Lineage, Inc. Reports Full-Year 2025 Financial Results and Initiates 2026 Guidance | LINE Stock News

NOVI, Mich.--(BUSINESS WIRE)--Lineage, Inc. (NASDAQ: LINE) (the "Company"), the world’s largest global temperature-controlled warehouse REIT, today announced its financial results for the fourth quarter and full year of 2025.Fourth-Quarter 2025 Financial HighlightsTotal revenue decreased (0.2)% to $1,336 millionGAAP net income of $6 million, or $0.03 per diluted common shareAdjusted EBITDA decreased (2.4)% to $327 million; adjusted EBITDA margin decreased (50) bps to 24.5%AFFO increased 0.5% to $214 million; AFFO per share remained flat at $0.83Declared quarterly dividend of $0.5275 per share, representing annualized dividend rate of $2.11 per shareFull-Year 2025 Financial HighlightsTotal revenue remained flat at $5,355 millionGAAP net loss of $(113) million, or $(0.43) per diluted common shareAdjusted EBITDA decreased (2.3)% to $1,298 million; adjusted EBITDA margin decreased (70) bps to 24.2%AFFO increased 22.7% to $865 million; AFFO per share increased 2.4% to $3.37“We closed out 2025 with strong execution across the network, as utilization increased nicely sequentially in line with our expectations, signaling a return of normal seasonality in our business trends,” said Greg Lehmkuhl, president and chief executive officer of Lineage. “For the full year 2025, we delivered solid results amid challenging industry conditions given our continued focus on operational excellence, productivity improvements, and consistent service for our customers. I want to thank our teams who did an outstanding job managing costs and driving efficiency, while also executing on significant new business wins.“As we look ahead to 2026, we are taking a disciplined approach to planning and execution. We will continue to control the controllables, including focusing on administrative costs and capex management, driving labor productivity and energy efficiency and leveraging our network to meet shifting customer needs. We believe this approach positions Lineage to continue building durable, long-term value,” concluded Lehmkuhl.Initiating Full-Year 2026 GuidanceLineage expects full-year 2026 adjusted EBITDA of $1.25 to $1.30 billion and Adjusted FFO ("AFFO") per share of $2.75 to $3.00.The Company's guidance excludes the impact of unannounced future acquisitions or developments.Please refer to Lineage's Earnings Presentation and Supplemental Information for additional details related to the Company's guidance.Fourth-Quarter and Full-Year 2025 Financial Results Conference Call and Earnings Presentation with SupplementalPlease visit ir.onelineage.com/events-and-presentations to view Lineage’s fourth-quarter and full-year 2025 Earnings Presentation and Supplemental Information.Lineage will host a conference call and webcast today at 8:00 a.m. Eastern Time to discuss the Company’s fourth-quarter and full-year 2025 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 LineageLineage, Inc. (NASDAQ: LINE) is the world’s largest global temperature-controlled warehouse REIT with a network of over 500 strategically located facilities totaling approximately 88 million square feet and approximately 3.1 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 StatementsCertain 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; the impact of tariffs and global trade disruptions on us and our customers; other risks inherent in the real estate business, including customer defaults, potential liability related to environmental matters, illiquidity of real estate investments and potential damages from natural disasters; the availability of suitable acquisitions and our ability to acquire 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 and greenfield developments; 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 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; risks associated with artificial intelligence; our failure to maintain an effective system of internal control over financial reporting; our failure to maintain our status as a real estate investment trust (“REIT”) for U.S. federal income tax purposes; changes in local, state, federal, and international laws and regulations, including related to taxation, tariffs, real estate and zoning laws, and increases in real property tax rates, and challenges to our tax positions; the impact of any financial, accounting, legal, tax or regulatory issues or litigation that may affect us; and any other risks discussed in the Company’s filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC. Should one or 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 ChannelsInvestors 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 SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(in millions, except par values) December 31,December 31,20252024AssetsCurrent assets:Cash, cash equivalents, and restricted cash$66$175Accounts receivable, net896826Inventories145187Prepaid expenses and other current assets13297Total current assets1,2391,285Non-current assets:Property, plant, and equipment, net11,33810,627Finance lease right-of-use assets, net1,1011,254Operating lease right-of-use assets, net616627Equity method investments131124Goodwill3,4663,338Other intangible assets, net1,0901,127Other assets204279Total assets$19,185$18,661Liabilities, Redeemable Noncontrolling Interests, and EquityCurrent liabilities:Accounts payable and accrued liabilities$1,331$1,220Accrued dividends and distributions134134Deferred revenue8183Current portion of long-term debt, net256Total current liabilities1,5481,493Non-current liabilities:Long-term finance lease obligations1,2161,249Long-term operating lease obligations599605Deferred income tax liability303304Long-term debt, net6,1074,906Other long-term liabilities169410Total liabilities9,9428,967Commitments and contingenciesRedeemable noncontrolling interests743Stockholders’ equity:Common stock, $0.01 par value per share – 500 authorized shares; 227 issued and outstanding at December 31, 2025 and 228 issued and outstanding at December 31, 202422Additional paid-in capital - common stock10,78010,764Retained earnings (accumulated deficit)(2,439)(1,855)Accumulated other comprehensive income (loss)(97)(273)Total stockholders’ equity8,2468,638Noncontrolling interests9901,013Total equity9,2369,651Total liabilities, redeemable noncontrolling interests, and equity$19,185$18,661 LINEAGE, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)(in millions, except per share amounts) Three Months EndedDecember 31,Year EndedDecember 31,2025202420252024Net revenues$1,336$1,339$5,355$5,340Cost of operations9069063,6343,578General and administrative expense132145574539Depreciation expense173181675659Amortization expense5655220217Acquisition, transaction, and other expense33967651Goodwill impairment20—48—Restructuring, impairment, and (gain) loss on disposals(21)34(44)57Total operating expense1,2691,3605,1745,701Income from operations67(21)181(361)Other income (expense):Equity income (loss), net of tax—(3)(3)(6)Gain (loss) on foreign currency transactions, net(8)(30)28(25)Interest expense, net(73)(61)(268)(430)Gain (loss) on extinguishment of debt—(4)(3)(17)Other nonoperating income (expense), net6(2)(50)(1)Total other income (expense), net(75)(100)(296)(479)Net income (loss) before income taxes(8)(121)(115)(840)Income tax expense (benefit)(14)(41)(2)(89)Net income (loss)6(80)(113)(751)Less: Net income (loss) attributable to noncontrolling interests—(9)(13)(87)Net income (loss) attributable to Lineage, Inc.$6$(71)$(100)$(664)Other comprehensive income (loss), net of tax:Unrealized gain (loss) on interest rate hedges and foreign currency hedges(15)(4)(61)(60)Foreign currency translation adjustments35(236)258(207)Comprehensive income (loss)26(320)84(1,018)Less: Comprehensive income (loss) attributable to noncontrolling interests2(34)8(115)Comprehensive income (loss) attributable to Lineage, Inc.$24$(286)$76$(903)Basic earnings (loss) per share$0.03$(0.33)$(0.43)$(3.70)Diluted earnings (loss) per share$0.03$(0.33)$(0.43)$(3.70)Weighted average common shares outstanding:Basic228228228191Diluted228228228191 LINEAGE, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY(in millions) Common StockRedeemablenoncontrollinginterestsNumber ofsharesPar valueAdditionalpaid-incapitalSeries ApreferredstockRetainedearnings(accumulateddeficit)Accumulatedothercomprehensiveincome (loss)NoncontrollinginterestsTotalequityBalance as of December 31, 2023$349162$2$5,961$1$(879)$(34)$622$5,673Common stock issuances, net of equity raise costs—65—4,874————4,874Assumption of the Put Option liability—————(103)——(103)Dividends ($0.91 per common share) and other distributions ($0.91 per OP Unit and OPEU)(1)————(209)—(50)(259)Stock-based compensation—2—176———39215Withholding of common stock for employee taxes—(1)—(46)————(46)Other comprehensive income (loss)——————(239)(28)(267)Conversion of Management Profits Interests Class C units———(61)———61—Redemption of preferred shares and OPEUs———(46)(1)——(29)(76)Reimbursement of Advance Distributions———————198198Redemption of redeemable noncontrolling interests(6)————————Redemption of common stock———(42)————(42)Reclassification of the Preference Shares(229)——(22)————(22)Issuance of OPEUs and settlement of Class D Units———114———73187Expiration of redemption option(92)——65———2792Redeemable noncontrolling interest redemption value adjustment23——(23)————(23)Net income (loss)(1)————(664)—(86)(750)Reallocation of noncontrolling interests———(186)———186—Balance as of December 31, 2024$43228$2$10,764$—$(1,855)$(273)$1,013$9,651 LINEAGE, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY(in millions) Common StockRedeemablenoncontrollinginterestsNumber ofsharesPar valueAdditionalpaid-incapitalRetainedearnings(accumulateddeficit)Accumulatedothercomprehensiveincome (loss)NoncontrollinginterestsTotalequityBalance as of December 31, 2024$43228$2$10,764$(1,855)$(273)$1,013$9,651Dividends ($2.11 per common share) and other distributions ($2.11 per OP Unit and OPEU)————(484)—(55)(539)Stock-based compensation—1—78——48126Withholding of common stock for employee taxes———(12)———(12)Other comprehensive income (loss)—————17621197Redemption of redeemable noncontrolling interests(28)———————Redemption of common stock—(2)—(82)———(82)Expiration of redemption option(6)—————66Redeemable noncontrolling interest redemption value adjustment(2)——2———2Net income (loss)————(100)—(13)(113)Reallocation of noncontrolling interests———20——(20)—OP Units reclassification———10——(10)—Balance as of December 31, 2025$7227$2$10,780$(2,439)$(97)$990$9,236 LINEAGE, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(in millions) Year Ended December 31,20252024Cash flows from operating activities:Net income (loss)$(113)$(751)Adjustments to reconcile net income (loss) to net cash provided by operating activities:Provision for credit losses65Impairment of long-lived assets and other intangible assets498Goodwill impairment48—Gain on insurance recovery(58)(76)Depreciation and amortization895876(Gain) loss on extinguishment of debt, net317Amortization of deferred financing costs, discount, and above/below market debt1219Stock-based compensation126215(Gain) loss on foreign currency transactions, net(28)25Deferred income tax(16)(105)Put Options fair value adjustment3031Proceeds from insurance recoveries - business interruption8—(Gain) loss on divestitures, net52—(Gain) loss from sale of assets, net(23)10Vesting of Class D interests—185One-time Internalization expense to Bay Grove—200Other operating activities89Changes in operating assets and liabilities (excluding effects of acquisitions):Accounts receivable(37)64Prepaid expenses, other assets, and other long-term liabilities(11)(29)Inventories(5)(18)Accounts payable and accrued liabilities and deferred revenue40(85)Right-of-use assets and lease obligations213Net cash provided by operating activities943703Cash flows from investing activities:Acquisitions, net of cash acquired(443)(346)Purchase of property, plant, and equipment(747)(691)Proceeds from sale of assets707Proceeds from divestiture, net of cash14—Proceeds from insurance recovery on impaired long-lived assets51105Investments in Emergent Cold LatAm Holdings, LLC(9)(20)Proceeds from repayment of notes by related parties—15Other investing activity(3)11Net cash used in investing activities(1,067)(919)Cash flows from financing activities:Dividends and other distributions(537)(234)Redemption of redeemable noncontrolling interests(28)(6)Repurchase of common shares for employee income taxes on stock-based compensation(12)(46)Financing fees(13)(45)Proceeds from long-term debt, net of discount1,2982,481Repayments of long-term debt and finance leases(231)(7,112)Payment of deferred and contingent consideration liabilities(6)(46)Borrowings on Revolving Credit Facility2,8344,112Repayments on Revolving Credit Facility(3,060)(3,512)Settlement of Put Option liability(144)(27)Issuance of common stock in IPO, net of equity raise costs—4,879Redemption of units issued as stock compensation—(2)Redemption of common stock(82)(42)Redemption of OPEUs—(75)Other financing activity(5)(5)Net cash provided by financing activities14320Impact of foreign exchange rates on cash, cash equivalents, and restricted cash1—Net increase (decrease) in cash, cash equivalents, and restricted cash(109)104Cash, cash equivalents, and restricted cash at the beginning of the period17571Cash, cash equivalents, and restricted cash at the end of the period$66$175 Global Warehousing SegmentThe following table presents the operating results of our global warehousing segment for the three months ended December 31, 2025 and 2024.Three Months Ended December 31,20252024Change(in millions except revenue per pallet)Warehouse storage$537$5085.7%Warehouse services4864723.0%Total global warehousing segment revenues1,0239804.4%Labor(1)3893559.6%Power56535.7%Other warehouse costs(2)2051907.9%Total global warehousing segment cost of operations6505988.7%Global warehousing segment NOI$373$382(2.4)%Total global warehousing segment margin36.5%39.0%(250) bpsNumber of warehouse sites482469Warehouse storage(3)Average economic occupancyAverage occupied economic pallets (in thousands)8,5308,3392.3%Economic occupancy percentage83.5%83.9%(40) bpsStorage revenue per economic occupied pallet$62.86$60.993.1%Average physical occupancyAverage physical occupied pallets (in thousands)7,9487,7642.4%Average physical pallet positions (in thousands)10,2199,9352.9%Physical occupancy percentage77.8%78.1%(30) bpsStorage revenue per physical occupied pallet$67.46$65.503.0%Warehouse services(3)Throughput pallets (in thousands)14,03313,3345.2%Warehouse services revenue per throughput pallet$31.73$32.46(2.2)%(1) Labor cost of operations excludes $3 million and less than a million of stock-based compensation expense and related employer-paid payroll taxes for the three months ended December 31, 2025 and 2024, respectively.(2) Includes real estate rent expense (operating leases) of $24 million and $24 million for the three months ended December 31, 2025 and 2024, respectively, and non-real estate rent expense (equipment lease and rentals) of $5 million and $6 million for the three months ended December 31, 2025 and 2024, respectively.(3) Warehouse storage and warehouse services metrics exclude facilities owned or leased by the customer for which we manage the warehouse operations on their behalf (“managed sites”).Global Warehousing SegmentThe following table presents the operating results of our global warehousing segment for the years ended December 31, 2025 and 2024.Year Ended December 31,20252024Change(in millions except revenue per pallet)Warehouse storage$2,060$2,0420.9%Warehouse services1,8901,8452.4%Total global warehousing segment revenues3,9503,8871.6%Labor(1)1,4981,4175.7%Power2182084.8%Other warehouse costs(2)7507283.0%Total global warehousing segment cost of operations2,4662,3534.8%Global warehousing segment NOI$1,484$1,534(3.3)%Total global warehousing segment margin37.6%39.5%(190) bpsNumber of warehouse sites482469Warehouse storage(3)Average economic occupancyAverage occupied economic pallets (in thousands)8,1948,1750.2%Economic occupancy percentage81.0%83.1%(210) bpsStorage revenue per economic occupied pallet$251.15$249.820.5%Average physical occupancyAverage physical occupied pallets (in thousands)7,5977,5690.4%Average physical pallet positions (in thousands)10,1199,8362.9%Physical occupancy percentage75.1%77.0%(190) bpsStorage revenue per physical occupied pallet$270.95$269.820.4%Warehouse services(3)Throughput pallets (in thousands)54,28452,5733.3%Warehouse services revenue per throughput pallet$31.92$32.17(0.8)%(1) Labor cost of operations excludes $9 million and $1 million of stock-based compensation expense and related employer-paid payroll taxes for the year ended December 31, 2025 and 2024, respectively.(2) Includes real estate rent expense (operating leases) of $93 million and $99 million for the year ended December 31, 2025 and 2024, respectively, and non-real estate rent expense (equipment lease and rentals) of $19 million and $18 million for the year ended December 31, 2025 and 2024, respectively.(3) Warehouse storage and warehouse services metrics exclude facilities owned or leased by the customer for which we manage the warehouse operations on their behalf (“managed sites”).Same Warehouse ResultsThe following tables present revenues, cost of operations, same warehouse NOI, and margins for our same warehouses for the three months and years ended December 31, 2025 and 2024.Three Months Ended December 31,20252024Change(in millions except revenue per pallet)Warehouse storage$478$4731.1%Warehouse services423435(2.8)%Total same warehouse revenues901908(0.8)%Labor3383302.4%Power49482.1%Other warehouse costs1741721.2%Total same warehouse cost of operations5615502.0%Same warehouse NOI$340$358(5.0)%Total same warehouse margin37.7%39.4%(170) bpsNumber of same warehouse sites413413Warehouse storage(1)Economic occupancyAverage occupied economic pallets (in thousands)7,6637,718(0.7)%Economic occupancy percentage85.3%85.7%(40) bpsStorage revenue per economic occupied pallet$62.35$61.371.6%Physical occupancyAverage physical occupied pallets (in thousands)7,1237,185(0.9)%Average physical pallet positions (in thousands)8,9819,007(0.3)%Physical occupancy percentage79.3%79.8%(50) bpsStorage revenue per physical occupied pallet$67.07$65.931.7%Warehouse servicesThroughput pallets (in thousands)11,94312,290(2.8)%Warehouse services revenue per throughput pallet$31.97$32.19(0.7)%(1) Warehouse storage and warehouse services metrics exclude managed sites.Year Ended December 31,20252024Change(in millions except revenue per pallet)Warehouse storage$1,860$1,899(2.1)%Warehouse services1,6791,725(2.7)%Total same warehouse revenues3,5393,624(2.3)%Labor1,3291,3280.1%Power1921910.5%Other warehouse costs654657(0.5)%Total same warehouse cost of operations2,1752,176—%Same warehouse NOI$1,364$1,448(5.8)%Total same warehouse margin38.5%40.0%(150) bpsNumber of same warehouse sites413413Warehouse storage(1)Economic occupancyAverage occupied economic pallets (in thousands)7,4297,589(2.1)%Economic occupancy percentage82.7%84.0%(130) bpsStorage revenue per economic occupied pallet$250.25$250.32—%Physical occupancyAverage physical occupied pallets (in thousands)6,8737,019(2.1)%Average physical pallet positions (in thousands)8,9809,037(0.6)%Physical occupancy percentage76.5%77.7%(120) bpsStorage revenue per physical occupied pallet$270.52$270.68(0.1)%Warehouse servicesThroughput pallets (in thousands)47,87549,016(2.3)%Warehouse services revenue per throughput pallet$31.79$32.07(0.9)%(1) Warehouse storage and warehouse services metrics exclude managed sites. Non-Same Warehouse ResultsThe following tables present revenues, cost of operations, non-same warehouse NOI, and margins for our non-same warehouses for the three months and years ended December 31, 2025 and 2024.Three Months Ended December 31,20252024Change(in millions except revenue per pallet)Warehouse storage$59$3568.6%Warehouse services633770.3%Total non-same warehouse revenues1227269.4%Labor5125104.0%Power7540.0%Other warehouse costs311872.2%Total non-same warehouse cost of operations894885.4%Non-same warehouse NOI$33$2437.5%Total non-same warehouse margin27.0%33.3%(630) bpsNumber of non-same warehouse sites6956Warehouse storage(1)Economic occupancyAverage occupied economic pallets (in thousands)86762139.6%Economic occupancy percentage70.0%66.9%310bpsStorage revenue per economic occupied pallet$67.35$56.2719.7%Physical occupancyAverage physical occupied pallets (in thousands)82557942.5%Average physical pallet positions (in thousands)1,23892833.4%Physical occupancy percentage66.6%62.4%420bpsStorage revenue per physical occupied pallet$70.74$60.2617.4%Warehouse services(1)Throughput pallets (in thousands)2,0901,044100.2%Warehouse services revenue per throughput pallet$30.34$35.58(14.7)%(1) Warehouse storage and warehouse services metrics exclude managed sites. Year Ended December 31,20252024Change(in millions except revenue per pallet)Warehouse storage$200$14339.9%Warehouse services21112075.8%Total non-same warehouse revenues41126356.3%Labor1698989.9%Power261752.9%Other warehouse costs967135.2%Total non-same warehouse cost of operations29117764.4%Non-same warehouse NOI$120$8639.5%Total non-same warehouse margin29.2%32.7%(350) bpsNumber of non-same warehouse sites6956Warehouse storage(1)Economic occupancyAverage occupied economic pallets (in thousands)76558630.5%Economic occupancy percentage67.2%73.3%(610) bpsStorage revenue per economic occupied pallet$259.80$244.076.4%Physical occupancyAverage physical occupied pallets (in thousands)72455031.6%Average physical pallet positions (in thousands)1,13979942.6%Physical occupancy percentage63.6%68.8%(520) bpsStorage revenue per physical occupied pallet$275.44$260.155.9%Warehouse services(1)Throughput pallets (in thousands)6,4093,55780.2%Warehouse services revenue per throughput pallet$32.83$33.62(2.3)%(1) Warehouse storage and warehouse services metrics exclude managed sites.Global Integrated Solutions SegmentThe following tables present the operating results of our global integrated solutions segment for the three months and years ended December 31, 2025 and 2024.Three Months Ended December 31,20252024Change(in millions)Global Integrated Solutions segment revenues$313$359(12.8)%Global Integrated Solutions segment cost of operations(1)252306(17.6)%Global Integrated Solutions segment NOI$61$5315.1%Global Integrated Solutions margin19.5%14.8%470bps(1) Cost of operations excludes $1 million and $2 million of stock-based compensation expense and related employer-paid payroll taxes for the three months ended December 31, 2025 and 2024, respectively.Year Ended December 31,20252024Change(in millions)Global Integrated Solutions segment revenues$1,405$1,453(3.3)%Global Integrated Solutions segment cost of operations(1)1,1541,222(5.6)%Global Integrated Solutions segment NOI$251$2318.7%Global Integrated Solutions margin17.9%15.9%200bps(1) Cost of operations excludes $5 million and $2 million of stock-based compensation expense and related employer-paid payroll taxes for the year ended December 31, 2025 and 2024, respectively.Capital ExpendituresRecurring Maintenance Capital ExpendituresThe following table sets forth our recurring maintenance capital expenditures.Three Months EndedDecember 31,Year EndedDecember 31,2025202420252024(in millions)Global warehousing$42$57$141$149Global integrated solutions10112121Information technology and other441125Recurring maintenance capital expenditures$56$72$173$195 Integration Capital ExpendituresThe following table sets forth our integration capital expenditures.Three Months EndedDecember 31,Year EndedDecember 31,2025202420252024(in millions)Global warehousing$26$33$68$65Global integrated solutions—213Information technology and other381426Integration capital expenditures$29$43$83$94 External Growth Capital InvestmentsThe following table sets forth our external growth capital investments.Three Months EndedDecember 31,Year EndedDecember 31,2025202420252024(in millions)Acquisitions, including equity issued and net of cash acquired and adjustments(1)$2$233$443$346Greenfield and expansion expenditures12073302270Energy and economic return initiatives31188889Information technology transformation and growth initiatives1756655External growth capital investments$170$329$899$760(1) Excludes buildings and land acquired through exercise of finance lease purchase options, where amount paid did not exceed the finance lease liability.Non-GAAP Financial Measures ReconciliationsReconciliation of Total Segment NOI to Net Income (Loss) Three Months EndedDecember 31,Year EndedDecember 31,(in millions)2025202420252024Net income (loss)$6$(80)$(113)$(751)Stock-based compensation expense and related employer-paid payroll taxes in cost of operations42143General and administrative expense132145574539Depreciation expense173181675659Amortization expense5655220217Acquisition, transaction, and other expense33967651Goodwill impairment20—48—Restructuring, impairment, and (gain) loss on disposals(21)34(44)57Equity (income) loss, net of tax—336(Gain) loss on foreign currency transactions, net830(28)25Interest expense, net7361268430(Gain) loss on extinguishment of debt—4317Other nonoperating (income) expense, net(6)2501Income tax expense (benefit)(14)(41)(2)(89)Total segment NOI$434$435$1,735$1,765 Reconciliation of EBITDA, EBITDAre, and Adjusted EBITDA to Net Income (Loss) Three Months EndedDecember 31,Year EndedDecember 31,(in millions)2025202420252024Net income (loss)$6$(80)$(113)$(751)Adjustments:Depreciation and amortization expense229236895876Interest expense, net7361268430Income tax expense (benefit)(14)(41)(2)(89)EBITDA$294$176$1,048$466Adjustments:Net loss (gain) on sale of real estate assets(26)5(23)10Impairment of real estate assets22211Allocation of EBITDAre of noncontrolling interests—1—(1)EBITDAre$270$184$1,027$486Adjustments:Net (gain) loss on sale of non-real estate assets411(1)Other nonoperating (income) expense, net(6)2501Acquisition, restructuring, and other84687542Technology transformation672322(Gain) loss on property destruction(6)(47)(53)(51)(Gain) loss on foreign currency transactions, net830(28)25Stock-based compensation expense and related employer-paid payroll taxes1944127215(Gain) loss on extinguishment of debt—4317Goodwill impairment20—48—Impairment of other intangible assets—63163Impairment of other non-real estate assets——2—Allocation related to unconsolidated JVs421111Allocation adjustments of noncontrolling interests—(1)(1)(1)Adjusted EBITDA$327$335$1,298$1,329Net revenues$1,336$1,339$5,355$5,340Adjusted EBITDA margin24.5%25.0%24.2%24.9% Reconciliation of FFO, Core FFO, and Adjusted FFO to Net Income (Loss) Three Months EndedDecember 31,Year EndedDecember 31,(in millions, except per share information)2025202420252024Net income (loss)$6$(80)$(113)$(751)Adjustments:Real estate depreciation9591371356In-place lease intangible amortization1258Net loss (gain) on sale of real estate assets(26)5(23)10Impairment of real estate assets22211Real estate depreciation, (gain) loss on sale of real estate and real estate impairments on unconsolidated JVs——22Allocation of noncontrolling interests—11—FFO$78$21$245$(364)Adjustments:Net (gain) loss on sale of non-real estate assets411(1)Finance lease ROU asset amortization - real estate18197172Goodwill impairment20—48—Impairment of other intangible assets—63163Impairment of other non-real estate assets——2—Other nonoperating (income) expense, net(6)2501Acquisition, restructuring, and other1247102547Technology transformation672322(Gain) loss on property destruction(6)(47)(53)(51)(Gain) loss on foreign currency transactions, net830(28)25(Gain) loss on extinguishment of debt—4317Core FFO$134$147$465$331Adjustments:Non-real estate depreciation and amortization106117414411Finance lease ROU asset amortization - non-real estate983429Amortization of deferred financing costs, discount, and above/below market debt421219Deferred income taxes expense (benefit)(3)(34)(16)(105)Straight line net operating rent1—1(3)Amortization of above / below market leases(1)—(1)(1)Stock-based compensation expense and related employer-paid payroll taxes1944127215Recurring maintenance capital expenditures(56)(72)(173)(195)Allocation related to unconsolidated JVs1135Allocation of noncontrolling interests——(1)(1)Adjusted FFO$214$213$865$705Reconciliation of weighted average common shares outstanding:Weighted average common shares outstanding228228228191Partnership common units and OP Units held by Non-Company LPs22222221Equity compensation and other units7772Adjusted diluted weighted average common shares outstanding257257257214Adjusted FFO per diluted common share$0.83$0.83$3.37$3.29Non-GAAP Financial Measures NotesWe use the following non-GAAP financial measures as supplemental performance measures of our business: segment NOI, FFO, Core FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA, and Adjusted EBITDA margin. We also use same warehouse and non-same warehouse metrics described above.We calculate total segment NOI (or “NOI”) as our total revenues less our cost of operations (excluding any depreciation and amortization, general and administrative expense, stock-based compensation expense and related employer-paid payroll taxes from grants under our equity incentive plans, restructuring and impairment expense, gain and loss on sale of assets, and acquisition, transaction, and other expense). We use segment NOI to evaluate our segments for purposes of making operating decisions and assessing performance in accordance with ASC 280, Segment Reporting. We believe segment NOI is helpful to investors as a supplemental performance measure to net income because it assists both investors and management in understanding the core operations of our business. There is no industry definition of segment NOI and, as a result, other REITs may calculate segment NOI or other similarly-captioned metrics in a manner different than we do.We calculate EBITDA as net income or loss determined in accordance with GAAP, excluding depreciation and amortization expense, interest expense, net, and income tax expense or benefit.We also calculate EBITDA for Real Estate, or “EBITDAre”, in accordance with the standards established by the Board of Governors of the National Association of Real Estate Investment Trusts, or “NAREIT”, as EBITDA further adjusted for net loss or gain on sale of real estate assets, net of withholding taxes, impairment of real estate assets, and adjustments to reflect our share of EBITDAre for partially owned entities. EBITDAre is a measure commonly used in our industry, and we present EBITDAre to enhance investor understanding of our operating performance. We believe that EBITDAre provides investors and analysts with a measure of operating results unaffected by differences in capital structures, capital investment cycles, and useful life of related assets among otherwise comparable companies.In addition, we calculate our Adjusted EBITDA as EBITDAre further adjusted for the effects of gain or loss on the sale of non-real estate assets, gain or loss on the destruction of property (net of insurance proceeds), other nonoperating income or expense, acquisition, restructuring, and other expense, foreign currency exchange gain or loss, stock-based compensation expense and related employer-paid payroll taxes from grants under our equity incentive plans, loss or gain on debt extinguishment and modification, impairments of goodwill and other non-real estate assets including intangible assets, technology transformation, and reduction in EBITDAre from partially owned entities. We believe that the presentation of Adjusted EBITDA provides a measurement of our operations that is meaningful to investors because it excludes the effects of certain items that are otherwise included in EBITDAre, which we do not believe are indicative of our core business operations. EBITDAre and Adjusted EBITDA are not measurements of financial performance under GAAP, and our EBITDAre and Adjusted EBITDA may not be comparable to similarly titled measures of other companies. You should not consider our EBITDAre and Adjusted EBITDA as alternatives to net income or cash flows from operating activities determined in accordance with GAAP. Our calculations of EBITDAre and Adjusted EBITDA have limitations as analytical tools, including the following:these measures do not reflect our historical or future cash requirements for maintenance capital expenditures or growth and expansion capital expenditures;these measures do not reflect changes in, or cash requirements for, our working capital needs;these measures do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our indebtedness;these measures do not reflect our tax expense or the cash requirements to pay our taxes; andalthough depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and these measures do not reflect any cash requirements for such replacements.We use EBITDA, EBITDAre, and Adjusted EBITDA as measures of our operating performance and not as measures of liquidity. We also calculate Adjusted EBITDA margin, which represents Adjusted EBITDA as a percentage of Net revenues and which provides an additional way to compare the above described measure of our operations across periods.We calculate funds from operations, or FFO, in accordance with the standards established by the Board of Governors of the NAREIT. NAREIT defines FFO as net income or loss determined in accordance with GAAP, excluding extraordinary items as defined under GAAP and gains or losses from sales of previously depreciated operating real estate assets, plus specified non-cash items, such as real estate asset depreciation and amortization, in-place lease intangible amortization, real estate asset impairment, and our share of reconciling items for partially owned entities. We believe that FFO is helpful to investors as a supplemental performance measure because it excludes the effect of depreciation, amortization, and gains or losses from sales of real estate, all of which are based on historical costs, which implicitly assumes that the value of real estate diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, FFO can facilitate comparisons of operating performance between periods and among other equity REITs.We calculate core funds from operations, or Core FFO, as FFO adjusted for the effects of gain or loss on the sale of non-real estate assets, gain or loss on the destruction of property (net of insurance proceeds), finance lease ROU asset amortization real estate, impairments of goodwill and other non-real estate assets including intangible assets, acquisition, restructuring and other, other nonoperating income or expense, loss on debt extinguishment and modifications and the effects of gain or loss on foreign currency exchange. We also adjust for the impact attributable to non-real estate impairments on unconsolidated joint ventures and natural disaster. We believe that Core FFO is helpful to investors as a supplemental performance measure because it excludes the effects of certain items which can create significant earnings volatility, but which do not directly relate to our core business operations. We believe Core FFO can facilitate comparisons of operating performance between periods, while also providing a more meaningful predictor of future earnings potential.However, because FFO and Core FFO add back real estate depreciation and amortization and do not capture the level of recurring maintenance capital expenditures necessary to maintain the operating performance of our properties, both of which have material economic impacts on our results from operations, we believe the utility of FFO and Core FFO as a measure of our performance may be limited.We calculate adjusted funds from operations, or Adjusted FFO, as Core FFO adjusted for the effects of amortization of deferred financing costs, amortization of debt discount/premium amortization of above or below market leases, straight-line net operating rent, provision or benefit from deferred income taxes, stock-based compensation expense and related employer-paid payroll taxes from grants under our equity incentive plans, non-real estate depreciation and amortization, non-real estate finance lease ROU asset amortization, and recurring maintenance capital expenditures. We also adjust for Adjusted FFO attributable to our share of reconciling items of partially owned entities. We believe that Adjusted FFO is helpful to investors as a meaningful supplemental comparative performance measure of our ability to make incremental capital investments in our business and to assess our ability to fund distribution requirements from our operating activities.FFO, Core FFO, Adjusted FFO, and Adjusted FFO per diluted share are used by management, investors, and industry analysts as supplemental measures of operating performance of equity REITs. FFO, Core FFO, Adjusted FFO, and Adjusted FFO per diluted share should be evaluated along with GAAP net income and net income per diluted share (the most directly comparable GAAP measures) in evaluating our operating performance. FFO, Core FFO, and Adjusted FFO do not represent net income or cash flows from operating activities in accordance with GAAP and are not indicative of our results of operations or cash flows from operating activities as disclosed in our consolidated financial statements included elsewhere in this Press Release. FFO, Core FFO, and Adjusted FFO should be considered as supplements, but not alternatives, to our net income or cash flows from operating activities as indicators of our operating performance. Moreover, other REITs may not calculate FFO in accordance with the NAREIT definition or may interpret the NAREIT definition differently than we do. Accordingly, our FFO may not be comparable to FFO as calculated by other REITs. In addition, there is no industry definition of Core FFO or Adjusted FFO and, as a result, other REITs may also calculate Core FFO or Adjusted FFO, or other similarly-captioned metrics, in a manner different than we do.We are not able to provide forward-looking guidance for certain financial data that would make a reconciliation from the most comparable GAAP measure to non-GAAP financial measure for forward-looking Adjusted EBITDA and Adjusted FFO per share possible without unreasonable effort. This is due to unpredictable nature of relevant reconciling items from factors such as acquisitions, divestitures, impairments, natural disaster events, restructurings, debt issuances that have not yet occurred, or other events that are out of our control and cannot be forecasted. The impact of such adjustments could be significant.View source version on businesswire.com: https://www.businesswire.com/news/home/20260225947679/en/Investor Relations ContactKi Bin KimVP, Investor Relationsir@onelineage.comMedia ContactMegan HendricksenVP, Global Marketing & Communicationspr@onelineage.comSource: Lineage, Inc.