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Landmark Infrastructure Partners LP Reports Fourth Quarter Results

EL SEGUNDO, Calif., Feb. 27, 2020 (GLOBE NEWSWIRE) -- Landmark Infrastructure Partners LP (“Landmark,” the “Partnership,” “we,” “us” or “our”) (Nasdaq: LMRK) today announced its fourth quarter financial results.

Highlights

  • Reported rental revenue of $15.5 million, a 5% increase year-over-year;
  • Net loss attributable to common unitholders of $0.08 per diluted unit, FFO of $0.18 per diluted unit and AFFO of $0.34 per diluted unit;
  • Completed $170 million securitization refinancing transaction on January 15, 2020;
  • Completed acquisitions with total consideration of approximately $53 million in 2019; and
  • Announced a quarterly distribution of $0.3675 per common unit.

Fourth Quarter 2019 Results
Rental revenue for the quarter ended December 31, 2019 was $15.5 million, an increase of 5% compared to the fourth quarter of 2018.  Net income attributable to common unitholders per diluted unit in the fourth quarter of 2019 was a loss of $0.08, compared to a loss of $0.21 in the fourth quarter of 2018.  FFO for the fourth quarter of 2019 was $0.18 per diluted unit, compared to $0.01 in the fourth quarter of 2018.  FFO included a $3.5 million foreign currency transaction loss and a $1.6 million unrealized gain on interest rate hedges in the fourth quarter of 2019, and a $4.2 million unrealized loss on interest rate hedges in the fourth quarter of 2018.  AFFO per diluted unit, which excludes certain items including unrealized gains and losses on our interest rate hedges, was $0.34 in the fourth quarter of 2019 compared to $0.35 in the fourth quarter of 2018.

For the full year ended December 31, 2019, the Partnership reported rental revenue of $59.3 million compared to $64.8 million during the full year ended December 31, 2018.  The decline in revenue was primarily attributable to the contribution of assets to the Landmark Brookfield Asset Management joint venture (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, and the sale of a portfolio of assets in June 2019.  For the full year ended December 31, 2019, we generated net income of $21.6 million compared to $115.8 million during the full year ended December 31, 2018.  Net income attributable to common unitholders for the full year ended December 31, 2019 was $0.33 per diluted unit compared to $3.97 per diluted unit for the full year ended December 31, 2018.  For the full year ended December 31, 2019 we generated FFO of $0.58 per diluted unit and AFFO of $1.31 per diluted unit, compared to FFO of $0.96 per diluted unit and AFFO of $1.34 per diluted unit during the full year ended December 31, 2018

“We are pleased to announce another quarter of strong financial and operating results reflecting the stable and predictable performance of our portfolio.  We continue to make further progress with our development strategy, as we are beginning to place assets into service, and we anticipate installations to ramp in the coming quarters,” said Tim Brazy, Chief Executive Officer of the Partnership’s general partner.

Quarterly Distributions
On January 24, 2020, 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, 2019.  The distribution was paid on February 14, 2020 to common unitholders of record as of February 4, 2020.

On January 23, 2020, 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 18, 2020 to Series C preferred unitholders of record as of February 3, 2020.

On January 23, 2020, 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 18, 2020 to Series B preferred unitholders of record as of February 3, 2020.

On December 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 January 15, 2020 to Series A preferred unitholders of record as of January 2, 2020.

Capital and Liquidity
As of December 31, 2019, the Partnership had $232.9 million of outstanding borrowings under its revolving credit facility (the “Facility”), and approximately $217 million of undrawn borrowing capacity under the Facility, subject to compliance with certain covenants.

Recent Acquisitions
In the full year 2019, the Partnership acquired a total of 146 assets for total consideration of approximately $53 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 128,892 Series A preferred units and 81,778 Series B preferred units for gross proceeds of approximately $5.3 million for the full year 2019.

Conference Call Information
The Partnership will hold a conference call on Thursday, February 27, 2020, at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time) to discuss its fourth quarter 2019 financial and operating results.  The call can be accessed via a live webcast at https://edge.media-server.com/mmc/p/j6jb7rbd, 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 2269658.

A webcast replay will be available approximately two hours after the completion of the conference call through February 27, 2021 at https://edge.media-server.com/mmc/p/j6jb7rbd.  The replay is also available through March 7, 2020 by dialing 855-859-2056 or 404-537-3406 and entering the access code 2269658.

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 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 ended December 31, 2019 and Current Report on Form 8-K filed with the Commission on February 27, 2020.  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,  
    2019     2018     2019     2018  
Revenue                                
Rental revenue   $ 15,520     $ 14,714     $ 59,340     $ 64,765  
Expenses                                
Property operating     478       272       1,983       1,147  
General and administrative     1,298       1,208       5,567       4,731  
Acquisition-related     549       2,818       1,163       3,287  
Amortization     3,867       3,604       14,235       16,152  
Impairments     1,642       579       2,288       1,559  
Total expenses     7,834       8,481       25,236       26,876  
Other income and expenses                                
Interest and other income     68       362       832       1,642  
Interest expense     (4,731 )     (4,687 )     (18,170 )     (24,273 )
Loss on early extinguishment of debt           (157 )           (157 )
Unrealized gain (loss) on derivatives     1,636       (4,198 )     (7,327 )     1,010  
Equity income from unconsolidated joint venture     135             398       59  
Gain (loss) on sale of real property interests     (23 )     (155 )     17,985       99,884  
Foreign currency transaction gain (loss)     (3,478 )     (6 )     (2,433 )     (6 )
Total other income and expenses     (6,393 )     (8,841 )     (8,715 )     78,159  
Income (loss) before income tax (benefit) expense     1,293       (2,608 )     25,389       116,048  
Income tax (benefit) expense     148       (436 )     3,783       227  
Net income (loss)     1,145       (2,172 )     21,606       115,821  
Less: Net income attributable to noncontrolling interests     8       7       31       27  
Net income (loss) attributable to limited partners     1,137       (2,179 )     21,575       115,794  
Less: Distributions to preferred unitholders     (2,983 )     (2,888 )     (11,883 )     (10,630 )
Less: General Partner's incentive distribution rights     (197 )     (197 )     (788 )     (784 )
Less: Accretion of Series C preferred units     (95 )           (641 )      
Net income (loss) attributable to common and subordinated unitholders   $ (2,138 )   $ (5,264 )   $ 8,263     $ 104,380  
Net income (loss) per common and subordinated unit                                
Common units – basic   $ (0.08 )   $ (0.21 )   $ 0.33     $ 4.25  
Common units – diluted   $ (0.08 )   $ (0.21 )   $ 0.33     $ 3.97  
Subordinated units – basic and diluted   $     $     $     $ (0.78 )
Weighted average common and subordinated units outstanding                                
Common units – basic     25,353       25,283       25,343       24,626  
Common units – diluted     25,353       25,283       25,343       26,967  
Subordinated units – basic and diluted                       387  
Other Data                                
Total leased tenant sites (end of period)     1,923       1,831       1,923       1,831  
Total available tenant sites (end of period)     2,025       1,920       2,025       1,920  
                                 

 

Landmark Infrastructure Partners LP  
Consolidated Balance Sheets  
In thousands, except per unit data  
(Unaudited)  
   
    December 31, 2019     December 31, 2018  
Assets                
Land   $ 141,851     $ 128,302  
Real property interests     543,328       517,423  
Construction in progress     68,907       29,556  
Total land and real property interests     754,086       675,281  
Accumulated amortization of real property interests     (50,015 )     (39,069 )
Land and net real property interests     704,071       636,212  
Investments in receivables, net     8,822       18,348  
Investment in unconsolidated joint venture     62,059       65,670  
Cash and cash equivalents     7,446       4,108  
Restricted cash     5,619       3,672  
Rent receivables, net     5,105       4,292  
Due from Landmark and affiliates     1,132       1,390  
Deferred loan costs, net     4,557       5,552  
Deferred rent receivable     6,176       5,251  
Derivative asset           4,590  
Other intangible assets, net     23,966       20,839  
Assets held for sale (AHFS)     421       7,846  
Right of use asset, net     11,358        
Other assets     14,873       8,843  
Total assets   $ 855,605     $ 786,613  
Liabilities and equity                
Revolving credit facility   $ 232,907     $ 155,000  
Secured notes, net     217,098       223,685  
Accounts payable and accrued liabilities     8,598       7,435  
Other intangible liabilities, net     7,606       9,291  
Liabilities associated with AHFS           397  
Operating lease liability     10,268        
Finance lease liability     908        
Prepaid rent     5,747       5,418  
Derivative liabilities     3,149       402  
Total liabilities     486,281       401,628  
Commitments and contingencies                
Mezzanine equity                
Series C cumulative redeemable convertible preferred units, 1,988,700 and 2,000,000 units issued and outstanding at December 31, 2019 and December 31, 2018, respectively     47,666       47,308  
Equity                
Series A cumulative redeemable preferred units, 1,722,041 and 1,593,149 units issued and outstanding at December 31, 2019 and December 31, 2018, respectively     40,210       37,207  
Series B cumulative redeemable preferred units, 2,544,793 and 2,463,015 units issued and outstanding at December 31, 2019 and December 31, 2018, respectively     60,926       58,936  
Common units, 25,353,140 and 25,327,801 units issued and outstanding at December 31, 2019 and December 31, 2018, respectively     382,581       411,158  
General Partner     (162,277 )     (167,019 )
Accumulated other comprehensive income (loss)     17       (2,806 )
Total limited partners' equity     321,457       337,476  
Noncontrolling interests     201       201  
Total equity     321,658       337,677  
Total liabilities, mezzanine equity and equity   $ 855,605     $ 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     703       907       77.2   (7)   849       26.8                     $ 5,188       33 %
Outdoor Advertising     598       711       76.7   (7)   691       15.1                       4,267       28 %
Renewable Power Generation     18       47       47.9   (7)   47       30.5                       348       2 %
Subtotal     1,319       1,665       75.6   (7)   1,587       21.7                     $ 9,803       63 %
Tenant Lease Assignment only (8)                                                                        
Wireless Communication     116       166       50.3       146       15.9                     $ 1,034       7 %
Outdoor Advertising     33       36       62.1       34       13.0                       230       1 %
Renewable Power Generation     6       6       67.6       6       26.7                       60       %
Subtotal     155       208       52.8       186       15.7                     $ 1,324       8 %
Tenant Lease on Fee Simple                                                                        
Wireless Communication     22       31       99.0   (7)   29       23.9                     $ 1,664       11 %
Outdoor Advertising     83       104       99.0   (7)   104       4.7                       1,118       7 %
Renewable Power Generation     14       17       99.0   (7)   17       29.6                       1,611       11 %
Subtotal     119       152       99.0   (7)   150       11.1                     $ 4,393       29 %
Total     1,593       2,025       71.6   (9)   1,923       20.3                     $ 15,520       100 %
Aggregate Portfolio                                                                        
Wireless Communication     841       1,104       67.5       1,024       25.1       93 %   $ 1,975     $ 7,886       51 %
Outdoor Advertising     714       851       77.8       829       13.7       97 %     2,456       5,615       36 %
Renewable Power Generation     38       70       36.2       70       29.5       100 %     9,159       2,019       13 %
Total     1,593       2,025       71.6   (9)   1,923       20.3       95 %   $ 2,454     $ 15,520       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, 2019 were 3.2, 6.9, 17.2 and 5.1 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, 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 62 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,  
    2019     2018     2019     2018  
Net income (loss)   $ 1,145     $ (2,172 )   $ 21,606     $ 115,821  
Adjustments:                                
Amortization expense     3,867       3,604       14,235       16,152  
Impairments     1,642       579       2,288       1,559  
(Gain) loss on sale of real property interests, net of income taxes     45       155       (14,937 )     (99,884 )
Adjustments for investment in unconsolidated joint venture     790       923       3,358       923  
Distributions to preferred unitholders     (2,983 )     (2,888 )     (11,883 )     (10,630 )
Distributions to noncontrolling interests     (8 )     (7 )     (31 )     (27 )
FFO attributable to common and subordinated unitholders   $ 4,498     $ 194     $ 14,636     $ 23,914  
Adjustments:                                
General and administrative expense reimbursement (1)     896       764       3,954       2,833  
Acquisition-related expenses     549       2,818       1,163       3,287  
Unrealized (gain) loss on derivatives     (1,636 )     4,198       7,327       (1,010 )
Straight line rent adjustments     186       58       600       235  
Unit-based compensation                 130       70  
Amortization of deferred loan costs and discount on secured notes     789       805       3,097       3,809  
Amortization of above- and below-market rents, net     (236 )     (218 )     (890 )     (1,226 )
Deferred income tax expense (benefit)     (141 )     (215 )     (32 )     205  
Loss on early extinguishment of debt           157             157  
Repayments of receivables     134       193       564       1,108  
Adjustments for investment in unconsolidated joint venture     40       30       103       36  
Foreign currency transaction loss     3,478       6       2,433       6  
AFFO attributable to common and subordinated unitholders   $ 8,557     $ 8,790     $ 33,085     $ 33,424  
                                 
FFO per common and subordinated unit - diluted   $ 0.18     $ 0.01     $ 0.58     $ 0.96  
AFFO per common and subordinated unit - diluted   $ 0.34     $ 0.35     $ 1.31     $ 1.34  
Weighted average common and subordinated units outstanding - diluted     25,353       25,283       25,343       25,013  

(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 December 31,     Year Ended December 31,  
    2019     2018     2019     2018  
Reconciliation of EBITDA and Adjusted EBITDA to Net Income                                
Net income (loss)   $ 1,145     $ (2,172 )   $ 21,606     $ 115,821  
Interest expense     4,731       4,687       18,170       24,273  
Amortization expense     3,867       3,604       14,235       16,152  
Income tax expense (benefit)     148       (436 )     3,783       227  
EBITDA   $ 9,891     $ 5,683     $ 57,794     $ 156,473  
Impairments     1,642       579       2,288       1,559  
Acquisition-related     549       2,818       1,163       3,287  
Unrealized (gain) loss on derivatives     (1,636 )     4,198       7,327       (1,010 )
Loss on early extinguishment of debt           157             157  
(Gain) loss on sale of real property interests     23       155       (17,985 )     (99,884 )
Unit-based compensation                 130       70  
Straight line rent adjustments     186       58       600       235  
Amortization of above- and below-market rents, net     (236 )     (218 )     (890 )     (1,226 )
Repayments of investments in receivables     134       193       564       1,108  
Adjustments for investment in unconsolidated joint venture     1,499       1,644       6,169       1,697  
Foreign currency transaction loss     3,478       6       2,433       6  
Deemed capital contribution to fund general and administrative expense reimbursement(1)     896       764       3,954       2,833  
Adjusted EBITDA   $ 16,426     $ 16,037     $ 63,547     $ 65,305  
Reconciliation of EBITDA and Adjusted EBITDA to Net Cash Provided by Operating Activities                                
Net cash provided by operating activities   $ 9,709     $ 187     $ 31,663     $ 31,256  
Unit-based compensation                 (130 )     (70 )
Unrealized gain (loss) on derivatives     1,636       (4,198 )     (7,327 )     1,010  
Loss on early extinguishment of debt           (157 )           (157 )
Amortization expense     (3,867 )     (3,604 )     (14,235 )     (16,152 )
Amortization of above- and below-market rents, net     236       218       890       1,226  
Amortization of deferred loan costs and discount on secured notes     (789 )     (805 )     (3,097 )     (3,809 )
Receivables interest accretion           3       9       3  
Impairments     (1,642 )     (579 )     (2,288 )     (1,559 )
Gain (loss) on sale of real property interests     (23 )     (155 )     17,985       99,884  
Allowance for doubtful accounts     (19 )     (83 )     (126 )     (60 )
Equity income from unconsolidated joint venture     135             398       59  
Distributions of earnings from unconsolidated joint venture     (500 )           (3,383 )      
Foreign currency transaction loss     (3,478 )     (6 )     (2,433 )     (6 )
Working capital changes     (253 )     7,007       3,680       4,196  
Net income (loss)   $ 1,145     $ (2,172 )   $ 21,606     $ 115,821  
Interest expense     4,731       4,687       18,170       24,273  
Amortization expense     3,867       3,604       14,235       16,152  
Income tax expense (benefit)     148       (436 )     3,783       227  
EBITDA   $ 9,891     $ 5,683     $ 57,794     $ 156,473  
Less:                                
Gain on sale of real property interests                 (17,985 )     (99,884 )
Unrealized gain on derivatives     (1,636 )                 (1,010 )
Amortization of above- and below-market rents, net     (236 )     (218 )     (890 )     (1,226 )
Add:                                
Impairments     1,642       579       2,288       1,559  
Acquisition-related     549       2,818       1,163       3,287  
Unrealized loss on derivatives           4,198       7,327        
Loss on sale of real property interests     23       155              
Loss on early extinguishment of debt           157             157  
Unit-based compensation                 130       70  
Straight line rent adjustment     186       58       600       235  
Repayments of investments in receivables     134       193       564       1,108  
Adjustments for investment in unconsolidated joint venture     1,499       1,644       6,169       1,697  
Foreign currency transaction loss     3,478       6       2,433       6  
Deemed capital contribution to fund general and administrative expense reimbursement (1)     896       764       3,954       2,833  
Adjusted EBITDA   $ 16,426     $ 16,037     $ 63,547     $ 65,305  

(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.

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Source: Landmark Infrastructure Partners LP

Landmark Infrastructure Partners is a growth-oriented master limited partnership formed by Landmark Dividend LLC to acquire, own and manage a portfolio of real property interests that we lease to companies in the wireless communication, outdoor advertising and renewable power generation industries.

400 N. Continental Blvd., Suite 500
El Segundo, CA 90245, USA
310.598.3173
info@landmarkmlp.com

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