Key facts
- Americold Realty Trust is terminating a 2020 partnership with Ahold Delhaize USA.
- The termination involves two automated distribution hubs in Lancaster, Pennsylvania, and Plainville, Connecticut.
- Americold will recognize an impairment charge between $305 million and $320 million in its second-quarter results.
- The REIT is putting the properties up for sale.
- The Pennsylvania facility will wind down operations by the end of the year.
- Full operations never commenced at the Connecticut facility.
Americold Realty Trust is abandoning a six-year-old partnership with Ahold Delhaize USA to operate two automated distribution hubs, a move that will result in a significant financial hit. The REIT will recognize an impairment charge between $305 million and $320 million in its second-quarter results, which are scheduled for release on August 6. Americold disclosed the termination in a filing with the Securities and Exchange Commission on July 21, noting there are no associated fees or penalties.
The partnership, established in 2020 with a subsidiary of Ahold Delhaize USA (which operates brands like Food Lion and Stop & Shop), was intended to develop and manage two facilities in Lancaster, Pennsylvania, and Plainville, Connecticut. The original deal was valued at $325 million for the development of two facilities totaling 500,000 square feet, designed to serve approximately 750 stores in the Northeast and mid-Atlantic. Delivery of these properties was initially slated for the second half of 2023.
The Pennsylvania property is slated to wind down operations by the end of the current year. In Connecticut, the facility never commenced full operations and will not do so, with the exception of short-term ice production, according to the SEC filing. The net book value of these assets stands at $455 million, and Americold is actively seeking buyers, though it may also opt to retain or redevelop the properties.
This decision follows a period of pressure from activist investors. In December, Americold announced plans to explore asset sales after Ancora Group Holdings urged the REIT to consider strategic alternatives, including a potential sale of the company, following a more than 30% drop in its market value in 2025. In March, Sieve Capital also called for the removal of Americold's board chair and exploration of a sale, criticizing the REIT's focus on "short-sighted transactions."
Despite these challenges, Americold's stock has seen a positive trend in 2026, with shares up over 13%, although it experienced a roughly 5% decline in the last five trading days. The company does not anticipate the wind-down of these distribution hubs to affect its financial guidance for the year. Americold reported mixed first-quarter results in May, including a net loss of $13.6 million and a nearly 15% year-over-year decrease in adjusted funds from operations. Concurrently, it announced a $1.1 billion investment from EQT Real Estate for a 70% stake in 12 assets.
Industry-wide, cold storage vacancy reached a 20-year high in the first quarter, attributed to a surge in construction that began during the pandemic. Newmark data indicates that the segment may be overbuilt, with properties constructed after 2019 experiencing the highest vacancy rates at 10.1%, while those built between 2006 and 2019 have vacancy rates below 3%.