Lineage, Inc. (NASDAQ:LINE) (the "Company"), the world's largest global temperature-controlled warehouse REIT, today announced its financial results for the third quarter of 2024.

Third-Quarter 2024 Highlights

Raised $5.1 billion in gross proceeds from the Company's July 2024 IPO, marking the largest IPO of the year and largest real estate IPO of all-time
Total revenue increased 0.5% to $1.3 billion
Net loss of ($543) million, or ($2.44) per diluted common share
Total NOI increased 2.1% to $439 million
Adjusted EBITDA increased 5.4% to $333 million; adjusted EBITDA margin increased 110bps to 24.9%
AFFO increased 51.8% to $208 million; AFFO per share increased 20.0% to $0.90
Used IPO proceeds to reduce $4.9 billion of debt; achieved investment grade credit ratings from Fitch and Moody's
Declared initial quarterly dividend of $0.38 per share, representing annualized dividend rate of $2.11 per share
Opened a new, fully automated cold storage warehouse in Hazleton, PA, the newest addition to Lineage's automated facility portfolio backed by proprietary software and in-house automation teams
Acquired ColdPoint Logistics for $223 million on November 1st, expanding Lineage's existing presence in the strategic Kansas City market

"We are excited to report strong results for our first quarter as a public company, demonstrating our ability to perform well in various economic environments," said Greg Lehmkuhl, president and chief executive officer of Lineage, Inc. "We generated significant AFFO per share growth this quarter aided by our successful IPO and continued strong operating performance. Looking forward, we are well positioned to drive compounding growth, benefiting from our industry-leading real estate portfolio, innovative technology, and our strategic capital deployment engine. To that end, we are pleased to announce the acquisition of ColdPoint Logistics and we are excited to welcome them to the Lineage family."

2024 Outlook

The Company expects full-year 2024 Adjusted FFO ("AFFO") per share of $3.16 to $3.20.

For the fourth quarter of 2024, the Company expects AFFO of $180 to $190 million, AFFO per share of $0.70 to $0.74, and low single-digit same warehouse NOI growth.

The Company's outlook excludes the impact of unannounced future acquisitions or developments.

Third-Quarter 2024 Financial Results Conference Call and Earnings Presentation with Supplemental

Please visit ir.lineage.com/events-and-presentations to view Lineage's third-quarter 2024 earnings presentation and supplemental financial information.

Lineage will host a conference call and webcast today at 8:00 a.m. Eastern Time to discuss the company's third-quarter 2024 financial results. Interested parties may listen by visiting the Lineage Investor Relations website at ir.onelineage.com. A replay of the webcast will be available for approximately one year on the Company's investor relations website.

About Lineage

Lineage, Inc. (NASDAQ:LINE) is the world's largest global temperature-controlled warehouse REIT with a network of over 480 strategically located facilities totaling over 84 million square feet and approximately 3.0 billion cubic feet of capacity across countries in North America, Europe, and Asia-Pacific. Coupling end-to-end supply chain solutions and technology, Lineage partners with some of the world's largest food and beverage producers, retailers, and distributors to help increase distribution efficiency, advance sustainability, minimize supply chain waste, and, most importantly, feed the world. Learn more at onelineage.com and join us on LinkedIn, Facebook, Instagram, and X.

Forward-Looking Statements

Certain statements contained in this Press Release, other than historical facts, may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which Lineage operates, and beliefs of, and assumptions made by, the Company and involve uncertainties that could significantly affect Lineage's financial results. Such forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "can," "intend," "anticipate," "estimate," "believe," "continue," "possible," "initiatives," "measures," "poised," "focus," "seek," "objective," "goal," "vision," "drive," "opportunity," "target," "strategy," "expect," "plan," "potential," "potentially," "preparing," "projected," "future," "tomorrow," "long-term," "should," "could," "would," "might," "help," "aimed," or other similar words. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Press Release. Such statements include, but are not limited to statements about Lineage's plans, strategies, initiatives, and prospects and statements about its future results of operations, capital expenditures and liquidity. Such statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those projected or anticipated, including, without limitation: general business and economic conditions; continued volatility and uncertainty in the credit markets and broader financial markets, including potential fluctuations in the Consumer Price Index and changes in foreign currency exchange rates; other risks inherent in the real estate business, including customer defaults, potential liability relating to environmental matters, illiquidity of real estate investments, and potential damages from natural disasters; the availability of suitable acquisitions and our ability to acquire those properties or businesses on favorable terms; our success in implementing our business strategy and our ability to identify, underwrite, finance, consummate, integrate and manage diversifying acquisitions or investments; our ability to meet budgeted or stabilized returns on our development and expansion projects within expected time frames, or at all; our ability to manage our expanded operations, including expansion into new markets or business lines; our failure to realize the intended benefits from, or disruptions to our plans and operations or unknown or contingent liabilities related to, our recent and future acquisitions; our failure to successfully integrate and operate acquired or developed properties or businesses; our ability to renew significant customer contracts; the impact of supply chain disruptions, including the impact on labor availability, raw material availability, manufacturing and food production and transportation; difficulties managing an international business and acquiring or operating properties in foreign jurisdictions and unfamiliar metropolitan areas; changes in political conditions, geopolitical turmoil, political instability, civil disturbances, restrictive governmental actions or nationalization in the countries in which we operate; the degree and nature of our competition; our failure to generate sufficient cash flows to service our outstanding indebtedness; our ability to access debt and equity capital markets; continued increases and volatility in interest rates; increased power, labor or construction costs; changes in consumer demand or preferences for products we store in our warehouses; decreased storage rates or increased vacancy rates; labor shortages or our inability to attract and retain talent; changes in, or the failure or inability to comply with, government regulation; a failure of our information technology systems, systems conversions and integrations, cybersecurity attacks or a breach of our information security systems, networks or processes; our failure to maintain our status as a real estate investment trust for U.S. federal income tax purposes; changes in local, state, federal and international laws and regulations, including related to taxation, real estate and zoning laws, and increases in real property tax rates; the impact of any financial, accounting, legal or regulatory issues or litigation that may affect us, and any other risks discussed in the Company's filings with the SEC, including our prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended. Should one of more of the risks or uncertainties described above occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Forward-looking statements in this Press Release speak only as of the date of this Press Release, and undue reliance should not be placed on such statements. We undertake no obligation to, nor do we intend to, update, or otherwise revise, any such statements that may become untrue because of subsequent events.

While the forward-looking statements are considered reasonable by the Company, they are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of the Company and cannot be predicted with accuracy and may not be realized. There can be no assurance that the forward-looking statements can or will be attained or maintained. Actual operating results may vary materially from the forward-looking statements included in this Press Release.

Availability of Information on Lineage's Website and Social Media Channels

Investors and others should note that Lineage routinely announces material information to investors and the marketplace using U.S. Securities and Exchange Commission (SEC) filings, press releases, public conference calls, webcasts and the Lineage Investor Relations website. The Company uses these channels as well as social media channels (e.g., the Lineage LinkedIn account (linkedin.com/company/onelineage/); the Lineage Facebook account (facebook.com/lineagelogistics); the Lineage Instagram account (instagram.com/onelineage/); the Lineage X account (twitter.com/OneLineage)) as a means of disclosing information about the Company's business to our customers, colleagues, investors, and the public. While not all of the information that the Company posts to the Lineage Investor Relations website or on the Company's social media channels is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in Lineage to review the information that it shares at the Investor Relations link located at the top of the page on onelineage.com and on the Company's social media channels. Users may automatically receive email alerts and other information about the Company when enrolling an email address by visiting "Investor Email Alerts" in the "Resources" section of the Lineage Investor Relations website at ir.onelineage.com. The contents of these websites are not incorporated by reference into this press release or any report or document Lineage files with the SEC, and any references to the websites are intended to be inactive textual references only.

LINEAGE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except par values)

	September 30,			December 31,
		2024			2023
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	409		$	68
Restricted cash		3			3
Accounts receivable, net		901			913
Inventories		175			171
Prepaid expenses and other current assets		111			101
Total current assets		1,599			1,256
Non-current assets:
Property, plant, and equipment, net		10,665			10,571
Finance lease right-of-use assets, net		1,305			1,243
Operating lease right-of-use assets, net		659			724
Equity method investments		120			113
Goodwill		3,444			3,394
Other intangible assets, net		1,221			1,280
Other assets		243			290
Total assets	$	19,256		$	18,871
Liabilities, Redeemable Noncontrolling Interests, and Equity
Current liabilities:
Accounts payable and accrued liabilities	$	1,276		$	1,137
Accrued dividends and distributions		97			110
Deferred revenue		83			94
Current portion of long-term debt, net		39			24
Total current liabilities		1,495			1,365
Non-current liabilities:
Long-term finance lease obligations		1,296			1,305
Long-term operating lease obligations		632			692
Deferred income tax liability		322			370
Long-term debt, net		4,955			8,958
Other long-term liabilities		434			159
Total liabilities		9,134			12,849
Commitments and contingencies (Note 17)
Redeemable noncontrolling interests		39			349
Stockholders' equity:
Common stock, $0.01 par value per share – 500 authorized shares; 228 issued and outstanding at September 30, 2024 and 162 issued and outstanding at December 31, 2023		2			2
Additional paid-in capital - common stock		10,744			5,961
Series A preferred stock, $0.01 par value per share – 100 authorized shares; no issued and outstanding shares at September 30, 2024 and less than 1 issued and outstanding shares, with an aggregate liquidation preference of $1 at December 31, 2023		—			1
Retained earnings (accumulated deficit)		(1,662	)		(879	)
Accumulated other comprehensive income (loss)		(58	)		(34	)
Total stockholders' equity		9,026			5,051
Noncontrolling interests		1,057			622
Total equity		10,083			5,673
Total liabilities, redeemable noncontrolling interests, and equity	$	19,256		$	18,871

LINEAGE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in millions, except per share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023
	(unaudited)
Net revenues	$	1,335		$	1,329		$	4,001		$	4,008
Cost of operations		897			899			2,672			2,694
General and administrative expense		143			122			394			361
Depreciation expense		156			137			478			402
Amortization expense		54			51			162			155
Acquisition, transaction, and other expense		592			19			612			45
Restructuring, impairment, and (gain) loss on disposals		8			4			23			11
Total operating expense		1,850			1,232			4,341			3,668
Income from operations		(515	)		97			(340	)		340
Other income (expense):
Equity income (loss), net of tax		—			(2	)		(3	)		(2	)
Gain (loss) on foreign currency transactions, net		14			(5	)		5			(9	)
Interest expense, net		(82	)		(126	)		(369	)		(357	)
Gain (loss) on extinguishment of debt		(6	)		—			(13	)		—
Other nonoperating income (expense), net		1			(19	)		1			(19	)
Total other income (expense), net		(73	)		(152	)		(379	)		(387	)
Net income (loss) before income taxes		(588	)		(55	)		(719	)		(47	)
Income tax expense (benefit)		(45	)		(5	)		(48	)		(8	)
Net income (loss)		(543	)		(50	)		(671	)		(39	)
Less: Net income (loss) attributable to noncontrolling interests		(58	)		(11	)		(78	)		(13	)
Net income (loss) attributable to Lineage, Inc.	$	(485	)	$	(39	)	$	(593	)	$	(26	)

Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on foreign currency hedges and interest rate hedges		(46	)		(10	)		(56	)		(29	)
Foreign currency translation adjustments		115			(78	)		29			(29	)
Comprehensive income (loss)		(474	)		(138	)		(698	)		(97	)
Less: Comprehensive income (loss) attributable to noncontrolling interests		(50	)		(21	)		(81	)		(20	)
Comprehensive income (loss) attributable to Lineage, Inc.	$	(424	)	$	(117	)	$	(617	)	$	(77	)

Basic earnings (loss) per share	$	(2.44	)	$	(0.26	)	$	(3.54	)	$	(0.30	)
Diluted earnings (loss) per share	$	(2.44	)	$	(0.26	)	$	(3.54	)	$	(0.30	)

Weighted average common shares outstanding:
Basic		210			162			178			162
Diluted		210			162			178			162

LINEAGE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY (Unaudited)
(in millions)

				Common Stock
	Redeemable noncontrolling interests			Number of shares		Amount at par value		Additional paid-in capital			Series A preferred stock			Retained earnings (accumulated deficit)			Accumulated other comprehensive income (loss)			Noncontrolling interests			Total equity
Balance as of December 31, 2023	$	349		162		$	2	$	5,961		$	1		$	(879	)	$	(34	)	$	622		$	5,673
Distributions		(1	)	—			—		—			—			—			—			(12	)		(12	)
Stock-based compensation		—		—			—		3			—			—			—			2			5
Other comprehensive income (loss)		—		—			—		—			—			—			(63	)		(8	)		(71	)
Redemption of redeemable noncontrolling interests		(6	)	—			—		—			—			—			—			—			—
Redemption of common stock		—		—			—		(25	)		—			—			—			—			(25	)
Expiration of redemption option		(92	)	—			—		65			—			—			—			27			92
Accretion of redeemable noncontrolling interests		6		—			—		(6	)		—			—			—			—			(6	)
Net income (loss)		—		—			—		—			—			(40	)		—			(8	)		(48	)
Reallocation of noncontrolling interests		—		—			—		(7	)		—			—			—			7			—
Balance as of March 31, 2024		256		162			2		5,991			1			(919	)		(97	)		630			5,608
Common stock issuances, net of equity raise costs		—		—			—		1			—			—			—			—			1
Distributions		—		—			—		—			—			—			—			(12	)		(12	)
Stock-based compensation		—		—			—		4			—			—			—			2			6
Other comprehensive income (loss)		—		—			—		—			—			—			(22	)		(3	)		(25	)
Redeemable noncontrolling interest adjustment		4		—			—		(4	)		—			—			—			—			(4	)
Accretion of redeemable noncontrolling interests		2		—			—		(2	)		—			—			—			—			(2	)
Net income (loss)		—		—			—		—			—			(68	)		—			(12	)		(80	)
Reallocation of noncontrolling interests		—		—			—		(9	)		—			—			—			9			—
Balance as of June 30, 2024		262		162			2		5,981			1			(987	)		(119	)		614			5,492
Common stock issuances, net of equity raise costs		—		65			—		4,873			—			—			—			—			4,873
Assumption of the Put Option liability		—		—			—		—			—			(103	)		—			—			(103	)
Dividends ($0.38 per common share) and other distributions ($0.38 per OP Unit and OPEU)		—		—			—		—			—			(87	)		—			(13	)		(100	)
Stock-based compensation		—		2			—		147			—			—			—			13			160
Withholding of common stock for employee taxes		—		(1	)		—		(46	)		—			—			—			—			(46	)
Other comprehensive income (loss)		—		—			—		—			—			—			61			8			69
Conversion of Management Profits Interests Class C units		—		—			—		(61	)		—			—			—			61			—
Redemption of preferred shares and OPEUs		—		—			—		(46	)		(1	)		—			—			(29	)		(76	)
Reimbursement of Advance Distributions		—		—			—		—			—			—			—			198			198
Reclassification of the Preference Shares		(229	)	—			—		(22	)		—			—			—			—			(22	)
Issuance of OPEUs and settlement of Class D Units		—		—			—		114			—			—			—			73			187
Redeemable noncontrolling interest adjustment		4		—			—		(4	)		—			—			—			—			(4	)
Accretion of redeemable noncontrolling interests		3		—			—		(3	)		—			—			—			—			(3	)
Net income (loss)		(1	)	—			—		—			—			(485	)		—			(57	)		(542	)
Reallocation of noncontrolling interests		—		—			—		(189	)		—			—			—			189			—
Balance as of September 30, 2024	$	39		228		$	2	$	10,744		$	—		$	(1,662	)	$	(58	)	$	1,057		$	10,083

LINEAGE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY (Unaudited)
(in millions)

			Common Stock
	Redeemable noncontrolling interests		Number of shares		Amount at par value		Additional paid-in capital		Series A preferred stock		Retained earnings (accumulated deficit)			Accumulated other comprehensive income (loss)			Noncontrolling interests			Total equity
Balance as of December 31, 2022	$	298		160	$	2	$	5,915	$	1	$	(713	)	$	(37	)	$	641		$	5,809
Common stock issuances, net of equity raise costs				2		—		140		—		—			—			—			140
Contributions from noncontrolling interests								3		—		—			—			2			5
Distributions		—		—		—		—		—		—			—			(12	)		(12	)
Stock-based compensation				—		—		3		—		—			—			2			5
Other comprehensive income (loss)		—		—		—		—		—		—			(8	)		(1	)

Lineage, Inc. Reports Third-Quarter 2024 Financial Results