Radius Global on track for $1.7bn telecoms digital infrastructure acquisitions

The company currently enjoys a market capitalisation of $1.34 billion with stock up 36.54% to $17.75 on an year-to-date basis.

By João Marques Lima

Founder and Editor, The Tech Capital

4 Mins

November 11, 2021 | 1:49 AM GMT

Radius Global Infrastructure, Inc. (NASDAQ: RADI) has plans to invest more than US$400 million in telecommunications digital infrastructure acquisitions in 2022, taking the company’s acquisition CAPEX over the years to a combined $1.69 billion.

The 2022 outlook sum adds to $359.66 million spent between January and September 2021.

The spending both this year and next represents a considerable jump from previous yearly investment which stayed below $100 million up until 2019 and reached $221 million in 2020.

Through its operating company, AP WIP Investments, LLC (APW), Pennsylvania-based Radius Global is one of the largest international aggregators of rental streams underlying wireless and other communication-related sites through the acquisition of real property interests and contractual rights.

At the end of Q3 2021, the company’s owned portfolio included 6,029 sites in 21 countries across North and South America, Oceania, and Europe.

The sites delivered an annualised In-Place Rents increase to $110.4 million during the quarter, an increase of $41.5 million or 60% over the Annualised In-Place Rents of $68.9 million as of September 30, 2020. Leasing is roughly split into 60% from mobile network operators (MNOs) and 40% from towercos.

The company acquired 163 sites for $126.5 million during the three months ended September 30, which have delivered a rent of $8.3 million.

In its third-quarter results, Raxius posted a revenue increase of 54% to $27.5 million compared to a revenue of $17.9 million for the three months ended September 30, 2020.

Gross Profit rose 52% to $26.9 million in Q3 2021, as compared to gross profit of $17.7 million in the corresponding prior year period, while the company generated a gross profit margin of approximately 98% in Q3 2021.

As of September 30, 2021, Radius had $414.9 million of total cash and cash equivalents and restricted cash.

William H. Berkman, Co-Chairman and CEO of Radius Global Infrastructure, said: “We generated revenue growth of 54% year-over-year in the third quarter through disciplined capital deployment to acquire assets combined with continued organic growth from our triple-net rent property portfolio.

“To support our continued growth as we expand into a broader pool of assets and enter new jurisdictions, we issued $264.5 million aggregate principal amount of 2.5% senior unsecured convertible notes during the quarter.

“On October 5, we celebrated our first anniversary as a US publicly listed company. I am extremely proud of what our employees have achieved, not just during the past year, but over the past decade. We are executing on our strategy to penetrate a massive addressable market of mission-critical communications sites, which we believe will allow us to achieve greater economies of scale and capture attractive investment arbitrage opportunities from our rapidly growing portfolio of assets.”


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João Marques Lima

Founder and Editor, The Tech Capital

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