SBAC - Earnings call transcript Q3 2024 | SBA Communications Corporation

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Operator

Thank you for standing by, and welcome to the SBA Communications Third Quarter Results Conference. [Operator Instructions] And as a reminder, this conference is being recorded. I would now like to turn the conference over to our host, Vice President of Finance, Mark DeRussy. Please go ahead, sir.

Mark DeRussy

Good evening, and thank you for joining us for SBA's Third Quarter 2024 Earnings Conference Call.

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

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

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

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

will now it turn third Brendan over the on to that, With I comment quarter. to

Brendan Cavanagh

third services afternoon. largely outlook in Good and Mark. as you, outlook. little expected, Operationally, line with we out Thank ended results results of ahead leasing the up our rolling our a with quarter

were little the and up stronger ago, estimates quarter activity a carrier new domestic the exchange a year. first half from Foreign new than of our rates was

and items across have In business our to allow to year XXXX inquiries increased up from financial full were executions as quarters. outlook All us applications the X these all of And key combined our new well. of increase metrics. U.S., prior the

trend of the existing a are to lease new We anticipate versus growing new a XXXX. from makeup signed We our coming locations up leases. into see in shift applications this percentage beginning business and with to continuing amendments

challenge the a availability customers incremental mobile consumption customers to through the The of healthy major on continues sites. next will have to demands meet our spectrum over next years densification few as of at networks our network the years new deployment of their pace. equipment limitation several grow and over significant network All needs

should this be a beneficiary tower dynamic. of macro portfolio Our

build-out remaining discussed over will of contribute before, wireless coverage capabilities and commitments have access, the we which drivers, regulatory environment such to the network several fixed years. next incorporation expansion AI XG investment generative handsets, new growth Other healthy as a all into

addition, strong. In are relationships our customer

to We are each them. trusted valued and partner of a

on and focused providing their very achieve objectives are through them exceptional helping to quality. We service

first mentioned the I quarter's ultimately, in best consistently on the much to from our of Things way we are and change maximize long-term last assets past our business customer is As years, and delivering we provider call, XX the as customers' done to choice over don't for growth but for have quarter-to-quarter, time long-term relationships. be shareholders.

adopted expect a Internationally, year. to line largest markets. as we are rationalization. we philosophy. through in we partner a our we network expectations, in The broader solid as the presents customers internationally valued with results still seen each have though, and of carrier The manage same finish as was customer and our the to a international our with market And quarter leasing solid some challenges consolidations result,

consumption not really faster, across wireless positioned if will better end the at fast, customers are ARPUs. and wireless across And our offerings markets of their as However, the is just XG very just growing be at product markets of we beginning. all required, this, international and the our broadband than upgrades this U.S. growing accomplish as are invest network to light surviving the tunnel stronger increased in investment see their To

still long-term prospects will believe time are and to our we very profile additive be our Overall, International continue the good. growth organic to over business

future potential our in the strategically markets. As prospects operations part of we maximizing of existing of our review our International to long-term business, continue each and

particular with are announcement in be opportunity order industry and that aligned Cellular, for a with of the well. believe market, pleased leading wireless to with the throughout we it stability carriers to greatest we the purchase -- very in important X,XXX -- cash Central long-term for that in million. before, the you signed today's of of to you with share purchase shared to create the excuse be agreement an with $XXX a market as market of initial me, Millicom longest sites scale positioned closely have and over In approximately as alignment International an acquisition I is that America, and leader As in effort, price maximize to the growth

for will region. be SBA across this the the transaction, largest tower Pro forma company

dollars. The closing. grow And are significantly excited operations. all flow already approximately to America, tower the leasing are $XX produce to million in revenue in site for will years across their flow SBA in to after countries partnership year The $XXX denominated in million very increasing during have full are We countries our many increase assets them we those X and Central scale assets anticipated the of X to located U.S. come. first business where cash help and operations of be cash Millicom with in of

be they will committed in leaseback an a on have Millicom to under initial a site arrangement XX-year which each tenant term.

for the X,XXX the agreed that into to which their for In up with Central extend of to years. leases also arrangement, and SBA entered new build-to-suit X,XXX approximately the in over addition, a SBA Millicom under Millicom on sites as term. will new assets existing agreement next new exclusively Millicom all America SBA XX-year X build our has exist a part region have existing in leasing of

one market, markets. Millicom leading with regulatory increasing are we review scale our our XXXX. closing we each of approvals markets transaction The those to the transaction establishing strategic expect and and existing demonstrates to customers subject it in conditions, out learnings time which from relationships in some carrying and will in close late is mid- way long-term customary The in the

this One markets, in of some to cases, are we of is divesting not type Philippines. we may In In example however, consider those we is this where us. available opportunity conclude the will markets subscale.

arrangements the to continue carriers and through portfolio Our grow gain Philippines local through with strategy and further our acquisitions growth, in smaller original was organic build-to-suit scale to builds.

carriers over tower with market high years, very of at tower large Unfortunately, the opportunities X companies those companies transactions with awarding component build-to-suit leading as changed, sale-leaseback significant valuations. a past to the the has

built Philippines. today, have of We a the companies there over valuable market, successfully But market independent is still are than tower XX in X%. share our assets portfolio tower the and in less

have of the exit process broader Given over the sale limited our the a term, a existing to market begun path of scale through lack presence to region and in near we business. medium a to our

flows stabilizing strategic in our organic of review positioning all will and a long-term markets to maximize opportunities and market. ourselves our cash We operations with each growth of focus continue on

grow the that XX% Some markets to but and term. strengthen may second will the up prospects business, profit exit, Revenue for quarter I up others services our was was am over we decision now quarter. a over Pivoting and SBA's long gross had very from we third confident may good each XX%.

activity Our carrier customers to we stepped than up quarter, results in construction had the meaningfully their anticipated. better contributing

adjusted As provided we have increased also our year last year these result, benefited the revenue from our a full full strong results. outlook And services outlook outlook quarter. EBITDA for from

differentiation continue teams very provide for execute well, Our customers. true to SBA a they with our services and

our X our participate. a our significant transactions sheet. discuss in a made access third capital the During in also and balance managing across in preferred will position quarter, priced These With which progress we to demonstrate moment. capital issuer positive debt which markets we very the markets attractively as Mark transactions,

Our leverage remains near lows. historical

billion We is our over and the debt $X have one fully revolver maturity next undrawn. years, X

of capital terms in shape excellent in structure are we So liquidity. and

provides In with addition, Millicom key capital allocate us continue which allocation. capital flexibility to refinancing, investment, to opportunistically we into and targeted asset strategic with our a transaction. a recent value-enhancing being the approach example Completing

asset we opportunities high sites cash portfolio at U.S. attractive stock. to of as During a look the continue to as repurchase also grow flowing and well in to price base at for third valuations acquired opportunistically the appropriate our we will an our quarter,

Our continues networks. continue customers well, our perform business to enhance to and their

result, year. finish we well up to are strong a set As for the a

team on to to and thank our share contributions I'd our Before turning specifics it quarter like over our more customers third their success. Mark our to to for members results,

you Southeastern hurricanes the did operations for deserve the through special tremendous the recent a Our States. thank teams affecting United job they

had X both in sites one Between storms. storms, over X,XXX or the path of we the

resiliency from and greatly ground our these Our response relatively and little again teams damage, team dedication assess damage. with sites the situations. quickly of appreciate our structural in possible. demonstrated in their up the clear I customers More as dedicated members assist the the and their quick our once to running as networks challenging on and was impressive, commitment though, access getting

to With that, Mark who will will things turn provide over now additional details. I

Marc Montagner

Brendan. you, Thank

with quarter our were results third line Our expectations. in mostly

same-tower was leasing net, X.X% cash year or revenue revenue Third was over International third that for constant consolidation. of quarter basis, same a of churn. recurring gross X.X% Sprint on X.X% a and X.X% growth on which or gross tower quarter calculated basis. basis last churn quarter, X% on is basis growth net X% X.X%, third including currency a on a X.X% the was to the related including of Of domestic

basis. our Brazil, was In constant growth organic international largest X.X% market, on a same-tower currency gross

expected international for continue XX% in cash Millicom, previously XX% quarter third leasing and announced dollars. of to lease-up denominated today's organic the U.S. churn consolidation. with revenue Pro Total mostly to announcement adjusted our elevated be solid to are EBITDA forma market. in see CRO international to of We approximately remained in site

all Let's currency revenue, flow, quarter, compared outlook leasing prior now our AFFO across in Even our our cover share of the FFO metrics, full adjusted to the better-than-expected cash impact EBITDA, reserve exchange foreign outlook. as we increased XXXX. rates for and including per excluding third year tower slight outlook key

mostly the which by to With beyond that under what of note any quarter or does close business. full to the revenue, contract development third further and outlook to we million Please acquisitions regard by was strong also that $X increasing to expected in not year-end. outperformance outlook today assume as site

assume not completed any also far what so beyond share year. do We was this repurchase already

in possible on during is the However, Board year. it invest or additional share assets repurchase we that

AFFO net of now for our term assume and loan for outlook financing repricing recent FFO expenses the and Our cash and B. share interest ABS per

Additionally, It XXXX impact starting on new interest outlook. at for in we enter into swaps our XXXX. storing have will a April no

busy the We months. in sheet balance with our X are last quite

of of and maturity tranche final $X.XX $XXX date quarter, billion. revenue tranche October rate During includes X.XXX% totaling October tower anticipated X the of issued repayment [ date This XXXX at The also includes final repayment a October of issued the an ]. with of anticipated of through a the XXXX trust, maturity date at October million securities third a $X.XX X.XXX% existing billion XXXX. of an tranches issued and XXXX company an with

$X.XXX both billion $X.XXX from maturity to maturing to of billion and were proceeds proceeds the be net escrow time, January in to be sit offering January used EBS total Cash the at The which an until million will repay $XXX repaid. maturity will account pay the XXXX. will the in used then, repay

is next during Our a maturity million $XXX January ABS XXXX.

turn Let call Mark. me now over to the

Mark DeRussy

lowering In from SOFR term improvement term $X X-month September, Marc. expense $X.X XXX basis approximately points. XXX Thanks, repriced billion the annual savings. represents basis loan This above spread interest million to we our of by points

X-month XX floating In by points, than floating a component lowering otherwise entering X% loan billion, into the loan addition fix to the rate current future hedge This also interest amount lower swap the the notional forward-starting of rate. significantly term of at term a today's SOFR $X rate we further for swap. SOFR our by spread term on X-month will basis

new March basis me, XXX XXXX -- the $X billion X.XX% XXXX. billion be for of existing Together, starting fixed the X.XXX%, an of rate, points, the in XXXX, the of XXXX. interest fourth March to into XX, we and quarter $X starting new the outstanding in inclusive in spread SOFR of forward all-in billion start XXXX. The notional entered April the cost term April $X.X be of $X back of will starting has X.XX term pay will the loan swap effective portion maturity blended and on of date X-month excuse swap rate XX, a we Similar will billion

of unhedged rate remaining in and our points. XX% continue at will interest of accrue future AFFO. X debt float impact and is of The term our reduce loan which to plus XXX forma approximately month outstanding certainty create interest portion nonrevolver future the Pro for fluctuations the greater SOFR, new the fixed, basis will swap,

of current adjusted net leverage Our lows. remains to debt EBITDA X.Xx historical near

adjusted of very cash ratio coverage interest cash strong a net quarter third net Our interest was to X.Xx. EBITDA expense

outstanding is our Pro total our average interest for ABS debt. forma with the across X.X% an years refinancing, weighted rate of approximately maturity average X

outstanding today, a third amounts paid under hand $X.XX We and continue $XXX.X revolver. cash to is the fully the to down. And And dividend share. that billion finally, of today, of the XXXX. business announced a our share paid during This to we of Board dividend dividend XX% quarter, of we of on the of of close cash an payable $X Directors And on December of fourth use XX, our shareholders or per XXXX. paid of declared fourth declared $X.XX record repay as quarter per million revolver on over represents XXXX, dividend quarter the and November increase XX, in as approximately

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

Operator

to line Levi one me, excuse the . go -- we'll And moment. of Instructions] Batya [Operator

Batya Levi

A couple of questions.

generally up leasing be versus think year XQ, first Can and increasing carrier you opportunity you is First, color domestically, about deal, per amendment. And share to into And this mix? holds more half on that from sites? you the AFFO on to that ] the should mentioned these how versus more it lease-up activity and size flat we levels co-location maybe on shifting the accretion in Can provide Millicom up? 'XX [ the 'XX? can if X

Brendan Cavanagh

Sure.

So increase carrier an U.S. in seen activity up. mix, new in business we signed the of have in terms on the carrier activity

year, as the third the mix levels that's was at expect, future. It's height would but actually. backlogs those it's co- that what opposed shift is the revenue really I large points up couple that of see of quarters, to mentioned, thing that of now start which of more more for for was we've I a during from a locations coming on and as percentage good we quarter it's And right presence . The big time ago, a new means we up. not based growing, first that the carrier leases, that is bit. over starting moving a to to really with guess to the little direction, that move obviously, X getting the last higher more We've amendments The of of obviously as baseline. that than of we're where the to growth favorable see half bit continue we'll from future And begun shifting, it amendments. a had as in a such customers, see, new years in

commences, a from on gets But to the mean, side leases, negative that to little delay it when a bit in little moving year. quicker. we'll see what for those continue saw up the parts. the fourth okay but I similar on in does commence greater slightly is will revenue in there's signed to year, lot amendments something look comment It guess, when bit typically that of when to quarter, it if There's really can't we third how be we relative this I the shape quarter next a

are So we'll when there. see we where get we

accretion. think I a for Millicom the As to AFFO you exact premature the it give to deal, me relates it's little

the will at be release because our the associated of increases that. of press these be there Tower limited it in terms in that cash look markets, we you can many think flow, overhead numbers will in we're I released with

In some expect addition, tax but accretive per once income would it will have closes. implications, AFFO it I be definitely share to we'll

sense you, of The a and further share timing timing, is Bob, so get specifically issue road a we it as the that of better the is really bit more down when little have closes we we'll with just yes.

is pretty actually ratio being other X.X%], potential the well too, set them [indiscernible] don't those [indiscernible] I on with I asked is lease-up [ X question, answered, Millicom will sites. up tent You The one current think which which about

Operator

James. of next line question Rick is Prentiss with Our Raymond from

Ric Prentiss

the questions rough on kind to for on maybe flow Batya's us that Can get initial understand It follow-up you know Tigo of the about help was a added EBITDA? I to an [indiscernible] the like XXx multiple limited looks payment. magnitude be deal. tower you understanding. of to To One said cash

EBITDA have a get ballpark. to trying the Just of multiple what sense been might

Brendan Cavanagh

incremental million and would between expect be the will million, that I SG&A Ric. $X Yes, $X

[ multiple. or ] higher half maybe so So a a on turn

Ric Prentiss

Yes.

sub-Xx for the as in of So still probably EV, kind for EBITDA assets? we paid something the the

Brendan Cavanagh

No. [indiscernible]

Ric Prentiss

like Yes, [ ], XX right. XX.X% ] XX.X% [ so

Brendan Cavanagh

Yes.

Ric Prentiss

Okay.

little XX.Xx? the that price. assets quality us universe little tenants? hole then how carrier what's of markets So given a like just kind talk help the adding those understand And can leasing a bit you they are of we each the like in bit maybe potential, understand the about of more as Can why is about as more robust one and the far

Brendan Cavanagh

Yes.

the -- I we're of us? look Rick, your which scripted What's through tried we're say, a that came we America the markets today. tower earlier just we of does bit like? operating the the kind my Central leading little we I kind of look comments, in market be look what there. size this to a scale to of of of and So first lay premise, terms one and as future in kind relevance the throughout as for of our we go the talked of conclusion you on that to where leader operate all, the tried And But out to overall but companies the of to early pretty like operating, year, and each potential in about We're importance to kind there. in the we carriers we most of and be need --

some carriers it subject that and that not of could is obviously well that when the indexed that to to been has the closely as needed for. in challenges created weaker of some aligned maybe known as carriers that, some been business stability and so you in, the churn we've leading disruption we've markets this with certain the you you the faced in as to we And only markets to be weren't

that with opportunity so partner we're the was one, mind, tower in with a leading across dominant region; leadership two, the and take position largest, region. the the where And most to an to, across clearly this company carrier

So really do was -- a could well. for it biggest We that that think we good the was I the that for and and at driver. it price point very fact could worked good Tigo, us

are highest a us, to assets most unlock to And skill of not way Obviously, their also them other which a these to Tigo, available it's make the to in region. infrastructure them not that our of delivering in at set, the value to it's making only but the for operations. the assets for types way is quality carriers and core

growth already we when the have where kind feel that, the markets, as the for these we one good years. we good are of have we things little look in few at about And very that Now because remaining things a that of number many potential markets. each disrupted of experienced today a last the across the we forward consolidation is look while over about them markets, of of of the the carriers

each Each one a is is So, a little little country different. bit different.

at that only X.X only have we market. the fairly more it growth fact some Tigo with leading one. of that. well on the opportunity of there's than additional many provider these being where carriers as But believe markets, tenants that number a have looking leaves Tigo a X carriers the in balanced nice with are located are Some sites, them Others and these in for

Ric Prentiss

kind handle tenancy. that's that up to to get CapEx required additional them any And Okay. of

Brendan Cavanagh

as sign but with carriers. leases we some, be may the into those would obviously new figured that analysis There be

it's there's see lease-up no other required in connection opportunity. that to the So with the extent CapEx than we appropriate

Operator

Goldman Jim to Sachs. line go we'll next, of And Schneider with the

James Schneider

in a you about down foreclosing you're question first the footprint. from or guess deal. in terms out-of-footprint of would Europe anything we should elsewhere? Central the What say relative of away draw may about possibility deal MilCom to larger Clearly, or not America I this be drilling on

Brendan Cavanagh

necessarily I means it don't that. to related as think it that anything

commentary or, markets exiting clear isn't to if Our on improve in where and to other position top operating into But a look expansion at see frankly, we that. a path don't priority that was and those the in certainly are of itself to at our already those doing look places. we

other in already I think position the places the the simply secondary to we strengthening markets in where is are. expansion

James Schneider

can commentary is areas? a then And leasing sort on on are maybe the Understand. of terms in, just on anything urban, that little leases you of how in margin outside seeing the densification? markets the suburban domestic of of sort in of proportion greater much of of qualitatively And and bit say, terms talk new about you sites, rural new

Brendan Cavanagh

Yes.

mean I we it's really years. relative leases in think number uptick of it's that a brand-new started fairly over we're last an the We've see the just the we've to little that bit sheer of pace seen both, I X early to an shift. this signing Jim. seen

markets of So requirement some customers build has frankly, in definitely of as to initiative, one rural is more of those least regulatory that out areas. at an our some

a part suburban those . But we're of things is guess best given I lack And both our -- based seeing conversations markets. the particularly more densification of our of to and expect made it. available. this on having as So continue that's are the parts other in into be that's it well new of of our spectrum it's the what the future, going definitely some think customers, actually with to we're but I

Operator

go Brandon Capital to And the Nispel Markets. of with KeyBank we'll next, line

Brandon Nispel

just activity lease terms the inflection Mark, a the in shot lease I the leasing company is when pieces there bit [indiscernible] not at you in actually a of time [indiscernible] do looks think are hoping looking little just was away. applications Leasing And that growth the take like then I'll quantify And guide backlog commenced? Brandon, excited you an and bottom? but question the by in activity? that is could

Brendan Cavanagh

hard a was I'm little to you. Yes, you, Brandon, but just to hear sorry it see

you asking it just to the you a timing think it about of possible organic and Is inflection? growth bit? little the repeat were the for I

Brandon Nispel

but quantify a of the backlog XQ new bottom at again. terms to like the activity just just the question by And try that hoping Is when signed shy implied little commenced you I was in different of is looking leases metrics? hoping direction can then million. application you $X I for in not domestically leasing guidance And correct? Yes. that could take is leases. seems new and

Brendan Cavanagh

Yes.

application backlog the of So about. talked we mix a shift that similar in is

Your within around or what the that of say, number sure pretty is on see we we yet quarter And so expect we I around sort represent into right $X.X the bottom, I for of next the would that's it. can't tell but close, timing think of you fourth million I estimate. year, I get the for to think would as bottom area.

I is mean in of dependent through what we move here we balance some the upon that as the see of leasing of happen terms continue to year activity.

lease-up up The hit X some the does what financials we some I'm further. in the other a sign One to it that that, degree, when little timing. commence shift and out in X the bit and caveat and is the just is that little a is related. mix bit on push things reason the shift it can obviously mix, to different impact The they're of hedging has

an plays how leasing see out hard seeing balance we it's year, in But for until the the me to So exactly. we're that for overall of activity. uptick say the

confident So to move we'll upwards. see I'm pretty start it

Operator

we'll next, the with Flannery Simon to of Morgan And line go Stanley.

Simon Flannery

the to back come Millicom to deal. want I

investment and that it's you how a You did deal. on build-to-suit an Could forth, you return talk about agreement just think them. and underwriting additional so a X-year with about

where go balance keeping want year the in that next to and buybacks How of Xs. is thinking sheet? leverage sort over flexibility and ratable M&A over the about you leverage X think are And the or that balance then mid as So you period? you stayed on time I

Brendan Cavanagh

Sure.

we're to pricing to Millicom over is looked up what build-to-suit yes, into the the of actually a expected opportunities about as with X,XXX build-to-suit with estimated provider sites. estimated next So to underwrote what at we of are allows we it exclusive it X that the those as tied the costs excited we of is costs. We it our years total agreement us expand and partnership because a was that continue of their basically very piece it

that second sites be We a isn't to without expect going opportunities as north any certainly tenancies of be on today. it time in double we locations to there of again, where add up. there those because returner, they're a we of coverage high see plenty any And think lease typically will number them over digits

So I additive think it over certainly time. will be

frame. that terms that it the over over there X may or come time an years, come timing It of it quicker. evenly may In of expected in isn't in in coming

we'll that just progresses. report we'll it So as

So there's no requirement that in regard.

On is the hovering small it's the the lowest that, that's deal level leverage around that historically Millicom our for pro front, with us yes, Even a leverage impact. at for forma still fairly X.Xx. at been

capital It's You're talking about places I [ lower. what necessarily X.Xx have the ] the that to really more really the of closes. when generates. leverage is that don't a go excess function eventually it I'd estimate incremental see leverage desire of good to use

be that we thought value an an saw, is that deal would opportunity very we enhancing. example This of

to we'll But assets. to nice But asset having best being of opportunities, look And forward, do And share see obviously continue invest if a first And where that don't seem leverage doesn't we at be. spot the place so do lower invest that to is going allows to And do given flexibility we us X. the that. that my like can continue in one pay to opportunity the we'll places to for that we'll time, repurchases. if preference in down a is debt.

Operator

line the Capital to Jonathan Atkin go we'll with Markets. Next, RBC of

Jonathan Atkin

questions. couple A of

the a you centralized doing you've that under had does your So at out Millicom lot that model of quarters it your now And that portfolio, got is of American And manage couple belt as a Florida. you of a that CEO? my of somewhat still recollection is as transaction Latin all? change the case

Brendan Cavanagh

our we basically types presence, of of try accounting, markets can we functions, other things. kind local And our back-office And for and teams And sorts that all of run to cost same. the But reason across a have way do still of approach our things into back happening We of much have of insight is way But business. through that our HR, one, that have also the course, functions things. three, it in we that these for we consistency meaning be it to those international allows And centrally, interactions to we we Yes, John, the having purposes, customers. all do these markets the funnel it's what's is, to what core done here effective. sales our greater way. that is, here. there. markets with operate operational have legal, and by those and really, systems representation obviously centrally, us the across gives it do various us everything a have two, try purposes, it's it the

has our I And us think, to generally time, over that peers. relative benefited

don't structure people going with Millicom I we'll have X have expect deal, here. stay this But that even the a obviously X or will to maybe few more to in field change more forward. same. And So general I think the and the

Jonathan Atkin

a questions. then And couple of U.S.

portfolio operation. tower kind industry that sale impacts the Just changing relocate seeing wondering in if might expect activities from impacts a with activity build see as well Verizon of to as you different into development or an some independent the of you're any hands any to

Brendan Cavanagh

couple the too Yes. died on down. situations of We're limited It but largely not that. relo anymore. much a stuff a hotter very for ago, see little was bit really years seeing We is

await have those mutually to is that come next assured self-destruction to to other I kind realize think building of particular towers towers most situations. people in

lot So we're less of that. a seeing

I portfolios was I a available sale, portfolio looks it mean the market size in price, is think a is the the There's U.S. nice and towers of nice of very the is we very has sized like high-quality, and that think terms supportive fact high-value here of a value obviously was SBA nice representative in U.S., U.S. there of In Verizon for which went portfolio. the here of in yes, a it few platform the very and that that --

Operator

the to with go we'll line Richard next, JPMorgan. of And Choe

Richard Choe

going following we there The guidance site Or And I up development. year? about wanted next on the that that there? about of moved co-location as ask into the work else leases? is picked it following revenue Is to roll should and was new how the type slightly. with increase in something and think we up

Brendan Cavanagh

bit. We say is the year. we when Yes, that which particularly a new to. ago, up than our there's leases I of Richard, months carrier of gave that seem full term were that of couple we're a quarter used X better to doing fee we customers the shift it is a lot than the guidance And -- does we're outlook lot anticipated and actually, a had why more actually work would more a it for we little had busy. fact be because And the of moving to

to it. there's heavy a So component construction

doing heavy volume piece number That same construction that drives even total the up of agreements. the on

the contributing see would year, as of types move And do it. that's I So same factors. the we'd one I drivers for expect, of think next into we

Richard Choe

come and these Great. And deals smaller you deal you talked is about is that cash but was think a upon? type a flow Do little it there's you domestic bit that highly M&A, to one-off build -- have of just thing? smaller accretive. more you Or did said a

Brendan Cavanagh

maybe opportunities has it where to somebody and we're it's would think else like. mean don't. look, see limited unfortunately, we're and I best the look say But than U.S. I that to sale. do We limited, advantage But Yes. Unfortunately, I Yes. the reason think chasing opportunities to of in and making such more in available missed unlock is often, our that they I because of jump everything value that's them them valuations take I for part others do the or volume at so going opportunities available which to somewhat going the to the somewhat go outnumber we for high it's folks, something would of every is folks continue limited. find

Operator

And we'll go the to Deutsche Niknam line of with Matt Bank.

Matthew Niknam

Just more the U.S. And Can of on then necessarily that broad-based? in particular maybe questions to one changed more it to maybe delve around around the or that some just bit have follow little you what talk in that. a been drove carrier XQ a uptick Was on activity? in the asked

and up of some the can any offer in On late. moves thoughts any on they've changes DISH the front, activity of you made

Brendan Cavanagh

carrier in in little quarter, more active be one another. I say more a Yes, than would it's broad-based. given any can the change quarter, third the But

much of here really don't we I the that of highlight of So customers. like as see too and to into it me, in don't pieces I look to at the know kind front get don't individual I

sets regard it sure on to not depends shift they're key that anyway news obviously, they're of that fact the next DISH, carrier. quarter, different us our a the well that customers, around the I With hitting I'm think future, that have do. because when It little specific positive they bit one would anything be in think. lot some mean can a turn up and just for all our to just I sites, a

regulatory The on fact some the they relief deadlines. got

I they got achieve raised they've be it I they've timing. they will think the be, It's the done long is some through a me And and to I this obviously of because is know satellite but that for themselves them very to. short-term that do also very, go that for can term, positive work raised allows build-out to will early it just think, but very take really know they've I they've the so clearly question actually sale a time what business, of to What impacts little schedule seem with, the -- it's it's while they've positive. to think able committed funding a it's positive. through do obviously them that here funding,

Matthew Niknam

more could I Great. one If just throw follow-up.

of -- quarter, curious, the what's amendment but terms in least at mean in does colo, I mix I'm now? was what colo U.S., in of of how the the a because mix just mentioned the third that relative U.S. you to In more mix And

Brendan Cavanagh

XX%, dollars, but little based XX% leases. Yes. And new it over on is was from this roughly a

Operator

of Nathanson. And we'll Moffett Del Nick the to with Deo go line

Nicholas Del Deo

is couple a MLA likely if that XX-year milestones. meet fair material the the over them the The any First, say to Are earnouts without purchase of financial churn of to you would potential highlighted perspective, And from price? to over get those clarifications get on need to press any Millicom. release off it the certain opportunity time? a in kind of they towers Millicom time locks -- Millicom for

Brendan Cavanagh

XX-year Yes, one. second term. a It's committed on the

reached earnout, and the potential I for and if earn-outs certain some them. great On actually the both would of win think paid were enhancing are a actually overall on be if be the the happens. deal, would multiple parties. the certainly Those it there first financial change to it that don't numbers, only will be for will question milestones it materially

Nicholas Del Deo

Okay.

on deal closed. you it you a then nice And that a cited yield with Okay.

revenue I potential the Univision think about there the deal. contribution business broadcast thesis how And which referencing your are that you lease-up? you're to Can the Televisa today? is of or share big existing anything stream versus expected on degree the broadcast based

Brendan Cavanagh

our a percentage small is of Broadcast fairly business.

We portfolio. of was have for with a a that broadcast particular this what that site looking we months number something towers was. each on embedded had its portfolio existing in we've some spent lot at and years our them of potential

Obviously, price here below are in typical trading towers the well point the wireless is where U.S.

it the but from a we we potential of much. we Univision flexibility leaseback. that more do do really require terms needed So on lot doesn't in that an have growth some what growth, standpoint. for sites from commitment And long-term some of for But have to allows a think organic

Operator

And the Eric Wells Fargo. go next, to we'll line Luebchow with of

Eric Luebchow

see below you you this about any kind think I of Could update domestic when X% kind get you've markets guys timing on in to touch think getting you not how there? non-Sprint could that talked churn maybe year? of you on your But beyond range. looking

Brendan Cavanagh

Yes.

X.X%, guys churn. think correct -- non-Sprint me and for that this I at the about quarter, -- believe I'm wrong, if I we are were it's

the it's So improve there. down it lower And into I think ones. probably already from will

get would or year, X% that think next to somewhere expect close so. I to I So that we're going

overall terms impact. continues dwindle it and to of So numbers in

Eric Luebchow

to a on follow-up hear. And just then Got Millicom MLA. Good the you.

kind any structure it's U.S. what of growth noted escalator that or it comparing subject in more are the color kind fixed? future leases with mostly of activity You in be you Or the can U.S. kind And kind their those provide the but typically nature? just are to of comprehensive holistic will of on see dollar-denominated, with whether levels, we more new

Brendan Cavanagh

the but too into of much into I dollar if can't all MLA on that, significantly oddball are the with not MLA rather get XXX% of avoid get detail do piece, the few is to mostly in on all the the you got I'd a -- things are the all dollars, But small all expenses. see typical U.S. structure detailed things to cash flow on is I Yes. around other has it's dollars. it, all, it. would first U.S. the in all And referenced there can escalators

Operator

And with we'll Jet Piecyk Walter go Partners. to the line Light of

Walter Piecyk

just takes how long ballpark refresh on you from a colo? I order you it for months. Can it does implementation just than take my memory to [indiscernible] number obviously kind of longer said know of

Brendan Cavanagh

ballpark, say Month, Walt. [indiscernible] I'd Yes,

Walter Piecyk

Got it.

of what It's So if -- now, it for on in year. obviously, in the you look it was terms 'XX? was year, you're But with out -- in about we conjunction you stated Last plans growth there quarter. and not. these like fourth in floor growth the base year-over-year growth is to but should that the XX% sounds capital at you the operators dividend, that kind think the in the -- and order expectation there flow kick revenue 'XX might the maybe side. better, this investor a the kicking in obviously, available in as bit X yield doing on is you when dividend then the Is in terms XX% to outlook be contemplate of that's a the like of

Brendan Cavanagh

fastest here. year, we the the it's expect in It certainly which lowest I industry our is fastest-growing been dividends Not point history. any the this XX% one broadly. our is that be actually within of will And explicitly. among would at REITs small

of so we're Walt, small with we're a it, obligation. towards percentage our is little triangulating can be Obviously, REIT that the higher. numbers, relatively Part starting growth bit

that off. been NOLs have we've We burning

-- But I having use be. And of to that number been those as as to to supplement so those it full growth healthy would because to next we and will burn limit rest jump look of of do earnings. in I still us our to the NOLs, we quarter a to starts REIT able kind I relative more what really dividend. needs to dividend But kind lock the more going would we've pay our from don't But expect with to fourth we're that our quarter a expect industry. ahead want at very increase the be it typically

Operator

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

David Barden

And companies apologies have we new exciting, about ask when to do ask something it. and to tower

Central explain portfolio you you've the was why more bought something markets the about Is X. I that? Or there's Millicom bought, to in ask deal. to little you some that in evolve of to out X right, you what is, And question reading kind didn't for and a what view I kind bought buy potential operating Marks the The about XX% a of going think, can that's world bit you Brendan, have more sort the there is guys and America another XX% from I'll swung -- think, didn't So Millicom, rate having right I if of I'm mix. this a debt buy. guess of then variable where you

to this Now on XX is about XXXX. And had we Or kind sheet in of activity the the make SBA you're make? of the that you kind you our to chew months you have in there do bit of lot is Are lot talk for that little it why just to that billion A can going with come is a of into Can next $X.X decision? chose expiring quarter. nonrevolver the had and to loan a more moves fixed. now balance XX% of XX, put models? term

Brendan Cavanagh

markets, We, Millicom that in, America. bought operate every in Central they So the believe, on market I

American when think including markets, extra I you're David. markets, referring South to their you're

size position. go-forward on and And in good focused where a enough this we have frankly, where transaction a so meaningful put had operations the we and is places a was much to presence stronger what us we

that we scale a actually And in it they in markets Central South should much were currently it to nothing to it operate, versus terms not future separation Some seem going markets are where well change America was There's of below that cleaner of additional things. was the those really you and like others and some America. items. into of didn't read

in other stands can own it if change, then was its debt, philosophy. specific This the any and And there's don't you though, want, but which your our I think question take you Mark, one on merits. on deal

floating, had fixed though You in place floating the vast already versus was mentioned change. a hedges actually as for the majority it debt. We our of

the starting the into done floating is materially revolver. amounts there's changes some that outstanding instrument of loan, rates. on is reductions is are is But enter the obviously which in did because that X outstanding to in the certainty. will our that part where the it environment which on continue require because saw hedges forward XX% of rates And some is term significant other we've provide revolver, to And have locking were be Sometimes today loading. more reason the And fixing we around what fixed we most we today rates of that hedges. already below rate to opportunistic the through

the rates. actually And it's also thought provide certainty want we you of know, add to don't anything? good pretty advantage do Mark, to to were so really take but I what

Marc Montagner

loan $X.XX term the on billion hedge in expires of XXXX. existing the think April I No,

So X at month. place we -- months one cap hedges on few the each we in billion new just put $X X.X%. one last ago X% at And that a another did

and $X billion at the now. SOFR now X.XX%, on or X.X% SOFR average loan would the term of rate -- So interest the max for is be B the

we're just think of cap took in going turn interest on the 'XX. rate interest to So the on of be to a on rate advantage [indiscernible] locking we debt max a I

Brendan Cavanagh

of really And many that only and we months forward, managed have XX the asked million, be sheet which it's Yes. when to just XXXX. one ways. really for existed mean I about much expire. next so, I months, whether they're the set January they're same in $XXX that's you XX not is a in And the during only different can of question frankly, maturity think what the mean balance looks going next here replacements I or

see to shift that along the would to in way require today. It's is come opportunities it that we're advantage other that them. going capitalized expect you take much the same. think to similar yes, what The you I So answer caveat is very to David. otherwise, some be should stay the only to will But that question of

Simon Flannery

to Rollins We'll the with Mike of Citigroup. go line

Michael Rollins

could. Two, if I

as long-term then Philosophically, possible First, rates, national would second, some from your leasing approach when carrier with you opportunity just Do business carriers. escalators opportunities that looking inflation you comprehensive and considering updating additional new that seeing at customers wireless you're does with fixed customers? deals a the taking still more renewal questions rate? how enter Or your and domestic ceilings? prefer in likelihood of future are a floors are you domestic and the you with you into have increase And multiyear CPI-based given

Brendan Cavanagh

Yes.

ago. So as signed know, -- that with you MLA about AT&T a we so -- we XX we or already have have comprehensive months

place So already that is in and set by what's isn't really impacted happening.

as conversations that things other doing find Now with if to parties we our that I our open comprehensive a work the for we both think have to on can we're way continuing nature, that. customers, agree

that think short call, their meaning the be are In us either of they for we what regular would have That best needs case, the all-you-can-eat I'll depends to on works way things define what monetize it's is and to the overall don't really the merits have, value. in something to what necessarily that relationship, just MLAs, if term structure. expect I the

our have to a customers of Mike. we'll So we and but structure to works whatever do We'll go really don't the disposition don't is I both talk with, towards parties for know. those. more what continue best Honestly, trying to

when We of the In bulk brand the much terms that the embedded agreements sign. at new are and we'll Sometimes, co-locations don't even look the really escalators, that that's our what don't new they ones because in business. obviously be of will the change they for the touch negotiate escalator base, we

impact little base the on there's So escalators.

negotiation we end a discuss up matter CPI. For as it, fixed rate each the on a new really individual ones, case. we focusing to but that's a usually will just of on opposed But

Operator

Lynch Barclays. Brendan with to of go line we'll the And

Brendan Lynch

Millicom. quick on A couple ones of

release mix also about competitive were of maintain of Can The of then tenancy you perhaps being co-location versus And X,XXX trying alluded to some these rooftops? about in their towers a whether communication to ratio first Can sites. or on to [ the was X.X a to talk competitors strategy talk the ]. Millicom some advantage they areas? avoid think pursuing you of

Brendan Cavanagh

Yes.

these rooftops. that towers fairly the which towers even typically on is rooftops, So are percentage are the of are majority ones a vast and small

towers. of So it's head. all effectively number off I don't basically know exact the the my top

so I rooftop is think somewhere XX% based. XX% towers it's other around the to is XX% ground-based and or

And then established towers That's on -- called a [indiscernible] tenancy these . they entity where these company in the had did a that. that the Millicom they [indiscernible] [indiscernible] have side,

to number go on business. and they available. However, inclined competing of it's sites back even held sites they're were a make when for reasons wireless therefore, of the They competitive cases, did our in other better we're one belief their these And as sites that because them for carriers, not owned their competitors. were not by

value So there's an we lease-up think unlock to opportunity do here.

Operator

we'll Green line the to And go with David Guarino of Advisors. Street

David Guarino

really I that want you earlier because helpful question for the figuring out to earn-out back to about paid. go valuation it's the just

your transactions, in SEC on sheet. know disclosed up your I up being obligations prior you don't shown So those filings, potential on balance but end

closes, time deal payable? when would material? not And that guess So idea when of earnout kind be I that in increase item queue is an is materially? frame also going think about then to for your line should assume we the just Or as the the we of those earnouts

Brendan Cavanagh

our was think Yes. we'll what the something and to around but signed with our financials, change the honestly, will disclosure that I you XXX% in may off-line -- going look could balance sure some There that. our give sheet. that it's be maybe don't that's off not David, just guys like but today, so look at deal I'm on potential earn-outs, on disclosure just

overall case, any the to not In it's that picture. material

deal that revenue it's to expected. think I So it a paid, perhaps might going to like, to it as even extent that we've And the see you success what change actually don't I it's because that said, going even I not looks. look the be is more way it added think will anything than we the means if

Operator

Instructions] [Operator

Brendan Cavanagh

ready. Colin, I think probably we're

I allotted think up time. our we've already used

to catching next results. look everybody just our we I to year-end quarter So joining to the thank for you forward want with up call, and share

Operator

our using services. conclude ladies participation you gentlemen, And and for conferencing today. and teleconference call does Thank for that AT&T your for

disconnect. now may You

SBA Communications (SBAC) 28 Oct 242024 Q3 Earnings call transcript