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 2024.
Fourth-Quarter 2024 Financial Highlights
- Total revenue increased 0.4% to $1.3 billion
- GAAP net loss of ($80) million, or ($0.33) per diluted common
share
- Adjusted EBITDA increased 9.8% to $335 million; adjusted EBITDA
margin increased 210bps to 25.0%
- AFFO increased 147.7% to $213 million; AFFO per share increased
72.9% to $0.83
- Declared quarterly dividend of $0.5275 per share, representing
annualized dividend rate of $2.11 per share
Full-Year 2024 Financial Highlights
- Total revenue of $5.3 billion, flat versus prior year
- GAAP net loss of ($751) million, or ($3.70) per diluted common
share
- Adjusted EBITDA increased 4.0% to $1.3 billion; adjusted EBITDA
margin increased 100bps to 24.9%
- AFFO increased 25.4% to $705 million; AFFO per share increased
6.5% to $3.29
"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," said Greg Lehmkuhl,
president and chief executive officer of Lineage, Inc. "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. We want to thank our dedicated and talented team
members for an outstanding year in a challenging environment.
"As we look ahead to 2025, we are well-positioned to expand our
leadership position in the global food supply chain. We will
continue to focus on providing world-class service to our
customers, while working to continuously improve the efficiency of
our operations. We believe our labor productivity, lean operations,
and energy management initiatives, coupled with our innovative
technology provide significant benefits to our customers and team
members, while positioning Lineage for strong financial performance
in all market environments.
"Furthermore, our investment grade balance sheet and financial
outlook provides the capacity to deploy more than $1.5 billion of
capital in 2025. We are poised to execute on our robust acquisition
and development pipeline. 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,"
concluded Lehmkuhl.
2025 Guidance
The Company expects full-year 2025 adjusted EBITDA $1.35 to
$1.40 billion and Adjusted FFO ("AFFO") per share of $3.40 to
$3.60. The Company's guidance excludes the impact of unannounced
future acquisitions or developments.
Please refer to the Lineage's Earnings Presentation and
Supplemental Information for additional details related to the
Company's guidance.
Fourth-Quarter and Full-Year 2024 Financial Results
Conference Call and Earnings Presentation with Supplemental
Please visit ir.lineage.com/events-and-presentations to view
Lineage’s fourth-quarter and full-year 2024 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 2024 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 Lineage
Lineage, Inc. (NASDAQ: LINE) is the world’s largest global
temperature-controlled warehouse REIT with a network of over 485
strategically located facilities totaling approximately 86 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 Statements
Certain 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; other risks inherent in the real estate
business, including customer defaults, potential liability relating
to environmental matters, illiquidity of real estate investments,
and potential damages from natural disasters; the availability of
suitable acquisitions and our ability to acquire those 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; 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 increases and
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; our failure to maintain our status
as a real estate investment trust for U.S. federal income tax
purposes; changes in local, state, federal and international laws
and regulations, including related to taxation, tarrifs, real
estate and zoning laws, and increases in real property tax rates;
the impact of any financial, accounting, legal 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, 2024 filed with the SEC.
Should one of 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 Channels
Investors 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
SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(in millions, except par
values)
December 31,
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
173
$
68
Restricted cash
2
3
Accounts receivable, net
826
913
Inventories
187
171
Prepaid expenses and other current
assets
97
101
Total current assets
1,285
1,256
Non-current assets:
Property, plant, and equipment, net
10,627
10,571
Finance lease right-of-use assets, net
1,254
1,243
Operating lease right-of-use assets,
net
627
724
Equity method investments
124
113
Goodwill
3,338
3,394
Other intangible assets, net
1,127
1,280
Other assets
279
290
Total assets
$
18,661
$
18,871
Liabilities, Redeemable Noncontrolling
Interests, and Equity
Current liabilities:
Accounts payable and accrued
liabilities
$
1,220
$
1,137
Accrued dividends and distributions
134
110
Deferred revenue
83
94
Current portion of long-term debt, net
56
24
Total current liabilities
1,493
1,365
Non-current liabilities:
Long-term finance lease obligations
1,249
1,305
Long-term operating lease obligations
605
692
Deferred income tax liability
304
370
Long-term debt, net
4,906
8,958
Other long-term liabilities
410
159
Total liabilities
8,967
12,849
Commitments and contingencies (Note
20)
Redeemable noncontrolling interests
43
349
Stockholders’ equity:
Common stock, $0.01 par value per share –
500 authorized shares; 228 issued and outstanding at December 31,
2024 and 162 issued and outstanding at December 31, 2023
2
2
Additional paid-in capital - common
stock
10,764
5,961
Series A preferred stock, $0.01 par value
per share – 100 authorized shares; no issued and outstanding shares
at December 31, 2024 and less than 1 issued and outstanding shares,
with an aggregate liquidation preference of $1 at December 31,
2023
—
1
Retained earnings (accumulated
deficit)
(1,855
)
(879
)
Accumulated other comprehensive income
(loss)
(273
)
(34
)
Total stockholders’ equity
8,638
5,051
Noncontrolling interests
1,013
622
Total equity
9,651
5,673
Total liabilities, redeemable
noncontrolling interests, and equity
$
18,661
$
18,871
LINEAGE, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in millions, except per share
amounts)
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Net revenues
$
1,339
$
1,334
$
5,340
$
5,342
Cost of operations
906
896
3,578
3,590
General and administrative expense
145
141
539
502
Depreciation expense
181
150
659
552
Amortization expense
55
53
217
208
Acquisition, transaction, and other
expense
39
15
651
60
Restructuring, impairment, and (gain) loss
on disposals
34
21
57
32
Total operating expense
1,360
1,276
5,701
4,944
Income from operations
(21
)
58
(361
)
398
Other income (expense):
Equity income (loss), net of tax
(3
)
(1
)
(6
)
(3
)
Gain (loss) on foreign currency
transactions, net
(30
)
13
(25
)
4
Interest expense, net
(61
)
(133
)
(430
)
(490
)
Gain (loss) on extinguishment of debt
(4
)
—
(17
)
—
Other nonoperating income (expense),
net
(2
)
—
(1
)
(19
)
Total other income (expense), net
(100
)
(121
)
(479
)
(508
)
Net income (loss) before income taxes
(121
)
(63
)
(840
)
(110
)
Income tax expense (benefit)
(41
)
(6
)
(89
)
(14
)
Net income (loss)
(80
)
(57
)
(751
)
(96
)
Less: Net income (loss) attributable to
noncontrolling interests
(9
)
(5
)
(87
)
(19
)
Net income (loss) attributable to Lineage,
Inc.
$
(71
)
$
(52
)
(664
)
(77
)
Other comprehensive income (loss), net of
tax:
Unrealized gain (loss) on foreign currency
hedges and interest rate hedges
(4
)
(58
)
(60
)
(87
)
Foreign currency translation
adjustments
(236
)
117
(207
)
88
Comprehensive income (loss)
(320
)
2
(1,018
)
(95
)
Less: Comprehensive income (loss)
attributable to noncontrolling interests
(34
)
(1
)
(115
)
(21
)
Comprehensive income (loss) attributable
to Lineage, Inc.
$
(286
)
$
3
$
(903
)
$
(74
)
Basic earnings (loss) per share
$
(0.33
)
$
(0.43
)
$
(3.70
)
$
(0.73
)
Diluted earnings (loss) per share
$
(0.33
)
$
(0.43
)
$
(3.70
)
$
(0.73
)
Weighted average common shares
outstanding:
Basic
228
162
191
162
Diluted
228
162
191
162
LINEAGE, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
(in millions)
Common Stock
Redeemable noncontrolling
interests
Number of shares
Par value
Additional paid-in
capital
Series A preferred
stock
Retained earnings (accumulated
deficit)
Accumulated other
comprehensive income (loss)
Noncontrolling
interests
Total
equity
Balance as of December 31, 2022
$
298
160
$
2
$
5,915
$
1
$
(713
)
$
(37
)
$
641
$
5,809
Common stock issuances, net of equity
raise costs
—
2
—
142
—
—
—
—
142
Contributions from noncontrolling
interests
—
—
—
3
—
—
—
2
5
Dividends ($0.55 per common share) and
other distributions
—
—
—
—
—
(89
)
—
(57
)
(146
)
Operating Partnership units issued in
acquisitions
—
—
—
4
—
—
—
2
6
Stock-based compensation
—
—
—
15
—
—
—
11
26
Other comprehensive income (loss)
—
—
—
—
—
—
3
(2
)
1
Sale of noncontrolling interests
—
—
—
—
—
—
—
(4
)
(4
)
Noncontrolling interests acquired in
business combinations
7
—
—
—
—
—
—
—
—
Redemption of common stock
—
—
—
(12
)
—
—
—
—
(12
)
Redemption of units issued as stock
compensation
—
—
—
(12
)
—
—
—
(1
)
(13
)
Redemption of noncontrolling interest
—
—
—
(1
)
—
—
—
—
(1
)
Redeemable noncontrolling interest
adjustment
8
—
—
(8
)
—
—
—
—
(8
)
Accretion of redeemable noncontrolling
interests
36
—
—
(36
)
—
—
—
—
(36
)
Net income (loss)
—
—
—
—
—
(77
)
—
(19
)
(96
)
Reallocation of noncontrolling
interests
—
—
—
(49
)
—
—
—
49
—
Balance as of December 31, 2023
$
349
162
$
2
$
5,961
$
1
$
(879
)
$
(34
)
$
622
$
5,673
LINEAGE, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
(in millions)
Common Stock
Redeemable noncontrolling
interests
Number of shares
Par value
Additional paid-in
capital
Series A preferred
stock
Retained earnings (accumulated
deficit)
Accumulated other
comprehensive income (loss)
Noncontrolling
interests
Total
equity
Balance as of December 31, 2023
$
349
162
$
2
$
5,961
$
1
$
(879
)
$
(34
)
$
622
$
5,673
Common stock issuances, net of equity
raise costs
—
65
—
4,874
—
—
—
—
4,874
Assumption 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
—
—
—
39
215
Withholding of common stock for employee
taxes
—
(1
)
—
(46
)
—
—
—
—
(46
)
Other comprehensive income (loss)
—
—
—
—
—
—
(239
)
(28
)
(267
)
Repurchase of common stock pursuant to Put
Option exercise
—
—
—
(17
)
—
—
—
—
(17
)
Conversion of Management Profits Interests
Class C units
—
—
—
(61
)
—
—
—
61
—
Redemption of preferred shares and
OPEUs
—
—
—
(46
)
(1
)
—
—
(29
)
(76
)
Reimbursement of Advance Distributions
—
—
—
—
—
—
—
198
198
Redemption of redeemable noncontrolling
interests
(6
)
—
—
—
—
—
—
—
—
Redemption of common stock
—
—
—
(25
)
—
—
—
—
(25
)
Reclassification of the Preference
Shares
(229
)
—
—
(22
)
—
—
—
—
(22
)
Issuance of OPEUs and settlement of Class
D Units
—
—
—
114
—
—
—
73
187
Expiration of redemption option
(92
)
—
—
65
—
—
—
27
92
Redeemable noncontrolling interest
adjustment
8
—
—
(8
)
—
—
—
—
(8
)
Accretion of redeemable noncontrolling
interests
15
—
—
(15
)
—
—
—
—
(15
)
Net income (loss)
(1
)
—
—
—
—
(664
)
—
(86
)
(750
)
Reallocation of noncontrolling
interests
—
—
—
(186
)
—
—
—
186
—
Balance as of December 31, 2024
$
43
228
$
2
$
10,764
$
—
$
(1,855
)
$
(273
)
$
1,013
$
9,651
LINEAGE, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
Year Ended December
31,
(in millions)
2024
2023
Cash flows from operating
activities:
Net income (loss)
$
(751
)
$
(96
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Provision for credit losses
5
6
Impairment of long-lived and intangible
assets
98
9
Gain on insurance recovery (see Note 20,
Commitments and contingencies)
(76
)
—
Loss on sale of a subsidiary (see Note 4,
Business combinations, asset acquisitions, and divestitures)
—
21
Depreciation and amortization
876
760
(Gain) loss on extinguishment of debt,
net
17
—
Amortization of deferred financing costs
and above/below market debt
19
21
Stock-based compensation
215
26
(Gain) loss on foreign currency
transactions, net
25
(4
)
Deferred income tax
(105
)
(58
)
Vesting of Class D interests (see Note 2,
Capital structure and noncontrolling interests)
185
—
One-time Internalization expense to Bay
Grove (see Note 2, Capital structure and noncontrolling
interests)
200
—
Put Options fair value adjustment
31
—
Other operating activities
19
9
Changes in operating assets and
liabilities (excluding effects of acquisitions):
Accounts receivable
64
43
Prepaid expenses, other assets, and other
long-term liabilities
(29
)
(12
)
Inventories
(18
)
8
Accounts payable and accrued liabilities
and deferred revenue
(85
)
51
Right-of-use assets and lease
obligations
13
12
Net cash provided by operating
activities
703
796
Cash flows from investing
activities:
Acquisitions, net of cash acquired
(346
)
(283
)
Deposits on pending acquisitions and
related refunds, net
3
—
Purchase of property, plant, and
equipment
(691
)
(766
)
Proceeds from sale of assets
7
19
Proceeds from insurance recovery on
impaired long-lived assets
105
—
Investments in Emergent Cold LatAm
Holdings, LLC
(20
)
(31
)
Proceeds from repayment of notes by
related parties
15
—
Other investing activity
8
(5
)
Net cash used in investing activities
(919
)
(1,066
)
Cash flows from financing
activities:
Capital contributions, net of equity raise
costs
—
142
Issuance of common stock in IPO, net of
equity raise costs
4,879
(6
)
Dividends and other distributions
(234
)
(46
)
Redemption of redeemable noncontrolling
interests
(6
)
—
Repurchase of common shares for employee
income taxes on stock-based compensation
(46
)
—
Repurchase of common stock pursuant to Put
Option exercise
(17
)
—
Financing fees
(45
)
—
Proceeds from long-term debt
2,481
—
Repayments of long-term debt and finance
leases
(7,112
)
(96
)
Payment of deferred and contingent
consideration liabilities
(46
)
(36
)
Borrowings on revolving line of credit
4,112
1,431
Repayments on revolving line of credit
(3,512
)
(1,216
)
Redemption of units issued as stock
compensation
(2
)
(12
)
Redemption of common stock
(25
)
(12
)
Redemption of OPEUs
(75
)
—
Settlement of Put Option liability
(27
)
—
Other financing activity
(5
)
(13
)
Net cash provided by financing
activities
320
136
Impact of foreign exchange rates on cash,
cash equivalents, and restricted cash
—
3
Net increase (decrease) in cash, cash
equivalents, and restricted cash
104
(131
)
Cash, cash equivalents, and restricted
cash at the beginning of the period
71
202
Cash, cash equivalents, and restricted
cash at the end of the period
$
175
$
71
Global Warehousing Segment
The following table presents the operating results of our global
warehousing segment for the three months ended December 31, 2024
and 2023.
Three Months Ended December
31,
2024
2023
Change
(in millions except revenue
per pallet)
Warehouse storage
$
508
$
526
(3.4
)%
Warehouse services
472
449
5.1
%
Total global warehousing segment
revenues
980
975
0.5
%
Power
53
48
10.4
%
Labor(1)
355
360
(1.4
)%
Other warehouse costs(2)
190
193
(1.6
)%
Total global warehousing segment cost
of operations
598
601
(0.5
)%
Global warehousing segment NOI
$
382
$
374
2.1
%
Total global warehousing segment
margin
39.0
%
38.4
%
60
bps
Number of warehouse sites
469
463
Warehouse
storage(3)
Average economic
occupancy
Average occupied economic pallets (in
thousands)
8,339
8,525
(2.2
)%
Economic occupancy percentage
83.9
%
87.2
%
(330
) bps
Storage revenue per economic occupied
pallet
$
60.99
$
61.75
(1.2
)%
Average physical
occupancy
Average physical occupied pallets (in
thousands)
7,764
7,897
(1.7
)%
Average physical pallet positions (in
thousands)
9,935
9,776
1.6
%
Physical occupancy percentage
78.1
%
80.8
%
(270
) bps
Storage revenue per physical occupied
pallet
$
65.50
$
66.66
(1.7
)%
Warehouse
services(3)
Throughput pallets (in thousands)
13,334
13,165
1.3
%
Warehouse services revenue per throughput
pallet
$
32.46
$
31.21
4.0
%
__________________
- Labor cost of operations excludes immaterial stock-based
compensation expense for the three months ended December 31,
2024.
- Includes real estate rent expense of $24 million and $25
million for the three months ended December 31, 2024 and 2023,
respectively; and non-real estate rent expense (equipment lease and
rentals) of $6 million and $5 million for the three months ended
December 31, 2024 and 2023, respectively.
- Warehouse storage and warehouse services metrics exclude
managed sites.
Global Warehousing Segment
The following table presents the operating results of our
warehouse segment for the year ended December 31, 2024 and
2023.
Year Ended December
31,
2024
2023
Change
(in millions except revenue
per pallet)
Warehouse storage
$
2,042
$
2,071
(1.4
)%
Warehouse services
1,845
1,786
3.3
%
Total global warehousing segment
revenues
3,887
3,857
0.8
%
Power
208
204
2.0
%
Labor(1)
1,417
1,402
1.1
%
Other warehouse costs(2)
728
743
(2.0
)%
Total global warehousing segment cost
of operations
2,353
2,349
0.2
%
Global warehousing segment NOI
$
1,534
$
1,508
1.7
%
Total global warehousing segment
margin
39.5
%
39.1
%
40
bps
Number of warehouse sites
469
463
Warehouse
storage(3)
Average economic
occupancy
Average occupied economic pallets (in
thousands)
8,175
8,292
(1.4
)%
Economic occupancy percentage
83.1
%
86.0
%
(290
) bps
Storage revenue per economic occupied
pallet
$
249.82
$
249.59
0.1
%
Average physical
occupancy
Average physical occupied pallets (in
thousands)
7,569
7,716
(1.9
)%
Average physical pallet positions (in
thousands)
9,836
9,642
2.0
%
Physical occupancy percentage
77.0
%
80.0
%
(300
) bps
Storage revenue per physical occupied
pallet
$
269.82
$
268.20
0.6
%
Warehouse
services(3)
Throughput pallets (in thousands)
52,573
51,601
1.9
%
Warehouse services revenue per throughput
pallet
$
32.17
$
31.73
1.4
%
_______________
- Excludes $1 million of stock-based compensation expense for the
year ended December 31, 2024.
- Includes real estate rent expense of $99 million and $96
million for the year ended December 31, 2024 and 2023,
respectively; and non-real estate rent expense (equipment lease and
rentals) of $18 million and $21 million for the year ended December
31, 2024 and 2023, respectively.
- Warehouse storage and warehouse services metrics exclude
managed sites.
Same Warehouse Results
The following tables present revenues, cost of operations, same
warehouse NOI, and margins for our same warehouses for the three
and nine months ended December 31, 2024 and December 31, 2023.
Three Months Ended December
31,
2024
2023
Change
(in millions except revenue
per pallet)
Warehouse storage
$
439
$
453
(3.1
)%
Warehouse services
398
389
2.3
%
Total same warehouse revenues
837
842
(0.6
)%
Power
45
42
7.1
%
Labor
303
312
(2.9
)%
Other warehouse costs
160
163
(1.8
)%
Total same warehouse cost of
operations
508
517
(1.7
)%
Same warehouse NOI
$
329
$
325
1.2
%
Total same warehouse margin
39.3
%
38.6
%
70
bps
Number of same warehouse sites
409
409
Warehouse
storage(1)
Economic
occupancy
Average occupied economic pallets (in
thousands)
7,121
7,340
(3.0
)%
Economic occupancy percentage
86.0
%
88.4
%
(240
) bps
Storage revenue per economic occupied
pallet
$
61.56
$
61.64
(0.1
)%
Physical
occupancy
Average physical occupied pallets (in
thousands)
6,646
6,799
(2.3
)%
Average physical pallet positions (in
thousands)
8,280
8,305
(0.3
)%
Physical occupancy percentage
80.3
%
81.9
%
(160
) bps
Storage revenue per physical occupied
pallet
$
65.96
$
66.54
(0.9
)%
Warehouse
services(1)
Throughput pallets (in thousands)
11,220
11,300
(0.7
)%
Warehouse services revenue per throughput
pallet
$
32.34
$
31.52
2.6
%
__________________
- Warehouse storage and warehouse services metrics exclude
managed sites.
Year Ended December
31,
2024
2023
Change
(in millions except revenue
per pallet)
Warehouse storage
$
1,760
$
1,816
(3.1
)%
Warehouse services
1,584
1,574
0.6
%
Total same warehouse revenues
3,344
3,390
(1.4
)%
Power
177
177
—
%
Labor
1,223
1,232
(0.7
)%
Other warehouse costs
607
636
(4.6
)%
Total same warehouse cost of
operations
2,007
2,045
(1.9
)%
Same warehouse NOI
$
1,337
$
1,345
(0.6
)%
Total same warehouse margin
40.0
%
39.7
%
30
bps
Number of same warehouse sites
409
409
Warehouse
storage(1)
Economic
occupancy
Average occupied economic pallets (in
thousands)
7,033
7,268
(3.2
)%
Economic occupancy percentage
84.7
%
87.5
%
(280
) bps
Storage revenue per economic occupied
pallet
$
250.21
$
249.84
0.1
%
Physical
occupancy
Average physical occupied pallets (in
thousands)
6,510
6,747
(3.5
)%
Average physical pallet positions (in
thousands)
8,302
8,303
—
%
Physical occupancy percentage
78.4
%
81.3
%
(290
) bps
Storage revenue per physical occupied
pallet
$
270.30
$
269.13
0.4
%
Warehouse
services(1)
Throughput pallets (in thousands)
44,754
45,489
(1.6
)%
Warehouse services revenue per throughput
pallet
$
32.30
$
31.73
1.8
%
_______
- Warehouse storage and warehouse services metrics exclude
managed sites.
Non-Same Warehouse Results
The following tables present revenues, cost of operations,
non-same warehouse NOI, and margins for our non-same warehouses for
the three and nine months ended December 31, 2024 and 2023.
Three Months Ended December
31,
2024
2023
Change
(in millions except revenue
per pallet)
Warehouse storage
$
69
$
73
(5.5
)%
Warehouse services
74
60
23.3
%
Total non-same warehouse
revenues
143
133
7.5
%
Power
8
6
33.3
%
Labor
52
48
8.3
%
Other warehouse costs
30
30
—
%
Total non-same warehouse cost of
operations
90
84
7.1
%
Non-same warehouse NOI
$
53
$
49
8.2
%
Total non-same warehouse margin
37.1
%
36.8
%
30
bps
Number of non-same warehouse sites(1)
60
54
Warehouse storage
(2)
Economic
occupancy
Average occupied economic pallets (in
thousands)
1,218
1,185
2.8
%
Economic occupancy percentage
73.6
%
80.6
%
(700
) bps
Storage revenue per economic occupied
pallet
$
57.65
$
62.45
(7.7
)%
Physical
occupancy
Average physical occupied pallets (in
thousands)
1,118
1,098
1.8
%
Average physical pallet positions (in
thousands)
1,655
1,471
12.5
%
Physical occupancy percentage
67.6
%
74.6
%
(700
) bps
Storage revenue per physical occupied
pallet
$
62.78
$
67.38
(6.8
)%
Warehouse
services (2)
Throughput pallets (in thousands)
2,114
1,865
13.4
%
Warehouse services revenue per throughput
pallet
$
33.09
$
29.33
12.8
%
__________________
- Refer to our “Same Warehouse Analysis,” which describes the
composition of our non-same warehouse pool.
- Warehouse storage and warehouse services metrics exclude
managed sites.
Year Ended December
31,
2024
2023
Change
(in millions except revenue
per pallet)
Warehouse storage
$
282
$
255
10.6
%
Warehouse services
261
212
23.1
%
Total non-same warehouse
revenues
543
467
16.3
%
Power
31
27
14.8
%
Labor
194
170
14.1
%
Other warehouse costs
121
107
13.1
%
Total non-same warehouse cost of
operations
346
304
13.8
%
Non-same warehouse NOI
$
197
$
163
20.9
%
Total non-same warehouse margin
36.3
%
34.9
%
140
bps
Number of non-same warehouse sites(1)
60
54
Warehouse storage
(2)
Economic
occupancy
Average occupied economic pallets (in
thousands)
1,142
1,024
11.5
%
Economic occupancy percentage
74.4
%
76.5
%
(210
) bps
Storage revenue per economic occupied
pallet
$
247.41
$
247.87
(0.2
)%
Physical
occupancy
Average physical occupied pallets (in
thousands)
1,059
970
9.2
%
Average physical pallet positions (in
thousands)
1,534
1,339
14.6
%
Physical occupancy percentage
69.0
%
72.4
%
(340
) bps
Storage revenue per physical occupied
pallet
$
266.89
$
261.77
2.0
%
Warehouse
services (2)
Throughput pallets (in thousands)
7,819
6,112
27.9
%
Warehouse services revenue per throughput
pallet
$
31.42
$
31.91
(1.5
)%
__________________
- Refer to our “Same Warehouse Analysis,” which describes the
composition of our non-same warehouse pool.
- Warehouse storage and warehouse services metrics exclude
managed sites.
Global Integrated Solutions Segment
The following tables presents the operating results of our
global integrated solutions segment for the three and nine months
ended December 31, 2024 and 2023.
Three Months Ended December
31,
2024
2023
Change
(in millions)
Global Integrated Solutions segment
revenues
$
359
$
359
—
%
Global Integrated Solutions segment cost
of operations(1)
306
295
3.7
%
Global Integrated Solutions segment
NOI
$
53
$
64
(17.2
)%
Global Integrated Solutions margin
14.8
%
17.8
%
(300
) bps
_______________
- Excludes $2 million of stock-based compensation expense for the
three months ended December 31, 2024.
Year Ended December
31,
2024
2023
Change
(in millions)
Global Integrated Solutions segment
revenues
$
1,453
$
1,485
(2.2
)%
Global Integrated Solutions segment cost
of operations(1)
1,222
1,241
(1.5
)%
Global Integrated Solutions segment
NOI
$
231
$
244
(5.3
)%
Global Integrated Solutions margin
15.9
%
16.4
%
(50
) bps
_______________
- Excludes $2 million of stock-based compensation expense for the
year ended December 31, 2024.
Capital Expenditures
Maintenance Capital Expenditures
The following table sets forth our recurring maintenance capital
expenditures.
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
(in millions)
Global warehousing
$
57
$
57
$
149
$
144
Global integrated solutions
11
9
21
27
Information technology and other
4
22
25
37
Maintenance capital expenditures
$
72
$
88
$
195
$
208
Integration Capital Expenditures
The following table sets forth our integration capital
expenditures.
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
(in millions)
Global warehousing
$
33
$
15
$
65
$
42
Global integrated solutions
2
1
3
21
Information technology and other
8
—
26
12
Integration capital expenditures
$
43
$
16
$
94
$
75
External Growth Capital Investments
The following table sets forth our external growth capital
investments.
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
(in millions)
Acquisitions, including equity issued and
net of cash acquired and adjustments
$
233
$
265
$
346
$
289
Greenfield and expansion expenditures
73
47
270
267
Energy and economic return initiatives
18
19
89
110
Information technology transformation and
growth initiatives
5
19
55
75
External growth capital investments
$
329
$
350
$
760
$
741
Non-GAAP Financial Measures Reconciliations
Reconciliation of NOI to Net
Income (Loss)
Three Months Ended December
31,
Year Ended December
31,
(in millions)
2024
2023
2024
2023
Net income (loss)
$
(80
)
$
(57
)
$
(751
)
$
(96
)
Stock-based compensation expense in cost
of operations
2
—
3
—
General and administrative expense
145
141
539
502
Depreciation expense
181
150
659
552
Amortization expense
55
53
217
208
Acquisition, transaction, and other
expense
39
15
651
60
Restructuring, impairment, and (gain) loss
on disposals
34
21
57
32
Equity (income) loss, net of tax
3
1
6
3
(Gain) loss on foreign currency
transactions, net
30
(13
)
25
(4
)
Interest expense, net
61
133
430
490
(Gain) loss on extinguishment of debt
4
—
17
—
Other nonoperating (income) expense,
net
2
—
1
19
Income tax expense (benefit)
(41
)
(6
)
(89
)
(14
)
Total segment NOI
$
435
$
438
$
1,765
$
1,752
Reconciliation of EBITDA,
EBITDAre, and Adjusted EBITDA to Net Income (Loss)
Three Months Ended December
31,
Year Ended December
31,
(in millions)
2024
2023
2024
2023
Net income (loss)
$
(80
)
$
(57
)
$
(751
)
$
(96
)
Adjustments:
Depreciation and amortization expense
236
203
876
760
Interest expense, net
61
133
430
490
Income tax expense (benefit)
(41
)
(6
)
(89
)
(14
)
EBITDA
$
176
$
273
$
466
$
1,140
Adjustments:
Net loss (gain) on sale of real estate
assets
5
1
10
8
Impairment write-downs on real estate
property
2
—
11
2
Allocation of EBITDAre of noncontrolling
interests
1
(1
)
(1
)
(3
)
EBITDAre
$
184
$
273
$
486
$
1,147
Adjustments:
Net (gain) loss on sale of non-real estate
assets
1
5
(1
)
2
Other nonoperating (income) expense,
net
2
—
1
19
Acquisition, restructuring, and other
46
23
542
73
Technology transformation
7
—
22
—
(Gain) loss on property destruction
(47
)
—
(51
)
—
Interest expense and tax expense from
unconsolidated JVs
1
1
5
3
Depreciation and amortization expense from
unconsolidated JVs
1
1
6
5
(Gain) loss on foreign currency exchange
transactions, net
30
(13
)
25
(4
)
Stock-based compensation expense
44
7
215
26
(Gain) loss on extinguishment of debt
4
—
17
—
Impairment of intangible assets
63
7
63
7
Allocation adjustments of noncontrolling
interests
(1
)
1
(1
)
—
Adjusted EBITDA
$
335
$
305
$
1,329
$
1,278
Net revenues
$
1,339
$
1,334
$
5,340
$
5,342
Adjusted EBITDA margin
25.0
%
22.9
%
24.9
%
23.9
%
Reconciliation of FFO, Core
FFO, and Adjusted FFO to Net Income (Loss)
Three Months Ended December
31,
Year Ended December
31,
(in millions, except per share
information)
2024
2023
2024
2023
Net income (loss)
$
(80
)
$
(57
)
$
(751
)
$
(96
)
Adjustments:
Real estate depreciation
91
87
356
325
In-place lease intangible amortization
2
1
8
7
Net loss (gain) on sale of real estate
assets
5
1
10
8
Impairment write-downs on real estate
property
2
—
11
2
Real estate depreciation, (gain) loss on
sale of real estate and real estate impairments on unconsolidated
JVs
—
—
2
3
Allocation of noncontrolling interests
1
—
—
—
FFO
$
21
$
32
$
(364
)
$
249
Adjustments:
Net (gain) loss on sale of non-real estate
assets
1
5
(1
)
2
Finance lease ROU asset amortization -
real estate related
19
17
72
70
Impairment of intangible assets
63
7
63
7
Other nonoperating (income) expense,
net
2
—
1
19
Acquisition, restructuring, and other
47
23
547
73
Technology transformation
7
—
22
—
(Gain) loss on property destruction
(47
)
—
(51
)
—
(Gain) loss on foreign currency
transactions, net
30
(13
)
25
(4
)
(Gain) loss on extinguishment of debt
4
—
17
—
Core FFO
$
147
$
71
$
331
$
416
Adjustments:
Non-real estate depreciation and
amortization
117
91
411
334
Finance lease ROU asset amortization -
non-real estate
8
7
29
23
Amortization of deferred financing
costs
2
5
18
19
Amortization of debt discount /
premium
—
1
1
2
Deferred income taxes expense
(benefit)
(34
)
(10
)
(105
)
(58
)
Straight line net operating rent
—
2
(3
)
6
Amortization of above / below market
leases
—
—
(1
)
—
Stock-based compensation expense
44
7
215
26
Recurring maintenance capital
expenditures
(72
)
(89
)
(195
)
(208
)
Allocation related to unconsolidated
JVs
1
1
5
3
Allocation of noncontrolling interests
—
—
(1
)
(1
)
Adjusted FFO
$
213
$
86
$
705
$
562
Reconciliation of weighted average
common shares outstanding:
Weighted average common shares
outstanding
228
162
191
162
Partnership common units and OP Units held
by Non-Company LPs
22
20
21
20
Equity compensation and other unvested
units
7
—
2
—
Adjusted diluted weighted average common
shares outstanding
257
182
214
182
Adjusted FFO per diluted common share
$
0.83
$
0.48
$
3.29
$
3.09
Non-GAAP Financial Measures Notes
We 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, 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 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”, defined as earnings before interest income or expense,
taxes, depreciation and amortization, net loss or gain on sale of
real estate, net of withholding taxes, impairment write-downs on
real estate property, 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.
We also 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, loss or
gain on debt extinguishment and modification, impairment of
investments in non-real estate, 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 but 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; and
- although 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, non-real estate impairments, 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 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 Annual Report. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20250226244572/en/
Investor Relations Contact Evan Barbosa VP, Investor
Relations ir@onelineage.com
Media Contact Megan Hendricksen VP, Global Marketing
& Communications pr@onelineage.com
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