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.
Crown Castle sold small cells and fiber units for $8.5B, becoming a pure-play U.S. tower company.
CCI plans $1B share buybacks and more than $7B debt reduction using proceeds from the deal.
CCI raised 2026 AFFO/share outlook to $4.53-$4.65, aided by lower interest costs and higher interest income.
Crown Castle Inc. (CCI - Free Report) announced the successful closure of the disposition of its small cells and fiber solutions business for $8.5 billion. In the transaction, EQT Active Core Infrastructure Fund acquired the small cells business, and Zayo Group Holdings, Inc. purchased the fiber solutions business, each for $4.25 billion. The move resulted in Crown Castle emerging as a pure-play, U.S. tower company.
Crown Castle plans to use the funds for share buybacks and debt repayment. CCI expects to implement a $1 billion share repurchase program and curtail its outstanding debt by more than $7 billion.
The above move will enable CCI to focus on its core portfolio with disciplined execution, faster decision-making and improved operational agility.
Along with the closure of the above transaction, CCI also updated its 2026 outlook. It highlighted that the above transaction will lower interest expenses by $40 million for 2026 due to the expected earlier repayment of debt obligations by two months. The interest income is expected to increase by $10 million in 2026 due to the earlier investment of sale transaction proceeds. CCI has raised its initial 2026 AFFO per share guidance to the $4.53-$4.65 range from the earlier guided range of $4.38-$4.49, up 16 cents at the midpoint. The Zacks Consensus Estimate presently stands at $4.43.
Over the past month, shares of this Zacks Rank #3 (Hold) company have gained 13.9% compared with the industry's growth of 7.1%.
The Zacks Consensus Estimate for American Tower’s 2026 FFO per share is pegged at $10.95, which indicates year-over-year growth of 1.8%.
The consensus estimate for PLD’s full-year FFO per share is pinned at $6.17, which calls for an increase of 6.2% from the year-ago period.
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.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Crown Castle Closes $8.5B Divestiture, Raises 2026 AFFO View
Key Takeaways
Crown Castle Inc. (CCI - Free Report) announced the successful closure of the disposition of its small cells and fiber solutions business for $8.5 billion. In the transaction, EQT Active Core Infrastructure Fund acquired the small cells business, and Zayo Group Holdings, Inc. purchased the fiber solutions business, each for $4.25 billion. The move resulted in Crown Castle emerging as a pure-play, U.S. tower company.
Crown Castle plans to use the funds for share buybacks and debt repayment. CCI expects to implement a $1 billion share repurchase program and curtail its outstanding debt by more than $7 billion.
The above move will enable CCI to focus on its core portfolio with disciplined execution, faster decision-making and improved operational agility.
Along with the closure of the above transaction, CCI also updated its 2026 outlook. It highlighted that the above transaction will lower interest expenses by $40 million for 2026 due to the expected earlier repayment of debt obligations by two months. The interest income is expected to increase by $10 million in 2026 due to the earlier investment of sale transaction proceeds. CCI has raised its initial 2026 AFFO per share guidance to the $4.53-$4.65 range from the earlier guided range of $4.38-$4.49, up 16 cents at the midpoint. The Zacks Consensus Estimate presently stands at $4.43.
Over the past month, shares of this Zacks Rank #3 (Hold) company have gained 13.9% compared with the industry's growth of 7.1%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader REIT sector are American Tower (AMT - Free Report) and Prologis (PLD - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for American Tower’s 2026 FFO per share is pegged at $10.95, which indicates year-over-year growth of 1.8%.
The consensus estimate for PLD’s full-year FFO per share is pinned at $6.17, which calls for an increase of 6.2% from the year-ago period.
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.