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Lineage reports ‘strong’ Q3 in first quarter as public company

Cold storage warehouse operator acquires ColdPoint Logistics for $223M

Lineage issues full-year 2024 adjusted funds from operations guidance of $3.16 to $3.20 per share. (Photo: Jim Allen/FreightWaves)

Cold storage warehouse operator Lineage Inc. reported financial results Wednesday for the first time since becoming a public company. The Novi, Michigan-based real estate investment trust posted a $543 million net loss, which included numerous expenses tied to the initial public offering. Excluding certain items, adjusted funds from operations (AFFO) increased 20% year over year to 90 cents per share.

“We are excited to report strong results for our first quarter as a public company, demonstrating our ability to perform well in various economic environments,” said President and CEO Greg Lehmkuhl in a news release. “Looking forward, we are well positioned to drive compounding growth, benefiting from our industry-leading real estate portfolio, innovative technology, and our strategic capital deployment engine.”

Lineage raised $5.1 billion in gross proceeds from its July IPO, which was the largest real estate IPO in history. It used $4.9 billion to pay down debt, giving it an investment-grade credit profile. It also implemented a quarterly dividend, which equals $2.11 per share on an annualized basis.

Table: Lineage’s key performance indicators

Net revenue of $1.34 billion increased 0.5% y/y. Physical occupancy was 77.6% in the quarter, 160 basis points worse y/y but flat with the second quarter. Total pallet throughput fell 1.7% y/y to 11.3 million but was also flat sequentially.


Lehmkuhl told analysts on a Wednesday call that customers are still seeing soft demand as food prices remain high, but most are expecting an eventual rebound.

Lineage (NASDAQ: LINE) issued full-year 2024 AFFO guidance of $3.16 to $3.20 per share. The guidance includes low-single-digit growth in same-store net operating income as it “controls the controllable” across expense lines.

The company also announced that on Friday it acquired ColdPoint Logistics for $223 million, expanding its footprint in the Kansas City, Missouri market. ColdPoint operates 21 million cubic feet of space.

Lineage manages more than 480 facilities with 3 billion cubic feet of space across North America, Europe and the Asia-Pacific region. It also provides freight forwarding, customs brokerage, drayage and truck transportation.


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Todd Maiden

Based in Richmond, VA, Todd is the finance editor at FreightWaves. Prior to joining FreightWaves, he covered the TLs, LTLs, railroads and brokers for RBC Capital Markets and BB&T Capital Markets. Todd began his career in banking and finance before moving over to transportation equity research where he provided stock recommendations for publicly traded transportation companies.