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Landmark Infrastructure Partners LP Reports Second Quarter Results

EL SEGUNDO, Calif., Aug. 07, 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     $ 33,984  
Impairments           103       204       103  
Acquisition-related     368       196       495       381  
Unrealized (gain) loss on derivatives     4,013       (1,286 )     6,775       (4,434 )
Gain on sale of real property interests     (11,673 )           (17,535 )      
Unit-based compensation                 130       70  
Straight line rent adjustments     159       63       269       144  
Amortization of above- and below-market rents, net     (214 )     (347 )     (438 )     (675 )
Repayments of investments in receivables     124       309       274       608  
Adjustments for investment in unconsolidated joint venture     (92 )           53        
Foreign currency transaction loss     47             68        
Deemed capital contribution to fund general and administrative expense reimbursement(1)     1,134       578       2,128       1,780  
Adjusted EBITDA   $ 16,117     $ 16,489     $ 31,549     $ 31,961  
Reconciliation of EBITDA and Adjusted EBITDA to Net Cash Provided by Operating Activities                                
Net cash provided by operating activities   $ 8,716     $ 9,886     $ 16,883     $ 21,566  
Unit-based compensation                 (130 )     (70 )
Unrealized gain (loss) on derivatives     (4,013 )     1,286       (6,775 )     4,434  
Amortization expense     (3,456 )     (4,233 )     (6,973 )     (8,255 )
Amortization of above- and below-market rents, net     214       347       438       675  
Amortization of deferred loan costs and discount on secured notes     (770 )     (990 )     (1,528 )     (1,881 )
Receivables interest accretion     3             6        
Impairments           (103 )     (204 )     (103 )
Gain on sale of real property interests     11,673             17,535        
Allowance for doubtful accounts           (39 )     (5 )     (29 )
Equity loss from unconsolidated joint venture     164             109        
Distributions of earnings from unconsolidated joint venture     (1,101 )           (2,583 )      
Foreign currency transaction loss     (47 )           (68 )      
Working capital changes     (2,118 )     (49 )     (230 )     (3,491 )
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     $ 33,984  
Less:                                
Gain on sale of real property interests     (11,673 )           (17,535 )      
Unrealized gain on derivatives           (1,286 )           (4,434 )
Amortization of above- and below-market rents, net     (214 )     (347 )     (438 )     (675 )
Adjustments for investment in unconsolidated joint venture     (92 )                  
Add:                                
Impairments           103       204       103  
Acquisition-related     368       196       495       381  
Unrealized loss on derivatives     4,013             6,775        
Unit-based compensation                 130       70  
Straight line rent adjustment     159       63       269       144  
Repayments of investments in receivables     124       309       274       608  
Adjustments for investment in unconsolidated joint venture                 53        
Foreign currency transaction loss     47             68        
Deemed capital contribution to fund general and administrative expense reimbursement (1)     1,134       578       2,128       1,780  
Adjusted EBITDA   $ 16,117     $ 16,489     $ 31,549     $ 31,961  

__________________________

(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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