LMRK - Earnings call transcript Q2 2021 | Landmark Infrastructure Partners LP

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Operator

Hello. Thank you for standing by, and welcome to the Second Quarter 2021 Landmark Infrastructure Partners LP Earnings Conference Call. [Operator Instructions] This call is limited to prepared remarks. Please be advised that today’s conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Marcelo Choi, VP Investor Relations. ahead. go Please

Marcelo Choi

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

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

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

Tim Brazy

Thank you, us is I manage joining well all Marcelo, you everyone to still that through thank and continuing are uncertain for doing what hope times. today. and

significantly generate from XXXX. and slightly you first As compared to as to advertising Rental year-over-year, year-over-year saw the consistent assets of acquire quarter from in proceeds in year. primarily European second quarter operating AFFO by used quarter. higher posted portfolio Those and cash the the unit driven of in another outdoor higher LMRK’s capital interest second of were last stable center morning, the venture solid revenues continues per was our we higher to our our half of joint data the release were sale this results and redeployment flows. financial

communication, have impacted the assets, wireless generally and renewable digital by our pandemic. expected, been not As infrastructure power generation

the the compared of was been first X saw in straight quarter, after the of segment, segment quarter pandemic, most decline affected which quarter revenues a sequential the Our to has which slight first improvement. third XXXX second outdoor advertising rental the since by decline quarters the in

rebound outdoor to development remain focus the continue for take expect the well industry the to that projects is term, is remains advertising to the believe term, we still advertising behind and our positioned the worst optimistic and longer recovery. Near over on outdoor the that segment, and acquisitions. our advantage of industry We still select us

and offering; the our of quarter has for total volume through year-to-date, June as to of of are into June a DART our not may Area annual about expected infrastructure the with million. approximately number and in DART, These meaningful kiosks acquisitions XX. been system. anticipated. XXX as regard as project, up slowed yet been light As our Landmark kiosks into stealth this while we projects, pace made DART total ramp the second wireless we service $XXX,XXX revenues installed extremely with additional with the deployments, service further has assets existing rental brought rents. regard to progress quickly our at of Rapid Dallas in which expected, have placed contribute With the our quarter, Transit program X not overall XX Vertex, of acquisition development With total consideration $X.X to pandemic

seen lag activity placed The take drive lower ability than has advertising revenues kiosks and the the outdoor numbers expected. levels we’ve ridership to may continue DART’s parts longer rebound variance, higher Although a level transit to on to traffic path. in rental the footprint. hindered we’ve at digital seen If or the continues many a recovery rate to slower ridership mass country, increase transit infection due pre-pandemic of recovery our within stays ridership to

pandemic once interim. fully normalize While has are ridership subsides, that lower-than-expected for the these believe and will temporary trends we contributed this DART in revenues to our the kiosks rental

And turn to partners Group to LMRK’s briefly like acquire the George, it the units long of with acquisition by proposal turn of sponsor its who outstanding been board proposal progress. adviser. update of process more detailed will entirely would the an financial things its the on transaction over review acquisition take us independent how provide will that, financial members the quarter. as up independent will of over and if consummated, we’ll We reviewing don’t I is own call be which George? but the I’ll common touch legal I the DigitalBridge a provide or the Committee, and with Conflicts has George with to course, LMRK. Before counsel know of general made together to X a

George Doyle

Tim. you, Thank

of which Rental million, year-over-year second As quarter. $XX.X mentioned, XX% disposition the driven in primarily capital of the and had XXXX organic half growth as growth solid redeployment revenue higher the to results. rental of versus joint revenue the the Tim the year-over-year our was in venture European generated as portfolio. from by the well portfolio of was across first as quarter outdoor continues X% operating advertising perform another higher was for The quarter we

approximately X sites quarter, rents annual were with of million. During the $X.X Sprint decommissioned second

ahead X half sites back the sites XXXX, X Sprint including are scheduled to third the of Looking quarter. to in decommission,

and we XG discussed are term, seen recently Sprint terminations. carriers a to in expect But higher expiring revenue renewed longer the rates. in some we pickup the leases wireless have have past, offsetting as at as deploy in equipment We continue

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

level our on various rate change hedges currency on losses FFO prior gains which fair calls, transaction fluctuate rate these gains AFFO, and quarter-to-quarter As interest second items, higher quarter we XX% this representing power due the discussed the $X.XX organic last provisions quarter was primarily growth compared hedges from foreign in in interest generation value quarter the renewable portfolio. per well and on items, and have revenue AFFO $X.XX the contain depending other of this including overall was as other year, excludes from last as and losses. unit year-over-year. our of can in that revenue-sharing to diluted quarter’s per growth leases slight increase The from to unit

services And on us have press As November sponsor this will informed release in you may reimbursement in seen to has reimbursement let it our for that expire the G&A morning, expenses XXXX. intends seek our it it that cap expected and incurs fourth the beginning to services impact expenses for cap incurred of G&A of the the partnership negatively the provided of reimbursement for XXXX. AFFO provided for The partnership. quarter in us is to expiration to

expense year reimbursement the the XXXX, and December ended the sponsor XXXX, million, XX, in During $X.X June $X.X respectively. ended million months from XX, X totaled the

Now of turning million to outstanding facility. balance credit approximately our $XXX under ended our sheet. revolving We second quarter borrowings the with

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

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

seen cap of with G&A distribution impact We reimbursement closing well headwinds expected credit. and and quarter’s revolving and along results. XXXX under the over expiration the perform for is on Regarding continue positive level in this remarks. to unit. discussed second in remain our summary, the distribution our to stable see We the a of longer distribution but turn our was generate ratio that our X.XXx. quarter G&A flows. declared negatively of distribution, portfolio AFFO with Tim partnership’s financial of borrowing will coverage distribution, second in half previously additional the Board In $X.XX I’ll Based continues of coverage And churn, to to line as of our this expiration the capacity expenses it and ratio, with of existing term cap Sprint the cash its the that, assets per some for

End of Q&A

for us this all joining you thank again and George, morning. you, Thank

we the day. again, and our term. good And remain, some is our continue assets challenges while will performing said, long portfolio confident to a have Thanks in we’re well As well. near-term perform

Operator

This for participating. conference today’s concludes you you. call. Thank Thank

disconnect. now may You

Landmark Infrastructure Partners (LMRK) 4 Aug 212021 Q2 Earnings call transcript