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Crown Castle Inc. (CCI - Free Report) reported third-quarter 2022 adjusted funds from operations (AFFO) per share of $1.85, beating the Zacks Consensus Estimate of $1.83.
The net revenues of $1.75 billion, too, exceeded the Zacks Consensus Estimate of $1.74 billion.
Reported AFFO per share compared favorably with the year-ago period’s $1.77. Net revenues climbed 7.9% from the prior-year quarter’s $1.62 billion.
The rise in site-rental revenues amid elevated tower space demand aided CCI’s year-over-year top-line growth. It also announced a hike in its quarterly cash dividend payment.
Per Jay Brown, chief executive officer of the company, “We delivered strong results in the third quarter and increased our annualized common stock dividend by 6.5% to $6.26 per share. I believe we remain in the early stages of 5G development in the U.S., providing a long runway of growth in demand for our comprehensive communications infrastructure offering across towers, small cells and fiber.”
Quarter in Detail
During the third quarter, CCI’s site-rental revenues came in at $1.57 billion, up 8.1% year over year. The organic contribution of $67 million to the site rental revenues reflected 5.3% growth. Furthermore, services and other revenues climbed 6.6% to $178 million.
CCI’s quarterly operating expenses increased 4.8% year over year to $1.14 billion. The operating income climbed 14.4% to $602 million. The quarterly adjusted EBITDA of $1.1 billion marked a 10.3% year-over-year increase primarily due to growth in site rental revenues and higher services contribution.
Crown Castle reported capital expenditures of $337 million in the quarter. This comprised discretionary capital expenditures of $314 million and sustaining capital expenditures of $23 million. Discretionary capital expenditures primarily attributable to Fiber were around $267 million, and that to Towers was roughly $42 million.
Balance Sheet
Crown Castle exited third-quarter 2022 with cash and cash equivalents of $174 million, down from $281 million reported as of Jun 30, 2022.
Moreover, debt and other long-term obligations aggregated $20.7 billion, down from $21.2 billion witnessed as of Jun 30, 2022.
Dividend Update
Concurrent with its third-quarter earnings release, Crown Castle’s board of directors announced a 6.5% increase over its prior quarterly cash dividend of $1.47 per share. The new dividend of $1.565 per share will be paid out on Dec 30 to common stockholders on record as of Dec 15, 2022.
Guidance
Crown Castle maintained its outlook for 2022.
It expects AFFO per share in the range of $7.31-$7.41. The Zacks Consensus Estimate for the same is pegged at $7.36, which lies within the guided range.
Site rental revenues are expected to lie between $6.242 billion and $6.287 billion while the adjusted EBITDA is projected in the band of $4.329-$4.374 billion.
Crown Castle currently carries a Zacks Rank #4 (Sell).
We now look forward to the earnings releases of other REITs like Alexandria Real Estate Equities, Inc. (ARE - Free Report) and Boston Properties, Inc. (BXP - Free Report) , slated to report on Oct 24 and Oct 25, respectively. Extra Space Storage (EXR - Free Report) is scheduled on Nov 1.
The Zacks Consensus Estimate for Alexandria’s third-quarter 2022 FFO per share is pegged at $2.12, implying a year-over-year increase of 8.7%. ARE currently carries a Zacks Rank of 3 (Hold).
The Zacks Consensus Estimate for Boston Properties’ third-quarter 2022 FFO per share stands at $1.87, indicating a year-over-year increase of 8.1%. BXP currently has a Zacks Rank #3.
The Zacks Consensus Estimate for Extra Space Storage’s third-quarter 2022 FFO per share is pegged at $2.18, suggesting a year-over-year increase of 17.8%. EXR currently carries 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 (CCI) Beats on Q3 FFO & Revenues, Hikes Dividend
Crown Castle Inc. (CCI - Free Report) reported third-quarter 2022 adjusted funds from operations (AFFO) per share of $1.85, beating the Zacks Consensus Estimate of $1.83.
The net revenues of $1.75 billion, too, exceeded the Zacks Consensus Estimate of $1.74 billion.
Reported AFFO per share compared favorably with the year-ago period’s $1.77. Net revenues climbed 7.9% from the prior-year quarter’s $1.62 billion.
The rise in site-rental revenues amid elevated tower space demand aided CCI’s year-over-year top-line growth. It also announced a hike in its quarterly cash dividend payment.
Per Jay Brown, chief executive officer of the company, “We delivered strong results in the third quarter and increased our annualized common stock dividend by 6.5% to $6.26 per share. I believe we remain in the early stages of 5G development in the U.S., providing a long runway of growth in demand for our comprehensive communications infrastructure offering across towers, small cells and fiber.”
Quarter in Detail
During the third quarter, CCI’s site-rental revenues came in at $1.57 billion, up 8.1% year over year. The organic contribution of $67 million to the site rental revenues reflected 5.3% growth. Furthermore, services and other revenues climbed 6.6% to $178 million.
CCI’s quarterly operating expenses increased 4.8% year over year to $1.14 billion. The operating income climbed 14.4% to $602 million. The quarterly adjusted EBITDA of $1.1 billion marked a 10.3% year-over-year increase primarily due to growth in site rental revenues and higher services contribution.
Crown Castle reported capital expenditures of $337 million in the quarter. This comprised discretionary capital expenditures of $314 million and sustaining capital expenditures of $23 million. Discretionary capital expenditures primarily attributable to Fiber were around $267 million, and that to Towers was roughly $42 million.
Balance Sheet
Crown Castle exited third-quarter 2022 with cash and cash equivalents of $174 million, down from $281 million reported as of Jun 30, 2022.
Moreover, debt and other long-term obligations aggregated $20.7 billion, down from $21.2 billion witnessed as of Jun 30, 2022.
Dividend Update
Concurrent with its third-quarter earnings release, Crown Castle’s board of directors announced a 6.5% increase over its prior quarterly cash dividend of $1.47 per share. The new dividend of $1.565 per share will be paid out on Dec 30 to common stockholders on record as of Dec 15, 2022.
Guidance
Crown Castle maintained its outlook for 2022.
It expects AFFO per share in the range of $7.31-$7.41. The Zacks Consensus Estimate for the same is pegged at $7.36, which lies within the guided range.
Site rental revenues are expected to lie between $6.242 billion and $6.287 billion while the adjusted EBITDA is projected in the band of $4.329-$4.374 billion.
Crown Castle currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Crown Castle Inc. Price, Consensus and EPS Surprise
Crown Castle Inc. price-consensus-eps-surprise-chart | Crown Castle Inc. Quote
Upcoming Earnings Releases
We now look forward to the earnings releases of other REITs like Alexandria Real Estate Equities, Inc. (ARE - Free Report) and Boston Properties, Inc. (BXP - Free Report) , slated to report on Oct 24 and Oct 25, respectively. Extra Space Storage (EXR - Free Report) is scheduled on Nov 1.
The Zacks Consensus Estimate for Alexandria’s third-quarter 2022 FFO per share is pegged at $2.12, implying a year-over-year increase of 8.7%. ARE currently carries a Zacks Rank of 3 (Hold).
The Zacks Consensus Estimate for Boston Properties’ third-quarter 2022 FFO per share stands at $1.87, indicating a year-over-year increase of 8.1%. BXP currently has a Zacks Rank #3.
The Zacks Consensus Estimate for Extra Space Storage’s third-quarter 2022 FFO per share is pegged at $2.18, suggesting a year-over-year increase of 17.8%. EXR currently carries 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.