This Is Why Crown Castle Is Our Largest Position

Crown Castle International (CCI) is our largest individual position. It carries a huge weight in our portfolio, about 11%. That weight reflects our confidence in the long-term success of CCI and its business model. We've already prepared quite a few articles covering the macro outlook for tower REITs. Therefore, we want to focus on the latest developments. We previously covered all the basics about these REITs for subscribers in A Primer on Cell Tower REITs.

CCI’s recent presentation for Goldman Sachs hinted at another year of exceptional growth coming in 2022. CCI already raised guidance for AFFO per share twice in 2021 (indicating 12% growth). Now they say growth going into 2022 looks like what they saw in 2021. AFFO per share grew significantly in 2020, guidance calls for 2021 to be even better, and commentary suggests 2022 will be similar to 2021. Unlike many REITs expected to see incredible growth in AFFO per share, there was no “weak base year” during the pandemic. Low Earth Orbit satellites are often seen as a risk, but the physics simply do not work for them replacing towers.

Source: Seeking Alpha

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