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    David Guarino • Green Street Advisors

    David Guarino's questions to SBA Communications Corp (SBAC) leadership

    David Guarino's questions to SBA Communications Corp (SBAC) leadership • Q2 2025

    Question

    David Guarino from Green Street Advisors, LLC asked about the technical viability of high-frequency spectrum for macro towers, the potential timing for new spectrum auctions to reach carriers, and the specific guidance lift from the early Millicom closing.

    Answer

    President and CEO Brendan Cavanagh stated that higher band spectrum will propagate fine from macro sites but will require new equipment, which is favorable for SBA. He estimated spectrum auctioned by mid-2026 could be in carrier hands within two years, while other bands are likely post-2030. He also specified that the early Millicom closing contributed $16 million to the leasing revenue guidance increase.

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    David Guarino's questions to SBA Communications Corp (SBAC) leadership • Q1 2025

    Question

    David Guarino asked if the wide bid-ask spread on M&A was a recent phenomenon or a longer-term observation. He also questioned how SBA's portfolio would perform in an economic soft patch, given the evolution of the tenant landscape since the last major stress test.

    Answer

    President and CEO Brendan Cavanagh clarified that the M&A valuation gap has been an observable trend for the last year, coinciding with rising capital costs. He expressed confidence in the business's resilience, emphasizing that its substantial and reliable cash flow ($1.4 billion in AFFO) means any slowdown in incremental leasing would have a relatively small impact on the overall financial stability and shareholder returns.

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    David Guarino's questions to SBA Communications Corp (SBAC) leadership • Q3 2024

    Question

    David Guarino requested further details on the earn-out provision in the Millicom transaction, asking if it was material enough to significantly impact the potential obligations on the balance sheet and about the potential payment timeframe.

    Answer

    President and CEO Brendan Cavanagh reiterated that the earn-out is not considered material to the overall transaction value. He stated that any potential payment is contingent on achieving financial milestones that would represent a success for both parties, and he did not expect it to fundamentally change the deal's financial profile. He was uncertain about the specific future accounting disclosure.

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