{"id":14732,"date":"2023-08-09T16:21:28","date_gmt":"2023-08-09T16:21:28","guid":{"rendered":"https:\/\/radiusmulti.wpenginepowered.com\/?p=14732"},"modified":"2026-10-05T16:23:09","modified_gmt":"2026-10-05T16:23:09","slug":"radius-global-infrastructure-reports-second-quarter-2023-results","status":"publish","type":"post","link":"https:\/\/www.radiusglobal.com\/tr\/radius-global-infrastructure-reports-second-quarter-2023-results\/","title":{"rendered":"Radius Global Infrastructure Reports Second Quarter 2023 Results"},"content":{"rendered":"

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Radius Global Infrastructure Reports Second Quarter 2023 Results<\/strong><\/h5>\n

Revenue Increased 30% YoY<\/em><\/strong><\/p>\n

NEW YORK\u2013(BUSINESS WIRE)\u2013Aug. 9, 2023\u2013\u00a0Radius Global Infrastructure, Inc.\u00a0(Nasdaq: RADI) (\u201cRadius\u201d or the \u201cCompany\u201d), one of the largest international owners and acquirors of real property interests and similar contractual rights underlying essential digital infrastructure assets, today reported financial results for the quarter ended\u00a0June 30, 2023.<\/p>\n

Bill Berkman, Co-Chairman and CEO of\u00a0Radius Global Infrastructure, commented:<\/strong><\/p>\n

\u201cWe generated quarterly Revenue of\u00a0$42.5 million\u00a0in the second quarter of 2023, up 30% from the second quarter of 2022, with Gross Profit increasing to\u00a0$40.0 million, up 31% year-over-year. In the second quarter, our Annualized In-Place Rents increased by 34% year-over-year to\u00a0$176.7 million. Our revenues are primarily triple net, inflation-linked rents underlying mission-critical communications sites. In the second quarter, we invested\u00a0$110.9 million\u00a0to acquire 223 communication sites that are generating\u00a0$8.3 million\u00a0of annual rent. As of\u00a0June 30, 2023, Radius has approximately\u00a0$358.5 million\u00a0of total cash and cash equivalents, restricted cash (including long-term restricted cash), and short-term investments.\u201d<\/p>\n

RECENTLY ANNOUNCED TRANSACTION<\/strong><\/p>\n

As previously announced on\u00a0March 1, 2023, Radius entered into a definitive agreement under which EQT Active Core Infrastructure (\u201cEQT\u201d) and the\u00a0Public Sector Pension Investment Board\u00a0(\u201cPSP\u201d), through certain of their controlled affiliates, will acquire the Company (the \u201cMerger\u201d). The Company has since obtained all antitrust and direct foreign investment approvals required in connection with the Merger except for one foreign direct investment approval that remains outstanding. The parties still expect the Merger to close in the third quarter of 2023, subject to the conditions set forth in the Merger Agreement, although there can be no assurance that the Merger will occur by that date. On\u00a0June 15, 2023, the Merger was approved by the Company\u2019s stockholders.<\/p>\n

For additional information relating to this pending transaction, please refer to the definitive proxy statement on Schedule 14A filed with the\u00a0Securities and Exchange Commission\u00a0(the \u201cSEC\u201d) on\u00a0May 12, 2023\u00a0(as amended and supplemented) and other relevant materials that the Company has filed and may file with the\u00a0SEC\u00a0in connection with the Merger.<\/p>\n

QUARTERLY RESULTS<\/strong><\/p>\n

Revenue<\/strong>\u00a0increased 30% to\u00a0$42.5 million\u00a0for the three months ended\u00a0June 30, 2023, as compared to revenue of\u00a0$32.6 million\u00a0for the three months ended\u00a0June 30, 2022. The increase was primarily attributable to the additional revenue streams acquired through investments in real property interests made during the past year and also includes foreign exchange rate movements.<\/p>\n

Gross Profit\u00a0<\/strong>rose 31% to\u00a0$40.0 million\u00a0during the three months ended\u00a0June 30, 2023, as compared to gross profit of\u00a0$30.5 million\u00a0in the corresponding prior year period, reflecting a gross profit (which we also refer to as ground cash flow) margin of approximately 94% during the three months ending\u00a0June 30, 2023. Ground cash flow margin was impacted by expenses associated with fee simple interests acquired, primarily for property taxes.<\/p>\n

Annualized In-Place Rents<\/strong>\u00a0(\u201cAIPR\u201d) were\u00a0$176.7 million\u00a0as of\u00a0June 30, 2023, an increase of\u00a0$45.0 million, or 34% over AIPR of\u00a0$131.7 million\u00a0as of\u00a0June 30, 2022. On a constant currency basis, AIPR would have increased 29% year-over-year to\u00a0$170.5 million\u00a0as of\u00a0June 30, 2023.<\/p>\n

YEAR-TO-DATE RESULTS<\/strong><\/p>\n

GAAP Revenue<\/strong>\u00a0increased 32% to\u00a0$83.7 million\u00a0for the six months ended\u00a0June 30, 2023, as compared to revenue of\u00a0$63.2 million\u00a0for the six months ended\u00a0June 30, 2022.<\/p>\n

GAAP Gross Profit\u00a0<\/strong>rose 32% to\u00a0$79.4 million\u00a0in the first half of 2023, as compared to gross profit of\u00a0$60.3 million\u00a0in the corresponding prior year period.<\/p>\n

Investments in Real Property Interests<\/strong>\u00a0and Related Intangible Assets,<\/strong>\u00a0as identified in the Company\u2019s Consolidated Statements of Cash Flows, was\u00a0$150.4 million\u00a0and\u00a0$259.7 million\u00a0for the six months ended\u00a0June 30, 2023\u00a0and 2022, respectively. This represented a decrease of\u00a0$109.3 million, or 42%, for the six months ended\u00a0June 30, 2023\u00a0over the corresponding prior year period.<\/p>\n

Acquisition Capex<\/strong>\u00a0was\u00a0$159.1 million\u00a0and\u00a0$254.1 million\u00a0for the six months ended\u00a0June 30, 2023\u00a0and\u00a0June 30, 2022, respectively, or a decrease of\u00a0$95.0 million, or 37%, for the six months ended\u00a0June 30, 2023\u00a0over the corresponding prior year period.<\/p>\n

Please refer to the GAAP financial disclosures, reconciliations and comparisons to non-GAAP financial measurements set forth below and in the Company\u2019s Form 10-Q for the quarter ended\u00a0June 30, 2023.<\/p>\n

LIQUIDITY<\/strong><\/p>\n

As of\u00a0June 30, 2023, Radius had\u00a0$358.5 million\u00a0of total cash and cash equivalents, restricted cash (including long-term restricted cash), and short-term investments. Of this amount, approximately\u00a0$320.1 million\u00a0was available to deploy for asset acquisitions after excluding amounts that are required to be held in interest escrow accounts under certain long-term debt agreements.<\/p>\n

FINANCING TRANSACTIONS<\/strong><\/p>\n

The summary below presents significant financing activities that have occurred in 2023.<\/p>\n