SBA(SBAC) ZACKS·2025-03-19 18:35Core 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 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].