Slide 1: Third Quarter 2024 Financial Results
Third Quarter 2024 FINANCIAL RESULTS November 6, 2024
Slide 2: Forward-looking statements
Certain statements contained in this presentation, including statements relating to our plans and strategies, may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can generally be identified by Lineag
Slide 3: Agenda
• Introduction to Lineage • Q3 Highlights • Capital Deployment • Financial Results • Business Segment Details • Capital Structure • 2024 Outlook • Q&A Agenda 3
Slide 4: Key Investment Highlights
Key Investment Highlights 41. As of September 30, 2024. Cold storage is the critical infrastructure of the food supply chain Diversified across commodities, customers and geographies Global leader in a fragmented industry with powerful network benefits Significant external growth opportunities to de
Slide 5: Lineage's Robust Flywheel of Growth
Lineage’s Robust Flywheel of Growth 5 Accretive Capital Deployment in Development Projects and M&A Supports Future NOI Growth Strong Cash Flow and Tax-Efficient REIT Structure Creates Efficient Cost of Capital Increasing NOI and Same Warehouse Growth Yields Additional Investment Capacity
Slide 6: Q3 Highlights
Q3 Highlights 6 • Completed largest real estate IPO of all time; $5.1B of gross proceeds • Used IPO proceeds to reduce debt, achieving investment grade credit ratings (BBB+ at Fitch, Baa2 at Moody’s) • Adj. EBITDA +5% YoY to $333M; AFFO +52% to $208M; AFFO/share +20% to $0.90 • Strong operational ex
Slide 7: Capital Deployment
7 Capital Deployment Greenfields and Expansions • Opened state-of-the-art, fully-automated Hazleton, PA facility • 60M people in a ~250-mile radius • Leverages proprietary, patented LinOS technology Acquisitions • Closed acquisition of Luik Natie for $66M on July 31st • Located in the Port of Antwer
Slide 8: Case Study: Acquisition of ColdPoint Logistics
Case Study: Acquisition of ColdPoint Logistics 8 1. We are not able to provide forward-looking guidance for certain financial data that would make a reconciliation from the most comparable GAAP measure to non-GAAP financial measure for forward-looking EBITDA possible without unreasonable effort. Thi
Slide 9: Q3 2024 Financial Results
Q3 2024 Financial Results 9 Total Revenue ($M) Adjusted EBITDA ($M) AFFO ($M) AFFO per share $1,256 $1,329 $1,335 Q3 22 Q3 23 Q3 24 +0.5% vs PY Q3 2024 $277 $316 $333 Q3 22 Q3 23 Q3 24 +5.4% vs PY Q3 2024 $129 $137 $208 Q3 22 Q3 23 Q3 24 +51.8% vs PY Q3 2024 $0.74 $0.75 $0.90 Q3 22 Q3 23 Q3 24 +20.0
Slide 10: Global Warehousing Segment
$960 $972 Revenue Q3 23 Q3 24 $367 $383 NOI Q3 23 Q3 24 10 • Same Warehouse NOI +2.4%; compared to +11.0% in Q3 2023 • NOI margin +120 bps vs PY, driven by labor productivity and strong execution; controlling the controllables • Industry continues to rebalance post-Covid and supply chain disruptions
Slide 11: Global Integrated Solutions Segment
11 • Global Integrated Solutions offerings help drive benefits for Global Warehousing • Challenging demand environment for transportation solutions due to lower volumes and excess capacity • Similar environment expected for Q4 Global Integrated Solutions Segment $369 $363 Revenue Q3 23 Q3 24 $63 $56
Slide 12: Capital Structure
• Used net proceeds from IPO to repay: • Remaining DDTL balance of $2.4B • Remaining ICE 5 CMBS balance of $1.3B • $1.2B of revolver balance • Total debt outstanding of $5.0B; total debt and debt-like-obligations of $6.8B • Leverage ratio of 4.9x • ~4 years remaining weighted average term • Weighted
Slide 13: 2024 Outlook
• FY 2024 AFFO/share: $3.16 - $3.20 • Q4 2024 Outlook • AFFO: $180M - $190M • AFFO/share: $0.70 - $0.74 • Low Single-Digit Same WH NOI Growth (vs +9% PY comp) 2024 Outlook 13Notes: Outlook excludes the impact of unannounced future acquisitions or developments. See "Non-GAAP Financial Measures" for a
Slide 14: Q3 Summary
14 Q3 Summary Strong Financial Growth: Adj. EBITDA +5% YoY to $333M; AFFO +52% to $208M; AFFO/share +20% to $0.90 Strong operational execution across diverse market conditions Completed largest real estate IPO of all time; $5.1B of gross proceeds Used IPO proceeds to reduce debt, achieving investmen
Slide 15: Supplemental Financial and Operating Data
Supplemental Financial and Operating Data 15
Slide 16: Consolidated Balance Sheets
Consolidated Balance Sheets 16 (in millions, except par values) September 30, 2024 (unaudited) December 31, 2023 Assets Current assets: Cash and cash equivalents $ 409 $ 68 Restricted cash 3 3 Accounts receivable, net 901 913 Inventories 175 171 Prepaid expenses and other current assets 111 101 Tota
Slide 17: Consolidated Statements of Income
Consolidated Statements of Income 17 Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (in millions, except per share amounts) (unaudited) Net revenues $ 1,335 $ 1,329 $ 4,001 $ 4,008 Cost of operations 897 899 2,672 2,694 General and administrative expense 143 122
Slide 18: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows 18 Nine Months Ended September 30, 2024 2023 (in millions) (unaudited) Cash flows from operating activities: Net income (loss) $ (671) $ (39) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Provision for credit losses 3 4
Slide 19: Consolidated Statements of Cash Flows (continued)
Consolidated Statements of Cash Flows (continued) 19 Nine Months Ended September 30, 2024 2023 (in millions) (unaudited) Cash flows from financing activities: Capital contributions, net of equity raise costs $ - $ 142 Issuance of common stock in IPO, net of equity raise costs 4,879 - Distributions t
Slide 20: Debt Summary
20 Debt Summary DEBT DETAIL As of September 30, 2024 (in millions) Balance Contracted Interest Rate Stated Maturity Date Unsecured Revolving Credit Facility $1,735 SOFR + 0.925% 2/15/2028 Unsecured Term Loan - Floating 1,000 SOFR + 0.925% 2/15/2029 Total Unsecured Loans $2,735 Private Placement (USD
Slide 21: Debt Composition
DEBT COMPOSITION Debt Summary 21Note: As of September 30, 2024. USD $3,690 74% Other $1,324 26% Secured $524 10% Unsecured $4,489 90% Fixed $2,824 56% Floating $2,189 44% Fixed vs Floating Secured vs Unsecured By Currency $M $M $M $M $1,735 $1,000 $637 $549 $459 $163 $228 $33 $20 $820 $89 $2,512 $1,
Slide 22: Interest Expense Summary
INTEREST EXPENSE SUMMARY Debt Summary 22 Interest Expense (in millions) Current Rate Maturity Q3 2024 Revolver S + 10bps + 0.775% 2/15/2028 $ 30 Term Loan A S + 10bps + 0.925% 2/15/2029 17 Private Placement Notes Various Various 10 CMBS (ICE 5) S + 1.97% 11/9/2025 10 Oakland Cool Port Financing S +
Slide 23: Historical Utilization and Minimum Storage Guarantees
HISTORICAL UTILIZATION AND MINIMUM STORAGE GUARANTEES Global Warehouse Segment 23 80.4% 76.8% 77.8% 77.3% 76.7% 77.2% 79.1% 83.4% 81.9% 79.8% 77.7% 80.8% 77.6% 76.6% 75.4% 84.5% 81.1% 82.6% 81.3% 80.2% 81.0% 83.7% 87.7% 87.3% 85.1% 84.3% 87.2% 83.6% 82.9% 82.0% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 202
Slide 24: Historical Same Warehouse NOI Growth
HISTORICAL SAME WAREHOUSE NOI GROWTH – AS REPORTED Global Warehouse Segment 24 22.5% 19.0% 11.0% 9.0% (2.9)% (2.3)% 2.4% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024
Slide 25: Consolidated Financial Performance: Global Warehouse Segment
CONSOLIDATED FINANCIAL PERFORMANCE Global Warehouse Segment - Total 25 1. Labor cost of operations excludes $1 million of stock-based compensation expense for the three months ended September 30, 2024. Excludes $1 million of stock-based compensation expense for the nine months ended September 30, 20
Slide 26: Same Warehouse Financial Performance
SAME WAREHOUSE FINANCIAL PERFORMANCE Global Warehouse Segment – Same Warehouse 261. Warehouse storage and warehouse services metrics exclude managed sites. Three Months Ended September 30, Nine Months Ended September 30, (in millions except revenue per pallet) 2024 2023 Change 2024 2023 Change Wareh
Slide 27: Non-Same Warehouse Financial Performance
NON-SAME WAREHOUSE FINANCIAL PERFORMANCE Global Warehouse Segment – Non-Same Warehouse 271. Warehouse storage and warehouse services metrics exclude managed sites. Three Months Ended September 30, Nine Months Ended September 30, (in millions except revenue per pallet) 2024 2023 Change 2024 2023 Chan
Slide 28: Global Integrated Solutions Segment
Global Integrated Solutions Segment 281. Includes railcar leasing. Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2024 2023 Change 2024 2023 Change Global Integrated Solutions segment revenues $363 $369 (1.6)% $1,094 $1,126 (2.8)% Global Integrated Solutions cost of o
Slide 29: Recurring Maintenance Capital Expenditures
RECURRING MAINTENANCE CAPITAL EXPENDITURES Capital Expenditures 29 (in millions) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 YoY Change Global warehousing $34 $57 $20 $34 $38 11.8% Global integrated solutions $9 $9 $5 $4 $1 (88.9)% Information technology and other $7 $22 $5 $10 $6 (14.3)% Recurring main
Slide 30: Growth Capital Expenditures: Greenfield and Expansion Projects
GROWTH CAPITAL EXPENDITURES: GREENFIELD AND EXPANSION PROJECTS Capital Expenditures 30 Notes: Values expressed in millions unless otherwise stated. Totals may not sum due to rounding. 1. Total Cost is actual capex spend in addition to any forecasted capex spend subsequent to Go Live for projects tha
Slide 31: Repair and Maintenance Expenditures
Repair and Maintenance Expenditures 31 (in millions) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 YoY Change Global warehousing $35 $39 $33 $36 $40 14.3% Global integrated solutions $14 $17 $14 $13 $13 (7.1)% Repair and maintenance expenditures $49 $56 $47 $49 $53 8.2%
Slide 32: Additional Modeling Support
Additional Modeling Support 32 (in millions) Q3 2024 Expected Q4 2024 Weighted average common shares outstanding 210 Partnership common units and OP Units help by Non-Company LPs 21 Equity compensation and other unvested units 1 Adjusted diluted weighted average common shares outstanding 232 257 Int
Slide 33: Same Warehouse Financial Performance - Last Six Quarters
SAME WAREHOUSE FINANCIAL PERFORMANCE - LAST SIX QUARTERS Global Warehouse Segment – Same Warehouse (Q3 2024 Pool) 33 Note: Same Warehouse figures based on the Q3 2024 Same Store asset pool. 1. Warehouse storage and warehouse services metrics exclude managed sites. Three Months Ended (in millions exc
Slide 34: Appendix: Non-GAAP Reconciliations
34 Appendix: Non-GAAP Reconciliations
Slide 35: NOI Reconciliation to Net Income
NOI RECONCILIATION TO NET INCOME Non-GAAP Reconciliations 35 Note: See "Non-GAAP Financial Measures" for additional information regarding these non-GAAP financial measures. 1. NOI Margin is calculated as NOI divided by revenues. 2. Reflects year-over-year growth for each respective period. Three Mon
Slide 36: NOI Reconciliation to Net Income - Last Six Quarters
NOI RECONCILIATION TO NET INCOME - LAST SIX QUARTERS (Q3 2024 POOL) Non-GAAP Reconciliations 36Notes: Same Warehouse figures based on the Q3 2024 Same Store asset pool. See "Non-GAAP Financial Measures" for additional information regarding these non-GAAP financial measures. Three Months Ended (in mi
Slide 37: Adjusted EBITDA Reconciliation to Net Income
ADJUSTED EBITDA RECONCILIATION TO NET INCOME Non-GAAP Reconciliations 37Note: See "Non-GAAP Financial Measures" for additional information regarding these non-GAAP financial measures. Three Months Ended September 30, (in millions) 2022 2023 2024 Net Income (loss) $(42) $(50) $(543) Adjustments: Depr
Slide 38: Adjusted EBITDA Reconciliation - Last Twelve Months
ADJUSTED EBITDA RECONCILIATION TO NET INCOME – LAST TWELVE MONTHS (LTM) Non-GAAP Reconciliations 38Note: See "Non-GAAP Financial Measures" for additional information regarding these non-GAAP financial measures. Three Months Ended Twelve Months Ended (in millions) December 31, 2023 March 31, 2024 Jun
Slide 39: Adjusted FFO Reconciliation to Net Income
ADJUSTED FFO RECONCILIATION TO NET INCOME Non-GAAP Reconciliations 39Note: See "Non-GAAP Financial Measures" for additional information regarding these non-GAAP financial measures. Three Months Ended September 30, (in millions) 2022 2023 2024 Net Income (loss) $(42) $(50) $(543) Adjustments: Real es
Slide 40: Net Debt Reconciliation
NET DEBT RECONCILIATION Non-GAAP Reconciliations 40Note: See "Non-GAAP Financial Measures" for additional information regarding these non-GAAP financial measures. As of September 30, (in millions) 2024 Total debt, net $4,994 Finance lease obligations 1,462 Failed sale-leaseback financing obligations
Slide 41: Non-GAAP financial measures definitions
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 net debt. We also use same warehouse and non-same warehouse metrics. We calculate total segment NOI as our total rev
Slide 42: Non-GAAP financial measures definitions (continued)
(continued) 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 sale
Slide 43: Contact - Thank you
C O N TA C T Thank you 43 Evan Barbosa VP, Investor Relations ir@onelineage.com