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SBA Communications Corporation’s (SBAC - Free Report) fourth-quarter adjusted funds from operations (AFFO) per share of $2.81 surpassed the Zacks Consensus Estimate of $2.79. The reported figure reflects a rise of 12.9% from the prior-year quarter’s $2.49.
Results reflect robust operating performance in both site-leasing and development businesses. The company continues to benefit from the addition of sites to its portfolio.
Quarterly total revenues increased 11.1% year over year to $595.3 million and outpaced the consensus mark of $591.9 million.
In the reported quarter, the company, through an existing trust, issued $1.79 billion of Tower Securities at an interest rate of 2.217%.
Quarter in Detail
Site-leasing revenues were up 9.4% year over year to $539.4 million. This consisted of domestic site-leasing revenues of $432.2 million and international site-leasing revenues of $107.2 million. The domestic cash site-leasing revenues were $421.7 million, while international cash site-leasing revenues were $108.1 million. The site-leasing operating profit summed $442.4 million, marking a year-over-year increase of 10.8%.
Site-development revenues increased 30% year over year to $55.9 million.
The overall operating income improved to $197.4 million from the year-ago quarter’s $165.1 million.
The adjusted EBITDA totaled $409.1 million, up 7.5% year over year, while the adjusted EBITDA margin declined to 69.8% from the year-ago figure of 71%.
In the December-end quarter, the company acquired 59 communication sites for a cash consideration of $38.4 million. It also built 88 towers during this period. The company owned or operated 34,177 communication sites as of Dec 31, 2021. Of these, 17,356 sites are located in the United States and its territories, and 16,821 internationally.
SBA Communications also spent $13.6 million to purchase land and easements, and extend lease terms. Total cash capital expenditure was $113.2 million in the reported quarter, of which $11.1 million was non-discretionary and $102.1 million represented discretionary.
Cash Flow & Liquidity
In the fourth quarter, SBA Communications generated $298.6 million of net cash from operations compared with the year-ago quarter’s $243.1 million.
As of Dec 31, 2021, it had $367.3 million in cash and cash equivalents, with $12 billion of net debt.
Further, the company paid out a cash dividend of $63.1 million in fourth-quarter 2021.
Outlook
SBA Communications provided guidance for 2022. It expects AFFO per share of $11.48-$11.85. The Zacks Consensus Estimate for the same is pegged at $11.55.
Site-leasing revenues are projected at $2,235-$2,255 million, and site-development revenues are expected to lie between $193 million and $213 million. Moreover, the adjusted EBITDA is predicted to be between $1,673 million and $1,693 million.
Dividend Update
On Feb 28, SBA Communications announced a quarterly cash dividend of 71 cents on its Class A common stock, representing a hike of 22% from the prior payout. The dividend will be paid out on Mar 25 to shareholders of record as of the close of business on Mar 10.
SBA Communications Corporation Price, Consensus and EPS Surprise
Boston Properties Inc.’s (BXP - Free Report) fourth-quarter 2021 funds from operations per share of $1.55 surpassed the Zacks Consensus Estimate of $1.52. The figure compared favorably with the year-ago quarter’s $1.37.
BXP’s quarterly figure exceeded the mid-point of its fourth-quarter guidance by 5 cents, reflecting an improved portfolio performance. Boston Properties also experienced strong leasing activity in the quarter.
Highwoods Properties, Inc.’s (HIW - Free Report) fourth-quarter 2021 funds from operations per share of $1.06 surpassed the Zacks Consensus Estimate of 97 cents. Rental and other revenues of $203.2 million outpaced the Zacks Consensus Estimate of $192.7 million.
Decent leasing activity and improvement in same-property cash net operating income growth aided Highwoods Properties. While FFO per share increased 21.8% from 87 cents year over year, rental and other revenues climbed 12.9%.
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) Q4 FFO Beats Estimates, Revenues Rise
SBA Communications Corporation’s (SBAC - Free Report) fourth-quarter adjusted funds from operations (AFFO) per share of $2.81 surpassed the Zacks Consensus Estimate of $2.79. The reported figure reflects a rise of 12.9% from the prior-year quarter’s $2.49.
Results reflect robust operating performance in both site-leasing and development businesses. The company continues to benefit from the addition of sites to its portfolio.
Quarterly total revenues increased 11.1% year over year to $595.3 million and outpaced the consensus mark of $591.9 million.
In the reported quarter, the company, through an existing trust, issued $1.79 billion of Tower Securities at an interest rate of 2.217%.
Quarter in Detail
Site-leasing revenues were up 9.4% year over year to $539.4 million. This consisted of domestic site-leasing revenues of $432.2 million and international site-leasing revenues of $107.2 million. The domestic cash site-leasing revenues were $421.7 million, while international cash site-leasing revenues were $108.1 million. The site-leasing operating profit summed $442.4 million, marking a year-over-year increase of 10.8%.
Site-development revenues increased 30% year over year to $55.9 million.
The overall operating income improved to $197.4 million from the year-ago quarter’s $165.1 million.
The adjusted EBITDA totaled $409.1 million, up 7.5% year over year, while the adjusted EBITDA margin declined to 69.8% from the year-ago figure of 71%.
In the December-end quarter, the company acquired 59 communication sites for a cash consideration of $38.4 million. It also built 88 towers during this period. The company owned or operated 34,177 communication sites as of Dec 31, 2021. Of these, 17,356 sites are located in the United States and its territories, and 16,821 internationally.
SBA Communications also spent $13.6 million to purchase land and easements, and extend lease terms. Total cash capital expenditure was $113.2 million in the reported quarter, of which $11.1 million was non-discretionary and $102.1 million represented discretionary.
Cash Flow & Liquidity
In the fourth quarter, SBA Communications generated $298.6 million of net cash from operations compared with the year-ago quarter’s $243.1 million.
As of Dec 31, 2021, it had $367.3 million in cash and cash equivalents, with $12 billion of net debt.
Further, the company paid out a cash dividend of $63.1 million in fourth-quarter 2021.
Outlook
SBA Communications provided guidance for 2022. It expects AFFO per share of $11.48-$11.85. The Zacks Consensus Estimate for the same is pegged at $11.55.
Site-leasing revenues are projected at $2,235-$2,255 million, and site-development revenues are expected to lie between $193 million and $213 million. Moreover, the adjusted EBITDA is predicted to be between $1,673 million and $1,693 million.
Dividend Update
On Feb 28, SBA Communications announced a quarterly cash dividend of 71 cents on its Class A common stock, representing a hike of 22% from the prior payout. The dividend will be paid out on Mar 25 to shareholders of record as of the close of business on Mar 10.
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
Boston Properties Inc.’s (BXP - Free Report) fourth-quarter 2021 funds from operations per share of $1.55 surpassed the Zacks Consensus Estimate of $1.52. The figure compared favorably with the year-ago quarter’s $1.37.
BXP’s quarterly figure exceeded the mid-point of its fourth-quarter guidance by 5 cents, reflecting an improved portfolio performance. Boston Properties also experienced strong leasing activity in the quarter.
Highwoods Properties, Inc.’s (HIW - Free Report) fourth-quarter 2021 funds from operations per share of $1.06 surpassed the Zacks Consensus Estimate of 97 cents. Rental and other revenues of $203.2 million outpaced the Zacks Consensus Estimate of $192.7 million.
Decent leasing activity and improvement in same-property cash net operating income growth aided Highwoods Properties. While FFO per share increased 21.8% from 87 cents year over year, rental and other revenues climbed 12.9%.
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.