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

Third Quarter 2018 Earnings Call, 11/5/2018


  • Same towner leasing growth was 5.9% vs. 3Q17 comprising 5.0% domestic same tower growth and 10.4% international
  • New domestic leasing revenue came 60% from amendments and 40% from new leases. We have solid backlogs with each of our four US carrier customers and expect them to remain active
  • Brazil provided the largest contribution internationally. Brazil represented 11% of cash site leasing revenue for the quarter
  • As of 9/30, have $13mm of leases with Metro, Leap, and Clearwire which we expect to churn off over next two years
  • Domestic churn from all other tenants was 1.1% (with 30 bps attributable to big four tenants). We expect slightly higher churn in 4Q due to iDen leases
  • Services revenue up 25% yoy
  • 71% EBITDA margin vs. 70.6% in year ago period with 98% of EBITDA attributable to tower leasing business in 3Q
  • Acquired 669 communications sites and built 90 sites in 3Q and have 410 additional sites under contract as of today for $97mm
  • At end of 3Q, own or control for more than 20 years approximately 71% of land under our towers
  • Strong 3Q results allowed us to increase midpoint of 2018 guidance for site leasing revenue guidance by $6mm, AFFO by $9.5mm, and AFFO/share by 11.5 cents
  • New business in US increased from Q2 levels. Leasing and services backlog remain high, giving us comfort for the remainder of the year
  • In order to meet constantly growing needs of their networks, our carrier customers continue to deploy more spectrum and advanced technology t our sites
  • MIMO antennas in 600mhz and 2.5Ghz being launched for early stages of 5G and seeing FirstNet activity
  • Internationally, had a big leasing quarter with Brazil leading the charge. Brazil had one of our biggest quarters in years with contributions from all carriers.  During the 3Q, Brazilian Real depreciated significantly in Brazil although it has stabilized after their election
  • The underlying Brazilian economy appears to be improving
  • Added to international portfolio including 663 towers and also built 83 towers internationally in 3Q
  • Primary focus for portfolio expansion remains the Western Hemisphere but open to other geographies
  • Tower additions YTD have ensured that we will once again grow our tower portfolio 5-10% in 2018
  • Dividend obligations estimated to start in 2021
  • Continue to target 7-7.5x financial leverage
  • We are biased towards portfolio growth but will repurchase stock when we view it as undervalued, particularly in times like now when we are seeing strong organic growth
  • We are in a great time in this industry and are optimistic about end of the year and prospects for 2019
  • Q&A with Sell-side Analysts
  • Remaining life on Sprint leases?
    • On the overlap sites with T-Mobile, Sprint sites have average remaining life of about 5 years and T-Mobile has about 3 years
  • M&A market and pacing of buyback?
    • As is always the case, we’d like to spend all the money on high quality portfolio growth. If we can’t do that, we turn our attention to staying fully invested through stock repurchases
  • Escalators
    • Domestically, they are 3.2% annually and internationally, they fluctuate based on inflation
  • Backlog domestically
    • Backlog domestically right now is similar to where they were three months ago and supportive of very strong bookings
  • Where can churn get to?
    • Domestically – we have some remaining Metro, Leap, CLWR ($13mm revenue over next 2 years). A bit of iDen churn in 4Q.  After those, churn will be in 1-1.25% range.
  • How sustainable is strength in services business?
    • A lot of our services business is being driven by Sprint and T-Mobile. Only thing that could change that is what comes out of the pending S/T-Mo transaction
  • New customer pipeline
    • Most notable new activity is coming from DISH, which includes activity all the way to signed leases
  • Leverage levels as rates increase?
    • Probably no change to leverage due to interest rates but may have a leverage level in the 6x range as we start paying a dividend
  • Changes in price expectations from tower sellers? Re-farming of LTE spectrum?
    • No re-farming of 4G spectrum
    • Interest rates are a consideration for what we are willing to pay in M&A