Q1 2025 Results - Site Rental Revenues decreased to $1,011 million, a decrease of $57 million or 5% compared to Q1 2024's $1,068 million[12] - Adjusted EBITDA decreased to $722 million, a decrease of $32 million or 4% compared to Q1 2024's $754 million[12] - AFFO decreased to $479 million, a decrease of $5 million or 1% compared to Q1 2024's $484 million[12] - Organic Contribution to Site Rental Billings, excluding the impact of Sprint Cancellations, was 51%[12] Full Year 2025 Outlook - The company affirmed its full year 2025 Outlook, which includes 45% tower organic growth, excluding the impact of Sprint Cancellations[7] - Site Rental Revenues are projected to be $3,987 million to $4,032 million, representing a decrease of 6% compared to 2024 actuals of $4,268 million[15] - Adjusted EBITDA is projected to be $2,755 million to $2,805 million, representing a decrease of 9% compared to 2024 actuals of $3,035 million[15] - AFFO is projected to be $1,770 million to $1,820 million, representing a decrease of 8% compared to 2024 actuals of $1,980 million[15] Fiber Business Sale and Future Outlook - The company is on track to successfully close the Fiber business sale in the first half of 2026[7] - Estimated Annual AFFO at the anticipated close of the Fiber Business sale is projected to be $2,265 million to $2,415 million[22] - This estimate includes a reduction to interest expense of $210 million to $260 million from debt repayment and an AFFO impact from revenue growth, interest expense from ongoing operations, and standalone SG&A adjustment of $250 million to $370 million[22]

Financial Performance - Crown Castle signed a definitive agreement to sell its small cells and fiber solutions businesses for an aggregate of $8.5 billion, subject to closing adjustments[16]. - The company reported a period-end closing price of $104.23 per share for Q1 2025, with dividends paid per common share remaining at $1.57[28]. - Crown Castle's market value of outstanding common shares at period end was $45.385 billion[28]. - Site rental revenues for Q1 2025 reached $1,070 million, a decrease of 5.3% compared to the prior year[63]. - Total net revenues for Q1 2025 were $1,061 million, a decrease of 4.8% from $1,114 million in Q1 2024[141]. - Net loss for Q1 2025 was $464 million, compared to a net income of $311 million in Q1 2024[141]. - The company reported a significant loss from discontinued operations of $748 million in Q1 2025, compared to a gain of $17 million in Q1 2024[141]. - Adjusted EBITDA for Q1 2025 was $722 million, down from $777 million in Q4 2024[182]. - FFO for Q1 2025 was $451 million, compared to $483 million in Q4 2024, reflecting a decrease of 6.6%[190]. - AFFO for Q1 2025 was $479 million, a decline from $523 million in Q4 2024, representing a decrease of 8.4%[190]. Operational Metrics - The company operates over 40,000 towers and approximately 105,000 small cells, with a focus on maximizing recurring site rental cash flows from existing tenants[14][15]. - The number of towers as of March 31, 2025, was 40,000, with an average of 2.4 tenants per tower[71]. - Remaining contracted tenant receivables amounted to $30 billion, with a weighted average remaining contract term of 6 years[71]. - T-Mobile accounted for 40% of Q1 2025 LQA site rental revenues, followed by AT&T at 27% and Verizon at 21%[86]. - The total number of towers owned is 11,960, representing 30% of the total portfolio[97]. Future Outlook - Full Year 2025 Outlook for site rental billings is projected to be between $3,885 million and $3,915 million[42]. - Adjusted EBITDA for Full Year 2025 is expected to range from $2,755 million to $2,805 million[42]. - Net income (loss) for Full Year 2025 is forecasted to be between $65 million and $345 million, translating to diluted net income (loss) per share of $0.15 to $0.79[42]. - Projected site rental revenues for 2025 are estimated at $3,016 million, increasing to $4,343 million by 2029[90]. - Ground lease expenses for 2025 are projected to be $553 million, increasing to $772 million by 2029[96]. Debt and Financial Health - As of March 31, 2025, total secured debt amounts to $1,749 million with a weighted average interest rate of 4.1%[104]. - Total unsecured debt stands at $22,778 million, reflecting a weighted average interest rate of 3.9%[104]. - The company's net debt is reported at $24,288 million, with a market capitalization of $45,385 million, resulting in a firm value of $69,673 million[104][109]. - The total net leverage ratio is 5.9x, below the covenant requirement of ≤ 6.50x, indicating strong financial health[119]. - The debt service coverage ratio for the 2015 and 2018 Tower Revenue Notes is 17.6x, significantly above the required > 1.75x[119]. - Fixed rate debt constitutes 89% of total debt, with a weighted average interest rate of 3.7%[127]. Strategic Initiatives - Crown Castle's strategy includes returning a meaningful portion of cash generated by operating activities to stockholders through dividends and share repurchases[20]. - The company aims to invest capital efficiently to grow cash flows and stockholder distributions, including constructing and acquiring new towers[22]. - The Fiber Business is expected to incur a loss on disposal of $830 million in Q1 2025[185]. - The Strategic Fiber Transaction is expected to close in the first half of 2026, with an aggregate value of $8.5 billion[178]. - The company anticipates continued focus on restructuring plans to improve operational efficiency moving forward[197]. Restructuring and Discontinued Operations - The results of the Fiber Business are classified as discontinued operations, with the company focusing on its tower operations as the sole reportable segment[17]. - The company reported a net loss from discontinued operations of $5,077 million in Q1 2025[182]. - The company recorded restructuring charges of $3 million for Q1 2025, with total restructuring charges of $70 million for the full year 2024[197]. - The company expects restructuring charges for 2025 to be between $0 million and $6 million[183].

Core Insights - Crown Castle Inc. reported solid operational and financial results for Q1 2025, with a focus on organic growth in its tower business, achieving 5% growth excluding Sprint Cancellations [3][10] - The company maintains its full-year 2025 Outlook, emphasizing a strategic shift towards maximizing shareholder value through the sale of its small cells and fiber solutions businesses [3][11] - The anticipated reduction in annualized dividend per share to $4.25 reflects a revised capital allocation framework aimed at balancing returns to shareholders with financial flexibility [3][10] Financial Performance - Site rental revenues for Q1 2025 were $1,011 million, a decrease of $57 million or 5.3% from Q1 2024 [6][51] - Net income for Q1 2025 was a loss of $464 million, compared to a profit of $311 million in Q1 2024, largely due to an $830 million loss related to the Fiber Business sale [6][10] - Adjusted EBITDA for Q1 2025 was $722 million, down from $754 million in Q1 2024, reflecting lower site rental revenue contributions [6][10] Outlook and Strategic Focus - The full-year 2025 Outlook for site rental revenues is projected between $3,987 million and $4,032 million, with site rental billings growth expected to be 4.5% excluding Sprint Cancellations [12][13] - The company aims to enhance operational excellence and customer service in its tower business to drive long-term shareholder value [3][10] - Crown Castle's capital expenditures for Q1 2025 were $40 million, indicating a $7 million decrease from the previous year, with a focus on sustaining capital expenditures [10][51] Market Position and Business Strategy - Following the sale of the Fiber Business, Crown Castle will be positioned as the only public pure-play tower company in the U.S., which is viewed as a prime market for tower ownership [3][10] - The company ended Q1 2025 with approximately 89% fixed-rate debt and a weighted average debt maturity of over 6 years, indicating a strong balance sheet [10][11] - The strategic focus on maximizing top- and bottom-line results in the tower business is expected to create unique value opportunities post-sale [3][10]

Core Viewpoint - Crown Castle (CCI) is expected to report a significant decline in quarterly earnings and revenues, with analysts predicting earnings of $1.02 per share, a 40.7% decrease year-over-year, and revenues of $1.04 billion, reflecting a 36.6% decline compared to the same period last year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been adjusted upward by 0.3%, indicating a reassessment of initial projections by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are strongly linked to short-term stock price performance [3]. Revenue Projections - Analysts project 'Revenues- Site rental' to reach $1.09 billion, a decrease of 31.2% from the prior-year quarter [5]. - 'Services and other revenues- Towers' are expected to be $44.60 million, down 3.1% year-over-year [5]. - 'Site rental revenues- Towers' are estimated at $990.16 million, indicating a 7.3% decline from the previous year [5]. - 'Revenues- Services and other' are projected at $46.85 million, reflecting an 11.6% decrease [6]. - 'Revenues- Fiber' are expected to be $484.33 million, down 8.1% from the year-ago quarter [6]. - 'Site rental revenues- Fiber' are estimated at $481.80 million, a 7.4% decline year-over-year [6]. - The consensus estimate for 'Revenues- Towers' stands at $1.04 billion, indicating a 7% decrease from the prior-year quarter [7]. Gross Margin Estimates - The estimated 'Site rental- Gross margin' is $893.90 million, down from $1.17 billion in the same quarter last year [8]. - 'Site rental gross margin- Towers' is expected to be $751.13 million, compared to $829 million a year ago [8]. - 'Services and other- Gross margin' is forecasted to reach $20.96 million, slightly down from $21 million in the previous year [8]. Market Performance - Crown Castle shares have decreased by 1.8% over the past month, contrasting with a 4.8% decline in the Zacks S&P 500 composite [9].

REIT Performance Overview - The REIT sector experienced a total return of -4.92% in March, underperforming the Dow Jones Industrial Average (-4.1%) but faring better than the S&P 500 (-5.6%) and NASDAQ (-8.1%) [1] - The Vanguard Real Estate ETF (VNQ) outperformed the average REIT with a return of -2.58% in March and a year-to-date return of +2.69% compared to -3.36% for the average REIT [1] - The spread between the 2025 FFO multiples of large cap REITs (18.1x) and small cap REITs (12.9x) increased, indicating that investors are paying 40.3% more for each dollar of FFO from large cap REITs [1] Performance by Market Capitalization - Micro cap REITs underperformed significantly with a return of -16.19%, while large cap REITs returned -2.04%, mid caps -2.63%, and small caps -4.16% [3] - Year-to-date, large cap REITs have outperformed small caps by 568 basis points [3] Property Type Performance - Only 33.33% of REIT property types had a positive total return in March, with a 14% spread between the best (Casino +2.40%, Single Family Housing +2.00%) and worst performing property types (Office -11.60%, Hotel -11.11%) [5] - In the first quarter of 2025, Data Centers (-16.35%), Office (-15.95%), and Hotels (-15.74%) were the worst performers, while Health Care (+10.87%), Casino (+10.24%), and Timber (+9.56%) led the sector [6] Average Returns by Property Type - The average returns for various property types in March were as follows: - Office: -11.60% - Hotel: -11.11% - Casino: +2.40% - Single Family Housing: +2.00% - REIT Average: -4.92% [6] Price/FFO Multiples - The average P/FFO for the REIT sector decreased from 14.3x to 13.9x in March, with 27.8% of property types experiencing multiple expansion and 66.7% seeing contraction [8] - Data Centers (25.2x), Land (23.8x), and Multifamily (20.5x) have the highest average multiples, while Hotels (6.2x) and Offices (8.4x) are the only types with single-digit FFO multiples [8] Individual Security Performance - Peakstone Realty Trust (PKST) was the best performing REIT in March with a return of +13.10%, followed by Crown Castle (CCI) at +12.44% and CareTrust REIT (CTRE) at +11.77% [10] - Wheeler REIT (WHLR) continued its decline with a staggering -75.88% return in March, marking a -95.31% drop in the first three months of 2025 [11] Dividend Yield Insights - High dividend yields are a significant attraction for investors in the REIT sector, especially as many REITs are trading below their NAV, leading to opportunities for attractive yields [15]

Company Overview - Crown Castle Inc. owns, operates, and leases over 40,000 cell towers and approximately 90,000 route miles of fiber, supporting small cells and fiber solutions across major U.S. markets [3] Upcoming Financial Results - Crown Castle plans to release its first quarter 2025 results on April 30, 2025, after market close [1] - A conference call is scheduled for the same day at 5:00 p.m. eastern time [1] Conference Call Details - The conference call will be accessible via a live audio webcast on the Crown Castle website [2] - Participants can join the call by dialing 833-816-1115 (Toll Free) or 412-317-0694 (International) at least 30 minutes prior to the start time [2] - A replay of the webcast will be available on the Investor page of Crown Castle's website until April 30, 2026 [2]

Daniel Schlanger, Current Executive Vice President and CFO, Appointed Interim President and CEO Search Underway to Identify Successor CEO Reaffirms All Recently Announced Financial Guidance and Capital Allocation Policies Highly Confident in Value-Maximizing Transformation into a Pure-Play US Tower Company HOUSTON, March 24, 2025 (GLOBE NEWSWIRE) -- Crown Castle Inc. (NYSE: CCI) (“Company” or “Crown Castle”) today announced that the Company’s Board of Directors (Board) has appointed Dan Schlanger, Executiv ...

Crown Castle Inc. (CCI) shares have rallied 13.8% after the tower REIT announced on March 13 that it had reached an agreement to sell its small cells and fiber solutions business for $8.5 billion, following a strategic review of its Fiber segment. The Fiber segment transaction, which is expected to be closed in the first half of 2026, subject to certain closing norms and government and regulatory nods, will see EQT Active Core Infrastructure fund acquiring the small cells business and Zayo Group Holdings In ...

HOUSTON, March 17, 2025 (GLOBE NEWSWIRE) -- Crown Castle Inc. (NYSE: CCI) ("Crown Castle") announced today the appointment of Katherine Motlagh to its board of directors. Ms. Motlagh’s appointment is effective today, March 17, 2025. Ms. Motlagh previously served as CFO of CyrusOne LLC and CFO of the Europe, Africa and Latin America regions of American Tower Corporation. She currently serves on the board of directors of EVgo, Inc., where she serves as Chair of the audit committee. “Katherine brings extensive ...

Core Insights - Crown Castle Inc. has appointed Sunit Patel as the new Executive Vice President and Chief Financial Officer, effective April 1, 2025, following his departure from the Board of Directors on March 17, 2025 [1][2] Group 1: Appointment Details - Sunit Patel brings over 30 years of experience in senior finance roles across telecommunications, energy, and technology sectors, making him well-suited to lead Crown Castle during its transition to a pure-play tower company [2][3] - Patel's previous roles include serving as CFO of Ibotta Inc. and holding significant positions at CenturyLink (now Lumen) and T-Mobile, where he was involved in the $26.5 billion merger with Sprint [3][4] Group 2: Company Overview - Crown Castle operates more than 40,000 cell towers and approximately 90,000 route miles of fiber, providing essential communications infrastructure across major U.S. markets [6]