Domain: Finance
Question:
Help me prepare for the Lineage, Inc. 1Q25 earnings deck. Produce a variance analysis that explains same-warehouse performance year-over-year (1Q25 vs 1Q24) and quantifies rate and volume effects on earnings. Reconcile 1Q25 and 1Q24 revenue, expenses, and NOI to Total Warehouse and consolidated Adj. EBITDA, and end with a guidance call for full-year FY2025.

Build 1Q25 and 1Q24 revenue and expense bridges for the same-warehouse cohort. Split revenue into Rent & Storage and Services. Decompose expenses into Power, Labor, and Other Warehouse Costs. Show Total NOI and NOI margin based on revenue and expenses previously calculated. Attribute revenue changes using the midpoint method and state explicitly that this is midpoint attribution. Limit attribution to four drivers only: economic occupancy, rent per economic pallet, throughput pallets, and services rate per throughput pallet, with “other revenue” as residual. Quantify each driver’s dollar impact and percentage share of the total change. Reconcile 1Q25 and 1Q24 revenue and expense bridges to Total Warehouse by adding non-same warehouse effects. Provide a reconciliation of the bridges to consolidated Adj. EBITDA including Corporate/Other for 1Q25 and 1Q24.

Assumptions: dollars rounded to millions, per-unit as $ per pallet, pallet counts in millions, percentage changes to one decimal, margin moves in basis points, bridges must tie to reported variances within +/- $1, any plug <=$2 must be explained. Deliver a 150–200 word narrative that cites figures, along with a thorough variance analysis. Provide a one-paragraph guidance decision (maintain or lower) with two decisive indicators, and footnotes with dated citations for reference.

Expected points in a correct answer:
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Same Warehouse Total Revenue was ($38) million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Same Warehouse Total Revenue was (4.2%)
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Same Warehouse Rent & Storage Revenue was ($27) million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Same Warehouse Rent & Storage Revenue was (5.6%)
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Same Warehouse Services Revenue was ($11) million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Same Warehouse Services Revenue was (2.6%)
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Same Warehouse Total Expenses was ($9) million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Same Warehouse Total Expenses was (1.6%)
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Same Warehouse Power was $0 million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Same Warehouse Power was 0.0%
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Same Warehouse Labor was ($5) million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Same Warehouse Labor was (2.4%)
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Same Warehouse Other Warehouse Costs was ($4) million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Same Warehouse Other Warehouse Costs was (2.4%)
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Same Warehouse NOI was ($29) million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Same Warehouse NOI was (7.9%)
Identifies 1Q25 Same Warehouse NOI Margin of 38.5%
Identifies 1Q24 Same Warehouse NOI Margin of 40.1%
Calculates the difference between 1Q25 and 1Q24 Same Warehouse NOI Margin as (157 bps)
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Non-Same Warehouse Total Revenue was $13 million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Non-Same Warehouse Total Revenue was 23.2%
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Non-Same Warehouse Rent & Storage Revenue was $2 million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Non-Same Warehouse Rent & Storage Revenue was 6.1%
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Non-Same Warehouse Services Revenue was $11 million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Non-Same Warehouse Services Revenue was 47.8%
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Non-Same Warehouse Total Expenses was $9 million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Non-Same Warehouse Total Expenses was 24.3%
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Non-Same Warehouse Power was $0 million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Non-Same Warehouse Power was 66.7%
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Non-Same Warehouse Labor was $7 million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Non-Same Warehouse Labor was 38.9%
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Non-Same Warehouse Other Warehouse Costs was $0 million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Non-Same Warehouse Other Warehouse Costs was 0.0%
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Non-Same Warehouse NOI was $4 million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Non-Same Warehouse NOI was 21.1%
Identifies 1Q25 Non-Same Warehouse NOI Margin of 33.3%
Identifies 1Q24 Non-Same Warehouse NOI Margin of 33.9%
Calculates the difference between 1Q25 and 1Q24 Non-Same Warehouse NOI Margin as (60 bps)
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Total Warehouse Total Revenue was ($25) million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Total Warehouse Total Revenue was (2.6%)
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Total Warehouse Rent & Storage Revenue was ($25) million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Total Warehouse Rent & Storage Revenue was (2.6%)
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Total Warehouse Services Revenue was $0 million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Total Warehouse Services Revenue was 0%
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Total Warehouse Total Expenses was $0 million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Total Warehouse Total Expenses was 0.0%
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Total Warehouse Power was $2 million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Total Warehouse Power was 4.3%
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Total Warehouse Labor was $2 million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Total Warehouse Labor was 0.6%
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Total Warehouse Other Warehouse Costs was ($4) million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Total Warehouse Other Warehouse Costs was (2.2%)
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Total Warehouse NOI was ($25) million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Total Warehouse NOI was (6.5%)
Identifies 1Q25 Total Warehouse NOI Margin of 38.1%
Identifies 1Q24 Total Warehouse NOI Margin of 39.7%
Calculates the difference between 1Q25 and 1Q24 Total Warehouse NOI Margin as (160 bps)
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Global Integrated Solutions Total Revenue was ($11) million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Global Integrated Solutions Total Revenue was (3.1%)
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Global Integrated Solutions Total Expenses was ($9) million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Global Integrated Solutions Total Expenses was (3.0%)
Identifies the 1Q25 vs. 1Q24 year-over-year dollar change for Global Integrated Solutions Total NOI was ($2) million
Identifies the 1Q25 vs. 1Q24 year-over-year percentage change for Global Integrated Solutions Total NOI was (3.4%)
Identifies 1Q25 Global Integrated Solutions NOI Margin of 16.4%
Identifies 1Q24 Global Integrated Solutions NOI Margin of 16.4%
Calculates the difference between 1Q25 and 1Q24 NOI Margin as (6 bps)
Identifies 1Q25 Adj. EBITDA $304 million
Identifies 1Q24 Adj. EBITDA of $327 million
Calculates the 1Q25 vs. 1Q24 year-over-year dollar change for Adj. EBITDA was ($23) million
Calculates the 1Q25 vs. 1Q24 year-over-year percentage change for Adj. EBITDA was (7.0%)
Identifies 1Q25 Adj. EBITDA Margin of 23.5%
Identifies 1Q24 Adj. EBITDA Margin of 24.6%
Calculates the difference between 1Q25 and 1Q24 Adj. EBITDA Margin as (109 bps)
Identifies 1Q25 Same Warehouse Economic Pallets as 7487
Identifies 1Q24 Same Warehouse Economic Pallets as 7671
Identifies 1Q24 Same Warehouse Rent & Storage per Economic Pallet as $63.00
Calculates how much 1Q25 Same Warehouse change in revenue is from Occupancy of 30.5%
Identifies 1Q25 Same Warehouse Rent & Storage Revenue per Economic Pallet as $60.88
Calculates how much 1Q25 Same Warehouse change in revenue is from Rent & Storage rate as 42.8%
Identifies 1Q25 Same Warehouse Throughput Pallets as 11894
Identifies 1Q24 Same Warehouse Throughput Pallets as 12109
Identifies 1Q24 Same Warehouse Services Revenue per Throughput Pallet as $32.54
Calculates how much 1Q25 Same Warehouse change in revenue is from throughput pallets of 18.4%
Identifies 1Q25 Same Warehouse Services Revenue per Throughput Pallet as $32.06
Calculates how much 1Q25 Same Warehouse change in revenue is from Services rate as 15.3%
Calculates the remaining explanation for the change in Same Warehouse Revenue as 7%
Provides a one-paragraph guidance decision (maintain or lower FY2025) supported by at least two decisive indicators from reported results (e.g., NOI decline, margin compression, occupancy trends, etc.).