Lineage, Inc. (NASDAQ:LINE), the world’s largest temperature-controlled warehouse real estate investment trust (REIT), saw its shares climb 3.6% in premarket trading Wednesday after reporting third-quarter results that underscored stability despite a tough operating environment.
The company posted revenue of $1.37 billion, up 3.1% year over year, while reporting a GAAP net loss of $112 million, or $0.44 per diluted share. Adjusted EBITDA rose 2.4% to $341 million, and Adjusted Funds From Operations (AFFO) increased 6.3% to $221 million compared with the same period last year.
Lineage said it maintained the lower end of its full-year guidance, noting continued pressure from tariff-related uncertainty affecting import and export volumes, and slightly lower U.S. occupancy rates relative to international markets.
“We delivered Adjusted EBITDA and AFFO growth in the third quarter, despite continued challenging market conditions,” said Greg Lehmkuhl, president and CEO of Lineage. “We saw seasonal improvements in occupancy with stable pricing trends in line with our expectations.”
The company now expects full-year 2025 adjusted EBITDA between $1.29 billion and $1.305 billion, compared to its prior range of $1.29 billion to $1.34 billion. It also narrowed Adjusted FFO per share guidance to $3.20–$3.30 from $3.20–$3.40.
By segment, warehouse storage revenue rose 2% year over year to $518 million, while warehouse services revenue climbed 6.7% to $495 million. However, margins in the global warehousing segment slipped, with the segment margin falling 150 basis points to 37.9%.
Looking ahead, Lehmkuhl expressed cautious optimism despite current headwinds: “Looking forward, we are beginning to see some green shoots of optimism as new supply deliveries are declining and demand for frozen food is growing.”
Lineage also declared a quarterly dividend of $0.5275 per share, representing an annualized payout of $2.11 per share, reinforcing its commitment to shareholder returns.