News Summary
Lineage Inc., the largest temperature-controlled warehouse REIT, announced solid financial results for Q1 2025, with $219 million in FFO. Despite revenue falling short of expectations at $1.29 billion, the company outlined ambitious plans to expand its cold-storage network through a $247 million acquisition from Tyson Foods and a $740 million investment in new facilities. This strategic growth aims to meet rising demand in temperature-sensitive logistics while rewarding investors with a quarterly dividend of $0.5275 per share.
Novi, Michigan – Lineage Inc., the world’s largest temperature-controlled warehouse real estate investment trust (REIT), announced impressive financial results for the first quarter of 2025 and outlined significant expansion plans. The company reported funds from operations (FFO) of $219 million, or 86 cents per share, exceeding Wall Street’s expectations of 82 cents per share. However, its revenue of $1.29 billion fell short of analyst predictions, which had estimated $1.34 billion.
The strong FFO results indicate Lineage’s robust profitability, as this measure accounts for adjustments like depreciation and amortization in net income calculations, a vital metric in the REIT industry. Meanwhile, the company reported breakeven net income for the quarter.
Lineage expects its full-year FFO to range between $3.40 and $3.60 per share. Alongside its financial report, the company announced plans to expand its U.S. cold-storage network through a major $247 million acquisition from Tyson Foods. This acquisition encompasses four existing cold storage warehouses located in Pottsville, Pennsylvania; Olathe, Kansas; Rochelle, Illinois; and Tolleson, Arizona, which together hold approximately 49 million cubic feet of space and 160,000 pallet positions.
The expected completion date for the acquisition is set for the second quarter of 2025, pending customary closing conditions. As part of this strategic move, Lineage aims to onboard over 1,000 employees from Tyson Foods to assist with operations at the newly acquired facilities.
In addition to the acquisition, Lineage has entered into a multi-year agreement involving an investment of over $740 million to design, build, and operate two fully automated cold storage warehouses. These developments will further expand Lineage’s logistics capacity by adding more than 80 million cubic feet of space and nearly 260,000 pallet positions, strategically placed to serve major U.S. distribution markets.
Looking back at recent performance, Lineage reported total revenue of $1.2 billion for Q1 2025, a 2.7% decline compared to the same period last year. The company is still rewarding its investors; a quarterly dividend of $0.5275 per share has been announced, leading to an annualized rate of $2.11 per share.
Lineage’s initial public offering (IPO) in 2023 was a significant event for the company, raising approximately $4.4 billion, marking the largest first-time share sale for the year. The proceeds from this IPO are being utilized to pay off $2.4 billion in revolving debt. In the past year, Lineage experienced significant growth, generating $5.34 billion in revenue, which represents an 8% increase year-over-year, along with a 20% rise in net operating income to $1.75 billion.
Operating more than 480 warehouses across North America, Europe, and Asia-Pacific, Lineage continues to fortify its position as a leader in cold-storage solutions, providing crucial facilities that support the ever-growing demand for temperature-sensitive logistics in various industries.
Deeper Dive: News & Info About This Topic
HERE Resources
The Shyft Group Announces Quarterly Dividend and Q1 Financials
Lineage Inc. Exceeds Earnings Expectations in Q1
Shyft Group Sees $1.4 Million Loss in Q1 2025
Additional Resources
- DBusiness: Lineage in Novi to Acquire Cold Storage Warehouses from Tyson Foods for $247M
- Wikipedia: Cold Storage
- Detroit Free Press: Lineage Largest 2024 IPO Moved Michigan to California
- Google Search: Lineage IPO
- Bloomberg: Lineage is Said to Price US IPO Shares at $78 Each
- Encyclopedia Britannica: Real Estate Investment Trust
- Business Wire: Lineage Inc. Announces Plans to Expand Its U.S. Cold Storage Network
- FreightWaves: Cold Storage REIT Lineage Files for IPO
- Google Search: Temperature-Controlled Logistics
