NEW YORK–(BUSINESS WIRE)–Radius Global Infrastructure, Inc. (NASDAQ: RADI), one of the largest global owners and acquirors of real property interests and contractual rights underlying essential telecommunications digital infrastructure in 19 countries, today reported results for the first quarter of 2021.
“We are very pleased to announce another quarterly result of strong revenue, gross profit and portfolio growth, adding to the significant capital deployment achieved in the fourth quarter of 2020. In Q1 2021, we increased revenue by 42% over the 2020 first quarter, bringing our Annualized In Place Rents to over $90 million. We are excited to continue adding to the powerful scale of these stable cash flow streams underlying essential telecom digital infrastructure leases,” commented Bill Berkman, Co-Chairman and Chief Executive Officer.
FINANCIAL RESULTS
Revenue increased 42% to $22.2 million for the three months ended March 31, 2021 compared to revenue of $15.6 million for the three months ended March 31, 2020.
Gross Profit increased 41% to $21.9 million Q1 2021 compared to gross profit of $15.5 million in the corresponding 2020 three-month period, while maintain a gross profit margin of approximately 99%.
Annualized In Place Rents increased to $90.6 million as of March 31, 2021, an increase of $29.8 million or 49% over the March 31, 2020 Annualized In Place Rents of $60.8 million.
Investments in Real Property Interests and Related Intangible Assets, as identified in the Company’s Consolidated Statements of Cash Flows, was $104.7 million and $21.6 million for the three months ended March 31, 2021 and 2020 respectively, an increase of $83.1 million, or 385%, for the quarter ended March 31, 2021 over the quarter ended March 31, 2020.
Acquisition Capex deployed by the Company was $107.8 million and $28.4 million for the quarter ended March 31, 2021 and 2020 respectively, an increase of $79.4 million or 280% for the quarter ended March 31, 2021 over the quarter ended March 31, 2020.
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-Q for the quarter ended March 31, 2021. The Company pays for its acquisitions of real property 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 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 TRANSACTIONS
On April 15, 2021, the Company issued $75 million junior secured debt on its domestic rental streams at 98.25, with a 6% cash pay interest only that matures in April 2023. Additionally, the Company added approximately $94 million of USD equivalents in February 2021 with the issuance of eight year, fixed and floating rate, interest-only global secured notes under an existing debt facility. The global secured debt was issued in 77 million euros at a cash coupon rate of 3.9%, with 1.75% of interest paid in kind.
On May 11, 2021, the Company agreed to issue 14,336,918 shares of Class A common stock in a private offering (PIPE) with various investors. The purchasers of the shares of Class A Common Stock will be entitled to registration rights, including the Company’s obligation to file a registration statement with the SEC with respect to such shares no later than June 11, 2021. The price of the Class A common stock issued in this transaction, which is expected to close on or about May 14, 2021, was $13.95 per share, representing the volume weighted average price (VWAP) for the 5-day trading period ending on May 11, 2021 of $14.68 per share, less a 5% discount.
The proceeds of all financing transactions (debt and equity) will be used to fund continued growth. Goldman Sachs & Co. LLC acted as placement agent for the Company in connection with the PIPE transaction.
Attachment: Financial statement tables and non-GAAP reconciliations
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 primarily triple net rental streams from wireless operators and tower companies for properties underlying their mission critical digital infrastructure. APW’s proven lease origination engine drives attractive yields on capital invested and maintains a broad pipeline of acquisition opportunities.
For further information see https://www.radiusglobal.com.
