Lineage, Inc. is a publicly-traded real estate investment trust (REIT) focused on providing temperature-controlled storage and logistics solutions. It operates a global network of warehouse facilities catering primarily to the food and beverage industry.

For the first quarter of 2025, Lineage reported total revenue of $1.29 billion, a decrease of 3% compared to the same period last year. Adjusted EBITDA dropped 7% to $304 million, bringing the adjusted EBITDA margin down by 110 basis points to 23.5%. The company’s adjusted funds from operations (AFFO) surged by 48% to $219 million, with AFFO per share increasing by 6% to $0.86.

Despite the decline in total revenue and adjusted EBITDA, Lineage’s physical occupancy rate for same-store warehouses remained strong at 76.5%. The adjusted EBITDA figures reflect challenges associated with lower revenue per throughput and occupied pallet, primarily due to industry-wide inventory resets and lower volume guarantees from customers.

The company maintained its 2025 guidance, projecting adjusted EBITDA between $1.35 billion and $1.4 billion. This guidance remains intact despite macroeconomic uncertainties surrounding evolving U.S. tariff policies, which have led to hesitancy among some customers, particularly in the import/export sector. Under these conditions, management expects similar year-over-year declines in revenue and adjusted EBITDA in Q2 as seen in Q1.

In operational developments, Lineage expects to deploy approximately $1 billion in capital related to new agreements signed with Tyson Foods. This includes an acquisition of four cold storage warehouses for $247 million and a multi-year warehousing agreement to design and build two automated warehouses, expected to yield an estimated annual EBITDA exceeding $100 million upon stabilization. The company anticipates breaking ground on the greenfield developments in the second half of 2025.

Lineage finished Q1 2025 with a total liquidity of $1.7 billion, which includes $197 million in cash and cash equivalents. The leverage ratio stands at 5.2 times, with net debt amounting to $6.7 billion.

Throughout the first quarter, the company continued its focus on operational efficiency, achieving a 2% reduction in same-store warehousing costs year-over-year, effectively offsetting some inflationary pressures in labor costs. The expectations for occupancy and operational performance remain cautiously optimistic, factoring in historical seasonal patterns for the second half of the year as market conditions stabilize.