Can Lineage (NASDAQ:LINE) Offset Rising Costs as Third-Quarter Revenue Eases?

Sonal Goyal

10 November 2026 06:56 PM AEDT

Can Lineage (NASDAQ:LINE) Offset Rising Costs as Third-Quarter Revenue Eases?

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Key Highlights

Total Revenue declined 1.2% to $1,361 million in the third quarter of 2026.
Adjusted EBITDA fell 7.0% to $317 million, with the Margin narrowing to 23.3%.
AFFO per share decreased 14.1% to $0.73, and the quarterly Dividend was set at $0.5325.
Full-year 2026 adjusted EBITDA guidance now ranges from $1.25 billion to $1.27 billion.

Lineage, Inc. (NASDAQ:LINE) closed the third quarter of 2026 with total revenue of $1,361 million, down 1.2% from a year earlier, while its adjusted Earnings measures moved lower and management revised its full-year outlook. The company, which describes itself as the world's largest temperature-controlled Warehouse REIT, is now dealing with higher fuel costs, tighter trucking capacity and Tariff uncertainty that weighed on results later in the period. The figures below set out what changed and how management is framing the months ahead.

Revenue and Profitability Trends

Lineage operates 497 facilities with about 87 million square feet of space and roughly 3.1 billion cubic feet of capacity across North America, Europe and Asia-Pacific, as of September 30, 2026.

Operating Pressures Late in the Quarter

Chief Executive Greg Lehmkuhl said same-store occupancy grew year over year for a second consecutive quarter, a development he linked to customers normalizing their inventory levels.

Adjusted funds from operations, or AFFO, fell 14.9% to $188 million, and AFFO per share declined 14.1% to $0.73. The board declared a quarterly dividend of $0.5325 per share, which equals an annualized rate of $2.13 per share.

Revised Full-Year 2026 Guidance

Lineage now expects full-year 2026 adjusted EBITDA of $1.25 billion to $1.27 billion and AFFO per share of $2.86 to $2.98. The guidance excludes the effect of acquisitions, divestitures or developments that have not yet been announced.

Temperature-controlled warehouse operators earn revenue from storage fees, handling and value-added services, and their cost base includes energy, labor and Facility maintenance. The third-quarter figures show both sides of that model: occupancy rose on a same-store basis, while margins and per-share cash earnings came under pressure.

Final Word

The third quarter shows a warehouse operator whose occupancy has improved for two consecutive quarters while margins, AFFO and AFFO per share have declined.

FAQs

Q: What was Lineage's total revenue in the third quarter of 2026?

A: Total revenue was $1,361 million, a decline of 1.2% compared with the prior-year period.

Q: Why did AFFO decline during the quarter?

A: AFFO fell 14.9% to $188 million. Management pointed to higher oil prices, constrained trucking capacity and tariff uncertainty as temporary headwinds, particularly in the Global Integrated Solutions business.

Q: What is Lineage's current quarterly dividend?

A: The company declared a quarterly dividend of $0.5325 per share, equal to an annualized rate of $2.13 per share.

Q: What full-year 2026 guidance did Lineage provide?

A: Lineage expects adjusted EBITDA of $1.25 billion to $1.27 billion and AFFO per share of $2.86 to $2.98. The guidance excludes unannounced acquisitions, divestitures and developments.

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