Earnings release
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NEWS RELEASE Lineage, Inc. Reports Third Quarter 2025 Financial Results 2025-11-05 NOVI, Mich.--(BUSINESS WIRE)-- Lineage, Inc. (NASDAQ: LINE) (the "Company"), the world’s largest global temperature-controlled warehouse REIT, today announced its nancial results for the third quarter of 2025. Third Quarter 2025 Financial Highlights Total revenue increased 3.1% to $1,377 million GAAP net loss of $(112) million, or $(0.44) per diluted common share Adjusted EBITDA increased 2.4% to $341 million; adjusted EBITDA margin decreased (10) bps to 24.8% AFFO increased 6.3% to $221 million; AFFO per share decreased (5.6)% to $0.85 Declared quarterly dividend of $0.5275 per share, representing annualized dividend rate of $2.11 per share "We delivered Adjusted EBITDA and AFFO growth in the third quarter, despite continued challenging market conditions," said Greg Lehmkuhl, president and chief executive o cer of Lineage. "We saw seasonal improvements in occupancy with stable pricing trends in line with our expectations. Importantly, we remain focused on delighting our customers with exceptional service as we continue to work to optimize our warehouse e ciency. "Occupancy is continuing to increase into the fourth quarter following the expected muted seasonal pattern. However, we are lowering our NOI outlook due to two primary factors. First, tari uncertainty is impacting import/export volumes. Second, while our total occupancy outlook for the fourth quarter is unchanged, we are seeing slightly lower occupancy in the US compared to our international markets. Due to our reduced fourth quarter NOI outlook, we are moving our full-year Adjusted EBITDA and AFFO per share guidance to the lower end of 1
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our previous ranges. “Looking forward, we are beginning to see some green shoots of optimism as new supply deliveries are declining and demand for frozen food is growing. While the near-term operating environment remains challenging, we remain well positioned to win in the long-term," concluded Lehmkuhl. Initiating Fourth Quarter and Updating Full-Year 2025 Guidance Lineage now expects full-year 2025 adjusted EBITDA of $1.290 to $1.305 billion (versus prior guidance of $1.290 to $1.340 billion) and Adjusted FFO ("AFFO") per share of $3.20 to $3.30 (versus prior guidance of $3.20 to $3.40). The Company expects fourth quarter 2025 adjusted EBITDA of $319 to $334 million and AFFO per share of $0.68 to $0.78. The Company's guidance excludes the impact of unannounced future acquisitions or developments. Please refer to Lineage's Earnings Presentation and Supplemental Information for additional details related to the Company's guidance. Third Quarter 2025 Financial Results Conference Call and Earnings Presentation with Supplemental Please visit ir.onelineage.com/events-and-presentations to view Lineage’s third quarter 2025 Earnings Presentation and Supplemental Information. Lineage will host a conference call and webcast today at 8:00 a.m. Eastern Time to discuss the company’s third quarter 2025 nancial results. Interested parties may listen by visiting the Lineage Investor Relations website at ir.onelineage.com. A replay of the webcast will be available for approximately one year on the Company's investor relations website. About Lineage Lineage, Inc. (NASDAQ: LINE) is the world’s largest global temperature-controlled warehouse REIT with a network of over 485 strategically located facilities totaling approximately 88 million square feet and approximately 3.1 billion cubic feet of capacity across countries in North America, Europe, and Asia-Paci c. Coupling end-to-end supply chain solutions and technology, Lineage partners with some of the world’s largest food and beverage producers, retailers, and distributors to help increase distribution e ciency, advance sustainability, minimize supply chain waste, and, most importantly, feed the world. Learn more at onelineage.com and join us on LinkedIn, Facebook, Instagram, 2
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and X. Forward-Looking Statements Certain statements contained in this Press Release, 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, estimates and projections about the industry and markets in which Lineage operates, and beliefs of, and assumptions made by, the Company and involve uncertainties that could signi cantly a ect Lineage’s nancial results. Such forward-looking statements generally can be identi ed by the use of forward-looking terminology such as “may,” “will,” “can,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” “possible,” “initiatives,” “measures,” “poised,” “focus,” “seek,” “objective,” “goal,” “vision,” “drive,” “opportunity,” “target,” “strategy,” “expect,” “plan,” “potential,” “potentially,” “preparing,” “projected,” “future,” “tomorrow,” “long-term,” “should,” “could,” “would,” “might,” “help,” “aimed,” or other similar words. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Press Release. Such statements include, but are not limited to statements about Lineage’s plans, strategies, initiatives, and prospects and statements about its future results of operations, capital expenditures and liquidity. Such statements are subject to known and unknown risks and uncertainties, which could cause actual results to di er materially from those projected or anticipated, including, without limitation: general business and economic conditions; continued volatility and uncertainty in the credit markets and broader nancial markets, including potential uctuations in the Consumer Price Index and changes in foreign currency exchange rates; the impact of tari s and global trade disruptions on us and our customers; other risks inherent in the real estate business, including customer defaults, potential liability related to environmental matters, illiquidity of real estate investments and potential damages from natural disasters; the availability of suitable acquisitions and our ability to acquire properties or businesses on favorable terms; our success in implementing our business strategy and our ability to identify, underwrite, nance, consummate, integrate and manage diversifying acquisitions or investments; our ability to meet budgeted or stabilized returns on our development and expansion projects within expected time frames, or at all; our ability to manage our expanded operations, including expansion into new markets or business lines; our failure to realize the intended bene ts from, or disruptions to our plans and operations or unknown or contingent liabilities related to, our recent and future acquisitions and green eld developments; our failure to successfully integrate and operate acquired or developed properties or businesses; our ability to renew signi cant customer contracts; the impact of supply chain disruptions, including the impact on labor availability, raw material availability, manufacturing and food production, and transportation; di culties managing an international business and acquiring or operating properties in foreign jurisdictions and unfamiliar metropolitan areas; changes in political conditions, geopolitical turmoil, political instability, civil disturbances, restrictive governmental actions or nationalization in the countries in which we operate; the degree and nature of our competition; our failure to generate su cient cash ows to service our outstanding indebtedness; our ability to access debt and equity capital 3
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markets; continued volatility in interest rates; increased power, labor, or construction costs; changes in consumer demand or preferences for products we store in our warehouses; decreased storage rates or increased vacancy rates; labor shortages or our inability to attract and retain talent; changes in, or the failure or inability to comply with, government regulation; a failure of our information technology systems, systems conversions and integrations, cybersecurity attacks or a breach of our information security systems, networks, or processes; our failure to maintain our status as a real estate investment trust (“REIT”) for U.S. federal income tax purposes; changes in local, state, federal, and international laws and regulations, including related to taxation, tari s, real estate and zoning laws, and increases in real property tax rates; the impact of any nancial, accounting, legal, tax or regulatory issues or litigation that may a ect us, and any other risks discussed in the Company’s lings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2024 led with the SEC. Should one or more of the risks or uncertainties described above occur, or should underlying assumptions prove incorrect, actual results and plans could di er materially from those expressed in any forward-looking statements. Forward- looking statements in this Press Release speak only as of the date of this Press Release, and undue reliance should not be placed on such statements. We undertake no obligation to, nor do we intend to, update, or otherwise revise, any such statements that may become untrue because of subsequent events. While the forward-looking statements are considered reasonable by the Company, they are subject to signi cant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of the Company and cannot be predicted with accuracy and may not be realized. There can be no assurance that the forward-looking statements can or will be attained or maintained. Actual operating results may vary materially from the forward-looking statements included in this Press Release. Availability of Information on Lineage's Website and Social Media Channels Investors and others should note that Lineage routinely announces material information to investors and the marketplace using U.S. Securities and Exchange Commission (SEC) lings, press releases, public conference calls, webcasts and the Lineage Investor Relations website. The Company uses these channels as well as social media channels (e.g., the Lineage LinkedIn account (linkedin.com/company/onelineage/); the Lineage Facebook account (facebook.com/lineagelogistics); the Lineage Instagram account (instagram.com/onelineage/); the Lineage X account (twitter.com/OneLineage)) as a means of disclosing information about the Company's business to our customers, colleagues, investors, and the public. While not all of the information that the Company posts to the Lineage Investor Relations website or on the Company's social media channels is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in Lineage to review the information that it shares at the Investor Relations link located at the top of the page on onelineage.com and on the Company's social media channels. Users may automatically receive email alerts and other information about the Company when enrolling an email address by visiting "Investor Email Alerts" in the 4
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"Resources" section of the Lineage Investor Relations website at ir.onelineage.com. The contents of these websites are not incorporated by reference into this Press Release or any report or document Lineage les with the SEC, and any references to the websites are intended to be inactive textual references only. LINEAGE, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except par values) September 30,December 31,2025 2024 (Unaudited)Assets Current assets:Cash, cash equivalents, and restricted cash$ 75$ 175Accounts receivable, net 857 826Inventories 167 187 Prepaid expenses and other current assets183 97 Total current assets 1,282 1,285Non-current assets:Property, plant, and equipment, net 11,254 10,627Finance lease right-of-use assets, net 1,113 1,254Operating lease right-of-use assets, net 615 627Equity method investments 131 124Goodwill 3,473 3,338Other intangible assets, net 1,116 1,127 Other assets 213 279 Total assets $ 19,197$ 18,661 Liabilities, Redeemable Noncontrolling Interests, and Equity Current liabilities:Accounts payable and accrued liabilities$ 1,050$ 1,220Accrued dividends and distributions 135 134Deferred revenue 84 83 Current portion of long-term debt, net 22 56 Total current liabilities 1,291 1,493Non-current liabilities:Long-term nance lease obligations 1,223 1,249Long-term operating lease obligations 598 605Deferred income tax liability 310 304Long-term debt, net 5,925 4,906 Other long-term liabilities 465 410 Total liabilities 9,812 8,967Commitments and contingenciesRedeemable noncontrolling interests 7 43Stockholders’ equity:Common stock, $0.01 par value per share – 500 authorized shares; 228 issued and outstandingat September 30, 2025 and December 31, 20242 2Additional paid-in capital - common stock10,821 10,764Retained earnings (accumulated de cit) (2,325) (1,855) Accumulated other comprehensive income (loss)(115) (273) Total stockholders’ equity 8,383 8,638 Noncontrolling interests 995 1,013 Total equity 9,378 9,651 Total liabilities, redeemable noncontrolling interests, and equity$ 19,197$ 18,661 LINEAGE, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (in millions, except per share amounts) Three Months Ended September 30,Nine Months Ended September 30,2025 2024 2025 2024 5
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(Unaudited) Net revenues $ 1,377$ 1,335$ 4,019$ 4,001 Cost of operations 932 897 2,728 2,672General and administrative expense145 143 442 394Depreciation expense 174 156 502 478Amortization expense 56 54 164 162Acquisition, transaction, and other expense12 592 64 612 Restructuring, impairment, and (gain) loss on disposals23 8 5 23 Total operating expense1,342 1,850 3,905 4,341 Income from operations35 (515) 114 (340) Other income (expense):Equity income (loss), net of tax(2) — (3) (3)Gain (loss) on foreign currency transactions, net(6) 14 36 5Interest expense, net (68) (82) (195) (369)Gain (loss) on extinguishment of debt(3) (6) (3) (13) Other nonoperating income (expense), net(57) 1 (56) 1 Total other income (expense), net(136) (73) (221) (379) Net income (loss) before income taxes(101) (588) (107) (719) Income tax expense (bene t)11 (45) 12 (48) Net income (loss) (112) (543) (119) (671)Less: Net income (loss) attributable to noncontrollinginterests (12) (58) (13) (78) Net income (loss) attributable to Lineage,Inc. $ (100) $ (485) (106) (593) Other comprehensive income (loss), net of tax:Unrealized gain (loss) on foreign currency hedges andinterest rate hedges (15) (46) (46) (56) Foreign currency translation adjustments(25) 115 223 29 Comprehensive income (loss)(152) (474) 58 (698)Less: Comprehensive income (loss) attributable tononcontrolling interests (16) (50) 6 (81) Comprehensive income (loss) attributableto Lineage, Inc. $ (136) $ (424) $ 52$ (617) Basic earnings (loss) per share$ (0.44) $ (2.44) $ (0.46) $ (3.54) Diluted earnings (loss) per share$ (0.44) $ (2.44) $ (0.46) $ (3.54) Weighted average common shares outstanding:Basic 228 210 228 178Diluted 228 210 228 178 LINEAGE, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY(Unaudited) Redeemablenoncontrollinginterests Common Stock Series Apreferredstock Retainedearnings(accumulatedde cit) Accumulatedothercomprehensiveincome (loss)NoncontrollinginterestsTotalequity (in millions, exceptper shareamounts) Numberofshares Amountat parvalue Additionalpaid-incapital Balance as ofDecember 31,2023 $ 349 162$ 2$ 5,961$ 1$ (879) $ (34) $ 622$5,673Distributions(1) — — — — — — (12) (12)Stock-basedcompensation— — — 3 — — — 2 5Othercomprehensiveincome (loss)— — — — — — (63) (8) (71)Redemption ofredeemablenoncontrollinginterests (6) — — — — — — — —Redemption ofcommon stock— — — (25) — — — — (25)Expiration ofredemptionoption (92) — — 65 — — — 27 92Redeemablenoncontrollinginterestredemptionvalueadjustment6 — — (6) — — — — (6)Ni 6
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Net income(loss) — — — — — (40) — (8) (48)Reallocation ofnoncontrollinginterests — — — (7) — — — 7 — Balance as ofMarch 31, 2024256 162 2 5,991 1 (919) (97) 6305,608Common stockissuances, netof equity raisecosts — — — 1 — — — — 1Distributions— — — — — — — (12) (12)Stock-basedcompensation— — — 4 — — — 2 6Othercomprehensiveincome (loss)— — — — — — (22) (3) (25)Redeemablenoncontrollinginterestredemptionvalueadjustment4 — — (4) — — — — (4)Accretion ofredeemablenoncontrollinginterests 2 — — (2) — — — — (2)Net income(loss) — — — — — (68) — (12) (80)Reallocation ofnoncontrollinginterests — — — (9) — — — 9 — Balance as of June30, 2024 262 162 2 5,981 1 (987) (119) 6145,492Common stockissuances, netof equity raisecosts — 65 — 4,873 — — — — 4,873Assumption ofthe Put Optionliability — — — — — (103) — — (103)Dividends($0.38 percommon share)and otherdistributions($0.38 per OPUnit and OPEU)— — — — — (87) — (13) (100)Stock-basedcompensation— 2 — 147 — — — 13 160Withholding ofcommon stockfor employeetaxes — (1) — (46) — — — — (46)Othercomprehensiveincome (loss)— — — — — — 61 8 69Conversion ofManagementPro ts InterestsClass C units— — — (61) — — — 61 —Redemption ofpreferredshares andOPEUs — — — (46) (1) — — (29) (76)Reimbursementof AdvanceDistributions— — — — — — — 198 198Reclassi cationof thePreferenceShares (229) — — (22) — — — — (22)Issuance ofOPEUs andsettlement ofClass D Units— — — 114 — — — 73 187Redeemablenoncontrollinginterestredemptionvalueadjustment4 — — (4) — — — — (4)Accretion ofredeemablenoncontrollinginterests 3 — — (3) — — — — (3)Ni 7
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Net income(loss) (1) — — — — (485) — (57) (542)Reallocation ofnoncontrollinginterests — — — (189) — — — 189 — Balance as ofSeptember 30,2024 $ 39 228$ 2$10,744$ —$ (1,662) $ (58) $ 1,057$10,083 LINEAGE, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY(Unaudited) Redeemablenoncontrollinginterests Common StockRetainedearnings(accumulatedde cit) Accumulatedothercomprehensiveincome (loss)NoncontrollinginterestsTotalequity(in millions, except pershare amounts) Numberofshares Amountat parvalue Additionalpaid-incapital Balance as of December 31,2024 $ 43 228$ 2$10,764$ (1,855) $ (273) $ 1,013$9,651Dividends ($0.53 percommon share) andother distributions($0.53 per OP Unit andOPEU) — — — — (121) — (14) (135)Stock-basedcompensation— — — 19 — — 21 40Other comprehensiveincome (loss) — — — — — 42 5 47Redeemablenoncontrolling interestredemption valueadjustment (2) — — 2 — — — 2Net income (loss)— — — — — — — —Reallocation ofnoncontrolling interests— — — 6 — — (6) — Balance as of March 31,2025 41 228 2 10,791(1,976) (231) 1,0199,605Dividends ($0.53 percommon share) andother distributions($0.53 per OP Unit andOPEU) — — — — (121) — (13) (134)Stock-basedcompensation— 1 — 22 — — 7 29Withholding of commonstock for employeetaxes — — — (10) — — — (10)Other comprehensiveincome (loss) — — — — — 152 18 170Redemption ofredeemablenoncontrolling interests(28) — — — — — — —Expiration ofredemption option(6) — — — — — 6 6Net income (loss)— — — — (6) — (1) (7)Reallocation ofnoncontrolling interests— — — 7 — — (7) — OP Units reclassi cation— — — 7 — — (7) — Balance as of June 30, 20257 229 2 10,817(2,103) (79) 1,0229,659Dividends ($0.53 percommon share) andother distributions($0.53 per OP Unit andOPEU) — — — — (122) — (15) (137)Stock-basedcompensation— — — 21 — — 17 38Withholding of commonstock for employeetaxes — — — (2) — — — (2)Other comprehensiveincome (loss) — — — — — (36) (4) (40)Redemption of commonstock — (1) — (28) — — — (28)Net income (loss)— — — — (100) — (12) (112)Reallocation ofnoncontrolling interests— — — 10 — — (10) — OP Units reclassi cation— — — 3 — — (3) — Bl fS b 8
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Balance as of September30, 2025 $ 7 228$ 2$10,821$ (2,325) $ (115) $ 995$9,378 LINEAGE, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Nine Months Ended September 30,2025 2024 (Unaudited)Cash ows from operating activities: Net income (loss) $ (119) $ (671)Adjustments to reconcile net income (loss) to net cash provided by operating activities:Provision for credit losses 5 3Impairment of long-lived assets, goodwill, and other intangible assets31 33Gain on insurance recovery (51) (29)Depreciation and amortization 666 640(Gain) loss on extinguishment of debt, net3 13Amortization of deferred nancing costs, discount, and above/below market debt8 16Stock-based compensation 107 171(Gain) loss on foreign currency transactions, net(36) (5)Deferred income tax (13) (71)Put Options fair value adjustment 30 —(Gain) loss on divestitures, net 58 —Vesting of Class D interests — 185One-time Internalization expense to Bay Grove— 200Other operating activities 6 15Changes in operating assets and liabilities (excluding e ects of acquisitions):Accounts receivable (36) 17Prepaid expenses, other assets, and other long-term liabilities(28) (26)Inventories 20 (4)Accounts payable and accrued liabilities and deferred revenue(24) (51) Right-of-use assets and lease obligations— 10 Net cash provided by operating activities627 446 Cash ows from investing activities: Acquisitions, net of cash acquired (441) (113)Purchase of property, plant, and equipment(509) (486)Proceeds from sale of assets 10 6Proceeds from insurance recovery on impaired long-lived assets49 50Investments in Emergent Cold LatAm Holdings, LLC(9) (13)Proceeds from repayment of notes by related parties— 15 Other investing activity 1 5 Net cash used in investing activities (899) (536) Cash ows from nancing activities: Dividends and other distributions (402) (138)Redemption of redeemable noncontrolling interests(28) (6)Repurchase of common shares for employee income taxes on stock-based compensation(12) (46)Redemption of common stock pursuant to Put Option exercise(28) —Financing fees (5) (45)Proceeds from long-term debt, net of discount495 2,481Repayments of long-term debt and nance leases(190) (7,087)Payment of deferred and contingent consideration liabilities(6) (46)Borrowings on revolving line of credit 2,258 3,804Repayments on revolving line of credit (1,854) (3,264)Settlement of Put Option liability (50) —Issuance of common stock in IPO, net of equity raise costs— 4,879Redemption of units issued as stock compensation— (2)Redemption of common stock — (25)Redemption of OPEUs — (75) Other nancing activity (6) (2) Net cash provided by nancing activities172 428 Impact of foreign exchange rates on cash, cash equivalents, and restricted cash— 3 Net increase (decrease) in cash, cash equivalents, and restricted cash(100) 341 Cash, cash equivalents, and restricted cash at the beginning of the period175 71 Cash, cash equivalents, and restricted cash at the end of the period$ 75$ 412 Global Warehousing Segment 9
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The following table presents the operating results of our global warehousing segment for the three months ended September 30, 2025 and 2024. Three Months Ended September 30,2025 2024 Change (in millions except revenue per pallet) Warehouse storage $ 518$ 508 2.0% Warehouse services 495 464 6.7% Total global warehousing segment revenues1,013 972 4.2% Labor 385 352 9.4%Power 62 58 6.9% Other warehouse costs 182 179 1.7% Total global warehousing segment cost of operations629 589 6.8% Global warehousing segment NOI$ 384$ 383 0.3% Total global warehousing segment margin37.9% 39.4% (150) bpsNumber of warehouse sites 481 468 Warehouse storage Average economic occupancyAverage occupied economic pallets (in thousands)8,194 8,078 1.4%Economic occupancy percentage 80.3% 82.0% (170) bpsStorage revenue per economic occupied pallet$ 63.25$ 62.85 0.6%Average physical occupancyAverage physical occupied pallets (in thousands)7,521 7,431 1.2%Average physical pallet positions (in thousands)10,205 9,849 3.6%Physical occupancy percentage 73.7% 75.4% (170) bpsStorage revenue per physical occupied pallet$ 68.91$ 68.32 0.9% Warehouse services Throughput pallets (in thousands) 14,137 13,188 7.2%Warehouse services revenue per throughput pallet$ 32.21$ 32.21 —% ____________________(1)Labor cost of operations excludes $2 million and $1 million of stock-based compensation expense and related employer-paid payroll taxes for thethree months ended September 30, 2025 and 2024, respectively.(2)Includes real estate rent expense (operating leases) of $23 million and $25 million for the three months ended September 30, 2025 and 2024,respectively, and non-real estate rent expense (equipment lease and rentals) of $4 million and $3 million for the three months ended September30, 2025 and 2024, respectively.(3)Warehouse storage and warehouse services metrics exclude facilities owned or leased by the customer for which we manage the warehouseoperations on their behalf (“managed sites”). Global Warehousing Segment The following table presents the operating results of our global warehousing segment for the nine months ended September 30, 2025 and 2024. Nine Months Ended September 30,2025 2024 Change (in millions except revenue per pallet) Wh $ 1523$ 1534 (07)% (1) (2) (3) (3) 10
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Warehouse storage $ 1,523$ 1,534 (0.7)% Warehouse services 1,404 1,373 2.3% Total global warehousing segment revenues2,927 2,9070.7% Labor 1,109 1,062 4.4%Power 162 155 4.5% Other warehouse costs 545 538 1.3% Total global warehousing segment cost of operations1,816 1,7553.5% Global warehousing segment NOI$ 1,111$ 1,152(3.6)% Total global warehousing segment margin38.0% 39.6% (160) bpsNumber of warehouse sites 481 468 Warehouse storage Average economic occupancyAverage occupied economic pallets (in thousands)8,083 8,121 (0.5)%Economic occupancy percentage 80.1% 82.8% (270) bpsStorage revenue per economic occupied pallet$ 188.29$ 188.87(0.3)%Average physical occupancyAverage physical occupied pallets (in thousands)7,479 7,504 (0.3)%Average physical pallet positions (in thousands)10,086 9,803 2.9%Physical occupancy percentage 74.2% 76.5% (230) bpsStorage revenue per physical occupied pallet$ 203.49$ 204.39(0.4)% Warehouse services Throughput pallets (in thousands) 40,251 39,239 2.6%Warehouse services revenue per throughput pallet$ 31.98$ 32.08 (0.3)% ____________________(1)Labor cost of operations excludes $6 million and $1 million of stock-based compensation expense and related employer-paid payroll taxes for thenine months ended September 30, 2025 and 2024, respectively.(2)Includes real estate rent expense (operating leases) of $69 million and $75 million for the nine months ended September 30, 2025 and 2024,respectively, and non-real estate rent expense (equipment lease and rentals) of $14 million and $12 million for the nine months ended September30, 2025 and 2024, respectively.(3)Warehouse storage and warehouse services metrics exclude managed sites. Same Warehouse Results The following tables present revenues, cost of operations, same warehouse NOI, and margins for our same warehouses for the three and nine months ended September 30, 2025 and 2024. Three Months Ended September 30,2025 2024 Change (in millions except revenue per pallet) Warehouse storage $ 470$ 474 (0.8)% Warehouse services 422 436 (3.2)% Total same warehouse revenues892 910 (2.0)% Labor 332 330 0.6%Power 54 54 —% Other warehouse costs 155 162 (4.3)% Total same warehouse cost of operations541 546 (0.9)% Same warehouse NOI $ 351$ 364 (3.6)% Total same warehouse margin 39.3% 40.0% (70) bpsNumber of same warehouse sites 418 418 Warehouse storage Economic occupancyAverage occupied economic pallets (in thousands)7,372 7,501 (1.7)%Economic occupancy percentage 82.3% 83.1% (80) bpsStorage revenue per economic occupied pallet$ 63.76$ 63.20 0.9%Physical occupancyAverage physical occupied pallets (in thousands)6,738 6,893 (2.2)%A hi l ll ii (ih d) 8961 9029 (08)% (1) (2) (3) (3) (1) 11
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Average physical pallet positions (in thousands)8,961 9,029 (0.8)%Physical occupancy percentage 75.2% 76.3% (110) bpsStorage revenue per physical occupied pallet$ 69.76$ 68.78 1.4% Warehouse services Throughput pallets (in thousands) 12,066 12,310(2.0)%Warehouse services revenue per throughput pallet$ 31.66$ 32.13 (1.5)% ____________________(1)Warehouse storage and warehouse services metrics exclude managed sites. Nine Months Ended September 30,2025 2024 Change (in millions except revenue per pallet) Warehouse storage $ 1,381$ 1,426 (3.2)% Warehouse services 1,253 1,288 (2.7)% Total same warehouse revenues2,634 2,714(2.9)% Labor 989 996 (0.7)%Power 143 143 —% Other warehouse costs 477 487 (2.1)% Total same warehouse cost of operations1,609 1,626(1.0)% Same warehouse NOI $ 1,025$ 1,088(5.8)% Total same warehouse margin 38.9% 40.1% (120) bpsNumber of same warehouse sites 418 418 Warehouse storage Economic occupancyAverage occupied economic pallets (in thousands)7,342 7,537 (2.6)%Economic occupancy percentage 81.8% 83.3% (150) bpsStorage revenue per economic occupied pallet$ 187.97$ 189.20(0.7)%Physical occupancyAverage physical occupied pallets (in thousands)6,781 6,954 (2.5)%Average physical pallet positions (in thousands)8,980 9,043 (0.7)%Physical occupancy percentage 75.5% 76.9% (140) bpsStorage revenue per physical occupied pallet$ 203.54$ 205.05(0.7)% Warehouse services Throughput pallets (in thousands) 35,910 36,649(2.0)%Warehouse services revenue per throughput pallet$ 31.73$ 32.02 (0.9)% ____________________(1)Warehouse storage and warehouse services metrics exclude managed sites. Non-Same Warehouse Results The following tables present revenues, cost of operations, non-same warehouse NOI, and margins for our non- same warehouses for the three and nine months ended September 30, 2025 and 2024. (1) (1) (1) 12
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Three Months Ended September 30,2025 2024 Change (in millions except revenue per pallet) Warehouse storage $ 48$ 34 41.2% Warehouse services 73 28 160.7% Total non-same warehouse revenues121 62 95.2% Labor 53 22 140.9%Power 8 4 100.0% Other warehouse costs 27 17 58.8% Total non-same warehouse cost of operations88 43 104.7% Non-same warehouse NOI$ 33$ 19 73.7% Total non-same warehouse margin 27.3% 30.6% (330) bpsNumber of non-same warehouse sites63 50 Warehouse storage Economic occupancyAverage occupied economic pallets (in thousands)822 577 42.5%Economic occupancy percentage 66.1% 70.4% (430) bpsStorage revenue per economic occupied pallet$ 58.61$ 58.31 0.5%Physical occupancyAverage physical occupied pallets (in thousands)783 538 45.5%Average physical pallet positions (in thousands)1,244 820 51.7%Physical occupancy percentage 62.9% 65.6% (270) bpsStorage revenue per physical occupied pallet$ 61.52$ 62.51 (1.6)% Warehouse services Throughput pallets (in thousands) 2,071 878 135.9%Warehouse services revenue per throughput pallet$ 35.39$ 33.40 6.0% ____________________(1)Warehouse storage and warehouse services metrics exclude managed sites. Nine Months Ended September 30,2025 2024 Change (in millions except revenue per pallet) Warehouse storage $ 142$ 108 31.5% Warehouse services 151 85 77.6% Total non-same warehouse revenues293 193 51.8% Labor 120 66 81.8%Power 19 12 58.3% Other warehouse costs 68 51 33.3% Total non-same warehouse cost of operations207 129 60.5% Non-same warehouse NOI$ 86$ 64 34.4% Total non-same warehouse margin 29.4% 33.2% (380) bpsNumber of non-same warehouse sites63 50 Warehouse storage Economic occupancyAverage occupied economic pallets (in thousands)741 584 26.9%Economic occupancy percentage 67.0% 76.8% (980) bpsStorage revenue per economic occupied pallet$ 191.67$ 184.64 3.8%Physical occupancyAverage physical occupied pallets (in thousands)698 550 26.9%Average physical pallet positions (in thousands)1,106 760 45.5%Physical occupancy percentage 63.1% 72.4% (930) bpsStorage revenue per physical occupied pallet$ 203.74$ 196.18 3.9% Warehouse services Throughput pallets (in thousands) 4,341 2,590 67.6%Warehouse services revenue per throughput pallet$ 34.02$ 32.83 3.6% (1) (1) (1) (1) 13
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____________________(1)Warehouse storage and warehouse services metrics exclude managed sites. Global Integrated Solutions Segment The following tables present the operating results of our global integrated solutions segment for the three and nine months ended September 30, 2025 and 2024. Three Months Ended September 30,2025 2024 Change (in millions) Global Integrated Solutions segment revenues$ 364$ 363 0.3% Global Integrated Solutions segment cost of operations299 307 (2.6)% Global Integrated Solutions segment NOI$ 65$ 56 16.1% Global Integrated Solutions margin 17.9% 15.4% 250bps ____________________(1)Cost of operations excludes $2 million and less than $1 million of stock-based compensation expense and related employer-paid payroll taxes forthe three months ended September 30, 2025 and 2024, respectively. Nine Months Ended September 30,2025 2024 Change (in millions) Global Integrated Solutions segment revenues$ 1,092$ 1,094 (0.2)% Global Integrated Solutions segment cost of operations902 916 (1.5)% Global Integrated Solutions segment NOI$ 190$ 178 6.7% Global Integrated Solutions margin 17.4% 16.3% 110bps ____________________(1)Cost of operations excludes $4 million and less than $1 million of stock-based compensation expense and related employer-paid payroll taxes forthe nine months ended September 30, 2025 and 2024, respectively. Capital Expenditures Maintenance Capital Expenditures (1) (1) 14
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The following table sets forth our recurring maintenance capital expenditures. Three Months Ended September 30,Nine Months Ended September 30,2025 2024 2025 2024 (in millions)Global warehousing $ 35$ 38$ 99$ 92Global integrated solutions 6 1 11 10 Information technology and other2 6 7 21 Maintenance capital expenditures$ 43$ 45$ 117$ 123 Integration Capital Expenditures The following table sets forth our integration capital expenditures. Three Months Ended September 30,Nine Months Ended September 30,2025 2024 2025 2024 (in millions)Global warehousing $ 19$ 14$ 42$ 32Global integrated solutions 1 — 1 1 Information technology and other4 5 11 18 Integration capital expenditures$ 24$ 19$ 54$ 51 External Growth Capital Investments The following table sets forth our external growth capital investments. Three Months Ended September 30,Nine Months Ended September 30,2025 2024 2025 2024 (in millions)Acquisitions, including equity issued and net of cashacquired and adjustments$ 2 $ 40$ 441$ 113Green eld and expansion expenditures92 66 182 197Energy and economic return initiatives16 24 57 71Information technology transformation and growthinitiatives 17 23 49 50 External growth capital investments$ 127$ 153$ 729$ 431 (1) 15
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____________________(1)Excludes buildings and land acquired through exercise of nance lease purchase options, where amount paid did not exceed the nance leaseliability. Non-GAAP Financial Measures Reconciliations Reconciliation of Total Segment NOI to Net Income (Loss)Three Months Ended September 30,Nine Months Ended September 30, (in millions) 2025 2024 2025 2024 Net income (loss) $ (112) $ (543) $ (119) $ (671)Stock-based compensation expense and relatedemployer-paid payroll taxes in cost of operations4 1 10 1General and administrative expense145 143 442 394Depreciation expense 174 156 502 478Amortization expense 56 54 164 162Acquisition, transaction, and other expense12 592 64 612Restructuring, impairment, and (gain) loss on disposals23 8 5 23Equity (income) loss, net of tax2 — 3 3(Gain) loss on foreign currency transactions, net6 (14) (36) (5)Interest expense, net 68 82 195 369(Gain) loss on extinguishment of debt3 6 3 13Other nonoperating (income) expense, net57 (1) 56 (1) Income tax expense (bene t)11 (45) 12 (48) Total segment NOI $ 449$ 439$ 1,301$ 1,330 Reconciliation of EBITDA, EBITDAre, and Adjusted EBITDA to Net Income (Loss)Three Months Ended September 30,Nine Months Ended September 30, (in millions) 2025 2024 2025 2024 Net income (loss) $ (112) $ (543) $ (119) $ (671)Adjustments:Depreciation and amortization expense230 210 666 640Interest expense, net 68 82 195 369 Income tax expense (bene t)11 (45) 12 (48) EBITDA $ 197$ (296) $ 754$ 290Adjustments:Net loss (gain) on sale of real estate assets— 2 3 5Impairment of real estate assets— 4 — 9 Allocation of EBITDAre of noncontrolling interests1 (1) — (2) EBITDAre $ 198$ (291) $ 757$ 302Adjustments:Net (gain) loss on sale of non-real estate assets(1) — (3) (2)Other nonoperating (income) expense, net57 (1) 56 (1)Acquisition, restructuring, and other14 470 79 496Technology transformation5 5 17 15(Gain) loss on property destruction(10) (5) (47) (4)(Gain) loss on foreign currency transactions, net6 (14) (36) (5)Stock-based compensation expense and relatedemployer-paid payroll taxes38 160 108 171(Gain) loss on extinguishment of debt3 6 3 13Non-real estate impairment1 — 2 —Impairment of goodwill and other intangible assets29 — 29 —Allocation related to unconsolidated JVs2 4 7 9 Allocation adjustments of noncontrolling interests(1) (1) (1) — Adjusted EBITDA $ 341$ 333$ 971$ 994 Net revenues $ 1,377$ 1,335$ 4,019$ 4,001Adjusted EBITDA margin 24.8% 24.9% 24.2% 24.8% 16
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Reconciliation of FFO, Core FFO, and Adjusted FFO to Net Income (Loss)Three Months Ended September 30,Nine Months Ended September 30, (in millions, except per share information)2025 2024 2025 2024 Net income (loss) $ (112) $ (543) $ (119) $ (671)Adjustments:Real estate depreciation 97 89 276 265In-place lease intangible amortization2 1 4 6Net loss (gain) on sale of real estate assets— 2 3 5Impairment of real estate assets— 4 — 9Real estate depreciation, (gain) loss on sale of realestate and real estate impairments on unconsolidatedJVs 1 1 2 2 Allocation of noncontrolling interests1 — 1 (1) FFO $ (11) $ (446) $ 167$ (385)Adjustments:Net (gain) loss on sale of non-real estate assets(1) — (3) (2)Finance lease ROU asset amortization - real estate17 17 53 53Non-real estate impairment1 — 2 —Impairment of goodwill and other intangible assets29 — 29 —Other nonoperating (income) expense, net57 (1) 56 (1)Acquisition, restructuring, and other18 473 90 500Technology transformation 5 5 17 15(Gain) loss on property destruction(10) (5) (47) (4)(Gain) loss on foreign currency transactions, net6 (14) (36) (5) (Gain) loss on extinguishment of debt3 6 3 13 Core FFO $ 114$ 35$ 331$ 184Adjustments:Non-real estate depreciation and amortization105 93 308 294Finance lease ROU asset amortization - non-real estate9 8 25 21Amortization of deferred nancing costs, discount, andabove/below market debt 3 6 8 17Deferred income taxes expense (bene t)(4) (47) (13) (71)Straight line net operating rent— (1) — (3)Amortization of above / below market leases— — — (1)Stock-based compensation expense and relatedemployer-paid payroll taxes38 160 108 171Recurring maintenance capital expenditures(43) (45) (117) (123)Allocation related to unconsolidated JVs— 1 2 4 Allocation of noncontrolling interests(1) (2) (1) (1) Adjusted FFO $ 221$ 208$ 651$ 492 Reconciliation of weighted average common shares outstanding: Weighted average common shares outstanding228 210 228 178Partnership common units and OP Units held by Non-Company LPs 22 21 22 20 Equity compensation and other units8 1 8 2 Adjusted diluted weighted average common sharesoutstanding 258 232 258 200 Adjusted FFO per diluted common share$ 0.85$ 0.90$ 2.52$ 2.46 Non-GAAP Financial Measures Notes We use the following non-GAAP nancial measures as supplemental performance measures of our business: segment NOI, FFO, Core FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA, and Adjusted EBITDA margin. We also use same warehouse and non-same warehouse metrics described above. We calculate total segment NOI (or “NOI”) as our total revenues less our cost of operations (excluding any depreciation and amortization, general and administrative expense, stock-based compensation expense and related employer-paid payroll taxes from grants under our equity incentive plans, restructuring and impairment expense, gain and loss on sale of assets, and acquisition, transaction, and other expense). We use segment NOI to evaluate our segments for purposes of making operating decisions and assessing performance in accordance with ASC 280, Segment Reporting. We believe segment NOI is helpful to investors as a supplemental performance 17
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measure to net income because it assists both investors and management in understanding the core operations of our business. There is no industry de nition of segment NOI and, as a result, other REITs may calculate segment NOI or other similarly-captioned metrics in a manner di erent than we do. We calculate EBITDA for Real Estate, or “EBITDAre”, in accordance with the standards established by the Board of Governors of the National Association of Real Estate Investment Trusts, or “NAREIT”, de ned as earnings before interest income or expense, taxes, depreciation and amortization, net loss or gain on sale of real estate, net of withholding taxes, impairment write-downs on real estate property, and adjustments to re ect our share of EBITDAre for partially owned entities. EBITDAre is a measure commonly used in our industry, and we present EBITDAre to enhance investor understanding of our operating performance. We believe that EBITDAre provides investors and analysts with a measure of operating results una ected by di erences in capital structures, capital investment cycles, and useful life of related assets among otherwise comparable companies. We also calculate our Adjusted EBITDA as EBITDAre further adjusted for the e ects of gain or loss on the sale of non-real estate assets, gain or loss on the destruction of property (net of insurance proceeds), other nonoperating income or expense, acquisition, restructuring, and other expense, foreign currency exchange gain or loss, stock- based compensation expense and related employer-paid payroll taxes from grants under our equity incentive plans, loss or gain on debt extinguishment and modi cation, non-real estate impairments, technology transformation, and reduction in EBITDAre from partially owned entities. We believe that the presentation of Adjusted EBITDA provides a measurement of our operations that is meaningful to investors because it excludes the e ects of certain items that are otherwise included in EBITDAre but which we do not believe are indicative of our core business operations. EBITDAre and Adjusted EBITDA are not measurements of nancial performance under GAAP, and our EBITDAre and Adjusted EBITDA may not be comparable to similarly titled measures of other companies. You should not consider our EBITDAre and Adjusted EBITDA as alternatives to net income or cash ows from operating activities determined in accordance with GAAP. Our calculations of EBITDAre and Adjusted EBITDA have limitations as analytical tools, including the following: these measures do not re ect our historical or future cash requirements for maintenance capital expenditures or growth and expansion capital expenditures; these measures do not re ect changes in, or cash requirements for, our working capital needs; these measures do not re ect the interest expense, or the cash requirements necessary to service interest or principal payments, on our indebtedness; these measures do not re ect our tax expense or the cash requirements to pay our taxes; and although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and these measures do not re ect any cash requirements for such replacements. 18
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We use EBITDA, EBITDAre, and Adjusted EBITDA as measures of our operating performance and not as measures of liquidity. We also calculate Adjusted EBITDA margin, which represents Adjusted EBITDA as a percentage of Net revenues and which provides an additional way to compare the above described measure of our operations across periods. We calculate funds from operations, or FFO, in accordance with the standards established by the Board of Governors of the NAREIT. NAREIT de nes FFO as net income or loss determined in accordance with GAAP, excluding extraordinary items as de ned under GAAP and gains or losses from sales of previously depreciated operating real estate assets, plus speci ed non-cash items, such as real estate asset depreciation and amortization, in-place lease intangible amortization, real estate asset impairment, and our share of reconciling items for partially owned entities. We believe that FFO is helpful to investors as a supplemental performance measure because it excludes the e ect of depreciation, amortization, and gains or losses from sales of real estate, all of which are based on historical costs, which implicitly assumes that the value of real estate diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, FFO can facilitate comparisons of operating performance between periods and among other equity REITs. We calculate core funds from operations, or Core FFO, as FFO adjusted for the e ects of gain or loss on the sale of non-real estate assets, gain or loss on the destruction of property (net of insurance proceeds), nance lease ROU asset amortization real estate, non-real estate impairments, acquisition, restructuring and other, other nonoperating income or expense, loss on debt extinguishment and modi cations and the e ects of gain or loss on foreign currency exchange. We also adjust for the impact attributable to non-real estate impairments on unconsolidated joint ventures and natural disaster. We believe that Core FFO is helpful to investors as a supplemental performance measure because it excludes the e ects of certain items which can create signi cant earnings volatility, but which do not directly relate to our core business operations. We believe Core FFO can facilitate comparisons of operating performance between periods, while also providing a more meaningful predictor of future earnings potential. However, because FFO and Core FFO add back real estate depreciation and amortization and do not capture the level of recurring maintenance capital expenditures necessary to maintain the operating performance of our properties, both of which have material economic impacts on our results from operations, we believe the utility of FFO and Core FFO as a measure of our performance may be limited. We calculate adjusted funds from operations, or Adjusted FFO, as Core FFO adjusted for the e ects of amortization of deferred nancing costs, amortization of debt discount/premium amortization of above or below market leases, straight-line net operating rent, provision or bene t from deferred income taxes, stock-based compensation expense and related employer-paid payroll taxes from grants under our equity incentive plans, non-real estate 19
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depreciation and amortization, non-real estate nance lease ROU asset amortization, and recurring maintenance capital expenditures. We also adjust for Adjusted FFO attributable to our share of reconciling items of partially owned entities. We believe that Adjusted FFO is helpful to investors as a meaningful supplemental comparative performance measure of our ability to make incremental capital investments in our business and to assess our ability to fund distribution requirements from our operating activities. FFO, Core FFO, Adjusted FFO, and Adjusted FFO per diluted share are used by management, investors, and industry analysts as supplemental measures of operating performance of equity REITs. FFO, Core FFO, Adjusted FFO, and Adjusted FFO per diluted share should be evaluated along with GAAP net income and net income per diluted share (the most directly comparable GAAP measures) in evaluating our operating performance. FFO, Core FFO, and Adjusted FFO do not represent net income or cash ows from operating activities in accordance with GAAP and are not indicative of our results of operations or cash ows from operating activities as disclosed in our condensed consolidated nancial statements included elsewhere in this Press Release. FFO, Core FFO, and Adjusted FFO should be considered as supplements, but not alternatives, to our net income or cash ows from operating activities as indicators of our operating performance. Moreover, other REITs may not calculate FFO in accordance with the NAREIT de nition or may interpret the NAREIT de nition di erently than we do. Accordingly, our FFO may not be comparable to FFO as calculated by other REITs. In addition, there is no industry de nition of Core FFO or Adjusted FFO and, as a result, other REITs may also calculate Core FFO or Adjusted FFO, or other similarly-captioned metrics, in a manner di erent than we do. We are not able to provide forward-looking guidance for certain nancial data that would make a reconciliation from the most comparable GAAP measure to non-GAAP nancial measure for forward-looking Adjusted EBITDA and Adjusted FFO per share possible without unreasonable e ort. This is due to unpredictable nature of relevant reconciling items from factors such as acquisitions, divestitures, impairments, natural disaster events, restructurings, debt issuances that have not yet occurred, or other events that are out of our control and cannot be forecasted. The impact of such adjustments could be signi cant. Investor Relations Contact Ki Bin Kim VP, Investor Relations ir@onelineage.com Media Contact Megan Hendricksen VP, Global Marketing & Communications pr@onelineage.com 20
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Source: Lineage, Inc. 21