Lineage sets prorated dividend post-IPO

NOVI, Mich. - Lineage, Inc. (NASDAQ: LINE), a leading global temperature-controlled warehouse Real Estate Investment Trust (REIT), has declared a prorated quarterly cash dividend of $0.38 per share for the third quarter of 2024. This dividend corresponds to the period starting from July 26, 2024, when the company's initial public offering was completed, through September 30, 2024. It reflects an annualized dividend rate of $2.11 per share.

Shareholders on record as of the close of business on September 30, 2024, will receive the dividend payment on October 21, 2024. This announcement marks a significant financial event for the company following its recent transition to a publicly traded entity.

Lineage operates as the largest global temperature-controlled warehouse REIT, boasting a network that includes over 480 facilities. These facilities account for more than 84 million square feet of space and approximately 3.0 billion cubic feet of capacity. The company's operations span North America, Europe, and the Asia-Pacific region, where it offers a suite of supply chain solutions and advanced technology. Its services are crucial for numerous food and beverage producers, retailers, and distributors worldwide, aiming to enhance distribution efficiency, support sustainability, reduce supply chain waste, and contribute to global food distribution.

As with any forward-looking statements, those contained in the press release from which this information is drawn are subject to various risks and uncertainties. These statements, identifiable by the use of terms like "may," "will," and "expect," are not guarantees of future performance and are only relevant as of the date they were made. Lineage has emphasized that these forward-looking statements are covered by the safe harbor provisions for such statements as outlined in the Securities Act of 1933 and the Securities Exchange Act of 1934.

This financial update is based on a press release statement from Lineage, Inc. and does not constitute an endorsement of the company's performance or future prospects.

In other recent news, Lineage Inc has seen a flurry of activity with various analyst firms initiating coverage. KeyBanc Capital Markets started coverage on Lineage Inc with an Overweight rating and a price target of $92, citing lower leverage and substantial funds for future investments following a successful IPO. Scotiabank initiated coverage with a Sector Outperform rating and a price target of $95, projecting an 11% compound annual growth rate in adjusted funds from operations from 2023 to 2026.

Truist Securities began its coverage with a Buy rating and a price target of $94, emphasizing Lineage's strong growth profile and aggressive expansion strategy. UBS initiated coverage with a Neutral rating and a price target of $88, suggesting that potential growth is already reflected in the current stock price. Wells Fargo initiated coverage with an Equal Weight rating and a price target of $86, based on the firm's analysis of Lineage's fiscal year 2025 and 2026 adjusted funds from operations estimates.

Mizuho started coverage with a Neutral rating and a price target of $86, recognizing Lineage's significant scale and advanced technology utilization. These are just some of the recent developments that investors should be aware of regarding Lineage Inc.

InvestingPro Insights

As Lineage, Inc. (NASDAQ: LINE) steps into the spotlight with its recent dividend announcement, it's important for investors to consider the company's market position and financial health. According to InvestingPro, Lineage is recognized as a prominent player in the Industrial REITs industry, which underscores its significant role in the temperature-controlled warehousing and logistics sector.

However, the financial outlook presents a mixed picture. InvestingPro Tips indicate that net income for Lineage is expected to drop this year, and analysts do not anticipate the company will be profitable within the same timeframe. This is further substantiated by the company's current P/E ratio, which stands at a negative -59.07, reflecting challenges in generating earnings relative to its share price. Moreover, the adjusted P/E ratio for the last twelve months as of Q2 2024 is an even lower -147.19, signifying investor skepticism about future earnings.

InvestingPro Data reveals that Lineage's market capitalization is $20.58 billion, positioning it as a significant entity in its sector. Despite the company's robust revenue of $5.33 billion over the last twelve months as of Q2 2024, it experienced a slight quarterly revenue decline of -0.59%. Additionally, the company is trading near its 52-week low, with its price at 91.12% of the 52-week high, which could indicate a potential buying opportunity for value investors.

For those considering an investment in Lineage, it's worth noting that the company does not pay a dividend to shareholders, which may influence investment decisions for those seeking regular income. For more detailed analysis and additional InvestingPro Tips, investors can visit https://www.investing.com/pro/LINE, where there are currently 8 more tips available to help guide investment decisions.

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