Is Americold Realty Trust (COLD) a Buy for Income-Oriented Investors Amid Deteriorating Fundamentals?

For income-oriented investors, Americold Realty Trust (COLD) has long been a tantalizing prospect due to its high dividend yield. However, as of late 2025, the company's deteriorating financial fundamentals, mixed analyst sentiment, and downward revisions to price targets raise critical questions about whether the current yield justifies the risk. This analysis evaluates COLD's investment potential by dissecting its revenue trends, return metrics, and evolving market outlook.

Deteriorating Financial Fundamentals

Americold's Q4 2024 results underscore a challenging operating environment. Total revenue declined 1.9% year-over-year to $666.4 million, driven by a 13.8% drop in transportation services revenue and weaker warehouse segment volumes. The company reported a net loss of $36.4 million, or $0.13 per diluted share, marking an 84% increase in the net loss per share compared to Q4 2023. While the Global Warehouse segment's same-store services margin improved to 13.2% from 6.3% in the prior year, this gain was insufficient to offset broader operational headwinds.

Return metrics further highlight the company's struggles. For the trailing twelve months ending December 31, 2024, Americold's Return on Equity (ROE) was -2.73%, and its Return on Assets (ROA) stood at -2.39%. These negative returns reflect a failure to generate value for shareholders despite consistent dividend payments. The full-year 2024 net loss of $94.7 million, or $0.33 per share, underscores the severity of the company's earnings challenges.

Mixed Analyst Sentiment and Downward Price Target Revisions

Analyst sentiment toward COLD remains divided. As of late 2025, 15 analysts have issued ratings, with 2 "sell" recommendations, 10 "hold" ratings, and 3 "buy" calls. The average 12-month price target of $13.83 implies a potential 14.15% upside from the closing price of $12.57 as of December 2025. However, recent months have seen significant downward revisions. For instance, Truist Financial cut its price target from $17.00 to $16.00, while Citigroup and Wells Fargo reduced their targets to $11.00 from $13.00 and $15.00, respectively. These adjustments reflect growing concerns about supply chain shifts, economic uncertainties, and the company's ability to stabilize occupancy rates.

Intrinsic valuation models also suggest COLD is undervalued at its current price of $12.87, with an estimated intrinsic value of $19.37-a 34% gap. However, this discrepancy may not account for the company's deteriorating fundamentals, which could limit its ability to reach such levels.

High Dividend Yield: Attractive or a Red Flag?

Americold's dividend yield of 7.15% as of January 2026 is among the highest in the REIT sector. The company maintained its quarterly dividend of $0.23 per share in Q4 2025, consistent with the prior quarter and a 5% increase from the same period in 2024. While this consistency is commendable, analysts caution that the dividend's sustainability is tied to the company's ability to improve occupancy and manage leverage.

Notably, COLD's dividend sustainability score is low, and its growth potential is constrained by projected same-store revenue growth of -4% to 0% for 2025. This cautious guidance signals ongoing operational challenges, including weak demand in the cold-storage market and rising interest costs. Investors must weigh the allure of the high yield against the risk of a dividend cut if fundamentals fail to stabilize.

Conclusion: A High-Risk Proposition for Income Investors

For income-oriented investors, Americold presents a paradox: an attractive yield paired with deteriorating financials and a cautious analyst outlook. While the company's dividend consistency and intrinsic valuation gap offer some optimism, the negative ROE/ROA, declining revenue, and downward price target revisions suggest significant risks. Analysts' concerns about supply chain shifts and leverage further complicate the outlook.

In this environment, COLD may appeal to risk-tolerant investors who believe in a near-term turnaround. However, for those prioritizing stability and sustainability, the high yield appears to come at a cost. Until Americold demonstrates meaningful improvements in occupancy, profitability, and leverage management, the risks likely outweigh the rewards.