Earnings call transcript Q1 2023

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the SBA, First Quarter Results Conference Call. At this time all participants are in a listen-only mode and later we will conduct a question-and-answer session. Instructions will be given at that time. [Operator Instructions] And as a reminder, this conference is being recorded.

to Vice conference President like host, to now DeRussy, Mark of would turn over the our I Finance. Please go ahead.

Mark DeRussy

Good us for conference you for quarter thank earnings call. evening XXXX SBA’s and first joining

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

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

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

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

to over I will that, With Brendan now first the call quarter results. to discuss turn our

Brendan Cavanagh

you, off quarter. with started a the Mark. year first We solid Good Thank evening.

expectation Our our allowed ahead slightly of and results XXXX our metrics. outlook us full-year to for were most increase

leasing first $XXX.X and $XXX.X quarter site for GAAP million were revenues million. leasing were revenues Total cash site the

compared of the Foreign for forecasted when FX compared first of the headwind approximately exchange rate quarter XXXX. quarter a to rates with represented benefit million $X.X estimates when of $XXX,XXX our previously and a

growth of the the quarter churn. growth X.X% X.X%. basis, quarter, basis, on revenue tower is the for X.X% constant first leasing recurring was cash gross including a impact of recurring first leasing cash revenue same-tower over Same currency was a On which XXXX, of net calculated

through X.X% X.X% steady basis over the leasing year of first remains cash representing churn. quarter and leasing a quarter or similar placed operational including a fourth bookings revenue contract new and quarter. gross recurring the on first activity under net last the was basis, revenue during on same-tower Domestic Domestic growth of X.X% was

of balanced largest We again customers. each contributions from saw our

bookings quarter, During of leases amendment represented the represented XX%. during first revenues activity quarter. AT&T, domestic domestic big approximately and XX% carriers incremental XX% The T-Mobile, up Verizon the signed DISH of and new our total of leasing represented four

in-line the prior churn churn. as last full-year quarter, we was and merger-related $XX churn $XX Sprint quarter projections, with expectations Domestically, million our same our including million to remain of provided

on was Inflation-based have begun our leasing constant highs. same-tower International revenue leasing a healthy X.X% escalators growth these on quarter. including from Internationally, net, our with cash XX.X% was continue solid currency growth, good fourth a also to to to inflationary results basis. their activity basis, of decline churn similar although make rates X.X% again, gross or organic ‘XX to contributions

Brazil, of of agreement previously Brazil on was largest on the same-tower including first our TIM currency X.X% had growth. quarter, organic churn. basis, international another our impact discussed the X.X% In a the impact although good market, growth quarter, we of This weighed rate in constant

and elevated, with churn outlook. International our expectations previously in remains but line provided

be churn, XXXX for churn. high consolidation we related Oi will watermark Excluding international believe the

with any to than would on any into to impact agreement, include to agreements assumptions not that at outlook does other churn the the time. other further outlook XXXX our our reminder, accordingly we carriers with Oi were an Oi enter current the during a if consolidation, associated that we year As related adjust have consolidation related the but TIM the year,

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

first for flow $XXX million. the was quarter cash Tower

margin flow with expenses. cash a very flow reimbursable the tower remain of XX.X% pass-through tower margin of margins of international flow well, excluding or as strong XX.X% impact quarter an XX.X%, tower and Our cash first cash domestic

quarter was adjusted was the The the in EBITDA $XXX.X EBITDA Adjusted million. quarter. first margin XX.X% in

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

During the services first $XX.X with had our and revenue another strong quarter, quarter, segment $XX.X operating million million of business in profit.

our remained also backlogs end. related the new quarter Our XG customers during carrier deploying healthy services at busy equipment remained quarter, and

share per increase quarter of Operations X.X% an growth to From rates over anticipated the Funds of the increased first AFFO $XXX.X quarter interest million. AFFO rates, XXXX. growth year. or in was Adjusted was are hindered which the impact throughout by AFFO first $X.XX, was

During the first portfolio, quarter, communication XX acquiring we our continue to invest in

cash for of $X.X total sites consideration million.

to we the During We anticipate agreement closing quarter Subsequent are year. for price of sites, we the XX end all under aggregate our built existing million. quarter or of purchased also these purchase markets sites. by to in new under $XX.X an contract end XX sites have the on

in new invest to land addition the sites. to also continue our we towers, In under

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

update turn things provide will our now on over to With an Mark sheet. who balance I’ll that,

Mark DeRussy

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

of to ratio end range. X.Xx, Our was net low adjusted leverage annualized the debt below our target EBITDA

quarter coverage a net interest net first cash of remains at X.Xx. adjusted ratio expense EBITDA to Our cash strong interest

we revolving borrowed $XXX And of X.X%. rate our total weighted million outstanding approximately to under subsequent our as revolver under revolver. today, we repaid rate a balance balance current have interest on is and and our $X.X outstanding debt billion of maturity facility. average a The is credit weighted quarter amounts certain During current with years. X.X The X.X% outstanding of average our end,

outstanding current of is fixed. debt on our rate The XX% interest

were currently of repurchase shares million we million. common and XX, During authorization not the repurchase we our under $XXX plan. The $XXX.X remaining repurchase outstanding at quarter billion stock XXXX any did stock $X have shares March of company our

only we to addition, declared share, the our a the shareholders our of or in close XX, business on XX% dividend And cash record May $X.XX that $X.XX projected June on of ago dividend second increase of announced per $XX.X XXXX. million per dividend of an In dividend of full period Directors share. XXXX quarter quarter, over paid as year Board the approximately declared of of today represents the XX% during paid This and AFFO. represents we year payable and of a XX,

call to Jeff. turn the With that, now over I will

Jeff Stoops

evening and good everyone. Thanks Mark

The start XXXX. quarter good represented very a first to

quarter. metrics. Our of level busy at each our remain produced solid organic they U.S. focus customers bands and continued relatively year-over-year mix adding balanced largest was colocations. a activity in execute the of team new leasing to in our brand through contributed The and coverage the equally equipment sites expansion our very key infill growth of their through during support a of of XG and high and spectrum new of to Each activity we to deployment

busy expect of several a below in number XXXX customers domestic stay next activity the of with for reasons. believe relatively additional carrier XXXX, peak levels the our deployment fall network activity years we in we to over will While

due will lapse won later Some year. dual this will the of X.XX the by are X.XX FCC just C-Band still XXXX are cleared C-Band meet approved been frequencies their have continued will our FCC licenses and believe delayed activity. moving have the be The additional and Verizon’s gigahertz supporting been their band gigahertz Dual C-Band developments And with by authority. We development T-Mobile use and to multi-year DISH co-locations to are coverage spectrum CBRS AT&T's licenses approval. requirements. drive be in these until band of forward and customers of and supporting C-Band radios radios all not to planning deployment pending

agencies. is development Also megahertz letter on request held the believes spectrum is and the demonstrates macro-site future additional the from governmental other CTIA The to the spectrum imploring for of of mid-band necessary encouraging the Defense Department House, basis, for available prospects resources rest be demand about will up the network license free to week from be and implications X,XXX for have by for request additional the competitive last President White currently positive to and of sent to the industry network The world. new increasing CTIA would applications volume, quality full-power more made handle which a that with to the obviously activity. activity stay

network provide continued future continuous the XX – believe this SBA. years believe the the for environment same. will a will the has investment, for continued demonstrated as positive we Just We need last be

activity. a quarter with Internationally steady solid we add organic also leasing continued

from and leases particularly Brazil from the of business international quarter, South quarter quarter, leases carriers to During the signed from XX% as new had existing amendments our and up ahead each big the new strong strong well contributions came contributions of escalators. in came market, first three CPI also good-sized from in as with Africa. a XX% based that Tanzania contributions through expectations of internal with

expansion rate our these Brazil and the country. build currency stabilization that outlook. of we to gone our of are XG contributed the related coming expect our GTS We increased relationships integration remain a very throughout The over thus exchange services excited have and has performing far, the assets has in assets meaningful strong full-year in the and continued customer smoothly and opportunities about well we as seen on years wireless investments

a on Moving sheet, we now remain strong our position. very to balance in

stated issuer we capital respect any to environment, be expect With to XXXX. debt markets extremely do long-term we participate have we we see Thus additive we debt today, compelling the with the need before, incremental debt current continue a until we to use be we shareholder in materials to As value. interest unless have in of not October not preferred rate access capital. good to issue that fortunately to do a currently

rate thus are We our to of debt interest fluctuations. exposed only finished XX% with modestly the significant fixed and we quarter

down exposure Our other debt revolver further to the throughout further capital floating outstanding absent decline to anticipate we year also paying our compelling allocation. balance rate expected as more is

we capital is be be first slow pretty the course target We annualized globally opportunities. of ready ratio giving value to continues us quickly opportunities. to flexibility we will does. and EBITDA a market of with allocation That the if our While portfolio net quarter today can and debt growth, ended attractive it see investment our choice and adjusted lacking when X.Xx for enhancing change below range leverage

we strong nearly result us today of substantial our represents dividend, financial first quarter capital position dividend a approximately leaving XX% purchases quarter optimism about our our AFFO year-over-year stocking in payments. represents dividend growth, our our XX% for As and increase. This portfolio in future, additional announced of our only projected which second outlook, and a our XXXX revolver consistently investment

I quarter indicative ratings release, from upgrade to business. we Moody's. & the Last just strong. very upgrades These time earnings Poor’s are remains have ratings last this Since and of increase, mentioned fourth investment condition and from financial received our Standard Our comfort below of rating another the agencies the stability strength we grade. received underlying quarter the our

business of our The remains future bright.

as the continue balance for shared our I want throughout with by to significant the to to are our progress Our needs. and want the in we XXXX. customers them members network and needs of our supporting look I committed thank contribution we forward to effort We meeting our to those have success. and team to efficiently all thank sharing to significant effectively and customers put you move

are we now that questions. And Eric, ready with for

Operator

we first ahead. Deo from MoffettNathanson. will Please And Instructions]. Nick [Operator go hear with Del

Nick Del Deo

the Thanks year. a looks you XX it or The million here like quarter. implies bit shape taking the or have to it? of going in a did the or in being of guys. may linear about fairly acceleration $XX $XX Should is question, guidance rest Hi! be million first to we for of think the my It so for different leasing from

Jeff Stoops

the a should The fairly you step quarter be I $XX throughout Nick. would is first kind million for linear mentioned down year. be gradual It expect of and about the to right that it

Nick Del Deo

versus stepped strike down overseas, And Okay, pace a good. like bit builds then XXXX. what with in quite you new looks were doing the okay, to the

know want normal of So that's to if something should I cognizant more substantive or that just noise if kind we there's be of.

Jeff Stoops

little that more it's bit material we're gig to a adjustments think the think of I year. than we're what any think for just it's we to the do year. don't about slow out gate a and not any I of making Yeah, this

Nick Del Deo

a from on focused most you are countries Which perspective? Okay. build new

Jeff Stoops

attracts our markets. really largest It

this So U.S., would Africa, believe year. I we're be South Brazil, will build every would country operating but for it Tanzania, say outside currently towers we in the which in I

Brendan Cavanagh

of bit that Brazil thing One is that a carriers. slowdown There's is focus with among that. that some in merger place on Nick took little the the

builds over that of but will a So, on back a obviously expect up. slowdown and little we bit temporarily, come that's the pick put new time

Nick Del Deo

both. Okay, great. thank you Well,

Operator

next from hear with Jonathan Atkin And we'll RBC.

Jonathan Atkin

Thank you.

comment So expect. packing you. a you about you wondered might think lack U.S. around kind of Jeff, what those might leasing any maybe Thank compelling kind of order just on about the can of comment why And puts – that your of growth the rate tapering lack given and that some wondering you it about see buybacks and ramping higher then Jeff us specifically, I portfolio change even then in you was capital activity give takes of stock you allocation. the and you portfolio, the didn't carriers relative of level if kind secondly, that be I do of of on as opportunities. made – terms rank think made

Jeff Stoops

terms in interest and their over facility. our as John, they continue has see that years thing they our and to on in the point we priority this be. the because moment need like we rate stopped repurchases, stock credit demonstrated are to that going the that just they of will of time we up, cost the have feel at high to get increasing impact on rates Yeah, definitely Fed the let the are do list direct revolving a where We

use material the paying of rate period that capital over we on stock and we allocations, buying So be best absolutely assured of particular will back that time, years. temporary is through the amounts this rest given think our revolver, the of we're but the coming

to were it's the for money amounts the was other was well most changed when much detail who off who aggregate changes activity terms year that and the hasn't who's AT&T into of T-Mobile want last and the the last the add were year active. fairly get terms last all of what this a really In ones think industry. to two year rate this been up, of of I big of we be is for bit And and carriers, really about the in that doing from too the expect what, don't exactly and volume year. whole we most spending broadcast year, and a lot busy. going you Verizon than it DISH little

Jonathan Atkin

you. Thank

Operator

Walter from hear Piecyk we'll next, And with LightShed.

Walter Piecyk

a the more size What guess understood. not obviously knowing environment is follow-up, meaning loan, how need that Thanks. what sorry I allocate this, given for of would the that down, there? and you but much rate you to pay

Jeff Stoops

Wal So, of the that'll use the be year. $XXX.X allocations, revolver other is of capital some off end paid million this by and absent

Walter Piecyk

it. Got

keep so rates your that's of meaning not can back cap remembering So, repurchase no there's And zero that assume – share it's elements we in impact have I is the been repurchase of timing mean, or other done. just there's when when to it, that we reason until obviously, that the volatile then kick would structure just assume the of the repurchase you should like any share would done, in. share unleash kind there on I'm but

Jeff Stoops

is, intuition earning right is your we dollars our back debt. think directly When X.X% we're I that’s pay now correct. I using cash. be X.X% paid to won’t down, on mean,

for other be looking we'll uses. So

Walter Piecyk

if about of complaining maybe your because base, steady on element to investor amount, if have sense that And guess Why get the more to I'm to the it I question. obviously all, makes broaden helps the of that dividend ask dividend question debt? not then at that ever to the increase guess similar I dividend, I rid growth, that but

Jeff Stoops

additional unless that we something obviously spend be we're You on money this be of confident very will better, will the gone year. debt, know

of trying of So want we're year. we sake a here to a to than didn't establish just dividend get off long-term trend the that less for

Walter Piecyk

and Understood, question. last just one

have seems up that characterize and of facts, their terms that I'm you the been cable with this in but curious don't an you might issues be subscribers spectrum starting I of be wanted more Basically if just however can my relationships for to add of and cable usage this vendor asking about ramp, know, of on as associated forward. I'm they maybe with, just I'm towers? may the not it building like have. loosening going been, some opinion, of or to have coming some curious, describe think the infrastructure, kind And any companies, as do see companies maybe is you in that stating I delayed because them. I'm appetite your assets

Jeff Stoops

at on will to they rely for network, least think I outsourcing but Comcast. sure, Charter heavily they Verizon's very and Yeah,

mind, in What do system. can default they other their have that with more of is develop limited. So they built-in their around that kind it’s to spectrum

in We providers. are to but business traditional service getting the wireless them, four it pales from of course some comparison

Walter Piecyk

Yes, thank you.

Operator

And Arden America. next, with we'll David hear from Bank of

David Arden

DISH. I so thanks commentary at Brendan we're and to We're like this the exposure kind to going guess the I is we're if clear get looking you. much. to and mid-June maybe all just DISH feels going much I guys, of two Hey out at could. beyond how for It build guess questions we're that go Not requirements. others. basing

this me tell multiply run and seem to that that So so your locked down, they you sites that be first that of helpful. a roughly towers, if could you've to be that’ll of like Is validate two I'm number they kind would roughly wrong, of that if that assume XX,XXX their I percentage kind exposure of where stage take It or Dish or gotten percentage. number. one, were by would annualized your we rate million $XX the questions getting would need and said cell licenses guess that we going to be, we build all domestic

half in of second the of have Thank in to And you. year, assumed kind XXXX? the with the where finance DISH’s second, stand. What exit heading respect then, guidance given of the you rate kind

Brendan Cavanagh

estimate They on today. how are still a ago. run rate, still year have first approximately them. in the same signing that's with activity represent pace to were business, continue your David, of ballpark a We on the up they right Yeah much they new not though

greater at the would new expectation exit we're be that we'll constantly up signing fact year than business. obviously, so, something, given our the And that,

And much them obligations required. But more it's towards a good so on And then bit a turn our their with of really, based of, year, they a of conversations to it more sights have as for are be see. And focused be pretty that what there will more they've the of we'll the the balance their to get of how is we'll will deployment confident question this able XXXX required, I think up. the objectives churn we already lot a of XXXX year. much signed to the see end time we're how on lot to by they

Jeff Stoops

would the as XXXX. Yeah, just or I I signed up how be add will much point in at unknown XXXX booked think this that's to that obligations of actually

David Arden

good And follow-up I quick, on maybe your comments this Jeff, regarding real think if also a Right, that's could is just I yeah, or point. Brazil Brendan. maybe

outlook market Sorry, that you in thank the that's You expecting of new sort some to should the happen there of mentioned you. that be situation, Oi your or Should obviously. that market unlikely expecting evolves function that as likelihood if would a be the a that is is XXXX? change that agreement

Jeff Stoops

for the than that the been Yeah, fall market should forth our comfort in within quite we've some churn but take estimated it not, it putting will that Brazil more that, likely time. market for now is well expect should

David Arden

Thanks Alright, Jeff. Perfect! great!

Operator

Michael Citi. question comes ahead. Rollins go our next with And from Please

Michael Rollins

afternoon. good I Two could. questions and Thanks if

for thoughts someday on and and for sustaining if curious business, al-a-carte have SBA's comprehensive new structure to of thoughts possibility just leasing a domestic framework on pivoting comprehensive First, any around MLA's. the your the you leases current

Thanks. then churn, merger from just first you specifically can secondly, came Sprint quarter And that within if the unpack, amount decommissioning. this the

Jeff Stoops

very I commonly most and al-a-carte sense for are most for open on whatever the MLA's, customers we're to – the versus the us. think you what know called Yeah, our makes holistic

with we've MLA's, rights done for we've equipment specified kind that holistic all MLA's done – not kind amount need a provide not benefit. have pricing a can of you exchange of to up customer in We some

in to back came XXXX, we doing almost we close Although very did XXXX, that.

won't all view agreement that think assume of I right business that our and of for kind that as will our ever you time. Michael should the us way our kind that the should us So it you kind at we customers in from not what's of and of And future. do see you take opportunistic that continues running that

Brendan Cavanagh

million on the QX in was quarter, churn, incremental related the the churn question And first Sprint Sprint. of churn $X.X to Mike, to

Michael Rollins

Thanks.

Brendan Cavanagh

Yeah.

Operator

Capital And Keybanc from hear with next we'll Market. Brandon Nispel

Brandon Nispel

terms from Jeff. that's lease year-over-year Can this like Great! you activity booking's of a in talk Multipart how applications you about question for unsigned perspective? quarter and trending

CBAN a Then the XG for of in band cleared, for being years. bullish potential Which you of Thanks. these we is of including the terms leasing radios had should you not still over of why driver investments, mentioned next be on that’s DISH. couple number dual AT&T, drivers and Verizon, licenses, T-Mobile largest

Jeff Stoops

freed think the the went the FCC. to that licenses most Yeah, paid that up band will drivers be get ones equipment. got they we It's T-Mobile and And for, dual be biggest I out the believe the obviously need to of – I well, likely. are the

availability those that the the band cleared we of end will in CBAN know of this which be drivers with will dual the So when – they'll will just that spectrum X.XX see be CBAN and year, case radios. and good AT&T's get particularly coincide by really

positively are know I be all those you into So late think XXXXX. certainly ’XX, impactful things going to

a was ago, your second for the holding – question I steady Yeah, or quarter it's two. oh, probably year down because backlog. last the backlog been from the where first little And is a bit but answered it

Brandon Nispel

lease these for And to radios? expect dual of one Thanks. applications some you thanks. band Great, do follow-up, see when

Jeff Stoops

year, and year. second the year, of through the the then end I move up of say would pick half it the you as

Brandon Nispel

that might the last approved week – FCC have they believe Will it by even been just just I

equipment C-Band and X.XX radio the waiver, dual Ericsson. from the

Jeff Stoops

you. thank it, Got

Operator

hear Ric Prentiss we'll Raymond next James. with And from

Ric Prentiss

everybody! Hey

Jeff Stoops

Hey Ric!

Ric Prentiss

question the Walt’s wanted to on I follow-up Hey, dividend. about

You dividend payout votability mentioned caps is that [ph]? the long kind good imply churn that you of of do XX% ratio the future your in think percent does and when here dividend, to term subject for off a growth

Jeff Stoops

would – since what low, the going our payout at as it steady it – a increasing started the decline while I has over think that, a little so not think continue ratio. we bit still dividend, be That's XX%. time each it's while be or fastest to dividend, still I may the will Yeah, will growth fast been industry's we clip, to would very a so AFFO strategy can it growing REIT relatively from we maintain start relative the a Ric. peers year

Ric Prentiss

Right, right.

very been the are of guys good by a that's capital covered You U.S. international a probably obviously that REIT not the properties allocator there got capital. in some exclusion Is have

wondering, Just like XX% XX%, at cap the was out or anything?

Brendan Cavanagh

obviously to It because our less way closer income. we're XX%, when would long it ultimately XX%, match say I mean term, net should through income, its be taxable than our out will net much maybe that. I NOLs, or

So at the is stage the relationship XX% this somewhere range. to AFFO that to tax in income net of XX%

Ric Prentiss

then you your factored how remind insurance, the us that is total to David's or question are that's just be what what insurance the into you Oi to of and Okay. possibly wise? left addressed total number still results on can Oi And mentioned

Brendan Cavanagh

ball-parked locked $XX XXXX are we've specifically point. about to deal, the consolidation None up. in those our represents million TIM leases range. through of there Oi for to else nothing the guidance. that's in, $XX related exposure of risk, in think $XX that million so the total in the churn We've you're There's million that Yeah, anybody this I we've at asking,

an be $XX be still in. of to range agreement, is million some of year a that were time over $XX the it added pulling estimate which into million, forward. is total of $XX would if through we to So million it this But think fair already

Ric Prentiss

sure is ‘XX. Sprint the $XX quarter a churn, Sprint on there similar $XX of in out left in and just question, in those consolidations the so is another ’XX, have million follow-up Remind of ’XX, to million coming models. $X.X got timeframes carrier us me, in churn kind in make of with you maybe for on those that Follow-on Mike's kind the those market's million the you expect ’XX, that first what's

Brendan Cavanagh

as much it's in Yeah, same it's pretty the been past. the

Our to those each and million where would ‘XX, $XX big in years. years we estimate somewhere are ‘XX million about $XX of

we as $XX that little and think be to year the million said, of $XX we $XX to today, $XX to years, probably as that, sit to million we'll lower million million some $XX two and a then marginal bit the million the $XX in here after amount million there's range then future. following into Next dribbles kind I out

the of full exposure left what's after that's So this year.

Ric Prentiss

it. Thanks I Great. appreciate a lot.

Operator

from with hear Levi Batya we'll UBS. Next

Batya Levi

close seems where as bunch with of view coming term? can have that be extent about targets? getting on moved Great, near investment And year in, you expect you to top To we the thank deals, you. issues with forward you pretty a a priority holistic in change that ‘XX your could to the you talk and grade if leverage a put would that

lighting in? coming most to up Would require new C-band spectrum C-band going another your activity, think that that that Thank suggests What's then, would antennas. you. on now is view activity? spectrum the Verizon more create And you question more of

Jeff Stoops

there's to that A has brand depending become not but I antenna could that but spectrum should some efficiencies may that or the are band on auctioned, that available. frequency happen be of efficiencies. specific. spectrum spectrum, band, They to White House that no spectrum There not Yeah, that the radio the opportunity been to multi wrote so there the yet be in On are the mean spectrum? radios that's dual they CTI new any the about? a are new equipment allow has for real today

and reasons, are pay is one one several the to In down we're they using against reasons flow to your leverage, that their go business they – in back there that do to believe our our the how reasons revolver come exactly the Batya, terms we how free to XX done cash we inflation. see will we have war of which exactly but succeed, the will we for years. way point the kind of If of Fed, of rates down is

it we'll do? what look If we period under fairly is doesn’t actually a will control, more environment permanent which that do like position and we're it to be in inflation more higher at turning if investment fact take to over much grade, that's choose looks serious going a rate manageable and to in time, of well then a come

year I able the with think paths the and more to we're specificity to those going much macro be world will we will which tell take. play next out itself you exactly in of

Batya Levi

you. Thank it. Got

Operator

we'll hear with next Stanley. from Simon Flannery And Morgan

Simon Flannery

Great, if said pretty term? wondering Jeff, that. we've attractive just was that, if expand from the expand conversations might And was or programs not a to and on their lot on Is available could what if just you not more comment add it was the capacity prices? and just I the about, market of bill at just heard could wonder that for on they much. wondering available there's much for medium if FWA much over very thank having the M&A then wanted you just infill also, bullish you you're stuff you telcos mean I that slow. I

Jeff Stoops

to it's global I shopped M&A, that's that's being of both Simon. terms times. and around relative for in a sale lot past comment just Yeah, There's of of things mean a combination not offered or a those

I still lot. a added There's it's rate the and a think buyer a really, and think I a – be and amounts that not opportunities that between – the combination we to the it's would find expectation. the out would there on but evidenced we everything of attractive close there's we even did as closing really gap, it's quarter. this there's gap and by And fewer fact interest environment a that tabs and keep pretty all seller combination and the

Simon Flannery

mostly open markets would And in are looking markets? you to new you existing be or your

Jeff Stoops

obviously similar right our we're be practices. be foreclosing we'd markets. past open careful and to not Yeah, the would for opportunity new but thoughtful, We

Simon Flannery

[Cross share infill anything you Great. on, they to on act… know do And if could decide Talk] you

Jeff Stoops

that and capacity very just mean, anything well, product to or are fixed it as offering said not. all all different more been that they're on us, I well. very, for change all the don't if a know been wireless have have excess doing careful ones that'll customers XG is – really haven't they network very the are intentionally Our to and describe I

So, any some I But specific see is is predominantly fixed wireless. we're off today wireless. you the there that purely allocation, at of seeing mean activity tell that you because there fixed I justified could point cannot of that capital

Simon Flannery

some – study, your comments spectrum perhaps of might as and be a be the for Right, wireless well. might that around good CTIA fixed that

Jeff Stoops

be. But to yeah, you got Oh deploy would it absolutely have to it.

got probably and to a cases deploy too. You that antennas minimum in most have at radios to for

Simon Flannery

Great! you. Thank

Operator

comes from next Our with question Phil Cusick Morgan. JP

Phil Cusick

Thanks, guys.

subjects So can. two I if different

like. looks of discussion contracts been DISH. what lot DISH remind of concerned there's if your security DISH your there. And building, to are remaining of a happen Credit First, stop markets what you Can lie? us at sort would were where

And then second, different. completely

Any country your power in South lot your issues. in you interested the issues tower's and growing of and Africa, carriers? involvement power address there's been you. in supporting a power Thank this on how changes

Jeff Stoops

it's I'll legal and with the could take level you question best if exact but that's as you South know mean, answer. Phil. the holding you'd we it's entity the spectrum can the about back to the We We question the get if the probably like, entity Brendan, can. I has you have that DISH as Africa with at take spectrum.

and at. you an power name to one in and question, Africa carriers, that for to bigger know meaningful outsource hopefully And South effort but well, Africa and in working looking something not is issue issue going we're there I'm have specifically, we'll the both the on – The it on South on power some by future, we’re movement them our something that security. towers. So is and a particularly is the is us customers

facilities that want of secured, those you don't of and year. and at involves to on a studying really share over a with issues wide coming be Phil, a of able the we that potential lot on looking until And more I to site money spend solutions folks you lot think we've got supply, which the and power solving we'll have range

Phil Cusick

you. Thank

Operator

Goldman Brett next hear with And Feldman from we'll Sachs.

Brett Feldman

don't you mind. if questions Two Thanks.

who that been signing years capital to result many new develop with haven't in we been going terms a access years of lot For the in leases the funded operators we're to as with have done carrier constructed tenants never seen now. we that or tower of towers – just U.S., match, and of achieve a a lot the now U.S. for number a have their privately by

new there'd But for carriers for like. some with a infrastructure. site ever seem would be curious identification what really actual an you. of that the they've I'm the higher whether in U.S. be market that I’m development looks know, the before, so need don't could curious used opportunity It frequencies than the using I for

American thought. sold business, really that has topic, up separate their it more citing fiber ended than tower a Mexican they a difficult then being And business

you're of your pretty I'm international whether as businesses and been in selective lending there you've where in market. you. well. those You've considering how invested in curious are maybe terms fiber Thank performing any portfolio

Jeff Stoops

are to very operation other have fiber towers center businesses than divest don't we Brett, Brazil which some de assets data there. or to our really nothing our internationally, Well, minimis so of in any internationally the

XG. builds five the will And new sites that existing in I I In gone over cost build if has They the their don't a carriers that opportunities. up period of market more efficiently of you to they time. should most doubled steady, number focused time know last out in terms U.S. growing have The build have tremendously new on of will builds, new amending tell be to be roll also continue the new years. may it have their over somewhat as of slowed although

of a a as So I think damper well. bit on activities providing that's

Brett Feldman

operators down seeing Are at what’s there same or bidding available those has you cooled for that still private out degree? some

Jeff Stoops

Yeah, the are same down. but the are out names there, well still volumes

Brett Feldman

you. Thank

Operator

comes Our Barclays. with Brendan Lynch next from question

Brendan Lynch

was bit from the what and thanks question. on that starting or more the my wondering mentioned get this give to second radios. once applications? anticipation expect what back you're you you you you expecting taking holding them Great, I if change little a half been color in those really dual-band Jeff, of in us the for carriers. do they Have

Jeff Stoops

what our one tell are. are [ph] want those our that customers as band they quite the radios, go with dual-band from I to certain for Yeah, of plans already I literature deploy will of not of radios to into topic organizations until bit to you speak said respect of that this customers, a that's like customers example any to those available but Reading spectrum our have amounts don't on Light including detail for really dual

that has otherwise you mean is really and of specific more I So what but the what pending that talk picture at I think in terms I equipment. that that's of if know about there holdback literature, see to very I don't our of you will clear do, a that look there's, availability type want customer been customers discussions, would

in extent And It'll have the separate the now combined in radio efficiencies truck two antenna were roll. right are one roll when doing function that and they particular, they single a efficient they that deployment for the more be C-Band different to form would you is the know a and with X.XX. of radios, a and truck

yeah, going when long-winded So way available. a think development to be is it's we equipment positive that's saying, that of a

Brendan Lynch

relative thanks, flat price maybe that trailing Is the to million, is there sheet that. Brendan. XX-month Accounts it's helpful. that's And of specific Great, was around causing quite one average question receivable occur? anything $XXX quarter-to-quarter up that but for to balance a bit

Brendan Cavanagh

obviously receivable, we fine on Not collections. accounts we're are doing not really, are aged – which on focused because

a of lot services services the not generally that's just some timing of really leasing. contracts, So related terms fluctuations in around of

Brendan Lynch

color. Great. Thanks the for

Operator

Next comes Green Guarino with from Street. David question

David Guarino

happen What and off talk X% installed? the activity? mentioned. Thanks. build do you the CTIA Hey spectrum leasing spectrum, to once SEC do Jeff, I we'd new think access is U.S. tower If unsuccessful rate, that report trail get growth want macro they the you see to couldn't that was new to would C-band about you pretty in think from significantly

Jeff Stoops

enough The you'd be question, only densification, of spectrum increased see good there Well, going I question it's think pay has for investment? because who's buying I environment. that a a self-splitting is, satisfy to way no amount to densification. demand find going to are the on to in if there’s the age-old constrained our a return and that tremendous and spectrum will more Dave, mean customer's be

David Guarino

build-out and already majority densification right? the to ample that into Okay, that opportunity guess wouldn't side, be to XG during there's happen, to within fair maybe I occurred? say the your I dive for portfolio the

Jeff Stoops

spectrum to additional I within no have would say to spectrum the introduced densify into system. and existing the

tell that. room XG max, to to would If you the need a lot towers I to out to were would on customers our a filled you, the of for that build our and max going truly have to achieve be opportunity we lot capabilities, achieve of

David Guarino

on the you country any looking rumors lot there Are a over guys in Okay. sites us sales? up about U.S., Maybe year Philippines. then on the sell some to assets it's another been the the how and assets? been, set the you of tower and more stepping now, I since update Could maybe of outside you own guess just with it's many horizon M&O's M&O of a operations maybe in

Brendan Cavanagh

high bunch the expect so got construction, a in sites we've the about so XXXs we end to Yeah, right in or XXX more would now, year then somewhere.

Jeff Stoops

have and Yeah, two mean three, there, times, been portfolios, over with sales. up, that know from done assets of and those it think continued their two of they've not have real many ones really are asset too the there the additional have each customers follow-ups there I I two M&O's there There's chunks sure but M&O's. I off to followed but that own hive big

David Guarino

on aware else horizon the nothing that you But are off?

Jeff Stoops

aware are we that Not of?

David Guarino

you. Thank Okay.

Operator

with we’ll Wells hear from Eric Luebchow And Fargo. next

Eric Luebchow

question. thanks Great, taking for the

how the give there upgraded us to today, years? be are deploying kind long few of growth already for the many next for has sites been curious, two large U.S. just rough C-band the on carriers sense Just estimate that any your a will of how in

Jeff Stoops

XX%, Below

Eric Luebchow

ability dual guess dual-band, difference I your or And separate is amendments, revenue? helpful. to X.XX in real C-band and you any it Okay, the of about radios, think band if when there monetize your in terms it's amendment equivalent are a relatively is whether they radios,

Jeff Stoops

be although from equivalent, factor in the perspective equipment. is piece roughly weight band form it's going unified a say would dual I of Yeah, the less to

Eric Luebchow

guess. last some for could edge Have you the studying report get data-centered space new kind Got maybe M&A? from I a it, makes development or bigger me, those had either I of couple anything that you've just over any in smaller through that you confidence made sense. give market And know or learnings investments to compute of to time,

Jeff Stoops

the edge and we've where Well, in the fiber is to regeneration continued grow facilities.

now are and up We between XX those. XX of to somewhere

that learning the tremendous wireless primarily unleash lot there and opposed networks, is will site. to the permitting as for globe is where edge the we're this has knowledge Eric what at networks. which What the demand real way when demand of estate computing happened our cell of tie-in site you locations that anywhere a to demand to high really demand But to the that in comes, to the along the direct the is through fiber. yet power we found So and not have for quality cell in be amount tied at wireless

Eric Luebchow

Okay, great. Thank you.

Operator

And Cowen. next we'll with from hear TD Greg Williams

Greg Williams

thanks taking questions. Great, for my

First services. on one is

come expect And question bit second bit also came down radio we little linearly? dual-band services. site that sort on on just a a the to opportunity is in network Should of stronger. Your development

guidance? Thanks. So our your beyond AT&T if and services start that, could an deploying we T-Mobile and see uptick in above

Jeff Stoops

the think we our Greg, second you first full I pace. what that think can slightly up. like in mean, but the will year slightly quarter be outlook only the year, and lesser of ahead declining into Yeah a ended that would It's half services pace. of see I looks where

and relatively but quarter second half in the of So second maybe year, similar in probably less slightly the flat. the

Brendan Cavanagh

going business. services Yeah. And to certainly the Greg, benefit deployment dual-band that's when start our

Greg Williams

you. Thank it. Got

Operator

time. And further this questions no at we have

Jeff Stoops

We talk to We want appreciate you evening. thank participation in Thank your you. us to this and we'll Great. joining quarter. a for everyone

Operator

participation. for your That does Thank for conclude our conference today. you

disconnect. may You now

SBA Communications (SBAC) 2 May 232023 Q1 Earnings call transcript