Lineage revenue edges up as margin expansion offsets AFFO decline

Lineage (NASDAQ:LINE), the dominant player in the global temperature-controlled warehouse sector, reported a period of stable revenue and margin growth for the first quarter of 2026.

The results reflect the company’s ability to extract operational efficiencies from its massive logistics network even as broader real estate investment trust (REIT) metrics faced some downward pressure.

Total revenue for the quarter reached $1,297 million, a modest 0.4% increase compared to the same period in 2025.

On a GAAP basis, the company reported a net loss of $51 million, or $0.18 per diluted common share.

However, operational performance remained resilient; adjusted EBITDA rose 3.3% to $314 million.

This improvement was supported by a 70-basis-point expansion in the adjusted EBITDA margin, which reached 24.2%, suggesting successful cost-management initiatives across its global footprint.

The company’s primary cash flow metric, Adjusted Funds From Operations (AFFO), saw a contraction during the quarter.

AFFO decreased 8.2% to $201 million, resulting in $0.78 per share—a 9.3% decline year-over-year.

Despite the dip in AFFO, Lineage signaled confidence in its long-term cash generation by increasing its payout to investors.

The Board of Directors declared a quarterly dividend of $0.5325 per share.

This move raises the annualized dividend rate to $2.13 per share, representing a 1% increase over the previous rate.