Core Insights - Real Estate Investment Trusts (REITs) are designed to provide income by distributing at least 90% of their earnings to shareholders to maintain tax advantages [1] - REITs can offer both dividends and potential stock price appreciation, with analysts projecting significant earnings growth for certain REITs in fiscal 2025 [2] Realty Income Corporation - Realty Income Corporation offers a strong dividend yield of 5.2% with an expected adjusted EPS growth of 21% in 2025 [2] - The company has a 32-year track record of increasing dividends, with a current annual dividend of $3.16 and a payout ratio of 292.59% [3] - Analysts predict an 8% average price target upside, with UBS Group projecting a 19% upside to $72 [4] Park Hotels and Resorts - Park Hotels and Resorts has a dividend yield of 7.19% and an annual dividend of $1.00, with a 10.06% annualized 3-year dividend growth [6] - Despite a total return of -4% this year, analysts expect adjusted EPS to grow by 60% in 2025 and 15% in 2026 [5][6] - The company’s forward-looking dividend yield is projected at 9%, influenced by a recent special dividend [7] Crown Castle - Crown Castle has a dividend yield of 5.82% and an annual dividend of $6.26, with an 8.29% annualized 3-year dividend growth [9] - The company is expected to recover in 2025 with an adjusted EPS growth of 18%, despite a projected 37% drop in the current year [9][10] - Crown Castle has consistently raised its annual dividend since 2015, although it currently holds a "Hold" rating among analysts [10][11]

Revenue and Income - Site rental revenues represented 96% of the consolidated net revenues for Q3 2024, with 67% from the Towers segment and 33% from the Fiber segment[86]. - Net income increased by $38 million, or 14%, to $303 million for the third quarter of 2024 compared to $265 million in the prior year[115]. - For the nine months ended September 30, 2024, net income was $865 million, a decrease of 21.4% from $1.1 billion in the same period of 2023[131]. - Site rental revenues increased by $16 million, or 1%, to $1,593 million for the three months ended September 30, 2024, compared to the same period in 2023[101]. - For the nine months ended September 30, 2024, total site rental revenues decreased by $168 million, or 3%, to $4,761 million compared to the same period in 2023[119]. Adjusted EBITDA and Expenses - Adjusted EBITDA rose by $28 million, or 3%, to $1,075 million for the third quarter of 2024[116]. - Adjusted EBITDA decreased by $222 million, or 7%, from the first nine months of 2023 to the first nine months of 2024[132]. - Selling, general and administrative expenses decreased by $23 million, or 13%, to $153 million for the third quarter of 2024[108]. - Selling, general and administrative expenses decreased by $41 million, or 7%, to $540 million for the first nine months of 2024 compared to $581 million in the same period of 2023[124]. Capital Expenditures and Investments - The company had discretionary capital expenditures of $874 million for the nine months ended September 30, 2024, primarily for constructing new communications infrastructure[96]. - Discretionary capital expenditures for the first nine months of 2024 totaled $836 million, compared to $961 million in the same period of 2023[147]. - The company expects sustaining capital expenditures to remain at approximately 1% of net revenues for the full year 2024, consistent with historical levels[96]. - The company plans to continue investing in small cells and fiber construction as part of its discretionary investments strategy[135]. Debt and Financial Position - As of September 30, 2024, the company's outstanding debt had a weighted-average interest rate of 3.9% and a weighted-average maturity of approximately seven years[166]. - As of October 28, 2024, the company had $1.1 billion outstanding under its Commercial Paper Program[152]. - The company has $6.96 billion in undrawn availability under its 2016 Revolver as of October 28, 2024[151]. - The company targets a leverage ratio of approximately five times Adjusted EBITDA[136]. Future Expectations and Guidance - The company expects to realize $105 million in labor and facilities cost savings in 2024 due to the 2023 Restructuring Plan[96]. - The company expects common stock dividends over the next 12 months to total at least $6.26 per share, or approximately $2.7 billion[94]. - The company anticipates a year-over-year reduction in site rental revenues due to payments received from T-Mobile in 2023 compared to 2024 related to canceled Sprint leases[96]. - The company expects to incur an asset write-down charge of $125 to $150 million in Q4 2024 due to the cancellation of approximately 7,000 greenfield small cell nodes[96]. Operational Performance - Net cash provided by operating activities was $2.1 billion for the nine months ended September 30, 2024[94]. - Cash provided by operating activities was $2.1 billion for the first nine months of 2024, down by $192 million, or 9%, compared to the same period in 2023[143]. - Net cash used for investing activities was $947 million, a decrease of $208 million, or 18%, from the first nine months of 2023[144]. - Approximately three-fourths of site rental revenues for the nine months ended September 30, 2024, were derived from T-Mobile, AT&T, and Verizon Wireless[94]. Restructuring and Charges - Restructuring charges for the third quarter of 2024 were $48 million, a decrease of $24 million, or 33%, from the prior year[112]. - Restructuring charges for the first nine months of 2024 were $104 million, an increase of $32 million, or 44%, compared to the same period in 2023[128]. - The company incurred asset write-down charges of $15 million for the three months ended September 30, 2024, compared to $8 million in the same period of 2023[161].

Financial Data and Key Metrics Changes - For Q3 2024, the company reaffirmed its full-year 2024 outlook for adjusted EBITDA and AFFO, expecting consolidated organic revenue growth of approximately 5%, with 4.5% growth in towers, 10% in small cells, and 2% in fiber solutions [3][4][21] - Adjusted EBITDA increased by 3% compared to Q3 2023, driven by revenue growth and cost savings, despite being partially offset by non-cash items and one-time costs [21][22] - The company lowered its 2024 outlook for net income due to a projected asset write-off of $125 million to $150 million related to reductions in the small cell business [18][19] Business Line Data and Key Metrics Changes - The tower business experienced a growth of 4.3% in Q3, while small cells saw a significant growth of 25%, although this included $15 million of non-recurring revenues [20][22] - Fiber solutions delivered 2% organic growth, exceeding expectations despite a $4 million negative adjustment related to prior period revenue [20][15] Market Data and Key Metrics Changes - U.S. wireless data usage surpassed 100 trillion megabytes in 2023, marking a 36% increase from the previous year, indicating robust growth in mobile data traffic [5][6] - The company anticipates that ongoing demand for data will drive significant network investments by customers, benefiting its towers, small cells, and fiber assets [6][7] Company Strategy and Development Direction - The company is focused on maximizing shareholder value through operational improvements and strategic reviews, including potential divestitures or partnerships [16][25] - An organizational change in the tower business was announced, with Cathy Piche returning as the leader, aiming to strengthen market position and relationships with carrier customers [7][8] - The company is digitizing its tower portfolio using drone technology to enhance project management capabilities and improve customer service [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term demand for mobile and broadband services, driven by the essential nature of mobile devices and increasing data consumption [5][6] - The company is optimistic about the revised operational strategy, which aims to enhance profitability and capitalize on positive demand trends [15][24] Other Important Information - The company has mutually agreed to cancel approximately 7,000 contracted small cell nodes, which were deemed to have high deployment costs, resulting in an expected savings of about $800 million in future capital expenditures [19][24] - The backlog now stands at approximately 40,000 nodes, with a higher proportion of colocation nodes, which are expected to generate better returns [19][13] Q&A Session Summary Question: Impact of 7,000 node cancellations - Management confirmed that there were no early termination fees associated with the cancellations, as both parties found mutual value in the decision [26][27] Question: Strategic review timeline - Management indicated that the strategic review is complex and aims to ensure the best long-term outcomes for shareholders, but no specific timeline was provided [29][30] Question: Carrier activity levels and future densification - Management noted that carrier activity is steady, with ongoing discussions about capital budgets and network densification needs [33][35] Question: Returns on remaining greenfield nodes - Management stated that the remaining greenfield nodes meet a higher return threshold than previously set, with colocation nodes expected to yield around 20% incremental returns [40][41] Question: Future growth in small cells - Management expressed confidence in the structural case for small cells, anticipating continued demand as carriers complete their mid-band deployments [59][60] Question: Fiber business opportunities - Management clarified that while there are opportunities in the fiber space, the company is not pursuing certain types of fiber builds that do not align with its strategic focus [62][63]

Core Insights - Crown Castle (CCI) reported $1.65 billion in revenue for Q3 2024, a year-over-year decline of 0.9%, with an EPS of $1.84 compared to $0.61 a year ago, indicating a significant improvement in earnings despite the revenue drop [1] - The reported revenue exceeded the Zacks Consensus Estimate of $1.64 billion by 1.02%, while the EPS surpassed the consensus estimate of $1.80 by 2.22% [1] Financial Performance Metrics - Total Ending Towers: 40,000, slightly below the average estimate of 40,058 [3] - Site Rental Revenues: $1.59 billion, exceeding the average estimate of $1.58 billion, reflecting a 1% increase year-over-year [3] - Site Rental Revenues from Towers: $1.06 billion, slightly below the estimate of $1.08 billion, showing a 1% decrease year-over-year [3] - Site Rental Revenues from Fiber: $530 million, surpassing the estimate of $503.32 million, representing a 5.4% increase year-over-year [3] - Revenues from Services and Other: $59 million, exceeding the average estimate of $52.75 million, but reflecting a significant decline of 34.4% year-over-year [3] - Net Earnings Per Share (Diluted): $0.70, above the average estimate of $0.64 [3] - Gross Margin for Services and Other: $31 million, exceeding the average estimate of $21.12 million [3] - Gross Margin for Site Rental: $1.17 billion, slightly above the average estimate of $1.16 billion [3] Stock Performance - Crown Castle's shares have returned -4.4% over the past month, contrasting with the Zacks S&P 500 composite's +3.5% change [4] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [4]

Crown Castle (CCI) came out with quarterly funds from operations (FFO) of $1.84 per share, beating the Zacks Consensus Estimate of $1.80 per share. This compares to FFO of $1.77 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an FFO surprise of 2.22%. A quarter ago, it was expected that this operator of wireless communications towers would post FFO of $1.65 per share when it actually produced FFO of $1.62, delivering a surprise of -1.82%. Over the l ...

Exhibit 99.2 Supplemental Information Package and Non-GAAP Reconciliations Third Quarter • September 30, 2024 The pathway to possible. CrownCastle.com Crown Castle Inc. Third Quarter 2024 1 | --- | --- | |-------------------------------------------------------------------------------------------------------------|-------| | | Page | | Company Overview | | | Company Profile | 3 | | Strategy | 3 | | General Company Information | 4 | | Asset Portfolio Footprint | 4 | | Historical Common Stock Data | 4 | | Annu ...

Wall Street analysts forecast that Crown Castle (CCI) will report quarterly earnings of $1.80 per share in its upcoming release, pointing to a year-over-year increase of 1.7%. It is anticipated that revenues will amount to $1.64 billion, exhibiting a decline of 1.9% compared to the year-ago quarter. The consensus EPS estimate for the quarter has undergone an upward revision of 0.2% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed t ...

Shares of Crown Castle (CCI) have been struggling lately and have lost 5.9% over the past week. However, a hammer chart pattern was formed in its last trading session, which could mean that the stock found support with bulls being able to counteract the bears. So, it could witness a trend reversal down the road. While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall Street analysts about the future earni ...

Crown Castle's dividend could be on shaky ground. Crown Castle (CCI -1.29%) pays a towering dividend. The real estate investment trust (REIT) focused on data and communications infrastructure yields more than 5%. That puts it near the top of the S&P 500, where the average dividend yield is less than 1.5%. Crown Castle had been growing its payout at a healthy clip until pressing pause a couple of years ago because of several headwinds. The infrastructure REIT had planned to restart its dividend growth engine ...

You won't be charged a penny during the free trial, so you have nothing to lose and everything to gain. If you want full access to our Portfolio and all our current Top Picks, feel free to join us at High Yield Landlord for a 2-week free trial. REITs have rallied in recent weeks and as a result, some investors seem to think that it is now too late to invest in them. He is the leader of the investing group High Yield Landlord , where he shares his real-money REIT portfolio and transactions in real-time. Feat ...