Americold Realty Trust, Inc. · NYSE:COLD
Americold Realty Trust — BofAML Real Estate Conference 2018
26 slides from Americold Realty Trust's conference presentation, September 2018
Slide 1: BofAML Real Estate Conference
BofAML Real Estate Conference September 2018
Slide 2: Disclaimer
Disclaimer This presentation contains statements about future events and expectations that constitute forward-looking statements. Forward-looking statements are based on our beliefs, assumptions and expectations of our future financial and operating performance and growth plans, taking into account
Slide 3: Key Investment Highlights
Key Investment Highlights 1 Important First Mover Advantage as the Only Publicly Traded REIT Focused on Temperature-Controlled Warehouses 2 Global Market Leader with Integrated Network of Strategically-Located, High-Quality, “Mission-Critical” Warehouses 3 Infrastructure Supported by Best-in-Class I
Slide 4: Company Snapshot
Company Snapshot Largest global and U.S. REIT focused on the ownership, operation, development and acquisition of temperature-controlled warehouses Portfolio Overview Financial Overview ($ in millions) Warehouses 156 2016A 2017A LTM 6/30/18 119 Owned (1), Revenue $1,490 $1,544 $1,577 Ownership Type
Slide 5: Largest Fully Integrated Network of Temperature-Controlled Warehouses
Largest Fully Integrated Network of Temperature-Controlled Warehouses An indispensable component of food infrastructure from “farm to fork" e-Commerce Fulfillment Delhi, LA LaPorte, TX Atlanta, GA Phoenix, AZ Fork Farm Production Public Distribution Retail Advantaged Warehouse Center Distribution Ce
Slide 6: Integrated Operations Overview
Integrated Operations Overview Real estate value is driven by the critical nature of our infrastructure, strategic locations and integrated, full-service strategy Overview Select Customers % of Contribution (1) Mission-critical, temperature-controlled real estate infrastructure generates rent and
Slide 7: Strategically Located, "Mission-Critical" Temperature-Controlled Warehouses
Strategically Located, “Mission-Critical” Temperature-Controlled Warehouses Strategic locations and extensive geographic presence provide an integrated warehouse network that is fundamental to customers’ ability to optimize their distribution networks BC BC AB AB SK SK MB MB PE PE WA WA NB NB ON ON
Slide 8: Global Market Leader in Temperature-Controlled Warehousing
Global Market Leader in Temperature-Controlled Warehousing Position as the U.S. and global market leader allows us to realize economies of scale, reduce operating costs and lower our overall cost of capital. Ideally positioned to compete for customers and external growth opportunities U.S. Market Le
Slide 9: Highly Diversified Business Model Produces Stable Cash Flows
Highly Diversified Business Model Produces Stable Cash Flows Diversification helps reduce revenue volatility associated with seasonality and changing commodity trends Commodity (1) Global Geographic Diversity (1) Global Warehouse U.S. Warehouse United States Central Dairy Fruits & Argentina 25% Sout
Slide 10: Long Standing Relationships with Top Customers
Long Standing Relationships with Top 25 Customers Scope and scale of network coupled with long-standing relationships position the Company to grow market share organically and through acquisitions Food Producers / CPG Companies Top 25 Customers Have been with Americold for an average of 33 years
Slide 11: Economic Occupancy Driving Improved Returns
Economic Occupancy Driving Improved Returns Implementation of our standard underwriting procedures has contributed to consistent occupancy growth over the last three years Physical Occupancy Average Physical Occupancy Optimal physical occupancy across our temperature-controlled 1Q 2Q 3Q 4Q Annual
Slide 12: Growing Committed Revenue in Warehouse Portfolio
Growing Committed Revenue in Warehouse Portfolio Significant improvement transitioning from as-utilized, on demand contracts to fixed storage committed contracts and leases Rent & Storage Warehouse Revenue Fixed storage committed contracts and leases currently represent: Annualized Committed Rent
Slide 13: Warehouse Financial Summary
Warehouse Financial Summary Warehouse Revenue ($mm) Warehouse NOI ($mm) Actual $ CC $ Actual $ CC $ Rent and Storage Revenue CAGR: 2.9% 4.0% Rent and Storage NOI CAGR: 4.5% 5.5% Warehouse Services Revenue CAGR: 3.6% 4.8% Warehouse Services NOI CAGR: 34.1% 32.9% Total 2014A – LTM 6/30/18 CAGR: 3.3% 4
Slide 14: Positioned for Multiple Avenues of Growth
Positioned for Multiple Avenues of Growth Global warehouse network, operating systems, scalable information technology platform and economies of scale provide a significant advantage over competitors with respect to organic and external growth opportunities Organic Growth Opportunities Development a
Slide 15: Organic Growth Initiatives Have Driven Same Store Growth
Organic Growth Initiatives Have Driven Same Store Growth Same store performance is the culmination of replacing legacy customer agreements with new contracts implementing our Commercial Business Rules, active asset management and leveraging integrated network, scale and market position Same Store Re
Slide 16: Growth Strategy – Expansion, Development and Acquisitions
Growth Strategy – Expansion, Development and Acquisitions Completed 15.7mm Cu Ft $70mm 4 Completed Since 2014 44,000 Pallets Cost Expansion and Development Opportunities (1) Estimated Costs Under 20.9mm Cu Ft ~$109mm Return on Invested Capital (1) (2) Construction 86,000 Pallets 1 Expansion & 1 Deve
Slide 17: Growth Strategy – Recently Completed / Under Construction
Growth Strategy – Recently Completed / Under Construction ($ in millions) Opportunity Facility Cubic Pallet Cost of Expansion / Development Completion Facility Type Type Feet (mm) Positions ('000) Total Cost ROIC Date Completed Since 2014 Phoenix, AZ Development Distribution 3.5 12 $18 18.0% Q1 2014
Slide 18: Woolworths Development Opportunity
Woolworths Development Opportunity Project Overview Map Woolworths (ASX: WOW), Australia’s largest grocer, has Brisbane selected Americold as its sole strategic supply chain partner – Represents a dedicated build-to-suit opportunity to design, build and operate highly automated distribution People
Slide 19: Market Leader with Consolidation Opportunity in a Highly Fragmented Sector
Market Leader with Consolidation Opportunity in a Highly Fragmented Sector Cold storage warehouses with fragmented ownership provide a significant roll-up opportunity U.S. Cold Chain Market (1) Strategic Acquisitions First mover advantage with an attractive cost of and access to capital Americold
Slide 20: Flexible Balance Sheet Positioned for Growth
Flexible Balance Sheet Positioned for Growth Pro Forma Capitalization Pro Forma Liquidity ($ in millions) As of Transaction Pro Forma Significant Liquidity: ~$802mm (4) 6/30/18 Adjustments 6/30/18 – $450mm Undrawn Senior Cash Equity Secured Revolving Credit $385 Facility Offering Share Price $24.5
Slide 21: Strategic Investment Approach to Maintain a High-Quality Portfolio
Strategic Investment Approach to Maintain a High-Quality Portfolio Capital expenditures ensure that our temperature-controlled warehouses meet the “mission-critical” role they serve in the cold chain As a % of Total Warehouse NOI before R&M Expense 2015A 2016A 2017A 14.0% 14.2% 13.1% 12.2% 12.4% 11.
Slide 22: Conclusion
Conclusion 1 Important First Mover Advantage as the Only Publicly Traded REIT Focused on Temperature-Controlled Warehouses – Successfully completed ~$834 million IPO in January 2018 2 Global Market Leader with Integrated Network of Strategically-Located, High-Quality, “Mission-Critical” Warehouses 3
Slide 23: Appendix
Appendix SS dMeCTiICOLo. REALTY TRUST
Slide 24: Temperature-Controlled Warehouses: An Attractive Asset Class
Temperature-Controlled Warehouses: An Attractive Asset Class Uniquely designed to maintain the temperature of frozen and refrigerated products in the cold chain and represent a growing, attractive niche of the industrial warehouse real estate sector Automated Storage Engine Room with & Retrieval Sys
Slide 25: Substantially All Warehouse NOI Driven by Rental & Storage Revenue
Substantially All Warehouse NOI Driven by Rental & Storage Revenue + = Rent & Storage Warehouse Services Total Warehouse Commentary Revenues REIT: Rent & Storage $0.44 $0.56 $1.00 TRS: Warehouse Services Power ($0.06) -- ($0.06) Power and utilities Other Real Estate Related Costs: facility Facility
Slide 26: Industry-Leading, Integrated IT & Operating Platforms
Industry-Leading, Integrated IT & Operating Platforms Proprietary IT system has revolutionized how we interface with our customers, make business decisions and manage our warehouses Integrated IT Platform Americold Operating System Customer-Facing IT Systems – Proprietary system provides customers
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