Summary of Array Digital Infrastructure FY Conference Call Company Overview - **Company**: Array Digital Infrastructure (NYSE: AD) - **Industry**: Telecommunications and Communications Infrastructure Key Points and Arguments Company Structure and Assets - Array has three main pillars of value: 1. **Tower Business**: Owns 4,400 towers with a tenancy rate of 1.02 post-T-Mobile MLA [4][5] 2. **Spectrum Assets**: Retained spectrum from US Cellular, with 70% of it expected to be sold [4][7] 3. **Non-controlling Investments**: Approximately 10 investments generating around $150 million in cash distributions annually [4][5] Spectrum Transactions - Pending sales include: - **AT&T**: $1 billion for 3.45 GHz and 700 MHz spectrum, expected to close in Q4 2025 or early 2026, with a projected $10 dividend per share [7][8] - **Verizon**: $1 billion for 850 MHz spectrum, expected to close in Q3 2026, with a projected $8.50 dividend per share [8] - Additional $178 million spectrum sale to T-Mobile expected to close in 2026 [8] Growth Prospects - Strong growth anticipated due to: - Increased applications for new colocations up 125% year-over-year [13] - High-quality infrastructure with 80% of towers over 150 feet tall [14] - In-house sales and leasing operations enhancing direct relationships with carriers [15] T-Mobile Relationship and Naked Towers - Anticipates 800-1,800 tenantless towers post-T-Mobile transition by 2028 [16] - Strategy includes aggressively leasing naked towers and seeking rent relief from ground lessors [19][20] Market Position and Competitive Landscape - Towers are well-positioned for 5G buildouts, with a focus on rural and suburban areas [13][14] - Satellite technology viewed as complementary rather than a competitive threat [29][30] Spectrum Monetization Strategy - Plans to monetize remaining C-band spectrum by 2029, with a focus on achieving the right price [39][40] Cost Optimization and Financial Strategy - Targeting EBITDA margins of 45-50% through revenue growth and cost management [40] - SG&A costs expected to remain high through the first half of 2026 due to wind-down of wireless operations [42] - Excess cash anticipated to be returned to shareholders via dividends post-spectrum sales [48] Future Considerations - Potential for REIT conversion being explored, but current asset profile presents challenges [52] - Management committed to maintaining a three-times leverage profile while focusing on operational improvements [53] M&A and Growth Strategy - No substantial interest in M&A in the near term; focus remains on operational efficiency and growth [54][55] - Interest in build-to-suit models is low, with a focus on maximizing existing tower capacity [56] Leadership Transition - Transition from Doug Chambers to Anthony Carlson is expected to be smooth, with confidence in the new leadership team [71] Additional Important Insights - The company is positioned to leverage its unique structure and scale to compete effectively in the tower business [60][61] - Revenue per tower is identified as the primary driver for margin improvement, with a current tenancy rate significantly lower than larger peers [62][63]

Core Insights - SBA Communications (SBAC) shares have increased by 9.3% over the past three months, significantly outperforming the industry average of 0.3% [1][7] - The company's extensive and geographically diverse wireless communication infrastructure positions it well to benefit from increased capital spending by wireless carriers for network expansion, driven by rising mobile data usage and accelerated 5G deployment [1][3] Revenue Stability and Growth - Long-term leases with tenants provide stable revenue streams, with a focus on portfolio expansion both domestically and internationally to capitalize on industry trends [2][4] - The Zacks Consensus Estimate for SBAC's 2025 Funds From Operations (FFO) per share has been slightly revised upward to $12.72 over the past two months, indicating positive analyst sentiment [2] Market Trends and Infrastructure Demand - The growth in mobile technology, particularly 4G and 5G networks, along with bandwidth-intensive applications, has led to increased mobile data usage globally, prompting wireless service providers to lease more antenna space on SBAC's towers [3][4] - The company’s resilient site-leasing business model, characterized by long-term leases with built-in rent escalators, supports high operating margins and attractiveness in the market [4] Expansion and Strategic Initiatives - SBA Communications is actively expanding its tower portfolio and pursuing growth opportunities in both domestic and select international markets with high growth potential [5] - Recent contracts include approximately 6,700 sites from Millicom for $925 million and an additional 18 communication sites for $10 million, expected to close by the end of Q3 2025 [5] Shareholder Value and Returns - The company has demonstrated a commitment to shareholder value through dividend increases and share buybacks, having raised its dividend five times in the last five years with a five-year annualized growth rate of 19.97% [8] - Following Q1 2025, SBAC repurchased 583,000 shares for a total of $122.9 million under its $1 billion stock repurchase plan, enhancing shareholder confidence [9]