SBA Communications Corporation

Welcome and thank you all for joining today's SBA second quarter 2026 results. Please note that today's call is being recorded and currently all attendees are in a listen-only mode. There will be opportunity for Q&A at the end of today's call, at which point we will make sure to give you instructions on how to ask a question. With that, I'd now like to formally begin today's call and turn it over to Louis Friend, Vice President of Finance and Capital Markets. Please go ahead.

Good evening and thank you for joining us for SBA's second quarter 2026 earnings conference call. Here with me today are Brendan Cavanagh, our President and Chief Executive Officer, and Marc Montagner, 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, Thank you for joining us. With that, I will now turn it over to Marc to comment on the second quarter results and 2026 outlook.

Thank you, Louis. We had another good quarter, and our results were in line with our expectations. Given the solid performance in the second quarter, we're modestly increasing our full-year outlook for site leasing revenue, FFO, and FFO per share as compared to our prior 2026 guidance. The primary drivers of these increases include higher straight-line revenues and improved net cash interest expenses. In the second quarter, FFO per share was $3.05, and we per cash dividend of $1.25 per share. We continue to operate efficiently, controlling direct costs, and achieving company-wide tower cash flow margins of just under 80%. In the U.S., we added approximately $9 million domestic new lease and amendment billings in the second quarter. The bulk of the activity continues to come from new co-locations as carrier boats densify and expand their network footprints. With respect to churn, our prior outlook for both print and Ecostar-related churn for the year remains unchanged. With regard to Ecostar, we continue to litigate the matter in federal court and believe strongly in our contractual rights. Internationally, we continue to see healthy demand for our infrastructure, and we added approximately $4 million of new lease and amendment billings in the second quarter. International churn continues to be elevated due to carrier consolidations, carrier bankruptcy restructuring, and wireless operators networks rationalizations. Moving to our balance sheet, I'm very pleased to discuss our recent debt offering in July, We issue our first unsecure investment-grade bonds. The total amount raised was $3.5 billion, and that proceeds were used to pay in full both our total note B and amounts outstanding on our revolving credit facility. As of today, the revolver is fully paid down, and we currently have a $570 million cash on our balance sheet. For format for this transaction, the amount of secure versus unsecure debt is now below 50%. The transaction generated very strong demand for each of the three tranches we issue. The three tranches include $1.350 billion due 2030 with a cash coupon of 4.78%, $1.350 billion 2031 with a cash coupon of 5.15%, and $800 million due 2033 with a cash coupon of 5.45%. In aggregate, The $3.5 billion is a blended cash coupon of 5.11% and a weighted average maturity of five years. In addition to the new bond offering, we put in place a new larger revolving credit facility with $2.5 billion capacity, which is unsecure. We now have a solid base of investors for our investment-grade debt, and we plan to continue to issue investment-grade notes in the future to refinance our upcoming maturing ABS, and High Yield Security. I would also like to point out that in June, SBA was upgraded from triple V bonus to triple V by S&P, another positive step in our new investment grade journey. Consistent with our prior outlook, we continue to assume that that $1.2 billion November ABS maturity will be refinanced in November of this year at 5.25%. We ended the quarter with approximately $13 billion of total debt. Our current leverage of 6.4 turns net debt to adjusted EBITDA remains near historical lows and within our target range of 6 to 7 times. During the second quarter, we declared and paid a cash dividend of $132.7 million, or $1.25 per share. And today, we announced that our Board of Directors declared a quarterly dividend of $1.25 per share, payable September 17, 2026, Thanks, Marc.