Lineage, Inc. Announces First-Quarter 2025 Financial Results and Landmark Agreements With Long-Term Customer

Business Wire

Wed, Apr 30, 2025, 4:00 AM 12 min read

Total revenue decreased (2.7)% to $1,292 million
Breakeven GAAP net income, or $0.01 per diluted common share
Adjusted EBITDA decreased (7.0)% to $304 million; adjusted EBITDA margin decreased (110)bps to 23.5%
AFFO increased 48.0% to $219 million; AFFO per share increased 6.2% to $0.86
Declared quarterly dividend of $0.5275 per share, representing annualized dividend rate of $2.11 per share

Landmark Agreements with Tyson Foods

The Company issued a separate press release announcing landmark agreements with Tyson Foods, Inc. (NYSE: TSN, "Tyson Foods"), building on our longstanding, multi-continent customer relationship. Select details include:

Signing of a definitive agreement to acquire four cold storage warehouses and other related assets from Tyson Foods for $247 million
Plans to enter into an additional, multi-year warehousing agreement to design, build and operate two next-generation, fully automated cold storage warehouses in major U.S. distribution markets, which Tyson Foods will occupy as an anchor customer
Under the warehousing agreement, Tyson Foods will begin storing and moving product at Lineage’s newly developed Hazleton, Pennsylvania warehouse, establishing the location as a cold storage hub for Tyson Foods on the U.S. East Coast
In total, Lineage expects to deploy approximately $1 billion of capital over the coming years as part of these agreements

"The Tyson Foods agreements are the result of a long-standing relationship rooted in shared values," said Greg Lehmkuhl, president and chief executive officer of Lineage. "We’re proud to partner with our valued customer on these landmark agreements, leveraging our global footprint, data-driven approach, LinOS, and automation technology. This is just another example of the unique value we can add to our customers.

"As expected, we experienced more normal seasonal trends in the first quarter after multiple years of elevated inventory levels. Our team continues to control costs well and improve productivity in an uncertain environment for our customers, the major food companies. Our network is intentionally built with flexibility in mind—allowing us to adapt to shifting customer needs while maintaining high levels of service across changing market conditions," added Lehmkuhl.

Maintaining 2025 Guidance

The Company continues to expect full-year 2025 adjusted EBITDA of $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.

"We are maintaining our adjusted EBITDA and AFFO per share guidance, aided by contributions from our newly announced acquisitions. As we look forward to the balance of the year, we see a heightened level of uncertainty in our industry, driven by the potential impact of evolving U.S. tariff policies and related customer hesitancy. We believe we are well positioned given our leading network, innovative technology, and deep customer relationships," concluded Lehmkuhl.

Please refer to the Lineage's Earnings Presentation and Supplemental Information for additional details related to the Company's guidance.

First-Quarter 2025 Financial Results Conference Call and Earnings Presentation with Supplemental

Please visit ir.lineage.com/events-and-presentations to view Lineage’s first-quarter 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 first-quarter 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 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; 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 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 CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except par values)

	March 31,			December 31,
	2025			2024
	(unaudited)
Assets
Current assets:
Cash, cash equivalents, and restricted cash	$	197		$	175
Accounts receivable, net		847			826
Inventories		175			187
Prepaid expenses and other current assets		171			97
Total current assets		1,390			1,285
Non-current assets:
Property, plant, and equipment, net		10,644			10,627
Finance lease right-of-use assets, net		1,231			1,254
Operating lease right-of-use assets, net		618			627
Equity method investments		128			124
Goodwill		3,379			3,338
Other intangible assets, net		1,116			1,127
Other assets		262			279
Total assets	$	18,768		$	18,661
Liabilities, Redeemable Noncontrolling Interests, and Equity
Current liabilities:
Accounts payable and accrued liabilities	$	1,132		$	1,220
Accrued dividends and distributions		134			134
Deferred revenue		84			83
Current portion of long-term debt, net		55			56
Total current liabilities		1,405			1,493
Non-current liabilities:
Long-term finance lease obligations		1,240			1,249
Long-term operating lease obligations		598			605
Deferred income tax liability		324			304
Long-term debt, net		5,130			4,906
Other long-term liabilities		425			410
Total liabilities		9,122			8,967
Commitments and contingencies (Note 16)
Redeemable noncontrolling interests		41			43
Stockholders’ equity:
Common stock, $0.01 par value per share – 500 authorized shares; 228 issued and outstanding at March 31, 2025 and December 31, 2024		2			2
Additional paid-in capital - common stock		10,791			10,764
Retained earnings (accumulated deficit)		(1,976	)		(1,855	)
Accumulated other comprehensive income (loss)		(231	)		(273	)
Total stockholders’ equity		8,586			8,638
Noncontrolling interests		1,019			1,013
Total equity		9,605			9,651
Total liabilities, redeemable noncontrolling interests, and equity	$	18,768		$	18,661

LINEAGE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (in millions, except per share amounts)

	Three Months Ended March 31,
	2025			2024
	(unaudited)
Net revenues	$	1,292		$	1,328
Cost of operations		876			884
General and administrative expense		154			124
Depreciation expense		158			158
Amortization expense		54			53
Acquisition, transaction, and other expense		15			8
Restructuring, impairment, and (gain) loss on disposals		(21	)		—
Total operating expense		1,236			1,227
Income from operations		56			101
Other income (expense):
Equity income (loss), net of tax		(4	)		(2	)
Gain (loss) on foreign currency transactions, net		16			(11	)
Interest expense, net		(60	)		(139	)
Gain (loss) on extinguishment of debt		—			(7	)
Total other income (expense), net		(48	)		(159	)
Net income (loss) before income taxes		8			(58	)
Income tax expense (benefit)		8			(10	)
Net income (loss)		—			(48	)
Less: Net income (loss) attributable to noncontrolling interests		—			(8	)
Net income (loss) attributable to Lineage, Inc.		—			(40	)

Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on foreign currency hedges and interest rate hedges		(17	)		3
Foreign currency translation adjustments		64			(74	)
Comprehensive income (loss)		47			(119	)
Less: Comprehensive income (loss) attributable to noncontrolling interests		5			(16	)
Comprehensive income (loss) attributable to Lineage, Inc.	$	42		$	(103	)

Basic earnings (loss) per share	$	0.01		$	(0.28	)
Diluted earnings (loss) per share	$	0.01		$	(0.28	)

Weighted average common shares outstanding:
Basic		228			162
Diluted		228			162

LINEAGE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY (Unaudited) (in millions)

				Common Stock
	Redeemable noncontrolling interests			Number of shares	Amount at par value		Additional paid-in capital			Series A preferred stock		Retained earnings (accumulated deficit)			Accumulated other comprehensive ncome (loss)			Noncontrolling interests			Total equity
Balance as of December 31, 2023	$	349		162	$	2	$	5,961		$	1	$	(879	)	$	(34	)	$	622		$	5,673
Distributions		(1	)	—		—		—			—		—			—			(12	)		(12	)
Stock-based compensation		—		—		—		3			—		—			—			2			5
Other comprehensive income (loss)		—		—		—		—			—		—			(63	)		(8	)		(71	)
Redemption of redeemable noncontrolling interests		(6	)	—		—		—			—		—			—			—			—
Redemption of common stock		—		—		—		(25	)		—		—			—			—			(25	)
Expiration of redemption option		(92	)	—		—		65			—		—			—			27			92
Redeemable noncontrolling interest redemption value adjustment		6		—		—		(6	)		—		—			—			—			(6	)
Net income (loss)		—		—		—		—			—		(40	)		—			(8	)		(48	)
Reallocation of noncontrolling interests		—		—		—		(7	)		—		—			—			7			—
Balance as of March 31, 2024	$	256		162	$	2	$	5,991		$	1	$	(919	)	$	(97	)	$	630		$	5,608

LINEAGE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY (Unaudited) (in millions, except per share amounts)

				Common Stock
	Redeemable noncontrolling interests			Number of shares	Amount at par value		Additional paid-in capital		Retained earnings (accumulated deficit)			Accumulated other comprehensive income (loss)			Noncontrolling interests			Total equity
Balance as of December 31, 2024	$	43		228	$	2	$	10,764	$	(1,855	)	$	(273	)	$	1,013		$	9,651
Dividends ($0.53 per common share) and other distributions ($0.53 per OP Unit and OPEU)		—		—		—		—		(121	)		—			(14	)		(135	)
Stock-based compensation		—		—		—		19		—			—			21			40
Other comprehensive income (loss)		—		—		—		—		—			42			5			47
Redeemable noncontrolling interest redemption value adjustment		(2	)	—		—		2		—			—			—			2
Net income (loss)		—		—		—		—		—			—			—			—
Reallocation of noncontrolling interests		—		—		—		6		—			—			(6	)		—
Balance as of March 31, 2025	$	41		228	$	2	$	10,791	$	(1,976	)	$	(231	)	$	1,019		$	9,605

LINEAGE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions)

	Three Months Ended March 31,
	2025			2024
	(unaudited)
Cash flows from operating activities:
Net income (loss)	$	—		$	(48	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Provision for credit losses		1			1
Impairment of long-lived and intangible assets		1			—
Gain on insurance recovery (see Note 16, Commitments and contingencies)		(24	)		—
Depreciation and amortization		212			211
(Gain) loss on extinguishment of debt, net		—			7
Amortization of deferred financing costs and above/below market debt		2			6
Stock-based compensation		40			5
(Gain) loss on foreign currency transactions, net		(16	)		11
Deferred income tax		11			(23	)
Put Options fair value adjustment		2			—
Proceeds from insurance recoveries - business interruption (see Note 16, Commitments and contingencies)		8			—
Other operating activities		2			3
Changes in operating assets and liabilities (excluding effects of acquisitions):
Accounts receivable		(24	)		36
Prepaid expenses, other assets, and other long-term liabilities		(39	)		(21	)
Inventories		12			2
Accounts payable and accrued liabilities and deferred revenue		(51	)		(83	)
Right-of-use assets and lease obligations		2			(2	)
Net cash provided by operating activities		139			105
Cash flows from investing activities:
Acquisitions, net of cash acquired		—			(59	)
Deposits on pending acquisitions and related refunds, net		—			2
Purchase of property, plant, and equipment		(151	)		(147	)
Proceeds from sale of assets		2			2
Proceeds from insurance recovery on impaired long-lived assets		17			—
Investments in Emergent Cold LatAm Holdings, LLC		(7	)		(5	)
Other investing activity		1			5
Net cash used in investing activities		(138	)		(202	)
Cash flows from financing activities:
Dividends and other distributions		(134	)		(112	)
Redemption of redeemable noncontrolling interests		—			(6	)
Financing fees		—			(44	)
Proceeds from long-term debt		—			81
Repayments of long-term debt and finance leases		(25	)		(972	)
Payment of deferred and contingent consideration liabilities		(2	)		—
Borrowings on revolving line of credit		582			1,837
Repayments on revolving line of credit		(398	)		(632	)
Redemption of common stock		—			(25	)
Other financing activity		(2	)		(6	)
Net cash provided by financing activities		21			121
Impact of foreign exchange rates on cash, cash equivalents, and restricted cash		—			(1	)
Net increase (decrease) in cash, cash equivalents, and restricted cash		22			23
Cash, cash equivalents, and restricted cash at the beginning of the period		175			71
Cash, cash equivalents, and restricted cash at the end of the period	$	197		$	94

Global Warehousing Segment

The following table presents the operating results of our warehouse segment for the three months ended March 31, 2025 and 2024.

	Three Months Ended March 31,
	2025			2024			Change
	*(in millions except revenue per pallet)*
Warehouse storage	$	491		$	516		(4.8	)%
Warehouse services		453			453		—	%
Total global warehousing segment revenues		944			969		(2.6	)%
Labor⁽¹⁾		356			354		0.6	%
Power		49			47		4.3	%
Other warehouse costs⁽²⁾		179			183		(2.2	)%
Total global warehousing segment cost of operations		584			584		—	%
Global warehousing segment NOI	$	360		$	385		(6.5	)%
Total global warehousing segment margin		38.1	%		39.7	%	(160) bps

Number of warehouse sites		469			463

Warehouse storage⁽³⁾
Average economic occupancy
Average occupied economic pallets (in thousands)		8,056			8,187		(1.6	)%
Economic occupancy percentage		81.0	%		83.6	%	(260) bps
Storage revenue per economic occupied pallet	$	60.93		$	62.98		(3.3	)%
Average physical occupancy
Average physical occupied pallets (in thousands)		7,506			7,603		(1.3	)%
Average physical pallet positions (in thousands)		9,949			9,796		1.6	%
Physical occupancy percentage		75.4	%		77.6	%	(220) bps
Storage revenue per physical occupied pallet	$	65.39		$	67.82		(3.6	)%
Warehouse services⁽³⁾
Throughput pallets (in thousands)		12,984			12,874		0.9	%
Warehouse services revenue per throughput pallet	$	32.02		$	32.40		(1.2	)%

____________________

Excludes less than $1 million of stock-based compensation expense for the three months ended March 31, 2025.
Includes real estate rent expense (operating leases) of $23 million and $25 million for the three months ended March 31, 2025 and 2024, respectively; and non-real estate rent expense (equipment lease and rentals) of $5 million and $5 million for the three months ended March 31, 2025 and 2024, 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 months ended March 31, 2025 and March 31, 2024.

	Three Months Ended March 31,
	2025			2024			Change
	*(in millions except revenue per pallet)*
Warehouse storage	$	456		$	483		(5.6	)%
Warehouse services		419			430		(2.6	)%
Total same warehouse revenues		875			913		(4.2	)%
Labor		331			336		(1.5	)%
Power		44			44		—	%
Other warehouse costs		163			167		(2.4	)%
Total same warehouse cost of operations		538			547		(1.6	)%
Same warehouse NOI	$	337		$	366		(7.9	)%
Total same warehouse margin		38.5	%		40.1	%	(160) bps

Number of same warehouse sites		427			427

Warehouse storage⁽¹⁾
Economic occupancy
Average occupied economic pallets (in thousands)		7,487			7,671		(2.4	)%
Economic occupancy percentage		82.1	%		83.6	%	(150) bps
Storage revenue per economic occupied pallet	$	60.88		$	63.00		(3.4	)%
Physical occupancy
Average physical occupied pallets (in thousands)		6,974			7,109		(1.9	)%
Average physical pallet positions (in thousands)		9,121			9,173		(0.6	)%
Physical occupancy percentage		76.5	%		77.5	%	(100) bps
Storage revenue per physical occupied pallet	$	65.36		$	67.97		(3.8	)%
Warehouse services⁽¹⁾
Throughput pallets (in thousands)		11,894			12,109		(1.8	)%
Warehouse services revenue per throughput pallet	$	32.06		$	32.54		(1.5	)%

____________________

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 months ended March 31, 2025 and 2024.

	Three Months Ended March 31,
	2025			2024			Change
	*(in millions except revenue per pallet)*
Warehouse storage	$	35		$	33		6.1	%
Warehouse services		34			23		47.8	%
Total non-same warehouse revenues		69			56		23.2	%
Labor		25			18		38.9	%
Power		5			3		66.7	%
Other warehouse costs		16			16		—	%
Total non-same warehouse cost of operations		46			37		24.3	%
Non-same warehouse NOI	$	23		$	19		21.1	%
Total non-same warehouse margin		33.3	%		33.9	%	(60) bps

Number of non-same warehouse sites⁽¹⁾		42			36

Warehouse storage⁽²⁾
Economic occupancy
Average occupied economic pallets (in thousands)		569			516		10.3	%
Economic occupancy percentage		68.7	%		82.8	%	(1,410) bps
Storage revenue per economic occupied pallet	$	61.51		$	62.80		(2.1	)%
Physical occupancy
Average physical occupied pallets (in thousands)		532			494		7.7	%
Average physical pallet positions (in thousands)		828			623		32.9	%
Physical occupancy percentage		64.3	%		79.3	%	(1,500) bps
Storage revenue per physical occupied pallet	$	65.78		$	65.63		0.2	%
Warehouse services⁽²⁾
Throughput pallets (in thousands)		1,090			765		42.5	%
Warehouse services revenue per throughput pallet	$	31.52		$	30.12		4.6	%

____________________

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 months ended March 31, 2025 and 2024.

	Three Months Ended March 31,
	2025			2024			Change
	*(in millions)*
Global Integrated Solutions segment revenues	$	348		$	359		(3.1	)%
Global Integrated Solutions segment cost of operations⁽¹⁾		291			300		(3.0	)%
Global Integrated Solutions segment NOI	$	57		$	59		(3.4	)%
Global Integrated Solutions margin		16.4	%		16.4	%	— bps

____________________

Excludes $1 million of stock-based compensation expense for the three months ended March 31, 2025.

Capital Expenditures

Maintenance Capital Expenditures

The following table sets forth our recurring maintenance capital expenditures.

	Three Months Ended March 31,
	2025		2024
(in millions)
Global warehousing	$	29	$	20
Global integrated solutions		1		5
Information technology and other		2		5
Maintenance capital expenditures	$	32	$	30

Integration Capital Expenditures

The following table sets forth our integration capital expenditures.

	Three Months Ended March 31,
	2025		2024
(in millions)
Global warehousing	$	8	$	8
Information technology and other		4		9
Integration capital expenditures	$	12	$	17

External Growth Capital Investments

The following table sets forth our external growth capital investments.

	Three Months Ended March 31,
	2025		2024
(in millions)
Acquisitions, including equity issued and net of cash acquired and adjustments ⁽¹⁾	$	—	$	59
Greenfield and expansion expenditures		37		36
Energy and economic return initiatives		16		22
Information technology transformation and growth initiatives		14		12
External growth capital investments	$	67	$	129

____________________

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 Reconciliations Reconciliation of NOI to Net Income (Loss)

	Three Months Ended March 31,
(in millions)	2025			2024
Net income (loss)	$	—		$	(48	)
Stock-based compensation expense in cost of operations		1			—
General and administrative expense		154			124
Depreciation expense		158			158
Amortization expense		54			53
Acquisition, transaction, and other expense		15			8
Restructuring, impairment, and (gain) loss on disposals		(21	)		—
Equity (income) loss, net of tax		4			2
(Gain) loss on foreign currency transactions, net		(16	)		11
Interest expense, net		60			139
(Gain) loss on extinguishment of debt		—			7
Income tax expense (benefit)		8			(10	)
Total segment NOI	$	417		$	444

Reconciliation of EBITDA, EBITDAre, and Adjusted EBITDA to Net Income (Loss)

	Three Months Ended March 31,
(in millions)	2025			2024
Net income (loss)	$	—		$	(48	)
Adjustments:
Depreciation and amortization expense		212			211
Interest expense, net		60			139
Income tax expense (benefit)		8			(10	)
EBITDA	$	280		$	292
Adjustments:
Allocation of EBITDAre of noncontrolling interests		—			(1	)
EBITDAre	$	280		$	291
Adjustments:
Net (gain) loss on sale of non-real estate assets		(2	)		(1	)
Acquisition, restructuring, and other		17			9
Technology transformation		5			3
(Gain) loss on property destruction		(24	)		—
(Gain) loss on foreign currency exchange transactions, net		(16	)		11
Stock-based compensation expense		40			5
(Gain) loss on extinguishment of debt		—			7
Non-real estate impairment		1			—
Allocation related to unconsolidated JVs		3			1
Allocation adjustments of noncontrolling interests		—			1
Adjusted EBITDA	$	304		$	327
Net revenues	$	1,292		$	1,328
Adjusted EBITDA margin		23.5	%		24.6	%

Reconciliation of FFO, Core FFO, and Adjusted FFO to Net Income (Loss)

	Three Months Ended March 31,
(in millions, except per share information)	2025			2024
Net income (loss)	$	—		$	(48	)
Adjustments:
Real estate depreciation		85			85
In-place lease intangible amortization		1			2
Real estate depreciation, (gain) loss on sale of real estate and real estate impairments on unconsolidated JVs		1			1
Allocation of noncontrolling interests		—			(1	)
FFO	$	87		$	39
Adjustments:
Net (gain) loss on sale of non-real estate assets		(2	)		(1	)
Finance lease ROU asset amortization - real estate related		18			18
Non-real estate impairment		1			—
Acquisition, restructuring, and other		20			9
Technology transformation		5			3
(Gain) loss on property destruction		(24	)		—
(Gain) loss on foreign currency transactions, net		(16	)		11
(Gain) loss on extinguishment of debt		—			7
Core FFO	$	89		$	86
Adjustments:
Non-real estate depreciation and amortization		100			100
Finance lease ROU asset amortization - non-real estate		8			7
Amortization of deferred financing costs		3			6
Amortization of debt discount / premium		(1	)		—
Deferred income taxes expense (benefit)		11			(23	)
Straight line net operating rent		1			(2	)
Stock-based compensation expense		40			5
Recurring maintenance capital expenditures		(32	)		(30	)
Allocation related to unconsolidated JVs		1			1
Allocation of noncontrolling interests		(1	)		(2	)
Adjusted FFO	$	219		$	148

*Reconciliation of weighted average common shares outstanding:*
Weighted average common shares outstanding		228			162
Partnership common units and OP Units held by Non-Company LPs		22			20
Equity compensation and other unvested units		6			—
Adjusted diluted weighted average common shares outstanding		256			182
Adjusted FFO per diluted common share	$	0.86		$	0.81

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 condensed 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/20250430892295/en/

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Evan Barbosa
VP, Investor Relations
ir@onelineage.com

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VP, Global Marketing & Communications
pr@onelineage.com

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