Business & Investment

Americold dismisses President and CEO Fred Boehler

Almost six years later, Fred Baler became president and CEO of Americaold Realty Trust, the world’s largest publicly traded, operator, and developer of temperature-controlled warehouses.

The Atlanta-based Real Estate Investment Trust (REIT) board said late Wednesday that Baler had been fired for no reason and went into effect immediately. Behrer, who had been with America Cold for seven years, also resigned as a trustee.

Food industry veteran George Chappelle has been appointed as interim CEO, and Americanold has come into effect soon. (NYSE: COLD) Said. Chapel has joined the REIT’s expanded board of directors, along with Best Buy’s Chief Supply Chain and Global Property Officer Robbas.NYSE: BBY), Pamela Corn, Chief Merchandising Officer of Sally Beauty Holdings. (NYSE: SBH)..

Americold did not comment on the reasons behind Boehler’s resignation, except that it was not related to a disagreement with the board or management on corporate strategic, financial, or accounting issues. Americold was not asked by analysts at a conference call that disclosed the results of the third quarter.

The term “dismissal for no reason” is widely used as a measure taken for the convenience of the company other than theft or misappropriation of funds, a serious breach of the company’s written code of conduct, and a conviction of a felony. It is defined.or crime concern Moral turmoil, Among other violations.

Traders and investors seemed to shrug the news. In after-hours trading, Americanold shares rose more than 2.2% to $ 30.99 per share.

REITs report that adjusted funding from operations, which is a key indicator of REIT performance, is 27 cents per share, according to internal forecasts, with a consensus of nine analysts polled on the bar chart. It is below. According to the company, net income of $ 5.3 million fell by more than $ 7 million from the previous year’s level.

Third-quarter revenue was $ 708.8 million, up 42.5%. Net operating income (NOI), which is the total operating income of real estate minus operating expenses, was $ 155.8 million, up 15% year-on-year.

Revenues from the REIT’s global warehousing segment increased by nearly 40% to $ 542 million. NOI increased 13.5% to $ 145 million. Americold operates 248 warehouses on four continents. The segment margin fell by more than 6 points to 26.7%.

In a conference call, Americanold executives said the sharp rise in labor and electricity costs, which account for three-quarters of total costs, had hit the business. It has also been hampered by supply chain disruptions and food production that has not kept pace with the increase in demand due to the COVID-19 pandemic.

Wages for warehouse workers have risen by an average of 8% to 12% lately, up to 20% in some markets as REITs seek to retain employees in the most demanding labor market. According to executives, Amelie Cold is in the process of raising rates for warehouse tenants. They said these higher costs would be passed on to consumers in the form of higher prices for temperature-controlled frozen foods.

Americold dismisses President and CEO Fred Boehler Americold dismisses President and CEO Fred Boehler

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