onurdongel/iStock via Getty Images
Today, we are going to dive head first into an asset class where the best laid plans of mice and men went awry. We are going to discuss one of the best positioned asset classes which quickly
Americold Realty Vs. Lineage: It's A Cold World
Summary
- Cold storage is a complex, capital-intensive real estate niche with strong long-term demand, but recent oversupply and market headwinds have pressured REIT valuations.
- COLD and LINE are the two largest cold storage REITs, with COLD offering a more traditional, conservative business model and LINE focusing on tech-driven, aggressive growth.
- Despite both facing industry challenges, COLD's established portfolio, conservative expansion, and higher dividend yield make it more appealing compared to LINE's premium valuation and riskier strategy.
- I rate COLD as a Buy for its resilience and stable approach, while LINE receives a Hold due to its higher risk profile amid ongoing sector uncertainties.
REITer's Digest
Analyst’s Disclosure:I/we have a beneficial long position in the shares of COLD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.