Lineage (NASDAQ:LINE) shares rose around 1.5% after the temperature-controlled warehouse REIT reported second-quarter 2026 results, with adjusted EBITDA coming in ahead of expectations despite posting a GAAP net loss for the quarter.
Revenue increased 0.8% year over year to $1.36 billion, reflecting modest growth across the business.
Adjusted EBITDA outperforms despite lower margins
The company generated adjusted EBITDA of $320 million during the quarter, a decline of 1.8% compared with the same period last year. Adjusted EBITDA margin slipped 60 basis points to 23.5%.
Adjusted funds from operations (FFO) totalled $198 million, or $0.76 per share, representing a 6.2% decline from the prior-year period.
Lineage also reported a GAAP net loss of $0.13 per share.
For full-year 2026, management expects adjusted EBITDA of between $1.26 billion and $1.29 billion, while adjusted FFO is projected to range from $2.80 to $3.05 per share.
Occupancy improves as market stabilises
President and Chief Executive Officer Greg Lehmkuhl said the company delivered stronger-than-expected profitability during the quarter while continuing to see improving conditions across its warehouse network.
“We delivered a solid second quarter, with adjusted EBITDA and AFFO per share both ahead of expectations,” Lehmkuhl said. “Importantly, we achieved a 90bps year-over-year increase in same warehouse physical occupancy, a positive signal that inventory levels have further normalized and that the industry is stabilizing.”
Same-warehouse physical occupancy increased 90 basis points year over year to 75.8%, while economic occupancy improved 70 basis points to 81.5%.
Warehousing business offsets weaker integrated solutions
The global warehousing division generated revenue of $1.01 billion, representing annual growth of 3.6%.
Meanwhile, revenue from the global integrated solutions segment declined 6.3% year over year to $356 million.
Lineage also declared a quarterly dividend of $0.5325 per share, equivalent to an annualised dividend of $2.13 per share.
Company responds to Big Bear facility fire
During the earnings announcement, Lehmkuhl also addressed the recent fire at the company’s Big Bear facility.
He said Lineage acted quickly to support the local community following the incident and remains focused on restoring the site as part of its long-term recovery efforts.
Lineage stock price
