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Aug 9, 2021 · In 2017, the last time management updated the stat, AMT reported an average of 1.9 tenants per tower. Because costs to operate a tower are the same regardless of the number of tenants per tower,...
Oct 27, 2022 · Now consider that CCI reports the company only adds one tenant per tower every ten years on average. This means potential competitors must devote enormous capex with expectations of poor...
Apr 24, 2023 · In the first quarter of this year, CCI had an average number of tenants per site of 2.4, which contributes to a weighted average cash yield on invested capital of 12.2% across the tower...
Jul 14, 2020 · The Big 3 U.S. tower companies – American Tower (NYSE: AMT), Crown Castle (NYSE: CCI) and SBA Communications (NasdaqGS: SBAC) – each have their own approaches to the market. It is interesting to see how they currently derive their revenues.
- Key Takeaways
- Company Background
- What Crown Castle REIT Fund Invests in
- Crown Castle REIT Investment Portfolio
- Crown Castle REIT Performance Outlook
Crown Castle REIT is an equity REIT in the infrastructure sector that’s been publicly traded since 2014. It invests mainly in communication infrastructures such as cell towers, small cells, and fib...Crown Castle REIT owns (or has the rights to the land), manages, and leases out >40,000 towers, ~80,000 small cells, and ~80,000 route miles of fiber. Their industry expertise spans public sectors,...The majority (>90%) of its outstanding shares are owned by institutional investors.Their biggest tenants are T-Mobile, AT&T, and Verizon — all of which sums up to 76% of their rental revenues in 2020.Crown Castle Corporation has been in the communication infrastructure business for more than 25 years. They maintain cell towers, smart cells, and fiber networks as one of the top leading providers of communication infrastructure in the U.S. Their target markets are public sectors (government and education), wholesale providers, and large enterpris...
Cell Towers, Small Cells, and Fiber Networks
The Crown Castle REIT invests in communication infrastructure which connects the communities to information, ideas, and innovations through data and wireless services. They own more than 40,000 cell towers, 80,000 small cells, and 80,000 route miles of fiber. For areas without cell towers, they can offer 10,000 rooftop sites instead. All of these network assets are spread out in 49 states of the U.S. and one U.S. territory. Source: Crown Castle (2nd Quarter 2021 Earnings Conference Call) 1. C...
Acquired Assets
Over the years, Crown Castle REIT has grown steadily because of acquisitions in infrastructure. They grew twice in size in 2013 and 2017. The year 2017 was their biggest year yet because of the sizable acquisitions from Lightower Fiber Networks and Wilcon. Sources: Crunchbase and Crown Castle Corp’s website
Tenant Mix
Crown Castle REIT gets its dividends from rental and management fees. All of their network assets are built on land they either own or have rights to. With a lot of businesses across different industries that need connection, they enter into long-term leasing contracts with clients for a period between 5 to 15 years as initial terms. Renewal periods are between 5 to 10 years. In exchange for leasing out towers, smart cells, and fiber networks, they maintain their networks yearly through their...
Investment Ownership
According to CNN Business, about 92% of the outstanding shares come from institutional investors, while the balance comes from Crown Castle REIT’s Directors and Board of Trustees. Within the REIT industry, institutional ownership is higher than most companies. The top 5 institutional investors of Crown Castle REIT are: 1. The Vanguard Group, Inc. (~$10B) 2. BlackRock Fund Advisors (~$4.2B) 3. Capital Research & Management Co. (World Investors) (~$3.7B) 4. Capital Research & Management Co. (Gl...
Historical Price Chart
Crown Castle International Corporation (CCIC) has been on the public stock exchange since 1998. But if we’re looking at the start of its operations as a REIT, the starting year would be 2014. The general trend of the historical price chart is going up. Consistent price increases can be observed in 2013 and 2017, wherein Crown Castle REIT doubled in size due to acquisitions. If you entered in 2014 at $71/share, you could have as much as 173% gain if you sell CCI shares today at $194/share.
Key Performance Metrics Through the Years
The stock price history chart does not tell you the full story. You have to also run the numbers and see how the company managed its investments through the ups and downs of the business cycle. Here are 5 of the critical parameters you should look at to measure the company’s operating performance: 1. Total Equity— this represents the company’s net worth value. It tells us how big and valuable the company is in the market. 2. Total Revenue —this parameter tells us how profitable the company is...
Dividend History
Source: Seeking Alpha Crown Castle REIT issues quarterly dividends. Since they doubled in size in 2017, their dividends per share have consistently increased through the years with a compounded annual rate of 9%. However, when compared among 461 companies in the REIT industry during the past 13 years, GuruFocus ranked NYSE: CCI’s dividend payout ratio lower than 84% of the group.
Nov 8, 2023 · American Tower (AMT) and Crown Castle (CCI) are two of the largest real estate investment trusts (REITs) in the United States. They not only compete every day in their businesses, they also...
People also ask
Why do Amt & CCI invest in tower REITs?
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Should you buy American Tower Corporation (Amt) & Crown Castle (CCI)?
Investment yields for CCI start at around 7-8% for one tenant, but once the deployments mature and they add more tenants, the returns rise above 15% (evidenced by some of their earliest build outs such as in Orlando).
