Key Takeaways SBAC benefits from rising mobile data use as carriers invest heavily in network upgrades and expansion.SBA Communications relies on long-term tower leases, supporting stable revenues and high operating margins.SBAC expanded its portfolio with 447 sites acquired and 151 towers built, with more sites under contract.SBA Communications' (SBAC) portfolio is well-positioned to gain from wireless carriers’ high capital spending for network expansion amid growth in mobile data usage. The long-term lea ...

Core Insights - SBA Communications (SBAC) is well-positioned to benefit from the high capital spending by wireless carriers for network expansion due to the growth in mobile data usage [1][8] - The company has long-term leases with tenants that ensure stable revenues, and its portfolio expansion efforts both domestically and internationally are promising [1][9] Financial Performance - Analysts have a positive outlook on SBAC, with the Zacks Consensus Estimate for funds from operations (FFO) per share for 2025 and 2026 being $12.74 and $13.09, respectively [2] - Over the past six months, SBAC shares have increased by 18.3%, outperforming the industry average of 6.5% [3] Market Demand - The demand for SBA Communications' infrastructure is driven by advancements in mobile technology, including 4G and 5G networks, and the increasing use of bandwidth-intensive applications [4] - The rise in smartphone adoption and broadband demand is leading wireless service providers to deploy additional equipment, enhancing network coverage and capacity [4] Business Model - SBA Communications operates a resilient site-leasing business model, generating most of its revenues from long-term tower leases with built-in rent escalators [5] - The company benefits from high operating margins and continues to attract wireless service providers seeking additional antenna space [5] Revenue Growth Expectations - Management anticipates core leasing revenues to increase in 2025 compared to 2024 levels on a currency-neutral basis, driven by wireless carriers deploying unused spectrum and revenues from newly acquired and built towers [6] Expansion Initiatives - In Q1 2025, SBA Communications acquired 344 communication sites and built 67 towers, with plans for further expansion into high-growth domestic and international markets [9][10] - The company is under contract to acquire additional sites, including Milicom's 6,700 sites for $925 million, which will enhance its portfolio and leverage trends in mobile data usage [10] Dividend Policy - SBA Communications announced a quarterly cash dividend of $1.11 per share in February 2025, marking a nearly 13% increase from the previous quarter [11] - The company has increased its dividend five times in the last five years, with a five-year annualized dividend growth rate of 19.97%, indicating a commitment to sustainable dividend distribution [11]

Core Viewpoint - American Tower (AMT) has experienced an 11.8% increase in share price over the past three months, contrasting with a 0.4% decline in the industry, driven by strong demand for its communication real estate portfolio due to rising wireless penetration and 5G deployment efforts [1][4]. Company Overview - American Tower owns a geographically diversified communication real estate portfolio, which positions it well to capture increasing demand from wireless carriers [1][4]. - The company benefits from long-term leases with tenants, ensuring stable cash flows and supporting its growth initiatives [2][5]. Financial Performance - In the first quarter of 2025, AMT reported adjusted funds from operations (AFFO) of $2.75 per share, surpassing the Zacks Consensus Estimate of $2.60, reflecting a year-over-year revenue increase [3]. - The company recorded organic tenant billings growth of 4.7% and total tenant billings growth of 5.2% in the same quarter, indicating robust demand for its services [6]. Market Position and Growth Drivers - The advancement of mobile technology and the increase in mobile data usage globally are driving growth in the wireless industry, leading to additional equipment deployment by service providers [4]. - American Tower's portfolio includes nearly 149,000 communication sites worldwide, enhancing its ability to meet incremental demand [4]. Financial Stability - As of March 31, 2025, American Tower had a net leverage ratio of 5.0 and total liquidity of $11.7 billion, providing financial flexibility for its operations [8]. - The company holds investment-grade credit ratings of BBB and Baa3, allowing it to borrow at favorable rates [8]. Dividend Strategy - American Tower has a disciplined capital distribution strategy, having increased its dividend 15 times with an annualized growth rate of 9.07% over the past five years, indicating a commitment to enhancing shareholder value [9]. Analyst Outlook - Analysts are optimistic about American Tower, with the Zacks Consensus Estimate for its 2025 AFFO revised upward by 1.1% to $10.14 over the past month, reflecting positive sentiment in the market [10].