Lineage cuts full-year guidance amid muted seasonal inventory

Published 06/08/2025, 10:48
Lineage cuts full-year guidance amid muted seasonal inventory

Investing.com -- Lineage , Inc. (NASDAQ:LINE), the world’s largest temperature-controlled warehouse REIT, reported second quarter revenue of $1.35 billion on Wednesday, representing a modest 0.9% increase YoY. The company posted a GAAP net loss of -$0.03 per diluted share for the quarter.

Lineage’s second quarter performance reflected ongoing challenges in the temperature-controlled warehouse industry. The company’s adjusted EBITDA decreased 2.4% to $326 million, with adjusted EBITDA margin contracting by 90 basis points to 24.1%.

However, AFFO (Adjusted Funds From Operations) increased 55.1% to $211 million, with AFFO per share rising 8.0% to $0.81.

"We delivered second-quarter results in line with our expectations," said Greg Lehmkuhl, president and CEO of Lineage.

"We achieved AFFO per share growth driven by our continued focus on serving our customers and operational excellence while navigating a challenging period for our industry."

In response to muted seasonal inventory levels observed late in the second quarter and continuing into the third quarter, Lineage has reduced its full-year 2025 guidance.

The company now expects adjusted EBITDA of $1.29 to $1.34 billion, down from its previous forecast of $1.35 to $1.40 billion. Similarly, AFFO per share guidance has been lowered to $3.20 to $3.40 from the prior range of $3.40 to $3.60.

For the third quarter of 2025, Lineage projects adjusted EBITDA between $326 and $336 million and AFFO per share of $0.75 to $0.79.

The company also announced it completed a $500 million investment grade bond offering of 5-year unsecured notes with a 5.25% coupon during the quarter.

Additionally, Lineage declared a quarterly dividend of $0.5275 per share, representing an annualized dividend rate of $2.11 per share.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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