Core Viewpoint - A lawsuit has been filed against Lineage, Inc. and its senior executives for potential violations of federal securities laws related to its IPO and subsequent financial performance [1][2]. Group 1: Lawsuit Details - Investors have until September 30, 2025, to request to lead the case, which is pending in the U.S. District Court for the Eastern District of Michigan [2]. - The lawsuit claims violations under Sections 11 and 15 of the Securities Act of 1933, concerning investors who purchased stock during Lineage's IPO on July 25, 2024 [2]. Group 2: Company Overview - Lineage, Inc. operates as a cold storage-focused real estate investment trust (REIT), owning and managing temperature-controlled storage facilities for perishable products [3]. Group 3: Allegations Against Lineage - The IPO documents claimed strong cash flows due to consistent cold chain demand, suggesting resilience during economic stress, while the reality was a downturn as customers destocked excess inventory from the pandemic [4]. - Following the IPO, Lineage's stock price fell from an initial $78 per share to approximately $40 per share, indicating a significant decline in market confidence [5].

Core Viewpoint - DJS Law Group is investigating Lineage, Inc. for potential violations of securities laws related to misleading information communicated to the market during its IPO in July 2024 [1] Group 1: Company Overview - Lineage, Inc. (NASDAQ: LINE) conducted its initial public offering in July 2024 [1] - The company has faced a decline in demand as clients adjusted their operations and reduced surplus stock due to changing consumer behavior [1] Group 2: Allegations and Issues - The investigation claims that Lineage communicated false and misleading information regarding its market position and demand [1] - Prior to the IPO, Lineage increased prices unsustainably and failed to effectively address demand issues through promotional efforts [1] - The company's disclosures during the class period were deemed false and significantly misleading, leading to shareholder losses once the truth was revealed [1]

Core Viewpoint - A securities class action lawsuit has been filed against Lineage, Inc. for alleged material misrepresentations in its IPO registration statement, impacting investors who purchased shares during the IPO [1][7]. Allegations Against Lineage, Inc. - The lawsuit claims that Lineage's Registration Statement for its IPO, effective on July 24, 2024, contained significant misrepresentations regarding the company's business state and industry trends [7]. - It is alleged that Lineage falsely claimed that COVID-19 had accelerated growth in cold storage demand, which would benefit the company in the long term [7]. - The company reportedly concealed ongoing business challenges, including: - Customers destocking inventory that was built during the pandemic [7]. - A market-wide shift towards maintaining leaner inventories [7]. - Increased overall cold storage supply affecting occupancy rates and pricing power, particularly due to unsustainable price hikes imposed by Lineage [7]. Impact on Investors - Investors have a legal deadline until September 30, 2025, to seek appointment as lead plaintiff in the case [3].

Group 1 - Lineage, Inc. reported $1.35 billion in revenue for the quarter ended June 2025, a year-over-year increase of 0.9% [1] - The EPS for the same period was $0.81, compared to -$0.46 a year ago, indicating a significant improvement [1] - The reported revenue exceeded the Zacks Consensus Estimate of $1.33 billion, resulting in a surprise of +1.47% [1] Group 2 - The company delivered an EPS surprise of +8%, with the consensus EPS estimate being $0.75 [1] - Lineage, Inc. shares returned +2.1% over the past month, outperforming the Zacks S&P 500 composite's +0.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3] Group 3 - In the Global Warehousing Segment, total revenues reached $970 million, surpassing the average estimate of $950.13 million [4] - The Global Integrated Solutions segment generated revenues of $380 million, exceeding the average estimate of $372.7 million [4] - The warehouse storage revenue was $514 million, compared to the four-analyst average estimate of $494.38 million [4]

Financial Data and Key Metrics Changes - The company reported an 8% growth in AFFO per share, while total revenue increased modestly by 1% and adjusted EBITDA decreased by 2% due to challenging market dynamics [8][9][28] - The annual AFFO per share guidance was reduced to a range of $3.2 to $3.4 from the previous range of $3.4 to $3.6 [9][16] - Adjusted EBITDA guidance was revised down to a range of $1,290 million to $1,340 million from $1,350 million to $1,400 million [16][17] Business Line Data and Key Metrics Changes - The Global Warehousing segment experienced a 4% decline in total NOI to $367 million, with same warehouse revenue down 3% [23] - The Global Integrated Solutions segment saw a 2% increase in revenue to $380 million and an 8% increase in NOI to $68 million, with an NOI margin improvement of 100 basis points to 17.9% [25] Market Data and Key Metrics Changes - Same warehouse NOI was down 6% year over year, reflecting elevated inventory levels from the previous year [9] - The company noted a sequential improvement in same store NOI from $336 million to $343 million during Q2 [9] Company Strategy and Development Direction - The company is focused on driving competitive differentiation through customer success, leveraging network effects, and enhancing warehouse productivity [19][20] - The rollout of the LINO F technology is expected to accelerate, with double-digit productivity improvements already observed [11][21] - The company aims to consolidate facilities in markets with excess capacity to drive higher occupancy and efficiency [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core business despite current market challenges, citing high food prices, interest rates, and tariff impacts as ongoing concerns [9][12] - The company anticipates a seasonal uplift in occupancy in the second half of the year, although it has adjusted expectations for the magnitude of this uplift [14][33] - Management emphasized the importance of internal initiatives and customer relationships in driving future growth [87][90] Other Important Information - The company completed a $500 million investment-grade bond offering, which has been well received by investors [11][27] - The company has deployed $535 million in growth capital, including agreements with Tyson Foods and smaller acquisitions [11] Q&A Session Summary Question: Why did the company not revise guidance earlier despite tracking well? - Management indicated that occupancy guidance changed due to a delay in typical seasonal uplift, which was observed later than usual [31][33] Question: What are the arguments for low occupancy and throughput? - Management noted that high food prices and value-seeking behavior from consumers are impacting inventory levels, which have been under pressure for years [35][36] Question: Can you provide updates on the LINOS pilot program? - Management reported double-digit productivity improvements across the six implemented LINOS sites, with plans for broader rollout [40][41] Question: What is driving the AFFO decline expected in Q3? - The decline is primarily attributed to maintenance CapEx seasonality, with expectations for increased occupancy and same store NOI [89][109] Question: How does the company view inventory levels going forward? - Management believes inventories are at a low point but does not expect significant improvement in the short term due to ongoing consumer pressures [82][84]

Financial Data and Key Metrics Changes - The company reported an 8% growth in AFFO per share, while total revenue increased modestly by 1% and adjusted EBITDA decreased by 2% due to challenging market dynamics [6][7][27] - The annual AFFO per share guidance was reduced to a range of $3.20 to $3.40, down from the previous range of $3.40 to $3.60 [7][14] - Adjusted EBITDA guidance for the full year was revised to a range of $1.29 billion to $1.34 billion, down from $1.35 billion to $1.40 billion [14][15] Business Line Data and Key Metrics Changes - The Global Warehousing segment experienced a 4% decline in total NOI to $367 million, with same warehouse revenue down 3% [22] - The Global Integrated Solutions segment saw a 2% increase in revenue to $380 million and an 8% increase in NOI to $68 million, with an NOI margin improvement of 100 basis points to 17.9% [24] Market Data and Key Metrics Changes - The company noted that same warehouse NOI was down 6% year over year due to elevated inventory levels experienced last year [7] - There was a sequential improvement in same store NOI from $336 million to $343 million, indicating a positive trend despite the seasonal challenges [7][8] Company Strategy and Development Direction - The company is focused on driving competitive differentiation through customer success, leveraging network effects, and enhancing warehouse productivity [18][19] - The rollout of the LINO F technology is expected to accelerate, with plans to complete 10 conversions by year-end, showing double-digit productivity improvements [9][20] - The company aims to strengthen its position as an industry leader by improving supply chain efficiency for customers and enhancing service through technology partnerships [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core business despite current market challenges, citing high food prices, interest rates, and tariff impacts as ongoing concerns [6][16] - The company anticipates a seasonal uplift in occupancy in the second half of the year, although it has adjusted expectations for the magnitude of this uplift [12][32] - Management emphasized the importance of internal initiatives and customer relationships in driving future growth, despite the current economic pressures [82][83] Other Important Information - The company completed a $500 million investment-grade bond offering, which has been well received by investors [9][25] - The company has a net debt of $7.4 billion and total liquidity of $1.5 billion, indicating a disciplined approach to capital deployment [25] Q&A Session Summary Question: Why was guidance reiterated at NAREIT and then revised down? - Management explained that occupancy guidance changed due to a delay in typical seasonal uplift, which was observed later than usual [30][32] Question: What are the arguments for low occupancy and throughput? - Management noted that high food prices and consumer behavior are impacting inventory levels, but they believe the industry is stabilizing [35][36] Question: Can you provide updates on the LINOS pilot? - Management confirmed that LINOS is exceeding expectations with double-digit productivity improvements across implemented sites [39][40] Question: What is the pricing strategy for storage? - Management stated that pricing levels remain stable, with a 5% sequential improvement in storage revenue per physical pallet [46][48] Question: What is the outlook for throughput and supply in the industry? - Management indicated that throughput is under pressure due to elevated inventory levels, but they expect a decrease in new supply coming online in 2026 [51][55] Question: What assumptions underpin the Q3 and Q4 guidance? - Management highlighted that occupancy expectations were adjusted, but they remain confident in productivity improvements and internal initiatives [58][60] Question: How conservative is the guidance for the back half of the year? - Management stated that the guidance reflects a prudent approach, with occupancy levels expected to improve sequentially [99][100]

Financial Performance - Total revenue increased by 09% to $1350 million[3] - Adjusted EBITDA decreased by 24% to $326 million[3] - Adjusted EBITDA margin decreased by 90 bps to 241%[3] - AFFO increased 551% to $211 million[3] - AFFO per share increased 80% to $081[3] - GAAP net loss of $(7) million, or $(003) per diluted common share[3] Guidance - Full-year 2025 adjusted EBITDA is now expected to be $129 to $134 billion, revised down from the prior guidance of $135 to $140 billion[5] - Adjusted FFO per share for full-year 2025 is expected to be $320 to $340, revised down from the prior guidance of $340 to $360[5] - Third-quarter 2025 adjusted EBITDA is expected to be $326 to $336 million[5] - Third-quarter 2025 AFFO per share is expected to be $075 to $079[5]

Financial Performance - Net revenues for the three months ended June 30, 2025, were $1,350 million, slightly up from $1,338 million in the same period of 2024, indicating a growth of 0.9%[18] - The company reported a net loss of $7 million for the three months ended June 30, 2025, compared to a net loss of $80 million in the same period of 2024, showing an improvement of 91.3%[18] - Comprehensive income attributable to Lineage, Inc. for the three months ended June 30, 2025, was $146 million, compared to a loss of $90 million in the same period of 2024[18] - The company reported a basic loss per share of $0.03 for the three months ended June 30, 2025, unchanged from the same period in 2024[18] - The company experienced a net loss attributable to common stockholders of $6 million for the three months ended June 30, 2025, compared to a net loss of $74 million for the same period in 2024[189] - The company reported a net loss before income taxes of $14 million for Q2 2025, an improvement from a net loss of $73 million in Q2 2024[195] Assets and Liabilities - Total assets increased to $19,444 million as of June 30, 2025, up from $18,661 million at December 31, 2024, representing a growth of 4.2%[16] - Total liabilities rose to $9,778 million as of June 30, 2025, compared to $8,967 million at December 31, 2024, marking an increase of 9.0%[16] - The company’s retained earnings showed a deficit of $2,103 million as of June 30, 2025, worsening from a deficit of $1,855 million at December 31, 2024[16] - The total stockholders' equity remained relatively stable at $8,637 million as of June 30, 2025, compared to $8,638 million at December 31, 2024[16] - As of June 30, 2025, total debt increased to $5,792 million from $4,976 million as of December 31, 2024, representing a 16.4% increase[109] Cash Flow and Investments - For the six months ended June 30, 2025, the net cash provided by operating activities was $397 million, compared to $260 million in the same period of 2024, representing a 52.7% increase[25] - The net cash used in investing activities increased to $718 million in 2025 from $398 million in 2024, reflecting a 80.4% increase[25] - The company acquired assets totaling $439 million during the six months ended June 30, 2025, compared to $73 million in 2024[25] - Cash paid for interest decreased to $153 million in 2025 from $319 million in 2024, indicating a 52% reduction[27] Stock-Based Compensation - Stock-based compensation increased to $6 million for the quarter ending June 30, 2024, up from $5 million in the previous quarter, representing a 20% increase[20] - The company reported stock-based compensation of $69 million for the six months ended June 30, 2025, compared to $11 million in 2024[25] - Stock-based compensation expense for the three months ended June 30, 2025, was $29 million, compared to $6 million in the same period in 2024[167] - The company granted 1,467,453 RSUs with an estimated expense of $81 million to be recognized over the vesting term during the three months ended June 30, 2025[155] Legal and Compliance - The Company believes it is in compliance with all OSHA regulations in all material respects, with no material unrecorded liabilities as of June 30, 2025[182] - The Company is subject to various legal claims, including a potential class action lawsuit related to the IPO, but believes the ultimate resolution will not have a material adverse effect on its financial statements[186] - The Company has not recorded any material liabilities arising from environmental matters as of June 30, 2025[180] Revenue Segments - Global Warehousing revenues for Q2 2025 were $970 million, slightly up from $966 million in Q2 2024, while total net revenues for the same period were $1,350 million compared to $1,338 million in Q2 2024, indicating a growth of 0.9%[195] - Global Integrated Solutions revenues reached $380 million in Q2 2025, up from $372 million in Q2 2024, contributing to a total of $728 million for the first half of 2025, compared to $731 million in the same period of 2024[195] Debt and Financing - The Company has an unsecured delayed-draw term loan facility with a borrowing capacity of up to $2,400 million, fully drawn on April 9, 2024[115] - The 5.25% Notes issued on June 17, 2025, amount to $500 million, with interest payable starting January 15, 2026[119] - Unsecured credit facilities increased from $2,772 million to $3,001 million from December 31, 2024, to June 30, 2025[109] - The total long-term debt, net, increased to $5,735 million as of June 30, 2025, from $4,906 million as of December 31, 2024[109] Other Financial Metrics - The company's effective tax rate for the three months ended June 30, 2025, was 50.0%, compared to (9.6%) for the same period in 2024[108] - The Company recorded a net gain of $13 million related to insurance reimbursement from the Kennewick warehouse fire, offsetting clean-up costs of $9 million for the three months ended June 30, 2025[183] - Foreign currency translation adjustments resulted in a gain of $184 million for the three months ended June 30, 2025, compared to a loss of $12 million for the same period in 2024[187]

Lineage, Inc. Reports Second-Quarter 2025 Financial Results NOVI, Mich. – August 6, 2025 – Lineage, Inc. (NASDAQ: LINE) (the "Company"), the world's largest global temperature- controlled warehouse REIT, today announced its financial results for the second quarter of 2025. Second-Quarter 2025 Financial Highlights "We delivered second-quarter results in line with our expectations," said Greg Lehmkuhl, president and chief executive officer of Lineage. "We achieved AFFO per share growth driven by our continued ...

Core Viewpoint - A class action lawsuit has been filed against Lineage, Inc. for allegedly misleading investors during its 2024 IPO, with claims that the company failed to disclose significant operational challenges and declining market conditions [1][2]. Group 1: Allegations Against Lineage, Inc. - The registration statement for the IPO filed on June 26, 2024, was claimed to be false and misleading, failing to disclose that Lineage was experiencing a decline in customer demand due to increased cold-storage supply and destocking of excess inventory from the COVID-19 pandemic [2]. - Lineage reportedly implemented unsustainable price increases prior to the IPO, which could not be maintained in the face of weakening demand [2]. - The company was unable to counteract adverse trends through operational efficiencies or competitive advantages, leading to stagnant or falling revenue, occupancy rates, and rent prices, contrary to the representations made in the registration statement [2]. Group 2: Stock Performance - Since the IPO, Lineage's stock price has dropped to approximately $40 per share, remaining significantly below the IPO price at the time of the complaint [3]. Group 3: Class Action Participation - Shareholders interested in serving as lead plaintiffs in the class action must submit their papers by September 30, 2025, although participation is not required to be eligible for recovery [4].