AMERICOLD REALTY TRUST Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q)

The following dialogue and evaluation of our monetary situation and outcomes
of operations needs to be learn along side our condensed consolidated
monetary statements included on this Quarterly Report on Form 10-Q. In
addition, the next dialogue incorporates forward-looking statements, equivalent to
statements concerning our expectation for future efficiency, liquidity and
capital assets, that contain dangers, uncertainties and assumptions that might
trigger precise outcomes to vary materially from our expectations. Our precise
outcomes could differ materially from these contained in or implied by any
forward-looking statements. Factors that might trigger such variations embody
these recognized beneath and these described beneath Part I, Item 1A of our Annual
Report on Form 10-Okay for the yr ended December 31, 2021.

MANAGEMENT’S OVERVIEW

We are the world’s largest publicly traded REIT targeted on the possession,
operation, acquisition and improvement of temperature-controlled warehouses. We
are organized as a self-administered and self-managed REIT with confirmed
working, improvement and acquisition experience. As of March 31, 2022, we
operated a worldwide community of 249 temperature-controlled warehouses encompassing
roughly 1.5 billion cubic ft, with 201 warehouses in North America, 27
in Europe, 18 warehouses in Asia-Pacific, and three warehouses in South America.
In addition, we maintain two minority pursuits in Brazilian-based joint ventures,
one with SuperFrio, which owns or operates 33 temperature-controlled warehouses
and one with Comfrio, which owns or operates 27 temperature-controlled
warehouses.

Components of Our Results of Operations

Warehouse. Our major supply of revenues consists of hire, storage, and
warehouse companies charges. Our hire, storage, and warehouse companies revenues are
the important thing drivers of our monetary efficiency. Rent and storage revenues consist
of recurring, periodic prices associated to the storage of frozen, perishable or
different merchandise in our warehouses by our clients. We additionally present these
clients with a big selection of dealing with and different warehouse companies, equivalent to
(1) receipt, dealing with and placement of merchandise into our warehouses for storage
and preservation, (2) retrieval of merchandise from storage upon buyer request,
(3) blast freezing, which entails the fast freezing of non-frozen merchandise,
together with particular person fast freezing for agricultural produce and seafood,
(4) case-picking, which entails deciding on product circumstances to construct personalized
pallets, (5) kitting and repackaging, which entails assembling customized product
packages for supply to retailers and shoppers, and labeling companies,
(6) order meeting and load consolidation, (7) exporting and importing help
companies, (8) container dealing with, (9) cross-docking, which entails transferring
inbound merchandise to outbound vehicles using our warehouse docks with out
storing them in our warehouses, (10) government-approved temperature-controlled
storage and inspection companies, (11) fumigation, (12) pre-cooling and chilly
remedy companies, (13) produce grading and bagging, (14) protein boxing, (15)
e-commerce achievement, and (16) ripening. We refer to those dealing with and different
warehouse companies as our value-added companies.

Cost of operations for our warehouse section consist of energy, different amenities
prices, labor, and different service prices. Labor, the biggest element of the associated fee
of operations from our warehouse section, consists primarily of worker wages,
advantages, and employees’ compensation. Trends in our labor expense are influenced
by adjustments in headcount, adjustments in compensation ranges and related
efficiency incentives, the use of third-party labor to help our operations,
adjustments in phrases of collective bargaining agreements, adjustments in buyer
necessities and related work content material, workforce productiveness, labor
availability, governmental insurance policies and laws, variability in prices
related to medical insurance coverage and the influence of office security packages,
inclusive of the quantity and severity of employees’ compensation claims. Labor
expense will also be impacted because of this of discretionary bonuses. In response
to the COVID-19 pandemic, we now have included sure actions equivalent to
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staggered break schedules, social distancing, and different adjustments to course of that
can create inefficiencies, all of which we count on to proceed to incur going
ahead. Our second largest value of operations from our warehouse section is
energy utilized within the operation of our temperature-controlled warehouses. As a
consequence, fluctuations within the worth for energy within the areas the place we function could
have a big impact on our monetary outcomes. We could infrequently
hedge our publicity to adjustments in energy costs via fastened price agreements or,
to the extent potential and applicable, via price escalations or energy
surcharge provisions inside our buyer contracts. Additionally, enterprise combine
impacts energy expense relying on the temperature zone or kind of freezing
required. Other amenities prices embody utilities aside from energy, property
insurance coverage, property taxes, sanitation (which embody incremental provides as a
consequence of COVID-19), repairs and upkeep on actual property, hire beneath actual
property working leases, the place relevant, safety, and different associated
amenities prices. Other companies prices embody tools prices, warehouse
consumables (e.g., shrink-wrap and uniforms), private protecting tools to
keep the well being and security of our associates, warehouse administration and
different associated companies prices.

Third-Party Managed. We obtain a reimbursement of considerably all bills
for warehouses that we handle on behalf of third-party homeowners, with all
reimbursements acknowledged as revenues beneath the related accounting steering. We
additionally earn administration charges, incentive charges upon reaching negotiated efficiency
and cost-savings outcomes, or an relevant mark-up on prices. Cost of operations
for our third-party managed section is reimbursed on a pass-through foundation
(usually inside two weeks).

Transportation. We cost transportation charges, which can additionally embody gas and
capability surcharges, to our clients for whom we organize the transportation of
their merchandise. Cost of operations for our transportation section consists
primarily of third-party provider prices, that are impacted by components
affecting these carriers, together with driver and tools availability in sure
markets. Additionally, in sure markets we make use of drivers and property to serve
our clients. Costs to function these property embody, wages, gas, tolls,
insurance coverage and upkeep.

Other Consolidated Operating Expenses. We additionally incur depreciation and
amortization bills, corporate-level promoting, common and administrative
bills and corporate-level acquisition, litigation and different, web bills.

Our depreciation and amortization prices consequence primarily from the
capital-intensive nature of our enterprise. The principal parts of
depreciation relate to our warehouses, together with buildings and enhancements,
refrigeration tools, racking, leasehold enhancements, materials dealing with
tools, furnishings and fixtures, and our laptop {hardware} and software program.
Amortization relates primarily to intangible property for buyer relationships.

Our corporate-level promoting, common and administrative bills consist
primarily of wages and advantages for administration, administrative, enterprise
improvement, account administration, challenge administration, advertising, engineering,
supply-chain options, human assets and info expertise personnel, as
effectively as bills associated to fairness incentive plans, communications and knowledge
processing, journey, skilled charges, unhealthy debt, coaching, workplace tools and
provides. Trends in corporate-level promoting, common and administrative bills
are influenced by adjustments in headcount and compensation ranges and achievement
of incentive compensation targets. To place ourselves to satisfy the challenges
of the present enterprise atmosphere, we now have applied a shared companies
help construction to higher handle prices and improve the effectivity of our
operations. We have begun to combine our current acquisitions into this shared
companies construction.

Our corporate-level acquisition, litigation and different, web consists of prices
that we view exterior of promoting, common and administrative bills with a excessive
degree of variability from period-to-period, and embody the next:

•Acquisition associated prices embody prices related to transactions, whether or not
consummated or not, equivalent to advisory, authorized, accounting, valuation and different
skilled or consulting charges. We additionally
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embody integration prices pre- and post-acquisition that mirror work being
carried out to facilitate merger and acquisition integration, equivalent to worker
retention expense and work related to info techniques and different
tasks together with spending to help future acquisitions, which primarily
consist of skilled companies.

•Litigation prices incurred with a view to defend ourselves from litigation prices
exterior of the conventional course of enterprise and associated settlement prices.

•Severance prices representing sure contractual and negotiated severance and
separation prices from exited former executives, discount in headcount on account of
synergies achieved via acquisitions or operational efficiencies, and
discount in workforce prices related to exiting or promoting non-strategic
warehouses.

•Equity acceleration prices representing the unrecognized expense for share-based
awards that vest and convert to frequent shares upfront of the unique
negotiated vesting date and another fairness award adjustments leading to
accounting for the award as a modification.

•Non-offering associated fairness issuance bills whether or not incurred via our
preliminary public providing, follow-on choices or secondary choices.

•Terminated website operations prices signify bills incurred to return leased
websites to their authentic bodily state at lease inception in reference to the
termination of the relevant underlying lease. These terminations had been half of
our strategic efforts to exit or promote non-strategic warehouses versus
unusual course lease expirations. Repair and upkeep bills related
with our unusual course operations are mirrored as working bills on our
condensed consolidated assertion of operations.

•Cyber incident associated prices embody third-party charges incurred in connection
with the cyber incident that occurred in November 2020, in addition to any
incremental prices, inside and exterior, incurred to revive operations at our
amenities and injury claims. Any subsequent reimbursements from insurance coverage
protection for bills incurred in reference to the occasion are additionally mirrored
inside this class.

•Other prices relate to insurance coverage declare deductibles and associated recoveries (2021)
and further superannuation pension prices associated to prior years upon assessment
by the Australian Tax Office (2020).

Key Factors Affecting Our Business and Financial Results

Market Conditions and COVID-19

During the three months ended March 31, 2022 and the yr ended December 31,
2021, our enterprise and monetary outcomes had been negatively impacted by COVID-19
associated disruptions in (1) the meals provide chain; (ii) our clients’ manufacturing
and transportation of items; (iii) the labor market impacting availability and
value; and (iv) the macroeconomic atmosphere together with the influence of inflation
on the associated fee to offer our companies. We are persevering with to carefully monitor the
influence of the COVID-19 pandemic and any variants on all elements of our enterprise
and geographies, together with the way it will influence our clients and enterprise
companions. The extent to which COVID-19 impacts our operations will rely on
future developments, that are extremely unsure and can’t be predicted with any
diploma of confidence, together with the scope, severity, period and geographies of
the outbreak, the prevalence of further waves or spikes in an infection charges
(together with the unfold of variant strains), the actions taken to comprise the
COVID-19 pandemic or mitigate its influence as requested or mandated by
governmental authorities or in any other case voluntarily taken by people or
companies, and the direct and oblique financial results of the outbreak and
containment measures, amongst others.
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We count on that end-consumer demand for meals will stay in line with historic
ranges over the long-term. However, present end-consumer demand coupled with
meals manufacturing and transportation challenges because the outset of the pandemic
has pushed down holdings in our amenities. As a consequence, occupancy and
throughput quantity proceed at decrease than historic ranges skilled previous to
COVID-19. We count on this to proceed till our clients are capable of ramp
manufacturing again as much as pre-pandemic ranges for an prolonged interval of time and
rebuild stock within the provide chain.

The unprecedented labor atmosphere continues to be difficult for a lot of
corporations, together with our meals manufacturing clients. Labor availability
continues to be the first constraint on meals manufacturing, together with the
persevering with unfold of COVID-19 and associated variants, which additionally impacts the labor
market.

Our enterprise has additionally been impacted on account of inflation throughout the again half of
2021 and throughout the three months ended March 31, 2022. We consider we’re
positioned to deal with continued inflationary stress because it arises; nevertheless,
many of our contracts require that we expertise sustained value will increase for an
prolonged interval of time ranging as much as 60 days earlier than we’re capable of provoke
price will increase or search cures beneath our contracts. As a consequence of the
important influence of inflation on the associated fee of offering our storage, companies
and transportation to clients, throughout the second half of 2021 we initiated
out-of-cycle price will increase in our buyer contracts (many of which comprise
provisions for inflationary worth escalators), and count on to proceed to observe
additional inflation and pricing will increase required into 2022. We can provide no
assurance that we will offset all the influence of inflation or
future inflationary value will increase via elevated storage or service prices
or by operational efficiencies.

Additionally, international provide chains have been unstable following the invasion of
Ukraine by Russia which has resulted in sanctions from the U.S. and a quantity of
European international locations. While we don’t count on our international operations and
particularly our European operations to be immediately impacted by this occasion
at the moment, adjustments might happen that might influence our operations.

Refer to “Item 1A – Risk Factors” of our 2021 Annual Report on Form 10-Okay as
filed with the SEC, in addition to Item 1A. Risk Factors on this Quarterly Report on
Form 10-Q for added info.

Acquisitions and Joint Ventures

There have been no acquisitions throughout the three months ended March 31, 2022.
Refer to Note 2 of the Notes to the Condensed Consolidated Financial Statements
and Note 3 of our 2021 Annual Report on Form 10-Okay for additional info.

Seasonality

We are concerned in offering companies to meals producers, distributors, retailers
and e-tailers whose companies, in some circumstances, are seasonal or cyclical. In
order to mitigate the volatility in our income and earnings brought on by seasonal
enterprise, we now have applied fastened dedication contracts with sure of our
clients. Our clients with fastened dedication contracts pay for assured
warehouse house with a view to keep their required stock ranges, which is
particularly useful to them during times of peak bodily occupancy. The timing
of Easter fluctuates between the primary and second quarter of the yr, nevertheless,
on common the primary and second quarter income and NOI are comparatively
constant. On a portfolio-wide foundation, bodily occupancy charges are typically
the bottom throughout May and June. Physical occupancy charges usually exhibit a
gradual enhance after May and June because of this of annual harvests and our
clients constructing inventories in reference to end-of-year holidays and
typically peak between mid-September and early December because of this thereof. The
hottest climate for our portfolio happens throughout the third quarter of the yr
leading to enhance energy expense that negatively impacts NOI, and moderates
throughout the fourth quarter. Typically, we now have larger than common bodily
occupancy ranges in October or November, which additionally tends to lead to larger
revenues. In mild of the continued
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COVID-19 pandemic, we now have seen variability in bodily occupancy ranges as
in comparison with the everyday seasonality tendencies.

Additionally, the involvement of our clients in a cross-section of the meals
business mitigates, partially, the influence of seasonality as peak demand for
numerous merchandise happens at totally different instances of the yr (for instance, demand for
ice cream is often highest in the summertime whereas demand for frozen turkeys
normally peaks within the late fall). Our southern hemisphere operations in
Australia, New Zealand and South America additionally assist stability the influence of
seasonality in our international operations, as their rising and harvesting cycles are
complementary to North America and Europe. Each of our warehouses units its personal
working hours based mostly on demand, which is closely pushed by rising seasons and
seasonal shopper demand for sure merchandise.

Foreign Currency Translation Impact on Our Operations

Our consolidated revenues and bills are topic to variations brought on by the
web impact of overseas foreign money translation on revenues and bills incurred by
our operations exterior the United States. Future fluctuations of overseas
foreign money alternate charges and their influence on our Condensed Consolidated
Statements of Operations are inherently unsure. As a consequence of the relative
measurement of our worldwide operations, these fluctuations could also be materials on our
outcomes of operations. Our revenues and bills from our worldwide
operations are usually denominated within the native foreign money of the nation in
which they’re derived or incurred. Therefore, the influence of overseas foreign money
fluctuations on our outcomes of operations and margins is partially mitigated.

The following desk exhibits a comparability of underlying common alternate charges of
the foreign currency that impacted our U.S. dollar-reported revenues and
bills throughout the durations mentioned herein along with a comparability towards
the alternate charges of such currencies on the finish of the relevant durations
offered herein. The charges beneath signify the U.S. greenback equal of one
unit of the respective overseas foreign money. Amounts offered in fixed foreign money
inside our Results of Operations are calculated by making use of the typical overseas
alternate price from the comparable prior yr interval to precise native foreign money
leads to the present interval, quite than the precise alternate charges in impact
throughout the respective interval. While fixed foreign money metrics are a non-GAAP
calculation and don’t signify precise outcomes, the comparability permits the
reader to know the influence of the underlying operations along with the
influence of altering overseas alternate charges.

Average overseas Prior interval common
alternate charges used to overseas alternate
translate precise price used to regulate precise
Foreign alternate working outcomes for Foreign alternate working outcomes for the
charges as of the three months ended charges as of three months ended March 31,
March 31, 2022 March 31, 2022 March 31, 2021 2022(1)

Argentinian peso 0.009 0.009 0.011 0.011
Australian greenback 0.748 0.724 0.760 0.773
Brazilian actual 0.211 0.192 0.178 0.183
British Pound 1.314 1.342 1.378 1.379
Canadian greenback 0.800 0.789 0.796 0.790
Chilean Peso 0.001 0.001 0.001 0.001
Euro 1.107 1.122 1.173 1.205
New Zealand greenback 0.695 0.676 0.699 0.719
Poland Zloty 0.238 0.243 0.253 0.265

(1)Represents the related common overseas alternate charges in impact within the
comparable prior interval utilized to the exercise for the present interval. The
common overseas foreign money alternate charges we apply to our working outcomes are
derived from third occasion reporting sources for the durations indicated.

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Focus on Our Operational Effectiveness and Cost Structure

We repeatedly search to execute on numerous initiatives geared toward streamlining our
enterprise processes and lowering our value construction, together with: realigning and
centralizing key enterprise processes and totally integrating acquired property and
companies; implementing standardized operational processes; integrating and
launching new info expertise instruments and platforms; instituting key
well being, security, management and coaching packages; and capitalizing on the
buying energy of our community. Through the realignment of our enterprise
processes, we now have acquired new expertise and strengthened our service choices.
In order to cut back prices in our amenities, we now have invested in vitality
effectivity tasks, together with LED lighting, thermal vitality storage,
motion-sensor expertise, variable frequency drives for our followers and
compressors, third occasion effectivity opinions and real-time monitoring of vitality
consumption, fast open and shut doorways, and alternative-power technology
applied sciences to enhance the vitality effectivity of our warehouses. We have additionally
carried out fine-tuning of our refrigeration techniques, deployed environment friendly vitality
administration practices, equivalent to time-of-use and consciousness, and have elevated our
participation in Power Demand Response packages with some of our energy
suppliers. These initiatives have allowed us to cut back our consumption of
kilowatt hours and vitality spend.

As half of our initiatives to streamline our enterprise processes and to cut back
our value construction, we now have evaluated and exited much less strategic and worthwhile
markets or enterprise traces, together with the sale of sure warehouse property, the
exit of sure leased amenities, the exit of sure managed warehouse
agreements, the exit of the China JV throughout 2019, and the sale of our quarry
enterprise throughout 2020. Through our course of of energetic portfolio administration, we
proceed to judge our markets and choices.

Strategic Shift inside Our Transportation Segment

Several years in the past, we initiated a strategic shift in our transportation section
companies and options. The intention of this strategic shift was to higher
focus our enterprise on the operation of our temperature-controlled warehouses.
Specifically, we now have regularly exited sure commoditized, non-scalable, or
low margin companies we traditionally supplied to our clients, in favor of extra
worthwhile and value-added packages, equivalent to regional, nationwide, truckload and
retailer-specific multi-vendor consolidation companies. We designed every
value-added program to enhance effectivity and cut back transportation and
logistics prices to our warehouse clients, whose transportation spend usually
represents the bulk of their supply-chain prices. We consider this effectivity
and value discount helps to drive elevated consumer retention, in addition to
keep excessive occupancy ranges in our temperature-controlled warehouses. Over
the final a number of years, we now have made important progress in implementing our
strategic initiative of rising our transportation service providing in a means
that enhances our temperature-controlled warehouse enterprise, equivalent to including a
devoted fleet service providing via acquisitions equivalent to Agro and Hall’s.
We intend to proceed executing this technique sooner or later.

Historically Significant Customer

For the three months ended March 31, 2022 and 2021, one buyer accounted for
greater than 10% of our whole revenues. For the three months ended March 31, 2022
and 2021, revenues attributable to this buyer had been $78.1 million and $65.8
million, respectively. The substantial majority of this buyer’s enterprise
pertains to our third-party managed section. We are reimbursed for considerably
all bills we incur in managing warehouses on behalf of third-party homeowners. We
acknowledge these reimbursements as revenues beneath relevant accounting steering,
however these reimbursements typically don’t have an effect on our monetary outcomes as a result of
they’re offset by the corresponding bills that we acknowledge in our
third-party managed section value of operations. Of the revenues obtained from
this buyer, $75.2 million and $61.3 million represented reimbursements for
sure bills we incurred throughout the three months ended March 31, 2022 and
2021, respectively, and had been offset by matching bills included in our third
occasion managed value of operations.
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Economic Occupancy of our Warehouses

We outline common financial occupancy as the mixture quantity of bodily
occupied pallets and any further pallets in any other case contractually dedicated
for a given interval, with out duplication. We estimate the quantity of contractually
dedicated pallet positions by considering the precise pallet dedication
laid out in every clients’ contract, and subtracting the bodily pallet
positions. We regard financial occupancy as an vital driver of our monetary
outcomes. Historically, suppliers of temperature-controlled warehouse house have
supplied storage companies to clients on an as-utilized, on-demand foundation. We
actively search to enter into contracts that implement our industrial enterprise
guidelines which ponder, amongst different issues, fastened storage commitments in
reference to establishing new buyer relationships. Additionally, we
actively search alternatives to transition our present clients to contracts
that characteristic a hard and fast storage dedication when renewing current agreements or
upon the change within the anticipated profile of our buyer. This technique
mitigates the influence of adjustments in bodily occupancy all through the course of
the yr on account of seasonality, in addition to different components that may influence bodily
occupancy whereas making certain our clients have the mandatory house they should
help their enterprise.

Throughput at our Warehouses

The degree and nature of throughput at our warehouses is a vital issue
impacting our warehouse companies revenues in our warehouse section. Throughput
refers back to the quantity of pallets that enter and exit our warehouses. Higher
ranges of throughput drive warehouse companies revenues in our warehouse section
as clients are usually billed on a foundation that takes under consideration the extent
of throughput of the products they retailer in our warehouses. The nature of
throughput could also be pushed by the anticipated flip of the underlying product or
commodity. Throughput pallets might be influenced each by the meals producers
in addition to shifts in demand preferences. Food producers’ manufacturing ranges,
which reply to market circumstances, labor availability, provide chain dynamics
and shopper preferences, could influence inbound pallets. Similarly, a change in
stock turnover on account of shift in buyer demand could influence outbound pallets.

How We Assess the Performance of Our Business

Segment Contribution (Net Operating Income or “NOI”)

We consider the efficiency of our major enterprise segments based mostly on their
contribution (NOI) to our total outcomes of operations. We use the time period
“section contribution (NOI)” to imply a section’s revenues much less its value of
operations (excluding any depreciation and amortization, impairment prices,
corporate-level promoting, common and administrative bills and corporate-level
acquisition, litigation and different, web). We use section contribution (NOI) to
consider our segments for functions of making working choices and assessing
efficiency in accordance with FASB ASC, Topic 280, Segment Reporting.

We additionally analyze the “section contribution (NOI) margin” for every of our enterprise
segments, which we calculate as section contribution (NOI) divided by section
revenues.

In addition to our section contribution (NOI) and section contribution (NOI)
margin, we analyze the contribution (NOI) of our warehouse hire and storage
operations and our warehouse companies operations inside our warehouse section.
We calculate the contribution (NOI) of our warehouse hire and storage operations
as hire and storage revenues much less energy and different amenities value. We calculate
the contribution (NOI) of our warehouse companies operations as warehouse
companies revenues much less labor and different service prices. We calculate the
contribution (NOI) margin for every of these operations because the relevant
contribution (NOI) measure divided by the relevant income measure. We consider
the presentation of these contribution (NOI) and contribution (NOI) margin
measures helps traders perceive the relative revenues, prices and earnings
ensuing from every of these
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separate varieties of companies we offer to our clients in the identical method
reviewed by our administration in reference to the operation of our enterprise.
These contribution (NOI) measures inside our warehouse section usually are not
measurements of monetary efficiency beneath U.S. GAAP, and these measures ought to
be thought-about as dietary supplements, however not as alternate options, to our outcomes calculated
in accordance with U.S. GAAP. We present reconciliations of these measures in
the discussions of our comparative outcomes of operations beneath.

Same Store Analysis

We outline our “identical retailer” inhabitants annually firstly of the
present calendar yr. Our identical retailer inhabitants contains properties that had been
owned or leased for the whole thing of two comparable durations and which have
reported a minimum of twelve months of consecutive normalized operations previous to
January 1 of the prior calendar yr. We outline “normalized operations” as
properties which have been open for operation or lease after improvement or
important modification, together with the enlargement of a warehouse footprint or a
warehouse rehabilitation subsequent to an occasion, equivalent to a pure catastrophe or
related occasion inflicting disruption to operations. In addition, our definition of
“normalized operations” takes under consideration adjustments within the possession construction
(e.g., buy of a beforehand leased warehouse would lead to totally different
prices within the in contrast durations), which might influence comparability in our
warehouse section contribution (NOI).

Acquired properties might be included within the “identical retailer” inhabitants if owned by
us as of the primary enterprise day of every year, of the prior calendar yr and
nonetheless owned by us as of the top of the present reporting interval, until the
property is beneath improvement. The “identical retailer” pool can also be adjusted to take away
properties that had been offered or getting into improvement subsequent to the start of
the present calendar yr. As such, the “identical retailer” inhabitants for the interval
ended March 31, 2022 contains all properties that we owned at January 3, which
had each been owned and had reached “normalized operations” by January 3, 2022.

We calculate “identical retailer contribution (NOI)” as revenues for a similar retailer
inhabitants much less its value of operations (excluding any depreciation and
amortization, impairment prices, corporate-level promoting, common and
administrative bills, corporate-level acquisition, litigation and different, web
and achieve or loss on sale of actual property). In order to derive an applicable
measure of period-to-period working efficiency, we additionally calculate our identical
retailer contribution (NOI) on a continuing foreign money foundation to take away the consequences of
overseas foreign money alternate price actions through the use of the comparable prior interval
alternate price to translate from native foreign money into U.S. {dollars} for each
durations. We consider the efficiency of the warehouses we personal or lease utilizing a
“identical retailer” evaluation, and we consider that very same retailer contribution (NOI) is
useful to traders as a supplemental efficiency measure as a result of it contains
the working efficiency from the inhabitants of properties that’s constant
from interval to interval and additionally on a continuing foreign money foundation, thereby eliminating
the consequences of adjustments within the composition of our warehouse portfolio and
foreign money fluctuations on efficiency measures.

The following desk exhibits the quantity of same-store warehouses in our portfolio
as of March 31, 2022. The quantity of warehouses owned or operated in as of
March 31, 2022 and excluded as same-store warehouses for the interval ended
March 31, 2022 is listed beneath. While not included within the non-same retailer
warehouse depend within the desk beneath, the outcomes of operations for the non-same
retailer warehouses contains the partial interval influence of websites that had been exited
throughout the durations offered.

Total Warehouses 249
Same Store Warehouses 215
Non-Same Store Warehouses (1) 25
Third-Party Managed Warehouses 9

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(1) During the primary quarter of 2022, we ceased operations at a facility which
we’re getting ready to lease, which is now included within the non-same retailer
inhabitants because of this. Additionally, we exited a leased facility that had been
lately acquired in reference to the Lago Cold Stores acquisition.

As of March 31, 2022, our portfolio consisted of 249 whole warehouses, together with
240 throughout the warehouse section and 9 within the third-party managed section. In
addition, we maintain minority pursuits in two Brazilian joint ventures, Superfrio,
which owns or operates 33 temperature-controlled warehouses, and Comfrio, which
owns or operates 27 temperature-controlled warehouses.

Same retailer contribution (NOI) shouldn’t be a measurement of monetary efficiency
beneath U.S. GAAP. In addition, different corporations offering temperature-controlled
warehouse storage and dealing with and different warehouse companies could not outline identical
retailer or calculate identical retailer contribution (NOI) in a way in line with our
definition or calculation. Same retailer contribution (NOI) needs to be thought-about as
a complement, however not instead, to our outcomes calculated in accordance
with U.S. GAAP. We present reconciliations of these measures within the discussions
of our comparative outcomes of operations beneath.

Constant Currency Metrics

As mentioned above beneath “Key Factors Affecting Our Business and Financial
Results-Foreign Currency Translation Impact on Our Operations,” our consolidated
revenues and bills are topic to variations exterior our management which are
brought on by the online impact of overseas foreign money translation on revenues generated
and bills incurred by our operations exterior the United States. As a consequence,
with a view to present a framework for assessing how our underlying companies
carried out excluding the impact of overseas foreign money fluctuations, we analyze our
enterprise efficiency based mostly on sure fixed foreign money reporting that
represents present interval outcomes translated into U.S. {dollars} on the related
common overseas alternate charges relevant within the comparable prior interval. We
consider that the presentation of fixed foreign money outcomes offers a
measurement of our ongoing operations that’s significant to traders as a result of it
excludes the influence of these overseas foreign money actions that we can’t management.
Constant foreign money outcomes usually are not measurements of monetary efficiency beneath
U.S. GAAP, and our fixed foreign money outcomes needs to be thought-about as a
complement, however not instead, to our outcomes calculated in accordance
with U.S. GAAP. The fixed foreign money efficiency measures shouldn’t be
thought-about an alternative choice to, or superior to, the measures of monetary
efficiency ready in accordance with U.S. GAAP. We present reconciliations of
these measures within the discussions of our comparative outcomes of operations
beneath. Our dialogue of the drivers of our efficiency beneath are based mostly upon
U.S. GAAP.
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Comparison of Results for the Three Months Ended March 31, 2022 and 2021

Warehouse Segment

The following desk presents the working outcomes of our warehouse section for
the three months ended March 31, 2022 and 2021.

Three Months Ended March 31, Change
2022 fixed Constant
2022 precise foreign money(1) 2021 precise Actual foreign money
(Dollars in hundreds)
Rent and storage $ 229,757 $ 232,445 $ 205,275 11.9 % 13.2 %
Warehouse companies 311,168 316,277 280,176 11.1 % 12.9 %
Total warehouse section revenues 540,925 548,722 485,451 11.4 % 13.0 %

Power 33,035 33,626 26,204 26.1 % 28.3 %
Other amenities prices (2) 56,572 57,359 50,532 12.0 % 13.5 %
Labor 244,160 247,869 214,547 13.8 % 15.5 %
Other companies prices (3) 60,900 61,910 47,987 26.9 % 29.0 %
Total warehouse section value of
operations $ 394,667 $ 400,764 $ 339,270 16.3 % 18.1 %

Warehouse section contribution (NOI) $ 146,258 $ 147,958
$ 146,181 0.1 % 1.2 %
Warehouse hire and storage contribution
(NOI) (4) $ 140,150 $ 141,460 $ 128,539 9.0 % 10.1 %
Warehouse companies contribution (NOI)
(5) $ 6,108 $ 6,498 $ 17,642 (65.4) % (63.2) %

Total warehouse section margin 27.0 % 27.0 % 30.1 % -307 bps -315 bps
Rent and storage margin(6) 61.0 % 60.9 % 62.6 % -162 bps -176 bps
Warehouse companies margin(7) 2.0 % 2.1 % 6.3 % -433 bps -424 bps

(1)The changes from our U.S. GAAP working outcomes to calculate our
working outcomes on a continuing foreign money foundation are the impact of adjustments in
overseas foreign money alternate charges relative to the comparable prior interval.
(2)Includes actual property hire expense of $10.6 million and $9.3 million, on an
precise foundation, for the three months ended March 31, 2022 and 2021, respectively.
(3)Includes non-real property hire expense (tools lease and leases) of
$3.1 million and $2.9 million, on an precise foundation, for the three months ended
March 31, 2022 and 2021, respectively.
(4)Calculated as hire and storage revenues much less energy and different amenities
prices.
(5)Calculated as warehouse companies revenues much less labor and different companies
prices.
(6)Calculated as warehouse hire and storage contribution (NOI) divided by
warehouse hire and storage revenues.
(7)Calculated as warehouse companies contribution (NOI) divided by warehouse
companies revenues.

Warehouse section revenues had been $540.9 million for the three months ended
March 31, 2022 a rise of $55.5 million, or 11.4%, in comparison with $485.5
million for the three months ended March 31, 2021. On a continuing foreign money foundation,
our warehouse section revenues had been $548.7 million for the three months ended
March 31, 2022, a rise of $63.3 million, or 13.0%, from the three months
ended March 31, 2021. Approximately $29.6 million of the rise, on an precise
foreign money foundation, was pushed by acquisitions accomplished throughout 2021, together with the
progress skilled period-over-period throughout overlapping durations of possession.
We acquired 4 amenities on March 1, 2021 because of this of the Liberty
acquisition, two amenities on May 5, 2021 because of this of the KMT Brrr!
acquisition, one facility on May 28, 2021 because of this of the Bowman Stores
acquisition, two amenities on August 2, 2021 because of this of the ColdCo
acquisition, one facility on September 1, 2021 because of this of the Newark
Facility Management acquisition and two amenities on November 15, 2021 as a
consequence of the Lago Cold Stores acquisition (one leased facility exited upon
expiration throughout the first quarter of 2022), and subsequently we didn’t have
possession of these amenities for the whole thing of the prior comparable interval.
Revenue progress was additionally on account of contractual and market-driven price escalations in
the identical retailer inhabitants and our lately accomplished

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developments. This was partially offset by the timing of throughput related
with the Easter vacation and COVID-19 and the associated labor challenges which
continued to influence meals manufacturing. The overseas foreign money translation of
revenues earned by our overseas operations had a $7.8 million unfavorable influence
throughout the three months ended March 31, 2022, which was primarily pushed by the
weakening of the U.S. greenback over the native currencies in our overseas
subsidiaries.

Warehouse section value of operations was $394.7 million for the three months
ended March 31, 2022, a rise of $55.4 million, or 16.3%, in comparison with the
three months ended March 31, 2021. On a continuing foreign money foundation, our warehouse
section value of operations was $400.8 million for the three months ended
March 31, 2022, a rise of $61.5 million, or 18.1%, from the three months
ended March 31, 2021. Approximately $22.0 million of the rise, on an precise
foundation, was pushed by the extra amenities within the warehouse section we
acquired in reference to the aforementioned acquisitions. In addition, we
incurred will increase in our value of operations, particularly together with energy,
labor and journey, property tax, provides and tools upkeep, all of which
are reflective of elevated inflation. Labor was additionally impacted by worker
absenteeism and related disruption all through the primary quarter of 2022 due
to the Omicron variant. We additionally incurred larger prices associated to our lately
accomplished enlargement and improvement tasks. Additionally, the overseas foreign money
translation of bills incurred by our overseas operations had a web $6.1
million favorable influence throughout the three months ended March 31, 2022.

For the three months ended March 31, 2022, warehouse section contribution (NOI),
elevated $0.1 million, or 0.1%, to $146.3 million for the three months ended
March 31, 2022, in comparison with $146.2 million for the three months ended March 31,
2021. The overseas foreign money translation of our outcomes of operations had a
$1.7 million unfavorable influence to the warehouse section contribution
period-over-period. On a continuing foreign money foundation, warehouse section NOI
elevated $1.8 million period-over-period. Approximately $7.7 million of the
enhance, on an precise foundation, was pushed by the extra amenities within the
warehouse section because of this of the aforementioned acquisitions, together with the
progress and synergies skilled period-over-period throughout overlapping durations
of possession. The enhance was additionally pushed by contractual and market-driven price
escalations, offset by value will increase pushed primarily by inflation, larger
prices associated to our lately accomplished enlargement and improvement tasks, and
decrease throughput as a result of timing of throughput related to the Easter
vacation and the continued provide chain disruption. Our NOI was additionally unfavorably
impacted by the foreign money translation influence of the weakening of the U.S. greenback.

Same Store and Non-Same Store Analysis

We had 215 identical shops for the three months ended March 31, 2022. Please see
“How We Assess the Performance of Our Business-Same Store Analysis” above for a
reconciliation of the change in the identical retailer portfolio from interval to interval.
Amounts associated to the acquisitions of Bowman Stores, ColdCo, KMT Brrr!, Lago
Cold Stores, Liberty, Newark, one lately leased warehouse in Australia, a
lately constructed facility in Denver bought in November 2021, in addition to
sure enlargement and improvement tasks not but stabilized are mirrored
inside non-same retailer outcomes.

The following desk presents revenues, value of operations, contribution (NOI)
and margins for our identical shops and non-same shops with a reconciliation to the
whole monetary metrics of our warehouse section for the three months ended
March 31, 2022 and 2021.

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Three Months Ended March 31, Change
2022 fixed Constant
2022 precise foreign money(1) 2021 precise Actual foreign money
Number of identical retailer websites 215 215 n/a n/a
Same retailer revenues: (Dollars in hundreds)
Rent and storage $ 204,273 $ 206,643 $ 194,203 5.2 % 6.4 %
Warehouse companies 279,116 283,913 268,591 3.9 % 5.7 %
Total identical retailer revenues 483,389 490,556 462,794 4.5 % 6.0 %
Same retailer value of operations:
Power 28,719 29,239 24,776 15.9 % 18.0 %
Other amenities prices 49,139 49,818 46,727 5.2 % 6.6 %
Labor 214,425 217,895 200,950 6.7 % 8.4 %
Other companies prices 52,050 53,000 44,448 17.1 % 19.2 %

Total identical retailer value of operations $ 344,333 $ 349,952

$ 316,901 8.7 % 10.4 %

Same retailer contribution (NOI) $ 139,056 $ 140,604 $ 145,893 (4.7) % (3.6) %
Same retailer hire and storage
contribution (NOI)(2) $ 126,415 $ 127,586 $ 122,700 3.0 % 4.0 %
Same retailer companies contribution
(NOI)(3) $ 12,641 $ 13,018 $ 23,193 (45.5) % (43.9) %

Total identical retailer margin 28.8 % 28.7 % 31.5 % -276 bps -286 bps
Same retailer hire and storage margin(4) 61.9 % 61.7 % 63.2 % -130 bps -144 bps
Same retailer companies margin(5) 4.5 % 4.6 % 8.6 % -411 bps -405 bps

Three Months Ended March 31, Change
2022 fixed
2022 precise foreign money(1) 2021 precise Actual Constant foreign money
Number of non-same retailer websites 25 18 n/a n/a
Non-same retailer revenues: (Dollars in hundreds)
Rent and storage $ 25,484 $ 25,802 $ 11,072 n/r n/r
Warehouse companies 32,052 32,364 11,585 n/r n/r
Total non-same retailer revenues 57,536 58,166 22,657 n/r n/r
Non-same retailer value of operations:
Power 4,316 4,388 1,428 n/r n/r
Other amenities prices 7,433 7,541 3,805 n/r n/r
Labor 29,735 29,974 13,597 n/r n/r
Other companies prices 8,850 8,909 3,539 n/r n/r
Total non-same retailer value of
operations $ 50,334 $ 50,812 $ 22,369 n/r n/r

Non-same retailer contribution (NOI) $ 7,202 $ 7,354
$ 288 n/r n/r
Non-same retailer hire and storage
contribution (NOI)(2) $ 13,735 $ 13,873 $ 5,839 n/r n/r
Non-same retailer companies contribution
(NOI)(3) $ (6,533) $ (6,519) $ (5,551) n/r n/r

Total non-same retailer margin 12.5 % 12.6 % 1.3 % n/r n/r
Non-same retailer hire and storage
margin(4) 53.9 % 53.8 % 52.7 % n/r n/r
Non-same retailer companies margin(5) (20.4) % (20.1) % (47.9) % n/r n/r

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Three Months Ended March 31, Change
2022 fixed Constant
2022 precise foreign money(1) 2021 precise Actual foreign money

Total warehouse section revenues $ 540,925 $ 548,722
$ 485,451 11.4 % 13.0 %

Total warehouse value of operations $ 394,667 $ 400,764
$ 339,270 16.3 % 18.1 %

Total warehouse section contribution $ 146,258 $ 147,958
$ 146,181 0.1 % 1.2 %

(1)The changes from our U.S. GAAP working outcomes to calculate our
working outcomes on a continuing foreign money foundation is the impact of adjustments in
overseas foreign money alternate charges relative to the comparable prior interval.
(2)Calculated as hire and storage revenues much less energy and different amenities
prices.
(3)Calculated as warehouse companies revenues much less labor and different companies
prices.
(4)Calculated as hire and storage contribution (NOI) divided by hire and storage
revenues.
(5)Calculated as warehouse companies contribution (NOI) divided by warehouse
companies revenues.
(6)Non-same retailer warehouse depend of 25 contains one lately leased warehouse
in Australia, one lately constructed facility in Denver we bought in
November 2021, three amenities acquired via the Lago Cold Stores
acquisition on November 15, 2021, one warehouse acquired via the Newark
Facility Management acquisition on September 1, 2021, two amenities acquired
via the ColdCo acquisition on August 2, 2021, one warehouse acquired via
the Bowman shops acquisition on May 28, 2021, two warehouses acquired via
the KMT Brrr! acquisition on May 5, 2021, 4 warehouses acquired via the
Liberty Freezers acquisition on March 1, 2021, and 11 amenities beneath
improvement or enlargement. During the third quarter of 2021, a leased facility
from the Liberty Freezers acquisition was exited upon expiration of the lease.
During the primary quarter of 2022, a leased facility from the Lago Cold Stores
acquisition was exited upon expiration of the lease, and we ceased operations
inside a facility that’s being ready for lease to a third-party. The outcomes
of the amenities exited are included within the outcomes above, and the outcomes of
these acquisitions are mirrored within the outcomes above since date of possession.
n/a – not relevant, the change in precise and fixed foreign money metrics does
not apply to website depend
n/r – not related

The following desk offers sure working metrics to clarify the drivers of
our identical retailer efficiency.

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Three Months
Ended March 31,
Units in hundreds besides per pallet and website quantity
knowledge – unaudited
2022 2021 Change
Number of identical retailer websites 215 215 n/a
Same retailer hire and storage:

Economic occupancy(1)
Average occupied financial pallets 3,797 3,768 0.8 %
Economic occupancy proportion 77.6 % 77.4 % 22 bps
Same retailer hire and storage revenues per financial
occupied pallet $ 53.80 $ 51.55 4.4 %
Constant foreign money identical retailer hire and storage
revenues per financial occupied pallet $ 54.43 $ 51.55 5.6 %

Physical occupancy(2)
Average bodily occupied pallets 3,456 3,442 0.4 %
Average bodily pallet positions 4,892 4,869 0.5 %
Physical occupancy proportion 70.7 % 70.7 % -4 bps
Same retailer hire and storage revenues per bodily
occupied pallet $ 59.10 $ 56.43 4.7 %
Constant foreign money identical retailer hire and storage
revenues per bodily occupied pallet $ 59.79 $ 56.43 6.0 %

Same retailer warehouse companies:
Throughput pallets (in hundreds) 8,893 8,947 (0.6) %

Same retailer warehouse companies revenues per throughput
pallet
$ 31.38 $ 30.02 4.5 %
Constant foreign money identical retailer warehouse companies
revenues per throughput pallet $ 31.92 $ 30.02 6.3 %

Number of non-same retailer websites(3) 25 18 n/a

Non-same retailer hire and storage:

Economic occupancy(1)
Average financial occupied pallets 377 205 n/r
Economic occupancy proportion 69.2 % 70.7 % n/r

Non-same retailer hire and storage revenues per financial
occupied pallet
$ 67.62 $ 53.97 n/r
Constant foreign money non-same retailer hire and storage
revenues per financial occupied pallet $ 68.46 $ 53.97 n/r

Physical occupancy(2)
Average bodily occupied pallets 348 186 n/r
Average bodily pallet positions 545 290 n/r
Physical occupancy proportion 63.9 % 64.0 % n/r

Non-same retailer hire and storage revenues per bodily
occupied pallet
$ 73.19 $ 59.64 n/r
Constant foreign money non-same retailer hire and storage
revenues per bodily occupied pallet $ 74.11 $ 59.64 n/r

Non-same retailer warehouse companies:
Throughput pallets (in hundreds) 966 584 n/r
Non-same retailer warehouse companies revenues per
throughput pallet $ 33.19 $ 19.83 n/r

Constant foreign money non-same retailer warehouse companies
revenues per throughput pallet
$ 33.51 $ 19.83 n/r

(1)We outline common financial occupancy as the mixture quantity of bodily
occupied pallets and any further pallets in any other case contractually dedicated
for a given interval, with out duplication. We estimate the quantity of contractually
dedicated pallet positions by considering precise pallet commitments
laid out in every buyer’s contract, and subtracting the bodily pallet
positions.
42

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(2)We outline common bodily occupancy as the typical quantity of occupied
pallets divided by the estimated quantity of common bodily pallet positions in
our warehouses for the relevant interval. We estimate the quantity of bodily
pallet positions by considering precise racked house and by estimating
unracked house on an as-if racked foundation. We base this estimate on a method
using the whole cubic ft of every room throughout the warehouse that’s
unracked divided by the amount of an assumed rack house that’s in line with
the traits of the related warehouse. On a warehouse by warehouse
foundation, rack house typically ranges from three to 4 ft relying upon the
kind of facility and the character of the shopper items saved therein. The quantity
of our pallet positions is reviewed and up to date quarterly, considering
adjustments in racking configurations and room utilization.

(3)Non-same retailer warehouse depend of 25 contains one lately leased warehouse
in Australia, one lately constructed facility in Denver we bought in
November 2021, three amenities acquired via the Lago Cold Stores
acquisition on November 15, 2021, one warehouse acquired via the Newark
Facility Management acquisition on September 1, 2021, two amenities acquired
via the ColdCo acquisition on August 2, 2021, one warehouse acquired via
the Bowman shops acquisition on May 28, 2021, two warehouses acquired via
the KMT Brrr! acquisition on May 5, 2021, 4 warehouses acquired via the
Liberty Freezers acquisition on March 1, 2021, and 11 amenities beneath
improvement or enlargement. During the third quarter of 2021, a leased facility
from the Liberty Freezers acquisition was exited upon expiration of the lease.
During the primary quarter of 2022, a leased facility from the Lago Cold Stores
acquisition was exited upon expiration of the lease, and we ceased operations
inside a facility that’s being ready for lease to a third-party. The outcomes
of the amenities exited are included within the outcomes above, and the outcomes of
these acquisitions are mirrored within the outcomes above since date of possession.

(4)n/r – not related

Economic occupancy at our identical shops was 77.6% for the three months ended
March 31, 2022, a enhance of 22 foundation factors in comparison with 77.4% for the three
months ended March 31, 2021. Storage ranges had been in line with prior yr
ranges partially as a result of timing of the seasonal construct of stock previous to
the Easter vacation. Easter fell on April seventeenth of 2022 and April 4th of 2021,
which elevated occupancy for March however was nonetheless offset by continued meals
manufacturing challenges however secure finish shopper demand all through the primary
quarter of 2022. COVID-related provide chain and labor disruptions proceed to
influence the worldwide meals provide chain. Throughout the primary quarter of 2022, our
clients’ manufacturing was impacted by absenteeism on account of a surge in COVID-19
circumstances as a result of Omicron variant. Even after the Omicron wave receded, the labor
market stays very difficult, which continues to pressure our clients’
capability to provide at pre-COVID ranges. Our first quarter 2022 financial
occupancy at our identical shops was 696 foundation factors larger than our corresponding
common bodily occupancy of 70.7%. The lower of 4 foundation factors in common
bodily occupancy in comparison with 70.7% for the three months ended March 31, 2021
was pushed by provide chain disruptions. Same retailer hire and storage revenues per
financial occupied pallet elevated 4.4% period-over-period, primarily pushed by
enhancements in our industrial phrases and contractual and market-driven price
escalations, partially offset by unfavorable overseas foreign money translation. On a
fixed foreign money foundation, our identical retailer hire and storage revenues per occupied
pallet elevated 5.6% period-over-period.

Throughput pallets at our identical shops had been 8.9 million pallets for the three
months ended March 31, 2022, a lower of 0.6% from the three months ended
March 31, 2021. This lower was the consequence of the timing of throughput
related to the Easter vacation and the COVID-19 associated impacts. As meals
producers manufacturing has not reached full pre-pandemic capability, throughput
has been impacted. Food producers have been unable to rebuild holdings in
the availability chain on account of challenges within the labor market and larger absences due
to the Omicron variant throughout the first quarter of 2022. Same retailer warehouse
companies revenues per throughput pallet elevated 4.5% period-over-period, as a
consequence of contractual and market-driven price escalations and a rise in
larger priced value-added companies throughout the retail sector equivalent to
case-picking, blast freezing and repackaging and contractual price escalations,
partially offset by unfavorable overseas foreign money translation as beforehand
mentioned. On a continuing foreign money foundation, our identical retailer companies revenues per
throughput pallet elevated 6.3% from the three months ended March 31, 2021.

Third-Party Managed Segment

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The following desk presents the working outcomes of our third-party managed
section for the three months ended March 31, 2022 and 2021.

Three Months Ended March 31, Change
2022 fixed Constant
2022 precise foreign money(1) 2021 precise Actual foreign money
Number of managed websites 9 9 n/a n/a
(Dollars in hundreds)
Third-party managed revenues $ 85,860 $ 86,199 $ 73,072 17.5 % 18.0 %
Third-party managed value of operations 82,359 82,631 68,690 19.9 % 20.3 %
Third-party managed section
contribution $ 3,501 $ 3,568 $ 4,382 (20.1) % (18.6) %

Third-party managed margin 4.1 % 4.1 % 6.0 % -192 bps -186 bps

Third-party managed revenues had been $85.9 million for the three months ended
March 31, 2022, a rise of $12.8 million, or 17.5%, in comparison with
$73.1 million for the three months ended March 31, 2021. On a continuing foreign money
foundation, third-party managed revenues had been $86.2 million for the three months
ended March 31, 2022, a rise of $13.1 million, or 18.0%, from the three
months ended March 31, 2021. The enhance was a consequence of larger enterprise quantity
in our home managed operations paired with larger pass-through prices
related to this enterprise, primarily labor and associated prices on account of
inflation and the difficult labor market.

Third-party managed value of operations was $82.4 million for the three months
ended March 31, 2022, a rise of $13.7 million, or 19.9%, in comparison with
$68.7 million for the three months ended March 31, 2021. On a continuing foreign money
foundation, third-party managed value of operations was $82.6 million for the three
months ended March 31, 2022, a rise of $13.9 million, or 20.3%, from the
three months ended March 31, 2021. Third-party managed value of operations
elevated because of this of the income tendencies described above.

Third-party managed section contribution (NOI) was $3.5 million for the three
months ended March 31, 2022, a lower of $0.9 million, or 20.1%, in comparison with
$4.4 million for the three months ended March 31, 2021. On a continuing foreign money
foundation, third-party managed section contribution (NOI) was $3.6 million for the
three months ended March 31, 2022, a lower of $0.8 million, or 18.6%.

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Transportation Segment

The following desk presents the working outcomes of our transportation section
for the three months ended March 31, 2022 and 2021.

Three Months Ended March 31, Change
2022 fixed Constant
2022 precise foreign money(1) 2021 precise Actual foreign money
(Dollars in hundreds)
Transportation revenues $ 78,910 $ 80,952 $ 76,272 3.5 % 6.1 %

Total transportation value of operations 70,381 72,238 69,569 1.2 % 3.8 %

Transportation section contribution (NOI) $ 8,529 $ 8,714

$ 6,703 27.2 % 30.0 %

Transportation margin 10.8 % 10.8 % 8.8 % 202 bps 198 bps

Transportation revenues had been $78.9 million for the three months ended March 31,
2022, a rise of $2.6 million, or 3.5%, in comparison with $76.3 million for the
three months ended March 31, 2021. On a continuing foreign money foundation, transportation
revenues had been $81.0 million for the three months ended March 31, 2022, an
enhance of $4.7 million, or 6.1%, from the three months ended March 31, 2021.
The enhance was primarily on account of larger charges in our consolidation enterprise,
the KMT Brrr! acquisition which closed in early May 2021, acquisitions and
expansions in Australia, and the upper income related to brokered
transporation prices, inflation in wage and gas charges and capability surcharges
on account of challenges with driver availability. This is partially offset by the online
lower in income from the rationalization of sure home market
operations and the unfavorable influence of overseas foreign money translation.

Transportation value of operations was $70.4 million for the three months ended
March 31, 2022, a rise of $0.8 million, or 1.2%, in comparison with $69.6 million
for the three months ended March 31, 2021. On a continuing foreign money foundation,
transportation value of operations was $72.2 million for the three months ended
March 31, 2022, a rise of $2.7 million, or 3.8%, from the three months
ended March 31, 2021. The enhance was on account of capability constraints driving spot
market larger than contract price, which has prompted a rise in provider charges,
larger wage and gas prices impacted by inflation and the acquisitions talked about
above. This is partially offset by the online lower of prices from the exit of
sure home market operations and favorable influence of overseas foreign money
translation.

Transportation section contribution (NOI) was $8.5 million for the three months
ended March 31, 2022, a rise of $1.8 million in comparison with the three months
ended March 31, 2021. Transportation section margin elevated 202 foundation factors
from the three months ended March 31, 2021, to 10.8% from 8.8%. On a continuing
foreign money foundation, transportation section contribution was $8.7 million for the
three months ended March 31, 2022, a rise of $2.0 million in comparison with the
three months ended March 31, 2021. The enhance in margin was primarily on account of
the speed will increase applied throughout the first quarter of 2022.

Other Consolidated Operating Expenses

Depreciation and amortization. Depreciation and amortization expense was
$82.6 million for the three months ended March 31, 2022, a rise of
$5.4 million, or 7.0%, in comparison with $77.2 million for the three months ended
March 31, 2021. This enhance was primarily as a result of acquisitions and lately
accomplished developments in 2021.

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Selling, common and administrative. Corporate-level promoting, common and
administrative bills had been $57.6 million for the three months ended March 31,
2022, a rise of $12.6 million, or 27.9%, in comparison with $45.1 million for the
three months ended March 31, 2021. Included in these quantities are enterprise
improvement bills attributable to new enterprise pursuits, provide chain
options and underwriting, facility improvement, buyer on-boarding, and
engineering and consulting companies to help our clients within the chilly chain.
We consider these prices are similar to leasing prices for different publicly-traded
REITs. The enhance was pushed by larger third-party authorized and skilled
charges, the resumption of performance-based compensation expense in connection
with the short-term incentive plan and larger share-based compensation expense
in reference to the November 2021 retention grant.

Acquisition, litigation and different, web. Corporate-level acquisition, litigation
and different, web bills had been $10.1 million for the three months ended March 31,
2022, a lower of $10.7 million in comparison with the three months ended March 31,
2021. During the three months ended March 31, 2022, we incurred $6.3 million of
acquisition and integration associated bills, an combination $2.6 million of
severance associated bills as a result of realignment of sure worldwide
operations and management adjustments and $1.2 million of litigation charges. During
the three months ended March 31, 2021, we incurred $13.5 million of acquisition
associated bills composed of skilled charges and integration associated prices in
reference to accomplished and potential acquisitions, primarily associated to the
Agro acquisition. We additionally incurred $4.8 million of prices associated to the cyber
occasion that occurred in late 2020 and $2.4 million of severance in our
worldwide operations and because of this of synergies from our lately
accomplished acquisitions.

Other Expense and Income

The following desk presents different objects of earnings and expense for the three
months ended March 31, 2022 and 2021.

Three Months Ended March 31, Change
2022 2021 %
Other (expense) earnings: (Dollars in hundreds)
Interest expense $ (25,773) $ (25,956) (0.7) %
Loss on debt extinguishment, modifications and
termination of by-product devices $ (616) $ (3,499) (82.4) %
Other, web $ 245 $ 176 39.2 %

Interest expense. Interest expense was $25.8 million for the three months ended
March 31, 2022, a lower of $0.2 million, or 0.7%, in comparison with $26.0 million
for the three months ended March 31, 2021. The lower was primarily on account of a
lower in our total efficient rate of interest. The efficient rate of interest of
our excellent debt has decreased from 3.31% for the three months ended
March 31, 2021 to three.06% for the three months ended March 31, 2022, nevertheless,
excellent principal has elevated from $2.4 billion as of March 31, 2021 to
$2.9 billion as of March 31, 2022.

Loss on debt extinguishment, modifications and termination of by-product
devices. Loss on debt extinguishment, modifications, and termination of
by-product devices of $0.6 million for the three months ended March 31, 2022
decreased as in comparison with the three months ended March 31, 2021 primarily on account of
the early compensation of $200 million of principal on the Senior Unsecured Term
Loan A Facility throughout the first quarter of 2021, which resulted in a cost of
$2.9 million for the write-off of unamortized deferred financing prices.
Additionally, throughout every of the three months ended March 31, 2022 and 2021, we
recorded a $0.6 million cost for the amortization of charges paid for the
rate of interest swaps terminated throughout 2020.

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Income Tax Benefit

Income tax profit for the three months ended March 31, 2022 was $0.7 million, a
lower of $0.1 million when in comparison with $0.8 million for the three months
ended March 31, 2021. The present tax expense and deferred earnings tax profit is
constant on account of comparable working leads to each durations.
47

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Non-GAAP Financial Measures

We use the next non-GAAP monetary measures as supplemental efficiency
measures of our enterprise: FFO, Core FFO, Adjusted FFO, EBITDAre and Core EBITDA.

We calculate funds from operations, or FFO, in accordance with the requirements established by
the Board of Governors of the National Association of Real Estate Investment Trusts, or
NAREIT. NAREIT defines FFO as web earnings or loss decided in accordance with U.S. GAAP,
excluding extraordinary objects as outlined beneath U.S. GAAP and positive factors or losses from gross sales of
beforehand depreciated working actual property property, plus specified non-cash objects, equivalent to
actual property asset depreciation and amortization and our share of reconciling objects for
partially owned entities. We consider that FFO is useful to traders as a supplemental
efficiency measure as a result of it excludes the impact of depreciation, amortization and positive factors
or losses from gross sales of actual property, all of that are based mostly on historic prices, which
implicitly assumes that the worth of actual property diminishes predictably over time. Since
actual property values as an alternative have traditionally risen or fallen with market circumstances, FFO can
facilitate comparisons of working efficiency between durations and amongst different fairness
REITs.
We calculate core funds from operations, or Core FFO, as FFO adjusted for the consequences of
achieve or loss on the sale of non-real property property, acquisition, litigation and different, web,
share-based compensation expense for the IPO retention grants, loss on debt extinguishment,
modifications and termination of by-product devices and overseas foreign money alternate loss.
We additionally modify for the influence of Core FFO attributable to partially owned entities. We have
elected to mirror our share of Core FFO attributable to partially owned entities because the
Brazil joint ventures are strategic partnerships, which we proceed to actively take part
in on an ongoing foundation. The earlier three way partnership, the China JV, was thought-about for
disposition throughout the durations offered. We consider that Core FFO is useful to traders
as a supplemental efficiency measure as a result of it excludes the consequences of sure objects which
can create important earnings volatility, however which don’t immediately relate to our core
enterprise operations. We consider Core FFO can facilitate comparisons of working efficiency
between durations, whereas additionally offering a extra significant predictor of future earnings
potential.
However, as a result of FFO and Core FFO add again actual property depreciation and amortization and do
not seize the extent of upkeep capital expenditures vital to keep up the
working efficiency of our properties, each of which have materials financial impacts on our
outcomes from operations, we consider the utility of FFO and Core FFO as a measure of our
efficiency could also be restricted.
We calculate adjusted funds from operations, or Adjusted FFO, as Core FFO adjusted for the
results of amortization of deferred financing prices and pension withdrawal legal responsibility,
amortization of above or beneath market leases, straight-line web hire, profit from deferred
earnings taxes, share-based compensation expense from grants of inventory choices and restricted
inventory items beneath our fairness incentive plans, excluding IPO grants, non-real property
depreciation and amortization and upkeep capital expenditures. We additionally modify for AFFO
attributable to our share of reconciling objects of partially owned entities. We consider that
Adjusted FFO is useful to traders as a significant supplemental comparative efficiency
measure of our capability to make incremental capital investments in our enterprise and to evaluate
our capability to fund distribution necessities from our working actions.
FFO, Core FFO and Adjusted FFO are utilized by administration, traders and business analysts as
supplemental measures of working efficiency of fairness REITs. FFO, Core FFO and Adjusted
FFO needs to be evaluated together with U.S. GAAP web earnings and web earnings per diluted share
(probably the most immediately comparable U.S. GAAP measures) in evaluating our working efficiency.
FFO, Core FFO and Adjusted FFO don’t signify web earnings or money flows from working
actions in accordance with U.S. GAAP and usually are not indicative of our outcomes of operations
or money flows from working actions as disclosed in our consolidated statements of
operations included elsewhere on this Quarterly Report on Form 10-Q. FFO, Core FFO and
Adjusted FFO needs to be thought-about as dietary supplements, however not alternate options, to our web earnings or
money flows from working actions as indicators of our working efficiency. Moreover,
different REITs could not calculate FFO in accordance with the NAREIT definition or could interpret
the NAREIT definition otherwise than we do. Accordingly, our FFO is probably not similar to
FFO as calculated by different REITs. In addition, there isn’t a business definition of Core FFO
or Adjusted FFO and, because of this, different REITs can also calculate Core FFO or Adjusted FFO,
or different similarly-captioned metrics, in a way totally different than we do. The desk beneath
reconciles FFO, Core FFO and Adjusted FFO to web (loss) earnings, which is probably the most immediately
comparable monetary measure calculated in accordance with U.S. GAAP.

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Reconciliation of Net Loss to NAREIT FFO, Core FFO, and Adjusted FFO
(in hundreds)
Three Months Ended March 31,
2022 2021
Net loss $ (17,445) $ (14,236)
Adjustments:
Real property associated depreciation
52,200 52,280

Net loss (achieve) on asset disposals 63 (39)

Our share of reconciling objects associated to partially owned entities
1,033 266
NAREIT Funds from operations $
35,851 $ 38,271

Adjustments:

Net achieve on sale of non-real asset property (235) (119)
Acquisition, litigation, and different
10,075 20,751

Share-based compensation expense, IPO grants – 163

Loss on debt extinguishment, modifications, and termination of by-product
devices

616 3,499

Foreign foreign money alternate achieve (325) (173)
Our share of reconciling objects associated to partially owned entities 347 154

Core FFO relevant to frequent shareholders 46,329 62,546
Adjustments:
Amortization of deferred financing prices and pension withdrawal legal responsibility
1,146 1,148

Amortization of beneath/above market leases 508 39
Straight-line web hire 204 (155)
Deferred earnings taxes profit (1,889) (2,002)
Share-based compensation, excluding IPO grants 8,349 4,867
Non-real property depreciation and amortization
30,420 24,931

Maintenance capital expenditures (a) (16,106) (15,731)
Our share of reconciling objects associated to partially owned entities (107) 278
Adjusted FFO relevant to frequent shareholders $
68,854 $ 75,921

(a)Maintenance capital expenditures embody capital expenditures made to increase
the life of, and present future financial profit from, our current
temperature-controlled warehouse community and its current supporting private
property and info expertise.
We calculate EBITDA for Real Estate, or EBITDAre, in accordance with the requirements
established by the Board of Governors of NAREIT, outlined as, earnings earlier than curiosity
expense, taxes, depreciation and amortization, and adjustment to mirror share of EBITDAre
of partially owned entities. EBITDAre is a measure generally utilized in our business, and we
current EBITDAre to reinforce investor understanding of our working efficiency. We
consider that EBITDAre offers traders and analysts with a measure of working outcomes
unaffected by variations in capital constructions, capital funding cycles and helpful life
of associated property amongst in any other case comparable corporations.
We additionally calculate our Core EBITDA as EBITDAre additional adjusted for acquisition, litigation
and different, web, loss from investments in partially owned entities, overseas foreign money
alternate achieve, share-based compensation expense, loss on debt extinguishment,
modifications and termination of by-product devices, web achieve on different asset disposals
and discount in EBITDAre from partially owned entities. We consider that the presentation
of Core EBITDA offers a measurement of our operations that’s significant to traders
as a result of it excludes the consequences of sure objects which are in any other case included in EBITDAre
however which we don’t consider are indicative of our core enterprise operations. EBITDAre and
Core EBITDA usually are not measurements of monetary efficiency beneath U.S. GAAP, and our
EBITDAre and Core EBITDA is probably not similar to equally titled measures of different
corporations. You mustn’t think about our EBITDAre and Core EBITDA as alternate options to web
earnings or money flows from working actions decided in accordance with U.S. GAAP.
Our calculations of EBITDAre and Core EBITDA have limitations as analytical instruments,
together with:

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•these measures don’t mirror our historic or future money necessities for
upkeep capital expenditures or progress and enlargement capital expenditures;
•these measures don’t mirror adjustments in, or money necessities for, our working
capital wants;
•these measures don’t mirror the curiosity expense, or the money necessities
essential to service curiosity or principal funds, on our indebtedness;
•these measures don’t mirror our tax expense or the money necessities to pay
our taxes; and
•though depreciation and amortization are non-cash prices, the property being
depreciated and amortized will typically have to get replaced sooner or later and these
measures don’t mirror any money necessities for such replacements.

We use EBITDAre and Core EBITDA as measures of our working efficiency and not as
measures of liquidity. The desk beneath reconciles EBITDAre and Core EBITDA to web (loss)
earnings, which is probably the most immediately comparable monetary measure calculated in accordance
with U.S. GAAP.

Reconciliation of Net Loss to NAREIT EBITDAre and Core EBITDA
(In hundreds)

Three Months Ended March 31,

2022 2021
Net loss $ (17,445) $ (14,236)
Adjustments:
Interest expense 25,773 25,956
Income taxes profit (708) (791)
Depreciation and amortization
82,620 77,211

Adjustment to mirror share of EBITDAre of partially owned entities
3,198 649
NAREIT EBITDAre $ 93,438 $ 88,789
Adjustments:
Acquisition, litigation and different, web 10,075 20,751
Loss on partially owned entities 2,112 700

Foreign foreign money alternate achieve (325) (173)
Share-based compensation expense
8,349 5,030
Loss on debt extinguishment, modifications, and termination of by-product
devices
616 3,499

Net achieve on different asset disposals (172) (158)
Reduction in EBITDAre from partially owned entities (3,198) (649)

Core EBITDA $ 110,895 $ 117,789

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LIQUIDITY AND CAPITAL RESOURCES

The Company and the Operating Partnership have filed a registration assertion on
Form S-3 with the SEC registering, amongst different securities, debt securities of
the Operating Partnership, which might be totally and unconditionally assured by
the Company. Separate consolidated monetary statements of the Operating
Partnership haven’t been offered in accordance with the amendments to Rule
3-10 of Regulation S-X. Furthermore, as permitted beneath Rule 13-01(a)(4)(vi),
the Company has excluded the summarized monetary info for the Operating
Partnership because the property, liabilities and outcomes of operations of the Company
and the Operating Partnership usually are not materially totally different than the
corresponding quantities offered within the consolidated monetary statements of the
Company, and administration believes such summarized monetary info can be
repetitive and not present incremental worth to traders.

We at the moment count on that our principal sources of funding for working capital,
facility acquisitions, enterprise mixtures, expansions, upkeep and
renovation of our properties, developments tasks, debt service and
distributions to our shareholders will embody:

•present money balances;
•money flows from operations;
•our 2020 Senior Unsecured Revolving Credit Facility;
•our ATM Equity Programs; and
•different varieties of debt financings and fairness choices.

We count on that our funding sources as famous above are sufficient and will proceed
to be sufficient to satisfy our short-term liquidity necessities and capital
commitments. These liquidity necessities and capital commitments embody:

•working actions and total working capital;
•capital expenditures;
•capital contributions and investments in joint ventures;
•debt service obligations; and
•quarterly shareholder distributions.

We count on to make the most of the identical sources of capital we are going to depend on to satisfy our
short-term liquidity necessities to additionally meet our long-term liquidity
necessities, which embody funding our working actions, our debt service
obligations and shareholder distributions, and our future improvement and
acquisition actions.

We are a widely known seasoned issuer with an efficient shelf registration
assertion filed on April 16, 2020, which registered an indeterminate quantity of
frequent shares, most popular shares, depositary shares and warrants, in addition to debt
securities of the Operating Partnership, which might be totally and unconditionally
assured by us. As circumstances warrant, we could situation fairness securities from
time to time on an opportunistic foundation, dependent upon market circumstances and
accessible pricing. We could use the proceeds for common company functions, which
could embody the compensation of excellent indebtedness, the funding of
improvement, enlargement and acquisition alternatives and to extend working
capital.

On May 10, 2021, we entered into an fairness distribution settlement pursuant to
which we could promote, infrequently, as much as an combination gross sales worth of
$900.0 million of our frequent shares via an ATM fairness program (the “2021 ATM
Equity Program”). Sales of our frequent shares made pursuant to the 2021 ATM
Equity Program could also be made in negotiated transactions or transactions which are
deemed to be “on the market” choices as outlined in Rule 415 beneath the
Securities Act, together with gross sales made immediately on the NYSE, or gross sales made to or
via a

——————————————————————————–

market maker aside from on an alternate, or as in any other case agreed between the
relevant Agent and us. Sales can also be made on a ahead foundation pursuant to
separate ahead sale agreements. We intend to make use of the online proceeds from gross sales
of our frequent shares pursuant to the 2021 ATM Equity Program for common
company functions, which can embody funding acquisitions and improvement
tasks. There was no exercise beneath the 2021 ATM Equity Program throughout the
three months ended March 31, 2022, and we now have roughly $809.4 million
availability remaining for distribution beneath the 2021 ATM Equity Program as of
March 31, 2022.

Security Interests in Customers’ Products

By operation of legislation and in accordance with our buyer contracts (aside from
leases), we usually obtain warehouseman’s liens on merchandise held in our
warehouses to safe buyer funds. Such liens allow us to take management of
the merchandise and promote them to 3rd events with a view to get well any monies
receivable on a delinquent account, however such merchandise could also be perishable or
in any other case not readily salable by us. Historically, in situations the place we now have
warehouseman’s liens and our buyer sought chapter safety, we now have been
profitable in receiving “essential vendor” standing, which has allowed us to totally
gather on our accounts receivable throughout the pendency of the chapter
continuing.

Our unhealthy debt expense was $1.3 million and $0.9 million for the three months
ended March 31, 2022 and 2021, respectively. As of March 31, 2022, we maintained
unhealthy debt allowances of roughly $20.7 million, which we believed to be
sufficient.

Collective Bargaining Agreements

As of March 31, 2022, roughly 37% of the Company’s labor drive is roofed
by collective bargaining agreements. Collective bargaining agreements protecting
lower than 8% of the labor drive are set to run out throughout the remaining three
months ended December 31, 2022.

Dividends and Distributions

We are required to distribute 90% of our taxable earnings (excluding capital
positive factors) on an annual foundation with a view to proceed to qualify as a REIT for federal
earnings tax functions. Accordingly, we intend to make, however usually are not contractually
certain to make, common quarterly distributions to shareholders from money flows
from our working actions. While traditionally we now have happy this
distribution requirement by making money distributions to our shareholders, we
could select to fulfill this requirement by making distributions of money or different
property. All such distributions are on the discretion of our Board of Trustees.
We think about market components and our efficiency along with REIT necessities
in figuring out distribution ranges. We have distributed a minimum of 100% of our
taxable earnings yearly since inception to attenuate corporate-level federal
earnings taxes. Amounts amassed for distribution to shareholders are invested
primarily in interest-bearing accounts and short-term interest-bearing
securities, that are in line with our intention to keep up our standing as a
REIT.

As a consequence of this distribution requirement, we can’t depend on retained
earnings to fund our ongoing operations to the identical extent that different corporations
which aren’t REITs can. We could must proceed to boost capital within the debt
and fairness markets to fund our working capital wants, in addition to potential
developments in new or current properties, acquisitions or investments in
current or newly created joint ventures. In addition, we could also be required to make use of
borrowings beneath our revolving credit score facility, if vital, to satisfy REIT
distribution necessities and keep our REIT standing.

For additional info concerning dividends and distributions, see Note 14 to
our consolidated monetary statements included in our 2021 Annual Report on Form
10-Okay as filed with the SEC.
52

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Outstanding Indebtedness

The following desk summarizes our excellent indebtedness as of March 31,
2022:

Debt Summary:
Fixed price $ 2,058,187
Variable price – unhedged 888,699

Total mortgage notes, senior unsecured notes, time period loans and borrowings
beneath revolving line of credit score

2,946,886

Sale-leaseback financing obligations
177,305

Financing lease obligations
91,436

Total debt and debt-like obligations
3,215,627

Percent of whole debt and debt-like obligations:
Fixed price 72 %
Variable price 28 %

Effective rate of interest as of March 31, 2022
3.06 %

The variable price debt proven above bears curiosity at rates of interest based mostly on
numerous one-month LIBOR, CDOR, BBSW, and SONIA charges, relying on the
respective settlement governing the debt, together with our international revolving credit score
amenities. As of March 31, 2022, our debt had a weighted common time period to
preliminary maturity of roughly 5.8 years, assuming train of extension
choices.

For additional info concerning excellent indebtedness, please see Note 4 to
our condensed consolidated monetary statements included on this Quarterly
Report on Form 10-Q and Note 9 to our consolidated monetary statements included
in our 2021 Annual Report on Form 10-Okay as filed with the SEC.

Credit Ratings

Our capital construction and monetary practices have earned us funding grade
credit score scores from three nationally acknowledged credit standing businesses. We have
funding grade scores of BBB with a secure outlook from Fitch, BBB with a
Positive Trends outlook from DBRS Morningstar, and an funding grade ranking of
Baa3 with a secure outlook from Moody’s. These credit score scores are vital to
our capability to situation debt at favorable charges of curiosity, amongst different phrases.
Refer to our danger issue “Adverse adjustments in our credit score scores might negatively
influence our financing exercise” in our Annual Report on Form 10-Okay.

Maintenance Capital Expenditures and Repair and Maintenance Expenses

We make the most of a strategic and preventative strategy to upkeep capital
expenditures and restore and upkeep bills to keep up the top quality
and operational effectivity of our warehouses and make sure that our warehouses meet
the “mission-critical” function they serve within the chilly chain.
53

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Maintenance Capital Expenditures

Maintenance capital expenditures are capitalized investments made to increase the
life of, and present future financial profit from, our current
temperature-controlled warehouse community and its current supporting private
property and info expertise techniques. Examples of upkeep capital
expenditures associated to our current temperature-controlled warehouse community
embody changing roofs and refrigeration tools, and upgrading our racking
techniques. Examples of upkeep capital expenditures associated to private
property embody expenditures on materials dealing with tools (e.g., fork lifts
and pallet jacks) and associated batteries. Examples of upkeep capital
expenditures associated to info expertise embody expenditures on current
servers, networking tools and present software program. Maintenance capital
expenditures don’t embody acquisition prices contemplated when underwriting the
buy of a constructing or prices that are incurred to carry a constructing as much as
Americold’s working requirements. The following desk units forth our upkeep
capital expenditures for the three months ended March 31, 2022 and 2021.

Three Months Ended March 31,
2022 2021
(In

hundreds, besides per cubic foot

quantities)
Real property $ 13,864 $ 12,928
Personal property 974 1,782
Information expertise 1,268 1,021
Maintenance capital expenditures $ 16,106
$ 15,731

Maintenance capital expenditures per cubic foot $ 0.011
$ 0.011

Repair and Maintenance Expenses

We incur restore and upkeep bills that embody prices of regular
upkeep and repairs and minor replacements that don’t materially prolong the
life of the property or present future financial advantages. Repair and upkeep
bills consist of bills associated to our current temperature-controlled
warehouse community and its current supporting private property and are
mirrored as working bills on our earnings assertion. Examples of restore and
upkeep bills associated to our warehouse portfolio embody unusual restore
and upkeep on roofs, racking, partitions, doorways, parking heaps and refrigeration
tools. Examples of restore and upkeep bills associated to private
property embody unusual restore and upkeep bills on materials dealing with
tools (e.g., fork lifts and pallet jacks) and associated batteries. The
following desk units forth our restore and upkeep bills for the three
months ended March 31, 2022 and 2021.

Three Months Ended March 31,
2022 2021
(In

hundreds, besides per cubic foot

quantities)
Real property $ 8,843 $ 8,376
Personal property 14,446 11,454
Repair and upkeep bills $ 23,289
$ 19,830

Repair and upkeep bills per cubic foot $ 0.016 $ 0.014

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External Growth, Expansion and Development Capital Expenditures

External progress expenditures signify asset acquisitions or enterprise
mixtures. Expansion and improvement capital expenditures are capitalized
investments made to help each our clients and our warehouse enlargement and
improvement initiatives. It additionally contains investments in enhancing our
info expertise platform. Examples of capital expenditures related
with enlargement and improvement initiatives embody funding of building
prices, will increase to warehouse capability and pallet positions, acquisitions of
reusable incremental materials dealing with tools, and implementing vitality
effectivity tasks, equivalent to thermal vitality storage, LED lighting, motion-sensor
expertise, variable frequency drives for our followers and compressors, rapid-close
doorways and alternative-power technology applied sciences. Examples of capital
expenditures to reinforce our info expertise platform embody the supply
of new techniques and software program and buyer interface performance.

Acquisitions

There had been no acquisitions accomplished throughout the first quarter of 2022. For
info concerning acquisitions accomplished throughout 2021, discuss with our 2021
Annual Report on Form 10-Okay which incorporates particulars of the acquisition worth
allocation for every acquisition.

Expansion and improvement

The enlargement and improvement expenditures for the three months ended March 31,
2022 are primarily pushed by $17.6 million associated to our two fully-automated,
build-to-suit, improvement websites in Connecticut and Pennsylvania, $8.1 million
for the Spearwood, Australia enlargement, $7.8 million million associated to the
Dunkirk, NY improvement, $5.1 million in our Dublin enlargement, $1.9 million for
the Barcelona enlargement, $1.5 million associated to our Russellville enlargement and
$1.4 million associated to Atlanta Major Market Strategy Phase 2.

Expansion and improvement initiatives additionally embody $1.3 million of company
initiatives, that are tasks designed to cut back future spending over the
course of time. This class displays return on funding tasks, conversion
of leases to owned property, and different cost-saving initiatives.

Finally, we incurred roughly $13.8 million throughout the three months ended
March 31, 2021 for contemplated future enlargement or improvement tasks.

The following desk units forth our acquisition, enlargement and improvement
capital expenditures for the three months ended March 31, 2022 and 2021.

Three Months Ended March 31,
2022 2021
(In hundreds)
Acquisitions, web of money acquired and changes $ (603) $ 41,956
Expansion and improvement initiatives 58,521 83,268
Information expertise 741 1,528
Growth and enlargement capital expenditures $ 58,659 $ 126,752

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Historical Cash Flows

Three Months Ended March 31,
2022 2021
(In hundreds)
Net money supplied by working actions $ 15,586 $ 46,531
Net money utilized in investing actions $ (94,244) $ (143,737)
Net money supplied by (utilized in) financing actions $ 46,256 $ (235,530)

Operating Activities

For the three months ended March 31, 2022, our web money supplied by working
actions was $15.6 million, a lower of $30.9 million, in comparison with $46.5
million for the three months ended March 31, 2021. The lower is primarily due
to a rise in accounts receivable on account of slower collections, in addition to
larger promoting, common and administrative expense.

Investing Activities

Our web money utilized in investing actions was $94.2 million for the three months
ended March 31, 2022 in comparison with $143.7 million for the three months ended
March 31, 2021. Additions to property, buildings and tools had been $93.0
million, reflecting upkeep capital expenditures and investments within the
Ahold, Atlanta, Dunkirk, Dublin, Barcelona, Spearwood and Russellville enlargement
and improvement tasks. Additionally, we invested $1.9 million within the
SuperFrio three way partnership for the three months ended March 31, 2022.

Net money utilized in investing actions of $143.7 million for the three months
ended March 31, 2021 associated to money used for the acquisition of Liberty
Freezers totaling $42.0 million and money used for additions to property,
buildings and tools of $100.5 million reflecting upkeep capital
expenditures and investments within the Ahold, Atlanta, Calgary, New Zealand and
Russellville enlargement and improvement tasks.

Financing Activities

Net money supplied by financing actions was $46.3 million for the three months
ended March 31, 2022 in comparison with money utilized in financing actions of $235.5
million for the three months ended March 31, 2021. Cash supplied by financing
actions for the present interval primarily consisted of $115.0 million in
proceeds from our 2020 Senior Unsecured Credit Facility, offset by $59.9 million
of quarterly dividend distributions paid.

Net money utilized in financing actions was $235.5 million for the three months
ended March 31, 2021. Cash utilized in financing actions consisted of $201.8
million of repayments on our time period mortgage and mortgage notes, $55.0 million of
quarterly dividends paid, $14.9 million in fee of withholding taxes associated
to share-based fee preparations and $7.2 million of financing lease
funds. These money outflows had been partially offset by $43.5 million in proceeds
from our revolving line of credit score and $4.3 million of proceeds obtained upon
train of inventory choices.

SIGNIFICANT ACCOUNTING POLICIES UPDATE

See Note 1 to our condensed consolidated monetary statements included on this
Quarterly Report on Form 10-Q.

NEW ACCOUNTING PRONOUNCEMENTS

——————————————————————————–

See Note 1 to our condensed consolidated monetary statements included on this
Quarterly Report on Form 10-Q.

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