SBA Communications (SBAC) 26 Feb 242023 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the SBA fourth quarter results conference call. [Operator Instructions] And 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.

thank Earnings joining Conference and Fourth for everyone, XXXX Quarter Call. evening, you us for SBA's Good

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

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

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

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

Thank with you, another Mark. We strong quarter. ended XXXX

fourth end share. EBITDA, our finish cash the leasing adjusted results tower near and AFFO year and or at allowed us high to revenue, Our ahead our outlook expectations for were flow, XXXX site full AFFO per of of quarter

churn. was Consolidated revenue a which was leasing a of the constant impact gross cash X.X% the cash revenue currency basis, recurring growth net fourth same-tower On recurring is growth X.X% for of basis, leasing same-tower quarter, calculated on X.X%. year-over-year, including

X.X% Of fourth X.X%, on of gross on to a related a basis, same-tower X.X% leasing Domestic churn. over of that consolidation year last basis recurring cash churn. X.X% was was growth including quarter X.X% Sprint revenue and the net

of during the contribution placed quarter or in Non-Sprint was new domestic domestic and to our annual revenue leasing the consistent previously during third the ended saw of of outlook. with also activity leasing revenue. bookings operational up be with year second line leasing prior between activity continues domestic Full expectations organic under domestic leasing line levels expected, lower and with fourth and provided quarter site related XXXX. As to we was representing revenue our X% site our churn in X% contract

International leasing gross fourth including for consolidation. churn calculated the XX.X% X% of organic constant on churn was currency quarter is X.X% a on elevated quarter, constant cash was Total fourth which same-tower due basis, international growth revenue international X.X% carrier Brazil, largest basis. In basis. currency in a growth same-tower market, recurring to net, the on a or our remained mostly gross

cash of quarter. denominated leasing from fourth the Brazil cash The site consolidated was with representing XX.X% dollar-denominated dollars. leasing consolidated in non-U.S. quarter, revenue of during revenues site was During U.S. of XX.X% majority Brazil, revenue the

we consideration million. quarter, for XX $XX.X expanded tower communication our total of fourth the sites portfolio, During cash a acquiring

We also of quarter million. in of sites. built purchased site end the under markets we have by $XX.X to anticipate this XXX of our or end, the Subsequent under XXX third contract agreement for sites all to aggregate new the on price quarter. an closing We existing acquire

XXXX. press earnings includes outlook afternoon year our this Looking release initial the ahead, full for

of new will business contribution Our carrier continue through early contracted of to this, organically the outlook reflects continuation last our amendments year. a that reduced from Despite leasing CapEx escalators. and grow began level leases,

million customer of Domestically, of related in Sprint-related million assumes churn $XX $XX our outlook decommissioning. XXXX, to which approximately

outlook to XXXX, XXXX. $XX churn years unchanged. includes XXXX. Internationally, aggregate million several XXXX million million a of Our the estimate Sprint-related million in million to We $XX $XX million over million of $XX and churn in $XX remain in in provided anticipate $XX $XX next range previously largely our approximately to

in incur $X XXXX of Vivo and Brazil. we Oi consolidation churn in with signed Under $X Total consolidated years. the $XX expect agreement Oi 'XX, at anticipated churn this During agreement, remains additional we wireless next the approximately an multiyear million. million to over fourth wireless quarter several a million

lower year U.S. profit a activity full the gross our in carrier XXXX Additionally, outlook reflects overall service revenue year-over-year in the to due decline and

However, performance, not excluding and in these to contract This XG line historical and our of assume outlook customers those share initial further wireless network some XXXX not with any acquisitions outlook in very is the does any under result by our our of rollout the due strong beyond repurchase. years. 'XX does during assume

invest to during repurchase likely year. are share we and/or the assets in However, additional

Our ABS credit up the tower -- and and of our debt, our for October the in FFO million securities in of rerating the Term $XXX of per refinancing outlook for Loan expense and interest our the maturing rate facility cash XXXX. upsize recent B net FFO share refinancing include future future

Our XXXX, remains we refinanced facility, XXXX. balance the very have sheet ample liquidity. maturity January we In strong, billion and out $X.X to our pushing of credit

We also million. increased our revolver by capacity $XXX

Our revolver down. almost paid $X billion is fully

giving well turns, X.X plenty dry our of for target repurchase. and acquisition below share remains X leverage historical power Our steady lows us and/or opportunistic of at to

purchased let give we call greater This turn fourth around the me interest us Lastly, certainty in the future to Mark, over a additional swap will quarter. interest will provide who rate forward-starting detail. costs. With that,

and $XX.X Marc. Thank net of billion the you, total quarter ended billion with We of $XX.X debt. debt

have and ratio the target level range to X.Xx, low leverage which debt decades. lowest in was below net the annualized end EBITDA near of seen we Our our is adjusted

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

notional has X.XX%. $X quarter start which the which and issued entered The a expiration XX, billion a XXXX, swap XXXX. Subsequent a rate XX, interest for XXXX, March forward agreement our an date expire forward-starting will existing interest company fourth will During effective quarter the XX, coincides rate XXXX, X-month SOFR April rate swap, into starting rate $X.XX of swap swap with company new the billion fixed of the at interest January were new will swap. to This fourth the of agreement. par This and of of in value. SOFR $X.XX billion expenses. restated expiration XXX The existing $X.X and credit billion fees The rate pay interest plus issued XXXX. The The its at January retire effect to basis loan points. related on until interest on XX.XX% under B matures company's remain March used senior term XXXX. secured Term proceeds swap term accrues the loan Loan in and to amended XXXX was XX, loan term

further facility to revolving XX, $X subsequent the Also, billion commitments under quarter, to from on XXXX, company the the February the increased billion. credit total $X.XX

our is hand of current amounts on cash weighted use average have billion revolver. And of to revolver. $XX under continue today, debt weighted average approximately X.X%. a our The rate on of repay fixed. with revolver under of a maturity the current balance The X.X as interest outstanding to million years. $X The debt our XX% outstanding rate total outstanding our is interest we X% We outstanding current rate is balance on

shares previously million, of our repurchase repurchased average our During third have share. call, $XXX We authorization under XXX,XXX $XXX.XX remaining stock, the on $XX quarter, earnings fourth we our at repurchase an million currently plan. discussed quarter we stock of common as $X price of per billion

at million. The company's outstanding December XXXX, were XX, XXX.X shares

our a of dividend per paid quarter, share we today, during announced quarter $XX.X first payable Board $X.XX on the that of And or cash dividend XX, the a an share. declared and Brendan. of Directors March fourth of of addition, March million $X.XX we a declared XXXX, that, we turn over now increase business the XX, call on XX% represents over paid approximately to This the fourth close to dividend I'll shareholders of dividend of record XXXX. as the quarter. With in In

XXXX on Good pleased XXXX the our Mark. performance and reflect opportunity to for I afternoon. our thoughts about beyond. am you, to share Thank and

headwinds, some significant of our produced by environment future floating our solid consistently costs of headwinds, a refinancing high also XXXX only executed SBA macro extremely these and financial particular, and the debt views and the affected SBA's but marked cost was that interest spite results. In not well year spending their rate levels. around network impacted customers in directly rate macro

Most When to for initial and initial cash leasing of end per incremental for AFFO of we in our last year little results compared share. the our finished very revenue, outperformance adjusted given given materially AFFO the against spent February discretionary actual for CapEx organic was ranges comparison the tower flow, as outlook. site EBITDA, outlook year, above of the high the XXXX in

retirement, cash X.Xx capable team transition am it and of and Everyone the the have on and our the down disciplined paying rate a finished for revolver excess team the and extremely IT leverage of assembled and and in floating positioned the future. company. to have low was was well free throughout The roles, leadership we debt, their Jeffrey revolver spent level how functions. flow $XX the us multi-decade today has year instead very addition balance million. Internally, stepped and largely for the Montagner Stoops' team of new year Our only legal succession current at planning a happy of highly with performing. our collaborating international, into Marc up I organization is members leaders well a

look largest we our we domestic investment we customers. reduced a that forward XXXX, As coming off network by are recognize to period of of

significant, needs network meeting of for and we critical future these their However, anticipate objectives. for goals each and a partner remain our operational customers in being customers

which of percentage our place of we will over couple sites are the next require XG-related still significant upgrades, confident A years. take

average for or product success mobile user demand as will typical and offerings fuel increased this more broadband continue data XG the In will speeds our the customer. the latency. a lower and uses demand for XXx access as greater of capacity offering wireless AI-infused fixed customers addition, of the the product improved growth for of add evolution network to And than

are come. Internationally, good our providing for dynamic on cases, network leasing All markets. many significant as products old-fashioned also demand assets the as of solid wireless service-based a impacted of see our number our that than greater factors, U.S. supportive advanced well organic U.S. of seen services many to the years competition, significant for of Financial in a backdrop well these a continued and even throughout for of and, customers as international needs, in have steady leasing of we pressures but activity organic activity is

We at in for sites. expect continued incremental this tower demand will space turn drive our

been several customer of our markets. Nonetheless, have consolidations there in

business have contractual long worked we their result, closely commitments achieve to for our of a necessary solidifying the our our efficiencies while in them with and relationships customers help but the term. preserving breadth As operations

our result we cash While as streams improves this and of flow these produced stability strength a the proposition. elevated of efforts to value our churn, go-forward temporarily meaningfully leads long-term believe

analyze assets around to forward and highlighting strategy. more This shifting stabilizing operations. more my and to our good growing core the or a desire are of results, Internally, consider our is mix into we a our high-quality our lens segue everything through we do views business and doing

within this taken While has of history, than lines the our SBA this recognize we business well throughout goal. is approach different all or not not its that fit assets materially

a we improve action As and work full market. develop evaluate business each portfolio and each doing plans the result, our in how are around to in line position we our

markets we was be tended in to better otherwise created instance, possibly found path Argentina. In very to do significant that where in be our the were have was to have An places need example those means leader position, instability country to fourth market only For a from market in. certain Not a in operational we it in business. valuable attractive a typically not. hold international economic we or operate attributes dilutive tower that we subscale, to position our to market. the of operations, the this but we places This markets find we of more where the that do quarter increase exit than exit challenges our scale ultimately a

pursue of growth the in markets. Financial we prioritize that incremental will quality in results we but an an will improves as always standing stability our opportunistic continued existing our drive matter. We either investments overall asset or to mix favorable always and shift have, investment

long financial the We disciplined that We ultimately high-quality assets term. produce believe best producing result. will possible toward be the results over

cost stock our intend We capital not retaining look evaluate asset optimal lowest to that capital also repurchases worthwhile We to incremental the we'll uses debt are capital. investment flexibility. believe and balance structure, opportunities appropriate and are of investments when for with continually of available, reductions

capitalization placed has what company industry. best to the is believe the of in optimize I the position attention in Our us

retained greatest are invest We the the in post-dividend business. dividend the have to fastest grower, yet, but AFFO

retained an but more debt maintained larger leverage. our have to have turns up to cost to We peers average very close X access of

us with recently have revolver This increased the to capacity move we our and shareholders. believe for by We million, liquidity. will best creating provides optionality $XXX provide return whichever direction extended structure expanded significant our in

foundation remains The stability future endeavors. strength a core for all it our tremendous provides tower and of business and

confidence great our have ability for in As result, shareholders. value to our a I create future

their want to we take I their want in their thank for questions. thank for to I with contributions team and success. And SBA. members are to that, customers our our Eric, to also confidence ready support our

Prentiss we [Operator will James. First, Instructions] hear with from Ric Raymond

on with welcome K, Mark congrats seat. calls. new to Brendan, the the the

Thank you.

leverage obviously a focus. been has First, key

You guys rate floating have been debt. paying down

down leverage where versus we net the floating is as then. and your future stock got How buyback? it X.X to of Almost You've the in turns. paid today X.X think about heads should off all

update on then And what us out you're M&A the far there. side, as seeing as

out mentioned the new you an position? you kind that of make out that be would leader markets. any market You Are give markets would that there an if like there? deals to were your there And in interesting industry-leading there what

Yes.

down we use use we capital with of also some stock that if a a paying were higher may throughout capital. best of believe that So include floating cost we would the leverage at include rate opportunities side, had of capital. that we if debt That it last Ric, the we're see amount of highest that on our we quality to our thought the obviously because X.Xx mostly we're see in structure. into year, but place didn't And use the that debt opportunity. of some right see better buybacks, the necessarily was we acquisitions But level comfortable that leverage at

We So we that to the go don't is retaining fine, direction really, we're we result. stay flexibility think what relates feel that's whichever balance too. this if as have produces sheet do, we're but to it best at to we our in level, doing

used leader our yes, M&A size a it's existing We and as are we there front, we're a opportunities available, be where of at to to that. customers. there. that that leader, the market the our that we can, not frankly, position, are for in perhaps a speak of globe, we new we or even On our available opportunities to to and that of looking one we're some aspects number looking I look terms importance of of of at other we're anything when a when what but market at come at all definitely can't factors assume markets really if opportunities throughout looking within we're in the is out our look specific terms consider just they among at,

the at the Can And think into when year? Obviously, as of to into you months, the help an of new we're of closer you United pacing in X sitting understand what still turns where lease play far you here actually months, is out February. kind kind us the end X application of revenue? activity through it as get it States maybe will

the little the in or to is closer brand-new it months, depends Yes. actually a it It's longer good a on but bit That's with The months specific signing to it's amendments. time a from that. when circumstances. revenue on X more consistent when frame into it's for lease gets still sign usually X what we shorter, been something typically past. pretty Obviously, the

So been what that's with pretty in consistent past. it's the

in rolling that it's But over. year forecasting the throughout pickup mostly next we're to based on is today the pacing front-end kind projections, domestically, last should because the of you at of as year. activity, it's little And necessarily domestic pickup put if activity. you're about terms activity be more point, in contributions, a that in going our look and loaded extent to we've throughout not and our number we've but I bit specifically, bridge terms that's seen asking this a assume In that there forth material of impact what year, at

next Markets. will from RBC And Jonathan with Atkin Capital hear we

One, Two examine you scale, from you centers? the areas markets to exit about to apply such product that willingness questions. where and talked data lack does as

your renegotiating second my the in out looking Claro market TIM then might react similar to in Anything or conditions you kind terms lines you some And called Brazil? with of be Brazil. Vivo of where is or question to along relationship commercial

anything in Yes. particular. the exit we in lines. tower I that it's kind evaluate everything you do that first anything, centers it's are fit whether or that. company, to to plans product things with that look what various a what these things, else we I or we will of markets same through core the future and with your But to there's we're do financial data we the other lens specific can On to question, applying And synergies be, international grow no a ultimately, as it, at the lens exit our base tell opportunities mean, how are business.

conclusion analysis, grow that should exit that may it, but come to we also through go too. we As the that should we we something we conclusion may to come with it, the

a that had that agreements with Oi that about to XXXX a you this you would out. one into year, number associated extended consolidation, make if the the each at the but it actually churn stage, and way know TIM to we're we I other, year don't regard through Jon, So of other dealt ago we and into of an or to at last announced, issues it lens. With it's say recall, pulled that with we forward this but at premature assume holdings with a Brazil, our decision should time, some but agreement related consolidation, entered that of looking

In largely may And in have we're So for place there's with the with for what them best talking of be or something may about discussions them case but would to it nothing we're place, with currently we constantly us. something, but them. TIM. lead Claro, in already in not and

with Deo Del Nick And next, we'll MoffettNathanson. hear from

have other does you're market? on a to do you a you that framework sort How of path that position. is measure? think do Is in of threshold? positions. Or both going assets tend embracing, leadership start, general I better you to Or leadership into if enter that that position a define I on Brendan it? scale noted this you leadership it that consideration on you're position? or you to to mean new guess is markets some owned Congratulations a in where new-ish a separate mostly total share And meaningful less your Brendan, likely a to and Mark it's you're

When so your for scale operations, Yes. relevance means which in portfolio level you're generally basically needs, that your customers their immaterial size partner. that you your represent are terms and business to on and the to the the you market. at a It to frankly, not important network when your percentage the negotiate a larger, most meaningful market more additional is, as as great customers, of that of drive to in means is new just opportunities ability the

I what size the that's about So mean really I and when scale. talk

the As going new it relates go we consideration, what's be to markets, to obviously, market, that into in look new that market. our would like a before position

a mean not So it would of market, consider one doesn't that but the we're we as factors that factor about it. we thinking go would when new into

lease then 'XX going be And loaded. the said probably to to guiding $XX year, just domestic you're U.S., in and in was regarding Okay. you it this million front-end

of leasing might of you end million. you've below current a do year, being previously front-end in the I below to It in time for of full leasing where the to $XX of spoken a could the as is loaded, scenario guess pace seems of $XX see conditions? run rate go like year you million light the a $XX think around if annualize plausible I million. over second half range sort low

Obviously, could. it year. above this just $XX now we're for million yes, Well,

end the guidance possible. rate pickup implied to expect our $XX year half of we below the so be don't any the that's in second the So do year, if of we the slightly at would today get see that run million, I as that's

under though, some think, the agreement. lumpiness in things this I is of MLA come in AT&T way that our

a part could be well. little of So lower it's year see higher next the the the of in in the year year little something and fact first the that half second we a as

Bank of hear And Barden David America. from we'll with next,

last make on place, versus than stock they clear what's buybacks that existing stock that or on do portfolio that new Or fuse given should but hedge Is trigger rate? $X as $X ] a a acquisitions to acquisition if just comes opportunity, [ So one you March later? And is you of Brendan, 'XX, could at Mark I weren't for if happen kind due the there D. a the replaces specific your timetable use X% portfolio to on assuming for question, you the any that in that comparison the apologize, I the that first what if guess a to you've could could, guide the as on? I assuming This rather guess whether the be about bank interest a $X.XX it going there's powerful billion could, the these assuming I there an it put decisions you've second buybacks term in putting one, something locked basis we that billion cash? billion sooner the pretty a of in use what it guidance, is about a which to any I decision? to be additional for forward of in, on was pull I'm if hedge buybacks, you baseline chose, are one

do the possibility that. is to There

this the We what in represents past. is. debt have actual our This XX% of hedge outstanding done only

with we act to So of there respect an eye But the any no, We're appropriately to lines keep no could be there that as timetable. market room we if and those decide that's to need along our well. David, to is the going hedging that thing do. timetable, increase on type just

of move quite obviously, the like. took some there's around and what given really over to are instability, seen, level a in all look certainty months, cuts will of of was last mean, going it some rates interest I we've that David, we when created the happen, thinking half of sort expectations rate interest item, that And bit. On few Yes. that

it. debt it portion ensured certainty we we us, and a And basically a than for much So that today. some have that in would exists rate on lower locks of stability basically

a let into guidance, So we I it because goes there that's cash of good down the first we course, case. On on the questions, think be left part hedge paying cash that have outstanding revolver, will natural in if the on in can your our implied it other other of of obviously CapEx float, what's the that accumulated, that piece for invested well excess at that and guidance interest covers are that discretionary the rate. about covered Anything some spending so contract is in as items be builds, are basically our of new X% under deals as to discretionary assumed guidance. in a or is our use

then So think Obviously, complete our that. And control of guidance, income net M&A cash that buybacks. there's as over. over interest the we constantly some have that a interest of I M&A the versus timing. variety looking control don't we're things at. you And other question mean, buybacks on was transactions the much have in is your and implied I timing

to And some we so balance we have need. may may not capital the that we have that to and or degree, available

little as And if clear and hold have things in so other we what's going have And earlier, to bit out. play back a how can times, happen. sometimes we vision see we jump to to a

us. at and got a all hear against this what believe front stock of I So good is our that to level we balance we've buy you're the but different options saying, obviously in

Rollins Michael with from hear we'll Citi. next, And

I if questions, could. Two

the your you decision-making EBITDA, star are direction performance? an how in say, you metrics, guiding us AFFO what other per metrics can at over north growth to Is are next of measurement going us the forward, years? give update as let's important And give see the you as some organic you look the that you share or that of metrics First, that your X business and those Board? leasing, it and can are to

to an And an just bring touched to of on sites you think you and to capabilities? us can question as have upgraded mid-band separately, percent them over get what the portfolio, tower XXX%? you what just to update the period more then And of been XG give do operational

that we most report we we So the think because Mike, the on, numbers report typically important. they're on

here free #X with flow amount I returned to of some investors, that share because shareholders per our available and of and view cash Board, many in metric a that it be form be reinvested our is our effectively in think the frankly, the or is actual with day what's to or that represents everything be for. be been fashion. usage out into buybacks, after of dividend stock business available for the has whatever the is, or used as Whether paid end paid AFFO the at it's

so next that years, And to refinance is. that, to not that least over job said last some you of all. Having that Interest new. And But largely point, at an the because excellent rates, it some share what in we've most we of some focus of on are metric that's years per the have done many few the metric, locking AFFO very obviously, things debt. debt. low-cost there challenges is our are at the market two

there for you And real And so that have of that as the at we've that of weighs is on its we churn, to goal, frankly, of you're that an long-term out scoped is and see very the us, interest extended that that kind like. But that, of Sprint particular, what in a higher we This that to bit. outside number costs core. is time. ahead going to know business looks of period a little go is over a see business up course,

long-term contracts. We very have

are assets term. The term. long are relationships long Our

extended going number that at to how an we're we time. over look so maximize period of And

on that. And we're so number we'll gets X be to quarter. out But that period long XX take do is years. be we As positioned how public of well can scrutinized so it grow the nature single a term, to I challenging and over that company, because going to long-term think a you're view every reporting quarter, the of to business try it every

about where metrics but I as AFFO our well. find we're though other returns EBITDA, able is then in among that The are We're per to energy. And very site over your focus to upgrade growing continued terms revenue, the shows carriers. for a for really second our different important leasing percentage was I XG. share different is halfway question little of bit XG, adjusted but Obviously, on upgrades that operations, guess my the of sites most growing

below and further much along are are number. Some that others

So good runway. pretty we a still have

sites looking where next I to they've the to the to. at X think need upgraded get X to years we're all they

And next, Stanley. Morgan hear with from will Flannery we Simon

Congrats if new your reconnect Mark, Two, in and on I Brendan; luck your good great role. to new the could; on M&A. role, and first,

that perspective to you've M&A that past, great and paying. a back there to haven't be reflect better Obviously, environment. balance you new of your if the the get stock. interest you're come necessarily just you've multiples the transactions for done noted versus buying multiples growth rate see some own would the risk-reward the some in think I It in

with DISH FCC you specific think about to you could anything secondly, And some share in within assumptions, your how on and us have they leasing targets mid-'XX? especially DISH given and hit DOJ

limited market bid. competitive. because Yes, a quite the of U.S., competitively the there's assets available, such is they're In number in particular, M&A still very

high. also So points Internationally, is to true. that that price see we continue are very

buyers sort deals and where many being done are seller getting But willing terms not in more points. little prices in that thing lower disconnect would resulted capital of it's done are necessarily seen I a at is of all the about but, with between we've the of price a deals not in interesting increasing where to Although expectations cost what frankly, where pay. moderation say is at there's international cases

leasing of of environment I case over of a certainly that they think of the particularly for the yes, growth you'll them, obligations and to the that attacking remains are be component deadlines interest had year, some this if rate and do ongoing we shift have our that the year. those coming with we've you conversations the assumptions elevated. In DISH, mentioned, our believe start will see they for They aggressively. course

relatively total. amount a do associated percentage I we say of the our in it's would But model with small DISH. growth So have some of

from will And next, we Bank. hear Deutsche Niknam with Matt

two-parter. a Just

markets? developed pivot all that Is First, review? at of guess, of this there sort strategic a and pullback more towards portfolio the Brendan, from, is on more markets anything the review, emerging a underpinning the I

on any just a terms And region? share? color provide Or other note, XQ on acquired you any color sites were that can of then additional XXX to you maybe subsequent could the related in

all Sure. point. first. at I'll closed XXX one aren't take this The the second necessarily

closed, I that existing those contract at in but And U.S., this markets, in. the about different located of countries remaining XX% point. are just our we're a dozen under already think throughout XX% are few are a most in half are the

a factor. markets. a thinking case In focus we're can we on developed, about in markets position strategic it's not although the of necessarily the our emerging It's be review, maximize those the how way versus that

we positions with very emerging of So relationships strength strongest in have markets those the because carriers and our existing are the in strong our role markets. that of

it, And so developed would I were then in with regardless necessarily places if where have whether we or we think can markets. we markets the don't enhance emerging that be comfortable they of

the attractive share, right market However, we that if I siding, do balance the things is at can have that that long-term, when expectation both market the things a because it, aspects like at would of to of of this would day, stable people would like going strength to find their tower the offer very strong the we relative value you stability think valuable regime, that sort regimes, developed over that in the flow stability of currency, regulatory a Things of is grow proposition certainly steadily opportunities. of time. tower wireless end find most cash the a and of we stream tax carriers the be company, markets find look quality some

in if of sometimes introduce that flow obviously move places a be try we of cash would on certain to that amount I of can mentioned, to some you attributes that have looking just of growing kind out the focus stream. volatility those don't stable, and And you're mix more

think So in I open think looking the of to that the have but I to at. that's markets in type and our we're positioning what shift market, opportunities we're we're improve

to the review? attached frame time strategic a there Is

that throughout outside to but that That we something I control, of working there the expect would things are that like figure are exist. actually It's take some time opportunities on factors may would year, to out also to this whether our us do. be

it effort. ongoing So will I an be think

shifted. and has of not and a something It's this more some doing is SBA isn't that This real taken. kind like of we before point But that. reiterate completely the wholesale we change, just were the -- of refinement way one to approach totally historically

have on on that digging we're root is, looking current of is of our causes a know you really focused at bit things are we and still and little underperforming, All some think in always deeper holdings we I us, can adjust." we fix those we quality, look we financial has the are what returns. been policy. really where can what feel same. kind this again, the then of necessarily And to it's do a refinement long-standing address like and it say, it, that. what we don't "Hey, we'll this So of so would can just think we Argentina at our if don't address What

Richard with Choe we'll next, And from JPMorgan. hear

coming then of the of how wanted I pacing of change is year. you the significant do it the through about any And question amendments? to year? just the another new services terms ask colocation And much expect activity, from through revenue versus in

Yes. our balanced year. The expect relatively to actually, increase slightly services we be in but the revenue, it outlook, throughout to

the amendment about of of share what On the I be colos new if would versus shift lion's do. know more fourth I as this you're leases. into don't you'll year, the we we've get asking where the expect a quarter amendments, activity again of we But actuals see towards seen

the would of terms final been in to it? have and one quantify a impact And Argentina, had you can is revenue kept you what EBITDA

on a $X.X little over revenue of of $X Yes. annual million, about million basis. $X and It about million, an EBITDA represented

Elias And from TD next, hear we'll Michael with Cowen.

you then is, the doing, that for reinvested mentioning we essentially of carriers at of question curious That's AT&T. you the side, X%. in holistic prepared on have earlier say, talked were that I'm MLAs the is, assume first question use remarks more cash, U.S. first about with you're to the let's you results, open the the that question. And you my second if about you with mentioned mean has around when stability My should to you the remainder take

your a X%. stock, over take of it's look AFFO the implying I when So yield at

some the more the about you're guess expectation are you buyback more You if what see in go back versus that to is, some do you're you to opportunities. the earlier of and I on M&A. here buybacks hold going what I'm holding under getting how color thinking on talked you at get back forward may terms the trying M&A? Just

ensure obviously talk our with trying others goal improving customer that streams is and of master flow have and a stabilized part holistic you we cash MLAs, of agreements. relationships. past in So We've I we with be our through through about in We of along AT&T enhancing signed signed last think one on way. ways that to the when the results, year. And each can one that done customers the do

customer determined what of those continue So of certainty and I on the that of we to we need for customers certain be those achieve amount each done expect would length a basis it's based structure that, of the But best of need. make will get to is SBA use on our able what assuming to and part individual the and as will agreements. needs commitment of an

saying not spend this buybacks. got on M&A, Again, we've yes, mean, here sitting we're flow to I all the buybacks versus ready necessarily cash

we our out In revolver. fact, have still on balances

feel been I don't we've So like necessarily in position. that

be that very of I would size, back particularly otherwise it our when stock individual acquisition would we timing our on we as may to been an buybacks. historically case investment. have if attractive share to the saw now. expect But around influence opportunities, opportunistic buy We continue

as as considering. that's good It other there you goes factors means we by. because But be that don't we're us So are, stock we'll see buy see where value. mean we doesn't necessarily our it and a time just may back don't see

Lynch we'll hear from Barclays. with Next, Brendan

It's been different signings to what sign of can million you guidance lap-over itself? is to the in ways in a you the what about relates little versus put in in asked talk a that bit to leasing $XX XXXX XXXX maybe a need term, but few it of kind effective assumed domestic

been with exactly follow I'm here, can on to of based Yes. X/X date. you. sitting signed number, up range more. maybe even sure but what's but with tell already can't up I it's the precision I'm the you It is in somewhere sure largely we

up follow Brendan, we'll with So separately that. on you,

It throughout churn year. tick seem you you're fourth did some on talk expecting bit, helpful. other That's to about know quarter. next a And some then American give some And could Okay. Maybe international anticipate in churn. the Latin one on you up there. little color I in were question you what markets. the bit what a seeing

Yes.

over carriers the prepared had my place, have in we So I in comments, in associated them big it as factor. And item. year, each represented kind to of years. we're that negotiations working as churn through was was that long-term one as we be few some That consolidations where But kind itself where Oi we international wireless pricing long-term with of a a we're this of commitment that, we're with our are the relationship, number level the next continued It do probably of briefly driver that that by there customers. in taking you customers consolidation where of allow stability that's taking market. the roughly X consolidation particular, a in going but can big the we as to mentioned Brazil is but they relationship got achieve into work other Last there we've with of markets efficiencies of through need It just result of a from the place that. TIM, the reintroduce get to through that XX%. combination

just mix, most biggest probably the biggest it's because So it's the the have revenue. will market we be Brazil but with a

LightShed. from hear Walter we'll with Piecyk next, And

you that one. that? with guess Movil I an customers, be quick to discussions think Do regulatory your for there would is a there with ownership In towers? those opportunity with those maybe issues just follow-on of take some

answer forum, fit we this can't all do, different them about they that conversations that Walt. do, do that probably with might I together. But in Yes, that ongoing things we have

terms of coincidental? history, in of your opportunities you to go would sheet kind pain threshold is you through there? where the Oi balance maxed PG&E take is look like you Just looking at then back exist something X.X, and for that of the and Or out that that you at

pretty don't ever Well, really now big cushion that Xx so any number at think don't go leverage to above in that history. has given a I coincidental, down But I you'd probably where we approach. see that being it's foresee point got our we've come our a some degree. us to,

gives it's makes touchy-feely a that which a Well, there's question, just then capital us Okay. And kind ebb when of opposed confidence lot that and small consider. the be sense that can to than flow. domestically. spectrum, it which flow, it going is, where markets can kind cycles you turns to and when different I'm to have satisfied things of these past just be size required? of of with ebb a rooftops in lastly, only operators is you little this of not gives talking areas an a What as traditional where densification cells

Forget about your global markets.

to we've were seen out, with. plays centers urban gives tower I activity, to Well, cycle begin confidence, is what Those dense really see how rural markets, suburban really it's Yes. never the history. every me mean, it we'll ultimately of I but gotten markets. time the mean, markets the

not for resolved Anything factor that's tower rooftops, us. market. been it's with a very a really limited that's So getting

So not matters much us. to sure that I'm it

say, the depth TMS, are call jumps like, C-band identification. from Verizon, let's whatever, factors enough they the have that and in they So not penetration enough that is it, there not hit? additional serve, that onboard, require that Sprint that maybe of hit penetration spectrum Or XX% suburbia spectrum but you they let's could to you, would AT&T

Sure.

we will from with Green Street. next Guarino And hear David

there's on think the expect U.S. activity 'XX of 'XX, what again? as Or in model level over levels in in years? 'XX new chance new that is might and saw this few expected leasing the out we run should you do reach the new with next million Sticking a we the rate we leasing $XX-ish

spend could on question that what comment pretty It it was, up just from like stepped And 'XX? you 'XX, second discretionary then the the CapEx increase? looked for meaningfully drove

ago, the mean up, X level leasing go by at see, that back go you think will over we So we future, driven to are you carrier years, years all we the yes, activity. now. sure. it's few if into back I level could where were if a last go it very Obviously, the similar you a David,

I a number year, our what, million we just X, than $XX reported in put we this for outlook that ago. In lower fact, years X think the

the making So than to feel that capital there. that up to since carrier they impactful some spiked they're degree, it the strain that much higher time, because may very network think of the activity. of obviously, I is And and decisions cost

see And we so yes, we believe there's to number go future need years, that how but definitely to in moves. opportunity the see higher

I'm sorry, your other question was on CapEx?

Discretionary CapEx.

last we believe million to to year's similar was. guided what at the what to I where $XXX million. was Yes. guided was $XXX number it midpoint. we Yes, last in the And year,

question? the of So core what's the David, sorry,

flat, have No, question. it's misread my you apologies, disregard must that the If can wrong. I

All right. thanks. Okay.

UBS. Levi hear with Batya next, from And we'll

couple follow-ups. a Just of

recently that upside. contract MLA included within color the you with Or current AT&T have will Can signed provide FirstNet. First, some them? a new be you if with provide

just And one M&A. on another

versus carrier-owned you of about that have tower for increasing coming As operators? out towers your preference think do independent are you a portfolio, portfolios

I actually to would most tower expected agreements the The more where to possibly part, expect, have opportunity would there, to existing new upgrade builds. that With needed densify or on lease upside set amendment based for standpoint. or have a limited sites from understanding of be need is based would for an even Sure. to my AT&T/FirstNet, everything on at they happen new regards it us that

extent it's to said carrier are is find amendment impact, with maintained kind do expertise what they there's for carrier-owned sale operations. done but traditional that towers what regards opposed a to potential and us. With mindset table I of But speaking, developed to that and leasing improve than you find an both we would of new colocation been the with those And in an I of way say our we towers. us I question, generally typically prefer better leaseback. allows deals. that kinds think is there a think impact to to we not company opportunity really much that, as they've having we've the independent So the the would M&A site already a Usually, in is there, operated bring that of

when as well. that things there's been Sometimes for opportunity improvement buy you greater quite run haven't

opportunity. I just So depends it on the guess individual

And we time. this questions have no further at

reporting Well, you, next the everybody, for forward great. you Thank taking time, look we to and to quarter.

for conclude your conference participation. And that does Thank today. you for our

disconnect. now may You