COLD. I still cannot comfortably buy this stock, even though it is down 1/3 from the flurry of postings in June - August. The debt is off the charts and business conditions are tough (10Q clip1). And the financials are aggressive, with large adjustments for acquisitions and other things to get FFO (clip 2). Then they go beyond that and adjusted FFO excludes non-real estate depreciation (a large number). I can understand elim building depreciation from FFO, but (IMO) adding back COLD's HVAC and other equip depreciation seems like a stretch. (clip 3). I expect a large dividend reduction. Even with FOMO at this stock price, I have other fish to fry.
example 1
Management believes that recent and future operating results may continue to be impacted by broader macroeconomic conditions, including consumer spending conservatism, persistent inflationary pressures, tariff-related uncertainty, and reductions in government-sponsored benefits. These factors have collectively influenced purchasing behavior, which in turn affect our customers’ production volumes and the corresponding demand for our temperature-controlled storage and handling services. The cold storage industry has also experienced increased speculative capacity, particularly in key distribution markets, which has increased competition. Management believes these trends are reasonably likely to continue to impact future results.
example 2.
Loss on debt extinguishment and termination of derivative instruments. Loss on debt extinguishment and termination of derivative instruments decreased $116.1 million, compared to the nine months ended September 30, 2024. The decrease was primarily due to the purchase of eleven facilities accounted for as failed sale-leaseback, resulting in a loss on debt extinguishment of $115.1 million.
example 3.
However, because NAREIT FFO and Core FFO add back real estate depreciation and amortization and do not capture the level of maintenance capital expenditures necessary to maintain the operating performance of our properties, both of which have material economic impacts on our results from operations, we believe the utility of NAREIT FFO and Core FFO measures of our performance may be limited.
And don't forget stock based compensation here (three months Q3):
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