Lineage, Inc. · NASDAQ:LINE
Lineage — Q1 2025 Earnings Presentation
38 slides from Lineage's earnings presentation, Apr 30, 2025
Slide 1: First Quarter 2025 Financial Results
First Quarter 2025 FINANCIAL RESULTS April 30, 2025
Slide 2: Forward-Looking Statements
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 current expectations, est
Slide 3: Announces Landmark Agreements with Tyson Foods
Announces Landmark Agreements with Tyson Foods 31. The acquisition agreement is subject to customary closing conditions and expected to close in Q2 2025. The entry into the warehousing agreement is a closing condition and expected to be entered into at or prior to closing of the acquisition. Assets
Slide 4: Q1 2025 Highlights
Q1 2025 Highlights 4 • Landmark Agreements with Tyson Foods o $100M+ stabilized EBITDA when complete • Q1 25 saw normal seasonality, as expected, against elevated inventory levels last year o Revenue down (3)% o EBITDA down (7)% o Same WH physical occupancy held strong at 76.5% • AFFO per share +6%
Slide 5: Q1 2025 Financial Results
Q1 2025 Financial Results 5 Total Revenue ($M) Adjusted EBITDA ($M) Adjusted EBITDA Margin AFFO per share $254 $334 $327 $304 Q1 22 Q1 23 Q1 24 Q1 25 22.5% 25.1% 24.6% 23.5% Q1 22 Q1 23 Q1 24 Q1 25 $1,127 $1,333 $1,328 $1,292 Q1 22 Q1 23 Q1 24 Q1 25 (3)%flatYoY growth +18% (7)%(2)%YoY growth +32% (1
Slide 6: Global Warehouse Segment Revenue and Outlook
$785 $958 $969 $944 Q1 22 Q1 23 Q1 24 Q1 25 Revenue 1. As reported. 1Q 2023 and 1Q 2024 details represent the same warehouse pool for their respective time periods. 1Q 2025 details represent the 1Q 2025 same warehouse pool. 6 Q1 2025 Highlights • Revenue declined with a return to more typical season
Slide 7: Global Integrated Solutions Segment
$342 $376 $359 $348 Q1 22 Q1 23 Q1 24 Q1 25 Revenue 7 Global Integrated Solutions Segment $M Total Segment Q1 2025 Highlights • New business wins from 2H24 coming online over the course of 2025 • GIS transportation solutions increasingly in focus as customers react to US tariff announcements 2025 Se
Slide 8: Capital Structure Update
Total debt outstanding of $5.2B • ~3.5 years remaining weighted average term • Weighted average interest rate of 2.6% Net debt and debt-like-obligations of $6.7B • Leverage ratio of 5.2x 8 Capital Structure Update As of 3/31/2025 Total Debt $5,199 Debt-like Obligations $1,734 Gross Debt $6,933 Cash
Slide 9: Maintaining 2025 Guidance
9 Maintaining 2025 Guidance See "Non-GAAP Financial Measures" for additional information regarding these non-GAAP financial measures. 2025 Guidance Range Comments Adjusted EBITDA ($M) $1,350 - $1,400 No change; includes ~$25M contribution from announced acquisitions, monitoring tariff uncertainty ca
Slide 10: Competitive Advantages Fueling Growth Flywheel
10 Competitive Advantages Fueling Growth Flywheel Compounding growth to drive shareholder value Increasing NOI and Same Warehouse Growth Yields Additional Investment Capacity Accretive Capital Deployment in Development Projects and M&A Supports Future NOI Growth Maintaining adjusted EBITDA and AFFO
Slide 11: Supplemental Financial and Operating Data
Supplemental Financial and Operating Data 11
Slide 12: Consolidated Financial Performance: Global Warehouse Segment - Total
CONSOLIDATED FINANCIAL PERFORMANCE Global Warehouse Segment - Total 12 1. Labor cost of operations excludes less than $1 million of stock-based compensation expense for the three months ended March 31, 2025. 2. Includes real estate rent expense of $23 million and $25 million for the three months end
Slide 13: Same Warehouse Financial Performance
SAME WAREHOUSE FINANCIAL PERFORMANCE Global Warehouse Segment – Same Warehouse 131. Warehouse storage and warehouse services metrics exclude managed sites. Three Months Ended March 31, (in millions except revenue per pallet) 2025 2024 Change Warehouse storage $456 $483 (5.6) % Warehouse services 419
Slide 14: Non-Same Warehouse Financial Performance
NON-SAME WAREHOUSE FINANCIAL PERFORMANCE Global Warehouse Segment – Non-Same Warehouse 141. Warehouse storage and warehouse services metrics exclude managed sites. Three Months Ended March 31, (in millions except revenue per pallet) 2025 2024 Change Warehouse storage $35 $33 6.1 % Warehouse services
Slide 15: Same Warehouse Financial Performance - Last Five Quarters
SAME WAREHOUSE FINANCIAL PERFORMANCE - LAST FIVE QUARTERS Global Warehouse Segment – Same Warehouse (Q1 2025 Pool) 15 Note: Same Warehouse figures based on the Q1 2025 Same Store asset pool. 1. Warehouse storage and warehouse services metrics exclude managed sites. Three Months Ended YoY % Change (i
Slide 16: Global Integrated Solutions Breakdown
1. Labor cost of operations excludes stock based compensation expense of $1 million for the three months ended March 31, 2025. 2. Transportation includes railcar leasing Global Integrated Solutions Segment 16 Three Months Ended March 31, (in millions) 2025 2024 Change Global Integrated Solutions seg
Slide 17: Greenfield and Expansion Projects
Greenfield and Expansion Projects 17 Notes: Values expressed in millions unless otherwise stated. Totals may not sum due to rounding. As of March 31, 2025. 1. Total Cost is actual capex spend in addition to any forecasted capex spend subsequent to Go Live for projects that have gone live. Does not i
Slide 18: Debt Detail
181. Stated maturity dates assume the exercise of extension options. 2. RCF interest rate is inclusive of the 0.15% facility fee which is applied to the full $3.5 billion capacity. Debt Summary DEBT DETAIL As of March 31, 2025 (in millions) Balance Contracted Interest Rate Stated Maturity Date1 Unse
Slide 19: Debt Composition
DEBT COMPOSITION Debt Summary 19Note: As of March 31, 2025. USD $3,872 74% Other 1,327 26% Secured $520 10% Unsecured $4,679 90% Fixed $2,156 42% Floating - Unhedged $543 10% Floating - Hedged $2,500 48% Fixed vs Floating Secured vs Unsecured By Currency $M $M $M $M $1,962 $1,000 $630 $550 $119 $326
Slide 20: Interest Expense Summary
INTEREST EXPENSE SUMMARY Debt Summary 20 1. Stated maturity dates assume the exercise of extension options. Interest Expense (in millions) Current Rate Maturity1 Q1 2025 Revolver S + 10bps + 0.925% 2/15/2029 $ 25 Term Loan A S + 10bps + 0.925% 2/15/2029 13 Private Placement Notes Various Various 9 O
Slide 21: Capital Expenditures and Acquisitions
RECURRING MAINTENANCE CAPITAL EXPENDITURES Capital Expenditures and Acquisitions 21 (in millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 YoY Change Global warehousing $20 $34 $38 $57 $29 45.0 % Global integrated solutions $5 $4 $1 $11 $1 (80.0) % Information technology and other $5 $10 $6 $4 $2 (60
Slide 22: Repair and Maintenance Expenses
Repair and Maintenance Expenses 22 (in millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 YoY Change Global warehousing $33 $36 $40 $35 $34 3.0% Global integrated solutions $14 $13 $13 $14 $13 (7.1)% Repair and maintenance expenses $47 $49 $53 $49 $47 — %
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% 78.1% 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% 83.9% 81.0% Q1 2021 Q2 202
Slide 24: Historical Same Warehouse NOI Growth - As Reported
HISTORICAL SAME WAREHOUSE NOI GROWTH – AS REPORTED Global Warehouse Segment 241. As reported. Same Warehouse NOI – Recent 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)% 2025 (7.9)%
Slide 25: Consolidated Balance Sheets
Consolidated Balance Sheets 25 March 31, December 31, (in millions, except par values) 2025 2024 (unaudited) Assets Current assets: Cash, cash equivalents, and restricted cash $ 197 $ 175 Accounts receivable, net 847 826 Inventories 175 187 Prepaid expenses and other current assets 171 97 Total curr
Slide 26: Consolidated Statements of Operations
Consolidated Statements of Operations 26 Three Months Ended March 31, (in millions, except per share amounts) 2025 2024 (unaudited) Net revenues $ 1,292 $ 1,328 Cost of operations 876 884 General and administrative expense 154 124 Depreciation expense 158 158 Amortization expense 54 53 Acquisition,
Slide 27: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows 27 Three Months Ended March 31, 2025 2024 (unaudited) Cash flows from operating activities: Net income (loss) $ — $ (48) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Provision for credit losses 1 1 Impairment of long-l
Slide 28: Consolidated Statements of Cash Flows (continued)
Consolidated Statements of Cash Flows (continued) 28 Three Months Ended March 31, 2025 2024 (unaudited) Cash flows from financing activities: Dividends and other distributions $ (134) $ (112) Redemption of redeemable noncontrolling interests — (6) Financing fees — (44) Proceeds from long-term debt —
Slide 29: Appendix: Non-GAAP Reconciliations
29 Appendix: Non-GAAP Reconciliations
Slide 30: NOI Reconciliation to Net Income
NOI RECONCILIATION TO NET INCOME Non-GAAP Reconciliations 20 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 31: NOI Reconciliation to Net Income - Last Five Quarters
NOI RECONCILIATION TO NET INCOME - LAST FIVE QUARTERS (Q1 2025 Pool) Non-GAAP Reconciliations 31Notes: Same Warehouse figures based on the Q1 2025 Same Store asset pool. See "Non-GAAP Financial Measures" for additional information regarding these non-GAAP financial measures. (in millions) March 31,
Slide 32: Adjusted EBITDA Reconciliation to Net Income QTD
ADJUSTED EBITDA RECONCILIATION TO NET INCOME QTD Non-GAAP Reconciliations 22Note: See "Non-GAAP Financial Measures" for additional information regarding these non-GAAP financial measures. Three Months Ended March 31, (in millions) 2022 2023 2024 2025 Net Income (loss) $1 $19 $(48) $— Adjustments: De
Slide 33: Adjusted EBITDA Reconciliation to Net Income - Last Twelve Months
ADJUSTED EBITDA RECONCILIATION TO NET INCOME - LAST TWELVE MONTHS (LTM) Non-GAAP Reconciliations 33Note: See "Non-GAAP Financial Measures" for additional information regarding these non-GAAP financial measures. Three Months Ended Twelve Months Ended (in millions) June 30, 2024 September 30, 2024 Dec
Slide 34: Adjusted FFO Reconciliation to Net Income QTD
ADJUSTED FFO RECONCILIATION TO NET INCOME QTD Non-GAAP Reconciliations 34Note: See "Non-GAAP Financial Measures" for additional information regarding these non-GAAP financial measures. Three Months Ended March 31, 2022 2023 2024 2025 Net Income (loss) $1 $19 $(48) $— Adjustments: Real estate depreci
Slide 35: Net Debt Reconciliation
NET DEBT RECONCILIATION Non-GAAP Reconciliations 35Note: See "Non-GAAP Financial Measures" for additional information regarding these non-GAAP financial measures. As of March 31, (in millions) 2025 Total debt, net $5,185 Finance lease obligations 1,405 Failed sale-leaseback financing obligations 69
Slide 36: 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 metrics. We calculate total segm
Slide 37: Non-GAAP Financial Measures (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 38: Contact - Thank you
C O N TA C T Thank you 38 Evan Barbosa VP, Investor Relations ir@onelineage.com