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

 

Exhibit 99.1

 

 

Landmark Infrastructure Partners LP Reports Second Quarter Results

 

El Segundo, California, August 7, 2019 (GLOBE NEWSWIRE) - Landmark Infrastructure Partners LP (“Landmark”, the “Partnership,” “we,” “us” or “our”) (Nasdaq: LMRK) today announced its second quarter financial results.

 

Highlights

 

Net income attributable to common unitholders of $0.23 per diluted unit, FFO of $0.07 per diluted unit and AFFO of $0.33 per diluted unit;

 

Year-to-date through June 30, 2019, completed acquisitions of 119 assets for total consideration of approximately $13 million; and

 

Announced a quarterly distribution of $0.3675 per common unit.

 

Second Quarter 2019 Results

Rental revenue for the quarter ended June 30, 2019 was $15.0 million, an increase of 4% compared to the first quarter of 2019, and a decrease of 11% compared to the second quarter of 2018.  The decline in rental revenue in the second quarter is primarily due to the contribution of assets to the Landmark/Brookfield joint venture (“JV”) in September 2018, as the JV is accounted for as an equity method investment and the revenue generated in the JV is not consolidated into the Partnership’s results.  Net income attributable to common unitholders per diluted unit in the second quarter of 2019 was $0.23, compared to $0.15 in the first quarter of 2019 and $0.12 in the second quarter of 2018.  Net income for the second quarter of 2019 included a gain on sale of assets of $11.7 million, and net income for the first quarter of 2019 included a gain on sale of assets of $5.9 million.  FFO for the second quarter of 2019 was $0.07 per diluted unit, compared to FFO per diluted unit of $0.12 in the first quarter of 2019 and $0.30 in the second quarter of 2018.  FFO included a $4.0 million unrealized loss on interest rate hedges in the second quarter of 2019, $2.8 million unrealized loss on interest rated hedges in the first quarter of 2019, and $1.3 million unrealized gain on interest rate hedges in the second quarter of 2018.  AFFO per diluted unit, which excludes certain items including unrealized gains and losses on our interest rate hedges, was $0.33 in the second quarter of 2019 compared to $0.32 in the first quarter of 2019 and $0.32 in the second quarter of 2018.

 

For the six months ended June 30, 2019, the Partnership reported rental revenue of $29.4 million compared to $32.5 million during the six months ended June 30, 2018.  The decline in revenue was primarily attributable to the contribution of assets to the JV in September of 2018.  For the six months ended June 30, 2019 we generated net income of $16.5 million compared to $12.8 million during the six months ended June 30, 2018.  Net income attributable to common unitholders for the six months ended June 30, 2019 was $0.38 per diluted unit compared to $0.31 per diluted unit for the six months ended June 30, 2018.  For the six months ended June 30, 2019 we generated FFO of $0.20 per diluted unit and AFFO of $0.64 per diluted unit, compared to FFO of $0.66 per diluted unit and AFFO of $0.65 per diluted unit during the six months ended June 30, 2018.

 

“The Partnership’s strong second quarter results were driven by the continued performance of our stable portfolio.  We are also making further progress with our development strategy and anticipate those projects generating revenue in the second half of the year,” said Tim Brazy, Chief Executive Officer of the Partnership’s general partner.

 

Quarterly Distributions

On July 19, 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 June 30, 2019.  The distribution is payable on August 14, 2019 to common unitholders of record as of August 2, 2019.

 

On July 19, 2019, the Board of Directors of the Partnership’s general partner declared a quarterly cash distribution of $0.4510 per Series C preferred unit, which is payable on August 15, 2019 to Series C preferred unitholders of record as of August 1, 2019.

 


 

On July 19, 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 is payable on August 15, 2019 to Series B preferred unitholders of record as of August 1, 2019.

 

On June 20, 2019, 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 July 15, 2019 to Series A preferred unitholders of record as of July 1, 2019.

 

Capital and Liquidity

As of June 30, 2019, the Partnership had $166.5 million of outstanding borrowings under its revolving credit facility (the “Facility”), and approximately $280 million of undrawn borrowing capacity under the Facility, subject to compliance with certain covenants.

 

Recent Acquisitions

Year-to-date through June 30, 2019, the Partnership acquired a total of 119 assets for total consideration of approximately $13 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

Year-to-date through July 31, 2019, the Partnership has issued 81,007 Series A preferred units and 81,778 Series B preferred units through its At-The-Market (“ATM”) issuance programs for gross proceeds of approximately $4.1 million.

 

Conference Call Information

The Partnership will hold a conference call on Wednesday, August 7, 2019, at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time) to discuss its second quarter 2019 financial and operating results.  The call can be accessed via a live webcast at https://edge.media-server.com/mmc/p/pduyemuz, 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 5569816.

 

A webcast replay will be available approximately two hours after the completion of the conference call through August 7, 2020 at https://edge.media-server.com/mmc/p/pduyemuz.  The replay is also available through August 16, 2019 by dialing 855-859-2056 or 404-537-3406 and entering the access code 5569816.

 

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 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 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 June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue

 

$

15,025

 

 

$

16,796

 

 

$

29,418

 

 

$

32,491

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating

 

 

405

 

 

 

229

 

 

 

1,070

 

 

 

515

 

General and administrative

 

 

1,503

 

 

 

1,089

 

 

 

2,981

 

 

 

2,788

 

Acquisition-related

 

 

368

 

 

 

196

 

 

 

495

 

 

 

381

 

Amortization

 

 

3,456

 

 

 

4,233

 

 

 

6,973

 

 

 

8,255

 

Impairments

 

 

 

 

 

103

 

 

 

204

 

 

 

103

 

Total expenses

 

 

5,732

 

 

 

5,850

 

 

 

11,723

 

 

 

12,042

 

Other income and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

 

172

 

 

 

408

 

 

 

566

 

 

 

846

 

Interest expense

 

 

(4,692

)

 

 

(6,408

)

 

 

(9,180

)

 

 

(12,680

)

Unrealized gain (loss) on derivatives

 

 

(4,013

)

 

 

1,286

 

 

 

(6,775

)

 

 

4,434

 

Equity income from unconsolidated joint venture

 

 

164

 

 

 

 

 

 

109

 

 

 

 

Gain on sale of real property interests

 

 

11,673

 

 

 

 

 

 

17,535

 

 

 

 

Foreign currency transaction loss

 

 

(47

)

 

 

 

 

 

(68

)

 

 

 

Total other income and expenses

 

 

3,257

 

 

 

(4,714

)

 

 

2,187

 

 

 

(7,400

)

Income before income tax expense

 

 

12,550

 

 

 

6,232

 

 

 

19,882

 

 

 

13,049

 

Income tax expense

 

 

3,285

 

 

 

127

 

 

 

3,407

 

 

 

203

 

Net income

 

 

9,265

 

 

 

6,105

 

 

 

16,475

 

 

 

12,846

 

Less: Net income attributable to noncontrolling interests

 

 

8

 

 

 

8

 

 

 

16

 

 

 

12

 

Net income attributable to limited partners

 

 

9,257

 

 

 

6,097

 

 

 

16,459

 

 

 

12,834

 

Less: Distributions to preferred unitholders

 

 

(3,021

)

 

 

(2,930

)

 

 

(5,915

)

 

 

(4,874

)

Less: General Partner's incentive distribution rights

 

 

(197

)

 

 

(195

)

 

 

(394

)

 

 

(390

)

Less: Accretion of Series C preferred units

 

 

(94

)

 

 

 

 

 

(450

)

 

 

 

Net income attributable to common and subordinated unitholders

 

$

5,945

 

 

$

2,972

 

 

$

9,700

 

 

$

7,570

 

Net income (loss) per common and subordinated unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common units – basic

 

$

0.23

 

 

$

0.12

 

 

$

0.38

 

 

$

0.33

 

Common units – diluted

 

$

0.23

 

 

$

0.12

 

 

$

0.38

 

 

$

0.31

 

Subordinated units – basic and diluted

 

$

 

 

$

 

 

$

 

 

$

(0.39

)

Weighted average common and subordinated units outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common units – basic

 

 

25,339

 

 

 

25,058

 

 

 

25,338

 

 

 

24,032

 

Common units – diluted

 

 

25,339

 

 

 

25,058

 

 

 

25,338

 

 

 

24,811

 

Subordinated units – basic and diluted

 

 

 

 

 

 

 

 

 

 

 

779

 

Other Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total leased tenant sites (end of period)

 

 

1,912

 

 

 

2,327

 

 

 

1,912

 

 

 

2,327

 

Total available tenant sites (end of period)

 

 

2,005

 

 

 

2,415

 

 

 

2,005

 

 

 

2,415

 


 

Landmark Infrastructure Partners LP

Consolidated Balance Sheets

In thousands, except per unit data

(Unaudited)

 

 

 

June 30, 2019

 

 

December 31, 2018

 

Assets

 

 

 

 

 

 

 

 

Land

 

$

135,740

 

 

$

128,302

 

Real property interests

 

 

511,377

 

 

 

517,423

 

Construction in progress

 

 

53,265

 

 

 

29,556

 

Total land and real property interests

 

 

700,382

 

 

 

675,281

 

Accumulated amortization of real property interests

 

 

(43,909

)

 

 

(39,069

)

Land and net real property interests

 

 

656,473

 

 

 

636,212

 

Investments in receivables, net

 

 

9,406

 

 

 

18,348

 

Investment in unconsolidated joint venture

 

 

63,170

 

 

 

65,670

 

Cash and cash equivalents

 

 

12,068

 

 

 

4,108

 

Restricted cash

 

 

4,066

 

 

 

3,672

 

Rent receivables, net

 

 

4,069

 

 

 

4,292

 

Due from Landmark and affiliates

 

 

1,525

 

 

 

1,390

 

Deferred loan costs, net

 

 

5,150

 

 

 

5,552

 

Deferred rent receivable

 

 

6,340

 

 

 

5,251

 

Derivative asset

 

 

41

 

 

 

4,590

 

Other intangible assets, net

 

 

20,133

 

 

 

20,839

 

Assets held for sale (AHFS)

 

 

930

 

 

 

7,846

 

Right of use asset, net

 

 

8,130

 

 

 

 

Other assets

 

 

11,700

 

 

 

8,843

 

Total assets

 

$

803,201

 

 

$

786,613

 

Liabilities and equity

 

 

 

 

 

 

 

 

Revolving credit facility

 

$

166,522

 

 

$

155,000

 

Secured notes, net

 

 

221,270

 

 

 

223,685

 

Accounts payable and accrued liabilities

 

 

10,472

 

 

 

7,435

 

Other intangible liabilities, net

 

 

8,341

 

 

 

9,291

 

Liabilities associated with AHFS

 

 

 

 

 

397

 

Lease liability

 

 

8,216

 

 

 

 

Prepaid rent

 

 

4,359

 

 

 

5,418

 

Derivative liabilities

 

 

2,633

 

 

 

402

 

Total liabilities

 

 

421,813

 

 

 

401,628

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Mezzanine equity

 

 

 

 

 

 

 

 

Series C cumulative redeemable convertible preferred units, 1,999,800 and 2,000,000

   units issued and outstanding at June 30, 2019 and December 31, 2018, respectively

 

 

47,752

 

 

 

47,308

 

Equity

 

 

 

 

 

 

 

 

Series A cumulative redeemable preferred units, 1,649,800 and 1,593,149 units

   issued and outstanding at June 30, 2019 and December 31, 2018, respectively

 

 

38,466

 

 

 

37,207

 

Series B cumulative redeemable preferred units, 2,529,749 and 2,463,015 units

   issued and outstanding at June 30, 2019 and December 31, 2018, respectively

 

 

60,575

 

 

 

58,936

 

Common units, 25,338,692 and 25,327,801 units issued and outstanding at

   June 30, 2019 and December 31, 2018, respectively

 

 

402,369

 

 

 

411,158

 

General Partner

 

 

(164,497

)

 

 

(167,019

)

Accumulated other comprehensive loss

 

 

(3,478

)

 

 

(2,806

)

Total limited partners' equity

 

 

333,435

 

 

 

337,476

 

Noncontrolling interests

 

 

201

 

 

 

201

 

Total equity

 

 

333,636

 

 

 

337,677

 

Total liabilities, mezzanine equity and equity

 

$

803,201

 

 

$

786,613

 


 

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

 

 

717

 

 

 

908

 

 

 

77.4

 

(7)

 

853

 

 

 

27.2

 

 

 

 

 

 

 

 

 

 

$

5,131

 

 

 

34

%

Outdoor Advertising

 

 

586

 

 

 

700

 

 

 

75.1

 

(7)

 

683

 

 

 

15.8

 

 

 

 

 

 

 

 

 

 

 

4,009

 

 

 

27

%

Renewable Power Generation

 

 

16

 

 

 

47

 

 

 

48.9

 

(7)

 

47

 

 

 

30.9

 

 

 

 

 

 

 

 

 

 

 

649

 

 

 

4

%

Subtotal

 

 

1,319

 

 

 

1,655

 

 

 

74.8

 

(7)

 

1,583

 

 

 

22.3

 

 

 

 

 

 

 

 

 

 

$

9,789

 

 

 

65

%

Tenant Lease Assignment only (8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wireless Communication

 

 

116

 

 

 

168

 

 

 

50.2

 

 

 

149

 

 

 

16.3

 

 

 

 

 

 

 

 

 

 

$

1,116

 

 

 

7

%

Outdoor Advertising

 

 

32

 

 

 

35

 

 

 

62.9

 

 

 

34

 

 

 

13.7

 

 

 

 

 

 

 

 

 

 

 

271

 

 

 

2

%

Renewable Power Generation

 

 

6

 

 

 

6

 

 

 

68.4

 

 

 

6

 

 

 

27.2

 

 

 

 

 

 

 

 

 

 

 

97

 

 

 

1

%

Subtotal

 

 

154

 

 

 

209

 

 

 

52.9

 

 

 

189

 

 

 

16.2

 

 

 

 

 

 

 

 

 

 

$

1,484

 

 

 

10

%

Tenant Lease on Fee Simple

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wireless Communication

 

 

19

 

 

 

28

 

 

 

99.0

 

(7)

 

27

 

 

 

19.1

 

 

 

 

 

 

 

 

 

 

$

1,153

 

 

 

8

%

Outdoor Advertising

 

 

73

 

 

 

96

 

 

 

99.0

 

(7)

 

96

 

 

 

5.4

 

 

 

 

 

 

 

 

 

 

 

943

 

 

 

6

%

Renewable Power Generation

 

 

15

 

 

 

17

 

 

 

99.0

 

(7)

 

17

 

 

 

30.1

 

 

 

 

 

 

 

 

 

 

 

1,656

 

 

 

11

%

Subtotal

 

 

107

 

 

 

141

 

 

 

99.0

 

(7)

 

140

 

 

 

10.9

 

 

 

 

 

 

 

 

 

 

$

3,752

 

 

 

25

%

Total

 

 

1,580

 

 

 

2,005

 

 

 

70.9

 

(9)

 

1,912

 

 

 

20.9

 

 

 

 

 

 

 

 

 

 

$

15,025

 

 

 

100

%

Aggregate Portfolio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wireless Communication

 

 

852

 

 

 

1,104

 

 

 

68.2

 

 

 

1,029

 

 

 

25.4

 

 

 

93

%

 

$

1,940

 

 

$

7,400

 

 

 

49

%

Outdoor Advertising

 

 

691

 

 

 

831

 

 

 

75.2

 

 

 

813

 

 

 

14.5

 

 

 

98

%

 

 

2,310

 

 

 

5,223

 

 

 

35

%

Renewable Power Generation

 

 

37

 

 

 

70

 

 

 

36.8

 

 

 

70

 

 

 

30.0

 

 

 

100

%

 

 

9,713

 

 

 

2,402

 

 

 

16

%

Total

 

 

1,580

 

 

 

2,005

 

 

 

70.9

 

(9)

 

1,912

 

 

 

20.9

 

 

 

95

%

 

$

2,396

 

 

$

15,025

 

 

 

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 June 30, 2019 were 3.3, 7.4, 17.6 and 5.3 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 June 30, 2019.  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 61 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 June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net income

 

$

9,265

 

 

$

6,105

 

 

$

16,475

 

 

$

12,846

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization expense

 

 

3,456

 

 

 

4,233

 

 

 

6,973

 

 

 

8,255

 

Impairments

 

 

 

 

 

103

 

 

 

204

 

 

 

103

 

Gain on sale of real property interests, net of income taxes

 

 

(8,620

)

 

 

 

 

 

(14,482

)

 

 

 

Adjustments for investment in unconsolidated joint venture

 

 

797

 

 

 

 

 

 

1,777

 

 

 

 

Distributions to preferred unitholders

 

 

(3,021

)

 

 

(2,930

)

 

 

(5,915

)

 

 

(4,874

)

Distributions to noncontrolling interests

 

 

(8

)

 

 

(8

)

 

 

(16

)

 

 

(12

)

FFO

 

$

1,869

 

 

$

7,503

 

 

$

5,016

 

 

$

16,318

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense reimbursement (1)

 

 

1,134

 

 

 

578

 

 

 

2,128

 

 

 

1,780

 

Acquisition-related expenses

 

 

368

 

 

 

196

 

 

 

495

 

 

 

381

 

Unrealized (gain) loss on derivatives

 

 

4,013

 

 

 

(1,286

)

 

 

6,775

 

 

 

(4,434

)

Straight line rent adjustments

 

 

159

 

 

 

63

 

 

 

269

 

 

 

144

 

Unit-based compensation

 

 

 

 

 

 

 

 

130

 

 

 

70

 

Amortization of deferred loan costs and discount on secured notes

 

 

770

 

 

 

990

 

 

 

1,528

 

 

 

1,881

 

Amortization of above- and below-market rents, net

 

 

(214

)

 

 

(347

)

 

 

(438

)

 

 

(675

)

Deferred income tax expense

 

 

53

 

 

 

51

 

 

 

53

 

 

 

51

 

Repayments of receivables

 

 

124

 

 

 

309

 

 

 

274

 

 

 

608

 

Adjustments for investment in unconsolidated joint venture

 

 

(12

)

 

 

 

 

 

25

 

 

 

 

Foreign currency transaction loss

 

 

47

 

 

 

 

 

 

68

 

 

 

 

AFFO

 

$

8,311

 

 

$

8,057

 

 

$

16,323

 

 

$

16,124

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO per common unit - diluted

 

$

0.07

 

 

$

0.30

 

 

$

0.20

 

 

$

0.66

 

AFFO per common unit - diluted

 

$

0.33

 

 

$

0.32

 

 

$

0.64

 

 

$

0.65

 

Weighted average common units outstanding - diluted

 

 

25,339

 

 

 

25,058

 

 

 

25,338

 

 

 

24,811

 

 

(1)

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 $120 million 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 Partners LP

Reconciliation of EBITDA and Adjusted EBITDA

In thousands

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Reconciliation of EBITDA and Adjusted EBITDA to Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

9,265

 

 

$

6,105

 

 

$

16,475

 

 

$

12,846

 

Interest expense

 

 

4,692

 

 

 

6,408

 

 

 

9,180

 

 

 

12,680

 

Amortization expense

 

 

3,456

 

 

 

4,233

 

 

 

6,973

 

 

 

8,255

 

Income tax expense

 

 

3,285

 

 

 

127

 

 

 

3,407

 

 

 

203

 

Adjustments for investment in unconsolidated joint venture

 

 

1,553

 

 

 

 

 

 

3,091

 

 

 

 

EBITDA

 

$

22,251

 

 

$

16,873

 

 

$

39,126