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SBA Communications (SBAC) Tops on Q4 AFFO, Hikes Dividend
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SBA Communications Corporation (SBAC - Free Report) delivered solid fourth-quarter 2020 results, wherein adjusted funds from operations (AFFO) and the top line increased year over year as well as surpassed the Zacks Consensus Estimate.
The AFFO per share of $2.49 for the fourth quarter surpassed the Zacks Consensus Estimate of $2.44. Further, the reported figure is 14.2% higher than the prior-year quarter’s $2.18.
Results reflected solid operating performance in both its site leasing and development business. The company continues to benefit from the addition of sites to its portfolio.
Quarterly total revenues increased 4.3% year over year to $535.9 million and outpaced the consensus estimate of $529.8 million.
For 2020, the company reported AFFO per share of $9.43, up 11.2% from the prior year’s $8.48. Also, the figure beat the Zacks Consensus Estimate of $9.38. Total revenues of $2.08 billion increased 3.4% year over year.
The company also announced a new long-term master lease agreement with DISH Network Corporation , per which the latter will lease SBA Communications’ towers. Moreover, SBA Communications is expected to provide a wide array of pre-construction functions such as site acquisition as well as regulatory and compliance services.
Quarter in Detail
Site-leasing revenues were up 2.5% year over year to $493 million. This consisted of domestic site-leasing revenues of $393 million and international site-leasing revenues of $100 million. Domestic cash site-leasing revenues were $391.9 million, up 3.8% year over year. International cash site-leasing revenues were $100.9 million, up 0.5% year over year. Site-leasing operating profit summed $399.3 million, marking an increase of 3.4% year over year. Also, site development revenues jumped 31.9% to $43 million.
Overall operating income improved to $165.1 million from the year-ago quarter’s $153.9 million.
Adjusted EBITDA totaled $380.6 million, up 5% year over year, while adjusted EBITDA margin remained flat year over year at 71%.
During the December-end quarter, the company acquired 104 communication sites for a total cash consideration of $133.5 million. It also built 106 towers during this period. The company owned or operated 32,923 communication sites as of Dec 31, 2020. Of these, 16,546 sites are located in the United States and its territories, and 16,377 internationally.
SBA Communications also spent $16.4 million to purchase land and easements, and extend lease terms. Markedly, total cash capital expenditure was $104.7 million in the reported quarter, of which $10 million was non-discretionary and $94.7 million represented discretionary.
Cash Flow & Liquidity
In the fourth quarter of 2020, SBA Communications generated $243.1 million of net cash from operations compared with the year-ago quarter’s $265.1 million. As of Dec 31, 2020, it had $340.9 million in cash and equivalents, with $11.2 billion of net debt.
The company repurchased 1.7 million shares of its Class A common stock for $480.3 million at an average price per share of $290.89 under its $1-billion repurchase plan.
Further, it paid out a cash dividend of $51.5 million in fourth-quarter 2020.
Outlook
SBA Communications has provided initial guidance for 2021 and expects 2021 AFFO per share of $10-$10.41. The Zacks Consensus Estimate for the same is pegged at 10.12.
Site-leasing revenues are projected at $2,032-$2,052 million, and site development revenues are likely to be between $140 million and $160 million. Moreover, adjusted EBITDA is predicted between $1,562 million and $1,582 million.
Dividend Update
On Feb 22, SBA Communications announced a quarterly cash dividend of 58 cents on its Class A common stock. This denotes a sequential hike of 25%. The dividend will be paid out on Mar 26 to shareholders of record as of the close of business on Mar 10, 2021.
SBA Communications Corporation Price, Consensus and EPS Surprise
Ventas, Inc. (VTR - Free Report) reported fourth-quarter 2020 normalized FFO per share of 83 cents, surpassing the Zacks Consensus Estimate of 73 cents. However, the figure declined 10%fromthe year-ago quarter’s number.
Healthpeak Properties, Inc. reported fourth-quarter 2020 FFO as adjusted per share of 41 cents, surpassing the Zacks Consensus Estimate of 40 cents. However, the reported figure compared unfavorably with FFO as adjusted of 44 cents per share recorded in the prior-year quarter.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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SBA Communications (SBAC) Tops on Q4 AFFO, Hikes Dividend
SBA Communications Corporation (SBAC - Free Report) delivered solid fourth-quarter 2020 results, wherein adjusted funds from operations (AFFO) and the top line increased year over year as well as surpassed the Zacks Consensus Estimate.
The AFFO per share of $2.49 for the fourth quarter surpassed the Zacks Consensus Estimate of $2.44. Further, the reported figure is 14.2% higher than the prior-year quarter’s $2.18.
Results reflected solid operating performance in both its site leasing and development business. The company continues to benefit from the addition of sites to its portfolio.
Quarterly total revenues increased 4.3% year over year to $535.9 million and outpaced the consensus estimate of $529.8 million.
For 2020, the company reported AFFO per share of $9.43, up 11.2% from the prior year’s $8.48. Also, the figure beat the Zacks Consensus Estimate of $9.38. Total revenues of $2.08 billion increased 3.4% year over year.
The company also announced a new long-term master lease agreement with DISH Network Corporation , per which the latter will lease SBA Communications’ towers. Moreover, SBA Communications is expected to provide a wide array of pre-construction functions such as site acquisition as well as regulatory and compliance services.
Quarter in Detail
Site-leasing revenues were up 2.5% year over year to $493 million. This consisted of domestic site-leasing revenues of $393 million and international site-leasing revenues of $100 million. Domestic cash site-leasing revenues were $391.9 million, up 3.8% year over year. International cash site-leasing revenues were $100.9 million, up 0.5% year over year. Site-leasing operating profit summed $399.3 million, marking an increase of 3.4% year over year. Also, site development revenues jumped 31.9% to $43 million.
Overall operating income improved to $165.1 million from the year-ago quarter’s $153.9 million.
Adjusted EBITDA totaled $380.6 million, up 5% year over year, while adjusted EBITDA margin remained flat year over year at 71%.
During the December-end quarter, the company acquired 104 communication sites for a total cash consideration of $133.5 million. It also built 106 towers during this period. The company owned or operated 32,923 communication sites as of Dec 31, 2020. Of these, 16,546 sites are located in the United States and its territories, and 16,377 internationally.
SBA Communications also spent $16.4 million to purchase land and easements, and extend lease terms. Markedly, total cash capital expenditure was $104.7 million in the reported quarter, of which $10 million was non-discretionary and $94.7 million represented discretionary.
Cash Flow & Liquidity
In the fourth quarter of 2020, SBA Communications generated $243.1 million of net cash from operations compared with the year-ago quarter’s $265.1 million. As of Dec 31, 2020, it had $340.9 million in cash and equivalents, with $11.2 billion of net debt.
The company repurchased 1.7 million shares of its Class A common stock for $480.3 million at an average price per share of $290.89 under its $1-billion repurchase plan.
Further, it paid out a cash dividend of $51.5 million in fourth-quarter 2020.
Outlook
SBA Communications has provided initial guidance for 2021 and expects 2021 AFFO per share of $10-$10.41. The Zacks Consensus Estimate for the same is pegged at 10.12.
Site-leasing revenues are projected at $2,032-$2,052 million, and site development revenues are likely to be between $140 million and $160 million. Moreover, adjusted EBITDA is predicted between $1,562 million and $1,582 million.
Dividend Update
On Feb 22, SBA Communications announced a quarterly cash dividend of 58 cents on its Class A common stock. This denotes a sequential hike of 25%. The dividend will be paid out on Mar 26 to shareholders of record as of the close of business on Mar 10, 2021.
SBA Communications Corporation Price, Consensus and EPS Surprise
SBA Communications Corporation price-consensus-eps-surprise-chart | SBA Communications Corporation Quote
SBA Communications currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other REITS
Ventas, Inc. (VTR - Free Report) reported fourth-quarter 2020 normalized FFO per share of 83 cents, surpassing the Zacks Consensus Estimate of 73 cents. However, the figure declined 10%fromthe year-ago quarter’s number.
Healthpeak Properties, Inc. reported fourth-quarter 2020 FFO as adjusted per share of 41 cents, surpassing the Zacks Consensus Estimate of 40 cents. However, the reported figure compared unfavorably with FFO as adjusted of 44 cents per share recorded in the prior-year quarter.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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