Temperature-controlled warehouse operator Lineage Inc. reports lower occupancy due to high food prices and tariff uncertainty, impacting customer inventories. The company adjusts full-year outlook with demand stagnant. Lineage posts a headline net loss of $7 million in Q2, with AFFO of 81 cents per share, up 6 cents y/y. Consolidated net revenue rises 1% y/y to $1.35 billion. Pallets processed decline 3% y/y, with storage revenue per pallet slightly up. Physical occupancy at 74.6%, down 230 bps y/y.

CEO Greg Lehmkuhl cites muted seasonal inventory levels in Q2 and Q3, prompting lowering of outlook for the year. Full-year 2025 AFFO guidance reduced by 20 cents per share. Management notes seasonal improvement in demand but at a slower pace. Revenue per pallet increases by 5% sequentially.

Lineage management sees pricing environment as competitive but stable, with a 5% sequential increase in revenue per pallet. Focus remains on revenue growth and optimizing labor productivity. Lineage operates 485 facilities with 3.1 billion cubic feet of space across North America, Europe, and Asia-Pacific. Services include freight forwarding, customs brokerage, drayage, and truck transportation.

Read more at Yahoo Finance: Lineage says high food prices weighing on warehouse occupancy