Lineage, Inc.
For the period ended Sep 30, 2026. Filed Nov 9, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 9, 2026
LINE$39.66+1.4%Stored close · as of Nov 9, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001868159-26-000039
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-09.
0001868159-26-000051
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 211 previous paragraphs and 222 current paragraphs.
134 unchanged; 53 reworded; 33 added; 23 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 24 previous and 24 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (33)
Current report
Goodwill impairment. Our goodwill impairment includes impairment losses recognized when a reporting unit’s carrying value is determined to exceed its fair value. We assess goodwill impairment on an annual basis as of October 1, or on an interim basis when events occur or circumstances change that would more likely than not indicate an impairment exists.
Current report
•Energy Costs. Energy costs increased during the third quarter of 2026 across our North American and European operations, which we expect to continue into the fourth quarter of 2026. Following a fire involving solar panels at our Los Angeles, California facility, we conducted inspections of other solar installations, resulting in a temporary reduction in internally generated solar power and higher energy costs. While we have limited direct exposure to the Middle East and do not currently expect a material impact on our operations, we continue to monitor the ongoing conflict in the region and its potential effect on global energy and commodity prices. We generally have been able to recover increased energy costs through customer pricing mechanisms. In addition, the use of energy hedges, utility consumption management initiatives, and internally generated solar power help mitigate the impact of energy cost volatility on our operations.
Current report
Global Warehousing segment revenues were $1,009 million for the three months ended September 30, 2026, a decrease of $4 million, or 0.4%, compared to $1,013 million for the three months ended September 30, 2025. The decrease was primarily driven by an $8 million decrease in our non-same warehouse pool, reflecting the impact of the June 2026 fire at our Los Angeles,
Current report
California warehouse and lower revenues from idled and sold sites, partially offset by growth from recently completed greenfield and expansion projects. The decrease was partially offset by a $4 million increase in our same warehouse pool, further discussed below. The foreign currency translation of revenues earned by our foreign operations had a $2 million favorable impact compared to the three months ended September 30, 2025.
Current report
Global Warehousing segment cost of operations was $648 million for the three months ended September 30, 2026, an increase of $19 million, or 3.0%, compared to $629 million for the three months ended September 30, 2025. The increase was driven by an increase in our same warehouse pool, further discussed below. The foreign currency translation of cost of operations from our foreign operations had a $1 million unfavorable impact compared to the three months ended September 30, 2025.
Current report
Global Warehousing segment NOI was $361 million for the three months ended September 30, 2026, a decrease of $23 million, or 6.0%, compared to $384 million for the three months ended September 30, 2025. The decrease was primarily driven by a $15 million decrease in our same warehouse pool and an $8 million decrease in our non-same warehouse pool. The foreign currency translation from our foreign operations did not have a material net impact to NOI compared to the three months ended September 30, 2025.
Current report
Non-same warehouse revenues decreased $8 million, or 8.0%, compared to the three months ended September 30, 2025, including a $24 million decrease from acquisitions and other non-same warehouse sites, primarily due to the impact of the June 2026 fire at our Los Angeles, California warehouse and lower revenues from idled and sold sites, partially offset by a $16 million increase from recently completed greenfield and expansion projects.
Current report
Non-same warehouse cost of operations was flat compared to the three months ended September 30, 2025, as a $13 million decrease from acquisitions and other non-same warehouse sites was offset by a $13 million increase from recently completed greenfield and expansion projects.
Current report
Global Integrated Solutions segment revenues were $352 million for the three months ended September 30, 2026, a decrease of $12 million, or 3.3%, compared to $364 million for the three months ended September 30, 2025. The decrease was primarily driven by the divestiture of our Spain Transportation business during the three months ended September 30, 2025, partially offset by higher volumes and rates in our remaining transportation business. The foreign currency translation of revenues earned by our foreign operations did not have a material impact compared to the three months ended September 30, 2025.
Current report
Global Integrated Solutions segment NOI was $56 million for the three months ended September 30, 2026, a decrease of $9 million, or 13.8%, compared to $65 million for the three months ended September 30, 2025. The decrease was primarily driven by higher transportation and logistics expenses resulting from increased oil prices and carrier rates. The foreign currency translation from our foreign operations did not have a material net impact on NOI compared to the three months ended September 30, 2025.
Current report
Depreciation and amortization expense. Depreciation and amortization expense was $241 million for the three months ended September 30, 2026, an increase of $11 million, or 4.8%, compared to $230 million for the three months ended September 30, 2025. The increase was primarily driven by $7 million of accelerated depreciation resulting from a change in the estimated remaining useful lives of certain assets, and $2 million of depreciation on expansion sites placed into service after September 30, 2025.
Current report
General and administrative expense. General and administrative expense was $142 million for the three months ended September 30, 2026, a decrease of $3 million, or 2.1%, compared to $145 million for the three months ended September 30, 2025. The decrease was primarily driven by lower other operating expenses, reflecting lower professional services costs, including tax, consulting and legal services, as well as lower training costs and management fees. This decrease was partially offset by higher information technology and software subscription costs, and higher compensation and benefits expense. For the three months ended September 30, 2026 and 2025, general and administrative expense was 10.4% and 10.5% of total revenues, respectively.
Current report
Acquisition, transaction, and other expense. Acquisition, transaction, and other expense was immaterial for the three months ended September 30, 2026, compared to $12 million for the three months ended September 30, 2025. The decrease was primarily due to $3 million of lower legal and professional fees from reduced acquisition activity, $2 million of lower IT integration costs and amortization of cloud computing arrangements as several projects became fully amortized, $2 million from the non-recurrence of a fair value adjustment to a Put Option recorded in the prior year period, and $2 million of amounts received from former shareholders of an acquired business related to a pre-acquisition matter.
Current report
Goodwill impairment. We did not recognize a goodwill impairment during the three months ended September 30, 2026, compared to a goodwill impairment of $28 million during the three months ended September 30, 2025. For additional information regarding the goodwill impairment recognized in the prior year period, see Note 5, Goodwill and other intangible assets, net in the condensed consolidated financial statements included in this Quarterly Report.
Current report
Restructuring, impairment, and (gain) loss on disposals. Restructuring, impairment, and (gain) loss on disposals were net expenses of $109 million for the three months ended September 30, 2026, compared to a net gain of $5 million for the three months ended September 30, 2025, an increase of $114 million. The increase was primarily due to $122 million of costs incurred in connection with the June 2026 fire at our Los Angeles, California warehouse, including clean-up costs, impairment loss, legal, administrative and consulting fees, charitable contributions, and other costs. The increase was partially offset by $4 million of insurance proceeds received during the three months ended September 30, 2026 related to a prior immaterial matter, and a $4 million increase in net gains related to the Kennewick, Washington warehouse fire, primarily due to higher insurance recoveries recognized during the three months ended September 30, 2026, compared to the same period in 2025.
Current report
Gain (loss) on extinguishment of debt. We did not recognize any gain or loss on extinguishment of debt during the three months ended September 30, 2026, compared to a loss on extinguishment of debt of $3 million during the three months ended September 30, 2025. The prior year loss was related to the repayment of debt associated with the divested Spain transportation business.
Current report
Other nonoperating income (expense), net. We reported $2 million of other nonoperating expense for the three months ended September 30, 2026, compared to $57 million of other nonoperating expense for the three months ended September 30, 2025. The prior year loss included a $60 million loss on divestiture of our Spain Transportation business. This was partially offset by a gain on the sale of a business in the prior year period and lower net gains from fair value adjustments on cost method investments in the current period compared to the prior year period.
Current report
The following table presents the operating results of our Global Warehousing segment for the nine months ended September 30, 2026 and 2025.
Current report
Global Warehousing segment revenues were $2,999 million for the nine months ended September 30, 2026, an increase of $72 million, or 2.5%, compared to $2,927 million for the nine months ended September 30, 2025. The increase included a $61 million net increase in our non-same warehouse pool, and an $11 million increase in our same warehouse pool, further discussed below. The foreign currency translation of revenues earned by our foreign operations had a $38 million favorable impact compared to the nine months ended September 30, 2025.
Current report
The following table presents the operating results for our same warehouses for the nine months ended September 30, 2026 and 2025.
Current report
Same warehouse services revenues increased $4 million, or 0.3%, compared to the nine months ended September 30, 2025, primarily due to higher average rates and growth in international markets, partially offset by lower throughput in North America.
Current report
Same warehouse cost of operations increased $37 million, or 2.2%, compared to the nine months ended September 30, 2025, primarily driven by higher power costs due to increased rates and lower in-house solar power generation, higher labor costs resulting from increased wages for temporary contract labor, and higher costs associated with warehouse services growth in international markets.
Current report
The following table presents the operating results of our Global Integrated Solutions segment for the nine months ended September 30, 2026 and 2025.
Current report
Global Integrated Solutions segment cost of operations was $846 million for the nine months ended September 30, 2026, a decrease of $56 million, or 6.2%, compared to $902 million for the nine months ended September 30, 2025. The decrease was primarily driven by the divestiture of our Spain Transportation business during the three months ended September 30, 2025, partially offset by a $7 million charge related to a preliminary legal settlement, as well as higher transportation and logistics expenses driven by increased oil prices and carrier rates, higher third-party labor costs, and increased transportation volumes. The foreign currency translation of cost of operations from our foreign operations had an $11 million unfavorable impact compared to the nine months ended September 30, 2025.
Current report
Other Consolidated Operating Expense
Current report
Depreciation and amortization expense. Depreciation and amortization expense was $711 million for the nine months ended September 30, 2026, an increase of $45 million, or 6.8%, compared to $666 million for the nine months ended September 30, 2025. The increase was primarily driven by $17 million of depreciation on businesses acquired, and recently completed greenfield and expansion projects, and $7 million of accelerated depreciation resulting from a change in the estimated remaining useful lives of certain assets. The increase also reflects higher depreciation and amortization from growth in our asset base, including software and other asset additions. The foreign currency translation of depreciation and amortization from our foreign operations had an $8 million unfavorable impact compared to the nine months ended September 30, 2025.
Current report
General and administrative expense. General and administrative expense was $421 million for the nine months ended September 30, 2026, a decrease of $21 million, or 4.8%, compared to $442 million for the nine months ended September 30, 2025. The decrease was primarily driven by lower other operating expenses, reflecting lower professional services costs, as well as lower training and management fees. The decrease was also driven by lower stock-based compensation expense, reflecting a revised probability assessment of achieving performance conditions on outstanding performance-based awards. The decrease was partially offset by higher information technology and software subscription costs, and higher compensation and benefits expense. For the nine months ended September 30, 2026, general and administrative expenses were 10.5% of total revenues compared to 11.0% of total revenues for the nine months ended September 30, 2025.
Current report
Acquisition, transaction, and other expense. Acquisition, transaction, and other expense was $4 million for the nine months ended September 30, 2026, compared to $64 million for the nine months ended September 30, 2025, a decrease of $60 million. The decrease was primarily due to a $30 million fair value adjustment to a put option recorded in the prior year period that did not recur, $16 million of lower stock-based compensation expense related to awards granted in 2024 in connection with our IPO, and $7 million of lower legal and professional fees from reduced acquisition activity. The decrease also reflects $4 million of lower IT integration costs and amortization of cloud computing arrangements as several projects became fully amortized, and $2 million of amounts received from former shareholders of an acquired business related to a pre-acquisition matter.
Current report
Goodwill impairment. We did not recognize a goodwill impairment during the nine months ended September 30, 2026, compared to a goodwill impairment of $28 million during the nine months ended September 30, 2025. For additional information regarding the goodwill impairment recognized in the prior year period, see Note 5, Goodwill and other intangible assets, net in the condensed consolidated financial statements included in this Quarterly Report.
Current report
Restructuring, impairment, and (gain) loss on disposals. Restructuring, impairment, and (gain) loss on disposals were net expenses of $108 million for the nine months ended September 30, 2026, compared to a net gain of $23 million for the nine months ended September 30, 2025, an increase of $131 million. The increase was primarily due to $130 million of costs incurred in connection with the June 2026 fire at our Los Angeles, California warehouse, including clean-up costs, impairment loss, legal, administrative and consulting fees, charitable contributions, and other costs. The increase also reflects an $17 million decrease in net gains related to the Kennewick, Washington warehouse fire, primarily due to lower insurance recoveries recognized in the current period ($35 million compared to $48 million in the prior year period) and $4 million of settlement and legal costs related to customer claims for product damaged in the fire. The increase was partially offset by $7 million of lease exit costs recorded in the prior year period related to a leased facility we acquired in Bellingham, Washington, $6 million of net favorable activity related to immaterial prior insurance recoveries recognized in the current period, and lower impairment charges, repair costs, severance costs, and net losses on asset disposals in the current period compared to the prior year period.
Current report
Gain (loss) on extinguishment of debt. We did not recognize a gain or loss on extinguishment of debt during the nine months ended September 30, 2026, compared to a loss on extinguishment of debt of $3 million during the nine months ended September 30, 2025. The prior year loss was related to the repayment of debt associated with the divested Spain transportation business.
Current report
Other nonoperating income (expense), net. We reported $1 million of other nonoperating expense for the nine months ended September 30, 2026, compared to a net expense of $56 million for the nine months ended September 30, 2025. The prior year expense included a $60 million loss on divestiture of our Spain Transportation business. This was partially offset by a gain on the sale of a business in the prior year period and lower net gains from fair value adjustments on cost method investments in the current period compared to the prior year period.
Current report
In October 2026, Fitch Ratings downgraded our Long-Term Issuer Default Rating from BBB+ to BBB. As a result, the facility fee and applicable margin on the Revolving Credit Facility, and the applicable margin on the Term Loan A, increased. The facility fee increased from 0.15% to 0.20%, the Revolving Credit Facility margin increased from 0.78% to 0.85%, and the Term Loan A margin increased from 0.93% to 1.05%.
Removed paragraphs (23)
Previous report
•Energy Costs. Following increased costs in prior years, particularly in our European operations, our power costs have stabilized. While we have limited direct exposure to the Middle East and we expect the near-term impact to be materially net neutral, we are monitoring developments with respect to the ongoing conflict with Iran, including the impact on global commodity prices. We have generally been able to pass increased power costs through to our customers, and, in certain cases, we use energy hedges, regulate utilities usage, and generate in-house solar energy, all mitigating the impact of energy cost increases on our operating results.
Previous report
Global Warehousing segment revenues were $1,005 million for the three months ended June 30, 2026, an increase of $35 million, or 3.6%, compared to $970 million for the three months ended June 30, 2025. The increase was primarily driven by a $31 million increase in our non-same warehouse pool and a $4 million increase in our same warehouse pool, further discussed below. The foreign currency translation of revenues earned by our foreign operations had a $10 million favorable impact compared to the three months ended June 30, 2025.
Previous report
Global Warehousing segment cost of operations was $638 million for the three months ended June 30, 2026, an increase of $35 million, or 5.8%, compared to $603 million for the three months ended June 30, 2025. The increase was primarily driven by a $21 million increase in costs of our non-same warehouse pool and a $14 million increase in costs of our same warehouse pool, further discussed below. The foreign currency translation of cost of operations from our foreign operations had a $7 million unfavorable impact compared to the three months ended June 30, 2025.
Previous report
Global Warehousing segment NOI was $367 million for the three months ended June 30, 2026, consistent with $367 million for the three months ended June 30, 2025. This was primarily driven by a $10 million increase in our non-same warehouse pool, offset by a $10 million decrease in our same warehouse pool. The foreign currency translation from our foreign operations had a $3 million net favorable impact compared to the three months ended June 30, 2025.
Previous report
Non-same warehouse revenues increased $31 million, or 45.6%, compared to the three months ended June 30, 2025, including approximately $21 million from acquisitions and $17 million from recently completed greenfield and expansion projects, partially offset by a $7 million decrease from other non-same warehouse sites.
Previous report
Non-same warehouse cost of operations increased $21 million, or 43.8%, compared to the three months ended June 30, 2025, including approximately $15 million from acquisitions, $10 million from recently completed greenfield and expansion projects, partially offset by a $4 million decrease from other non-same warehouse sites.
Previous report
Global Integrated Solutions segment cost of operations was $295 million for the three months ended June 30, 2026, a decrease of $17 million, or 5.4%, compared to $312 million for the three months ended June 30, 2025. The decrease was primarily driven by the above-mentioned divestiture of the Spain Transportation business, partially offset by $7 million expense associated with a preliminary legal settlement and higher transportation and logistics expenses reflecting the increased cost of fuel and third-party labor. The foreign currency translation of cost of operations from our foreign operations had a $3 million unfavorable impact compared to the three months ended June 30, 2025.
Previous report
Other Consolidated Operating Expenses
Previous report
Depreciation and amortization expense. Depreciation and amortization expense was $237 million for the three months ended June 30, 2026, an increase of $13 million, or 5.8%, compared to $224 million for the three months ended June 30, 2025. The increase was primarily related to acquisitions, greenfield and expansion projects, and information technology investments.
Previous report
General and administrative expense. General and administrative expense was $138 million for the three months ended June 30, 2026, a decrease of $5 million, or 3.5%, compared to $143 million for the three months ended June 30, 2025. The decrease was primarily due to lower professional fees, including legal, tax, and audit fees and broader cost-saving initiatives. For the three months ended June 30, 2026 and 2025, general and administrative expense was 10.1% and 10.6% of total revenues, respectively.
Previous report
Acquisition, transaction, and other expense. Acquisition, transaction, and other expense was less than $1 million for the three months ended June 30, 2026, compared to $37 million for the three months ended June 30, 2025. The decrease was primarily due to 2025 fair value adjustments of the Put Options issued in connection with the IPO and stock-based compensation expense for one-time IPO awards, as well as lower legal and professional fees from reduced acquisition activity. For further detail on stock-based compensation costs, see Note 13, Stock-based compensation to the condensed consolidated financial statements included in this Quarterly Report.
Previous report
Restructuring, impairment, and (gain) loss on disposals. Restructuring, impairment, and (gain) loss on disposals were a net gain of $4 million for the three months ended June 30, 2026, a decrease of $7 million compared to net expenses of $3 million for the three months ended June 30, 2025. The decrease was primarily due to $7 million of estimated lease exit costs related to a previously acquired facility that were incurred in the three months ended June 30, 2025 and did not recur in 2026, a $5 million decrease in severance costs, and a $3 million favorable impact from fixed asset disposal activity, partially offset by $8 million of impairment loss and legal and administrative fees related to a fire that occurred in our Los Angeles, California warehouse in June 2026. For further detail related to the Los Angeles, California warehouse fire, see Note 15, Commitments and contingencies in our condensed consolidated financial statements included in this Quarterly Report.
Previous report
The following table presents the operating results of our Global Warehousing segment for the six months ended June 30, 2026 and 2025.
Previous report
Global Warehousing segment revenues were $1,990 million for the six months ended June 30, 2026, an increase of $76 million, or 4.0%, compared to $1,914 million for the six months ended June 30, 2025. The increase included a $71 million net increase in our non-same warehouse pool and a $5 million increase in our same warehouse pool, further discussed below. The foreign currency translation of revenues earned by our foreign operations had a $36 million favorable impact compared to the six months ended June 30, 2025.
Previous report
The following table presents the operating results for our same warehouses for the six months ended June 30, 2026 and 2025.
Previous report
Same warehouse cost of operations increased $18 million, or 1.6%, compared to the six months ended June 30, 2025, primarily resulting from inflationary pressures and unfavorable net foreign currency impact.
Previous report
The following table presents the operating results of our Global Integrated Solutions segment for the six months ended June 30, 2026 and 2025.
Previous report
Global Integrated Solutions segment cost of operations was $550 million for the six months ended June 30, 2026, a decrease of $53 million, or 8.8%, compared to $603 million for the six months ended June 30, 2025. The decrease was primarily driven by the above-mentioned divestiture of the Spain Transportation business, partially offset by $7 million of expense associated with a preliminary legal settlement and higher transportation and logistics expenses reflecting the increased cost of fuel and third-party labor. The foreign currency translation of cost of operations from our foreign operations had an $11 million unfavorable impact compared to the six months ended June 30, 2025.
Previous report
Global Integrated Solutions segment NOI was $118 million for the six months ended June 30, 2026, a decrease of $7 million, or 5.6%, compared to $125 million for the six months ended June 30, 2025, due to the factors discussed above. NOI margin was positively impacted by the sale of the Spain Transportation business. Foreign currency translation had a $1 million net favorable impact compared to the six months ended June 30, 2025.
Previous report
Depreciation and amortization expense. Depreciation and amortization expense was $470 million for the six months ended June 30, 2026, an increase of $34 million, or 7.8%, compared to $436 million for the six months ended June 30, 2025. The increase was primarily related to acquisitions and greenfield and expansion projects.
Previous report
General and administrative expense. General and administrative expense was $279 million for the six months ended June 30, 2026, a decrease of $18 million, or 6.1%, compared to $297 million for the six months ended June 30, 2025. The decrease was primarily due to an $11 million reduction in stock-based compensation expense, mainly for unfavorable forecasted performance for the 2024 and 2025 performance awards (see Note 13, Stock-based compensation to the condensed consolidated financial statements included in this Quarterly Report for details). The decrease was also attributable to lower professional fees, including legal, tax, and audit fees and broader cost-saving initiatives. For the six months ended June 30, 2026, general and administrative expenses were 10.5% of total revenues compared to 11.2% of total revenues for the six months ended June 30, 2025.
Previous report
Acquisition, transaction, and other expense. Acquisition, transaction, and other expense was $4 million for the six months ended June 30, 2026, a decrease of $48 million compared to $52 million for the six months ended June 30, 2025. The decrease was primarily due to fair value adjustments of the Put Options issued in connection with the IPO and stock-based compensation expense for one-time IPO awards, as well as lower legal and professional fees from reduced acquisition activity. For further detail on stock-based compensation costs, see Note 13, Stock-based compensation to the condensed consolidated financial statements included in this Quarterly Report.
Previous report
Restructuring, impairment, and (gain) loss on disposals. Restructuring, impairment, and (gain) loss on disposals were a net gain of $1 million for the six months ended June 30, 2026, as compared to a net gain of $18 million for the six months ended June 30, 2025. The change was primarily driven by a $22 million reduction in net gains associated with the Kennewick, Washington warehouse fire, reflecting $17 million of lower insurance recovery proceeds and $4 million of incremental costs related to a customer product-damage claim and associated legal fees, as well as $8 million of impairment loss and legal and administrative fees related to a fire that occurred in our Los Angeles, California warehouse in June 2026. These decreases were partially offset by $7 million of estimated lease exit costs related to a previously acquired facility that were incurred in the six months ended June 30, 2025 and did not recur in 2026, as well as $5 million of net other favorable items, including disposals of fixed assets.
Reworded paragraphs (53)
Previous wording
We are the world’s largest global temperature-controlled warehouse REIT, with a modern and strategically located network of properties. Our business is competitively positioned to deliver a seamless end-to-end, technology-enabled experience for a well-diversified and stable customer base, each with their own unique requirements in the temperature-controlled supply chain. As of June 30, 2026, we operated an interconnected global temperature-controlled warehouse network, comprising approximately 87 million square feet and 3.1 billion cubic feet of capacity across 498 warehouses predominantly located in densely populated critical-distribution markets, with 323 in North America, 89 in Asia-Pacific, and 86 in Europe.
Current wording
We are the world’s largest global temperature-controlled warehouse REIT, with a modern and strategically located network of properties. Our business is competitively positioned to deliver a seamless end-to-end, technology-enabled experience for a well-diversified and stable customer base, each with their own unique requirements in the temperature-controlled supply chain. As of September 30, 2026, we operated an interconnected global temperature-controlled warehouse network, comprising approximately 87 million square feet and 3.1 billion cubic feet of capacity across 497 warehouses predominantly located in densely populated critical-distribution markets, with 320 in North America, 91 in Asia-Pacific, and 86 in Europe.
Previous wording
•Leases. We lease space to certain customers that desire to manage their own temperature-controlled warehousing or carry on processing operations in warehouses adjacent, or in close proximity, to their production facilities. Our customer leased warehouses are typically leased to third parties, such as food producers, distributors and retailers, under triple net lease agreements pursuant to which the customer is responsible for all costs incurred for facility maintenance, insurance, taxes, utilities, and other services necessary or appropriate for the applicable warehouse and the business conducted at the applicable warehouse. We typically charge rent based on the square footage leased in our warehouses. We consider the creditworthiness of a potential tenant to be an important consideration in determining whether to engage in a new lease agreement.
Current wording
•Leases. We lease space to certain customers that desire to manage their own temperature-controlled warehousing or conduct processing operations in warehouses adjacent, or in close proximity, to their production facilities. Our customer leased warehouses are typically leased to third parties, such as food producers, distributors and retailers, under triple net lease agreements pursuant to which the customer is responsible for all costs incurred for facility maintenance, insurance, taxes, utilities, and other services necessary or appropriate for the applicable warehouse and the business conducted at the applicable warehouse. We typically charge rent based on the square footage leased in our warehouses. We consider the creditworthiness of a potential tenant to be an important consideration in determining whether to engage in a new lease agreement.
Previous wording
Cost of operations. Our Global Integrated Solutions cost of operations consists primarily of third-party carrier charges, which are impacted by factors affecting those carriers, including truck and ocean liner capacity and driver and equipment availability. Additionally, in certain markets we employ drivers and operate assets to serve our customers. Costs to operate these assets include wages (excluding stock-based compensation), fuel, tolls, insurance, and maintenance.
Current wording
Cost of operations. Our Global Integrated Solutions cost of operations consists primarily of third-party carrier charges, which are impacted by factors affecting those carriers, including truck and ocean liner capacity and driver and equipment availability.
Previous wording
Restructuring, impairment, and (gain) loss on disposals. Our restructuring, impairment, and (gain) loss on disposals include certain contractual and negotiated severance and separation costs from exited former executives, costs related to reductions in headcount to achieve operational efficiencies, and costs associated with exiting non-strategic operations. We record such costs when there is a substantive plan for employee severance or employees are otherwise entitled to benefits (e.g., in case of one-time terminations) and related costs are probable and estimable. It also includes gains (losses) on dispositions of property, plant, and equipment and impairments of long-lived assets, net of related gains on insurance recoveries, excluding impairments of goodwill. This includes costs incurred as a result of property damage events, such as fires, including impairment and other asset write-offs, cleanup and remediation costs, and legal and administrative fees, net of any gains on insurance recoveries.
Current wording
Restructuring, impairment, and (gain) loss on disposals. Our restructuring, impairment, and (gain) loss on disposals include certain contractual and negotiated severance and separation costs from exited former executives, costs related to reductions in headcount to achieve operational efficiencies, and costs associated with exiting non-strategic operations. We record such costs when there is a substantive plan for employee severance or employees are otherwise entitled to benefits (e.g., in case of one-time terminations) and related costs are probable and estimable. It also includes gains (losses) on dispositions of property, plant, and equipment and impairments of long-lived assets, net of related gains on insurance recoveries, excluding impairments of goodwill. This also includes costs incurred as a result of property damage events, such as fires, including impairment and other asset write-offs, cleanup and remediation costs, and legal and administrative fees, net of any gains on insurance recoveries.
Previous wording
•Occupancy and Throughput. After a period of inventory adjustments from our customers over the last few years, we are seeing our occupancy levels stabilize and a return to more normal seasonal inventory patterns. Occupancy, throughput, and related ancillary services were also impacted by evolving tariff and trade policies. As trade agreements were reached, we saw stabilization in our customers’ business, and end-consumer demand became consistent with historic levels. Additionally, in recent years, new supply of temperature-controlled warehousing capacity has come online in select markets, which continues to impact occupancy and throughput in those markets with excess capacity. We are seeing slowdown in new supply coming online in 2026 compared to recent years. To optimize our Global Warehousing network and maximize NOI, we review our operations to determine whether it is beneficial to reposition or temporarily idle existing warehouses or consolidate existing operations. When such actions are taken, we strive to relocate customers affected by such activities into other warehouses in our Global Warehousing network.
Current wording
•Occupancy and Throughput. After a period of inventory adjustments from our customers over the last few years, we are seeing our occupancy levels stabilize and a return to more normal seasonal inventory patterns. Occupancy, throughput, and related ancillary services were also impacted by evolving tariff and trade policies, and we expect lower import and export volumes to continue to affect throughput at our sites with trade exposure into the fourth quarter of 2026. In recent years, new supply of temperature-controlled warehousing capacity has come online in select markets, which continues to impact occupancy and throughput in those markets with excess capacity. We are seeing slowdown in new supply coming online in 2026 compared to recent years. To optimize our Global Warehousing network and maximize NOI, we review our operations to determine whether it is beneficial to reposition or temporarily idle existing warehouses or consolidate existing operations. When such actions are taken, we strive to relocate customers affected by such activities into other warehouses in our Global Warehousing network.
Previous wording
The following discussion represents our analysis of results of operations for the three and six months ended June 30, 2026 as compared to the three and six months ended June 30, 2025.
Current wording
The following discussion represents our analysis of results of operations for the three and nine months ended September 30, 2026 as compared to the three and nine months ended September 30, 2025.
Previous wording
Same warehouse storage revenues increased $1 million, or 0.2%, compared to the three months ended June 30, 2025, primarily driven by higher average occupancy, partially offset by unfavorable rates. Economic occupancy increased by 70 basis points, while same warehouse storage revenues per economic occupied pallet decreased (0.4)% compared to three months ended June 30, 2025.
Current wording
Same warehouse storage revenues decreased $4 million, or 0.8%, compared to the three months ended September 30, 2025, primarily driven by unfavorable rates, partially offset by higher average occupancy, particularly in international markets. Economic occupancy increased by 30 basis points, while same warehouse storage revenues per economic occupied pallet decreased 1.1% compared to the three months ended September 30, 2025.
Previous wording
Same warehouse services revenues increased $3 million, or 0.7%, compared to the three months ended June 30, 2025, primarily due to higher average rates and growth in international markets. Same warehouse services revenue per throughput pallet increased 2.1% compared to the three months ended June 30, 2025.
Current wording
Same warehouse services revenues increased $8 million, or 1.8%, compared to the three months ended September 30, 2025, primarily due to higher average rates and growth in international markets, partially offset by lower throughput in North America. Same warehouse services revenue per throughput pallet increased 2.1% compared to the three months ended September 30, 2025, while throughput pallets at our same warehouses decreased 1.1%.
Previous wording
Same warehouse cost of operations increased $14 million, or 2.5%, compared to the three months ended June 30, 2025, primarily driven by higher labor costs resulting from increases in wages for temporary contract labor, as well as warehouse services growth in international markets.
Current wording
Same warehouse cost of operations increased $19 million, or 3.4%, compared to the three months ended September 30, 2025, primarily driven by higher power costs due to increased rates and lower in-house solar power generation, higher labor costs resulting from increased wages for temporary contract labor, and higher costs associated with warehouse services growth in international markets.
Previous wording
Global Integrated Solutions segment revenues were $356 million for the three months ended June 30, 2026, a decrease of $24 million, or 6.3%, compared to $380 million for the three months ended June 30, 2025. The decrease was primarily driven by the divestiture of the Spain Transportation business, which occurred in August 2025, partially offset by higher transportation volumes. The foreign currency translation of revenues earned by our foreign operations had a $3 million favorable impact compared to the three months ended June 30, 2025.
Current wording
Global Integrated Solutions segment cost of operations was $296 million for the three months ended September 30, 2026, a decrease of $3 million, or 1.0%, compared to $299 million for the three months ended September 30, 2025. The decrease was primarily driven by the divestiture of our Spain Transportation business during the three months ended September 30, 2025, partially offset by higher transportation and logistics expenses reflecting higher oil prices and carrier rates, higher third-party labor costs, and higher transportation volumes. The foreign currency translation of cost of operations from our foreign operations did not have a material impact compared to the three months ended September 30, 2025.
Previous wording
Interest expense, net. We reported net interest expense of $87 million for the three months ended June 30, 2026, an increase of $20 million, or 29.9%, compared to $67 million for the three months ended June 30, 2025, primarily driven by a decrease in income generated from hedging instruments, the increase of average debt balances, and the extension of our debt maturity via the issuance of new senior unsecured notes in 2025. The impact driven by the aforementioned factors was partially offset by decreases in benchmark interest rates determining the interest rates on our variable-rate debt.
Current wording
Interest expense, net. We reported net interest expense of $92 million for the three months ended September 30, 2026, an increase of $24 million, or 35.3%, compared to $68 million for the three months ended September 30, 2025, primarily driven by a decrease in income generated from hedging instruments and the increase of average debt balances. The impact driven by the aforementioned factors was partially offset by decreases in benchmark interest rates determining the interest rates on our variable-rate debt.
Previous wording
The average effective interest rate of our outstanding debt was 4.3% for the three months ended June 30, 2026, the same as 4.3% for the three months ended June 30, 2025. The expiration of hedging instruments outstanding during the three months ended June 30, 2025, along with higher total borrowings between June 30, 2025 and June 30, 2026, have resulted in our current hedging instruments accounting for a reduced portion of overall borrowings. Additionally, the fixed rates at which our variable-rate borrowings are effectively locked in are higher under the current hedging instruments relative to the prior ones. When taking into account income generated from hedging instruments, the average effective interest rate of our outstanding debt was 4.2% for the three months ended June 30, 2026, an increase from 3.0% for the three months ended June 30, 2025. For additional information regarding our net interest expense, see Note 10, Interest expense in our condensed consolidated financial statements included in this Quarterly Report.
Current wording
The average effective interest rate on our outstanding debt was 4.4% for the three months ended September 30, 2026, an increase from 4.2% for the three months ended September 30, 2025. The expiration of hedging instruments outstanding during the three months ended September 30, 2025, along with higher total borrowings between September 30, 2025 and September 30, 2026, have resulted in our current hedging instruments accounting for a reduced portion of overall borrowings. Additionally, the fixed rates at which our variable-rate borrowings are effectively locked in are higher under the current hedging instruments relative to the prior ones. When taking into account income generated from hedging instruments, the average effective interest rate on our outstanding debt was 4.3% for the three months ended September 30, 2026, an increase from 3.0% for the three months ended September 30, 2025. For additional information regarding our net interest expense, see Note 10, Interest expense in our condensed consolidated financial statements included in this Quarterly Report.
Previous wording
Gain (loss) on foreign currency transactions, net. We did not recognize a significant gain (loss) on foreign currency transactions for the three months ended June 30, 2026, compared to a net gain of $26 million for the three months ended June 30, 2025. The decrease in gain on foreign currency exchange was due to movements in foreign currency exchange rates against the U.S. dollar, primarily driven by the euro.
Current wording
Gain (loss) on foreign currency transactions, net. We recognized a net gain of $3 million on foreign currency transactions for the three months ended September 30, 2026, compared to a net loss of $6 million for the three months ended September 30, 2025. The change from loss to gain on foreign currency transactions was due to movements in foreign currency exchange rates, primarily on the remeasurement of intercompany loans denominated in currencies other than the functional currency of the entity holding the loan, most notably the New Zealand dollar, British pound, and Norwegian krone.
Previous wording
Equity income (loss), net of tax. We did not recognize significant income (loss) from equity method investments for the three months ended June 30, 2026, compared to net income of $3 million for the three months ended June 30, 2025.
Current wording
Equity income (loss), net of tax. We recognized a net loss from equity method investments of $2 million for each of the three months ended September 30, 2026 and September 30, 2025, primarily related to our investment in Emergent Cold LatAm Holdings, LLC.
Previous wording
Income tax expense for the six months ended June 30, 2026 was $3 million, an increase of $2 million from an income tax expense of $1 million for the six months ended June 30, 2025. The tax expense in 2026 was principally the result of the tax-effect of pre-tax earnings in various jurisdictions, nondeductible expenses including stock-based compensation and interest expense, and financial statement losses for which no tax benefit was recognized. The tax expense in 2025 was principally created by the tax-effect of pre-tax earnings in various jurisdictions and nondeductible stock-based compensation, reduced by tax adjustments related to REIT activity. Our income taxes are discussed in more detail in Note 7, Income taxes to the condensed consolidated financial statements included in this Quarterly Report.
Current wording
Income tax expense for the three months ended September 30, 2026 was immaterial, compared to an income tax expense of $11 million for the three months ended September 30, 2025. The tax expense in 2026 and 2025 was principally the result of the tax-effect of pre-tax earnings in various jurisdictions, nondeductible expenses, including stock-based compensation and interest expense, and financial statement losses for which no tax benefit was recognized. The change in income tax expense between the periods is primarily due to the tax impact of goodwill impairments and stock-based compensation. Our income taxes are discussed in more detail in Note 7, Income taxes to the condensed consolidated financial statements included in this Quarterly Report.
Previous wording
Comparison of Results for the Six Months Ended June 30, 2026 and 2025
Current wording
Comparison of Results for the Nine Months Ended September 30, 2026 and 2025
Previous wording
Global Warehousing segment cost of operations was $1,259 million for the six months ended June 30, 2026, an increase of $72 million, or 6.1%, compared to $1,187 million for the six months ended June 30, 2025. The increase included a $54 million net increase in our non-same warehouse pool and an $18 million increase in our same warehouse pool, further discussed below. The foreign currency translation of cost of operations from our foreign operations had a $24 million unfavorable impact compared to the six months ended June 30, 2025.
Current wording
Global Warehousing segment cost of operations was $1,907 million for the nine months ended September 30, 2026, an increase of $91 million, or 5.0%, compared to $1,816 million for the nine months ended September 30, 2025. The increase included a $54 million net increase in our non-same warehouse pool, and a $37 million increase in our same warehouse pool, further discussed below. The foreign currency translation of cost of operations from our foreign operations had a $25 million unfavorable impact compared to the nine months ended September 30, 2025.
Previous wording
Global Warehousing segment NOI was $731 million for the six months ended June 30, 2026, an increase of $4 million, or 0.6%, compared to $727 million for the six months ended June 30, 2025. The net increase included a $17 million increase in our non-same warehouse pool, partially offset by a net decrease of $13 million in our same warehouse pool. The foreign currency translation from our foreign operations had a $12 million net favorable impact compared to the six months ended June 30, 2025.
Current wording
Global Warehousing segment NOI was $1,092 million for the nine months ended September 30, 2026, a decrease of $19 million, or 1.7%, compared to $1,111 million for the nine months ended September 30, 2025. The net decrease included a $26 million decrease in our same warehouse pool, partially offset by a $7 million net increase in our non-same warehouse pool. The foreign currency translation from our foreign operations had a $13 million net favorable impact compared to the nine months ended September 30, 2025.
Previous wording
Same warehouse storage revenues increased $10 million, or 1.1%, compared to the six months ended June 30, 2025, primarily driven by higher occupancy and increased rates. Economic occupancy increased by 30 basis points and same warehouse storage revenues per economic occupied pallet increased by 1.0% compared to the six months ended June 30, 2025.
Current wording
Same warehouse storage revenues increased $7 million, or 0.5%, compared to the nine months ended September 30, 2025, primarily driven by higher occupancy and increased rates. Economic occupancy increased by 30 basis points and same warehouse storage revenues per economic occupied pallet increased 0.3% compared to the nine months ended September 30, 2025.
Previous wording
Same warehouse services revenues decreased $5 million, or 0.6%, compared to the six months ended June 30, 2025, primarily driven by lower throughput volumes, partially offset by favorable rates. Throughput pallets at our same warehouses decreased 2.6%, while same warehouse services revenue per throughput pallet increased 1.3% compared to the six months ended June 30, 2025.
Current wording
Same warehouse services revenue per throughput pallet increased 1.6% compared to the nine months ended September 30, 2025, while throughput pallets at our same warehouses decreased 2.0%.
Previous wording
The following table presents the operating results for our non-same warehouses for the six months ended June 30, 2026 and 2025.
Current wording
The following table presents the operating results for our non-same warehouses for the nine months ended September 30, 2026 and 2025.
Previous wording
Non-same warehouse revenues increased $71 million, or 60.2%, compared to the six months ended June 30, 2025, including approximately $60 million from acquisitions and $29 million from recently completed greenfield and expansion projects, partially offset by a $13 million net decrease from other non-same warehouse sites and a $5 million decrease from divestitures.
Current wording
Non-same warehouse revenues increased $61 million, or 27.0%, compared to the nine months ended September 30, 2025, including approximately $57 million from acquisitions and $45 million from recently completed greenfield and expansion projects, partially offset by a $27 million net decrease from other non-same warehouse sites, primarily due to the impact of the June 2026 fire at our Los Angeles, California warehouse and lower revenues from idled and sold sites, and a $14 million decrease from divestitures.
Previous wording
Non-same warehouse cost of operations increased $54 million, or 66.7%, compared to the six months ended June 30, 2025, including approximately $42 million from acquisitions and $18 million from recently completed greenfield and expansion projects, partially offset by a $3 million net decrease from other non-same warehouse sites and a $3 million decrease from divestitures.
Current wording
Non-same warehouse cost of operations increased $54 million, or 34.4%, compared to the nine months ended September 30, 2025, including approximately $40 million from acquisitions and $31 million from recently completed greenfield and expansion projects, partially offset by a $10 million net decrease from other non-same warehouse sites, primarily due to the impact of the June 2026 fire at our Los Angeles, California warehouse and lower cost from idled and sold sites, and a $7 million decrease from divestitures.
Previous wording
Global Integrated Solutions segment revenues were $668 million for the six months ended June 30, 2026, a decrease of $60 million, or 8.2%, compared to $728 million for the six months ended June 30, 2025. The decrease was primarily due to the divestiture of the Spain Transportation business which occurred in August 2025, partially offset by higher transportation and foodservice volumes and rates. In addition, the foreign currency translation of revenues earned by our foreign operations had a $12 million favorable impact compared to the six months ended June 30, 2025.
Current wording
Global Integrated Solutions segment revenues were $1,020 million for the nine months ended September 30, 2026, a decrease of $72 million, or 6.6%, compared to $1,092 million for the nine months ended September 30, 2025. The decrease was primarily driven by the divestiture of our Spain Transportation business during the nine months ended September 30, 2025, partially offset by higher volumes and rates in our remaining transportation business. The foreign currency translation of revenues earned by our foreign operations had a $12 million favorable impact compared to the nine months ended September 30, 2025.
Previous wording
Global Integrated Solutions segment NOI was $61 million for the three months ended June 30, 2026, a decrease of $7 million, or 10.3%, compared to $68 million for the three months ended June 30, 2025. Foreign currency translation had a less than $1 million net favorable impact compared to the three months ended June 30, 2025.
Current wording
Global Integrated Solutions segment NOI was $174 million for the nine months ended September 30, 2026, a decrease of $16 million, or 8.4%, compared to $190 million for the nine months ended September 30, 2025. The decrease was primarily driven by a $7 million charge related to a preliminary legal settlement and higher transportation and logistics expenses reflecting increased oil prices and carrier rates. Foreign currency translation had a $1 million net favorable impact compared to the nine months ended September 30, 2025.
Previous wording
The following table presents other consolidated operating expense for the six months ended June 30, 2026 and 2025.
Current wording
The following table presents other consolidated operating expense for the nine months ended September 30, 2026 and 2025.
Previous wording
The following table presents other items of income and expense for the six months ended June 30, 2026 and 2025.
Current wording
The following table presents other items of income and expense for the nine months ended September 30, 2026 and 2025.
Previous wording
Interest expense, net. We reported net interest expense of $171 million for the six months ended June 30, 2026, an increase of $44 million, or 34.6%, compared to $127 million for the six months ended June 30, 2025, primarily driven by a decrease in income generated from hedging instruments, the increase of average debt balances, and the extension of our debt maturity via the issuance of new senior unsecured notes in 2025. The impact driven by the aforementioned factors was partially offset by decreases in benchmark interest rates determining the interest rates on our variable-rate debt.
Current wording
Interest expense, net. We reported net interest expense of $263 million for the nine months ended September 30, 2026, an increase of $68 million, or 34.9%, compared to $195 million for the nine months ended September 30, 2025, primarily driven by a decrease in income generated from hedging instruments and the increase of average debt balances. The impact driven by the aforementioned factors was partially offset by decreases in benchmark interest rates determining the interest rates on our variable-rate debt.
Previous wording
The average effective interest rate of our outstanding debt was 4.2% for the six months ended June 30, 2026, the same as 4.2% for the six months ended June 30, 2025. The expiration of hedging instruments outstanding during the six months ended June 30, 2025, along with higher total borrowings between June 30, 2025 and June 30, 2026, have resulted in our current hedged instruments accounting for a reduced portion of overall borrowings. Additionally the fixed rates at which our variable-rate borrowings are effectively locked in are higher under the current hedging instruments relative to the prior ones. When taking into account income generated from hedging instruments, the average effective interest rate of our outstanding debt was 4.1% for the six months ended June 30, 2026, an increase from 2.8% for the six months ended June 30, 2025. For additional information regarding our net interest expense, see Note 10, Interest expense in our condensed consolidated financial statements included in this Quarterly Report.
Current wording
The average effective interest rate on our outstanding debt was 4.3% for the nine months ended September 30, 2026, an increase from 4.2% for the nine months ended September 30, 2025. The expiration of hedging instruments outstanding during the nine months ended September 30, 2025, along with higher total borrowings between September 30, 2025 and September 30, 2026, have resulted in our current hedging instruments accounting for a reduced portion of overall borrowings. Additionally, the fixed rates at which our variable-rate borrowings are effectively locked in are higher under the current hedging instruments relative to the prior ones. When taking into account income generated from hedging instruments, the average effective interest rate on our outstanding debt was 4.2% for the nine months ended September 30, 2026, an increase from 2.9% for the nine months ended September 30, 2025. For additional information regarding our net interest expense, see Note 10, Interest expense in our condensed consolidated financial statements included in this Quarterly Report.
Previous wording
Gain (loss) on foreign currency transactions, net. We reported a net foreign currency exchange gain of $3 million for the six months ended June 30, 2026 compared to a net gain of $42 million for the six months ended June 30, 2025. The decrease in gain on foreign currency exchange was due to movements in foreign currency exchange rates against the U.S. dollar, primarily driven by the euro.
Current wording
Gain (loss) on foreign currency transactions, net. We reported a net foreign currency exchange gain of $6 million for the nine months ended September 30, 2026 compared to a net gain of $36 million for the nine months ended September 30, 2025. The decrease was due to movements in foreign currency exchange rates, primarily on the remeasurement of intercompany loans denominated in currencies other than the functional currency of the entity holding the loan, most notably the euro.
Previous wording
Equity income (loss), net of tax. We reported $3 million of net loss from equity method investments for the six months ended June 30, 2026, compared to a net loss of $1 million for the six months ended June 30, 2025. The net loss in both periods was primarily related to our investment in Emergent Cold LatAm Holdings, LLC.
Current wording
Equity income (loss), net of tax. We reported $5 million of net loss from equity method investments for the nine months ended September 30, 2026, compared to a net loss of $3 million for the nine months ended September 30, 2025. The net loss in both periods was primarily related to our investment in Emergent Cold LatAm Holdings, LLC.
Previous wording
Income tax benefit for the three months ended June 30, 2026 was $1 million, which represented a decrease of $6 million from an income tax benefit of $7 million for the three months ended June 30, 2025. The tax expense in 2026 and 2025 was principally the result of the tax-effect of pre-tax earnings in various jurisdictions, nondeductible expenses, including stock-based compensation and interest expense, and financial statement losses for which no tax benefit was recognized. The change in income tax benefit between the periods is primarily a result of the changes in pre-tax earnings between various tax filing groups. Our income taxes are discussed in more detail in Note 7, Income taxes to the condensed consolidated financial statements included in this Quarterly Report.
Current wording
Income tax expense for the nine months ended September 30, 2026 was $3 million, a decrease of $9 million from an income tax expense of $12 million for the nine months ended September 30, 2025. The tax expense in 2026 and 2025 was principally the result of the tax-effect of pre-tax earnings in various jurisdictions, nondeductible expenses including stock-based compensation and interest expense, and financial statement losses for which no tax benefit was recognized. The change in income tax expense between the periods is primarily due to the tax impact of goodwill impairments and stock-based compensation. Our income taxes are discussed in more detail in Note 7, Income taxes to the condensed consolidated financial statements included in this Quarterly Report.
Previous wording
The table below reconciles total segment NOI to net income (loss), which is the most directly comparable financial measure calculated in accordance with GAAP, in each case for the three and six months ended June 30, 2026 and 2025.
Current wording
The table below reconciles total segment NOI to net income (loss), which is the most directly comparable financial measure calculated in accordance with GAAP, in each case for the three and nine months ended September 30, 2026 and 2025.
Previous wording
The table below reconciles EBITDA, EBITDAre, and Adjusted EBITDA to net income (loss), which is the most directly comparable financial measure calculated in accordance with GAAP, in each case for the three and six months ended June 30, 2026 and 2025.
Current wording
The table below reconciles EBITDA, EBITDAre, and Adjusted EBITDA to net income (loss), which is the most directly comparable financial measure calculated in accordance with GAAP, in each case for the three and nine months ended September 30, 2026 and 2025.
Previous wording
We calculate core funds from operations, or Core FFO, as FFO adjusted for the effects of gain or loss on the sale of non-real estate assets, gain or loss on the destruction of property (net of insurance proceeds), finance lease ROU asset amortization real estate, impairments of goodwill and other non-real estate assets including intangible assets, acquisition, restructuring and other, other nonoperating income or expense, loss on debt extinguishment and modifications and the effects of gain or loss on foreign currency exchange. We also adjust for the impact attributable to non-real estate impairments on unconsolidated joint ventures and natural disaster. We believe that Core FFO is helpful to investors as a supplemental performance measure because it excludes the effects of certain items which can create significant earnings volatility, but which do not directly relate to our core business operations. We believe Core FFO can facilitate comparisons of operating performance between periods, while also providing a more meaningful predictor of future earnings potential.
Current wording
We calculate core funds from operations, or Core FFO, as FFO adjusted for the effects of gain or loss on the sale of non-real estate assets, gain or loss on the destruction of property (net of insurance proceeds), finance lease ROU asset amortization real estate, impairments of goodwill and other non-real estate assets, including intangible assets, technology transformation, acquisition, restructuring and other, other nonoperating income or expense, loss on debt extinguishment and modifications and the effects of gain or loss on foreign currency exchange. We also adjust for the impact attributable to non-real estate impairments on unconsolidated joint ventures and natural disaster. We believe that Core FFO is helpful to investors as a supplemental performance measure because it excludes the effects of certain items which can create significant earnings volatility, but which do not directly relate to our core business operations. We believe Core FFO can facilitate comparisons of operating performance between periods, while also providing a more meaningful predictor of future earnings potential.
Previous wording
The table below reconciles FFO, Core FFO, and Adjusted FFO to net income (loss), which is the most directly comparable financial measure calculated in accordance with GAAP, in each case for the three and six months ended June 30, 2026 and 2025.
Current wording
The table below reconciles FFO, Core FFO, and Adjusted FFO to net income (loss), which is the most directly comparable financial measure calculated in accordance with GAAP, in each case for the three and nine months ended September 30, 2026 and 2025.
Previous wording
As of June 30, 2026, we had $57 million of cash and cash equivalents and $1.5 billion available under our Revolving Credit Facility (net of outstanding standby letters of credit in the amount of $61 million, which reduce availability). We currently expect that our principal sources of funding will include:
Current wording
As of September 30, 2026, we had $58 million of cash and cash equivalents and $313 million available under our Revolving Credit Facility (net of outstanding standby letters of credit in the amount of $61 million, which reduce availability). We currently expect that our principal sources of funding will include:
Previous wording
The board of directors of the Company has declared a regular quarterly cash dividend of $0.5325 per share of common stock for the first and second quarters of 2026, which was an increase from $0.5275 per share of common stock in the prior year quarters. Each dividend is payable to shareholders of record as of the last day of the respective quarter and is paid in the subsequent month.
Current wording
The board of directors of the Company has declared a regular quarterly cash dividend of $0.5325 per share of common stock for the first three quarters of 2026, which was an increase from $0.5275 per share of common stock in the prior year quarters. Each dividend is payable to shareholders of record as of the last day of the respective quarter and is paid in the subsequent month.
Previous wording
Our credit loss expense related to customer receivables was immaterial for both the three and six months ended June 30, 2026 and 2025. As of June 30, 2026 and December 31, 2025, we maintained allowances for uncollectible balances of $10 million and $10 million, respectively, which we believed to be adequate.
Current wording
Our credit loss expense related to customer receivables was $3 million for the three months ended September 30, 2025 and $1 million and $5 million for the nine months ended September 30, 2026 and 2025, respectively. There was immaterial credit loss expense during the three months ended September 30, 2026. As of September 30, 2026 and December 31, 2025, we maintained allowances for uncollectible balances of $8 million and $10 million, respectively, which we believed to be adequate.
Previous wording
The following table sets forth our recurring maintenance capital expenditures for the three and six months ended June 30, 2026 and 2025.
Current wording
The following table sets forth our recurring maintenance capital expenditures for the three and nine months ended September 30, 2026 and 2025.
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Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Additionally, in certain markets we employ drivers and operate assets to serve our customers. Costs to operate these assets include wages (excluding stock-based compensation), fuel, tolls, insurance, and maintenance.
Current report — wording carried from elsewhere
For further information related to the Kennewick, Washington and Los Angeles, California warehouse fires, see Note 15, Commitments and contingencies in our condensed consolidated financial statements included in this Quarterly Report.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
In 2025, the Operating Partnership and Lineage Europe Finco B.V. issued senior notes (“New Senior Unsecured Notes”) which were fully and unconditionally guaranteed by Lineage, Inc., the Operating Partnership, Lineage Europe Finco B.V., Lineage