SBA Communications' Q3 AFFO Meets Estimates, Revenues Fall Y/Y

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]