SBA Communications’ (NASDAQ: SBAC) domestic cash site leasing revenue in 3Q24 was $464 million, up one percent year-over-year. International cash site leasing revenue was $160 million compared to $169 million 3Q23, an increase of three percent on a constant currency basis. Adjusted EBITDA in the quarter was $473 million and AFFO was $358 million, with both metrics down two percent YoY.
Subsequent to 3Q24, SBA entered into a purchase agreement for over 7,000 towers in Central America from Millicom International Cellular S.A. for approximately $975 million in cash. These sites are located in Guatemala, Honduras, Panama, El Salvador, and Nicaragua, with all cash flows denominated in U.S. dollars. The sites to be acquired in this transaction are anticipated to produce approximately $129 million of revenues and $89 million of tower cash flow during their first full year of operations after closing.
Additionally, as part of the purchase agreement, SBA and Millicom have agreed to a seven-year exclusivity for SBA to build up to 2,500 build-to-suit sites in Central America for Millicom with new leases on any sites built having an initial lease term of 15 years. This transaction is expected to close expected to close mid-to-late 2025.
During the quarter, SBA acquired 51 communication sites and built 147 towers, spending $258 million of discretionary cash capex . As of September 30, 2024, SBA owned or operated 39,762 communication sites, with 17,477 located in the United States and its territories, and 22,285 located internationally.
“We continued to execute well during the third quarter, producing operational and financial results in line with our expectations,” comments Brendan Cavanagh, SBA President and CEO. “Carrier activity in the U.S. increased from levels during the first half of the year, indicating a positive upward trajectory that we anticipate will carry through the balance of 2024 and into 2025. Leasing results across our international markets also remained very solid during the quarter, and our services business had its strongest quarter of the year in terms of both revenue and gross profit. Our positive results and momentum have allowed us to increase our full year outlook for all key financial metrics.”
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