SBA Communications (SBAC) came out with quarterly funds from operations (FFO) of $3.16 per share, beating the Zacks Consensus Estimate of $3.12 per share. This compares to FFO of $3.29 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of 1.28%. A quarter ago, it was expected that this communications tower operator would post FFO of $3.37 per share when it actually produced FFO of $3.47, delivering a surprise of 2.97%.Over the last four ...

SBA Communications (SBAC) Q1 2025 Earnings Call April 28, 2025 05:00 PM ET Company Participants Mark DeRussy - Vice President of FinanceBrendan Cavanagh - President and CEOMarc Montagner - Executive VP & CFOJonathan Atkin - Managing DirectorWalter Piecyk - General PartnerMatthew Niknam - Director, Equity ResearchNicholas Del Deo - Managing DirectorMichael Funk - SVPRic Prentiss - Managing DirectorBenjamin Swinburne - Head of U.S Media ResearchRichard Choe - Vice PresidentJonathan Chaplin - Managing PartnerD ...

FOR IMMEDIATE RELEASE SBA Communications Corporation Reports First Quarter 2025 Results; Updates Full Year 2025 Outlook; and Declares Quarterly Cash Dividend Exhibit 99.1 (1) See the reconciliations and other disclosures under "Non-GAAP Financial Measures" later in this press release. (2) Site leasing contributed 98.1% of the Company's total operating profit in the first quarter of 2025. Boca Raton, Florida, April 28, 2025 (BUSINESS NEWSWIRE) — SBA Communications Corporation (Nasdaq: SBAC) ("SBA" or the "Co ...

SBA Communications (SBAC) shares rallied 5.3% in the last trading session to close at $230.87. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.5% loss over the past four weeks.The increased optimism is driven by the solid underlying fundamentals of the wireless communications infrastructure sector.This communications tower operator is expected to post quarterly funds from operations (FFO) of $3.11 per share ...

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Core Viewpoint - SBA Communications (SBAC) is well-positioned to benefit from the high capital spending of wireless carriers for network expansion, driven by the growth in mobile data usage and supported by long-term leases that ensure stable revenues [1][4]. Group 1: Market Demand and Business Model - The advancement of mobile technology, including 4G and 5G networks, has significantly increased global mobile data usage, leading to higher demand for SBA Communications' wireless infrastructure [3]. - The company operates a resilient site-leasing business model, generating most of its revenues from long-term tower leases with built-in rent escalators, which enhances its attractiveness [4]. Group 2: Revenue Growth Expectations - Management anticipates organic site leasing revenues to rise in 2025 compared to 2024, driven by wireless carriers deploying unused spectrum and revenues from newly acquired and built towers [5]. - In 2024, SBA Communications acquired 186 towers and built 482 towers, indicating a strong commitment to expanding its portfolio [6]. Group 3: Expansion Efforts - The company is actively expanding its tower portfolio and exploring growth opportunities in both domestic and select international markets with high growth potential [6]. - Following the fourth quarter of 2024, SBA Communications is under contract to purchase 32 communication sites for $14.6 million, further positioning itself to leverage trends in mobile data usage [7]. Group 4: Dividend Payments - SBA Communications announced a quarterly cash dividend of $1.11 per share in February 2025, reflecting a nearly 13% increase from the previous quarter, with a five-year annualized dividend growth rate of 19.75% [8].

The REIT and Equity Trust - Other industry counterparts are likely to face the impacts of macroeconomic uncertainty, policy shifts and resulting inflationary pressures, along with a sustained period of elevated interest rates. Moreover, shifting tenant preferences are widening market gaps, making it harder for non-prime properties to compete.Nevertheless, with the industry catering to a wide range of real estate categories, there are pockets of strength with solid demand across certain asset categories, bac ...

Site Leasing Business Performance - The site leasing business contributed 98.4% of total segment operating profit for the year ended December 31, 2024[162]. - Site leasing revenues represented 94% of total revenue for the year ended December 31, 2024[180]. - The company expects core leasing revenue to increase over 2024 levels, driven by wireless carriers deploying unused spectrum and the full-year impact of towers acquired and built during 2024[170]. - Domestic site leasing revenues increased by $14.9 million to $1,861.4 million for the year ended December 31, 2024, primarily due to organic growth and new leases[189]. - International site leasing revenues decreased by $5.0 million to $665.3 million, but increased by $32.5 million on a constant currency basis, with Brazil representing 15.0% of total site leasing revenue[190]. - Domestic site leasing operating profit increased by $14.3 million to $1,592.3 million, while international site leasing operating profit increased by $5.2 million to $471.5 million[192][193]. - Domestic site leasing operating income increased by $400.3 million to $1,249.9 million, driven by lower depreciation and impairment costs[202]. - International site leasing operating income increased by $113.5 million for the year ended December 31, 2024, compared to the prior year, with a constant currency increase of $126.9 million[203]. Financial Performance and Income - Net income rose by $251.3 million for the year ended December 31, 2024, reaching $748.7 million, a 105.5% increase compared to the prior year[212]. - Adjusted EBITDA increased by $0.5 million for the year ended December 31, 2024, totaling $1.89 billion, with a constant currency increase of $24.9 million[219]. - Cash provided by operating activities was $1.33 billion for the year ended December 31, 2024, down from $1.54 billion in the prior year, primarily due to increased cash outflows related to working capital changes[223]. - Cash, cash equivalents, and restricted cash at the end of the year totaled $1.4 billion, significantly up from $250.9 million at the beginning of the year[222]. - Provision for income taxes decreased by $27.1 million for the year ended December 31, 2024, with a constant currency increase of $85.3 million[211]. Expenses and Cost Management - Selling, general, and administrative expenses decreased by $9.2 million to $258.8 million, driven by a decrease in non-cash compensation expense[195]. - Acquisition and new business initiatives related expenses increased by $4.3 million to $25.9 million, primarily due to higher third-party acquisition costs[196]. - Depreciation, accretion, and amortization expenses decreased by $446.8 million to $269.5 million, mainly due to changes in estimated useful lives of assets[200]. - Domestic site leasing asset impairment and decommission costs decreased by $88.9 million to $49.8 million, reflecting a decrease in impairment charges[198]. - International site leasing asset impairment and decommission costs increased by $28.9 million to $57.0 million, primarily due to increased impairment charges[199]. Capital Expenditures and Investments - The company plans to continue growing its asset portfolio through tower acquisitions and construction of new towers[174]. - In 2024, the company incurred net cash used in investing activities of $809.3 million, an increase of 73% compared to $468.2 million in 2023[224]. - The company entered into an agreement to purchase over 7,000 communication sites in Central America for approximately $975.0 million, with an estimated closing date of September 1, 2025[226]. - For 2025, the company expects non-discretionary cash capital expenditures of $53.0 million to $63.0 million and discretionary cash capital expenditures of $1,255.0 million to $1,275.0 million[228]. Debt and Financing - The company has a total debt obligation of $13,672,750,000 as of December 31, 2024[274]. - The company reported net repayments under the Revolving Credit Facility of $180.0 million in 2024, down from $540.0 million in 2023[229]. - The Senior Credit Agreement was amended to issue a new $2.3 billion Term Loan and extend the maturity date of the Revolving Credit Facility to January 25, 2029[236]. - As of December 31, 2024, the company maintained a Revolving Credit Facility with a total commitment of $2.0 billion[237]. - The interest rate for the Revolving Credit Facility was 5.407% as of December 31, 2024, reflecting a reduction due to meeting sustainability-linked targets[243]. - The 2024 Term Loan has an initial principal amount of $2.3 billion, maturing on January 25, 2031, with a blended interest rate of 2.428%[246]. - The company incurred financing fees of approximately $19.4 million related to the 2024 Term Loan, which are being amortized[247]. Market and Economic Conditions - The company expects that higher interest rates will continue to impact growth rates and future operating results, particularly affecting capital expenditures by wireless service providers[272]. - A hypothetical 10% adverse movement in the Brazilian Real would have caused revenues and operating income to decline by approximately 1.3% and 1.0%, respectively, for the year ended December 31, 2024[278]. - High interest rates could adversely impact operational results and refinancing capabilities[285]. - The company anticipates challenges in the wireless communications industry that may affect growth and customer capital access[285]. Strategic Initiatives and Future Outlook - The company plans to grow its tower portfolio domestically and internationally through acquisitions, new builds, and organic lease-up[281]. - The company is focused on securing rights to land for its towers, which is expected to impact financial and operational results positively[285]. - The company aims to maintain target leverage levels while managing liquidity and dividend strategies[285]. - Expectations for debt service in 2025 indicate a need for careful management of outstanding debt over the next twelve months[285]. - There are ongoing efforts to secure site leasing tenants and achieve economies of scale with new tenants[285]. - The company faces competition in acquiring towers that meet investment criteria and are priced to benefit shareholders[285]. - The ability to build new towers is contingent on identifying suitable land and addressing regulatory and logistical challenges[285]. - The company is focused on maintaining its REIT status and utilizing available NOLs to reduce taxable income[285].

SBA Communications Corporation (SBAC) reported fourth-quarter 2024 adjusted funds from operations (AFFO) per share of $3.47, beating the Zacks Consensus Estimate of $3.36. The figure also reflects a rise of 3% from the prior-year quarter.See the Zacks Earnings Calendar to stay ahead of market-making news.SBAC results reflect an improvement in site-leasing and site-development revenues during the quarter. The company announced an increase in dividends and issued its 2025 outlook.Quarterly total revenues incr ...

Financial Data and Key Metrics Changes - The fourth quarter results were in-line to slightly ahead of estimates despite adverse foreign exchange rates [7] - Domestic organic revenue growth was 5.1% on a gross basis and 2.2% on a net basis, including 2.9% churn [25] - The company ended the year with a net debt to adjusted EBITDA ratio of 6.1 times, the lowest in its history [15] Business Line Data and Key Metrics Changes - Domestic new carrier activity continued to increase, with a higher percentage coming from new lease colocations compared to amendments to existing leases [8] - International organic recurring cash leasing revenue growth was 1.7% net, with Brazil showing 8.7% gross organic growth on a constant currency basis [26] - The US-based services business had its best quarter of the year, with an outlook for a year-over-year increase in 2025 [10][11] Market Data and Key Metrics Changes - International churn remains elevated due to customer consolidations, particularly in Brazil, which is heavily indexed in the company's operations [12][27] - The company anticipates continued network investment in international markets to close the gap in 5G coverage compared to the US [11] Company Strategy and Development Direction - The company aims to stabilize results, grow the core business, and improve asset quality through both organic and inorganic growth [16] - A significant agreement to purchase approximately 7,000 towers from Millicom positions the company as a leading tower operator in Central America [17] - The company plans to build up to 800 new towers in 2025, the largest number in over 20 years, primarily in Central America [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future opportunities, citing ongoing mobile network consumption growth and limited new spectrum availability [22] - The company expects to see growth in leasing business throughout 2025, driven by increased carrier activity [10][21] - Management acknowledged the challenges posed by macroeconomic factors, including interest rates and foreign exchange impacts [13] Other Important Information - The company declared a cash dividend of $1.11 per share for the first quarter of 2025, representing a 13% increase over the previous quarter [35] - The company has a strong balance sheet and liquidity position, with a fully undrawn $2 billion revolving credit facility [34] Q&A Session Summary Question: Can you provide more color on the increase in the backlog? - Management indicated that the backlog increase is broad across various carriers, with more business coming from new leases rather than amendments [40][41] Question: How should we think about your ability to grow domestic leasing relative to CapEx budgets? - Management noted that minor shifts in CapEx budgets can significantly impact the company, and they expect increased activity in wireless networks [49][50] Question: What is the outlook for customer-specific activity across the three nationals and DISH? - Management stated that all major carriers are increasing activity levels, but DISH's contribution is currently limited [61][62] Question: What is the expected level of international churn in 2025? - Management anticipates that international churn will remain at similar levels to 2024, particularly due to challenges in Brazil [140] Question: How does the Millicom transaction affect leverage? - The Millicom deal is expected to add about 0.2 turns of leverage, which is manageable given the company's current financial position [92] Question: Will there be more spectrum auctions in the coming years? - Management expressed hope for more spectrum auctions but noted that immediate discussions focus on optimizing current assets [150][151]