Crown Castle (CCI) is one of the largest U.S. tower REITs. The company owns more than 40,000 of the cell towers that support the nation’s wireless network. They also have about 105,000 small cells on air or under contract and about 90,000 route miles of fiber. CCI’s revenue is built on long-term contracts with major wireless carriers. We invest in equity REITs like CCI at The REIT Forum, along with mortgage REITs, BDCs, preferred shares, and baby bonds. We also invest in some REITs that have not performed a ...

Core Insights - Crown Castle Inc. (CCI) is a real estate investment trust (REIT) with a market cap of $40.9 billion, specializing in wireless infrastructure across the U.S. [1] - The company generates stable revenue through long-term contracts and is recognized for its high dividend yield [2] Financial Performance - CCI shares have decreased by 21.9% from their 52-week high of $120.92 on September 16, 2024, and have dipped 4.6% over the past three months [3] - Year-to-date, CCI has increased by 4.1%, outperforming the Real Estate Select Sector SPDR Fund (XLRE), which rose by 3% [4] - Over the past 52 weeks, CCI shares have fallen by 19.6%, while XLRE experienced a 5.1% decline [4] Recent Developments - On July 23, CCI reported better-than-expected Q2 results, with a 3.8% surge in shares following the announcement [5] - The company's revenue dropped by 4.2% year-over-year to $1.1 billion but exceeded consensus estimates by 1.9% [5] - CCI's AFFO of $1.02 also surpassed Wall Street expectations by 2%, leading to an upward revision of its fiscal 2025 outlook, forecasting annual site rental revenues of $4 billion and an AFFO per share of $4.20 at the midpoint [5] Competitive Landscape - In comparison, rival American Tower Corporation (AMT) has gained 6.1% year-to-date and has fallen 18.4% over the past year [6]

Core Insights - Crown Castle has successfully concluded a strategic review, agreeing to sell its small cells and fiber solutions businesses for $8.5 billion, positioning itself as the only pure-play, publicly traded U.S. tower company [1][3][5] - The company anticipates a reduction in its annualized dividend to approximately $4.25 per share starting in Q2 2025 and plans to implement a share repurchase program of about $3.0 billion following the transaction [1][7][8] - Crown Castle expects to maintain an investment-grade credit rating while using proceeds from the sale to repay existing debt and fund share repurchases [3][8] Financial Performance - For the full year 2024, site rental revenues decreased by 3% to $6.358 billion compared to $6.532 billion in 2023 [2][12] - The net loss for 2024 was $3.903 billion, a significant decline from a net income of $1.502 billion in 2023, primarily due to a $5.0 billion goodwill impairment charge related to the Fiber business [2][16] - Adjusted EBITDA for 2024 was $4.161 billion, down from $4.415 billion in 2023, reflecting lower site rental revenues and increased advisory fees [2][16] Strategic Focus - The sale of the Fiber segment is seen as a strategic move to enhance shareholder value and focus on the core tower business, which is expected to benefit from increasing demand for wireless data [5][6][9] - Crown Castle's tower portfolio consists of approximately 40,000 towers across key U.S. locations, which the company believes is well-positioned for future growth in mobile data demand [6][9] - The company plans to streamline processes and enhance customer service to maximize profitability and operational excellence [6][9] Outlook - For 2025, Crown Castle expects organic growth of 4.5% in tower revenues, excluding the impact of Sprint cancellations, with anticipated increases in lease and amendment applications as customers expand their 5G networks [1][17] - The full year 2025 outlook for site rental revenues is projected to be between $3.987 billion and $4.032 billion, with a focus on maintaining cash flow stability and financial flexibility [15][17] - The company anticipates a goodwill impairment loss of approximately $800 million in Q1 2025 and a total loss of between $700 million and $900 million for the full year 2025 due to the Fiber segment being classified as a discontinued operation [11][12]