Lineage (LINE) Q4 2024 earnings summary

Executive summary

• Achieved the largest REIT IPO ever in 2024, enabling deleveraging, investment-grade ratings, and conversion to a REIT structure.

• Operates the largest temperature-controlled warehouse REIT globally, with 3.1 billion cubic feet and 488 warehouses across 19 countries as of December 31, 2024.

• Delivered 4% adjusted EBITDA growth and 6% AFFO per share growth for 2024, with an annualized dividend initiation at $2.11 per share.

• Technology-enabled platform and automation drive operational excellence, with 82 automated warehouses, 133 patents issued, and the launch of the LinOS warehouse execution system.

• Strong sustainability focus, including a pledge to achieve net-zero annual carbon by 2040 and 146MW installed on-site solar generation.

Financial highlights

• FY 2024 total revenue was $5.34 billion, flat year-over-year; adjusted EBITDA rose 4% to $1.33 billion, with margin up 100bps to 24.9%.

• AFFO for 2024 increased 25% to $705 million, AFFO per share up 6.5% to $3.29.

• Q4 2024 adjusted EBITDA was $335 million, up 10% year-over-year; Q4 AFFO per share rose 73% to $0.83, benefiting from a one-time $13 million tax item.

• NOI margin rose to 33.1% in 2024, with NOI growth of 0.7% year-over-year.

• Dividend payout annualized at $2.11 per share.

Outlook and guidance

• 2025 guidance: Adjusted EBITDA of $1.35–$1.4 billion and AFFO per share of $3.40–$3.60, with total AFFO projected at $875M–$925M.

• Guidance assumes normal seasonality from low inventory levels, excludes unannounced acquisitions or developments.

• Over $1.5 billion of capital available for deployment in 2025, supporting acquisition and development pipeline.

• Warehouse segment NOI growth expected at 4%-6% constant currency, 3%-5% as reported; same warehouse NOI growth of 2%-5% constant currency.

• Global Integrated Solutions segment NOI growth expected at 5%-10% for 2025.