Lineage Sees 10% Cold-Storage Oversupply as Q1 AFFO Drops to $0.78
LINE•Lineage reported Q1 net loss of $51 million and AFFO of $0.78 per share, down $0.08 y/y, on $1.3 billion revenue, up less than 1%. Cold-storage capacity rose 15% versus 5% demand growth since 2021, creating a 10% oversupply, with new additions under 2% this and next year.
1. Q1 Financial Results
Lineage recorded a net loss of $51 million in Q1 and generated AFFO of $0.78 per share, a year-over-year decline of $0.08. Consolidated revenue reached $1.3 billion, up less than 1%, while container volumes fell 17%, weighing on drayage revenue.
2. Market Oversupply
Between 2021 and 2025, new cold-storage capacity grew 15% while demand rose just 5%, resulting in a 10% oversupply. Pricing pressure is currently evident in 15% of U.S. markets even as customer food inventories normalize to leaner levels.
3. Operational Metrics
Same-warehouse occupancy was 76.4%, down 30 basis points y/y and 290 basis points sequentially. Pallet throughput declined 3% y/y, storage revenue per pallet climbed 2%, and 70% of revenue has been repriced to target 1–2% net price increases.
4. Guidance and Pipeline
Adjusted EBITDA was $314 million, up 3% y/y with a 24.2% margin. The company has 22 facilities under construction poised to add $150 million in annual EBITDA and reaffirmed full-year guidance of $1.25–1.30 billion EBITDA and $2.75–3.00 AFFO per share.
