Lineage (LINE) investor relations material

Executive summary

• Q2 2026 revenue increased 0.8% year-over-year to $1,361 million, with adjusted EBITDA of $320 million and AFFO of $198 million ($0.76/share), both ahead of internal and consensus estimates, despite a net loss of $(29) million.

• Operational trends showed stabilization, with improved same-store physical occupancy and better-than-expected non-same store contributions; Global Warehousing was stable, while Global Integrated Solutions was impacted by divestitures and a legal settlement.

• The company responded to significant fires at its Big Bear and Los Angeles facilities, committing $3.3 million to local nonprofits and incurring $15 million and $8 million in adjusted EBITDA and impairment/legal costs, respectively, with insurance expected to offset losses over time.

• Geographic diversification, especially in APAC, Europe, and Canada, provided stability amid U.S. headwinds.

• The business is organized into Global Warehousing and Global Integrated Solutions, serving a diversified food supply chain customer base and focusing on technology-enabled cold chain solutions.

Financial highlights

• Q2 2026 total revenue: $1,361 million (+0.8% YoY); adjusted EBITDA: $320 million (-1.8% YoY); AFFO per share: $0.76 (-6.2% YoY); net loss attributable to shareholders: $(29) million.

• Adjusted EBITDA margin was 23.5%, down 60bps year-over-year; AFFO decreased to $198 million.

• Same-store NOI declined 2.9% year-over-year, an improvement from steeper declines in 2025; same-store physical occupancy increased 0.9% year-over-year.

• Net debt stood at $7.8 billion, with total liquidity of $1.6 billion and weighted average effective interest rate of 4.1%.

• Quarterly dividend declared at $0.5325 per share, annualized at $2.13 per share.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance raised to $1.26–$1.29 billion; AFFO per share guidance increased to $2.80–$3.05.

• Same-store NOI growth expected between -3% and 0% for the year; total warehouse NOI growth expected at -2% to +1%.

• Administrative expenses for 2026 guided to $460–$470 million.

• Q3 2026 same-store NOI expected to grow sequentially but be lowest year-over-year; Q4 expected to approach flat year-over-year growth.

• Short-term liquidity and capital commitments are expected to be met with current cash, operations, and credit facilities.