Melody Investment Advisors, an asset management firm, said that it has submitted a proposal to purchase 100 percent of the assets currently owned by Landmark Infrastructure Partners (LIP) through one or a series of transactions that would result in holders of Landmark’s common units receiving $16.25 in cash, per share.
Melody said its proposal is 25 percent higher than one proposed by DigitalBridge — formerly Digital Colony — and 20 percent higher than one proposed by Verde Investments, which reportedly offered $13 and $13.50 per share respectively.
“Our proposal both is financially superior and provides equal or greater transaction certainty than the Colony and Verde proposals given Melody’s ample committed and available capital and ability to quickly close the transaction,” said Omar Jaffrey, managing partner, Melody Investment Advisors.
“We are confident that the vast majority of Landmark unitholders who are unaffiliated with Colony would find our proposal compelling,” Jaffrey said. “If, in fact, the Committee is seeking to run a fair and open sales process and maximize value for Landmark’s unitholders, as we expect is the Committee’s intention, we request that representatives of the Committee promptly enter into discussions with us concerning our proposal.”
Landmark Infrastructure Partners is a real-estate and infrastructure investment firm focused on wireless communication, outdoor advertising and renewable power generation industries. The company’s assets include cellular towers, rooftop wireless sites, billboards and wind turbines. Landmark Dividend was acquired by Digital Colony — now known as DigitalBridge — in May. At the time, Digital Colony said it also planned to submit a proposal to buy Landmark Infrastructure Partners.
Meanwhile, LIP reported its second quarter results on August 4, including rental revenue of $17.6 million, a 27 percent increase year-over-year. For the six months ended June 30, 2021, LIP reported rental revenue of $34.9 million compared to $27.7 million during the six months ended June 30, 2020. For the six months ended June 30, 2021, LIP generated net income of $11.4 million compared to $17.3 million during the six months ended June 30, 2020.
Net income attributable to common unitholders for the six months ended June 30, 2021 was 20 cents per diluted unit compared to 43 cents per diluted unit for the six months ended June 30, 2020. For the six months ended June 30, 2021, LIP generated FFO of 71 cents per diluted unit and AFFO of 74 cents per diluted unit, compared to FFO of 20 cents per diluted unit and AFFO of 66 cents per diluted unit during the six months ended June 30, 2020.
Source: Landmark Infrastructure Partners