Landmark Infrastructure Partners LP Reports First Quarter Results

EL SEGUNDO, Calif., May 05, 2021 (GLOBE NEWSWIRE) -- Landmark Infrastructure Partners LP ("Landmark," the "Partnership," "we," "us" or "our") LMRK today announced its first quarter financial results.

Highlights

Reported rental revenue of $17.3 million, a 25% increase year-over-year;
Net income attributable to common unitholders of $0.11 and FFO of $0.36 per diluted unit for the quarter ended March 31, 2021;
AFFO of $0.37 per diluted unit for the quarter ended March 31, 2021, a 12% increase year-over-year;
As of March 31^st, deployed 201 digital kiosks within the Dallas Area Rapid Transit ("DART") network; and
Announced a quarterly distribution of $0.20 per common unit.

First Quarter 2021 Results
Rental revenue for the quarter ended March 31, 2021 was $17.3 million, an increase of 25% compared to the first quarter of 2020. Net income attributable to common unitholders per diluted unit in the first quarter of 2021 was $0.11, compared to a loss of $0.18 in the first quarter of 2020. FFO for the first quarter of 2021 was $0.36 per diluted unit, compared to $0.01 in the first quarter of 2020. AFFO per diluted unit, which excludes certain items including unrealized gains and losses on our interest rate hedges and foreign currency transaction gains and losses, was $0.37 in the first quarter of 2021 compared to $0.33 in the first quarter of 2020.

"We delivered another outstanding quarter of financial and operating results in the first quarter, an indication of the strength and consistency of our diversified portfolio," said Tim Brazy, Chief Executive Officer of the Partnership's general partner. "In addition, we continue to see improvement in our outdoor advertising segment. With vaccination rates increasing and more businesses re-opening across the country, we expect to see further progress throughout the rest of 2021."

Quarterly Distributions
On April 23, 2021, the Board of Directors of the Partnership's general partner declared a distribution of $0.20 per common unit, or $0.80 per common unit on an annualized basis, for the quarter ended March 31, 2021. The distribution is payable on May 14, 2021 to common unitholders of record as of May 4, 2021.

On April 22, 2021, the Board of Directors of the Partnership's general partner declared a quarterly cash distribution of $0.4375 per Series C preferred unit, which is payable on May 17, 2021 to Series C preferred unitholders of record as of May 3, 2021.

On April 22, 2021, 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 May 17, 2021 to Series B preferred unitholders of record as of May 3, 2021.

On March 19, 2021, 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 April 15, 2021 to Series A preferred unitholders of record as of April 1, 2021.

Capital and Liquidity
As of March 31, 2021, the Partnership had $218 million of outstanding borrowings under its revolving credit facility (the "Facility"), and approximately $232 million of undrawn borrowing capacity under the Facility, subject to compliance with certain covenants.

Recent Acquisitions
The Partnership did not make any significant acquisitions in the first quarter of 2021.

Conference Call Information
The Partnership will hold a conference call on Wednesday, May 5, 2021, at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time) to discuss its first quarter 2021 financial and operating results. The call can be accessed via a live webcast at https://edge.media-server.com/mmc/p/imtmduan, 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 9244627.

A webcast replay will be available approximately two hours after the completion of the conference call through May 5, 2022 at https://edge.media-server.com/mmc/p/imtmduan. The replay is also available through May 14, 2021 by dialing 855-859-2056 or 404-537-3406 and entering the access code 9244627.

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, digital infrastructure, 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, 2020 and Current Report on Form 8-K filed with the Commission on February 24, 2021. 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 March 31,
	2021			2020⁽¹⁾
Revenue
Rental revenue	$	17,284		$	13,821
Expenses
Property operating		712			509
General and administrative		1,481			1,488
Acquisition-related		88			5
Depreciation and amortization		4,680			3,602
Impairments		—			82
Total expenses		6,961			5,686
Other income and expenses
Interest and other income		69			175
Interest expense		(4,986	)		(4,298	)
Loss on early extinguishment of debt		—			(2,231	)
Unrealized gain (loss) on derivatives		1,124			(6,203	)
Equity income (loss) from unconsolidated joint venture		(689	)		150
Total other income and expenses		(4,482	)		(12,407	)
Income (loss) from continuing operations before income tax expense (benefit)		5,841			(4,272	)
Income tax benefit		(110	)		(245	)
Income (loss) from continuing operations		5,951			(4,027	)
Income from discontinued operations, net of tax		—			2,655
Net income (loss)		5,951			(1,372	)
Less: Net income attributable to noncontrolling interests		8			8
Net income (loss) attributable to limited partners		5,943			(1,380	)
Less: Distributions to preferred unitholders		(3,060	)		(3,060	)
Less: Accretion of Series C preferred units		(94	)		(97	)
Net income (loss) attributable to common unitholders	$	2,789		$	(4,537	)
Income (loss) from continuing operations per common unit
Common units – basic	$	0.11		$	(0.28	)
Common units – diluted	$	0.11		$	(0.28	)
Net income (loss) per common unit
Common units – basic	$	0.11		$	(0.18	)
Common units – diluted	$	0.11		$	(0.18	)
Weighted average common units outstanding
Common units – basic		25,489			25,461
Common units – diluted		25,489			25,461
Other Data
Total leased tenant sites (end of period)		1,962			1,952
Total available tenant sites (end of period)		2,062			2,058

⁽¹⁾

^{Prior period amounts have been revised to reflect classification of the European outdoor advertising portfolio as discontinued operations. As a result, operating results of the European outdoor advertising portfolio are presented as income from discontinued operations on the consolidated statements of operations for all periods presented.}

Landmark Infrastructure Partners LP
Consolidated Balance Sheets
In thousands, except per unit data
(Unaudited)

	March 31, 2021			December 31, 2020
Assets
Land	$	117,398		$	117,421
Real property interests		680,057			671,468
Construction in progress		43,545			44,787
Total land and real property interests		841,000			833,676
Accumulated depreciation and amortization of real property interests		(67,625	)		(63,474	)
Land and net real property interests		773,375			770,202
Investments in receivables, net		4,989			5,101
Investment in unconsolidated joint venture		59,711			60,880
Cash and cash equivalents		9,282			10,447
Restricted cash		3,259			3,195
Rent receivables		3,652			4,016
Due from Landmark and affiliates		2,061			1,337
Deferred loan costs, net		3,212			3,567
Deferred rent receivable		2,114			1,818
Derivative assets		362			—
Other intangible assets, net		18,808			19,417
Right-of-use asset, net		10,587			10,716
Other assets		4,172			4,082
Total assets	$	895,584		$	894,778
Liabilities and equity
Revolving credit facility	$	218,200		$	214,200
Secured notes, net		278,418			279,677
Accounts payable and accrued liabilities		5,263			6,732
Other intangible liabilities, net		5,726			6,081
Operating lease liability		8,741			8,818
Finance lease liability		77			—
Prepaid rent		6,279			4,446
Derivative liabilities		2,673			3,435
Total liabilities		525,377			523,389
Commitments and contingencies
Mezzanine equity
Series C cumulative redeemable convertible preferred units, 1,982,700 units issued and outstanding at March 31, 2021 and December 31, 2020, respectively		47,996			47,902
Equity
Series A cumulative redeemable preferred units, 1,788,843 units issued and outstanding at March 31, 2021 and December 31, 2020, respectively		41,850			41,850
Series B cumulative redeemable preferred units 2,628,932 units issued and outstanding at March 31, 2021 and December 31, 2020, respectively		63,014			63,014
Common units, 25,488,992 and 25,478,042 units issued and outstanding at March 31, 2021 and December 31, 2020, respectively		374,012			376,201
General Partner		(158,132	)		(159,070	)
Accumulated other comprehensive income (loss)		1,266			1,291
Total limited partners' equity		322,010			323,286
Noncontrolling interests		201			201
Total equity		322,211			323,487
Total liabilities, mezzanine equity and equity	$	895,584		$	894,778

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		693		896		75.7	⁽⁷⁾		846		34.5						$	5,386		32	%
Digital Infrastructure		1		1		99.0	⁽⁷⁾		1		8.4							450		3	%
Outdoor Advertising		566		822		81.7	⁽⁷⁾		796		15.4							3,320		19	%
Renewable Power Generation		15		47		28.9	⁽⁷⁾		47		33.6							288		2	%
Subtotal		1,275		1,766		735.0	⁽⁷⁾		1,690		26.5						$	9,444		56	%
Tenant Lease Assignment only⁽⁸⁾
Wireless Communication		115		168		44.8			148		16.4						$	1,083		6	%
Outdoor Advertising		33		36		61.0			34		12.2							262		2	%
Renewable Power Generation		6		6		46.3			6		24.2							58		—	%
Subtotal		154		210		47.7			188		15.9						$	1,403		8	%
Tenant Lease on Fee Simple
Wireless Communication		17		28		99.0	⁽⁷⁾		26		26.6						$	181		1	%
Digital Infrastructure		13		13		99.0	⁽⁷⁾		13		24.1							4,400		25	%
Outdoor Advertising		26		28		99.0	⁽⁷⁾		28		6.3							249		1	%
Renewable Power Generation		14		17		99.0	⁽⁷⁾		17		28.2							1,607		9	%
Subtotal		70		86		99.0	⁽⁷⁾		84		20.1						$	6,437		36	%
Total		1,499		2,062		69.2	⁽⁹⁾		1,962		25.1						$	17,284		100	%
Aggregate Portfolio
Wireless Communication		825		1,092		66.9			1,020		31.7		93	%	$	2,092	$	6,650		39	%
Digital Infrastructure		14		14		99.0			14		23.0		100	%		115,151		4,850		28	%
Outdoor Advertising		625		886		72.9			858		14.9		97	%		1,950		3,831		22	%
Renewable Power Generation		35		70		35.0			70		29.9		100	%		9,301		1,953		11	%
Total		1,499		2,062		69.2	⁽⁹⁾		1,962		25.1		95	%	$	3,215	$	17,284		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, digital infrastructure, outdoor advertising, renewable power generation and total portfolio as of March 31, 2021 were 2.5, 9.0, 6.8, 16.5 and 4.6 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 March 31, 2021. 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 60 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 March 31,
	2021			2020⁽¹⁾
Net income (loss)	$	5,951		$	(1,372	)
Adjustments:
Depreciation and amortization expense		4,680			3,892
Impairments		—			82
Adjustments for investment in unconsolidated joint venture		1,595			791
Distributions to preferred unitholders		(3,060	)		(3,060	)
Distributions to noncontrolling interests		(8	)		(8	)
FFO attributable to common unitholders	$	9,158		$	325
Adjustments:
General and administrative expense reimbursement⁽²⁾		938			1,101
Acquisition-related expenses		88			315
Unrealized (gain) loss on derivatives		(1,124	)		7,291
Straight line rent adjustments		(206	)		169
Unit-based compensation		120			120
Amortization of deferred loan costs and discount on secured notes		618			589
Amortization of above- and below-market rents, net		(231	)		(236	)
Deferred income tax benefit		(147	)		(299	)
Loss on early extinguishment of debt		—			2,231
Repayments of receivables		112			142
Adjustments for investment in unconsolidated joint venture		36			38
Foreign currency transaction gain		—			(3,363	)
AFFO attributable to common unitholders	$	9,362		$	8,423

FFO per common unit - diluted	$	0.36		$	0.01
AFFO per common unit - diluted	$	0.37		$	0.33
Weighted average common units outstanding - diluted		25,489			25,461

⁽¹⁾

^{Amounts include the effects that are reported in discontinued operations.}

⁽²⁾

^{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 March 31,
	2021			2020⁽¹⁾
Reconciliation of EBITDA and Adjusted EBITDA to Net Income
Net income (loss)	$	5,951		$	(1,372	)
Interest expense		4,986			4,701
Depreciation and amortization expense		4,680			3,892
Income tax benefit		(110	)		(60	)
EBITDA	$	15,507		$	7,161
Impairments		—			82
Acquisition-related		88			315
Unrealized (gain) loss on derivatives		(1,124	)		7,291
Loss on early extinguishment of debt		—			2,231
Unit-based compensation		120			120
Straight line rent adjustments		(206	)		169
Amortization of above- and below-market rents, net		(231	)		(236	)
Repayments of investments in receivables		112			142
Adjustments for investment in unconsolidated joint venture		2,284			1,494
Foreign currency transaction gain		—			(3,363	)
Deemed capital contribution to fund general and administrative expense reimbursement⁽²⁾		938			1,101
Adjusted EBITDA	$	17,488		$	16,507
Reconciliation of EBITDA and Adjusted EBITDA to Net Cash Provided by Operating Activities
Net cash provided by operating activities	$	12,454		$	9,463
Unit-based compensation		(120	)		(120	)
Unrealized gain (loss) on derivatives		1,124			(7,291	)
Loss on early extinguishment of debt		—			(2,231	)
Depreciation and amortization expense		(4,680	)		(3,892	)
Amortization of above- and below-market rents, net		231			236
Amortization of deferred loan costs and discount on secured notes		(618	)		(589	)
Impairments		—			(82	)
Adjustment for uncollectible accounts		—			(82	)
Equity income (loss) from unconsolidated joint venture		(689	)		150
Distributions of earnings from unconsolidated joint venture		(479	)		(675	)
Foreign currency transaction gain		—			3,363
Working capital changes		(1,272	)		378
Net income (loss)	$	5,951		$	(1,372	)
Interest expense		4,986			4,701
Depreciation and amortization expense		4,680			3,892
Income tax benefit		(110	)		(60	)
EBITDA	$	15,507		$	7,161
Less:
Unrealized gain on derivatives		(1,124	)		—
Straight line rent adjustment		(206	)		—
Amortization of above- and below-market rents, net		(231	)		(236	)
Foreign currency transaction gain		—			(3,363	)
Add:
Impairments		—			82
Acquisition-related		88			315
Unrealized loss on derivatives		—			7,291
Loss on early extinguishment of debt		—			2,231
Unit-based compensation		120			120
Straight line rent adjustment		—			169
Repayments of investments in receivables		112			142
Adjustments for investment in unconsolidated joint venture		2,284			1,494
Deemed capital contribution to fund general and administrative expense reimbursement⁽²⁾		938			1,101
Adjusted EBITDA	$	17,488		$	16,507

⁽¹⁾

^{Amounts include the effects that are reported in discontinued operations.}

⁽²⁾

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