Lineage (LINE) Status Update summary

Industry Positioning and Market Dynamics

• Operates the largest global network in its sector, with 488 facilities, 86M square feet, and 3.1 billion cubic feet of warehousing capacity across 19 countries, including 244 port-centric and 82 automated facilities.

• Maintains a leading market position, with 96% of revenue from #1 positions and 49% of NOI from port-adjacent warehouses.

• Faces a 9.5% excess capacity in the U.S. market, with 2025 occupancy projected at 75%, only three points below 2021 despite significant new supply.

• New supply is concentrated in select U.S. markets, while international operations remain less affected by supply pressures.

• Sees potential demand catalysts in tariff resolution, interest rate declines, and food inflation moderation.

Operational Excellence and Workforce Initiatives

• Labor represents 60% of total operating expenses, making productivity improvements a key focus.

• Lean management and standardized processes have reduced team member turnover by over 50% since 2022, supporting growth and consistency.

• Over 80 facilities and 9,000+ team members are engaged in Lean initiatives, driving superior site EBITDA and improved service metrics.

• Productivity improvements have offset inflation, resulting in only slight year-over-year increases in labor cost per throughput pallet.

• Real-time metrics platform (MetricsOne) provides visibility into 100 metrics per facility, supporting rapid problem identification and resolution.

Technology and Digital Transformation

• Five strategic pillars guide digital transformation: scalable digital core, operationalized decision algorithms, connected customer experience, energy intelligence, and warehouse automation.

• Significant investment in digital enablement, unifying data and modernizing systems to lower transaction costs and support transformation pillars.

• LinOS, the proprietary warehouse execution platform, orchestrates real-time decisions for labor, equipment, and automation, driving measurable productivity gains.

• LinOS leverages advanced algorithms, spatial awareness, and real-time data to optimize task assignments, routing, and resource utilization.

• LinOS modules include real-time labor and asset optimization, with 157 patents issued and 126 pending.