Oct. 3 at 7:56 PM
Americold Realty Trust and Lineage, down 42% and 32% this year, offer attractive opportunities amid soft customer demand. Americold trades around
$12.50, Lineage at
$40, both with strong dividend yields of 7.4% and 5.3% and payout ratios near 65% of AFFO.
The REITs operate cold-storage warehouses for major food clients. Lineage runs nearly 500 facilities with a third of the North American market, while Americold holds about 20%. Americold’s smaller size, higher yield, lower valuation, and no controlling shareholder may make it more appealing to investors or acquirers.
Both trade at deep discounts: Americold under 10x 2025 AFFO, Lineage around 12x, versus average REITs above 20x. Debt is manageable (
$3.9B and
$5.7B) with investment-grade ratings. Analysts highlight long-term food demand, dividends, and sector automation as positives, while excess capacity and reduced pandemic-era demand are challenges.
$COLD $LINE