Radius Global Infrastructure, Inc.

Greetings and welcome to Radius Global Infrastructure 3rd Quarter 2022 Results Conference Call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during a conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jason Harbs, Head of Investor Relations. Thank you. You may begin.

Thank you, Operator, and welcome everyone to the RADIUS Global Infrastructure Third Quarter 2022 Earnings Call. In a moment, Bill Berkman, our CEO and co-chairman, will provide an overview of our Third Quarter 2022 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 yesterday's earnings release and the supplemental financial information available on our website at www.radiusglobal.com.

Bill? Thanks, Jason. Thank you all for joining us today for our third quarter 2022 earnings conference call. Even amidst the current global economic and political environment, I am pleased to report the continued resiliency and stability of our business as we continue to deliver what we believe to be attractive risk adjusted returns. This is evidenced by strong growth in the third quarter where our assets generated record quarterly gap revenue of $35.3 million up 29% year-over-year, which is net of the impact of recent volatile foreign exchange rates. We now own over 8,800 leak streams on over 6,700 digital infrastructure sites in over 20 countries. Our large, well-diversified portfolio of high-quality triple net rents underlying mission-critical digital infrastructure assets enjoy the benefit of predominantly uncapped inflation-adjusted escalators and this quarter's results show continued growth from these valuable lease provisions. As you will hear shortly, our rent portfolio had net organic annualized growth of approximately 4.3% in the third quarter, which includes both inflation escalators and other organic growth, up from 3.7% in the second quarter, and up from 2.7% in the third quarter of 2021. As noted in our supplemental disclosures, as of the end of September, Approximately 76% of our portfolio escalates annually, 5% escalates every three years, and 17% escalates every five years. The rate of growth from escalators on our existing rents grew 4.8% in the quarter, and we expect the rate of growth to continue as inflation-based escalators continue to phase in. We would like to again note that we have quarterly variability in the amount of capital deployed. During this quarter, we invested approximately 70 million to acquire 5 million in additional annualized rent, increasing our total annualized in-place rents to a run rate of approximately 134 million, representing a 21% year-over-year increase. On a constant currency basis, using exchange rates as of the third quarter of 2021, our portfolio would have grown 38% to approximately 152 million. The difference between what we reported and what we would have reported on a constant currency basis is attributable to the US dollar appreciation during the past year, most notably against euros and British pounds, which depreciated by 15% and 17% respectively. Please note that our levered rents significantly mute FX impacts because we borrow and collect rent and deploy capital locally, all of which acts as a natural hedge. Our total acquisition CapEx of $324 million for the first three quarters of 2022 keeps us on a trajectory to exceed our original guidance where we expect to deploy $400 million plus of acquisition CapEx for the current calendar year. Our pace of acquisition CapEx has also been impacted by strengthening U.S. dollar. On a constant currency basis, we would have deployed $378 million in the first three quarters as compared to the $324 million we did deploy. The difference between what we reported and what we would have reported on a constant currency basis is again due to U.S. dollar appreciation during the past year, again most notably to the Euro since the majority of the rents we've acquired this year have been denominated in Euros. Please note that we have benefited from the ability to buy international assets at a lower price when we have deployed cash held in U.S. dollars due to the strengthening of the U.S. dollar against other currencies. After making these investments, we now have nearly $500 million on the balance sheet available for incremental value accretive acquisitions raised from previously drawn debt facilities that are 100% fixed rate or cap with a blended cash coupon of approximately 3.6% interest only with our first maturity of $75 million out of $1.5 billion of debt due in 2024. I'm extremely proud of our global team for continuing to produce strong results and meeting our high underwriting standards and target returns, especially in this macroeconomic environment. With the pace of capital investment into global digital infrastructure supporting communication networks and data storage, data processing, and data delivery continuing to grow to keep up with demand, our addressable market of potential acquisition continues to grow, and our range of asset types continues to broaden. which of course provides our team of originators with a total addressable market of one million plus potential properties to acquire in the current jurisdictions where we presently operate, where most of these addressable assets continue to be owned by a highly fragmented set of landlords. We are highly mindful of recent volatility in the macroeconomic environment, and capital allocation is always a key area for us, which we are always seeking to optimize real time. In addition to constantly reviewing our underwriting criteria, we are updating targeted on levered returns to factory and local jurisdictions market conditions against the backdrop of future financing costs with the objective of deploying capital to achieve the best long-term risk-adjusted return. A couple of other updates. In the past, our treasury function has delivered nominal interest income. With recent interest rate increases, we expect to generate more attractive near-term interest income on our cash on hand until it is deployed into higher return opportunities. We are also reviewing our SG&A cost structure to identify potential areas of cost reduction and greater financial and operational efficiencies. Lastly, we are also testing new structured finance offers to digital infrastructure property owners to optimize our returns. Glenn Breisinger, our CFO, will now provide an overview of our current holdings and financial results in more detail. Glenn?