Revenue Increased 30% YoY
Radius Global Infrastructure, Inc. (Nasdaq: RADI) (“Radius” or
the “Company”), one of the largest international owners and
acquirors of real property interests and similar contractual rights
underlying essential digital infrastructure assets, today reported
financial results for the quarter ended June 30, 2023.
Bill Berkman, Co-Chairman and CEO of Radius Global
Infrastructure, commented:
“We generated quarterly Revenue of $42.5 million in the second
quarter of 2023, up 30% from the second quarter of 2022, with Gross
Profit increasing to $40.0 million, up 31% year-over-year. In the
second quarter, our Annualized In-Place Rents increased by 34%
year-over-year to $176.7 million. Our revenues are primarily triple
net, inflation-linked rents underlying mission-critical
communications sites. In the second quarter, we invested $110.9
million to acquire 223 communication sites that are generating $8.3
million of annual rent. As of June 30, 2023, Radius has
approximately $358.5 million of total cash and cash equivalents,
restricted cash (including long-term restricted cash), and
short-term investments.”
RECENTLY ANNOUNCED TRANSACTION
As previously announced on March 1, 2023, Radius entered into a
definitive agreement under which EQT Active Core Infrastructure
(“EQT”) and the Public Sector Pension Investment Board (“PSP”),
through certain of their controlled affiliates, will acquire the
Company (the “Merger”). The Company has since obtained all
antitrust and direct foreign investment approvals required in
connection with the Merger except for one foreign direct investment
approval that remains outstanding. The parties still expect the
Merger to close in the third quarter of 2023, subject to the
conditions set forth in the Merger Agreement, although there can be
no assurance that the Merger will occur by that date. On June 15,
2023, the Merger was approved by the Company’s stockholders.
For additional information relating to this pending transaction,
please refer to the definitive proxy statement on Schedule 14A
filed with the Securities and Exchange Commission (the “SEC”) on
May 12, 2023 (as amended and supplemented) and other relevant
materials that the Company has filed and may file with the SEC in
connection with the Merger.
QUARTERLY RESULTS
Revenue increased 30% to $42.5 million for the three
months ended June 30, 2023, as compared to revenue of $32.6 million
for the three months ended June 30, 2022. The increase was
primarily attributable to the additional revenue streams acquired
through investments in real property interests made during the past
year and also includes foreign exchange rate movements.
Gross Profit rose 31% to $40.0 million during the three
months ended June 30, 2023, as compared to gross profit of $30.5
million in the corresponding prior year period, reflecting a gross
profit (which we also refer to as ground cash flow) margin of
approximately 94% during the three months ending June 30, 2023.
Ground cash flow margin was impacted by expenses associated with
fee simple interests acquired, primarily for property taxes.
Annualized In-Place Rents (“AIPR”) were $176.7 million as
of June 30, 2023, an increase of $45.0 million, or 34% over AIPR of
$131.7 million as of June 30, 2022. On a constant currency basis,
AIPR would have increased 29% year-over-year to $170.5 million as
of June 30, 2023.
YEAR-TO-DATE RESULTS
GAAP Revenue increased 32% to $83.7 million for the six
months ended June 30, 2023, as compared to revenue of $63.2 million
for the six months ended June 30, 2022.
GAAP Gross Profit rose 32% to $79.4 million in the first
half of 2023, as compared to gross profit of $60.3 million in the
corresponding prior year period.
Investments in Real Property Interests and Related
Intangible Assets, as identified in the Company’s Consolidated
Statements of Cash Flows, was $150.4 million and $259.7 million for
the six months ended June 30, 2023 and 2022, respectively. This
represented a decrease of $109.3 million, or 42%, for the six
months ended June 30, 2023 over the corresponding prior year
period.
Acquisition Capex was $159.1 million and $254.1 million
for the six months ended June 30, 2023 and June 30, 2022,
respectively, or a decrease of $95.0 million, or 37%, for the six
months ended June 30, 2023 over the corresponding prior year
period.
Please refer to the GAAP financial disclosures, reconciliations
and comparisons to non-GAAP financial measurements set forth below
and in the Company’s Form 10-Q for the quarter ended June 30,
2023.
LIQUIDITY
As of June 30, 2023, Radius had $358.5 million of total cash and
cash equivalents, restricted cash (including long-term restricted
cash), and short-term investments. Of this amount, approximately
$320.1 million was available to deploy for asset acquisitions after
excluding amounts that are required to be held in interest escrow
accounts under certain long-term debt agreements.
FINANCING TRANSACTIONS
The summary below presents significant financing activities that
have occurred in 2023.
- In May and June 2023, Radius borrowed €50 million and €100
million, respectively (an aggregate of $162 million in USD
equivalent) in floating rate loans under an upsized and amended
multi-currency financing facility. The €50 million borrowing has a
cash pay coupon based on the three-month EURIBOR plus 3.50% and
1.50% payment-in-kind. The €100 million borrowing has a cash pay
coupon based on the three-month EURIBOR plus 5.00%. Interest on the
borrowings is payable quarterly and each loan will mature in
November 2028.
- In July 2023, Radius made two borrowings totaling €110 million
(or $121 million in USD equivalent as of the funding date) of the
€1,750 million available under an upsized and amended financing
facility that Radius entered into in December 2021. The fixed
interest borrowing of €65 million accrues interest at an annual
rate of approximately 6.4%. The floating rate interest rate loan of
€45 million accrues interest based on the three-month EURIBOR plus
3.50%. Interest on the borrowings is payable quarterly and each
loan will mature in July 2031.
OUTLOOK FOR 2023
As previously noted, the Company is not providing guidance with
respect to the outlook for Acquisition Capex in 2023 in light of
the pending Merger with EQT and PSP.
About the Company
Radius Global Infrastructure, Inc., through its various
subsidiaries, is a multinational owner and acquiror of triple net
rental streams and real properties leased to wireless operators,
wired operators, wireless tower companies, and other digital
infrastructure operators as part of their infrastructure required
to deliver a wide range of services.
For further information see https://www.radiusglobal.com.
FORWARD-LOOKING STATEMENTS AND DISCLAIMERS
Certain matters discussed in this press release, including the
attachments, contain forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), that are subject to risks and uncertainties. For
these statements, we claim the protections of the safe harbor for
forward-looking statements contained in such Sections. These
forward-looking statements include information about possible or
assumed future results of our business, financial condition,
liquidity, capital expenditures, plans and objectives,
macroeconomic conditions and our proposed transaction with certain
affiliates of EQT and PSP. In some cases, these forward-looking
statements can be identified by the use of forward-looking
terminology, including the terms “believe,” “expect,” “anticipate,”
“estimate,” “outlook,” “plan,” “continue,” “intend,” “should,”
“may,” “will,” or similar expressions, their negative or other
variations or comparable terminology.
Forward-looking statements are subject to significant risks and
uncertainties and are based on current beliefs, assumptions and
expectations based upon our historical performance and on our
current plans, estimates and expectations in light of information
available to us. Any forward-looking statement speaks only as of
the date on which it is made. Except as required by law, we are not
obligated to, and do not intend to, publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. Forward-looking statements are subject
to various risks and uncertainties and assumptions relating to our
operations, financial results, financial condition, business,
prospects, growth strategy, liquidity and our proposed transaction
with certain affiliates of EQT and PSP. Actual results may differ
materially from those set forth in the forward-looking statements.
Given these risks and uncertainties, investors should not place
undue reliance on forward-looking statements as a prediction of
actual results.
Certain important factors that we think could cause our actual
results to differ materially from expected results are summarized
below. Other factors besides those summarized could also adversely
affect us. We operate in a very competitive and rapidly changing
environment. New risks and uncertainties emerge from time to time
and it is not possible for management to predict all such risks and
uncertainties or how they may affect us. In addition, we cannot
assess the impact of each factor on our business or the extent to
which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any
forward-looking statements.
Important other factors that could cause our actual results to
differ materially from those expressed in or contemplated by the
forward-looking statements include, but are not limited to: our
proposed transaction with certain affiliates of EQT and PSP may not
be completed in a timely manner or at all, including the risk that
the last remaining required direct foreign investment approval is
not obtained, is delayed or is subject to unanticipated conditions
that could adversely affect us or our ability to satisfy the
conditions to closing of the Merger; the possibility that any or
all of the various conditions to the consummation of the Merger may
not be satisfied or waived, , including the failure (a) to receive
and the last remaining required direct foreign investment approval
(or any conditions, limitations or restrictions placed on such
approvals) and (b) to satisfy conditions related to (i) there being
no event of default under certain of the Company’s existing debt
facilities, (ii) certain waivers of change of control provisions
under certain of the debt agreements of the Company and its
subsidiaries being in full force and effect at the closing,
including the possibility that such waivers fail to be in full
force and effect at the closing because any two of William H.
Berkman, Scott G. Bruce and Richard I. Goldstein have ceased to
continue in their current capacities as Chief Executive Officer,
President and Chief Operating Officer of the Company, respectively,
at the closing, and (iii) the Company having a specified minimum
cash balance and the Company or any of its subsidiaries having an
additional specified amount of additional cash, in each case at the
closing; the possibility that compliance with the minimum cash
condition to the consummation of the proposed transaction may limit
the growth of the Company’s business, depending on the availability
to the Company of other sources of capital that are permitted under
the terms of the definitive agreement entered into in connection
with the proposed transaction; the occurrence of any event, change
or other circumstance that could give rise to the termination of
the proposed transaction, including in circumstances that would
require us to pay a termination fee or other expenses; the effect
of the announcement or pendency of the proposed transaction on our
ability to retain and hire key personnel, our ability to maintain
the relationships with its customers, suppliers and others with
whom it does business, or its operating results and business
generally; risks related to diverting management’s attention from
our ongoing business operations; the risk that stockholder
litigation in connection with the proposed transaction may result
in significant costs of defense, indemnification and liability; the
extent that wireless carriers (mobile network operators, or “MNOs”)
or tower companies consolidate their operations, exit the wireless
communications business or share site infrastructure to a
significant degree; the extent that new technologies reduce demand
for wireless infrastructure; competition for assets; whether the
tenant leases for the wireless communication tower, antennae or
other digital communications infrastructure located on our real
property interests are renewed with similar rates or at all; the
extent of unexpected lease cancellations, given that most of the
tenant leases associated with our assets may be terminated upon
limited notice by the MNO or tower company and unexpected lease
cancellations could materially impact cash flow from operations;
economic, political, cultural, and regulatory risks and other risks
to our operations, including risks associated with fluctuations in
foreign currency exchange rates and local inflation rates; the
effect of the Electronic Communications Code in the United Kingdom,
which may limit the amount of lease income we generate in the
United Kingdom; the extent that we continue to grow at an
accelerated rate, which may prevent us from achieving profitability
or positive cash flow at a company level (as determined in
accordance with GAAP) for the foreseeable future, particularly
given our history of net losses and negative net cash flow; the
fact that we have incurred a significant amount of debt and may in
the future incur additional indebtedness; the extent that the terms
of our debt agreements limit our flexibility in operating our
business; and the other factors, risks and uncertainties described
in our Annual Report on Form 10-K for the fiscal year ended
December 31, 2022 and in our subsequent filings under the Exchange
Act.
RADIUS GLOBAL INFRASTRUCTURE,
INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited)
(in USD thousands, except share
and per share amounts)
Three months ended June 30,
2023
Six months ended June 30,
2023
Three months ended June 30,
2022
Six months ended June 30,
2022
Revenue
$
42,475
$
83,689
$
32,568
$
63,167
Cost of service
2,421
4,313
2,027
2,868
Gross profit
40,054
79,376
30,541
60,299
Operating expenses:
Selling, general and administrative
25,486
54,950
21,205
43,892
Share-based compensation
5,389
10,573
5,496
10,088
Amortization and depreciation
23,950
47,035
19,324
38,075
Impairment - decommissions
1,500
2,550
1,272
2,037
Total operating expenses
56,325
115,108
47,297
94,092
Operating loss
(16,271
)
(35,732
)
(16,756
)
(33,793
)
Other income (expense):
Realized and unrealized gain (loss) on
foreign currency debt
(11,982
)
(27,461
)
58,667
82,899
Interest expense
(18,957
)
(36,628
)
(16,714
)
(32,812
)
Other income (expense), net
3,751
6,966
(3,164
)
(2,072
)
Gain on extinguishment of debt
—
—
942
942
Total other income (expense), net
(27,188
)
(57,123
)
39,731
48,957
Income (loss) before income tax expense
(benefit)
(43,459
)
(92,855
)
22,975
15,164
Income tax expense (benefit)
(201
)
(1,785
)
(577
)
(3,743
)
Net income (loss)
(43,258
)
(91,070
)
23,552
18,907
Net income (loss) attributable to
noncontrolling interest
(1,402
)
(3,629
)
1,385
1,177
Net income (loss) attributable to
stockholders
(41,856
)
(87,441
)
22,167
17,730
Stock dividend payment to holders of
Series A Founders Preferred Stock
—
—
(40,832
)
(40,832
)
Net loss attributable to common
stockholders
$
(41,856
)
$
(87,441
)
$
(18,665
)
$
(23,102
)
Loss per common share:
Basic and diluted
$
(0.43
)
$
(0.90
)
$
(0.20
)
$
(0.25
)
Weighted average common shares
outstanding:
Basic and diluted
98,315,969
97,075,883
93,506,412
92,809,563
See accompanying notes to condensed
consolidated financial statements.
RADIUS GLOBAL INFRASTRUCTURE,
INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS (Unaudited)
(in USD thousands, except share
and per share amounts)
June 30, 2023
December 31, 2022
Assets
Current assets:
Cash and cash equivalents
$
282,012
$
224,258
Restricted cash
2,817
1,971
Short-term investments
19,914
39,205
Total cash, cash equivalents, restricted
cash, and short-term investments
304,743
265,434
Trade receivables, net
10,496
8,200
Prepaid expenses and other current
assets
29,091
28,773
Total current assets
344,330
302,407
Real property interests, net:
Right-of-use assets - finance leases,
net
458,401
379,052
Telecom real property interests, net
1,651,931
1,569,676
Real property interests, net
2,110,332
1,948,728
Intangible assets, net
12,239
12,121
Property and equipment, net
1,222
1,241
Goodwill
80,509
80,509
Deferred tax asset
1,636
306
Restricted cash, long-term
53,766
88,054
Other long-term assets
18,552
20,124
Total assets
$
2,622,586
$
2,453,490
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable and accrued expenses
$
55,383
$
48,767
Rent received in advance
33,781
26,551
Finance lease liabilities, current
13,355
15,589
Telecom real property interest
liabilities, current
6,549
7,975
Total current liabilities
109,068
98,882
Finance lease liabilities
22,766
22,277
Telecom real property interest
liabilities
1,252
4,483
Long-term debt, net of debt discount and
deferred financing costs
1,692,943
1,503,352
Deferred tax liability
147,073
131,229
Other long-term liabilities
12,318
10,473
Total liabilities
1,985,420
1,770,696
Commitments and contingencies
Stockholders’ equity:
Series A Founder Preferred Stock, $0.0001
par value; 1,600,000 shares authorized; 1,600,000 shares issued and
outstanding as of June 30, 2023 and December 31, 2022,
respectively
—
—
Series B Founder Preferred Stock, $0.0001
par value; 1,386,033 shares authorized; 1,386,033 shares issued and
outstanding as of June 30, 2023 and December 31, 2022,
respectively
—
—
Class A Common Stock, $0.0001 par value;
1,590,000,000 shares authorized; 99,717,040 and 95,283,563 shares
issued and outstanding as of June 30, 2023 and December 31, 2022,
respectively
10
10
Class B Common Stock, $0.0001 par value;
200,000,000 shares authorized; 10,255,811 and 12,795,694 shares
issued and outstanding as of June 30, 2023 and December 31, 2022,
respectively
—
—
Additional paid-in capital
1,088,385
1,060,055
Accumulated other comprehensive loss
(51,324
)
(85,936
)
Accumulated deficit
(426,260
)
(338,819
)
Total stockholders’ equity attributable to
Radius Global Infrastructure, Inc.
610,811
635,310
Noncontrolling interest
26,355
47,484
Total liabilities and stockholders’
equity
$
2,622,586
$
2,453,490
See accompanying notes to condensed
consolidated financial statements.
RADIUS GLOBAL INFRASTRUCTURE,
INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited)
(in USD thousands)
Six months ended June 30,
2023
Six months ended June 30,
2022
Cash flows from operating
activities:
Net income (loss)
$
(91,070
)
$
18,907
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Amortization and depreciation
47,035
38,075
Amortization of finance lease and telecom
real property interest liabilities discount
917
733
Impairment - decommissions
2,550
2,037
Realized and unrealized loss (gain) on
foreign currency debt
27,461
(82,899
)
Amortization of debt discount and deferred
financing costs
3,504
2,715
Provision for bad debt expense
303
207
Share-based compensation
10,573
10,088
Deferred income taxes
(5,632
)
(5,626
)
Gain on extinguishment
—
(942
)
Change in assets and liabilities:
Trade receivables, net
(2,232
)
(881
)
Prepaid expenses and other assets
3,123
(507
)
Accounts payable, accrued expenses and
other long-term liabilities
9,265
5,483
Rent received in advance
6,318
2,414
Net cash provided by (used in) operating
activities
12,115
(10,196
)
Cash flows from investing
activities:
Investments in real property interests and
related intangible assets
(150,402
)
(259,721
)
Advance deposits made for real property
interest investments
(138
)
(22,686
)
Proceeds from sales of real property
interests
262
—
Proceeds from maturities of short-term
investments
20,000
—
Purchases of property and equipment
(348
)
(195
)
Net cash used in investing activities
(130,626
)
(282,602
)
Cash flows from financing
activities:
Proceeds from borrowings under debt
agreements
158,760
427,003
Repayments of term loans and other
debt
—
(112,129
)
Debt issuance costs
(2,933
)
(12,571
)
Proceeds from exercises of stock
options
257
260
Repayments of finance lease and telecom
real property interest liabilities
(16,408
)
(7,407
)
Net cash provided by financing
activities
139,676
295,156
Effect of change in foreign currency
exchange rates on cash, cash equivalents and restricted cash
3,147
(19,208
)
Net change in cash and cash equivalents
and restricted cash
24,312
(16,850
)
Cash and cash equivalents and restricted
cash at beginning of period
314,283
632,193
Cash and cash equivalents and restricted
cash at end of period
$
338,595
$
615,343
Supplemental disclosure of cash and
non-cash transactions:
Cash paid for interest
$
32,793
$
30,063
Cash paid for income taxes
$
2,684
$
1,371
See accompanying notes to condensed
consolidated financial statements.
Non-GAAP Financial Measures
We use certain additional financial measures not defined by
generally accepted accounting principles in the United States
(“GAAP”) that provide supplemental information we believe is useful
to analysts and investors to evaluate our financial performance and
ongoing results of operations, when considered alongside other GAAP
measures such as net income, operating income and gross profit.
These non-GAAP measures exclude the financial impact of items
management does not consider in assessing our ongoing operating
performance, and thereby facilitate review of our operating
performance on a period-to-period basis.
EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA are non-GAAP measures. EBITDA is
defined as net income (loss) before interest expense, income tax
expense (benefit), and depreciation and amortization. Adjusted
EBITDA is calculated by taking EBITDA and further adjusting for
non-cash impairment—decommissions expense, realized and unrealized
gains and losses on foreign currency debt, realized and unrealized
foreign exchange gains/losses associated with non-debt transactions
and balances denominated in a currency other than the functional
currency, share-based compensation expense and transaction-related
costs recorded in selling, general and administrative expenses
incurred for incremental business acquisition pursuits (successful
and unsuccessful) and related financing and integration activities.
Management believes the presentation of EBITDA and Adjusted EBITDA
provides valuable additional information for users of the financial
statements in assessing our financial condition and results of
operations. Each of EBITDA and Adjusted EBITDA has important
limitations as analytical tools because they exclude some, but not
all, items that affect net income, therefore the calculation of
these financial measures may be different from the calculations
used by other companies and comparability may therefore be limited.
You should not consider EBITDA, Adjusted EBITDA or any of our other
non-GAAP financial measures as an alternative or substitute for our
results.
The following are reconciliations of EBITDA and Adjusted EBITDA
to net income (loss), the most comparable GAAP measure:
(in thousands)
Three months ended June 30,
2023
Six months ended June 30,
2023
Three months ended June 30,
2022
Six months ended June 30,
2022
(unaudited)
Net income (loss)
$
(43,258
)
$
(91,070
)
$
23,552
$
18,907
Amortization and depreciation
23,950
47,035
19,324
38,075
Interest expense
18,957
36,628
16,714
32,812
Income tax expense (benefit)
(201
)
(1,785
)
(577
)
(3,743
)
EBITDA
(552
)
(9,192
)
59,013
86,051
Impairment - decommissions
1,500
2,550
1,272
2,037
Realized and unrealized (gain) loss on
foreign currency debt
11,982
27,461
(58,667
)
(82,899
)
Share-based compensation expense
5,389
10,573
5,496
10,088
Non-cash foreign currency adjustments
(1,408
)
(1,442
)
4,177
4,582
Transaction-related costs
2,073
9,268
472
612
Adjusted EBITDA
$
18,984
$
39,218
$
11,763
$
20,471
Acquisition Capex
Acquisition Capex is a non-GAAP financial measure. Our payments
for acquisitions of real property interests consist of either a
one-time payment upon the acquisition or up-front payments with
contractually committed payments made over a period of time,
pursuant to each real property interest agreement. In all cases, we
contractually acquire all rights associated with the underlying
revenue-producing assets upon entering into the agreement to
purchase the real property interest and records the related assets
in the period of acquisition. Acquisition Capex therefore
represents the total cash spent and committed to be spent for the
acquisitions of revenue-producing assets during the period
measured. Management believes the presentation of Acquisition Capex
provides valuable additional information for users of the financial
statements in assessing our financial performance and growth, as it
is a comprehensive measure of our investments in the
revenue-producing assets that we acquire in a given period.
Acquisition Capex has important limitations as an analytical tool,
because it excludes certain fixed and variable costs related to our
selling, marketing and underwriting activities included in selling,
general and administrative expenses in the condensed consolidated
statements of operations, including corporate overhead expenses.
Further, this financial measure may be different from calculations
used by other companies and comparability may therefore be limited.
You should not consider Acquisition Capex or any of the other
non-GAAP measures we utilize as an alternative or substitute for
our results.
The following is a reconciliation of Acquisition Capex to the
amounts included as an investing cash flow in the condensed
consolidated statements of cash flows for investments in real
property interests and related intangible assets, the most
comparable GAAP measure, which generally represents up-front
payments made in connection the acquisition of these assets during
the period. The primary adjustment to the comparable GAAP measure
is “committed contractual payments for investments in real property
interests and intangible assets,” which represents the total amount
of future payments that we were contractually committed to make in
connection with our acquisitions of real property interests and
intangible assets that occurred during the period. Additionally,
foreign exchange translation adjustments impact the determination
of Acquisition Capex.
(in thousands)
Six months ended June 30,
2023
Six months ended June 30,
2022
(unaudited)
Investments in real property interests and
related intangible assets
$
150,402
$
259,721
Committed contractual payments for
investments in real property interests and intangible assets
9,963
7,036
Foreign exchange translation impacts and
other
(1,275
)
(12,627
)
Acquisition Capex
$
159,090
$
254,130
Annualized In-Place Rents
Annualized in-place rents is a non-GAAP measure that measures
performance based on annualized contractual revenue from the rents
expected to be collected on leases owned and acquired (“in place”)
as of the measurement date. Annualized in-place rents is calculated
using the implied monthly revenue from all revenue producing leases
that are in place as of the measurement date multiplied by twelve.
Implied monthly revenue for each lease is calculated based on the
most recent rental payment under such lease. Management believes
the presentation of annualized in-place rents provides valuable
additional information for users of the financial statements in
assessing our financial performance and growth. In particular,
management believes the presentation of annualized in-place rents
provides a measurement at the applicable point of time as opposed
to revenue, which is recorded in the applicable period on
revenue-producing assets in place as they are acquired. Annualized
in-place rents has important limitations as an analytical tool
because it is calculated at a particular moment in time, the
measurement date, but implies an annualized amount of contractual
revenue. As a result, following the measurement date, among other
things, the underlying leases used in calculating the annualized
in-place rents financial measure may be terminated, new leases may
be acquired, or the contractual rents payable under such leases may
not be collected. In these respects, among others, annualized
in-place rents differs from “revenue,” which is the closest
comparable GAAP measure and which represents all revenues
(contractual or otherwise) earned over the applicable period.
Revenue is recorded as earned over the period in which the lessee
is given control over the use of the wireless communication sites
and recorded over the term of the lease. You should not consider
annualized in-place rents or any of the other non-GAAP measures we
utilize as an alternative or substitute for our results. The
following is a comparison of annualized in-place rents to revenue,
the most comparable GAAP measure:
(in thousands)
Six months ended June 30,
2023
Year ended December 31,
2022
(unaudited)
Revenue for year ended December 31
$
135,456
Annualized in-place rents as of December
31
$
157,553
Annualized in-place rents as of June
30
$
176,696
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230809284403/en/
Investor Relations: Jason Harbes, CFA Email:
investorrelations@radiusglobal.com Phone: 1-484-278-2667
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