EL SEGUNDO, Calif., Nov. 05, 2021 (GLOBE NEWSWIRE) -- Landmark Infrastructure Partners LP (“Landmark,” the “Partnership,” “we,” “us” or “our”) (Nasdaq: LMRK) today announced its third quarter financial results.

Highlights

  • Rental revenue of $17.4 million, a 22% increase year-over-year;
  • Net loss attributable to common unitholders of $0.04 and Funds From Operations (FFO) of $0.19 per diluted unit;
  • Adjusted Funds From Operations (AFFO) of $0.37 per diluted unit, a 19% increase year-over-year;
  • On August 21st, the Partnership entered into a definitive agreement under which it will be acquired by its sponsor, Landmark Dividend LLC, with public unitholders receiving $16.50 in cash for each common unit owned;
  • On October 13th, the Partnership issued $172.5 million of secured notes at a rate of 3.722%;
  • As of September 30th, 269 digital kiosks deployed within the Dallas Area Rapid Transit (“DART”) network; and
  • A quarterly distribution of $0.20 per common unit.

Third Quarter 2021 Results
Rental revenue for the quarter ended September 30, 2021 was $17.4 million, an increase of 22% compared to the third quarter of 2020. Net loss attributable to common unitholders per diluted unit in the third quarter of 2021 was $0.04, compared to net income attributable to common unitholders per diluted unit of $0.10 in the third quarter of 2020. FFO for the third quarter of 2021 was $0.19 per diluted unit, compared to $0.29 in the third quarter of 2020. The decline in FFO in the third quarter of 2021 compared to the third quarter of 2020 was primarily driven by costs associated with the LMRK take-private transaction, which are included in transaction-related expenses. AFFO per diluted unit, which excludes certain items including unrealized gains and losses on our interest rate hedges, foreign currency transaction gains and losses and transaction-related expenses, was $0.37 in the third quarter of 2021 compared to $0.31 in the third quarter of 2020.

For the nine months ended September 30, 2021, the Partnership reported rental revenue of $52.3 million compared to $41.9 million during the nine months ended September 30, 2020. For the nine months ended September 30, 2021, we generated net income of $13.6 million compared to $22.9 million during the nine months ended September 30, 2020. Net income attributable to common unitholders for the nine months ended September 30, 2021 was $0.16 per diluted unit compared to $0.53 per diluted unit for the nine months ended September 30, 2020. For the nine months ended September 30, 2021, we generated FFO of $0.90 per diluted unit and AFFO of $1.11 per diluted unit, compared to FFO of $0.49 per diluted unit and AFFO of $0.98 per diluted unit during the nine months ended September 30, 2020.

“Our operating and financial results were solid again in the third quarter,” said Tim Brazy, Chief Executive Officer of the Partnership’s general partner. “Strong year-over-year growth in AFFO was driven by organic growth within our portfolio and the opportunistic acquisitions we completed in the second half of 2020.”

Quarterly Distributions
On October 22, 2021, the Board of Directors of the Partnership’s general partner declared a distribution of $0.20 per common unit, or $0.80 per common unit on an annualized basis, for the quarter ended September 30, 2021. The distribution is payable on November 12, 2021 to common unitholders of record as of November 2, 2021.

On October 21, 2021, the Board of Directors of the Partnership’s general partner declared a quarterly cash distribution of $0.4375 per Series C preferred unit, which is payable on November 15, 2021 to Series C preferred unitholders of record as of November 1, 2021.

On October 21, 2021, the Board of Directors of the Partnership’s general partner declared a quarterly cash distribution of $0.49375 per Series B preferred unit, which is payable on November 15, 2021 to Series B preferred unitholders of record as of November 1, 2021.

On September 20, 2021, the Board of Directors of the Partnership’s general partner declared a quarterly cash distribution of $0.5000 per Series A preferred unit, which was paid on October 15, 2021 to Series A preferred unitholders of record as of October 1, 2021.

Capital and Liquidity
As of September 30, 2021, the Partnership had $223.2 million of outstanding borrowings under its revolving credit facility (the “Facility”), and approximately $226.8 million of undrawn borrowing capacity under the Facility, subject to compliance with certain covenants.

Recent Acquisitions
Year-to-date through September 30, 2021, the Partnership acquired a total of ten assets for total consideration of approximately $2.2 million.

General and Administrative Reimbursement Agreement Expiration
Under the second amendment to our Omnibus Agreement, dated as of January 30, 2019, among other things, the Partnership is required to reimburse our general partner and its affiliates for expenses related to certain general and administrative services that our sponsor provides to us in support of our business, subject to a quarterly cap of 3% of the Partnership’s consolidated revenue during the current calendar quarter. The cap on expense reimbursement will last until the earlier of: (i) the date on which the Partnership’s consolidated revenue for the immediately preceding four consecutive fiscal quarters (in the aggregate) exceeds $120,000,000 and (ii) November 19, 2021. Our sponsor has informed us that it intends to let the cap expire on November 19, 2021 and will seek reimbursement for costs and expenses it incurs for services provided to the Partnership.

Conference Call Information
The Partnership will hold a conference call on Friday, November 5, 2021, at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time) to discuss its third quarter 2021 financial and operating results. The conference call will be limited to management’s prepared remarks, with no question-and-answer session following the remarks, and can be accessed via a live webcast at https://edge.media-server.com/mmc/p/onuxi68q, or by dialing 877-930-8063 in the U.S. and Canada. Investors outside of the U.S. and Canada should dial 253-336-7764. The passcode for both numbers is 1849998.

A webcast replay will be available approximately two hours after the completion of the conference call through November 5, 2022 at https://edge.media-server.com/mmc/p/onuxi68q. The replay is also available through November 14, 2021 by dialing 855-859-2056 or 404-537-3406 and entering the access code 1849998.

About Landmark Infrastructure Partners LP
The Partnership owns and manages a portfolio of real property interests and infrastructure assets that the Partnership leases to companies in the wireless communication, digital infrastructure, outdoor advertising and renewable power generation industries.

Non-GAAP Financial Measures
FFO, is a non-GAAP financial measure of operating performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. We calculate FFO in accordance with the standards established by the National Association of Real Estate Investment Trust (“NAREIT”). FFO represents net income (loss) excluding real estate related depreciation and amortization expense, real estate related impairment charges, gains (or losses) on real estate transactions, adjustments for unconsolidated joint venture, and distributions to preferred unitholders and noncontrolling interests.

FFO is generally considered by industry analysts to be the most appropriate measure of performance of real estate companies. FFO does not necessarily represent cash provided by operating activities in accordance with GAAP and should not be considered an alternative to net earnings as an indication of the Partnership's performance or to cash flow as a measure of liquidity or ability to make distributions. Management considers FFO an appropriate measure of performance of an equity REIT because it primarily excludes the assumption that the value of the real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure. The Partnership's computation of FFO may differ from the methodology for calculating FFO used by other equity REITs, and therefore, may not be comparable to such other REITs.

Adjusted Funds from Operations (“AFFO”) is a non-GAAP financial measure of operating performance used by many companies in the REIT industry. AFFO adjusts FFO for certain non-cash items that reduce or increase net income in accordance with GAAP. AFFO should not be considered an alternative to net earnings, as an indication of the Partnership’s performance or to cash flow as a measure of liquidity or ability to make distributions. Management considers AFFO a useful supplemental measure of the Partnership's performance. The Partnership’s computation of AFFO may differ from the methodology for calculating AFFO used by other equity REITs, and therefore, may not be comparable to such other REITs. We calculate AFFO by starting with FFO and adjusting for general and administrative expense reimbursement, transaction-related expenses, unrealized gain (loss) on derivatives, straight line rent adjustments, unit-based compensation, amortization of deferred loan costs and discount on secured notes, deferred income tax expense, amortization of above and below market rents, loss on early extinguishment of debt, repayments of receivables, adjustments for investment in unconsolidated joint venture, adjustments for drop-down assets and foreign currency transaction gain (loss). The GAAP measures most directly comparable to FFO and AFFO is net income.

We define EBITDA as net income before interest expense, income taxes, depreciation and amortization, and we define Adjusted EBITDA as EBITDA before unrealized and realized gain or loss on derivatives, loss on early extinguishment of debt, gain or loss on sale of real property interests, straight line rent adjustments, amortization of above and below market rents, impairments, transaction-related expenses, unit-based compensation, repayments of investments in receivables, foreign currency transaction gain (loss), adjustments for investment in unconsolidated joint venture and the capital contribution to fund our general and administrative expense reimbursement. We believe that to understand our performance further, EBITDA and Adjusted EBITDA should be compared with our reported net income (loss) and net cash provided by operating activities in accordance with GAAP, as presented in our consolidated financial statements.

EBITDA and Adjusted EBITDA are non-GAAP supplemental financial measures that management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:

  • our operating performance as compared to other publicly traded limited partnerships, without regard to historical cost basis or, in the case of Adjusted EBITDA, financing methods;
  • the ability of our business to generate sufficient cash to support our decision to make distributions to our unitholders;
  • our ability to incur and service debt and fund capital expenditures; and
  • the viability of acquisitions and the returns on investment of various investment opportunities.

We believe that the presentation of EBITDA and Adjusted EBITDA provides information useful to investors in assessing our financial condition and results of operations. The GAAP measures most directly comparable to EBITDA and Adjusted EBITDA are net income (loss) and net cash provided by operating activities. EBITDA and Adjusted EBITDA should not be considered as an alternative to GAAP net income (loss), net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Each of EBITDA and Adjusted EBITDA has important limitations as analytical tools because they exclude some, but not all, items that affect net income (loss) and net cash provided by operating activities, and these measures may vary from those of other companies. You should not consider EBITDA and Adjusted EBITDA in isolation or as a substitute for analysis of our results as reported under GAAP. As a result, because EBITDA and Adjusted EBITDA may be defined differently by other companies in our industry, EBITDA and Adjusted EBITDA as presented below may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. For a reconciliation of EBITDA and Adjusted EBITDA to the most comparable financial measures calculated and presented in accordance with GAAP, please see the “Reconciliation of EBITDA and Adjusted EBITDA” table below.

Forward-Looking Statements
This release contains forward-looking statements within the meaning of federal securities laws. These statements discuss future expectations, contain projections of results of operations or of financial condition or state other forward-looking information. You can identify forward-looking statements by words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “project,” “could,” “may,” “should,” “would,” “will” or other similar expressions that convey the uncertainty of future events or outcomes. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the Partnership’s control and are difficult to predict. These statements are often based upon various assumptions, many of which are based, in turn, upon further assumptions, including examination of historical operating trends made by the management of the Partnership. Although the Partnership believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies, which are difficult or impossible to predict and are beyond its control, the Partnership cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements contained in the Partnership’s filings with the U.S. Securities and Exchange Commission (the “Commission”), including the Partnership’s annual report on Form 10-K for the year ended December 31, 2020 and Current Report on Form 8-K filed with the Commission on February 24, 2021. These risks could cause the Partnership’s actual results to differ materially from those contained in any forward-looking statement.

CONTACT:Marcelo Choi
 Vice President, Investor Relations
 (213) 788-4528
 ir@landmarkmlp.com

Landmark Infrastructure Partners LP
Consolidated Statements of Operations
In thousands, except per unit data
(Unaudited)

  Three Months Ended September 30,  Nine Months Ended September 30, 
  2021  2020  2021  2020 
Revenue                
Rental revenue $17,405  $14,228  $52,259  $41,893 
Expenses                
Property operating  1,188   360   2,966   1,223 
General and administrative  1,483   768   3,915   3,479 
Transaction-related  3,295      3,421   91 
Depreciation and amortization  5,079   3,808   14,871   11,711 
Impairments  8   16   35   200 
Total expenses  11,053   4,952   25,208   16,704 
Other income and expenses                
Interest and other income  102   46   331   317 
Interest expense  (4,962)  (4,068)  (14,830)  (12,759)
Loss on early extinguishment of debt           (2,231)
Unrealized gain (loss) on derivatives  194   154   1,511   (6,530)
Equity income (loss) from unconsolidated joint venture  329   248   (761)  1,085 
Gain on sale of real property interests  79      189    
Total other income and expenses  (4,258)  (3,620)  (13,560)  (20,118)
Income from continuing operations before income tax benefit  2,094   5,656   13,491   5,071 
Income tax benefit  (80)  (173)  (80)  (508)
Income from continuing operations  2,174   5,829   13,571   5,579 
Income (loss) from discontinued operations, net of tax     (171)     17,340 
Net income  2,174   5,658   13,571   22,919 
Less: Net income attributable to noncontrolling interests  8   8   24   24 
Net income attributable to limited partners  2,166   5,650   13,547   22,895 
Less: Distributions to preferred unitholders  (3,060)  (3,055)  (9,180)  (9,152)
Less: Accretion of Series C preferred units  (96)  (96)  (286)  (289)
Net (loss) income attributable to common unitholders $(990) $2,499  $4,081  $13,454 
Income (loss) from continuing operations per common unit                
Common units – basic $(0.04) $0.10  $0.16  $(0.15)
Common units – diluted $(0.04) $0.10  $0.16  $(0.15)
Net income (loss) per common unit                
Common units – basic $(0.04) $0.10  $0.16  $0.53 
Common units – diluted $(0.04) $0.10  $0.16  $0.53 
Weighted average common units outstanding                
Common units – basic  25,489   25,478   25,489   25,472 
Common units – diluted  25,489   25,478   25,489   25,472 
Other Data                
Total leased tenant sites (end of period)  2,028   1,841   2,028   1,841 
Total available tenant sites (end of period)  2,136   1,952   2,136   1,952 
                 

Landmark Infrastructure Partners LP
Consolidated Balance Sheets
In thousands, except per unit data
(Unaudited)

  September 30, 2021  December 31, 2020 
Assets        
Land $117,556  $117,421 
Real property interests  689,295   671,468 
Construction in progress  40,043   44,787 
Total land and real property interests  846,894   833,676 
Accumulated depreciation and amortization of real property interests  (76,744)  (63,474)
Land and net real property interests  770,150   770,202 
Investments in receivables, net  4,669   5,101 
Investment in unconsolidated joint venture  58,456   60,880 
Cash and cash equivalents  11,003   10,447 
Restricted cash  3,360   3,195 
Rent receivables  3,799   4,016 
Due from Landmark and affiliates  1,843   1,337 
Deferred loan costs, net  2,711   3,567 
Deferred rent receivable  2,691   1,818 
Derivative assets  345    
Other intangible assets, net  17,718   19,417 
Right-of-use asset, net  10,232   10,716 
Other assets  4,176   4,082 
Total assets $891,153  $894,778 
Liabilities and equity        
Revolving credit facility $223,200  $214,200 
Secured notes, net  275,845   279,677 
Accounts payable and accrued liabilities  7,984   6,732 
Other intangible liabilities, net  5,054   6,081 
Operating lease liability  8,563   8,818 
Finance lease liability  70    
Prepaid rent  6,266   4,446 
Derivative liabilities  2,269   3,435 
Total liabilities  529,251   523,389 
Commitments and contingencies        
Mezzanine equity        
Series C cumulative redeemable convertible preferred units, 1,982,700
units issued and outstanding at September 30, 2021 and December 31, 2020, respectively
  48,188   47,902 
Equity        
Series A cumulative redeemable preferred units, 1,788,843 units
issued and outstanding at September 30, 2021 and December 31, 2020, respectively
  41,850   41,850 
Series B cumulative redeemable preferred units 2,628,932 units
issued and outstanding at September 30, 2021 and December 31, 2020, respectively
  63,014   63,014 
Common units, 25,488,992 and 25,478,042 units issued and outstanding at
September 30, 2021 and December 31, 2020, respectively
  365,108   376,201 
General Partner  (156,573)  (159,070)
Accumulated other comprehensive income  114   1,291 
Total limited partners' equity  313,513   323,286 
Noncontrolling interests  201   201 
Total equity  313,714   323,487 
Total liabilities, mezzanine equity and equity $891,153  $894,778 
         

Landmark Infrastructure Partners LP
Real Property Interest Table

      Available Tenant Sites (1)  Leased Tenant Sites                 
Real Property Interest Number of
Infrastructure
Locations (1)
  Number  Average
Remaining
Property
Interest
(Years)
  Number  Average
Remaining
Lease
Term
(Years) (2)
  Tenant Site
Occupancy
Rate (3)
  Average
Monthly
Effective
Rent
Per Tenant
Site (4)(5)
  Quarterly
Rental
Revenue (6)
(In thousands)
  Percentage
of Quarterly
Rental
Revenue (6)
 
Tenant Lease Assignment with Underlying Easement                                    
Wireless Communication  693   896   75.4 (7) 843   34.1          $5,353   31%
Digital Infrastructure  1   1   99.0 (7) 1   7.9           450   3%
Outdoor Advertising  567   887   79.9 (7) 860   15.0           3,348   19%
Renewable Power Generation  15   47   28.4 (7) 47   33.1           372   2%
Subtotal  1,276   1,831   72.6 (7) 1,751   26.0          $9,523   55%
Tenant Lease Assignment only (8)                                    
Wireless Communication  116   176   44.6   152   15.8          $1,055   6%
Outdoor Advertising  33   36   60.6   34   11.8           229   1%
Renewable Power Generation  6   6   45.8   6   23.7           58   %
Subtotal  155   218   47.3   192   15.3          $1,342   7%
Tenant Lease on Fee Simple                                    
Wireless Communication  18   29   99.0 (7) 27   25.8          $222   1%
Digital Infrastructure  13   13   99.0 (7) 13   23.6           4,454   25%
Outdoor Advertising  26   28   99.0 (7) 28   5.9           243   2%
Renewable Power Generation  14   17   99.0 (7) 17   27.7           1,621   10%
Subtotal  71   87   99.0 (7) 85   19.6          $6,540   38%
Total  1,502   2,136   68.1 (9) 2,028   24.5          $17,405   100%
Aggregate Portfolio                                    
Wireless Communication  827   1,101   66.1   1,022   31.1   93% $2,080  $6,630   38%
Digital Infrastructure  14   14   99.0   14   22.5   100%  116,439   4,904   28%
Outdoor Advertising  626   951   71.4   922   14.5   97%  1,954   3,820   22%
Renewable Power Generation  35   70   34.5   70   29.4   100%  9,767   2,051   12%
Total  1,502   2,136   68.1 (9) 2,028   24.5   95% $3,250  $17,405   100%
                                     

____________________

(1)“Available Tenant Sites” means the number of individual sites that could be leased. For example, if we have an easement on a single rooftop, on which three different tenants can lease space from us, this would be counted as three “tenant sites,” and all three tenant sites would be at a single infrastructure location with the same address.
(2)Assumes the exercise of all remaining renewal options of tenant leases. Assuming no exercise of renewal options, the average remaining lease terms for our wireless communication, digital infrastructure, outdoor advertising, renewable power generation and total portfolio as of September 30, 2021 were 2.2, 8.6, 6.5, 16.1 and 4.2 years, respectively.
(3)Represents the number of leased tenant sites divided by the number of available tenant sites.
(4)Occupancy and average monthly effective rent per tenant site are shown only on an aggregate portfolio basis by industry.
(5) Represents total monthly revenue excluding the impact of amortization of above and below market lease intangibles divided by the number of leased tenant sites.
(6)Represents GAAP rental revenue recognized under existing tenant leases for the three months ended September 30, 2021. Excludes interest income on receivables.
(7)Fee simple ownership and perpetual easements are shown as having a term of 99 years for purposes of calculating the average remaining term.
(8)Reflects “springing lease agreements” whereby the cancellation or nonrenewal of a tenant lease entitles us to enter into a new ground lease with the property owner (up to the full property interest term) and a replacement tenant lease. The remaining lease assignment term is, therefore, equal to or longer than the remaining lease term. Also represents properties for which the “springing lease” feature has been exercised and has been replaced by a lease for the remaining lease term.
(9)Excluding perpetual ownership rights, the average remaining property interest term on our tenant sites is approximately 58 years.
  

 Landmark Infrastructure Partners LP
Reconciliation of Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO)
In thousands, except per unit data
(Unaudited)

  Three Months Ended September 30,  Nine Months Ended September 30, 
  2021  2020 (1)  2021  2020 (1) 
Net income $2,174  $5,658  $13,571  $22,919 
Adjustments:                
Depreciation and amortization expense  5,079   3,808   14,871   12,247 
Impairments  8   16   35   200 
(Gain) loss on sale of real property interests, net of income taxes  (79)  215   (189)  (15,508)
Adjustments for investment in unconsolidated joint venture  705   742   3,730   1,825 
Distributions to preferred unitholders  (3,060)  (3,055)  (9,180)  (9,152)
Distributions to noncontrolling interests  (8)  (8)  (24)  (24)
FFO attributable to common unitholders $4,819  $7,376  $22,814  $12,507 
Adjustments:                
General and administrative expense reimbursement (2)  1,050   425   2,497   2,455 
Transaction-related expenses  3,295      3,421   432 
Unrealized (gain) loss on derivatives  (194)  (154)  (1,511)  8,329 
Straight line rent adjustments  (192)  7   (614)  384 
Unit-based compensation        120   120 
Amortization of deferred loan costs and discount on secured notes  659   640   1,907   1,845 
Amortization of above- and below-market rents, net  (238)  (245)  (708)  (726)
Deferred income tax benefit  (31)  (152)  (122)  (460)
Loss on early extinguishment of debt           2,231 
Repayments of receivables  181   152   432   395 
Adjustments for investment in unconsolidated joint venture  47   26   127   103 
Foreign currency transaction gain     (86)     (2,721)
AFFO attributable to common unitholders $9,396  $7,989  $28,363  $24,894 
                 
FFO per common unit - diluted $0.19  $0.29  $0.90  $0.49 
AFFO per common unit - diluted $0.37  $0.31  $1.11  $0.98 
Weighted average common units outstanding - diluted  25,489   25,478   25,489   25,472 

____________________

(1)Amounts include the effects that are reported in discontinued operations.
(2)Under the omnibus agreement with Landmark, we agreed to reimburse Landmark for expenses related to certain general and administrative services that Landmark will provide to us in support of our business, subject to a quarterly cap equal to 3% of our revenue during the current calendar quarter. This cap on expenses will last until the earlier to occur of: (i) the date on which our revenue for the immediately preceding four consecutive fiscal quarters exceeds $120 million and (ii) November 19, 2021. The full amount of general and administrative expenses incurred will be reflected in our income statements, and to the extent such general and administrative expenses exceed the cap amount, the amount of such excess will be reimbursed by Landmark and reflected in our financial statements as a capital contribution from Landmark rather than as a reduction of our general and administrative expenses, except for expenses that would otherwise be allocated to us, which are not included in our general and administrative expenses.
  

Landmark Infrastructure Partners LP
Reconciliation of EBITDA and Adjusted EBITDA
In thousands
(Unaudited)

  Three Months Ended September 30,  Nine Months Ended September 30, 
  2021  2020 (1)  2021  2020 (1) 
Reconciliation of EBITDA and Adjusted EBITDA to Net Income                
Net income $2,174  $5,658  $13,571  $22,919 
Interest expense  4,962   4,068   14,830   13,400 
Depreciation and amortization expense  5,079   3,808   14,871   12,247 
Income tax expense  (80)  (131)  (80)  (28)
EBITDA $12,135  $13,403  $43,192  $48,538 
Impairments  8   16   35   200 
Transaction-related  3,295      3,421   432 
Unrealized (gain) loss on derivatives  (194)  (154)  (1,511)  8,329 
Loss on early extinguishment of debt           2,231 
(Gain) loss on sale of real property interests  (79)  215   (189)  (15,508)
Unit-based compensation        120   120 
Straight line rent adjustments  (192)  7   (614)  384 
Amortization of above- and below-market rents, net  (238)  (245)  (708)  (726)
Repayments of investments in receivables  181   152   432   395 
Adjustments for investment in unconsolidated joint venture  1,397   1,430   5,801   3,920 
Foreign currency transaction gain     (86)     (2,721)
Deemed capital contribution to fund general and administrative expense reimbursement(2)  1,050   425   2,497   2,455 
Adjusted EBITDA $17,363  $15,163  $52,476  $48,049 
Reconciliation of EBITDA and Adjusted EBITDA to Net Cash Provided by
Operating Activities
                
Net cash provided by operating activities $11,365  $11,886  $34,701  $31,982 
Unit-based compensation        (120)  (120)
Unrealized gain (loss) on derivatives  194   154   1,511   (8,329)
Loss on early extinguishment of debt           (2,231)
Depreciation and amortization expense  (5,079)  (3,808)  (14,871)  (12,247)
Amortization of above- and below-market rents, net  238   245   708   726 
Amortization of deferred loan costs and discount on secured notes  (659)  (640)  (1,907)  (1,845)
Impairments  (8)  (16)  (35)  (200)
Gain (loss) on sale of real property interests  79   (215)  189   15,508 
Adjustment for uncollectible accounts     (45)     (195)
Equity income (loss) from unconsolidated joint venture  329   248   (761)  1,085 
Distributions of earnings from unconsolidated joint venture  (1,184)  (726)  (1,663)  (1,651)
Foreign currency transaction gain     86      2,721 
Working capital changes  (3,101)  (1,511)  (4,181)  (2,285)
Net income $2,174  $5,658  $13,571  $22,919 
Interest expense  4,962   4,068   14,830   13,400 
Depreciation and amortization expense  5,079   3,808   14,871   12,247 
Income tax benefit  (80)  (131)  (80)  (28)
EBITDA $12,135  $13,403  $43,192  $48,538 
Less:                
Gain on sale of real property interests  (79)     (189)  (15,508)
Unrealized gain on derivatives  (194)  (154)  (1,511)   
Straight line rent adjustment  (192)     (614)   
Amortization of above- and below-market rents, net  (238)  (245)  (708)  (726)
Foreign currency transaction gain     (86)     (2,721)
Add:                
Impairments  8   16   35   200 
Transaction-related  3,295      3,421   432 
Unrealized loss on derivatives           8,329 
Loss on early extinguishment of debt     215      2,231 
Unit-based compensation        120   120 
Straight line rent adjustment     7      384 
Repayments of investments in receivables  181   152   432   395 
Adjustments for investment in unconsolidated joint venture  1,397   1,430   5,801   3,920 
Deemed capital contribution to fund general and administrative expense reimbursement (2)  1,050   425   2,497   2,455 
Adjusted EBITDA $17,363  $15,163  $52,476  $48,049 

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(1)Amounts include the effects that are reported in discontinued operations.
(2)Under the omnibus agreement with Landmark, we agreed to reimburse Landmark for expenses related to certain general and administrative services that Landmark will provide to us in support of our business, subject to a quarterly cap equal to 3% of our revenue during the current calendar quarter. This cap on expenses will last until the earlier to occur of: (i) the date on which our revenue for the immediately preceding four consecutive fiscal quarters exceeded $120 million and (ii) November 19, 2021. The full amount of general and administrative expenses incurred will be reflected in our income statements, and to the extent such general and administrative expenses exceed the cap amount, the amount of such excess will be reimbursed by Landmark and reflected in our financial statements as a capital contribution from Landmark rather than as a reduction of our general and administrative expenses, except for expenses that would otherwise be allocated to us, which are not included in our general and administrative expenses.

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Source: Landmark Infrastructure Partners LP

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