·

Announced a quarterly distribution of $0.35 per common unit, representing year-over-year distribution growth of 7.7%;

·

Reported Q4 2016 revenue of $11.7 million, a 72% increase year-over-year;

·

Reported Q4 2016 net income of $8.8 million, EBITDA of $15.4 million, and Adjusted EBITDA of $10.8 million, a 68% increase in Adjusted EBITDA year-over-year;

·

Reported Q4 2016 distributable cash flow of $6.3 million, a 38% increase year-over-year;

·

On December 22, the Partnership acquired a portfolio of 37 assets from Landmark Dividend LLC (“Landmark”), for total consideration of $13.6 million; and

·

Maintained an occupancy rate of 97%.

·

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.

Three Months Ended December 31, 

Year Ended December 31, 

2016

2015

2016

2015

Revenue

Rental revenue

$

$

$

$

Interest income on receivables

Total revenue

Expenses

Management fees to affiliate

 —

Property operating

General and administrative

Acquisition-related

Amortization

Impairments

Total expenses

Other income and expenses

Interest expense

Loss on early extinguishment of debt

 —

Realized loss on derivatives

 —

Unrealized gain (loss) on derivatives

Gain on sale of real property interests

 —

Total other income and expenses

Net income

$

$

$

$

Less: Pre-acquisition net income (loss) from Drop-down Assets(1)

Net income attributable to limited partners

Less: Distributions to preferred unitholders

 —

 —

Less: General Partner's incentive distribution rights

 —

 —

Net income attributable to common and subordinated unitholders

$

$

$

$

Net income (loss) per common and subordinated unit

Common units – basic

$

$

$

$

Common units – diluted

$

$

$

$

Subordinated units – basic and diluted

$

$

$

$

Weighted average common and subordinated units outstanding

Common units – basic

Common units – diluted

Subordinated units – basic and diluted

Other Data:

Total leased tenant sites (end of period)

Total available tenant sites (end of period)

(1)

During the years ended December 31, 2016 and 2015, the Partnership completed five and eight drop-down acquisitions, respectively, (the “Drop-down Assets”) from our sponsor Landmark Dividend LLC and affiliates  (collectively “Landmark”). Since the entities are under common control, the assets and liabilities acquired are recorded at Landmark’s historical cost, with financial statements for prior periods retroactively adjusted to furnish comparative information. Financial information prior to the closing of each transaction has been retroactively adjusted for the Drop-down Assets. These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2016 filed with the Securities and Exchange Commission on February 23, 2017.

December 31, 2016

December 31, 2015(1)

Assets

Land

$

$

Real property interests

Total land and real property interests

Accumulated amortization of real property interests

Land and net real property interests

Investments in receivables, net

Cash and cash equivalents

Restricted cash

 —

Rent receivables, net

Due from Landmark and affiliates

Deferred loan costs, net

Deferred rent receivable

Derivative assets

—

Other intangible assets, net

Other assets

Total assets

$

$

Liabilities and equity

Revolving credit facility

$

$

Secured debt facilities, net

 —

Secured notes, net

 —

Accounts payable and accrued liabilities

Other intangible liabilities, net

Prepaid rent

Derivative liabilities

Total liabilities

Commitments and contingencies

Equity

Series A cumulative redeemable preferred units, 863,957 and zero units issued and outstanding at December 31, 2016 and 2015, respectively

 —

Series B cumulative redeemable preferred units, 1,840,000 and zero units issued and outstanding at December 31, 2016 and 2015, respectively

 —

Common units, 19,450,555 and 11,820,144 units issued and outstanding at December 31, 2016 and 2015, respectively

Subordinated units, 3,135,109 units issued and outstanding

General Partner

Accumulated other comprehensive income (loss)

Total equity

Total liabilities and equity

$

$

(1)

Financial information prior to the closing of the drop-down transactions has been retroactively adjusted for certain assets acquired from Landmark and affiliates as the transactions are between entities under common control.   These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2016 filed with the Securities and Exchange Commission on February 23, 2017.

Available Tenant

Leased Tenant

Sites(1)

Sites

Average

Average

Average

Remaining

Remaining

Monthly

Quarterly

Percentage

Number of

Property

Lease

Tenant Site

Effective Rent

Rental

of Quarterly

Infrastructure

Interest

Term

Occupancy

Per Tenant

Revenue

Rental

Real Property Interest

Locations(1)

Number

(Years)

Number

(Years)(2)

Rate(3)

Site(4)(5)

(in thousands)(6)

Revenue(6)

Tenant Lease Assignment with Underlying Easement

Wireless Communication

(7)

$

%  

Outdoor Advertising

(7)

%  

Renewable Power Generation

(7)

%  

Subtotal

(7)

$

%  

Tenant Lease Assignment only(8)

Wireless Communication

$

%  

Outdoor Advertising

%  

Subtotal

$

%  

Tenant Lease on Fee Simple

Wireless Communication

(7)

$

%  

Outdoor Advertising

(7)

%  

Renewable Power Generation

(7)

%  

Subtotal

(7)

$

%  

Total 

(9)

$

%  

Aggregate Portfolio

Wireless Communication

%  

$

$

%  

Outdoor Advertising

%  

%  

Renewable Power Generation

%  

%  

Total

(9)

%  

$

$

%  

(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 December 31, 2016 were 4.0, 8.4, 20.0 and 5.4 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 December 31, 2016.  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 68 years.

Three Months Ended December 31, 

Year ended December 31, 

2016

2015

2016

2015

Reconciliation of EBITDA and Adjusted EBITDA to Net Income

Net income

$

$

$

$

Interest expense

Amortization expense

EBITDA

$

$

$

$

Impairments

Acquisition-related

Unrealized (gain) loss on derivatives

Realized loss on derivatives

 —

Loss on early extinguishment of debt

 —

Gain on sale of real property interests

 —

Unit-based compensation

 —

Straight line rent adjustments

Amortization of above- and below-market rents, net

Deemed capital contribution to fund general and administrative expense reimbursement(2)

Adjusted EBITDA

$

$

$

$

Reconciliation of EBITDA, Adjusted EBITDA and Distributable Cash Flow to Net Cash Provided by Operating Activities

Net cash provided by operating activities

$

$

$

$

Unit-based compensation

 —

Unrealized gain (loss) on derivatives

Loss on early extinguishment of debt

 —

Amortization expense

Amortization of above- and below-market rents, net

Amortization of deferred loan costs and discount on secured notes

Receivables interest accretion

Impairments

Gain on sale of real property interests

 —

Allowance for doubtful accounts and investments in receivables

 —

 —

Working capital changes

Net income

$

$

$

$

Interest expense

Amortization expense

EBITDA

$

$

$

$

Less:

Unrealized gain on derivatives

 —

Gain on sale of real property interests

 —

Straight line rent adjustment

Amortization of above- and below-market rents, net

Add:

Impairments

Acquisition-related

Unrealized loss on derivatives

 —

 —

 —

Realized loss on derivatives

 —

Loss on early extinguishment of debt

 —

Unit-based compensation

 —

Deemed capital contribution to fund general and administrative expense reimbursement(2)

Adjusted EBITDA

$

$

$

$

Less:

Expansion capital expenditures

Cash interest expense

Distributions to preferred unitholders

 —

 —

Add:

Borrowings and capital contributions to fund expansion capital expenditures

Distributable cash flow

$

$

$

$

(1)

Under the omnibus agreement that we entered into with Landmark at the closing of our initial public offering, 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 the greater of $162,500 and 3% of our revenue during the preceding 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 $80.0 million and (ii) November 19, 2019. 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 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.

For the Three Months Ended December 31, 

2016

2015

Landmark

Drop-down

Landmark

Drop-down

Infrastructure

Assets

Consolidated

Infrastructure

Assets

Consolidated

Partners LP

Predecessor

Results

Partners LP

Predecessor

Results

Revenue:

Rental revenue

$

$

$

$

$

$

Interest income on receivables

Total revenue

Expenses:

Management fees to affiliate

 —

 —

 —

 —

Property operating

 —

General and administrative

 —

 —

Acquisition-related

Amortization

Impairments

 —

 —

Total expenses

Other income and expenses

Interest expense

 —

Loss on early extinguishment of debt

 —

 —

 —

 —

Realized loss on derivatives

 —

 —

 —

 —

Unrealized gain (loss) on derivatives

 —

Gain on sale of real property interests

 —

 —

 —

 —

Total other income and expenses

 —

Net income (loss)

$

$

$

$

$

$

Add:

Interest expense

 —

Amortization expense