EX-99.1 2 lmrk-ex991_6.htm EX-99.1 lmrk-ex991_6.htm

 

Exhibit 99.1

 

 

Landmark Infrastructure Partners LP Reports Fourth Quarter Results

 

El Segundo, California, February 20, 2019 (GLOBE NEWSWIRE) Landmark Infrastructure Partners LP (the “Partnership,” “we,” “us” or “our”) (Nasdaq: LMRK) today announced its fourth quarter financial results.

 

Highlights

 

Net loss attributable to common unitholders of $0.21 per diluted unit, FFO of $0.01 per diluted unit and AFFO of $0.35 per diluted unit, an increase in AFFO per diluted unit of 9% from the fourth quarter of 2017;

 

Amended and restated its five-year revolving credit facility with initial borrowing commitments of $450 million;

 

Entered into an agreement with the City of Lancaster, CA, to develop and deploy Landmark’s FlexGridTM solution;

 

Amended our Omnibus Agreement, extending the general & administrative expense reimbursement arrangement through November 2021; and

 

Announced a quarterly distribution of $0.3675 per common unit.

 

2018 Highlights

 

Reported 2018 rental revenue of $64.8 million, a 23% increase year-over-year;

 

Reported 2018 net income attributable to common unitholders of $3.97 per diluted unit, FFO of $0.96 per diluted unit, and AFFO of $1.34 per diluted unit;

 

Formed a joint venture with Brookfield Asset Management (the “JV”) to invest in core infrastructure assets;

 

Entered into an agreement with Dallas Area Rapid Transit (“DART”) to develop a smart media communications platform which includes the deployment of kiosks and Landmark’s FlexGridTM solution; and

 

Completed acquisitions with total consideration of approximately $136 million in 2018.

 

Fourth Quarter 2018 Results

Rental revenue for the quarter ended December 31, 2018 increased 2% to $14.7 million compared to the fourth quarter of 2017 and declined 16% compared to the third quarter of 2018.  The sequential decline in rental revenue in the fourth quarter is due to the contribution of assets to the JV in September 2018, as the JV is accounted for as an equity method investment and the revenue generated in the venture is not consolidated into the Partnership’s results.  Net loss for the fourth quarter of 2018 was $2.2 million, compared to net income of $9.3 million in the fourth quarter of 2017.  Net loss attributable to common unitholders per diluted unit in the fourth quarter of 2018 was $0.21, compared to net income attributable to common unitholders per diluted unit of $0.31 in the fourth quarter of 2017.  FFO for the fourth quarter of 2018 was $0.01 per diluted unit, compared to FFO per diluted unit of $0.48 in the fourth quarter of 2017.  Net loss and FFO in the fourth quarter of 2018 included a $4.2 million unrealized loss on our interest rate swaps, while net income and FFO in the fourth quarter of 2017 included a $1.8 million unrealized gain on our interest rate swaps and an income tax benefit of $3.2 million.  AFFO for the fourth quarter of 2018 increased to $0.35 per diluted unit, an increase of 9% from the fourth quarter of 2017.

 

For the full year ended December 31, 2018, the Partnership reported rental revenue of $64.8 million compared to $52.6 million during the full year ended December 31, 2017.  The growth in revenue was primarily attributable to acquisitions made during the course of 2017 and 2018, partially offset by the impact of the contribution of assets to the JV in September of 2018.  For the full year ended December 31, 2018 we generated net income of $115.8 million compared to $19.3 million during the year ended December 31, 2017.  Net income attributable to common unitholders for the full year ended December 31, 2018 was $3.97 per diluted unit compared to $0.53 per diluted unit for the year ended December 31, 2017.   For the full year ended December 31, 2018 we generated FFO of $0.96 per diluted unit and AFFO of $1.34 per diluted unit, compared to FFO of $1.18 per diluted unit and AFFO of $1.26 per diluted unit during the full year ended December 31, 2017.  Net income for 2018 included a gain on sale of assets of $99.9 million.

 


 

“We are very pleased with our fourth quarter results.  We made further progress with our development initiatives, refinanced our revolving line of credit and ended the year well positioned for 2019.  We continue to believe that our development activities will drive the Partnership’s near-term and long-term growth,” said Tim Brazy, Chief Executive Officer of the Partnership’s general partner.

 

Quarterly Distributions

On January 25, 2019, the Board of Directors of the Partnership’s general partner declared a cash distribution of $0.3675 per common unit, or $1.47 per common unit on an annualized basis, for the quarter ended December 31, 2018.  The distribution was paid on February 14, 2019 to common unitholders of record as of February 4, 2019.

 

On January 22, 2019, the Board of Directors of the Partnership’s general partner declared a quarterly cash distribution of $0.4571 per Series C preferred unit, which was paid on February 15, 2019 to Series C preferred unitholders of record as of February 1, 2019.  

 

On January 22, 2019, 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 15, 2019 to Series B preferred unitholders of record as of February 1, 2019.

 

On December 20, 2018, 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, 2019 to Series A preferred unitholders of record as of January 2, 2019.

 

Recent Acquisitions

In the full year 2018, the Partnership acquired a total of 231 assets for total consideration of approximately $136 million. The acquisitions were immediately accretive to the Partnership’s distributable cash flow, funded primarily with borrowings under the Partnership’s existing Facility and the issuance of common units.

 

At-The-Market (“ATM”) Equity Programs

Through its At-The-Market (“ATM”) issuance programs, the Partnership issued 27,830 common units and 24,747 Series A preferred units for gross proceeds of approximately $0.5 million and $0.6 million, respectively, for the full year 2018.

 

Conference Call Information

The Partnership will hold a conference call on Wednesday, February 20, 2019, at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time) to discuss its fourth quarter 2018 financial and operating results.  The call can be accessed via a live webcast at https://edge.media-server.com/m6/p/4p2soroi, 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 3186638.

 

A webcast replay will be available approximately two hours after the completion of the conference call through February 20, 2020 at https://edge.media-server.com/m6/p/4p2soroi.  The replay is also available through March 1, 2019 by dialing 855-859-2056 or 404-537-3406 and entering the access code 3186638.

 

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, 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 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, adjustments for investment in unconsolidated joint venture, 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 loss, and the capital contribution to fund our general and administrative expense reimbursement.  We define distributable cash flow as Adjusted EBITDA less cash interest expense, cash interest expense from unconsolidated joint venture, current cash income tax expense, distributions to preferred unitholders, distributions to noncontrolling interest holders, and maintenance capital expenditures.  Distributable cash flow will not reflect changes in working capital balances.  We believe that to understand our performance further, EBITDA, Adjusted EBITDA and distributable cash flow 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, Adjusted EBITDA and distributable cash flow 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, Adjusted EBITDA and distributable cash flow provides information useful to investors in assessing our financial condition and results of operations.  The GAAP measures most directly comparable to EBITDA, Adjusted EBITDA and distributable cash flow are net income (loss) and net cash provided by operating activities.  EBITDA, Adjusted EBITDA and distributable cash flow 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, Adjusted EBITDA and distributable cash flow 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, Adjusted EBITDA and distributable cash flow in isolation or as a substitute for analysis of our results as reported under GAAP.  As a result, because EBITDA, Adjusted EBITDA and distributable cash flow may be defined differently by other companies in our industry, EBITDA, Adjusted EBITDA and distributable cash flow as presented below may not be comparable to


 

similarly titled measures of other companies, thereby diminishing their utility.  For a reconciliation of EBITDA, Adjusted EBITDA and distributable cash flow to the most comparable financial measures calculated and presented in accordance with GAAP, please see the “Reconciliation of EBITDA, Adjusted EBITDA and Distributable Cash Flow” 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 ended December 31, 2018 and Current Report on Form 8-K filed with the Commission on February 20, 2019.  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 Partners LP

Consolidated Statements of Operations

In thousands, except per unit data

(Unaudited)

 

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue

 

$

14,714

 

 

$

14,482

 

 

$

64,765

 

 

$

52,625

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating

 

 

272

 

 

 

147

 

 

 

1,147

 

 

 

394

 

General and administrative

 

 

1,208

 

 

 

1,019

 

 

 

4,731

 

 

 

5,286

 

Acquisition-related

 

 

2,818

 

 

 

280

 

 

 

3,287

 

 

 

1,287

 

Amortization

 

 

3,604

 

 

 

3,711

 

 

 

16,152

 

 

 

13,537

 

Impairments

 

 

579

 

 

 

 

 

 

1,559

 

 

 

848

 

Total expenses

 

 

8,481

 

 

 

5,157

 

 

 

26,876

 

 

 

21,352

 

Other income and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

 

362

 

 

 

419

 

 

 

1,642

 

 

 

1,587

 

Interest expense

 

 

(4,687

)

 

 

(5,468

)

 

 

(24,273

)

 

 

(18,399

)

Loss on early extinguishment of debt

 

 

(157

)

 

 

 

 

 

(157

)

 

 

 

Unrealized gain (loss) on derivatives

 

 

(4,198

)

 

 

1,786

 

 

 

1,010

 

 

 

1,675

 

Equity income from unconsolidated joint venture

 

 

 

 

 

 

 

 

59

 

 

 

 

Gain (loss) on sale of real property interests

 

 

(155

)

 

 

(5

)

 

 

99,884

 

 

 

(5

)

Foreign currency transaction loss

 

 

(6

)

 

 

 

 

 

(6

)

 

 

 

Total other income and expenses

 

 

(8,841

)

 

 

(3,268

)

 

 

78,159

 

 

 

(15,142

)

Income (loss) before income tax (benefit) expense

 

 

(2,608

)

 

 

6,057

 

 

 

116,048

 

 

 

16,131

 

Income tax (benefit) expense

 

 

(436

)

 

 

(3,217

)

 

 

227

 

 

 

(3,145

)

Net income (loss)

 

 

(2,172

)

 

 

9,274

 

 

 

115,821

 

 

 

19,276

 

Less: Net income attributable to noncontrolling interests

 

 

7

 

 

 

8

 

 

 

27

 

 

 

19

 

Net income (loss) attributable to limited partners

 

 

(2,179

)

 

 

9,266

 

 

 

115,794

 

 

 

19,257

 

Less: Distributions to preferred unitholders

 

 

(2,888

)

 

 

(2,001

)

 

 

(10,630

)

 

 

(6,673

)

Less: General Partner's incentive distribution rights

 

 

(197

)

 

 

(193

)

 

 

(784

)

 

 

(488

)

Net income (loss) attributable to common and subordinated unitholders

 

$

(5,264

)

 

$

7,072

 

 

$

104,380

 

 

$

12,096

 

Net income (loss) per common and subordinated unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common units – basic

 

$

(0.21

)

 

$

0.31

 

 

$

4.25

 

 

$

0.54

 

Common units – diluted

 

$

(0.21

)

 

$

0.31

 

 

$

3.97

 

 

$

0.53

 

Subordinated units – basic and diluted

 

$

 

 

$

0.28

 

 

$

(0.78

)

 

$

0.50

 

Weighted average common and subordinated units outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common units – basic

 

 

25,283

 

 

 

19,940

 

 

 

24,626

 

 

 

19,701

 

Common units – diluted

 

 

25,283

 

 

 

23,075

 

 

 

26,967

 

 

 

22,836

 

Subordinated units – basic and diluted

 

 

 

 

 

3,135

 

 

 

387

 

 

 

3,135

 

Other Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total leased tenant sites (end of period)

 

 

1,831

 

 

 

2,157

 

 

 

1,831

 

 

 

2,157

 

Total available tenant sites (end of period)

 

 

1,920

 

 

 

2,239

 

 

 

1,920

 

 

 

2,239

 


 

Landmark Infrastructure Partners LP

Consolidated Balance Sheets

In thousands, except per unit data

(Unaudited)

 

 

 

December 31, 2018

 

 

December 31, 2017

 

Assets

 

 

 

 

 

 

 

 

Land

 

$

128,302

 

 

$

114,385

 

Real property interests

 

 

517,423

 

 

 

596,422

 

Construction in progress

 

 

29,556

 

 

 

7,574

 

Total land and real property interests

 

 

675,281

 

 

 

718,381

 

Accumulated amortization of real property interests

 

 

(39,069

)

 

 

(37,817

)

Land and net real property interests

 

 

636,212

 

 

 

680,564

 

Investments in receivables, net

 

 

18,348

 

 

 

20,782

 

Investment in unconsolidated joint venture

 

 

65,670

 

 

 

 

Cash and cash equivalents

 

 

4,108

 

 

 

9,188

 

Restricted cash

 

 

3,672

 

 

 

18,672

 

Rent receivables, net

 

 

4,292

 

 

 

4,141

 

Due from Landmark and affiliates

 

 

1,390

 

 

 

629

 

Deferred loan costs, net

 

 

5,552

 

 

 

3,589

 

Deferred rent receivable

 

 

5,251

 

 

 

4,252

 

Derivative asset

 

 

4,590

 

 

 

3,159

 

Other intangible assets, net

 

 

20,839

 

 

 

17,984

 

Assets held for sale (AHFS)

 

 

7,846

 

 

 

 

Other assets

 

 

8,843

 

 

 

5,039

 

Total assets

 

$

786,613

 

 

$

767,999

 

Liabilities and equity

 

 

 

 

 

 

 

 

Revolving credit facility

 

$

155,000

 

 

$

304,000

 

Secured notes, net

 

 

223,685

 

 

 

187,249

 

Accounts payable and accrued liabilities

 

 

7,435

 

 

 

4,978

 

Other intangible liabilities, net

 

 

9,291

 

 

 

12,833

 

Liabilities associated with AHFS

 

 

397

 

 

 

 

Prepaid rent

 

 

5,418

 

 

 

4,581

 

Derivative liabilities

 

 

402

 

 

 

 

Total liabilities

 

 

401,628

 

 

 

513,641

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Mezzanine equity

 

 

 

 

 

 

 

 

Series C cumulative redeemable convertible preferred units, 2,000,000 and zero units

   issued and outstanding at December 31, 2018 and 2017, respectively

 

 

47,308

 

 

 

 

Equity

 

 

 

 

 

 

 

 

Series A cumulative redeemable preferred units, 1,593,149 and 1,568,402 units

   issued and outstanding at December 31, 2018 and 2017, respectively

 

 

37,207

 

 

 

36,604

 

Series B cumulative redeemable preferred units, 2,463,015 units

   issued and outstanding at December 31, 2018 and 2017, respectively

 

 

58,936

 

 

 

58,936

 

Common units, 25,327,801 and 20,146,458 units issued and outstanding at

   December 31, 2018 and 2017, respectively

 

 

411,158

 

 

 

288,527

 

Subordinated units, zero and 3,135,109 units issued and outstanding

   at December 31, 2018 and 2017, respectively

 

 

 

 

 

19,641

 

General Partner

 

 

(167,019

)

 

 

(150,519

)

Accumulated other comprehensive income (loss)

 

 

(2,806

)

 

 

968

 

Total limited partners' equity

 

 

337,476

 

 

 

254,157

 

Noncontrolling interests

 

 

201

 

 

 

201

 

Total equity

 

 

337,677

 

 

 

254,358

 

Total liabilities, mezzanine equity and equity

 

$

786,613

 

 

$

767,999

 


 

Landmark Infrastructure Partners LP

Real Property Interest Table

 

 

 

 

 

 

 

Available Tenant Sites (1)

 

 

Leased Tenant 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

Effective Rent

Per Tenant

Site (4)(5)

 

 

Quarterly

Rental

Revenue (6)

(In thousands)

 

 

Percentage

of Quarterly

Rental

Revenue (6)

 

Tenant Lease Assignment with Underlying Easement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wireless Communication

 

 

726

 

 

 

918

 

 

 

72.7

 

(7)

 

864

 

 

 

27.8

 

 

 

 

 

 

 

 

 

 

$

5,156

 

 

 

35

%

Outdoor Advertising

 

 

531

 

 

 

631

 

 

 

80.5

 

(7)

 

615

 

 

 

17.6

 

 

 

 

 

 

 

 

 

 

 

4,150

 

 

 

28

%

Renewable Power Generation

 

 

24

 

 

 

56

 

 

 

28.6

 

(7)

 

56

 

 

 

29.3

 

 

 

 

 

 

 

 

 

 

 

432

 

 

 

3

%

Subtotal

 

 

1,281

 

 

 

1,605

 

 

 

78.6

 

(7)

 

1,535

 

 

 

23.8

 

 

 

 

 

 

 

 

 

 

$

9,738

 

 

 

66

%

Tenant Lease Assignment only (8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wireless Communication

 

 

122

 

 

 

176

 

 

 

48.2

 

 

 

158

 

 

 

17.8

 

 

 

 

 

 

 

 

 

 

$

994

 

 

 

7

%

Outdoor Advertising

 

 

32

 

 

 

35

 

 

 

63.1

 

 

 

34

 

 

 

14.2

 

 

 

 

 

 

 

 

 

 

 

225

 

 

 

2

%

Renewable Power Generation

 

 

6

 

 

 

6

 

 

 

48.6

 

 

 

6

 

 

 

27.6

 

 

 

 

 

 

 

 

 

 

 

57

 

 

 

%

Subtotal

 

 

160

 

 

 

217

 

 

 

50.8

 

 

 

198

 

 

 

17.5

 

 

 

 

 

 

 

 

 

 

$

1,276

 

 

 

9

%

Tenant Lease on Fee Simple

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wireless Communication

 

 

19

 

 

 

29

 

 

 

99.0

 

(7)

 

29

 

 

 

18.7

 

 

 

 

 

 

 

 

 

 

$

1,213

 

 

 

8

%

Outdoor Advertising

 

 

50

 

 

 

54

 

 

 

99.0

 

(7)

 

54

 

 

 

7.8

 

 

 

 

 

 

 

 

 

 

 

906

 

 

 

6

%

Renewable Power Generation

 

 

13

 

 

 

15

 

 

 

99.0

 

(7)

 

15

 

 

 

30.9

 

 

 

 

 

 

 

 

 

 

 

1,581

 

 

 

11

%

Subtotal

 

 

82

 

 

 

98

 

 

 

99.0

 

(7)

 

98

 

 

 

14.4

 

 

 

 

 

 

 

 

 

 

$

3,700

 

 

 

25

%

Total

 

 

1,523

 

 

 

1,920

 

 

 

72.9

 

(9)

 

1,831

 

 

 

22.6

 

 

 

 

 

 

 

 

 

 

$

14,714

 

 

 

100

%

Aggregate Portfolio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wireless Communication

 

 

867

 

 

 

1,123

 

 

 

68.8

 

 

 

1,051

 

 

 

26.0

 

 

 

94

%

 

$

1,927

 

 

$

7,363

 

 

 

50

%

Outdoor Advertising

 

 

613

 

 

 

720

 

 

 

80.8

 

 

 

703

 

 

 

16.7

 

 

 

98

%

 

 

2,535

 

 

 

5,281

 

 

 

36

%

Renewable Power Generation

 

 

43

 

 

 

77

 

 

 

37.3

 

 

 

77

 

 

 

29.6

 

 

 

100

%

 

 

8,960

 

 

 

2,070

 

 

 

14

%

Total

 

 

1,523

 

 

 

1,920

 

 

 

72.9

 

(9)

 

1,831

 

 

 

22.6

 

 

 

95

%

 

$

2,458

 

 

$

14,714

 

 

 

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, outdoor advertising, renewable power generation and aggregate portfolios as of December 31, 2018 were 3.8, 8.5, 17.6 and 5.9 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, 2018.  Excludes interest income on receivables.

(7)

Fee simple ownership and perpetual easements are shown as having a term of 99 years 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 64 years.



 

Landmark Infrastructure Partners LP

Reconciliation of Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO)

In thousands, except per unit data

(Unaudited)

 

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net income (loss)

 

$

(2,172

)

 

$

9,274

 

 

$

115,821

 

 

$

19,276

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization expense

 

 

3,604

 

 

 

3,711

 

 

 

16,152

 

 

 

13,537

 

Impairments

 

 

579

 

 

 

 

 

 

1,559

 

 

 

848

 

(Gain) loss on sale of real property interests

 

 

155

 

 

 

5

 

 

 

(99,884

)

 

 

5

 

Adjustments for investment in unconsolidated joint venture

 

 

923

 

 

 

 

 

 

923

 

 

 

 

Distributions to preferred unitholders

 

 

(2,888

)

 

 

(2,001

)

 

 

(10,630

)

 

 

(6,673

)

Distributions to noncontrolling interests

 

 

(7

)

 

 

(8

)

 

 

(27

)

 

 

(19

)

FFO

 

$

194

 

 

$

10,981

 

 

$

23,914

 

 

$

26,974

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense reimbursement

 

 

764

 

 

 

491

 

 

 

2,833

 

 

 

3,516

 

Acquisition-related expenses

 

 

2,818

 

 

 

280

 

 

 

3,287

 

 

 

1,287

 

Unrealized gain on derivatives

 

 

4,198

 

 

 

(1,786

)

 

 

(1,010

)

 

 

(1,675

)

Straight line rent adjustments

 

 

58

 

 

 

(54

)

 

 

235

 

 

 

(358

)

Unit-based compensation

 

 

 

 

 

 

 

 

70

 

 

 

105

 

Amortization of deferred loan costs and discount on secured notes

 

 

805

 

 

 

719

 

 

 

3,809

 

 

 

2,237

 

Deferred income tax expense (benefit)

 

 

(215

)

 

 

(3,215

)

 

 

205

 

 

 

(3,215

)

Amortization of above- and below-market rents, net

 

 

(218

)

 

 

(262

)

 

 

(1,226

)

 

 

(1,226

)

Loss on early extinguishment of debt

 

 

157

 

 

 

 

 

 

157

 

 

 

 

Repayments of receivables

 

 

193

 

 

 

275

 

 

 

1,108

 

 

 

1,180

 

Adjustments for investment in unconsolidated joint venture

 

 

30

 

 

 

 

 

 

36

 

 

 

 

Foreign currency transaction loss

 

 

6

 

 

 

 

 

 

6

 

 

 

 

AFFO

 

$

8,790

 

 

$

7,429

 

 

$

33,424

 

 

$

28,825

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO per common unit - diluted

 

$

0.01

 

 

$

0.48

 

 

$

0.96

 

 

$

1.18

 

AFFO per common unit - diluted

 

$

0.35

 

 

$

0.32

 

 

$

1.34

 

 

$

1.26

 

Weighted average common units outstanding - diluted

 

 

25,283

 

 

 

23,075

 

 

 

25,013

 

 

 

22,836

 

 

 



 

Landmark Infrastructure Partners LP

Reconciliation of EBITDA, Adjusted EBITDA and Distributable Cash Flow

In thousands

(Unaudited)

 

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Reconciliation of EBITDA and Adjusted EBITDA to Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(2,172

)

 

$

9,274

 

 

$

115,821

 

 

$

19,276

 

Interest expense

 

 

4,687

 

 

 

5,468

 

 

 

24,273

 

 

 

18,399

 

Amortization expense

 

 

3,604

 

 

 

3,711

 

 

 

16,152

 

 

 

13,537

 

Income tax expense (benefit)

 

 

(436

)

 

 

(3,217

)

 

 

227

 

 

 

(3,145

)

Adjustments for investment in unconsolidated joint venture

 

 

1,694

 

 

 

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