We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Results reflect a rise in services and other revenues year over year. However, a decline in site rental revenues affected the results to some extent. CCI increased its outlook for 2025.
Net revenues of $1.06 billion outpaced the Zacks Consensus Estimate of $1.04 billion but fell 4.2% year over year.
Key Earnings Takeaways for CCI
During the second quarter, CCI’s total site rental revenues declined 5.3% year over year to $1.00 billion. This fall was due to a $16 million decrease in amortization of prepaid rent and a $34 million decrease in straight-lined revenues. Our estimate for total site-rental revenues was pegged at $983.5 million.
The organic contribution to site rental billings of $45 million reflected 4.7% year-over-year organic growth, excluding the $51 million impact from Sprint Cancellations.
On the other hand, services and other revenues came in at $52 million, which rose 20.9% from the prior-year quarter. Our estimate for services and other revenues was pegged at $51.5 million.
The quarterly adjusted EBITDA was down 3% year over year to $705 million.
Net interest expense and amortization of deferred financing costs rose 5.7% year over year to $243 million. Our estimate for the same was $247.3 million.
CCI’s Financial Position
Crown Castle exited the second quarter with cash and cash equivalents of $94 million, up from $60 million reported as of March 31, 2025.
Moreover, debt and other long-term obligations aggregated $22.04 billion as of June 30, 2025, decreasing 3.7% sequentially.
2025 Guidance for CCI
Crown Castle raised its guidance for 2025 AFFO per share in the range of $4.14-$4.25 compared to the prior guidance of $4.06-$4.17. The Zacks Consensus Estimate presently stands at $4.18, within the projected range.
CCI increased the site rental revenue range to $3.997-$4.042 billion compared to the previous range of $3.987-$4.032 billion. Adjusted EBITDA is estimated in the band of $2.780-$2.830 billion, up from the prior range of $2.755-$2.805 billion.
Crown Castle currently carries a Zacks Rank #4 (Sell).
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported second-quarter 2025 AFFO per share of $2.33, beating the Zacks Consensus Estimate of $2.29. However, this shows a decline from the AFFO of $2.36 reported in the prior-year quarter.
Results reflect decent leasing activity and rental rate growth. However, lower occupancy and higher interest expenses year over year undermined the results to some extent.
Prologis, Inc. (PLD - Free Report) reported second-quarter 2025 core funds from operations (FFO) per share of $1.46, outpacing the Zacks Consensus Estimate of $1.41. This also compares favorably with the year-ago quarter’s figure of $1.34.
The quarterly results reflect a rise in rental revenues and healthy leasing activity. However, high interest expenses remain the undermining factor.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Crown Castle's Q2 AFFO Surpasses Estimates, Revenues Fall Y/Y
Key Takeaways
Crown Castle Inc. (CCI - Free Report) reported second-quarter 2025 adjusted funds from operations (AFFO) per share of $1.02, which beat the Zacks Consensus Estimate of $1.00. However, the figure declined nearly 1% year over year.
Results reflect a rise in services and other revenues year over year. However, a decline in site rental revenues affected the results to some extent. CCI increased its outlook for 2025.
Net revenues of $1.06 billion outpaced the Zacks Consensus Estimate of $1.04 billion but fell 4.2% year over year.
Key Earnings Takeaways for CCI
During the second quarter, CCI’s total site rental revenues declined 5.3% year over year to $1.00 billion. This fall was due to a $16 million decrease in amortization of prepaid rent and a $34 million decrease in straight-lined revenues. Our estimate for total site-rental revenues was pegged at $983.5 million.
The organic contribution to site rental billings of $45 million reflected 4.7% year-over-year organic growth, excluding the $51 million impact from Sprint Cancellations.
On the other hand, services and other revenues came in at $52 million, which rose 20.9% from the prior-year quarter. Our estimate for services and other revenues was pegged at $51.5 million.
The quarterly adjusted EBITDA was down 3% year over year to $705 million.
Net interest expense and amortization of deferred financing costs rose 5.7% year over year to $243 million. Our estimate for the same was $247.3 million.
CCI’s Financial Position
Crown Castle exited the second quarter with cash and cash equivalents of $94 million, up from $60 million reported as of March 31, 2025.
Moreover, debt and other long-term obligations aggregated $22.04 billion as of June 30, 2025, decreasing 3.7% sequentially.
2025 Guidance for CCI
Crown Castle raised its guidance for 2025 AFFO per share in the range of $4.14-$4.25 compared to the prior guidance of $4.06-$4.17. The Zacks Consensus Estimate presently stands at $4.18, within the projected range.
CCI increased the site rental revenue range to $3.997-$4.042 billion compared to the previous range of $3.987-$4.032 billion. Adjusted EBITDA is estimated in the band of $2.780-$2.830 billion, up from the prior range of $2.755-$2.805 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
Performance of Other REITs
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported second-quarter 2025 AFFO per share of $2.33, beating the Zacks Consensus Estimate of $2.29. However, this shows a decline from the AFFO of $2.36 reported in the prior-year quarter.
Results reflect decent leasing activity and rental rate growth. However, lower occupancy and higher interest expenses year over year undermined the results to some extent.
Prologis, Inc. (PLD - Free Report) reported second-quarter 2025 core funds from operations (FFO) per share of $1.46, outpacing the Zacks Consensus Estimate of $1.41. This also compares favorably with the year-ago quarter’s figure of $1.34.
The quarterly results reflect a rise in rental revenues and healthy leasing activity. However, high interest expenses remain the undermining factor.
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.