This Supplemental Financial Data package provides key financial and operational data as well as reconciliations of those non-GAAP financial measures that SBA Communications Corporation ("SBA" or "We") use in evaluating the performance of our business. These non-GAAP financial measures include (1) Cash Site Leasing Revenue, (2) Core Recurring Cash Leasing Revenue, (3) Tower Cash Flow and Tower Cash Flow Margin, (4) Adjusted EBITDA, Annualized Adjusted EBITDA, and Adjusted EBITDA Margin, (5) Return on Investe ...

Financial Performance - Net income for Q4 2024 was $178.8 million, or $1.61 per share, representing a 63.3% increase compared to Q4 2023[4] - The company achieved an industry-leading AFFO per share of $3.47, up 3.0% from $3.37 in the prior year[4] - Operating income for Q4 2024 was $382,339 thousand, significantly higher than $209,687 thousand in Q4 2023, indicating an increase of approximately 82.2%[38] - Net income attributable to SBA Communications Corporation for the year 2024 was $749,536 thousand, compared to $501,812 thousand in 2023, marking an increase of approximately 49.3%[38] - Net income for the three months ended December 31, 2024, was $178.79 million, up from $109.53 million in 2023, reflecting a year-over-year increase of 62.9%[44] - The company reported a net income per common share of $1.61 for Q4 2024, up from $1.01 in Q4 2023[38] Revenue and Growth - Site leasing revenue for Q4 2024 was $646.3 million, a 1.6% increase from $636.1 million in Q4 2023[6] - Total revenues for the year 2024 were $2,679,634 thousand, a decrease from $2,711,584 thousand in 2023, representing a decline of about 1.18%[38] - Total Site Leasing Revenue for 2024 is projected to be between $2,530 million and $2,555 million, with domestic revenue expected to be between $1,857 million and $1,871 million, and international revenue between $673 million and $684 million[26] - Forecasted site leasing revenue for the full year 2025 is projected to be between $2,530.0 million and $2,555.0 million[57] - Forecasted Tower Cash Flow for the full year 2025 is expected to range from $2,040.0 million to $2,065.0 million[57] Expenses and Capital Expenditures - Total operating expenses for the year 2024 were $1,243,871 thousand, down from $1,787,925 thousand in 2023, reflecting a decrease of approximately 30.5%[38] - The company plans to spend between $1,255.0 million and $1,275.0 million on discretionary cash capital expenditures in 2025[21] - Total capital expenditures for the year ended December 31, 2024, amounted to $228.15 million, compared to $228.15 million in 2023, indicating stable investment levels[45] Debt and Financial Ratios - The net debt to Adjusted EBITDA leverage ratio was 6.1x, the lowest in company history, with no remaining debt maturities in 2025[3] - Long-term debt increased to $12.40 billion in 2024 from $11.68 billion in 2023, reflecting a rise of 6.1%[41] - Total debt amounts to $13,672,750,000[70] - Net debt stands at $12,021,722,000 after accounting for cash and equivalents[70] - The leverage ratio is calculated at 6.1x based on annualized adjusted EBITDA of $1,957,000,000[70] Dividends - The company declared a quarterly cash dividend of $1.11 per share, an increase of approximately 13% over the previous quarter[2] - The company expects its quarterly dividend to represent approximately 35% of AFFO in the 2025 outlook[29] Acquisitions and Future Outlook - The company expects to close the Millicom acquisition by September 1, 2025, pending regulatory approvals[19] - The Millicom acquisition is pending, with expected benefits including increased revenue and tower cash flows[29] - Foreign currency exchange rate assumptions negatively impacted the 2025 outlook by approximately $25.1 million for leasing revenue[20] - The company anticipates continued growth in the U.S. driven by market demands and investments from customers[29] Cash and Assets - Cash, cash equivalents, and restricted cash at the end of the period reached $1.40 billion, a significant increase from $250.95 million at the end of 2023[44] - Total assets increased to $11.42 billion in 2024 from $10.18 billion in 2023, representing a growth of 12.2%[41] Site Leasing and International Revenue - International cash site leasing revenue grew by 1.4% year-over-year, with a significant foreign currency impact of (11.3%) and a growth rate of 12.7% excluding foreign currency impact[55] - Total cash site leasing revenue for Q4 2024 was $646.1 million, an increase from $632.3 million in Q4 2023[56] - Total site leasing revenue increased by 1.6% year-over-year, with a foreign currency impact of (3.0%) and a growth rate of 4.6% excluding foreign currency impact[55]

Core Insights - SBA Communications (SBAC) is expected to report quarterly earnings of $3.36 per share, reflecting a decline of 0.3% year-over-year, while revenues are forecasted to be $681.71 million, indicating a 1% increase compared to the previous year [1] - The consensus EPS estimate has been revised 0.2% higher in the last 30 days, showing analysts' reevaluation of their initial estimates [1][2] Revenue Estimates - Analysts predict 'Revenues- Site Development' will reach $39.65 million, a year-over-year increase of 1.8% [4] - 'Revenues- International Site Leasing' is expected to be $171.77 million, reflecting a 1.4% increase from the prior-year quarter [4] - 'Revenues- Domestic Site Leasing' is projected to be $467.47 million, indicating a 0.2% year-over-year change [4] - The consensus estimate for 'Revenues- Site Leasing' stands at $639.24 million, suggesting a 0.5% increase year-over-year [5] Key Metrics - Analysts expect 'Depreciation, accretion and amortization' to be $65.78 million, compared to $171.40 million reported in the same quarter last year [6] - The number of 'Sites owned - International' is projected to reach 22,377, up from 22,131 year-over-year [5] - 'Sites owned - Domestic' is expected to be 17,470, slightly down from 17,487 year-over-year [5] Stock Performance - SBA Communications shares have increased by 0.9% in the past month, while the Zacks S&P 500 composite has risen by 4.7% [6] - The company holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [6]

Core Viewpoint - SBA Communications Corporation (SBAC) is expected to report fourth-quarter and full-year 2024 results on February 24, with anticipated revenue growth but a potential decline in adjusted funds from operations (AFFO) per share year over year [1][6]. Financial Performance - In the last reported quarter, SBAC achieved an AFFO per share of $3.32, meeting the Zacks Consensus Estimate, with slight improvements in domestic cash site-leasing revenues due to increased carrier activity, although site development revenues negatively impacted results [2][3]. - Over the past four quarters, SBAC's AFFO per share exceeded the Zacks Consensus Estimate twice, met once, and missed once, with an average beat of 0.38% [3]. Revenue Projections - The Zacks Consensus Estimate for fourth-quarter site-leasing revenues is $639.2 million, a slight increase from $636.1 million in the previous year, while site-development revenues are projected to rise to $39.7 million from $38.9 million [5]. - Total quarterly revenues are estimated at $681.7 million, reflecting a 1% year-over-year increase [6]. Full-Year Expectations - For full-year 2024, SBAC anticipates AFFO per share between $13.20 and $13.45, site-leasing revenues between $2,520 million and $2,530 million, site-development revenues between $140 million and $150 million, and adjusted EBITDA between $1,890 million and $1,900 million [7]. - The Zacks Consensus Estimate for full-year 2024 AFFO per share is $13.24, indicating a 0.46% increase year over year, while total revenues are projected at $2.67 billion, suggesting a decline of 1.62% year over year [8]. Market Dynamics - The demand for SBA Communications' wireless infrastructure is driven by increasing smartphone adoption, greater broadband demand, and global 5G service plans, which may positively influence fourth-quarter performance [3][4]. - The company's stable site-leasing business model and portfolio expansion efforts are seen as positive factors, although ongoing consolidation in the wireless industry and high interest expenses may pose challenges [4].

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - Market volatility presents opportunities to acquire quality stocks at lower prices, particularly in mission-critical infrastructure assets [2] Group 2 - The article emphasizes the importance of performing due diligence and drawing independent conclusions before making investment decisions [4]

Site Leasing Business Performance - The site leasing business contributed 98.5% of total segment operating profit for the nine months ended September 30, 2024[82]. - Domestic site leasing operating profit was 76.4% for the nine months ended September 30, 2024, compared to 75.1% for the same period in 2023[87]. - The company expects organic site leasing revenue to increase over 2023 levels on a currency neutral basis due to wireless carriers deploying unused spectrum[87]. - Domestic site leasing revenues decreased by $3.5 million to $464.9 million for the three months ended September 30, 2024, primarily due to Sprint lease non-renewals and one-time revenue benefits recognized in the prior year[97]. - International site leasing revenues decreased by $8.2 million to $160.8 million, but increased by $5.1 million on a constant currency basis, driven by organic growth and new leases[97]. - Domestic site leasing revenues increased by $9.6 million to $1,389,563 thousand, a 0.7% increase, due to organic growth and new leases[107]. - International site leasing revenues decreased by $10.0 million to $490,867 thousand, but increased by $8.4 million on a constant currency basis[109]. - Total site leasing revenue was $1,083.9 million, up from $741.5 million, reflecting a 47.0% increase[118]. Financial Performance and Income - Net income rose by $170.5 million to $255,891 thousand, a 106.9% increase, driven by higher site leasing operating income and reduced interest expenses[106]. - Net income increased by $182.0 million to $569.9 million, reflecting a 78.2% increase, primarily due to higher site leasing operating income and interest income[125]. - Total revenues for the nine months ended September 30, 2024, were $1,985,934 thousand, a 1.6% decrease compared to the prior year[107]. - Operating income for the total site leasing segment increased by $126.1 million to $57.6 million, driven by lower depreciation and impairment costs[103]. - Selling, general, and administrative expenses decreased by $3.8 million to $60.1 million, with a constant currency decrease of 5.9%[100]. - Selling, general, and administrative expenses decreased by $9.3 million to $191,161 thousand, a 3.9% decrease, primarily from lower non-cash compensation expenses[113]. - Interest income increased by $2.0 million to $6,999 thousand, a 37.9% change on a constant currency basis, primarily due to higher interest rates and deposits[104]. - Interest expense decreased by $3.6 million to $(95,711) thousand, a 3.6% decrease, attributed to a lower average principal amount of cash-interest bearing debt[104]. Capital Expenditures and Investments - The capital allocation strategy includes portfolio growth through tower acquisitions and construction of new towers[89]. - The company entered into an agreement to purchase over 7,000 communication sites in Central America for approximately $975.0 million in cash, expected to close in 2025[136]. - For 2024, the company expects non-discretionary cash capital expenditures of $51.0 million to $57.0 million and discretionary cash capital expenditures of $490.0 million to $500.0 million[137]. - Total cash used in investing activities for the nine months ended September 30, 2024, was $480.4 million, compared to $361.9 million in the same period of 2023[133]. Debt and Financing - The company issued a new $2.3 billion Term Loan on January 25, 2024, and increased the total commitments under the Revolving Credit Facility to $2.0 billion[144]. - The company repaid $160.0 million under the Revolving Credit Facility subsequent to September 30, 2024, leaving no amount outstanding[148]. - The 2024 Term Loan has a principal balance of $2.3 billion and a blended interest rate of 2.760% as of September 30, 2024[148]. - The company declared a cash dividend of $0.98 per share, with an aggregate amount paid of $108.1 million on March 28, 2024[139]. - The company paid cash dividends totaling $318.8 million during the nine months ended September 30, 2024, an increase from $278.2 million in the prior year[138]. - The total debt service requirement for the next twelve months is projected to be $2,193.8 million[157]. - Total debt obligation as of September 30, 2024, is $12,388.5 million, with a fair value of $11,604.174 million[161]. Operational Efficiency and Cost Management - A change in estimated useful lives of towers from 15 years to 30 years is expected to reduce depreciation and amortization expense by approximately $411.5 million for the year ended December 31, 2024[93]. - Approximately 71% of tower structures are located on land owned or leased for over 20 years[85]. - The company anticipates minimal incremental costs for adding tenants to existing towers due to the relatively young age of its tower portfolio[87]. - Depreciation, accretion, and amortization expense decreased by $117.2 million to $63.5 million, primarily due to changes in estimated useful lives of assets[102]. - Total depreciation, accretion, and amortization expenses decreased by $340.5 million to $204.4 million, a 61.9% reduction compared to the prior year[117]. Market Risks and Future Outlook - Rising interest rates are expected to impact the company's growth rate and future operating results negatively[158]. - The company anticipates future growth in the wireless industry driven by spectrum auctions and the roll-out of 5G technology[163]. - The company is exposed to risks associated with international operations, including currency fluctuations and political conditions[165]. - The company has a primary market risk exposure related to interest rate risk, particularly concerning the refinancing of debt at commercially reasonable rates[161]. - 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 nine months ended September 30, 2024[161]. - The company plans to grow its tower portfolio through acquisitions, new builds, and organic lease-up on existing towers[163]. - The company expects to maintain sufficient liquidity to service its outstanding debt during the next twelve months[163].

Group 1 - SBA Communications Corporation announced its financial results for the third quarter of the 2024 fiscal year after the market closed on October 28th [1] - The company's shares experienced minimal movement following the announcement of the financial results [1] Group 2 - Crude Value Insights provides an investing service and community focused on oil and natural gas, emphasizing cash flow and companies that generate it [2] - Subscribers to Crude Value Insights gain access to a stock model account, in-depth cash flow analyses of exploration and production firms, and live chat discussions about the sector [2]

Core Viewpoint - SBA Communications Corporation (SBAC) reported third-quarter 2024 adjusted funds from operations (AFFO) per share of $3.32, meeting the Zacks Consensus Estimate but slightly down from $3.34 in the prior-year quarter [1][2] Financial Performance - Total quarterly revenues decreased by 2.2% year over year to $667.6 million, missing the Zacks Consensus Estimate of $669 million [2] - Site-leasing revenues decreased by 1.8% year over year to $625.7 million, with domestic site-leasing revenues at $464.9 million and international site-leasing revenues at $160.8 million, the latter down by 5.1% year over year [3] - Site development revenues fell by 7.1% year over year to $41.9 million [4] - The adjusted EBITDA totaled $472.6 million, a decrease of 2%, with the adjusted EBITDA margin decreasing to 70.9% from 71.4% in the prior-year quarter [4] Operational Highlights - The company acquired 51 communication sites for $194.1 million and built 147 towers during the quarter, owning or operating a total of 39,762 communication sites as of September 30, 2024 [5] - SBAC spent $12.9 million on land and easements, with total cash capital expenditure at $272.1 million, of which $257.8 million was discretionary [6] Future Outlook - SBAC raised its 2024 guidance, now expecting AFFO per share in the range of $13.20-$13.45, up from the previous range of $13.06-$13.43 [11] - Site-leasing revenues are projected between $2,520-$2,530 million, and site-development revenue guidance has been revised to $140-$150 million [12] Cash Flow and Liquidity - The company generated $304.7 million of net cash from operating activities, down from $313.7 million in the year-ago quarter [8] - As of September 30, 2024, SBAC had $263.6 million in cash and cash equivalents, down from $309.4 million as of June 30, 2024 [9] Dividend Announcement - Concurrent with the earnings release, SBAC announced a cash dividend of 98 cents on its Class A common stock, payable on December 12 to shareholders of record as of November 18, 2024 [10]

Financial Data and Key Metrics Changes - The company increased its full year 2024 outlook across all key financial metrics due to stronger than expected leasing results and services performance [6][7][29] - Domestic same tower revenue growth for Q3 was 5.3% on a gross basis and 2% on a net basis, including 3.3% of churn [26] - International same-tower recurring cash leasing revenue growth was 3.1% net, including 4.3% of churn, with Brazil showing 6.5% gross organic growth [27][28] Business Line Data and Key Metrics Changes - The services business saw revenue up over 23% from the previous quarter and gross profit up over 33% due to increased construction activity from carrier customers [20] - The company anticipates a growing percentage of new business coming from new lease co-locations rather than amendments to existing leases, indicating a shift in business dynamics [7][41] Market Data and Key Metrics Changes - Domestic new carrier activity increased from the first half of the year, with applications and inquiries also on the rise [6][7] - International leasing results were in line with expectations, but challenges remain due to customer consolidations and network rationalization [11][12] Company Strategy and Development Direction - The company is focused on long-term customer relationships and aims to maximize growth through exceptional service and quality [10] - A significant acquisition agreement was signed with Millicom International Cellular for over 7,000 sites in Central America, enhancing the company's scale in the region [14][15] - The company is strategically reviewing operations in existing markets to maximize long-term growth potential and may consider divesting from markets where it lacks scale [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects of the international business, despite current challenges [13] - The company expects continued strong network investment driven by mobile network consumption growth and limited new spectrum availability [8][9] - Management noted that the services business is performing well and is set up for a strong finish to the year [23] Other Important Information - The company declared a cash dividend of $105.3 million or $0.98 per share for Q3, with a 15% increase expected for the fourth quarter [38] - The company has maintained a strong capital structure with leverage near historical lows and a fully undrawn $2 billion revolver [21][37] Q&A Session Summary Question: Can you size the mix of new leases versus amendments and the outlook for 2025? - Management noted an increase in carrier activity and a shift towards more co-locations, indicating a positive trend for future growth [41][42] Question: Can you provide more color on the Millicom deal's AFFO per share accretion? - Management stated it is premature to provide exact figures but confirmed it will be accretive to AFFO per share once closed [44] Question: What is the expected EBITDA multiple for the Millicom deal? - Management indicated that the incremental SG&A will be between $3 million and $5 million, suggesting a multiple around 11 times for the tower cash flow [48][49] Question: How does the company view its leverage and future capital allocation? - Management expressed no desire to lower leverage further, focusing instead on finding good investment opportunities or share repurchases [66] Question: What is the current churn rate and expectations for improvement? - The current non-Sprint churn rate is about 1.3%, with expectations to reduce it to around 1% next year [88]

PRESENTATION SBA Communications Corporation Third Quarter 2024 Supplemental Financial Data Key Financial and Operational Measures and Non-GAAP Financial Measures 2 This Supplemental Financial Data package provides key financial and operational data as well as reconciliations of those non-GAAP financial measures that SBA Communications Corporation ("SBA" or "We") use in evaluating the performance of our business. These non-GAAP financial measures include (1) Cash Site Leasing Revenue, (2) Core Recurring Cash ...