Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Crown Castle International Corp. (CCI - Analyst Report) has decided to convert its tower business into a Real Estate Investment Trust (REIT). Crown Castle – a leading independent operator of wireless communication towers in the U.S. – will function as an REIT starting Jan 1, 2014. Earlier in 2012, the company’s closest rival American Tower Corp. (AMT - Analyst Report) also converted itself as a REIT.

An REIT status will benefit the company in terms of tax savings and enhancing long-term shareholders wealth. Moreover, it will also minimize the weighted average cost of capital (WACC). Following the conversion, Crown Castle will distribute 90% of its earnings through dividends every year, reducing tax.

Unlike American Tower, Crown Castle will not make any special dividend payments till it starts operating as an REIT. In order to qualify as an REIT, Crown Castle will follow some major guidelines related to ownership and transfer restrictions. The conversion of its tower business into an REIT is subject to approval of its board of directors and shareholders.

Crown Castle declared improved second-quarter 2013 financial results outpacing both the top and bottom lines of the Zacks Consensus Estimate. For fiscal 2013, the company expects Site Rental revenues to be in the range of $2,471 million to $2,481 million while net income is expected to be between $116 million and $212 million or 40 cents to 73 cents per share.

Crown Castle currently has a Zacks Rank #3 (Hold).

Other Stocks to Consider

Other stocks in the wireless tower industry include SBA Communications Corp. (SBAC - Snapshot Report) and Douglas Emmett Inc. (DEI - Snapshot Report). Douglas Emmett carries a Zacks Rank #2 (Buy) while SBA Communications carries a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
MODINE MANUF MOD 17.19 +9.21%
VERTEX ENERG VTNR 8.13 +8.98%
CLAYTON WILL CWEI 138.01 +5.72%
KNIGHTSBRIDG VLCCF 13.25 +5.66%
CANADIAN SOL CSIQ 30.83 +5.55%