SBA Communications (SBAC) investor relations material

Industry overview

• Wireless towers are essential infrastructure for mobile operators, offering high revenue visibility and stable, recurring cash flows due to long-term, non-cancellable leases with annual escalators and low churn rates.

• The business model is capital-intensive with significant barriers to entry, high operating leverage, and scalable margins as additional tenants increase revenue with minimal incremental costs.

• Mobile data traffic is projected to grow at a 13% CAGR in North America from 2025 to 2031, driven by 5G/6G deployment, AI-enabled applications, and new use cases like fixed wireless access and edge computing.

• Upcoming spectrum auctions and global carrier competition are expected to further boost demand for tower space.

• New 6G use cases, including AI, drone delivery, connected vehicles, and public safety, will require ongoing network investment and densification.

Company overview

• Operates over 46,000 communication sites across 13 markets, with a strong presence in the U.S., Central and South America, and Africa.

• Structured as a REIT, with a BBB/BBB- credit rating and a market cap of ~$20.6B as of December 2025.

• FY2025 revenue reached $2.8B, with Adjusted EBITDA of $1.9B and AFFO per share of $12.85; dividends paid were $4.44 per share.

• Business segments include domestic and international site leasing (72.6% and 27.4% of site leasing revenue, respectively) and U.S.-only site development services.

• Customer base is anchored by major wireless carriers, with no single U.S. state representing more than 10% of the portfolio.

Strategy and growth

• Focuses on maximizing tower capacity through organic growth, adding tenants, and disciplined M&A and build-to-suit programs.

• Maintains strong land control, with 71% of towers on land owned or controlled for over 20 years and an average remaining ground lease term of 35 years.

• Portfolio has grown steadily, reaching over 46,000 sites by mid-2026, including the acquisition of 7,000 sites in Central America in 2025.

• Pursues adjacent business opportunities such as edge data centers, fiber aggregation, and private networks.