SBA Communications (SBAC) 47th Annual Raymond James Institutional Investor Conference summary

Industry trends and outlook

• Carrier consolidation churn in the U.S. is nearly complete, with minimal exposure to DISH and related revenue removed from guidance through 2026.

• Verizon is expected to be the largest contributor to new revenue in 2026, with a 10-year MLA agreement providing strong visibility.

• T-Mobile's rural coverage and densification are nearing completion, shifting new lease growth toward Verizon.

• 5G deployment is advanced for T-Mobile and Verizon, with AT&T lagging; 6G rollout anticipated by 2028-2029 following the upper C-band auction in 2027.

• AI and edge computing are expected to drive increased tower activity and data usage by 2030, with a shift toward more balanced upload/download traffic.

Financial performance and capital allocation

• Long-term normalized top-line growth rate projected at 4%-5%, with high gross margins (85%) and single-digit bottom-line growth, excluding refinancing headwinds.

• Excess cash is allocated to share buybacks, M&A, and debt reduction; $1.1 billion remains in the buyback program.

• Dividend payout ratio is currently 41%, with double-digit dividend growth expected for the next few years, targeting a mid-50s payout ratio.

• Recent acquisitions include Millicom towers in Central America, with a 15-year USD agreement and high single-digit returns.

Market dynamics and international strategy

• U.S. tower portfolio acquisitions are challenged by high private multiples and limited large-scale opportunities; focus remains on smaller portfolios.

• International strategy prioritizes markets with strong economies and scale; recent exits from subscale markets like the Philippines, Argentina, Colombia, and Canada.

• Central America and Brazil are highlighted as attractive markets, with Brazil expected to see stable growth post-Oi consolidation and further 5G deployment.