SBA Communications Corp (SBAC)

M&A Strategy and Leverage Flexibility
Q: Are you pursuing large M&A opportunities given lower leverage?
A: Management stated that with leverage at its lowest point, they now have flexibility to pursue material value-enhancing investments if they arise. - - They continue to look for opportunities that are accretive and add strategic value, although higher cost of capital affects what they can pay. - -

Impact of FX Rates and International Exposure
Q: Is currency weakness causing you to rethink international exposure?
A: The weakening of the Brazilian real has led to a reduction in guidance, which management finds disappointing. - - This impacts how they think about their asset mix, leading them to consider reducing exposure to volatile currencies and increasing investments in more stable markets. -

Domestic Carrier Activity and Leasing Outlook
Q: Are you seeing increased domestic carrier activity, and has leasing troughed?
A: Management noted an increase in lease applications over the past quarters, which is a good sign. - However, it's premature to say whether leasing has troughed, and they cannot provide next year's numbers yet. -

International Markets Scale and Strategy
Q: How are you approaching markets where you are sub-scale?
A: They believe greater scale is advantageous to be more relevant to customers. - They aim to expand in markets where they can achieve this; otherwise, they may consider exiting certain markets. - -

Potential Asset Sales and Capital Allocation
Q: Would you consider selling domestic assets given valuation disparities?
A: While selling assets is not a primary goal, management wouldn't rule it out if valuations are significantly higher than the credit they're receiving for those assets. - They also consider share buybacks and debt paydowns as part of their capital allocation strategy. -

Financing Market and Interest Rates
Q: How is the current financing market affecting your plans?
A: They observed that the financing market has been improving, with expectations of lower rates benefiting upcoming refinancings. - High demand exists for their debt instruments, and they remain flexible in their approach. - -

Build-to-Suit Opportunities
Q: Are you planning to increase domestic build-to-suit activity?
A: They would like to do more build-to-suit projects but acknowledge that carriers often opt for low-cost providers due to abundant capital in the industry. - They focus on securing high-quality locations strategically. -

Conversations with DISH Network
Q: Any updates on activity with DISH Network?
A: They continue to have conversations with DISH, who still signs leases, but there hasn't been a material increase in activity. - They are ready to support DISH's network needs as they evolve. -

Churn Expectations from Mergers
Q: Have churn expectations changed due to industry consolidation?
A: Churn expectations have not changed significantly; slight adjustments were made due to timing, but these are minor. - They anticipate churn to trend down over time, excluding major consolidations. -

Exposure to U.S. Cellular
Q: How significant is your exposure to U.S. Cellular?
A: Their exposure to U.S. Cellular is limited, with less than $20 million per year in revenue, so any changes are not expected to be overly material. -

Operational Review Update
Q: Any findings from your operational review?
A: Management has made significant progress but is not ready to share specifics yet. They expect to provide updates by the end of the year. -

International Leasing Activity
Q: What's driving the pickup in international leasing activity?
A: The increase is across several markets, with América Móvil being a significant contributor. - - Backlogs remain strong, and they hope this trend continues. -

Services Revenue Guidance
Q: What's causing the decline in services revenue guidance?
A: The decline is due to a shift in the mix of work toward consulting rather than construction, resulting in lower top-line volume but higher margins. - - The outlook for the second half is higher than the first half. -

Return on Investments in Tanzania and Philippines
Q: How are your recent investments in Tanzania and the Philippines performing?
A: Tanzania has performed extremely well with tremendous growth and attractive returns. - The Philippines is in early stages but is going well, with strong leasing on new sites. -

América Móvil Leasing Activity
Q: Has América Móvil increased its leasing activity?
A: Yes, América Móvil has been very active and is currently their most active leasing customer internationally. - Their percentage of revenue has increased partly due to currency effects in Brazil. -