Radius Global Infrastructure, Inc., through its subsidiaries, operates as an international aggregator of rental streams underlying wireless and other essential communications infrastructure sites through the acquisition of real property interests and contractual rights.
The company purchases, primarily for a lump sum, the right to receive future rental payments generated pursuant to an existing ground, rooftop or other communications infrastructure lease (and any subsequent lease or extension o...
Radius Global Infrastructure, Inc., through its subsidiaries, operates as an international aggregator of rental streams underlying wireless and other essential communications infrastructure sites through the acquisition of real property interests and contractual rights.
The company purchases, primarily for a lump sum, the right to receive future rental payments generated pursuant to an existing ground, rooftop or other communications infrastructure lease (and any subsequent lease or extension or amendment thereof) between a property owner and an owner of a wireless tower, antennae or other essential communications infrastructure (each such lease, a Tenant Lease). Typically, the company acquires the rental streams by way of a purchase of a real property interest in the land underlying the wireless tower, antennae or other essential communications infrastructure, most commonly easements, usufructs, leasehold and sub-leasehold interests, or fee simple interests, each of which provide it with the right to receive all communications rents relating to the property, including the rents from the Tenant Lease. In addition, the company purchases contractual interests, such as an assignment of rents, either in conjunction with the property interest or as a stand-alone right.
As of December 31, 2022, the company had interests in 9,188 leases that generate rents for it. These leases related to properties that were situated on 7,024 different communications sites, throughout the United States and 20 other countries.
Strategy
The company seeks to continually expand its business primarily by implementing organic growth strategies, including expanding into different geographies, asset classes and technologies; continued acquisition of real estate interests and contractual rights (as well as other revenue streams) supporting wireless communications sites and other communications infrastructure (as well as through annual rent escalators, the addition of new tenants and/or lease modifications); and developing a portfolio of infrastructure assets, including through acquisition or build to suit.
The key elements of the company’s strategy include growing through additional acquisitions; and leveraging existing platform and continued expansion of its business into the broader communications infrastructure.
Assets
Types of Assets
As of December 31, 2022, the company has acquired a total of 9,529 leases (including non-renewed or terminated leases). As of December 31, 2022, the company had interests in 9,188 leases that generate rents for it. These outstanding leases related to properties that were situated on 7,024 different communications sites. Each of these ‘assets’ is the right to receive the rent payable under the Tenant Lease entered into between the property owner or lessor of the property and the owner of the wireless communication towers, antennae or other assets installed at such site. These tenants typically are either wireless carriers (mobile network operators, or ‘MNOs’) or tower companies. The company acquires these interests primarily through individually negotiated transactions with the property owners.
Real Property Interests: As of December 31, 2022, the company had an aggregate of 7,580 leases arising from real property interests, other than fee simple interests. These real property interests vary by jurisdiction and often bifurcate portions of ownership. In the United States, the real property interests are generally easements. In the United Kingdom, the company typically enter into ‘head leases’ with the property owner or leaseholder which, as a matter of law, inserts it between the property owner or leaseholder and the tenant. As of December 31, 2022, the company had an aggregate 1,608 leases arising from real property interests that were fee simple interests. The assets associated with fee simple interests were primarily held in the United Kingdom (780), Italy (240), the United States (70) and the Netherlands (66).
Contractual Rights: In addition to real property rights, the company acquires contractual rights by way of an assignment of rents, typically where legal limitations of local real estate law or commercial circumstances make the acquisition of a real property interest impractical.
Geographic Distribution
The company owns assets throughout the United States and the following 20 countries: Australia, Belgium, Brazil, Canada, Chile, Colombia, France, Germany, Greece, Hungary, Ireland, Italy, Mexico, the Netherlands, Portugal, Romania, Spain, Turkey, the United Kingdom and Uruguay. As of December 31, 2022, approximately 17% of the company’s revenue was generated from sites that were located in the United States and Canada, approximately 68% of its revenue was generated from sites that were located in Europe and Australia and approximately 15% of its revenue was generated from sites that were located in South America and Mexico.
Tenant Base
As of December 31, 2022, the company’s top 20 tenants represented 86% of its annualized in-place rents. Investment-grade tenants, which include AT&T Mobility, Verizon, Telefónica, Orange and Vodafone in the wireless carrier industry and American Tower, Crown Castle and Vantage Towers in the cellular tower industry, constituted 51% of the revenue of its top 20 customers.
Competition
The company’s principal competitors include large independent tower companies, such as American Tower, Cellnex Telecom, Cornerstone, Crown Castle International, Inwit, MBNL, Phoenix Towers, SBA Communications, Telesites, Vertical Bridge and Vantage Towers.
Regulatory and Environmental Matters
In the United Kingdom, the company is subject to the Electronic Communications Code, which governs certain relationships between landowners and operators of electronic communications services, such as cellular towers. The company has devoted and continue to devote a significant amount of management attention and resources to mitigating the potential adverse impact of the Electronic Communications Code, including through dispute resolution, as new and existing tenants in the United Kingdom have attempted to materially reduce the amount of rents paid to it under leases as a result of this law.
Privacy and Data Protection
The company is subject to the U.S., European Union (the EU), and other foreign laws and regulations relating to privacy, data protection, and cyber and information security (Data Privacy Laws), including, among others:
State laws that give new data privacy rights to individuals and place restrictions on how it collects and processes personal data, such as the California Consumer Privacy Act of 2018, amendments to which came into effect in January 2023, and other state consumer privacy laws that are already in effect or will come into effect this year in other states;
Data protection laws in the U.S. and certain countries regarding notification to data subjects and/or regulators when there is a security breach of personal data;
The General Data Protection Regulation (GDPR), which imposes stringent data protection requirements on companies that receive or process personal information from EU residents; and
The data privacy legislation in the other jurisdictions where it does business, including, but not limited to, the Italian Privacy Code (Legislative Decree n. 196/2003) and the Brazilian General Data Protection Law (Law n. 13.583/2019), among others.
The company’s efforts to comply with privacy, data protection and information security laws, regulations and other obligations, which include a long-term engagement with a cybersecurity firm to assess IT security and implement IT best practices, penetration testing by independent external parties on a recurring basis and investment in additional server hardware and licenses to monitor security events through the use of a Security Information and Event Management System.
History
Radius Global Infrastructure, Inc. was founded in 2010. The company was incorporated in Delaware in 2020.
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