Lineage Inc. REIT Raises $4.4 Billion In The Biggest IPO Of 2024

Real Estate Investment Trusts (REITs) were all the rage on Wall Street after Lineage Inc. REIT LINE raised $4.4 billion and achieved an "implied valuation" of $18 billion in what was 2024's biggest IPO to date. Lineage offered 57 million shares at $78 each, which is on the high side of the $70-$82 that industry insiders expected. Trading was brisk initially, and the shares were up 3% when the market closed.

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To call this IPO successful would be an understatement. Not only is it the largest IPO of this year to date, but it's also the biggest since chipmaker ARM Holdings PLC’s $4.8 billion IPO last September. Benzinga looks at Lineage Inc. and why so many investors are bullish on this REIT.

What is Lineage Inc.?

Lineage Inc. is the largest temperature-controlled warehouse REIT in the world. According to CNBC, it controls 2.9 billion cubic feet of temperature-controlled warehouse space in 480 facilities in America, Europe, and Asia. The size and scope of its operations allow it to provide food suppliers with an integrated network of cold-storage facilities in many of the world's most lucrative consumer markets.

The fact that Lineage Inc. plays such a vital role in the global food chain helps explain why investors love this stock. Simply put, Lineage Inc. helps keep the food in the global supply chain fresh while the products go from the farm to the supermarket. It also helps the environment by minimizing food waste, which contributes to carbon emissions as it decomposes.

Reducing food waste is also a priority for food suppliers and their clients. A report from shipping and logistics resources company McKinsey and Company estimates that almost $600 billion of harvested food goes to waste on the farm during or after the harvest. They also estimate that roughly 1/3 of the world's food supply is lost to waste every year. Lineage Inc.'s global cold-storage networks have the potential to ease that crisis.

Lineage Inc. may have just become known to the public, but it has positioned itself as a leader in this sector for quite some time. This REIT has been aggressively acquiring other, smaller operations, and now that effort is beginning to bear fruit.

Lineage Inc. co-founder and co-executive chairman Adam Forste spoke about his company in an appearance on CNBC's Squawk Box before the markets opened. Forste said, "We started with one warehouse, and we've done 116 acquisitions to turn Lineage into what it is today. So many families who we've bought companies from rolled equity into Lineage as part of their transaction, so they're celebrating here today with us as well."

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Is Lineage Inc. Right For You?

Lineage Inc. had a historic IPO, which speaks to investors’ belief that it provides a service that is critically important to the global food chain. That helps explain why heavy hitters like Morgan Stanley, J.P. Morgan, and Wells Fargo (among others) were involved with underwriting Lineage's IPO. At a minimum, that would seem to suggest Lineage Inc. is worthy of any REIT investor's consideration.

Just keep in mind that every investment does carry an element of risk. Before investing in Lineage Inc. or any other offering, it's critical to completely understand these risks and be clear-eyed that loss is an ever-present possibility. If you are comfortable with the potential downside, Lineage Inc. certainly has the potential to be a quality addition to your portfolio.

Looking For Higher-Yield Opportunities?

The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks… Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider. 

For instance, the Ascent Income Fund from EquityMultiple targets stable income from senior commercial real estate debt positions and has a historical distribution yield of 12.1% backed by real assets. With payment priority and flexible liquidity options, the Ascent Income Fund is a cornerstone investment vehicle for income-focused investors. First-time investors with EquityMultiple can now invest in the Ascent Income Fund with a reduced minimum of just $5,000. Benzinga Readers: Earn a 1% return boost on your first EquityMultiple investment when you sign up here (accredited investors only).

Don't miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga's favorite high-yield offerings. 

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