SBA Communications Corporation

Welcome, and thank you all for joining the SBA fourth quarter 2025 results. I'll now turn it over to Louis Friend, Vice President of Finance and Capital Markets. Please go ahead, sir.

Good evening, and thank you for joining us for SBA's fourth quarter 2025 earnings conference call. Here with me today are Brendan Cavanaugh, our President and Chief Executive Officer, and Marc Montagnier, our Chief Financial Officer. Some of the information we will discuss on this call is forward-looking, including but not limited to any guidance for 2026 and beyond. In today's press release and in our SEC filings, we detail material risks that may cause our future results to differ from our expectations. Our statements are as of today, February 26, and we have no obligation to update any forward-looking statements we may make. In addition, our comments will include non-GAAP financial measures and other key operating metrics. The reconciliation of and other information regarding these items can be found in our supplemental financial data package, which is located on the landing page of our investor relations website. With that, I will now turn over the call to Mark to comment on the fourth quarter results in our 2026 outlook.

Thank you, Luis. The fourth quarter was a solid finish to the year. Results for the quarter were in line with our estimates, even with higher-than-forecasted bad debt expenses related to Equistar. In the fourth quarter, the FFO per share was $3.19, with a cash dividend of $1.11 per share, an increase of 13% compared to the fourth quarter of 2024. Operationally, we added approximately $10 million of domestic new leases and abandoned buildings. The bulk of the activity continues to come from new co-locations as carriers both intensify and expand their network footprint. Our service business also continues to perform well, increasing revenue by 13% in the fourth quarter compared to the fourth quarter of 2025. This was mostly due to construction-related project focus on network extension. With respect to churn, we are getting closer to the end of consolidation churn in the U.S. Prince-related turn of approximately $17 million in the quarter. Internationally, we continue to see healthy demand, adding approximately $6 million of new leases and amendment buildings in the fourth quarter. International return continues to be elevated, and we lost approximately $8 million of revenue in the quarter from period consolidation, bankruptcy restructuring, and wireless operators' network optimizations. The team has been working around the clock to integrate the newly acquired sites in Central America. We're also ramping up our new build program in the region, setting up our business for future success as a leading independent power operator in Central America. In the quarter, we deployed significant capital to buy back our shares, spending $213 million to retire 1.1 million shares, at an average price of $191.07. In total, in 2025, we spent $500 million to repurchase 2.5 million shares, and as of today, we have $1.1 billion remaining on our share buyback authorization. We continue to believe that share buybacks play a significant role in creating shareholder value over time. Today's earnings press release includes our initial 2026 outlook. Domestically, our 2026 outlook reflects a similar level of new revenue growth from care and losing activity to what we experienced in 2025. The outlook also assumed a range of $55 to $56 million related to spring churn, which is slightly higher than we estimated last quarter. The increase is due to timing, and we now expect spring churn in 2027 and beyond to be less than the $20 million previously provided. In addition, our current Outlook removes all future recurring revenue from Equestall. We'll continue to pursue legal rights to recover these revenues from Equestall. For our international segment, Outlook will effect a full year contribution from the acquisition of sites from MediClub in Central America. The Outlook also issues steady network investment from our customer in 2026. and we're guiding to a range of $19 to $21 million for new leases and amendments, up slightly from 2020-25. Our OCCLU consumer range of $36 to $40 million related to churn. The current churn range includes $14 million related to oil wireline, which will not continue into 2027. They are the annual foreseen event to expect international churn to trend down over the next couple of years. Turning to services, we are guiding to a range of $190 to $210 million in revenue, higher than our initial outlook for 2025, but lower than the extremely strong results we delivered last year. Our services backlogs are supportive of continuous care and network activity in 2026. Regarding our balance sheet, in January, we successfully paid off $750 million of ABS debt with a revolving credit facility. and our outlook assumes that we will use our free cash flow to pay down the current outstanding amount on its credit facility over time. We will also assume that our $1.2 billion November ABS maturity will be recognized in November of 2026 by five and a quarter percent. The 40 communities will be committing investment-grade issuers, and we look to make our initial inaugural investment-grade bond at some point in 2026, depending on market conditions. During the fourth quarter, we declare our pay or cash dividend of $118.2 million, or $1.11 per share. And today, we announce that our board of directors declare our first quarter dividend of $1.25 per share, payable of March 27, 2026, to shareholders of record as of close of business of March 13, 2026. This dividend represents an increase of approximately 13% over the dividend in the first quarter of 2025, and approximately 41% of the midpoint of our full-year FFO outlook. Please also note that our outlook does not assume any further share with purchase or acquisition beyond those which, as of today, are in contract or expected to close by the end of the year. However, we anticipate that we'll invest in additional assets or share buyback or both during the year. This will potentially have an impact on our full-year outlook. I will now turn the call over to Brandon.

Thank you, Mark, and good afternoon. Today, I want to share our perspective on SBA's near and long-term outlook and the opportunities ahead, starting with the U.S. market and the key drivers of future growth. For our U.S. customers, a stabilized three-carrier market maintaining a high-quality end-user experience remains paramount. Offering superior network quality, reliability, and speed that meets the needs of today and tomorrow requires significant ongoing investments. We've seen this demonstrated in numerous cycles over the last several decades, and it is perhaps even more the case today. Mobile data use continues to climb as Americans rely on their devices across everyday experiences. According to CTIA, in 2024, Americans consumed more than 132 trillion megabytes of mobile data, up 35% compared to the prior year, marking the single largest jump in history. The way to keep up with this level of demand remains relatively unchanged. It typically starts with a wave of amendment to efficiently upgrade existing towers, deploying new spectrum bands if available, adding or swapping equipment, followed by a shift toward densification. Today, we are still seeing upgrades, but certain customers have seen a clear increase in new co-location activity tied to both densification and expansion. On the amendment side, we've seen new technology upgrades such as massive MIMO, largely tied to new spectrum, including C-band and DOD, and are starting to see initial massive BIMO deployment in legacy AWS and PCS bands, significantly increasing network capacity. With regard to co-location activity, our customers work to address coverage gaps in the U.S., meet regulatory requirements, and support 5G use cases with fixed wireless access. On fixed wireless access, growth and adoption have been impressive, with total subscribers of approximately 15 million, initially driven by excess 5G capacity. Today, it's estimated that more than half of overall wireless network capacity is being used to support fixed wireless access, a figure that could increase over time as carriers look to grow their subscriber base and lean further into convergence, bundling home internet, mobile, and enterprise services. As 5G continues to build out, we expect further support from the upper C-band auction, adding another growth driver for our industry. At least 100 megahertz of upper C-band is expected to be auctioned by mid-2027. By looking beyond the near term, we're increasingly excited about 6G. We've already seen legislative tailwind, including restoring the FCC's auction authority. and 800 megahertz of spectrum to be studied and eventually auctioned, including the aforementioned 100 megahertz upper C band in 2027. Other bands currently being evaluated include 2.7 to 2.9 gigahertz, 4.4 to 4.9 gigahertz, and 7.25 to 7.4 gigahertz. These new bands will require new radios and likely a denser footprint given the higher band properties. creating future growth opportunities for SBA. Beyond spectrum, we see a fundamental shift in the network architecture, most evident in the transition from 5G to 6G. With 5G, traffic follows an 80-20 downlink to uplink mix, as users primarily consume data, streaming videos, shopping, connecting on social media, or gaming online. Looking ahead, we anticipate a more balanced figure with 6Gs, driving significantly more data upstream to support increasingly AI-driven interactions. Technology that seamlessly integrates into everyday experiences with data interpreted in real time is what will truly differentiate 6G. Many of these use cases are likely to emerge first in a home or enterprise using Wi-Fi or private networks, eventually, though, migrating outdoors for a fully mobile experience reliant on the terrestrial network. we expect a wide range of use cases. Today, we are starting to see the early signs of preparation for 6G. AI is beginning to move from the core to the RAM, but true 6G cannot be done with just software. It will also require physical components. That means more compute at the tower site with higher capacity radios and denser and more intelligent antenna configurations to send and receive growing volumes of data. With regards to the compute element, the specifics are really still just starting to develop, but rapid advances in AI, particularly as it becomes more performative, we believe will drive the need for compute to be closer to end users, where devices rely on real-time, ultra-low latency environments. We believe our large distributed U.S. portfolio makes this a real opportunity for SBA. Turning now to our international markets, let me start with Brazil. With a portfolio of over 12,000 sites, Brazil remains the second largest market. We intend to continue to harvest and grow cash flow organically in Brazil. We believe the country itself is very well positioned to be a leader in Latin America over the coming years. It's a commodity superpower with meaningful exports of food, energy, and metal. It has a population of over 200 million and a younger demographic that drives higher mobile data usage. Operationally, It performed well in Brazil, though we faced elevated churn, largely driven by industry consolidation and network rationalization. In the Brazilian wireless market more broadly, we see several opportunities. As operators continue to rationalize their networks, reducing redundant infrastructure while increasing tenancy, there's a clear opportunity to improve both the carriers and the tower companies' returns through site consolidation and increased control locations. We're actively working with our customers to find more efficient ways to help them meet their network needs. This is a key focus area for SBA in 2026. Another structural opportunity is network density. According to a UBS research report from October 2025, Brazil has an estimated four sites for 10,000 people compared with roughly 16 sites for 10,000 people in the U.S. We see that gap providing a meaningful opportunity for additional co-locations as carriers densify their networks. And lastly, there is spectrum. The government is planning to auction both 450 megahertz and 700 megahertz spectrum bands. While the timing remains uncertain, recent estimates suggest this could happen in 2027. Each of these factors gives us confidence in the long-term prospects for Brazil. In the meantime, operators continue to invest in advancing 5G coverage. Beyond Brazil, Central America and Africa offer diverse customer bases, attractive opportunities to deploy capital through new site builds, and organic growth as these markets remain earlier in the 5G deployment cycle. As we've discussed previously, the Milcom transaction has positioned us as the leading independent tower company in Central America, supported by long-term master lease agreements with leading character. We expect that agreement to drive predictable operating results and durable cash flow. Our select African markets have continued to deliver superior risk-adjusted returns as well, and our highest return on invested capital across our company. In addition to strong operational and technology indicators, we feel good about the future due to the strength of our balance sheet and capital return profile. As discussed on our prior earnings call, we have recently achieved investment-grade ratings in two major rating agencies and have operated comfortably between six and seven turns of leverage for the last three years. While investing meaningfully in new assets and share purchases, we've still delivered the fastest-growing dividend in our industry. We believe the strength of our capital structure will allow us to consistently provide meaningful and growing shareholder remuneration going forward in the form of share buybacks and dividends, while also preserving the flexibility to opportunistically invest in new assets in our markets and minimizing the cost of debt. In summary, SBA is very well positioned to play a meaningful role in future network deployments, helping our customers meet their network needs. Our towers remain the backbone of the network and offer a truly turnkey option for ground space, power, and most importantly, location. Before opening it up for questions, I'd like to thank our team members. We strive to be the industry's leader in digital infrastructure, and it is only possible because of the incredible team members we have at SBA. I'd also like to thank our customers for their trust in us. And lastly, I'd like to thank our shareholders for their ongoing support. And with that operator, we are now ready for questions.

If you'd like to ask a question, please dial pound two on your telephone keypad to enter the question queue. When it's your turn to speak, I will announce you by name and organization, and you will hear a notification that your line is unmuted. At that time, you may ask your question. And again, pressing pound two will indicate that you wish to ask a question. Please stand by as we queue up our callers. Okay. Let's go ahead and move on to our first caller, Richard from J.P. Morgan.

Do you expect to see domestic co-location revenue growth through this year? And can you give us a sense of what the carriers are looking for? Yeah.

Hi, Richard. Well, so in terms of our domestic co-location expectations, we obviously gave our outlook for the full year, which assumes $35 million of incremental revenue added to new leases and amendments in the U.S. We would expect that we'll be contributed perhaps slightly heavier in the beginning of the year, but we expect activity levels with the carriers in terms of new business being signed up to be pretty steady. throughout the year. That's our assumption, and based on the way things are starting, that's what we think will continue to happen. And it'll be a mix, as we said in some of our prepared comments, of densification as well as its expansion of coverage.

And one quick one on Brazil. As we look at the buckets of growth that could drive your revenue there, how do we think about the difference between a build upgrading to, I guess, 5G identification and spectrum over the next few years? Like where do you expect to see kind of most of the growth come from there eventually?

Yeah, I think we're not building that many sites down there, so most of the growth is going to come organically through new lease-up. In terms of the drivers of that new lease-up, Some of that will be just new spectrum that's going to be auctioned off, we believe, over the next couple of years. And some of that's going to be just further expansion and densification of the network. I think if you heard the prepared comments, one of the things we pointed out was the statistic about the amount of sites per person in Brazil. And they're basically four times more in the U.S. than there are in Brazil. And so, With that sort of dynamic, it leads to the need for increased investment in the network and expansion of the network by each of the remaining carriers. It's been, I'd say, a little bit muted over the last couple of years since the consolidation of OI into the big three carriers that are remaining there. As they've worked through sort of the rationalization of that, that's been a big focus. As we kind of get on the back end of that, I would expect significant investment into expanding the network and competing on network quality.

Thank you.

Sure. Moving on to the next caller, Batya Levy, UPS.

Great. Thank you. A follow-up on domestic activity. When you look at the range you provided, the low end would suggest a slowdown. Can you provide more color on how much visibility you have for the year ahead versus maybe last year and what could drive that low end? And also, the Verizon MLA that you recently signed, how does that impact the trend against the lower CapEx that they're guiding to? Thank you.

Sure. On the The overall range that we're guiding to, we have pretty good visibility. We obviously give a range because it's not set in stone and there's a certain amount, particularly at the beginning of the year, that we have to see how the The first half of the year in particular goes in terms of new business being signed up. So that's why we give a range. And obviously, if it's slow out of the gates, you could be towards the low end of the range. But we're typically focused on the midpoint as our best estimate of where we expect to be. And so, you know, it's a little bit less than last year. It's about $2 million less than last year, although we did actually have $2 million of lease-up contribution from DISH last year. So excluding that, which is zero now. It's basically flat. I will say that there's a different sort of mix among the big three carriers in terms of the relative contribution of ETH that we expect. And to kind of pivot to your second question, because it's related to that, you know, we do expect to see more of a contribution from Verizon because of the MLA that we signed with them late last year in terms of, you know, their comments around CapEx. I know they have a number of things that they're focused on in terms of controlling costs, but our agreement is pretty well set in terms of minimum commitments that they have. And so, for the most part, our assumptions are built around those minimum commitments as well as existing backlogs that we have with them. And our backlogs have grown quite a bit over the last couple of months, as you might expect after we sign that agreement. But we feel pretty good that we're going to see increased contributions from Verizon due to that agreement starting this year.

Got it. Thank you.

Sure. All right. Moving on to Rick Prentice from Raymond James.

Thanks. Good afternoon, everybody.

Hey, Rick.

Hey. A couple questions. One, thanks for giving the cleanest view and taking gist out. of the guidance. But can you update us as far as what's the process? Did you guys file a lawsuit? Have you terminated the contract? And just how do you see kind of the timeline or how this might play out?

Yeah. So we did actually file a lawsuit just recently. And as part of that, because of their default lack of payment, we did terminate and accelerate the rents that were due under that contract. I mean, I can't really get into too much in terms of the details around that and what we foresee happening there. But the basic gist of it is that they defaulted on the agreement and we filed suit. We tried to get them to comply with the agreement. They did not. We filed suit. We're going to you know, after enforcing our rights under the agreement the best we can. And we'll see where it all shakes out. But for now, we thought the cleanest thing to do in terms of our outlook for this year was to basically just remove them entirely, as it seems like others in the industry are doing. This is kind of a consistent issue across the industry. But for us, you know, the relative size of that exposure is less than others. But nonetheless, it's all out. Great.

Okay. Second question for me, I think Mark mentioned, Mark with a C instead of Mark with a K here, but Mark mentioned that you're closer to, I think probably U.S., closer to carrier consolidations from being done. There is one more maybe in progress, right, T-Mobile USM. Can you update us as far as how much T-Mobile USM churn might be when you're thinking it might affect you guys?

Yeah, we have – and Lewis can correct me on this if I'm wrong – I believe somewhere around $1 million to $2 million of our churn estimate for this year covers specifically USM churn associated with that. So there's a little bit in there. The total amount of revenue that we have under those U.S. cellular leases is $20 million. We've had a very small amount of that realized already, plus we've incorporated, as I said, 1 to 2 million in our numbers for this year. So, you know, somewhere less than 20 million. I don't know that it will all necessarily turn to maybe some that are capped, I would think, but we've kind of assumed that over the next five years, you'll see all of it go away kind of evenly over that period of time.

Okay. And related to USM, and we obviously get the question a lot, What does directed device satellite mean for terrestrial wireless, terrestrial towers? I'll admit I'm in the camp that thinks it's complementary and maybe fixes white space, but help people understand, are there any sites on the fringe of where you have sites, or how are you thinking of directed device and what it might mean to terrestrial wireless and terrestrial towers?

Well, first of all, we agree with the premise that you just mentioned, which is that it is largely a complementary solution and it is best suited in some of those harder to reach areas, those areas that maybe aren't economic to cover with a traditional terrestrial solution. And so I don't see it having a huge impact on our business because even when we have sites that you would classify as slightly more They're still in population centers or the covering areas that people – where there's a concentration of people. We typically don't have sites that are in the middle of nowhere. Those don't last for very long. So I don't think it's going to have much of an impact, Rick, and there are clearly limitations, both financial and just physical properties in terms of the ability to deliver speeds and latency levels effectively. at a level that it's going to be required, particularly with the newer technologies that are coming. I think as we move towards 6G and there's greater uplink, it's going to be much harder to provide anywhere close to the same solution through the satellite product. But, you know, that will all play out over time. But for now, we haven't seen anything that indicates a threat from that.

Great. Thanks. I'll see a couple of you next weekend.

Sounds good. Thanks, Rick.

Our next caller is Eric Luchow from Wells Fargo.

Great. Thanks for taking the question. You know, Brendan, now that we have effectively a stable three-carrier market in the U.S. going forward, maybe you could just update us on kind of longer-term expectations where you think, you know, net organic growth can get to domestically, especially once you watch out some of the consolidations, Aaron, you know, that you've talked about on this call.

Yeah, sure. I would expect – I'll give you a little range because I think at any given period, any given quarter, we don't know for sure, but it's probably in that 4% or 5% range. And it's basically made up of 3% roughly from escalators. I think the long-term domestic churn is around 1%. I think what we got it to for this year is slightly higher than that. But we have, you know, like the US cell stuff and a couple other things in there that I think will ultimately wash out. So long term, I think that's in the 1% area. And so that leaves the organic lease up as kind of the question mark. And I think 2% to 3% for that item is a reasonable expectation over time, especially when you get back to more of a network-driven competitive environment. which we tend to thrive in. I think there will be quarters where we do something towards the higher end of that range, and there will be quarters where we do something towards the lower end. But I think that's the best reasonable assumption going forward.

Great. Thanks for that. And just one follow-up. I think you said that the bulk of your activity was coming from new COLOs this year. If you could just remind us if you have any split between COLOs and amendments. And I guess... you know, some of the spectrum options that have been talked about, like upper C band. Do you think we're still, you know, kind of two to three years away from seeing, you know, amendment activity from new spectrum pick up again? Or what do you think the timeline is from when we really start to see, you know, new spectrum actually hitting your sites where you can monetize it?

Yeah, so we still have a heavy amount of contribution from co-locations. I can't give you the specific percentage because there's some nuances in the way that the master agreements are set up, but it's definitely more in terms of dollars coming from co-location than from amendments. From a spectrum implication standpoint, the upper C-band piece likely will be several years away. I mean, I would think that's somewhere around the turn of the decade before that starts to impact us, even though it is expected to be auctioned by mid-year next year by the time it's cleared and actually starts getting deployed, it's probably going to be 2029 to 2030. But there is spectrum-driven activity that we expect will be taking place prior to that with spectrum that's currently in the hands of carriers that they haven't yet deployed. And there's a mix of those things. A lot of them, you know, for instance, some of the carriers have with their AWS and PCS spectrum the need to deploy deploy massive MIMO antennas and, in particular, radios in order to maximize the benefit of that. You have C-band sitting with T-Mobile that has not been deployed at all yet that, at some point, we would expect them to start to deploy. So there's still going to continue to be activity with the spectrum that's currently in the hands of the carriers and some of the new spectrum that they've acquired. For instance, AT&T has acquired from DISH. Those will all be drivers, but the new spectrum auctions will be helpful to start to fill the coffers back up so that as they get through those cycles, you start to see the next wave of activity with those newer plans. Okay. Thanks, Brennan. Sure.

Okay. Moving on to Michael Rollins from Citi.

Thanks, and good afternoon. So just thinking about just some of the comments you were providing about leasing, if organic leasing annually should be 2 to 3% a year, I think this year is calculating at the midpoint to be slightly below that. Do you view 2026 as the bottom? And what you're just describing in terms of factors that contribute to activity, just collectively driving more activity over the next few years? And then secondly, I was just curious, you know, as you're getting through, you know, calendar consolidation and you're pulling out customers that are, you know, customers that haven't paid you, what's left? So what's left in terms of remaining consolidation that we need to be mindful of both in the U.S. and internationally? And is there anything else that gets into a way of a kind of smoother organic path from here?

Okay. Thanks, Mike, for the questions. On the organic leasing question and whether 26 is the bottom, basically, I think it's It's definitely right at the bottom. I think it probably is the bottom. I mean, obviously, I have to see how things play out. The reason that it's a little bit below the range that I gave is you see a little bit of cyclicality, and while we're seeing a pickup with Verizon, we had some pretty heavy leasing activity with one of the other carriers, T-Mobile, and that has slowed those going cycles a little bit more. But I expect that we'll start to see that pick up again, which will help move the total back up. And with regard to AT&T, I think we've discussed before the structure of our MLA, which was a little bit front-end loaded in terms of payments associated with activity. And because it was front-end loaded, it's a little bit slower now. But the actual amount of activity is more even than the actual revenue recognition was for us. Given that dynamic, that agreement will be up in a couple of years, and I would expect that in a normalized environment, if you normalize for that, we would definitely be within the range that I mentioned. So I'm pretty comfortable that that is an appropriate range going forward. And then on the consolidation question in terms of what's left, I think there's not much left. I mean, certainly all the big things have happened or are in the process of happening right now. We're in the last year of – well, we're taking all the dish, and we're in the last big year of Sprint, although there is still some amount of Sprint left, less than $20 million of that left over time over the next couple of years. And then you have the U.S. cell phone. churn in the U.S. that we talked about earlier. Outside of those items, it's really miscellaneous cats and dogs, so there's nothing that I would think would be overly material in terms of its impact. Internationally, we've also faced most of the big items, particularly in Brazil with oil. We've actually pulled forward into this year all of that oil wireline system churn, so there won't be any more of that after this year. And there may be some continued nuances. We still have overlapping sites there between Claro and Hawaii and between Claro and Nextel even. And so there's a little bit of that. But in terms of scale and size, I think we've really seen all of them. So I would expect to see a marked improvement as we get through this next year or two. And then there's just not that much left.

Very helpful. Thanks very much. Thanks.

Our next question comes from Jim Schneider, Goldman Sachs.

Good afternoon. Thanks for taking my question. You know, just wrapping up the past couple questions into the broader long-term question for you, I was just kind of curious, you know, do you think that there's a clear path with domestic getting back to four to five, international hopefully better than that, you can get the entire business back to sort of that 5% range, and it's something that could happen as early as 27, or could it be 20, 28 or later? Thank you.

Sure. Well, the answer is yes. I think we can get back there. I think the timing is probably we'll be moving partially back there in 2027. And I think more fully there as you get into 28 and 29, because there will be some hangovers of some of these, you know, remaining churn items that we're dealing with. But yeah, I would expect definitely that we should get there and international should grow faster. That's the idea of why we're there. They're less mature markets. They have a lot more to do in terms of network build out. And I think as we've seen some of these rationalizations, take place, which is the challenge of the international market, we're getting many of them behind us, and so growth should definitely improve in those markets in the coming years.

Thank you. And then maybe specifically, I think you mentioned some activity among your specific domestic carriers, but Relative to Verizon, I think on their prior conference calls, they've talked about sort of finishing up their C-band deployments and adding more small cells. Is that consistent with the business trends that you're seeing from them right now?

Yeah, we've seen them get – it's consistent in the sense that they have done a lot of the C-band upgrades. There may be some. we still have a small percentage of sites where I would expect to still see a little bit of activity there. So it's consistent in that respect. And I think when they talk about the small sales, they're talking about those upgrades with that spectrum or deploying that spectrum through small sales. And that piece, you know, we have not a lot to do with because we're not a small sale company. But what we do have is a very significant embedded base with them. And under our agreement, it's clear that they have expectations for really expanding out their network through new co-locations. Plus, we would expect to see some of their existing AWS and PCS deployments be upgraded with massive MIMO radios, so that should drive some amendment activity as well.

Thank you.

Before we move on to our next caller, a reminder to our audience, if you want to ask a question, please dial pound two. Our next call is from David Barden, New Street Research.

Hey, guys, thanks so much for taking the question. So I guess I had two. One was just maybe for you, Lois or Mark, on the Brazilian real forecast, you know, American Tower, made an assumption that the real for 2026 is going to be 5.5 and you guys made an assumption it's going to be 5.2 and it's trading at 5.13 and i would love to kind of understand you know how you guys come to your assumption uh so we can kind of figure out maybe who's right and then the second question if i could i've asked this of others and brendan um you know if this is not paying their bills You know, filing a lawsuit is one thing, but, you know, why are you not sending guys out in the field with a pair of snippers and just turning off the network and tearing down the gear and selling it for scrap metal? I'm fairly sure if you asked Jeff to go do that for you, he would volunteer. So, like, what is the strategy around this, and why would you not do that? Thank you.

David, first of all, you don't know what we're doing and what we're not doing. Okay. Okay. And second of all, we follow the law, and Jeff is busy right now, so I don't have to tell him about it. But, yeah, I mean, we obviously have been fully, as I'm sure our peers have, have been fully evaluating all of our rights and opportunities to enforce, you know, our position. So, I can't really say much more about it. And your other question, I mean, I can let Mark answer the one on the BRO.

Yeah, thanks, David. I think the only thing I can tell you is that both 550 and 520 would probably be the wrong answers. We debated that internally a lot. I'll give you one data point. The Federal Bank of Brazil is forecasting 550. Economist forecast anything between 550 and below five. The spot is at 514. And I could tell you that Brazil basically uh exported at the next export of over four billion dollars uh just in january they were exporting more than importing so everybody's buying uh reality and the short-term interest rates of 15 so based on this we think the reality is going to be strong and probably closer to 5.0 than 550 by the end of the years so we have to take a shot and This is a bad shot. We have 520, and I'm sure it's going to change. But we expect the real to be strong in 2026, just because short-term interest rates are high, and the country is the next exporter.

Yeah, and David, at the end of the day, we're giving you an estimate, and we're telling you exactly what it is. If you think it's something different, you can, you know, come to your own conclusions on that. That's why we tell you what we're assuming. But as Mark said, Neither of us is going to be right. We just don't know which one of us . That was super helpful, guys. I really appreciate it. Thank you.

All right. Our next caller is David Guarino from Green Street.

Thanks, Anna. Land in Guatemala you purchased. We often don't really get comps or valuations for land underneath tower sites. It'd be great to hear how you underwrote the deal, whether it was from a multiple perspective or an IRR perspective. And then are there any other large land portfolios underneath your site that you guys might look to acquire in the future?

I mean, we have a constant program to look at the land under our towers, first of all, just generally speaking. We do that in the U.S. and internationally and look for opportunities to buy land where we can for two reasons. One, because Typically, we're able to negotiate deals that are very accretive, so there's a financial reason. But the other reason is that it secures those properties and removes a risk that could exist at some point. as they near the end of terms. So for both of those reasons, we do that. In the case of the Guatemala deal, it was kind of a special opportunity because it was so concentrated together so that we could do one transaction and essentially buy in the land under 3,900 sites. This was part of the pool of sites that we bought in the Millicom transaction, so that's why that opportunity arose. And we bought it at a high single digits or actually mid-single digits price. multiple. So the valuation was very, very good. It was immediately accretive to us. And as I said before, on the overall strategy, it also de-risked any concerns around those properties and those assets that we have on them.

All right. That's helpful. Make sure to cover on the multiple on that. And then maybe switching gears on the data center side, I know in the past you've made some what's called smaller R&D-like investments, but obviously nothing new moving for the company. But Should we think about SBA looking to invest more heavily in the data center space going forward based on what we've learned or just looking towers at the best ownership model for the company?

Yeah, we do. I mean, obviously, data centers are hot these days. But the data centers that we own were helpful to us in becoming educated around how to run that type of operation with the idea that we're looking at more edge computing type of solutions down the road that would largely be based at our tower sites. That was the thesis and why we spent the money on it. It performed fine to standalone operations, but it's not our intention to continue to add those types of data centers. However, I do think that the development of incremental edge compute opportunities is starting to advance more than it has in the past. I mean, this has been something we've been talking about for a decade, and we haven't really seen much of it. But I would say in recent times, we're starting to see more indicators that that may become something that's a little more prevalent with pushing out AI-based solutions further to the edge. Compute needs to be a little bit closer. And I think we're going to be a player in that space that will be able to help people just because we have such a large set of assets and locations all across the country. So that element will definitely be participating, and I'm excited about what it might bring. But in terms of, you know, the bigger standalone data centers, we don't think we need to have those to support that effort, so I wouldn't expect to see us invest anymore there. All right. Thank you. Thanks.

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Well, great. Well, thank you, everybody, for joining. We appreciate it, and we look forward to sharing our first quarter results with you in a couple of months. Thank you.

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