % | 28.5 | % | |||||||||||||||||||
Warehouse services contribution (NOI) (5)
|
$ | 11,739 | $ | 11,552 | $ | 24,298 | (51.7) | % | (52.5) | % | |||||||||||||||||||
Total warehouse segment margin | 26.7 | % | 26.8 | % | 32.9 | % | -618 bps | -614 bps | |||||||||||||||||||||
Rent and storage margin(6)
|
59.2 | % | 59.3 | % | 62.2 | % | -303 bps | -291 bps | |||||||||||||||||||||
Warehouse services margin(7)
|
3.7 | % | 3.7 | % | 11.0 | % | -726 bps | -730 bps |
|
||||||||
Financial Supplement |
Third Quarter 2021
|
Nine Months Ended September 30, | Change | ||||||||||||||||||||||||||||
2021 actual |
2021 constant currency(1)
|
2020 actual | Actual | Constant currency | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Rent and storage | $ | 642,787 | $ | 633,774 | $ | 492,328 | 30.6 | % | 28.7 | % | |||||||||||||||||||
Warehouse services | 888,445 | 869,710 | 649,175 | 36.9 | % | 34.0 | % | ||||||||||||||||||||||
Total warehouse segment revenues | 1,531,232 | 1,503,484 | 1,141,503 | 34.1 | % | 31.7 | % | ||||||||||||||||||||||
Power | 97,315 | 96,098 | 68,918 | 41.2 | % | 39.4 | % | ||||||||||||||||||||||
Other facilities costs (2)
|
155,143 | 152,699 | 102,499 | 51.4 | % | 49.0 | % | ||||||||||||||||||||||
Labor | 684,475 | 669,918 | 502,087 | 36.3 | % | 33.4 | % | ||||||||||||||||||||||
Other services costs (3)
|
158,747 | 156,781 | 93,338 | 70.1 | % | 68.0 | % | ||||||||||||||||||||||
Total warehouse segment cost of operations | $ | 1,095,680 | $ | 1,075,496 | $ | 766,842 | 42.9 | % | 40.3 | % | |||||||||||||||||||
Warehouse segment contribution (NOI) | $ | 435,552 | $ | 427,988 | $ | 374,661 | 16.3 | % | 14.2 | % | |||||||||||||||||||
Warehouse rent and storage contribution (NOI) (4)
|
$ | 390,329 | $ | 384,977 | $ | 320,911 | 21.6 | % | 20.0 | % | |||||||||||||||||||
Warehouse services contribution (NOI) (5)
|
$ | 45,223 | $ | 43,011 | $ | 53,750 | (15.9) | % | (20.0) | % | |||||||||||||||||||
Total warehouse segment margin | 28.4 | % | 28.5 | % | 32.8 | % | -438 bps | -436 bps | |||||||||||||||||||||
Rent and storage margin(6)
|
60.7 | % | 60.7 | % | 65.2 | % | -446 bps | -444 bps | |||||||||||||||||||||
Warehouse services margin(7)
|
5.1 | % | 4.9 | % | 8.3 | % | -319 bps | -333 bps |
|
||||||||
Financial Supplement |
Third Quarter 2021
|
Three Months Ended September 30, | Change | ||||||||||||||||||||||||||||
2021 actual
|
2021 constant currency(1)
|
2020 actual
|
Actual | Constant currency | |||||||||||||||||||||||||
Number of same store warehouses | 162 | 162 | n/a | n/a | |||||||||||||||||||||||||
Same store revenues: | (Dollars in thousands - unaudited) | ||||||||||||||||||||||||||||
Rent and storage | $ | 157,233 | $ | 157,108 | $ | 154,926 | 1.5 | % | 1.4 | % | |||||||||||||||||||
Warehouse services | 216,351 | 215,316 | 210,309 | 2.9 | % | 2.4 | % | ||||||||||||||||||||||
Total same store revenues | $ | 373,584 | $ | 372,424 | $ | 365,235 | 2.3 | % | 2.0 | % | |||||||||||||||||||
Same store cost of operations: | |||||||||||||||||||||||||||||
Power | 25,676 | 25,721 | 25,497 | 0.7 | % | 0.9 | % | ||||||||||||||||||||||
Other facilities costs | 31,743 | 31,700 | 32,859 | (3.4) | % | (3.5) | % | ||||||||||||||||||||||
Labor | 168,426 | 167,673 | 155,114 | 8.6 | % | 8.1 | % | ||||||||||||||||||||||
Other services costs | 30,530 | 30,531 | 28,237 | 8.1 | % | 8.1 | % | ||||||||||||||||||||||
Total same store cost of operations | $ | 256,375 | $ | 255,625 | $ | 241,707 | 6.1 | % | 5.8 | % | |||||||||||||||||||
Same store contribution (NOI) | $ | 117,209 | $ | 116,799 | $ | 123,528 | (5.1) | % | (5.4) | % | |||||||||||||||||||
Same store rent and storage contribution (NOI)(2)
|
$ | 99,814 | $ | 99,687 | $ | 96,570 | 3.4 | % | 3.2 | % | |||||||||||||||||||
Same store services contribution (NOI)(3)
|
$ | 17,395 | $ | 17,112 | $ | 26,958 | (35.5) | % | (36.5) | % | |||||||||||||||||||
Total same store margin | 31.4 | % | 31.4 | % | 33.8 | % | -245 bps | -246 bps | |||||||||||||||||||||
Same store rent and storage margin(4)
|
63.5 | % | 63.5 | % | 62.3 | % | 115 bps | 112 bps | |||||||||||||||||||||
Same store services margin(5)
|
8.0 | % | 7.9 | % | 12.8 | % | -478 bps | -487 bps | |||||||||||||||||||||
Number of non-same store warehouses(6)
|
77 | 13 | n/a | n/a | |||||||||||||||||||||||||
Non-same store revenues: | |||||||||||||||||||||||||||||
Rent and storage | $ | 68,001 | $ | 67,102 | $ | 11,429 | 495.0 | % | 487.1 | % | |||||||||||||||||||
Warehouse services | 100,462 | 99,789 | 11,360 | 784.3 | % | 778.4 | % | ||||||||||||||||||||||
Total non-same store revenues | $ | 168,463 | $ | 166,891 | $ | 22,789 | 639.2 | % | 632.3 | % | |||||||||||||||||||
Non-same store cost of operations: | |||||||||||||||||||||||||||||
Power | 13,255 | 13,053 | 1,648 | 704.3 | % | 692.1 | % | ||||||||||||||||||||||
Other facilities costs | 21,307 | 20,833 | 2,893 | 636.5 | % | 620.1 | % | ||||||||||||||||||||||
Labor | 77,089 | 76,433 | 11,377 | 577.6 | % | 571.8 | % | ||||||||||||||||||||||
Other services costs | 29,029 | 28,916 | 2,643 | 998.3 | % | 994.1 | % | ||||||||||||||||||||||
Total non-same store cost of operations | $ | 140,680 | $ | 139,235 | $ | 18,561 | 657.9 | % | 650.1 | % | |||||||||||||||||||
Non-same store contribution (NOI) | $ | 27,783 | $ | 27,656 | $ | 4,228 | 557.1 | % | 554.1 | % | |||||||||||||||||||
Non-same store rent and storage contribution (NOI)(2)
|
$ | 33,439 | $ | 33,216 | $ | 6,888 | 385.5 | % | 382.2 | % | |||||||||||||||||||
Non-same store services contribution (NOI)(3)
|
$ | (5,656) | $ | (5,560) | $ | (2,660) | (112.6) | % | (109.0) | % | |||||||||||||||||||
Total warehouse segment revenues | $ | 542,047 | $ | 539,315 | $ | 388,024 | 39.7 | % | 39.0 | % | |||||||||||||||||||
Total warehouse cost of operations | $ | 397,055 | $ | 394,860 | $ | 260,268 | 52.6 | % | 51.7 | % | |||||||||||||||||||
Total warehouse segment contribution | $ | 144,992 | $ | 144,455 | $ | 127,756 | 13.5 | % | 13.1 | % |
(1) | The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis is the effect of changes in foreign currency exchange rates relative to the comparable prior period. | ||||
(2) | Calculated as rent and storage revenues less power and other facilities costs. | ||||
(3) | Calculated as warehouse services revenues less labor and other services costs. | ||||
(4) | Calculated as same store rent and storage contribution (NOI) divided by same store rent and storage revenues. | ||||
(5) | Calculated as same store warehouse services contribution (NOI) divided by same store warehouse services revenues. | ||||
(6) |
Non-same store warehouse count of 77 includes one recently leased warehouse in Australia, one warehouse acquired through the Newark Facility Management acquisition on September 1, 2021, two facilities acquired through the ColdCo acquisition on August 2, 2021, one warehouse acquired through the Bowman stores acquisition on May 28, 2021, two warehouses acquired through the KMT Brrr! acquisition on May 5, 2021, four warehouses acquired through the Liberty Freezers acquisition on March 1, 2021, 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 ten legacy facilities. During the third quarter of 2021, a leased facility from the Liberty Freezers acquisition was exited upon expiration of the lease. The results of these acquisitions are reflected in the results above since date of ownership.
|
|
||||||||
Financial Supplement |
Third Quarter 2021
|
Nine Months Ended September 30, | Change | ||||||||||||||||||||||||||||
2021 actual |
2021 constant currency(1)
|
2020 actual | Actual | Constant currency | |||||||||||||||||||||||||
Number of same store warehouses | 162 | 162 | n/a | n/a | |||||||||||||||||||||||||
Same store revenues: | (Dollars in thousands) | ||||||||||||||||||||||||||||
Rent and storage | $ | 457,384 | $ | 453,945 | $ | 460,623 | (0.7) | % | (1.4) | % | |||||||||||||||||||
Warehouse services | 631,694 | 619,336 | 619,002 | 2.1 | % | 0.1 | % | ||||||||||||||||||||||
Total same store revenues | 1,089,078 | 1,073,281 | 1,079,625 | 0.9 | % | (0.6) | % | ||||||||||||||||||||||
Same store cost of operations: | |||||||||||||||||||||||||||||
Power | 65,287 | 65,068 | 64,742 | 0.8 | % | 0.5 | % | ||||||||||||||||||||||
Other facilities costs | 97,735 | 96,917 | 94,818 | 3.1 | % | 2.2 | % | ||||||||||||||||||||||
Labor | 488,382 | 478,435 | 468,955 | 4.1 | % | 2.0 | % | ||||||||||||||||||||||
Other services costs | 85,747 | 85,374 | 85,435 | 0.4 | % | (0.1) | % | ||||||||||||||||||||||
Total same store cost of operations | $ | 737,151 | $ | 725,794 | $ | 713,950 | 3.2 | % | 1.7 | % | |||||||||||||||||||
Same store contribution (NOI) | $ | 351,927 | $ | 347,487 | $ | 365,675 | (3.8) | % | (5.0) | % | |||||||||||||||||||
Same store rent and storage contribution (NOI)(2)
|
$ | 294,362 | $ | 291,960 | $ | 301,063 | (2.2) | % | (3.0) | % | |||||||||||||||||||
Same store services contribution (NOI)(3)
|
$ | 57,565 | $ | 55,527 | $ | 64,612 | (10.9) | % | (14.1) | % | |||||||||||||||||||
Total same store margin | 32.3 | % | 32.4 | % | 33.9 | % | -156 bps | -149 bps | |||||||||||||||||||||
Same store rent and storage margin(4)
|
64.4 | % | 64.3 | % | 65.4 | % | -100 bps | -104 bps | |||||||||||||||||||||
Same store services margin(5)
|
9.1 | % | 9.0 | % | 10.4 | % | -133 bps | -147 bps | |||||||||||||||||||||
Number of non-same store warehouses(6)
|
77 | 13 | n/a | n/a | |||||||||||||||||||||||||
Non-same store revenues: | |||||||||||||||||||||||||||||
Rent and storage | $ | 185,403 | $ | 179,829 | $ | 31,705 | 484.8 | % | 467.2 | % | |||||||||||||||||||
Warehouse services | 256,751 | 250,373 | 30,173 | 750.9 | % | 729.8 | % | ||||||||||||||||||||||
Total non-same store revenues | 442,154 | 430,202 | 61,878 | 614.6 | % | 595.2 | % | ||||||||||||||||||||||
Non-same store cost of operations: | |||||||||||||||||||||||||||||
Power | 32,028 | 31,030 | 4,176 | 667.0 | % | 643.1 | % | ||||||||||||||||||||||
Other facilities costs | 57,408 | 55,782 | 7,681 | 647.4 | % | 626.2 | % | ||||||||||||||||||||||
Labor | 196,092 | 191,483 | 33,132 | 491.9 | % | 477.9 | % | ||||||||||||||||||||||
Other services costs | 73,000 | 71,407 | 7,904 | 823.6 | % | 803.4 | % | ||||||||||||||||||||||
Total non-same store cost of operations | $ | 358,528 | $ | 349,702 | $ | 52,893 | 577.8 | % | 561.1 | % | |||||||||||||||||||
Non-same store contribution (NOI) | $ | 83,626 | $ | 80,500 | $ | 8,985 | 830.7 | % | 795.9 | % | |||||||||||||||||||
Non-same store rent and storage contribution (NOI)(2)
|
$ | 95,967 | $ | 93,017 | $ | 19,848 | 383.5 | % | 368.6 | % | |||||||||||||||||||
Non-same store services contribution (NOI)(3)
|
$ | (12,341) | $ | (12,517) | $ | (10,863) | (13.6) | % | (15.2) | % | |||||||||||||||||||
Total warehouse segment revenues | $ | 1,531,232 | $ | 1,503,484 | $ | 1,141,503 | 34.1 | % | 31.7 | % | |||||||||||||||||||
Total warehouse cost of operations | $ | 1,095,680 | $ | 1,075,496 | $ | 766,842 | 42.9 | % | 40.3 | % | |||||||||||||||||||
Total warehouse segment contribution | $ | 435,552 | $ | 427,988 | $ | 374,661 | 16.3 | % | 14.2 | % |
(1) | The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis is the effect of changes in foreign currency exchange rates relative to the comparable prior period. | ||||
(2) | Calculated as rent and storage revenues less power and other facilities costs. | ||||
(3) | Calculated as warehouse services revenues less labor and other services costs. | ||||
(4) | Calculated as same store rent and storage contribution (NOI) divided by same store rent and storage revenues. | ||||
(5) | Calculated as same store warehouse services contribution (NOI) divided by same store warehouse services revenues. | ||||
(6) |
Non-same store warehouse count of 77 includes one recently leased warehouse in Australia, one warehouse acquired through the Newark Facility Management acquisition on September 1, 2021, two facilities acquired through the ColdCo acquisition on August 2, 2021, one warehouse acquired through the Bowman stores acquisition on May 28, 2021, two warehouses acquired through the KMT Brrr! acquisition on May 5, 2021, four warehouses acquired through the Liberty Freezers acquisition on March 1, 2021, 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 ten legacy facilities. During the third quarter of 2021, a leased facility from the Liberty Freezers acquisition was exited upon expiration of the lease. The results of these acquisitions are reflected in the results above since date of ownership.
|
|
||||||||
Financial Supplement |
Third Quarter 2021
|
Three Months Ended September 30, | Change | ||||||||||||||||
Units in thousands except per pallet and site data - unaudited | 2021 | 2020 | |||||||||||||||
Number of same store warehouses | 162 | 162 | n/a | ||||||||||||||
Same store rent and storage: | |||||||||||||||||
Economic occupancy(1)
|
|||||||||||||||||
Average economic occupied pallets | 2,878 | 2,942 | (2.2) | % | |||||||||||||
Economic occupancy percentage | 76.5 | % | 78.3 | % | -179 bps | ||||||||||||
Same store rent and storage revenues per economic occupied pallet | $ | 54.62 | $ | 52.66 | 3.7 | % | |||||||||||
Constant currency same store rent and storage revenue per economic occupied pallet | $ | 54.58 | $ | 52.66 | 3.7 | % | |||||||||||
Physical occupancy(2)
|
|||||||||||||||||
Average physical occupied pallets | 2,553 | 2,661 | (4.1) | % | |||||||||||||
Average physical pallet positions | 3,760 | 3,756 | 0.1 | % | |||||||||||||
Physical occupancy percentage | 67.9 | % | 70.8 | % | -295 bps | ||||||||||||
Same store rent and storage revenues per physical occupied pallet | $ | 61.59 | $ | 58.23 | 5.8 | % | |||||||||||
Constant currency same store rent and storage revenues per physical occupied pallet | $ | 61.54 | $ | 58.23 | 5.7 | % | |||||||||||
Same store warehouse services: | |||||||||||||||||
Throughput pallets | 7,328 | 7,467 | (1.9) | % | |||||||||||||
Same store warehouse services revenues per throughput pallet | $ | 29.52 | $ | 28.16 | 4.8 | % | |||||||||||
Constant currency same store warehouse services revenues per throughput pallet | $ | 29.38 | $ | 28.16 | 4.3 | % | |||||||||||
Number of non-same store warehouses(3)
|
77 | 13 | n/a | ||||||||||||||
Non-same store rent and storage: | |||||||||||||||||
Economic occupancy(1)
|
|||||||||||||||||
Average economic occupied pallets | 1,182 | 202 | 485.5 | % | |||||||||||||
Economic occupancy percentage | 74.3 | % | 63.5 | % | 1086 bps | ||||||||||||
Physical occupancy(2)
|
|||||||||||||||||
Average physical occupied pallets | 1,156 | 188 | 515.0 | % | |||||||||||||
Average physical pallet positions | 1,591 | 318 | 399.9 | % | |||||||||||||
Physical occupancy percentage | 72.7 | % | 59.1 | % | 1360 bps | ||||||||||||
Non-same store warehouse services: | |||||||||||||||||
Throughput pallets | 2,814 | 451 | 523.9 | % |
|
||||||||
Financial Supplement |
Third Quarter 2021
|
Nine Months Ended September 30, | |||||||||||||||||
Units in thousands except per pallet and site number data - unaudited | 2021 | 2020 | Change | ||||||||||||||
Number of same store sites | 162 | 162 | n/a | ||||||||||||||
Same store rent and storage: | |||||||||||||||||
Economic occupancy(1)
|
|||||||||||||||||
Average occupied economic pallets | 2,865 | 3,003 | (4.6) | % | |||||||||||||
Economic occupancy percentage | 76.2 | % | 80.1 | % | -393 bps | ||||||||||||
Same store rent and storage revenues per economic occupied pallet | $ | 159.64 | $ | 153.38 | 4.1 | % | |||||||||||
Constant currency same store rent and storage revenues per economic occupied pallet | $ | 158.44 | $ | 153.38 | 3.3 | % | |||||||||||
Physical occupancy(2)
|
|||||||||||||||||
Average physical occupied pallets | 2,543 | 2,753 | (7.6) | % | |||||||||||||
Average physical pallet positions | 3,762 | 3,750 | 0.3 | % | |||||||||||||
Physical occupancy percentage | 67.6 | % | 73.4 | % | -582 bps | ||||||||||||
Same store rent and storage revenues per physical occupied pallet | $ | 179.85 | $ | 167.31 | 7.5 | % | |||||||||||
Constant currency same store rent and storage revenues per physical occupied pallet | $ | 178.50 | $ | 167.31 | 6.7 | % | |||||||||||
Same store warehouse services: | |||||||||||||||||
Throughput pallets (in thousands) | 21,805 | 22,547 | (3.3) | % | |||||||||||||
Same store warehouse services revenues per throughput pallet | $ | 28.97 | $ | 27.45 | 5.5 | % | |||||||||||
Constant currency same store warehouse services revenues per throughput pallet | $ | 28.40 | $ | 27.45 | 3.5 | % | |||||||||||
Number of non-same store sites(3)
|
77 | 13 | n/a | ||||||||||||||
Non-same store rent and storage: | |||||||||||||||||
Economic occupancy(1)
|
|||||||||||||||||
Average economic occupied pallets | 1,129 | 185 | 509.0 | % | |||||||||||||
Economic occupancy percentage | 75.9 | % | 63.3 | % | 1260 bps | ||||||||||||
Physical occupancy(2)
|
|||||||||||||||||
Average physical occupied pallets | 1,105 | 176 | 525.9 | % | |||||||||||||
Average physical pallet positions | 1,488 | 293 | 407.9 | % | |||||||||||||
Physical occupancy percentage | 74.2 | % | 60.2 | % | 1400 bps | ||||||||||||
Non-same store warehouse services: | |||||||||||||||||
Throughput pallets (in thousands) | 7,786 | 1,286 | 505.3 | % |
|
||||||||
Financial Supplement |
Third Quarter 2021
|
Q3 21 | Q2 21 | Q1 21 | Q4 20 | Q3 20 | Q2 20 | Q1 20 | |||||||||||||||||||||||||||||||||||
Number of same store warehouses | 162 | 162 | 162 | 162 | 162 | 162 | 162 | ||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||
Same store revenues: | |||||||||||||||||||||||||||||||||||||||||
Rent and storage | $157,233 | $150,984 | $149,166 | $156,134 | $154,926 | $152,893 | $152,805 | ||||||||||||||||||||||||||||||||||
Warehouse services | 216,351 | 209,258 | 206,085 | 214,393 | 210,309 | 199,832 | 208,861 | ||||||||||||||||||||||||||||||||||
Total same store revenues | $373,584 | $360,242 | $355,251 | $370,527 | $365,235 | $352,725 | $361,666 | ||||||||||||||||||||||||||||||||||
Same store cost of operations: | |||||||||||||||||||||||||||||||||||||||||
Power | 25,676 | 21,754 | 17,857 | 19,639 | 25,497 | 20,816 | 18,428 | ||||||||||||||||||||||||||||||||||
Other facilities costs | 31,743 | 33,043 | 32,939 | 30,029 | 32,859 | 32,132 | 29,827 | ||||||||||||||||||||||||||||||||||
Labor | 168,426 | 161,052 | 158,905 | 156,864 | 155,114 | 154,934 | 158,907 | ||||||||||||||||||||||||||||||||||
Other services costs | 30,530 | 28,109 | 27,108 | 26,690 | 28,237 | 27,622 | 29,575 | ||||||||||||||||||||||||||||||||||
Total same store cost of operations | $256,375 | $243,958 | $236,809 | $233,222 | $241,707 | $235,504 | $236,737 | ||||||||||||||||||||||||||||||||||
Same store contribution (NOI) | $117,209 | $116,284 | $118,442 | $137,305 | $123,528 | $117,221 | $124,929 | ||||||||||||||||||||||||||||||||||
Same store rent and storage contribution (NOI)(1) | $99,814 | $96,187 | $98,370 | $106,466 | $96,570 | $99,945 | $104,550 | ||||||||||||||||||||||||||||||||||
Same store services contribution (NOI)(2) | $17,395 | $20,097 | $20,072 | $30,839 | $26,958 | $17,276 | $20,379 | ||||||||||||||||||||||||||||||||||
Total same store margin | 31.4 | % | 32.3 | % | 33.3 | % | 37.1 | % | 33.8 | % | 33.2 | % | 34.5 | % | |||||||||||||||||||||||||||
Same store rent and storage margin(3) | 63.5 | % | 63.7 | % | 65.9 | % | 68.2 | % | 62.3 | % | 65.4 | % | 68.4 | % | |||||||||||||||||||||||||||
Same store services margin(4) | 8.0 | % | 9.6 | % | 9.7 | % | 14.4 | % | 12.8 | % | 8.6 | % | 9.8 | % | |||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||
Same store rent and storage: | |||||||||||||||||||||||||||||||||||||||||
Economic occupancy | |||||||||||||||||||||||||||||||||||||||||
Average economic occupied pallets | 2,878 | 2,830 | 2,887 | 3,036 | 2,942 | 2,971 | 3,094 | ||||||||||||||||||||||||||||||||||
Economic occupancy percentage | 76.5 | % | 75.2 | % | 76.7 | % | 80.7 | % | 78.3 | % | 79.2 | % | 82.6 | % | |||||||||||||||||||||||||||
Same store rent and storage revenues per economic occupied pallet | $54.62 | $53.35 | $51.67 | $51.43 | $52.66 | $51.46 | $49.39 | ||||||||||||||||||||||||||||||||||
Physical occupancy | |||||||||||||||||||||||||||||||||||||||||
Average physical occupied pallets | 2,553 | 2,515 | 2,562 | 2,759 | 2,661 | 2,705 | 2,893 | ||||||||||||||||||||||||||||||||||
Average physical pallet positions | 3,760 | 3,763 | 3,764 | 3,763 | 3,756 | 3,750 | 3,745 | ||||||||||||||||||||||||||||||||||
Physical occupancy percentage | 67.9 | % | 66.8 | % | 68.1 | % | 73.3 | % | 70.8 | % | 72.1 | % | 77.3 | % | |||||||||||||||||||||||||||
Same store rent and storage revenues per physical occupied pallet | $61.59 | $60.03 | $58.23 | $56.59 | $58.23 | $56.52 | $52.81 | ||||||||||||||||||||||||||||||||||
Same store warehouse services: | |||||||||||||||||||||||||||||||||||||||||
Throughput pallets | 7,328 | 7,351 | 7,125 | 7,453 | 7,467 | 7,333 | 7,747 | ||||||||||||||||||||||||||||||||||
Same store warehouse services revenues per throughput pallet | $29.52 | $28.47 | $28.92 | $28.77 | $28.17 | $27.25 | $26.96 | ||||||||||||||||||||||||||||||||||
Actual FX rates for the period | |||||||||||||||||||||||||||||||||||||||||
1 ARS = | 0.010 | 0.011 | 0.011 | 0.013 | 0.014 | 0.015 | 0.016 | ||||||||||||||||||||||||||||||||||
1 AUS = | 0.735 | 0.769 | 0.773 | 0.731 | 0.715 | 0.668 | 0.657 | ||||||||||||||||||||||||||||||||||
1 BRL = | 0.191 | 0.191 | 0.183 | 0.185 | 0.186 | 0.186 | 0.208 | ||||||||||||||||||||||||||||||||||
1 CAD = | 0.794 | 0.811 | 0.790 | 0.767 | 0.751 | 0.726 | 0.744 | ||||||||||||||||||||||||||||||||||
1 CLP = | 0.001 | 0.001 | 0.001 | n/a | n/a | n/a | n/a | ||||||||||||||||||||||||||||||||||
1 EUR = | 1.179 | 1.208 | 1.205 | n/a | n/a | n/a | n/a | ||||||||||||||||||||||||||||||||||
1 GBP = | 1.378 | 1.394 | 1.379 | n/a | n/a | n/a | n/a | ||||||||||||||||||||||||||||||||||
1 NZD = | 0.701 | 0.716 | 0.719 | 0.687 | 0.662 | 0.626 | 0.634 | ||||||||||||||||||||||||||||||||||
1 PLN = | 0.258 | 0.267 | 0.265 | n/a | n/a | n/a | n/a |
|
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Financial Supplement |
Third Quarter 2021
|
Recently Completed Expansion and Development Projects | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Facility | Opportunity Type |
Facility Type
(A = Automated) (C = Conventional) |
Tenant Opportunity |
Cubic Feet
(in millions) |
Pallet Positions
(in thousands) |
Estimated Total Cost
(in millions)(1)
|
NOI ROIC | Completion Date | Expected Full Stabilized Quarter | |||||||||||||||||||||||||||||||||||||||||||||||
Rochelle, IL(2)
|
Expansion | Distribution (A) | Multi-tenant | 15.7 | 54 | $106.7 | 7-9% | Q2 2019 | Q4 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Chesapeake, VA | Expansion | Public (C) | Multi-tenant | 4.5 | 12 | $26.2 | 10-12% | Q4 2019 | Q1 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
N. Little Rock, AR | Expansion | Public(C) | Multi-tenant | 3.2 | 12 | $19.2 | 10-12% | Q4 2019 | Q1 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Columbus, OH | Expansion | Public (C) | Multi-tenant | 1.5 | 5 | $7.0 | 14-15% | Q1 2020 | Q2 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Savannah, GA(3)
|
Development | Distribution (C) | Multi-tenant | 14.8 | 37 | $69.5 | 7-9% | Q2 2020 | Q3 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Atlanta, GA(4)
|
Expansion /Redevelopment | Distribution (A) | Multi-tenant | 18.3 | 60 | $130.0 | 10-15% | Q2 2021 | Q1 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Auckland, New Zealand | Expansion | Distribution (C) | Multi-tenant | 4.6 | 27 | NZ$64.0 | 12-14% | Q2 2021 | Q3 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Lurgan, Northern Ireland | Expansion | Distribution (C) | Multi-tenant | 0.7 | 4 | £6.6 | 10-12% | Q2 2021 | Q3 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Calgary, Canada | Expansion | Distribution (C) | Multi-tenant | 2.0 | 7 | C$13.2 | 10-12% | Q3 2021 | Q1 2023 |
Expansion and Development Projects In Process and Announced | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Facility Type
(A = Automated) (C = Conventional) |
Under
Construction |
Investment in Expansion / Development
(in millions) |
Expected
Stabilized NOI ROIC |
Target
Complete Date |
Expected Full Stabilized Quarter | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Facility | Opportunity Type | Tenant Opportunity |
Cubic Feet
(millions) (1)
|
Pallet
Positions
(thousands) (1)
|
Cost (2)
|
Estimate to
Complete |
Total Estimated
Cost |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dunkirk, NY | Development | Production Advantaged (C) | Build-to-suit | 7.0 | 25 | $12.0 |
$29- $33
|
$41 - $45
|
10-12% | Q2 2022 | Q3 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plainville, CT | Development | Distribution (A) | Build-to-suit | 12.1 | 31 | $122.2 |
$38.8-$51.8
|
$161-$174
|
10-12% | Q3 2022 | Q4 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lancaster, PA | Development | Distribution (A) | Build-to-suit | 11.4 | 28 | $114.4 |
$36.6-$49.6
|
$151-$164
|
10-12% | Q3 2022 | Q4 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dublin, Ireland | Development | Distribution (C) | Multi-tenant | 6.3 | 20 | €9.9 |
€17.6 - €19.6
|
€27.5 - €29.5
|
10-12% | Q3 2022 | Q4 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Russellville, AR | Expansion | Production Advantaged (A) | Build-to-suit | 13.0 | 42 | $45.1 |
$35.9-$41.9
|
$81-$87
|
10-12% | Q4 2022 | Q1 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Atlanta 2, GA | Expansion | Distribution (A) | Multi-tenant | 6.3 | 24 | $14.1 |
$21 - $24
|
$35 - $38
|
10-12% | Q2 2023 | Q1 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Spearwood, Australia | Expansion | Distribution (A) | Multi-tenant | 3.3 | 20 |
A$4
|
A$56-A$60
|
A$60-A$64
|
10-12% | Q2 2023 | Q1 2025 |
|
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Financial Supplement |
Third Quarter 2021
|
Recent Acquisitions
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Facility | Metropolitan Area | No. of Facilities |
Cubic Feet
(in millions) |
Pallet
Positions (in thousands) |
Acquisition Price (in millions)
|
Net Entry NOI Yield (1)
|
Expected Three Year Stabilized
NOI ROIC |
Date Purchased | Expected Full Stabilized Quarter | |||||||||||||||||||||||||||||||||||||||||||||||
AM-C Warehouses | DFW, TX | 2 | 13.8 | 45 | $85.0 | 7.4 | % | 8-10% | 8/31/2020 | Q4 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
Caspers Cold Storage | Tampa, FL | 1 | 3.2 | 12 | $25.5 | — | % | 9-10% | 8/31/2020 | Q4 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
Halls Warehouse Corp(2)
|
New Jersey | 8 | 58.0 | 200 | $480.0 | 6.3 | % | 7-8% | 11/2/2020 | Q1 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
Agro Merchants Group (2)(3)(4)
|
US, Europe, South America, Australia | 46 | 236.0 | 853 | $1,699.0 | 6.5 | % | 7.5-8.5% | 12/30/2020 | Q1 2026 | ||||||||||||||||||||||||||||||||||||||||||||||
Liberty Freezers | Canada | 4 | 10.4 | 42 | $57.8 | 7.0 | % | 8-9% | 3/1/2021 | Q2 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
KMT Brrr!(2)
|
New Jersey | 2 | 12.6 | 39 | $71.1 | 9.0 | % | 10.0-10.5% | 5/5/2021 | Q3 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
Bowman Stores | England | 1 | 9.5 | 23 | £74.1 | 6.8 | % | 7.5-8.5% | 5/28/2021 | Q3 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
ColdCo Logistics(5)
|
St. Louis | 2 | 2.8 | 12 | $20.5 | 10.7 | % | 12-13% | 8/2/2021 | Q4 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
Newark Facility Management(6)
|
New Jersey | 1 | 11.5 | 17 | $376.5 | 6.1 | % | 6.5-7.5% | 9/1/2021 | Q4 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
Lago Cold Stores | Australia | 3 | 6.8 | 30 | A$106.4 | 6.2 | % | 7-8% | 11/2021 Est. | Q1 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
Brighton(7)
|
Denver, CO | 1 | 12.1 | 33 | $59.3 | 5.5 | % | 7.5-8.5% | 11/2021 Est. | Q3 2023 |
|
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Financial Supplement |
Third Quarter 2021
|
|
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Financial Supplement |
Third Quarter 2021
|
|
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Financial Supplement |
Third Quarter 2021
|
As of | As of | As of | As of | As of | |||||||||||||
November 3, 2021 | September 21, 2021 | August 5, 2021 | May 6, 2021 | Feb. 18, 2021 | |||||||||||||
Warehouse segment same store revenue growth (constant currency) |
(2.0)% - 0.0%
|
(2.0%) - 0.0% | 0.0% - 2.0% | 2.0% - 4.0% | 2.0% - 4.0% | ||||||||||||
Warehouse segment same store NOI growth (constant currency) |
400 - 600 bps lower than associated revenue
|
400 - 600 bps lower than associated revenue | 0 - 100 bps higher than associated revenue | 100 - 200 bps higher than associated revenue | 100 - 200 bps higher than associated revenue | ||||||||||||
Managed and Transportation segment NOI |
$43M - $46M
|
$42M - $50M | $42M - $50M | $46M - $54M | $46M - $54M | ||||||||||||
Total selling, general and administrative expense (inclusive of non-cash share-based compensation expense of $20 million) |
$179M - $182M
|
$175M - $185M | $175M - $185M | $190M - $196M | $190M - $196M | ||||||||||||
Current income tax expense |
$8M - $10M
|
$8M - $10M | $8M - $10M | $9M - $13M | $9M - $13M | ||||||||||||
Deferred income tax benefit (expense) |
$1M - $2M
|
($4M - $6M) | ($4M - $6M) | $4M - $5M | $1M - $2M | ||||||||||||
Non real estate depreciation and amortization expense |
$120M - $125M
|
$140M - $155M | $140M - $155M | $100M - $110M | $85M - $92M | ||||||||||||
Total maintenance capital expenditures |
$75M - $80M
|
$77M - $82M | $77M - $82M | $90M - $100M | $90M - $100M | ||||||||||||
Development starts (1)
|
$153M - $175M
|
$175M - $300M | $175M - $300M | $175M - $300M | $175M - $300M | ||||||||||||
AFFO per share |
$1.15 - $1.20
|
$1.15 - $1.20 | $1.34 - $1.40 | $1.36 - $1.46 | $1.36 - $1.46 | ||||||||||||
Assumed FX rates |
1 ARS = 0.0104 USD
1 AUS = 0.7539 USD
1 BRL = 0.1820 USD
1 CAD = 0.7895 USD
1 CLP = 0.0013 USD
1 EUR = 1.1905 USD
1 GBP = 1.3815 USD
1 NZD = 0.7096 USD
1 PLN = 0.2637 USD
|
1 ARS = 0.0127 USD
1 AUS = 0.7521 USD 1 BRL = 0.1820 USD 1 CAD = 0.8059 USD 1 CLP = 0.0018 USD 1 EUR = 1.2041 USD 1 GBP = 1.3976 USD 1 NZD = 0.7031 USD 1 PLN = 0.2665 USD |
1 ARS = 0.0127 USD
1 AUS = 0.7521 USD 1 BRL = 0.1820 USD 1 CAD = 0.8059 USD 1 CLP = 0.0018 USD 1 EUR = 1.2041 USD 1 GBP = 1.3976 USD 1 NZD = 0.7031 USD 1 PLN = 0.2665 USD |
1 ARS = 0.0101 USD
1 AUS = 0.7743 USD 1 BRL = 0.1795 USD 1 CAD = 0.8071 USD 1 CLP = 0.0013 USD 1 EUR = 1.1898 USD 1 GBP = 1.3904 USD 1 NZD = 0.7185 USD 1 PLN = 0.2587 USD |
1 ARS = 0.0130 USD
1 AUS = 0.7179 USD 1 BRL = 0.1930 USD 1 CAD = 0.7592 USD 1 CLP = 0.0013 USD 1 EUR = 1.1839 USD 1 GBP = 1.3121 USD 1 NZD = 0.6600 USD 1 PLN = 0.2686 USD |
|
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Financial Supplement |
Third Quarter 2021
|
Notes and Definitions | ||
We calculate funds from operations, or FFO, in accordance with the standards established by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. NAREIT defines FFO as net income or loss determined in accordance with U.S. GAAP, excluding extraordinary items as defined under U.S. GAAP and gains or losses from sales of previously depreciated operating real estate assets, plus specified non-cash items, such as real estate asset depreciation, net loss or gain on asset disposals, impairment of real estate assets, and our share of reconciling items of partially owned entities. We believe that FFO is helpful to investors as a supplemental performance measure because it excludes the effect of depreciation, amortization and gains or losses from sales of real estate net of withholding taxes, all of which are based on historical costs, which implicitly assumes that the value of real estate diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, FFO can facilitate comparisons of operating performance between periods and among other equity REITs. | ||
We calculate core funds from operations, or Core FFO, as FFO adjusted for the effects of gain or loss on the sale of non-real estate assets, non-core asset impairment, acquisition, litigation and other expenses, share-based compensation expense for the IPO retention grants, bridge loan commitment fees, loss on debt extinguishment, modifications and termination of derivative instruments and foreign currency exchange gain or loss. We also adjust for the impact of Core FFO attributable to partially owned entities. We have elected to reflect our share of Core FFO attributable to partially owned entities since the Brazil joint ventures are strategic partnerships which we continue to actively participate in on an ongoing basis. The previous joint venture, the China JV, was considered for disposition during the periods presented. We believe that Core FFO is helpful to investors as a supplemental performance measure because it excludes the effects of certain items which can create significant earnings volatility, but which do not directly relate to our core business operations. We believe Core FFO can facilitate comparisons of operating performance between periods, while also providing a more meaningful predictor of future earnings potential. | ||
However, because FFO and Core FFO add back real estate depreciation and amortization and do not capture the level of maintenance capital expenditures necessary to maintain the operating performance of our properties, both of which have material economic impacts on our results from operations, we believe the 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 FFO adjusted for the effects of amortization of deferred financing costs, pension withdrawal liability and above or below market leases, straight-line net rent, provision or benefit from deferred income taxes, share-based compensation expense from grants of stock options and restricted stock units under our equity incentive plans, excluding IPO grants, non-real estate depreciation and amortization, non-real estate asset impairment and maintenance capital expenditures. We also adjust for AFFO attributable to our portion of reconciling items of partially owned entities. We believe that Adjusted FFO is helpful to investors as a meaningful supplemental comparative performance measure of our ability to make incremental capital investments in our business and to assess our ability to fund distribution requirements from our operating activities. | ||
FFO, Core FFO and Adjusted FFO are used by management, investors and industry analysts as supplemental measures of operating performance of equity REITs. FFO, Core FFO and Adjusted FFO should be evaluated along with U.S. GAAP net income and net income per diluted share (the most directly comparable U.S. GAAP measures) in evaluating our operating performance. FFO, Core FFO and Adjusted FFO do not represent net income or cash flows from operating activities in accordance with U.S. GAAP and are not indicative of our results of operations or cash flows from operating activities as disclosed in our consolidated statements of operations included in our annual and quarterly reports. FFO, Core FFO and Adjusted FFO should be considered as supplements, but not alternatives, to our net income or cash flows from operating activities as indicators of our operating performance. Moreover, other REITs may not calculate FFO in accordance with the NAREIT definition or may interpret the NAREIT definition differently than we do. Accordingly, our FFO may not be comparable to FFO as calculated by other REITs. In addition, there is no industry definition of Core FFO or Adjusted FFO and, as a result, other REITs may also calculate Core FFO or Adjusted FFO, or other similarly-captioned metrics, in a manner different than we do. The table above reconciles FFO, Core FFO and Adjusted FFO to net income, which is the most directly comparable financial measure calculated in accordance with U.S. GAAP. | ||
We calculate EBITDA for Real Estate, or EBITDAre, in accordance with the standards established by the Board of Governors of NAREIT, defined as, earnings before interest expense, taxes, depreciation and amortization, and net (gain) loss on sale of real estate, net of withholding taxes and adjustment to reflect our share of EBITDAre of partially owned entities. EBITDAre is a measure commonly used in our industry, and we present EBITDAre to enhance investor understanding of our operating performance. We believe that EBITDAre provides investors and analysts with a measure of operating results unaffected by differences in capital structures, capital investment cycles and useful life of related assets among otherwise comparable companies. | ||
We also calculate our Core EBITDA as EBITDAre further adjusted for acquisition, litigation and other expenses, asset impairment, loss or gain on real estate and other asset disposals, bridge loan commitment fees, loss on debt extinguishment, modifications and termination of derivative instruments, share-based compensation expense, foreign currency exchange gain or loss, loss or income from investments in partially owned entities and reduction in EBITDAre from partially owned entities. We believe that the presentation of Core EBITDA provides a measurement of our operations that is meaningful to investors because it excludes the effects of certain items that are otherwise included in EBITDA but which we do not believe are indicative of our core business operations. EBITDA and Core EBITDA are not measurements of financial performance under U.S. GAAP, and our EBITDA and Core EBITDA may not be comparable to similarly titled measures of other companies. You should not consider our EBITDA and Core EBITDA as alternatives to net income or cash flows from operating activities determined in accordance with U.S. GAAP. Our calculations of EBITDA and Core EBITDA have limitations as analytical tools, including: |
We use Core EBITDA and EBITDAre as measures of our operating performance and not as measures of liquidity. The table on page 22 reconciles EBITDA, EBITDAre and Core EBITDA to net income, which is the most directly comparable financial measure calculated in accordance with U.S. GAAP.
|
||
All quarterly amounts and non-GAAP disclosures within this filing shall be deemed unaudited. |