Americold Realty Trust Inaugurates Largest Middle East Cold Storage Facility in Dubai

Americold Inaugurates Major Cold Storage Hub in Dubai

Americold Realty Trust Inc. (NYSE: COLD), a global leader in temperature-controlled logistics and real estate, announced the opening of its new state-of-the-art cold storage facility in Dubai on September 25, 2025. This facility, representing Americold's largest operational site in the Middle East, is a significant step in optimizing global food supply chains.

The Dubai Facility: A Strategic Regional Nexus

The Dubai facility, developed through a joint venture with RSA Cold Chain and in strategic partnership with DP World, is located in the Jebel Ali Free Zone (JAFZA). It features 40,000 pallet positions, multi-temperature capabilities, and both bonded and non-bonded storage options. This $35 million investment is equipped with 27 docks, smart monitoring systems, and rooftop solar panels to enhance energy efficiency. Furthermore, it holds ISO 22000 and HACCP certifications, underscoring its commitment to high food safety standards.

Designed as a critical import-export hub, the facility aims to connect global food producers to the Gulf Cooperation Council (GCC) markets via sea freight, leveraging DP World's extensive logistics infrastructure. Americold CEO Rob Chambers emphasized the strategic intent behind the expansion, stating that the facility is

"another step in that journey, linking producers and consumers more efficiently through strategic infrastructure with trusted partners," and aims to address "real inefficiencies in the region's food supply chain and creating long-term value for our customers."

Market Opportunity and Regional Significance

This expansion aligns with a broader push by Gulf nations to enhance food security amid geopolitical uncertainties and climate-related disruptions. The Middle East and North Africa (MENA) cold chain market is projected to experience substantial growth, with an estimated 8.8% Compound Annual Growth Rate (CAGR) to reach $41.1 billion by 2030. The overall cold storage market is also forecast to grow at an 8.51% CAGR to 2034. This growth is fueled by factors such as urbanization, the rise of e-commerce, and increasingly stringent food safety regulations. Specifically, Saudi Arabia is expected to lead regional growth with a 10.6% CAGR in cold storage demand by 2030.

Americold, as the world's second-largest owner and operator of temperature-controlled warehouses, seeks to capitalize on these dynamics by providing streamlined regional and domestic distribution support for quick service restaurants (QSRs), grocery retailers, and quick commerce platforms.

Broader Financial Context and Challenges for Americold

Despite the strategic potential of its Dubai expansion, Americold (COLD) has navigated a challenging financial landscape. As of September 25, 2025, the company's shares have seen approximately a 40% decline year-to-date. Some analysts view COLD as a "buy-the-dip" opportunity, with an estimated upside potential of 44.85% from its share price of $12.49 as of October 2, 2025, within a 52-week range of $11.96 – $28.60.

However, the company has also been noted for "declining revenue and high leverage." In the second quarter of 2025, Americold reported a 1.5% year-over-year decline in revenue growth, with occupancy dropping to 73.8%. Adjusted Funds From Operations (FFO) per share fell 5.3% year-over-year to $0.36 in the same quarter. Debt levels have also risen, with net debt to Core EBITDA increasing to 6.3x in Q2 2025, up from 5.3x in Q2 2024. Consequently, the company adjusted its 2025 outlook downward due to lower occupancy and increased leverage.

Analyst estimates for Americold project an average annual revenue growth of 5.6% over the next three years, with profit margins expected to improve from -2.1% to 3.0% within that timeframe. The long-term profitability of the Dubai facility will be contingent on its seamless integration into Americold's existing network, robust customer demand in the GCC, and the company's ability to effectively manage costs and leverage.

Looking Ahead

The inauguration of Americold's Dubai facility marks a significant strategic move to enhance its market presence and diversify revenue streams within a high-growth region. While this expansion positions Americold to benefit from increasing demand for temperature-controlled logistics and food security initiatives in the Middle East, investors will be closely monitoring several factors.

Key areas for observation include the facility's occupancy rates, the company's ability to manage its debt levels, and the adoption of its services by customers across the GCC markets. The integration success of this new hub into Americold's global operations will be crucial in determining its contribution to the company's long-term growth and profitability trajectory, especially given the competitive landscape that includes players like Lineage Logistics and Penske Logistics.