Lineage, Inc. Common Stock

Lineage has filed a civil lawsuit in Los Angeles against Altus Power and CBRE subsidiary Pearce Services over negligence in a fire incident. The industrial REIT alleged that negligence by the two companies caused a fire on June 17 that destroyed Lineage's 500K sq. ft. cold storage facility in Boyle Heights. "This lawsuit is about Altus and Pearce starting this fire and then being nowhere to be found when the community needed help," said Lineage CEO Greg Lehmkuhl. The lawsuit stated, "This was a solar fire, not a warehouse fire." Altus Power, a commercial solar operator, was acquired by TPG through its TPG Rise Climate Transition Infrastructure strategy last year.

Lineage reported second quarter 2026 adjusted EBITDA of $320 million, down 1.8% year over year, and adjusted FFO of $198 million or $0.76 per share, down 6.2%, while raising its full-year AFFO per share guidance to $2.80 to $3.05. Total revenue rose 0.8% to $1,361 million, and same-store physical occupancy increased 90 basis points to 73.8%, the first year-over-year increase since the company's IPO. The company also raised its same-store NOI guidance to negative 3% to 0% from negative 4% to negative 1%, and management said it expects to provide a comprehensive update by year-end on a strategic portfolio review that could include divestitures of over $1 billion in assets to reduce reported leverage from 6.0 toward a target of 5.0 to 5.5. A fire at the Big Bear facility in Los Angeles is estimated to create a $15 million adjusted EBITDA headwind in the second half of 2026, and a $7 million legal settlement weighed on the Global Integrated Solutions segment.