LINE
Lineage, INC
NASDAQ
DEF: Lineage, Inc. Aims for Continued Growth and Innovation: 2025 Annual Meeting Focuses on Director Elections, Executive Compensation
Sentiment:
Proxy Statement
28 April 2025 7:08 AM
Lineage, Inc. is set to hold its 2025 annual meeting, focusing on electing directors, ratifying the accounting firm, and addressing executive compensation, following a transformational year marked by a successful IPO and strategic acquisitions.
Better than expected
The company's IPO was the largest of 2024 and the largest REIT IPO in history, reducing leverage to under 5x.
Lineage generated $5.3 billion in total revenue and maintained a 78% same warehouse physical occupancy rate.
Over $760 million was deployed in growth capital, including acquisitions and greenfield developments.
The company reached its 100th patent and continued piloting the rollout of LinOS, its proprietary warehouse execution system.
Summary
- Lineage, Inc. is holding its 2025 annual meeting of stockholders on June 18, 2025, to vote on several key proposals.
- The proposals include the election of ten directors, ratification of PricewaterhouseCoopers LLP as the independent accounting firm, and advisory votes on executive compensation and the frequency of such votes.
- In 2024, Lineage achieved strong operating results, executed accretive acquisitions, and successfully listed on the Nasdaq Global Select Market through an IPO, reducing leverage to under 5x.
- The company generated $5.3 billion in total revenue and maintained a 78% same warehouse physical occupancy rate.
- Lineage deployed over $760 million in growth capital, including acquisitions of ColdPoint Logistics and Luik Natie, and opened a fully automated cold storage warehouse in Hazleton, Pennsylvania.
- The company reached its 100th patent and continued piloting the rollout of LinOS, its proprietary warehouse execution system.
- Looking ahead, Lineage is focused on sustained organic growth, industry leadership, and maximizing shareholder value through operational excellence and innovation.
Sentiment
Score: 8
Explanation: The document expresses a positive outlook, highlighting significant achievements like the successful IPO and strategic acquisitions, while also acknowledging future challenges. The overall tone suggests confidence in the company's ability to continue growing and creating value.
Positives
- Lineage successfully executed the largest IPO of 2024 and the largest REIT IPO in history.
- The company achieved investment-grade ratings from Moody's Investors Service and Fitch Ratings.
- Lineage expanded margins, increased adjusted EBITDA and AFFO per share, and delivered $5.3 billion in total revenue.
- The company deployed over $760 million in growth capital to reinforce market leadership and expand its global footprint.
- Lineage achieved its best truck turn times and an all-time internal benchmark for safety performance.
Risks
- The company acknowledges new opportunities, challenges, and responsibilities that accompany its success.
- The company faces a challenging macroeconomic landscape.
- The company is subject to known and unknown risks and uncertainties which could cause actual results to differ materially from those projected or anticipated, including, but not limited to, the important factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2024 and in our other filings with the Securities and Exchange Commission (the SEC).
Future Outlook
Lineage is focused on executing its disciplined strategy for sustained organic growth and industry leadership, with a robust pipeline of potential future greenfield developments, strategic expansions, and acquisitions that are expected to be value-accretive.
Management Comments
- Greg Lehmkuhl, President & Chief Executive Officer: 'Looking back on 2024, it's clear this has been a transformational year for Lineage, Inc. one that not only strengthened our leadership in the cold storage industry but also laid the foundation for potential continued innovation, growth and long-term value creation.'
- Greg Lehmkuhl, President & Chief Executive Officer: 'With our unique portfolio of assets, a disciplined approach to growth, and a strong commitment to innovation, we believe Lineage will continue to shape the future of the cold storage industry and create sustainable value for our shareholders.'
Industry Context
Lineage operates in the high-growth and recession-resilient cold storage sector, driven by increasing global demand for temperature-controlled logistics, population growth, favorable consumer trends, and a rising reliance on temperature-controlled logistics support.
Comparison to Industry Standards
- The document mentions Americold Realty Trust, Inc., Digital Realty Trust, Inc., Equinix, Inc., Prologis, Inc., and Public Storage as comparible companies.
- Lineage's executive compensation levels varied by individual within the peer group range and were in the upper quartile for each NEO in recognition of the experience and caliber of our executive management team, company performance relative to our stakeholder priorities, each executive's impact and criticality to our strategy and mission, relative scope of responsibility and potential, individual performance and demonstrated leadership, and internal equity pay considerations.
Stakeholder Impact
- The company aims to maximize shareholder value and deliver compounding growth at attractive returns.
- Lineage is committed to building a more sustainable cold chain.
- The company values the ongoing partnership with customers and suppliers.
- Lineage recognizes the exceptional work of its team members and their dedication to customer support.
Next Steps
- Stockholders are urged to submit their proxy voting instructions for the Annual Meeting.
- The company will continue to execute its strategy for sustained organic growth and industry leadership.
- Lineage will continue to focus on operational excellence, innovation, and maximizing shareholder value.
Related Party Transactions
- BGLH, an entity indirectly controlled by our Co-Executive Chairmen, Adam Forste and Kevin Marchetti, is currently our majority stockholder.
- During the year ended December 31, 2024 and prior to our IPO, we distributed $88.5 million in dividends to BGLH.
- For the year ended December 31, 2024, Bay Grove received compensation of $8.6 million pursuant to the operating services agreement.
- On July 24, 2024, we entered into a transition services agreement with Bay Grove Management, an affiliate of BG Capital, pursuant to which Bay Grove Management agreed to provide us with certain transition services supporting capital deployment and mergers and acquisitions activity through July 26, 2027.
Key Dates
- March 24, 2025: Record date for the determination of stockholders entitled to notice of, and to vote at, the Annual Meeting.
- April 7, 2025: Filing of Form 8-K regarding change in independent registered public accounting firm.
- April 28, 2025: Distribution of Notice of 2025 Annual Meeting of Stockholders and Proxy Statement.
- June 18, 2025: 2025 Annual Meeting of Stockholders to be held virtually at 1:00 p.m. Eastern Daylight Time.
- December 31, 2025: Fiscal year ending date for which PricewaterhouseCoopers LLP is appointed as independent registered public accounting firm.
- 2026: Expected date of next Say-on-Pay Vote at annual stockholders meeting.
Keywords
Lineage, cold storage, IPO, EBITDA, AFFO, acquisitions, warehouses, logistics, innovation, shareholder value
LINE
Lineage, INC
NASDAQ
Sector: Real Estate
Filings with Classifications
Capital raise
17 June 2025 4:19 PM
Debt Offering Announcement
- Lineage OP, LP issued and sold $500,000,000 aggregate principal amount of 5.250% Senior Notes due 2030.
- The net proceeds from the offering were approximately $489 million.
Capital raise
10 June 2025 8:57 PM
Debt Offering Announcement
- Lineage OP, LP, the Company's operating partnership, priced an offering of $500,000,000 aggregate principal amount of 5.250% Senior Notes due 2030.
- The notes were priced at 98.991% of the principal amount.
- The notes are senior unsecured obligations, fully and unconditionally guaranteed by Lineage, Inc. and certain subsidiaries.
- Proceeds are intended to repay amounts outstanding under the revolving credit facility and for general corporate and working capital purposes.
- The notes are offered only to qualified institutional buyers under Rule 144A or non-U.S. persons under Regulation S.
Capital raise
10 June 2025 9:09 AM
Capital Raise Announcement
- Lineage OP, LP, the operating partnership of Lineage, Inc., has commenced a private offering of senior notes.
- The notes will be senior unsecured obligations of the Operating Partnership and fully and unconditionally guaranteed by Lineage, Inc. and certain subsidiaries.
- The offering is a private placement to qualified institutional buyers under Rule 144A and to certain non-U.S. persons under Regulation S.
- The net proceeds are intended for repayment of outstanding amounts under the revolving credit facility and for general corporate and working capital purposes.
Worse than expected
30 April 2025 7:12 AM
Quarterly Report
- The company's net revenues decreased compared to the same period last year.
- The company reported a net loss attributable to Lineage, Inc.
- Same warehouse NOI decreased, reflecting customer inventory rationalization.
- General and administrative expenses increased significantly due to higher stock-based compensation expenses.
Worse than expected
30 April 2025 7:06 AM
Earnings Release
- Revenue decreased by (2.7)% compared to the previous year.
- Adjusted EBITDA decreased by (7.0)%, and the adjusted EBITDA margin also declined.
- Same warehouse NOI decreased by (7.9)%, indicating challenges in maintaining growth in existing facilities.
Better than expected
28 April 2025 7:08 AM
Proxy Statement
- The company's IPO was the largest of 2024 and the largest REIT IPO in history, reducing leverage to under 5x.
- Lineage generated $5.3 billion in total revenue and maintained a 78% same warehouse physical occupancy rate.
- Over $760 million was deployed in growth capital, including acquisitions and greenfield developments.
- The company reached its 100th patent and continued piloting the rollout of LinOS, its proprietary warehouse execution system.
Worse than expected
26 February 2025 7:16 AM
Annual Results
- The company experienced a net loss of $0.8 billion, which is worse than expected.
Capital raise
26 February 2025 7:16 AM
Annual Results
- The company may attempt to access property-level secured debt, bank debt and the unsecured bond market, in each case across multiple currencies and geographies, which would provide it with capital-raising flexibility to fund its operations.
Capital raise
26 February 2025 7:09 AM
Earnings Release and Investor Presentation
- The company completed the largest REIT IPO of all time, raising $5.1B.
- The company has the capacity to deploy more than $1.5 billion of capital in 2025.
Worse than expected
6 November 2024 7:13 AM
Quarterly Report
- The company reported a significant net loss of $543 million, compared to a net loss of $50 million in the same period last year.
- The company's acquisition, transaction, and other expenses were significantly higher than the previous year, primarily due to IPO-related costs.
- The company's economic and physical occupancy rates decreased compared to the same period last year.
Better than expected
6 November 2024 7:05 AM
Quarterly Report
- The company's AFFO growth of 51.8% and AFFO per share growth of 20.0% significantly exceeded expectations.
- The successful IPO and achievement of investment-grade credit ratings are also better than expected results.
Capital raise
21 August 2024 4:32 PM
Quarterly Report
- The company closed its IPO on July 26, 2024, raising approximately $4.875 billion in net proceeds.
- The company issued 56,882,051 shares of common stock at a price of $78.00 per share.
- The underwriters exercised their option to purchase an additional 8,532,307 shares of common stock on July 31, 2024.
Worse than expected
21 August 2024 4:32 PM
Quarterly Report
- The company reported a net loss of $80 million for the quarter, a significant decrease compared to the prior year.
- The company's same warehouse pool saw a decrease in NOI of $8 million or 2.3% due to revenue and cost of operations factors.
Capital raise
24 July 2024 8:43 PM
Registration Statement
- Lineage, Inc. is registering 11,364,358 additional shares of common stock for potential sale.
- The maximum aggregate offering price for these shares is $886,419,924.00.
- This capital raise could be used for various corporate purposes, including acquisitions or debt repayment.
Worse than expected
22 July 2024 6:55 AM
S-11/A Filing
- Preliminary estimates for the quarter ended June 30, 2024 indicate a decrease in total revenue, same warehouse NOI, average physical occupancy, and average economic occupancy compared to the same period in 2023.
Capital raise
22 July 2024 6:55 AM
S-11/A Filing
- Lineage is offering 47,000,000 shares of common stock in an IPO.
- The company estimates net proceeds of approximately $3.4 billion from the offering.
- The company intends to use the net proceeds to repay debt and for general corporate purposes.
- Norges Bank Investment Management has indicated an interest in purchasing up to $900 million in shares.
Worse than expected
16 July 2024 7:03 AM
Merger Announcement
- Preliminary estimates for the quarter ended June 30, 2024 indicate a decrease in same warehouse NOI compared to the same period in 2023.
Capital raise
16 July 2024 7:03 AM
Merger Announcement
- Lineage is offering 47,000,000 shares of its common stock in an initial public offering.
- The underwriters have the option to purchase up to an additional 7,050,000 shares.
- Norges Bank Investment Management has indicated an interest in purchasing up to $900 million in shares.
Capital raise
26 June 2024 9:08 AM
Initial Public Offering
- Lineage, Inc. is offering shares of its common stock in an initial public offering.
- The company intends to use the net proceeds from the offering to repay a $2.4 billion delayed-draw term loan and for general corporate purposes.
- A directed share program will reserve a percentage of the shares for sale to company insiders and partners.
Worse than expected
26 June 2024 9:08 AM
Initial Public Offering
- Lineage reported a net loss of $162.8 million for the twelve months ended March 31, 2024.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.