Company Overview - The company focuses on maximizing shareholder value by growing long-term, high-quality dividends[12] - The company aims for a long-term annual dividend per share growth target of 7-8%[14,19] - The company offers an attractive dividend yield of over 6%[19] Infrastructure Assets - The company has over 40,000 towers[11,14] - The company has approximately 115,000 small cells[11] - The company has around 85,000 route miles of fiber[11,14] Financial Stability and Growth - The company has $39 billion in remaining contracted tenant receivables with a weighted average of 6 years of remaining contracted lease payments[20] - As of September 30, 2023, the weighted average coupon was 3.8% and the weighted average life was 7.6 years[39] - As of September 30, 2023, 86% of the debt was fixed and 93% was unsecured[39] - The company's cash site rental revenues have grown from $238 million in 2000 to $3,814 million in 2023[43] - The company's yield has increased from 3.3% in 2000 to 12.7% in 2023[43]

Core Insights - Crown Castle (CCI) shares have increased by 10.5% year to date, outperforming the industry average of 3% [1] - The company is well-positioned to benefit from the anticipated rise in wireless data consumption and ongoing network expansion efforts by service providers [1][3] - Crown Castle's long-term leases and strong tenant base ensure stable revenues, while a solid balance sheet supports future growth [1][5] Financial Performance - On May 22, 2025, CCI announced a quarterly cash dividend of $1.0625 per share, a 32.1% decrease from the previous payout of $1.565 per share [2] - The company reported a 5% consolidated organic growth in the first quarter of 2025, driven by increased demand across its tower business portfolio [4] - As of March 31, 2025, CCI had cash and cash equivalents of $60 million and a net debt to last quarter annualized adjusted EBITDA ratio of 5.9X [8] Market Position and Growth Drivers - The exponential growth in mobile data usage and the deployment of 5G networks are driving significant investments in network infrastructure by carriers [3][4] - Crown Castle's portfolio includes over 40,000 towers in the top 100 trading areas in the U.S., positioning the company to capitalize on the growing demand for wireless services [3] - The company benefits from long-term wireless tenant contracts with initial terms of five to 15 years, providing recurring revenues and embedded growth through contractual escalators [5] Liquidity and Creditworthiness - CCI has $7 billion of undrawn available credit under its senior unsecured revolving credit facility as of March 31, 2025 [9] - The company holds investment-grade credit ratings from major agencies, facilitating access to debt markets on favorable terms [9]

Investment Rating - The report assigns an "In-Line" industry view for North American REITs [4] Core Insights - Apartment REITs are experiencing fundamental tailwinds with declining deliveries and solid job growth, although there are concerns about potential peaking of new lease rates [2] - Senior housing has shown strong demand, with companies like WELL and AHR actively pursuing acquisitions [6][10] - Industrial fundamentals are better than expected, with a notable slowdown in construction starts, which may serve as a tailwind [11] - Retail leasing remains robust, with capital deployment being a key differentiator among companies [6][39] - The healthcare sector is seeing strong demand in senior housing, with significant acquisition activity reported [10][57] Apartment REITs - AvalonBay Communities reported a +2.3% year-over-year effective rent change for April and May, with occupancy improving to 96.3% [21] - Camden Property Trust is actively recycling capital and has made recent acquisitions [21] - Essex Property Trust noted that job postings are near historical averages, indicating growth potential [22] Senior Housing - Senior housing demand is robust, with occupancy growth exceeding expectations [10][57] - WELL announced $6.2 billion in acquisitions and loan funding through April [57] Industrial - Prologis and EastGroup Properties reported better-than-expected fundamentals, with a focus on occupancy over pricing [11][48] - Construction starts have decreased by 50% from pre-COVID levels, which may benefit the sector [11] Retail - Simon Property Group noted solid leasing activity despite tariff uncertainties [39] - Kimco Realty reported strong leasing activity and has raised guidance due to better-than-expected bad debt collection [39] Healthcare - The healthcare sector is seeing strong demand in senior housing, with AHR acquiring a 187-unit property for $65 million [57] - Ventas raised its 2025 normalized FFO per share guidance by 7% year-over-year [57] Single Family Rentals - American Homes 4 Rent reported a 4.3% growth in new leases for May, with a strong development pipeline [30] - Invitation Homes launched a developer lending program expected to generate $200-300 million annually [31] Storage - Public Storage and Extra Space Storage are experiencing mixed results, with occupancy gains but soft rental rates [32][34] - National Storage Affiliates is targeting positive same-store revenue growth by year-end [36] Office - Highwoods Properties is on track to meet leasing targets, with a strong pipeline of new and renewal prospects [61] - Paramount Group is exploring joint venture opportunities to enhance its portfolio [62] Triple Net REITs - Agree Realty is focusing on recession-resistant retailers and has implemented AI to streamline operations [64] - Realty Income maintains a strong balance sheet and is expanding its European presence [69]

Core Viewpoint - Crown Castle Inc. is positioned as a digital infrastructure company, focusing on enhancing its asset portfolio and strategic direction in response to recent developments in the industry [8]. Group 1: Company Overview - Crown Castle has experienced significant changes over the past nine months, indicating a dynamic approach to its operations and market positioning [9]. Group 2: Leadership and Participation - The conference call features key company participants, including Interim CEO Daniel K. Schlanger and CFO Sunit Patel, highlighting the leadership's engagement with investors and analysts [2][3].

Summary of Crown Castle (CCI) 2025 Conference Call Company Overview - **Company**: Crown Castle (CCI) - **Industry**: Digital Infrastructure, specifically focused on tower and fiber solutions - **Key Personnel**: Interim CEO Dan Schlanger, CFO Sunit Patel Core Business Model - Crown Castle operates as a digital infrastructure company primarily generating revenue from owning and leasing out **40,000 towers** across the United States [5][10] - The company’s business model involves renting space on towers to major wireless carriers for antenna installation, facilitating wireless communication [5][6] - The company also has a fiber segment, which includes small cells, but is transitioning to focus solely on the tower business [10][12] Financial Performance and Growth - The company anticipates a **4.5% revenue growth** for the tower business in 2025, driven by increasing wireless data demand, which is projected to grow **20-30% annually** [9][10] - The first tenant on a tower typically yields **2-3% returns**, while additional tenants can increase returns to **mid to high teens** [8] - Crown Castle has a fixed cost structure, allowing for high flow-through margins as revenue increases without significant additional costs [11] Strategic Focus and Divestiture - Crown Castle is divesting its fiber and small cell business to concentrate on being a **pure play US tower company**, which is expected to close in the first half of 2026 [10][13] - The divestiture is aimed at improving operational efficiency and capital allocation, allowing the company to focus on high-margin tower operations [15][19] Capital Allocation and Financial Flexibility - The company plans to utilize **75-80% of its cash generation** for dividends, with the remaining **20-25%** for share repurchases and debt reduction [11][41] - Following the divestiture, Crown Castle aims to maintain a leverage ratio of **6-6.5x**, enhancing financial flexibility while ensuring investment-grade ratings [40][43] Market Position and Competitive Landscape - Crown Castle has long-term contracts (10-15 years) with major carriers, providing significant revenue visibility [27][28] - The company does not perceive low Earth orbit satellites as a competitive threat, as they serve different market needs and have higher latency compared to tower-based services [36][38] - The competitive landscape remains stable, with Crown Castle focusing on maximizing revenue potential through superior customer service and operational efficiency [32][35] Customer Concentration and Revenue Sources - The top three wireless carriers account for approximately **80% of Crown Castle's revenue**, with EchoStar contributing around **5%** through a long-term contract [30][31] - The company expects churn rates to stabilize between **1-2%**, with ongoing demand for tower services driven by competitive pressures among wireless carriers [39] Conclusion and Future Outlook - Crown Castle is optimistic about its future, focusing on the growing demand for wireless data and the potential for cash flow and dividend growth [49] - The company is committed to delivering shareholder value through a clear strategy centered on its core tower business, aiming for attractive risk-adjusted returns [49]

Core Viewpoint - Crown Castle (CCI) has announced a significant reduction in its quarterly cash dividend, reflecting a strategic move to enhance financial flexibility and free cash flow generation amid ongoing changes in its Fiber segment [1][2]. Dividend Announcement - The board of directors declared a quarterly cash dividend of $1.0625 per share, which is a 32.1% decrease from the previous payout of $1.565 per share [1]. - The new dividend will be paid on June 30, 2025, to shareholders of record as of June 12, 2025 [1]. Financial Implications - The annualized dividend payout at the new rate amounts to $4.25 per share, resulting in an annualized yield of 4.19% based on the stock's closing price of $101.52 on May 21, 2025 [2]. - This reduction in dividend is part of the company's strategy to improve free cash flow and financial flexibility, particularly in light of the Fiber segment sale [2]. Historical Context - Crown Castle has only increased its dividend three times in the last five years, raising concerns about the sustainability of its dividend payments [4]. - The company’s shares have gained 9.6% over the past three months, contrasting with a 2% decline in the industry [4]. Comparative Analysis - Other REITs such as VICI Properties and W.P. Carey are highlighted as better-ranked stocks within the sector, with Zacks Rank 2 (Buy) [5]. - The consensus estimate for VICI's 2025 FFO per share has increased to $2.34, while WPC's estimate has been revised upward by 1% to $4.88 [5].

Company Announcement - Crown Castle Inc. will have a presentation at Nareit's REITweek: 2025 Investor Conference on June 4, 2025, at 2:45 p.m. Eastern Time [1] - The presentation will be led by Dan Schlanger, Interim President and CEO, and Sunit Patel, Executive Vice President and CFO, and is expected to last approximately 30 minutes [1] - The live audio webcast will be available on Crown Castle's website and archived for 30 days for replay [1] Company Overview - Crown Castle owns, operates, and leases over 40,000 cell towers and approximately 90,000 route miles of fiber across major U.S. markets [2] - The company's infrastructure connects cities and communities to essential data, technology, and wireless services [2] - Crown Castle's portfolio supports small cells and fiber solutions, facilitating the flow of information, ideas, and innovations [2]

Group 1 - Crown Castle Inc. will have a presentation at Nareit's REITweek: 2025 Investor Conference on June 4, 2025, at 2:45 p.m. Eastern Time [1] - The presentation will be led by Dan Schlanger, Interim President and CEO, and Sunit Patel, Executive Vice President and CFO, and is expected to last approximately 30 minutes [1] - The live audio webcast of the presentation will be available on Crown Castle's website and archived for replay for 30 days [1] Group 2 - Crown Castle owns and operates over 40,000 cell towers and approximately 90,000 route miles of fiber across major U.S. markets [2] - The company's infrastructure supports small cells and fiber solutions, connecting cities and communities to essential data and wireless services [2] - Crown Castle's portfolio plays a crucial role in delivering information, ideas, and innovations to businesses and individuals [2]

[Filing Information](index=1&type=section&id=Filing%20Information) Provides essential details about the Form 10-Q filing, registrant, and securities status [Form 10-Q Details](index=1&type=section&id=Form%2010-Q%20Details) Identifies the document as a Quarterly Report on Form 10-Q for Q1 2025 filed by Crown Castle Inc - The document is a Quarterly Report on Form 10-Q for the period ended March 31, 2025[2](index=2&type=chunk) - The registrant is **CROWN CASTLE INC**[3](index=3&type=chunk) [Registrant Information](index=1&type=section&id=Registrant%20Information) Crown Castle Inc. is a Delaware corporation with its principal executive office in Houston, Texas - State of incorporation: **Delaware**[4](index=4&type=chunk) - Address of principal executive office: **8020 Katy Freeway, Houston, Texas 77024**[4](index=4&type=chunk) - Registrant's telephone number: **(713) 570-3000**[4](index=4&type=chunk) [Securities and Filer Status](index=1&type=section&id=Securities%20and%20Filer%20Status) The company's common stock is listed on the NYSE, and it is classified as a large accelerated filer | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :---------------------------------------- | | Common Stock, $0.01 par value | CCI | New York Stock Exchange | - The registrant is a **Large accelerated filer**[6](index=6&type=chunk) - Number of shares of common stock outstanding at May 7, 2025: **435,458,808**[6](index=6&type=chunk) [Index](index=2&type=section&id=Index) Provides a table of contents for the Form 10-Q, outlining financial information and other disclosures - The report is divided into PART I—FINANCIAL INFORMATION and PART II—OTHER INFORMATION[8](index=8&type=chunk) - PART I includes Financial Statements, Management's Discussion and Analysis, Quantitative and Qualitative Disclosures About Market Risk, and Controls and Procedures[8](index=8&type=chunk) - PART II includes Legal Proceedings, Risk Factors, Other Information, and Exhibits[8](index=8&type=chunk) [Cautionary Language Regarding Forward-Looking Statements](index=2&type=section&id=Cautionary%20Language%20Regarding%20Forward-Looking%20Statements) Identifies forward-looking statements, outlines their scope, and warns of potential differences in actual results - Forward-looking statements are identified by words such as 'estimate,' 'anticipate,' 'project,' 'plan,' 'intend,' 'believe,' 'expect,' 'likely,' 'predicted,' 'positioned,' 'continue,' 'target,' 'seek,' 'focus' and similar expressions[10](index=10&type=chunk) - Examples of forward-looking statements include the full year 2025 outlook, strategy, demand for towers, liquidity, dividends, and the pending sale of the Fiber Business[10](index=10&type=chunk) - Actual results may vary materially from expectations due to various risks, uncertainties, and assumptions, including those described in 'Item 1A. Risk Factors' of the 2024 Form 10-K[11](index=11&type=chunk) [Interpretation](index=3&type=section&id=Interpretation) Defines key terms and references used throughout the Form 10-Q to ensure consistent understanding - The term 'including' means 'including without limitation'[14](index=14&type=chunk) - The terms 'we,' 'our,' 'our company,' 'the company' or 'us' refer to Crown Castle Inc. ('CCI') and its predecessor, and their subsidiaries[14](index=14&type=chunk) - References to 'U.S.' are to the United States of America and Puerto Rico, collectively[14](index=14&type=chunk) [PART I—FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) Presents unaudited condensed consolidated financial statements, notes, and management's discussion and analysis [ITEM 1. FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Provides unaudited condensed consolidated financial statements and notes, explaining accounting policies and items [CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEET%20(Unaudited)) Details the company's financial position as of March 31, 2025, and December 31, 2024, including reclassification of Fiber Business | Metric | March 31, 2025 (Millions) | December 31, 2024 (Millions) | Change (Millions) | | :-------------------------------- | :-------------------------- | :--------------------------- | :---------------- | | Total assets | **$31,760** | **$32,736** | **$(976)** | | Total liabilities | **$33,013** | **$32,869** | **$144** | | Total equity (deficit) | **$(1,253)** | **$(133)** | **$(1,120)** | | Current assets of discontinued operations | **$442** | **$429** | **$13** | | Non-current assets of discontinued operations | **$10,163** | **$10,968** | **$(805)** | | Current liabilities of discontinued operations | **$689** | **$710** | **$(21)** | | Non-current liabilities of discontinued operations | **$1,518** | **$1,534** | **$(16)** | [CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited)](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20INCOME%20(LOSS)%20(Unaudited)) Reports the company's financial performance for Q1 2025 and 2024, highlighting revenues, expenses, and net income (loss) | Metric | Three Months Ended March 31, 2025 (Millions) | Three Months Ended March 31, 2024 (Millions) | Change (Millions) | % Change | | :---------------------------------------------------------------- | :------------------------------------------- | :------------------------------------------- | :---------------- | :------- | | Net revenues | **$1,061** | **$1,114** | **$(53)** | **(4.8%)** | | Operating income (loss) | **$521** | **$520** | **$1** | **0.2%** | | Income (loss) from continuing operations | **$284** | **$294** | **$(10)** | **(3.4%)** | | Income (loss) from discontinued operations, net of tax | **$(748)** | **$17** | **$(765)** | **(4500%)** | | Net income (loss) | **$(464)** | **$311** | **$(775)** | **(249.2%)** | | Net income (loss)—basic per common share | **$(1.07)** | **$0.72** | **$(1.79)** | **(248.6%)** | | Net income (loss)—diluted per common share | **$(1.07)** | **$0.71** | **$(1.78)** | **(250.7%)** | [CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS%20(Unaudited)) Details cash flows from operating, investing, and financing activities for Q1 2025 and 2024, showing changes in net cash | Cash Flow Activity | Three Months Ended March 31, 2025 (Millions) | Three Months Ended March 31, 2024 (Millions) | Change (Millions) | | :---------------------------------------------------------------- | :------------------------------------------- | :------------------------------------------- | :---------------- | | Net cash provided by (used for) operating activities | **$641** | **$599** | **$42** | | Net cash provided by (used for) investing activities | **$(255)** | **$(320)** | **$65** | | Net cash provided by (used for) financing activities | **$(403)** | **$(261)** | **$(142)** | | Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | **$(17)** | **$18** | **$(35)** | [CONDENSED CONSOLIDATED STATEMENT OF EQUITY (DEFICIT) (Unaudited)](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20EQUITY%20(DEFICIT)%20(Unaudited)) Outlines changes in stockholders' equity (deficit) for Q1 2025 and 2024, reflecting net loss, stock-based compensation, and dividends | Metric | Balance, December 31, 2024 (Millions) | Balance, March 31, 2025 (Millions) | | :------------------------------------ | :------------------------------------ | :----------------------------------- | | Total Equity (Deficit) | **$(133)** | **$(1,253)** | | Stock-based compensation related activity, net of forfeitures | N/A | **$51** | | Purchases and retirement of common stock | N/A | **$(21)** | | Common stock dividends/distributions | N/A | **$(686)** | | Net income (loss) | N/A | **$(464)** | [NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)](index=8&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20(Unaudited)) Provides detailed explanations for financial statements, covering company info, accounting policies, and financial disclosures [1. General](index=8&type=section&id=1.%20General) Describes the company's business model, pending Fiber Business sale, and REIT status, leading to discontinued operations - Company owns, operates, and leases shared communications infrastructure, primarily towers, throughout the U.S[28](index=28&type=chunk) - Signed a definitive agreement on March 13, 2025, to sell the Fiber Business for **$8.5 billion** in aggregate cash proceeds[29](index=29&type=chunk) - The Fiber Business' results and net assets are presented as discontinued operations, and a loss of **$830 million** was recognized in Q1 2025 upon classification as 'held for sale'[30](index=30&type=chunk) - The Company operates as a REIT for U.S. federal income tax purposes[32](index=32&type=chunk) [2. Summary of Significant Accounting Policies](index=9&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) Discusses adopted and not yet adopted accounting pronouncements, noting no material impact from adopted standards - No accounting pronouncements adopted during the three months ended March 31, 2025, had a material impact on the Company's condensed consolidated financial statements[37](index=37&type=chunk) - The Company is evaluating new FASB guidance on income tax disclosures (effective FY2025) and disaggregated income statement expense information (effective FY2027)[38](index=38&type=chunk)[39](index=39&type=chunk) [3. Discontinued Operations](index=9&type=section&id=3.%20Discontinued%20Operations) Details the Fiber Business sale, its discontinued operations classification, resulting loss, and financial impact - On March 13, 2025, management signed the Strategic Fiber Agreement to sell the Fiber Business for **$8.5 billion** in aggregate cash proceeds[41](index=41&type=chunk) - Upon classification as 'held for sale', the Company recorded a loss from disposal of discontinued operations, net of tax, of **$830 million** in Q1 2025[41](index=41&type=chunk) - The Fiber Business is treated as discontinued operations for all periods presented due to its anticipated disposal representing a material strategic shift[42](index=42&type=chunk) | Metric | March 31, 2025 (Millions) | December 31, 2024 (Millions) | | :------------------------------------ | :-------------------------- | :--------------------------- | | Total assets of discontinued operations | **$10,605** | **$11,397** | | Total liabilities of discontinued operations | **$2,207** | **$2,244** | | Income (loss) from discontinued operations before gain (loss) from disposal, net of tax (Q1 2025) | **$82** | N/A | | Income (loss) from discontinued operations before gain (loss) from disposal, net of tax (Q1 2024) | N/A | **$17** | [4. Revenues](index=10&type=section&id=4.%20Revenues) Explains revenue recognition policies for site rentals and services, and summarizes contracted amounts owed by tenants - Site rental revenues are recognized on a straight-line, ratable basis over the fixed, non-cancelable term of tenant contracts, generally **5 to 15 years**[46](index=46&type=chunk) - Services revenues are recognized at the completion of the applicable performance obligation, such as structural analysis, zoning, permitting, and construction drawings[48](index=48&type=chunk) | Year Ending December 31, | Contracted Amounts (Millions) | | :----------------------- | :---------------------------- | | 2025 (Nine Months) | **$2,928** | | 2026 | **$3,955** | | 2027 | **$4,033** | | 2028 | **$3,911** | | 2029 | **$3,212** | | Thereafter | **$11,546** | | **Total** | **$29,585** | [5. Debt and Other Obligations](index=12&type=section&id=5.%20Debt%20and%20Other%20Obligations) Provides a detailed breakdown of the company's debt and other obligations, including maturities and interest rates | Debt Type | Balance as of March 31, 2025 (Millions) | Balance as of December 31, 2024 (Millions) | Stated Interest Rate as of March 31, 2025 | | :------------------------------------ | :---------------------------------------- | :----------------------------------------- | :---------------------------------------- | | Total secured debt | **$1,746** | **$1,751** | Various | | Total unsecured debt | **$22,631** | **$22,303** | Various | | Total debt and other obligations | **$24,377** | **$24,054** | N/A | | Non-current portion of debt and other long-term obligations | **$22,874** | **$23,451** | N/A | | Year Ending December 31, | Scheduled Principal Payments and Final Maturities (Millions) | | :----------------------- | :--------------------------------------------------------- | | 2025 (Nine Months) | **$2,255** | | 2026 | **$2,780** | | 2027 | **$3,252** | | 2028 | **$2,633** | | 2029 | **$2,478** | | Thereafter | **$11,130** | | **Total Cash Obligations** | **$24,528** | - Interest expense and amortization of deferred financing costs, net, increased to **$236 million** for Q1 2025 from **$226 million** for Q1 2024[59](index=59&type=chunk) [6. Fair Value Disclosures](index=13&type=section&id=6.%20Fair%20Value%20Disclosures) Presents fair values of cash, restricted cash, and total debt, noting debt fair values are based on broker quotes | Metric | March 31, 2025 (Millions) | December 31, 2024 (Millions) | | :------------------------------------ | :-------------------------- | :--------------------------- | | Cash and cash equivalents (Carrying Amount) | **$60** | **$100** | | Cash and cash equivalents (Fair Value) | **$60** | **$100** | | Total debt and other obligations (Carrying Amount) | **$24,377** | **$24,054** | | Total debt and other obligations (Fair Value) | **$22,767** | **$22,371** | - The fair values of cash and cash equivalents and restricted cash and cash equivalents approximate their carrying values[62](index=62&type=chunk) - The fair value of debt securities is determined based on indicative, non-binding quotes from brokers, and valuation techniques have not changed since December 31, 2024[62](index=62&type=chunk) [7. Income Taxes](index=14&type=section&id=7.%20Income%20Taxes) Explains the company's REIT status, exempting it from federal corporate income tax on distributed income - The Company operates as a REIT for U.S. federal income tax purposes, generally entitled to a deduction for dividends paid, and thus not subject to U.S. federal corporate income tax on distributed net taxable income[63](index=63&type=chunk) - The effective tax rate for Q1 2025 and 2024 differed from the federal statutory rate predominantly due to the Company's REIT status, including the dividends paid deduction[65](index=65&type=chunk) [8. Per Share Information](index=14&type=section&id=8.%20Per%20Share%20Information) Provides basic and diluted net income (loss) per common share and dividends declared, showing a decrease in net income | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------------------ | :-------------------------------- | :-------------------------------- | | Income (loss) from continuing operations, basic | **$0.65** | **$0.68** | | Income (loss) from discontinued operations, basic | **$(1.72)** | **$0.04** | | Net income (loss)—basic | **$(1.07)** | **$0.72** | | Income (loss) from continuing operations, diluted | **$0.65** | **$0.67** | | Income (loss) from discontinued operations, diluted | **$(1.72)** | **$0.04** | | Net income (loss)—diluted | **$(1.07)** | **$0.71** | | Dividends/distributions declared per share of common stock | **$1.565** | **$1.565** | - During Q1 2025, the Company granted **1.3 million Restricted Stock Units (RSUs)** to executives and employees[67](index=67&type=chunk) [9. Commitments and Contingencies](index=15&type=section&id=9.%20Commitments%20and%20Contingencies) States management believes current claims will not materially affect financial position and notes tower purchase options - Management believes the adverse resolution of various claims, assessments, lawsuits, or proceedings should not have a material adverse effect on the Company's condensed consolidated financial position or results of operations[68](index=68&type=chunk) - The Company has the option to purchase approximately **54% of its towers** at the end of their respective lease terms but has no obligation to exercise such options[68](index=68&type=chunk) [10. Equity](index=15&type=section&id=10.%20Equity) Details dividends, common stock repurchases related to RSU vesting, and a new 'at-the-market' stock offering program - During Q1 2025, a common stock dividend of **$1.565 per share** was declared and paid, totaling approximately **$686 million**[69](index=69&type=chunk) - The Company purchased **0.2 million shares** of its common stock for **$21 million** in Q1 2025, primarily related to shares withheld for withholding taxes upon RSU vesting[70](index=70&type=chunk) - A 2024 'at-the-market' stock offering program was established in March 2024 for up to **$750 million**, but no shares have been sold under this program to date[71](index=71&type=chunk) [11. Operating Segment](index=15&type=section&id=11.%20Operating%20Segment) Explains the company now operates as a single reportable segment focused on towers, following Fiber Business reclassification - Following the classification of the Fiber Business as discontinued operations, the Company has one reportable segment consisting of its towers operations[72](index=72&type=chunk) - The Company provides access to more than **40,000 towers** geographically dispersed throughout the U.S. and offers ancillary site development services[73](index=73&type=chunk) [12. Supplemental Cash Flow Information](index=16&type=section&id=12.%20Supplemental%20Cash%20Flow%20Information) Provides additional cash flow details, including operating lease payments, interest paid, and cash reconciliation | Metric | Three Months Ended March 31, 2025 (Millions) | Three Months Ended March 31, 2024 (Millions) | | :------------------------------------ | :------------------------------------------- | :------------------------------------------- | | Cash payments related to operating lease liabilities | **$131** | **$131** | | Interest paid | **$315** | **$282** | | Cash and Cash Equivalents and Restricted Cash | March 31, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------------------------------------- | :-------------------------- | :--------------------------- | | Total (Continuing + Discontinued Operations) | **$278** | **$295** | [13. Restructuring](index=17&type=section&id=13.%20Restructuring) Details 2023 and 2024 Restructuring Plans, outlining charges, payments, and liabilities for headcount reductions - The 2023 Restructuring Plan, initiated in July 2023, included a **15% employee headcount reduction** and office space consolidation, with actions substantially completed by June 30, 2024[81](index=81&type=chunk)[83](index=83&type=chunk) - The 2024 Restructuring Plan, initiated in June 2024, aimed to drive operational efficiencies and reduce costs, primarily in the small cells and fiber solutions businesses, including a headcount reduction of **over 10%**[84](index=84&type=chunk) | Restructuring Plan | Liability as of Dec 31, 2024 (Millions) | Payments (Q1 2025) (Millions) | Liability as of Mar 31, 2025 (Millions) | | :----------------- | :-------------------------------------- | :---------------------------- | :-------------------------------------- | | 2023 Plan | **$7** | **$(2)** | **$5** | | 2024 Plan | **$36** | **$(5)** | **$31** | [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=18&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Provides management's perspective on financial condition, operations, and outlook, emphasizing the strategic shift to towers [General Overview](index=19&type=section&id=General%20Overview) Discusses the company's core business, strategic shift from Fiber Business sale, and strategy for stockholder value - The Company owns, operates, and leases over **40,000 towers** in the U.S[88](index=88&type=chunk) - The definitive agreement to sell the Fiber Business for **$8.5 billion** represents a material strategic shift, leading to its presentation as discontinued operations[90](index=90&type=chunk)[91](index=91&type=chunk) - The core strategy is to grow cash flows from existing towers, return a meaningful portion of cash to stockholders via dividends and share repurchases, and invest capital efficiently[94](index=94&type=chunk) - Site rental revenues constituted **95% of consolidated net revenues** for Q1 2025[93](index=93&type=chunk) [Outlook Highlights](index=22&type=section&id=Outlook%20Highlights) Presents key expectations for future performance, including anticipated site rental revenue reductions and capital expenditures - Expects a year-over-year reduction in site rental revenues in 2025, primarily due to approximately **$200 million** from Sprint Cancellations and a decline in long-term prepaid rent amortization[105](index=105&type=chunk) - Sustaining capital expenditures are expected to be approximately **1% of net revenues** for full year 2025, consistent with historical levels[105](index=105&type=chunk) [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Analyzes Q1 2025 financial results, detailing changes in revenues, expenses, and net income, impacted by discontinued operations | Metric | Three Months Ended March 31, 2025 (Millions) | Three Months Ended March 31, 2024 (Millions) | Change (Millions) | % Change | | :------------------------------------ | :------------------------------------------- | :------------------------------------------- | :---------------- | :------- | | Site rental revenues | **$1,011** | **$1,068** | **$(57)** | **(5%)** | | Net income (loss) | **$(464)** | **$311** | **$(775)** | **(249%)** | | Adjusted EBITDA | **$722** | **$754** | **$(32)** | **(4%)** | | Adjusted Site Rental Gross Margin | **$776** | **$829** | **$(53)** | **(6%)** | | Adjusted Services and Other Gross Margin | **$22** | **$18** | **$4** | **+22%** | - Site rental revenues decreased by **$57 million (5%)** primarily due to **$51 million** in towers non-renewals related to Sprint Cancellations and a decrease in prepaid rent amortization[106](index=106&type=chunk)[108](index=108&type=chunk) - Selling, general and administrative expenses decreased by **$21 million (18%)** due to restructuring activities and the absence of certain advisory fees[110](index=110&type=chunk) - Net income (loss) decreased significantly to **$(464) million** from **$311 million**, primarily due to the **$830 million loss** from disposal of discontinued operations[119](index=119&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses liquidity, capital structure, and financing, focusing on investment-grade credit profile and debt management [Overview](index=24&type=section&id=Overview) Outlines strategy for stockholder value, investment-grade credit, and debt management, including refinancing and Fiber sale proceeds - The Company seeks to maintain a capital structure that optimizes its weighted-average cost of capital and expects to maintain an investment grade credit profile[123](index=123&type=chunk) - Expected liquidity sources over the next 12 months include cash on hand, operating cash flows, availability under the 2016 Revolver, issuances under the CP Program, and issuances of equity under the 2024 ATM Program[127](index=127&type=chunk) - Expected liquidity uses over the next 12 months include **$3.2 billion** in debt obligations, common stock dividend payments, capital expenditures, and common stock repurchases[127](index=127&type=chunk) - The Company expects to refinance **$700 million** of Tower Revenue Notes, Series 2015-2 on or prior to the anticipated repayment date of May 15, 2025[123](index=123&type=chunk) - Upon the closing of the Strategic Fiber Transaction (expected H1 2026), the Company expects to use a portion of the cash proceeds to repay existing indebtedness and fund anticipated share repurchases[127](index=127&type=chunk) [Summary Cash Flow Information](index=26&type=section&id=Summary%20Cash%20Flow%20Information) Summarizes net cash flows from operating, investing, and financing activities for Q1 2025 and 2024 | Cash Flow Activity | Three Months Ended March 31, 2025 (Millions) | Three Months Ended March 31, 2024 (Millions) | Change (Millions) | | :------------------------------------ | :------------------------------------------- | :------------------------------------------- | :---------------- | | Operating activities | **$641** | **$599** | **$42** | | Investing activities | **$(255)** | **$(320)** | **$65** | | Financing activities | **$(403)** | **$(261)** | **$(142)** | | Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | **$(17)** | **$18** | **$(35)** | [Operating Activities](index=26&type=section&id=Operating%20Activities) Net cash provided by operating activities increased by $42 million for Q1 2025, primarily due to working capital changes - Net cash provided by operating activities increased by **$42 million**, or **7%**, to **$641 million** for Q1 2025, primarily due to a net increase from changes in working capital[129](index=129&type=chunk) [Investing Activities](index=26&type=section&id=Investing%20Activities) Net cash used for investing activities decreased by $65 million, mainly due to lower discretionary capital expenditures - Net cash used for investing activities decreased by **$65 million**, or **20%**, to **$255 million** for Q1 2025, primarily due to a decrease in discretionary capital expenditures related to discontinued operations[130](index=130&type=chunk)[133](index=133&type=chunk) | Capital Expenditure Type | Three Months Ended March 31, 2025 (Millions) | Three Months Ended March 31, 2024 (Millions) | | :----------------------- | :------------------------------------------- | :------------------------------------------- | | Discretionary: Towers improvements and other capital projects | **$15** | **$26** | | Discretionary: Purchases of land interests | **$18** | **$13** | | Sustaining | **$7** | **$8** | | **Total** | **$40** | **$47** | [Financing Activities](index=27&type=section&id=Financing%20Activities) Net cash used for financing activities increased by $142 million, driven by debt issuances and repayments - Net cash used for financing activities increased by **$142 million** to **$403 million** for Q1 2025, primarily due to the net impact from debt issuances and repayments[135](index=135&type=chunk) - As of May 7, 2025, there was **$7.0 billion** in undrawn availability under the 2016 Revolver and **$1.4 billion** outstanding under the Commercial Paper Program[136](index=136&type=chunk)[137](index=137&type=chunk) - The Company is currently in compliance with its financial maintenance covenants under the 2016 Credit Agreement and expects to continue to comply[141](index=141&type=chunk) [Accounting and Reporting Matters](index=28&type=section&id=Accounting%20and%20Reporting%20Matters) Addresses critical accounting policies, pronouncements, and reconciles non-GAAP financial measures for performance evaluation [Critical Accounting Policies and Estimates](index=28&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Refers to the 2024 Form 10-K for detailed critical accounting policies and estimates requiring significant judgment - Critical accounting policies and estimates are described in 'Item 7. MD&A—Accounting and Reporting Matters' and note 2 of the consolidated financial statements in the 2024 Form 10-K[142](index=142&type=chunk) [Accounting Pronouncements](index=28&type=section&id=Accounting%20Pronouncements) Refers to Note 2 of the condensed consolidated financial statements for accounting pronouncements information - Information on recently adopted and not yet adopted accounting pronouncements is provided in Note 2 to the condensed consolidated financial statements[143](index=143&type=chunk) [Non-GAAP Financial Measures](index=28&type=section&id=Non-GAAP%20Financial%20Measures) Defines and reconciles non-GAAP financial measures, explaining their utility for investors and management Adjusted EBITDA Reconciliation | Metric | Three Months Ended March 31, 2025 (Millions) | Three Months Ended March 31, 2024 (Millions) | | :---------------------------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Net income (loss) | **$(464)** | **$311** | | Adjustments (e.g., Depreciation, Amortization, Interest Expense, Discontinued Operations) | **$1,186** | **$443** | | Adjusted EBITDA | **$722** | **$754** | Adjusted Site Rental Gross Margin Reconciliation | Metric | Three Months Ended March 31, 2025 (Millions) | Three Months Ended March 31, 2024 (Millions) | | :---------------------------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Net income (loss) | **$(464)** | **$311** | | Adjustments (e.g., Services and other revenues/costs, SG&A, D&A, Discontinued Operations) | **$1,240** | **$518** | | Adjusted Site Rental Gross Margin | **$776** | **$829** | Adjusted Services and Other Gross Margin Reconciliation | Metric | Three Months Ended March 31, 2025 (Millions) | Three Months Ended March 31, 2024 (Millions) | | :---------------------------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Net income (loss) | **$(464)** | **$311** | | Adjustments (e.g., Site rental revenues/costs, SG&A, D&A, Discontinued Operations) | **$486** | **$(293)** | | Adjusted Services and Other Gross Margin | **$22** | **$18** | [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=31&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Updates on market risks, primarily interest rate risk, including sensitivity analysis and debt maturity details [Interest Rate Risk](index=32&type=section&id=Interest%20Rate%20Risk) Discusses interest rate exposure on floating rate debt, providing a sensitivity analysis and debt maturity table - As of March 31, 2025, the Company had **$2.8 billion** of floating rate debt, representing approximately **11% of its total debt**[156](index=156&type=chunk)[158](index=158&type=chunk) - A hypothetical unfavorable fluctuation of **1/4 of a percent point** in market interest rates over a 12-month period would increase interest expense by approximately **$7 million**[156](index=156&type=chunk) Future Principal Payments and Interest Rates by Contractual Year of Maturity (as of March 31, 2025) | Debt Type | 2025 (Millions) | 2026 (Millions) | 2027 (Millions) | 2028 (Millions) | 2029 (Millions) | Thereafter (Millions) | Total (Millions) | Average Interest Rate | | :---------------- | :-------------- | :-------------- | :-------------- | :-------------- | :-------------- | :-------------------- | :--------------- | :-------------------- | | Fixed rate | **$533** | **$2,690** | **$2,286** | **$2,633** | **$2,478** | **$11,130** | **$21,750** | **3.7%** | | Variable rate | **$1,722** | **$90** | **$966** | **$0** | **$0** | **$0** | **$2,778** | **4.7%** | [ITEM 4. CONTROLS AND PROCEDURES](index=32&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Reports on the effectiveness of disclosure controls and procedures and confirms no material changes to internal control [Disclosure Controls and Procedures](index=33&type=section&id=Disclosure%20Controls%20and%20Procedures) Management, including CEO and CFO, concluded disclosure controls and procedures were effective as of March 31, 2025 - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of March 31, 2025[163](index=163&type=chunk) [Changes in Internal Control Over Financial Reporting](index=33&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) No material changes occurred in internal control over financial reporting during the fiscal quarter - There have been no material changes in the Company's internal control over financial reporting during the fiscal quarter covered by this Form 10-Q[164](index=164&type=chunk) [PART II—OTHER INFORMATION](index=33&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) Provides additional non-financial information, including legal proceedings, risk factors, and exhibits [ITEM 1. LEGAL PROCEEDINGS](index=33&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) Refers to Note 9 of the condensed consolidated financial statements for details on legal proceedings - Disclosure regarding legal proceedings is provided in note 9 to the condensed consolidated financial statements[165](index=165&type=chunk) [ITEM 1A. RISK FACTORS](index=34&type=section&id=ITEM%201A.%20RISK%20FACTORS) States no material changes to risk factors previously discussed in the 2024 Form 10-K - There are no material changes to the risk factors discussed in 'Item 1A. Risk Factors' in the 2024 Form 10-K[166](index=166&type=chunk) [ITEM 5. OTHER INFORMATION](index=34&type=section&id=ITEM%205.%20OTHER%20INFORMATION) Indicates no other information is reported in this section - No other information is reported in this section[167](index=167&type=chunk) [ITEM 6. EXHIBITS](index=34&type=section&id=ITEM%206.%20EXHIBITS) Provides an index of exhibits filed as part of the Form 10-Q, including agreements and certifications - The exhibit index includes the Stock Purchase Agreement, Restated Certificate of Incorporation, By-laws, 2025 EMT Annual Incentive Plan, and various certifications[170](index=170&type=chunk) [SIGNATURES](index=35&type=section&id=SIGNATURES) Contains signatures of authorized officers, certifying the filing of the report - The report was signed by Sunit S. Patel, Executive Vice President and Chief Financial Officer, and Robert S. Collins, Vice President and Controller, on May 9, 2025[174](index=174&type=chunk)

Financial Performance - For the quarter ended March 2025, Crown Castle reported revenue of $1.06 billion, down 35.3% year-over-year [1] - EPS for the quarter was $1.10, compared to $0.71 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $1.04 billion by +1.96% [1] - EPS also surpassed the consensus estimate of $1.02 by +7.84% [1] Key Metrics - Total ending towers were reported at 40,000, slightly below the four-analyst average estimate of 40,056 [4] - Site rental revenue was $1.01 billion, compared to the average estimate of $1.09 billion, reflecting a -36.3% year-over-year change [4] - Services and other revenue was $50 million, exceeding the average estimate of $46.85 million, but down -5.7% from the previous year [4] - Net Earnings Per Share (Diluted) was -$1.07, worse than the average estimate of -$0.58 [4] - Site rental gross margin was $771 million, below the average estimate of $893.90 million [4] - Services and other gross margin was $22 million, slightly above the average estimate of $20.96 million [4] Stock Performance - Shares of Crown Castle have returned -0.9% over the past month, compared to the Zacks S&P 500 composite's -0.2% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market [3]