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Below is an ongoing record highlighting notes from select CCI investor presentations and earnings calls (newest content shown first).

Third Quarter 2018 Earnings Call, 10/18/2018

  • 40k towers and 65k route miles of high capacity fiber where we see the greatest long-term growth
  • Ability to offer combination of towers, small cells, and fiber offers valuable differentiation in the market
  • Strategy to invest in tower, small cells, and fiber puts us in a position to capture accelerating leasing activity
  • Consistent dividend growth – $4.50 annualized dividend (up 7%)
  • 2019 growth based on pipeline of new business which has increased each quarter this year
  • As shown in our outlook, we expect these positive trends to continue
  • $75mm of new leasing activity in 2019 from small cells which is up from $55mm we expect in 2018 from small cells
  • Pipeline of small cell nodes under contract is now at 35k, which is up 40% from this time last year
  • Increased activity from all four large customers investing in network in both towers and small cells to keep pace with 4G and position for 5G
  • Four national carriers working to roll out 5G services currently
  • Ericsson estimates that 5G will account for 50% of mobile subscriptions in North America by 2023 vs. 20% globally
  • Mobile data is estimated to increase at 40% annually between now and 2023, resulting in 8x increase in data riding over mobile networks, requiring a substantial densification of networks
  • Since 2014, we have grown dividend by CAGR of 8%
  • Initial yields of 6-7% on first tenant for fiber and expect returns to increase as we add more customers to fiber assets
  • Five years ago – had an aspirational goal of deploying 10k nodes per year (when at the time, we were only doing 1k nodes). In 2019, we will deploy between 10-15k nodes
  • Meaningful portion of nodes deployed in 2019 will be co-located on existing networks, which will bring yield to mid to high teens over time
  • Current utilization of fiber network is similar to tower assets when it only had one tenant but the initial yields of fiber are double that of towers (with one tenant)
  • Site rental revenue, Adjusted EBITDA, and AFFO exceeded midpoint of our guidance ranges for 3Q
  • Will no longer provide quarterly guidance in 2019
  • Weighted average duration of debt of over 6 years and only 20% of debt is floating rate
  • 2019 AFFO per share guidance of $5.85 at the midpoint, representing yoy growth of 7%
  • 2019 revenue outlook implied 5% growth for towers, 20% growth for small cells, and 5% growth for fiber solutions
  • Q&A with Sell-side Analysts
  • 2019 quarterly cadence
    • Nothing to point out except some of the small cell pacing is a bit backend loaded
  • Spectrum
    • Anytime there is new spectrum coming to the market, you see increased leasing activity
    • FCC is looking at how we compete globally on 5G – some of that spectrum is laying fallow in hands of operators that haven’t deployed it
  • CBRS and C-Band
    • Believe we will have activity on both macro sites and small cells, but believe it will be a bigger impact for small cells
  • Meaningful portion of nodes will be co-locating?
    • Significant growth in co-location giving us more conviction in continuing to invest in assets and growth the opportunity as we follow the wireless carriers across markets
  • Variable cost funding increase implies 75 bps rate hike in 2019?
    • It is in that ballpark. Baked into 2019 guidance is the forward curve of future interest rates which will add $25mm increase in interest expense
  • $45mm funding cost related to discretionary capex – $1.5Bn raised in middle of year?
    • We have $1.5Bn of net capital to spend, which with our dividend is more than our AFFO
    • How we do that funding is based on timing of nodes coming on air. Will use increased EBITDA to issue new debt
    • If new equity is needed, will do that in order to keep leverage at 5x
    • AFFO guidance is based on what we need to do on the funding side
  • Escalator guide for next year
    • Escalator is up nominally. Tower business still below 3%.  Small cell is 1.5% and fiber has no escalator
  • Fiber – what has surprised you on upside or downside on business mix?
    • Co-location has occurred at a higher rate and faster than we anticipated
  • Small cell and macro activity for 2019 – is customer set broadening beyond big four carriers?
    • Seeing a broadening in the number of markets the carriers are pursuing
    • Top 30 markets are where most of the activity is, but that is up from the top 10 markets which is where all the activity was a few years ago
  • Lightower acquisition – 7% growth expectation at time of acquisition vs. 5% growth expectation for 2019. Is that apples to apples comparison?
    • We are generally in-line with expectations from when we first bought the asset of mid-single digits
  • As we go out further, is the 10-15k small cell node additions a good level to think about?
    • We can handle the 10-15k nodes in 2019 without materially changing the cost structure or having to staff up
    • Don’t think 10-15k nodes per year is anywhere close to what the carriers will need to achieve their goals in 5G
    • We think we will be the provider of choice and continue to follow them, and if the opportunity unfolds, we may need to add additional resources to handle that
  • Breakdown of discretionary capital
    • Out of $2Bn, $400m towers and rest is fiber
    • Out of the $500mm capital contributed by carriers, it will be similar breakdown between towers and fiber
  • Sprint is 14% of lease revenue with 7 years left. How much is macro towers specifically?
    • Same range for macro business
  • FCC order on small cells
    • Deployment of small cell and fiber will be a local business. FCC set forth timeline for municipalities to respond to requests, so gives us clearer line of sight on cost and timing
    • Don’t believe we will a material change in our 18-24 month deployment timeline but will be helpful in small places with difficult municipalities
  • Capex and opex needs as small cell node deployments ramp?
    • Margins on small cell around 60% so will be opex that tracks with new nodes
    • Capex will scale relative to small cell node deployments
    • Staffing – believe we are appropriately sized to deploy 10-15k nodes per year
  • Churn
    • Tower churn is at the high end of 1-2% range, which is indicative of what we believe future will look like
    • Small cell – less than 1% churn; indicative of early stage we are in and sticky nature of business
    • Fiber – high single digit churn range
  • T-Mo / Sprint
    • 2019 guidance assumes that T-Mo and Sprint will continue with business as is
    • T-Mo has guided to increasing activity on tower leasing side if the combination goes through
  • Fiber churn
    • In fiber business, a component of churn consists of contract renewals (if a customer renews contract, the old contract is considered churn)