Lineage, Inc.(US:LINE)2025-11-05 12:03Financial Performance - Total revenue increased by 3.1% to $1,377 million in Q3 2025[11] - GAAP net loss was $(112) million, or $(0.44) per diluted common share[11] - Adjusted EBITDA rose by 2.4% to $341 million, with an adjusted EBITDA margin decrease of 10 basis points to 24.8%[11] - AFFO increased by 6.3% to $221 million, while AFFO per share decreased by 5.6% to $0.85[11] - Net revenues for the three months ended September 30, 2025, were $1,377 million, a 3.1% increase from $1,335 million in the same period of 2024[23] - Net loss attributable to Lineage, Inc. for the three months ended September 30, 2025, was $100 million, compared to a net loss of $485 million in the same period of 2024[23] - Basic earnings per share for the three months ended September 30, 2025, were $(0.44), an improvement from $(2.44) in the prior year[23] - Comprehensive income attributable to Lineage, Inc. for the three months ended September 30, 2025, was $(136) million, compared to $(424) million in the same period of 2024[24] - The company reported a total operating income of $35 million for the three months ended September 30, 2025, compared to an operating loss of $515 million in the same period of 2024[23] - The net income (loss) before income taxes for the three months ended September 30, 2025, was $(101) million, an improvement from $(588) million in the same period of 2024[23] - The net income (loss) for the quarter ending September 30, 2025, is reported as a loss of $112 million[26] - For the nine months ended September 30, 2025, the company reported a net income loss of $119 million, an improvement from a loss of $671 million in the same period of 2024[28] Guidance and Outlook - Full-year 2025 adjusted EBITDA guidance revised to $1.290 to $1.305 billion, down from $1.290 to $1.340 billion[7] - Fourth quarter 2025 adjusted EBITDA expected to be between $319 to $334 million[7] - Occupancy is expected to continue increasing into Q4, but NOI outlook is lowered due to tariff uncertainty and lower US occupancy[5] Assets and Liabilities - Total assets as of September 30, 2025, were $19,197 million, compared to $18,661 million as of December 31, 2024[20] - Long-term debt increased to $5,925 million as of September 30, 2025, up from $4,906 million at the end of 2024[20] - As of September 30, 2025, the total equity balance is $9,378 million, with redeemable noncontrolling interests at $7 million[26] Operating Expenses - Total operating expenses decreased to $1,342 million for the three months ended September 30, 2025, down from $1,850 million in the prior year, reflecting a 27.4% reduction[23] - The cost of operations for the three months ended September 30, 2025, was $932 million, up from $897 million in the same period of 2024, indicating a 3.9% increase[23] - The company incurred acquisition, transaction, and other expenses of $12 million for the three months ended September 30, 2025, significantly lower than $592 million in the same period of 2024[23] Cash Flow and Investments - The company experienced a net cash provided by operating activities of $627 million for the nine months ended September 30, 2025, compared to $446 million in 2024[28] - The company reported a net cash used in investing activities of $899 million for the nine months ended September 30, 2025, compared to $536 million in 2024[28] Segment Performance - Total global warehousing segment revenues for the three months ended September 30, 2025, increased by 4.2% to $1,013 million, compared to $972 million in 2024[30] - The global warehousing segment's net operating income (NOI) for the three months ended September 30, 2025, was $384 million, a slight increase of 0.3% from $383 million in 2024[30] - The total global warehousing segment cost of operations for the three months ended September 30, 2025, rose by 6.8% to $629 million, up from $589 million in 2024[30] - The economic occupancy percentage for the global warehousing segment decreased to 80.3% in Q3 2025, down from 82.0% in Q3 2024, representing a decline of 170 basis points[30] - For the nine months ended September 30, 2025, total global warehousing segment revenues were $2,927 million, a marginal increase of 0.7% from $2,907 million in 2024[34] - The global warehousing segment's NOI for the nine months ended September 30, 2025, was $1,111 million, down 3.6% from $1,152 million in 2024[34] - The average economic occupancy for the nine months ended September 30, 2025, was 80.1%, a decrease of 270 basis points from 82.8% in 2024[34] Non-GAAP Measures - The company utilizes non-GAAP financial measures such as segment NOI, FFO, Core FFO, Adjusted FFO, EBITDA, and Adjusted EBITDA to evaluate performance and assist investors in understanding core operations[60] - Total segment NOI is calculated as total revenues minus operational costs, excluding depreciation and amortization, which helps assess segment performance[61] - EBITDAre is defined as earnings before interest, taxes, depreciation, and amortization, providing a measure of operating results unaffected by capital structure differences[62] - Adjusted EBITDA further excludes non-operating income and expenses, providing a clearer view of core business operations[63] - Funds from operations (FFO) is calculated by excluding extraordinary items and gains or losses from sales of real estate, facilitating performance comparisons[65] - Core FFO adjusts FFO for non-real estate items, offering a more stable measure of operating performance[66] - Adjusted FFO includes adjustments for deferred financing costs and maintenance capital expenditures, aiding in assessing capital investment capabilities[69] - The company emphasizes that FFO, Core FFO, and Adjusted FFO should be evaluated alongside GAAP net income for a comprehensive performance assessment[70] - Forward-looking guidance for certain financial data is not provided due to the unpredictable nature of reconciling items, which could significantly impact results[71]