Lineage, Inc.

Q2 2026 adjusted EBITDA was approximately $320 million. Total AFFO was approximately $198 million, or $0.76 per share. In Global Warehouse, total warehouse NOI was approximately $367 million and same-store NOI declined 2.9% year over year; same-store rent, storage and blast revenue per physical pallet declined approximately 0.7%, while same-store physical occupancy improved 0.9%. In Global Integrated Solutions, GIS NOI was $61 million and underlying revenue growth was 5% excluding last year’s Spain transportation disposition; excluding a $7 million legal settlement, GIS delivered underlying margin of 19%. For the full year, Lineage raised same-store NOI guidance to negative 3% to flat from negative 4% to negative 1%, total warehouse NOI growth to negative 2% to positive 1%, and AFFO per share to $2.80 to $3.05 from $2.75 to $3. The EBITDA midpoint was unchanged, even after incorporating an estimated $15 million adjusted EBITDA impact from the Big Bear fire. Admin expense guidance was tightened to $460 million to $470 million. The company ended the quarter with net debt of approximately $7.8 billion and total liquidity of approximately $1.6 billion.

Greg Lehmkuhl framed the quarter as another step forward in a stabilizing operating backdrop, emphasizing that results were better than expected and that the business is executing through industry headwinds. He pointed to improving occupancy, disciplined pricing, productivity initiatives, and the benefits of geographic diversification, especially in APAC, Europe, and Canada. His tone was constructive and confident, with repeated references to Lineage’s competitive moat, the durability of cold-chain demand, and the company’s ability to win share through service and technology.

Robb LeMasters focused on the quarter’s financial upside versus expectations and the specific drivers behind guidance changes. He said the $320 million of adjusted EBITDA included the impact of the $7 million legal settlement, and that AFFO of $0.76 per share benefited from better operating results plus favorable timing on maintenance CapEx and taxes. He also highlighted admin expense of approximately $118 million, revised full-year admin guidance of $460 million to $470 million, net debt of approximately $7.8 billion, total liquidity of approximately $1.6 billion, and adjusted net debt to transaction-adjusted EBITDA of approximately 5.3x, while reiterating the goal of bringing reported leverage from about 6.0x into the 5.0x to 5.5x range.

Analysts pressed on why occupancy improved seasonally, how to think about normalized occupancy, and whether the Q2 strength reflected customer behavior or company actions. Management said same-store occupancy rose year over year for the first time since going public, that sequential occupancy was slightly better than expected, and that customers appear to be rebuilding inventories after overcorrecting during destocking. Questions on LinOS focused on rollout timing and benefits; management said the conventional rollout is progressing across 14 buildings, remains on track for 20 buildings by year-end, and should begin to matter more in 2027 and 2028, with some Q4 2026 impact but not enough to move the full-year result. Analysts also probed Big Bear, GIS, 2027 strategic review timing, and pricing; management said the fire should not change cash flows materially versus Kennewick, GIS pressure was mainly from carrier rates and the settlement, and the asset review should produce a meaningful update by year-end.