SBA Communications (SBAC) 34th Annual Media, Internet & Telecom Conference summary

Key business highlights and strategic developments

• Achieved strong organic leasing activity in 2025, both domestically and internationally, including a 10-year master lease agreement with Verizon and the acquisition of over 7,000 towers from Millicom in Central America.

• Upgraded to investment grade by two rating agencies, marking a transition in capital structure and opening access to deeper, cheaper financing markets.

• Updated leverage target to 6-7x, maintaining operational flexibility and enabling continued investment and shareholder returns.

• Portfolio review led to exits from subscale or less strategic markets, focusing on scale and relevance in core regions.

• Returned significant capital to shareholders through dividends and $500 million in share buybacks in the past year.

U.S. market trends and outlook

• U.S. carriers are at different stages of 5G build-outs, with T-Mobile and Verizon driving network densification and upgrades, especially for fixed wireless access.

• The Verizon 10-year agreement secures minimum new co-locations, pricing certainty, and limits terminations, supporting long-term growth.

• Churn in 2026 is elevated due to Sprint and DISH lease terminations, but is expected to decline significantly after this year.

• Organic growth is projected to normalize at 4-5% annually over the next decade, driven by escalators and new leasing, with churn returning to historical levels.

• Equipment upgrade cycles and new spectrum auctions, including those supporting 6G, are expected to drive future leasing activity.

International business performance and strategy

• Brazil continues to deliver strong organic growth, with churn from Oi consolidation peaking in 2026 and expected to subside thereafter.

• Central America acquisition from Millicom expanded the portfolio to over 10,000 sites, established market dominance, and secured long-term, USD-denominated contracts.

• International M&A focus is on markets with existing presence and scale, with selective expansion and opportunistic deals like Millicom.

• Exited markets such as the Philippines, Colombia, Argentina, and Canada to concentrate on regions with better growth prospects and scale.