GlobeNewswire Inc | Aug 4, 2021 08:00AM EDT

August 04, 2021

EL SEGUNDO, Calif., Aug. 04, 2021 (GLOBE NEWSWIRE) -- Landmark Infrastructure Partners LP (Landmark, the Partnership, we, us or our) (Nasdaq: LMRK) today announced its second quarter financial results.

Highlights

-- Rental revenue of $17.6 million, a 27% increase year-over-year; -- Net income attributable to common unitholders of $0.09 and Funds From Operations (FFO) of $0.35 per diluted unit; -- Adjusted Funds From Operations (AFFO) of $0.38 per diluted unit, a 15% increase year-over-year; -- On June 2nd, an affiliate of DigitalBridge Group, Inc. (NYSE: DBRG), completed its acquisition of Landmark Dividend LLC, the Partnerships sponsor, and now owns and controls the general partner; -- As of June 30th, 235 digital kiosks deployed within the Dallas Area Rapid Transit (DART) network; and -- A quarterly distribution of $0.20 per common unit.

Second Quarter 2021 ResultsRental revenue for the quarter ended June 30, 2021 was $17.6 million, an increase of 27% compared to the second quarter of 2020. Net income attributable to common unitholders per diluted unit in the second quarter of 2021 was $0.09, compared to $0.61 in the second quarter of 2020. Results from the second quarter of 2020 included income from discontinued operations of $14.9 million, net of tax. FFO for the second quarter of 2021 was $0.35 per diluted unit, compared to $0.19 in the second 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 $0.38 in the second quarter of 2021 compared to $0.33 in the second quarter of 2020.

For the six months ended June 30, 2021, the Partnership reported rental revenue of $34.9 million compared to $27.7 million during the six months ended June 30, 2020. For the six months ended June 30, 2021, we generated net income of $11.4 million compared to $17.3 million during the six months ended June 30, 2020. Net income attributable to common unitholders for the six months ended June 30, 2021 was $0.20 per diluted unit compared to $0.43 per diluted unit for the six months ended June 30, 2020. For the six months ended June 30, 2021, we generated FFO of $0.71 per diluted unit and AFFO of $0.74 per diluted unit, compared to FFO of $0.20 per diluted unit and AFFO of $0.66 per diluted unit during the six months ended June 30, 2020.

The Partnership delivered another solid quarter of operating and financial results, said Tim Brazy, Chief Executive Officer of the Partnerships general partner. The opportunistic acquisitions completed during 2020, along with growing cash flows from our portfolio, contributed to strong year-over-year growth in AFFO.

Quarterly DistributionsOn July 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 June 30, 2021. The distribution is payable on August 13, 2021 to common unitholders of record as of August 3, 2021.

On July 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 August 16, 2021 to Series C preferred unitholders of record as of August 2, 2021.

On July 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 August 16, 2021 to Series B preferred unitholders of record as of August 2, 2021.

OnJune 18, 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 July 15, 2021 to Series A preferred unitholders of record as of July 1, 2021.

Capital and LiquidityAs of June 30, 2021, the Partnership had $223.2 million of outstanding borrowings under its revolving credit facility (the Facility), and approximately $226.8 million of undrawn borrowing capacity under the Facility, subject to compliance with certain covenants.

Recent AcquisitionsYear-to-date through June 30, 2021, the Partnership acquired a total of 4 assets for total consideration of approximately $1.6 million.

General and Administrative Reimbursement Agreement ExpirationUnder the second amendment to our Omnibus Agreement, dated as of January 30, 2019, among other things, the Partnership is required to reimburse our general partner and its affiliates for expenses related to certain general and administrative services that our sponsor provides to us in support of our business, subject to a quarterly cap of 3% of the Partnerships consolidated revenue during the current calendar quarter. The cap on expense reimbursement will last until the earlier of: (i) the date on which the Partnerships consolidated revenue for the immediately preceding four consecutive fiscal quarters (in the aggregate) exceeds $120,000,000 and (ii) November 19, 2021. Our sponsor has informed us that it intends to let the cap expire on November 19, 2021 and will seek reimbursement for costs and expenses it incurs for services provided to the Partnership.

Conference Call InformationThe Partnership will hold a conference call on Wednesday, August 4, 2021, at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time) to discuss its second quarter 2021 financial and operating results. The conference call will be limited to managements prepared remarks, with no question-and-answer session following the remarks, and can be accessed via a live webcast at https://edge.media-server.com/mmc/p/pq8ybeft, 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 6179776.

A webcast replay will be available approximately two hours after the completion of the conference call through August 4, 2022 at https://edge.media-server.com/mmc/p/pq8ybeft. The replay is also available through August 13, 2021 by dialing 855-859-2056 or 404-537-3406 and entering the access code 6179776.

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 Partnerships 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 Partnerships 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. 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 Six Months Ended June30, June30, 2021 2020 2021 2020 Revenue Rental revenue $ 17,570 $ 13,844 $ 34,854 $ 27,665 Expenses Property operating 1,066 354 1,778 863 General and administrative 951 1,223 2,432 2,711 Acquisition-related 38 86 126 91 Depreciation and 5,112 4,301 9,792 7,903 amortizationImpairments 27 102 27 184 Total expenses 7,194 6,066 14,155 11,752 Other income and expenses Interest and other income 160 96 229 271 Interest expense (4,882 ) (4,393 ) (9,868 ) (8,691 )Loss on early extinguishment ? ? ? (2,231 )of debtUnrealized gain (loss) on 193 (481 ) 1,317 (6,684 )derivativesEquity income (loss) from (401 ) 687 (1,090 ) 837 unconsolidated joint ventureGain on sale of real 110 ? 110 ? property interestsTotal other income and (4,820 ) (4,091 ) (9,302 ) (16,498 )expensesIncome (loss) fromcontinuing operations before 5,556 3,687 11,397 (585 )income tax expense (benefit)Income tax expense (benefit) 110 (90 ) ? (335 )Income (loss) from 5,446 3,777 11,397 (250 )continuing operationsIncome from discontinued ? 14,856 ? 17,511 operations, net of taxNet income 5,446 18,633 11,397 17,261 Less: Net incomeattributable to 8 8 16 16 noncontrolling interestsNet income attributable to 5,438 18,625 11,381 17,245 limited partnersLess: Distributions to (3,060 ) (3,037 ) (6,120 ) (6,097 )preferred unitholdersLess: Accretion of Series C (96 ) (96 ) (190 ) (193 )preferred unitsNet income attributable to $ 2,282 $ 15,492 $ 5,071 $ 10,955 common unitholdersIncome (loss) fromcontinuing operations per common unitCommon units ? basic $ 0.09 $ 0.02 $ 0.20 $ (0.26 )Common units ? diluted $ 0.09 $ 0.02 $ 0.20 $ (0.26 )Net income per common unit Common units ? basic $ 0.09 $ 0.61 $ 0.20 $ 0.43 Common units ? diluted $ 0.09 $ 0.61 $ 0.20 $ 0.43 Weighted average common units outstandingCommon units ? basic 25,489 25,476 25,489 25,468 Common units ? diluted 25,489 25,476 25,489 25,468 Other Data Total leased tenant sites 1,992 1,814 1,992 1,814 (end of period)Total available tenant sites 2,097 1,922 2,097 1,922 (end of period)

Landmark Infrastructure PartnersLPConsolidated Balance SheetsIn thousands, except per unit data(Unaudited)

June30, December31, 2021 2020Assets Land $ 117,915 $ 117,421 Real property interests 685,349 671,468 Construction in progress 42,764 44,787 Total land and real property interests 846,028 833,676 Accumulated depreciation and amortization of real (72,230 ) (63,474 )property interestsLand and net real property interests 773,798 770,202 Investments in receivables, net 4,850 5,101 Investment in unconsolidated joint venture 59,310 60,880 Cash and cash equivalents 11,902 10,447 Restricted cash 2,967 3,195 Rent receivables 3,839 4,016 Due from Landmark and affiliates 1,060 1,337 Deferred loan costs, net 2,915 3,567 Deferred rent receivable 2,421 1,818 Derivative assets 369 ? Other intangible assets, net 18,318 19,417 Right-of-use asset, net 10,425 10,716 Other assets 4,171 4,082 Total assets $ 896,345 $ 894,778 Liabilities and equity Revolving credit facility $ 223,200 $ 214,200 Secured notes, net 277,207 279,677 Accounts payable and accrued liabilities 5,223 6,732 Other intangible liabilities, net 5,380 6,081 Operating lease liability 8,669 8,818 Finance lease liability 74 ? Prepaid rent 5,862 4,446 Derivative liabilities 2,487 3,435 Total liabilities 528,102 523,389 Commitments and contingencies Mezzanine equity Series C cumulative redeemable convertiblepreferred units, 1,982,700units issued and 48,092 47,902 outstanding at June 30, 2021 and December 31,2020, respectivelyEquity Series A cumulative redeemable preferred units,1,788,843 unitsissued and outstanding at June 41,850 41,850 30, 2021 and December 31, 2020, respectivelySeries B cumulative redeemable preferred units2,628,932 unitsissued and outstanding at June 63,014 63,014 30, 2021 and December 31, 2020, respectivelyCommon units, 25,488,992 and 25,478,042 unitsissued and outstanding atJune 30, 2021 and 371,196 376,201 December 31, 2020, respectivelyGeneral Partner (157,623 ) (159,070 )Accumulated other comprehensive income (loss) 1,513 1,291 Total limited partners' equity 319,950 323,286 Noncontrolling interests 201 201 Total equity 320,151 323,487 Total liabilities, mezzanine equity and equity $ 896,345 $ 894,778

Landmark Infrastructure PartnersLPReal Property InterestTable

AvailableTenant LeasedTenant Sites^(1) Sites 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 LeaseAssignmentwith UnderlyingEasementWireless 693 896 75.5 ^ 844 34.3 $ 5,265 30 %Communication (7)Digital 1 1 99.0 ^ 1 8.2 450 3 %Infrastructure (7)Outdoor 567 854 80.8 ^ 827 15.1 3,378 20 %Advertising (7)Renewable ^Power 15 47 28.7 (7) 47 33.4 651 4 %GenerationSubtotal 1,276 1,798 73.1 ^ 1,719 26.2 $ 9,744 57 % (7)Tenant LeaseAssignment only^ (8)Wireless 116 170 44.5 148 16.2 $ 1,053 6 %CommunicationOutdoor 33 36 60.8 34 12.0 214 1 %AdvertisingRenewablePower 6 6 46.1 6 24.0 58 ? %GenerationSubtotal 155 212 47.3 188 15.7 $ 1,325 7 %Tenant Lease on Fee SimpleWireless 18 29 99.0 ^ 27 26.0 $ 211 1 %Communication (7)Digital 13 13 99.0 ^ 13 23.9 4,450 25 %Infrastructure (7)Outdoor 26 28 99.0 ^ 28 6.1 224 1 %Advertising (7)Renewable ^Power 14 17 99.0 (7) 17 28.0 1,616 9 %GenerationSubtotal 71 87 99.0 ^ 85 19.8 $ 6,501 36 % (7)Total 1,502 2,097 68.6 ^ 1,992 24.8 $ 17,570 100 % (9)Aggregate PortfolioWireless 827 1,095 66.5 1,019 31.5 93 % $ 2,052 $ 6,529 37 %CommunicationDigital 14 14 99.0 14 22.8 100 % 116,346 4,900 28 %InfrastructureOutdoor 626 918 72.1 889 14.7 97 % 1,954 3,816 22 %AdvertisingRenewablePower 35 70 34.7 70 29.7 100 % 11,074 2,325 13 %GenerationTotal 1,502 2,097 68.6 ^ 1,992 24.8 95 % $ 3,285 $ 17,570 100 % (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 which(1) 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 June 30, 2021 were 2.3, 8.8, 6.6, 16.3 and 4.4 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. 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 June 30, 2021.Excludes interest income on receivables.(7) Fee simple ownership and perpetual easements are shown as having a term of 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.(9) Excluding perpetual ownership rights, the average remaining property 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 Six Months Ended June30, June30, 2021 2020 ^(1) 2021 2020 ^(1) Net income $ 5,446 $ 18,633 $ 11,397 $ 17,261 Adjustments: Depreciation and 5,112 4,547 9,792 8,439 amortization expenseImpairments 27 102 27 184 Gain on sale of realproperty interests, net of (110 ) (15,723 ) (110 ) (15,723 )income taxesAdjustments for investmentin unconsolidated joint 1,430 292 3,025 1,083 ventureDistributions to preferred (3,060 ) (3,037 ) (6,120 ) (6,097 )unitholdersDistributions to (8 ) (8 ) (16 ) (16 )noncontrolling interestsFFO attributable to common $ 8,837 $ 4,806 $ 17,995 $ 5,131 unitholdersAdjustments: General and administrative 509 929 1,447 2,030 expense reimbursement^ (2)Acquisition-related 38 117 126 432 expensesUnrealized (gain) loss on (193 ) 1,192 (1,317 ) 8,483 derivativesStraight line rent (216 ) 208 (422 ) 377 adjustmentsUnit-based compensation ? ? 120 120 Amortization of deferredloan costs and discount on 630 616 1,248 1,205 secured notesAmortization of above- and (239 ) (245 ) (470 ) (481 )below-market rents, netDeferred income tax 56 (9 ) (91 ) (308 )(expense) benefitLoss on early ? ? ? 2,231 extinguishment of debtRepayments of receivables 139 101 251 243 Adjustments for investmentin unconsolidated joint 44 39 80 77 ventureForeign currency ? 728 ? (2,635 )transaction gainAFFO attributable to common $ 9,605 $ 8,482 $ 18,967 $ 16,905 unitholders FFO per common unit - $ 0.35 $ 0.19 $ 0.71 $ 0.20 dilutedAFFO per common unit - $ 0.38 $ 0.33 $ 0.74 $ 0.66 dilutedWeighted average common 25,489 25,476 25,489 25,468 units outstanding - diluted

(1) Amounts include the effects that are reported in discontinued operations. 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 exceeds $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 Six Months Ended June30, June30, 2021 2020 ^(1) 2021 2020 ^(1) Reconciliation of EBITDAand Adjusted EBITDA to Net IncomeNet income (loss) $ 5,446 $ 18,633 $ 11,397 $ 17,261 Interest expense 4,882 4,631 9,868 9,332 Depreciation and 5,112 4,547 9,792 8,439 amortization expenseIncome tax expense 110 160 ? 103 EBITDA $ 15,550 $ 27,971 $ 31,057 $ 35,135 Impairments 27 102 27 184 Acquisition-related 38 117 126 432 Unrealized (gain) loss on (193 ) 1,192 (1,317 ) 8,483 derivativesLoss on early ? ? ? 2,231 extinguishment of debt(Gain) loss on sale of real (110 ) (15,723 ) (110 ) (15,723 )property interestsUnit-based compensation ? ? 120 120 Straight line rent (216 ) 208 (422 ) 377 adjustmentsAmortization of above- and (239 ) (245 ) (470 ) (481 )below-market rents, netRepayments of investments 139 101 251 243 in receivablesAdjustments for investmentin unconsolidated joint 2,120 996 4,404 2,490 ventureForeign currency ? 728 ? (2,635 )transaction gainDeemed capital contributionto fund general and 509 929 1,447 2,030 administrative expensereimbursement^(^2)Adjusted EBITDA $ 17,625 $ 16,376 $ 35,113 $ 32,886 Reconciliation of EBITDAand Adjusted EBITDA to Net Cash Provided byOperatingActivitiesNet cash provided by $ 10,882 $ 10,633 $ 23,336 $ 20,096 operating activitiesUnit-based compensation ? ? (120 ) (120 )Unrealized gain (loss) on 193 (1,192 ) 1,317 (8,483 )derivativesLoss on early ? ? ? (2,231 )extinguishment of debtDepreciation and (5,112 ) (4,547 ) (9,792 ) (8,439 )amortization expenseAmortization of above- and 239 245 470 481 below-market rents, netAmortization of deferredloan costs and discount on (630 ) (616 ) (1,248 ) (1,205 )secured notesImpairments (27 ) (102 ) (27 ) (184 )Gain (loss) on sale of real 110 15,723 110 15,723 property interestsAdjustment for ? (68 ) ? (150 )uncollectible accountsEquity income (loss) fromunconsolidated joint (401 ) 687 (1,090 ) 837 ventureDistributions of earningsfrom unconsolidated joint ? (250 ) (479 ) (925 )ventureForeign currency ? (728 ) ? 2,635 transaction gainWorking capital changes 192 (1,152 ) (1,080 ) (774 )Net income (loss) $ 5,446 $ 18,633 $ 11,397 $ 17,261 Interest expense 4,882 4,631 9,868 9,332 Depreciation and 5,112 4,547 9,792 8,439 amortization expenseIncome tax expense 110 160 ? 103 EBITDA $ 15,550 $ 27,971 $ 31,057 $ 35,135 Less: Gain on sale of real (110 ) (15,723 ) (110 ) (15,723 )property interestsUnrealized gain on (193 ) ? (1,317 ) ? derivativesStraight line rent (216 ) ? (422 ) ? adjustmentAmortization of above- and (239 ) (245 ) (470 ) (481 )below-market rents, netForeign currency ? ? ? (2,635 )transaction gainAdd: Impairments 27 102 27 184 Acquisition-related 38 117 126 432 Unrealized loss on ? 1,192 ? 8,483 derivativesLoss on early ? ? ? 2,231 extinguishment of debtUnit-based compensation ? ? 120 120 Straight line rent ? 208 ? 377 adjustmentRepayments of investments 139 101 251 243 in receivablesAdjustments for investmentin unconsolidated joint 2,120 996 4,404 2,490 ventureForeign currency ? 728 ? ? transaction lossDeemed capital contributionto fund general and 509 929 1,447 2,030 administrative expensereimbursement^ (2)Adjusted EBITDA $ 17,625 $ 16,376 $ 35,113 $ 32,886

(1) Amounts include the effects that are reported in discontinued operations. 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.