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Crown Castle's (CCI) Q4 AFFO Beat, Site-Rental Revenues Up
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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.
Crown Castle Inc. Price, Consensus and EPS Surprise
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 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's (CCI) Q4 AFFO Beat, Site-Rental Revenues Up
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.
Crown Castle Inc. Price, Consensus and EPS Surprise
Crown Castle Inc. price-consensus-eps-surprise-chart | Crown Castle Inc. Quote
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.