Key Points

- Cold storage REITs like Americold Realty Trust, Inc. and Lineage, Inc. are currently undervalued
- COLD and LINE are dominant players in the cold storage sector due to scale, assets, and customer demand
- Both REITs offer well-covered dividends and strong growth potential
- Historical P/AFFO multiples indicate that COLD and LINE are trading at significant discounts
- Value investors may find attractive entry points in these undervalued cold storage REITs

Cold storage REITs, such as Americold Realty Trust, Inc. and Lineage, Inc., are currently presenting appealing investment opportunities for value investors. These companies, represented by the tickers COLD and LINE, respectively, hold a significant position in the fragmented cold storage industry. Recognized for their scale, vital assets, and high customer demand linked to essential food supply chains, COLD and LINE have established themselves as leaders in the market.

One of the key factors that make COLD and LINE attractive to investors is their undervaluation. Despite their strong market presence, both companies are currently trading at prices that do not fully reflect their true value. This situation presents a favorable entry point for value investors looking to capitalize on the potential growth and stability of the cold storage sector.

In addition to their undervaluation, COLD and LINE offer other compelling reasons for investment. Both REITs provide well-covered dividends, ensuring a steady income stream for investors. Moreover, their solid growth prospects indicate the potential for capital appreciation over time, further enhancing their appeal to value-oriented investors.

When considering the valuation of COLD and LINE, it is essential to examine historical Price/AFFO (Adjusted Funds From Operations) multiples. These metrics provide insights into how the companies are priced relative to their underlying financial performance. Currently, both companies are trading at significant discounts compared to their historical P/AFFO multiples, suggesting that there is room for potential price appreciation in the future.

Overall, cold storage REITs like Americold Realty Trust, Inc. and Lineage, Inc. are presenting an enticing investment opportunity for value investors. With their market dominance, strong fundamentals, attractive dividends, and undervaluation compared to historical metrics, COLD and LINE have the potential to deliver favorable returns to investors who are willing to capitalize on these opportunities.

About COLD

Americold is the world's largest publicly traded REIT focused on the ownership, operation, acquisition and development of temperature-controlled warehouses. Based in Atlanta, Georgia, Americold owns and operates 185 temperature-controlled warehouses, with over 1 billion refrigerated cubic feet of storage, in the United States, Australia, New Zealand, Canada, and Argentina. Americold's facilities are an integral component of the supply chain connecting food producers, processors, distributors and retailers to consumers.

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Up/Down Rally

Price Distribution

Analyst Recommendations

Earning Price Impact Analysis

Seasonality