Activity this year in surrounding towers, small cells and fiber will be greater than 2017, Crown Castle International officials said during last Thursday’s fourth quarter earnings call.
Guidance on new leasing activity for 2018 was $110 million at towers, $55 million at small cells and $45 million at fiber solutions. The company also expects churn of about 1 percent to 2 percent at both towers and small cells, according to Daniel Schlanger, Crown Castle chief financial officer.
“So, we still see really good activity across the board, and I think that it’s going to continue to translate into new leasing activity, as we did in our prior outlook,” he said.
Crown Castle is the best positioned tower company to benefit from the accelerating carrier spending on infrastructure, according to Matthew Niknam, analyst, Deutsche Bank Research.
“Crown Castle’s ‘asset trifecta’ … makes it a key thematic idea benefiting from multiple network investment catalysts in 2018 and beyond,” Niknam wrote. “Put another way, we think CCI’s unique asset mix could serve as a ‘swiss army knife’ of sorts for carrier infrastructure needs; these include LTE coverage enhancements, densification, and early 5G builds.”
Additionally, Crown Castle increased its outlook for site rental revenues and adjusted EBITDA, partially because of the two long-term customer agreements it signed during the quarter.
“These agreements included contracted new leasing activity and term extensions on existing leases,” Jay Brown, Crown Castle president, said. “We continue to see increasing levels of investment activity from our major customers that is resulting in an expected increase in 2018 new leasing activity across towers, small cells and fiber solutions as compared to the new leasing activity we saw in 2017.”
Quotes courtesy www.seekingalpha.com
J. Sharpe Smith
J. Sharpe Smith joined AGL in 2007 as contributing editor to the magazine and as editor of eDigest email newsletter. He has 27 years of experience writing about industrial communications, paging, cellular, small cells, DAS and towers. Previously, he worked for the Enterprise Wireless Alliance as editor of the Enterprise Wireless Magazine. Before that, he edited the Wireless Journal for CTIA and he began his wireless journalism career with Phillips Publishing, now Access Intelligence. Sharpe Smith may be contacted at: firstname.lastname@example.org.