Crown Castle Inc.’s (CCI - Free Report) fourth-quarter 2023 adjusted funds from operations (AFFO) per share of $1.82 surpassed the Zacks Consensus Estimate of $1.79. Net revenues of $1.67 billion, outpaced the Zacks Consensus Estimate of $1.65 billion.
However, AFFO per share reported a 1.6% decline year over year. Net revenues fell 5.1% year over year.
For 2023, Crown Castle reported AFFO per share of $7.55, beating the Zacks Consensus Estimate of $7.52. Moreover, the figure increased 2.3% from the prior year’s $7.38. Net revenues of $6.98 billion declined marginally from the prior year. However, the reported figure beat the Zacks Consensus Estimate of $6.96 billion.
Rental Revenues Climb
CCI’s total site-rental revenues grew 1.6% year over year to $1.60 billion in the fourth quarter of 2023. The figure was higher than our estimate of $1.58 billion. The uptick was driven by a rise in fiber segment site rental revenues.
Site-rental revenues in the tower segment marginally declined year over year to $1.08 billion. It was slightly higher than our estimate of $1.07 billion. The year-over-year decrease was due to the initial surge in tower activity related to the early stage of the 5G investment cycle that has waned.
Site-rental revenues in the fiber segment rose 6.5% year over year to $524 million. It was higher than our estimate of $507 million. The rise was mainly driven by the increase in organic contribution to site rental billings.
Apart from growth in total site-rental revenues, network services and other revenues came in at $71 million, which plunged 61.8% from the prior-year quarter. It was lower than our estimate of $74 million.
Decline in Operating Expenses
CCI’s quarterly site-rental cost of operations increased 1.8% year over year to $407 million. The figure was lower than our estimate of $416 million.
The company reported services and other cost of operations of $48 million in the quarter. It decreased 60.7% from the prior-year quarter. It was lower than our estimate of $55 million.
Financial Position
Crown Castle exited the fourth quarter of 2023 with cash and cash equivalents of $105 million, down from $117 million reported as of Sep 30, 2023. Moreover, debt and other long-term obligations aggregated $22.09 billion as of Dec 31, 2023, increasing nearly 1% sequentially.
2024 Guidance
Crown Castle maintained its guidance for 2024 AFFO per share in the range of $6.85-$6.97. The Zacks Consensus Estimate is pegged at $6.96, which is within the guided range.
Site rental revenues are expected to be between $6.347 billion and $6.392 billion, while the adjusted EBITDA is estimated to be in the band of $4.138-$4.188 billion.
Crown Castle currently carries a Zacks Rank #3 (Hold).
Upcoming Earnings Releases
We now look forward to the earnings releases of other REITs like Alexandria Real Estate Equities (ARE - Free Report) and Boston Properties (BXP - Free Report) , slated to report on Jan 29 and Jan 30, respectively. Meanwhile, Ventas (VTR - Free Report) is scheduled for Feb 8.
The Zacks Consensus Estimate for Alexandria’s fourth-quarter 2023 FFO per share is pegged at $2.29, implying a 7% year-over-year increase. ARE currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Boston Properties’ fourth-quarter 2023 FFO per share is pegged at $1.81, suggesting a year-over-year fall of 2.7%. BXP currently carries a Zacks Rank #3.
The Zacks Consensus Estimate for Ventas’ fourth-quarter 2023 FFO per share stands at 76 cents, indicating a 4.1% rise year over year. VTR currently has a Zacks Rank #2 (Buy).
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Crown Castle Inc.’s (CCI - Free Report) fourth-quarter 2023 adjusted funds from operations (AFFO) per share of $1.82 surpassed the Zacks Consensus Estimate of $1.79. Net revenues of $1.67 billion, outpaced the Zacks Consensus Estimate of $1.65 billion.
However, AFFO per share reported a 1.6% decline year over year. Net revenues fell 5.1% year over year.
For 2023, Crown Castle reported AFFO per share of $7.55, beating the Zacks Consensus Estimate of $7.52. Moreover, the figure increased 2.3% from the prior year’s $7.38. Net revenues of $6.98 billion declined marginally from the prior year. However, the reported figure beat the Zacks Consensus Estimate of $6.96 billion.
Rental Revenues Climb
CCI’s total site-rental revenues grew 1.6% year over year to $1.60 billion in the fourth quarter of 2023. The figure was higher than our estimate of $1.58 billion. The uptick was driven by a rise in fiber segment site rental revenues.
Site-rental revenues in the tower segment marginally declined year over year to $1.08 billion. It was slightly higher than our estimate of $1.07 billion. The year-over-year decrease was due to the initial surge in tower activity related to the early stage of the 5G investment cycle that has waned.
Site-rental revenues in the fiber segment rose 6.5% year over year to $524 million. It was higher than our estimate of $507 million. The rise was mainly driven by the increase in organic contribution to site rental billings.
Apart from growth in total site-rental revenues, network services and other revenues came in at $71 million, which plunged 61.8% from the prior-year quarter. It was lower than our estimate of $74 million.
Decline in Operating Expenses
CCI’s quarterly site-rental cost of operations increased 1.8% year over year to $407 million. The figure was lower than our estimate of $416 million.
The company reported services and other cost of operations of $48 million in the quarter. It decreased 60.7% from the prior-year quarter. It was lower than our estimate of $55 million.
Financial Position
Crown Castle exited the fourth quarter of 2023 with cash and cash equivalents of $105 million, down from $117 million reported as of Sep 30, 2023. Moreover, debt and other long-term obligations aggregated $22.09 billion as of Dec 31, 2023, increasing nearly 1% sequentially.
2024 Guidance
Crown Castle maintained its guidance for 2024 AFFO per share in the range of $6.85-$6.97. The Zacks Consensus Estimate is pegged at $6.96, which is within the guided range.
Site rental revenues are expected to be between $6.347 billion and $6.392 billion, while the adjusted EBITDA is estimated to be in the band of $4.138-$4.188 billion.
Crown Castle currently carries a Zacks Rank #3 (Hold).
Upcoming Earnings Releases
We now look forward to the earnings releases of other REITs like Alexandria Real Estate Equities (ARE - Free Report) and Boston Properties (BXP - Free Report) , slated to report on Jan 29 and Jan 30, respectively. Meanwhile, Ventas (VTR - Free Report) is scheduled for Feb 8.
The Zacks Consensus Estimate for Alexandria’s fourth-quarter 2023 FFO per share is pegged at $2.29, implying a 7% year-over-year increase. ARE currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Boston Properties’ fourth-quarter 2023 FFO per share is pegged at $1.81, suggesting a year-over-year fall of 2.7%. BXP currently carries a Zacks Rank #3.
The Zacks Consensus Estimate for Ventas’ fourth-quarter 2023 FFO per share stands at 76 cents, indicating a 4.1% rise year over year. VTR currently has a Zacks Rank #2 (Buy).
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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