RADI - Earnings call transcript Q4 2020 | Radius Global Infrastructure, Inc.

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Operator

Good morning, and welcome to Radius Global Infrastructure Fourth Quarter 2020 Financial Results Conference Call.

During management's presentation, your lines will be in a listen-only mode. At the conclusion of prepared remarks, there will be a question-and-answer session. I will provide you with instructions to join the question queue after management's comments. Today's conference is being recorded. the to turn General Birnbaum, now Counsel. will call Jay over Radius’ I sir. go Please ahead,

Jay Birnbaum

operator, you, Infrastructure year and Global everyone fourth full call. earnings Thank XXXX welcome quarter and to the Radius

made to begin, we that the forward-looking securities I under like today Before remind considered are would many everyone of federal laws. statements comments

statements our cause and subject These filings in forward-looking risks and as future numerous those to to speak uncertainties the from SEC, described revise statements. date undertake As could today's with earnings release that results differ to these are and these obligation no of statements update expressed. we or publicly

addition In non-GAAP certain discuss we today's on may financial information. call,

morning's available reconciliations www.radiusglobal.com. the together You can comparable information on Bill? find the most to this supplemental financial release our earnings and in website, information GAAP with this directly financial measure

Bill Berkman

everyone Jay. new year is hope Radius’ to fourth and quarter well We for gradual doing to you, and a Thanks, year-end call. a everyone pivotal earnings XXXX for was return Thank conference welcome Radius. XXXX and normal. preparing a

to our completed domicile Holdings, we quarter. the and the listed Landscape on Acquisition we merger NASDAQ with in As Delaware third

produce consideration, mid-teens taking we lives. a doubled leverage, After cost year-over-year During focused investments application capital blended in X.X%. interests acquisition the of data In we've antenna on over into the and these related infrastructure remained team and the yield the origination deployment digital expect wireless property this more in sites, assets. asset underlying XXXX, managing spend When million. fiber this growth real including communication will interconnection purchase sites, our acquiring critical $XXX than of their under time, rooftops, extremely towers, system platform, represents networks, at returns of

resulted and and has well in growth initiatives. expect we and capital liquidity In the quarter the over significant as will before We in team X,XXX end million lowering capital sites owning proportional XXXX. other year streams. this of million been incremental deployment focused entire new efforts, to we with capital is annual represent growth a and end origination benefits in in total These $XX on continually from of – in of decline enhance SG&A support addition, the than our growth the actively of as bringing our as our our $XXX leases realized and the growth amount overall operating of cost and twice year leverage. results scale as to deployed quarter fourth mentioned at owned more asset XXXX, quarter acquisition sites coordination fourth exploring ways to scale in core In result in deployed lease XX% $XXX fourth our in our growth to continuously compared million achieved I The as our the XXXX XXXX. X,XXX

tower streams our America and term at of America represented reinforces XX% XX% in North the net by these of under Annualized America. with XX% ground in in South portfolio and XX% by assets rents North Rents visibility, at dominated America of XX% are sites Our South streams to of attributes, growth long-term insurance our portfolio team Internationally, and XX% This XX% this XXXX, rooftop attractive success towers global growth year our end Europe, churn swiftly years. the XX% XXXX low with origination The rent our weighted escalator or With average our infrastructure rental the wide organic property ranging contractual remaining our offset impacts we underscores composition class. of the the us interests. was and tenant X.X% the leases in successfully of balance adapted The to ended and platform. from and our under of effectiveness and respect U.S. Europe, rooftops. representing Place revenue by to of represented of pandemic. digital XX% In annual rental be by In year the combination asset annual with rents approximately enjoy X.X% are X.X%. of primarily nine desirability of a growth of for continue

enthusiastic about are XXXX. our prospects in We growth

and and We investment global business ongoing to process. diligently forward remains we annual our propels to accretive look our tailwind existing sharing infrastructure Our massive pipeline extremely working continues model, pursue in The active our to produce new are digital for jurisdictions. that shareholders. operations global our opportunities both in

Glenn? Breisinger, our Glenn discuss Now, will CFO results detail. more in financial our

Glenn Breisinger

Bill. Thanks

Fourth capped was performance, $XX.X a We which growth. with were over to and compared million, fourth prior the pleased prior $XX.X was up quarter profit strong year XX% revenues up XX% year. of our the quarter gross are quarter year which million,

million This prior In streams. prior growth compared activity during quarter fourth full asset comparable year up terms deployed capital, $XX period. the during to the the year million, deployment million fourth in of XXX across a million rents brought $X.X new from $XXX year we lease $XXX.X to XXX% increase. origination of represented our This XXX% quarter

in quarter the that origination the XX the have Our past platform both for of performance, we and the over years. developed value strong demonstrates full the year

package of on our release, to with you additional the assist website a analysis company. details the posted have financial our We our XX-K earnings and supplemental in provide reporting

that mind had period, As Wireless in prior been AP yet keep review not our in year results, acquired. the you

to increased before. combined end prior XX% year Turned $XX.X XXXX our pro time other relative Please XX-month So our on of rental streams, with our presentation the from metrics. performance XXXX. reporting our rents and representing year in Wireless The in-place delivered our for million provided full portfolio streams XX% billing over revenues year our XX, company the of both our to comparable We Reflecting enhancements full acquisition to results. escalators, our AP $XX.X in key based a from into assist period. the acquired three for year-to-date growth in supplemental on revenue forma financial a for million February $XX.X the statements increase you our periods annualized results periods year. package year completion commenced refer million for the at rental

$XX.X profit gross year-over-year million compared ago our in increased year to line million to with Our a $XX.X revenue XX% growth. as

fueled of million annualized growth for $XX.X million for marketing, and place $XXX.X rents full which net $XX.X in acquire by of was spend related growth selling, Our producing underwriting the year million. was to assets of cost

X.X%. weighted Radius mentioned, of equivalents XX Subsequent these a decreased until SG&A to presently As in our no we of by produce due SG&A should multiple decrease times We would debt end maturity. originate a and February fully and only institutional, X.X% of average operational debt coupon with multiple is our we to prior continues had one million With to a of This as aggregate rate $XXX.X XXXX fixed million from XXX% like in million. to $XXX.X and $XXX.X total net XXXX. €XX we seven year term three one cash proportional and that years in burdened cash added representing rent to yield of and XXXX. end is assets, Bill approximately at USD The of grow approximately sheet have interest average gross turn times two origination million full weighted million liquidity, rent of debt a year approximately to over on year XXXX. outstanding streams refinancing unlevered note debt I a acquired balance at time. that basis anticipate as respect material

and our paid turn the allows initiatives. to us for in to support secured With cost pay, a This like eight and I'd lower Bill. enhance to issuance of carries call the under over only now capital our debt liquidity and existing cash kind. fixed rate This facilities. floating coupon one to X.X% our of our year interest back of junior of X.XX% growth continue to interest notes debt

Bill Berkman

you, open call questions. would prepared Glenn. This Thank you. the the any for open Operator, to remarks. for Thank like our lines please questions. concludes now We

Operator

you. [Operator Instructions] Credit first Thank proceed. with Badri question Suisse. is from Sami Our Please

Sami Badri

you right a just XQ thank for year the XXXX. the questions you of towards guys. Hi, of the gate end congrats and I out have couple everyone

XXXX. your at of annualized place the metrics, then acquired and like XQ The number average is rents first in sites one in site per looking the

[indiscernible] a type asset little kind acquired of there per or to site So may some that I'm XXXX KPIs the be throwing quarters. a XQ just bit? prior trying were in take in or Was region the that averages types change of kind off

Bill Berkman

Yes.

I think of to addition it's good morning and asset incremental mentioned good in question, a I had we've remarks. Sami, you. in as my prepared classes Yes,

underneath we'll as in fiber classes see ramps for began countries we an those and certain sort typically Sometimes a indoors, of being as such asset system towers, distributed as antenna in aggregation class and points produce hospital example. asset different

Sami Badri

it. Got Got it.

asset. want of focus make I the was thrown little all And XQ specific yourselves off in more like found just that were XXXX to the So just acquiring understand type just and guys completely those? bit, essentially you because I just averages a sure predominant that

Bill Berkman

say or one deals. happens wouldn't occasionally two predominant, but larger the you distribution have can you're was I that get that to this off going average that because throw

I were the in but are great acquiring the as high Let's credit say average driving that tenants our guess mission with take successful the critical example. view are is Those off, hospital an whole, crawling large is, defined things way types a that on throw we can assets an central the we of that rents.

happen mind our to of as doing the I don't what guess the we and been look we've We really so the to adjacencies have completely And said, assets. just in at quality similarly situated they're distinguish before.

Sami Badri

it. Got it. Got

The considered aggregation them higher of best relative But I guys basis? – like assets I portfolio have to these assets some aggregation you these So this compare would points of acquiring, just of these that to on topic put the set it. of the to follow-up stickier these one a or way points is or as other for are probably questions you. you well, value in sites when think kinds whole are the think next these

Bill Berkman

view it I guess mission is as way a we great the do in underwriting. to job our

answer time something is replace the recognizing to overall equivalent. that incredibly are just network, know sites site they'll uneconomic the replace. but is We years we've difficult spent stand XX networks would or look just building which be of really every the is doing, think what is, they're at I just and just So which to different, test

to least very at they're So very I guess it's the they're said us. and sticky compelling simply

Sami Badri

it. Got it. Got

have that published So guys shifting and supplemental you was that over were SG&A a in presentation Slide in XX the to today. also the

at going this of to we is cadences? multiple start continue over similar this Or over type years? guys of next multiple be a What looking guys a origination the then made to about comment two XXXX. is you multiple SG&A be in expectation regarding should the – the investor as of should rent times grow to normalizing as couple acquired So for time, multiple down compression the coming you

Bill Berkman

think a be. to I guidance I any as to forward question. what And it's give or good will hate won't

One enter of the takes things we jurisdiction's that investment into will new as upfront. is happen an often

you this to So going I'm to trend, is always is tell just a hesitant happen. that

Now that more us efficient for that to economics And lead being year. every said, to just just not it's diamonds, are forward a scale improvement further quantifier difficult as we give but would what determined more why be we're we too hopeful think say. get that's to any should we

Sami Badri

it. it. Got Got

on are macroeconomic along you the that but to drivers macroeconomic side, you in looking are essentially said, if XQ trends you would going there lines So play for of in quantitative say or at business XXXX, look the you what XXXX XQ and same the the in maybe or XXXX? maybe provide your of industry just forward economic still not were guys guidance, qualitative

Bill Berkman

sure but still what think hopefully out I saw exist macro, not I going in we there. should to XXXX, to I'm you the know refer you what never what's on know but for exactly XXXX happen

we never a this knew year. going Just to was pandemic like last be there

Sami Badri

let ask Got another you. questions. Thank analysts it. it. Alright, you. Got will I other thank –

Bill Berkman

sure. any to question. answer Happy No,

Operator

Our Ric proceed. Prentiss question from next Raymond is James. Please with

Bill Berkman

Hey, Ric. good morning,

Ric Prentiss

well. you're doing morning, Hey, to of Couple good well. Sami's guys. as Glad follow-up there questions

targets your of one, about governing work factors acquisition over CapEx, put as think the your to As clearly how the the creating should growth where we How think we time. five and to be maybe? about three, years aspirations about could much that's we think next

Bill Berkman

Look, it's a great question.

trained always is and I deliver. over way were think promise we under to the

than can adjacent And think ability some enter third, are we of to I our acquire origination number seeing lot able the will activity consider would to a we lot front, side expand of surprised we're then our local M&A what what in do job And assets of see continuing that's from portfolios our are much and we then acquire. that drivers making just larger some and to we jurisdictions, going comes for to our perspective at operating which everybody that course quite the a larger on are least I be I acquisition. core being at new markets; you just well into then how selectively scale an of think the other the like wouldn't team point, on, three business. of down assets. else two, it identify, their us those And

that bunch amount of time imagine a seek of that fair mean a we spent would last quarters. to You them of within when But on get [indiscernible]. couple doesn't you

really hard we seriously announced some we looking a but to out, but just at, that going to, I think project forecast haven't feel deals long have why okay. as us, for hard guess, think I imagine confident really we were predict would to what is really didn't anything, that's guidance poor mean. that that's to you we win that and It's its we runway I very said hard originate. Sami It's So and I to that

Ric Prentiss

you if be any longer goalposts? the might But obviously to work checkbook able to can to origination as as about size put Right. quarter-to-quarter, just think month-to-month. thought the scale bounce it that Any term of of thoughts kind around that be far yes,

Bill Berkman

I million which you And you said easy can these we operating characteristics in wireless that think think sites we're sort it's markets a we we're about pretty these sort classes. presently have that roughly target then add-in are another if adjacent the today, in and we of asset think substantial. in of that of probably some we where approaching for, wireless to, then there's sites look And it you yourself, there. XXX,XXX X,XXX jurisdictions expand When sites the the own.

right see be just price. you course what to huge, is buying So them buying we can consider assets being total the efficient the and the addressable and it's would of right market

is And execute. say and that so just would our the not quite know specifically frankly I us. We [indiscernible] and wide for runway answering I'm keep to down your question have long head

Ric Prentiss

And low, a by been at sense. get pricing the interest you although want. it is have a bit, makes has that marketplace, are created maybe Because environment but you obviously you? people digital That a definitely up maybe affecting definitely lot prices infrastructure, assets how mentioned rates of little in the tougher excited to trending

marketplace? what give the Just sense you're us in a maybe of seeing

Bill Berkman

tower large. being prices Yes. there And the I who think that seen are are essentially are now that's a great companies, point up. in Europe said, also We've and from predominantly quite candidly out acquiring assets. That markets

everybody, a inflation that So we that the when at prices that local there's for to I we I bond. to think think it room spread like as When the historically back about as paid, well. sovereign notwithstanding look

down, prices goes Sami’s same we're we've the roughly because the so that's had even macroeconomic And to rates interest question gone factors. as still before, have up. spread And about sustaining that move

the MNO bit that. competition lot will And would also Now a I all how I in surprised shedding add, been. with I occurred they've the that I'm shedding fast has And to increased tower companies. Cellnex credit aggressive have of their was guess has for unimpressed we more how said, at being assets

companies jurisdictions So as to acquire. us dominant that's also of mission, other it, faster is think. gives than guess, many sort expand well, and aren't we But tower I to of there to as typically happened ahead keep where greenfield which of our course,

Ric Prentiss

dynamics of or are then in as about you Makes guys on site adjusted and beyond of growth sense. can CAGR a EBITDA? basis of think about Final we be one should growth producing for we rates. on XXXX kind revenue organic growth How what rates, me, think kind same rates the

Bill Berkman

It's good question. a

you are XX% our our around supplemental linked. of noticed in If CPI rents

that's So base you've growth first your got. that

a rent. but taking second the bigger, that from – call It that doing ground think and that I team carrier comes to thing tower of we a we enhancement well and/or our get if we a or page goal be it's larger equipment. would work. it's a tenants. generator get debt adding think up whether and radio the they another our additional put come network And in on. lease below tenant actually to job based and then from we the make access space. sites, can put renewal. Oftentimes additional want better lastly, notice that well means as need on fair to decided that rooftops roof, We is lease I asset the really notice, a market. And can you'll us, company is market constructive just getting excess a come what an forget I this sure is buy we as the to drives And MNO, are with thing you'll our our And paid which when they

expire but negotiation expiration a when that leases years I actually into think is substantially enter Europe we U.S., longer can nine in average our rents – when lease renewal the shorter. in and lease roughly

so actual lift also pretty market aggressive but not that. good more just on we that'll be give rent, believe us, didn't rents, number, to disclose And we the targeting than trying

first being remains foremost. goal a Our and landlord passive

Ric Prentiss

Great. Good luck you the Thanks guys. continue as process.

Bill Berkman

appreciate Yes, Thanks. it.

Operator

Instructions] LightShed Please proceed. from Walt Our with question Piecyk next [Operator is Partners.

Bill Berkman

Hey, Walt.

Walt Piecyk

know. as Piecyk, you guys That’s

Operator

Sorry.

Walt Piecyk

Hey Bill. How that going? was

Bill Berkman

Yes, thanks.

Walt Piecyk

if sympathy name pronounce. there are I have any to

weighted from, a result this the the a property of of of acquisition is Is a Europe. life reflection was that set jumped quarter? in occurred renewals Your that average that assets of activity where up just or

Bill Berkman

to the the with the which place. call cases It's My skews that's say and would it go perfect landlord embedded so to ever some going up, if always is we we years the around the and like years, get buy XX. wanted simple, through of XX it's they'll all them, to fee to the your hey, to also XX fact you Most have back bounce XX XX, therefore be take option because the and XX, get you them of I'll think what over an latter. feel average we I years that around to by in anything, money. perspective effectively is won't to

bat. getting we always shoot for why the that's don't right So off XX

Walt Piecyk

to does then the in have towers. activity, you Europe, and obviously, buy pay out or the their have opportunity dynamics that additional Got all, And you, significant Vodafone sites? of at change it. Cellnex for for inquiring How that portfolios as spinning area opportunity you pretty if they're prices to the that

Bill Berkman

in as certainly to being job pay. price has to long they're it'll partnerships we going will they we But property one to mean, we property up, think but across an I and can it that win. given a that change constructive underneath site, if multiple always Well, we'll tower their want I it because situation, said, go we our make think that and doing competitive with in on economic we're focused them it a way the everybody. beat for a or come goal been buying win sometimes do protect productive it offer the to laser and and establish better companies, win,

what We'll tuned. stay So, happens. see

Walt Piecyk

I Is do Got again, Europe's construction mean, of, much story, really obviously opportunity, required. think, the big but about just you that done to I new [indiscernible] it. debate to cell assets? there's existing of is it part site is know or U.S., an kind has going a densification some And then how now back coming

Bill Berkman

the just only? asking in you are Hey, U.S.

Walt Piecyk

U.S. in just yes, sorry, the Just,

Bill Berkman

a market always given it well think I you as on depends know.

and addition massive MIMO swap size massive that out shrunken is that It's just more be to a and site you believer stick certainly coverage capacity, array my more further the about equipment antenna trends. regular the I capacity opinion, needed. the it personal the linear. I'm opinion tool, of have get, very towers know, a weight. with My year-to-year increase bag you because is construction over this as we is to the built further work guess the for MIMO will think we time. when it's been places think percentage Will see a and that about elements densification gets put where become reduced cell still to enormous in an it'll be antenna and or going has that going in cost we rather there and you powerful in terms up, whether So

got saying very add you're going even And so augmenting that a saying if there. a time just many to capability, many, long-winded many, building a that at a is cheaper which the power backhaul to in tower, way out of getting site, small And big cell than to still I'm antennas. to or given be believer its that's able a macro a of I've and, means tower new most and get yourself,

Officer, Now, come keep Operating cows this Richard, who's time, economics, going about home the like, Chief just the Richard Goldstein that it's our but I and debate on. all till sorry,

Walt Piecyk

your that in more just are you confidence in in saying, of sites X,XXX a a available. CapEx rather range from think, last had continue acquisition spend sense Because sites promise larger you a CapEx pipeline questions XXXX, the of kind X,XXX $XXX million to than you it we're the what's be market call big pressing than prior look Just big that, when us this would there's And we gives the in the at I'm in necessarily let's hey, the question just we There's want is do, as deliver, going growth of look promise on in CapEx to doesn't given you you but or over or some if of much that terms forward, quarter. I going terms that taking $XXX that a going that growth getting of is was had have probably that a market confidence have that to whatever to year. at have in belief but obviously hey, pipeline it you million Rick acquisition don't XXXX, that to under give opportunity. year, a in it like, acquisition what fuel it capital you deliver,

helpful can probably the it terms terms given I opportunity. year; of capital dollar you in think a putting think growth in spend that what be market of would you of in understanding a amount amount

Bill Berkman

I appreciate always a I be can No, that. we indeed would we the going think graph. replicated. nice right straight to XXXX in show you that achieved line we're up I really liked until mean, imagine, optimistic on what a And

So were I capital would on like constrained. to that growing keep mention we is thing the public, prior being

as hate well buy to afford, we just guidance. could as capital, say say, us now access ability we more outside we we you, frees we're what on could gives and equity, and confident up that’s we've guess I as very the operating so year. that done public debt sheet, I hate lot well in our more of. what markets, our and of – But, whether that our do capital And to existing the to balance committed get a have it or that'll as form things, both succinctly, feel for just have that to to this say replicate I in

Walt Piecyk

understand. I helpful. statement was But and in that itself of No.

day. great that a Have So I Bill. appreciate

Bill Berkman

Sure.

good asking questions. You're in

Operator

Berkman closing like question-and-answer the our would to session. for conference I Mr. over turn concludes comments. This back to

Bill Berkman

day. very operator like. anybody Look have anybody today. questions, all happy a to to much earnings we're myself reach And or much. good Radius. our everybody out next if course, and joining any to at should talk any personally Thanks or of Have And forward call. to the to very feel and Thanks free shareholders I appreciate

Operator

Thank does you. conclude conference. This today's

disconnect this may at participation. your for time thank lines You you your and

Radius Global Infrastructure (RADI) 30 Mar 212020 Q4 Earnings call transcript