LINE
Lineage, INC
NASDAQ
8-K: Lineage Inc. Reports Strong 2024 Results, Issues Positive 2025 Guidance
Sentiment:
Earnings Release and Investor Presentation
26 February 2025 7:09 AM
Lineage Inc. announced its full-year 2024 financial results, highlighting growth in adjusted EBITDA and AFFO per share, and provided an optimistic outlook for 2025.
Capital raise
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.
Summary
- Lineage Inc. reported its financial results for the fourth quarter and full year of 2024.
- Total revenue for 2024 remained flat at $5.34 billion.
- Adjusted EBITDA increased by 4% to $1.3 billion, with the adjusted EBITDA margin rising to 24.9%.
- AFFO increased by 25.4% to $705 million, and AFFO per share increased by 6.5% to $3.29.
- The company declared a quarterly dividend of $0.5275 per share, representing an annualized dividend rate of $2.11 per share.
- For 2025, Lineage expects adjusted EBITDA to be between $1.35 and $1.40 billion and AFFO per share to be between $3.40 and $3.60.
- The company anticipates deploying over $1.5 billion in capital in 2025 for acquisitions and development projects.
Sentiment
Score: 8
Explanation: The document presents a positive outlook with strong growth in key financial metrics and strategic initiatives. While there are some challenges and risks, the overall tone is optimistic and confident.
Positives
- Adjusted EBITDA increased by 4% to $1.3 billion for 2024.
- AFFO increased 25.4% to $705 million.
- AFFO per share increased by 6.5% to $3.29 for the full year 2024.
- The company has the capacity to deploy over $1.5 billion of capital in 2025.
- The company's investment grade balance sheet provides a strong foundation for future growth.
- The company's operational excellence enabled them to expand margins as well as grow adjusted EBITDA and AFFO per share in 2024.
- The company's market leadership and network effects are strong.
Negatives
- The company reported a GAAP net loss of ($751) million for the full year 2024.
- Total revenue for 2024 remained flat compared to the previous year at $5.34 billion.
- Global Integrated Solutions segment revenues decreased 2.2% to $1,453 million.
Risks
- The company's forward-looking statements are subject to various risks and uncertainties, including general business and economic conditions.
- Continued volatility and uncertainty in the credit markets and broader financial markets could impact the company's performance.
- The company faces risks inherent in the real estate business, including customer defaults and potential liability relating to environmental matters.
- The company's ability to access debt and equity capital markets could be impacted by market conditions.
- The company's failure to successfully integrate and operate acquired or developed properties or businesses could negatively impact results.
- The company's failure to generate sufficient cash flows to service outstanding indebtedness could impact results.
- The company's failure to maintain its status as a real estate investment trust for U.S. federal income tax purposes could impact results.
Future Outlook
The company expects full-year 2025 adjusted EBITDA to be between $1.35 and $1.40 billion and Adjusted FFO per share to be between $3.40 and $3.60. The company anticipates deploying over $1.5 billion of capital in 2025 for acquisitions and development projects.
Management Comments
- Greg Lehmkuhl, president and chief executive officer of Lineage, Inc., stated, 'We are pleased to report a strong finish to 2024, with 10% growth in fourth-quarter adjusted EBITDA, capping a transformational year for our company.'
- Greg Lehmkuhl stated, 'Our market leadership, network effects, and operational excellence enabled us to expand margins as well as grow adjusted EBITDA and AFFO per share in 2024.'
- Greg Lehmkuhl stated, 'As we look ahead to 2025, we are well-positioned to expand our leadership position in the global food supply chain.'
- Greg Lehmkuhl stated, 'With an exciting blend of internal and external growth opportunities, we believe we have never been better positioned to deliver compounding growth for our shareholders.'
Industry Context
Lineage operates in the temperature-controlled warehousing sector, which is a critical part of the global food supply chain. The company's performance is influenced by factors such as population growth, consumer trends related to frozen food, and the increasing reliance on cold storage facilities. Lineage is the largest player in a fragmented industry, competing with other REITs and smaller regional players.
Comparison to Industry Standards
- Lineage is the largest temperature-controlled warehouse REIT globally, with 3.1 billion cubic feet of capacity.
- Americold Realty Trust, Inc. is a major competitor, but Lineage holds a larger global market share.
- Lineage's focus on technology and automation aligns with industry trends towards improving efficiency and reducing costs.
- The company's expansion strategy through acquisitions and greenfield projects is consistent with the growth strategies of other major players in the REIT sector.
Stakeholder Impact
- Shareholders can expect continued dividend payments and potential for capital appreciation.
- Employees can expect a focus on safety, inclusion, and belonging.
- Customers can expect world-class service and innovative solutions.
- The company's sustainability initiatives aim to minimize environmental impact.
Next Steps
- The company plans to deploy over $1.5 billion in capital for acquisitions and development projects in 2025.
- The company will continue to focus on providing world-class service to its customers and improving operational efficiency.
- The company will host a conference call and webcast to discuss the fourth-quarter and full-year 2024 financial results.
Key Dates
- February 26, 2025: Date of earnings release and investor presentation
- December 31, 2024: End of the reported financial year
Keywords
LINE
Lineage, INC
NASDAQ
Sector: Real Estate
Filings with Classifications
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.
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
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.
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.
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
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
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.
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.
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.
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.
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.