LMRK - Earnings call transcript Q1 2021 | Landmark Infrastructure Partners LP

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Operator

Good day and thank you for standing-by. Welcome to the Landmark Infrastructure Partners First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker for today, Marcelo Choi, Vice President of Investor Relations. ahead. go Please

Marcelo Choi

and good are subject Landmark that I to and we'll our A factors like Chief welcome to Doyle, in on the current to to an following your like Thank our presentation. Brazy, our George statements, Partners' morning. Chief first to Presenting business, of uncertainties. overview would Infrastructure and which risks expectations. future from Financial forward-looking call certain Officer. Today, also are today and quarter you number take comments and all operating questions cause and today will uncertainties periods you, the include participants actual financial I'd materially we'll Tim remind of differ could earnings share Officer; call. Executive results

For these discussion partnership's release we and to the you on of earnings encourage SEC. read file with the documents a complete risks,

non-GAAP and the the as reconciliations over may such FFO, GAAP call measures refer we of release these and EBITDA that, earnings Tim. Please to call. for our with most turn public I'll non-GAAP AFFO, definitions Additionally, measures. comparable their filings to the during and measures, refer EBITDA to adjusted And to

Tim Brazy

the well you is thank of thank everyone you. at us care. but know today. the I we're hope for Marcelo, And tunnel. taking I doing still like think end all see that light to the joining to that And I'd challenges, facing and we're starting

quarter and results. release ongoing challenges from we Now extremely reported And this we the of financial saw meet the as morning, operating you from strong continue our pandemic. to another

quarter we were Rental half the driven acquisitions by unit in data higher was unit AFFO quarter from the assets as and this stability joint redeployed outdoor second showcasing indicator I think our we clearly $X.XX and year-over-year the to capital a the pointing of per interest significantly XXXX.Those acquired the our made were strong centre per of portfolio. in our of this European very reported continued was progress. strength revenues the venture. our advertising sale leading again

see portfolio and can from year-over-year continues you As quarter's extremely results, growth. remains to stable this deliver the

to Our renewable downturns have have very essential the wireless world all crisis industries been roles began, and as assets such not generally in pandemic. these continue communication, generally infrastructure seen by you well performed how impacted the Since power play perform have industries past generation come and the digital expect. in economic today and we've to well would these

which ease. pandemic to The After level by segment, to outdoor the of as segment revenues advertising the last of advertising recovery the in impact it show impacted in segment quarter. revenue has advertising in sequential the quarters the our continues each in the has continues the higher Our been been most at of outdoor second of XXXX, of the last other outdoor we've beginning seen a lowest quarter of pandemic improvement. end year's advertising two activity since industry second quarters phase two decline reached

advertising those in travel, as levels entertainment forward as commensurately. to well and the rising and openings vaccination are capacity, pre-pandemic outdoor in regions advertising rates further greater for across and outdoor on industry, with and capacity, fitness business key Spending lead businesses activity reopened increases movies markets exceeds most the most including expected have anticipated advertising now in significantly and among increasing substantial been to rebounded the has outdoor traffic increase country has is to retail especially across going others. outdoor as As country some

and revenues percentage contractual to from escalators benefit industry through rental As revenues outdoor stands advertising provisions. rebound rent Landmark higher

the is well recovery. increasingly the advertising that advantage of outdoor optimistic for segment the to the and us believe behind are that industry We take is worst positioned

assets. projects, regard pace business as pandemic progress program focus projects With emphasis not overall of wireless has development on the first some data is higher we DART, the Landmark our made offering with acquisitions our further System. far the deployments while our quarter. centre our any in Transit our our our with an did Vertex, As Area Dallas select infrastructure and on slowed strategy this acquisitions to the with stealth development existing overall quarter Rapid and We remains return make concerned, significant

as ramp service one increases assets LMRK first regard We times in to posted continue of are first the placed following quarters of XX.While to kiosks the lower being above of in service number meaningful, service. with kiosks yet we coverage as digital XX a Despite XXX on March kiosks the first kiosks by we and advertising quarter DART to our forward project, quarter. with deployments certain Vertex. total are installed revenue DART in up in quarter, very placed move revenues not typically installed distribution the various the to And spending quarter on impacted with into well brings expect which into strong more see another rental

to to reduce The level. accretive distribution has who the pandemic the more the of portfolio not a by encouraged to with with have with challenging business given provide support associated us by can portfolio through in reassess to unit of In but on today, declining cash and We'll the to distribution a detailed and the the continue decision the call acquisition are prudent excess level, a we XX%. our the that decision the financial I'll make. George? in risks that, growth trends to make our generated to execute to about to over easy the turn the hindsight, current even the do level allowed We're the business confident we pandemic. beyond it that AFFO are level thing increasingly improving George, that our the we've led and our the seen year-over-year most periods excess of will believe higher an While And opportunities was quarter. review stability distribution portfolio distribution circumstances. the correct year was per of partnership ago decision flow

George Doyle

Thank you, Tim.

As Tim mentioned, of pandemic. impacts quarter from despite the another strong portfolio our operating the generated results

from $XX.X We as growth versus revenue continue declining power organic was for last the XX% wireless, of performance European to year-over-year fourth our primarily a in renewable the outdoor advertising quarter revenue as growth higher rental an after quarter. year-over-year in segment rental outdoor by digital infrastructure capital couple was advertising disposition during and Rental we’ve quarters higher segments. generation across more uptick of driven the well revenue strong revenue see in and seen And two quarters. portfolio. million, X% the of generated in venture, segment XXXX, the the the joint redeployment The was which

FFO AFFO. year. diluted and Moving to unit FFO $X.XX first quarter was compared this $X.XX in onto per of last quarter the

this change unit discussed calls. gains value hedges, per growth on rental first quarter-to-quarter foreign fluctuate revenue of $X.XX these per quarter power Year-over-year, quarter last $X.XX performed other compared portfolio year-over-year currency fourth last year-over-year. was decline seasonal was to in items the generation in which of quarter primarily every the renewable the as due well the in on prior diluted quarter on typical this our As can of losses and in gains renewable year interest from losses. decline rate XX% AFFO items other and transaction growth. rate hedges including depending the in and unit interest excludes FFO year have we fair The representing the quarter power first to year. as of well AFFO various our slight delivered our and revenue

the ended million we $XXX sheet, of our balance facility. revolving first our to credit quarter borrowings turning under outstanding Now with

We no maturities November financing continue to XXXX. rates and for asset we see very have until attractive scheduled classes

with the interest swaps. facility cash liquidity, certain of approximately hedges and fixed rate of borrowings ended have $X million through quarter terms outstanding debt revolving fixed $XXX is rate approximately undrawn to in our borrowing covenants. we Including our subject that debt either XX% credit or capacity interest been with rate our In of under million compliance

distribution Regarding to year commented policy, by brought lowered our the as have environment and due ago unprecedented our a on pandemic. the calls, on challenging prior we distribution we

the the While economy, this of distribution very distribution per and to was maintain coverage of flexibility. quarter our the Based $X.XX ratios the capital times. reopening for of we unit and slow quarter by the preserve to increasing encouraged decided financial the administration distribution, on first level vaccine Board are the this X.XX

that we believe level. Tim our the the believe will it As level we at the stated, to is pandemics current quarter, distribution distribution first higher maintain But prudent a subsides. after the that portfolio for support

the continue continue And the will to We monitor portfolio. our of year. the over of reassess pandemic the on impact we'll the distribution level to course

our program, projects, Select financial our with of Looking we our seen focus summary, ahead DART results. acquisitions. the Data remains business, which as well, as In Select core this our across lease North to may as despite our remainder to opportunistic include which quarter's near-term in XXXX, portfolio pandemics, Centre higher from challenges include continues existing look ground will the return development But be on the America. Vertex well perform deployments for

well Our XXXX. in portfolio to and deliver diversified is growth positioned

your take questions. We will now

Operator

roster. stand-by the compile Instructions] we Q&A [Operator while Please

Our comes Prentiss first James. question Rick from Raymond with

line open. Your is

Rick Prentiss

to morning or afternoon good everyone. Hi,

Tim Brazy

Rick. morning, Good

Rick Prentiss

more but the CapEx magnitude side? the I with think data of want projects? How magnitude acquisitions, or importantly, a even some clear centre but on on space, to development lot work of particularly start looking pretty next to what DART put of we maybe the deploy you’re possibly ground you obviously of acquisitions to able the about kind to might questions, not and on this Vertex year should be what the

Tim Brazy

on deploying two-third Sure, will DART provides that risk on two-thirds we deploying CapEx, of in the capital activities. that we side, we’ll today I XXXX, acquisition some opportunities, infrastructure. the I the focus so that the be expect there's attractive point select think want may to to most we Vertex about But it them be about And returns think will in million I adjusted to that development centre related side related to total somewhat the things. if near-term on probably area as at on time. pursue We $XX data for limited into then deploy have this say

Rick Prentiss

Also kind rough spread? $XX to a for of acquisitions development for $X as about million ballpark million and

Tim Brazy

to opportunities somewhat side think really depend going at believe I it $XX it'll I million this development. acquisition no, be but upon Oh, type then point And will is we what be of things, on limited. see, the of in

Rick Prentiss

you. Got

was what Vertex? So would really be the two-thirds

Tim Brazy

third two-thirds Yes, a for for DART is Vertex. then the and

Rick Prentiss

DART size, yes.

Tim Brazy

Yes.

Rick Prentiss

of sponsors. the renew On I the through the got or that you've capital thought the think from to or out what's at possibility the that? contribution And about renewing looking the it's removing side, G&A that November timestamp

Tim Brazy

number a hasn't to on to still factors substantially the discussion the time. doesn't considering need going the grown is commitment and the there it it in certainly did Yes at in that internally, has place that point change quite put extent was it since at G&A sponsor of company made this date We're inception. it a reimbursement

So are that. the have and those discussions we then be, more a little clarity share bit ongoing proposal will to what we'll as when

Rick Prentiss

a of locations merger? didn't potential It kind of the of T-Mobile Was sites, dropped? you and And there? Sprint -- question. any wireless some detailed of there clean some go number leases of seeing down from number location up for are much, kind Okay. impact And leases modeling like and site the changed sites looks number the but

Tim Brazy

per tend very to Yes, had sites. one that T-Mobile decommissioned relates activity site so this Sprint Sprint seeing to historical They we couple QX; from as far, it trickling are quarter see decommission. in a we only we're in quarter little

there's churn there. point in this it's decommissions But certainly or in not time. in up going at on innovation So activity showing

have our terminated, the there's As owner. releasing far would activity release the the sites of that then site lot interests estate have arrangements And those limited of segment some the have time if are to we site. as of revert in back period wireless real property number of the to no we

decline that's seeing what you're we have. the So the number that in in of sites

Rick Prentiss

Got you.

it where sites because have that went of guess any out. kind leases I So some didn't on up it got you rid plays occupancy it's it. of actually

Tim Brazy

many and the it's then of low. pretty not release Yes, to released, going years it's is been exactly. trying After so society, to be likelihood released

most revert cases So back. they

Rick Prentiss

Okay. Thanks, everyone.

Operator

Liam Thank Riley. Burke question you. [Operator B. comes from Instructions] Our with next

line open. Your is

Liam Burke

morning, you. morning, Tim. Good Thank Good George.

Tim Brazy

Good Liam. morning,

George Doyle

Hi.

Liam Burke

any You it. out additional to is projects or pretty allocation does investments? you're completely what our But your going shut where infrastructure laid-out capital and that of build direct thoughts clearly traditional

Tim Brazy

right acquisitions. main now development somewhat as Centre have that'll certainly point those see don't focus we be main just be may Data We doesn't. that it there. think this No, in some is Select and there developments limited. The certain at projects. may identify acquisition opportunities we There be focus potentially completing We though opportunities in time, additional the

Liam Burke

And on opportunities has price at seeing that more sufficient data right are you the centre the competitive? or front, become

George Doyle

say would of years, over that couple and do increasing data centers. performance last the decline of interest I rates Yes, the of in see class interest amount with in we an asset the

a seen of have still we think we little bit competition So more opportunity. there's but lots

the As the rates I returns financing data mentioned adjusted think you ones. recent most at the very the when centers; attractive moment, we think securitizations about centers earlier, on there risk are data especially

those For so five-year dividend around it's cost financing the of assets. X% on range attractive pretty debt

Liam Burke

you, Thank George. Good.

George Doyle

You bet.

Operator

you. Thank

Our follow with Prentiss up the is next Raymond Rick question from James.

Your open. line is

Rick Prentiss

and than COVID. is protection think about as stabilize questions target there from I are where want more coverage to how long-term? other guys, about we comfort up How to one in being two no you that should thanks figured medium But Obviously but getting back high, should Yes just to some ratio? we you're queue. closer think

Tim Brazy

That's have distribution We before coverage when level board Its discussions the that move we'll coverage, tight. the ultimately want discussions more we future do a again will pretty in historically something reset when raising one place; those coverage per that expect was the the the in with color have on continue. provide it's distribution But level do part we items to $X.XX to still will, good board distribution of obviously the the trimmed regarding from that with the question. have unit. the the the we'll of but the distribution the board decent we changes

Rick Prentiss

you not And is structure? that on strategy be thought to able growth coverage to when of traditional might what's growth obviously the targeting out of the part and any ratio just a thoughts a an more itself, change MLP kind updated of structure on

Tim Brazy

Sure.

retaining can capital capital On certainly certainly acquisition us opportunities drive more for growth. of more things, the growth side and gives

have of we But raising it. as again So there that's there's a to bit a between accessing to move closer to distribution. we'll trade-off distributing capital relative evaluate the

G&A of get a structure, internally the support size, I managed or managed an conversion large be could ways and relative away REIT a have structure, this to say, revenue structure. size REIT we considerably a to too bit at we still bigger consider too REIT that On we're still perspective before internally high would our would from to to

it's near-term still point, would we're but keeping say. in I it's mind, So that this something a at not opportunity really

Rick Prentiss

might more and you are seeing All people carriers being from more right. the indication from we're not to you as international from guys? edge land And edge? more with at you're thoughts feels that are computing, And you less quite follow-up, with what about any competition? there any the yet, the other about seeing there and spots, more Still but carrier on we're the want hearing into, think markets there opportunities go any

Tim Brazy

Sure.

edge in major those topic On come over heard initiatives rollout have edge cases, have that happen small we edge this day, to anything discussion not still in but lease major seen up Still won't it time. one computing, just it seems be we're yet. seen we've still lines, of a not number of test of things, of deployments, certainly, pilots, up investment at lot we There's years; than computing. else doesn't along a to seeing but point the lot the side more a been not of topic a relative mean

don't we probably see we're given primary those as our and opportunities is of we'll going in, and As return well opportunities say markets. while. attractive would Canada, Australia, focus a certainly we what U.S., Europe markets, currently, far as see U.S., the in be it's say which across select international some I identify markets think I also we I can end to the for profile beyond But up focusing would the

Rick Prentiss

Make Thanks again. sense.

Tim Brazy

Absolutely.

Operator

I’ll And remarks. I'm turn questions back you. time. call Brazy further showing over for currently no closing to Thank at Tim the this

Tim Brazy

a we're lot what Thank in you, developments you us we've encouraged the we our strong steps see well industry joining this positive operator. benefiting well. thank continued growth continues we we market. are year. by And And think deliver you morning. heard, position appropriately as And for think And all we of that forward to taken positioned move the fundamentals, as to the from to portfolio necessary we're company the perform this

your continue wish that, and Please, be safe. with to we'll stay careful well. And you talk again families to So next quarter. please and you

Operator

today's concludes you This conference may call. you participating, for now Thank disconnect.

Landmark Infrastructure Partners (LMRK) 5 May 212021 Q1 Earnings call transcript