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Lineage reports Q3 loss, revenue up slightly as cold storage demand remains steady

EditorRachael Rajan
Published 06/11/2024, 11:50
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NOVI, Mich. - Lineage, Inc. (NASDAQ: LINE), the world's largest temperature-controlled warehouse REIT, reported a net loss of $543 million, or $2.44 per diluted share, for the third quarter of 2024. Revenue increased 0.5% year-over-year to $1.3 billion.

Shares were trading flat following the release Wednesday.

The company's adjusted EBITDA rose 5.4% to $333 million, with adjusted EBITDA margin expanding 110 basis points to 24.9%. Adjusted funds from operations (AFFO) jumped 51.8% to $208 million, while AFFO per share grew 20% to $0.90.

Lineage's global warehousing segment saw revenue increase 1.3% to $972 million, driven by 4.3% growth in warehouse services revenue. However, warehouse storage revenue declined 1.4% due to slightly lower occupancy rates.

"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 CEO of Lineage.

The company raised $5.1 billion in its July 2024 IPO and used the proceeds to reduce $4.9 billion of debt. Lineage also declared an initial quarterly dividend of $0.38 per share.

For full-year 2024, Lineage expects AFFO per share of $3.16 to $3.20. The company forecasts fourth quarter AFFO of $180-$190 million and AFFO per share of $0.70-$0.74.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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