Radius Global Infrastructure Reports 2020 Results

Rhea-AI Summary

Radius Global Infrastructure (NASDAQ: RADI) reported strong financial results for Q4 and the full year 2020. Revenue rose 36% to $20.1 million in Q4, with annual revenue increasing 25% to $69.8 million. Gross profit for Q4 also surged 37% to $19.9 million, with a full-year gross profit of $69.1 million, up 25%. Annualized In Place Rents reached $84.1 million, a 35% year-over-year increase. Acquisition Capex rose 123% to $220.8 million. The company secured approximately $94 million in funding via interest-only secured notes in February 2021.

Positive

• Q4 revenue increased by 36% to $20.1 million.
• Annual revenue rose by 25% to $69.8 million for 2020.
• Gross profit increased by 37% in Q4 to $19.9 million.
• Full-year gross profit increased by 25% to $69.1 million.
• Annualized In Place Rents reached $84.1 million, a 35% increase year-over-year.
• Acquisition Capex surged 123% to $220.8 million.

Negative

• None.

Radius Global Infrastructure, Inc. (NASDAQ: RADI) (“Radius” or the “Company”), one of the largest global owners and acquirors of primarily triple net real property interests and contractual rights underlying wireless communications cell sites and other essential digital infrastructure in 19 countries, today reported results for the fourth quarter of and year end 2020.

“We are extremely pleased with our 2020 results as we delivered strong revenue, gross profit and portfolio growth. Our global acquisition platform generated significant acquisitions at an increasing rate of capital deployment, allowing us to grow our strategic rent portfolio appreciably. In the fourth quarter, we increased revenue by 36%, bringing our Annualized In Place Rents to $84.1 million. We had a similar 35% increase of Annualized In Place Rents year over year. These stable cash flow streams underlying essential telecom infrastructure leases provide a powerful balance of yield and growth, now in increasing scale,” commented Bill Berkman, Co-Chairman and Chief Executive Officer.

QUARTERLY RESULTS

Revenue increased 36% to $20.1 million for the three months ended December 31, 2020 compared to revenue of $14.8 million for the three months ended December 31, 2019.

Gross Profit increased 37% to $19.9 million in the 2020 three-month period when compared to gross profit of $14.5 million in the corresponding 2019 three-month period.

FULL-YEAR RESULTS

Revenue increased 25% to $69.8 million for the year ended December 31, 2020 compared to revenue of $55.7 million for the year ended December 31, 2019.

Gross Profit increased 25% to $69.1 million in the 2020 twelve-month period when compared to gross profit of $55.4 million in the corresponding 2019 twelve-month period.

Annualized in Place Rents increased to $84.1 million as of December 31, 2020, an increase of 35% over the December 31, 2019 Annualized In Place Rents of $62.1 million.

Investments in Real Property Interests and Related Intangible Assets as identified on the Company’s Consolidated Statements of Cash Flows was $180.7 million and $78.1 million for the year ended December 31, 2020 and 2019 respectively, an increase of $102.6 million or 131% for the year ended December 31, 2020 over the year ended December 31, 2019.

Acquisition Capex deployed by the Company was $220.8 million and $98.9 million for the year ended December 31, 2020 and 2019 respectively, an increase of $121.9 million or 123% for the year ended December 31, 2020 over the year ended December 31, 2019.

We refer you to the GAAP financial disclosure and reconciliations to non-GAAP financial measurement set forth below and in the Company’s Form 10-K. The Company pays for its acquisitions of real property interests either with a one-time payment at the time of acquisition or, in a limited number of instances, with a combination of upfront payments and future contractually committed payments over a period of time, in each case pursuant to the individual acquisition agreement. In our Consolidated Statements of Cash flows, the one-time and upfront cash payments are reported as Investments in Real Property Interests and Related Intangible Assets. The total cash spent and the commitment for future payments in any given period for the acquisition of real property interests adjusted for changes in foreign currency is our Acquisition Capex. Acquisition Capex is a non-GAAP metric, albeit one the Company believes is valuable to readers of the Company’s financial statements. Please refer to the table below for a full reconciliation of Acquisition Capex.

2021 FINANCING TRANSACTION

The Company added approximately $94 million of USD equivalents in February 2021 with the issuance of eight year, fixed and floating rate, interest-only secured notes under an existing debt facility. The debt was issued in 77 million Euros at a cash coupon rate of 3.9%, and 1.75% of interest paid in kind.

Attachment: Financial statement tables and non-GAAP reconciliations

WEBCAST AND CONFERENCE CALL INFORMATION

Management will host a webcast and conference call on Tuesday, March 30, 2021 at 8:30 A.M. Eastern Time to review the Company’s audited consolidated financial results, discuss recent events and conduct a question-and-answer session.

The live webcast and presentation slides will be available through the “News & Events” section of the Company’s website, https://www.radiusglobal.com/news-events/events-presentations. Participants are advised to go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.

For those unable to access the webcast, the conference call will be accessible domestically or internationally, by dialing 1-877-407-0789 or 1-201-689-8562, respectively. Upon dialing in, please request to join the Radius Global Infrastructure Fourth Quarter and Full Year 2020 Earnings Conference Call.

A replay of the webcast and access to the presentation slides will be available on the Company’s website until Tuesday, April 13, 2021, at https://www.radiusglobal.com/news-events/events-presentations.

About the Company

Radius Global Infrastructure, Inc., through its subsidiary AP WIP Investments, LLC ("APW"), is a multinational owner of a growing, diversified portfolio of triple-net ground, rooftop and other critical communications properties leased to wireless carriers and tower companies underlying their mission critical cell site antenna infrastructure. APW's proven lease origination engine drives highly attractive yields on capital invested. The Company is also expanding into other digital infrastructure segments and has a broad pipeline of proprietary and non-proprietary acquisitions, investments, and build-to-suit opportunities.

For further information see https://www.radiusglobal.com.

FORWARD-LOOKING STATEMENTS AND DISCLAIMERS

This press release, including the attachments, contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended. You can identify these statements by the use of forward-looking terminology such as "may," "will," "should," "expect," "anticipate," "project," "estimate, " "intend," "continue" or "believe" or the negatives thereof or other variations thereon or comparable terminology. You should read statements that contain these words carefully because they discuss our plans, strategies, prospects, and expectations concerning our business, operating results, financial c

FAQ

What were the fourth quarter results for Radius Global Infrastructure (RADI)?

Radius reported a 36% increase in Q4 revenue, totaling $20.1 million, and a gross profit increase of 37% to $19.9 million.

How did Radius Global Infrastructure perform in 2020?

For the full year 2020, Radius saw a 25% increase in revenue to $69.8 million and a gross profit increase of 25% to $69.1 million.

What is the current status of Annualized In Place Rents for RADI?

As of December 31, 2020, Annualized In Place Rents stood at $84.1 million, reflecting a 35% year-over-year increase.

How much did Radius invest in Acquisition Capex in 2020?

Radius reported an Acquisition Capex of $220.8 million in 2020, a significant increase of 123% from the previous year.

What financing did Radius Global secure in February 2021?

In February 2021, Radius secured approximately $94 million through the issuance of eight-year, interest-only secured notes.