- RADI's small size ($1.4bn market cap) puts RADI in a position to pursue almost perpetual growth in a fragmented market (RADI owns 6.2k sites vs. >5mn sites worldwide).
- I estimate that RADI's cash earnings will grow by a CAGR of 17.3% over the next five as mobile data consumption is expected to grow 20-30% annually through 2026.
- RADI's ground lease equity carries the lowest risk in the communications capital stack and has WA rent escalators that are nearly double that of traditional net lease REITs.
- As the US is experiencing the highest inflation level of the last 40 years, 78% of RADI's rental cash flows are protected by floating leases that are based on CPI or a similar inflation metric.
- Given strong industry tailwinds and high barriers to replicate RADI's strategy, RADI's current 19% discount to its intrinsic value provides a low risk point of entry.
For further details see:
Buy Radius: The Highest Growth And Lowest Risk In Communications Infrastructure