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Americold Realty Trust, one of the world’s largest logistics companies focusing on temperature-controlled warehouse facilities, on Aug. 8 reported second-quarter net income dropped to nearly $4.9 million from $29.4 million in 2018, an 83.3% decrease.
Earnings were 3 cents per common share, down from 20 cents in the year-ago period.
Net income of the first six months is $262,000, or zero cents per share, compared with $20.7 million, or 13 cents in 2018.
However, revenue increased to nearly $438.5 million, compared with just below $394.7 million in 2018, an 11% year-over-year increase.
At the halfway point of 2019, revenue far exceeds that of 2018. Americold reported $831.5 million compared with $785.8 million last year, an increase of $45.7 million or 5.8%.
Company officials have said net income is not a primary metric for real estate investment trusts and that funds from operations (FFO) or adjusted funds from operations are two metrics investors generally focus on.
The company also said recent purchases will provide long-term growth opportunities.
“Our team completed $1.3 billion of acquisitions during the second quarter, consisting of Cloverleaf Cold Storage and Lanier Cold Storage, and made rapid progress on the realization of synergies as we integrate all 24 facilities into our portfolio,” CEO Fred Boehler said in a statement. “We also made significant progress on our development pipeline, with groundbreaking at our builds in Atlanta and Savannah as well as three expansion projects associated with Cloverleaf. Finally, we successfully accessed the debt and equity markets to match fund this expansion activity.”
The company reported FFO were $56 million, or 31 cents per common share, compared with $43.1 million or 30 cents per share in the same quarter last year.
Americold owns and operates 178 sites worldwide with more than 1 billion cubic square feet of storage. This includes the 21 warehouse facilities and one managed facility acquired from Cloverleaf, and two warehouse facilities acquired from Lanier, both during the second quarter.
The company went public in January 2018.
“We believe we can continue to leverage our scale and our Americold Operating System to enhance the value of each facility we acquire. Similarly, we expect to use our platform to take advantage of burgeoning opportunities within the market,” Boehler said.
Atlanta-based Americold ranks No. 17 on the Transport Topics Top 50 list of largest logistics companies in North America.