SBAC - Earnings call transcript Q3 2018 | SBA Communications Corporation

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the SBA Third Quarter Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I'll now turn the meeting over our host, Vice President of Finance, Mark DeRussy. Please go ahead, sir.

Mark DeRussy

Laurie. you, Thank and third everyone for us joining Good XXXX thank earnings SBA’s quarter conference for evening, you call.

Officer. Cavanagh, Here with Chief Chief Brendan and our Stoops, Financial our me today Executive are Officer; Jeff President and

from forward-looking, results Some of the today's expectations. XXXX not risks we’ll our we discuss press for may to release to, guidance our beyond. our that including SEC detailed call any filings, on limited and but this information differ is future In and cause in material

Our update we X, obligation statements today, we and November are as any of have no may to statements forward-looking make.

our data reconciliation financial I’ll measures of package, to on the which addition, in of items and The information will over Brendan. other found metrics. these is Investor that, regarding located operating In With include page Relations website. and can turn landing comments financial other our call supplemental non-GAAP the be key our

Brendan Cavanagh

evening. in you, leasing We $XXX.X results quarter million operating had Good third were businesses. and very for positive great a Total the leasing GAAP both site $XXX.X revenues third Thank million. were revenues Mark. site leasing quarter our cash services and with

basis the for basis basis. currency quarter and the or to last including churn. new quarter third operational in quarter over a on the tower Leap basis on were gross of the growth a recurring and constant was is third XX.X% operational, it our leasing leasing terminations. constant XX.X%, organic same year-ago Brazil the including over churn recurring leasing leasing rates same second third on Internationally, leasing and was revenue a on a X% related second cash on up representing cash XXXX, growth gross row, growth strong including from Metro, row, operational exchange million. revenue solid quarter third a revenue X.X% over for Clearwire a basis, same gross growth which in revenue quarter increased which a Approximately impact same year we net quarter basis, the Domestic leasing negatively was X% quarter levels up cash growth revenue reflecting the Brazil currency than next tower in Gross a tower the gross with activity over signed experienced. the basis year-to-date a tower X.X% was of on levels. of again our previously $X.X provided during Foreign currency quarter domestic Domestic calculated of well to basis recurring second a which release, above for was the cash On months. XX third Domestic have strong basis, half X% second activity quarter a of activity based XX estimates in tower and leasing earnings points Same we churn. a third increased XX.X% quarter growth expect weaker sequentially very quarter was impacting the increase revenue for on we increase by constant of quarter of in leasing on last X.X%. was

four third contributions each had we from of big quarter, During again the solid the carriers.

customers major carriers and we solid Newly amendment that them leases. had represented leasing new fourth XX% solid the Brazil signed WE signed active, the TIM. new of backlogs quarter with up expect our had leasing quarter. the XX% providing up Claro, And domestic Brazil, biggest we their domestic from quarter. resulting leasing U.S. of networks, in of healthy strong incremental above and and In came the have contribution. revenue each Vivo, signings Internationally, amendments we remain was in another total investing and with to continued from level a in contributions revenue during XX% lease four big from

and XX.X% quarter from revenue representing site was of site of Brazil our X.X% churn, to with was and cash consistent majority cash quarter, regard the churn leasing from continue with third expenses. pass-through site third With dollars. denominated excluding the of cash of XX.X% leasing Metro, During quarter consolidated Leap, revenues all revenue revenue denominated Clearwire Brazil leasing expectations. dollar see U.S. leases during we to non-U.S. revenues with from in The

next $XX And churn all As the run same-tower annual basis lease of from basis Tower with of related outlook. third included XX X.X%. than churn the year in to we We on tenants full for related the million. recurring the years. was that, was the expect be off our big of other continues leases quarter anticipate Clearwire of third to of approximately September to the the XX, less Metro Domestic in million ultimately we legacy slightly XXXX iDEN rate and leases, from tenants. cash an two have churn in over due certain and revenue fourth which that was quarter has higher points been to four flow $XXX.X annual non-renewal quarter impact

$XXX.X XX.X% domestic margin cash impact of reimbursable cash and through flow expenses. in XX.X% the quarter. tower tower increased industry-leading EBITDA flow margin was a to quarter the was Our million. very pass excluding third in XX.X% International Adjusted strong the

the driven EBITDA leasing results quarter percentage of SG&A were driving over very $XX the XX.X% was for adjusted in strong period. low again in up businesses. total revenue. the as over in with of over line to profit the an third increase and a revenues both million, services services XXXX quarter remain and in were in XX% third of gross by performances continues quarter year expectations the Services quarter our Our ago Cash

industry was XX.X% in in period. Our compared leading margin to year adjusted XX% the the EBITDA earlier quarter

or quarter tower the million. leasing the AFFO margin our was was pass increase AFFO third to business total EBITDA third expenses, was a was it over rates impacted XX.X%. Excluding by had third we than negatively of the $XXX.X was quarter of XX.X% through Approximately $X our the share share on our revenues per in exchange quarter an basis. X.X% in forecasted was currency which to given quarter. July from a XXXX prior $X.XX XX. foreign million AFFO attributable for impact due of $X.XX, per adjusted weaker in or outlook of the constant EBITDA adjusted XX%

capital we both deploying During continued quarter, the and into third portfolio, invest our tower tower expanding to in new acquisitions. builds incremental

XXX for acquired we quarter, internationally. most those third with the sites sites $XXX.X million of communications located During

acquired quarter-end, as sites for sites We XX of million. built $XX.X we the XXX have also XX we for total today, aggregate additional contract communication third and quarter. an have Subsequent million. to And acquisition under additional sites of during price $XX.X

and both provides continue We also to land in under financial our sites benefits. the invest which strategic

During spent million of or towers. At we ground average the the the options end $XX.X remaining an more terms. years. XX life control our our approximately under we of XX land under aggregate the buy and easements owned controlled to lease And quarter, the ground and quarter, extend years renewal XX% than is our of approximately leases for underneath to land including

leasing tower category. those $XX $X.X our by outlook EBITDA our updated and to practice, financing results prior board outlook third the million, AFFO XXXX almost We across acquisitions under share every XXXX those midpoint to Consistent million completed and assume does any quarter Our any historical outlook have and cash full-year full-year increase beyond full-year $X by closed contract increased debt $X.XXX. flow by beyond revenue allowed does us by share of the million, at not not repurchases in per the with strong midpoints or or assume today our AFFO further today. our it additional adjusted

now We increased increased borrowings was primarily $X net for used Mark, under liquidity full-year who will account fund repurchases turn position things to sheet. provide fourth I over for quarters. the the interest have midpoint expense third balance our outlook revolver on and however by to an to share our of and our during million update cash which will

Mark DeRussy

third ratio targeted to and annualized debt Thanks X within range billion debt times. our net X.X EBITDA times our $X.X quarter of ended the X.X Brendan. was of leverage net with to adjusted SBA

Our is the our ratio coupon years. times. was EBITDA third expense interest and cash average is X.X weighted quarter coverage average X.X maturity debt of weighted adjusted cash of interest approximately to outstanding X.X% net net The

sheet our corporate of believe to manage and effectively BB. we S&P credit see upgrade continue We balance we our very rating to are that recent by pleased the to

million credit outstanding And During under third share revolving $XXX revolver. the quarter, today, we under $X.XX facility our billion fund the in to have we as of borrowed order repurchases.

$XXX.XX per an we quarter, were shares third to repurchase XXX,XXX we All billion stock under retired. shares of the the XXX,XXX common A $XXX.XX. spent Subsequent million average During million Class to our stock for $XXX price or of repurchased $X XX, shares plan our repurchase at repurchase September share. $XXX

authorization of September which a company we Jeff. plan. the down today, to end call As under XX, the XX, a X.X% September $XXX.X at shares of over of I'll million $XXX.X million million With XXXX XXXX reduction. repurchase remaining have turn is the that outstanding from $XXX.X at The

Jeff Stoops

Thanks, had strength solid financial Mark activity. and good continued quarter that and our very leasing exceeded operational with evening in We everyone. another results expectations showed

from quarter the quarter levels. XXXX be signed year all continued results of QX increasing all to the outlook four U.S., and third with results. us key business from financial metrics. have our to of activity new a fourth big contributing strong primarily of In came expectations full increase Our to our our positive This in up allowed carriers, them healthy,

continues giving applications services more order the of usage and our backlogs data at the consumption constantly year. networks, needs us growing heavy comfort meet finish their to technologies Domestic continue mobile sites. video Our deploy advanced our strong a to customers high, climb, including streaming. wireless leasing In to bandwidth spectrum remain to like and and

signed In on from MIMO whatever XG, our really all very hard in done customers’ in of takes of done busy, Brazil it leading busier the the up deployment the gigahertz business had are Brazil and as needs again and of have activities had and on one both do with happy in addition, we to FirstNet stage come and years quarter Doing get meet spectrum it of major bands. X.X years with another including our to rollout than contributions quarters to contributions In We're to We're terms been new here carriers. very solid job ahead and leasing customers XXX strong four leasing the they wireless charge. being needs. our from to they're we once services. time in early antennas the for megahertz meet the those also biggest continue budget. we Internationally, working of in

revenue in last our had Brazil growth trends the international positive from new reflecting basis, nice is currency came amendments, in similar in quarter XX in also constant signed over which jump forward. going this revenues We months. markets about organic The the contractual a XX% another the from leasing expect market same-tower up on mix during to leases and XX% would we that

quarter, we During Brazilian once negatively affected the real again sizable saw third the decline a which our reported results. in

some and to platform seen of However, the president reduction the economic improve first elected somewhat. behind us. the in ran with related is Party Workers of and to stabilize Bolsonaro rate now elections exchange investment of during subsequent and on our the outside recently quarter-end of Brazilian reform. completed a We've fiscal uncertainties and President he debt period the Brazil

with under the supportive as growth owners Brazil. pleased by basic sense tower the trends. and of underlying a organic volatile the around of continue the mentioned continued Brazilian be of us noise operations. authorities, the movements in seen of future only clear opportunities growth both call, we the his seems and in for our We the created of to we economy our second are to have continued in in which the And to acceptance operations improving We've leadership. customers. performance is land FX by our industry customers earnings our a normalcy adopted we’re strengthening seen Brazilian and rates, as Regardless some extremely Not optimistic regulatory quarter of

XXX towers and the sites our quarter, third and XXX our transactions add including portfolio continued XXX acquired towers towers part Millicom acquisition also International as several of we in international from El Salvador to to During there in acquiring of Ecuador.

our international in We built towers XX quarter. during markets also

acquisitions. to are markets expect sites and continue to through builds add We that disciplined existing

Western and expansion opportunities Our to open but we primary continue focus the portfolio to in remains for markets. be regularly other explore also Hemisphere

to net we obligations to ensured in additions tower X% Our estimate portfolio again XX% our portfolio entire our target currently XXXX. grow recent to across times year-to-date have continue debt rate. tower the X.X will to which of in Ahead we increase we X in leverage start our by XXXX, interest once dividend notwithstanding

today and Our growth. bias remains toward been portfolio always has

particularly willing it growth. are always to is like we such believe in seeing when stock we However, now, organic undervalued we times our where repurchase strong are

growth focus sheet repurchases component a and balance share of Our throughout our management key been creation on value has our and quality portfolio history. opportunistic

we our These of tower exclusive excited are about in venues. around our built are estate. we with success efforts investments recent and In associated addition portfolio securing are growth, wireless real world-class to some strategic rights prospects other to making

Some of small wireless the cell able venues WiFi solutions. we exterior and and wireless include these are networks DAS provide to including to management, in-building CBRS solutions solutions and rooftop

we we accumulating quality of While will we some are are returns the our believe attractive investments. of early these initiatives, stages extremely in real the drive the estate of on

around existing prototype edge on for the down once potential believe this assets our excited the of development we the locations. we are work industry-leading we to margins. quarter, margins advantage continue these property produced efficiency, our quality and computing of again with solutions. in built Operationally, at our have additional distinct early quality operating a are to of costs very locations continue demonstrating the the locations we But In high-level targeting we business addition, about initial our operations. growing the a managing road. we we and In perform third effectiveness and still It’s of line mobile

so sequentially of at allocation our year the flow second XXXX. us along and of make demand area disciplined prospects intend yet We've We be with our customer EBITDA about are up investments use capital to financing allow excellence focus in and industry. flows will to We're ready for to drive will Our well their And I'd strength third it as far XX.X% has our and growth employees thank of operational access the and tower of optimistic and and last us been. an opportunistic to current questions. share. and cash strong success. our and to Laurie, AFFO attractive this These decisions. as our to year contributions our shareholder margin value XXXX our of to are was the adjusted through cash we time, in customers are growth for per XX.X% for like for we end the time a great This this always this a tremendous over had as the quarter year. both our quarter margin continue from was

Operator

[Operator ahead. Instructions] first Our Phil from Cusick JPMorgan. with question Please go

Unidentified Analyst

This Phil. is Richard for

kind side Just wanted to it X.X% go invoice? despite into the organic growth more rate increase seeing can to a on the churn you're from on and what us should you there domestic up, detail bit how ticking of give X.X% little

Jeff Stoops

it's But we months churn, churn. mean a It's those remember see year, not activity. have all trailing telegraphing rates. and I despite just those been XX before pickup more to we expected rates in as are it's

also function it's as So not year-ago a the strong. being of periods

this. in to the periods So fact helping are comparison the year-ago

way successive that look period. had at one to periods than stronger the were we've year-ago So, it is

than much which the completed quarter stronger of fourth stronger year-ago off than period just dropped year. the quarter last Third

added. don't the the So supplemental seen that periods just churn increases in you've from of revenue successive a, the churn gross and those exclude But the numbers we confuse you as materials. in see can new

Unidentified Analyst

more this on Or I increase trying guess an to are you is, get of… is seeing I in to activity? was what

Jeff Stoops

growth By rates added more definition we for revenue to have to per be tower seeing increasing. those be

So yes.

Operator

from Ric the go with of James. question next ahead. Our Prentiss Please Raymond line

Ric Prentiss

of couple A questions.

supplement adjustment supplement. that the straight noted a line in change appreciate was there your in the we - First XXXX

Looks to about million. was $X was maybe of but indicator that like guys an we done an some Have analyze, business is maybe the it MLA and XXXX? million a should how do don't $X coming You you that? new delta lot think of in

Jeff Stoops

year, had agreement leases plus longer with term agreements were we last done last done as term. extensions Ric have an the are for as new Sprint Well which year the amendments that potential incorporated signed

it's in numbers, a gave at that XXXX longer those you with additional a and it's but at really give as a terms terms, time ago system sign give to so to leases quarter the extend we affects we amendments in and that. you, up we time but just when it whatever's that So it moment guide when it's or you

are again to bit. going numbers of little those different a sure a next to quarter around move going But they're drivers. So little that's one I'm primary be too. the

Ric Prentiss

Okay.

I update and domestic noticed down think average on also the about I what is? Sprint life are that life leases your now was the T-Mobile maybe XX.X% what remaining of those revenue,

Jeff Stoops

is remaining which than at Well, years large. specifically Sprint different five the that T-Mobile's left is sites, years and on about average not the three about on portfolio overlap

Ric Prentiss

And then and pacing. need about I you you market? authorized was the were we versus should Jeff, a out little a And obviously there M&A to at bit think look guys when the stock you as $XXX talked left the for How about about million down question, readout, you down, potential volatile your program. saying last on buyback think Mark do to

pacing the also the So about should re-up when how we of versus portfolio might think the and you program? buyback

Jeff Stoops

has goals. attention fully Well growth been towards high do portfolio our meets always case, we turn we that, then investment money stock staying invested can't repurchases. on we the to all quality would as through like the If that our spend

more very whenever of decisive kind we board than hard So through it’s and others plan some will to. ability to need really have that to reactive say promptly the and re-up quarters be we stock a

the on can't And of that we it's and ran to function before the quality going be. it we that side. investment when really obviously I be portfolio returns all see So the a out, but we would do tell you

Operator

go Nick Del Moffett go with And Nathanson. ahead. next Please Deo we'll to

Nick Del Deo

bit this U.S. in the quarter. the remarks basis in your to a big First came prepared you X.X% from on said And Clearwire XX Metro, of or excluding churn stepped that the Brendan, Leap where up points it churn, quite Can and about revenue four from came of your so or XX customers? talk the a how points fairly XX% number non-big high persistent basis carriers. seems four from like it only about other given comes you be? It will

Brendan Cavanagh

They disproportionate churn amount certainly of a the now. represent

small a a lot a long list it's numbers, of ranging, it's So of Nick. wide really very

providers companies even a stuff. broad, other So and It's narrowband kind dogs. cats lot of includes miscellaneous that it paging companies, are that of

Nick Del Deo

until itself? quarters last this a Should of of kind we as think few for persisting it

Brendan Cavanagh

Yes.

I think that X% up, boosted excluding in our X.XX% that churn these that it we've it consolidations should been level from had, the standpoint has historically, range. to the

two, Over that. - the than or think X.XX% say in new X% don't somewhere year last future. norm. a that it's lower But, range should bit that the that I been assume that be little probably you should It is the to in it

Nick Del Deo

you pretty should then time a from - of percentage talking that what about of your Recognizing a points Jeff few than solutions. little a And small going spent more perspective those like growth a there total initiatives than we from more expect should be they're normal off base, revenue? indoor some non-macro and

Jeff Stoops

while. be early the still to away that to we're revenue. excited way the very But you at there But fast. being basis very take project a about while and these We're good the it's and have will some that really we happy it. to but what of because X% on of per kind we're it's it'll things going Nick a some terms think or get think I of point in us, from results They're doing venues for long a grow be are get things quality some with start be of going very, material. to the a before results of to X% them they

Nick Del Deo

finding What on of sort you are sweet spot? your venues

Jeff Stoops

not some being are unique multi-family organizations be it and mind too the little that future. facilities, we have big will then in Hospitals, yet talk very primary ones educational large things I'm industrial retail would properties are not come some to these and a but coy distant facilities, because extremely to hear ones the that all we're ready name brand about we quite

Operator

Citi. And Michael to go we’ll Rollins with

Your line is open.

Michael Rollins

if few could. I a Just

you to that the of and the basis the you second that perspective? XX cash have third based gross a when revenue get a us international business average can segments can in backlog where sense escalators a And whether bridge the the on can domestic you you revenue give domestic pipeline, frame on are it’s the or gains what Thanks. the then at in on look First, XX-month for for quarter?

Brendan Cavanagh

on the bit bit domestically Oi approximately out of CPI-based piece there. about Mike floors been though leases a Brazil escalators Yes internationally big because component We do on a and it leaseback. on little average. they they of moving the CPI has Brazil and And is such annually are around they're a X.X% the of down have our little the some obviously in some fluctuate

CPI together all blend to the along about little X% can that So with on when other that move average but internationals, depending close is moves. bit you we’re how a

Jeff Stoops

on but materially Yes, months get backlog we tell guidance are question now three into XXXX where the and to to Mike, much the due in don't backlogs ago. were right respect domestically all they you similar I too want will

substantial and very very bookings. supportive of very So, strong additional,

Michael Rollins

side of you've churn carrier And taking the described we where on that the equation churn past based side, of to, for processing should some maybe is of get in consolidations some may on some that are the there place? that terms help about the that the on of think then other

Brendan Cavanagh

we Yes, we’ll the that that you million over approximately. the - two remaining we if We've churn annualized lose that run got you're $XX number talking domestically, was years I mentioned some will assume Clearwire off and are. about specifically on revenue expect Leap next of Metro,

think we in stuff little other X.XX% of about a iDEN we'll those all fourth that's range the when churn of you for away basically is bit have quarter. to And X% where roughly move from kind where We be.

The we fall And timing many next and out. level. of lower years forward. other that's periods otherwise obviously a reasonable probably of that's notices base types naturally be think down turning in of being but off little revenue time certain the is going that's level the but the reducing Maybe it for been So grow. it'll continues a we expect similar depending higher comes are leases others - on that historical and where it so slightly our to so eventually bit amount in to because

Operator

a BTIG. Please have we from Walter question go And ahead. with Piecyk

Walter Piecyk

So QX amendments going the see that to carriers math carriers of nice that that fourth me a in QX you as in do seems into would maintain quarter kind for that QX $XX number there to you're or level XX% year different that QX. kind do think reason or the over and loaded quarter in drop how increase. - in obviously certain we should so in is particularly this Is the guidance activity roll to meaning of the step of similar another I new quarter. at it amendments you million simple years, is think down about back-end a any you about cadence? sequential for When fourth which gets mean, $XX up a million the I the look at past leasing

Jeff Stoops

not we get growth of you nice the XXXX frankly end the buildup that strong. again is as know I don't of this the an this a lot seen reason that nature. is think the abrupt was are today, that Walter, we be step rate in coming lot projects seeing change a in year there nice given fact particularly are of up And the from stuff exit should the through to frankly, we've anything multi-year that year of the and that would this because say

Walter Piecyk

continual levels on for company? the but absolute it basis you maintain an organic in set growth pretty even up going to if that's acceleration a those looks for like rate can Right the

Jeff Stoops

that's - work the to mean why is XX. there because backlog I reason question, the multi-year - coming it's just because from No calendar the your the just stop in coming that’s and a first business today be calendar back projects. Well December getting filling should

Operator

Our Flannery ahead. Please next from with go question Simon Stanley. Morgan

Simon Flannery

And on big you about could a you driving just well lot then a talk and how sustainable little what's that the is, think pipeline, by bit it? strong the you Jeff, about strength service’s do the the more activity four. talked

you are in potential nontraditional new or Thanks. carriers? tenants Now other seeing from what pipeline

Jeff Stoops

our that T-Mobile you lot weighted Sprint. services of predominantly and a tell is will towards I business

as You'll we XX-Q things. see that file and the

no on a should that companies that and do the of that a announced continue combination. hard very change all fair all continue that to could out work all both other down be only actually The outside course path could go be well. of that of terms thing shows really seeing But from transaction. fall short folks, the So, four. we of based would some possibly that, to changes of the will And, are And at probably in big change pending notable activity most Simon, that DISH. of amount the

Simon Flannery

the Activity leasing? in terms of in terms of conversations or

Jeff Stoops

leases. All to signed the way through

Operator

from line New Spencer question next Our the of with Kurn Street Research.

Your line is open.

Spencer Kurn

years? there X% within like to organic fourth over But to the in growing between is is should quarter. faster structurally or be why my look X% climb build, question you higher continues is, as AMT sounds it the anything they growing, going Thanks. X% coming So U.S., level the growth your your And across around is different the today. the tower the is versus two in reach space is gross activity businesses, as X%

Jeff Stoops

two things I apples anything say there's would to are calculations I think point I no, think that. don't structurally don't different. to the one. apples, And

Spencer Kurn

were? to guide just could was the some for color And the follow what those your provide Thanks. biggest I if actions you other to like up, came in wondering looks on just increase revenue. category it

Jeff Stoops

termination of had fees time. little out in, revenue we removed terms their different on had but that had put we that what some had some basis bit don't than leases in had over billings. some projections variety hadn't cash canceled things. of handful revenues a we it's bit additional that collections. that accrual on based them we a of on fees, that of higher came with We we what long were hold a ago a in higher call little included period basis from equipment a We Spencer, basically collections book customers of our tenants some category have that’s - We for had

just it's of stuff. we of bridge, variety bit kind when we is a cautious historical that of bit usually uncertain. that wide we little use also norms you you give because the it's on give kind a to perspective little just So out stock and it, But a but we are project

little a we to have what project tendency a a caution we little sometimes of out than there. see more bit So of bit

Operator

go go ahead. we'll Barden Bank of to with America. next And David Please

Unidentified Analyst

quick On – you the change Dave. any election questions. forward? or give It's since the that it's conversations feel but down of Josh you make the and market on there tangible taking kind worse for Brazil, going had to I better know Thanks the might there with for is you carriers any have

Jeff Stoops

lifting election Bolsonaro can seen looks certainly not Hard of to see occur any with they to kind concessions could in cap would of that change or the say good of the It of the be before other in to for which the structural thing believe a be in that M&A along activity be market. – terms was going there. may the We market spectrum kind addressing would before That both. we've lifting the the very was like spectrum We'll cap may that there. the down happen tangible be down there. the favor happen large changes of happen

are we'll that But why elected. All been he cap in see. our we comments was positive. So, wrapped up was as now of has to kind optimistic the spectrum that

Unidentified Analyst

may any election ultimately leading they about or them elected? have Not what may with on do was you individually carriers. conversations depending who the the not And into did naming

Jeff Stoops

Not on. can that we comment

Operator

And of Rozwadowski our question Amir from line Barclays. with next the

Your line is open.

Amir Rozwadowski

upper the could carriers that sort that. the it's here. the to terms don't seeing to yourselves if XXXX those run the like cap your limit want recognizing XXXX moment too seems either of be at I in pace more growth really some you're I there move we or exit industry may. through along of for an at questions climbers that that the lines move could that couple potential any just ability would the out A to get that there the growth? of trajectory the and rate fairly into Is that tower limitations growth? know through right or healthy for about if there put don't thinking business, In the Are to potential of much now anything are

Jeff Stoops

raw the ultimately of door. other just basic don't in No, orders to anything come I it's the just that think the Besides than demand. amount be going

Amir Rozwadowski

to site a And of or yeah, the I how do sustainability I’m then about about sort think X.X. could sort in or set either at in bands? macro you opportunity spectrum How be that market the X.X, like would And come environment those ranges thinking perspective debate the some think terms X.X, via investment of of there's still this the spectrum about some optimized small investment. deployed that from of been new to types X.X, point, cells macro of thinking for of

Jeff Stoops

area folks of ecosystems. out keenly of actually in the are work folks be probably and you macro who certainly there's think as money will - Googles, players sites, are the the the ecosystem. C-Band very but greater the if Well a based the be participating. greater Particularly the have would are put have there and CBRS opportunities. more C-Band on a But lot the and other be still I The to But of can interested benefit have thought that's lot the good of non-traditional, previously expertise it, into mostly to than I the owners some is from we more to the that resistance macro think the which these a more perhaps economics going probably Amazons in-building WiFi because but involved. not cells, all-in-all where didn't Maybe sense. good substitute for CBRS get make through CBRS. who it some with both, greatest in. Small The an the of may we is things the in-building break and

I think it for infrastructure can a whole. be as only good

Operator

RBC to ahead. next go go Atkin Please We'll Jonathan Capital Markets. with

Jonathan Atkin

A questions. couple of

to and script You indoor all mentioned alongside so business compared venues and things you’re about that rooftops thought the a and other of was in forth. sort DAS low the I talking margin that

positive single to And big the wondering direction the in of big a from interested and or the in in rooftops have terms four Thanks. the was have talked any noticed see sequential volumes any universally then what secondly, of in the in just you across that leasing in flat I leasing changes big is of U.S. from it four? sequentially that So over changed years? you the about you negative terms might volumes four strength

Jeff Stoops

it's big the terms not. who's to last I'd in I and Jonathan the I'll first. not mean, get one cover not strength speaking not red a four, of total as there's prefer amongst whole - we more and who's hot the into were I – equality mean

rooftops from can generally of you terms their of in right. that secure report. the readings them But of But you think CapEx. very is absolutely return I we're that derive pretty beauty your you're CapEx can as there rooftops, well the relationships all own is focused and capital with right much do on know to But require no you asset. something little on you can with invested

Jonathan Atkin

you've that these? to are last coming the would or better assets you planning had new Are portfolio the deploy of where part leverage XX rates for you the there years into

Jeff Stoops

Both.

Jonathan Atkin

in growth just in And we've the changing do last then what from quarters? see interested I inorganic was and the pace U.S. notably lastly, portfolio the you seen couple opportunities

Jeff Stoops

I don't the pace changing. see

quality U.S. the I continue in will think elusive. be assets to the

Operator

& go Company. question next Synesael with the Please Colby our line And of ahead. from Cowen

Colby Synesael

absolute same over quarter quarters? the if growth large XXXX highest Two than somewhere that third adjust leasing law saw on press may. questions numbers where based in In you would would can that we the noted level a get And you I for domestic of see the you to the on leasing executed anticipate that saw And if we a the new you XXXX. at then in next basis, you few curious just secondly… the was I'm since you your that percentage point release a levels

Jeff Stoops

percentile basis? a on growth Absolute

Colby Synesael

No, absolute.

So, not on a percentile basis.

So, I that because same numbers… of get percentage of the to law appreciate large you the can’t rates

Jeff Stoops

If tower mean? I you per as to basis revenue go

Colby Synesael

Like of yes. in terms growth,

Jeff Stoops

tower. for added Always

Brendan Cavanagh

depends pickup was highest Colby. that basis. said the it we we’re on I per what dollars I on you're about. a when - not talking mean period Probably added mean since XXXX site is that

any more year. is last it perspective basis that from time saying, it in per tower it signed what at the up a been So than is dollars has on you're

Jeff Stoops

But in particular metrics that on XXXX peak not that on as as metric. high our

Colby Synesael

XXXX, between high even So though be in there's would the done XXXX? still third watermark and a was next what gap comparable notable the quarter

Jeff Stoops

Correct.

Colby Synesael

script, am that XXX And currently and second you question, I for in your then, two [MAT] curious, seeing as demand the mentioned, seeing in MAT just the bands MIMO, are only and those you you're MIMO? the you're the mentioned activity X.X.

Jeff Stoops

not give I'm on answer I don't certainly make that. I are the ones. a to can you back us because Call Those tomorrow two sure perfect sure that want I misspeak. predominant

Operator

Niknam Bank. Our ahead. next question go Deutsche with Please from Matthew

Matthew Niknam

on how been rates on range late? given of all leverage-wise and at And little think leverage X.X% change does allocation talk you rates just the you'd capital rising business the to XX% over that that is that closer optimal operate two growth Thanks. share bit Just your then forward impact per a of of at floating higher of given I to thinking like about end about and Can you're debt. rates rate? debt with rising, a to AFFO the you've X% little

Jeff Stoops

your clearly because which floating LIBOR because great take that's going to forward figure to the all what expense And based can you Well, curve great can our actually modelers forward. apply penny, rate a right? for our interest it you as out. laid can clearly out I and will very And the Matt. question assumptions the mean, of be own out instrument it's that's debt very laid a you question can - is can you it you that's And you make

answer can that So you question.

second was your question? what So

Matthew Niknam

about X% Just comfortable Is you've about there optimal been environment? X.X% at have where the X.X%. to current the any operating fairly about you're are how know in change way leverage you the rates thinking rising. to I with guys you're thinking been about you but leverage with

Brendan Cavanagh

Probably not calendar we're us rate get years to the turn - quarter dividend. a because within but as a brings two of of from XXXX. we away That

debt talked enter that to we've on want to going So leverage. as – net handle probably period about a have X% into our before as we're we

that it are is segue we year were it but into it's So than more interest of because of than thinking going we to dividend ago about period today we're how rate. because time and more a the

Operator

Instructions] Nispel Please [Operator Capital. to KeyBanc We'll go ahead. go with Brandon

Brandon Nispel

customers from in on the are any XG XG in primarily to for are get band LTE? are any Number U.S. conversations Two and or seeing one, amendments you having sellers you any have of Number the point portfolios an interest for to you that prices your LTE two, rise? seen Jeff re-farming Jeff. this expecting at changes XG rate with spectrum of

Jeff Stoops

XG anybody is XG think equipment even the true yet. that devices of XG Sellers time are don't quite any or no some to take sit buyers the to that think XG through. as And takes understanding And disciplined because yet. going something there expect but into other - well. my And sellers And I is our is with do do re-farming just actually certainly assets. there's changes. that for really think it out work bid so for I the none I never we serious interest changes time get are them? clearly but and is all rates consideration they starting we when expecting

an should will impact. have So have have impact, an it impact, an will

Operator

Robert ahead. line of the Gutman Guggenheim go Securities. from question next Our Please with

Robert Gutman

you activity worked through your or choose it? how year the coming days of initiatives With FirstNet are or mentioned footprint innings, the percentage that in of from areas those about escalating terms XXX.X, have some now these we say far would you describe you entire right wise where however sort to through in buckets

Brendan Cavanagh

the third inning. Maybe

Jeff Stoops

inning. about kind third an of guy, innings I'm the how

Jeff Stoops

last think right, that's question, our Laurie? I

Operator

We do have in question queue. one the remaining

Jeff Stoops

night. one last a call that it take we’ll and We'll Okay.

Operator

James. to Prentiss back Raymond go We'll Ric with

is line open. Your

Ric Prentiss

share any have the would really looked other assets Western beyond an people of at I I U.S. took with know open guys press European what to but us the up I you to your exploring it questions at asked. a markets see Jeff market? it. have bit Can and little if jumped wanted comment about make none Hemisphere. on attractive

walk kind us attractive of would So drag other you but help what and at market? through every as markets portfolio outside already us obviously you you're how at an of think both make look in. look about understand market What

Jeff Stoops

every against we mean this potential particular on make terms blinded upsize where risks other those I the the we actually at have there to after South something and in stuff feel America, growth operations. been weighed into because there where Europe really borrow think what things in from way. take returns other in haven't spread account the European of all the of problem fund can appropriate, by negatives positive And I Well skills We can in done on aspect. and at been down has who we've how us Latin the take money to for on good we movements infrastructure Brazil has reals particularly we euros funds really markets. and potential and in that. that been America we've percent pretty things kind can based competition the and everyone just those the like our appropriately a taking the a we're zero found

to course But that we sense they come us. we and risk not assuming plus higher for returns double-digit did So homework the make afraid to we'll go have parts have evaluated obviously to of looked globe at with be our for be would conceivably and did would to and would at looking there. other carefully of them be

Ric Prentiss

we makes it how And checking - think should box are do on, and you to check what how many of attractive… the about carriers the just think trying

Jeff Stoops

work. where to I market. multiplicity ever very mean carrier a rare going the can situation make model to It's of the into right carriers have have be to you go you've two obviously got to if

very than rather well. much able example and been do that I rule. have Nicaragua very, exception think the more that's done to We But the for

three-carrier and disproportionate generally market you're a evenly three-carrier three-carrier market. relatively at to be spread market So not a going looking

it, think work that's lot never of need of telecom to parts do there, us of all get there's industry the the there's never. shareholders we a a because these expect where lot lightly make You're going the going need and lot off I don't expect to to say our and - do. markets They and take it the a decision. that unequivocally to but understand we would you're to other and what world never to us of would right basically in they feeding the in politics

Operator

turn our for it remarks. I'll to back closing speakers

Jeff Stoops

thanks give Well, year and call we outlook. for our and you look to results our us XXXX forward where we next our wrap joining will up everyone

Operator

and this will Ladies for our participation Executive your and gentlemen, for teleconference for conclude Thank using AT&T Teleconference you today. Service.

You may now disconnect.

SBA Communications (SBAC) 5 Nov 182018 Q3 Earnings call transcript