SBA Communications at JPMorgan Conference: Strategic Moves and Challenges

On Tuesday, 13 May 2025, SBA Communications (NASDAQ:SBAC) participated in the 53rd Annual JPMorgan Global Technology, Media and Communications Conference. During the event, CFO Marc Montagnier outlined the company’s strategic priorities, focusing on debt repayment, share buybacks, and strategic mergers and acquisitions, notably the Millicom acquisition. While expressing optimism about SBA’s strong cash flow and growth potential, Montagnier acknowledged challenges in international markets, particularly in Brazil.

Key Takeaways

• SBA Communications plans to allocate $650 million in 2025, focusing on debt repayment, share buybacks, and M&A.
• The company anticipates an inflection point in new lease revenue, with growth expected to accelerate in late 2025.
• International operations face challenges, especially in Brazil, due to market consolidation and churn.
• The Millicom acquisition in Central America is seen as a growth opportunity, with 2,500 build-to-suit sites planned.
• SBA’s dividend is expected to grow at double-digit rates, reflecting growth in AFFO and AFFO per share.

Financial Results

• EBITDA: Expected to reach approximately $1 billion, consistent with 2024.
• Capital Expenditures: Maintenance CapEx is projected at $50 million, while growth CapEx is around $250 million.
• Cash Flow: Cash interest expense is approximately $430 million, with $500 million allocated for dividends.
• Debt and Buybacks: SBA repaid $600 million of debt in 2023 and announced a new $1 billion share buyback program following recent buybacks totaling $425 million.
• Sprint Churn Impact: Expected to impact revenue by $51 million in 2025 and $50 million in 2026.

Operational Updates

• 5G Deployment: T-Mobile, Verizon, and AT&T are at various stages of 5G deployment, influencing SBA’s tower business.
• International Expansion: Plans to build 800 new sites outside the U.S., with significant growth in Tanzania.
• Brazil Challenges: Market consolidation from four to three operators is causing elevated churn levels.

Future Outlook

• Capital Allocation: Continued focus on debt repayment, share buybacks, and strategic acquisitions.
• Dividend Growth: Expected to increase at double-digit rates, in line with AFFO growth.
• U.S. Growth: Anticipates mid-single-digit growth driven by escalators and new lease activity.

Q&A Highlights

• Carrier Relationships: Described as being in a "good spot," with positive trends in lease applications.
• M&A Environment: Public markets are improving, though private markets remain more favorable.

In conclusion, SBA Communications is navigating both opportunities and challenges as it implements its strategic plans. For further details, refer to the full transcript below.

Full transcript - 53rd Annual JPMorgan Global Technology, Media and Communications Conference:

Richard Cho, Analyst, JPMorgan: Hi. Welcome. My name is Richard Cho. I cover communications infrastructure for JPMorgan. I’d like to introduce Mark Montagnier from SBA Communications.

Marc, you were appointed CFO at the beginning of last year. Just wanted to go over kind of what your priorities were since you were appointed CFO and what your priorities are for this year.

Marc Montagnier, CFO, SBA Communications: Thank you, Richard, for having me. Good to be here. I think the priorities, as far as I’m concerned, is really capital allocation. I think SBA as the tower business is a fantastic business, 85% gross margin, 70% EBITDA margins. We are massively free cash flow positive, and you need to make sure you allocate capital to create value for the long term.

So I think capital allocation is the number one priority. I’m just I’m going to give you a few numbers just to anchor you on the business. And those numbers are all public from the guidance of our other conference. Basically, it’s about $1,000,000,000 of EBITDA, midpoint of the guidance, rough numbers. Numbers were not dissimilar in 2024.

Then maintenance CapEx is about $50,000,000 growth CapEx about $250,000,000 cash interest expense about $430,000,000 this year. The dividend is about $500,000,000 and you have about $40,000,000 of cash taxes. That gives you about $650,000,000 of capital to allocate in 2025. Last year, it was closer to $700,000,000 because the dividend was only $425,000,000 So look at what the company has done in the last three years. Twenty twenty three, in a rising rate environment, we paid down $600,000,000 of debt.

We did $100,000,000 share buyback. 2024, we did $200,000,000 share buyback, about $200,000,000 of M and A, and we paid down debt. So far this year, I think we just finished $125,000,000 share buyback and we announced a new 1,000,000,000 share buyback because the old one was basically pretty much all completed. We also announced last year the acquisition of towers from Millicom in Central America for $975,000,000 So we had about over $600,000,000 of cash on the balance sheet at the March, plus Antap two billion dollars revolver that’s going to help us fund the Medicom acquisition. In our outlook, it’s supposed to close November September one of this year.

So the capital is called for 2025. And going forward, I think we have ample liquidity, dollars 2,000,000,000 NTAP revolver and plenty of cash. So the first maturity is with the $750,000,000 ABS maturing in January of next year. That could be either refinanced in the ABS market if the rates were attractive. Otherwise, we just use cash on hand and the revolver to pay it down.

So I think capital allocation is how we think we’re going to create value in the long term, and we want to be very disciplined in terms of allocating to these three buckets: paying down debt in case the refinancing market are not attractive share buyback if there’s disruption or if we like the value of our stock And M and A to the extent that they create value for the long term. And Millicom, I’ll talk about it later, was a good example of a transaction that was accretive to the long term value of our company.

Richard Cho, Analyst, JPMorgan: Yes. No, something we might talk a little bit more about later, but SBA has always been very opportunistic with its capital. And I think you took advantage of the April disruption. And as you said, you have the M and A call for. But I guess part of being able to take advantage of this is that, as you first mentioned, that The U.

S. Tower business is very stable. But I think people forget it does go in some cycles. Can you talk a little bit about where you feel like The U. S.

Tower business is in this current five gs cycle?

Marc Montagnier, CFO, SBA Communications: Yes, sure. Just look at the I’ve been in the telecom industry, the wireless industry, in and out for for thirty years now, so I’ve seen many cycles, two gs, three gs, four gs, five gs. And usually carriers get a new band of spectrum. They roll out a new technology, a new generation. And the cycle usually lasts about ten years, and it’s really a step function.

You get the new band of spectrum. You roll out a new technology. You cram more bits per hertz. You get a capacity increase of about 10x. You it’s like a CapEx step.

You stop CapEx or you just minimum CapEx for a few years where you fill up this capacity. And eventually, you need to do density filling, extra coverage in order to take it to the next step. And it takes usually, it’s a ten year cycle. So the and if you look back at wireless CapEx as a percentage of revenue, Europe, U. S, other market, it runs between 15% of revenue to 25% of revenue.

And 2022, ’20 ’20 ’3, it was running towards close to 25%. The Big three spend €40,000,000,000 plus of CapEx every year. They got massive increase in capacity in 2024. It was like less than 15%, fourteen %. It’s probably the lowest level I’ve ever seen.

And the carriers, I think, just strengthened their balance sheet and basically started filling that capacity. What we’re seeing now is more the level of application is from the carriers is growing at double digit, has been growing at double digit for a few quarters now. And given the book to bill cycle, it takes six to nine months for basically to see that being reflecting into the numbers. So the fourth quarter of twenty twenty four was a trough. It was the lowest level in terms of new revenue from new leases.

And I think the beauty is that the first quarter of twenty twenty five had an inflection point. Finally, billings have started to pick up again. The level of applications are still coming in, still increasing. So I think it means that the run rate coming out of 2025 should be higher than the run rate we’re in the first quarter of twenty twenty four. So if you ask me where are we in the cycle, we definitely or before the midpoint.

So it seems like we have a pretty long way to go.

Richard Cho, Analyst, JPMorgan: And it’s nice that you’re seeing these applications kind of ahead of the revenue coming in. So it gives you good visibility. As you said early in the cycle, it’s that coverage and kind of amendment period, but it seems like you’re seeing more colocations now. Can you talk a little bit about that mix that you’re seeing?

Marc Montagnier, CFO, SBA Communications: Yes. I think we said publicly that 75 of our new lease revenue in the first quarter was tied to a co location, new leases. So it’s pretty broad based. It’s coverage, intensification. I think it’s a good sign, I think, for the industry and for the tower industry and the wires industry.

Richard Cho, Analyst, JPMorgan: AMT spoke earlier and they have MLAs with carriers that I think are structured a little differently than yours. Can you talk about SBA’s approach to your carrier customers and how what kind of contracts are with them right now? So I think we have

Marc Montagnier, CFO, SBA Communications: an MLA with AT and T. It gives them a lot of flexibility in terms of rolling out five gs quickly. With and it’s really a case by case basis. We have rate card, but we’re open to MLA. As long as it’s NPV positive, we are willing to enter into long term MLAs, but it’s really on a case by case basis.

Richard Cho, Analyst, JPMorgan: Got it. And just to touch on the AT and T a little bit, it’s the rollout of five gs, but anything in terms of densification or other stuff that wouldn’t be part of it?

Marc Montagnier, CFO, SBA Communications: Amendment would be part of the MLA densification, new leases, COLO would be excluded. And I guess

Richard Cho, Analyst, JPMorgan: in terms of each of the carriers, I think T Mobile is kind of furthest along, Verizon is about halfway and AT and T is kind of back. Is that kind of the similar case for your their rollout on your towers?

Marc Montagnier, CFO, SBA Communications: We don’t have full visibility on their network. We can only see what they’re doing on our towers. And I think on the SBA network, I think is probably at 85% deployment of five gs on the 2.5 spectrum. We haven’t seen any deployment on the C block. Verizon is probably at the 70% level today, roughly, and AT and T less than 50%, between 4550%.

So AT and T is playing catch up right now.

Richard Cho, Analyst, JPMorgan: Given what you said about the new applications and how this year is going to play out, it seems like going into next year, while you still have some Sprint related churn, that a lot of if the trends hold, that next year could be a better year than this year, but hard to say where exactly.

Marc Montagnier, CFO, SBA Communications: Well, it’s hard to say where. We don’t give guidance for 2026 until February of next year. But I think the Sprint churn, it’s contracted. I think we have pretty good visibility. We guided towards $51,000,000 midpoints of spring churn this year, about another $50,000,000 in 2026 and then $20,000,000 remaining twenty twenty seven and four.

So I think it’s really ’25 ’20 ’6 all the two years where you’re still going to see significant spring churn. But I think the good news is that outside of spring, the non Sprint churn in The U. S. Is trading lower and lower every year and is getting closer to 1% of revenue, which is a good sign.

Richard Cho, Analyst, JPMorgan: No, that’s great because it’s been anywhere from 1% to 2%. Having it being closer to the 1% is One of the things that, I guess, you mentioned is capital allocation. But sticking to The U. S, do you see any kind of build to suit or smaller opportunities in The U. S?

Or is the private market still kind of too highly priced?

Marc Montagnier, CFO, SBA Communications: I mean, on the M and A side in The U. S, I think you have a scarcity of M and A opportunities and you have a lot of private equity capital looking to deploy capital in the space when they do M and A deal, could level that up 10 to 12x. So it’s very difficult for us to compete on the M and A front. And on the build to suit, we still build tower but new sites, but it’s very minimum on our side. We are very disciplined in terms of the return we’re trying to seek.

So we don’t see a lot of new build opportunities in The U. S. Market. That being said, outside of The U. S, our guidance calls for 800 new sites being built overall across our network.

Richard Cho, Analyst, JPMorgan: And I guess, moving to the international part, you have assets in Canada and Latin America and your the pending Millicom acquisition, how should investors look at your international business? And where do you see kind of maybe the most opportunity as this merger kind of closes?

Marc Montagnier, CFO, SBA Communications: Right. So I think internationally, about 15% of our revenues come from Brazil. That’s our largest market outside of The U. S. About 80% of our revenue are U.

S. Denominated, same thing for EBITDA. Brazil, with 12,000 sites, we’re number two behind American Tower with 18,000 sites. Long term, I think Brazil is the largest economy in Latin America, high GDP per capita, exporter of agricultural product, oil, minerals. So I think Brazil is going to do very well in the long term.

We face headwind in 2024 and 2025. The market is going through consolidation from four to three. So Oi, which is a company we indexed to, has been carved to the other three operators, Claro, Vivo and TIM. So we’re going to face elevated level of churn in Brazil for the next few years. And last year, unfortunately, Brazil the Brazilian real was the worst performing currency of all foreign currency, was down 23%.

We started the year at 4.9 to the dollars, ended up at 6.2 the dollars. I think government deficit was running at 9% of GDP. So the Central Bank has raised rates short term rates about 14%. Currency is appreciated this year, so we may see a little bit of upside from there. I think our guidance is the real at 5.75%, it’s probably at 5.65% today.

So the currency is doing better. And we have good relationship with Tim, Vivon and Claro, which just we have to work our way through the oil churn. And then you have Central America. We agreed to buy 7,000 sites from Millicom. We paid about 11.5x EBITDA.

We have a fifteen year contract with Millicom in U. S. Dollars with a CPI link escalator. Also, they have a commitment to give us 2,500 BTS. What we like about Central America, we have a presence there already.

We have just consolidated our presence there. We are the dominant tower company in Central America. Those markets have been consolidated at the wireless operator level. We have two operators, Medicom and Claro, which is part of the America Movilet empire. And we like the economics of those markets.

It’s U. S. Dollar, an escalator, very attractive valuation that should close before September 1. We’re pretty excited about it. And then Africa is a growing market for us.

Good presence in South Africa. Also we’re going to build about probably 500 sites in or between 405 sites in Central America this year. And the number one the number two market where we are going to add a large number of sites is Tanzania. This is heavily supported by the Tanzanian government. Building of wireless is a real critical infrastructure there, trying to expand coverage.

And our operations are growing at double digits there. South Africa has been a very good market for us, too, historically. And then we have smaller market in Chile, Equator One and Peru.

Richard Cho, Analyst, JPMorgan: Going back to Brazil a little bit. In terms of once you’re through the consolidation there, do you see that as a kind of mid- or high single digit growing market long term, obviously not near term because of the churn, but given their economy and the way trade is kind of shifting towards there?

Marc Montagnier, CFO, SBA Communications: I believe so. Brazil is a growth economy. It’s an emerging market. Five gs is probably at a 20%, twenty five % rollout mark. So I think at some point, there will be growth again.

It’s just a question of working out the churn and waiting for that market to recover, that economy to recover a little bit.

Richard Cho, Analyst, JPMorgan: Makes sense. You talked a little bit about getting back to a 70% EBITDA margin. You’re running a little bit under that. Is that mainly just because of the Sprint churn now? And once these The U.

S. Churn kind of falls away, you expect to be back there? It’s two things. One is churn.

Marc Montagnier, CFO, SBA Communications: And then as part of the Medicom transaction, we have some extra G and A in the region because we’re doing a lot of zoning application to build those sites. So we’re starting to incur G and A costs before the transaction close. But nothing is going to normalize again to 70% mark going forward.

Richard Cho, Analyst, JPMorgan: Great. And I guess one of the things is that SBA has been kind of comfortable with a higher level of leverage than some of your peers. How are you thinking about if rates kind of stay relatively steady, but who knows? Right now, you’re at like 6.4x. What should we kind of expect over the next few years?

Marc Montagnier, CFO, SBA Communications: Well, I think leverage is more an output than an input. I think the input is really cash interest expenses. So if interest rates were to come down, I think we’d be comfortable with more leverage buying back share and doing more M and A. I think if interest rates keep increasing, there’s, I think, benefit in paying down debt in order to minimize your cash interest expenses. It really depends where interest rates are going to go.

And just look at our first seven fifty maturity in January of twenty twenty six. If interest rates are elevated, we’re just going to pay it down. If interest rates are low, we’re happy to just refi that and use the extra cash to either to share buyback or look at attractive M and A opportunities. At the end of the day, allocation, we have these three levers: share buyback, paying down debt and M and A. And it really depends on the opportunities.

We want to be flexible.

Richard Cho, Analyst, JPMorgan: That makes sense. I guess given the Millicom transaction, is it kind of a little bit less likely that you’ll be looking at other transactions until this one’s digested a little bit? Or it just really depends on what opportunities are available and the overall positioning of the company?

Marc Montagnier, CFO, SBA Communications: Well, really depends on what’s available. But to be candid with you right now in U. S. And Canada, valuations or in the private market are very stretched given the large availability of capital, private capital chasing those opportunity and the opportunity they have to put 10 or 12 terms of leverage on their acquisition. Outside of The U.

S, I don’t see us expanding in new emerging markets. I think Brendan Cavanaugh, our CEO, at his first earnings call announced that we’re doing a portfolio review. That was February of twenty twenty four. And I think the idea is that in markets where we are the dominant tower operator, number one or number two, you have a better dialogue with the wireless operator, you have more an opportunity to capture more growth and be in the flow. If you have a smaller market share, they don’t really need to talk to you.

They just go around you. So that’s the reason we sold in the last twelve months. We sold The Philippines. We sold Argentina. We sold Colombia.

I don’t see us expanding into new emerging market now. Emerging markets, I think right now are I think their economies are not doing that well and cost of capital is fairly high. So I don’t see us expanding into new emerging markets at this stage.

Richard Cho, Analyst, JPMorgan: And you talked about the, I guess, near term kind of build to suit opportunities in your international business. But once those are done, do you expect a similar level kind of in, where you have a leading position, kind of continue to grow?

Marc Montagnier, CFO, SBA Communications: Yes. I think the build to suit program is Millicom is a multiyear program. It’s 2,500 BTS over a number of years. We see that Tanzania, for example, is going to need more coverage over time. So

Richard Cho, Analyst, JPMorgan: I think the idea is to keep building and expanding the footprint and building more assets. Great. And as I guess, once the acquisition is closed and I guess the margin EBITDA margin gets back to 70%, how should we think about the long term AFFO growth and the potential for dividend growth in the future years?

Marc Montagnier, CFO, SBA Communications: Yes. That’s a good question. So I mean, last year, we increased our dividend by 15%. This year, we increased the dividend by 13%. Our payout ratio is about 36% today.

And I think for the next few years, we’re probably going to keep increasing the dividend at double digit. We need to burn through more NOLs. But at some point, I think the rate of growth in the dividend should mirror the rate of growth in AFFO and AFFO per share.

Richard Cho, Analyst, JPMorgan: Got it. And I guess in the past and just recently, you’ve been or SBA has been very kind of, I guess, price dependent on the share buyback. If M and A opportunities don’t come down, you kind of have your build to suit covered. Will the share repurchase continue to be kind of price dependent? Or does that shift depending on the next best use of your excess cash flow?

Marc Montagnier, CFO, SBA Communications: I think we want to be flexible. I we don’t know the answer to your question. It depends on so many variables. But I think returning capital to shareholders is important to us. And it creates value for the long term.

Richard Cho, Analyst, JPMorgan: Got it. In terms of, I guess, something that kind of came out late yesterday, and I don’t think anyone has an answer to it, but the FCC is looking into DISH and their network build. Can you just talk about what your exposure is relative to DISH and not trying to get a sense of what will actually happen, but more what could happen, I guess?

Marc Montagnier, CFO, SBA Communications: I’m not going to speculate because I’d be wrong anyway. But I think Dish today is less than $50,000,000 of revenue, less than five-zero. We didn’t pencil much in terms of new lease activity from Dish this year, low single digit. So I think they have they received regulatory relief until sometime in 2026 in terms of coverage build out. We want to support them.

I think we have a good dialogue with them. And I just wish them that they find the capital to deploy the network. Yes.

Richard Cho, Analyst, JPMorgan: And then I guess the services business has been doing pretty well. Can you remind us of what is driving that? And is it something that gives you that you have a lot of visibility into for this year and how that ties to your leasing?

Marc Montagnier, CFO, SBA Communications: Right. So our leasing our service business is heavily indexed towards one client today. But I think the fact that we increased guidance for that line of business for the year after one quarter is a good sign. The level of activity is really good. The pipeline is strong.

And it is really a good sign that our customers are using us for planning for the future. So I think it’s just a good sign for the leasing business.

Richard Cho, Analyst, JPMorgan: Got it. I guess in the past, the carriers at times have complained about tower leases and the escalator and stuff like that. Do you feel your relationship with carriers right now is in a good spot? Is it one that has changed at all recently? Or

Marc Montagnier, CFO, SBA Communications: I think we’re in a good spot, to be honest with you. I think we like the quality of execution that we provide, the quality of service, the response time. So I think the relationship is actually very good right now.

Richard Cho, Analyst, JPMorgan: And then you mentioned a little bit about adding on some SG and A because of in front of the merger.

Marc Montagnier, CFO, SBA Communications: We’re not talking huge numbers.

Richard Cho, Analyst, JPMorgan: Not big numbers, but is there any level of optimization that you can see in the organization, whether it’s in the international or domestic business or?

Marc Montagnier, CFO, SBA Communications: G and A is running at kind of close to 6% of revenue. We’re pretty lean, pretty efficient. I think we were rolling out, I think Brandon mentioned that on the last earnings call, a new ERP just because the current system is going to be phased out by the end of the decade. So we want to do it right as opposed to do it fast. The primary objective is really to have more functionality, more feature, being more flexible, more than taking out cost.

I think we like I think the way we are nimble and efficient. It’s just a question of upgrading a little bit our system because the world evolves and we need to evolve as well.

Richard Cho, Analyst, JPMorgan: No, that makes sense.

Marc Montagnier, CFO, SBA Communications: Do you

Richard Cho, Analyst, JPMorgan: think that this level of mix towards colocation and away from amendments will stay at this level? Or do you see it equalizing at some point?

Marc Montagnier, CFO, SBA Communications: It’s hard to say, but and carriers don’t spend their long term plan with us, but it makes sense that you roll out a new generation technology. It’s really broad. And then suddenly, you have pockets where people use more fixed wireless access or you have a corridor with a highway where there’s more traffic and you need to do fill in. So I think you get a national level of coverage with an initial level of capacity. And if you’re a carrier, you constantly need to look at your choke points and spend more capacity, densification.

So I think it’s going to keep going. It has to keep going because that’s where the demands are on the network.

Richard Cho, Analyst, JPMorgan: Do you get any sense on where densification is focused on? Is it in high kind of fixed wireless access markets? Is it in more suburban, urban markets? Or is it kind of all It’s broad based, but

Marc Montagnier, CFO, SBA Communications: we don’t have granularity on the usage. I mean a bit is a bit is a bit. So the carriers may know if it’s a bit being used on a fixed wireless access terminal or handset, But we don’t we just rent a passive infrastructure. We rent horizontal space at the bottom of the tower for cabinet generators, fuel tanks and vertical space on the tower for the radios. But it’s really a passive infrastructure.

Got it. I think one of the questions that we talked a

Richard Cho, Analyst, JPMorgan: little bit about but seems to have always persisted is this disconnect in the M and A environment from the private market to public market. What do you see as potentially changing that dynamic? It seems like the public markets are starting to get a little bit better, but nowhere near what you’re seeing in the private markets. And this kind of disconnect has lasted through kind of very different cycles in the financial markets. Do you see anything changing this?

Marc Montagnier, CFO, SBA Communications: Eventually, it should converge. I just don’t know when. But I’ll give you one example, right? A year ago, Chantel stole their wireless towers, right? So it was I mean, we looked at it and a number of other companies looked at it.

And there were fantastic towers, West Virginia, Virginia, Pennsylvania, Ohio, very difficult to replicate that infrastructure. A lot of state parks there, very difficult to build, fantastic towers. And then you look at it and you say, well, how much should you bid for it? So you build a long term model. And what assumptions do you build?

First of all, it was Chantel was a Sprint affiliate, so T Mobile bought Sprint. You know you’re going to have churn. You have to take a guess how many of those sites or these leases don’t get canceled. And then do you underwrite a four carrier market or a three carrier market? When is Dish going to deploy in that part of the country?

And then you see, well, there’s not a lot of fiber there. Is fixed wireless access going to be the real killer app in those markets or not? What is the penetration going to be? You know that you’re probably not going to be overbuilt because it’s so difficult and expensive to build there. And then the biggest swag is what discount rate are you going to use?

Are you going to use the current ten year rate? Are you going to say, you know what, interest rates are going to get be lower in the long term and I’m going to model use a lower WACC. And you run a model, you bet on it and you lose and then you look at how much the buyers pay for it and you say, I don’t need to tweak my model by very much to get to the numbers, especially if I could put 10 turns of debt if I’m a private buyer for this. As a public company, you couldn’t put 10 or 12 turns of debt. So I think as long as the credit market is going to be willing to put 10 or 12 turns of leverage on those private tower deals.

And as long as you’re going to have so much private equity chasing those opportunities, I think you may have a delta between public and private market. But I’m not saying the private is one. My guess is probably the our assets are probably undervalued at this stage if you use the same assumptions.

Richard Cho, Analyst, JPMorgan: Yes. No, if you apply those assumptions onto your which you would argue that your assets are actually of scale and better overall. There’s no real difference that

Marc Montagnier, CFO, SBA Communications: they should be I mean, those arbitrage opportunities could persist for a very long time. I don’t have a crystal ball. Unfortunately,

Richard Cho, Analyst, JPMorgan: hasn’t lasted longer than most people thought. With that said, I do hear that some of these assets have been kind of shopped around, go away, come back out, and no one So it will be interesting to see how long ’ll be willing to do that. I guess, to finish up, the rate volatility is weighing a lot on the stocks. But when rates do kind of settle down, it looks like the kind of organic growth opportunity over the next few years, excluding the onetime churn, is pretty solid. Is that the right way to look at the

Marc Montagnier, CFO, SBA Communications: Think the way we look at it is like the Our escalator gives you a 3% growth rate by contract. New lease up in a normalized environment, new lease activities should give you another 3%. And churn ex print is going to be minus 1%. So you could see a mid single digit growth in The U.

S.

Richard Cho, Analyst, JPMorgan: Great. And we’ll leave it at that.

Marc Montagnier, CFO, SBA Communications: Okay. Thank you. Thank you, Richard, for having me.

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