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Quarterly revenues of $1.01 billion declined 4.8% from the year-ago period but surpassed the Zacks Consensus Estimate by 0.25%. Core leasing and escalators supported underlying site rental trends, even as results were weighed down by DISH-related terminations.
CCI Site Rental Trends Reflect DISH Terminations
In the first quarter of 2026, site rental revenues were $961 million, down 4.9% year over year. The decline was driven by headwinds tied to DISH terminations and a reduction in straight-lined revenues and amortization of prepaid rent.
That said, underlying leasing indicators remained constructive on an adjusted basis. Organic Contribution to Site Rental Billings was $30 million, representing 3.1% organic growth excluding the impact of Sprint cancellations and DISH terminations. The quarter included $15 million of core leasing activity and $25 million from escalators, offset by $6 million of non-renewals and a $3 million decline in other billings.
Timing And Restructuring Impact CCI’s Margin
Adjusted EBITDA came in at $675 million in the first quarter, down 6.5% year over year. Management attributed the decrease primarily to the lower contribution from site rental revenues.
Profitability metrics also reflected some timing benefits. Management noted that adjusted EBITDA and AFFO benefited from lower repair and maintenance costs, sustaining capital expenditures and other non-labor costs, with the company expecting some of those costs to occur later in the year due to seasonality. The quarter also included $14 million of restructuring charges as Crown Castle executed its previously announced organizational restructuring.
CCI Capital Spending Tilts Toward Land Ownership Efforts
Capital expenditures from continuing operations were $57 million in the first quarter, up 43% year over year. Discretionary capital expenditures totaled $50 million, while sustaining capital expenditures were $7 million, reflecting the company’s focus on investments it believes can enhance long-term value.
A key area of emphasis was land purchases. The year-over-year increase in quarterly capital spending was primarily driven by a $14 million increase in land capital expenditures. In the quarter, purchases of land interests were $32 million, up from $18 million in the year-ago period.
CCI Outlook Stays Intact as Portfolio Reset Nears
Crown Castle maintained its full-year fiscal 2026 outlook. The company continues to expect AFFO of $1.895-$1.945 billion, or $4.38-$4.49 per share. The Zacks Consensus Estimate presently stands at $4.43.
It expects site rental revenues in the range of $3.828-$3.873 billion and adjusted EBITDA in the band of $2.665-$2.715 billion, with the outlook excluding contributions from the Fiber Business that is reported in discontinued operations.
Strategic actions remain central to the 2026 narrative. Management expects the sale of its small cell and fiber businesses to close in the first half of 2026 and is planning to allocate roughly $1 billion to share repurchases and approximately $7 billion to debt repayment following the close (assumed June 30). The company also reiterated its focus on cost reductions and systems investments, including an anticipated $65 million reduction to annualized run-rate operating costs following the restructuring.
SL Green Realty Corp. (SLG - Free Report) delivered first-quarter 2026 funds from operations (FFO) per share of 84 cents, down 40% from $1.40 in the year-ago quarter. The figure missed the Zacks Consensus Estimate of $1.06.
Net rental revenues came in at $166 million, up 14.9% year over year and ahead of the Zacks Consensus Estimate of $163 million. The revenue beat arrived alongside record first-quarter leasing volume across SLG’s Manhattan office portfolio.
Prologis, Inc. (PLD - Free Report) posted first-quarter 2026 core FFO per share of $1.50, up 5.6% from $1.42 a year ago. The figure beat the Zacks Consensus Estimate of $1.48 by 1.49%.
Rental revenues came in at $2.13 billion, increasing 6.9% year over year. The top line also topped the Zacks Consensus Estimate of $2.10 billion, with a 1.12% surprise. Results were supported by robust leasing activity.
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 Q1 AFFO & Sales Beat Estimates Despite DISH Headwinds
Key Takeaways
Crown Castle Inc. (CCI - Free Report) posted first-quarter 2026 adjusted funds from operations (AFFO) per share of $1.02, down 7.3% year over year. However, the metric beat the Zacks Consensus Estimate of $1.01 by 0.99%.
Quarterly revenues of $1.01 billion declined 4.8% from the year-ago period but surpassed the Zacks Consensus Estimate by 0.25%. Core leasing and escalators supported underlying site rental trends, even as results were weighed down by DISH-related terminations.
CCI Site Rental Trends Reflect DISH Terminations
In the first quarter of 2026, site rental revenues were $961 million, down 4.9% year over year. The decline was driven by headwinds tied to DISH terminations and a reduction in straight-lined revenues and amortization of prepaid rent.
That said, underlying leasing indicators remained constructive on an adjusted basis. Organic Contribution to Site Rental Billings was $30 million, representing 3.1% organic growth excluding the impact of Sprint cancellations and DISH terminations. The quarter included $15 million of core leasing activity and $25 million from escalators, offset by $6 million of non-renewals and a $3 million decline in other billings.
Timing And Restructuring Impact CCI’s Margin
Adjusted EBITDA came in at $675 million in the first quarter, down 6.5% year over year. Management attributed the decrease primarily to the lower contribution from site rental revenues.
Profitability metrics also reflected some timing benefits. Management noted that adjusted EBITDA and AFFO benefited from lower repair and maintenance costs, sustaining capital expenditures and other non-labor costs, with the company expecting some of those costs to occur later in the year due to seasonality. The quarter also included $14 million of restructuring charges as Crown Castle executed its previously announced organizational restructuring.
CCI Capital Spending Tilts Toward Land Ownership Efforts
Capital expenditures from continuing operations were $57 million in the first quarter, up 43% year over year. Discretionary capital expenditures totaled $50 million, while sustaining capital expenditures were $7 million, reflecting the company’s focus on investments it believes can enhance long-term value.
A key area of emphasis was land purchases. The year-over-year increase in quarterly capital spending was primarily driven by a $14 million increase in land capital expenditures. In the quarter, purchases of land interests were $32 million, up from $18 million in the year-ago period.
CCI Outlook Stays Intact as Portfolio Reset Nears
Crown Castle maintained its full-year fiscal 2026 outlook. The company continues to expect AFFO of $1.895-$1.945 billion, or $4.38-$4.49 per share. The Zacks Consensus Estimate presently stands at $4.43.
It expects site rental revenues in the range of $3.828-$3.873 billion and adjusted EBITDA in the band of $2.665-$2.715 billion, with the outlook excluding contributions from the Fiber Business that is reported in discontinued operations.
Strategic actions remain central to the 2026 narrative. Management expects the sale of its small cell and fiber businesses to close in the first half of 2026 and is planning to allocate roughly $1 billion to share repurchases and approximately $7 billion to debt repayment following the close (assumed June 30). The company also reiterated its focus on cost reductions and systems investments, including an anticipated $65 million reduction to annualized run-rate operating costs following the restructuring.
Crown Castle currently carries a Zacks Rank #2 (Buy). 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
SL Green Realty Corp. (SLG - Free Report) delivered first-quarter 2026 funds from operations (FFO) per share of 84 cents, down 40% from $1.40 in the year-ago quarter. The figure missed the Zacks Consensus Estimate of $1.06.
Net rental revenues came in at $166 million, up 14.9% year over year and ahead of the Zacks Consensus Estimate of $163 million. The revenue beat arrived alongside record first-quarter leasing volume across SLG’s Manhattan office portfolio.
Prologis, Inc. (PLD - Free Report) posted first-quarter 2026 core FFO per share of $1.50, up 5.6% from $1.42 a year ago. The figure beat the Zacks Consensus Estimate of $1.48 by 1.49%.
Rental revenues came in at $2.13 billion, increasing 6.9% year over year. The top line also topped the Zacks Consensus Estimate of $2.10 billion, with a 1.12% surprise. Results were supported by robust leasing activity.
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.