10-Q 1 unit-10q_20180630.htm 10-Q unit-10q_20180630.htm

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2018

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission File Number: 001-36708

 

 

Uniti Group Inc.

(Exact name of registrant as specified in its charter)

 

 

Maryland

46-5230630

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

 

10802 Executive Center Drive

Benton Building Suite 300

Little Rock, Arkansas

72211

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (501) 850-0820

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes      No    

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes        No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  (Do not check if a smaller reporting company)

  

Smaller reporting company

 

 

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes      No  

As of August 3, 2018, the registrant had 175,686,990 shares of common stock, $0.0001 par value per share, outstanding.

 

 


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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

        This Quarterly Report on Form 10-Q includes forward-looking statements as defined under U.S. federal securities law. Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief or expectations, including, but not limited to, statements regarding: our expectations regarding the future growth and demand of the telecommunication industry; future financing plans, business strategies, growth prospects and operating and financial performance; expectations regarding the impact and integration of Hunt Telecommunications, LLC ("Hunt") and Southern Light, LLC ("Southern Light"), including expectations regarding operational synergies with Uniti Towers and Uniti Fiber; expectations regarding settling conversion of our 3% convertible preferred stock in cash upon conversion; expectations regarding the probability of our obligation to pay contingent consideration upon Tower Cloud, Inc.'s ("Tower Cloud") or Hunt's achievement of certain defined operational and financial milestones; expectations regarding future deployment of fiber strand miles and recognition of revenue related thereto; expectations regarding levels of capital expenditures; expectations regarding the deductibility of goodwill for tax purposes; expectations regarding the reclassification of accumulated other comprehensive income (loss) related to derivatives to interest expense; expectations regarding the amortization of intangible assets; expectations regarding the U.S. TelePacific Holdings Corp (“TPx”) and CableSouth Media, LLC (“CableSouth”) transactions; and expectations regarding the payment of dividends.

        Words such as "anticipate(s)," "expect(s)," "intend(s)," "plan(s)," "believe(s)," "may," "will," "would," "could," "should," "seek(s)" and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. Although we believe that the assumptions underlying the forward-looking statements are reasonable, we can give no assurance that our expectations will be attained. Factors which could have a material adverse effect on our operations and future prospects or which could cause actual results to differ materially from our expectations include, but are not limited to:

 

the ability and willingness of our customers to meet and/or perform their obligations under any contractual arrangements entered into with us, including master lease arrangements; 

 

the ability of our customers to comply with laws, rules and regulations in the operation of the assets we lease to them; 

 

the ability and willingness of our customers to renew their leases with us upon their expiration, and the ability to reposition our properties on the same or better terms in the event of nonrenewal or in the event we replace an existing tenant; 

 

our ability to renew, extend or retain our contracts or to obtain new contracts with significant customers (including customers of the businesses that we acquire); 

 

the availability of and our ability to identify suitable acquisition opportunities and our ability to acquire and lease the respective properties on favorable terms or operate and integrate the acquired businesses; 

 

our ability to generate sufficient cash flows to service our outstanding indebtedness; 

 

our ability to access debt and equity capital markets; 

 

the impact on our business or the business of our customers as a result of credit rating downgrades, and fluctuating interest rates; 

 

adverse impacts of litigation or disputes involving us or our customers;

 

our ability to retain our key management personnel; 

 

our ability to maintain our status as a real estate investment trust (“REIT”);

 

changes in the U.S. tax law and other federal, state or local laws, whether or not specific to REITs, including the impact of the recently enacted U.S. tax reform legislation; 

 

covenants in our debt agreements that may limit our operational flexibility; 

 

the possibility that we may experience equipment failures, natural disasters, cyber attacks or terrorist attacks for which our insurance may not provide adequate coverage; 

 

the risk that we fail to fully realize the potential benefits of or have difficulty in integrating the companies we acquire; 

 

2


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other risks inherent in the communications industry and in the ownership of communications distribution systems, including potential liability relating to environmental matters and illiquidity of real estate investments;

 

the risk that the TPx or CableSouth transaction agreements may be modified or terminated prior to expiration or that the conditions to the TPx or CableSouth transactions may not be satisfied; and

 

additional factors discussed in Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Quarterly Report on Form 10-Q and in Part I, Item 1A "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2017, as well as those described from time to time in our future reports filed with the U.S. Securities and Exchange Commission (“SEC”).

Forward-looking statements speak only as of the date of this Quarterly Report. Except in the normal course of our public disclosure obligations, we expressly disclaim any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based.

 

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Uniti Group Inc.

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

 

 

 

Item 1.

Financial Statements (Unaudited)

5

 

Uniti Group Inc.

 

 

Condensed Consolidated Balance Sheets

5

 

Condensed Consolidated Statements of Income

6

 

Condensed Consolidated Statements of Comprehensive Income (Loss)

7

 

Condensed Consolidated Statements of Shareholders’ Deficit

8

 

Condensed Consolidated Statements of Cash Flows

9

 

Notes to Condensed Consolidated Financial Statements

10

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

30

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

45

Item 4.

Controls and Procedures

45

 

 

 

PART II.

OTHER INFORMATION

 

 

 

 

Item 1.

Legal Proceedings

46

Item 1A.

Risk Factors

46

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

46

Item 3.

Defaults Upon Senior Securities

46

Item 4.

Mine Safety Disclosures

46

Item 5.

Other Information

46

Item 6.

Exhibits

47

 

 

 

Signatures

48

 

 

 

 

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PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Uniti Group Inc.

Condensed Consolidated Balance Sheets

(unaudited)

(Thousands, except par value)

 

June 30, 2018

 

 

December 31, 2017

 

Assets:

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

$

3,095,805

 

 

$

3,053,889

 

Cash and cash equivalents

 

 

76,500

 

 

 

59,765

 

Accounts receivable, net

 

 

66,637

 

 

 

43,652

 

Goodwill

 

 

681,175

 

 

 

673,729

 

Intangible assets, net

 

 

416,430

 

 

 

429,357

 

Straight-line revenue receivable

 

 

54,626

 

 

 

47,041

 

Derivative asset

 

 

56,666

 

 

 

6,793

 

Other assets

 

 

23,819

 

 

 

15,856

 

Total Assets

 

$

4,471,658

 

 

$

4,330,082

 

 

Liabilities, Convertible Preferred Stock and Shareholders' Deficit:

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Accounts payable, accrued expenses and other liabilities

 

$

83,815

 

 

$

77,634

 

Accrued interest payable

 

 

28,424

 

 

 

28,684

 

Deferred revenue

 

 

653,787

 

 

 

537,553

 

Dividends payable

 

 

110,312

 

 

 

109,557

 

Deferred income taxes

 

 

55,819

 

 

 

55,478

 

Capital lease obligations

 

 

57,378

 

 

 

56,329

 

Contingent consideration

 

 

92,612

 

 

 

105,762

 

Notes and other debt, net

 

 

4,679,304

 

 

 

4,482,697

 

      Total liabilities

 

 

5,761,451

 

 

 

5,453,694

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 12)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible preferred stock, Series A, $0.0001 par value, 88 shares authorized, issued and outstanding, $87,500 liquidation value

 

 

85,019

 

 

 

83,530

 

 

 

 

 

 

 

 

 

 

Shareholders' Deficit:

 

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value, 50,000 shares authorized, no shares issued and outstanding

 

 

-

 

 

 

-

 

Common stock, $0.0001 par value, 500,000 shares authorized, issued and outstanding: 175,029 shares at June 30, 2018 and 174,852 at December 31, 2017

 

 

17

 

 

 

17

 

Additional paid-in capital

 

 

645,627

 

 

 

644,328

 

Accumulated other comprehensive income

 

 

56,237

 

 

 

7,821

 

Distributions in excess of accumulated earnings

 

 

(2,174,216

)

 

 

(1,960,715

)

Total Uniti shareholders' deficit

 

 

(1,472,335

)

 

 

(1,308,549

)

Noncontrolling interests - operating partnership units

 

 

97,523

 

 

 

101,407

 

      Total shareholders' deficit

 

 

(1,374,812

)

 

 

(1,207,142

)

Total Liabilities, Convertible Preferred Stock, and Shareholders' Deficit

 

$

4,471,658

 

 

$

4,330,082

 

 

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

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Uniti Group Inc.

Condensed Consolidated Statements of Income

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Thousands, except per share data)

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leasing

 

$

173,885

 

 

$

170,914

 

 

$

346,659

 

 

$

341,220

 

Fiber Infrastructure

 

 

67,389

 

 

 

34,983

 

 

 

134,356

 

 

 

69,795

 

Tower

 

 

2,472

 

 

 

2,455

 

 

 

5,842

 

 

 

3,883

 

Consumer CLEC

 

 

3,583

 

 

 

4,661

 

 

 

7,387

 

 

 

9,588

 

Total revenues

 

 

247,329

 

 

 

213,013

 

 

 

494,244

 

 

 

424,486

 

Costs and Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

79,385

 

 

 

75,086

 

 

 

156,992

 

 

 

148,451

 

Depreciation and amortization

 

 

114,842

 

 

 

102,599

 

 

 

229,563

 

 

 

203,960

 

General and administrative expense

 

 

20,681

 

 

 

13,503

 

 

 

43,201

 

 

 

27,481

 

Operating expense (exclusive of depreciation and amortization)

 

 

31,522

 

 

 

21,961

 

 

 

61,426

 

 

 

44,086

 

Transaction related costs

 

 

3,789

 

 

 

14,017

 

 

 

9,702

 

 

 

23,701

 

Other (income) expense

 

 

3,349

 

 

 

2,232

 

 

 

(536

)

 

 

13,571

 

      Total costs and expenses

 

 

253,568

 

 

 

229,398

 

 

 

500,348

 

 

 

461,250

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

(6,239

)

 

 

(16,385

)

 

 

(6,104

)

 

 

(36,764

)

Income tax (benefit) expense

 

 

(2,646

)

 

 

75

 

 

 

(3,742

)

 

 

(304

)

Net loss

 

 

(3,593

)

 

 

(16,460

)

 

 

(2,362

)

 

 

(36,460

)

Net loss attributable to noncontrolling interests

 

 

(90

)

 

 

-

 

 

 

(69

)

 

 

-

 

Net loss available to shareholders

 

 

(3,503

)

 

 

(16,460

)

 

 

(2,293

)

 

 

(36,460

)

Participating securities' share in earnings

 

 

(658

)

 

 

(381

)

 

 

(1,337

)

 

 

(768

)

Dividends declared on convertible preferred stock

 

 

(656

)

 

 

(656

)

 

 

(1,312

)

 

 

(1,312

)

Amortization of discount on convertible preferred stock

 

 

(745

)

 

 

(745

)

 

 

(1,490

)

 

 

(1,490

)

Net loss attributable to common shareholders

 

$

(5,562

)

 

$

(18,242

)

 

$

(6,432

)

 

$

(40,030

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.03

)

 

$

(0.11

)

 

$

(0.04

)

 

$

(0.25

)

Diluted

 

$

(0.03

)

 

$

(0.11

)

 

$

(0.04

)

 

$

(0.25

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

175,011

 

 

 

169,655

 

 

 

174,951

 

 

 

162,460

 

Diluted

 

 

175,011

 

 

 

169,655

 

 

 

174,951

 

 

 

162,460

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.60

 

 

$

0.60

 

 

$

1.20

 

 

$

1.20

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

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Uniti Group Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Thousands)

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net loss

 

$

(3,593

)

 

$

(16,460

)

 

$

(2,362

)

 

$

(36,460

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain (loss) on derivative contracts

 

 

14,605

 

 

 

(10,695

)

 

 

49,873

 

 

 

(6,129

)

Changes in foreign currency translation

 

 

(4,879

)

 

 

123

 

 

 

(314

)

 

 

4,998

 

Other comprehensive income (loss):

 

 

9,726

 

 

 

(10,572

)

 

 

49,559

 

 

 

(1,131

)

Comprehensive income (loss)

 

 

6,133

 

 

 

(27,032

)

 

 

47,197

 

 

 

(37,591

)

Comprehensive income attributable to noncontrolling interest

 

 

134

 

 

 

-

 

 

 

1,074

 

 

 

-

 

Comprehensive income (loss) attributable to common shareholders

 

$

5,999

 

 

$

(27,032

)

 

$

46,123

 

 

$

(37,591

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.


 

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Uniti Group Inc.

Condensed Consolidated Statements of Shareholders’ Deficit

(unaudited)

(Thousands, except share data)

 

Preferred Stock

 

 

Common Stock

 

 

Additional Paid-in Capital

 

 

Accumulated Other Comprehensive Income (Loss)

 

 

Distributions in Excess of Accumulated Earnings

 

 

Noncontrolling Interest

 

 

Total Shareholders' Deficit

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2016

 

 

-

 

 

$

-

 

 

 

155,138,637

 

 

$

15

 

 

$

141,092

 

 

$

(6,369

)

 

$

(1,537,183

)

 

$

-

 

 

$

(1,402,445

)

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(36,460

)

 

 

-

 

 

 

(36,460

)

Issuance of common stock

 

 

-

 

 

 

-

 

 

 

19,528,302

 

 

 

2

 

 

 

517,500

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

517,502

 

Amortization of discount of convertible preferred stock

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,490

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,490

)

Other comprehensive loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,131

)

 

 

-

 

 

 

-

 

 

 

(1,131

)

Common stock dividends

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(199,137

)

 

 

-

 

 

 

(199,137

)

Convertible preferred stock dividends

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,312

)

 

 

-

 

 

 

(1,312

)

Equity issuance cost

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(18,525

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(18,525

)

Net share settlement

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(420

)

 

 

-

 

 

 

(1,274

)

 

 

-

 

 

 

(1,694

)

Stock-based compensation

 

 

-

 

 

 

-

 

 

 

145,626

 

 

 

-

 

 

 

3,653

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3,653

 

Balance at June 30, 2017

 

 

-

 

 

$

-

 

 

 

174,812,565

 

 

$

17

 

 

$

641,810

 

 

$

(7,500

)

 

$

(1,775,366

)

 

$

-

 

 

$

(1,141,039

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2017

 

 

-

 

 

$

-

 

 

 

174,851,514

 

 

$

17

 

 

$

644,328

 

 

$

7,821

 

 

$

(1,960,715

)

 

$

101,407

 

 

$

(1,207,142

)

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,293

)

 

 

(69

)

 

 

(2,362

)

Amortization of discount on convertible preferred stock

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,490

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,490

)

Other comprehensive income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

48,416

 

 

 

-

 

 

 

1,143

 

 

 

49,559

 

Common stock dividends

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(211,486

)

 

 

-

 

 

 

(211,486

)

Distributions to noncontrolling interest

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,958

)

 

 

(4,958

)

Convertible preferred stock dividends

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,312

)

 

 

-

 

 

 

(1,312

)

Net share settlement

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,306

)

 

 

-

 

 

 

(269

)

 

 

-

 

 

 

(1,575

)

Stock-based compensation

 

 

-

 

 

 

-

 

 

 

177,321

 

 

 

-

 

 

 

4,095

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,095

 

Impact of change in accounting standard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,859

 

 

 

-

 

 

 

1,859

 

Balance at June 30, 2018

 

 

-

 

 

$

-

 

 

 

175,028,835

 

 

$

17

 

 

$

645,627

 

 

$

56,237

 

 

$

(2,174,216

)

 

$

97,523

 

 

$

(1,374,812

)

 

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

8


Table of Contents

 

Uniti Group Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

 

 

 

Six Months Ended June 30,

 

(Thousands)

 

2018

 

 

2017

 

Cash flow from operating activities

 

 

 

 

 

 

 

 

Net loss

 

$

(2,362

)

 

$

(36,460

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

229,563

 

 

 

203,960

 

Amortization of deferred financing costs and debt discount

 

 

12,147

 

 

 

10,981

 

Deferred income taxes

 

 

(4,257

)

 

 

(1,607

)

Straight-line revenues

 

 

(7,400

)

 

 

(7,248

)

Stock-based compensation

 

 

4,095

 

 

 

3,653

 

Change in fair value of contingent consideration

 

 

(488

)

 

 

13,024

 

Other

 

 

1,597

 

 

 

590

 

Changes in assets and liabilities, net of acquisitions:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(22,971

)

 

 

4,468

 

Other assets

 

 

(5,510

)

 

 

(2,671

)

Accounts payable, accrued expenses and other liabilities

 

 

26,559

 

 

 

7,712

 

Net cash provided by operating activities

 

 

230,973

 

 

 

196,402

 

Cash flow from investing activities

 

 

 

 

 

 

 

 

Acquisition of businesses, net of cash acquired

 

 

-

 

 

 

248

 

Acquisition of ground lease investments

 

 

-

 

 

 

(9,355

)

NMS asset acquisitions (Note 4)

 

 

(1,154

)

 

 

(67,924

)

Other capital expenditures

 

 

(163,467

)

 

 

(46,234

)

Net cash used in investing activities

 

 

(164,621

)

 

 

(123,265

)

Cash flow from financing activities

 

 

 

 

 

 

 

 

Principal payments on debt

 

 

(10,540

)

 

 

(10,540

)

Dividends paid

 

 

(212,043

)

 

 

(188,347

)

Payments of contingent consideration

 

 

(12,662

)

 

 

(18,791

)

Proceeds from issuance of Notes

 

 

-

 

 

 

201,000

 

Distributions paid to noncontrolling interest

 

 

(4,958

)

 

 

-

 

Borrowings under revolving credit facility

 

 

245,000

 

 

 

360,000

 

Payments under revolving credit facility

 

 

(50,000

)

 

 

(125,000

)

Capital lease payments

 

 

(2,738

)

 

 

(1,345

)

Deferred financing costs

 

 

-

 

 

 

(25,411

)

Common stock issuance, net of costs

 

 

-

 

 

 

498,977

 

Net share settlement

 

 

(1,575

)

 

 

(1,694

)

Net cash (used in) provided by financing activities

 

 

(49,516

)

 

 

688,849

 

Effect of exchange rates on cash and cash equivalents

 

 

(101

)

 

 

356

 

Net decrease in cash and cash equivalents

 

 

16,735

 

 

 

762,342

 

Cash and cash equivalents at beginning of period

 

 

59,765

 

 

 

171,754

 

Cash and cash equivalents at end of period

 

$

76,500

 

 

$

934,096

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

Property and equipment acquired but not yet paid

 

$

15,191

 

 

$

2,892

 

Tenant capital improvements