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Crown Castle International Corp. (CCI - Free Report) reported second-quarter 2022 adjusted funds from operations (AFFO) per share of $1.80. The Zacks Consensus Estimate for the same was pegged at $1.79.
Also, net revenues of $1.73 billion exceeded the Zacks Consensus Estimate of $1.71 billion.
Reported AFFO per share compared favorably with the year-ago period’s $1.71. Net revenues climbed 9.5% from the prior-year quarter’s $1.58 billion.
Growth in site-rental revenues due to elevated tower space demand aided the top-line performance. CCI also raised the 2022 outlook for adjusted EBITDA.
Per Jay Brown, chief executive officer of the company, “We delivered another solid quarter of growth in the second quarter and once again increased our operating expectations for the full year 2022. "
Crown Castle plans to change its corporate name to Crown Castle Inc. from Crown Castle International Corp. This change will be effective from Aug 1, 2022.
Quarter in Detail
During the second quarter, CCI’s site-rental revenues came in at $1.57 billion, up 10% year over year. The organic contribution of $58 million to the site rental revenues reflected 4.7% growth. Furthermore, services and other revenues climbed 5.7% to $167 million.
CCI’s quarterly operating expenses increased 5.8% year over year to $1.14 billion. The operating income climbed 17.4% to $593 million. The quarterly adjusted EBITDA of $1.1 billion marked a 12.5% year-over-year increase owing to growth in site rental revenues and higher services contribution.
In the second quarter, Crown Castle reported a capital expenditure of $303 million. This comprised discretionary capital expenditures of $282 million and sustaining capital expenditures of $21 million. Discretionary capital expenditures primarily attributable to Fiber were approximately $235 million, and that to Towers was around $42 million.
Balance Sheet
Crown Castle exited second-quarter 2022 with cash and cash equivalents of $281 million, down from $312 million reported as of Mar 31, 2022.
Moreover, debt and other long-term obligations aggregated $21.2 billion, up from $21.1 billion witnessed as of Mar 31, 2022.
Subsequent to the quarter end, CCI increased the commitments under its senior unsecured revolving credit facility by $2 billion to $7 billion. Also, the maturity of its senior unsecured credit facility was extended from June 2026 to July 2027.
Guidance
CCI raised the 2022 outlook for adjusted EBITDA while maintaining its full-year guidance for AFFO per share at $7.31-$7.41 and site rental revenues at $6.242-$6.287 billion.
Management now expects adjusted EBITDA in the band of $4.329-$4.374 billion, indicating a $20 million rise at the midpoint from the prior outlook.
We now look forward to the earnings releases of other REITs like Alexandria Real Estate Equities, Inc. (ARE - Free Report) , slated to report on Jul 25, while Equity Residential (EQR - Free Report) and Highwoods Properties (HIW - Free Report) are scheduled on Jul 26.
The Zacks Consensus Estimate for Alexandria’s second-quarter 2022 FFO per share is pegged at $2.06, implying a year-over-year increase of 6.7%. ARE currently carries a Zacks Rank of 3 (Hold).
The Zacks Consensus Estimate for Equity Residential’s second-quarter 2022 FFO per share is pegged at 85 cents, suggesting a year-over-year increase of nearly 9%. EQR currently carries a Zacks Rank #3.
The Zacks Consensus Estimate for Highwoods’ second-quarter 2022 FFO per share stands at 98 cents, indicating a year-over-year increase of 5.4%. HIW currently has a Zacks Rank #3.
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's (CCI) Q2 FFO & Revenues Surpass Estimates
Crown Castle International Corp. (CCI - Free Report) reported second-quarter 2022 adjusted funds from operations (AFFO) per share of $1.80. The Zacks Consensus Estimate for the same was pegged at $1.79.
Also, net revenues of $1.73 billion exceeded the Zacks Consensus Estimate of $1.71 billion.
Reported AFFO per share compared favorably with the year-ago period’s $1.71. Net revenues climbed 9.5% from the prior-year quarter’s $1.58 billion.
Growth in site-rental revenues due to elevated tower space demand aided the top-line performance. CCI also raised the 2022 outlook for adjusted EBITDA.
Per Jay Brown, chief executive officer of the company, “We delivered another solid quarter of growth in the second quarter and once again increased our operating expectations for the full year 2022. "
Crown Castle plans to change its corporate name to Crown Castle Inc. from Crown Castle International Corp. This change will be effective from Aug 1, 2022.
Quarter in Detail
During the second quarter, CCI’s site-rental revenues came in at $1.57 billion, up 10% year over year. The organic contribution of $58 million to the site rental revenues reflected 4.7% growth. Furthermore, services and other revenues climbed 5.7% to $167 million.
CCI’s quarterly operating expenses increased 5.8% year over year to $1.14 billion. The operating income climbed 17.4% to $593 million. The quarterly adjusted EBITDA of $1.1 billion marked a 12.5% year-over-year increase owing to growth in site rental revenues and higher services contribution.
In the second quarter, Crown Castle reported a capital expenditure of $303 million. This comprised discretionary capital expenditures of $282 million and sustaining capital expenditures of $21 million. Discretionary capital expenditures primarily attributable to Fiber were approximately $235 million, and that to Towers was around $42 million.
Balance Sheet
Crown Castle exited second-quarter 2022 with cash and cash equivalents of $281 million, down from $312 million reported as of Mar 31, 2022.
Moreover, debt and other long-term obligations aggregated $21.2 billion, up from $21.1 billion witnessed as of Mar 31, 2022.
Subsequent to the quarter end, CCI increased the commitments under its senior unsecured revolving credit facility by $2 billion to $7 billion. Also, the maturity of its senior unsecured credit facility was extended from June 2026 to July 2027.
Guidance
CCI raised the 2022 outlook for adjusted EBITDA while maintaining its full-year guidance for AFFO per share at $7.31-$7.41 and site rental revenues at $6.242-$6.287 billion.
Management now expects adjusted EBITDA in the band of $4.329-$4.374 billion, indicating a $20 million rise at the midpoint from the prior outlook.
Crown Castle currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Crown Castle International Corporation Price, Consensus and EPS Surprise
Crown Castle International Corporation price-consensus-eps-surprise-chart | Crown Castle International Corporation Quote
Upcoming Earnings Releases
We now look forward to the earnings releases of other REITs like Alexandria Real Estate Equities, Inc. (ARE - Free Report) , slated to report on Jul 25, while Equity Residential (EQR - Free Report) and Highwoods Properties (HIW - Free Report) are scheduled on Jul 26.
The Zacks Consensus Estimate for Alexandria’s second-quarter 2022 FFO per share is pegged at $2.06, implying a year-over-year increase of 6.7%. ARE currently carries a Zacks Rank of 3 (Hold).
The Zacks Consensus Estimate for Equity Residential’s second-quarter 2022 FFO per share is pegged at 85 cents, suggesting a year-over-year increase of nearly 9%. EQR currently carries a Zacks Rank #3.
The Zacks Consensus Estimate for Highwoods’ second-quarter 2022 FFO per share stands at 98 cents, indicating a year-over-year increase of 5.4%. HIW currently has a Zacks Rank #3.
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.