Americold Earnings: Management Increases Full-Year 2023 Guidance on Back of Strong Performance

No-moat-rated Americold Realty reported solid second-quarter results on the back of pricing initiatives, rate escalations, and higher economic occupancy. The firm reported adjusted funds from operations of $0.28 per share, 3.7% higher than the $0.27 in adjusted FFO during the second quarter of 2022. Core EBITDA, which removes the impact of higher interest expenses and is less prone to quarterly fluctuations, was reported at $134.6 million in the second quarter, up approximately 12% compared with the $120.2 million in core EBITDA during the second quarter of the previous year. Management has increased its 2023 AFFO guidance to $1.20-$1.30 per share, which is approximately 3.3% higher than previous guidance at the midpoint on account of strong fundamental performance. We do not plan to change our $33 fair value estimate for the company as we incorporate the second-quarter results.