The only wish is that your call on cell towers stocks at least a year ago would have been more accurate. Nonetheless, I am remaining steadfast on those stocks despite the existing losses. I hope your call on future gains is valid and place my trust on you and that hope.
Thanks for your excellent update of CCI's business plan and for the providing your revised valuation estimates for each of the tower REITs. I learned something by reading it. I am currently long AMT.
Great news… thanks for detailing the likely improvement.
BTW, in answer to the question about whether the number of stores impacts choice of carriers… frequently, at least with my carrier ATT… it’s hard to find a store that’s not a franchise. You can’t get the same deal in a franchise store as you can a company store.
Doesn't it make you wish they could actually handle all transactions online? I had to go into a store when setting up my plan and it took hours to setup something that should have been 10 to 15 minutes online.
Great article as always! Was wondering if you think CCI's ability to pay the current dividend is in any danger if they continue selling off assets? (I believe they hover around a 95% payout ratio)
Big risk to dividend is their capital expenditures. The cash going into fiber capex requires debt financing. It's raising leverage without improving cash flow.
For selling off assets, the valuation is critical. It probably reduces AFFO per share and it could push them into a payout ratio over 100%. In that scenario, they could either reduce the dividend level or wait for natural deleveraging as tower NOI growth over time would improve AFFO. I prefer the second route, but I think many boards are too short-term focused.
Well written. Very good explanation.
The only wish is that your call on cell towers stocks at least a year ago would have been more accurate. Nonetheless, I am remaining steadfast on those stocks despite the existing losses. I hope your call on future gains is valid and place my trust on you and that hope.
Thanks for your excellent update of CCI's business plan and for the providing your revised valuation estimates for each of the tower REITs. I learned something by reading it. I am currently long AMT.
Great news… thanks for detailing the likely improvement.
BTW, in answer to the question about whether the number of stores impacts choice of carriers… frequently, at least with my carrier ATT… it’s hard to find a store that’s not a franchise. You can’t get the same deal in a franchise store as you can a company store.
Doesn't it make you wish they could actually handle all transactions online? I had to go into a store when setting up my plan and it took hours to setup something that should have been 10 to 15 minutes online.
Absolutely!
Great article as always! Was wondering if you think CCI's ability to pay the current dividend is in any danger if they continue selling off assets? (I believe they hover around a 95% payout ratio)
Big risk to dividend is their capital expenditures. The cash going into fiber capex requires debt financing. It's raising leverage without improving cash flow.
For selling off assets, the valuation is critical. It probably reduces AFFO per share and it could push them into a payout ratio over 100%. In that scenario, they could either reduce the dividend level or wait for natural deleveraging as tower NOI growth over time would improve AFFO. I prefer the second route, but I think many boards are too short-term focused.