SBA Communications has entered an agreement to acquire over 7,000 communications sites in Central America from Millicom International Cellular for around $975 million.
SBA is expecting annual revenue of $129 million from these sites, with $89 million projected in tower cash flow in their first full-year.
SBA has secured a seven-year telecom tower deal with Millicom, granting it the rights to build up to 2,500 new sites for the telecom firm.
SBA Communications has increased its annual revenue expectations to between $2.66 billion and $2.68 billion.
SBA has also raised its forecast for annual adjusted funds from operations, anticipating stable demand from wireless carriers driven by 5G expansion.
SBA benefits from increased demand for 5G infrastructure from U.S. carriers, including AT&T, T-Mobile, and Verizon, as these companies work to expand and enhance their networks.
SBA has reported Q3 revenue of $667.6 million (down 2.2 percent) and net income of $255.9 million. Its adjusted funds from operations (AFFO) per share reached an industry-leading $3.32.
Total site leasing revenue was $625.7 million, broken down into domestic site leasing revenue of $464.9 million and international site leasing revenue of $160.8 million.
Site development revenue fell by 7.1 percent, from $45.1 million in Q3 2023 to $41.9 million in Q3 2024.
Site leasing operating profit was $507.8 million (down 2.2 percent). This segment contributed 98.2 percent of the company’s total operating profit.
SBA acquired 51 communication sites for a total of $194.1 million in Q3 2024 and built 147 new towers.
SBA owns or operates 39,762 sites globally, with 17,477 in the U.S. and 22,285 internationally as of September 30, 2024.
The company spent $12.9 million on land purchases, easements, and extending lease terms. Total Q3 capital expenditures were $272.1 million.
Beyond the Millicom deal, SBA has acquired or is under contract to acquire 45 more sites for $16.3 million, expected to close by Q1 2025.
