Radius Global Infrastructure, Inc.

Greetings and welcome to Radius Global Infrastructure fourth quarter 2021 results conference call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. Anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. And I'd like to turn the conference over to your host, Jason Harbs, Head of Investor Relations. Please go ahead, sir.

Thank you, Operator, and welcome everyone to the RADIUS Global Infrastructure Fourth Quarter 2021 Earnings Call. On this morning's call, Bill Berkman, our CEO and co-chairman, will provide an overview of our fourth quarter and fiscal year 2021 results, followed by a more detailed update from Glenn Breisinger, our Chief Financial Officer. After these comments, we will open up the call for your questions. 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. at www.radiusglobal.com. And now I'd like to turn the call over to Bill. Thanks, Jason.

Thank you all for joining us today for our fourth quarter 2021 earnings conference call. I am pleased to report that our strong growth continued in the fourth quarter, and we achieved several noteworthy highlights. On October 5th, we commemorated our first anniversary as a publicly listed U.S. company. We now own over 8,100 lease streams on over 6,200 digital infrastructure sites in over 20 countries with an average property right term of approximately 60 years as of the end of 2021. During the fourth quarter, we increased revenue by 44% year-over-year to a record $29 million. We also deployed approximately $114 million of acquisition capex continuing the trend of accelerated capital deployment that began in the fourth quarter of 2020. This capital investment resulted in the acquisition of $8 million in additional annualized rent in Q4, increasing our total year-end 2021 annualized in-place rents to a run rate of $118 million, a year-over-year increase of 40% for our diversified portfolio of high-quality, primarily triple-net and inflation-protected cash flow streams underlying our wireless and other communications and digital infrastructure-related sites. Since the inception of Radius's AP Wireless subsidiary in 2010, we have increased the pace of annual investment of acquisition CapEx by 45 percent annualized which has allowed us to grow the portfolio of annualized in-place rents by 54% annualized through the end of 2021. As we have shared with you previously, we're continuing to broaden the scope of properties we seek to acquire to a wider pool of digital infrastructure and related assets with similar attributes to real properties we presently own underlying wireless towers and rooftop cell sites to include rents generated from indoor wireless distributed antenna systems, or what's referred to as DAS, and fiber aggregation points. In addition, we are always seeking to identify other similarly situated potential assets to further widen our total addressable market of acquisition opportunities. The digital infrastructure assets that we seek to acquire are predominantly long-duration triple net rental streams where our primary tenants are the world's largest mobile network operators and other types of communication infrastructure companies, including tower companies. These rental streams underlie strategically located properties and sites, which are difficult and expensive to move or replicate and that are essential to the delivery of their network services that all of us depend upon and would struggle to live without. Including the capital raised from our January 2022 debt issuance, our financing activities for the year produced $1.2 billion, and today we have approximately $880 million in cash and cash equivalents on our balance sheet. The vast majority of this cash is available to deploy for additional acquisitions that meet our disciplined underwriting criteria, where we target attractive risk-adjusted levered returns for our shareholders. In addition, I would also like to point out that we reduced our weighted average cash cost of debt from a fixed rate of 4.02% to 3.5%. Note that all of our outstanding debt is fixed rate or capped, which we believe adds a level of protection to the company from the impact of higher interest rates. With regard to the 2022 pace of originations, We remain optimistic about our ability to continue acquiring assets that I have described earlier for at least the next several quarters based on our current pipeline of acquisition opportunities. As mentioned on our last earnings call, we continue to target the deployment of 400 million plus of acquisition capital expenditures for 2022. This continues our pacing of approximately 100 million of capital to be deployed per quarter that we have accomplished and reported for the past five quarters. I would emphasize that this is an average, and there may exist some variability of the actual dollar amount of asset acquisitions in any one quarter, resulting from the timing of closing of larger transactions. In June, our stock was added to the Russell 2000 and the Russell 3000 indices. Since then, we have expanded our equity research analyst coverage by 50%, We believe these developments, combined with the cash settlement of all of our outstanding warrants over a year before their scheduled expiration date, has raised our visibility in the investment community and enhanced the liquidity of our stock, which in turn should help us to attract additional shareholders who believe in our long-term value creation strategy through disciplined capital deployment in digital infrastructure assets. To sum up, I'm extremely proud of what we've achieved in 2021, thanks to the dedication of our more than 300 team members globally. We invested nearly half a billion dollars to acquire nearly 1,000 lead streams from communication and digital infrastructure sites around the world, which we continue to strongly believe will help us achieve greater economies of scale across our portfolio as we seek to generate attractive long-term returns for our shareholders. As many of you know, most of the senior management team has worked together for over 30 years. Wow. We believe our decades of experience building, operating, and investing in communications infrastructure, along with the team and proprietary databases we have built over the past decade, is an important source of our competitive advantage. As we survey the enormous addressable market of over a million sites just in our current markets, Combined with our expectation to continue to expand to new markets, we believe we've only scratched the surface of the digital infrastructure and related real property aggregation opportunities. Lastly, as a reminder, insiders own over 20% of the equity of the company, and the management team is incentivized to create shareholder value over the long term. Against the backdrop of the unfolding multi-year global 5G investment cycle, and the increasing criticality of communications infrastructure in this digital age. We believe these and other factors will continue to enhance the strategic value of our rapidly growing portfolio. Glenn Breisinger, our CFO and a member of our club of 30-year team members, will now provide an overview of our current holdings and financial results in more detail. Glenn?