GlobeNewswire Inc | May 5, 2021 08:00AM EDT

May 05, 2021

EL SEGUNDO, Calif., May 05, 2021 (GLOBE NEWSWIRE) -- Landmark Infrastructure Partners LP (Landmark, the Partnership, we, us or our) (Nasdaq: 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 31st, 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 ResultsRental 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 Partnerships 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 DistributionsOn April 23, 2021, the Board of Directors of the Partnerships general partner declared a distribution of$0.20 per common unit, or$0.80per 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 Partnerships 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 Partnerships 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.

OnMarch 19, 2021, the Board of Directors of the Partnerships 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 LiquidityAs 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 AcquisitionsThe Partnership did not make any significant acquisitions in the first quarter of 2021.

Conference Call InformationThe 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 LPThe 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 MeasuresFFO, 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 StatementsThis 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 Partnerships 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 Partnerships filings with the U.S. Securities and Exchange Commission (the Commission), including the Partnerships annual report on Form 10-K for the year endedDecember 31, 2020 and Current Report on Form 8-K filed with the Commission on February 24, 2021. These risks could cause the Partnerships 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 PartnersLPConsolidated Statements of OperationsIn thousands, except per unit data(Unaudited)

Three Months Ended March31, 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 (689 ) 150 ventureTotal other income and expenses (4,482 ) (12,407 )Income (loss) from continuing operations before 5,841 (4,272 )income tax expense (benefit)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 8 8 interestsNet 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 unitCommon 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

^Prior period amounts have been revised to reflect classification of the^ European outdoor advertising portfolio as discontinued operations. As a(1) 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 PartnersLPConsolidated Balance SheetsIn thousands, except per unit data(Unaudited)

March31, December31, 2021 2020Assets 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 (67,625 ) (63,474 )real property interestsLand 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 convertiblepreferred units, 1,982,700 47,996 47,902 units issued and outstanding at March 31, 2021and December 31, 2020, respectivelyEquity Series A cumulative redeemable preferred units,1,788,843 units 41,850 41,850 issued and outstanding at March 31, 2021 andDecember 31, 2020, respectivelySeries B cumulative redeemable preferred units2,628,932 units 63,014 63,014 issued and outstanding at March 31, 2021 andDecember 31, 2020, respectivelyCommon units, 25,488,992 and 25,478,042 unitsissued and outstanding at 374,012 376,201 March 31, 2021 and December 31, 2020,respectivelyGeneral 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 PartnersLPReal Property InterestTable

AvailableTenant LeasedTenant Sites Sites^(1) Average Average Average Monthly Quarterly Number of Remaining Remaining Tenant Effective Rental PercentageReal Property Infrastructure Number Property Number Lease Site Rent Revenue ^ ofQuarterly Interest Locations^ (1) Interest Term Occupancy Per (6) Rental (Years) (Years)^ Rate^ (3) Tenant (In Revenue ^(6) (2) Site ^(4) thousands) (5)Tenant LeaseAssignment with Underlying EasementWireless 693 896 75.7 ^ 846 34.5 $ 5,386 32 %Communication (7)Digital 1 1 99.0 ^ 1 8.4 450 3 %Infrastructure (7)Outdoor Advertising 566 822 81.7 ^ 796 15.4 3,320 19 % (7)Renewable Power 15 47 28.9 ^ 47 33.6 288 2 %Generation (7)Subtotal 1,275 1,766 735.0 ^ 1,690 26.5 $ 9,444 56 % (7)Tenant LeaseAssignment only^ (8)Wireless 115 168 44.8 148 16.4 $ 1,083 6 %CommunicationOutdoor Advertising 33 36 61.0 34 12.2 262 2 %Renewable Power 6 6 46.3 6 24.2 58 ? %GenerationSubtotal 154 210 47.7 188 15.9 $ 1,403 8 %Tenant Lease on Fee SimpleWireless 17 28 99.0 ^ 26 26.6 $ 181 1 %Communication (7)Digital 13 13 99.0 ^ 13 24.1 4,400 25 %Infrastructure (7)Outdoor Advertising 26 28 99.0 ^ 28 6.3 249 1 % (7)Renewable Power 14 17 99.0 ^ 17 28.2 1,607 9 %Generation (7)Subtotal 70 86 99.0 ^ 84 20.1 $ 6,437 36 % (7)Total 1,499 2,062 69.2 ^ 1,962 25.1 $ 17,284 100 % (9)Aggregate Portfolio Wireless 825 1,092 66.9 1,020 31.7 93 % $ 2,092 $ 6,650 39 %CommunicationDigital 14 14 99.0 14 23.0 100 % 115,151 4,850 28 %InfrastructureOutdoor Advertising 625 886 72.9 858 14.9 97 % 1,950 3,831 22 %Renewable Power 35 70 35.0 70 29.9 100 % 9,301 1,953 11 %GenerationTotal 1,499 2,062 69.2 ^ 1,962 25.1 95 % $ 3,215 $ 17,284 100 % (9)

^?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(1) 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. ^Assumes the exercise of all remaining renewal options of tenant leases.^ Assuming no exercise of renewal options, the average remaining lease terms(2) 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.^ ^Represents the number of leased tenant sites divided by the number of(3) available tenant sites.^ ^Occupancy and average monthly effective rent per tenant site are shown(4) only on an aggregate portfolio basis by industry.^ ^Represents total monthly revenue excluding the impact of amortization of(5) above and below market lease intangibles divided by the number of leased tenant sites.^ ^Represents GAAP rental revenue recognized under existing tenant leases for(6) the three months ended March 31, 2021.Excludes interest income on receivables.^ ^Fee simple ownership and perpetual easements are shown as having a term of(7) 99years for purposes of calculating the average remaining term. ^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(8) 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.^ ^Excluding perpetual ownership rights, the average remaining property(9) interest term on our tenant sites is approximately 60years.



Landmark Infrastructure PartnersLPReconciliation of Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO)In thousands, except per unit data(Unaudited)

Three Months Ended March31, 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 1,595 791 ventureDistributions 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^ 938 1,101 (2)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 618 589 secured notesAmortization 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 36 38 ventureForeign 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

^ ^Amounts include the effects that are reported in discontinued operations.(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 $120million and (ii)November 19,(2) 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 PartnersLPReconciliation of EBITDA and Adjusted EBITDAIn thousands(Unaudited)

Three Months Ended March31, 2021 2020^(1) Reconciliation of EBITDA and Adjusted EBITDA to Net IncomeNet 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 2,284 1,494 ventureForeign currency transaction gain ? (3,363 )Deemed capital contribution to fund general and 938 1,101 administrative expense reimbursement^(2)Adjusted EBITDA $ 17,488 $ 16,507 Reconciliation of EBITDA and Adjusted EBITDA to NetCash Provided by Operating ActivitiesNet 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 (618 ) (589 )secured notesImpairments ? (82 )Adjustment for uncollectible accounts ? (82 )Equity income (loss) from unconsolidated joint venture (689 ) 150 Distributions of earnings from unconsolidated joint (479 ) (675 )ventureForeign 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 2,284 1,494 ventureDeemed capital contribution to fund general and 938 1,101 administrative expense reimbursement^ (2)Adjusted EBITDA $ 17,488 $ 16,507

^ ^Amounts include the effects that are reported in discontinued operations.(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 $120million and (ii)November 19,(2) 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.