Unlocking Alternatives: Investing Beyond the Major CRE Asset Type

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COLD STORAGE: PERFORMANCE

• With a limited supply and much of the existing inventory decades old, cold storage has maintained a robust occupancy rate, routinely ranging between 94% - 97%. Low vacancy has coupled with rising demand to continue to push asking rents upward, surpassing $10 psf in 2023. • Third party logistics firms (3PL’s), including Americold Realty Trust and Lineage Logistics (both now REITs) have become a key players substantially between 2018 and 2022, driven in part by substantial M&A and portfolio activity. Some particularly notable transactions include: Lineage Logistics’ acquisition of Canadian VersaCold Logistics (2022, 114M cubic feet) Americold’s acquisition of Agro Merchants Group (2021, 236M cubic feet). • Cap rates have generally been compressing for several years, though a mix of single and portfolio sales has resulted in greater variance. • Geographically, development activity has been concentrated in the Southeast, with 4.3M sf (of the national 6.5M sf) under development in the region. in aggregating portfolios in the sector. • Sales volume for the sector had risen

Pricing and Volume Trends

Transaction Volume (LHS)

Sale Price Per SF (RHS)

$M $200M $400M $600M $800M $1000M $1200M

$110 $130 $150 $170 $190 $210

$50 $70 $90

2015 Q1

2015 Q2

2015 Q3

2015 Q4

2016 Q1

2016 Q2

2016 Q3

2016 Q4

2017 Q1

2017 Q2

2017 Q3

2017 Q4

2018 Q1

2018 Q2

2018 Q3

2018 Q4

2019 Q1

2019 Q2

2019 Q3

2019 Q4

2020 Q1

2020 Q2

2020 Q3

2020 Q4

2021 Q1

2021 Q2

2021 Q3

2021 Q4

2022 Q1

2022 Q2

2022 Q3

2022 Q4

2023 Q1

2023 Q2

2023 Q3

2023 Q4

Rent & Occupancy Performance

Avg Cap Rates

3% 4% 5% 6% 7% 8% 9% 10%

Occupancy Rate (LHS)

Asking Rent PSF (RHS)

$10.00 $11.00

93% 94% 95% 96% 97% 98%

$5.00 $6.00 $7.00 $8.00 $9.00