Radius Global Infrastructure Reports Third Quarter 2022 Results

Rhea-AI Summary

Radius Global Infrastructure reported a 29% year-over-year revenue increase for Q3 2022, reaching $35.3 million. This growth stemmed from new investments in real property interests, driving a 21% rise in Annualized In-Place Rents (AIPR) to $133.6 million. The company maintains strong liquidity with approximately $494 million available for asset acquisitions. Despite a slight decrease in acquisition capex, the firm aims to exceed $400 million in 2022. Management expects resilient performance in the volatile macroeconomic landscape.

Positive

• Revenue increased by 29% to $35.3 million for Q3 2022 compared to Q3 2021.
• Annualized In-Place Rents rose to $133.6 million, a 21% increase year-over-year.
• Strong liquidity with approximately $494 million available for acquisitions.
• Gross Profit margin remains high at approximately 95%.

Negative

• Foreign exchange rates negatively impacted revenue and investment figures.
• Acquisition Capex decreased by 10% to $324.2 million compared to the prior year.

Revenue Increased 29% YoY

NEW YORK--(BUSINESS WIRE)-- Radius Global Infrastructure, Inc. (Nasdaq: RADI) (“Radius” or the “Company”), one of the largest international owners and acquirors of real property interests and contractual rights underlying essential digital infrastructure assets, today reported financial results for the quarter ended September 30, 2022.

Bill Berkman, Co-Chairman and CEO of Radius Global Infrastructure, commented:

“We generated quarterly revenue of $35.3 million, up 29% from the third quarter of 2021, and we invested $70.1 million (excluding related SG&A) to acquire $4.9 million of annualized rents from new digital infrastructure sites. When combined with enhanced contractual escalator growth of 4.8% (vs. 3.3% in the comparative prior period), these acquisitions drove 21% year-over-year growth in Annualized In-Place Rents to $133.6 million as of September 30, 2022.

With approximately $500 million in cash and cash equivalents on the balance sheet available to invest and with all of our debt fixed or capped with a blended cash coupon of 3.6%, we remain well-positioned to execute on our disciplined approach to capital allocation supporting our growth strategy.

Amidst the volatility of the present macroeconomic environment, we strongly believe that our business of acquiring triple net rents underlying critical digital and data infrastructure will continue to drive attractive long-term, durable risk-adjusted and tax-efficient returns for our shareholders, especially with the benefit of uncapped contractual escalators and flexibility for additional organic growth.”

QUARTERLY RESULTS

Revenue increased 29% to $35.3 million for the three months ended September 30, 2022, as compared to revenue of $27.5 million for the three months ended September 30, 2021. The increase was primarily attributable to the additional revenue streams from investments in real property interests made during the past year, partially offset by unfavorable foreign exchange rate effects as compared with the third quarter of 2021.

Gross Profit rose 25% to $33.6 million during the three months ended September 30, 2022, as compared to gross profit of $26.9 million in the corresponding prior year period, while the Company generated a gross profit (or ground cash flow) margin of approximately 95% during the three months ended September 30, 2022. Ground cash flow margin has been impacted by expenses associated with fee simple interests acquired, primarily for property taxes.

Annualized In-Place Rents (“AIPR”) increased to $133.6 million as of September 30, 2022, an increase of $23.2 million or 21% over AIPR of $110.4 million as of September 30, 2021. On a constant currency basis, AIPR would have increased 38% year-over-year to $151.9 million as of September 30, 2022.

YEAR-TO-DATE RESULTS

Revenue increased 32% to $98.5 million for the nine months ended September 30, 2022, as compared to revenue of $74.6 million for the nine months ended September 30, 2021.

Gross Profit rose 28% to $93.9 million for the nine months ended September 30, 2022, as compared to gross profit of $73.3 million in the corresponding prior year period.

Investments in Real Property Interests and Related Intangible Assets, as identified in the Company’s Condensed Consolidated Statements of Cash Flows, was $338.2 million and $354.0 million for the nine months ended September 30, 2022 and 2021, respectively. For the nine months ended September 30, 2022, investments in real property interests and related intangible assets were impacted by the effects of unfavorable foreign exchange rates, reducing these cash outflows by approximately $26.9 million. Excluding this foreign exchange impact, investments in real property interests and related intangible assets increased by $11.1 million, or 3%, for the nine months ended September 30, 2022 over the corresponding prior year period.

Acquisition Capex was $324.2 million and $359.7 million for the nine months ended for the nine months ended September 30, 2022 and September 30, 2021, respectively, or a decrease of $35.5 million, or 10%, for the nine months ended September 30, 2022 over the nine months ended September 30, 2021. On a constant currency basis, Acquisition Capex would have increased 5% year-over-year to $378.0 million during the nine months ended September 30, 2022.

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 September 30, 2022. The Company pays for its acquisitions of real property (and other) interests either with a one-time payment at the time of acquisition or, under certain circumstances, 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 the Condensed 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 (and other) 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 in assessing the Company’s financial performance and growth. Please refer to the table below for a full reconciliation of Investments in Real Property Interests and Related Intangible Assets to Acquisition Capex.

LIQUIDITY

As of September 30, 2022, Radius had $516.7 million of total cash and cash equivalents and restricted cash. Of this amount, approximately $494.0 million was available to deploy for asset acquisitions. Radius also had $1.2 billion of available uncommitted borrowing capacity under various debt facilities in addition to the ability to access the worldwide credit and capital markets, subject to market conditions, in order to issue additional debt or equity if needed or desired.

FINANCING TRANSACTIONS

The summary below presents significant financing activities that have occurred in 2022.

• In April 2022, Radius borrowed $165 million under a new credit facility that matures in April 2027. Radius used the proceeds of this new facility to repay amounts outstanding under an existing credit facility that was scheduled to mature in October 2023. The initial borrowing accrues interest at a fixed annual rate of approximately 3.64%, which will be payable monthly. This compares to a cash pay interest rate of 4.25% under the previous credit facility. Concurrent with the closing of the transaction, Radius received an ‘A’ rating from Fitch for the facility, which has a leverage cap of 9.75x eligible annual cash flow (defined as Annualized In-Place Rents less a servicing fee).

• In January 2022, Radius borrowed €225 million ($257.5 million as of the funding date) of the €750 million available under a new financing facility that Radius entered into in December 2021. The initial borrowing accrues interest at a fixed annual rate of approximately 3.2%, which is payable quarterly and will mature in January 2030.

OUTLOOK FOR 2022

Total Acquisition Capex of $324 million for the first three quarters of 2022 keeps Radius on a trajectory to achieve its prior outlook of deploying at least $400 million of Acquisition Capex in 2022. As the Company has previously noted, there may be quarterly variability in the amount of capital deployed.

CONFERENCE CALL INFORMATION

Management will host a webcast and conference call on Wednesday, November 9, 2022 at 10:30 A.M. Eastern Time to review the Company’s third quarter 2022 financial results, discuss recent events and conduct a question-and-answer session.

The live webcast and supplemental materials with additional details regarding the Company’s operating results, financial position and investment portfolio will be available through the “News & Events” section of the Company’s website: https://www.radiusglobal.com/news-events/events-presentations. A replay of the webcast and access to the presentation slides will be available on the Company’s website.

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 Third Quarter 2022 Earnings Conference Call. A telephonic replay can be accessed through November 23, 2022 by dialing 1-844-512-2921 (U.S. domestic) or 1-412-317-6671 (International), passcode 13733172.

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 (the “Securities Act”), 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, Acquisition Capex, results of operations, plans and objectives, including with respect to capital allocation and other financial and organizational matters, and macroeconomic conditions. 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 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, 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 and liquidity. 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 those expressed in or contemplated by the forward-looking statements 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: 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 outside the U.S., 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; the impact of the ongoing COVID-19 pandemic and the response thereto; and the other factors, risks and uncertainties described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 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 September 30, 2022				Nine months ended September 30, 2022				Three months ended September 30, 2021				Nine months ended September 30, 2021
Revenue		$	35,295			$	98,462			$	27,464			$	74,609
Cost of service			1,713				4,581				549				1,357
Gross profit			33,582				93,881				26,915				73,252
Operating expenses:
Selling, general and administrative			25,543				69,435				18,980				53,235
Share-based compensation			5,375				15,463				3,878				11,823
Amortization and depreciation			21,045				59,120				16,828				46,483
Impairment - decommissions			706				2,743				386				2,780
Total operating expenses			52,669				146,761				40,072				114,321
Operating loss			(19,087	)			(52,880	)			(13,157	)			(41,069	)
Other income (expense):
Realized and unrealized gain on foreign currency debt			63,694				146,593				16,540				27,485
Interest expense, net			(16,771	)			(49,583	)			(12,330	)			(33,584	)
Other income (expense), net			1,209				(863	)			(54	)			(1,933	)
Gain on extinguishment of debt			—				942				—				—
Total other income (expense), net			48,132				97,089				4,156				(8,032	)
Income (loss) before income tax expense (benefit)			29,045				44,209				(9,001	)			(49,101	)
Income tax expense (benefit)			4,040				297				(92	)			5,330
Net income (loss)			25,005				43,912				(8,909	)			(54,431	)
Net income (loss) attributable to noncontrolling interest			1,458				2,635				(452	)			(3,873	)
Net income (loss) attributable to stockholders			23,547				41,277				(8,457	)			(50,558	)
Less: Income allocated to participating securities			(391	)			(7	)			—				—
Stock dividend payment to holders of Series A Founders Preferred Stock			—				(40,832	)			—				(31,391	)
Net income (loss) attributable to common stockholders		$	23,156			$	438			$	(8,457	)		$	(81,949	)
Income (loss) per common share:
Basic		$	0.24			$	0.00			$	(0.11	)		$	(1.21	)
Diluted		$	0.23			$	0.00			$	(0.11	)		$	(1.21	)
Weighted average common shares outstanding:
Basic			94,687,356				93,442,372				75,595,090				67,992,054
Diluted			112,179,224				98,841,277				75,595,090				67,992,054

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)
		September 30, 2022				December 31, 2021
Assets
Current assets:
Cash and cash equivalents		$	403,966			$	456,146
Restricted cash			2,649				2,085
Trade receivables, net			7,242				7,933
Prepaid expenses and other current assets			27,094				20,685
Total current assets			440,951				486,849
Real property interests, net:
Right-of-use assets - finance leases, net			328,956				301,865
Telecom real property interests, net			1,312,101				1,174,186
Real property interests, net			1,641,057				1,476,051
Intangible assets, net			8,626				7,914
Property and equipment, net			1,117				1,789
Goodwill			80,509				80,509
Deferred tax asset			207				160
Restricted cash, long-term			110,080				173,962
Other long-term assets			20,613				9,701
Total assets		$	2,303,160			$	2,236,935
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses		$	44,282			$	36,995
Rent received in advance			23,901				24,485
Finance lease liabilities, current			15,460				10,567
Telecom real property interest liabilities, current			6,255				3,828
Total current liabilities			89,898				75,875
Finance lease liabilities			20,459				24,766
Telecom real property interest liabilities			6,216				12,884
Long-term debt, net of debt discount and deferred financing costs			1,412,166				1,272,225
Deferred tax liability			67,878				62,296
Other long-term liabilities			10,088				5,231
Total liabilities			1,606,705				1,453,277
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 September 30, 2022 and December 31, 2021, respectively			—				—
Series B Founder Preferred Stock, $0.0001 par value; 1,386,033 shares authorized; 1,386,033 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively			—				—
Class A Common Stock, $0.0001 par value; 1,590,000,000 shares authorized; 95,283,563 and 92,159,612 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively			10				9
Class B Common Stock, $0.0001 par value; 200,000,000 shares authorized; 12,795,694 and 11,551,769 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively			—				—
Additional paid-in capital			1,054,529				1,038,740
Accumulated other comprehensive loss			(174,689	)			(27,784	)
Accumulated deficit			(236,855	)			(278,132	)
Total stockholders’ equity attributable to Radius Global Infrastructure, Inc.			642,995				732,833
Noncontrolling interest			53,460				50,825
Total liabilities and stockholders’ equity		$	2,303,160			$	2,236,935

See accompanying notes to condensed consolidated financial statements.

RADIUS GLOBAL INFRASTRUCTURE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in USD thousands, except share and per share amounts)
		Nine months Ended September 30, 2022				Nine months Ended September 30, 2021
Cash flows from operating activities:
Net income (loss)		$	43,912			$	(54,431	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Amortization and depreciation			59,120				46,483
Amortization of finance lease and telecom real property interest liabilities discount			1,092				1,019
Impairment - decommissions			2,743				2,780
Realized and unrealized gain on foreign currency debt			(146,593	)			(27,485	)
Amortization of debt discount and deferred financing costs			4,466				1,029
Provision for bad debt expense			106				265
Share-based compensation			15,463				11,823
Deferred income taxes			(7,898	)			2,170
Gain on extinguishment of debt			(942	)			—
Change in assets and liabilities:
Trade receivables, net			(293	)			(768	)
Prepaid expenses and other assets			(10,019	)			(3,990	)
Accounts payable, accrued expenses and other long-term liabilities			17,015				3,903
Rent received in advance			2,889				4,897
Net cash used in operating activities			(18,939	)			(12,305	)
Cash flows from investing activities:
Investments in real property interests and related intangible assets			(338,236	)			(354,008	)
Advance deposits made for real property interest investments			(10,867	)			—
Proceeds from sales of real property interests			455				—
Purchases of property and equipment			(281	)			(582	)
Net cash used in investing activities			(348,929	)			(354,590	)
Cash flows from financing activities:
Borrowings under debt agreements			427,003				433,440
Repayments of term loans and other debt			(112,129	)			(166	)
Purchase of capped call options			—				(33,221	)
Debt issuance costs			(12,730	)			(12,986	)
Proceeds from issuance of common stock, net of issuance costs			—				191,461
Proceeds from exercises of stock options and warrants			327				187
Repayments of finance lease and telecom real property interest liabilities			(9,910	)			(11,862	)
Net cash provided by financing activities			292,561				566,853
Net change in cash and cash equivalents and restricted cash			(75,307	)			199,958
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash			(40,191	)			(488)
Cash and cash equivalents and restricted cash at beginning of period			632,193				215,448
Cash and cash equivalents and restricted cash at end of period		$	516,695			$	414,918
Supplemental disclosure of cash and non-cash transactions:
Cash paid for interest		$	47,038			$	30,666
Cash paid for income taxes		$	2,019			$	1,884

See accompanying notes to condensed consolidated financial statements.

Non-GAAP Financial Measures

We identify certain additional financial measures not defined by 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, gross profit and net cash provided by operating activities. 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 net 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 September 30, 2022				Nine months ended September 30, 2022				Three months ended September 30, 2021				Nine months ended September 30, 2021
(unaudited)
Net income (loss)		$	25,005			$	43,912			$	(8,909	)		$	(54,431	)
Amortization and depreciation			21,045				59,120				16,828				46,483
Interest expense, net			16,771				49,583				12,330				33,584
Income tax expense (benefit)			4,040				297				(92	)			5,330
EBITDA			66,861				152,912				20,157				30,966
Impairment - decommissions			706				2,743				386				2,780
Realized/unrealized gain on foreign currency debt			(63,694	)			(146,593	)			(16,540	)			(27,485	)
Share-based compensation expense			5,375				15,463				3,878				11,823
Non-cash foreign currency adjustments			1,745				6,327				403				2,406
Transaction-related costs			3,095				3,707				112				1,836
Adjusted EBITDA		$	14,088			$	34,559			$	8,396			$	22,326

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)		Nine months ended September 30, 2022				Nine months ended September 30, 2021
(unaudited)
Investments in real property interests and related intangible assets		$	338,236			$	354,008
Committed contractual payments for investments in real property interests and intangible assets			13,325				15,602
Foreign exchange translation impacts and other			(27,338	)			(9,952	)
Acquisition Capex		$	324,223			$	359,658

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)		Nine months ended September 30, 2022				Year ended December 31, 2021
Revenue for year ended December 31						$	103,609
Annualized in-place rents as of December 31						$	117,924
Annualized in-place rents as of September 30		$	133,553

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221108006210/en/

Investor Relations:

Jason Harbes, CFA

Email: investorrelations@radiusglobal.com

Phone: 1-484-278-2667

Source: Radius Global Infrastructure, Inc.

FAQ

What financial results did Radius Global Infrastructure report for Q3 2022?

Radius reported a 29% increase in revenue, reaching $35.3 million for Q3 2022.

How much did Radius Global's Annualized In-Place Rents increase?

Annualized In-Place Rents increased by 21% to $133.6 million as of September 30, 2022.

What is the Acquisition Capex for Radius Global in 2022?

Acquisition Capex for the first three quarters of 2022 was $324.2 million, a decrease of 10% from the previous year.

How much liquidity does Radius Global have for asset acquisitions?

Radius Global has approximately $494 million available for asset acquisitions as of September 30, 2022.

When will Radius Global Infrastructure host its Q3 2022 earnings conference call?

The Q3 2022 earnings conference call is scheduled for November 9, 2022, at 10:30 A.M. Eastern Time.