Crown Castle Inc. (NYSE: CCI) yesterday reported results for the fourth quarter and full year ended December 31, 2022, and maintained its full year 2023 outlook.
“We believe the positive operating trends across our business will continue as we navigate higher interest rates and the previously disclosed rationalization of a portion of Sprint’s legacy network that will impact our growth in the near-term,” stated Dan Schlanger, Crown Castle’s Chief Financial Officer.
“Looking beyond these near-term headwinds, we are excited to leverage our comprehensive portfolio of infrastructure offerings to generate long-term growth in line with our target of 7 percent to 8 percent annual growth in dividends per share. We have continued to focus on strengthening our balance sheet and liquidity position to pursue investment opportunities that are consistent with our strategy and support our ability to deliver attractive risk-adjusted returns through a combination of dividends and growth. Following our successful bond offering earlier this month, we have an investment grade balance sheet with more than 85 percent fixed rate debt, a weighted average maturity across our debt of over eight years, limited debt maturities through 2024 and approximately $5.5 billion in available liquidity under our revolving credit facility. We believe the combination of our balance sheet strength and attractive underlying business characteristics provides a solid foundation to support cash flow growth through various economic cycles.”
Highlights for the year include:
- Site rental revenues. Site rental revenues grew 10 percent, or $570 million, from full year 2021 to full year 2022, inclusive of approximately $258 million in Organic Contribution to Site Rental Billings and a $299 million increase in straight-lined revenues. The $258 million in Organic Contribution to Site Rental Billings represents 5.1 percent growth, comprised of 8.4 percent growth from core leasing activity and escalators, net of 3.3per cent from non-renewals.
- Capital expenditures. Capital expenditures during the year were $1.3 billion, comprised of $95 million of sustaining capital expenditures and $1.2 billion of discretionary capital expenditures. Discretionary capital expenditures during the year primarily included approximately $1.0 billion attributable to Fiber and approximately $174 million attributable to Towers.
- Income from continuing operations. Income from continuing operations for full year 2022 was $1.7 billion compared to $1.2 billion for full year 2021.
- Adjusted EBITDA. Full year 2022 Adjusted EBITDA was $4.3 billion compared to $3.8 billion for full year 2021, representing 14 percent growth, primarily as a result of the growth in site rental revenues and higher services contribution.
- AFFO and AFFO per share. Full year 2022 AFFO was $3.2 billion, or $7.38 per share, representing growth from the full year 2021 of 6 percent.
- Common stock dividend. During the year, Crown Castle paid common stock dividends of approximately $2.6 billion in the aggregate, or $5.98 per common share, an increase of more than 9 percent on a per share basis compared to full year 2021.
- Financing activity. In January 2023, Crown Castle issued $1.0 billion in aggregate principal amount of senior unsecured notes with a five-year maturity and a coupon of 5.000 percent. Net proceeds from the senior notes offering were used to repay a portion of the indebtedness under the existing revolving credit facility and pay related fees and expenses.
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