Lineage, Inc. Q4 FY2024 earnings call

• Executed largest IPO of the year and largest REIT IPO, reducing leverage to under 5x and earning investment-grade ratings.
• Financially, delivered 4% adjusted EBITDA growth and 6% AFFO per share growth, initiated dividend.
• Operationally, achieved best safety performance, record new business wins, best truck turn times, best warehouse labor productivity, issued 100th patent.
• Received market recognition awards. Deployed $760 million of growth capital, including opening a state-of-the-art cold store and acquiring ColdPoint Logistics.
• LinOS initiative on track, early pilots exceeding expectations, transforming warehouse operations.

Global warehousing segment: Represented 87% of total NOI in 2024. Full year segment revenue grew 1%, total segment NOI increased 2% to $1.5 billion, with warehouse NOI margin of 39.5%. Global integrated solutions segment: Total segment revenue was $1.5 billion, down 2% vs prior year, NOI down 5%, and NOI margin decreased 50 basis points to 15.9%.

• Full year adjusted EBITDA expected to be $1.35 billion to $1.4 billion; AFFO per share $3.40 to $3.60.
• Global warehousing segment: Full year segment NOI growth 4% to 6% on constant currency, 3% to 5% as-reported; same warehouse NOI growth 2% to 5% on constant currency, 1% to 4% as-reported.
• Global integrated solutions segment: Full year segment NOI growth 5% to 10%.

• Market volatility and inventory fluctuations.
• Competition from new entrants with higher build costs.
• Uncertainties in USDA data affecting short-term predictions.

Q: Alexander Goldfarb asked about industry confidence despite tariff talk and inflationary pressure.

A: W. Lehmkuhl said throughput in core holdings didn't change much, inventory settled, and customers are focused on increasing sales with good incremental margins.

Q: Ki Bin Kim inquired about occupancy and pricing.

A: Robert Crisci explained normal seasonality, challenging comps in first half, and expected results to follow pre-pandemic trends.

Q: Ronald Kamdem asked about same-store NOI guidance drivers and capital deployment pipeline.

A: W. Lehmkuhl said pricing expects inflationary levels, and Robert Crisci mentioned exciting pipeline with development and M&A opportunities.

Q: Nicholas Thillman asked about pricing for new customer acquisition.

A: W. Lehmkuhl reinforced getting inflationary-level prices and partnering with customers long-term.

Q: Todd Thomas asked about capital deployment mix and yield pickup.

A: Robert Crisci said $1.5 billion assumes cash and debt funding, and yield on completed projects is consistent.