SBA Communications (SBAC) Citi's 2024 Global TMT Conference summary

Strategic priorities and capital allocation

• Focus on long-term value creation for shareholders through disciplined capital allocation and flexibility in response to market conditions.

• 2023/2024 EBITDA around $1.9B, with $700M cash available for allocation after expenses and dividends.

• Recent capital use includes debt paydown, share buybacks, and refinancing at favorable rates as interest rates decline.

• M&A considered if accretive to FFO per share, with flexibility to buy back shares if market dislocation occurs.

• Leverage seen as an output of strategy, not a primary target.

Portfolio optimization and market outlook

• US market is mature, stable, and preferred, but M&A opportunities are limited by competition and valuation.

• Ongoing acquisition of small tower portfolios in the US, with room for tenant growth per tower.

• Africa operations in Tanzania and South Africa are growing double digits, with power-as-a-service enhancing site stickiness.

• Central America expected to grow mid- to high-single digits; Brazil offers long-term growth but faces short-term churn and currency pressure.

• Selective expansion in Latin America and no plans for significant new markets outside current footprint.

Domestic leasing and growth trends

• 2023 lease-up expected at $42M, with Q4 run rate at $8–9M; 2024 could see mid-30s to low-40s depending on conversion of active dialogues.

• Increased application activity and improved dialogue with wireless operators, though conversion to signed contracts takes time.

• Churn expected to trend toward the low end of 1–2% as industry consolidates.

• Comprehensive deals like the AT&T agreement provide predictable growth and may become more common.