Americold Realty Trust (COLD) risk factors, FY2025 10-K

Risks Related to our Business and Operations

1. 01General Risks Related to the Real Estate Industry
2. 02Our investments are concentrated in the temperature-controlled warehouse industry and in certain geographic areas
3. 03Inflation has and may continue to have a negative impact on our business and results of operations
4. 04Labor shortages, increased turnover and work stoppages have in the past, and may in the future, disrupt our operations, increase costs and negatively impact our profitability
5. 05Wage increases driven by competitive pressures or applicable legislation on employee wages and benefits could negatively affect our operating margins and our ability to attract qualified personnel
6. 06We are exposed to risks associated with expansion and development, which could result in returns below expectations and unforeseen costs and liabilities
7. 07The short-term nature and lack of fixed storage commitments of many of our customer contracts exposes us to certain risks that could have a material adverse effect on us
8. 08A portion of our future growth depends upon our ability to identify and successfully integrate acquisitions
9. 09We may be unable to successfully expand our operations into new markets
10. 10A failure of our IT systems, cybersecurity attacks or a breach of our information security systems, networks or processes could cause business disruptions and the loss of confidential information and may materially adversely affect our business
11. 11We depend on information technology systems to operate our business, and issues with maintaining, upgrading or implementing these systems, could have a material adverse effect on our business
12. 12We are subject to additional risks with respect to our current and potential international operations and properties
13. 13Competition in our markets may increase over time if our competitors open new or expand existing warehouses
14. 14We have implemented programs across our warehouses to reduce overall consumption and to reduce consumption at peak demand periods, when power prices are typically highest. However, there can be no assurance that these programs will be effective in reducing our power consumption or cost of power
15. 15We depend on certain customers for a substantial amount of our Warehouse segment revenues
16. 16Foreign exchange rates and other hedging activity exposes us to risks, including the risk that a counterparty will not perform and that the hedge will not yield the benefits we anticipate
17. 17We may incur liabilities or harm our reputation as a result of quality-control issues associated with our warehouse storage and other services
18. 18We use in-house trucking services to provide transportation services to certain of our customers, and any increased severity or frequency of accidents or other claims, changes in regulations or disruptions in services could have a material adverse effect on us
19. 19We participate in multiemployer pension plans administered by labor unions. To the extent we or other employers withdraw from participation in any of these plans, we could face additional liability from our participation therein
20. 20We hold leasehold interests in many of our warehouses, and we may be forced to vacate our warehouses if we default on our obligations thereunder and we will be forced to vacate our warehouses if we are unable to renew such leases upon their expiration
21. 21Charges for impairment of goodwill or other long-lived assets and declines in real estate valuations could adversely affect our financial condition and results of operations
22. 22Geopolitical conflicts may adversely affect our business and results of operations
23. 23Our performance and value are subject to economic conditions affecting the real estate market generally, and temperature-controlled warehouses in particular, as well as the broader economy
24. 24We could incur significant costs and liabilities due to environmental problems
25. 25Risks related to climate change could have a material adverse effect on our results of operations
26. 26Our properties may contain or develop harmful molds or have other air quality issues, which could lead to financial liability for adverse health effects to our associates or third parties, and costs of remediating the problem
27. 27Illiquidity of real estate investments, particularly our specialized temperature-controlled warehouses, could significantly impede our ability to respond to adverse changes in the performance of our business and properties
28. 28Our insurance coverage may be insufficient
29. 29Costs of complying with governmental laws and regulations could adversely affect us and our customers
30. 30We face ongoing litigation risks which could result in material liabilities and harm to our business regardless of whether we prevail in any particular matter
31. 31Uncertainty about U.S. federal initiatives could negatively impact our business, financial condition and results of operations
32. 32We are currently invested in a joint venture and may invest in additional joint ventures in the future and face risks stemming from our partial ownership interests in such properties which could materially and adversely affect the value of any such joint venture investments

Risks Related to Our Debt Financings

1. 33We have a substantial amount of indebtedness that may limit our financial and operating activities
2. 34Increases in interest rates could increase the amount of our debt payments
3. 35We are dependent on external sources of capital, the continuing availability of which is uncertain
4. 36Adverse changes in our credit ratings could negatively impact our financing activity

Risks Related to our Organization and Structure

1. 37Our Board can take many actions even if you and other stockholders disagree with such actions or if they are otherwise not in your best interest as a stockholder
2. 38The REIT ownership limit rules and the related restrictions on ownership and transfer contained in our articles of incorporation have an anti-takeover effect
3. 39We have fiduciary duties as general partner to our Operating Partnership, which may result in conflicts of interests in representing your interests as stockholders of our company

Risks Related to our Common Stock

1. 40Our cash available for distribution to stockholders may not be sufficient to pay distributions at expected levels, or at all, and we may need to increase our borrowings or otherwise raise capital in order to make such distributions; consequently, we may not be able to make such distributions in full
2. 41Any future debt, which would rank senior to our common stock upon liquidation, or equity securities, which could dilute our existing stockholders and may be senior to our common stock for the purposes of distributions, may adversely affect the market price of our common stock
3. 42Common stock eligible for future sale may have adverse effects on the market price of our common stock

REIT and Tax Related Risks

1. 43Failure to qualify as a REIT for U.S. federal income tax purposes would have a material adverse effect on us
2. 44To qualify as a REIT, we must meet annual distribution requirements, which could result in material harm to our company if they are not met
3. 45We conduct a portion of our business through TRSs, which are subject to certain tax risks
4. 46Complying with REIT requirements may cause us to forgo otherwise attractive opportunities or liquidate certain of our investments
5. 47Future changes to the U.S. federal income tax laws could have an adverse impact on our business and financial results
6. 48Distributions payable by REITs generally do not qualify for the reduced tax rates that apply to certain other corporate distributions, potentially making an investment in our company less advantageous for certain persons than an investment in an entity with different tax attributes
7. 49In certain circumstances, we may be subject to U.S. federal, state, local or foreign taxes, which would reduce our funds available for distribution to our stockholders
8. 50Complying with REIT requirements may limit our ability to hedge effectively and may cause us to incur tax liabilities
9. 51If our Operating Partnership fails to qualify as a partnership for U.S. federal income tax purposes, we would fail to qualify as a REIT