Lineage (LINE) Q1 2025 earnings summary

Executive summary

• Announced landmark agreements with Tyson Foods, including acquisition of four warehouses for $247 million and plans for two new automated facilities, totaling about $1 billion in capital deployment and expected to generate over $100 million in annual EBITDA once stabilized.

• Acquired three Bellingham Cold Storage campuses for $121 million and completed expansions in Denmark and the Netherlands.

• Q1 2025 results reflect lower warehousing revenues and NOI due to customer inventory rationalization and lower occupancy, partially offset by growth from acquisitions and expansions.

• Net income for Q1 2025 was $42 million, reversing a net loss of $103 million in Q1 2024, driven by lower interest expense and insurance gains.

• LinOS warehouse execution system pilots exceeded expectations, with double-digit productivity improvements and broader rollout planned.

Financial highlights

• Q1 2025 total revenue was $1.29 billion, down 2.7% year-over-year; adjusted EBITDA decreased 7% to $304 million, with margin down 110 bps to 23.5%.

• AFFO rose 48% to $219 million; AFFO per share up 6.2% to $0.86, aided by lower tax expense and timing of maintenance capex.

• Net income: $42 million in Q1 2025 vs. net loss of $103 million in Q1 2024.

• Same store warehouse NOI down 7.9%; same store physical occupancy at 76.5%.

• Net cash provided by operating activities was $139 million, down from $276 million last year.

Outlook and guidance

• Maintaining 2025 guidance: adjusted EBITDA $1,350–$1,400 million and AFFO per share $3.40–$3.60, including contributions from recent acquisitions.

• Guidance excludes impact from unannounced future acquisitions or developments.

• Expect year-over-year declines in Q2, with growth returning in the second half due to seasonality and easier comps.

• Macro uncertainty, especially tariffs, makes near-term forecasting difficult.