Is Lineage Stock a Buy? Pennington Partners Opens New $3 Million Position in the Company

Pennington Partners & Co., LLC disclosed a new stake in Lineage (NASDAQ:LINE), adding 74,370 shares, a position valued at approximately $2.91 million, per Nov. 14, 2025, filings.

What happened

Pennington initiated a new position in Lineage, according to a Securities and Exchange Commission (SEC) filing dated Nov. 14, 2025.

The fund reported ownership of 74,370 shares valued at $2.91 million as of Sept. 30, 2025.

This new position accounts for 1.38% of the firm’s reportable U.S. equity assets, with total 13F assets under management reported at $210.93 million across 89 positions.

What else to know

This is a new position for the fund, representing 1.38% of reportable assets under management as of Sept. 30, 2025, and placing it outside the fund’s top five holdings.

Pennington's top holdings after the filing:

1. Vanguard Total Stock Market Index ETF: (NYSEMKT:VTI): $53.21 million (25.2% of AUM)
2. iShares Russell 3000 ETF: (NYSEMKT:IWV): $36.95 million (17.5% of AUM)
3. Alpha Architect 1-3 Month Box ETF: (NYSEMKT:BOXX): $27.26 million (12.9% of AUM)
4. Vanguard Russell 3000 Index ETF: (NASDAQ:VTHR): $13.61 million (6.5% of AUM)
5. iShares Core S&P Total U.S. Stock Market ETF: (NYSEMKT:ITOT): $4.81 million (2.3% of AUM)

As of Nov. 25, 2025, shares of Lineage were priced at $35.66, down 44% over the past year, underperforming the S&P 500 by 58 percentage points.

Company Overview

Company Snapshot

Lineage:

• Provides temperature-controlled warehousing and integrated cold-chain logistics solutions through its Global Warehousing and Global Integrated Solutions segments.
• Operates a real estate investment trust (REIT) business model, generating revenue from leasing industrial properties and offering specialized cold-chain services.
• Serves food producers, distributors, and retailers requiring reliable temperature-controlled storage and supply chain management.

Lineage is a leading REIT focused on temperature-controlled warehousing and logistics, with a significant presence in the industrial real estate sector.

The company leverages scale and integrated solutions to address complex cold-chain requirements for major food and retail clients. Its strategic positioning in the supply chain supports consistent demand for its specialized services.

Foolish take

Pennington Partners' initial purchase of Lineage is noteworthy to investors for several reasons.

First, the cold storage REIT immediately becomes Pennington's largest stock holding -- even though it only equals 1.4% of AUM. Only the firm's broader ETF holdings are larger than Lineage's position.

Second, transitioning from not owning the company to making it the firm's largest individual stock position is a clear indication that Pennington genuinely likes the newly public company. After Lineage went public in 2024 at around $80 per share, the firm is opportunistically "buying the dip" on the REIT following its 50% drop -- and I think they may be right in doing so.

Lastly -- and from a Foolish perspective -- there's a lot to like about Lineage for the long haul.

The company is a leader in its temperature-controlled warehousing and cold-storage logistics niche, operating in an industry that is expected to grow in importance over time.

While the REIT's net income remains negative, it has generated $884 million in cash from operations and $1.1 billion in EBITDA over the last year. Compared to its enterprise value of $17 billion, Lineage isn't outrageously priced after its hefty drawdown -- especially considering its essential offerings.

Furthermore, if Lineage wasn't investing heavily on capital expenditures to build out its vast logistical network, it would be generating ample free cash flow.

Though the company's 6.3% dividend yield is a bit at risk unless the company reins in its capex spending and its debt, its future should remain bright regardless, and I like Pennington's purchase here if they hold for the long term.

Glossary

13F reportable assets: Assets that institutional investment managers must disclose quarterly to the SEC on Form 13F.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Position: The amount of a particular security or asset owned by an investor or fund.
Real estate investment trust (REIT): A company that owns, operates, or finances income-producing real estate and distributes most income as dividends.
Dividend yield: A financial ratio showing how much a company pays in dividends each year relative to its share price.
Cold-chain logistics: The transportation and storage of temperature-sensitive products through a supply chain using refrigerated facilities.
Integrated solutions: Combined services or products designed to address multiple client needs within a single offering.
Top holdings: The largest investments in a fund's portfolio, typically ranked by market value.
Market capitalization: The total value of a company's outstanding shares, calculated as share price times shares outstanding.
TTM: The 12 months ending with the most recent quarterly report.
Industrial properties: Real estate used for manufacturing, storage, or distribution of goods, such as warehouses and logistics centers.
Supply chain management: The coordination and oversight of sourcing, production, and delivery of products from origin to consumer.

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard Total Stock Market ETF. The Motley Fool has a disclosure policy.