SBAC - Earnings call transcript Q3 2021 | SBA Communications Corporation

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the third quarter results for SBA. At this time, all lines are in a listen-only mode. Later, we will have a question-and-answer session. [Operator Instructions].

As a reminder, today's conference is being recorded. turn DeRussy. over to of Vice like Mark Finance, now the to conference President I'd ahead. go Please

Mark DeRussy

Good evening, you XXXX and thank earnings third for conference quarter SBA's call. for joining us

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

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

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

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

Brendan Cavanagh

site third Good Thank million revenues end operating and revenues cash had and quarter financial our with of $XXX.X Total ahead were the $XXX.X site results strong SBA you, year. GAAP the million. momentum for into continued evening. of quarter another the were great Mark. leasing leasing and expectations

new of of cash gross the growth bookings application XXXX the new churn. quarter execution, X.X% a year the Same the a to tower domestic with estimates exchange the the during a basis. the quarter, operational level constant throughout X.X%. this were third support Foreign high of on our third gross growth currency previously basis, higher grow which same-tower on at XXXX. finished million second On quarterly year impact balance same-tower leasing our growth and leasing third on a quarter last contract quarter positively of of a including continued calculated since quarter comparisons activity rates on churn. similar continued was basis quarter is for to These net revenue X.X% new or X.X% placed representing revenue third and under our Even new for of cash a X.X% the represented recurring which XXXX. Domestic was basis, of were highest high. leasing level over was this the at amendment by generally the a quarter. the $X.X domestic They for activity and to X.X% over basis year-over-year including of revenue though was quarter, with FX rate impacting in recurring third forecasted level multiyear Domestic a lease operational line and had tailwind backlog into revenues on the expectations quarter backlogs leasing and strong during XXXX,

including quarter, third represented The incremental experience consolidations carrier anticipated in as Verizon over bookings quarter we the the the and of amendment some of impacts and to quarter-over-quarter other and coming X activity network T-Mobile, big our year. grew further highest well a was X.X% again in increase increased leasing churn on cash the Churn basis, is activity. Internationally, of In increased constant organic our leasing was as contract revenue basis. international a leasing Gross had quarter. signed Brazil up modifications on X.X% currency largest constant XX% we in During another Central carriers AT&T, currency and represented America. was domestic growth quarter in Brazil, same-tower a market, and revenue International activity X.X% leasing new leases. on during with domestic X.X% growth DISH net, total of from basis. gross the same-tower of XX% XX% a or of

was dollars. during Brazil denominated quarter cash flow representing was revenue the During leasing The dollar-denominated was site expenses. Brazil, of revenues site non-U.S. majority third consolidated from $XXX.X XX.X% revenues pass-through revenue, quarter in the site cash quarter, for of the Tower revenue third with cash X.X% U.S. XX.X% and leasing of excluding from leasing cash consolidated of million.

margins margin strong, an tower in Adjusted quarter the tower reimbursable third flow or quarter cash XX.X% million. quarter. with margin adjusted excluding tower remain the of flow $XXX impact cash expenses. Our third of margin was the in very EBITDA was XX.X% flow XX.X% a XX.X% The cash EBITDA and pass-through domestic international of

our EBITDA Excluding expenses, the margin third leasing pass-through was Approximately our attributable business of to tower in adjusted EBITDA the impact was adjusted revenues XX.X%. quarter. of total from XX%

our development our we over results our the of another XXXX $XX.X full Activity million grow, at the in development was quarter $XXX.X an third quarter our quarter, revenue the profit. a and million Based quarter, per for strong in the of quarter AFFO the During of $XXX $XX.X increased in expecting growing of was range. revenue the backlogs quarter second have of history. third on row $X.XX, levels year midpoint third million and for also backlog, site at revenue XXXX. now for quarter all-time services increase outlook operating million. high record the in third very third to in XX.X% remained quarter finishing company's business a site share AFFO row, segment our outlook level and the continued in the with produced high

third XXX consideration for quarter, of portfolio, acquiring continued to communication total our the expand cash During sites million. $XX.X we

to revenue existing sites of sites price million on aggregate X,XXX XX end, approximately from Subsequent closing the acquire by in also purchase $XXX million, towers in fourth in year, next outlook quarter and of at we We Tanzania. quarter updated our the related that but the starting of have anticipate including year. associated this included closes the We And the have we to transaction sites previously have we these $XXX assumes acquisition Airtel and sites purchase end anticipate under thus, prior contract the expenditures entire to Airtel discretionary X,XXX XXXX an our flow the our with stages the the the included announced year. close are no of or new with outlook Airtel of in purchased to for or tower assets. Consistent approximately outlook, quarter. to under price quarter our approximately markets these cash built capital Tanzania second deal end we for additional in agreement

also In invest addition tower under we the in to new assets, sect. our to lands continue

and earnings XX increased options spent we leases, XX% and we of full expense high quarter leasing These foreign strong of repurchases. impact the customers, lease exchange owned development site our approximately domestic adjusted with churn, EBITDA, includes an to cash in revenue, of rates, bookings during press XX the we refinancings will of position revenue under XXXX, as underneath an outlook updated quarters land increases incremental the cash our is per improved call. interest million result turn to outlook a quarter, timing organic on and our anticipated In domestic for buy we our earnings leasing end recent this easements life balance release, years. recent services result which third than levels approximately domestic including and anticipate During activity We for controlled share XXXX. updated average the towers remaining consolidation our $XX.X the of things quarter, of renewal on afternoon's At quarter included weaker year or and shifts AFFO the extend our and I our update that land aggregate the Notwithstanding ground will supportive leasing terms. our in liquidity With expectations carrier who reduced from our our second under flow, will years site AFFO be assumption fourth control, over provide share. to share tower that, our of Mark, for revenue, now and fourth will more sheet.

Mark DeRussy

with ended billion We of total of billion and Thanks, debt Brendan. $XX.X net $XX.X quarter debt. the

Our net was annualized adjusted ratio EBITDA debt to X.Xx. leverage

net the revolving the expense the X.Xx, net from cash its amendment to July company ratio facility. of cash history. highest increased interest On X, commitment $X.XX to third date facility billion those EBITDA things, coverage credit interest rate for July the other total the commitment under quarter in margins XXXX, amended the company's and the adjusted interest under fee X, Among applicable was the rate perform facility facility, lowered billion, commitment targets. and of through incorporated against the sustainability on maturity based allowing the the we facility $X.X and link fees interest extended adjustments into targets Our how

and for offering X.XXX% interest trust billion rate On outstanding drops have issued blended we X an principal notes maturity the which associated XX% amounts repayment aggregate our date April XXXX. average And anticipated average date XXXX-XC XX, X.XX% of with weighted outstanding with On final the company anticipated years. forma under were company a today, no revolver. date $X.X amount Pro October average approximately all aggregate the October and of repay proceeds to final tower which weighted of will X.X% revenue of senior As of entire aggregate rate XX, maturity the an Net facility these of the billion anticipated at of of XXXX. revolving through have our par October had X, $XXX And of of repayment the is of which X.XXX% XXXX-XC, secured such interest maturity of Tower a Tower our the interest XXXX-XC, of date X.X X.XXX% tower $X.XX costs Series through debt to and and redemption. the years. financing secured remaining activities, existing amounts used outstanding securities securities Securities pay Securities, XXXX. Series X, million an XXXX October entire XXXX, debt weighted the fixed. on this April the a have principal under repaid anticipated XX, from outstanding premiums to a rate XXX repayment date these October of and amount million repayment of XXXX, have redeem date credit to revenue life an and of a proceeds XX, The be XX, used

$XXX discretion. September share. quarter, million additional price $XXX per we stock Combined, $XXX.XX the repurchases of XXX,XXX at an had we an $XXX million under repurchase company's for repurchase $X new of by shares the new Directors an of After was Subsequent our otherwise repurchases, average modified the million authorization million XX, Board were until XXX,XXX repurchased stock plan. to purchased continue these third per retired. common billion repurchased and average replacing Board The a price terminated purchase the shares All $XXX During at billion has price per plan at sole October prior of in we plan XX, any $X for we authorized On approximately $XXX.XX. for or remaining shares of share time the will company's of time replaced deadline the Directors repurchase its share $XXX.XX. our plan. stock no the average of subsequently

As XXX.X XX, XXXX, new September of company XXX.X of today, full authorization at X.X%. reduction $X has billion company the compared XX, shares plan. XXXX, remaining The September of under at the outstanding million the were million, to a

we payable and which third the the quarter during record dividend announcement $X.XX And turn I'll to on or million payout fourth material room a to on over for quarter us future growth. Today's XXXX, XXXX. quarter, Directors now AFFO of XX, declared leaves announced addition, that, of we shareholders In business $XX.X per a close dividend paid of With the call share, of our November $X.XX ratio of represents of today, share per XX, of XX% as Jeff. dividend declared per Board share. of that December cash a dividend ample

Jeffrey Stoops

and good everyone. expectations. very quarter Thanks, exceeding our in third the had evening, Mark, We own good quarter, another

adding steady. megahertz quarter, of XG high revenue was our As continuing continue very gigahertz levels customers facilitate Notwithstanding new to of our during their of business. high elevated their signing XXX up we leases from continuing second DISH multiyear signed the expect to X.X of C-band new their Verizon build-out applications. balance deployments; pending deployment you've agreements in we leasing levels our pace nationwide amendment we AT&T of spectrum; their the heard, the ubiquitous beginning the leasing third into activity and of quarter the high in remaining through of with brand-new domestic that the backlog up network; and on and backlog the busy quarter. quarter, still Each torrid their new well U.S. we XXXX. T-Mobile and year conversations continue this and see carrier to this seeing activities Based customers, finished major

domestic third quarter, record. leasing second high to activity levels, our in the In we addition revenue services produced quarter record surpassing

outlook the their our leasing The us again XG year to in Internationally, are backlogs, our sequential networks. to solid increase and items. networks, for quarter results We for plan. produced growing on building ended focused full company backlog the we and and strong to performance during third our upgrades executions quarter-over-quarter to continued backlogs began third to of see reached return line quarter were of their out Similar ahead with increases and activity. macro services particularly time targeting starting all-time levels markets new at all to quarter customers all our have Our leasing revenue-related domestic grow allowed to a end. that new amendment up the quarter in lease pre-pandemic

and through new revenue up to XX% signed amendments through leases XX% new we the During of quarter, leases. existing international

our came and leasing from Brazil largest contributors Africa, international Our South largest results markets. X to our

international we across planned, As from Brazil, will to by pandemic, very periods during the auctions our well we of of our these We so growth several more customers, and to our hands increased for continue our a in to customers to over are spectrum continue put into continue do investment made which and the expect markets the of the the network including customers next see markets level of in to number recover expected future executed upcoming our are spectrum committed demand. carrier years. quarter,

continue sheet quarter returning positioning regard operating capital In our we to and to with balance to our addition strong our our to shareholders. improve third results,

will interest X.XXX% During The financing, shortly existing $X.X notes. Subsequent new securitization outcome the for weighted interest size securitization the our the in to of these as extended credit ABS approximately cash the result $XX pricing. rate the unsecured highest capacity our X.X% savings long financing and term of term financing also we we a revolving debt remaining and be and is securities positive refinancing repay end, facility, debt quarter, of of is achieved was financing. history X.X the increased activities our these net The particularly completed a average weighted third quarter improved proceeds years. $X.XX of billion This million. SBA using average to the some of annual billion XXXX we new

across EBITDA X.Xx to ended the well As middle our X.X all Mark mentioned terms. our earlier, debt interest adjusted and dropped annualized our lowest of average pro in to ever, forma rate debt we target of X.X%, the at range net weighted to quarter our of X

share. very at should low-cost higher, of we for debt ability our maturity Our allocating position our per out additional us our cost the extend investments drive to per gives and continue benefit our AFFO operating flexibility in the repurchases of business future been and The capital liquidity debt great expectations and shareholders. growth share to of around AFFO our into make stock lower the combination levels dates, to buying future have accretive

to quarter, both portfolio and we building sites. our the During through continued acquiring new to add

additional to closing anticipate up transaction majority Tanzania sites signed the of also and by agreements on our year-end. purchase We

very generate to to opportunistically to good X shareholders. last million In paid allocate time industry over feel over and growth, very earnings capital good shares and in last SBA fourth and since our stock, back of year. structure portfolio We're quarter ability the incremental quarter capital to dividend fourth an announced we our our for about for our We current dividend the addition for value in represents buy specifically. a continue increase of the XX% call, repurchasing

are very busy. Our customers

to our our commitment us. is future opportunities members financial to opportunities, many and position look year-end Our now questions. our with I customers those the contributions about We're are and their for that, thank and their excited And success. forward quarter. and team pursuing with want to continues I sharing very for our strong next to hold ready results you we for Ryan,

Operator

Instructions]. [Operator

with Raymond line Ric of Our from the first will come Prentiss question James.

Richard Prentiss

actual couple of yet, in leasing it fourth it about we like, step services specifically as new backlog, in I the guys excited into business, know pretty activity change far 'XX? A not I level as should are U.S., the Obviously, 'XX business. guidance loaded, now how you How we does quarter the throughout look about giving but number? up. not plays here probably If at fairly questions. like 'XX implied a amendment it build that the think you're visibility lease pretty looks think how sitting we're the you should Is November, that nice what the pretty pacing with have of some to in to looks good --

Jeffrey Stoops

that fact we as ago next what the the be least happens that build, some what the things have given to year. for and will and off we then quarter report see we'll had going -- a I pretty it's basis a as that to fourth on think mean, to some we Ric, this going start at back knowing XX move year. we of first working good quarter into I this Well, of we're year-over-year year, trailing with the middle those in comps because of lease-up And then half numbers year

Richard Prentiss

some the quarter-to-quarter Okay. up. anything on And We've side, in have U.S., you of set specifically the some guys escalators where that you there seen more fixed. causes swings on your then varies tower contracts guys is way the that any the the bouncing have escalator other around

Jeffrey Stoops

in U.S. Not the

Richard Prentiss

consistent. obviously, sound consistent, Fairly pretty maybe X%, X.X%,

Jeffrey Stoops

our stuff Yes. I the CPI-based. international is mean, in lot U.S., a of Again,

Richard Prentiss

be and to be of kind at? how to of for going maybe size me. you're you're and side? frame indication nearby discussions with having T-Mobile? kind it us of for going Sprint? Last and those on Is Is from yet looking it T-Mobile sites? co-located you any Can just timing churn, kind what the So magnitude gotten Sprint one mostly just you update Have us

Brendan Cavanagh

Ric, it's Brendan.

around of impact basically our first 'XX. heading in on due churn, them back longer we're we the little were into a churn you That's change that than an Sprint. some noticed for reduce made timing all, It's obviously, anticipating that for we total it adjustment but slightly. shifts timing may all though. That taking exposure So a actually bridge estimates, view It's because perhaps have issue, bit potential our the making to domestic to it. doesn't to our

year. So to I kind would to that expect next move of

some we little it. They given of a total obviously, what this 'XX, I'll learn to of end ranges move we reiterate million. would impact the bit, more as and the $X we've today, terms expect kind In expect past, in that. year, But in about somewhere up around being we

for year based Next leases higher timing us on of when the of terms. end is year the a their hit

range then are in the where And of say, range, brackets the timing it years. million. amount We because higher the I'd And we minimis XXXX, would and mentioned. put range for $XX end previously that be probably our closer shift would of XXXX range biggest and then in to each after say somewhere million I XXXX stated some it's of estimate of to those $XX $XX de those it 'XX expect years. to to to in million in million $XX impact in million, million, be our And $XX around years $XX for million the that. each to just exposure at mostly of of $XX $XX somewhere million-ish

of from, lot certainly overlap And where a of on in totally not sites is are terms In some clear it some it it's that always sites, proximity but is sites. of coming us. then to cases, it's on

two. sites say We it other portfolio greatest as would sites. have of that. still they're direct don't they think what overlap. focus with doing working will relates total they're a the on vision obviously, our But have be neighboring where it's mix to the the I I But through

Operator

Simon Our Morgan of next will come question from Flannery Stanley. the line with

Simon Flannery

C-band to you quarter fourth of will this us about how DISH be we you elsewhere, the by a leasing? are and you billings DISH the So talked X.XX sense of in might get lot help seeing XXXX? And guide on builds had and then you through going the X.XX end U.S. about any the that's Can of up the carriers or go? spectrum auctions, strong put leasing in in see And start Or Or create here that year spectrum think in more auctions encompassed spectrum? talked some specifically deployments? Brazil second in you their understand pace. And that incremental when ongoing pull think do that deployed? of of to much of the bookings to that maybe torrid then recent forward to that much is Could you C-band you this guess, Do flow it guide? or to I revised going full phase can benefits the really

Jeffrey Stoops

will the new on question Simon, understanding, Our that your X.XX last is require radios.

incremental there there the first So from. should will industry some was What benefit be your question? activity that

Brendan Cavanagh

timing. It's

Jeffrey Stoops

Yes.

think DISH is was certain I of back a a and to that benefits this they we've So have revenue. payments a deal of of lot equipment until site parties. each a in commitments and with DISH, begin forth master have such that their before. between things, after explained signing, I schedule the we one before collecting we going mean that installation start But on there and date there's Simon, for has

notwithstanding vast, until vast that recognition that of the tremendous XXXX. had, amount we've lease-ups doesn't all vast, So majority the the of start vast

as much, there the activity, answer quarter, the the the is if is answer So anything, fourth ambition to notwithstanding in no.

third Did think I you question. a I miss the... had

Simon Flannery

X.XX, the of the to the deployment on C-band? might on any sense was that you that see It when to timing start relative

Jeffrey Stoops

same the Well, requirements understanding known C-band. results made with of get my the not you in auction clearing I made. quarter do year. are have get decisions believe mean, and is next I the first that Final decisions there's

see reason start see why second don't some half. we the in I to wouldn't any So activity

Operator

the from RBC. of with line Jon come will question Atkin next Our

Jonathan Atkin

Yes.

to forward? revenue. regions tackle to international So And Europe I the how find out wanted of those and basically exposure on EMEA about domestically, be a maybe might question and going Africa timing you and about then thoughts had appealing separately,

but XXXX generally, people of that more might bookings? pressures thinking think You as construct in opposed that DISH, actually and recognition revenue to respect you any about just affect availability see the with as to might workforce sites. What's talked your to about leasing industry the

Jeffrey Stoops

Yes.

look mean, prices if And lot I look we look that But you get in to over do. sense not our into a and we That's In that, is Hemisphere, a think do terms Jonathan, we fit to Europe mean areas of opportunities the of makes found find all at globe, expect that what right the obviously, criteria. the our we Western some well. certainly opportunities deploy of risk. I opportunities But Africa. keep continue I us that forward a a believe in market. go given has well just And country-by-country people growth, will that everything. find to capital. Africa we we believe as price looking. as us and fine some you at we lot those we for We operate found you other we will we do, of basis. have on to are has

market, the of of carefully we are right other watch suffering terms that In a now. lot labor industries because obviously,

are not. We

cruise. internal We workforce a large have in

of We available crews the training the workforce opportunities for several out okay. that the think outsourced will a now, we right also all of it's some resources years. work. and number working There's use And next over increase

mean, I asked. feel question that we generally, that you quarter-by-quarter a is but think really okay, I So

okay. best tell we quarter, can I quarter, the is you So today feel this next

Operator

line Piecyk LightShed. the of from comes question with Walter next Our

Walter Piecyk

little the and not mean provide about as like -- there a more you churn you extent I portfolio, go is the talked maybe Sprint that the all know Any same any about -- turn they going the to they're are off indication there as same guess. us to I next as through is But in they the the color can originally. recognizing maybe Jeff, that thoughts bit ballpark. the I maybe they're delay, can generally less? qualitatively, sites overall that? on amount, think, X targeting many I were still, more, years, you they

Brendan Cavanagh

seen from in less. this with it's communications like what far, that Yes, thus our that Walt, more originally targeting still seems we or them Yes. thing we've the it Brendan. same generally thought is

think sites. moving some really I is on the here just the of the timing of off shift

shutting You may CDMA some have in even delay seen the down about talked network. they

I think a that it. factor probably in is

think might slightly So is I don't That's the at different. overall but shifting be all, the focus that timing all.

Walter Piecyk

And it QX of whatever, the last think market inorganic you? although this type about was 'XX up terms of stuff, will seems versus on M&A, stuff, still Okay. you with is year. then year like obviously any But look a you're for pretty what the that kind on of like sites, when big in year that guidance, new sense

Jeffrey Stoops

from think for which of perspective targeted more continue on to that opinion, will activity increased it our we as our build our an think we in to Tanzania for X% of do to imagine I some range wall. portfolio enough being us towers and year some certainly hit up end growth. will there's look that end acquisition remain of challenging low we markets is our based historical the without out existing differentiation very with expected next I well. I really selective price and high, continue Prices where much quality, picking and carefully. spots there

-- to So goal will growth the will again all, X% be all be in year. the that portfolio next XX%

Operator

Our line next question of the comes Levi from Batya UBS. with

Batya Levi

a Just of couple follow-ups.

First, augmentation support you on And it. as provide think that? higher maybe Yes. elevated to CapEx, CapEx side, time. that priorities, color allocation about M&A, That's us stay discretionary mentioned help for does you elevated you on churn growth? that more excluding capital ramp maybe should remain Can you some the international can

Brendan Cavanagh

think, been calls that this churn the on some we've on about, churn, we expected and So year. -- talked international as you previous probably we elevated international I seen

an through the of lot Telefónica to and see -- the yet that a fourth with consolidation-related in that so that is on expect impact of the obviously, fourth are primary it And into it Largely the we number just in going quarter, next is would impacts most provided. the experienced which the but in has particularly combining haven't churn, full Guatemala, to be year the fourth to late We the year. with starting expect drive here quarter, in report in quarter we Claro in to reason we being what's year. of jump. the what due to -- not that due But year, next felt

our In with in number America. are a we addition, -- are Central there of customers dealing

We through future of they agreements And we're like. network through end, an that changes where starting face. plans various are due look and their that to working others issues might working are terms some what to come to the have the

So expect we but commitments other that. would expect as longer-term of also business there churn associated that, might as be commitments some we with and well incremental part

consolidation was it QX. the in really going indication to experience we're mostly So churn that though, an about

Jeffrey Stoops

Batya, tend discretionary So the per discretionary see think our way question CapEx was about that implied that non-M&A I up. other it tower. don't augmentations question, is CapEx, asked keep the there. discretionary be of side, your terms practice, in mind, really CapEx? you all, really else on anything going We you don't tower that most, in pay historical the something a material there there's And Would besides those customers dollars. which Brendan, to in not our augmentation continues if of

Brendan Cavanagh

the that spent There's on we been acquired. centers some data CapEx

that piece obviously past. the So that we the incremental hadn't be in had might

Jeffrey Stoops

to just to response demand megawattage -- in Yes. And increased that's capacity centers. be data and at that these for clear,

pleased extremely we're that to able CapEx is that be So to invest.

Operator

line Next, the of MoffettNathanson. Deo, Del to we'll go Nick

Nicholas Del Deo

or about revenue results anything was generated least for implied QX, flow midpoint. But my site equal that at the is it math back what into are if first, looks QX there cash leasing like that to tower at through like anything in right, won't carry and similar? The guidance QX QX, billings your helped you

Brendan Cavanagh

FX. Well,

Nicholas Del Deo

their incumbents relatively And activity, of serve? de are and markets the you of mid-band you denser kind engaging I with enough. across the Simple spectrum seeing more right. suburban even towards All is with your portfolio. a you DISH then guess You're in build? Or terms skew or its noticeable novo urban deploy Okay. U.S. evenly that -- there

Jeffrey Stoops

noticeably I skewed. don't think it's

I everywhere. we're pretty seeing activity think much

Nicholas Del Deo

Okay.

else million or in look If pass-through there? Okay. revenue squeeze one That's going your up that on about other hear. Is last I fuel, something fuel $X can was good international, to that at mostly I by for versus guidance. prior is If one.

Brendan Cavanagh

mostly necessarily it's related is there particular, main But we we And costs, is didn't on lot pushing the tenant -- No, come in it's Brazil, to expenses. power ground the that while because across ground those well, that to it of higher It's increased as pass-through driver. as projected higher, the CPI include that is leases starting part it actually our -- to we in a the ground pass -- there, pass-through you through increases leases, leases, CPI pass-through. we where that actually down of inflation a as along didn't with That's as obviously pushes mentioned is plus that's which rents the well. some rents carriers.

Operator

JPMorgan. Next, Phil we're the of Cusick line with going to

Phil Cusick

up. to wanted follow I

said, remarks haven't Do from think AT&T rate? you I here. a the by the is in are up Or period? quarter assume you AT&T that prepared think, is they guidance steady at You you ramped that just that run fourth assuming full

Jeffrey Stoops

No.

of in kind to they to were that up be that they to think times relative we said steady clear, come. I last believe quarter. the ramp will Phil, I

Phil Cusick

Okay. is And that conversation toward is building already? the

Jeffrey Stoops

way said their move me that it believe ramp I the into we just Let leave it. as I activity levels year. next I'll -- will

Phil Cusick

than Jeff. I more expected. That's Thanks,

Operator

Bank David to America. Barden with Next, line the go of we'll of

David Barden

I Jeff. don't on up I can that belly know laugh, follow

called business. are of I in Big are in coming X was magnitude the that spending remarks, months markets. spending actual question the had referenced with spectrum your haven't auctions the And some X, in just international and Big I So also if was not in had I wonder second which happening DISH domestically, what One a but terms heard we the you which the roughly X out then maybe is to guess on is the while, in prepared questions. Brendan, par you

spectrum in interested what last little be problem auctions Specifically, give if That's I'm you XXXX? could would spectrum Africa. market while. perspective, as thought South was in I been a us for some a kind to wondering picture of outlook the South African you the over little messy a from

Jeffrey Stoops

mean you upgraded leasing about and David, you split Yes. through And and I look and between at our parse how domestic when you historically the networks think out amendments. mostly really amendments, comments, get

mostly coming all Well, from where leases from? new are coming So those they're DISH.

quarterly terms with last they're quarter there contributions this for Big in and up quarter, X. other right yes, the So of

we said. that's said we what So why

lot best spectrum carriers XG those this of half tell can the will Africa, South auctions the interplay first not the of XXXX, now they the the back terms government. a is between be pushed In wireless be auctions will suite been The full and have that of spectrum. bit. There's a in but little we but scheduled that year, are for

and X.X it's or X.X. XXX rather, I XXX think

to you're XG. they for tools have So the carriers move up country pick in to what to need all necessary that the going into

excited to customers the from to what will XG. it about So that. It obviously, means in U.S. when mean we're similar XG move

David Barden

say, Perfect. you That I was would what thought Jeff. exactly

just So, Thanks. exactly.

Operator

Michael will next from the come question Citi. of line with Rollins Our

Michael Rollins

seem to this. I'll share in such a to a you mood take some crack generous new be information, at Since

leasing it $XX where So And from you on curious could XXXX, leasing your you what million million. context you edge then the in into role $XX secondly, how future? the you're some just in in $XX about these is in learning mentioned side, years, your and a services current to thinking about $XX thinking share compares to you and million; going the the about delve the And years? of I back of how and couple data further you backlog And for and SBA X 'XX, Can was that multiyear centers had backlog. XX-Ks about was you're if to play highs million. on over services those backlog had

Jeffrey Stoops

earnings is disclosures, press disclosure about That have XX-K backlog, -- And talk apples release. are it's when signed Mike, applications. oranges revenue. leases to talking we the yet we script commenced and in not about that Yes. The it’s and our what were

correlating. backlogs. really those It's a I'll So more give little things color all-time are the it's you on high X not ever. high services, for But multiyear not

it a up of degree But notwithstanding high, probably the For the high back signings. it to going quarter, a heady And XG it's very multiyear is jump big in a took days. good. leasing,

we why that's So good second say your what What was feel about we year. said question? we and next why

Michael Rollins

the centers you're learning edge? What the from data and

Jeffrey Stoops

is of we see now where we're in that. me things with business, to them to the we -- synergies these like a facilities have one needs we cases, general, center micro because good being sale data in made the built. many But we it's we've in edge space. were tell addition micro And was and What -- the or that generally learning more able anybody got edge X X not to provide that space data that centers

disaster a recovery, big backup. there's redundancy, for for demand for So

that headed not about edge to we model a that we out, is I'm but as hub-and-spoke from the tower our the direction. moved it where talked earlier slowly the sense playing is the sure albeit quite really most makes because this yet to So think perspective bit site, has in little

Michael Rollins

so think this goes time? towers data more towers you to centers centers? this owners over are do into? does evolve And where Where data of a Are partners lot

Jeffrey Stoops

much know could It at truly I those convergence, converged of universe. right into in I that computing degree evolve be yet. think power And does it how of is directions. ultimately, the the site. Mike, evolve either think cell more But we needed a And don't will

Operator

Goldman Feldman question next with come Sachs. line Brett from will Our of the

Brett Feldman

there U.S. assets between views And I deploying reconsider between your to second whether in anything would what a Would on fiber the have maybe the locations? to seeing guess synergy see on I'll uptick there anything fiber from the maybe facilities in investing the imagine data Big using and the X that connectivity, the we between standpoint But from historical could going if from in to question. you're not it's you know curious your then suggest percolating? edge I'm real you can enterprises the you mean, to a a looking nontraditional conversation infrastructure? systems again. backlog sites. if center on going tenants, just start to deploy in follow-up big offer we're is be CBRS-based in start And at your the that one. backlog, I is I were calling But those

Jeffrey Stoops

the could control time, offerings solutions product We actually as easy I will mean that first it to destination the good. said, rather, sense fiber. question, be time to to that hard your you edge ends full think, a and Brett, of go it's where both have own. to On of make to micro when you've a at funding well, running sell -- we space do got customer over it's fiber suite someone the between we same not sell someone

it think I It's a we that's I of to ends things -- deployed control. fiber enter. when -- never way and and developed would see be that been don't joins has traditionally we'll So the say But never. we we know X don't going more bought, that business

Brendan Cavanagh

the small, nontraditional there backlog, percentage have of but right And it's the tenants the of certainly, now are terms active so some then big because total in with a we as them. that Brett, the carriers backlogs pretty partially in are backlog huge

And overall it's of in terms its immaterial impact. so pretty

Jeffrey Stoops

in in clearly some from lion's the share is X. there's there, it But Yes. Big but

Operator

Our question with from comes line of Cowen. next Synesael Colby the

Colby Synesael

one. follow-up Great. then and another quick One

the quarter. what quoted just international see was quarter XXXX? in to anticipate XXXX fourth the a being elevated the press we’ll elevated in in Or it to Is guys mentioned, then you relates would thing? it secondly, be you've As this that And you churn think Jeff. highlighted release, X in you expect versus to churn I ultimately

wondering the that? beyond. to you've than maybe does We in expect particular was as leasing tied domestic really is relates you XXXX AT&T made I elevated some Or could continue expand into Is And to to that? on of DISH? if there that activities through factor how just perhaps already and more really that. even comments it just

Brendan Cavanagh

be obviously international fourth expect the trailing a only next quarter on not especially Jeff, when numbers, year, our to months we elevated the the into because churn on I'll side. -- churn I it's in part in quarter fourth basis. start same-tower but do it report XX

will be of throughout in us the with carried QX balance happens So what the year.

next full in its in year this terms the of the because than will higher be of late concentration year year certainly year. impact So

Jeffrey Stoops

going out going to C-band, and the of stuff length the I into on think you historical Colby, comments is, is norms that of the on when that's to AT&T the DISH pretty move activity, X.XX to where And just the about not where XG cycle easy XXXX. where and of really from is it's Verizon see is mean yet, the even activity Yes. Mean next. the G life reflect upgrade

Colby Synesael

we I having an think one in opportunity a investors line in now that mean acceleration? then think flat of you Or that we 'XX? continue that actually big I start are just we is could to there step-up? debates for be another to Do see the situation do is, where

Jeffrey Stoops

know next don't don't I we year auction answer X.XX that some point, see mean specifically that I know flat more until for to line. to I the about has question at But years that and think understand timing. But the importance of I investor or line elevated understand I not, I how an of perspective. activity. flat more from mean the of some we see

Operator

the Luebchow line will Our next Fargo. of come with Eric question Wells from

Eric Luebchow

later could Just this curious color, week. mentioned could a think across spectrum us up same you stepped amendment you coming on that market? Brazilian wave some tower another if Do there's growth maybe the provide and there that Brazil, up quarter, activity of auction in the drive you

Jeffrey Stoops

carriers do offer that's which XG what's clearly because is yet really necessary a solution, being not have put for they're that forth embarked up. they to really -- I the being the Yes. spectrum

levels. much that activity similar on in into going U.S. auctioned going when the here you're spectrum is like what's have and So put use, to

the -- to want the lease-up? of terms speak, Brendan increase In you to

Brendan Cavanagh

stepped are things. we it's at the been CPI-based escalators last it's activity X then inflation caused the where increased had has our year. And that's seeing quarters One increasing. increased mean, what the to up, leasing the because be Brazil, higher it in actual is addition, beginning of over have over really sequentially of rate the in X increases. so combination escalators as I the of Yes. increased growth a And

levels. of spending think we're Brazil, the some more starting I out to in carriers moving we of more COVID-related serious towards really, traditional come the see as periods back

And encouraging well. as so that's

Eric Luebchow

me. for follow-up one just And

next building towers You year. more mentioned

what could Just seeing building then or yield? requirements in NOI sites or which remind for opportunities you're of perhaps of like you for return kind new and us markets yield you're today terms development underwriting build-to-suit

Jeffrey Stoops

We every which year active. next sites in build currently we market in will are

X. more XX%-ish we're of looking those most So generally And in flow today. markets, -- yield sites tower cash and than on at day we build

Eric Luebchow

it. Got

U.S. have last fairly been So where the years? the that includes slow newbuilds few

Jeffrey Stoops

Yes. That does.

Operator

Our David will with from next come Street. the of Green Guarino line question

David Guarino

I you sites could around there's on was the feel renewal And provide land any if a for lot that have X,XXX in if updates Oi. you in updates any was specifically, was are think like ‘XX, wondering I I underlying wondering moving Brazil it on up of pieces.

So revenue any from loss of if risk understand just those trying sites? to there's

Brendan Cavanagh

you're about that actually, we with talking that acquisition not, believe, I And those the beyond there's now expect continued and Yes. goes out leases really that us be -- No, Yes. There's sites, -- the... actually on. concession did. out, Hawaii think, I commitment the that we from will we'll as longer than extend those from a

Jeffrey Stoops

XXXX, I Two-thirds to believe.

Brendan Cavanagh

Yes.

Jeffrey Stoops

then is doesn't And next until XXXX. of in with network year. is transaction not sometime come sometime consummated rationalization out that -- thinking get the aspects latest supposed That that until the starting that now Yes. that,

David Guarino

reflect that once gears talking switching revenue the DISH Does commencing about that to X going question to guys to concentration then, the on Big sites? Maybe as tower Okay. DISH your carriers. part earlier about an table you're of starts back customer going update mean you the

Jeffrey Stoops

Sure. Yes, of course.

Brendan Cavanagh

par they're the significant Obviously, revenue, Yes. contributions and zero, leasing giving once obviously, revenue. to are much mean, I with they have XX% But total other at I of sum starting considering we're the at Their mean now. above percentage. lower of level, reach they'd to that a the concentrations carriers -- is achieve activity a that. on

if that contribution. level will of ultimately that they we do achieve So

Operator

in final question KeyBanc of comes from Markets. time Capital queue Brandon line Nispel this our at with the And

Brandon Nispel

One, guys I coming you questions. there? see Do out else so expense Could be additional could done -- then And you blended going on and down? on you Two provide incremental guys you rate think anybody run PG&E called interest asked. is what to there you sheet, forward? Great. interest comments the of X.XX% or Any comment some costs could assets. don't then leasing balance I just think savings.

Jeffrey Stoops

from all plan, we PG&E the all benefiting is that contributors earlier from discussed activity of general. ahead of the in U.S.

that. with And... extremely we're pleased So

Brendan Cavanagh

the just X.X%. potentially balance correct We as last now where There the Really, what forma the see and -- that we hit pro the rates on deal we've are average to dates. have probably On rate done interest basis, now I possibilities. several come dates some next but just refinance other said, opportunity interest obviously There's the to some you sheet, to that over majority have is some up we'll with maturity years. the a month. have that we of completed are those this past think additional improvement, vast

Jeffrey Stoops

Ryan, is question? is Or another it? that there

Operator

further in queue. We have no questions

Jeffrey Stoops

joining day. our sometime us look Have forward a Well, you, February. thank we evening, Great. for to and great this quarter everyone, in fourth reporting

Operator

your gentlemen, does participation. ladies I'd that Okay, you and for like today's conclude to conference. thank

You may disconnect. now

SBA Communications (SBAC) 2 Nov 212021 Q3 Earnings call transcript