SBA(US:SBAC)2021-08-03 04:32Financial Data and Key Metrics Changes - Total GAAP site leasing revenues for Q2 2021 were $524.1 million, with cash site leasing revenues at $514.6 million, reflecting strong performance [7][8] - AFFO in Q2 was $293.5 million, translating to an AFFO per share of $2.64, a 15.3% increase year-over-year [17] - Adjusted EBITDA for the quarter was $400.2 million, with an adjusted EBITDA margin of 70.7% [15][25] Business Line Data and Key Metrics Changes - Domestic same tower recurring cash leasing revenue growth was 5.5% on a gross basis and 3% on a net basis, including 2.5% churn [9][10] - International same tower cash leasing revenue growth was 5.3% net, including 2.2% churn, with Brazil showing 8.9% growth on a constant currency basis [12][13] - The services business generated record revenue of $51.4 million, with a segment operating profit exceeding $11 million [16][41] Market Data and Key Metrics Changes - The big four carriers (AT&T, T-Mobile, Verizon, and Dish) accounted for 97% of total incremental domestic leasing revenue in Q2 [11] - Internationally, the company saw increased leasing activity, particularly in Brazil and South Africa, despite ongoing COVID-19 impacts [43][44] Company Strategy and Development Direction - The company is focusing on expanding its portfolio, acquiring 57 communication sites for $67 million and building 98 new sites in Q2 [18] - A joint venture with Airtel Tanzania aims to acquire approximately 1,400 towers, with a total purchase price of about $175 million [19][21] - The company is committed to investing in land under its sites, controlling land for over 71% of its towers with an average remaining lease life of 37 years [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a multiyear increase in US wireless carrier CapEx, driven by 5G network buildouts and initial C band initiatives [38][40] - The company anticipates continued high levels of services activity and has increased its full-year outlook for site development revenue by $25 million [17][41] - Management expects gross domestic same tower revenue growth to increase in the second half of the year, with a strong finish anticipated for 2021 [28] Other Important Information - The company ended Q2 with $12 billion in total debt and a net debt to annualized adjusted EBITDA leverage ratio of 7.3, within its target range [31][52] - A cash dividend of $63.5 million was declared for Q2, with a payout ratio of 22% of second quarter AFFO per share [36] Q&A Session Summary Question: Impact of PG&E transaction on site activity - Management noted strong activity and demand in application backlogs, with no significant issues expected from PG&E's plans to bury electric lines [61][62] Question: Consideration of proportionate AFFO per share - Management indicated that while they have not consolidated joint ventures to date, they will consider it if it becomes material [64][66] Question: Update on T-Mobile's plans for Sprint towers - Management stated that T-Mobile is organized in their network planning, but no material changes in expectations regarding decommissioning were noted [75][80] Question: Domestic leasing activity and growth expectations - Management confirmed that DISH and Verizon were significant contributors to leasing activity, with expectations for continued growth [93][99] Question: Details on the Tanzania joint venture - Management confirmed a mechanism exists for potential buyout of Paradigm's stake in the joint venture, with a timeframe of approximately five years [100][102]