In This Article:
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Total Revenue: $1.29 billion, down 3% year-over-year.
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Adjusted EBITDA: $304 million, a decrease of 7%.
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Adjusted EBITDA Margin: Down 110 basis points to 23.5%.
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AFFO (Adjusted Funds From Operations): $219 million, up 48%.
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AFFO Per Share: $0.86, a 6% increase versus prior year.
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Same-Store Warehouse Sales: Down 7.9%.
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Same-Store Physical Occupancy: 76.5%.
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Net Debt: $6.7 billion.
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Total Liquidity: $1.7 billion.
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Leverage Ratio: Net debt to adjusted EBITDA at 5.2.
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2025 Guidance: Adjusted EBITDA range of $1,350 to $1,400 million; AFFO per share of $3.40 to $3.60.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Lineage Inc (NASDAQ:LINE) announced a landmark agreement with Tyson Foods, expected to generate over $100 billion in annual EBITDA once stabilized.
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The company plans to deploy approximately $1 million in capital for acquisitions and new developments, enhancing its position as a top global cold storage company.
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Lineage Inc (NASDAQ:LINE) reported a 6% growth in FFO per share, demonstrating resilience despite challenging market conditions.
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The company is maintaining its previous guidance and expects adjusted EBITDA and AFFO per share growth for the full year.
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Lineage Inc (NASDAQ:LINE) continues to execute a robust pipeline of development and M&A opportunities, including the acquisition of three warehouse campuses and significant expansions in Europe.
Negative Points
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Total revenue for the first quarter was down 3%, and adjusted EBITDA decreased by 7%, reflecting challenging market conditions.
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Same-store warehouse sales declined by 7.9%, impacted by lower revenue per throughput and customers resetting volume guarantees at lower levels.
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The macroeconomic uncertainty, driven by U.S. tariff announcements, has created hesitancy among customers, affecting near-term activity.
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Lineage Inc (NASDAQ:LINE) faces pricing pressure and uncertainty in the short term, with competitive market conditions impacting revenue.
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The company is experiencing challenges in predicting growth levels for the second half of the year due to ongoing macroeconomic uncertainties.
Q & A Highlights
Q: Can you elaborate on the impact of tariffs on your business, particularly concerning import-export activities? A: Robert Crisci, CFO, clarified that 15% of their business is tied to import-export. The tariffs have created short-term uncertainty, causing customers to delay major supply chain decisions. However, overall occupancy hasn't been significantly impacted yet. Greg Lehmkuhl, CEO, added that customers are hesitant to make major decisions due to tariff uncertainties, but production and consumption levels remain steady.