Lineage, Inc.

What they do

Lineage owns, operates, leases, and manages temperature-controlled warehouses that store frozen and perishable food for more than 11,000 customers, including large food retailers, manufacturers, processors, and food service distributors. It reports two segments: Global Warehousing, which provides storage, blast freezing, and handling services, and Global Integrated Solutions, which adds supply chain services that move products through the food chain. Revenue comes from storage fees, warehouse services fees, and rent under warehouse agreements, rate letters, tariff sheets, and lease agreements.

Revenue drivers

• Global Warehousing — Temperature-controlled storage, blast freezing, and handling services across 482 warehouses (excluding 19 integrated-solutions warehouses); generated $3,950 million of revenue and $1,484 million of segment NOI in 2025, about 86% of total NOI.
• Global Integrated Solutions — Supply chain services complementing warehousing to move products through the food supply chain; represented approximately 14% of total NOI for the year ended December 31, 2025.
• North America warehousing — Largest regional block with 307 warehouses, 2,191 million cubic feet, and 6,783 thousand pallet positions; $2,898 million of revenue and $1,129 million of segment NOI in 2025 at 79.8% average economic occupancy.
• Europe and Asia-Pacific warehousing — Europe had 86 warehouses, 638 million cubic feet, $687 million of revenue and $228 million of segment NOI; Asia-Pacific had 89 warehouses, 238 million cubic feet, $365 million of revenue and $127 million of segment NOI in 2025.

Recent performance

Second-quarter 2026 total revenue rose 0.8% to $1,361 million, but GAAP net loss was $(32) million, or $(0.13) per diluted share. Adjusted EBITDA fell 1.8% to $320 million and adjusted EBITDA margin declined 60 basis points to 23.5%, while AFFO fell 6.2% to $198 million and AFFO per share fell 6.2% to $0.76. The company declared a quarterly dividend of $0.5325 per share, an annualized rate of $2.13. Same warehouse physical occupancy rose 90 basis points year over year, which management called a positive signal that inventory levels have normalized. Full-year 2025 revenue was $5.36 billion with a net loss of $113.0 million and operating cash flow of $943.0 million.

Strategy

Lineage is investing in its temperature-controlled network through acquisitions, greenfields, and expansions, including four cold storage warehouses and related assets acquired from Tyson Foods for $256 million in 2025. It agreed to design, build, and operate two fully automated cold storage warehouses with Tyson Foods as anchor customer, breaking ground on one in Texas in the second half of 2025. It completed a new greenfield warehouse in Bremerhaven, Germany, and neared completion of a Hobart, Indiana expansion that began operating in early 2026. The portfolio includes 83 automated warehouses, 25 fully automated and 58 semi-automated, and the company cited a cubic-foot weighted average portfolio age of about 22 years as of December 31, 2025.

Risks

• Industry concentration — Investments are concentrated in the temperature-controlled warehouse industry, so an economic downturn in that industry or in customer product markets would materially and adversely affect the company.
• Geographic concentration — Warehouses are concentrated in certain geographic areas, and inability to quickly restore operations after adverse weather, a localized disaster, or another disturbance in a key geography could materially and adversely affect results.
• Inflation and cost pressure — Operating expenses, interest expense, and real estate acquisition and construction costs could be adversely impacted by periods of heightened inflation.
• Labor and supply chain disruption — Labor shortages, increased turnover, work stoppages, and supply chain disruptions have in the past disrupted operations, increased costs, and negatively impacted profitability, and may do so again.

Outlook

Management updated full-year 2026 guidance to adjusted EBITDA of $1.26 to $1.29 billion and AFFO per share of $2.80 to $3.05, excluding the impact of unannounced future acquisitions or developments. A 90 basis point year-over-year increase in same warehouse physical occupancy was described as a sign that inventory levels have further normalized and the industry is stabilizing. The company also said it remains committed to a full recovery following the fire at its Big Bear facility.