Lineage, Inc.

(17)Other long-term liabilities

Kloosterboer Preference Shares

As discussed in Note 2, Capital structure and noncontrolling interests, upon the completion of the IPO, the Preference Shares became mandatorily redeemable financial instruments and were reclassified to Other long-term liabilities. On October 1, 2026, all outstanding Preference Shares, including all unpaid accrued preferential dividends, shall be mandatorily redeemed in exchange for cash or a variable number of shares of the Company’s common stock. To the extent the Co-Investor elects to receive shares of the Company’s common stock, the number of shares would be based on the volume weighted average price of the Company’s common stock on the business day immediately prior to the redemption date. The maximum economic payout in order to redeem the Kloosterboer Preference Shares would be€260 million, including all unpaid accrued preferential dividends.

The Company’s initial recording of the Kloosterboer Preference Shares liability was at a fair value of $251 million. The initial fair value was determined utilizing a Black-Derman-Toy lattice model, which takes into consideration the Co-Investor’s annual early redemption options and a credit-adjusted discount rate. The difference of $22 million between the then carrying value of the redeemable noncontrolling interest and the fair value upon reclassification was recorded as an adjustment to Additional paid-in capital - common stock in the consolidated balance sheets and consolidated statements of redeemable noncontrolling interests and equity for the year ended December 31, 2024.

Subsequent to the reclassification, the liability is being accreted up to the October 1, 2026 redemption value using an effective interest method. As of December 31, 2025, the liability of $294 million was reclassified from Other long-term liabilities to Accounts payable and accrued liabilities due to the short-term expected redemption. During the years ended December 31, 2025 and 2024, the Company recognized $14 million and $5 million, respectively, of related expense within Interest expense, net in the consolidated statements of operations and comprehensive income (loss).