Lineage, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue decreased 1.2% year-over-year to $1,361 million for the quarter; nine-month revenue was $4,019 million (flat year-over-year).
• GAAP net loss was $(173) million, or $(0.68) per diluted share for the quarter; nine-month net loss was $(256) million, or $(0.99) per diluted share.
• Adjusted EBITDA decreased 7.0% year-over-year to $317 million for the quarter; adjusted EBITDA margin decreased 150 basis points to 23.3%.
• AFFO decreased 14.9% year-over-year to $188 million for the quarter; AFFO per share decreased 14.1% to $0.73.
• Net cash provided by operating activities was $431 million for the nine months ended September 30, 2026, compared to $627 million in the prior year period.
• Net cash used in investing activities was $449 million for the nine months ended September 30, 2026.
• Net cash provided by financing activities was $12 million for the nine months ended September 30, 2026.
• Total assets were $18,976 million as of September 30, 2026, down from $19,185 million as of December 31, 2025.
• Long-term debt, net, increased to $6,813 million as of September 30, 2026, from $6,107 million as of December 31, 2025.
• Deferred revenue was $80 million as of September 30, 2026, compared to $81 million as of December 31, 2025.
• Global Warehousing segment NOI decreased 6.0% year-over-year to $361 million for the quarter; segment margin decreased 210 basis points to 35.8%.
• Same warehouse NOI decreased 4.2% year-over-year to $342 million for the quarter; same warehouse margin decreased 180 basis points to 37.3%.

Guidance and Future Outlook:

• Full-year 2026 adjusted EBITDA guidance is $1.25 to $1.27 billion.
• Full-year 2026 Adjusted FFO per share guidance is $2.86 to $2.98.
• Guidance excludes the impact of unannounced future acquisitions, divestitures, or developments.
• Management expects cyclical pressures to continue into the fourth quarter, including sharply higher oil prices, constrained trucking capacity, and tariff uncertainty.
• Management views these pressures as temporary and expects underlying business strength to become increasingly visible as they ease.

Business Segments and Product Lines:

• Global Warehousing segment revenue was $1,009 million for the quarter, down 0.4% year-over-year.
• Global Warehousing segment cost of operations increased 3.0% year-over-year to $648 million for the quarter.
• Number of warehouse sites was 478 as of September 30, 2026, down from 481 in the prior year period.
• Average economic occupancy for the Global Warehousing segment was 80.9% for the quarter, up 60 basis points year-over-year.
• Average physical occupancy for the Global Warehousing segment was 74.2% for the quarter, up 50 basis points year-over-year.
• Storage revenue per economic occupied pallet was $63.11 for the quarter, down 0.2% year-over-year.
• Warehouse services revenue per throughput pallet was $32.25 for the quarter, up 0.1% year-over-year.
• Same warehouse revenue was $917 million for the quarter, up 0.4% year-over-year.
• Non-same warehouse revenue was $92 million for the quarter, down 8.0% year-over-year.

Market and Competitive Landscape:

• Lineage operates as the world's largest global temperature-controlled warehouse REIT with 497 facilities totaling approximately 87 million square feet and 3.1 billion cubic feet of capacity across North America, Europe, and Asia-Pacific.
• Same-store occupancy grew year-over-year for the second consecutive quarter, indicating normalized customer inventory levels.
• The Global Integrated Solutions business faced temporary headwinds due to higher oil prices, constrained trucking capacity, and tariff uncertainty.

Risks and Challenges:

• Business faces risks from general business and economic conditions, credit market volatility, and fluctuations in the Consumer Price Index.
• Risks include the impact of tariffs and global trade disruptions, customer defaults, environmental liability, and natural disasters.
• Challenges include the availability of suitable acquisitions, integration of acquired properties, and the ability to meet budgeted returns on development projects.
• Risks include supply chain disruptions affecting labor and raw material availability, and difficulties managing international operations.
• Risks include cybersecurity attacks, failure of information technology systems, and changes in government regulations or tax laws.
• Risks include the inability to maintain REIT status for U.S. federal income tax purposes.

Management Commentary and Tone:

• Greg Lehmkuhl, President and CEO, stated that core business trends continued to stabilize with same-store occupancy growing for the second consecutive quarter.
• Management noted that overall results were generally in line with expectations despite a more challenging environment later in the quarter.
• Management expressed confidence that temporary pressures will ease and the underlying strength of the business will become visible.
• Management adjusted full-year guidance to reflect expected continued pressures into the fourth quarter.

Other Key Points:

• Declared a quarterly dividend of $0.5325 per share, representing an annualized dividend rate of $2.13 per share.
• Conference call and webcast scheduled for November 10, 2026, at 8:00 a.m. Eastern Time.
• Earnings presentation and supplemental information available at ir.onelineage.com.
• Cash, cash equivalents, and restricted cash were $59 million as of September 30, 2026, down from $66 million as of December 31, 2025.
• Stock-based compensation expense was $91 million for the nine months ended September 30, 2026.
• Depreciation and amortization expense was $711 million for the nine months ended September 30, 2026.
• Proceeds from insurance recoveries on impaired long-lived assets were $10 million for the nine months ended September 30, 2026.
• Repayments on the Revolving Credit Facility were $1,004 million for the nine months ended September 30, 2026.
• Borrowings on the Revolving Credit Facility were $2,573 million for the nine months ended September 30, 2026.
• Redemption of Preference Shares was $263 million for the nine months ended September 30, 2026.