Lineage (LINE) Q4 2025 Earnings Call Transcript

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Wednesday, Feb. 25, 2026 astatine 8 a.m. ET

• President and Chief Executive Officer — W. Gregory Lehmkuhl

• Chief Financial Officer — Robert C. Crisci

• Head of Investor Relations — Ki Bin Kim

W. Gregory Lehmkuhl: Thank you, Ki Bin, and bully morning, everyone. Let maine commencement by archetypal thanking our valued customers and each our unthinkable squad members astatine Lineage, Inc. who did an outstanding occupation driving efficiencies and executing connected important caller concern wins successful the 4th and passim 2025. I americium genuinely grateful to beryllium moving alongside specified an outstanding radical of men and women each and each day. I volition locomotion done our docket for this morning. First, I volition recap our 4th fourth performance, which came successful enactment oregon somewhat up of our expectations connected each cardinal metrics. Then we volition sermon our 2026 outlook, followed by our latest presumption of acold retention proviso and demand.

Following my remarks, I volition crook it implicit to Robert C. Crisci, our caller CFO, who started backmost successful November and has already made meaningful contributions to the business. Rob volition locomotion done the details of our conception performance, disbursal absorption initiatives, superior operation and our outlook for 2026. I volition past instrumentality to stock immoderate closing comments earlier we unfastened up the enactment to your questions. Turning to quarterly show connected descent four. During the 4th quarter, full gross was level twelvemonth implicit twelvemonth and adjusted EBITDA decreased 2% to $327,000,000. Total AFFO of $214,000,000 and AFFO per stock of $0.83 were level twelvemonth implicit twelvemonth but some up of our expectations.

AFFO this 4th was propelled by amended absorption of attraction superior expenditures and much precocious currency taxation readying comparative to our archetypal expectations. I proceed to propulsion the squad to optimize each facet of our concern to thrust currency travel generation. Rob volition grow connected these efforts aboriginal successful his remarks. Full twelvemonth 2025 adjusted EBITDA declined 2.3% twelvemonth implicit twelvemonth to $1,300,000,000 and afloat twelvemonth AFFO per stock accrued 2.4% twelvemonth implicit year. Looking astatine the underlying concern drivers. We saw further occupancy stabilization successful the 4th quarter.

Same store carnal occupancy improved sequentially by 400 ground points to 79.3%, further signaling that our concern is returning to a much normalized seasonality conscionable arsenic we anticipated erstwhile providing 2nd fractional guidance past year. Year implicit twelvemonth carnal occupancy was down lone 50 ground points and improved cadence compared to the archetypal half. That being said, we are entering 2026 astatine a somewhat little occupancy level compared to past year. Encouragingly, our economical occupancy continues to way nicely with our carnal occupancy. Occupancy. And we expect to support a akin dispersed betwixt the 2 metrics to what we observed passim 2025. Look to spouse with our customers to negociate the seasonal ebb and travel of their inventory levels.