EarningsCall · RADI Q4 2020

spk07: Good morning and welcome to RADIUS Global Infrastructure 4th 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 instructions to join the question queue after management's comments. Today's conference is being recorded. I will now turn the call over to Jay Birnbaum, RADIUS's General Counsel. Please go ahead, sir.

spk02: Thank you, operator, and welcome everyone to the RADIUS Global Infrastructure Fourth Quarter and Full Year 2020 Earnings Call. Before we begin, I would like to remind everyone that many of the comments made today are considered forward-looking statements under federal securities laws. As described in our earnings release and filings with the SEC, These statements are subject to numerous risks and uncertainties that could cause future results to differ from those expressed. These statements speak as of today's date, and we undertake no obligation publicly to update or revise these forward-looking statements. In addition, on today's call, we may discuss certain non-GAAP financial information. You can find this information together with reconciliations to the most directly comparable GAAP financial measure in this morning's earnings release and the supplemental financial information available on our website, www.radiusglobal.com. Bill?

spk14: Thanks, Jay. Thank you and welcome everyone to RADIUS's fourth quarter and year-end 2020 earnings conference call. We hope everyone is doing well and preparing for a gradual return to a new normal. 2020 was a pivotal year for RADIUS as we completed our merger with Landscape Acquisition Holdings, re-domiciled to Delaware, and listed on the NASDAQ in the third quarter. During this time, our team remained extremely focused on growth capital deployment in acquiring and managing real property interests underlying critical communication sites, including under wireless towers, rooftops, fiber interconnection sites, data antenna system networks, and related digital infrastructure assets. In 2020, we more than doubled year-over-year acquisition spend to $221 million, When taking into consideration the cost of the origination platform, this represents a blended purchase yield of 7.2 percent. After the application of leverage, we expect these investments will produce returns in the mid-teens over their asset lives. In addition, we expect this overall growth in scale will result in a proportional decline in acquisition SG&A as we realize benefits from incremental operating scale and leverage. In coordination with our capital deployment efforts, our team has been actively exploring ways to enhance our liquidity and is continuously focused on lowering our cost of capital to support our core asset origination growth as well as other growth initiatives. The significant growth achieved in the fourth quarter and the entire year resulted in our owning, as of year end, 5,427 sites and 7,189 lease streams. These results represent 18 percent growth over sites and leases owned at the end of 2019. We deployed 118 million of new capital in the fourth quarter compared to 38 million in the fourth quarter of 2019, bringing our annual total in 2020, as I mentioned before, to 221 million, more than twice the amount deployed in 2019. Our team swiftly and successfully adapted to the wide-ranging impacts of the pandemic. The success of this underscores the effectiveness of our global origination platform. With respect to our portfolio composition and attributes, we ended the year with 56% of our sites in Europe, 26% in North America, and 18% in South America. With 59% of our annualized in-place rents represented by Europe, 26% of these rents represented by North America and 15 percent in South America. U.S. rental streams continue to be dominated by ground-under-tower assets at 73 percent, with the balance primarily representing rooftop property interests. Internationally, 52 percent of our rental streams are rents under towers and 32 percent are from rooftops. The weighted average remaining tenant term of our portfolio leases at year-end 2020 was approximately nine years. In 2020, our rents enjoyed 4.9 percent of a contractual escalator and organic growth, offset by 1.1 percent in churn for net growth of 3.8 percent. This combination of long-term revenue visibility, attractive annual growth, and low annual churn reinforces for us the desirability of the digital infrastructure asset class. We are enthusiastic about our growth prospects in 2021. Our global pipeline remains extremely active, and we are diligently working to pursue accretive opportunities for our shareholders. The massive annual global investment in digital infrastructure continues to produce tailwinds that propels our business model, both in our existing operations and new jurisdictions. We look forward to sharing our ongoing process. Now, Glenn Reisinger, our CFO, will discuss our financial results in more detail.

spk04: Glenn? Thanks, Bill. We are pleased with our fourth quarter performance, which capped a year of strong growth. Fourth quarter revenues were $20.1 million, which was up 36% compared to the prior year quarter, and gross profit was $19.9 million, up 37% over the prior year. In terms of asset growth, during the fourth quarter, we deployed 118 million of new capital, compared to 38 million during the prior year fourth quarter, a 210% increase. This origination activity represented 9.5 million in rents across 286 lease streams. This brought our full year deployment to 220.8 million, up 123% from the comparable prior year period. Our strong performance, both in the quarter and for the full year, demonstrates the value of the origination platform that we have developed over the past 10 years. We have posted our earnings release, our 10K, and a supplemental financial reporting package on our website to provide additional details and assist you with the analysis of the company. As you review our results, keep in mind that in the prior year period, AP Wireless had not yet been acquired. So our year to date financial statements for 2020 commenced with the completion of our acquisition of AP Wireless on February 10th, 2020. We have provided our results for three time periods to assist you in billing comparable periods for the full year. Please refer to our supplemental reporting package for a pro forma 12 month presentation on our relative key performance metrics. Turning to our full year results, the company delivered $69.8 million in combined revenues, representing a 25% increase over the prior year period. Reflecting the growth in our rental streams from both our in-place portfolio escalators, other revenue enhancements, and acquired rental streams, our annualized base rents at year end increased 35% to $84.1 million from $62.1 million the year before. Our gross profit increased 25% year-over-year to $69.1 million, as compared to $55.4 million a year ago, in line with our revenue growth. Our growth was fueled by $256.1 million of net growth spent for the full year, of which $35.4 million was for selling, marketing, underwriting, and related costs to acquire assets producing annualized in-place rents of $18.5 million. As Bill mentioned, these rent streams produce a year one fully burdened unlevered yield of 7.2%. I would like to note that our origination SG&A as a multiple of one rent acquired decreased by a full multiple turn from approximately three times in 2019 to approximately two times in 2020. We anticipate that as RADIUS continues to grow and originate assets, operational SG&A should decrease on a proportional basis over time. With respect to our balance sheet and liquidity, at year-end, we had total gross debt outstanding of $735.4 million and net debt of $577.5 million with aggregate cash of $215.4 million. This debt is 100% institutional, fixed rate at a weighted average cash coupon of 4.3%, and interest only until maturity. The weighted average term is seven years and we presently have no material refinancing due prior to 2023. Subsequent to year end, we added debt of approximately 77 million Euro representing 94 million of USD equivalents in February 2021 with the issuance of eight year fixed and floating rate interest only secured junior notes under one of our existing debt facilities. This debt carries a 3.9% coupon for cash pay and 1.75% of interest paid in kind. This allows us to continue to enhance our liquidity and lower our cost of capital to support our growth initiatives. I'd now like to turn the call back over to Bill.

spk14: Thank you, Glenn. This concludes our prepared remarks. We would now like to open the call for questions. Operator, please open the lines for any questions. Thank you.

spk07: Thank you. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. And for participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. Our first question is from Sammy Badri with Credit Suisse. Please proceed.

spk03: Thank you and congrats everyone right out the gate towards the end of the year 4Q20. I just have a couple of questions for you guys. The first one is looking at your metrics like the number of sites acquired and then the annualized in-place rents average per site in 4Q20. So I'm just trying to take kind of some KPIs and compare 4Q20 to the prior quarters. Was there a change in the region or asset types that were acquired in 4Q20 that kind of may be throwing off the averages per site a little bit?

spk14: Yeah, I think it's a good question, Sammy, and good morning to you. Yes, we've had an addition of incremental asset classes, as I mentioned in my prepared remarks. Sometimes those asset classes produce different rents than we'll see In certain countries for wireless underneath towers, those asset classes, again, being sort of fiber aggregation points and distributed antenna system are typically indoors, such as a hospital as an example.

spk03: Got it. Got it. So just in 4Q20, you guys found yourselves more just acquiring that specific type of asset, and that was essentially like the predominant focus just because The averages were thrown off a little bit, and I just want to make sure I completely understand all those.

spk14: I wouldn't say that was predominant, but you're going to occasionally get, as you know, a distribution that happens that can throw the average off because you have one or two larger deals. Let's take a large hospital that we were successful in acquiring as an example. Those are the type of things that can throw an average off, but on the whole, I guess the way we view it is, you know, our mission is to find essential critical assets with high, you know, high credit quality tenants that are driving, you know, great rents. And so we don't really distinguish in our mind the quality of the asset. We just happen to have, I guess, looked at the adjacencies and said they're completely similarly situated as to what we've been doing before.

spk03: Got it. Got it. So I think I have, One follow-up to just this topic for the next set of questions is, would these kinds of assets that you guys are acquiring, these aggregation points, or these, you know, think of these as like, well, aggregation points probably is the best way to put it, but are these considered higher value or stickier sites when you compare them to some of the other assets in the portfolio on a relative basis?

spk14: You know, I guess the way we view it is our mission is to do a great job of underwriting. So every site is different. But the answer is I think they're just equivalent. We know they'll stand the test of time. If you look at the overall network, which is just something that we've spent 30 years doing, which is building networks and recognizing what sites just are really incredibly difficult to replace or just uneconomic to replace. So I guess simply said, they're very sticky and they're very compelling, at least to us.

spk03: Got it, got it. So shifting over to SG&A, and you guys have a slide, slide 15, in the supplemental or in the presentation that was also published today. So you guys made a comment regarding the multiple, the origination SG&A as a multiple of rent and wire with it coming down to about two times in 2020. What should be the investor expectation for this multiple as you guys continue to grow over time? Should we be looking at similar type of multiple compression cadence, or is this going to start normalizing over the next couple of years?

spk14: I think it's a good question, and I hate to give any forward guidance as to what will or won't be. You know, one of the things that will happen is as we enter into new jurisdictions, often it takes an investment up front. So I'm hesitant to tell you that this is just a trend and it's always going to happen. Now, that being said, scale economics should lead to just further improvement. As to quantify what we think that would be, it's just too difficult for us to say. And that's why we've determined not to give any more forward guidance. But we're hopeful we get more efficient every year.

spk03: Got it. Got it. So along the lines of what you just said, you guys are not going to provide maybe quantitative 2021 or forward-looking guidance, but maybe on the qualitative side, if you look at the macroeconomic industry trends that were essentially in play in 3Q and 4Q of 2020, would you say the same economic or macroeconomic drivers for your business are still there in 2021?

spk14: I'm not sure I know exactly what you're referring to on the macro, but I think what we saw in 2020 should hopefully still exist for 2021, but you just, you know, you never know what's going to happen out there, just like we never knew there was going to be a pandemic this last year.

spk03: Got it, got it. All right, thank you. I will let another analyst ask a question. Thank you. No, sure.

spk14: Happy to answer any, Sandy.

spk07: Our next question is from Rick Prentice with Raymond James. Please proceed.

spk06: Hey, good morning, Rick. Hey, good morning, guys. Glad you're doing well. A couple of follow-up questions to Sammy's there as well. As we think about acquisition capex, clearly that's one of the governing factors to creating the growth over time. How should we think about your targets and your aspirations of how much could be put to work as we think about the next one, three, five years maybe?

spk14: Look, it's a great question. I think the way we were always trained is to under-promise and over-deliver. I think a lot of it comes down to how well we can identify and acquire some of the adjacent assets. And then number two, our ability to enter into new jurisdictions, which of course will expand what we're able to acquire. And then third, you know, our team just continuing to do their job in our local operating markets. I think those are the three core drivers, at least for what we would consider the origination side of our business. And then on the other front, you know, we, like everybody else, are seeing, you know, quite a lot of activity just from an M&A perspective in assets that are much larger in scale, being portfolios that's going on. And at some point, I wouldn't be surprised that you see us, you know, selectively making a larger acquisition. You would imagine that we... spent a fair amount of time on a bunch of them in the last couple quarters. But that doesn't mean when you seek to get married that you always win. So you would imagine, as we haven't announced anything, that we didn't win some deals that we were really seriously looking at. But I think it's okay. You know, it's hard to project out, and that's why I said to Sammy that forward guidance is really hard for us, but we feel very confident that we have a long runway to originate. It's just really hard to I guess, predict or forecast what that's going to be.

spk06: Right. But if you think longer term, yeah. Any thoughts? Obviously, origination can bounce around quarter to quarter, month to month. Any thoughts about kind of the size of the checkbook that might be able to be put to work just to scale it as far as goalposts?

spk14: I think it's pretty substantial. You know, when you think about it, in the operating markets we're in today, there's roughly a million people wireless sites and then you add in some of the adjacent asset classes and then if you said to yourself the target jurisdictions where we think we can expand to which have the sort of characteristics that we look for probably is in the sort of another 500 000 wireless sites that are there and presently we're approaching 6 000 sites that we own so you can see the total addressable market's huge It's just being efficient and buying, of course, the right assets and buying at what we would consider to be the right price. And so I know I'm not answering your question as specifically as you'd like. I just would say the runway is quite long and, frankly, wide for us. We just have to keep our head down and execute.

spk06: That makes sense. And you mentioned, obviously, pricing in the marketplace. How is that affecting you? Because definitely... A lot of people are excited by digital infrastructure. Interest rates have been low, although maybe trending up a little bit. But it definitely has created maybe a tougher environment to get assets at the prices you want. Just maybe give us a sense of what you're seeing in the marketplace.

spk14: Yeah, and I think that's a great point. And candidly, prices are up. We've seen that predominantly from tower companies, especially in Europe, who are now out there also acquiring assets. That being said, the markets are quite large, so that I think there's room for everybody. Notwithstanding that as well, when we look back historically at the prices that we paid, I like to think about it as a spread to the local inflation-linked sovereign bond. And so, because interest rates have gone down, we're still sustaining roughly the same spread that we've had before, even as prices move up. And that goes to Sammy's question about macroeconomic factors. Now, that being said, we will have more increased competition with all the MNOs shedding their assets to tower companies. And I also would add, you know, I'm impressed and I was a bit surprised at how fast the shedding has occurred. I give Cellmex a lot of credit for how aggressive they've been. So that's happened, I guess, faster than we think. But our mission, of course, is to keep ahead of it and to also expand to other jurisdictions where, typically there aren't as many dominant tower companies as well, which gives us sort of a green field to acquire. Makes sense.

spk06: Final one for me, as we think about growth rates, organic growth rates, kind of same site growth rates, how should we think about the dynamics of what you guys can be producing in 21 and beyond kind of on a CAGR basis than on revenue or adjusted EBITDA?

spk14: It's a good question. If you noticed in our supplemental, around 70% of our rents are CPI linked. So that's your first base growth that you've got. I think the second thing that comes is the larger we get, the bigger the what we would call asset enhancement team that we actually put to work. And that means doing a better job of taking, whether it's our rooftops or ground and getting additional lease up. That can come from a carrier and or a tower company deciding to put a generator and they need excess space. It can come on a roof, but from another tenant as an M&O adding additional radio access network equipment. And then lastly, the thing that drives us, and I think you'll notice this as well in our deck, is lease renewal. Oftentimes when we buy sites, they are well below market. And our goal is, really to be constructive with our tenants. We just want to make sure we get paid a fair market-based rent. And if you'll notice, I forget which page it's on, I think our average lease expiration when rents, when leases expire and that we can actually enter into a lease renewal negotiation is roughly nine years longer in the US, but in Europe, substantially shorter. And so we didn't disclose the actual number, but that'll also give us, we believe, pretty good lift on rents, just targeting market rent, not trying to be more aggressive than that. Our goal remains being a passive landlord, first and foremost.

spk06: Great. Thanks, guys. Good luck as you continue that process. Appreciate it.

spk07: As a reminder to star one on your telephone keypad if you would like to ask a question. Our next question is from Walter Pyrrhic with LightJet Partners. Please proceed.

spk05: That's Pysic. How's it going? I have sympathy. It's not an easy name to pronounce. Your weighted average property life jumped up in Europe. Is that a result of renewals of a set of the assets or is that just a reflection of where the acquisition activity occurred this quarter?

spk14: I think it's the latter. It's also the fact that in some of the cases we did buy what you would call fee simple, which is effectively perpetuity or 99 years, which skews the average up, you know, and that's going to bounce around all over the place. My perspective is anything, you know, 40, 50 years, we always feel like we have an embedded option to get to 99 because if you ever wanted to go back to a landlord and say to them, Hey, I'll buy years 60 through 99, most of them won't be around and therefore they'll take the money. So that's why we don't always shoot for getting 99 right off the bat.

spk05: Got it. And then in Europe, obviously area of opportunity for you. They're pretty significant. Um, sell next their activity inquiring portfolios and, and, um, Vodafone spinning out of towers. How does that change the dynamics if at all for the opportunity that you have or the prices that you have to pay to buy additional sites?

spk14: Well, I think certainly as we come across them in a competitive situation, it'll change the price that we pay. I mean, it'll go up. Sometimes we'll win, but if they want to win and make an uneconomic offer to protect the property underneath their site, they're always going to win. That being said, it has long been our goal to establish partnerships with one or multiple tower companies because we think we can do a better job given that we're laser focused on buying property and doing it in a constructive, productive way for everybody. So, you know, stay tuned. We'll see what happens on the front.

spk05: And then coming back, again, I know Europe's a big part of the story, but coming back to the U.S., now that C-band is done, I mean, there's obviously some debate about how much densification is required. Is new cell site construction an opportunity, do you think, or is it really just going to existing assets?

spk14: Are you asking just in the U.S. only?

spk05: Just, yeah, sorry, just in the U.S.

spk14: You know, I think it always depends on a given market, as you well know. So there certainly will be places where cell site construction is going to be needed. Will it increase in terms of the percentage year to year that we see towers that have been built over time? My personal opinion, and this is just my opinion, is it'll stick to the regular trends. I'm still an enormous believer that when we think about densification and we think about the addition or the swap out of adding a massive MIMO antenna array, that as massive MIMO, I guess, equipment gets further cost reduced and further shrunk in its size and weight, it's going to become a very powerful tool, whether for coverage or capacity. Because as you know, the more antenna elements you put up, the more capacity you get, and it's rather linear. And so I'm just a very big believer in its capability, which is a long-winded way of saying that at a given site, you're going to be able to add many, many, many antennas. And even if that means augmenting a tower, that's still cheaper most of the time than building a new macro tower and or saying to yourself, I've got to get backhaul power and getting a small cell out there. Now, Richard, who's our chief operating officer, Richard Goldstein, and I debate that this till the cows come home all the time. But it's about economics.

spk12: Sorry, keep going.

spk05: I was just saying, just the last question is, I'm taking it from the prior questions that in terms of acquisition capex, obviously you had a big quarter. And if you look at the year, you know, much larger than you had in 2019, but you just don't want to give a range in terms of acquisition capex or growth capital that you would spend in a given year. Cause I think, I think what Rick was probably pressing on is when we look at this as, as what's going to continue to fuel that growth going forward, you know, getting some sense of your belief that, Hey, we're going to do, let's call it 150 million or a hundred million of acquisition capex in 2021 and that it doesn't necessarily have to be a promise that you deliver, you know, over, you know, whatever under promise over deliver, but it's, it gives us kind of more confidence that the pipeline that you have confidence in the pipeline, rather than just saying like, Hey, in a market, there's 5,000 sites that we have in 5,000 sites that are available. That's a big market opportunity. I think putting a dollar amount in terms of what you think, the amount of growth capital you can spend in a given year, it would probably be helpful in terms of understanding that, that, that market opportunity.

spk14: No, I appreciate that. I mean, I think we're really optimistic that what we achieved in 2020 can indeed be replicated. And you would imagine we always like to show a nice straight line going up until the right on a graph. So we'd like to keep growing that. The thing I would mention is prior to being public, we were capital constrained. And so we could buy what we could afford. now that we're public and have capital on our balance sheet as well as access to capital, whether in the form of debt or equity, you know, that'll freeze us up to do a lot more things, both in our existing operating markets as well as outside them. But, you know, to give you, you know, to say it, I guess, more succinctly, we feel very confident that we have the ability to replicate what we've done this year. I just hate to say I just hate to say that and get committed that that's forward guidance.

spk05: No, I understand, but that statement in and of itself was helpful, so I appreciate that, Bill. Have a great day. Sure.

spk13: Well, you're good at asking questions.

spk07: This concludes our question and answer session. I would like to turn the conference back over to Mr. Berkman for closing comments.

spk14: Thanks very much, operator, and I appreciate everybody joining today. Look forward to our next earnings call. And, of course, if anybody should have any questions, feel free to reach out to myself personally or anybody at Radius, and we're happy to talk to any and all shareholders or the like. Have a good day. Thanks very much.

spk07: Thank you. This does conclude today's conference. You may disconnect your lines at this time, and thank you for your participation. you you Bye. Thank you. Good morning and welcome to RADIUS Global Infrastructure 4th 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 instructions to join the question queue after management's comments. Today's conference is being recorded and I will now turn the call over to Jay Birnbaum, RADIUS's General Counsel. Please go ahead, sir.

spk02: Thank you, operator, and welcome everyone to the RADIUS Global Infrastructure Fourth Quarter and Full Year 2020 Earnings Call. Before we begin, I would like to remind everyone that many of the comments made today are considered forward-looking statements under federal securities laws. As described in our earnings release and filings with the SEC, These statements are subject to numerous risks and uncertainties that could cause future results to differ from those expressed. These statements speak as of today's date, and we undertake no obligation publicly to update or revise these forward-looking statements. In addition, on today's call, we may discuss certain non-GAAP financial information. You can find this information together with reconciliations to the most directly comparable GAAP financial measure in this morning's earnings release and the supplemental financial information available on our website, www.radiusglobal.com. Bill?

spk14: Thanks, Jay. Thank you and welcome everyone to RADIUS's fourth quarter and year-end 2020 earnings conference call. We hope everyone is doing well and preparing for a gradual return to a new normal. 2020 was a pivotal year for RADIUS as we completed our merger with Landscape Acquisition Holdings, re-domiciled to Delaware, and listed on the NASDAQ in the third quarter. During this time, our team remained extremely focused on growth capital deployment in acquiring and managing real property interests underlying critical communication sites, including under wireless towers, rooftops, fiber interconnection sites, data antenna system networks, and related digital infrastructure assets. In 2020, we more than doubled year-over-year acquisition spend to $221 million, When taking into consideration the cost of the origination platform, this represents a blended purchase yield of 7.2 percent. After the application of leverage, we expect these investments will produce returns in the mid-teens over their asset lives. In addition, we expect this overall growth in scale will result in a proportional decline in acquisition SG&A as we realize benefits from incremental operating scale and leverage. In coordination with our capital deployment efforts, our team has been actively exploring ways to enhance our liquidity and is continuously focused on lowering our cost of capital to support our core asset origination growth as well as other growth initiatives. The significant growth achieved in the fourth quarter and the entire year resulted in our owning, as of year end, 5,427 sites and 7,189 lease streams. These results represent 18 percent growth over sites and leases owned at the end of 2019. We deployed 118 million of new capital in the fourth quarter compared to 38 million in the fourth quarter of 2019, bringing our annual total in 2020, as I mentioned before, to 221 million, more than twice the amount deployed in 2019. Our team swiftly and successfully adapted to the wide-ranging impacts of the pandemic. The success of this underscores the effectiveness of our global origination platform. With respect to our portfolio composition and attributes, we ended the year with 56% of our sites in Europe, 26% in North America, and 18% in South America. With 59% of our annualized in-place rents represented by Europe, 26% of these rents represented by North America and 15 percent in South America. U.S. rental streams continue to be dominated by ground-under-tower assets at 73 percent, with the balance primarily representing rooftop property interests. Internationally, 52 percent of our rental streams are rents under towers and 32 percent are from rooftops. The weighted average remaining tenant term of our portfolio leases at year-end 2020 was approximately nine years. In 2020, our rents enjoyed 4.9 percent of a contractual escalator and organic growth, offset by 1.1 percent in churn for net growth of 3.8 percent. This combination of long-term revenue visibility, attractive annual growth, and low annual churn reinforces for us the desirability of the digital infrastructure asset class. We are enthusiastic about our growth prospects in 2021, Our global pipeline remains extremely active, and we are diligently working to pursue accretive opportunities for our shareholders. The massive annual global investment in digital infrastructure continues to produce tailwinds that propels our business model, both in our existing operations and new jurisdictions. We look forward to sharing our ongoing process. Now, Glenn Reisinger, our CFO, will discuss our financial results in more detail.

spk04: Glenn? Thanks, Bill. We are pleased with our fourth quarter performance, which capped a year of strong growth. Fourth quarter revenues were 20.1 million, which was up 36% compared to the prior year quarter, and gross profit was 19.9 million, up 37% over the prior year. In terms of asset growth, during the fourth quarter, we deployed 118 million of new capital. compared to $38 million during the prior year fourth quarter, a 210% increase. This origination activity represented $9.5 million in rents across 286 lease streams. This brought our full-year deployment to $220.8 million, up 123% from the comparable prior year period. Our strong performance, both in the quarter and for the full year, demonstrates the value of the origination platform that we have developed over the past 10 years. We have posted our earnings release, our 10K, and a supplemental financial reporting package on our website to provide additional details and assist you with the analysis of the company. As you review our results, keep in mind that in a prior year period, AP Wireless had not yet been acquired, so our year-to-date financial statements for 2020 commenced with the completion of our acquisition of AP Wireless on February 10, 2020. We have provided our results for three time periods to assist you in billing comparable periods for the full year. Please refer to our supplemental reporting package for a pro forma 12-month presentation on our relative key performance metrics. Turning to our full year results, the company delivered $69.8 million in combined revenues, representing a 25% increase over the prior year period. Reflecting the growth in our rental streams from both our in-place portfolio escalators, other revenue enhancements, and acquired rental streams, our annualized base rents at year-end increased 35% to $84.1 million from $62.1 million the year before. Our gross profit increased 25% year-over-year to $69.1 million as compared to $55.4 million a year ago, in line with our revenue growth. Our growth was fueled by $256.1 million of net growth spend for the full year, of which $35.4 million was for selling, marketing, underwriting, and related costs to acquire assets producing annualized in-place rents of $18.5 million. As Bill mentioned, these rent streams produce a year-one fully burdened, unlevered yield of 7.2%. I would like to note that our origination SG&A as a multiple of one rent acquired decreased by a full multiple turn from approximately three times in 2019 to approximately two times in 2020. We anticipate that as radius continues to grow and originate assets, operational SG&A should decrease on a proportional basis over time. With respect to our balance sheet and liquidity, at year end, we had total gross debt outstanding of $735.4 million and net debt of $577.5 million with aggregate cash of $215.4 million. This debt is 100% institutional, fixed rate at a weighted average cash coupon of 4.3%, and interest only until maturity. The weighted average term is seven years and we presently have no material refinancing due prior to 2023. Subsequent to year end, we added debt of approximately 77 million Euro representing 94 million of USD equivalents in February 2021 with the issuance of eight year fixed and floating rate interest only secured junior notes under one of our existing debt facilities. This debt carries a 3.9% coupon for cash pay and 1.75% of interest paid in kind. This allows us to continue to enhance our liquidity and lower our cost of capital to support our growth initiatives. I'd now like to turn the call back over to Bill.