Lineage, Inc. Common StockLINE
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Idles facilities, plans asset sales to reduce leverage, reports net loss and lower AFFO, narrows EBITDA guidance.
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Lineage, Inc. Common StockLineage has ceased operations at five additional facilities so far this year, bringing total idled locations to 15 since last year as the cold storage market works through a 10% supply overhang. The closures represent 2.5 million square feet, or 1% of its U.S. portfolio, and the company plans to sell roughly $1 billion in assets to reduce leverage from 6 times net debt-to-EBITDA to a range of 5 to 5.5 times. Lineage reported a second-quarter net loss of $32 million, with adjusted funds from operations of 76 cents per share, down 5 cents year over year, while consolidated net revenue rose 1% to $1.36 billion, slightly above the $1.35 billion consensus estimate. Same-warehouse physical occupancy improved 90 basis points year over year to 75.8%, but pallet throughput declined 2% and storage revenue per pallet fell 1%, partly due to a 14% drop in food-related container volumes at ports. The company narrowed its full-year adjusted EBITDA guidance to a range of $1.26 billion to $1.29 billion, with a $15 million headwind from a California facility fire, and raised its AFFO per share guidance to $2.80 to $3.05.
Lineage, Inc. Common StockIdles facilities, plans asset sales to reduce leverage, reports net loss and lower AFFO, narrows EBITDA guidance.