Radius Global Infrastructure Q3 2021 Earnings Call Transcript

Quartr
Provided by Quartr
November 10, 2021

There are 10 speakers on the call.

Operator

Greetings, and welcome to Radius Global Infrastructure Third Quarter 2021 Results Conference Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to turn this conference over to your host, Mr.

Operator

Jason Harbs, Head of Investor Relations. Thank you, sir. You may begin your presentation.

Speaker 1

Thank you, operator, and welcome, everyone, to the Radius Global Infrastructure Third Quarter 2021 Earnings Call. On this morning's call, Bill Burkman, our CEO and Co Chairman, will provide an overview of our Q3 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 we are looking 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 uncertainties that could cause future results to differ from those expressed.

Speaker 1

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 the most directly comparable GAAP financial measure in this morning's earnings release and the supplemental financial information available on our website atwww.radiusglobal.com. And now I'd like to turn the call over to Bill.

Speaker 2

Thanks, Jason, we are executing on our growth strategy in the Q3. We generated revenue growth of 54% in the quarter over the prior year period through continued acquisitions of digital infrastructure we expect to continue to execute on our capital allocation and liquidity position to be approximately $1,000,000,000 of capital expenditures for our capital allocation. During the quarter, we deployed approximately $127,000,000 of acquisition CapEx, continuing the trend of accelerated capital deployment we began in the 4th quarter of 2020. This capital investment resulted in the acquisition of $9,000,000 in additional annualized rent, increasing our total annualized in place rents to a run rate of $110,000,000 a year over year increase of 60%. We are seeing the benefits of increased scale as larger size acquisitions of recurring rental revenues continue to drive operational leverage against our origination platform costs, which Glenn will discuss in greater detail shortly.

Speaker 2

During the quarter, we raised approximately $265,000,000 of capital to support our acquisition strategy. Also, we recently expanded into 2 new international markets, taking our current footprint up 21 countries as well as continuing to broaden the scope of properties we target to a wider we will now begin the full year of digital infrastructure assets, again with similar attributes. As we have shared with you on our most recent earnings calls, the range of digital telecom infrastructure assets we are pursuing include triple net rents generated from distributed antenna systems and fiber aggregation points. All of the acquired assets have similar attributes and underwriting criteria. Specifically, we believe they represent long duration, low risk triple net rent streams paid by the world's largest communications, operating and infrastructure companies.

Speaker 2

With regard to the pace of originations, we remain optimistic about our ability to continue acquiring durable cash flow streams generated from real property interest underlying digital infrastructure for at least the next several quarters based on our current pipeline of acquisition opportunities. Specifically, we are targeting the deployment of $400,000,000 plus of acquisition capital expenditures during 2022, which continues the pace of approximately $100,000,000 plus of capital deployed per quarter that we've reported for the past 4 quarters. I would emphasize that this is an average as there exists some variability by quarter resulting from the timing of closing larger transactions. On October 5, we celebrated our first anniversary as a U. S.

Speaker 2

I am extremely proud of what our employees have achieved, not just during the past year, but over the past decade. We continue to execute on our strategy to penetrate a massive addressable market to build a high quality portfolio of mission critical communication sites, which will allow us to achieve greater economies of scale and generate attractive risk adjusted returns for our shareholders over time. Glenn will now provide an overview of our current holdings and financial results in more detail.

Speaker 3

Thanks, Bill. We continue to grow the portfolio at an elevated pace in the 3rd quarter, taking advantage of investment opportunities across our footprint to deploy capital. As of the end of the 3rd quarter, we own real property interest in over 6,000 sites with nearly 8,000 leased streams, represented by a tenant base comprised of 38 percent tower companies and 62% mobile network operators, the majority of which are investment grade. With respect to our 110,400,000 of annualized in place rents as of September 30, 43% are denominated in euros, 19% in British pounds, 17% in U. S.

Speaker 3

Dollars and the remaining 22% in other global currencies. Approximately 80% of our portfolio has contractual rent escalators that are based on inflation or a similar mechanism, which provides us with meaningful protection against the impact of rising inflation. Revenues were up 54 percent to $27,500,000 in the quarter and gross profit or ground cash flow rose 52% $26,900,000 resulting in a gross profit margin of approximately 98%. In the Q3, we generated 3.8 percent revenue growth from escalators in other organic growth, offset by 1.3% of gross churn, resulting in net organic revenue growth of approximately 2.6% on a year over year basis, which compares to 2.7 percent net organic revenue growth in the Q3 of 2020 on a constant currency basis. As Bill mentioned earlier, we deployed $126,500,000 for acquisition CapEx in the quarter compared to $38,900,000 in the year ago period, representing a 2 25 percent increase and up from $125,400,000 in the 2nd quarter.

Speaker 3

This level of deployment added $8,900,000 in annual rent generated from 163 new sites across 198 new lease streams. We anticipate that these new lease streams will generate a fully burdened initial cash yield of approximately 6.4% on a net growth spend basis, with a greater proportion of rents acquired in developed markets than higher yielding emerging markets. With the continued growth of our portfolio, we are seeing the benefits of greater economies of scale from our acquisition platform reflected in a lower multiple of origination SG and A to rent acquired. Specifically the multiple origination SG and A to rent acquired declined to 1.4x in the 3rd quarter versus 2.6x in the prior year period. Turning to our balance sheet and liquidity.

Speaker 3

During the quarter, we issued $264,500,000 of aggregate principal amount of 2.5 percent senior unsecured convertible notes that mature in September 2026. The company used approximately $33,000,000 of the net proceeds from the notes to pay the cost we have a strong quarter of CapCall transactions that raise the effective conversion rate of the notes to $34.80 from $22.62 thereby reducing potential dilution. Inclusive of the convertible notes, At September 30 Radius had $1,200,000,000 total gross debt outstanding and net debt of 785,000,000 that we have at the AP Wireless level carries a weighted average cash coupon of 4.1% and a weighted average term of 5.9 years. Our first scheduled maturity of $75,000,000 is in 2023. As a result of the recently completed debt financing, the company had $415,000,000 of liquidity available for incremental investment as of quarter end.

Speaker 3

Please refer to the supplemental materials posted to our website yesterday after the market closed for additional details.

Speaker 2

Bill? Thanks, Glenn. And again, I want to reiterate that our team has just done an incredible job. And I'm really I think we are all really the hard work that everybody does. So that concludes our prepared remarks.

Speaker 2

Operator, please open the call for the questions. Thank you.

Operator

At this time, we will be conducting a question and answer session. Our first question comes from the line of Sami Badri with Credit Suisse. You may proceed with your question.

Speaker 2

Hey, Sami.

Speaker 4

Hi, thank you. Hey, guys. First question is, when I'm looking at your asset origination SG and A at 1.4 times rent acquired, could this have been lower if you did not enter the 2 new countries that you're messaging here today? And that's my first question. Then the next question is, I know you guys aren't really big fans of giving us kind of forward looking guidance or anything kind of that can really underline where we should be modeling, but how should we be thinking about next year's growth trajectory relative to

Speaker 2

Glenn, do you want to answer the first question vis a vis the SG and A?

Speaker 3

Sure. Sami, the impact on the 2 new countries was pretty marginal on the present SG and A spend since it's not as a significant component of it. As you know, we're continuing to ramp up teams to grow our incremental revenue streams in all asset classes. So we're seeing a little bit And in building our teams ahead of acquisition CapEx.

Speaker 2

And hopefully, we'll get more countries open besides just these Now as to your second question, look, I thought we were doing a great thing because we gave 4 quarters of effective what we thought we'd be investing in terms of growth CapEx. We're always low to get too far over our skis. And I think we joke around that if we give you perfect guidance, Sort of it's a non issue. If we're under or over, it's just not really great for us. So we're trying to do our best, Sami.

Speaker 2

So we were pretty excited to say, fine, we've got this much confidence that our pipeline is such that for the next four quarters, we can originate $400,000,000 of growth CapEx.

Speaker 4

Got it. Glenn, one other follow-up for you and it's about when sales teams come on and The hiring of new execs being put in place, what is the productivity velocity of these executives? Is it they basically joined the company, hit the ground, begin addressing opportunities and then there's conversions at the 3 to 9 month mark? Or is it more like they come on board with leads and you guys hire them because they have leads and it's going to take 6 months no matter what or 3 months or less. Like maybe you could just give me an idea just What the productivity ratio or conversion rates look like for the new people coming in?

Speaker 3

It's a good question, Sami. I think it depends on the groups

Speaker 2

And it depends on

Speaker 3

the countries. And as you know or as we've talked about before, On the origination platform, there's 2 elements of this. 1 is to generate the leads and to tee them up to close. And the second element is to close the leads, Which takes some time from an underwriting and legal standpoint. So, it's hard to say, on average across the country across the And across the countries, but I would say you're in a 6 to 9 to 12 month period of maturation of the pipelines.

Speaker 3

And I

Speaker 2

would just add that it's different by every country, not to beg off the question. It's just we're assigning the leads to them based on all our proprietary databases and past people that we have contacted For new leads. So I think like with any new person joining a team, there's always going to be a lead time to train them and to get them up to speed.

Speaker 4

Got it. Thank you very much.

Speaker 2

Sure. Thanks, Jamie.

Operator

Our next question comes from the line of Ric Prentiss with Raymond James, you may proceed with your question.

Speaker 5

Hey, Rick. Thanks. Good morning. Hey, good morning, everyone. A couple of questions to follow-up on Sammy's one.

Speaker 5

Yes, we actually were thankful to get that the pipeline guidance out there. Obviously, that begs the other question though is, it's what's the level of competition for these assets? What do you think as far as the pricing cap rates that you can Hold that pacing off at, as we should assume, there's maybe some blended targets that you're going for.

Speaker 2

Yes. No, great questions. I think From a competition point of view, nothing has really changed in what we've discussed in the last couple of quarters. In certain countries, we're going to see some competition. And typically, it's for only a select number of assets because the market is so large that sure, we'll see it on some assets where someone else may be a competitive bidder.

Speaker 2

99% of the time, it's typically a tower company. But in a lot of cases, we just won't see them. Sorry, I can't give you any more scientific of an answer than that. But and then in the new countries where there, we try to select places where, of Rule of law and all the macro dynamics are what we're looking for in our underwriting process. And one factor, of course, is it competitive in the market or not?

Speaker 2

Do we see a tower company coming into the market. And so our hope is we keep adding new countries as well as mining this really huge Total addressable market. And as

Speaker 5

we think about cap rates, should we be thinking kind of all in acquisition CapEx plus the origination SG and A, should we be thinking here in the kind of low to mid 6 range?

Speaker 2

It's funny, it's hard to just give you any of that precisely For two reasons. One is we do we have seen some FX variability, specifically with the UK, most recently because the pound has weakened more than anybody suspected. The second thing is that I'd rather just keep us in, I guess, worst case, 6 I won't say worst case, but 6% to 7% is a good range, Rick. You just can't predict it because our mix country to country is different. And each country has its own different sort of weighted average yield that we're buying at.

Speaker 2

Believe it or not, Germany is different than Spain. Spain is different than France. France Certainly different than Brazil. I hear what I'm saying. And so when we look at our overall weightings, it's hard to have a same store sales yield because it really depends on where we're mining in a particular quarter, mining meaning acquiring assets.

Speaker 5

And probably which asset category they're into, not just the country. Okay. Other question for me or 2 other questions quickly for me. We're hearing more and more from Different tower companies that they're putting ROFRs, right of first refusal into some other land leases. How is that affecting you guys when ROFRs are coming in?

Speaker 2

Well, I think that you're going to laugh when I say this, I'm trying to thread the needle so I don't say too much to our competitors. I think there's a lot of different approaches structured finance such that we believe that they Let me say it this way. We are hopeful that they won't be a problem for us.

Speaker 3

Got you.

Speaker 2

Okay. I

Speaker 5

understand. But if I say

Speaker 2

too much more, then of course my competitor will try to figure out how to change around that too.

Speaker 5

But I

Speaker 2

would say to you, Rick, one other thing. We are always we're experimenting with new offers, and those new offers can take many forms. And let's just say that when you focus only on what we do every day versus a tower company focusing on being and operating this deal and with their tenants, we think we can stay ahead of the curve and be, I'd like to think more creative in how we offer make offers to our customers, our tenants, our landlords.

Speaker 5

And one more final one for me if I could. On the organic side of things, the base business, not the acquisition flywheel, but the base business. Escalators have been trending or lease up, sorry, lease up has been trending down the last couple of quarters. I think 1Q was 1%, 1.0% 0.9% and 0.6% this quarter. Obviously, there's some decimal places in there too.

Speaker 5

But how should we think about what's causing that to kind of tail down And what is a good run rate going forward? Were there any one timers in some of these periods? Just help us understand that trend line on the lease up path.

Speaker 2

I'm going to let Glenn give you more detail. My guess is it's FX.

Speaker 3

Yes. Well, Rick, it's a

Speaker 2

good question. There is a bit of variability in that and it's

Speaker 3

look, it's country by country and asset by asset we're looking at that and it's look, it's country by country and asset by asset specific. And behind the scenes, you have a significant portion of these lease streams escalate annually versus on a term. So there's all kind of things behind it, but our general thought process and expectation of 0.5% to 1.5 Over time, it's been pretty consistent. So that's how I'm thinking.

Speaker 2

But specifically to the organic, Rick, again, I think a little more of its I wouldn't read into it that there's a trend line down. I don't think that's the case at all. If anything, we hope to do better Because we dedicate more people to the effort. And at the end of the day, when we look back 3 or 4 years ago, we didn't dedicate enough people. We saw what happened, we made the investment to effectively increase lease up.

Speaker 5

Makes sense. Stay well, guys. Appreciate the questions.

Speaker 2

Thanks, Rick. Yes.

Operator

Our next question comes from the line of Simon Flannery with Morgan Stanley. You may proceed with your question.

Speaker 6

Great. Thank you. Good morning. Bill, thanks for the guide on your investment next year and the pipeline. So Has something changed that gives you more confidence in the outlook for the longer period of time?

Speaker 6

Maybe just characterize that or is it more that as we kind of approach year end, you felt like it was Something that you wanted to share with us, but your visibility has been similar to what it was. And then on the countries, you probably don't want to name them, but perhaps just and you talked about some more coming. Just take us through your kind of screening process and then what you're looking for? And Is this going to be material to the kind of opportunity pool or are these more kind of tuck in type additions?

Speaker 2

No, both are really good questions. Let's start with the countries first. Rule of law is just critical to us, making sure that we can force our rights within a court system. So that's absolutely one of our first tests. I think the second test is where are the big tower companies which have what we view to be terrific credit.

Speaker 2

It's not that we don't love the underlying credit of the MNO, we like that as well. But when you have the towers, there's just one more layer because there's sort of a sandwich in between us and the MNO. So that's another big threshold test for us. Macroeconomics of a country also a big threshold test, which currency they're in. It's really easy for us to add a country that is already in euros.

Speaker 2

So that you would imagine it is attractive to us. And then, I think what else is, have the actual M and O market already either consolidated where they spun off their towers or 4 carriers merged to 3, we take that into consideration. I think those would be the basic attributes. We've got to we I don't like to look at any it's not like going into Luxembourg where there's very few sites. We try to go to a place and make the investment where it's meaningful enough For a good return on the start up investment required to get a new country opened.

Speaker 2

Our hope is to get even a bunch more there. We haven't really hit Asia. It's not the easiest nut to crack, but that is certainly an opportunity for us. Now, of course, I forgot your first questions, what are my main?

Speaker 6

It was on the pipeline and what's changed to give the visibility or to give the yes.

Speaker 2

Well, I think Our team basically persuaded me that, okay, we should give a little more quarters of guidance because I'm always under promise, over deliver and You get into rhythm there as you can expect 4 quarters going into the future. But as they said to me, we've had our sea legs in place long enough that now we can we do have visibility and we felt comfortable with it to actually put that down in writing and stand behind it. Of Of course, if we don't meet it, then I'm the one against black and blue, but so be it. But no, we're really optimistic and a lot of it's just because we really do have the pipeline and we can actually see it and we're in the glide path hopefully for closing over the next 4 quarters, 5 quarters.

Speaker 6

Great. Thanks a lot.

Speaker 2

Sure.

Operator

Our next question comes from the line of Jon Petersen with Jefferies. You proceed with your question.

Speaker 2

Hey, John.

Speaker 7

Hey, how's it going? Good. Thanks. Good. Sorry Sorry if I missed this, but on the acquisitions you did this quarter, I mean, have you broken out how much of that was Tower Land, DASs and fiber aggregation sites?

Speaker 7

Give us a sense of what the mix is?

Speaker 2

No, we really haven't. And I think the purposeful reason, and I've said this on past calls, Is that we truly think of these as there's just no different in the asset class. And rather than people saying, oh, they only bought this much of this asset class That of this of the other class, we just view it as 1 and the same thing. And so I'd say the only real difference between the construct would be that typically it's a longer property, right, when we buy, whether it's an aggregation point, that's fiber aggregation point or a distributed antenna So long winded way of saying, we just don't break it out.

Speaker 1

Okay.

Speaker 7

All right. And then

Speaker 2

I think it's just simpler too.

Speaker 7

Right. Simple is good. So you have the I think the majority of your rents are indexed inflation, I think about 2 thirds or some form of it. I mean, are there any caps there? I mean, if we Are seeing inflation of 5%, 6%, 7%, like does it cap out at 4% or something, anything like that?

Speaker 2

Actually, that's one of the things we always like the most, which is, I think it's around 77%, if you look at our supplemental materials is what is linked to inflation. And there are no caps unlike if you look at Cellnex or some of the tower companies, I'd say a big piece of their contracts are inflation linked but are capped. Sometimes they're capped at 3, sometimes at 4, sometimes at 2.

Speaker 3

And just to clarify, right, so it's some form of inflation. In the UK, it's the RPI, right? In a lot of countries, it's whatever they're using for CPI in Brazil. It's the IGPM and the INPC. So, it depends on what the country is, but It's generally their guide on inflation and to confirm what Phil said is, there is there are no caps.

Speaker 7

Okay. Is there a lag on that? Like could we go through like a year of really high inflation and then it would be like the next year that it kicks in? Or is it more?

Speaker 3

That's a good question. And that is a good observation, right? And I think you're going to see this with all businesses in the because the majority of the rent streams are paid in advance, right? And you have a high percentage that escalate On a term, right, probably 70% escalate annually, the remaining escalate on some form of a term, a 3 year or a 5 year escalator. So depending on where you are in that cycle, there will be a little bit of a lag with respect to the inflation.

Speaker 3

Okay.

Speaker 2

With a smaller proportion quarterly and otherwise. So as you can imagine, there's no one size fits all for the lease in the way it's done and implemented globally.

Speaker 7

Okay. All right. That's helpful. Thank you.

Speaker 2

Sure.

Operator

Our next question comes from the line of David Arden with Bank of America, you may proceed with your question.

Speaker 7

Thanks for taking

Speaker 8

the questions. So I guess I have a similar question to Simon's question on countries, but this is with respect to kind of asset portfolios and targets. You kind of highlighted that you're diversifying into the DAS systems and the fiber aggregation points. I'm interested If, for instance, data centers and other types of kind of just generic digital infrastructure is In your crosshairs and if so, how would you evaluate that and when? And then I think the second question would be congrats on the $265,000,000 financing.

Speaker 8

You did it in a kind of interesting structure with the capital hedge on the conversion price. A couple of questions on that. One, could you tell me what you think the all in cost of funds for that transaction was? Why you did it the way you did it and is the hedge duration matched with the 2025 maturity? Thanks.

Speaker 2

Right. I'll take that one, Glenn. We did it because 1st and foremost, it could be done really quickly, we wouldn't have that much management distraction. We wanted to be the first one out of the gates immediately after Labor Day, and we were and I think execution between Morgan Stanley and Goldman, they did a terrific job for us. Specifically on the capped call, just to remind you, we are effectively buying back any dilution that the convert otherwise would have had on us.

Speaker 2

So I won't go through all the mechanics, but suffice to say that we do take dilution above $34 a share. That was what we bought with having the capped call. The actual all in costs can be looked at in different ways because one has to value the actual option. And volatility is just a hard measure to come up with as you well know. I think from our mind, this is not a science.

Speaker 2

If the coupon is 2 point We figured because of the capped call that we're buying back that dilution, we were getting to probably And this is an approximate, please don't home me to it, probably around 4% in that neighborhood all in. And the way we look at that is there's also if the cap call never gets exercised. We get effectively a nice tax deduction benefit. And as you get to know us, we're pretty tax nutty. We always think about what is our after tax return.

Speaker 2

The good news is even approaching 4% on the cost, we have really no covenants. This is unsecured debt at the Radius HoldCo level, and we thought that flexibility was pretty terrific. Your last question on the timing of it, the CAF call is coterminous with the debt. So we're protected for the entire duration. You should also know that Not that we sell the capital if we ever wanted to, depending on where volatility is, it should have really spiked, but we also can prepay, I forget the timing, maybe it's after 2 years with the prepayment number, should we want to?

Speaker 3

Yes, after 3 Under certain conditions, obviously liquidity is one of them and it is all matched up at the time on the cap

Speaker 2

To run to the end of the period. And David, on the data center question, the answer is yes. We already we do buy data centers. We haven't broken them out. We've tried to sort of say that they're fiber optic aggregation points.

Speaker 2

As you well know, when we buy a fiber aggregation it oftentimes or many times can have a sell side on the roof. Sometimes it can also be used as a data center. So we've tried hard to Frame it as one thing, because if we start slicing and dicing, this one does that, we thought it would just get too complicated. So we've made it sort of this blanket fiber aggregation point label, but yes, we do buy data centers and we'll continue. And look, if we can find larger opportunities that we think are Don't have much operational responsibility.

Speaker 2

Of course, long term contracts where we get to own the property, the structure, that's right in our sweet spot of what we think our mission should be, which is sort of triple net or double net. Perfect.

Speaker 7

Thanks for the help guys.

Speaker 2

Yes, sure.

Operator

Our last question comes from the line of Walter Piecyk with LightShed. You may proceed with your question.

Speaker 2

Hey, Walt, how do we do on timing for our recording?

Speaker 9

I'll take it back to you on that one with the final results. But I do I like the word tax nutty. I think I'm going to try and work that into my vocabulary as well. I'm going

Speaker 2

to tax you guys. You know our history and who's How does that so?

Speaker 9

100%. So you've been doing on CapEx like 120 whatever 130 on the kind of acquisition CapEx. So the $400,000,000 is down from that. Is it are you just kind of setting the bar and there's Opportunity for upside or why would that be, why should that be lower than the anticipated

Speaker 2

$400,000,000 plus. I tried to emphasize, plus.

Speaker 9

Okay. You know what? Essentially, that's like when who is the Sprint CFO is like something or more like with their EBITDA? Okay, got you. Okay.

Speaker 7

And then the second question is that I want to under promise, we want to under promise and over deliver. So what can I say? Okay. And

Speaker 9

then just a second question on that, which It goes the opposite way, which is, if you look at if you forecast that out, then if you use I think you got $165,000,000 left on the facility, you'd probably have to come back to the capital markets on the Q4 of next year, assuming that the 100 Or higher continues to pace at that. I mean some people would look at inflation data and get concerned about the 10 year And say like, okay, why not lock in more capital now rather than take that risk and deal with it next year? And then just getting back to Barton's question, When you look at future financings, should we think about it in terms of what you just did and convert Type things or is it more debt? Just kind of just interested in your thought process around timing and structure of future financings as you progress through.

Speaker 2

Yes, I think, look, you should be on our team because you're raising all the good points and I'm happy to say that everything you discussed is really in motion. We expect to do a slew of debt financings, some will probably close by year end if we're lucky, others will be 1st or second we are an acquisition machine, but we think we're going to have good execution and the execution piece should be different depending on where in the world we're borrowing Then what you saw in the convert, I think in the convert, we were willing to have it be slightly higher because of just the extraordinary flexibility of it from covenant and it being un secured, but yes, you're right on the money and we hope to deliver what I think you would like to see.

Speaker 3

I just had to clarify, Walt. I thought you were suggesting the availability on our capital structure. With respect to our combined AP Wireless debt Sure. As of today, between the DAC and the APW working capital debt facility, The availability on committee, of course, and we're not paying a commitment fee is $950,000,000 is the availability under those platforms today. And we did specifically say, with respect to in our earnings script that the first scheduled Majority is $75,000,000 in $23,000,000 So I think you can imply that Yes, I'm less concerned about Or more of a structure.

Speaker 2

Yes. Actually what

Speaker 9

I was less concerned about the maturities more of just kind of lining up, but maybe we missed some other stuff you can Draw down upon. So it sounds like you

Speaker 2

guys You know what happened I was going to say the rents are naturally deleveraging because of the escalator in organic growth. So we product then refinance and bring it back up to 8x, 8.25x internationally and we can go as high as 10x for the U. S. So when you factor in a refinance of the U. S, a tack on to Glenn refers to it as the DAC, that is really our international facility.

Speaker 2

And then you have another facility that we're working on that we will disclose more when we get it done. It gives us a fair amount of powder, that's just the timing of when we get them finished, but we're really optimistic on them.

Speaker 9

Got it. Thank you.

Operator

Ladies and gentlemen, we have reached the end of today's question and answer session. I would like to turn this call back over to Mr. Bill Burkeman for closing remarks.

Speaker 2

Thanks, operator, and thanks everybody for joining us today. Look, we're really proud of the results and continue to be excited about the opportunity in front of us, both in all of our different asset classes that you've asked questions about today as well as doing our job trying to peer around corners to find new asset classes or new variants of what we're doing that have long term durable cash flows from terrific credit quality tenants. I hope everybody has a good day. We look forward to catching up with a lot of you individually. Thanks, operator.

Speaker 7

Thank you for joining us today. This concludes today's conference. You may disconnect your lines at this time.

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Radius Global Infrastructure Q3 2021
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