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Sep 30, 2021
Crown Castle Q3 2021 Earnings Report
Reported strong results in the third quarter and increased the annualized common stock dividend by approximately 11% to $5.88 per share.
Key Takeaways
Crown Castle International Corp. reported results for the third quarter ended September 30, 2021. Site rental revenues grew 8%, and AFFO per share grew 13% compared to the same period last year. The company also increased its annualized common stock dividend by approximately 11% to $5.88 per share.
Site rental revenues grew 8%, or $112 million, from third quarter 2020 to third quarter 2021, inclusive of approximately $77 million in Organic Contribution to Site Rental Revenues and a $34 million increase in straight-lined revenues.
Income from continuing operations for third quarter 2021 was $351 million compared to $163 million for third quarter 2020 and was predominantly impacted by the increase in site rental revenues and services contribution as well as the absence of a loss of $95 million on retirement of long-term obligations.
AFFO per share for third quarter 2021 was $1.77, representing 13% growth when compared to $1.56 for third quarter 2020.
During the quarter, Crown Castle paid common stock dividends of approximately $575 million in the aggregate, or $1.33 per common share, an increase of approximately 11% on a per share basis compared to the same period a year ago.
Crown Castle
Crown Castle
Crown Castle Revenue by Segment
Revenue by Segment
Site Rental Revenue
CapyFin.comServices and Other Revenue
CapyFin.com Forward Guidance
Crown Castle provided its outlook for full year 2022, expecting AFFO per share growth at the high end of its long-term target.
Positive Outlook
- AFFO per share growth for full year 2022 will be at the high end of our long-term growth target
- Expect to grow AFFO per share at a compound annual growth rate of 10% from 2020 through 2022
- Believe we are in a great position to deliver on our long-term dividend per share growth target
- Business and balance sheet are positioned well to support consistent AFFO growth through various economic cycles
- Expect to maintain a consistent dividend payout ratio and once again fund our discretionary capital budget next year with free cash flow and incremental debt capacity
Challenges Ahead
- The expected increase includes a $20 million increase in tower non-renewals to approximately $60 million in 2022 from approximately $40 million in 2021 that primarily relates to the T-Mobile and Sprint network consolidation
- Impact from non-renewals is expected to increase by approximately $15 million
- Capital expenditures are expected to be $1.1 billion to $1.2 billion in 2022, which compares to an expected $1.1 billion in 2021 and $1.5 billion for full year 2020 actual
- The lower levels of expected discretionary capital expenditures in 2021 and 2022 as compared to 2020 primarily reflect the expected annual deployment of 5,000 small cells in each of 2021 and 2022 relative to approximately 10,000 small cells deployed in 2020.
- This Outlook section contains forward-looking statements, and actual results may differ materially.
Revenue & Expenses
Visualization of income flow from segment revenue to net income