Let me begin by saying I never thought I’d find myself writing about refrigeration units. But here we are, poring over SEC filings like it’s a particularly tedious family reunion. Darlington Partners Capital Management, bless their cotton socks, recently added 1.6 million shares of Lineage to their portfolio. That’s $44.8 million in new money, folks. I can already hear my mother’s voice: “Darling, did you know there’s a market for frozen peas?”
What Happened
Third quarter updates, everyone. Darlington, that ever-enthusiastic California-based fund, now owns 5.1 million shares of Lineage-worth a tidy $198.3 million. That’s 6.7% of their $3 billion reportable U.S. equity assets. I’m not sure if this makes them a “belly of the beast” kind of investor or just someone who’s really into ice cubes. Either way, they’ve got a knack for betting on things that sound like they belong in a middle-school science fair. “Temperature-controlled warehousing,” you say? Sounds like a recipe for a lukewarm cup of coffee.
What Else to Know
Their top holdings? Warner Music, Four Corners, Salesforce, TPG, and TKO. It’s like a playlist for a very specific kind of insomnia. Lineage’s stock, meanwhile, has taken a nosedive-down 47% year-over-year. I can only imagine the CEO’s morning routine: a stiff drink and a spreadsheet. Meanwhile, the S&P 500 is sipping champagne. Such is life.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $5.4 billion |
| Net Income (TTM) | ($177 million) |
| Dividend Yield | 6.3% |
| Price (as of market close Monday) | $33.66 |
Company Snapshot
- Lineage provides temperature-controlled warehousing and integrated cold-chain logistics solutions. Think of it as the Marie Kondo of frozen vegetables-except the clients are multinational corporations and the mess is global.
- As an industrial REIT, they lease storage facilities and offer logistics services. If this sounds like the kind of business that thrives during a heatwave, you’re not wrong.
- Their customers? Food producers, distributors, and retailers. In other words, anyone who’s ever panicked about the milk in the back of the fridge.
Lineage’s scale is impressive, but their recent earnings report reads like a Shakespearean tragedy. Revenue rose 3.1% to $1.38 billion, and adjusted EBITDA climbed 2.4% to $341 million. Management reaffirmed full-year guidance-just barely. It’s the financial equivalent of walking a tightrope in flip-flops.
Foolish Take
Darlington’s move feels less like a gamble and more like a bet against the odds. They’ve previously doubled down on Shift4, another struggling stock. There’s a certain charm in betting on the underdog, even if the underdog is a company that deals in frozen turkeys. Lineage’s post-IPO drop-nearly 50%-has created a dislocation that Darlington loves to exploit. After all, what’s more American than turning a loss into a long-term investment?
Glossary
13F reportable assets: Mandatory disclosures for institutional managers. Think of it as the SEC’s version of a grocery list.
AUM (Assets Under Management): The total value of investments managed. A number that makes your ex’s net worth look modest.
Dividend yield: Annual dividend divided by stock price. A percentage that often makes you question your life choices.
Trailing twelve months (TTM): A 12-month period ending with the latest quarterly report. A time frame that feels both endless and fleeting.
Net loss: When expenses exceed revenue. A feeling familiar to anyone who’s ever bought a “last-minute” Black Friday deal.
REIT: A company that owns income-producing real estate. Often the reason why your rent keeps going up.
Cold-chain logistics: Refrigerated storage and transport. The unsung hero of every supermarket’s perishable section.
Integrated solutions: Services designed to work together. A term that sounds impressive until you realize it’s just a fancy word for “this works.”
CAGR: Average annual growth rate. A number that makes you wonder if your investments are even trying.
Top holdings: Largest investments in a fund’s portfolio. A list that might as well be hieroglyphics to the uninitiated.
Industrial REIT: A REIT focused on warehouses and distribution centers. A business model that thrives in a world of e-commerce and impatience.
Reportable U.S. equity assets: Investments that must be disclosed. A requirement that feels like being asked to share your dessert menu at Thanksgiving.
There’s a peculiar comfort in watching others make big bets. Like observing a neighbor water their ficus with a firehose. You cringe, you laugh, and you secretly hope they don’t drown the plant. Lineage’s story is one of resilience, or at least stubbornness. Whether it’s a long-term winner remains to be seen. But for now, I’ll take my seat in the front row, popcorn in hand. 🍿
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2025-11-18 16:30