Crown Delivers 2020 Outlook and Dividends

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Crown Castle International Corp. (CCI) yesterday reported results for the quarter ended September 30, 2019, and issued its full year 2020 Outlook. The company also declared a $1.20/share quarterly dividend, which was a 6.7 percent increase from prior dividend of $1.125.

“We delivered terrific results in the third quarter and increased our annualized common stock dividend by 7 percent to $4.80 per share,” said Crown Castle CEO Jay Brown. 

 “We believe our ability to offer towers, small cells and fiber solutions, which are all integral components of communications networks and are shared among multiple tenants, provides us the best opportunity to generate significant growth while delivering high returns for our shareholders. Further, we believe that the U.S. represents the best market in the world for communications infrastructure ownership, and we are pursuing that compelling opportunity with our comprehensive offering,” he said. 

Brown said in 2019, Crown is experiencing the highest level of tower leasing activity in more than a decade, and expects to generate a similar level of new leasing activity from towers in 2020 as customers deploy additional cell sites and spectrum in response to the rapid growth in mobile data traffic. In addition, Brown said Crown is constructing small cells for customers as the company invests in its current networks while beginning the early stages of 5G deployments; Crown expects to deploy a similar volume of small cells in 2020 as it’s deploying in 2019.  

“With the positive momentum we continue to see in our Towers and Fiber segments, we remain focused on investing in our business to generate future growth while delivering dividend per share growth of seven percent to eight percent per year,” Brown said.

HIGHLIGHTS FROM THE QUARTER

  • Site rental revenues. Site rental revenues grew approximately 6.4 percent, or $76 million, from third quarter 2018 to third quarter 2019, inclusive of approximately $70 million in Organic Contribution to Site Rental Revenues and an approximately $6 million increase in straight-lined revenues. The $70 million in Organic Contribution to Site Rental Revenues represents approximately 6.0 percent growth, comprised of approximately 9.7 percent growth from new leasing activity and contracted tenant escalations, net of approximately 3.7 percent from tenant non-renewals.
  • Net income. Net income for the third quarter 2019 was $272 million, compared to $164 million during the same period a year ago.
  • Capital expenditures. Capital expenditures during the quarter were $540 million, comprised of $18 million of land purchases, $29 million of sustaining capital expenditures, $491 million of discretionary capital expenditures and $2 million of integration capital expenditures. The discretionary capital expenditures of $491 million includes $371 million attributable to Fiber and $120 million attributable to Towers.
  • Common stock dividend. During the quarter, Crown Castle paid common stock dividends of $1.125 per common share, an increase of approximately 7 percent on a per share basis compared to the same period a year ago.
  • Financing activities. During the quarter, Crown Castle issued $900 million of Senior Unsecured Notes, with net proceeds from the offering and cash on hand used to repay outstanding indebtedness under the revolving credit facility and commercial paper program.

October 17, 2019

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