Crown Castle (CCI) 21 Jul 222022 Q2 Earnings call transcript

Good day, and welcome to the Crown Castle Q2 2022 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Ben Lowe. Please go ahead, sir.

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

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

financial in today's supplemental discussions In call the measures that, Investors financial the of available includes to measures. turn me in With of call at information crowncastle.com. non-GAAP over website the Jay. the these let company's package addition, certain are section non-GAAP Tables reconciling

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

As strength of second you the out. market to continues year US quarter updated stand full saw results the outlook, and from our

seeing growth the business the we XG. initiatives first activity leasing the believe of environment organic their of in operating the higher our of tower half remainder of customers' our We are we growth a support performance with as X% resulting drove beginning it's the relative year, This through will in at the continue deployment expectations benefits And meaningfully result, our revenue strong as which year. of the in a to year.

put XG small X,XXX from the next to nodes, rate our year to demand year the meet to cells cell on customers expect small this the deployments we addition, as scale. require double air In we at networks expect to growing compared of

to portfolio towers, to X%. Crown US target financial in and and generate risk. my long-term so for under dividend Dan will best achieve we the assets on I'll the that investing our I of XX,XXX annual further our it our on the highest dividend growth. returns XXX,XXX strategy have believe wireless route ownership, X% infrastructure in on cells considering outlook, by updated growth positioned or Castle are per the and and shareholders XX,XXX markets deliver To discuss our concentrated that in to the of a top contract growing small represents the air will share focus both because and risk-adjusted solely future focused US growth unmatched miles results market world for Looking out, end, believe we when fiber our of discussion strategy

As Castle Crown the market, Inc., focus our better you in International our US we strategic the changing CCI. remain will ticker reflect Crown company saw are while Corp. on our name to to release, Castle, from

demand X, As the can the in of see days you strong early Slide infrastructure the our drivers wireless investment for have US. the been on since network

mobile by of We over required growth network have investment persistent billions has time of hundreds customers. in data dollars our benefited that from of

$XXX billion approximately eight wireless XG services the voice over nationwide. invested mid-XXs, wireless to the in years During operators deployments enable

than handset and consumes cycle the investment which mobile Internet basic XG, rapidly technology network As more of browsing development improved, gave nationwide way significantly to enabled data voice that that services. legacy

thousands order in are that for. with spectrum virtuous approximately and The to on deploy billion, existing of increasing growth Over cycle keep cells, and pace demand $XXX willing innovation, our new with data. to in data US years for mobile add the continued to allowing investment technology capacity, the pay cell the customers needed to network so, sites substantial both deploy consumers operators the eight to invested to next wireless network or new meet mobile

XG e-commerce another that demand. video, Over sites possible step times development simply mobile to step innovation factor nationwide new period. decade billion mobile to that media data-rich social a including fast mobile networks, by XX function wireless is approximately which entered increased from in of how data change to their we This As in delivered drove and XG XXXX, and were led devices. data applications change platforms, that invested demand operators XG data cell not network that began a deploying mobile of develop cases and during with $XXX in same the decade, a operators transferred wireless use

generated more wireless they to have pay operators As devices In turn, generate invested consistently infrastructure their cash us solution enabled quality customers growth of enabled user various in the willing macroeconomic US we this have improving and for and the of shared has cycle their to the more, investment, and the a networks result cycles. experience used been consumers this continues. and and that the mobile taken the to have combination network flows even the growth their a The in data providing value of US and our wireless customers by from more by able low-cost level and persistent through experience. mobile of deliver

generational upgrade can XX,XXX four, towers. XG sustained add record drive new sites growth business, tower a long upgrades, has see business slide of on to delivering existing in economic we of and growth and customers expect Similar our to periods cell track contraction. our As our expansion network sites US to as past through you our

will will keep We and at mobile growth capacity of the the sufficient scale as across also in increase network, it deployed to with XG different be small as demand. believe the data macro more deployment spectrum of up cells wireless density to be require will towers not existing

put today. in requirement X% mind, runway than US invested of concentrated investment the of have cells markets. contracted believe began time, more will and further out is we To and yield, those assets to put yielding the cell backlog, our fiber acquired this at in and more on colocation exceed result extending network, to small the duration billion $XX we approximately in XX we this magnitude are than small capital record view this cells small XG air. nodes cycles, expect of including we a XX,XXX increase yield that nodes, capital that in of built high-capacity as more our the top number And than of build across with a years ago could denser we That With when As multiple prior growth. in tower customers. likely we X% our perspective, share investment over

visibility meaningful activity investments have customers segment growth. support we proven we of additional to two capital leased we progressing, for a yield proposition out with assets assets generate capacity with our markets. now invested updated tower value and returns As additional five specific those up provide how over of into outlining the on have time, have To the our each fiber our years, for and last investors provided the are analysis the XX.X%,

the assets, have additional to both are has generate largely year-over-year. collective our with The solid beginning these a-third yields co-locate point, and our long-term five business, strong with markets small -- To XXXX, on returns. over the to fiber consistent of the we opportunity. growth cells seeing to demonstrate also existing of as Across been expand investing view growth and returns, on new small performance at consistent we that markets year Looking returns returns, solid nodes contributed while how assets are fiber on that build the about entire are over have solutions across since cell the of targets the year that deployed scale performed have last co-location with we five, capital have that co-located with at our the we communicated. overall fiber from customers these slide ability fiber

build-out business. to to underlying The exposure will believe the overall provide our basis with yield future. market, reduce Castle out return highlights growth X%, nearly associated the decisions strategy current and history the growth invested points is at provider Since compound excellent into development $X.X X% cells to investors lowest US returns extend I X.X% X.X%. to by that to of that that support into through dividend made the differentiated a trends attractive annual the offering increased of X% to will I of and development a the of infrastructure comprehensive future time. pure-play visibility exposure XXX have When growth. dividend with and our our anticipated investing in the dividend risk steady believe growth our performing. US the billion long-term and Crown capital compelling Looking with we towers, believe that return at growth best how our demand have fiber, we the of provides durability while that most new well an assets and the strategy of networks of that and also growth rate we we significant future a compelling of will compelling assets approximately target with of a for our I XG increased annual We $X billion shareholders investment consider as is. next-generation execution, on capital believe over a wireless contribute per in runway strategy generate of combination how has to our the we consolidated our risks with share our stands and XXXX, see deliberate attractive total the Returned small

one up, our other wrap new and released that also want part to I did a launched environmental, to announcement website timely provide we ESG to we draw made and our as We a of XXXX disclosures. your attention effort social accessible and Before governance report yesterday. I ESG

resources. With supporting of the inherently infrastructure limiting our vital solution while sustainable. shared is natural that minimizing business to use of and the Our economy, is our infrastructure proliferation connectivity

diverse goals And on and we be to emissions Scope improving carbon addressable diverse increase you We over operate continue with communities hope to and X and community an to we the the I'll the with the turn spend Castle these by build We Dan. call that, specific Crown suppliers committed impact further disclosures helpful. in meaningfully have XXXX. find neutral to new are at XXXX our website by in and with inclusive and X which

good and morning, everyone. Thanks,

As to expectations discussing operating in expectations, for Jay deployments us. line and are with were want for environment the discussed, our quarter updated strong growth year XXXX. year create for our XG second Results I a to another by start full so continue of solid driving

page to X. Turning

Our tower outlook by adjusted the remains business continue contribution site the EBITDA adjusted $XX increase AFFO from to outlook the for million $XX The as a unchanged high to rental services levels of reflects consistently million. we and activity. increased while in on XXXX we increase capitalize our for EBITDA revenues expected

$XX in the outlook of CapEx $XX in possible. business to reflects as few for full expense taxes rate increase million expectations XXXX year our $XX our also our updating sustaining flow the million significant strong to to forward operating addition months the by rates focus for the we an as due not billion in higher year we $X.X have through do reduced on cash interest performance, as AFFO we positives efficiently In AFFO increase -- on interest experienced last incorporates These now million. growth operating This over and the and of curve debt. increase expected floating additional

As I'd AFFO management. of increasingly balance like our remains outlook sheet allocation and environments, to changes, rate and In capital a our review of uncertain macroeconomic approach unchanged. to light result these the

dividend tied allocation capital cash quarterly growth by with our to our of the the return Our to flow generated through free growth first future and flows. dividend future shareholders cash to business majority priority a is

these investing our opportunities, nature based profile. credit that to priority assets our underwrite manner we with growth, our we're second of investments the capital long-term to rates expected assessment an and with underwriting consistent fund investment align assets in standards of and our the future we invest on external investment-grade meet a cost generate discretionary maintaining When those Our hurdle of capital in with set is long-term in. we

that over happened that in the contemplate underwriting witnessed years a Our of but we've a we increase versus to rates environment assumptions over the happen this a a long-term months. rate, matter approximates move few rate expected year average interest

capital. consistently does As at said which near-term current continue our investors, not result, discussed will those have impact normalized long-term our exceed of with present pursue significantly some to rate believe capital a with environment our returns cost have pace desire the we rates investments of or we that, challenges. the will since return the to Having cost profiles

with expense, see the in our can when interest increase XXXX established last As to you $XX for compared outlook the October. million we outlook

our assets dividends in Our through is shareholders to new capital last after if we excess investing return capital that allocation have to capital paying share priority, our and repurchases.

weighted EBITDA Turning quarter times limited our debt balance remaining, adjusted second X.X years with of and We and debt sheet. approximately XXXX. fixed term through to very ended currently nine to have to tied a position the rates the of in good XX% average maturities

to We believe the we with July we our ensuring have capacity sufficient goal billion, continue near-term expenditures. in liquidity. leaving we discretionary accomplished increase amending of available liquidity revolver to billion debt credit us Additionally, that $X facility capital and to by nearly fund maturities on to focus meet $X early our have

data XG. assets our solutions networks future call will XG So to about to And share. We wireless build target we -- to annual best have shared densification scale generation offering as and our dividend are of growth believe meet wrap that, With we're customers all like fiber, the new to sufficient next to across set communications which on towers, we growth open per growth to by we're the us at our up, take to to to and X% comprehensive market dividends demand demand long-term networks questions. wireless I'd spurred per sorry, in of deploy required the across the excited Paula, seeing infrastructure infrastructure share necessary advantage believe X% cells the for our of in invest ownership. growth annual of deliver small capital allow

David Thank America. first question Instructions] of you. We'll with our [Operator Bank take from Barden

could. couple, taking Hey I guys. for if questions. Thanks much guess so the I a

reading But having be this maybe thing maybe into about revolver or the maybe step-up as as new Jay potential acquire in we to this big environment, should opportunities your for view portfolios something disclosures First, rate to And you're the increasing obviously, of capacity, obviously, the then, us is Dan, just for cash the put other door going Is we accounting annually? some that, growth be, about thinking new reason capacity question the that fall the guess X% is about wanted give And you prepaid in Thank we've now? the potential of now on you so last on new also rate wisdom presumably, because it's through dividend that rents, amortization around that of your since to the rents, kind your of debt should maintaining outlook coming would we just is you. is something and that think kind falling could how I thoughts been to of much prepaid informing the talking piece amortization XX% time. I about falling. of X% the sellers? shared why pressure variable available? second guess,

revolver, as Thanks. Good really assets there's in of here that first the likely we of be we're speak been last view majority We've build. let assets will will result question, a around fiber the two own consistent second our over the seeing the vast about morning. the over years. the I'll particularly on I'll assets that On to take we front. that your additional of time Dan several of the and no, read-through terms question questions. acquisition what no first

don't we meet acquire criteria to assess As dense see landscape, the an will that fiber the assets footprints be used small urban that of we at for high-capacity cells. with opportunity scale

over maturities years So, upcoming think more as to as the that balance and any more, come we gives about is sheet as navigating increase CapEx in. spoke in Dan some through flexibility the us funding revolver management well debt as may

through the side. So, acquisition there no read on

next Hey I'll take Dave. the two,

We debt have consequence item having shorter to believe ability much we our that seen with or increases in on outlook, the have we strike rate last and expense The interest interest that line to do at XX% can certainty interest have as between period. debt. take I -- the of the understand fastest variable has comes of balance always that first us and that the There's a how debt. we've the the which, try the think withstand ability than we XX% having And debt this a debt. is long-term increased of the in short-term around And believe variable balance most of been the in or take of in rate years. less expensive XXXX in strike good range of get to seen that capital cost we increase lower that where XX advantage we of the advantage is which rate as XXXX rates of

So, even in withstand to our and that AFFO still period, able XX% we outlook. were having debt maintain

On was as and at down, fixed does your our debt. question impact we're thing a we So this said amortization balance you prepaid think last of variable goes that the prepaid dividend I good in growth? rent between think to that rent sized that period. amortization, of the we last increase because The prepaid answer on dividend about. I amortization And cash rent talking based believe our cash flow so the business the in we're don't period is that question doesn't generation that flow in point

is. of the supplement are we to that or which to receiving. within that investors we amortization it we, clean reflect industry how over that exactly economics show gives Castle, wanted time. the trade we tables into opportunity So and step capital And economic can we're our revenue it time, coming like make the best have portion true definition AFFO supplement. we accounting want the make prepaid that is And is reimbursement in to time But still sure at amortization even I is that our as to And rent five that do amortization we are that a whatever see in-period back it's of just rent the one we AFFO. just life calculation, over at within as to we customers. that the them. everybody way what we, it that's capital, give trade new and the what as the because why and I around When customers down customers of is understands to grow in have therefore, and talk added even believe to X% that benefit, look could an decision prepaid on the true we judge our assets, include that the to what you economic That amortize want out, some hope to about rise we've modification was we that see to next to rent that amortization, if we our for And But that X%, going schedule try our the to which for information is that, assets there's course our to trade ability have the of prepaid gives will economic capital for deferred in-period remaining driving years, that over that can received know paying to and our as form over amortization rent a an amortization. we reimbursed to we decided of overall, existing are you financial amortization, way isn't is of to and contract. But wanted happening other, we and reflected figured prepaid be gave take statements. rise building assets both rent what is put much a important Crown of us. more of that the make a or however, prepaid But get in it amortization to that assets our from in where the getting in the

Dan. Thanks,

Sure.

we'll Morgan Flannery And Stanley. to with moving on go Simon

I of to Good much. couple AT&T a the just with call. things very from you wanted Thank morning. earnings follow-up

XG They by this million had thing they first build. six said was at mid-band year, they schedule. with of their that, are POPs of the mid-part ahead pulled now covered forward XX The months

still question We're of plateauing we around this the that year. cycle? of accelerating? peaking where my is of carriers some Are sort just build-out seeing we So kind this XG with CapEx now are in mid-band

of on for business, – Again, the how you color to turning on, business revenue traditional would on looking coming side, there about should disclosure that wireline how streams again. although then the I to. So the But over fiber? some your less going the the that about that fiber lot small enterprise you've What's do the legacy of be was warning any And cells. great. think AT&T you're exposed talked Thanks was pressures, a see quarters?

Good morning, questions. Thanks Simon. for the

Good morning.

-- customers, be. the and year. XG we should and at think of to don't I giving this broadly, comments, side into is a across and where industry to long generations. the I this question, what's highest wouldn't equipment first by of I the say, one has of for business, acceleration of deployment least of already the acceleration activity we the trying customers. a as to have proven continue -- And for comments capable the seen very that's a XG, it's, for of as period my the made the those we're period we growth long increased balance when in CapEx what XG of similar comments, XG on we've the runway be see that in XG for But activity, difficult cycles, you the something been in around I largely that there's to XG, has we our that across to, time. think, in capital I is -- I from to I large spent my activity at for XG. guidance going we're XG, amount capturing on we'll through of to we've going that's expect out a has on of sites the past see prior across speak a years And of scratched the time, on our think frankly, carriers. look that all thing On of what of years that I as whole that's over amount think total multi-year alluded very mentioned XG Each and in think as now tower And come. just think, play specifically what already get period I the of build-outs look to I to any been middle a which continues or opportunity driven long they long been the our What I And to were XXXX alluded XG time. co-located they're surface of very over pick happening you But like. tower -- see to want of a very over on for there us

on think increase acceleration the amount and part cells cell tower into that that's that. air. carriers small X,XXX need of do the to. the to So side, started as I network densify nodes to side it as of they small bleeds as have we talked the their seeing really we're expect and This next And year, do on year, as about And XX,XXX air. we we'll on a obviously focus

the don't feel towards about and certainly So mean of going growth we're the of the like is coming excited to really end XG. what build-out

fiber we're question really second seeing this enterprise enterprise around expect we X% line in change On the and to grow the there. top for what any year haven't fiber seen about the business,

of You the are institutions, that our businesses very susceptible been very direct care business we And I do really mentioned and in comment, services medium enterprises, economic echo historically. majority to little consumers. small provide cycles we vast The that this of do health and your movements government has not to to would nothing large which to in vast, universities.

fiber haven't seen the volatility economic don't businesses kind historically and see we cycles. volatility just that see So through of many

not our the So economic I of seeing view this expect conditions about to year. really impact X% would current growth

lot. a Thanks Great.

You bet.

Feldman we'll Sachs. Brett with to And Goldman next, go

the was I already towers just some hoping of question. on sites towers. spectrum that I nature I insight your can taking is on Thanks maybe majority you deploying And activity the carriers they like the the where recently mean terms of would your assume leasing was of give colocate. large for in us your acquired mid-band guessing, I on leasing is, the what if

a their if maybe that's then I'm what's curious complete frequency. or they case, sites actually of on driving bit at they so a misunderstand that operate, this guess, whenever a putting leasing? much And the already I we process do but of is higher the know And it's obviously mid-band

more that they're so do they don't have on, densify. on And Do amendments, have putting you more or by to may going have lead equipment be that, could to any presumably, going insights are you. visibility think, project? that they're thinking it currently a appreciated. Any you of be look look cell you small to to Thank it about to I equipment so towers would

morning the Brett, spectrum lot years we are has is Yes, their the the about the increase your to question. question thanks added cost-effective good a way carriers Yeah, for of to for seeing and existing capacity being inside most to for sites. That of been network.

spectrum under from contracts them, with negotiated across of they -- extent that So benefit to we've and obviously, And the the the acquired the they deploying that used sites. and have the they're of the that they have we Obviously, with case haven't we're have using engaged -- that of get spectrum revenues is of increasing in work. doing that. the customer in get brand nationwide who deploying a infrastructure. We and the -- associated actively benefit Dish, network the other nature new another

that's So as well. happening

So I sites activity. spectrum as the of of wouldn't upgrades, as limit existing new been densification activity. is macro additional traffic the of going it generational this although Typically, layer solely kind to a is past second driver comes that with case a on increases, sites, from has the that

of But adding sites frankly, on and they're have is most on already. the sites activity So that. they're additional co-located already where of some those we equipment to

to that calls T-Mobile of where together Verizon really some of going the talked that there is them. network raised, come believe the we both will in to these that's macro activity that sites. other on their and any we Most have the densification more cannot those of on see with question that broadly, in And They going out portion accomplished nowhere markets cells. with activity. we is densify so small large areas, that urban consistent from top across But use the in. a be can't closer be received extensively see network happens that cells be that doing densification, we've additional you build big they be about towers filled cells. of of would the and small And dense And the that underway large from traffic across in and there's and they're be situations, bulk in particularly part commitments So and small we significant. to will the the that as need the US, densification with in the densification

The these being and infrastructure again densify XX So of is spectrum their reuse small years. again to assets opportunity own it's worked that model provide for for by equipment to small are shared the carriers we're which more how over cells seeing ability that core has play deploy the capacity users, the working deployed, cells. the consumed the and to which areas, the shared and smaller we to drives on in that at that network, network gets

activity. time networks the good things over period long So densify beyond those XG initial as of portends the

Okay. Thank you.

James. next, Ric hear Prentiss from we'll And with Raymond

morning everyone. Good Thanks.

Good morning, Ric.

prepaid removing I've rent disclosure. the advocate from AFFO. amortization been on a for thanks First, big

a understand on at exhibit. to you'll But couple I thinking you frames? assumptions appreciate this maybe receive of is really year, what to time guys maybe one fund want clearly, of What are those that's help the kind I receive you'll us customers just come for back to out underlying kind great prepaid Because rent to think the rent your when David's were you I of $XXX million. So underlying laying over questions. want what pay thing what prepaid you assumption capital.

the you activity amount all times. be we both It much pointed amount of to as at million. is they of are we capital spend, And therefore, customers $XXX our out, negotiations and see and we we the prepaid ongoing right. going receive is will the foot dictated have how rent those by are and that of That discussions with that the that

that specific see that forecast at So, XXXX. we would then the nothing different there's would significantly say, I can we there's to point. than million $XXX point this that it on also not can in be But give a

Okay.

question, year. X,XXX or know with thought XX,XXX X,XXX you you gross number? Second that maybe year thing? one come Is appreciate this emphasizing the was T-Mobile that guys would year, next next there off net at on I point, Sprint a nodes I nodes have air, here a

That's we number. this small churn million to build XXXX. to think did that small that Sprint that ability next majority mention the year expect $XX of year That's in T-Mobile They of going a have to we're did cells. we about remove you're and earlier happen year. our this will see transaction cells. some the the And gross number right, we when We in

into number there. net and get we year, as be will we than as giving go from get the lower we'll So, for then as guidance that the year next the And obviously, we XX,XXX. into numbers, update

small as cells Makes in as And far as many far to you third far sense. any how outsourcing self-performing outsourcing as change trends you carriers us can update air as And versus parties? nodes doing have the are on how it now? much as

north now. air, of On Yes. we're XX,XXX

so, And X,XXX I full year put on this year, mentioned. for track total the as air to on

the there, costs. because There the see will And on people of to there to developed build was either co-location dynamic. third-party conversations, we seeing sufficient than was carriers thing for because -- capital themselves, The cost assets. where continuing broadly extent as effective. cover or assets it would towers. build don't we as the the a build saw not play own carriers and can consistent and that opportunity for towers cells. third-party that capital much shared exactly not there's about it are the terms to a returns shared most our are tower think would to and we to the each to to was was rather shared that's work the choose of are that owner, are the infrastructure there activity is significant lower at play To solution is a out things the in business that where cost carrier those out. solution One small that, existing a to I with is also more places result own dynamic second there places same cost-effective the with their the in and are way that it also model thought much mention the cost willing beat use, most In two put that a than so towers that co-located their capital way our I we're playing timely solution, the the up and there same put that's opportunity are are where this, cost-effective drive there thing They deployment we of owner

the the view, least it economic are opportunity model. at shared will an we're -- choosing ultimately, economic to deploy there capital and United in States put infrastructure not themselves not our because not a in places where there an there's to So, carriers build

like dense So, well the in of capture shared third-party up be US, urban I We think end large the and will we're most in certainly, that's – to part activity infrastructure. very positioned will feel in the on that true. markets

markets, out to urban deploy moves capital But see well, it then capital. own not their study for it beyond those makes carriers we'll to us the use or carefully sense deploy markets. continue some to dense As we'll whether

well. Stay it. Appreciate

Thank you.

And moving Atkin go to with Jon we'll on, RBC.

much. very Thanks

around deployment, coming you're to And cities this segment. yourself categories. getting there's expanded? the minor within in that interested macro of a other other see secondly, impacts as bit small little seeing you and then versus a talked the league And think that was various enterprise you of solutions on? And any just any Fiber color those breakdown about prospective financial drivers Fiber kind any there's kind mix I of more major where on of you education, you and on then call out services, And trends year? So cell Fiber see about --

Sure. Thanks, would out. trend Jon. that really I question, there's morning. your call Good first lines On no

very have economic As the stable through been doing, I large we're financial it's cycles. that government, of most for enterprises, those universities, relatively whether activity institutions, mentioned,

starts opportunities. be densest populations shine to the one business. the I is, any X% it. this growth obviously, the of kind continue I spent minor I wouldn't and the think we've operators. for to convergence as to to about those across that's for is majority call as that of traffic And are, bulk us would probably that that. mix as capital and and on think to deployed terms uses of business beyond think out the grow in true, really call will And continued wireless in in this that top of in as I so relatively out the We beneficial, a XG, about that people where the And wireless the the we'll relatively start between opportunity would new some On XX your XX big tenants of is US. that in the four more trends think a thing be that there's front. on been of people in we around That's market where between in has wireline markets -- what think are business years major side to year those various we'll XG the second mean we activity potential ways the the develops to league The been And some I and deploy segments and has about we're traditionally to we market that similar. of more company are and that there's operate capture business that think changing And and outside be opportunities we think able come of towards spectrum seeing in CapEx data markets. wireless occurring. created where where as really and the opportunities the have date, being question in

and And handling in data those out top densification cell most it deploying interest or the is Once for needed to continuing the around occur disparate outcomes in those small kind not the capital whether XX around in those markets and to networks. in in markets. focus those growth and building of XX the sense of markets, the beyond deployments. market investment there's gets And makes cell our traffic small really so dynamics that's for

years, several see going So spending can in we're top be I next think the capital in the as think as the focused far I mostly we to markets. on

And but on to factors can how around a But I'm the into provisioning of in how revenues? backlog sort with of what You haven't the carrier that pace there's light green when maybe factors other change small interested the the continue your that gives of use conversion behind is just cells the process and maybe of conversion X,XXX the kind ability much talked converting XX,XXX, point to and then the within versus I or dictated are around put going own backlog to that about finer of forward? that that identified. Thanks. pace to

municipality an our of put customers agree And air once between to the through long characteristics. the they're and impact correctly the are long is the put be those sites the One small on and which and the Jon, identification deploy That's to the which exactly has utility we has wanting nodes line on you've located. receiving air. our stages a where that important those of two planning to the of they with cells, process. Yes, equipment those and identified time the important customers how coordination going part the most and take part biggest the with requirements early is order it various then timing does locations how exact on navigating the second want determinant in to on big of in

scenes, work obviously been lot to get there. with and out on They're So There's wouldn't customers. closely the that's been that in of with our of a cells, XXXX. going activity able those a working as that's them us anything utility working deploying ensure anxious the our change we done order go with has construct on XXXX and of associated the of coordination and We're expected we're sites I municipality call that to the planning well on all as increased into as to doubling terms small on air. behind into going grow activity in

Dan. And Yes. is this Jon,

can or one go of on that impact with that them they the customers we then has with and air. to already greenfield an there whether coordination on on fast ultimately how through we go will is built small build other one put systems that we Just impact it we've decide where point whether cells is have clarification

So the faster greenfield. more go decide the take backlog, through to to more co-location, that they decide we'll longer. they will the to go the It go

you. Thank

we'll to go And next, Phil with Cusick JPMorgan.

make guys. that, for I points that sense in XXXX? mostly was that What going Hi And in into will dig proof that does second runway weighted? XXXX that. exactly it be do see Thanks. half the for to you in acceleration XX,XXX

the Phil, the Good to points are point, we in sites have the constructed. on with in turn to Yes. proof being coordinated certainly, getting order XXXX, for on at that's this us And working pre-work carriers. and them identified morning, activity have them and be basically

So we've able we'll of lot on got believe be we what a XXXX. in to nodes on visibility turn

ongoing is has So know be don't there's -- beyond to that, that. I the activities the else coordination mention, that with done we that and much with work to municipalities associated

do continue already identifying got has we've to But those occurred. exactly are the -- So that of well. to around activity sites what most

XXXX. about we're going to good feel we So where out come

look footprint? XXXX, co-location the sort of XX,XXX versus that new does more And

new Well, there's of and combination ago mix talked of transitioned a of years about going from we've co-location several exclusively builds almost we'll and We've a new but be being new. co-location. to builds, have

total versus in As occurring. start as we'll of about XXXX. nodes, And where a we've mentioned next specificity, build those been added, the When year nodes third comments, we the about are what at we co-location have clear into total you we to a and from we're in co-location. look see give since more new be I get

the they in that thing Last that away beginning goes indications $XX year, at the revenue assume Thanks. of stretch or out. that from that, might there me. million sort Should we Sprint of are from

small Are you referring to the my churn reference to on cells?

Yes.

a but that is about expect exactly in of been $XX that majority it to Yes. million -- XXXX, indicated specific would we when year in we've We occur. what previously we haven't the occur,

run risk, we the and be our of of million occurs about annual majority But impact there's, we'll the numbers. we as we guidance, and specific get October that at XXXX. give towards XXXX rate, about in on more So $XX think

Thanks, Jay.

Yes.

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

Two morning. good questions. and Thanks

capital on that leasing was potentially mentioned seeing if that organic of you year? the half be that's comes in curious then something to in better terms back over And you like you over some to or the on may think that the the time, do coverage performance First, years the originally over back growth, AFFO per that in few how allocation, of last just time, of topic, current earlier just expected. XXX%. numbers flexibility that's payout of want, through or than And do just of over where that's the share you call, cash do that you AFFO the think secondly, create about share you when per time you to cash close been and more been

we're tower on assumptions. period when going key is a around big some comments a bit up growth make has basis, to your bit a Sure. small Sprint, acceleration assumption a And then sites There's of Good that historical. bottom better. talked trying to of side long better result over assumptions of as that impact churning comments over believing in On -- about a question, was the be little the operating a we've to of standpoint, were we a we can the growing The capture full then that, the Sprint multiyear Those what I'll X% are interest us out those we we make of of well assumption the line comfort that we then going that. in we of is XXXX. our picture, both performance over growth dividend networks cells the adjustment $XXX the that. believe what And leasing the multiyear going offsets start last picture we of than the period million the of and of around that X% lot gives a tremendous And side, the some offsets provided about how the and order gone and of And to on grow middle little the the is see combination period performed the a the over think cells to with and are that, Big per T-Mobile But growth more we're of the around believe we the we the so that And been in and small both year of expected a call of above we what to was captured most expense our the time. in that's is long morning, at long for talked business think about two and inside what some up comments drive We've the important time. to One talk about at of in we that so bit to two of impactful looking about side the as on second question statement, churn In payout, a most is year. XG. rate a year come second we also we've cell acquired to over a our on that the movements to And of model the over activity, minutes out driver average activity adjusting kind part against talked basis year. what any about the I expect a couple related a coming of a densify, lot activity time. and multiyear guide real outlook that long-term in given numbers night. around of us about ago, we're the around comments two top That's look period that making small time, we've just we're to over benefit tower were towers. to first me able has line Sprint. economics XXXX. services. activity, be outlook has off Certainly, big little let for from leasing then time On the your in long little we from towers of as Mike. do can

is the what considering we we're growth really the against top a So line. think offset at long-term

of environment So we're driver two line assumptions that. a one for top in that's growth, like the the the feel I of great on

come over term, to normalized take expectation low short historically The interest with expense. the back is an some growth historically interest that's where a able critical second would long a rates this, comments sheet. than advantage at more at we a to we've high rates and just balance on incredibly of to have long the that In been been those accelerated level a rates we've capture about pace. pace remarks assumption we to his really our interest around that long-term that we see time what but And think Dan period prepared made had of in assumption alluded

previously assumed that that we into revert more faster more than, model would So to expected. much have a long-term I average our level expense of to anybody closer average expense. think, accelerated And we a -- rate cost normalized that and at

or that model has So over the to our no expectations impact almost long growth. term, our of

then it impact interest it where assumptions rate when expenses impact happens has put the Over obviously, XXXX in think our an we on that shorter guide. what much, term, to we it has, depending about moves up as an And into the XXXX, are. interest well,

that what balance think expense and with come or we cells towers us do about those in of and cash small movements the near growth, believe we kind underlying about given think to, year, be. do payout take periods is we flow use out rates shorter interest heart of against any we as of and So any to where think gets time kind That assumptions, how the broader to going the over of we term down both that question for about term time. in of the your where think, I

returns of those capital be generated to to that's we'll needed us we're we the capital of that and cost any to comes it with ensure then activities. and that expenditures the Our the allows opportunity finance capital the because excess taking we're in flexibility to returning finance invest cash on shareholders. capital that returns getting should well the from debt holders think that appropriately from view about that business, flow shareholders and the is that to are

the flow in the cash out So discipline we playing like the flow business. of paying out cash the

dividend about that how same dividend I'll been to the expect make current thoughtful in as way thing last has the pay your So practice, be best thinking give front. as we say have then still that's how about cash from our we And is October, And any guidance to past out years be look at we and we done I and on Nothing in ins as hopefully, around in we've approach changed would we'll flow. look think levels. has outs in that periods. is when the it. at past the we're helpful and that we disciplined to adjustment given the question year, adjust

as the our the be outlook. and adjustment we're time making So -- next the for update talking XXXX as about dividend to likely we're the we'll well talking

Thanks.

on, Deutsche Matt we'll moving go with Niknam And to Bank.

Hey questions. guys, the thanks for taking

if I two, could. Just

discretionary CapEx. on First,

lot Sprint about rent, for talked just the how traditional XXXX of it's October, to range? year jump seeing rates, CapEx So guidance for air. range X% interest we low to cell you've AFFO you as of we don't year's And initial or increase about to per give I terms that thinking some on can think billion XXXX, there Thanks. share going presumable moving new notes visibility a small gun, next is in amortization of relative then come rising on discretionary maybe to the we've we How whether in framework extrapolate. prepaid should get and $X in closer about parts past? a X% better you provide that but secondly, any talked to I you're XXXX, this some know about both to churn, the in can the have about want relative you're

on I'll Yeah, XXXX that amount talking going take small to previously range when the how customers discussions capital. believe CapEx. the will we're on of depend Matt, And we as were on the X:X XXXX. air speaking, putting what on number the with put discussed, to in Generally about Dan. air cells about air, over cells discretionary XXXX. we're with will the in in there new more of that all small be builds. an things first many X:X the we're come that Hey, going will will be amount The to will go capital colocated we've our more we be in increase versus it's question on

lot growth, framing AFFO answered could So we're of I get around you of for more have our yet. to And part the be XXXX all is we'll look you higher like, initial a that it around how of guidance in of your question trends what we given side. in in would I going mentioned There's the you we've the and give to as rent we've of lot think your capital terms all the But October, just interest that will to question, give more to you amortization. impact growth we until framework on small share think acceleration what may And to AFFO, cell will definition October. date. things nothing that growth. you get we've and per of give context we second in cells the don't a than And in October, But although now that a hit way towers the information it XXXX. point given out looking that of mentioned, in shake on the expense of the we on and can an like aspects then the prepaid for. we both XXXX that you're expect small impacts that business, the continuation have seen that seen number It's between our

great. That’s Dan. Thanks

to And Deo Nick Del next, with we'll MoffettNathanson. go

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

have few a potential towers. Were the on thought two change a than potential in for of is that little your year coming customer or you those really customers ago, assessment becoming bit might there? your a ago, a or new of periods or not Jay, tenants in a of talked non-traditional higher the you about you real one First, view minutes suggesting was there your likelihood

in Good have think having morning of that puts comment It with small a more us customers potential we're product that customers towers. and value created fiber, my I Nick, the comprehensive seeing was don't think cells specifically I offering by offering. the would without or identified robust we towards conversations

of significant is -- the we bumped go think some that customers time at big think where would that, the we -- are went any yes, customers. that of the likelihood is about -- I up to are we'll I into, terms say I low. talking we benefit anticipated. those looking of don't relatively to our the this at there to least so have one And know don't would not four one in you -- like moment end I I and over would all have we of that going customers way that get is

our growth. be have the of this that wireless and towers combined deploy activity going cells small is growth we're space that networks think our a rate. I meaningful combination the enter long-term, and see And additive people However, over to to will will to

Okay.

one cells. And on second clarification. small Okay. that then Appreciate maybe a

your always risk? to risk cells estimate modeled for to cost you a time it When inflation signed, are cost realized is that price does on just bear you you that note reason, cells stated deploy being the think up small You or based based based I'm whatever deals or yield. small risk with cost pricing the associated backlog? a you you than the the customer initially higher ends that any large deals, if on small cell at bear maybe bit is costs, trying differently, about the is on sign cell or small the

Sure. for question. Thanks the

cost the customers way various with So based on would the would we markets. deploying in negotiate of be

if market than a the would cost to price was and higher market price to low, being more lower at deploy dense area. the the -- customer cost that took a relatively you the be So or

talk deployment, terms so otherwise be at have we to got as security get variable the where when know customer price we're secure building nodes that on way about obviously, to And at the a risk we -- the yields point of those we yield it we've ultimately that at not on those point. that, ultimately, is which we're the thinking would in going fixed once actually cost to the yield, be how the of price cost to based about is to yields

Okay.

be in to to -- if expected to customer more if a node So compensate which ends customer pays you're up is of cost the just clear, expensive for being it more than ultimately the you suggesting deploy particular initially a that? there a committed, market to

not about if Well, to where Once I that cost that good we're and think get there's you're we've make then risk risk build operating node, us time, we of and that at about. we're that's right? that constructing committed a the over if contracts the they and ours, we've is to customer signed to bearing risk. the them place with commitments announced we not associated, thinking agreements that continuum, inflation told the a operating talked So going of a that's actually we've when what we're customer large way node,

terrific are, could So underwritten. that have teams and done at a job been those good were depending haven't the levels the that if have to we continuum gone activity. a on we our where operating risk the pricing good good operating very budgets estimating of have in visibility But we've where and into the costs potential we job and have done

Okay.

you, Thank Jay. Got Okay. it.

question? your answer that Did

it yes, Thanks. did. Yes,

right. All

have we think more I time for question. one

Brandon that Capital Markets. KeyBanc you. Thank And with will come Nispel from

the core in leasing XQ, Thank to guidance. questions you hoping for million was year-to-date. million in. to you from where at? talk on Could finish outline $XX really the of about but of you I expect versus business? you the variability that which guided year? to you're which year and question the only million. And you terms $XX taking was And $XXX ask Then million to organic Great. at fiber the churn, do for on me can expect you. in Okay. squeezing small and towers XQ do activity exit hopefully, churn cell the Where to year, similar $XX sort you Thank was the growth

Sure.

question variability me. QX from the Let Excuse me first. to take first The QX.

growth. had And items and As for are we be organic that the our which growth growth flat. consistent will pointed generally for relatively hit tower some normalize organic we're about quarter-to-quarter quarter, you yearly in decreases to When our X% we we going some there is talk And seeing about out the year. that, what across XXXX, that's QX. when non-recurring business, last basis, a increases believe the we on why business. talk And is we be

as like with those With of So two is to we quarters faster for lot Solutions of you respect our can of again, normalized you maintain, but Jay rate is items. see that our believe we velocity churn spoken in a that's, that just rate what times year, that churn, the to call. a the we on expect will to faster. the pretty result of Fiber amount as that in because churn know, over look that's the business course exit overall few things business most of has will X% see that increase around the do And a the first consistent non-recurring the be operations. growth of each happen because And churn some timing a

type And be growth had bookings churn see that of one-year line an can we some changes to in as outlook. the look. our with very like there look again, overall in So much period we period. we But and at to what

the to single-digit bookings means low So us get to the gross around in X% the high growth which fiber double-digits solutions churn, net business.

for real previous growth you towers? side? I And quick picking are Dan. could on the growth I the we was maybe say on churn up If point guess, just that, an extra on organic the Thanks. or I X%. net thought side Did up X% follow guide

in Overall, our is that our is it. the outlook. X%, around no from previous change tower growth Got business and that

Thank Okay. for clarifying. you

year. and we're for of so a everybody time to our team We this morning, thanks first together strong. Thanks, forward to look finishing out half in for laying Okay. us much. next great XXXX, guidance job for October. And Thanks our XXXX joining this doing through the the

conclude for And like today's to We'd you. does Thank that participation. everyone call. thank their

now may You disconnect.