LMRK_Current Folio_10K

Table of Contents

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


FORM 10-K


(Mark One)

 

 

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

For the fiscal year ended December 31, 2015

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: 001-36735


 

Landmark Infrastructure Partners LP

(Exact name of registrant as specified in its charter) 

 

 

 

 

Delaware

 

61-1742322

(State or other jurisdiction of incorporation or organization)

 

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

2141 Rosecrans Avenue, Suite 2100,
P.O. Box 3429
El Segundo, CA 90245

 

90245

(Address of principal executive offices)

 

(Zip Code)

(310) 598-3173

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

 

 

Securities Registered Pursuant to Section 12(b) of the Act:

Title of Each Class

Common Units, Representing Limited Partner Interests

Name of Each Exchange on which Registered

NASDAQ Global Market

 

Securities Registered Pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes      No  

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes      No      

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 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 if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.    

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Large accelerated filer  

 

Accelerated filer  

 

Non-accelerated filer  

 

Smaller reporting company  

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

The aggregate market value of the equity held by non-affiliates of the registrant on June 30, 2015, the last business day of the registrant’s most recently completed second fiscal quarter, based on the closing price on that date of $16.14, was approximately $124 million. 

The registrant had 11,829,984 common units and 3,135,109 subordinated units outstanding at February 12, 2016.

 

DOCUMENTS INCORPORATED BY REFERENCE

None

 

 

 

 


 

Table of Contents

Table of Contents

 

 

 

 

 

Page
Number

 

PART I

 

Item 1. 

Business and Properties

Item 1A. 

Risk Factors

23 

Item 1B. 

Unresolved Staff Comments

50 

Item 2.

Properties

50 

Item 3. 

Legal Proceedings

50 

Item 4. 

Mine Safety Disclosures

50 

 

PART II

 

Item 5. 

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

50 

Item 6. 

Selected Financial Data

56 

Item 7. 

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

60 

Item 7A. 

Quantitative and Qualitative Disclosures About Market Risk

79 

Item 8. 

Financial Statements and Supplementary Data

79 

Item 9. 

Changes in and Disagreements with Accountants on Accounting and Financial Disclosures

79 

Item 9A. 

Controls and Procedures

79 

Item 9B. 

Other Information

80 

 

PART III

 

Item 10. 

Directors, Executive Officers and Corporate Governance

80 

Item 11. 

Executive Compensation

86 

Item 12. 

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

88 

Item 13. 

Certain Relationships and Related Transactions, and Director Independence

89 

Item 14. 

Principal Accountant Fees and Services

94 

 

PART IV

 

Item 15. 

Exhibits, Financial Statement Schedules

95 

 

 

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Unless the context otherwise requires, references in this report to "Landmark Infrastructure Partners LP," "our partnership," "we," "our," "us," or like terms for time periods prior to our initial public offering (the “IPO”) refer to Landmark Infrastructure Partners LP Predecessor, which we sometimes refer to as our “Predecessor”. For time periods subsequent to the IPO, references in this report to "Landmark Infrastructure Partners LP," "our partnership," "we," "our," "us," or like terms refer to Landmark Infrastructure Partners LP. References to “our general partner” refer to Landmark Infrastructure Partners GP LLC. References to “Fund A” refer to Landmark Dividend Growth Fund-A LLC, references to “Fund C” refer to Landmark Dividend Growth Fund-C LLC, references to “Fund D” refer to Landmark Dividend Growth Fund-D LLC, references to “Fund E” refer to Landmark Dividend Growth Fund-E LLC and references to “Fund F” refer to Landmark Dividend Growth Fund-F LLC. References to “the Contributing Landmark Funds” refer to Fund A and Fund D, collectively. As of December 31, 2015, references to “the Remaining Landmark Funds,” which have granted us a right of first offer on their assets, refer to Landmark Dividend Growth Fund-G LLC, Landmark Dividend Growth Fund-H LLC, and Landmark Dividend Growth Fund-I LLC, collectively.

Some of the information in this Annual Report on Form 10-K may contain forward‑looking statements. Forward‑looking statements give our current expectations, contain projections of results of operations or of financial condition, or forecasts of future events. Words such as “may,” “will,” “assume,” “forecast,” “position,” “predict,” “strategy,” “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe,” “project,” “budget,” “potential,” or “continue,” and similar expressions are used to identify forward‑looking statements. They can be affected by and involve assumptions used or known or unknown risks or uncertainties. Consequently, no forward‑looking statements can be guaranteed. When considering these forward‑looking statements, you should keep in mind the risk factors and other cautionary statements in this Annual Report on Form 10-K. Actual results may vary materially. You are cautioned not to place undue reliance on any forward‑looking statements. You should also understand that it is not possible to predict or identify all such factors and should not consider the following list to be a complete statement of all potential risks and uncertainties. The risk factors and other factors noted throughout this Annual Report on Form 10-K could cause our actual results to differ materially from the results contemplated by such forward‑looking statements, including the following:

·

the number of real property interests that we are able to acquire, and whether we are able to complete such acquisitions on favorable terms, which could be adversely affected by, among other things, general economic conditions, operating difficulties, and competition;

·

the prices we pay for our acquisitions of real property;

·

our management’s and our general partner’s conflicts of interest with our own;

·

the rent increases we are able to negotiate with our tenants, and the possibility of further consolidation among a relatively small number of significant tenants in the wireless communication and outdoor advertising industries;

·

our relative lack of experience with real property interest acquisition in the renewable power segment and abroad;

·

changes in the price and availability of real property interests;

·

changes in prevailing economic conditions;

·

unanticipated cancellations of tenant leases;

·

a decrease in our tenants’ demand for real property interests due to, among other things, technological advances or industry consolidation;

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·

inclement or hazardous weather conditions, including flooding, and the physical impacts of climate change, unanticipated ground, grade or water conditions, and other environmental hazards;

·

inability to acquire or maintain necessary permits;

·

changes in laws and regulations (or the interpretation thereof), including zoning regulations;

·

difficulty collecting receivables and the potential for tenant bankruptcy;

·

additional expenses associated with being a publicly traded partnership;

·

our ability to borrow funds and access capital markets, and the effects of the fluctuating interest rate on our existing and future borrowings;

·

restrictions in our revolving credit facility on our ability to issue additional debt or equity or pay distributions; and

·

certain factors discussed elsewhere in this Annual Report on Form 10-K.

All forward‑looking statements are expressly qualified in their entirety by the foregoing cautionary statements.

 

PART I

ITEM 1. Business and Properties

Formation and Initial Public Offering

 

We are a Delaware limited partnership formed in July 2014 by Landmark Dividend LLC (“Landmark” or “Sponsor”) 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. On November 19, 2014, we completed our initial public offering (the “IPO”). Our common units are listed on the NASDAQ Global Market under the symbol "LMRK".

 

Acquisitions in 2015

 

During the year ended December 31, 2015, the Partnership completed acquisitions of 761 tenant sites and related real property interests from the Sponsor and its affiliates. We refer to these collectively as the “Acquisitions,” and the acquired assets in the Acquisitions are the “Acquired Assets.” The Acquisitions are deemed to be transactions between entities under common control, which, under applicable accounting guidelines, requires the assets and liabilities to be transferred at the historical cost of the parent of the entities, with prior periods retroactively adjusted to furnish comparative information. See Note 3 to the Consolidated and Combined Financial Statements for additional details.

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Overview

We are a growth‑oriented master limited partnership formed by Landmark 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. Our real property interests underlie our tenants’ infrastructure assets, which include freestanding cellular towers and rooftop wireless sites, billboards, wind turbines and solar arrays. These assets are essential to the operations and profitability of our tenants. We seek to acquire real property interests subject to effectively triple net lease arrangements containing contractual rent increase clauses, or “rent escalators,” which we believe provide us with stable, predictable and growing cash flow.

Our real property interests consist of a diversified portfolio of long‑term and perpetual easements, tenant lease assignments and, to a lesser extent, fee simple properties located in 49 states and the District of Columbia. These real property interests entitle us to receive rental payments from leases on our 1,456 tenant sites. Approximately 85% of our leased tenant sites are leased to large, publicly traded companies (or their affiliates) that have a national footprint. These tenants, which we refer to as our “Tier 1” tenants, are comprised of AT&T Mobility, Sprint, T‑Mobile and Verizon in the wireless carrier industry, American Tower, Crown Castle and SBA Communications in the cellular tower industry, Outfront Media, Clear Channel Outdoor and Lamar Advertising in the outdoor advertising industry.

We believe the terms of our tenant lease arrangements provide us with stable, predictable and growing cash flow that will support consistent, growing distributions to our unitholders. Substantially all of our tenant lease arrangements are effectively triple net, meaning that our tenants or the underlying property owners are contractually responsible for property‑level operating expenses, including maintenance capital expenditures, property taxes and insurance. Over 94% of our tenant leases have contractual rent escalators, and some of our tenant leases contain revenue‑sharing provisions in addition to the base monthly or annual rental payments. In addition, we believe the physical infrastructure assets at our tenant sites are essential to the ongoing operations and profitability of our tenants. When combined with the challenges and costs of relocating these infrastructure assets and the key strategic locations of our real property interests, we expect continued high tenant retention and occupancy rates. As of December 31, 2015, we had a 98% occupancy rate, with 1,423 of our 1,456 total available tenant sites leased.

We benefit significantly from our relationship with Landmark, our sponsor. Landmark, a private company formed in 2010, is one of the largest acquirers of real property interests underlying the operationally essential infrastructure assets in the wireless communication, outdoor advertising and renewable power generation industries. Our initial assets and liabilities were contributed to us from Fund A and Fund D, two private investment funds sponsored, managed and controlled by Landmark. As of December 31, 2015, Landmark controlled more than 730 additional tenant sites through the Remaining Landmark Funds. The Remaining Landmark Funds have granted us a right of first offer on real property interests that they currently own or acquire in the future before selling or transferring those assets to any third party. We refer to these real property interests as the “right of first offer assets.” During the year ended December 31, 2015, the Partnership completed the acquisition of 401 tenant sites subject to our right of first offer. See further discussion of the acquisitions in Notes 3 and 14 to the Consolidated and Combined Financial Statements for additional information. We believe Landmark’s asset acquisition and management platform will benefit us by providing us with drop‑down acquisition opportunities from Landmark’s substantial and growing acquisition pipeline, as well as the capability to make direct acquisitions from third parties. Please read “Our Relationship with Landmark.”

We conduct business through three reportable business segments: Wireless Communication, Outdoor Advertising and Renewable Power Generation. Our reportable segments are strategic business units that offer different products and services. They are commonly managed, as all of these businesses require similar marketing and business strategies. We evaluate our segments based on revenue because substantially all of our tenant lease arrangements are effectively triple net. We believe this measure provides investors relevant and useful information because it is presented on an unlevered basis. See Notes to the Consolidated and Combined Financial Statements for additional information on our business segments.

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Our Portfolio of Real Property Interests

Our portfolio of property interests consists primarily of (i) long‑term and perpetual easements combined with lease assignment contracts (which we refer to as our “lease assignments)” (ii) lease assignments without easements and (iii) to a lesser extent, properties we own in fee simple. In connection with each real property interest, we have also acquired the rights to receive payment under pre‑existing ground leases from property owners, which we refer to as our “tenant leases.” Under our easements, property owners have granted us the right to use and lease the space occupied by our tenants, and when we have not been granted easements, we have acquired economic rights under lease assignments that are substantially similar to the economic rights granted under our easements, including the right to re‑lease the same space if the tenant lease expires or terminates.

The table below provides an overview of our portfolio of real property interests as of December 31, 2015.

Our Real Property Interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available Tenant

 

Leased Tenant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sites(1)

 

Sites

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

Average

 

 

 

 

Average

 

 

 

 

 

 

 

 

 

 

 

 

Remaining

 

 

 

Remaining

 

 

 

 

Monthly

 

 

 

 

Percentage

 

 

Number of

 

 

 

Property

 

 

 

Lease

 

Tenant Site

 

Effective Rent

 

Quarterly

 

of Quarterly

 

 

Infrastructure

 

 

 

Interest

 

 

 

Term

 

Occupancy

 

Per Tenant

 

Rental

 

Rental

Real Property Interest

  

Locations(1)

  

Number

  

(Years)

  

Number

  

(Years)(2)

  

Rate(3)(4)

  

Site(5)(6)

  

Revenue(6)

  

Revenue(6)

Tenant Lease Assignment with Underlying Easement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wireless Communication

 

732

 

950

 

78.7

(7)

927

 

23.7

 

 

 

 

 

 

 

$

4,932,429

 

67

%

Outdoor Advertising

 

249

 

306

 

89.5

(7)

300

 

13.7

 

 

 

 

 

 

 

 

1,129,099

 

15

%

Renewable Power Generation

 

6

 

8

 

34.2

 

8

 

30.5

 

 

 

 

 

 

 

 

65,423

 

1

%

Subtotal

 

987

 

1,264

 

81.0

(7)

1,235

 

21.4

 

 

 

 

 

 

 

$

6,126,951

 

83

%

Tenant Lease Assignment only(8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wireless Communication

 

107

 

151

 

53.5

 

147

 

18.4

 

 

 

 

 

 

 

$

946,802

 

13

%

Outdoor Advertising

 

10

 

10

 

80.9

 

10

 

14.9

 

 

 

 

 

 

 

 

67,892

 

1

%

Subtotal

 

117

 

161

 

55.2

 

157

 

18.2

 

 

 

 

 

 

 

$

1,014,694

 

14

%

Tenant Lease on Fee Simple

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wireless Communication

 

8

 

15

 

99.0

(7)

15

 

13.2

 

 

 

 

 

 

 

$

85,297

 

1

%

Outdoor Advertising

 

12

 

13

 

99.0

(7)

13

 

9.8

 

 

 

 

 

 

 

 

69,717

 

1

%

Renewable Power Generation

 

3

 

3

 

99.0

 

3

 

27.7

 

 

 

 

 

 

 

 

70,890

 

1

%

Subtotal

 

23

 

31

 

99.0

(7)

31

 

13.2

 

 

 

 

 

 

 

$

225,904

 

3

%

Total 

 

1,127

 

1,456

 

78.5

(9)

1,423

 

20.9

 

 

 

 

 

 

 

$

7,367,549

 

100

%

Aggregate Portfolio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wireless Communication

 

847

 

1,116

 

75.6

 

1,089

 

22.8

 

98

%

 

$

1,745

 

$

5,964,528

 

81

%

Outdoor Advertising

 

271

 

329

 

89.6

 

323

 

13.6

 

98

%

 

 

1,285

 

 

1,266,708

 

17

%

Renewable Power Generation

 

9

 

11

 

34.2

 

11

 

29.5

 

100

%

 

 

2,490

 

 

136,313

 

2

%

Total 

 

1,127

 

1,456

 

78.5

(9)

1,423

 

20.9

 

98

%

 

$

1,644

 

$

7,367,549

 

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 total portfolios as of December 31, 2015 were 5.2, 8.3, 21.8 and 6.0 years, respectively.

(3)

Represents number of leased tenant sites divided by 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, 2015. 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 67 years.

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Our real property interests entitle us to receive rental payments from tenant leases in the wireless communication, outdoor advertising and renewable power generation industries. The table below summarizes our Tier 1 tenants which comprised approximately 85% of our tenants as of December 31, 2015.

Our Tier 1 Tenants by Industry

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wireless Communication Industry

 

Outdoor Advertising Industry

Wireless Carriers

 

Tower Companies

 

 

 

 

 

 

 

% of Total

 

 

 

% of Total

 

 

 

% of Total

 

 

Leased

 

 

 

Leased

 

 

 

Leased

Tenant

 

Tenant Sites

 

Tenant

 

Tenant Sites

 

Tenant

 

Tenant Sites

T-Mobile

 

14

%

 

Crown Castle

 

14

%

 

Lamar Advertising

 

6

%

Verizon

 

10

%

 

American Tower

 

8

%

 

Outfront Media

 

6

%

AT&T Mobility

 

10

%

 

SBA Communications

 

2

%

 

Clear Channel Outdoor

 

6

%

Sprint

 

9

%

 

 

 

 

 

 

 

 

 

 

Total 

 

43

%

 

   Total 

 

24

%

 

   Total 

 

18

%

 

Our real property interests underlie a diverse range of tenant structures. We evaluate assets based on a variety of attributes, including, but not limited to, the marketability of the underlying title, the stability of the rental cash flow stream and opportunity for rent increases, tenant quality, the desirability of the structure’s geographic location, the importance of the structure to the ongoing operations and profitability of our tenants and the challenge and costs associated with tenants vacating sites. In certain instances, we lease a tenant site for our tenant’s base station and equipment, but not the tenant’s antenna array located on infrastructure owned by a third party. We refer to this type of arrangement as an “equipment only” lease. Within the wireless communication industry, our tenants’ structure types include rooftop sites, wireless towers (including monopoles, self supporting towers, stealth towers and guyed towers), other structures (including, for example, water towers and church steeples) and equipment only sites. In the outdoor advertising industry, our tenants’ structure types include both static and digital billboards. Our real property interests in the renewable power generation industry currently underlie wind turbines and solar arrays.

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The table below presents an overview of the structures underlying our real property interests, as of December 31, 2015:

Our Real Property Interests by Structure Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available Tenant

 

Leased Tenant

 

 

 

 

 

 

 

 

 

 

Sites(1)

 

Sites

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

Average

 

 

 

 

 

 

 

 

 

 

 

 

Remaining

 

 

 

Remaining

 

 

 

 

Percentage

 

 

Number of

 

 

 

Property

 

 

 

Lease

 

Quarterly

 

of Quarterly

 

 

Infrastructure

 

 

 

Interest

 

 

 

Term

 

Rental

 

Rental

Structure Type

 

Locations(1)

 

Number

 

(Years)(2)

 

Number

 

(Years)(3)

 

Revenue(4)

 

Revenue(4)

Rooftops

    

306

    

433

    

69.5

    

414

    

16.9

    

$

2,754,691

    

37

%

Towers

 

408

 

453

 

80.4

 

448

 

27.6

 

 

2,173,403

 

30

%

Billboards

 

271

 

329

 

89.6

 

323

 

13.6

 

 

1,266,708

 

17

%

Other structures

 

102

 

117

 

79.4

 

115

 

30.1

 

 

532,134

 

7

%

Equipment only(5)

 

31

 

113

 

75.7

 

112

 

17.4

 

 

504,300

 

7

%

Wind turbines

 

6

 

8

 

25.6

 

8

 

22.8

 

 

65,423

 

1

%

Solar

 

3

 

3

 

99.0

 

3

 

27.7

 

 

70,890

 

1

%

Total

 

1,127

 

1,456

 

78.5

(6)

1,423

 

20.9

 

$

7,367,549

 

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)

Fee simple ownership and perpetual easements are indicated as having a term of 99 years for purposes of calculating the average remaining term. Also includes “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 term) and a replacement tenant lease. The remaining lease assignment term is, therefore, in many cases, higher than the remaining tenant lease term.

(3)

Assumes the exercise of all remaining renewal options. Assuming no exercise of renewal options, the average remaining lease terms for our wireless communication, outdoor advertising, renewable power generation and total portfolio as of December 31, 2015 were 5.2, 8.3, 21.8 and 6.0 years, respectively.

(4)

Represents GAAP rental revenue recognized under existing tenant leases for the three months ended December 31, 2015. Excludes interest income on receivables.

(5)

In certain instances, we lease our tenant site for our tenant’s base station and equipment, but the tenant’s antenna array and related hardware are located on infrastructure owned by a third party. We refer to this type of arrangement as an “equipment only” lease. At 57 infrastructure locations, we have leased space for equipment together with other structures.

(6)

Excluding perpetual ownership rights, the average remaining property interest term on our tenant sites is approximately 67 years.

We are geographically diversified with assets located in 49 states, plus the District of Columbia, and no single state accounted for more than 15% of our tenant sites as of December 31, 2015. Additionally, the majority of our wireless communication and outdoor advertising assets are located in major cities, significant intersections, and traffic arteries in the United States that benefit from high urban density, favorable demographic trends, strong traffic counts and strict zoning restrictions with legacy zoning rights (commonly referred to as “grandfather clauses.”) These attributes enhance the long‑term value of our real property interests, as our wireless communication and outdoor advertising tenants are focused on placing their assets in dense areas with large populations and along high‑traffic corridors. Additionally, local zoning regulations often restrict the construction of new cellular towers, rooftop wireless structures and outdoor advertising and billboard structures, creating barriers to entry and a supply shortage. We believe this leads to improved value of our assets and further increases the likelihood for continued high occupancy.

8


 

Table of Contents

The table below summarizes our real property interests by state as of December 31, 2015.

Our Real Property Interests by State

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wireless Communication

 

Outdoor Advertising

 

Renewable Power Generation

 

Total

 

 

Number of

 

 

 

 

Number of

 

 

 

 

Number of

 

 

 

 

Number of

 

 

 

 

Percentage of

 

 

Available

 

Quarterly

 

Available

 

Quarterly

 

Available

 

Quarterly

 

Available

 

Quarterly

 

Quarterly

 

 

Tenant

 

Rental

 

Tenant

 

Rental

 

Tenant

 

Rental

 

Tenant

 

Rental

 

Rental

 

 

Sites

 

Revenue(1)

 

Sites

 

Revenue(1)

 

Sites

 

Revenue(1)

 

Sites

 

Revenue(1)

 

Revenue

Alabama

    

7

    

$

32,290

    

1

    

$

9,143

    

 —

    

$

 —

    

8

    

$

41,433

    

0.6

%

Alaska

 

2

 

 

5,714

 

 —

 

 

 —

 

 —

 

 

 —

 

2

 

 

5,714

 

0.1

%

Arizona

 

42

 

 

172,144

 

12

 

 

55,411

 

 —

 

 

 —

 

54

 

 

227,555

 

3.1

%

Arkansas

 

9

 

 

24,781

 

2

 

 

6,187

 

 —

 

 

 —

 

11

 

 

30,968

 

0.4

%

California

 

157

 

 

891,535

 

12

 

 

70,816

 

2

 

 

1,625

 

171

 

 

963,976

 

13.1

%

Colorado

 

31

 

 

166,301

 

4

 

 

9,209

 

 —

 

 

 —

 

35

 

 

175,510

 

2.4

%

Connecticut

 

24

 

 

170,036

 

7

 

 

44,559

 

 —

 

 

 —

 

31

 

 

214,595

 

2.9

%

District of Columbia

 

1

 

 

6,483

 

 —

 

 

 —

 

 —

 

 

 —

 

1

 

 

6,483

 

0.1

%

Florida

 

60

 

 

386,870

 

37

 

 

156,924

 

 —

 

 

 —

 

97

 

 

543,794

 

7.4

%

Georgia

 

17

 

 

88,043

 

40

 

 

193,631

 

 —

 

 

 —

 

57

 

 

281,674

 

3.8

%

Hawaii

 

1

 

 

4,489

 

 —

 

 

 —

 

 —

 

 

 —

 

1

 

 

4,489

 

0.1

%

Illinois

 

78

 

 

415,378

 

25

 

 

134,482

 

2

 

 

43,676

 

105

 

 

593,536

 

8.1

%

Indiana

 

2

 

 

16,863

 

10

 

 

17,721

 

 —

 

 

 —

 

12

 

 

34,584

 

0.5

%

Iowa

 

5

 

 

10,167

 

3

 

 

2,866

 

 —

 

 

 —

 

8

 

 

13,033

 

0.2

%

Idaho

 

1

 

 

945

 

 —

 

 

 —

 

 —

 

 

 —

 

1

 

 

945

 

 —

%

Kansas

 

15

 

 

57,130

 

2

 

 

2,975

 

3

 

 

10,486

 

20

 

 

70,591

 

1.0

%

Kentucky

 

1

 

 

3,316

 

2

 

 

7,441

 

 —

 

 

 —

 

3

 

 

10,757

 

0.1

%

Louisiana

 

12

 

 

30,194

 

1

 

 

1,310

 

 —

 

 

 —

 

13

 

 

31,504

 

0.4

%

Maine

 

2

 

 

9,437

 

 —

 

 

 —

 

 —

 

 

 —

 

2

 

 

9,437

 

0.1

%

Maryland

 

5

 

 

46,374

 

1

 

 

3,976

 

 —

 

 

 —

 

6

 

 

50,350

 

0.7

%

Massachusetts

 

35

 

 

187,878

 

2

 

 

28,390

 

 —

 

 

 —

 

37

 

 

216,268

 

2.9

%

Michigan

 

20

 

 

95,126

 

19

 

 

21,451

 

 —

 

 

 —

 

39

 

 

116,577

 

1.6

%

Minnesota

 

8

 

 

34,068

 

4

 

 

10,776

 

 —

 

 

 —

 

12

 

 

44,844

 

0.6

%

Mississippi

 

7

 

 

17,043

 

6

 

 

14,510

 

 —

 

 

 —

 

13

 

 

31,553

 

0.4

%

Missouri

 

22

 

 

100,176

 

31

 

 

112,412

 

 —

 

 

 —

 

53

 

 

212,588

 

2.9

%

Montana

 

1

 

 

4,548

 

 —

 

 

 —

 

 —

 

 

 —

 

1

 

 

4,548

 

0.1

%

Nebraska

 

1

 

 

3,032

 

3

 

 

6,530

 

 —

 

 

 —

 

4

 

 

9,562

 

0.1

%

New Hampshire

 

4

 

 

40,799

 

 —

 

 

 —

 

 —

 

 

 —

 

4

 

 

40,799

 

0.6

%

Nevada

 

46

 

 

163,792

 

3

 

 

14,278

 

 —

 

 

 —

 

49

 

 

178,070

 

2.4

%

New Jersey

 

96

 

 

661,701

 

3

 

 

4,080

 

1

 

 

27,214

 

100

 

 

692,995

 

9.4

%

New Mexico

 

8

 

 

39,237

 

2

 

 

3,184

 

 —

 

 

 —

 

10

 

 

42,421

 

0.6

%

New York

 

133

 

 

927,207

 

1

 

 

1,331

 

 —

 

 

 —

 

134

 

 

928,538

 

12.6

%

North Carolina

 

11

 

 

37,537

 

10

 

 

13,624

 

 —

 

 

 —

 

21

 

 

51,161

 

0.7

%

North Dakota

 

2

 

 

2,268

 

 —

 

 

 —

 

 —

 

 

 —

 

2

 

 

2,268

 

 —

%

Ohio

 

18

 

 

70,061

 

8

 

 

25,028

 

 —

 

 

 —

 

26

 

 

95,089

 

1.3

%

Oklahoma

 

13

 

 

77,838

 

2

 

 

7,589

 

1

 

 

4,915

 

16

 

 

90,342

 

1.2

%

Oregon

 

21

 

 

109,099

 

1

 

 

28,730

 

 —

 

 

 —

 

22

 

 

137,829

 

1.9

%

Pennsylvania

 

27

 

 

133,242

 

9

 

 

24,218

 

 —

 

 

 —

 

36

 

 

157,460

 

2.1

%

Rhode Island

 

1

 

 

7,326

 

 —

 

 

 —

 

 —

 

 

 —

 

1

 

 

7,326

 

0.1

%

South Carolina

 

4

 

 

16,621

 

4

 

 

5,097

 

 —

 

 

 —

 

8

 

 

21,718

 

0.3

%

South Dakota

 

9

 

 

15,306

 

 —

 

 

 —

 

 —

 

 

 —

 

9

 

 

15,306

 

0.2

%

Tennessee

 

10

 

 

36,021

 

12

 

 

83,536

 

 —

 

 

 —

 

22

 

 

119,557

 

1.6

%

Texas

 

90

 

 

286,142

 

35

 

 

100,636

 

1

 

 

42,423

 

126

 

 

429,201

 

5.8

%

Utah

 

13

 

 

69,453

 

8

 

 

11,742

 

 —

 

 

 —

 

21

 

 

81,195

 

1.1

%

Virginia

 

3

 

 

16,183

 

1

 

 

4,192

 

 —

 

 

 —

 

4

 

 

20,375

 

0.3

%

Vermont

 

4

 

 

111,792

 

 —

 

 

 —

 

 —

 

 

 —

 

4

 

 

111,792

 

1.5

%

Washington

 

19

 

 

94,778

 

3

 

 

8,996

 

 —

 

 

 —

 

22

 

 

103,774

 

1.4

%

West Virginia

 

1

 

 

3,697

 

2

 

 

2,811

 

 —

 

 

 —

 

3

 

 

6,508

 

0.1

%

Wisconsin

 

17

 

 

64,067

 

1

 

 

16,916

 

 —

 

 

 —

 

18

 

 

80,983

 

1.1

%

Wyoming

 

 —

 

 

 —

 

 —

 

 

 —

 

1

 

 

5,974

 

1

 

 

5,974

 

0.1

%

Total

 

1,116

 

$

5,964,528

 

329

 

$

1,266,708

 

11

 

$

136,313

 

1,456

 

$

7,367,549

 

100

%


(1)

Represents GAAP rental revenue recognized under existing tenant leases for the three months ended December 31, 2015. Excludes interest income on receivables.

9


 

Table of Contents

Approximately 69% and 81% of our tenant sites are located in Top‑50 and Top‑100 ranked BTAs, respectively, including New York, Los Angeles and Chicago. We believe our locations in major metropolitan population centers are highly desirable for our tenants in the wireless communication and outdoor advertising industries seeking to reach a large customer base.

The table below summarizes our real property interests by BTA rank as of December 31, 2015.

Our Real Property Interests Ranked by Basic Trading Area(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wireless Communication

 

Outdoor Advertising

 

Total(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentage of

 

 

 

Number of

 

Quarterly

 

Number of

 

Quarterly

 

Number of

 

Quarterly

 

Quarterly

 

 

 

Tenant