Highlights
- Reported rental revenue of $16.9 million, a 22% increase year-over-year;
- Net income attributable to common unitholders of $0.12 and FFO of $0.35 per diluted unit for the quarter ended December 31, 2020;
- Record AFFO of $0.38 per diluted unit for the quarter ended December 31, 2020, a 12% increase year-over-year;
- Net income attributable to common unitholders of $0.65, FFO of $0.84 and AFFO of $1.36 per diluted unit for the full year ended December 31, 2020;
- In the full year 2020, acquired 15 assets for total consideration of approximately $148 million;
- As of January 31st, deployed 138 digital kiosks within the Dallas Area Rapid Transit (“DART”) network; and
- Announced a quarterly distribution of $0.20 per common unit.
Fourth Quarter 2020 Results
Rental revenue for the quarter ended December 31, 2020 was $16.9 million, an increase of 22% compared to the fourth quarter of 2019. Net income attributable to common unitholders per diluted unit in the fourth quarter of 2020 was $0.12, compared to a loss of $0.08 in the fourth quarter of 2019. FFO for the fourth quarter of 2020 was $0.35 per diluted unit, compared to $0.18 in the fourth quarter of 2019. AFFO per diluted unit, which excludes certain items including unrealized gains and losses on our interest rate hedges and foreign currency transaction gains and losses, was $0.38 in the fourth quarter of 2020 compared to $0.34 in the fourth quarter of 2019.
For the full year ended December 31, 2020, the Partnership reported rental revenue of $58.8 million compared to $53.7 million during the full year ended December 31, 2019. For the full year ended December 31, 2020, we generated net income of $29.1 million compared to $21.6 million during the full year ended December 31, 2019. Net income attributable to common unitholders for the full year ended December 31, 2020 was $0.65 per diluted unit compared to $0.33 per diluted unit for the full year ended December 31, 2019. For the full year ended December 31, 2020, we generated FFO of $0.84 per diluted unit and AFFO of $1.36 per diluted unit, compared to FFO of $0.58 per diluted unit and AFFO of $1.31 per diluted unit during the full year ended December 31, 2019.
“Despite the challenges in 2020 stemming from the global pandemic our portfolio proved resilient and we delivered significant growth year over year,” said Tim Brazy, Chief Executive Officer of the Partnership’s general partner. “Growth was generated organically from the portfolio as well as through redeploying capital from the disposition of our European joint venture. We ended 2020 with a more diverse revenue base, stronger distribution coverage and we believe we are positioned well to drive further growth in 2021.”
Quarterly Distributions
On January 22, 2021, the Board of Directors of the Partnership’s general partner declared a distribution of$0.20 per common unit, or$0.80per common unit on an annualized basis, for the quarter ended December 31, 2020. The distribution was paid on February 12, 2021 to common unitholders of record as of February 2, 2021.
On January 21, 2021, the Board of Directors of the Partnership’s general partner declared a quarterly cash distribution of $0.4375 per Series C preferred unit, which was paid on February 16, 2021 to Series C preferred unitholders of record as of February 1, 2021.
On January 21, 2021, the Board of Directors of the Partnership’s general partner declared a quarterly cash distribution of $0.49375 per Series B preferred unit, which was paid on February 16, 2021 to Series B preferred unitholders of record as of February 1, 2021.
OnDecember 22, 2020, the Board of Directors of the Partnership’s general partner declared a quarterly cash distribution of $0.5000 per Series A preferred unit, which was paid on January 15, 2021 to Series A preferred unitholders of record as of January 4, 2021.
Capital and Liquidity
As of December 31, 2020, the Partnership had $214 million of outstanding borrowings under its revolving credit facility (the “Facility”), and approximately $236 million of undrawn borrowing capacity under the Facility, subject to compliance with certain covenants.
Recent Acquisitions
In the full year 2020, the Partnership acquired a total of 15 assets for total consideration of approximately $148 million. The acquisitions were immediately accretive to AFFO and funded primarily with borrowings under the Partnership’s existing credit facility.
At-The-Market (“ATM”) Equity Programs
Through its At-The-Market (“ATM”) issuance programs, the Partnership issued 109,724 common units, 66,802 Series A preferred units and 84,139 Series B preferred units for gross proceeds of approximately $5.6 million for the full year 2020.
Conference Call Information
The Partnership will hold a conference call on Wednesday, February 24, 2021, at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time) to discuss its fourth quarter 2020 financial and operating results. The call can be accessed via a live webcast at https://edge.media-server.com/mmc/p/udcn6ph8, or by dialing 877-930-8063 in the U.S. and Canada. Investors outside of the U.S. and Canada should dial 253-336-7764. The passcode for both numbers is 3174946.
A webcast replay will be available approximately two hours after the completion of the conference call through February 24, 2022 at https://edge.media-server.com/mmc/p/udcn6ph8. The replay is also available through March 5, 2021 by dialing 855-859-2056 or 404-537-3406 and entering the access code 3174946.
About Landmark Infrastructure Partners LP
The Partnership owns and manages a portfolio of real property interests and infrastructure assets that the Partnership leases to companies in the wireless communication, digital infrastructure, outdoor advertising and renewable power generation industries.
Non-GAAP Financial Measures
FFO, is a non-GAAP financial measure of operating performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. We calculate FFO in accordance with the standards established by the National Association of Real Estate Investment Trust (“NAREIT”). FFO represents net income (loss) excluding real estate related depreciation and amortization expense, real estate related impairment charges, gains (or losses) on real estate transactions, adjustments for unconsolidated joint venture, and distributions to preferred unitholders and noncontrolling interests.
FFO is generally considered by industry analysts to be the most appropriate measure of performance of real estate companies. FFO does not necessarily represent cash provided by operating activities in accordance with GAAP and should not be considered an alternative to net earnings as an indication of the Partnership’s performance or to cash flow as a measure of liquidity or ability to make distributions. Management considers FFO an appropriate measure of performance of an equity REIT because it primarily excludes the assumption that the value of the real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure. The Partnership’s computation of FFO may differ from the methodology for calculating FFO used by other equity REITs, and therefore, may not be comparable to such other REITs.
Adjusted Funds from Operations (“AFFO”) is a non-GAAP financial measure of operating performance used by many companies in the REIT industry. AFFO adjusts FFO for certain non-cash items that reduce or increase net income in accordance with GAAP. AFFO should not be considered an alternative to net earnings, as an indication of the Partnership’s performance or to cash flow as a measure of liquidity or ability to make distributions. Management considers AFFO a useful supplemental measure of the Partnership’s performance. The Partnership’s computation of AFFO may differ from the methodology for calculating AFFO used by other equity REITs, and therefore, may not be comparable to such other REITs. We calculate AFFO by starting with FFO and adjusting for general and administrative expense reimbursement, acquisition-related expenses, unrealized gain (loss) on derivatives, straight line rent adjustments, unit-based compensation, amortization of deferred loan costs and discount on secured notes, deferred income tax expense, amortization of above and below market rents, loss on early extinguishment of debt, repayments of receivables, adjustments for investment in unconsolidated joint venture, adjustments for drop-down assets and foreign currency transaction gain (loss). The GAAP measures most directly comparable to FFO and AFFO is net income.
We define EBITDA as net income before interest expense, income taxes, depreciation and amortization, and we define Adjusted EBITDA as EBITDA before unrealized and realized gain or loss on derivatives, loss on early extinguishment of debt, gain or loss on sale of real property interests, straight line rent adjustments, amortization of above and below market rents, impairments, acquisition-related expenses, unit-based compensation, repayments of investments in receivables, foreign currency transaction gain (loss), adjustments for investment in unconsolidated joint venture and the capital contribution to fund our general and administrative expense reimbursement. We believe that to understand our performance further, EBITDA and Adjusted EBITDA should be compared with our reported net income (loss) and net cash provided by operating activities in accordance with GAAP, as presented in our consolidated financial statements.
EBITDA and Adjusted EBITDA are non-GAAP supplemental financial measures that management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
- our operating performance as compared to other publicly traded limited partnerships, without regard to historical cost basis or, in the case of Adjusted EBITDA, financing methods;
- the ability of our business to generate sufficient cash to support our decision to make distributions to our unitholders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and the returns on investment of various investment opportunities.
We believe that the presentation of EBITDA and Adjusted EBITDA provides information useful to investors in assessing our financial condition and results of operations. The GAAP measures most directly comparable to EBITDA and Adjusted EBITDA are net income (loss) and net cash provided by operating activities. EBITDA and Adjusted EBITDA should not be considered as an alternative to GAAP net income (loss), net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Each of EBITDA and Adjusted EBITDA has important limitations as analytical tools because they exclude some, but not all, items that affect net income (loss) and net cash provided by operating activities, and these measures may vary from those of other companies. You should not consider EBITDA and Adjusted EBITDA in isolation or as a substitute for analysis of our results as reported under GAAP. As a result, because EBITDA and Adjusted EBITDA may be defined differently by other companies in our industry, EBITDA and Adjusted EBITDA as presented below may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. For a reconciliation of EBITDA and Adjusted EBITDA to the most comparable financial measures calculated and presented in accordance with GAAP, please see the “Reconciliation of EBITDA and Adjusted EBITDA” table below.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of federal securities laws. These statements discuss future expectations, contain projections of results of operations or of financial condition or state other forward-looking information. You can identify forward-looking statements by words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “project,” “could,” “may,” “should,” “would,” “will” or other similar expressions that convey the uncertainty of future events or outcomes. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the Partnership’s control and are difficult to predict. These statements are often based upon various assumptions, many of which are based, in turn, upon further assumptions, including examination of historical operating trends made by the management of the Partnership. Although the Partnership believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies, which are difficult or impossible to predict and are beyond its control, the Partnership cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions. Examples of forward-looking statements in this press release include expected acquisition opportunities from our sponsor. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements contained in the Partnership’s filings with the U.S. Securities and Exchange Commission (the “Commission”), including the Partnership’s annual report on Form 10-K for the year endedDecember 31, 2020 and Current Report on Form 8-K filed with the Commission on February 24, 2021. These risks could cause the Partnership’s actual results to differ materially from those contained in any forward-looking statement.
| CONTACT: | Marcelo Choi |
| Vice President, Investor Relations | |
| (213) 788-4528 | |
| ir@landmarkmlp.com |
Landmark Infrastructure PartnersLP
Consolidated Statements of Operations
In thousands, except per unit data
(Unaudited)
| Three Months Ended December31, | Year Ended December31, | |||||||||||||||
| 2020 | 2019(1) | 2020(1) | 2019(1) | |||||||||||||
| Revenue | ||||||||||||||||
| Rental revenue | $ | 16,946 | $ | 13,868 | $ | 58,839 | $ | 53,701 | ||||||||
| Expenses | ||||||||||||||||
| Property operating | 656 | 317 | 1,879 | 1,434 | ||||||||||||
| General and administrative | 1,264 | 1,106 | 4,743 | 5,279 | ||||||||||||
| Acquisition-related | 21 | 332 | 112 | 608 | ||||||||||||
| Depreciation and amortization | 4,755 | 3,614 | 16,466 | 13,447 | ||||||||||||
| Impairments | 57 | 1,642 | 257 | 2,288 | ||||||||||||
| Total expenses | 6,753 | 7,011 | 23,457 | 23,056 | ||||||||||||
| Other income and expenses | ||||||||||||||||
| Interest and other income | 133 | 9 | 450 | 597 | ||||||||||||
| Interest expense | (4,514 | ) | (4,396 | ) | (17,273 | ) | (17,455 | ) | ||||||||
| Loss on early extinguishment of debt | — | — | (2,231 | ) | — | |||||||||||
| Unrealized gain (loss) on derivatives | 319 | 961 | (6,211 | ) | (6,066 | ) | ||||||||||
| Equity income from unconsolidated joint venture | 146 | 135 | 1,231 | 398 | ||||||||||||
| Gain (loss) on sale of real property interests | — | (23 | ) | — | 17,985 | |||||||||||
| Total other income and expenses | (3,916 | ) | (3,314 | ) | (24,034 | ) | (4,541 | ) | ||||||||
| Income from continuing operations before income tax expense (benefit) | 6,277 | 3,543 | 11,348 | 26,104 | ||||||||||||
| Income tax expense (benefit) | 78 | 117 | (430 | ) | 3,277 | |||||||||||
| Income from continuing operations | 6,199 | 3,426 | 11,778 | 22,827 | ||||||||||||
| Income (loss) from discontinued operations, net of tax | — | (2,281 | ) | 17,340 | (1,221 | ) | ||||||||||
| Net income | 6,199 | 1,145 | 29,118 | 21,606 | ||||||||||||
| Less: Net income attributable to noncontrolling interests | 8 | 8 | 32 | 31 | ||||||||||||
| Net income attributable to limited partners | 6,191 | 1,137 | 29,086 | 21,575 | ||||||||||||
| Less: Distributions to preferred unitholders | (3,061 | ) | (2,983 | ) | (12,213 | ) | (11,883 | ) | ||||||||
| Less: General Partner’s incentive distribution rights | — | (197 | ) | — | (788 | ) | ||||||||||
| Less: Accretion of Series C preferred units | (97 | ) | (95 | ) | (386 | ) | (641 | ) | ||||||||
| Net income (loss) attributable to common unitholders | $ | 3,033 | $ | (2,138 | ) | $ | 16,487 | $ | 8,263 | |||||||
| Income (loss) from continuing operations per common unit | ||||||||||||||||
| Common units – basic | $ | 0.12 | $ | (0.08 | ) | $ | (0.03 | ) | $ | 0.33 | ||||||
| Common units – diluted | $ | 0.12 | $ | (0.08 | ) | $ | (0.03 | ) | $ | 0.33 | ||||||
| Net income (loss) per common unit | ||||||||||||||||
| Common units – basic | $ | 0.12 | $ | (0.08 | ) | $ | 0.65 | $ | 0.33 | |||||||
| Common units – diluted | $ | 0.12 | $ | (0.08 | ) | $ | 0.65 | $ | 0.33 | |||||||
| Weighted average common units outstanding | ||||||||||||||||
| Common units – basic | 25,478 | 25,353 | 25,473 | 25,343 | ||||||||||||
| Common units – diluted | 25,478 | 25,353 | 25,473 | 25,343 | ||||||||||||
| Other Data | ||||||||||||||||
| Total leased tenant sites (end of period) | 1,874 | 1,952 | 1,874 | 1,952 | ||||||||||||
| Total available tenant sites (end of period) | 1,986 | 2,058 | 1,986 | 2,058 | ||||||||||||
_______________
(1)Prior period amounts have been revised to reflect classification of the European outdoor advertising portfolio as discontinued operations. As a result, operating results of the European outdoor advertising portfolio are presented as income from discontinued operations on the consolidated statements of operations for all periods presented.
Landmark Infrastructure PartnersLP
Consolidated Balance Sheets
In thousands, except per unit data
(Unaudited)
| December31, 2020 | December31, 2019(1) | |||||||
| Assets | ||||||||
| Land | $ | 117,421 | $ | 107,558 | ||||
| Real property interests | 671,468 | 509,181 | ||||||
| Construction in progress | 44,787 | 49,116 | ||||||
| Total land and real property interests | 833,676 | 665,855 | ||||||
| Accumulated depreciation and amortization of real property interests | (63,474 | ) | (48,995 | ) | ||||
| Land and net real property interests | 770,202 | 616,860 | ||||||
| Investments in receivables, net | 5,101 | 5,653 | ||||||
| Investment in unconsolidated joint venture | 60,880 | 62,059 | ||||||
| Cash and cash equivalents | 10,447 | 5,885 | ||||||
| Restricted cash | 3,195 | 5,619 | ||||||
| Rent receivables | 4,016 | 3,673 | ||||||
| Due from Landmark and affiliates | 1,337 | 1,132 | ||||||
| Deferred loan costs, net | 3,567 | 4,557 | ||||||
| Deferred rent receivable | 1,818 | 1,548 | ||||||
| Other intangible assets, net | 19,417 | 21,936 | ||||||
| Assets held for sale (AHFS) | — | 114,400 | ||||||
| Right of use asset, net | 10,716 | 6,615 | ||||||
| Other assets | 4,082 | 5,668 | ||||||
| Total assets | $ | 894,778 | $ | 855,605 | ||||
| Liabilities and equity | ||||||||
| Revolving credit facility | $ | 214,200 | $ | 179,500 | ||||
| Secured notes, net | 279,677 | 217,098 | ||||||
| Accounts payable and accrued liabilities | 6,732 | 3,842 | ||||||
| Other intangible liabilities, net | 6,081 | 7,583 | ||||||
| Liabilities associated with AHFS | — | 64,627 | ||||||
| Operating lease liability | 8,818 | 6,766 | ||||||
| Prepaid rent | 4,446 | 5,391 | ||||||
| Derivative liabilities | 3,435 | 1,474 | ||||||
| Total liabilities | 523,389 | 486,281 | ||||||
| Commitments and contingencies | ||||||||
| Mezzanine equity | ||||||||
| Series C cumulative redeemable convertible preferred units, 1,982,700 and 1,988,700 units issued and outstanding at December 31, 2020 and 2019, respectively | 47,902 | 47,666 | ||||||
| Equity | ||||||||
| Series A cumulative redeemable preferred units, 1,788,843 and 1,722,041 units issued and outstanding at December 31, 2020 and 2019, respectively | 41,850 | 40,210 | ||||||
| Series B cumulative redeemable preferred units 2,628,932 and 2,544,793 units issued and outstanding at December 31, 2020 and 2019, respectively | 63,014 | 60,926 | ||||||
| Common units, 25,478,042 and 25,353,140 units issued and outstanding at December 31, 2020 and 2019, respectively | 376,201 | 382,581 | ||||||
| General Partner | (159,069 | ) | (162,277 | ) | ||||
| Accumulated other comprehensive income (loss) | 1,290 | 17 | ||||||
| Total limited partners’ equity | 323,286 | 321,457 | ||||||
| Noncontrolling interests | 201 | 201 | ||||||
| Total equity | 323,487 | 321,658 | ||||||
| Total liabilities, mezzanine equity and equity | $ | 894,778 | $ | 855,605 | ||||
_______________
(1)Prior period amounts have been revised to reflect classification of the European outdoor advertising portfolio as discontinued operations. As a result, assets and liabilities of the European outdoor advertising portfolio were reclassified to assets and liabilities held for sale on the consolidated balance sheets.
Landmark Infrastructure PartnersLP
Real Property InterestTable
| AvailableTenant Sites(1) | LeasedTenant Sites | |||||||||||||||||||||||||||||||||||
| Real Property Interest | Number of Infrastructure Locations (1) | Number | Average Remaining Property Interest (Years) | Number | Average Remaining Lease Term (Years) (2) | Tenant Site Occupancy Rate (3) | Average Monthly EffectiveRent Per Tenant Site (4)(5) | Quarterly Rental Revenue (6) (In thousands) | Percentage ofQuarterly Rental Revenue (6) | |||||||||||||||||||||||||||
| Tenant Lease Assignment with Underlying Easement | ||||||||||||||||||||||||||||||||||||
| Wireless Communication | 703 | 909 | 75.6 | (7) | 847 | 34.7 | $ | 5,264 | 31 | % | ||||||||||||||||||||||||||
| Digital Infrastructure | 1 | 1 | 99.0 | (7) | 1 | 8.7 | 450 | 3 | % | |||||||||||||||||||||||||||
| Outdoor Advertising | 544 | 732 | 84.6 | (7) | 706 | 15.5 | 3,295 | 20 | % | |||||||||||||||||||||||||||
| Renewable Power Generation | 15 | 47 | 29.2 | (7) | 47 | 33.9 | 292 | 2 | % | |||||||||||||||||||||||||||
| Subtotal | 1,263 | 1,689 | 74.4 | (7) | 1,601 | 26.8 | $ | 9,301 | 56 | % | ||||||||||||||||||||||||||
| Tenant Lease Assignment only (8) | ||||||||||||||||||||||||||||||||||||
| Wireless Communication | 115 | 169 | 45.1 | 149 | 16.6 | $ | 1,084 | 6 | % | |||||||||||||||||||||||||||
| Outdoor Advertising | 33 | 36 | 61.2 | 34 | 12.5 | 213 | 1 | % | ||||||||||||||||||||||||||||
| Renewable Power Generation | 6 | 6 | 46.6 | 6 | 24.4 | 57 | — | % | ||||||||||||||||||||||||||||
| Subtotal | 154 | 211 | 47.9 | 189 | 16.1 | $ | 1,354 | 7 | % | |||||||||||||||||||||||||||
| Tenant Lease on Fee Simple | ||||||||||||||||||||||||||||||||||||
| Wireless Communication | 17 | 28 | 99.0 | (7) | 26 | 26.8 | $ | 175 | 1 | % | ||||||||||||||||||||||||||
| Digital Infrastructure | 13 | 13 | 99.0 | (7) | 13 | 24.4 | 4,236 | 25 | % | |||||||||||||||||||||||||||
| Outdoor Advertising | 26 | 28 | 99.0 | (7) | 28 | 6.6 | 221 | 1 | % | |||||||||||||||||||||||||||
| Renewable Power Generation | 14 | 17 | 99.0 | (7) | 17 | 28.4 | 1,659 | 10 | % | |||||||||||||||||||||||||||
| Subtotal | 70 | 86 | 99.0 | (7) | 84 | 20.3 | $ | 6,291 | 37 | % | ||||||||||||||||||||||||||
| Total | 1,487 | 1,986 | 69.6 | (9) | 1,874 | 25.4 | $ | 16,946 | 100 | % | ||||||||||||||||||||||||||
| Aggregate Portfolio | ||||||||||||||||||||||||||||||||||||
| Wireless Communication | 835 | 1,106 | 66.4 | 1,022 | 31.9 | 92 | % | $ | 2,045 | $ | 6,523 | 38 | % | |||||||||||||||||||||||
| Digital Infrastructure | 14 | 14 | 99.0 | 14 | 23.3 | 100 | % | 115,367 | 4,686 | 28 | % | |||||||||||||||||||||||||
| Outdoor Advertising | 603 | 796 | 75.2 | 768 | 15.0 | 96 | % | 1,875 | 3,729 | 22 | % | |||||||||||||||||||||||||
| Renewable Power Generation | 35 | 70 | 35.2 | 70 | 30.1 | 100 | % | 9,562 | 2,008 | 12 | % | |||||||||||||||||||||||||
| Total | 1,487 | 1,986 | 69.6 | (9) | 1,874 | 25.4 | 94 | % | $ | 3,150 | $ | 16,946 | 100 | % | ||||||||||||||||||||||
_______________
(1)“Available Tenant Sites” means the number of individual sites that could be leased. For example, if we have an easement on a single rooftop, on which three different tenants can lease space from us, this would be counted as three “tenant sites,” and all three tenant sites would be at a single infrastructure location with the same address.
(2)Assumes the exercise of all remaining renewal options of tenant leases. Assuming no exercise of renewal options, the average remaining lease terms for our wireless communication, digital infrastructure, outdoor advertising, renewable power generation and total portfolio as of December 31, 2020 were 2.8, 9.9, 7.0, 16.8 and 4.7 years, respectively.
(3)Represents the number of leased tenant sites divided by the number of available tenant sites.
(4)Occupancy and average monthly effective rent per tenant site are shown only on an aggregate portfolio basis by industry.
(5)Represents total monthly revenue excluding the impact of amortization of above and below market lease intangibles divided by the number of leased tenant sites
(6)Represents GAAP rental revenue recognized under existing tenant leases for the three months ended December 31, 2020.Excludes interest income on receivables.
(7)Fee simple ownership and perpetual easements are shown as having a term of 99years for purposes of calculating the average remaining term.
(8)Reflects “springing lease agreements” whereby the cancellation or nonrenewal of a tenant lease entitles us to enter into a new ground lease with the property owner (up to the full property interest term) and a replacement tenant lease. The remaining lease assignment term is, therefore, equal to or longer than the remaining lease term. Also represents properties for which the “springing lease” feature has been exercised and has been replaced by a lease for the remaining lease term.
(9)Excluding perpetual ownership rights, the average remaining property interest term on our tenant sites is approximately 61years.
Landmark Infrastructure PartnersLP
Reconciliation of Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO)
In thousands, except per unit data
(Unaudited)
| Three Months Ended December31, | Year Ended December31, | |||||||||||||||
| 2020(1) | 2019(1) | 2020(1) | 2019(1) | |||||||||||||
| Net income | $ | 6,199 | $ | 1,145 | $ | 29,118 | $ | 21,606 | ||||||||
| Adjustments: | ||||||||||||||||
| Depreciation and amortization expense | 4,755 | 3,867 | 17,002 | 14,235 | ||||||||||||
| Impairments | 57 | 1,642 | 257 | 2,288 | ||||||||||||
| (Gain) loss on sale of real property interests, net of income taxes | 190 | 45 | (15,318 | ) | (14,937 | ) | ||||||||||
| Adjustments for investment in unconsolidated joint venture | 756 | 790 | 2,581 | 3,358 | ||||||||||||
| Distributions to preferred unitholders | (3,061 | ) | (2,983 | ) | (12,213 | ) | (11,883 | ) | ||||||||
| Distributions to noncontrolling interests | (8 | ) | (8 | ) | (32 | ) | (31 | ) | ||||||||
| FFO attributable to common unitholders | $ | 8,888 | $ | 4,498 | $ | 21,395 | $ | 14,636 | ||||||||
| Adjustments: | ||||||||||||||||
| General and administrative expense reimbursement (2) | 828 | 896 | 3,283 | 3,954 | ||||||||||||
| Acquisition-related expenses | 21 | 549 | 453 | 1,163 | ||||||||||||
| Unrealized (gain) loss on derivatives | (319 | ) | (1,636 | ) | 8,010 | 7,327 | ||||||||||
| Straight line rent adjustments | (211 | ) | 186 | 173 | 600 | |||||||||||
| Unit-based compensation | — | — | 120 | 130 | ||||||||||||
| Amortization of deferred loan costs and discount on secured notes | 626 | 789 | 2,471 | 3,097 | ||||||||||||
| Amortization of above- and below-market rents, net | (242 | ) | (236 | ) | (968 | ) | (890 | ) | ||||||||
| Deferred income tax benefit | (91 | ) | (141 | ) | (551 | ) | (32 | ) | ||||||||
| Loss on early extinguishment of debt | — | — | 2,231 | — | ||||||||||||
| Repayments of receivables | 127 | 134 | 522 | 564 | ||||||||||||
| Adjustments for investment in unconsolidated joint venture | 38 | 40 | 141 | 103 | ||||||||||||
| Foreign currency transaction (gain) loss | — | 3,478 | (2,721 | ) | 2,433 | |||||||||||
| AFFO attributable to common unitholders | $ | 9,665 | $ | 8,557 | $ | 34,559 | $ | 33,085 | ||||||||
| FFO per common unit – diluted | $ | 0.35 | $ | 0.18 | $ | 0.84 | $ | 0.58 | ||||||||
| AFFO per common unit – diluted | $ | 0.38 | $ | 0.34 | $ | 1.36 | $ | 1.31 | ||||||||
| Weighted average common units outstanding – diluted | 25,478 | 25,353 | 25,473 | 25,343 | ||||||||||||
________________
(1)For all periods presented, amounts include the effects that are reported in discontinued operations.
(2) Under the omnibus agreement with Landmark, we agreed to reimburse Landmark for expenses related to certain general and administrative services that Landmark will provide to us in support of our business, subject to a quarterly cap equal to 3% of our revenue during the current calendar quarter. This cap on expenses will last until the earlier to occur of: (i)the date on which our revenue for the immediately preceding four consecutive fiscal quarters exceeded $120million and (ii)November 19, 2021. The full amount of general and administrative expenses incurred will be reflected in our income statements, and to the extent such general and administrative expenses exceed the cap amount, the amount of such excess will be reimbursed by Landmark and reflected in our financial statements as a capital contribution from Landmark rather than as a reduction of our general and administrative expenses, except for expenses that would otherwise be allocated to us, which are not included in our general and administrative expenses.
Landmark Infrastructure PartnersLP
Reconciliation of EBITDA and Adjusted EBITDA
In thousands
(Unaudited)
| Three Months Ended December31, | Year Ended December31, | |||||||||||||||
| 2020(1) | 2019(1) | 2020(1) | 2019(1) | |||||||||||||
| Reconciliation of EBITDA and Adjusted EBITDA to Net Income | ||||||||||||||||
| Net income | $ | 6,199 | $ | 1,145 | $ | 29,118 | $ | 21,606 | ||||||||
| Interest expense | 4,514 | 4,731 | 17,914 | 18,170 | ||||||||||||
| Depreciation and amortization expense | 4,755 | 3,867 | 17,002 | 14,235 | ||||||||||||
| Income tax expense | 78 | 148 | 50 | 3,783 | ||||||||||||
| EBITDA | $ | 15,546 | $ | 9,891 | $ | 64,084 | $ | 57,794 | ||||||||
| Impairments | 57 | 1,642 | 257 | 2,288 | ||||||||||||
| Acquisition-related | 21 | 549 | 453 | 1,163 | ||||||||||||
| Unrealized (gain) loss on derivatives | (319 | ) | (1,636 | ) | 8,010 | 7,327 | ||||||||||
| Loss on early extinguishment of debt | — | — | 2,231 | — | ||||||||||||
| (Gain) loss on sale of real property interests | — | 23 | (15,508 | ) | (17,985 | ) | ||||||||||
| Unit-based compensation | — | — | 120 | 130 | ||||||||||||
| Straight line rent adjustments | (211 | ) | 186 | 173 | 600 | |||||||||||
| Amortization of above- and below-market rents, net | (242 | ) | (236 | ) | (968 | ) | (890 | ) | ||||||||
| Repayments of investments in receivables | 127 | 134 | 522 | 564 | ||||||||||||
| Adjustments for investment in unconsolidated joint venture | 1,456 | 1,499 | 5,376 | 6,169 | ||||||||||||
| Foreign currency transaction (gain) loss | — | 3,478 | (2,721 | ) | 2,433 | |||||||||||
| Deemed capital contribution to fund general and administrative expense reimbursement(2) | 828 | 896 | 3,283 | 3,954 | ||||||||||||
| Adjusted EBITDA | $ | 17,263 | $ | 16,426 | $ | 65,312 | $ | 63,547 | ||||||||
| Reconciliation of EBITDA and Adjusted EBITDA to Net Cash Provided by Operating Activities | ||||||||||||||||
| Net cash provided by operating activities | $ | 10,198 | $ | 9,709 | $ | 42,180 | $ | 31,663 | ||||||||
| Unit-based compensation | — | — | (120 | ) | (130 | ) | ||||||||||
| Unrealized gain (loss) on derivatives | 319 | 1,636 | (8,010 | ) | (7,327 | ) | ||||||||||
| Loss on early extinguishment of debt | — | — | (2,231 | ) | — | |||||||||||
| Depreciation and amortization expense | (4,755 | ) | (3,867 | ) | (17,002 | ) | (14,235 | ) | ||||||||
| Amortization of above- and below-market rents, net | 242 | 236 | 968 | 890 | ||||||||||||
| Amortization of deferred loan costs and discount on secured notes | (626 | ) | (789 | ) | (2,471 | ) | (3,097 | ) | ||||||||
| Receivables interest accretion | — | — | — | 9 | ||||||||||||
| Impairments | (57 | ) | (1,642 | ) | (257 | ) | (2,288 | ) | ||||||||
| Gain (loss) on sale of real property interests | — | (23 | ) | 15,508 | 17,985 | |||||||||||
| Adjustment for uncollectible accounts | (165 | ) | (19 | ) | (360 | ) | (126 | ) | ||||||||
| Equity income from unconsolidated joint venture | 146 | 135 | 1,231 | 398 | ||||||||||||
| Distributions of earnings from unconsolidated joint venture | (1,450 | ) | (500 | ) | (3,101 | ) | (3,383 | ) | ||||||||
| Foreign currency transaction gain (loss) | — | (3,478 | ) | 2,721 | (2,433 | ) | ||||||||||
| Working capital changes | 2,347 | (253 | ) | 62 | 3,680 | |||||||||||
| Net income | $ | 6,199 | $ | 1,145 | $ | 29,118 | $ | 21,606 | ||||||||
| Interest expense | 4,514 | 4,731 | 17,914 | 18,170 | ||||||||||||
| Depreciation and amortization expense | 4,755 | 3,867 | 17,002 | 14,235 | ||||||||||||
| Income tax expense | 78 | 148 | 50 | 3,783 | ||||||||||||
| EBITDA | $ | 15,546 | $ | 9,891 | $ | 64,084 | $ | 57,794 | ||||||||
| Less: | ||||||||||||||||
| Gain on sale of real property interests | — | — | (15,508 | ) | (17,985 | ) | ||||||||||
| Unrealized gain on derivatives | (319 | ) | (1,636 | ) | — | — | ||||||||||
| Straight line rent adjustment | (211 | ) | — | — | — | |||||||||||
| Amortization of above- and below-market rents, net | (242 | ) | (236 | ) | (968 | ) | (890 | ) | ||||||||
| Foreign currency transaction gain | — | — | (2,721 | ) | — | |||||||||||
| Add: | ||||||||||||||||
| Impairments | 57 | 1,642 | 257 | 2,288 | ||||||||||||
| Acquisition-related | 21 | 549 | 453 | 1,163 | ||||||||||||
| Unrealized loss on derivatives | — | — | 8,010 | 7,327 | ||||||||||||
| Loss on sale of real property interests | — | 23 | — | — | ||||||||||||
| Loss on early extinguishment of debt | — | — | 2,231 | — | ||||||||||||
| Unit-based compensation | — | — | 120 | 130 | ||||||||||||
| Straight line rent adjustment | — | 186 | 173 | 600 | ||||||||||||
| Repayments of investments in receivables | 127 | 134 | 522 | 564 | ||||||||||||
| Adjustments for investment in unconsolidated joint venture | 1,456 | 1,499 | 5,376 | 6,169 | ||||||||||||
| Foreign currency transaction loss | — | 3,478 | — | 2,433 | ||||||||||||
| Deemed capital contribution to fund general and administrative expense reimbursement (2) | 828 | 896 | 3,283 | 3,954 | ||||||||||||
| Adjusted EBITDA | $ | 17,263 | $ | 16,426 | $ | 65,312 | $ | 63,547 | ||||||||
________________
(1)For all periods presented, amounts include the effects that are reported in discontinued operations.
(2) Under the omnibus agreement with Landmark, we agreed to reimburse Landmark for expenses related to certain general and administrative services that Landmark will provide to us in support of our business, subject to a quarterly cap equal to 3% of our revenue during the current calendar quarter. This cap on expenses will last until the earlier to occur of: (i)the date on which our revenue for the immediately preceding four consecutive fiscal quarters exceeded $120million and (ii)November 19, 2021. The full amount of general and administrative expenses incurred will be reflected in our income statements, and to the extent such general and administrative expenses exceed the cap amount, the amount of such excess will be reimbursed by Landmark and reflected in our financial statements as a capital contribution from Landmark rather than as a reduction of our general and administrative expenses, except for expenses that would otherwise be allocated to us, which are not included in our general and administrative expenses.
