SBA Communications (SBAC) 1 Nov 222022 Q3 Earnings call transcript

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

Good evening and thank you for joining us for SBA’s third quarter 2022 earnings conference call.

are Brendan our Officer. Cavanagh, today Executive and me and Officer our with Jeff President Stoops, 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 statements forward-looking as update XX may

the and over quarter addition, key and Relations Investor will In to third items our results. is it comments include that, landing our With regarding website. our on data information metrics. non-GAAP can will Brendan of page financial reconciliation of financial now measures found discuss turn in which supplemental other our The be to I these operating package, other located

Thank you, evening. Mark. Good

quarter. very We strong our continued another XXXX outstanding with

well internal Our our results of again Total were cash year our were site outlook million for third $XXX.X expectations us million. allowed leasing quarter GAAP third to results. the were $XXX.X and full leasing for have and revenues increase quarter ahead site revenues our

customers. the X.X% churn. recurring quarter year-over-year with third on basis, benefit currency XXXX, approximately basis, was was leasing third or bookings, million Domestic a third cash was Domestic over meaningful represented again recurring basis, representing for gross rates the with XXXX, net exchange quarter, during quarter negatively solid the from Foreign quarter, forecasted $X.X same-tower basis is activity, $XXX,XXX consecutive a our constant under commencements when impact impacting contributions have revenue Same-tower of cash by X.X%. revenue growth placed of a new X.X% of our strong leasing operational including our X.X% churn. X.X% which of a the our revenue FX revenue last quarter, increase third growth same-tower a they quarter site of gross second growth for of including XXXX the comparisons calculated were on outlook the contract On level largest amendments each of on of the over to compared on on of but domestic allowed of for leasing previously third third from revenues organic The X% very the quarter estimates us for and rate quarter basis. a activity year headwind leasing and to faster-than-anticipated new a was new combination lease-up. leasing

During we the Verizon timing less third previously estimated. of than quarter, incremental amendment of XX% leases. of activity also DISH domestic big quarter. up carriers The represented had Domestically, we T-Mobile, XX% our of during domestic from leasing new experienced with and being over four the represented total decommissionings XX% than bookings, projected coming later churn due merger-related to signed revenue we had AT&T,

X.X% on of leasing our basis. of revenue of basis, XX.X% churn domestic a year very constant leasing revenue including was X.X% same-tower good we the best expected as amounts activity in quarter shift growth cash XXXX churn a Internationally, gross reduced XXXX. new to Our had terms was currency again International net, to are signed or up. on

largest basis. constant another had XX.X% contributions our Brazil, from currency our we inflation-based international strong we on markets, market, very In strong Same-tower quarter. growth escalators. in levels In continue see many customer addition a to of Brazil to across organic activity was healthy

the remained from As anticipated, international elevated churn exit due to previously carrier primarily quarter consolidations Digicel’s announced in and Panama.

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

Our cash tower remain the quarter flow or EBITDA tower well, margin cash flow and of slightly in services margins tower revenue. The flow Adjusted million. the impact quarter XX.X% very in XX.X% international cash reimbursable an XX.X% margin of of third was strong outsized impacted $XXX.X XX.X% quarter, EBITDA expenses. with margin as by a excluding was pass-through third domestic adjusted the

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

million million During new $XX.X record results, segment the $XX.X in services profit. level with quarter, operating and again of produced third revenue business our

than We by higher record even the also backlog, on our finishing again backlogs, a services quarter continue strong to the at third level prior third levels our higher Based notwithstanding build this and results. our activity quarter continuing replenish quarter, funds our we the over quarter operations, was high once and quarter, third constant an AFFO from full $XXX.X have third quarter share in a AFFO our site the raised outlook development of $XX per XXXX. was year $X.XX, or basis Adjusted currency by increase revenue of million. on the million. XX.X% for customers,

quarter, continued acquiring expand of to third our consideration we cash XXX $XX.X million. portfolio, total for the communication During sites

the Subsequent Brazil on We sites we TorreSur, Grupo XX, in on announced quarter of new closed in $XXX from also end, consideration to built quarter. cash XXX previously sites million. X,XXX acquisition for adding the October

the addition, in or closing next We me, on price million. In the of end, year. for quarter to subsequent aggregate $XX.X sites the to markets are we these of an under – our purchase by under existing anticipate excuse of sites quarter by XX first end purchased contract agreement first have

we to tower our under the assets, continue new to land also sites. and addition invest other In in

activities of $X.X than renewal to approximately to quarter, or the subsequent leases, quarter, the extend At full controlled for quarter, million options our outlook under on years. our for our is towers ground results remaining and including to the life third an the we and updated land lease control, XX our we approximately the average years XX% of more XXXX. aggregate and we and during end During the and have year spent under Based easements land buy XX terms. ground owned of underneath

We release. have cash all quarter, by previously due closing timing our key churn as the earlier interest third costs prior acquisition. outlook with lower result These higher higher our outperformance metrics and increased expectations the GTS the our across were of offset of provided of quarter the in estimated a outlook partially items earnings from and taxes to

an We our and who Mark for are sheet. pleased on our balance performance things turn and to I now provide strong with to will finish third year-to-date quarter that, a XXXX. over With excited very update will

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

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

net cash the quarter high. quarter quarter’s and ratio under GTS end, interest third interest used Subsequent of Our borrowings EBITDA equaling net adjusted we acquisition revolving cash all-time to expense was to to cash on coverage last two closing. the our X.Xx, hand fund facility credit

of our with The of As under weighted interest average billion we today, our XX% rate million X.X%, of outstanding current total average approximately $X.X of weighted debt have a revolver. is interest fixed. X maturity our outstanding $XXX a years. debt result, as is rate on outstanding The current

authorization The XXX shares XX, at XXX.X XXXX, XXXX of as Brazilian acquisition. at of $XXX.X any not repurchased did of remaining capital million our we of currently X.X%. purchase to stock quarter, third a We repurchase have the common our under company’s million September the shares allocated plan. we for During compared stock outstanding million billion XX, September $X.X closing reduction the were

to of With And as the during close we $X.XX dividend of addition, that, per of business the our share. paid cash quarter, November share, Board XX, million the over In of a $XX.X I dividend to our that on a declared we declared of fourth Directors on XX, payable December XXXX. today, of announced turn will or Jeff. a record call $X.XX and quarter shareholders XXXX

Thanks, Mark everyone. and evening good

is As we earnings on present treat are appropriate an pleased report. of a to Halloween,

revenue expectations broader was we wireless metrics. outlook carrier by quarter leasing our and full extremely the of able deployment quarter an from macroeconomic last were Notwithstanding revenue year level environment, our quarter. total business fourth all outlook and significant the to organic almost increase our contribution third all third our were the year by for across highest again key implies by The in even busy full the contributions raising growth $XX challenging in after Domestic the million outlook activity benefited to million our We customers. year it and exceeded $XX raised higher for the quarter.

contribution services our grew again backlog. our produced quarterly gross history and highest in profit the of revenue Our business we services and

customers active Site course year, megahertz strong from during most throughout amendments carrier throughout a the through T-Mobile the and remarkable the rate revenue building the return the again quarter, with XG-related Verizon, highest year, was nationwide as the domestic U.S., out AT&T they invested spectrum. gigahertz capital Our new on leases remained have really of XXX quarter lease years. X.X active spectrum leasing continuing in busy for been new It amendment our XX.X% the customer DISH very In quarter. was networks deployment of quarter, of was quarter, in and growing were new each of during has their this the at our and least XX deployment the their the and signings. bands. growth year. of

next domestic quarter from year amendments Internationally, organic to well contribution had year. based strength the the best on our good to expect leases we of as activity of We the organic be again growth the and during XXXX. leasing revenue leasing

strong the shift During XX% have of the rate. of the amendments International from business through signed had while and performed lease-up with existing this activity Africa, third more a internal quarter by our maintaining saw again very stable exchange relatively from XX% upgrades existing contributions we was CPI-based we a escalators, and to only quarter, new well leases. led larger Brazil markets. leasing Not at from coming South Brazil expectations two toward has year, leases year. up been for new coming foreign sites, has largest above contributions our also in

over closed has earlier GTS and of only recently in these ahead begun, In addition, of sites The acquisition we proceeding October. on previously smoothly disclosed of but sites the integration is X,XXX plan.

do legacy driver. these our there growth, potential leases, with some the of particularly absorbing million mutually on some smaller spectrum recent merger Oi efficient numbers a our sites for a These sites carriers to X.X tower but are discuss beneficial Brazil rest $X total do approximately associated include are We as of believe impact of tenants we tower approximately these additional anticipate to $XX million conversations XG opportunities networks. begun will sites as a not items flow. in to or with $XX we legacy percentage auctions As of Oi, business GTS churn to Oi of Grupo With and an regard contain sites. the the those the reimbursements and neutral be associated have reminder, estimate integration pass-through any wireless around still with that potential have oil arrangements the with These per the portfolio. million TorreSur than to plus cash

We associated also revenue which produce these is continue business, unaffected tenancies wireline with Oi’s to mergers. from by

our with placed We Brazilian with well process. our interest look strong leverage more at and ratio have customers our be or with quarter acquisition, to address we due we EBITDA ended to net swaps, level years this annualized large them range ourselves of year tower through respect third at And fourth positioned a target We few the With some a relationship have last X.Xx refinancings well our even at completed working challenging below balance years. sheet to early over and rate quarter forward our to the with markets. debt debt below lowest Brazilian end. to adjusted X.Xx, in expect to

instrument $XXX We debt strength have representing October the our higher while we our given interest one XXXX. rates in incremental capital approximately XXXX, maturing and And flows. still refinancing instrument now That March X% between debt of today, to certainly matures million only have of cash great are of of and debt outstanding. access

several next pending to quarter the refinance our expect maturity We months. first during

of more capital rates, and and continue to imperative During an approach to elevated periods increased disciplined capital. with even opportunistic investing it is cost interest our

scaled in that wireless, these fortunate are growth appreciate the to having fixed cost of continued also like and be times a operations. underlying is We strong significant It the strength generation, really business. benefiting largely during of in industry, cash our we strength but flow free from the

with pleased the very performance. We are third quarter

by also outlook, indicated high positioned our well As out to finish updated on we note. XXXX are a

projects organic be But be this leasing of into year’s ahead continue next activity leasing quarterly significant anticipate will our our results year. providing We XXXX strong outlook and the our to initial to on network earnings we next our based on call. customers,

will approach to capital we to for maximizing team their look our allocation, year. members and and success to a are our I with strong to our and We And on for the ready for be disciplined focused questions. to in to contributions Question-and-Answer now customers we our want Session returns thank continue shareholders. support Caroline, forward that, finish

comes you. Markets. from Thank line from Instructions] the RBC [Operator first Our Capital question Jon Atkin of

is Please line open. ahead. Your go

Good afternoon.

think which densification two So I of was growth in cell – your customers on splitting infill U.S. you in come what’s starting general might been conversations and or seeing driving going your I topics. majority interested terms far? is then M&A the with of degree overlays, observations with And what multiples? as interested in One TCF ex-DISH in or to so expectations or secondly, the up be Thanks. or seller what to has about domestic opposed just to

last first, Yes, I Jon. will take the one

with still assets its overlay spectrum. and to of We and deployment are SBA the at least capacity mid-band the initial in respect and the stage

current continues we capacity to be the While for densification expect driver. to fully come, us

Now, because the out good us. we lengthens that just a extent of timeline activity that really as the thing, take for

move compressed. in are There be is lot did a they SBA is a have expectations, Tanzania. seller a passed that right. the multiples degree gap what a that the there that we not we on things – company in on of reset expectations. We terms What lot the started expect we is fully they price take But what loved we those to some. because of things have pass actually is In did seller GTS. still will those changing for We there public in down. loved means unless of have that They to

appetite what’s the just M&A your build-to-suits, and then on that international for And lastly, tuck-in at moment? opportunities,

acquisitions We right for markets believe we that like And into comment are finding provided if do kind that build-to-suits and, new they only for things the same terms. are fall going do of you’ll it’s we that the Tuck-in all about made that matter, right I right and And do we happened as quickly – would allocation right us. to from see if things us things perspective. a don’t, until third if which what is we price growth for those opportunities. capital in see great, pretty quarter, a the we de-lever we’re

Thanks much. very Excellent.

line of Michael Our from ahead. Rollins next the Please question go comes Citi. from

get opportunities? and details Thanks, seeing on longer where share that to And numbers? still How you’re could and good backlog. along? of afternoon. opportunities, Curious you taking if updates it’s of you. just revenue data you the backlog are just extended book-to-bill Thank are a little an tests just coming bit some more centers then the And actual how separately, any the into your Edge looking at on for

book-to-bill. changes Brendan, know. know don’t in I me any don’t Yes. the had we’ve wrong, I’m correct but that if I

there would in you that that will is timing, quicker we really acceleration Nothing and and contributions did domestic material our a from last XXXX, I been relative point material. a due big XX that change contribution for projected. slight picture. new just was amendments amendments it say to mostly don’t noticed up move change we that’s that kicked that quarter I a little small around But that largely in pretty bridge and leases to think had the actually, now. XX bit on it’s in any And for you is if than out.

still for not seen Edge material. really started, progress, zero. And and actually in all XX the from the where much we or I the operation say where under – has more site the course, facilities. the it’s or it’s either great and to been state XX fiber great was, go ready probably have But to fiber it’s we at Edge be on existing really on demand key business, construction it’s it’s But these close of would area that tower top Mike, of in some cable which And to we we’ve of makes the attractive. them of because success but to of is and this and found to location computing what regeneration. primary

So we’re still, On of financial it’s basis, lot a small. an seen we’ve growth. encouraged a by on absolute But seen. of very we’ve basis, yes, course, what

context, And set? opportunity incremental incremental a within of could that at if keeping value you to XX do there Is XX flow, cash sites should in what perspective? value is we there the base mind these a enhancement? as from all the number be expectation that So a look

that I what happy that’s do. incremental No, hired because return tell on projects. these for will you still think core, What is to small. its the it’s have us invested really at with capital though, you, we’re I And

we’re make So small, invested long doing while, perhaps on as can going with happy for as that. very keep And we that we’re return a to it. capital, little albeit

you. Thank

Our Ric from Raymond the Prentiss James. from next line of question comes

Your is open. line

everybody. Good afternoon,

Ric. Hey,

certainly not Thanks, versus tricks is get It treats Jeff. tonight.

pay exiting ‘XX? Jeff, how versus perfect U.S., the sounds and high. Not are their you’re go CapEx. ‘XX looking then Help it CapEx? feeling, understand Potential for to rates ‘XX as anybody into looking need a to positive, sounds strong to I’d the Does at as far look of ‘XX questions a you there. like the of debate carriers question look the First at is, visibility, there indicator But leading backlog. out so you been trimming sounds the have get you good lot aren’t with get business like we is strong of record CapEx interest us services in a indicator U.S. business, budget When recession borrow quite if into it strong?

until mind, next shaping year’s up today, you but already financial nature that we’re because where begin today revenue things the the sign Well, business, of results. to don’t recognize keep later of in you

a So confidence. that’s of point

The for sites. do. spectrum I will to customers of board do our terms what of But the say other money, towers is which the will on this amount on them in customers that be broad. track mid-band they spectrum you for of our to this our is And – would point. number differences have extremely first across feel where the CapEx our competitive that them of knowing that their between tower them of And they year going the fact some actually others, reported, spend thing at from numbers a the is from and as all, good. we get the are means spectrum low they the frankly, We perspective and on least us the upgraded at are next fairly what for the that pretty

about starting Okay. Grupo into Other you funding how And be radar stock our that of question. this haven’t what we even closed given into we or already think we as be? the about And next the side, headwind from you get buybacks much think should but ‘XX, back about guidance we interest Obviously, kind come as business How early this might environment? year? should on that though to think look yet, in TorreSur. for year expense more do

revolver. on Grupo say, think that you I That is funded from our cash funding, Well, funded. the that’s hand already funded. got mean, and TorreSur about

want to an bearing on interest of speculate of the what’s up, So course, ABS the go. thing I refinancing looking will increase. interest the instrument too in is be, much March $XXX ready that to instrument mean, today? the There where don’t million teed got we’ve next that Brendan, increase. I we’re at

X.X%. is The one getting just paid off below that’s

higher. will So you be significantly that, should that expect

it, to it’s a parameters we’re put thinking I handle let’s a on little around that. mean, Well, right? have going X

Okay.

Okay.

don’t due to but mind, of another in billion be AFFO. October going $X over debt We have But instrument until XXXX. then producing – of keep we’re

be going we’re great So shape. in to

We’re to – We going my have based get going see either capital invest may comments. may not. either acquisitions it’s and to earlier in to to portfolio going we’re or value on

big this be repurchases stock to be two, you around first see leverage is going our decline in unlikely ratio. the and going say somewhat continue to are – a opportunistic I to would or We are given third

Everybody, lot. stay well. that Okay, helps a

of Morgan next question Flannery the from comes Simon Our from line Stanley.

Your is open. line

their domestically of for think for This on from could or are they what expand is Landon I terms you’re any Simon. was in the seeing on any deployments. the Thanks if question. taking other wondering from at specifics of you carriers you where Dish in

want too don’t to I get granular. Yes,

their say, All AT&T do mid-band and to let’s T-Mobile, have all analysis – they of well, where Verizon on with of with our still work us the based spectrum. are

do. I lot all question reported. and are of of ahead a really those now business answer then the on their requirements. June can has that based very Dish the begin then up, everything requirements, And well to are XXXX come back expect them we air And others. which position further got and And signed Some on the has that on in getting to been than focus they right meet to to work we a is tell, think XXXX good to

terms I business And based portfolio. it’s actually them. of which don’t that work work, of of still of a least from to that. our level varied is at on analysis, lot in a busiest, on lot our left do all, have there on a they commenting are to while those and you of want think tell they So will landed high I me all

maybe look the percent of time your then follow-up Thanks just to XX can deployments? in you what one have the potentially XX describe what to for these are such of eligible you under And maybe and the Jeff. think on construction do sites that sites facilities? operation deployment over that color, And costs, are Edge commentary, size like, build

Yes.

conditioning. start air have our or I that. three cost And – those? with to like mostly and of equipment, shelters are logistics expanded what’s that. and average traditional beyond we alarms things rack and of can are basically and be racks a out XxXX capacity what certain They look or carriers They they that on Brendan, like two check temperatures for are shelter lot the They have wireless XXxXX-foot used they that have historically. got think got

what size described, bigger, obviously. Deployment it the range. it do where something $XXX,XXX. we as if as lines compute a it’s for Jeff But $XXX,XXX data bigger $XXX,XXX at or Edge, somewhere on much operation, be in depends there of fulsome the it can scale, center looking the through more along the you’re Well, and a

have And to power you have facilities? how those much going you would do –

at are are uses companies. not data they a fiber size, of sold – cable they And being center not A signal that how Yes, that’s are of today on not traditional that’s for the basis. really lot for and power regeneration priced and sold.

much Okay, the for thanks very color.

from next go question Please Our Walter Piecyk comes ahead. the LightShed. line from of

Thanks. us sub-XX% question, you define that mid-band? Jeff, back terms just low talking the cell in Are can what sub-XX%, going sites of to ballpark? you Rick’s give in or the number something of like means

most are our be on be below range in that. of would The others their rate towers XX%ish would the in carriers satisfaction the and populated

scenarios? But where had the we’re radio of years have argue with Got low this CBRS then and three in just that out, that like band along look happen, hey, and the type question meaning the recall from inevitability And have they go and are antenna would differ type they part that. they they leases XX their in alternative different megahertz that then between been doing then we the that of a three seen the is, Samsung, just past band at lease more of additional maybe you has I over money. of Comcast there. importantly, you case, that Comcast it. does like with strategy? you probably many when on deeper, is have Charter is a X.X guess, hey, the radio And put about larger. meaningful offload two than that if Comcast them that’s like, I guess, scenarios, low so someone it has get with I’ve rather and said, low Would CBRS, X using does antenna, you first we Scenario and they dialogue those some more spectrum. third Because any does goes megahertz band when one that is low it the spectrum, helping

new with for if or tenant, one you of way a same three be would the So those would a pricing? be came where new leaser there alternatives to that different it they

the on being of the transmitted? based is spectrum nature Just

Yes, and nature.

Probably of the going lower not. describing going equipment to based the to be Probably as most the you’re all I looks. And that’s deeper on it, band, mean, equipment description third the I’m band, be based alternative it’s Probably. side. intensive on envisioning way the your lower on

ever So they opposed we be CBRS that, though spectrum, Walt, based believe. transmitting mean, are as don’t their they necessarily differentiate own use and not fact that shared I on is that we wouldn’t would use don’t own. somebody’s their I even of their owned, versus put of the have think to it CBRS I way.

there And has this been any meaningful to point? discussions up

scenarios they my are those discussions I lay But would that for personal that think you somewhat the in I future. in Comcast. still out, say always are and with We Charter opinion,

Got it. Thank you.

Yes.

Yes, understood. well. Very

question comes the UBS. of Batya from line Levi next Our from

open. Your is line

GPS strength backlog. the original was segment? you side, pulled overall similar Could much remind to to the you And year changes Thank Services, the Thank any us And revenue Network if and more the you. mentioned the you. financial there you on are Can we how that expectation? impact forward? expect a added performance of next

than numbers the GTS, aren’t what quarter. Yes. we gave last any different

expected $XX forward little was $X pull basis impact revenue total bit is an about the a closing million. approximately early on million. annualized be of the to from The So,

that. exceeded fourth year, a to because months enjoyed we supports guess I expectations or backlog all greatly out we And third have has until we that have guided a services, quarter terms we in benefit the in and give And our of similar performance Yes. what so year the have QX over to to holidays in, XXXX quarter. five guidance. we mean a when That’s next what some and we QX really hazard terms next four months wouldn’t we the in prior full of not

you. Thank Great.

the MoffettNathanson. Our comes Deo next of line Nick from question Del from

open. is line Your

questions. Thanks Hey, for taking good my evening guys.

other in revenue that the First, in change of you the the how decommissioning something from? QX versus just that fees looking in Is QX? what was in and similar much coming U.S. in at what’s jump or expect guidance,

would from – chunk is it things. fees, related are to we of big QX, also what tower of It I that’s variety to than of a Yes. somebody continued a holdover largely big they the fees might includes churn almost are, revenues, which should. actually call of longer And a – off, on was paid to have is payments But for say. basis a the Digicel. that stay to It of but contributor cash the all coming that is internationally they they portion that, number related jump make number extra it’s payments. they Digicel is internationally, We staying a but related mentioned

And are now. basically so other in showing those up payments

That’s and trends Obviously, U.S. I expense OpEx to guess And are of you wanted Okay. also the ask that the majority I is your escalators that are ground in great. about rent observing fixed.

of So, lot base, relates expecting like a rest seeing on? and to corporate, that the expense and operations it are takes the so of But your you table. what off as field risk

percentage you smaller cash given that matter doesn’t we higher lying to out – financial year we it’s mean But companies. for pressure Nick. years. rate stuff. other of just But I is compensation average lot there, X% be SG&A were our only really cash, at that so kind the be of on revenue. are increases than next said are we X% have a we We just when in at if you the just last to of seeing think of – definitely is SG&A, immune we And like overall for we than couple numbers. going a would us, But giving of it much a it some – it’s inflationary to I are look

protected? Okay. essentially on Are and CPI-linked environment. That’s if can one overseas, I current great. or growth And you quick there be that showing in should in are value Obviously, we really hence, contracts uncapped of of, the value look the cognizant on we caps one. front, escalators at major guys last the their are as squeeze totally that the any

part, to trying out are But there am I for most may it’s two be the there if uncapped. not largely there. one think or somewhere any, are We capped.

you. Thank Terrific. Okay.

question next from from Williams Cowen. Our line the Greg of comes

Your line is open.

taking questions. for Thanks my Great.

How these if how few two, it am be at Latin these still the If and quarters churn? at to Oi that here I given few wanted in question guidance, permitting the on expect next the and Can close XXXX? the revenue, to to do next out? about Do the spills over into etcetera? we from consolidation remain hit your up see to to levels? cadence I over that levels shifting X% a trying Thanks. talk we where may. you you margin the just And should actually, quarters. more XX%, out over just service figure churn we American pan digital, is of maybe that out I Are your I profile. margin in Second shakes service construction? X% think Just look much

the do can And question mean first. I Yes. you the latter Brendan, will American churn. take I

side both the We are construction zoning as the side. traditional permitting on Greg, and well executing well, very as the business, of

those lines saw the ago closed the between they same, margin business, that services our differential of not are the two tremendously. but So, has years exactly gap you

the better the still zoning than we of the a and get on we construction. things permitting on margin do So, side

will going margin margins. So, the think hugely to mix mean of don’t different a be that it’s next I the But year. impact I

first to based side. how has on the and new we kind come typically and see way think for going permitting any I mean the business to is the work of – will be the we business expect zoning flow on that in that things interest I for

So, change whole I going a to it’s think lot. not

as similar and next is And of quarters that next may the there is end that’s there on international are the The on the today, in conversations, would you thing But piece, those have that be started. into look will the Greg, of what’s happened quarters, of influence conversations now, year’s that at probably, I year to in that where timing I to next nothing of this that. out midst up, we looking only we big the about some of also consolidation in is there report related Oi of churn one are in Yes. to one would as is just, when because obviously of numbers the – the stuff about account couple takes that few And what thing a expect depending on like. Brazil. range continue percentage then terms caveat

Got you. it. Thank

next comes Bank question America. of Our Dave from the line from of Barden

line Your is open.

you. Jeff, Thanks the for questions. for a taking very I guys. much Hey bunch, got

going as with I kids? The what most are is, trick treating the second… important for tonight first you your or think

as going grandfather. a am I

costume. interested still am I Yes. the in

below a There the target. would question leverage when time implemented kind target guys you target. that if… be thought you you been not do been a of have if are dividend would didn’t maybe though the given your you change you even some acquisitions want leverage being a wondered stock right how a pulling buybacks, highlighted target little So, back, ton And lower second leverage. to of to you there a whether the sort do was And there. conversation stock the I about is about is, has bit has on and thinking that of there

going a driving been belief think AFFO we level some you Dave, But There And if target there. if think have at to this, below. function clearly, entirely with case, now maintained and allocation low the right don’t our just may time. but below, dropping almost our thing of continue end thing, leverage given really are some be have is hasn’t into We going financial going more to I happens, not be theoretical a optimum be opportunities our not access a company. at for poor do. I that’s capital. we and that operated one to the high that to to to the to dissatisfaction dropping change relative mean dividend of that’s this capital is the And turn the the

probably we lower REIT as be the will to like of anybody industry maybe We else faster, that a provides. in still our as But as of than years. certainly dividend and faster because peers well, it our it’s the AFFO grow we have percentage flexibility the going couple last

then I debt. little of has had distinguished Obviously, second fixed the that And bit with a you from a peers been was question guys the that rate Okay. pivot one changed GTS. Great. things to

portfolio? earlier what about the in don’t the variable plan for for talked that the someone rates, guys the I debt for lock Are going about think higher are you this you going – one go you to – to ABS, the fixed going GTS to in Mark. but is is or the try asked refinancing rate in I I are to out you guess meantime? of the the rated plan

mix a both. be will It of

to probably than We have opportunity amount noticed the ABS financings have, you our we where more issuance rated XXX. refinanced, for to been have we prior from the have raise as well be above

to far how exactly go. are that out We trying above figure that we

some So, it then there the is pretty will occur cash the of rest revolver be reduction and from from in to going that, quickly flow.

Perfect.

a little of you. Okay, Brazilian you a could, last considered Jeff if good. policy I And of Thank is, question, kind bit please, I wonk. then always have my

etcetera? over, currency, how in of Thank – implications you. Now what think industry, that next the is is do for you the terms telecom election

more of Lula Congress got down of Bolsonaro, as centrist all know more President, by left left us, time, same coalition Lula but if well. that has the elected more we he only to a gotten but the At populations the there not also elected Well, right. some the is actually got

are and classic Congress, between a have draw lot Congress you and going the of in Brazil. President power to has a between So,

would changes. think I he I going business business, left Lula to But things the that know that’s – I assuming, much us, of think be environment the without to a mean That’s policy think anything. Congress. I going don’t some of the a – proposed proposed So, whatever have happen for it’s that kind detrimental to to and continue that very I would be of good for hypothetical to lot don’t purposes, because and

Okay. Thank you, really I appreciate. guys.

Sure.

line Street. Our question the comes Guarino of next David Green from from

Your line is open.

new make Thanks. your from of macro your that to wanted ‘XX guidance leasing tower am activity peers leasing to Hey for I sure enthusiasm next down Jeff, implies domestic activity. new one especially year, understanding that step compared a I gave

million going guess is to watermark, the look question think grow actually as think in you your new So, I back or on there activity. high ‘XX guide that really leasing you Do forward? room that for a year is for this do are to going we $XX that

– next around for same that are start posting that release, it’s because calculation are we we year that’s and am year, bridge same exactly That you when to. asked be number speaking I next feelings for glad about question that that we when our conveying will earnings what we good next XXXX. thing really

your So, I answered question. think I just

on Alright. read I second then through one And can switching it. that. gears

this of Given the a the investments the to pretty we at have the markets. not you you lot doing year certainly foreign Brazil, relative underwrite how been lot in for the volatility and the might risk of you international a other year? reconsidered start currencies, Have have rapid what but in seen change experience maybe of

Not CPIs countries. really the because the by in matched has rate off those of currency largely been movement

on to are exceptions that in or general, of countries There escalated minor those has minus. helped. CPI. all some relationship in plus And that will based revenues be our But

Brendan line from Barclays. of Our next comes Lynch question the from

open. Your line is

changed question. going taking think has ability tap for environment, of Maybe the debt, my the will you continue Thanks And given Great. a macro the again, that remain funding to do into to source secured recently? market primary on your forward? debt

do we source funding remain Brendan, of Yes. will that for us. a it think primary

to to in and having strong. Our capital really mark. still remains the ability That’s really into very tap those question it only just markets a access the But impacted. cost. capital of to been of us available has plenty not It’s question

constraints question. in labor costs development that availability to might slowdown your Great. And or a the guidance rising CapEx other then to chain year. $XX Is Okay. It projects? looks came related one like leading by supply just down other discretionary million for that or about be

of close. It’s mostly smaller they are some going we to timing and just think when acquisitions No.

Very Okay. Thank you. good.

Our question Nispel next of from comes Brandon KeyBanc. from the line

line Your open. is

us Then and we you if we come I on be estimates guys than Great. expected. quicker of you least if year update for Two, do at backlog next coming to but inflation applications? Thanks talked international But I high, it’s unsigned last Jeff, bit for, put commencements year? a been should in questions. where have could stand Where a looking the lease little for relative today, ago the have today little bit, a Thanks. for quarter? aside CPIs taking guess Brendan, escalator obviously, about what that could. in at, Brazil. down you stayed

Yes.

off In many which where leases, and many, one end highest amendments, our of many, a in new was for were of have tad terms years. we we quarter, just that of are the the of backlog had second we leases at

just So, very, going a still forward. lot strong going of And am which handle underlies optimism we very at second looking the question. let I backlog, our a are to Brendan, you

assumption could today, out. settles than I perhaps high-single that. think in higher it that it’s to are would year we But to all you reasonable the mean CPI to which have how with especially Brazil, asking to and I me see somewhere range. is target that, be given predict XX% next that kind certainty, X% digits of recent hard in Yes. I do all the for a and elections But

there consensus be planning around curve the things out forward going published I because curve We mean accurate to Well, is we I do there. an nobody a on has crystal those [ph]. ball mean that. forward on rely

of the mean, have timing. Brandon, it escalate. comes I our down big for at we thing concentrated some which periods us Obviously, to leases is though, Yes.

where are a either or on specific time, impact depending So, things of lesser windows our during greater those it on has numbers.

Great. Thank you.

further End the of queue in Q&A at And are there this no questions time.

XXXX thank in look release next happy will our and for talk we Carolyn to Halloween. Thanks and joining Great. We where forward you about all February, us.

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

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