On May 27, Truist Securities cut the price target for Americold Realty Trust, Inc. (NYSE:COLD) to $24 from $27 while maintaining a Buy rating. The cut comes on the stock experiencing a poor run in the market. The stock has shed 22% in market value year-to-date. The price target cut also comes from the company delivering disappointing first-quarter results and trimming full-year guidance.
A Real Estate Investment Trust (REIT) property manager inspecting a newly acquired apartment complex.
Americold Realty Trust delivered a 5.4% decrease in revenues in Q1 2025, which amounted to $629 million. In addition, it plunged into a net loss of $16.5 million or $0.06 a share compared to a net income per diluted share of $0.03 in Q1 of 2024.
Its adjusted funds from operations stood at $95.7 million or $0.34 in the quarter. The disappointing financial results came on the company’s global warehouse segment experiencing a 2.3% decrease in same-store revenues.
However, Truist reiterated a Buy rating on the stock, buoyed by investments made to reinvigorate growth. The leader in temperature-controlled logistics and real estate acquired a facility in Houston, Texas, for $127 million. The acquisition is poised to add up to 35,700 pallet positions in the company’s cold storage portfolio.
Additionally, Americold Realty Trust reiterated its commitment to returning value to shareholders. It has increased its dividend payout by 5%, affirming strong cash flow generation. Nevertheless, the company has revised its AFFO estimate for 2025 to $1.42, down from the initial guidance of $1.52.
Americold Realty Trust is a real estate investment trust (REIT) that owns and operates temperature-controlled warehouses and related services. It also provides warehouses for the cold food supply chain, linking food producers, processors, and retailers to consumers.
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