Sometimes boring is sexy.
This pitch deck --> largest REIT IPO (ever) & largest IPO of 2024
Never heard of Lineage? You're not alone.
---- Early July 2024 ----
About a month ago...
Bill Ackman, the billionaire hedge fund manager with 1.3 million Twitter followers, announced he wanted to raise $25 billion by IPO'ing a hedge fund-like equity vehicle. Earlier this week, he dropped the expected raise to $2 billion.
Also about a month ago...
Two ex-investment bankers and a logistics management team launched the roadshow for their cold storage company's IPO. They were targeting the largest REIT IPO of all time and would use proceeds to pay down debt.
Fast forward a few weeks...
Ackman pulled his hedge fund-ish IPO a few days ago, while those boring cold storage guys leap-frogged the next largest cold storage operator, re-capitalized their $25 billion portfolio at a sub-6% cap rate, and raised nearly $1.5 billion more than expected.
Again, sometimes boring is sexy.
---- About Lineage ----
-- Owns temp-controlled warehouses all over the world
-- Seed portfolio: 84 million square feet, 3 billion cubic feet
-- 13K+ customers
-- Started in 2007 with one Seattle warehouse
-- Largest client relationships in 7 countries
---- Investor interest ----
-- $3.6 billion targeted raise
-- $5.0 billion actual raise
---- Valuation ----
-- $30 billion enterprise value
-- Positioned to grow NOI by 5% to 10% per year
-- 5.5% to 6.0% cap rate
-- Continues to pay down heavy debt load
-- May try to tap REIT bond market later in 2024
---- Leadership ----
-- Co-exec chairmen founded the sponsor in 2008
-- Previously Morgan Stanley i-bankers
-- CEO has led LINE since 2015
-- Deep logistics experience
-- Insiders control 70-80% of total shares
-- Locked up for six months
You buying?
Ps -- As always, we don't offer investment advice.
Read the full Lineage Roadshow Presentation here.
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