Lineage Cell Therapeutics, Inc. · AMEX:LCTX
Lineage Cell Therapeutics — Q4 2024 Earnings Presentation
43 slides from Lineage Cell Therapeutics's earnings presentation, Mar 10, 2025
Slide 1: Fourth Quarter 2024 Financial Results
Fourth Quarter 2024 FINANCIAL RESULTS February 26, 2025
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements. Certain statements contained in this Presentation, other than historical facts, may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on cur
Slide 3: 2024 Highlights
2024 Highlights • Largest REIT IPO of all time, • Same WH physical Grand Opening – Hazleton, PA raising $5.1B occupancy of 78.4% o Used net proceeds to despite market challenges, reduce leverage and benefitting from strategic achieve investment grade locations and high levels of credit ratings custo
Slide 4: Building Momentum into 2025
Building Momentum into 2025 Fresh and Frozen Food Market 2025 Market Outlook • Globally, fresh and frozen food remains a growing • Market has stabilized after 2 years of unusual segment with long-term tailwinds; vast majority volatility driven by inventory rebalancing requires temperature-controlled
Slide 5: Q4 2024 Financial Results
Q4 2024 Financial Results Total Revenue ($M) Adjusted EBITDA ($M) $1,328 $1,334 $1,339 $335 $305 $271 Q4 2024 Q4 2024 2yr CAGR: flat 2yr CAGR: +11% Q4 22 Q4 23 Q4 24 Q4 22 Q4 23 Q4 24 YoY growth flat flat YoY growth +13% +10% Adjusted EBITDA Margin AFFO per share $0.83 25.0% 22.9% 20.4% Q4 2024 Q4 2
Slide 6: FY 2024 Financial Results
FY 2024 Financial Results Total Revenue ($M) Adjusted EBITDA ($M) $1,278 $1,329 $5,342 $5,340 $4,928 $1,074 2024 2024 2yr CAGR: +4% 2yr CAGR: +11% 2022 2023 2024 2022 2023 2024 YoY growth +8% flat YoY growth +19% +4% Adjusted EBITDA Margin AFFO per share $3.29 23.9% 24.9% 21.8% 2024 2024 $3.09 2yr t
Slide 7: Global Warehousing Segment
Global Warehousing Segment 2024 Highlights Total Segment • Continued NOI margin expansion; +390bps vs 2022 $M o Labor productivity improvement and strong Revenue 2yr CAGR NOI 2yr CAGR +6% +12% operational execution driving margin expansion $3,857 $3,887 $1,508 $1,534 • +7.4% average Same WH NOI grow
Slide 8: Global Integrated Solutions Segment
Global Integrated Solutions Segment Total Segment 2024 Highlights $M Revenue • Increased adoption of GIS services by Global Warehousing customers to benefit from strength of $1,496 $1,485 $1,453 Lineage network • Soft transportation demand environment persisted 2025 Segment Outlook • Segment NOI gro
Slide 9: Capital Structure Update
Capital Structure Update Balance Sheet Net Debt to Adjusted EBITDA Total debt outstanding of $5.0B As of $M 12/31/2024 • ~3.8 years remaining weighted average term Total Debt $4,976 • Weighted average interest rate of 2.7% Debt-like Obligations $1,729 Total debt and debt-like-obligations of $6.7B Gr
Slide 10: 2025 Guidance
2025 Guidance 2025 Guidance Range Comments Adjusted EBITDA ($M) $1,350 - $1,400 +2% - 5% YoY +3% - 9% YoY AFFO per share $3.40 - $3.60 Total AFFO of $875-$925M Note: Guidance excludes the impact of unannounced future acquisitions or developments Additional Modeling Support ($M) Range Interest expens
Slide 11: Strong Momentum Entering 2025 – Our Growth Flywheel
Strong Momentum Entering 2025 – Our Growth Flywheel Increasing Strong Accretive Capital NOI and Cash Flow and Deployment in Same Warehouse Tax-Efficient REIT Development Projects and Growth Yields Additional Structure Creates M&A Supports Future NOI Investment Capacity Efficient Cost of Capital Grow
Slide 12: Supplemental Financial and Operating Data
Supplemental Financial and Operating Data 12
Slide 13: Global Warehouse Segment - Total
Global Warehouse Segment - Total CONSOLIDATED FINANCIAL PERFORMANCE Three Months Ended Year Ended December 31, December 31, (in millions except revenue per pallet) 2024 2023 Change 2024 2023 Change Warehouse storage $508 $526 (3.4)% $2,042 $2,071 (1.4)% Warehouse services 472 449 5.1% 1,845 1,786 3.
Slide 14: Global Warehouse Segment – Same Warehouse
Global Warehouse Segment – Same Warehouse SAME WAREHOUSE FINANCIAL PERFORMANCE Three Months Ended Year Ended December 31, December 31, (in millions except revenue per pallet) 2024 2023 Change 2024 2023 Change Warehouse storage $439 $453 (3.1)% $1,760 $1,816 (3.1)% Warehouse services 398 389 2.3% 1,5
Slide 15: Global Warehouse Segment – Non-Same Warehouse
Global Warehouse Segment – Non-Same Warehouse NON-SAME WAREHOUSE FINANCIAL PERFORMANCE Three Months Ended Year Ended December 31, December 31, (in millions except revenue per pallet) 2024 2023 Change 2024 2023 Change Warehouse storage $69 $73 (5.5)% $282 $255 10.6% Warehouse services 74 60 23.3% 261
Slide 16: Same Warehouse (Q4 2024 Pool)
Global Warehouse Segment – Same Warehouse (Q4 2024 Pool) SAME WAREHOUSE FINANCIAL PERFORMANCE - LAST EIGHT QUARTERS Three Months Ended YoY % Change March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, 4Q 2024 FY 2024 (in millions except revenue per pallet) 2023
Slide 17: Same Warehouse (2025 Pool)
Global Warehouse Segment – Same Warehouse (2025 Pool) SAME WAREHOUSE FINANCIAL PERFORMANCE - LAST FOUR QUARTERS (2025 POOL) Three Months Ended March 31, June 30, September 30, December 31, (in millions except revenue per pallet) 2024 2024 2024 2024 Warehouse storage $483 $480 $479 $479 Warehouse ser
Slide 18: Global Integrated Solutions Segment
Global Integrated Solutions Segment CONSOLIDATED FINANCIAL PERFORMANCE Three Months Ended Year Ended December 31, December 31, (in millions) 2024 2023 Change 2024 2023 Change Global Integrated Solutions segment revenues $359 $359 —% $1,453 $1,485 (2.2)% Global Integrated Solutions cost of operations
Slide 19: Greenfield and Expansion Projects
Greenfield and Expansion Projects Greenfield and Expansion Projects Completed Within The Last 36 Months and in Process Remaining Estimated Estimated Project Vintage Square Feet Cubic Feet Pallet Positions Total Cost Spend LTM NOI Stabilized NOI Stabilized NOI Stabilized (Months) Project Count (in mi
Slide 20: Debt Summary
Debt Summary As of December 31, 2024 DEBT DETAIL (in millions) Balance Contracted Interest Rate Stated Maturity Date1 Unsecured Revolving Credit Facility2 $1,772 SOFR + 0.925% 2/15/2029 Unsecured Term Loan – Floating 1,000 SOFR + 0.925% 2/15/2029 Total Unsecured Loans $2,772 Private Placement (USD T
Slide 21: Debt Summary
Debt Summary DEBT COMPOSITION $M $2,969 $115 Debt Maturity $1,000 $782 $768 $1,772 $160 $228 $314 $56 $621 $87 $539 $314 2025 2026 2027 2028 2029 2030+ Revolver Term Loan A Other Unsecured Debt Real Estate Secured Debt Equipment Financing Other Secured Debt Fixed vs Floating Secured vs Unsecured By
Slide 22: Debt Summary – Interest Expense
Debt Summary INTEREST EXPENSE SUMMARY Interest Expense (in millions) Current Rate Maturity1 Q4 2024 Revolver S + 10bps + 0.925% 2/15/2029 $ 25 Term Loan A S + 10bps + 0.925% 2/15/2029 15 Private Placement Notes Various Various 9 Oakland Cool Port Financing S + 1.76% 5/5/2029 1 Other Debt Various Var
Slide 23: Capital Expenditures and Acquisitions
Capital Expenditures and Acquisitions RECURRING MAINTENANCE CAPITAL EXPENDITURES (in millions) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 YoY Change Global warehousing $57 $20 $34 $38 $57 —% Global integrated solutions $9 $5 $4 $1 $11 22.2% Information technology and other $22 $5 $10 $6 $4 (81.8)% Recu
Slide 24: Repair and Maintenance Expenses
Repair and Maintenance Expenses (in millions) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 YoY Change Global warehousing $39 $33 $36 $40 $35 (10.3)% Global integrated solutions $17 $14 $13 $13 $14 (17.6)% Repair and maintenance expenses $56 $47 $49 $53 $49 (12.5)% 24
Slide 25: Historical Utilization and Minimum Storage Guarantees
Global Warehouse Segment HISTORICAL UTILIZATION AND MINIMUM STORAGE GUARANTEES Average Economic and Physical Occupancy in Contracts with Minimum Storage Our Global Warehousing Segment Guaranteed & Lease Revenue (as % of Rent and Storage Revenue) 87.7% 87.3% 87.2% 85.1% 84.5% 84.3% 83.6% 83.9% 83.7%
Slide 26: Historical Same Warehouse NOI Growth
Global Warehouse Segment HISTORICAL SAME WAREHOUSE NOI GROWTH – AS REPORTED Same Warehouse NOI – 2-Year Trend1 Q1 Q2 Q3 Q4 FY 2023 22.5% 19.0% 11.0% 9.0% 15.3% 2024 (2.9)% (2.3)% 2.4% 1.2% (0.6)% 2-Year Average 9.8% 8.4% 6.7% 5.1% 7.4% 1. As reported. 26
Slide 27: Consolidated Balance Sheets
Consolidated Balance Sheets December 31, December 31, 2024 2023 (in millions, except par values) Assets Current assets: Cash and cash equivalents $ 173 $ 68 Restricted cash 2 3 Accounts receivable, net 826 913 Inventories 187 171 Prepaid expenses and other current assets 97 101 Total current assets
Slide 28: Consolidated Statements of Income
Consolidated Statements of Income Year Ended December 31, 2024 2023 2022 (in millions, except per share amounts) Net revenues $ 5,340 $ 5,342 $ 4,928 Cost of operations 3,578 3,590 3,473 General and administrative expense 539 502 399 Depreciation expense 659 552 480 Amortization expense 217 208 198
Slide 29: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows Year Ended December 31, 2024 2023 2022 (in millions) Cash flows from operating activities: Net income (loss) $ (751) $ (96) $ (76) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Provision for credit losses 5 6 5 Impairme
Slide 30: Consolidated Statements of Cash Flows (continued)
Consolidated Statements of Cash Flows (continued) Year Ended December 31, 2024 2023 2022 (in millions) Cash flows from financing activities: Capital contributions, net of equity raise costs $ - $ 142 $ 942 Issuance of common stock in IPO, net of equity raise costs 4,879 (6) - Dividends and other dis
Slide 31: Consolidated Statements of Cash Flows (continued)
Consolidated Statements of Cash Flows (continued) Year Ended December 31, 2024 2023 2022 (in millions) Supplemental disclosures of cash flow information: Cash paid for taxes $ 36 $ 31 $ 74 Cash paid for interest 523 594 354 Noncash activities: Purchases of property, plant, and equipment in Accounts
Slide 32: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations 32
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations NOI RECONCILIATION TO NET INCOME Year Ended December 31, (in millions) 2022 2023 2024 Net Income (Loss) $(76) $(96) $(751) Stock-based compensation expense in cost of operations — — 3 General and administrative expense 399 502 539 Depreciation expense 480 552 659 Amortizatio
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations NOI RECONCILIATION TO NET INCOME - LAST EIGHT QUARTERS (Q4 2024 Pool) March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, (in millions) 2023 2023 2023 2023 2024 2024 2024 2024 Net Income (Loss) $19 $(8) $(50) $(57) $(48) $(80) $(543) $
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations ADJUSTED EBITDA RECONCILIATION TO NET INCOME Year Ended December 31, (in millions) 2022 2023 2024 Net Income (loss) $(76) $(96) $(751) Adjustments: Depreciation and amortization expense 678 760 876 Interest expense, net 347 490 430 Income tax expense (benefit) 6 (14) (89) EB
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations ADJUSTED EBITDA RECONCILIATION TO NET INCOME QTD Three Months Ended (in millions) 2022 2023 2024 Net Income (loss) $(18) $(57) $(80) Adjustments: Depreciation and amortization expense $168 $203 $236 Interest expense, net 111 133 61 Income tax expense (benefit) 1 (6) (41) EBI
Slide 37: Non-GAAP Reconciliations
Non-GAAP Reconciliations ADJUSTED EBITDA RECONCILIATION TO NET INCOME – QTD and YTD Three Months Ended Twelve Months Ended (in millions) March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 December 31, 2024 Net Income (loss) $(48) $(80) $(543) $(80) $(751) Adjustments: Depreciation and
Slide 38: Non-GAAP Reconciliations
Non-GAAP Reconciliations ADJUSTED FFO RECONCILIATION TO NET INCOME Year Ended December 31, (in millions) 2022 2023 2024 Net Income (loss) $(76) $(96) $(751) Adjustments: Real estate depreciation 292 325 356 In-place lease intangible amortization 9 7 8 Net loss (gain) on sale of real estate assets 4
Slide 39: Non-GAAP Reconciliations
Non-GAAP Reconciliations ADJUSTED FFO RECONCILIATION TO NET INCOME QTD Three Months Ended December 31, 2022 2023 2024 Net Income (loss) $(18) $(57) $(80) Adjustments: Real estate depreciation $70 $87 $91 In-place lease intangible amortization 2 1 2 Net loss (gain) on sale of real estate assets 4 1 5
Slide 40: Non-GAAP Reconciliations – Net Debt
Non-GAAP Reconciliations NET DEBT RECONCILIATION As of December 31, (in millions) 2024 Total debt, net $4,962 Finance lease obligations 1,414 Failed sale-leaseback financing obligations 68 Kloosterboer preference shares 247 Total debt and debt-like obligations $6,691 Deferred financing costs 13 Abov
Slide 41: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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, Adjusted EBITDA margin, and net debt. We also use same warehouse and non-same warehouse metr
Slide 42: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (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 a
Slide 43: Thank you
Thank you C O N TA C T Evan Barbosa VP, Investor Relations ir@onelineage.com 43
Lineage Cell Therapeutics — Q4 2024 Earnings Presentation on 6ix