Thu, May 14, 10:00 AM
- Crown Castle International (CCI +0.7%) says it will sell its Australian unit, CCAL, for about $1.6B to a Macquarie-led consortium.
- It'll use those proceeds in turn to boost its U.S. network, to finance its purchase of Quanta Services' Sunesys.
- "The sale of CCAL allows us to redeploy capital towards our growing small cell networks, which we expect will be accretive to our long-term AFFO and dividend per share growth rates," says CEO/President Ben Moreland.
- CCAL, Australia's leading tower operator, was expected to contribute $97M-$102M to CCI's 2015 EBITDA of $2.145B-$2.16B.
Fri, May 1, 11:00 AM
- As planned, Crown Castle International (NYSE:CCI) has priced $1B in senior secured tower revenue notes to be issued by indirect subsidiaries.
- Two classes of notes are on offer: $300M in notes at 3.222%, with expected life of seven years and final maturity in 2042; and $700M in notes at 3.663%, with expected life of 10 years and final maturity in 2045.
- The offering should close around May 15.
Thu, Apr. 30, 6:59 AM| Thu, Apr. 30, 6:59 AM | Comment!
Tue, Apr. 28, 4:35 PM
- Crown Castle International (NYSE:CCI) says its indirect subsidiaries will offer senior secured notes tied to tower revenues.
- The company says it expects any offered notes will be investment grade, and will use funds to roll over existing notes and for general purposes.
- Servicing and repayment of the notes would come only from the cash flow of the towers tied to the transaction. CCI has a current ratio of 1.04 and total debt/assets is 56.4.
Wed, Apr. 22, 6:31 PM
- Crown Castle International (NYSE:CCI) posted adjusted funds from operations that grew 10% to $383M in Q1, while revenues were up 7.4%.
- Adjusted EBITDA of $554M (up 5%) beat expectations of $543.8M, and that and AFFO benefited from some $9M in network services that had been expected to occur in the second quarter, as well as about $6M in lower-than-expected sustaining capex.
- For Q1, about $205M in capex (including $24M in land purchases and $17M in sustaining capex). Net debt-to-EBITDA was about 5.3x.
- The company's expecting wireless demand to grow significantly, "with one industry estimate projecting a seven-fold increase in US mobile data traffic between 2014 and 2019," says CEO Ben Moreland.
- Moreland thinks the company's portfolio of towers and small cells is well aligned to expected demand, "providing us with confidence in our ability to deliver on our stated goal of generating compounded annual growth in AFFO per share of 6% to 7% organically over the next five years."
- CCI has bumped the midpoint of its 2015 guidance for site rental revenues, site rental gross margin, Adjusted EBITDA and AFFO by approximately $7M, $3M, $3M and $3M, respectively.
- Conference call tomorrow at 10:30 a.m. ET.
- Press release
Wed, Apr. 22, 4:07 PM
Tue, Apr. 21, 5:35 PM| Tue, Apr. 21, 5:35 PM | 6 Comments
Tue, Apr. 21, 3:54 PM
- The REITs are down about 8% from their January highs while the homebuilders have posted gains, bringing the ratio of homebuilders to REITs to long-term resistance, says MKM Partners' Jonathan Krinsky, who suggests fading the move.
- Most vulnerable to tactical pullbacks are those homebuilders/suppliers showing the weakest relative strength: Beazer Homes (NYSE:BZH), Lennar (NYSE:LEN), Louisiana-Pacific (NYSE:LPX), Taylor Morrisn (NYSE:TMHC), Toll Brothers (NYSE:TOL), and TRI Pointe Homes (NYSE:TPH).
- The best long REIT ideas are those showing the best relative strength: AvalonBay (NYSE:AVB), Crown Castle (NYSE:CCI), Essex Property (NYSE:ESS), Extra Space Storage (NYSE:EXR), Federal Realty (NYSE:FRT), General Growth (NYSE:GGP), SL Green (NYSE:SLG), and UDR.
- Those REITs showing poor relative strength or to be avoided or sold: American Tower (NYSE:AMT), American Realty Capital (NASDAQ:ARCP), Brixmor (NYSE:BRX), Host Hotels (NYSE:HST), and Omega Healthcare (NYSE:OHI).
- Source: Barron's
Mon, Feb. 23, 12:07 PM
- Among the additions to the index (which fuels the IBLN ETF) are EMC, Google (GOOG, GOOGL), Goodyear (NASDAQ:GT), Mohawk Industries (NYSE:MHK), PVH, Time Warner (NYSE:TWX), and Yahoo (NASDAQ:YHOO). There are three health care additions as well: Allergan (NYSE:AGN), Amgen (NASDAQ:AMGN), and HCA. The lone energy name added is Consol Energy (NYSE:CNX).
- Exiting the index are energy names Halliburton (NYSE:HAL) and National-Oilwell Varco (NYSE:NOV), along with healthcare companies AbbVie (NYSE:ABBV), Aetna (NYSE:AET), Humana (NYSE:HUM), and Tenet Healthcare (NYSE:THC). Citigroup (NYSE:C), CBS, Crown Castle (NYSE:CCI), and Michael Kors (NYSE:KORS) round out those subtracted.
- IBLN tracks the highest-conviction S&P 500 picks by hot-handed billionaires who built their fortunes through hedge funds and investing. The list of billionaires tracked is updated each October, and the equity components are rebalanced each quarter after sifting through regulatory filings.
- IBillionaire Index Rebalance
Tue, Feb. 17, 8:01 PM
- Crown Castle International (NYSE:CCI) is looking at selling its Australian subsidiary CCAL, based on "unsolicited offers" the company has received -- and Zacks notes CCI needs to reduce debt burden and focus on U.S. operations.
- CCAL -- the largest independent wireless tower operator in Australia -- is likely to lose its tax shelter tied to deprectation in the near future, Zacks says.
- CCI owns 77.6% of CCAL -- which is projected to make up 4-5% of CCI's 2015 adjusted EBITDA of $2.15B -- and had an intercompany loan of about A$306M (about $239M) due from CCAL on Dec. 31.
- CCI's total debt-to-assets: 55.79; total debt-to-equity: 167.39.
Tue, Feb. 17, 4:22 PM
Wed, Jan. 21, 7:10 PM
- Crown Castle (NYSE:CCI) uses its Q4 report to hike its 2015 AFFO/share guidance range by $0.02 to $4.33-$4.39 (still below a $4.45 consensus). Q1 AFFO/share guidance has been set at $1.09-$1.10 (above a $1.08 consensus).
- Site rental revenue guidance has been upped by $10M to $3.058B-$3.078B (4% organic growth at the midpoint), and adjusted EBITDA guidance by $14M to $2.14B-$2.16B.
- Q4 site rental revenue +17% Y/Y to $761M (+6.6% organic). Network services/other revenue +40% to $206.2M. The AT&T deal (closed in Dec. 2013) provided a major top-line boost.
- Crown Castle ended Q4 with $11.7B in net debt, up from $11.3B at the end of Q3.
- CCI +0.9% AH. The dividend yield is currently 4%.
- Q4 results, PR
Wed, Jan. 21, 4:05 PM
Tue, Jan. 20, 5:35 PM
Dec. 2, 2014, 10:53 AM
- Raymond James has downgraded American Tower (AMT -2.5%) to Outperform from Strong Buy, and Crown Castle (CCI -2.3%) to Market Perform from Outperform. Peer SBA (SBAC -2.2%) is off in sympathy.
- AMT and SBAC have rallied strongly this year; CCI has seen more moderate gains.
- A month ago: Goldman, Macquarie downgrade AMT; CCI receives upgrade and downgrades
Nov. 3, 2014, 8:48 AM
- Goldman and Macquarie have both downgraded American Tower (NYSE:AMT) to Neutral, and Nomura has issued a similar downgrade for Crown Castle (NYSE:CCI). Meanwhile, Goldman has upgraded CCI to Buy, and Raymond James has downgraded the company to Outperform from Strong Buy.
- AMT rallied on Thursday thanks to a strong Q3 AFFO figure and a full-year guidance hike. CCI sold off on Friday due to the company's soft 2015 outlook.
- Macquarie's Kevin Smithen says his firm has spent the last few days conducting checks to "try and reconcile" AMT's bullish commentary with CCI's cautious outlook. The checks "suggest a 100-150bps slowdown in industry US site leasing revenue growth in ‘16 as AT&T, Sprint and T-Mo reduce aggregate wireless capex and decommission Leap, Clearwire and Metro sites."
- He sees AMT's U.S. organic growth falling to 7.5% in 2015 and 6.4% in 2016 from 9.5% in 2014, and predicts the slowdown will yield multiple compression. "While we regard AMT’s mgmt. team and business model very highly, we are moving to the sideline on the shares until we feel ... expectations reflect slowing growth in ’16."
- Goldman's Brett Feldman says his "fundamental outlook for AMT" hasn't changed. However, he thinks "investors looking for exposure to the tower sector can generate a more attractive total return in CCI," following the company's huge dividend hike.
- If they pan out, Macquarie's checks also have implications for SBA (NASDAQ:SBAC). SBA's shares fell 1.8% on Friday thanks to Crown Castle.
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