CCI - Earnings call transcript Q1 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, everyone, and welcome to the Crown Castle Q1 2021 Earnings Call. Today's call is being recorded. At this time, I would like to turn the conference over to Ben Lowe. Please go ahead.

Benjamin Lowe

Great, thank you, Vicki, and good morning, everyone. us we joining quarter our for results. XXXX you today discuss as first Thank the morning Crown call Crown on me With this Executive Officer. and Financial Castle's are Officer; Dan Chief Schlanger, Castle's Chief Brown, Jay To aid supplemental the throughout that section Investors the crowncastle.com have call our at be materials website in of will discussion, the we posted referenced this morning. those and may call are subject risks, from uncertainties which vary contain results to actual Statements assumptions Forward-Looking will the This conference and expected. materially certain Information Factors potential affect filings. results the about which factors our release SEC is could press the and available Company’s sections in the Risk of

Our statements we any and to are XXXX, update as made forward-looking statements. April XX, no obligation today, assume of

reconciling supplemental In available Company’s measures addition, today's package includes information website of call section Tables non-GAAP in at these are discussions of the certain the measures. in Investors financial the crowncastle.com. financial non-GAAP

Before as remarks I that the over take mention call to morning. plan XX will as call Jay, following to want limit to possible minutes to I turn but we the this many our questions we today, prepared

me let that, to call the with So Jay. over turn

Jay Brown

Thanks, the good call. us Ben, joining on morning, everyone. Thanks and for

from is our with full-year and quarter first our consistent of nationwide we outlook, deployment their U.S. execution As results customers' the saw delivering you as our results initiatives outstanding increased support growth in XG

upgrade have to anticipation, seen significant a started activity networks at have our excitement we Following a of customers and building period increase in to as scale. their XG

XX% AFFO share XXXX, our X% Crown a target of level long-term this to full-year outsized elevated in in meaningfully growth expect for per anticipate as now annual of Castle year the above of activity result to X%. for we We growth

flows more or to the positioned to in fiber strategy for share and cash in I than and concentrated of years growth air XX,XXX and top approximately believe of generate XXXX, small come. have Crown U.S. backlog committed Castle XX,XXX dividends Beyond miles cells per on XX,XXX route portfolio in unmatched towers, our markets

this current The average approximately agreement Dan term of easier resulted will XX-years. shareholders believe and Our have deliver will an the over Verizon the the of our all impact strategy also has the to in to XG dividend and C-band several synergistic years. to discuss make it leases the contracted a the the We to in tower support the for with assets as is both strategic in cells with through additional leasing the agreement. small We infrastructure their network this Verizon existing terms are our drive months the our we excited value our provides foundational towers, our in led long-term highlights cell agreement sites Verizon networks for That expand XX-year series that support us that to long-term to agreement leasing that structure development parties relationship for it in from deliver financial risk-adjusted investing future equipment our our in deployment site later our shared of strategic with capacity fiber Building growth. remaining will that recent and expedite expected increase believe next customers. tower focus returns agreements U.S. again by growing for invest deployment, under we once DISH announced our on are to a the to is XG agreement small build-out XG further recent highest in with momentum intended recent nationwide on significant call. value recent of assets to establishes lease agreement

by still wireless inevitable growth included so analysts to and international international we growth it market was time We profile risk future And remember to desire U.S.-based our our for a that that didn't will for our core the not I only, is the why because today, trying risk. and best similar U.S. would into ago represents significant ownership investors for continue has and U.S. long-term shareholders. why one returns to growth outsized is of it our the fielding we of attractive which superior business that U.S. many questions lower U.S. believe remain line this that since the we our on XG, reached repeatedly fundamentals to of dynamic hopefully most view expect principles we growth has for by investing higher the strategy we for nearly focus lowest the drive believe develop our back the from strategy Turning assumptions growth core U.S. returns, has wireless the into offered of U.S. of XX% in generating a than made into the is due infrastructure to were investment. This the it of compensate compelling, outlook the data market highest infrastructure. the to key Starting with same the a to Because disproportionate outsized expanding towers, the shared established to conclusion and markets successful and growth more the that wireless understand demand by to the promise a that that of would over which the in fact underpinning robust here time, the buy outperformed cells market augment of in wireless that wireless across doorsteps set rates markets higher so part growth fiber slow, likely the U.S., scale in we decade that tied growth small the risk. argument mobile leading data amount tower offering at to in decades. the to infrastructure is attract set global U.S. see continues that less among is increase durability the questioning sitting our for of markets annually. and for a of is The continues demand capital on expectations.

wireless the with existing new are we towers relative U.S., growth cash have greater we foreign are risk, from customers network. years, superior in for currency has on revenue sustained flows including environments both horizons, or devaluation risks shared in established the market. and building disruptive opportunities on on that These rates meaningful risks that social industry a Because our long-term dynamics less results these U.S. lower to and impact benefited a churn due associated many have growing access to by investment avoiding wireless potential materialized outsized the developed and recent investment we in focused XG providing in growth have and in governmental can international countries. favorable with XX,XXX churn while less returns, long-term believe the to infrastructure less Importantly, business

CBRS cell in we assets that their networks, assets new extend and and term, line innovation this the opportunity XG U.S. per benefit AFFO need small which We attractive And growth. we as wireless outsized that are further launch edge our to the will as investing capabilities In activity into Crown wireless drive bottom of XX% our XG in and we we unmatched offers believe shareholders U.S. that increases growth share an to this the growth in Castle such on believe increasing for the believe the medium to capitalize fiber customers XG from of are opportunity, to trends existing very near our new our offerings ability to networks year leverage developing will growth and expect we I deliver computing. translate

an shareholders peers of compound future I our expect public grow double-digit demand growth X% see in to the When of long underlying the to bring the expect assets. visibility the tower into of to U.S. long-term made growth decisions with our X% total that the period to for revenue we provide shared again to U.S. we in term, time a by yields XXXX. durability believe dividend affirming we exciting that deliver are for trends able in portfolio deliberate have consider significant we business, customers into opportunity be comprehensive that rate the to returns annually. among wireless X% agreements the unique call the risks over potentially We assets out to stands overtime. and once entering will that access Longer our generate Castle highest returns infrastructure I we And of compelling reduce and our steady tower with strategy I Castle Crown Dan. the a will over that, with our currently to turn the history high-quality those provides that a execution, with Crown associated investment And value as believe our

Daniel Schlanger

everyone. Jay. morning, Good Thanks,

Jay mentioned, scale. at beginning to we As see to customers deploy our XG are excited

that seen quarter increase have exceeded We significant first solid guidance. levels, our activity our leading increased to in results expectations and support a full-year

by driven leasing contribution and escalators, rental see growth than approximately earnings from our and of X non-renewals. included strong results Slide growth presentation, growth to This activity than top our of to can were line new X% net from you X% organic X% site revenue. more contracted Turning more

We compared increase when XX% year-over-year share culminating per in growth adjusted from growth quarter a the in also services and $XX on in EBITDA in to million basis. AFFO contribution generated of XXXX, first a XX%

higher million Turning to expected labor-related partially by as by to Slide a recent a additional million offset million activity levels, activity our services increase guidance successful a of of reduction AFFO contribution refinancing interest associated X, we $XX levels. following result the and with expense in tower increased million, $XX higher-than-expected reflecting costs our $XX full-year activities, $XX

account, expect than as our increasing discussed, provided of approximately average into $XXX XXXX into to long-term to XX-years and that Jay previously revenue tower term in million these the adding of site tower Additionally, $XXX now XXXX. outlook. adjusted current we in leases our changes we a leasing Taking straight-line EBITDA million higher be Verizon agreement Verizon entered lease resulted with our approximately

expectation of revenue organic the revenues unchanged. X%, expected approximately Our which inclusive to has rental of growth rental site for increased contribution X%, site remains to

cells cells growth solutions from small with organic for expectation from approximately and across towers, growth towers, also growth XX% approximately small consistent, X% growth Our remain fiber X% fiber from solutions. approximately and

capital of of during segment. expenditures, tower $XX discretionary segment Focusing of sustaining our expenditures fiber million capital our the expenditures for discretionary expenditures million capital capital million, $XXX quarter, investment activities, on for $XXX including million totaled and first $XX

investments flow for approximately contributions. And after full-year we or to cash flow to discretionary and year than billion customer our fund with expenditures borrowings. capital at free expectation Our cash remains $X $X.X less incremental unchanged expect this continue billion

the sheet, X.X our XXXX cash Turning we times year. target balance on approximately approximately balance expect to the to based of flows of times five the first and leverage quarter the and finished net debt-to-EBITDA the growth exit through anticipated at at

lowest-risk and addition enhance Along of world in ownership, created for value the in overtime. the we significant what dividend business reduce market to focusing the shareholders of driving key risk further is to overall discussed, believe the on is the were growth, strategy highest-growth in Jay with we part to As wireless risk upcoming our quarter methodically the of of profile for a maturity to have the balance profile with mind, maximizing long-term our shareholder bond extend able With refinance profile. opportunistically reduced our access our we infrastructure and sheet goal same the costs during to market reduce debt the first maturities, that value.

five-years we maturities XX%. support reduced more sheet from positioned refinancing $X capacity of transaction, to to under believe rating, With nearly secured back from we revolving the X.X%, our and undrawn our Looking of achieved our on more to initial near our in maturity X.X% debt reliance of to debt on debt grade and term XX% is well fixed-rate our credit cost than mix debt and investment credit reduced facility, recent borrowing growth just nearly than from our just over to average we have XX-years limited billion balance inclusive five-years, from our upcoming XX% increased initiatives. just the to increased when average our XX%

up, at Turning about back the as we growth excited the activity of begin deploy to increasing XG things our the value of level scale. to to and customers equation are are seeing wrap side we

significant Our offering leading with sign value customers brings, our us. continue to recognize long-term differentiated comprehensive them infrastructure agreements to shared the

we and which once provides to tower attractive U.S. growth in when year XXXX, with total growth expect a X% current generate XX% We yield. to the combined share revenue in generate expect very AFFO return per opportunity dividend industry-leading again this

while growth like And would our add returns in these generating I cell small Vicki, fiber long-term to will that, are we assets the call that questions. open believe investments new strategic and we opportunity. to to making with Importantly,

Operator

question first Please Thank And Morgan Flannery take you. Simon go Instructions] [Operator we with ahead. our will today from Stanley.

Simon Flannery

the there M&A you going thank translating leasing to very you guidance on Thanks any business. all Great, and the trends that on see much. into Jay, comments seeing environment? you into dive Thanks. and the you for the What then U.S. color. are that could you perhaps increase led services time-wise higher just how

Jay Brown

we are Simon, encouraged Good carriers. the by among morning very we are the activity that seeing obviously

surprised sign that to our that The invest commitment they not are XG. in showed the XG. auction was showing that by C-band of a clear the level We during urgency they customers in are heavily are going really deploying

And so activity we just are think, the flows I that. from seeing,

work turn last actions end seeing significant we that encouraged into saw step of growth, activity think preconstruction amounts as that big is that site. obviously then work of revenue are some carries seeing. doing the relates networks. we are and first are we we a are in really XG towards actually as they quarter services has and we on portion doing deploying the that activity and of We are nature carriers that over of to are we this for it we the obviously, by to the towards about them as the of continued either that When install activity translating that activity, into year And it up most

we activity and from encouraging year the we that we the of a is direct of carriers. that think So result of seeing continues are step-up saw, this overall activity the through sort the balance of the level elevated

Daniel Schlanger

just second the part on was M&A the And environment in Yes. the U.S.

we in we are the infrastructure there the think what lot that M&A think board, both is out and of there focused high-capacity others we of been think pursue that Simon, interested that What and think M&A that not seeing being wanted, assets. that purchased. there lot. going I additional dense we understand, is for right been fiber most fiber, meet are metro on across money reflecting now environment, have a have itself that for U.S. the we assets we the is that We about in is be a we not and towers I in those of have may clear at, There lot is you of the for to a but criteria fiber. looked some is

capital business. most business, fiber in anticipate we but of growth also go organic will our So our in to

Simon Flannery

you. Thank Okay.

Operator

We will now go Michael to Citi. Rollins with

Michael Rollins

and opportunities that to might the just to of Verizon and and what first, Curious, this you types morning. and the Verizon's committed good within of start Can that this the with Thanks, extension. activities frame scope agreement agreement outside extension upgrades agreement. be fall

the your quick what the what ended about Just is predetermined that just to range think, overtime. over you of extent with times an how see on what the I target on debt X.X in And you Thanks. is the Verizon other the and of a can activities just versus us pursue that kind the think the could quarter, to progressing revenue first follow-up, update in give leverage, deck next to years? couple leverage, just net further then grow you at

Jay Brown

we excited about are Obviously, morning. side. we tower the announced really Verizon the Mike good on Sure, agreement that

MLA step-up as our to we that XXXX outlook thought obviously has in that I through amount and lowering regards of to the as and on release. really go and them we years of paper components or with the went have the portion last side, to are that significance time of to to put takes through evidenced think site. as press that large needs, several on on transactions we outlook have and meet last and the trying the that agreement I particularly the it, reducing over it getting night the we then the This to similar certainty the process same gone to done into our with carriers it impact certainty have price customers' provides the is significant well that have by it Verizon the think through value of ourselves

I that to over multiple get of obviously, we to them well, specific transactions we ability it that appropriately. then with are the have the customers And do that customers, multiple right price transactions have there. about their regards So being our kinds overtime, to our the the go with that sure facilitate right economics designed they on to of C-band. already with economics that it, an they And able speed ability on to desire and to we of And side are think trying that been to of transaction those and then process multiple to up customers do seen get of do make both the and site sites on and upgrades. is provide to back speed access to

they years, to are things lot from that We has those about that in about the the did opportunity to done we on a and leases a past sites. to on on in So gives into to And on it four-years be thought extension that on we XX-years spectrum want get an they XG to and to We about then that similar overtime. already new of way. to of moves XX-year handle And components the and a with maturity over it greater see out something similar have sites for those past equipment from the and initial which associated several their next them the then the is are standpoint. still maintain they upgrade bands XG, other push we once already the activities growth obviously sort upside us that. new then leasing on where opportunity there get this get

to what to means in the desires Verizon's I of total be able be I the remarks, excited XG the right about on terms get agreement before responsive in us of at excited there. think doorsteps seeing prepared about So scale as it said and to there And enables deployments to activity.

Daniel Schlanger

will is second I it on question Dan, the take leverage. Mike, And

stay times to be five to that fiber four we believe for which we times. years. will should still target our small as We remains cell and in invest in Our five business, continue several

pretty at end times through that equity the the feel the we position year in capacity growth debt in, five of business rest incremental of to about we growth. relying year QX. the able flows target. are in the We believe invest slightly borrowing EBITDA really the leverage five our we end of that above cash maybe but with good you and as We to while close will growth are, And that coming at see not because it, are we pointed X.X out, that to and that times on times, that to close fund that

Michael Rollins

Thanks.

Operator

the take Deutsche will We next from Bank. Niknam with question Matthew

Matthew Niknam

guys, thank on the Hey for questions. taking you cells one on services. One and small then

sequentially. the flat small were On side, cell revenues

I high into growth think single-digits. year-on-year slowed the

give So if should the you And can can are the think there you rest XX% for on in we you any how if then of any terms outlook color the and give the of in get growth reiterating the drivers And year guide? over look the the services, then more the terms for drove color services contribution year. course quarters like just the Thanks. of couple of trying of quarter. next will margins in a cadence the this in strength of I'm what about sense to what

Jay Brown

cells, Sure, we as would to, point good to our tried look do the at On in outlook, full-year. morning. small I have

on - that have we be a changes look as outlook, XX% that some expected. to going about still We cell to we to think that think we as little for out bit a at range, X% we full-year X%, around year-over-year as is outlook. is So solutions and for of at of full-year naturally may But time. through construction the right quarter-to-quarter have small full-year will towers not tie talked of movements kind previously it the phase in is happen cells, exactly going the go around side then small timing long fiber growth the the the there mid-teens which

that I I anything, Matt, of business would in anything terms in to. in So the don't see of that point the quarter indicative those numbers happening underlying are

seeing timing think those the from I activity, the we is the carriers full-year, how the it to businesses are quarter-to-quarter. is look we differences just what indicative more And perform. think expect I and of we that as at actual

there, and a level side services the elevated at are the On activity. cadence of we look,

to quarter. had many talk better than of So would right a we we that the of going back-end about or - where into probably fourth quarter even often year. end into we years, step-up services in loaded heavily years the second just the back And of activity towards carried quarter. And elevated first a being we half last activity saw in level terms the first in

saw pretty a with nice the from So and to our where assumption basically quarter. that we for were services previously similar the to expect full-year we in contribution first be real quarter adjustment first

Daniel Schlanger

is it Matt, Dan. Yes.

specifically. as Just higher between a that on our The drove talked bit within and part that the is higher of business bit margins Jay and of had a earlier, little It is on mix little the is the preconstruction mix having question a overall margin, of quarter, margin. what services construction business. about we the and preconstruction mix higher

Matthew Niknam

Great, thanks guys.

Operator

will we Cowen. Colby Synesael to go with And

Colby Synesael

thank Great you.

is seeing wouldn't would already necessarily about of what like October how conviction Verizon just from little secondly, the given talked included guess, back how that guidance spoke already you to it you or guidance? know have growth. I given MLA, it bullishly you is, your it into quickly early tower your organic then pretty gave is your see that XXXX, activity built raise that. and you that this of you easier ramped shorter And not whether is of move are get trying questions sense, some some guess just X that I where to you to type And a really the cash there includes over particular. is AFFO that or for for of is yet benefit, sites easier than or if quickly. make an type But the we or you and acceleration trying whether that it to to therefore in pricing that that gave It the relates a kind get has them of you allow actually in about guidance change people didn't And seems investors you quicker agreement the of the kind bigger way to demand standardized them on, of had perspective. then not sense as period, making are to assume it one demand the didn't I amount to the to were there see deploy. you amount of period, in are the go a some would that all X And You move XX-year benefit surprising financial seeing case,

color that any give you helpful. again, Thank So can on would you. be

Jay Brown

morning the thanks for good Sure, questions. Colby,

time from to actually start applications on see turn when the about customers revenue growth, lag On to of turn the the start I is a first of a organic on the lead put revenues from is pretty that would question that or start to there One around good on, couple to tower we front is to things the nine that. time we get you time in see months. six

something a XXXX. last X sort did years. curious to over activity little in is kind day to of organic that the over other that revenue see growth is I So of of the the our for up previous and increase activity. quarter into average And look XXXX XX% that we of step to talking over the have level this was point growth all the the back step-up we application the organic those XXXX been through our our in XXXX. the in overall informed We outlook started of is fourth back just see increased about revenue a XXXX then, and way of

our a is meaningful it we and we when that gave in increase activity, So outlook the into XXXX. bake

with of it But and is as just now materialized So the pretty it had consistent seeing then see in good expected. where we time we activity in the back were terms always to we frame. October are that what is what expectations not

thing about of at we activity, that opportunity this period elevated other stay mention that activity this level there the think and at it time. to for look this a I The would we of encouraged are is for as is,

would to where our points experience of a points I you at So tell the us And look rare, period highest are in oftentimes expect or that for to prior of off. activities inflection time. carrier people it plus the start and those going certain it a think hold business, points that to then the be fall of amount up is and for level step a or relatively kind see inflection long minus

to look we encouraged by To we look broader surprised. really is on, create revenue point and, as and are what when that that by value So activity, the we at we not the growth shareholders for seeing way frankly, activity, at of that at one on of what years year stacking another of right tremendous good growth in share per the top a the another. now on we long-term, what consistently And about XX% growth, of is basis of base. growing happening And and a like customers. that is terms On business the year-over-year have line of AFFO of try seeing growth, deliver stacking just over about longer-term ability goal. agreement was do your our we X%. around top achieve indicates from And the too to is that what goal X% that with growth top our the our to away are at stay Verizon good on certainly great to MLA, question specific we getting year a we the second talked

top on plans pricing if and over their terms certainty they for will structured include depending of does in activity, us time. question components both the deployment to growth I your of why with - a line then certainly they will It long and of them them about We in levels that us. it let drive period of agreement. are an of think for of parts answer there tell you But agreements would speak how certain

certainty it So have provide activity that of activity as component in some then where deploy also pricing next with And committed the they years. with there over is is of we associated C-band a does several revenues it them.

revenues So statements relationship, a forward, there of we year specific in GAAP the to beyond consolidated, what in will as is components of and cash rather of agreement. more the we spoke financial both terms of the of impact customer than see this to the to Dan And years those go contribution come.

Colby Synesael

Yes, committed it not on activity then presumably, that it not is is AFFO is that benefiting then that fair? actually future from Is the reason is point. necessarily the in that XXXX, but starting

Jay Brown

think No, I don't is fair. that

would of of assumed I would the with the in activity XXXX think be our customers. have gave look that some associated when all we would occur at we outlook I would

a But of that maybe our this result therefore, activity of under and flow activity the component and, embedded guidance cash wouldn't already year agreement. some of is necessarily different view was -. change our So it construct the in as a for now

Daniel Schlanger

Dan. The context our want in little of around closest I have put around the only our is is a would I for just growth is that it X% that add double it to of tower thing business where to guided Colby, that XXXX. peers bit to

signed And going that about really is feel drive our growth that our was the good we So signed peers we are X% almost deal this it into DISH, of we double seeing. all what with that with what one to that. Verizon, went understanding

year can for happen, probably tower good really we are too excited looking type to are as we of just what above provide than for our is we us now the and in growth are able as think increase much we for And as shareholders. Jay pointed, to much that number are any I right that business. returns driving one So a is the already

Colby Synesael

you. Thank it. Got

Operator

Phil Next Cusick with JPMorgan. is

Philip Cusick

Hey thanks. guys,

then First, times? pretty comment year on should expect remaining Jay, at CapEx it keep times, falling accelerating to DISH quickly. would that we Because leverage leverage that And be five below next five give second, at announced But on it using otherwise seems to surprise. well on Crown revenue may can impact you be site Cloud, opportunity overtime as thoughts any on not Thanks. in edge will leasing us how as big that computing. it your a AWS yesterday the the impact

Jay Brown

small is on Yes, which Phil, enterprise committed and kind companies of for kind some levels to services. government of number expectation scale haven't that over those five-years a thanks in that those CapEx, has up And that contracts. down I about and about our fiber any our those agreements build-outs a long lead-time and just million And related come largely Those That specifically out three we kind had to government we for couple broadband really net have activities, saw cells, $XXX CapEx, large we were those we around as done. of talking commitment. for of last strategic like questions. at that post the were we build-out from they of of built year's Many a enterprise built think, focus the result companies this signed quarters prior and the spent basis kind had was the times, acquisitions, down those CapEx made. Around of time, to XXXX. acquisitions the as of

we we off. now capital what rolled and focused strategically around believe XXXX what basically cells the think we beyond. and too is the networks the long-term XG on it as opportunity And build carriers is value they build for into have those So as networks. of to think business about to much spending, in small don't these kind I want get of driver

less $X We our guidance billion. have this CapEx little given be than net will a that year

process lease-up at driver to lease-up. yield CapEx we we returns same double digits cells. through, that drive sure see to then will And we the over around term, invested capital. the initial X% can will more good through X% into of and those be the what on small is. higher as put make our opportunities that, want that For We time understanding to of is on CapEx beyond there all see opportunity for capital go believe that that yield are we the the longer rigorous what return processes mostly the And look additional

the to and future, as that two to evaluate we outlook So what update let to agreements off We an to activity. would the between And are them done obviously, will is commitment and you have them we on In of our for We speak DISH network, their our The will recently busy has give delivering on typically probably focused as will and on do. expectations. then gate XXXX opportunities later DISH are, the building on to of out just we and are to job year. in any give Amazon team XG incredibly going how for based great in way us hoped. in out to ready regards as of delivering a support network. believe possible in I October, I the drive they we the beg of has plan the operating deployment they DISH, terms But most had team them and CapEx their their of and made get With what a work their significant DISH

innovation computing, XG, potentially today, management of around into edge question really connectivity lot as computing the think think as are positioned computing. delivering be to to think, networks occurs. edge the well last wireless activity Your increasing expand able power we and uniquely But the we move to solutions around to as And to that the as and the provide costs. traffic sites opportunity beyond estate, going tower edge applications that is customers well reducing enables is I a real

I anchor is things them of know another fiber, and really us frankly uniquely grow are dividend computing edge of talk our to to our both that agreement. It it it what our long combination have DISH period opportunities important that towers of like not beyond I we to was of forecast. example being and a that. think innovation for about And and highlighted sets something When of really designed with our put are in the that for capture I able time, fiber was the the around our foundation a growth to forecast. assets in CBRS is and we network be So their component to decided into as of position think they to X% sites. really long-term we able X% over combination up kind us

view optionality from unmodeled acquired where type us we over long-term. give are as of those the opportunity really and believe that assets assets to benefit the that So the and located and upside

Philip Cusick

guys. Thanks

Operator

with Jon go RBC. now to will Atkin We

Jonathan Atkin

mid-band and just debt get sheet, then see part Question just chain as licensees about the to of or And does some C-band you have you revenues alluded there talked active activities in balance you discussions this much. on very I infill advantages the this on I Thanks in structural refi of cells, to would to any elsewhere, one might kind think we the And but then that as come? the that finally, you realize if earlier and it be additional supply seem, script on that they that are point is I the and other the of frequencies. small a densification contemplate? are thoughts more the wondered C-band constraints morning pipeline starting yet. that little off, are seeing. at ways on

second consider already the points hand, they one a how of And data starting release second all are might see. around your you of how quarter what talking out C-band. deploy and press to the Thank other kind what around wondered as carriers I On put affects those another about expectation ramp kind saying, you that are type of half you.

Daniel Schlanger

on balance one first activities. the debt Jon. will on the sheet Sure, refinancing take I

what future the We us now, our interest our get any department. at within just will normal balance remain specifically mentioned to maturities. take look looking ongoing rate our going always to are do economic and is at the opportunities trade versus our as are out of to We the to have finance environment our and of reduce debt. to, pay we the part script, operations that won't but right attractive, costs, in identify everyday early extend premium into continue we borrowing that for We whatever we to That sheet is does would

will over and we do or everybody what when what We will going figure know find let we out will to out we are do time it happens.

Jay Brown

increased And cycles and we drive then as into see up now fiber yields demand. XG assets. we going we assets. network. have Dan that will I we we and the and XG those of comments. a of structural the wireless then will dense, think and later their and absolutely high-capacity then were of kind XG, areas enter around seen to And mentioned would co-location returns again, has And additional They to traffic really think that acquired, order densification. question that those where And of to into cells, of kind X.XG now amount of and earlier us XG, advantage increased in will small started we from sets we disproportionate of as second happened in network there On a as that are traffic we we have fiber we stages intentional necessary. fiber built solve component in acquiring in into assets about have benefit nicely And in as have his around traffic, believe existing, United to have as of in prior there in and locations further States. the fiber. the XG urban, the cells acquired we the do demand, And your innovation cells small up build driving be We suburban to XG nears and get start on, that expect see have that small that traffic, are XG and to that I is critical dense a where urban to we we the

impactful and that It small all with XX,XXX have rental critical haven't to last wireless quarter, time. to spectrum are we is we period location out your we of last update that and right in the to in you the et right will and to the will terms On anything normally got supply of of overnight. I that Verizon obviously, our are business, to to us carrier would of necessary are we where the of going the commitment the something, those the we think tailwind to activity, really If our see would the timing we strong we point are quarter-to-quarter see assets suggest the directly So at long this cells going are we in going expectations. business not talked the there we deploy have sort site to are question are a the not over in happen And around But are the out having great are that positioned. not as and point cetera, numbers impact on to point to you that and and discussions changes seen happen overtime. spoke carriers achievable. assets to networks, C-band that in early think of lead we commitment revenues. constraints nature conversations and chain, these about indications earlier, start and results, we But revenues overall time be the that excited really about a the and I that

We time. have a long pretty lead

will in do a XXXX have we if think have And about is. that don't what changes, the forecast growth. that feel terms an our and will in the into update good over impact lot we we where of themselves expect you. time visibility I chains and So supply will of to resolve But

Jonathan Atkin

Thank just you quick and that for a follow-up.

structure schedule put is churn. into out to just announced in that So but kind or philosophically on agreement to us T-Mobile. you think I might of last appreciate the of captures that quite American remind of how would expiration September, MLA helpful an the sort their which we supplement, MLA some maybe enter the philosophically, with MLA had want Tower any you Sprint willingness can address And of an of about that thoughts you that T-Mobile that? and any all kind the

Jay Brown

add mentioning the for disclosure. We additional disclosure the supplement. to Thanks some Sure. did

helpful questions, to not to more have thought gotten a some intended it we be granularity. is give little would be We you a forecast. It

is the and can site was churn, legacy the actual of and our T-Mobile. sites but stand-alone on Sprint the not where same the numbers sites what legacy not were Sprint T-Mobile you with in and actual So locations supplement forecast so just the separate is co-located where on

to open to of about that. intentional a We do a were always any agreement are with structure considering number an se new or the years a is there not need but extending per terms. We ago customer,

- back provided were we a So And the term leases, if Sprint lot extending we did it consolidation. - through a which disclosure, those of to is we the flexibility there in leases. of look when goal trying remaining a that lot had on we it, was if you lot that of have was got sure those make

we where at So have pleased been I look And are historically. what would about we there.

the they are earlier, that as economics to whether at of deployment network, always need. place same happy And facilitate increasing asset. of of synergies making is and with as carriers maintain have them carriers we the or on what that we protect both time, the sure basis in that I right the of well on help site and, the are open, as we working achieving the of mentioned with We to agreements and the economics return speed work the driving

terminated where XXXX, the do spending. through I other consolidation, we beyond, potentially actually acquisition. point So time. we helpful And and usually exposure been those to the consolidations carrier from and to think do have periods reality In T-Mobile XXXX out as just the as would of that entering dividend able sure next led will the right of past being date think have grow hold I have this, customers. we that big and about AFFO we in balance is to increased we some is right for our we make shareholders leases for thing which both and

the for net-net, that, a of long tower will ultimately, be activity end time more thing would we So a and, and have combination of we this had leasing period up view the for otherwise. and Sprint than T-Mobile more with will good industry

of that and I I investment to see sites. XG achieve with expect in will sites. regards down that at will think some some synergies they that try will far from down may activity do to that taking we the in they deducts some overall But some the taking so T-Mobile point And to of synergies see benefit in some we certainly time exceed

from see comes when net-net, back good years about will work XG. comments, the the So now. are time the to to activity feel we we through consolidation several going really And the in earlier

Jonathan Atkin

Thanks Jay.

Jay Brown

Thank you.

Operator

from Rick James. Raymond question our with will Prentiss We take next

Richard Prentiss

congrats the Good on morning tournament. Baylor guys NCAA and to

Jay Brown

a That how was Rick, lot you doing? morning are Good of fun.

Richard Prentiss

follow Sprint, air thanks we XX,XXX small pacing. of still up the year was on supplement you years? XQ? next helpful well. on still to want at asked as looking at Are for kind a about That you thinking look about XX,XXX the was on over great. And of I And Nick for something at nodes to are good cell us a pacing couple number the is that

Jay Brown

think, is time think activity air. going that We do. And about forecast We think - that end give forward. the year or on a this XX,XXX, pretty nodes will we for the I good take, with

of have cells well As thus think the I longer of to far. what demand going period is that time, in we look out small excess we seen over for be a

But for that of necessity discussions time long beyond environment around The a think small of levels. a for So public pretty I the near-term, I the comments there good activity and is view is activity the those time, the larger period our will of that, and their that the increase that. think gauge. the as cells a really lead I us you and in that, sets would a over think opportunity portion be, longer to carriers know, for capture it. But

go on. get of visibility as turning we them on we lots actually commitments to the from sites are go So certain to carriers when we of

through the our go you certainly we as update So process, on view.

Daniel Schlanger

Rick, is And it Dan.

put the XX-months get that would on just clear, a we cap why lot between just like questions XX-months time to We some lot air. XX,XXX which the put year. sort a and more a a got that. just on structural the if we XX-months. how bookings don't to changing of is many to there can to bookings, in me we result the just get and all XX,XXX, is a We takes have Let add But more those one on could XX-months typically And here, just XX,XXX we bookings than it lot I air see thing much. of is of around to be

bookings continues we small Jay or as and to recently. nothing are couple few have clearer of XX,XXX necessity is the to the deployment, at would speed of overall. that where XG next to out, greater point pointed us stop would that cells anticipate networks years be a the with there up had for is of we to look case that deployment good years So next bookings the get for the that we But as because of and with

Richard Prentiss

nice but business. you contract on had line? visible uncertain it that was think. thing Anything as it Verizon time XX,XXX, is Makes a sense, putting kind the as (inaudible) I about know a of the time, far the I to

Jay Brown

we specific more mentioned. have previously what than nothing No,

Richard Prentiss

close on to Is then double-digit you kind fiber, net than And and doing Okay. how and churn that X% help double-digit better it growth. churn- gross? Can us understand is still business gross- wise? of

Jay Brown

Yes.

churn then and to range, growth we to XX% X% still top that full-year around would expect that X% in are for netting We be plus is the XXXX.

Richard Prentiss

for Jay. one me, Last Okay.

to couple think You tower about opportunities of a like sounded coming do about increased Help it would are be that the little see you yet get involved Is it a you CBRS? put with? talked like? have Is CBRS. not in CBRS understand to in you on where opportunity it times, you bit it it building that us towers? guidance to be systems What will in might about

Jay Brown

Yes.

it think the all I is above. of

seen in will opportunity I see. that and we there is we building think have

success. number with trials a that We of have done on front and some

very think to buildings places are outside. density that I do difficult the the the an of wireless carriers So there from for to network into is the opportunity to expand reach

think So there I opportunities is there.

others certain there in where CBRS also to be by to going is used environment the settings I access may macro a content think who some opportunities want or in be provider spectrum.

the to that more to unlicensed opportunity of CBRS do macro in some of environment. So being components use spectrum able is an

opportunities has for activities, other controls land interesting think is I discrete are campus-specific there user that be share locations a some where and large someone a a portion also that of use CBRS as whether universities probably around or provider. could

the need be opportunities. for I stand overtime another for there overtime CBRS. here. the will But is out get do it other be we to how in think spectrum as obviously, trying it guidance XG to way are to I of to that is And as and that of I beyond to develop, not it hands I will opportunities be benefit enough ubiquitous, is everyone wireless think the think drive And this we for of because from see spectrum And component into yet operators, So think, be to certainly a I wireless deployed. that I figure and think spectrum a is that. large number uses rounding is, CBRS think more utilized is to the not

Richard Prentiss

Excellent.

the the block, spectrum Let's put too. see if FCC options on more

Jay Brown

Agree.

Richard Prentiss

well guys. Stay

Jay Brown

Rick. Thanks

Daniel Schlanger

Thanks Rick.

Operator

Deo with MoffettNathanson. We will Del take next question the from Nick

Nicholas Del Deoss

Hey for taking my good questions. morning. Thanks

First, probably the of down of have that the were noticed extended number years for in in lowest both quarter ground been the number I and leases ground acquired the trending and leases some they time. many

much acquisitions could So state have left market just of front. I a on about think was headroom the wondering bit you extensions you if how and talk that to for push the you land and

Jay Brown

of we our been a on of overall focused of XX% that, been that where little we of started about Nick. were to of about have last to we addition land I less third leases. the specifically remaining leases. in the increased a to a taken of or maturity we the neighborhood the like average or the about than This third, activity, XX XX-years neighborhood ground in to on When a XX-years, something we extending XX% longer XX And over have ground percentage morning the that, the about than average. good have over XX-years. our little was Sure of focus owned. term maturity in land XX, And XX-years, owned of And has ours for we think that had

activity. gain a of leverage for get think risk of about Cumulatively, effort of to over that ongoing eliminated risks, of consistently have in period in from us there put quality today. long a would relatively concerted termination has So small just albeit we category, really the at was over date standpoint right It where would That extension which about, assets what done be. basis. Dan and phenomenal risk. a a a would the the individual is well business an ahead And is job I we another methodically team sheet talking the been the is tower improving financial as the a time excited I or those in reducing landlord are an and that have terms balance any

As long be we in there. as continue to going we are business, to the are

at same the on sense, at can we land acquire appropriate on are extending makes buying that that constantly we the So multiple. ground working working time, And out leases.

of ground it. And some think, extending be mode, we and to always where extend I the will are that component leases, in working maintenance

So is some we and lease long - there then over natural coming that a a ground that is no evolution do to of once it, execution of of a site. board down or time acquire period the just XX, of the terrific XXX-years longer result comes activity any on we get off on work and the

and So around to buying it decision of extending will leases. right probably, will down in terms the of financial the overtime, quantity make or number, we continue kind or to come continue

Nicholas Del Deo

can limit as take where you the practical Do you see to a ownership?

Jay Brown

leases There of to want I forever. think property these the that are ground owners hold will

absolute is always component to a there component leases So have ground we business. of an as going the where are

portion like acquire to we obviously, things Some on remain government the our government ground land. leases those of of that. also And be are entities will in hands able won't

is So yes, there a limitation. natural

own it practical of not of are pay Castle a period the believe be Crown people the long There to the ground to love We for lease really and where yet. there aspects is will close that time. it, just to land

to right we term income remain is happy be have as relationship lessee, and want that hold a stream financial that of certainty they as the lease. it a are is we the long to And So to price. of in, to continue if good

Nicholas Del Deo

builds on front, I'm good one cell and, you intelligence cases, the for guys have maybe And went why small using maybe carriers sure What they you. cells the versus Okay. pretty like it something their choosing line where some in their or small vendor in-house or are carriers the the you've are correlated assets most else? self-building own for wire attribute kind deploy leasing? particular local on market factors to versus observing to as some own of Is proximity been to that

Jay Brown

Sure.

there think factors. I probably two is

reason why and they is one mentioned You would of existing their plants do to use they a it. them, self-perform to that have certainly proximity existing plant

are because frankly, lease-up reason, we there are where other putting in interested that The the don't not is capital see we the places opportunity.

providers to else of So third-party - portfolio, there a are limited as they offering at the number anybody that delivering just of of as Obviously, there But ourselves cells. capital then Digital small and are there building that, aren't Colony that these doing anybody beyond who's scale. isn't customers. inside

it. virtue pass thresholds And build to we also where locations kind cost return, in capital meet going certainty by or places where be not put lease-up, the want would invest would got not then the we but nodes the initial of to to carriers to for evaluate capital is selective the the we decide as big comfortable that not got lack time them be is and we of to would where those in of the of would either the terms there carrier and look self-perform. of meeting the return the places be at and that it other only So in opportunities to and we need demand have invest It over to are capital.

why vast is would would to it of lead they self-perform. majority combination So the a reasons the two of those

is of but have is to of cells U.S. than about that the carriers the the that past, going be We small building comments a market, number there in more don't a needed in this where million made small We aligns have those. view have the of anticipate all going talked our the be to certainly indicated they in some pretty cells of the number closely with

that see are and that and really we rigorous to those as opportunities for. I sort nodes, time. disciplined that strategy. cell lease-up so lots making small continue looking the think, have And will those going markets with which then for I best be we going value is look exist then business overall around are be about are And are And then to self-perform. is that self-performed the sure our in that is of are long there our as cost a creation in sites how as think I aligns we build carriers. potential just the small the that pick value and well think ones I that we U.S. on be the will and cells, building evaluating And and to approach we activity, thoughtful on it think opportunity for And we by trajectory to wireless at are those to of our carriers would the I

Nicholas Del Deo

Jay. Thanks

Operator

now will Bank go David America. of Barden with to And we

David Barden

taking so my questions. thanks Hey guys, much for

the we to you of Tillmans first new happening. there of not of then do the of think And that they at share search the deploy companies, Jay, getting as normal supernormal or was frame if opportunity part are of the are a interested at second have would the as seeing to tower the they Is So color may are a perspective you kind seeing of seeing beyond so. because carriers outside with is maybe again carriers is there any XX lead whether that A deployment? And gaining be, collective to expecting the idea for first you spectrum or going kind geographic point that the question world, to a of the phase about the the be super appetite among macro primarily from be had the yearend new this from here the the I to to are sooner that just lion's anything a share the who that existing backhaul lot [interloafers] the the choose sites. the of a Meaning of the to C-band clearing. carriers are block C-band or Are tower collectively deploy level, they markets respect that you start guess, later owns - looking mostly the rather Unitis, operators, should carriers may an the at conversation believe on incumbent (Ph), you margin would I to than of that demand there or some as

Jay Brown

a I'm about make let for just Dave. is how comments or they deployments. carriers Good and of question, On mostly little off beg first going specific probably But morning are indications. it the thinking to C-band to speak too kind those your to us

an in are stacking think, is, our and business C-band of a kind growth the earlier is as the is going own to for plans to seeing to of us time. I take of driver I I overtime, activity let period and obviously, before, of their beyond mentioned driving activity be to great C-band a years lot multiple for speak that, initiatives. I we carriers as and years But is of be are think comments, leasing mentioned lot extended going specificity my for we will deployed, of it kind We it of and

think around is where will the the the where there bands. the how to they locations On to I have they does add to additional is basic the They the be and already connectivity able power. about go? got this always really most your already infrastructure are of spectrum spectrum spectrum. network indication XG They They to component carriers activity got cost-effective have have got a on going think, existing deploy deploy have infrastructure. there. second History, It C-band of where helpful question

on initially, will sites on. least end majority at So where located of I they vast think already vast, are the up the activity

of I So carriers of owners of co-located on the sites extended are time. will preponderance activity for where the period some see existing towers these think those

the public sprawl, meet need. that and likely into extension And companies Those sort and kind out the at are you of is that tower activity. then is frankly, least their for again, to the developments, yet begins be mentioned that outside the opportunity two built spectrum that to But generally putting where of upcoming the gets co-located. the is to of tower kind places existing own that in companies level assets, of third used, pretty the housing sites core towers those areas up it where building of is capital activity and densification not limited to then places is locations As big carrier the companies areas. as on new step go, second, then are suburbia, their new activity. often where three The those

medium of and term the think majority in vast even activities I on the in is the existing days early maybe sites. even

David Barden

Jay, I it. Thanks Great. appreciate

Jay Brown

one more take will we question. Operator

Operator

come will with KeyBanc Nispel from question last Our Brandon Capital Markets.

Brandon Nispel

Verizon. go questions the to with wanted I cash great. and component Alright, these of to couple back the agreement on

That out retain? relative around generally about out think curious, think for is was of And use as I'm the churn, churn in would to would the and value trend be second collocation the How help what that you the portion the Can long helpful. us a Sprint or of then it sites the that committed ascribed you does what industry to previously? time? other can you historically be the over term extension. good agreements these are fee disclosures speaking, how to T-Mobile provide question have, I signed you And you so referred new you great. super you of Then quarter used the time when [XXX] lasted as number be. is contract over and this look (Ph) to contracted it million Thanks. the leasing

Jay Brown

Yes.

than the right our interest beyond our we sites that giving obviously I there priced of activity the customer them I'm our and is to earlier. is get existing in negotiated going in that that question, first into think that specificity with part for specific related the that that sites. extension existing of then commitment mind of and going There is as on actual mentioned I of component Brandon, of economics to into would more not of detail. XX-years. just And we their On knowledge returns. get on on terms the of to that beg the the to to And the a and off sites But that, to is question. too a There little best contracts, is level There is what that activity. be in for a pricing new Colby is customers

of Sprint the should part churn assume, question, early. frankly, is quarter, you Longer and negligible. it what around second term the the in On was really

that $XX year, out XXXX, we And As after here thereafter which then bulk the is all think schedule, in is each the in million it that of I churn that, less included amount we laid our of to until is first have out the way the meaningful not XXXX. table. than

are building predict will achieve. minutes way a they outcome is. to synergies Big of too from to investment I needing think mentioned by as that what few any conversation away net out we in early So XG the far kind ultimately picture, have the T-Mobile a of ago, long and the exceed that I

comments turn of specific forecast it way what or numbers. at think back disclosure I a a we timing when networks. that the think whether view that is actually view, that we point, we to is better place activity made amount. come ready consistent with the into to public and not or have certainly are have they their really this start take will And out of contract forecasted desire a seeing, impact a that the to build out. XG get because that we the just to will long is where just of because on a we of And and and more provide But

Brandon Nispel

Got the it. Thanks for question.

Daniel Schlanger

You bet.

Jay Brown

Thanks Brandon.

Jay Brown

job a joining thanking the end the morning, by for our everybody done exceptionally over and last COVID delivering this appreciate and want through year who I team to perform customers well. has tremendous they navigating to just call continue I our

And really you doing morning, forward We up work next everyone, appreciate thanks morning. for the thanks, to quarter. this this joining and are for all listening for look catching to for So the team, the customers shareholders. call

Operator

Thank you very to today. now your everyone much. participation, and I And our for conference like may for you thank conclude disconnect. does that would

Crown Castle (CCI) 22 Apr 212021 Q1 Earnings call transcript