Summary of Lineage's Update / Briefing (December 08, 2025) Company Overview - **Company**: Lineage (NasdaqGS:LINE) - **Industry**: Cold storage and logistics - **Key Metrics**: - Largest company in the cold storage industry - 3.1 billion cubic feet of warehousing capacity - Generated approximately $1.3 billion in EBITDA last year - Operates 488 facilities across 19 countries, totaling 86 million sq ft [3][4] Core Points and Arguments Warehouse Productivity Initiatives - Introduction of **LinOS**, a next-generation warehouse execution platform aimed at enhancing productivity and operational efficiency [1][2] - Labor expenses account for 60% of total operating expenses, with a focus on improving productivity as a key lever for cost control [4] - Lineage estimates it transports or stores about 30% of temperature-controlled food in the U.S. [4] Supply and Demand Dynamics - Public refrigerated warehouse supply grew by approximately 14.5% from 2021 to 2025, but is expected to slow to 1.5% in 2026 [6] - Demand for food categories stored in Lineage's warehouses grew cumulatively by 5% during the same period, despite high consumer price inflation [7] - Estimated excess capacity in the U.S. market is about 9.5%, with an average physical occupancy of 75% in 2025 [8] Competitive Landscape - New supply is concentrated in select U.S. markets, while European and Asia-Pacific markets are not experiencing similar pressures [9] - Anticipation of new competitors exiting the market due to high operational complexities and costs [11] Digital Transformation and Technology - Lineage has invested significantly in technology and digital enablement over the last decade, focusing on unifying data and modernizing systems [22] - LinOS serves as a real-time decision engine that optimizes labor dispatching, pallet routing, and dock allocation, leading to increased throughput [25][26] - The platform has shown a 30% lift in high-reach operator productivity and a 5% reduction in total labor costs across pilot sites [49][50] Value Creation Levers - Focus on customer excellence, capital allocation, and network effects as key drivers for shareholder value [14][59] - Anticipated annualized EBITDA impact of $110 million from LinOS initiatives over the next three to five years, with a projected 24% return on invested capital (ROIC) [65][74] Other Important Insights - Lineage's approach to continuous improvement through a lean operating system has resulted in over 50% reduction in employee turnover [17] - The company has implemented a stock ownership program to foster an owner mindset among employees [17] - The use of AI-driven controls for energy optimization is expected to lower operating costs significantly [24] - The company is strategically positioned with a diversified real estate portfolio, making it difficult for competitors to replicate its scale and efficiency [12][13] This summary encapsulates the key points discussed during the briefing, highlighting Lineage's strategic initiatives, market dynamics, and technological advancements aimed at enhancing productivity and shareholder value.

Core Insights - Americold Realty Trust reported an Adjusted Funds From Operations (AFFO) of $0.34 per share for Q1 2025, aligning with expectations and reflecting a 9.0% decrease from Q1 2024 [4][17] - The company completed the acquisition of a warehouse in Houston, which is expected to enhance its service capabilities for a significant new retail customer [2][4] - A 5% increase in quarterly dividends was announced, demonstrating confidence in the company's cash flow generation and resilience [2][4] Financial Performance - Total revenues for Q1 2025 were $629.0 million, a decrease of 5.4% from $665.0 million in Q1 2024, primarily due to lower volumes in the warehouse segment [7][13] - The company reported a net loss of $16.5 million, or $0.06 loss per diluted share, compared to a net income of $9.8 million, or $0.03 income per diluted share in Q1 2024 [15] - Core EBITDA for Q1 2025 was $147.6 million, down 5.3% from $155.8 million in Q1 2024, with a margin increase to 23.5% from 23.4% [16][7] Operational Metrics - Global Warehouse segment revenues decreased by 3.7% to $575.4 million, driven by lower volumes and throughput pallets [35][36] - Economic occupancy for the total warehouse segment was 74.7%, down 470 basis points compared to Q1 2024, influenced by high inventory levels in the prior year [39] - The company operates 238 facilities, with 224 in the same store population for Q1 2025 [40][43] Guidance and Outlook - The company adjusted its near-term outlook in response to macroeconomic headwinds but remains confident in long-term growth [4] - The updated guidance for warehouse segment same store revenue growth is projected at 2.0% - 4.0% for 2025 [9] - Adjusted FFO per share guidance for 2025 is revised to $1.51 - $1.59 [9]