The third quarter was another very good one for SBA. The REIT delivered strong financial results in both its leasing and services segments and as a result, continue to deliver very healthy growth in AFFO per share. According to firm president and CFO, Jeff Stoops, the company “allocated capital into new assets, share repurchases and our first cash dividend.”
Stoops said on the firm’s Q3 earnings call that it took advantage of the low interest rate environment with a successful new financing and continues to work closely with its customers on their network investment plans. “In the US, we are continuing to see the majority of spending around 4G densification. All 4 major US wireless carriers were active during the quarter, with the bulk of investment coming from amendments.”
These amendments, he added, “represent upgrades to our customers existing networks through technological improvements, the deployment of new spectrum bands and the addition of capacity. We anticipate this type of activity to continue for at least the next several years.
In addition, initial 5G investment is underway and we believe we are at the very beginning of a long 5G deployment cycle. In the future 5G networks will involve the deployment or redeployment of low and mid-band spectrum further solidifying the importance of macro sites to our customers network plans.”