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Crown Castle's Q3 AFFO Beats Estimates on Lower Expenses
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Key Takeaways
Crown Castle's Q3 AFFO per share rose 10.7% to $1.24, beating estimates by 3.3% on lower interest costs.
CCI's revenues fell 7.2% to $995 million as DISH terminations and Sprint cancellations hurt site rentals.
CCI raised its 2026 AFFO outlook to $1.955-$2.005 billion and EBITDA guidance to $2.690-$2.740 billion.
Crown Castle Inc. (CCI - Free Report) reported third-quarter 2026 adjusted funds from operations (AFFO) per share of $1.24, up 10.7% year over year. The metric surpassed the Zacks Consensus Estimate of $1.20 by 3.3%. Results benefited from lower interest expenses.
Quarterly revenues of $995 million declined 7.2% year over year and missed the consensus estimate of $1.01 billion by 1.4%. The decline was due to lower site rental revenues and services revenues.
CCI Site Rental Revenues Face Tenant Headwinds
Site rental revenues were $966 million, down 4.5% year over year. The decline reflected a $61 million unfavorable impact from DISH terminations, a $5 million impact from Sprint cancellations and a $17 million decrease in non-cash straight-lined revenues and amortization of prepaid rent.
Organic Contribution to Site Rental Billings, adjusted for DISH terminations and Sprint cancellations, totaled $35 million, representing 3.5% growth. Excluding DISH revenues from the prior-year comparison, organic growth was 3.8%. The adjusted metric included $16 million from core leasing activity, $25 million from escalators and a $7 million drag from non-renewals.
Services and other revenues fell to $29 million from $60 million in the prior-year quarter, further weighing on the company's overall revenue performance.
CCI’s EBITDA Declines Despite Cost Savings
Adjusted EBITDA was $673 million, down 6.3% from $718 million in the prior-year quarter. Management attributed the decrease primarily to lower contributions from site rental revenues and services, partially offset by reduced selling, general and administrative (SG&A) expenses.
SG&A expenses declined to $82 million from $97 million. Interest expense and amortization of deferred financing costs declined to $177 million from $247 million.
CCI Capital Spending Rises on Land Acquisitions
Capital expenditures from continuing operations totaled $66 million, up 57.1% year over year. The total included $58 million of discretionary capital expenditures and $8 million of sustaining capital expenditures.
The increase was primarily driven by a $24 million rise in land capital expenditures. Purchases of land interests reached $40 million compared with $16 million in the prior-year quarter.
CCI Maintains a Strong Balance Sheet
Crown Castle ended the third quarter with 97% fixed-rate debt and a weighted-average debt maturity of approximately seven years. The company had roughly $3.9 billion available under its revolving credit facility.
CCI also paid approximately $452 million in common stock dividends during the third quarter, equivalent to $1.0625 per share.
CCI Raises Its 2026 AFFO and EBITDA Outlook
Crown Castle raised the midpoint of its full-year 2026 AFFO outlook by $5 million. The company now expects AFFO between $1.955 billion and $2.005 billion compared with its previous range of $1.950-$2.000 billion. AFFO per share is projected between $4.54 and $4.66. The Zacks Consensus Estimate is pinned at $4.57 presently.
The site rental revenue outlook was raised by $20 million at the midpoint to a range of $3.853-$3.898 billion. Adjusted EBITDA guidance was increased $25 million at the midpoint to $2.690-$2.740 billion.
Prologis, Inc. (PLD - Free Report) reported third-quarter 2026 core funds from operations (FFO) of $1.60 per share, up 7.4% from $1.49 a year earlier. The figure surpassed the Zacks Consensus Estimate of $1.58 by 1.3%.
Rental revenues rose 7.4% year over year to $2.21 billion, exceeding the $2.20 billion consensus estimate by 0.2%. Results benefited from higher rental revenues, steady leasing demand and improved occupancy levels. PLD currently carries a Zacks Rank #3.
Upcoming Earnings Release
We now look forward to the earnings release of other REITs, such as American Tower (AMT - Free Report) , which is slated to report on Oct. 27, 2026.
The Zacks Consensus Estimate for AMT’s third-quarter 2026 FFO per share is pegged at $2.84, which suggests a year-over-year increase of 2.2%. AMT currently carries a Zacks Rank #2 (Buy).
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
View the Zacks #1 Rank List
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Crown Castle's Q3 AFFO Beats Estimates on Lower Expenses
Key Takeaways
Crown Castle Inc. (CCI - Free Report) reported third-quarter 2026 adjusted funds from operations (AFFO) per share of $1.24, up 10.7% year over year. The metric surpassed the Zacks Consensus Estimate of $1.20 by 3.3%. Results benefited from lower interest expenses.
Quarterly revenues of $995 million declined 7.2% year over year and missed the consensus estimate of $1.01 billion by 1.4%. The decline was due to lower site rental revenues and services revenues.
CCI Site Rental Revenues Face Tenant Headwinds
Site rental revenues were $966 million, down 4.5% year over year. The decline reflected a $61 million unfavorable impact from DISH terminations, a $5 million impact from Sprint cancellations and a $17 million decrease in non-cash straight-lined revenues and amortization of prepaid rent.
Organic Contribution to Site Rental Billings, adjusted for DISH terminations and Sprint cancellations, totaled $35 million, representing 3.5% growth. Excluding DISH revenues from the prior-year comparison, organic growth was 3.8%. The adjusted metric included $16 million from core leasing activity, $25 million from escalators and a $7 million drag from non-renewals.
Services and other revenues fell to $29 million from $60 million in the prior-year quarter, further weighing on the company's overall revenue performance.
CCI’s EBITDA Declines Despite Cost Savings
Adjusted EBITDA was $673 million, down 6.3% from $718 million in the prior-year quarter. Management attributed the decrease primarily to lower contributions from site rental revenues and services, partially offset by reduced selling, general and administrative (SG&A) expenses.
SG&A expenses declined to $82 million from $97 million. Interest expense and amortization of deferred financing costs declined to $177 million from $247 million.
CCI Capital Spending Rises on Land Acquisitions
Capital expenditures from continuing operations totaled $66 million, up 57.1% year over year. The total included $58 million of discretionary capital expenditures and $8 million of sustaining capital expenditures.
The increase was primarily driven by a $24 million rise in land capital expenditures. Purchases of land interests reached $40 million compared with $16 million in the prior-year quarter.
CCI Maintains a Strong Balance Sheet
Crown Castle ended the third quarter with 97% fixed-rate debt and a weighted-average debt maturity of approximately seven years. The company had roughly $3.9 billion available under its revolving credit facility.
CCI also paid approximately $452 million in common stock dividends during the third quarter, equivalent to $1.0625 per share.
CCI Raises Its 2026 AFFO and EBITDA Outlook
Crown Castle raised the midpoint of its full-year 2026 AFFO outlook by $5 million. The company now expects AFFO between $1.955 billion and $2.005 billion compared with its previous range of $1.950-$2.000 billion. AFFO per share is projected between $4.54 and $4.66. The Zacks Consensus Estimate is pinned at $4.57 presently.
The site rental revenue outlook was raised by $20 million at the midpoint to a range of $3.853-$3.898 billion. Adjusted EBITDA guidance was increased $25 million at the midpoint to $2.690-$2.740 billion.
Crown Castle currently carries a Zacks Rank #3 (Hold). 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
Prologis, Inc. (PLD - Free Report) reported third-quarter 2026 core funds from operations (FFO) of $1.60 per share, up 7.4% from $1.49 a year earlier. The figure surpassed the Zacks Consensus Estimate of $1.58 by 1.3%.
Rental revenues rose 7.4% year over year to $2.21 billion, exceeding the $2.20 billion consensus estimate by 0.2%. Results benefited from higher rental revenues, steady leasing demand and improved occupancy levels. PLD currently carries a Zacks Rank #3.
Upcoming Earnings Release
We now look forward to the earnings release of other REITs, such as American Tower (AMT - Free Report) , which is slated to report on Oct. 27, 2026.
The Zacks Consensus Estimate for AMT’s third-quarter 2026 FFO per share is pegged at $2.84, which suggests a year-over-year increase of 2.2%. AMT currently carries a Zacks Rank #2 (Buy).
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.