Cold storage giant Lineage reveals core income growth in US IPO filing

(Reuters) -Cold storage giant Lineage recorded an 8.5% jump in funds from operations (FFO) in 2023, the real estate investment trust revealed on Wednesday in its paperwork for an initial public offering in the U.S., as new listings gather momentum.

U.S. IPO market activity hit a two-year high in the second quarter, data from IPO research firm Renaissance Capital showed, with cruise operator Viking and safety testing firm UL Solutions making blockbuster debuts.

Lineage, backed by private-equity firm Bay Grove Capital, did not disclose the size of its common stock offering in its filing with the U.S. Securities and Exchange Commission.

The company's FFO, a key performance measure for real estate investment trust (REITs), rose to $248.5 million in 2023, from $229.1 million a year earlier.

Total revenue came in at $5.34 billion, up from $4.93 billion in 2022. Meanwhile, net loss widened to $96.2 million from $76 million.

The temperature-controlled warehouse operator partners with food and beverage companies for the storage, handling and movement of food around the world.

The company, previously known as Lineage Logistics, was founded in 2008 by former Morgan Stanley analysts Adam Forste and Kevin Marchetti.

Novi, Michigan-based Lineage, whose closest rivals include Americold and NewCold, has a portfolio of 482 warehouses comprising 3 billion cubic feet of capacity.

The IPO proceeds will be used to pay down debt, the company said.

Bay Grove will continue to own a majority of the voting power after the IPO.

Lineage expects to list on the Nasdaq Global Select Market under the symbol "LINE".

Morgan Stanley, Goldman Sachs, BofA Securities, J.P. Morgan Securities and Wells Fargo Securities are leading a consortium of more than two dozen underwriters for the IPO.

KKR Capital Markets is acting as the lead financial adviser for the offering.

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shailesh Kuber and Sriraj Kalluvila)