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Landmark Infrastructure Partners LP Reports Third Quarter Results

EL SEGUNDO, Calif., Nov. 06, 2019 (GLOBE NEWSWIRE) -- Landmark Infrastructure Partners LP (“Landmark,” the “Partnership,” “we,” “us” or “our”) (Nasdaq: LMRK) today announced its third quarter financial results.

Highlights

  • Net income attributable to common unitholders of $0.03 per diluted unit, FFO of $0.20 per diluted unit and AFFO of $0.32 per diluted unit;
  • Year-to-date through October 31, 2019, completed acquisitions of 134 assets for total consideration of approximately $42 million; and
  • Announced a quarterly distribution of $0.3675 per common unit.

Third Quarter 2019 Results
“We are pleased to announce another quarter of solid financial and operating results reflecting the stability and continued performance of the assets in our portfolio.  We are making further progress with our development strategy and anticipate placing assets into service in the fourth quarter of 2019,” said Tim Brazy, Chief Executive Officer of the Partnership’s general partner.

Net income attributable to common unitholders per diluted unit in the third quarter of 2019 was $0.03, compared to $3.71 in the third quarter of 2018.  Net income included a gain on sale of assets of $0.5 million in the third quarter of 2019 and a gain on sale of assets of $100.0 million in the third quarter of 2018.  FFO for the third quarter of 2019 was $0.20 per diluted unit, compared to $0.29 in the third quarter of 2018.  FFO included a $2.2 million unrealized loss on interest rate hedges in the third quarter of 2019 and a $0.8 million unrealized gain on interest rate hedges in the third quarter of 2018.  AFFO per diluted unit, which excludes certain items including unrealized gains and losses on our interest rate hedges, was $0.32 in the third quarter of 2019 compared to $0.34 in the third quarter of 2018.  Rental revenue for the quarter ended September 30, 2019 was $14.4 million, a decrease of 18% compared to the third quarter of 2018.  The decline in rental revenue in the third quarter is primarily due to the contribution of assets to the Landmark/Brookfield joint venture (“JV”) in September 2018, as the JV is accounted for as an equity method investment and the revenue generated in the JV is not consolidated into the Partnership’s results.  In addition, the Partnership sold a portfolio of assets in June 2019, which also contributed to lower rental revenue.

For the nine months ended September 30, 2019 we generated net income of $20.5 million compared to $118.0 million during the nine months ended September 30, 2018.  Net income attributable to common unitholders for the nine months ended September 30, 2019 was $0.41 per diluted unit compared to $4.18 per diluted unit for the nine months ended September 30, 2018.  For the nine months ended September 30, 2019 we generated FFO of $0.40 per diluted unit and AFFO of $0.97 per diluted unit, compared to FFO of $0.95 per diluted unit and AFFO of $0.99 per diluted unit during the nine months ended September 30, 2018.  For the nine months ended September 30, 2019, the Partnership reported rental revenue of $43.8 million compared to $50.1 million during the nine months ended September 30, 2018.  The decline in revenue was primarily attributable to the contribution of assets to the JV in September of 2018 and the sale of a portfolio of assets in June 2019.

Quarterly Distributions
On October 25, 2019, the Board of Directors of the Partnership’s general partner declared a cash distribution of $0.3675 per common unit, or $1.47 per common unit on an annualized basis, for the quarter ended September 30, 2019.  The distribution is payable on November 14, 2019 to common unitholders of record as of November 4, 2019.

On October 22, 2019, 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, 2019 to Series C preferred unitholders of record as of November 1, 2019.

On October 22, 2019, 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, 2019 to Series B preferred unitholders of record as of November 1, 2019.

On September 20, 2019, 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, 2019 to Series A preferred unitholders of record as of October 1, 2019.

Capital and Liquidity
As of September 30, 2019, the Partnership had $175.3 million of outstanding borrowings under its revolving credit facility (the “Facility”), and approximately $275 million of undrawn borrowing capacity under the Facility, subject to compliance with certain covenants.

Recent Acquisitions
Year-to-date through October 31, 2019, the Partnership acquired a total of 134 assets for total consideration of approximately $42 million.  The acquisitions were immediately accretive to AFFO and funded primarily with borrowings under the Partnership’s existing credit facility.

At-The-Market (“ATM”) Equity Programs
Year-to-date through October 31, 2019, the Partnership has issued 128,892 Series A preferred units and 81,778 Series B preferred units through its At-The-Market (“ATM”) issuance programs for gross proceeds of approximately $5.3 million.

Conference Call Information
The Partnership will hold a conference call on Wednesday, November 6, 2019, at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time) to discuss its third quarter 2019 financial and operating results.  The call can be accessed via a live webcast at https://edge.media-server.com/mmc/p/ogyxkruc, 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 3877447.

A webcast replay will be available approximately two hours after the completion of the conference call through November 6, 2020 at https://edge.media-server.com/mmc/p/ogyxkruc.  The replay is also available through November 15, 2019 by dialing 855-859-2056 or 404-537-3406 and entering the access code 3877447.

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, 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, acquisition-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, acquisition-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.  Examples of forward-looking statements in this press release include expected acquisition opportunities from our sponsor.  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, 2018 and Current Report on Form 8-K filed with the Commission on February 20, 2019.  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, 
  2019  2018  2019  2018 
Revenue                
Rental revenue $14,402  $17,560  $43,820  $50,051 
Expenses                
Property operating  435   360   1,505   875 
General and administrative  1,288   735   4,269   3,523 
Acquisition-related  119   88   614   469 
Amortization  3,395   4,293   10,368   12,548 
Impairments  442   877   646   980 
Total expenses  5,679   6,353   17,402   18,395 
Other income and expenses                
Interest and other income  198   434   764   1,280 
Interest expense  (4,259)  (6,906)  (13,439)  (19,586)
Unrealized gain (loss) on derivatives  (2,188)  774   (8,963)  5,208 
Equity income from unconsolidated joint venture  154   59   263   59 
Gain on sale of real property interests  473   100,039   18,008   100,039 
Foreign currency transaction gain  1,113      1,045    
Total other income and expenses  (4,509)  94,400   (2,322)  87,000 
Income before income tax expense  4,214   105,607   24,096   118,656 
Income tax expense  228   460   3,635   663 
Net income  3,986   105,147   20,461   117,993 
Less: Net income attributable to noncontrolling interests  7   8   23   20 
Net income attributable to limited partners  3,979   105,139   20,438   117,973 
Less: Distributions to preferred unitholders  (2,985)  (2,868)  (8,900)  (7,742)
Less: General Partner's incentive distribution rights  (197)  (197)  (591)  (587)
Less: Accretion of Series C preferred units  (96)     (546)   
Net income attributable to common and subordinated unitholders $701  $102,074  $10,401  $109,644 
Net income (loss) per common and subordinated unit                
Common units – basic $0.03  $4.06  $0.41  $4.51 
Common units – diluted $0.03  $3.71  $0.41  $4.18 
Subordinated units – basic and diluted $  $  $  $(0.59)
Weighted average common and subordinated units outstanding                
Common units – basic  25,341   25,138   25,339   24,405 
Common units – diluted  25,341   27,741   25,339   26,658 
Subordinated units – basic and diluted           517 
Other Data                
Total leased tenant sites (end of period)  1,914   1,818   1,914   1,818 
Total available tenant sites (end of period)  2,011   1,907   2,011   1,907 

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

  September 30, 2019  December 31, 2018 
Assets        
Land $136,221  $128,302 
Real property interests  523,303   517,423 
Construction in progress  58,507   29,556 
Total land and real property interests  718,031   675,281 
Accumulated amortization of real property interests  (46,753)  (39,069)
Land and net real property interests  671,278   636,212 
Investments in receivables, net  8,741   18,348 
Investment in unconsolidated joint venture  62,524   65,670 
Cash and cash equivalents  4,920   4,108 
Restricted cash  5,417   3,672 
Rent receivables, net  5,098   4,292 
Due from Landmark and affiliates  1,876   1,390 
Deferred loan costs, net  4,854   5,552 
Deferred rent receivable  5,970   5,251 
Derivative asset     4,590 
Other intangible assets, net  19,469   20,839 
Assets held for sale (AHFS)  392   7,846 
Other assets  13,467   8,843 
Total assets $804,006  $786,613 
Liabilities and equity        
Revolving credit facility $175,313  $155,000 
Secured notes, net  219,535   223,685 
Accounts payable and accrued liabilities  8,922   7,435 
Other intangible liabilities, net  7,923   9,291 
Liabilities associated with AHFS     397 
Lease liability  10,076    
Prepaid rent  5,549   5,418 
Derivative liabilities  4,765   402 
Total liabilities  432,083   401,628 
Commitments and contingencies        
Mezzanine equity        
Series C cumulative redeemable convertible preferred units, 1,988,700 and 2,000,000
  units issued and outstanding at September 30, 2019 and December 31, 2018, respectively
  47,571   47,308 
Equity        
Series A cumulative redeemable preferred units, 1,674,156 and 1,593,149 units
  issued and outstanding at September 30, 2019 and December 31, 2018, respectively
  39,018   37,207 
Series B cumulative redeemable preferred units, 2,544,793 and 2,463,015 units
  issued and outstanding at September 30, 2019 and December 31, 2018, respectively
  60,926   58,936 
Common units, 25,353,140 and 25,327,801 units issued and outstanding at
  September 30, 2019 and December 31, 2018, respectively
  394,036   411,158 
General Partner  (163,370)  (167,019)
Accumulated other comprehensive loss  (6,459)  (2,806)
Total limited partners' equity  324,151   337,476 
Noncontrolling interests  201   201 
Total equity  324,352   337,677 
Total liabilities, mezzanine equity and equity $804,006  $786,613 

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  718   907   77.4 (7) 850   27.0          $5,164   36%
Outdoor Advertising  593   705   79.8 (7) 686   15.4           3,969   28%
Renewable Power Generation  16   47   48.4 (7) 47   30.7           329   2%
Subtotal  1,327   1,659   76.7 (7) 1,583   22.0          $9,462   66%
Tenant Lease Assignment only (8)                                    
Wireless Communication  116   166   50.5   147   16.1          $1,024   7%
Outdoor Advertising  33   36   62.3   35   13.2           234   1%
Renewable Power Generation  6   6   68.0   6   26.9           57   1%
Subtotal  155   208   53.1   188   15.9          $1,315   9%
Tenant Lease on Fee Simple                                    
Wireless Communication  19   28   99.0 (7) 27   18.9          $997   7%
Outdoor Advertising  76   99   99.0 (7) 99   5.1           1,018   7%
Renewable Power Generation  15   17   99.0 (7) 17   29.8           1,610   11%
Subtotal  110   144   99.0 (7) 143   10.5          $3,625   25%
Total  1,592   2,011   72.2 (9) 1,914   20.5          $14,402   100%
Aggregate Portfolio                                    
Wireless Communication  853   1,101   67.8   1,024   25.2   93% $1,952  $7,185   50%
Outdoor Advertising  702   840   78.9   820   14.1   98%  2,367   5,221   36%
Renewable Power Generation  37   70   36.5   70   29.7   100%  8,985   1,996   14%
Total  1,592   2,011   72.2 (9) 1,914   20.5   95% $2,398  $14,402   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, outdoor advertising, renewable power generation and aggregate portfolios as of September 30, 2019 were 3.3, 7.2, 17.4 and 5.2 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, 2019.  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 63 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, 
  2019  2018  2019  2018 
Net income $3,986  $105,147  $20,461  $117,993 
Adjustments:                
Amortization expense  3,395   4,293   10,368   12,548 
Impairments  442   877   646   980 
Gain on sale of real property interests, net of income taxes  (500)  (100,039)  (14,982)  (100,039)
Adjustments for investment in unconsolidated joint venture  792      2,568    
Distributions to preferred unitholders  (2,985)  (2,868)  (8,900)  (7,742)
Distributions to noncontrolling interests  (7)  (8)  (23)  (20)
FFO $5,123  $7,402  $10,138  $23,720 
Adjustments:                
General and administrative expense reimbursement (1)  930   289   3,058   2,069 
Acquisition-related expenses  119   88   614   469 
Unrealized (gain) loss on derivatives  2,188   (774)  8,963   (5,208)
Straight line rent adjustments  145   33   414   177 
Unit-based compensation        130   70 
Amortization of deferred loan costs and discount on secured notes  780   1,123   2,308   3,004 
Amortization of above- and below-market rents, net  (216)  (333)  (654)  (1,008)
Deferred income tax expense  56   369   109   420 
Repayments of receivables  156   307   430   915 
Adjustments for investment in unconsolidated joint venture  38   6   63   6 
Foreign currency transaction gain  (1,113)     (1,045)   
AFFO $8,206  $8,510  $24,528  $24,634 
                 
FFO per common and subordinated unit - diluted $0.20  $0.29  $0.40  $0.95 
AFFO per common and subordinated unit - diluted $0.32  $0.34  $0.97  $0.99 
Weighted average common and subordinated units outstanding - diluted  25,341   25,138   25,339   24,922 

 

(1)   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.

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

  Three Months Ended September 30,  Nine Months Ended September 30, 
  2019  2018  2019  2018 
Reconciliation of EBITDA and Adjusted EBITDA to Net Income                
Net income $3,986  $105,147  $20,461  $117,993 
Interest expense  4,259   6,906   13,439   19,586 
Amortization expense  3,395   4,293   10,368   12,548 
Income tax expense  228   460   3,635   663 
EBITDA $11,868  $116,806  $47,903  $150,790 
Impairments  442   877   646   980 
Acquisition-related  119   88   614   469 
Unrealized (gain) loss on derivatives  2,188   (774)  8,963   (5,208)
Gain on sale of real property interests  (473)  (100,039)  (18,008)  (100,039)
Unit-based compensation        130   70 
Straight line rent adjustments  145   33   414   177 
Amortization of above- and below-market rents, net  (216)  (333)  (654)  (1,008)
Repayments of investments in receivables  156   307   430   915 
Adjustments for investment in unconsolidated joint venture  1,526   52   4,670   52 
Foreign currency transaction gain  (1,113)     (1,045)   
Deemed capital contribution to fund general and administrative expense reimbursement(1)  930   289   3,058   2,069 
Adjusted EBITDA $15,572  $17,306  $47,121  $49,267 
Reconciliation of EBITDA and Adjusted EBITDA to Net Cash Provided by Operating Activities                
Net cash provided by operating activities $5,071  $9,503  $21,954  $31,069 
Unit-based compensation        (130)  (70)
Unrealized gain (loss) on derivatives  (2,188)  774   (8,963)  5,208 
Amortization expense  (3,395)  (4,293)  (10,368)  (12,548)
Amortization of above- and below-market rents, net  216   333   654   1,008 
Amortization of deferred loan costs and discount on secured notes  (780)  (1,123)  (2,308)  (3,004)
Receivables interest accretion  3      9    
Impairments  (442)  (877)  (646)  (980)
Gain on sale of real property interests  473   100,039   18,008   100,039 
Allowance for doubtful accounts  (102)  52   (107)  23 
Equity loss from unconsolidated joint venture  154   59   263   59 
Distributions of earnings from unconsolidated joint venture  (300)     (2,883)   
Foreign currency transaction gain  1,113      1,045    
Working capital changes  4,163   680   3,933   (2,811)
Net income $3,986  $105,147  $20,461  $117,993 
Interest expense  4,259   6,906   13,439   19,586 
Amortization expense  3,395   4,293   10,368   12,548 
Income tax expense  228   460   3,635   663 
EBITDA $11,868  $116,806  $47,903  $150,790 
Less:                
Gain on sale of real property interests  (473)  (100,039)  (18,008)  (100,039)
Unrealized gain on derivatives     (774)     (5,208)
Amortization of above- and below-market rents, net  (216)  (333)  (654)  (1,008)
Foreign currency transaction gain  (1,113)     (1,045)   
Add:                
Impairments  442   877   646   980 
Acquisition-related  119   88   614   469 
Unrealized loss on derivatives  2,188      8,963    
Unit-based compensation        130   70 
Straight line rent adjustment  145   33   414   177 
Repayments of investments in receivables  156   307   430   915 
Adjustments for investment in unconsolidated joint venture  1,526   52   4,670   52 
Deemed capital contribution to fund general and administrative expense reimbursement (1)  930   289   3,058   2,069 
Adjusted EBITDA $15,572  $17,306  $47,121  $49,267 

(1)   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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