Welcome, and thank you for joining the SBA fourth quarter 2024 results. This call is being recorded. All participant audio lines are in listen-only mode until the Q&A session of the call. We'll give you instructions on how to enter the queue at that time. With that, I will now turn the call over to Mark DiRussi, Vice President of Finance. Please go ahead.

Good evening, and thank you for joining us for SBA's fourth quarter 2024 earnings conference call. Here with me today are Brendan Cavanaugh, our President and Chief Executive Officer, and Mark 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 2025 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 24th, and we have no obligation to update any forward-looking statement 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 under Supplemental Financial Data Package, which is located on the landing page of our Investor Relations website. As part of an ongoing effort to improve our earnings materials, we have made certain modifications to the Supplemental Financial Data Package and will be providing the materials in both PDF and Excel form. Note, the revised package does not exclude any previously provided financial or operating metrics. With that, I will now turn the call over to Brenton.

Thank you, Mark, and good afternoon. The fourth quarter was a solid finish to the year. Results for the quarter were in line to slightly ahead of our estimates, even with worse than assumed foreign exchange rates. Domestic new carrier activity, or bookings, continued to increase sequentially from the third quarter. The shift in the makeup of our new business also continued, with a higher percentage coming from new lease co-locations versus amendments to existing leases. Our carrier customers continue to expand their 5G mid-band coverage, including adding capacity for fixed wireless access, as well as extend network coverage into areas of the country that have little to no cell coverage today. Even with increased bookings in the quarter, our leasing application backlogs grew throughout the quarter and finished at the highest level of the year, and our U.S.-based services business had its best quarter of the year as well. The beginning of 2025 is also off to a strong start, suggesting another quarter-over-quarter increase in new leasing business to begin this year, and our 2025 services outlook contemplates a year-over-year increase in that business. Our U.S. customers are busy, and we expect to be a key partner to them this year in support of their network goals. Internationally, our fourth quarter results were in line with expectations as our customers continue to invest in their networks. In almost all of our international markets, the mobile network operators are well behind the U.S. in terms of 5G coverage, so we anticipate continued network investment to close that gap and to broadly expand coverage to underserved areas. In many ways, wireless is an even more critical service in our international markets than in the U.S. International churn, unfortunately, continues to be elevated, largely due to customer consolidation, and we are working closely with our customers to help them achieve necessary network efficiencies. We believe the surviving customers will be stronger and better positioned for ongoing investments and ultimately will support greater stabilization in our international cash flows. Overall, 2024 was a successful year. While our stock performance was hindered by the headwinds of the macro interest rate environment and a strong dollar, we had several accomplishments that set us up well for the future. Operationally, we expanded and strengthened our relationships with our largest customers. We grew our leasing and services backlogs, refreshed our mission, vision, and values, and streamlined a number of our operations and processes. With regard to capital allocation, we invested over $550 million in asset acquisitions, stock repurchases, and new tower builds, all while growing our dividend at an industry-leading 15%. We also improved our balance sheet and liquidity position. In the beginning of the year, we refinanced our $2.3 billion term loan, pushing out the maturity to 2031, extended the maturity of our revolving credit facility, and increased it from $1.5 billion to $2 billion, and subsequently entered into a forward-starting interest rate hedge, reducing our future floating rate interest exposure and locking in a much lower rate than can be achieved today. In addition, in October, we refinanced $2.1 billion of tower securities at rates well below where those same securities would price today. We ended the year at 6.1 times net debt to adjusted the drop, the lowest level in our In February of last year, I laid out my strategic priorities, focusing mostly on ways to enhance the portfolio with the goals to stabilize results, grow the core business, and improve the overall quality of our assets, be it through inorganic growth or new agreements with our customers. While we still have work to do, we made major strides toward these goals. As announced last quarter, we entered into an agreement to purchase approximately 7,000 towers from Millicom in Central America. This immediately accretive transaction positions SBA as the leading tower operator in the region, with over 10,500 Proforma sites. Beyond just the absolute size and scale, this deal aligns us with one of the leading M&Os in the market under long-term U.S. dollar-denominated lease agreements. We also entered into a significant build-to-suit agreement with Millicom that we expect will drive growth and further improve our position in the region for years to come. In fact, our 2025 outlook incorporates a planned level of up to 800 new tower builds this year, the largest number for SBA in over 20 years, with the majority of those in Central America. Needless to say, we're excited about this transaction and its contributions to our future growth and stability. Alternatively, when we are in a subscale position and don't see a path to scale or other potential limitations on a market's future performance, we'll look to exit those markets. Like we did in Argentina back in the fourth quarter of 2023, we officially exited the Philippines in January. And today, we've also announced we are under agreement to sell our operations in Columbia. Columbia market represents less than 200 sites, and the impact to the financials are immaterial. It is not our desire to exit markets. In fact, it is much more our preference to find ways to scale, aligning with leading carriers and driving returns. We will continue to look for ways to do just that across our remaining markets. Each of the steps taken over the past year will help our teams be better focused and better positioned to maximize new business opportunities. Looking at 2025 and beyond, the key growth drivers remain intact. Mobile network consumption continues to grow, and limited new spectrum availability means more equipment at the cell site. Fixed wireless access, the incorporation of next-gen AI applications and handsets, regulatory build-out requirements, and remaining 5G coverage expansion are expected to contribute to ongoing network investments. The strength of our balance sheet and the significant free cash flow that we generate every year will allow us to continue investing in high-quality new assets, as well as shareholder remuneration through industry-leading dividend growth and share repurchases. We are optimistic about our future opportunities. Before turning it over to Mark, I'd like to thank our team members. The company's ability to achieve our vision, to be our customer's first choice provider and the industry leader in quality infrastructure solutions, is only possible because of the incredibly hardworking team members we have here at SBA. I'd also like to thank our customers for their trust in us, and we look forward to collaborating with them to achieve their network goals. With that, I'll now turn things over to Mark who will provide additional details.

Thank you, Brendan. Fourth quarter domestic organic revenue growth over the fourth quarter of last year was 5.1% on the growth basis and 2.2% on the net basis, including 2.9% of churn. In a quarter, we added approximately $8.5 million in new leases and amendments billings. With respect to the 2.9% of churn, 1.6% was related to spring consolidation, or approximately $7 million. Year-over-year, international organic recurring cash leasing revenue growth for the fourth quarter, which is calculated on the constant currency basis, was 1.7% net, including 6% of churn, or 7.7% on a gross basis. In Brazil, our largest international market gross organic growth was 8.7% on a constant currency basis. Four international returns remain elevated in the fourth quarter, mostly to previously announced carrier consolidation. During the fourth quarter, consolidated cash-side leasing revenue in adjusted EBITDA, denominated in U.S. dollars, was 78% and 81% respectively. The majority of non-U.S. dollar-denominated revenue was from Brazil, with Brazil representing 15.6% of consolidated cash-side leasing revenues during the quarter. Today's earnings press release includes our initial 2025 outlook. Domestically, outlook reflects both the lower level of carrier bookings we experienced in 2024 and our expectation for increased activity throughout 2025, while guiding to a range of $35 million to $39 million from new leases and amendments. The outlook also assumed a range of $50 to $52 million related to spring churn and $20 to $22 million regular churn. Our previously provided estimate of aggregate spring-related churn over the next several years remained largely unchanged, with an estimate of approximately $50 million in 2026 and approximately $20 million thereafter. For our international segment, our outlook reflects steady network investment, guiding to a range of $16 to $18 billion for new leases and amendments. The outlook also assumes a range of $27 to $31 million related to churn. Churn continues to be elevated as we work through carrier consolidations, some carrier bankruptcies or restructurings, and RISE operators' network resolution nations. We are working with our carrier customers to minimize trends over the long term. Additionally, FX continues to be a headwind, and we're guiding to a negative $25 million year-over-year impact from FX on site leasing revenue. Turning to services, we're guiding to a range of $160 million to $180 million revenue, reflecting the increased carrier activity we are seeing at our sites today. We saw a meaningful increase in activity in the second half of 2024, and we expect to see similar levels throughout 2025. Outlook assumed an anticipated closing date of September 1st for the previously announced Medicare & Combs transaction, contributing approximately $42 million to cash site leasing revenue and $29 million of power cash flow to our 2025 outlook. The ultimate closing date is dependent upon regulatory approval and other requirements and may differ from this date. Please also note that Outlook does not assume any further acquisition beyond those which, as of today, are under contract and expect it to close by year-end. We also do not assume any share or purchase in Outlook. However, it is possible when you invest in additional assets or share or purchase or both during the year. I will now turn the call over to Mark. We provide additional advice.

Thanks, Mark. As we previously announced on our third quarter call in October of last year, the company issued through an existing trust two tranches of Tower Revenue Securities for a total of $2.07 billion, which included a tranche of $620 million issued at 4.654%, with an anticipated repayment date of October 2027 and a final maturity date of October 2054. We also issued a tranche of $1.45 billion, issued at 4.831 percent, with an anticipated repayment date of October 2029 and a final maturity date of October 2054. Our next maturity is a $750 million ABS note due January 2026. Our current leverage is 6.1 times net debt to adjusted EBITDA and fourth quarter net cash interest coverage ratio of adjusted EBITDA to net cash interest expense was very strong at 5.5 times. Our weighted average maturity is approximately 3.4 years, with an average interest rate of 3.2% across our total outstanding debt. As of today, our $2 billion revolver remains fully under on. During the fourth quarter, we declared and paid a cash dividend of $105.4 million, or $0.98 per share. And today, we announced that our board of directors declared a first quarter dividend of $1.11 per share, payable on March 27, 2025, to shareholders of record as of the close of business on March 13, 2025. This dividend represents an increase of approximately 13% over the dividend paid in the fourth quarter of 2024, and approximately 35% of the midpoint of our four-year ASFO outlook. And with that, operator, we are ready to turn the call over to questions.

Thank you very much, ladies and gentlemen. As we move on to Q&A, please dial pound two on your telephone keypad to be placed in the question queue. You'll hear a notification when it's your turn to ask your question at that point. Your line will be unmuted. Okay, and let's go ahead and go to our first caller, Bhatia Levy from UBS.

Great, thank you. Can you put a little bit more color on the increase in the backlog that you're seeing right now? Do you see that coming from increased applications from a specific tenant, or is it more broad across all your tenants? And maybe some color in terms of how should we think about the book-to-bill cycle to be with co-location increasing. I know you just got it for 25, but if we assume it's a back-and-loaded year, is it fair to assume you have good visibility for U.S. leasing to be up next year?

Yeah, so the mix in terms of the backlog, I would say, is fairly broad. It's not exactly the same for each carrier. There are certain ones that are perhaps a little busier than others, but generally speaking, they're all up in terms of the applications that are coming in. And there are more, as we mentioned in our prepared comments, there definitely are more business coming from new leases relative to amendments to existing leases like we've seen in the past, and so that shift in the mix of the type of new bookings that we're seeing will drive the book-to-build cycle to be later, and therefore, you know, we would expect to see growth quarter over quarter throughout this year in terms of the contributions domestically from new leases and amendments. And so, yeah, I think that, you know, generally speaking, would be favorable to next year, but it's certainly a little premature to be talking about what next year's numbers are going to look like. Let's see how this year plays out. But our expectation is we'll see growth move up as we move through the year.

Sounds good. Thank you. All right, moving on to our next caller, Jim Schneider, Goldman Sachs.

Good afternoon. Thanks for taking my question. You know, with many of your carrier customers in the U.S. having sort of given a multi-year outlook for CapEx, which is sort of, you know, consistent with what we've seen over the past couple of years. How should we think about your ability to sort of grow domestic leasing in the out years relative to this year's guidance if those budgets remain where they are? And maybe what are some of the areas that would allow you to sort of outperform those overall CapEx growth envelopes, you know, whether it's densification, fixed wireless, or otherwise?

Yeah, Jim, I mean, the carriers obviously have very large CapEx budgets, and so what would probably be relatively minor shifts in the mix or makeup of those CapEx budgets can have a more meaningful impact on us. And so, you know, I'm not too concerned about their overall CapEx budgets being relatively flat because what we're seeing on the ground is a lot more activity around their wireless networks and specifically the macro-based networks. So, you know, as I look out into the future, I can only see what's happening now and what they're telling us today, and that suggests a lot more activity. And I think, actually, the lack of incremental spectrum being added to the mix means that they have to make sure that what they have, you know, stretches farther. And I think that's actually going to turn out to be decent for us in terms of their planning in the next couple of years.

And then, Brendan, just to follow up on that, I believe in your opening script you mentioned that you saw demand specifically for fixed wireless capacity additions. Can you maybe clarify whether that is fixed wireless capacity, you know, above and beyond or completely separate from conventional mobile capacity, or maybe any color on where that is happening would be helpful?

Yeah, I mean, honestly, it's a little bit hard to distinguish from what we see going on to the sites in terms of basic 5G mobile capacity versus fixed wireless access. But what we're hearing is, you know, in our conversations with the carriers on the ground, that that is a meaningful driver of the incremental investment in some of these locations. So what I'm giving you, I guess I would characterize as anecdotal, but we're definitely seeing the increased activity. And so, you know, we mentioned that because it is one of the drivers that we hear from our customers as to the increased investment that they're making, but I think it's probably an all of the above type of thing, ultimately.

Before we move on to our next caller, I just want to remind everyone that if you'd like to ask a question, please dial pound two on your telephone keypad to be placed in the Let's move on to our next caller, Matt Nicknam from Deutsche Bank.

Hey, thanks so much for taking the question. Two if I could. First, on the leasing outlook for $25, maybe, Brendan, if there's any commentary you can offer up in terms of what's baked in for customer-specific activity across the three nationals in BISH. And then, secondly, on the services outlook, so the guide is for $160 to $180 million. It's a little bit shy of the annualized exit rate from 4Q. If you just annualize the fourth quarter number, it implies closer to 190. And so I'm just wondering if there were any one-timers in the fourth quarter or if you're assuming any sort of moderation from any customers next year.

Sure. Yeah, so on the second one first, there's no one-timers in the fourth quarter. I think, you know, what we're giving you is based on what we have in our backlog today and the conversations we're having with the carriers. You know, the services guidance is a little bit harder to be completely precise on when you look out for the full year at this stage of the year because it's not a long-term contractual cycle the way it is in the leasing business. So as you get to the second half of the year, we tend to take, you know, perhaps a slight bit of conservatism in our approach to the back half of the year. So I don't think there's anything really that you should read into that, Matt, in terms of against the fourth quarter of last year. On the leasing outlook, yeah, I mean, we prefer to stay away from too much detail on a customer-specific basis. As I mentioned in the answer to a previous question, and we're seeing each of the big three carriers increase their activity levels, and so they're all contributing to that. We do have contributions from certain carriers that have regulatory obligations for coverage and downlink speeds that are driving, you know, a big percentage of the activity that we're seeing. So in one particular case, that's a main driver. But really they're all busier. So I would say among the big three, that's the case. And as it relates to DISH, you know, we're not seeing nearly as much as we have in the past. So that's a much lesser contribution.

Moving on to Richard Cho, J.P. Morgan.

Hi. Hi. Just wanted to follow up on the mix of business. I assume still kind of heavier amendment versus COLO, but by the end of the year, Or do you see that being more even or actually even more colo?

Yeah, it's actually – we're actually seeing in terms of dollars more – and this is the U.S. we're talking about specifically, but we're seeing greater contribution from colos today versus amendments. Historically, it's obviously been amendments predominantly, but that has happened in terms of that shift, at least on a dollar basis. The number of agreements, because the amendments are lesser dollars, tend to still favor the amendments.

spring turn this year and some next year, is there any kind of positioning in terms of maybe wanting to get that all into this year at some point, or is it still just kind of, you know, waiting for it

to roll off? Yeah, Richard, I mean, at this stage, you know, most of this year's spring turn is stuff that's frankly already happened or just about to happen in some cases, and this is the financial impact of it is what's in our numbers for this year. And when you look at next year, which is the last big year, most of the impact of that will be driven by leases that expire right towards the end of this year or the beginning of next year. And so there's really not that much time to try and pull something in. And in order to do that, you would expect, I think, that T-Mobile would expect some sort of balance in that, that there's something in that for them if they're going to pay it off early. So, you know, the quick answer is I don't think that's likely to occur in terms of accelerating it. But at this stage, we're down to the final years of the material impact. So I think everybody knows what it is at this stage.

Thank you.

Okay. Moving on to Michael Rollins from Citigroup.

Thanks, and good afternoon. Two questions. First one, if I could follow up on the last one. And as the merger churn is picking up in the U.S., is there a corresponding increase in fees for carriers leaving the equipment behind? And is that something that could be a significant contributor, whether it's this year or over the next few years as you kind of wrap up some of this merger churn? And then secondly, just maybe taking a step back on capital allocation, if you can give us an update on what you're thinking about your target debt leverage and the priorities for capital.

Sure. On the Sprint piece, there are fees associated with decommissionings or pan-walk type of fees. But actually, a lot of that stuff has been incurred because even though the churn is sort of spread out over this time period, in a number of cases, the installations have been decommissioned already. And, in fact, actually, if you look at our – the other bucket, if you look at our bridge of revenue and you look at the other bucket domestically, you'll see that it's actually down a bit. And that is one of the contributors is that we've had a decent amount of that kind of contributing to our numbers in the previous years, and so it's a little bit less now. There's still going to be more of that because there certainly are sites where they're still continuing to decommission the equipment at those sites, and we typically do that work, but I don't expect it to be something that would be all that meaningful to the results that we report.

And then on the target debt level going forward, you know what our historical target range has been,

and we've been well below that target range for quite a while now. And I think, you know, at this stage, I don't see any reason that we will likely shift from the level that we're at, sort of at between six and six-and-a-half turns of net debt to EBITDA leverage. And I say that not because it's our desire to necessarily keep it at that level. It's really about the opportunities for the investment of capital. And I think if we see meaningful investment opportunities of size and we needed to lever up a little bit to accomplish those investments, then we would be comfortable doing that. But as I sit here today and knowing that we can fully handle the Millicom deal that we're closing on later this year, I think it's a reasonable expectation that we'll probably be somewhere below six and a half times as we get to the end of the year. And that's what's implied in our current numbers that we've got it to.

Thanks. Our next caller, Rick Prentice from Raymond James.

Thanks, everybody. How are you doing?

Hey, good, Rick.

Good, thanks. Hey, I want to follow up on Michael's question a little bit further. Sure. Where do you think leverage needs to be investment-grade? You guys don't have a lot of final purchase options. Could you be investment-grade kind of in the 6, 6.5% and 6, 6.5 times range?

Yeah, well, based on where the agencies have indicated to us, and it's actually out there publicly as the breakpoints, I do believe that we could be investment-grade, certainly with at least one of the agencies, and I think with both, at the level that we're at today. It's really more of a commitment as to our intention to stay there or to go lower. And we're frankly not yet ready to make that commitment. But at some point, you know, that will be the natural course for things, and it'll happen. I just think it's a little premature to do that today. And, frankly, I'm not sure that we'd get much benefit from doing it right now, particularly on a cost-of-debt basis. It would be very small to give up the flexibility that I think is more valuable right now.

And, of course, sometimes it lets you flex up as long as you can be able to bring it back down. The Millicom transaction, remind us how much terms of leverage that should be putting on as we look at closing the deal in September and what it means kind of leverage next year.

Yeah, I mean, by itself, it puts on about 0.2 turns of leverage, so very, very small. And obviously, depending on what we're doing in other places, that may or may not even show up as we get to the end of the year. So, you know, when you're producing $1.3 billion or $1.4 billion of AFO, we can absorb actually a lot and not really move our leverage.

One more kind of strategic question. And then one kind of out there question. But when you think about AI, you touched on it in your opening remarks, when and how will AI affect towers? We've seen it, obviously, affecting data centers, but will AI benefit towers and how so and when?

Well, if I could answer that as explicitly as I'd like to, that would be good. You know, it's hard to say for sure, Rick, is the honest answer. We do believe that there certainly will be a positive impact, as we mentioned in the prepared comments, as you see these generative AI functionality embedded into the handsets. And that's really because it's a driver of incremental usage and incremental network capacity that we expect will actually be taken up as a result of those solutions. So it's not that different from other things that have been introduced in the past that have driven greater use of the network. So that broadly is very good for us. Obviously, there are AI benefits within our own business that we're introducing every day and continue to evaluate here to become more efficient, provide better information to our customers that we think could drive leasing, that kind of thing. But in terms of something more explicit than that, I think there could be, but I think it's a little too early to know for sure.

Makes sense. Appreciate it. Sure.

All right, moving on to Simon Flannery from Morgan Stanley.

Hey, Simon. To Millicom, you talked about a September 1 close. Can you just update us on where the deal timelines are? What's the sort of sensitivity? Is that going to be – do you have a good line of sight to that? Could it be earlier? Could it be later? Might it close in stages? And then, Mark, you talked about the sprint churn. Aaron, could you just give us a little bit of update on the international churn 26 and beyond what you're seeing remaining from OI and some of the other consolidation?

So on the Millicom closing date, you know, we gave you what we consider our best guess at September 1st. There's a lot of different factors that are potentially going to contribute to the timing of that. It definitely could be a different time than that. I mean, honestly, it's our desire and, frankly, it's Millicone's desire to close earlier or at least close parts of it earlier. And if we can do that, we will do that because it's additive and we both like to get going here. But there are certain regulatory hurdles that need to be cleared and other diligence items and certain other things that need to get addressed. So, you know, we pegged it at September 1st for purposes of issuing the outlook. And, obviously, if it closes earlier or parts of it close earlier, we'll update our outlook as we move through the year if that happens. I don't expect that it would close later. It's certainly possible, but I think that's unlikely. And then the international churn, you know, there's a mix of things going on there. I mean, unfortunately, most of the churn that's in our outlook internationally is in Brazil. and I would say, unfortunately, it's a little bit higher than we probably would have thought before, largely built around the OI consolidation, but it's not necessarily just the direct consolidation. It's also all the steps that the carriers are taking going through that process, the surviving carriers are taking to rationalize their networks and deal with other focus areas. And so, you know, they're, as you would imagine, trying to be as efficient as they can. And we're trying to help them through that in a way that is balanced for us, too. But it is pulling forward, I would say, some term that we probably thought would have been spread out over a little bit longer period of time. And then beyond that, you know, it's a lot of different cats and dogs in different markets. You know, the next biggest thing outside of Brazil, honestly, is a few million dollars of churn in Panama associated with the Clara Liberty consolidation. So we have those things that are still going on. But as I think that, you know, runs down, we'll see that improve. And actually, it'll be good for these markets as it will stabilize the markets.

Our next caller is Nick DelDale from Moffitt Nathanson.

Hey, evening, guys. You know, with respect to services, you've got one customer that's historically been much larger than the others. I guess, are you seeing any diversification of services work in 25 versus 24, or would you say it's broadly similar?

I would say we're seeing increases across the board, but that one big customer is increasing quite a bit as well. So I'm not sure that the mix is going to change all that much. We're still pretty heavily concentrated. And a lot of that just is based on agreements that exist with some of the other carriers, with turfing vendors and things like that. And we continue to work with them because I think, I believe, in my opinion, that they would all agree that when we do the work for them, we do it as well as anybody in the industry. And so we're seeing more and more of a preference to use us, particularly on our own sites. There's a lot of advantages for the carriers. But, you know, it has to be profitable work for us, too. And so that balance, you know, makes it a little bit more challenging. But it is one of our internal goals, Nick, that you're touching on, to diversify our revenue base in that business, because I think it's important to do, and I think it's something we can accomplish.

Okay. That's good to hear. Second, you know, an unrelated topic. Brendan, you had mentioned a step up in the rate of new builds in 25. Can you share anything about the kind of initial development yields that you're expecting with those builds? And should we think of the change in the cadence as basically being attributable to Millicom as opposed to other factors?

Yeah, I mean, the Millicom deal is definitely a big driver of that. It's by far the biggest driver of that. I mean, we've got – I mentioned in the script that we have approximately 800 new bills we expect to do this year. That's what's implied in our outlook and in the discretionary cap X. Most of that, say ballpark close to 500, it would be Central America as part of the Millicom deal. So that's definitely the biggest driver. But there are other markets as well. Tanzania is another market where we're building a lot of sites. So it's concentrated in certain markets, but the ones that we're doing are very good. We feel really good about the yields on those. day one. They don't require a ton of lease-up, but I do think there's a lot of good opportunity for lease-up in a number of these situations. So, you know, it's a positive contributor and I think will help our return on invested capital that we report as we start to get into them and

get them done. Great. Thanks. Sure. Our next caller is David Barden from Bank of America.

Hey, guys. Thanks so much for taking the questions. So, Brendan, you know, Brendan Carr has been, you know, a vocal proponent of kind of, you know, changing the BED program to incorporate a little bit more flexible technological approaches to achieving some of these broadband goals. and Fixed Wireless Access has done one of them. This has been a question we've been dealing with on the other side of the equation, which is, you know, how does it affect the wireline providers? I'm interested to hear your perspective on to the extent that anyone has been phoning in asking SBA, hey, can you help me figure out a way to address fixed wireless access as a bead solution? That would be one question. And then the second question is another big question that's kind of arisen subsequent to DISH kind of refinancing itself and getting $5 billion in capital. The question was, what were they going to do with that money? Were they going to use it to invest in handsets and marketing? Were they going to try to get to their build-out requirements? And obviously, you know, that build-out requirement extension that they just got from the Rosenworcel FCC is under threat. And I'm interested to know if there's some change in the conversation around, you know, how DISH might factor into your thinking in tower demand for the next couple years.

Yeah, okay. Well, there's a lot there, dude. On the – no, no, that's all right. On the BEAD program, I guess the short answer is no. We've not really heard much from folks who are looking to us to try and help them with fixed wireless access as a BEAD solution per se. What we are, you know, as I think – well, in my opinion, and I think others would agree with this, that it was obviously a very fiber-oriented program, and I think expanding it out to cover more than just fiber, to consider wireless as a solution is a good thing, and we would be very supportive of that. So I do think that it could be good if, in fact, it goes that direction. But it feels a little early on that, And, you know, it's pretty far down the road in terms of a lot of the money being out the door and what the plans are. So I'm not sure how much of an impact we'll see from that, but I have some little bit of a little glimmer of hope that it is a favorable contributor for us, and we certainly are supportive of that. On the DISH side, you know, when I think about the impact to us over the coming years, I think I mentioned in response to an earlier question that we don't expect a whole lot of contribution this year, and that's really because we're just not seeing that much from them. They've been much quieter. I think that they have a lot to do, and when we have conversations with our network folks, it sounds like they have a lot of plans around that. But I think the extra time that they received for these build-outs has given them the sense that they can, you know, take a little bit more time and focus on their financial house. If it's under threat and that's changed, you know, I guess we'll see what that does, if that, in fact, is a case. I'm not sure about that. But at this stage, it's pretty slow with them. So we'll see. And we're hopeful that it will pick up. We have a very good relationship with them. We have a lot of existing embedded leases, and I think, you know, there's a lot that we can do together as soon as they kind of get clarity on their plans over the next couple of years.

All right. Thanks, President.

All right. Up next is Ari Klein from BMO Capital Markets.

Thank you. And just going back to the international churn, I'm curious at the level you're expecting in 2025. do you think that that's going to be the peak? And do we need to kind of move past the term you're seeing to kind of see leasing start to accelerate in international markets, or could they kind of be, you know, separate from one another?

Yeah, I mean, unfortunately, Ari, I don't actually think that it's the peak. I don't think it's necessarily going to be higher, but I do think that next year is likely going to be at a similar level to this year in terms of international term.

But its impact in terms of organic growth overall, obviously, it weighs on it.

But there is – different markets have different dynamics right now going on. I mean, we've got a lot happening in Central America and in Africa, in Tanzania specifically. And I think we will see not only a lot of new-build activity like we're working on, but we will actually see reasonably good lease up in those markets. And in many cases, particularly in Central America, we're pretty much through the churn, the consolidation churn. A lot of it has happened at this point, and so we'll start to see that pullback. It's really Brazil, which is – we're obviously heavily indexed to Brazil. So as Brazil goes, that kind of is the deciding factor for a lot of these things, and I think Brazil probably has another year beyond this year at least where things will be a little bit challenging on that front.

Thanks. And then just maybe on sherry purchases, how should we think about that? Are those likely to be on hold, you know, until the Millicom deal is completed, or, you know, is it kind of independent of that in how you're thinking about it?

Yeah, I'd say it's somewhat independent of it. Obviously, we know that we have that commitment, that we have approximately a billion dollars of capital that we are obligated to pay out. And as I mentioned earlier, the timing of that, you know, hopefully will be earlier than what we put forth. That's what we're shooting for if we can make it happen. And if it is earlier, that means we have to have that ready and available, which we do, but it does influence our thinking a little bit. However, having said that, we typically have run our share by that program, and I expect it to be the same for the time being, in a somewhat opportunistic manner. And so if we don't see other things going on and we see an opportunity where we think there's, you know, a meaningful dislocation that happens that doesn't make any sense to us, we may, you know, react more quickly to that.

Right. Moving on to Brendan Lynch from Barclays.

Thanks for taking my question. Another follow-up on the government policy, can you talk about the potential for more spectrum auctions over the next couple years? and if you're having any conversations with customers on how that would inform their intentions and how you can support them.

Yeah, so obviously that's one of the things that's being talked about by the new FCC that we are extremely favorable on and are very supportive of, as, of course, are the wireless MNOs here in the U.S. And so I am hopeful that we will actually see an acceleration to improve the likelihood of having more Spectrum auctioned off. But having said that, even if that is the case, with the current delay that's taken place and the time it will take to get to that, and then ultimately for it to be cleared and available for deployment, you're talking about a number of years off into the future. And so the conversations that we have with our customers are less about what they'll need to do with potential new Spectrum years from now. It's more about how do they optimize and maximize what they have today that they either still have to deploy or that they can, you know, maybe redesign a little bit in order to maximize what they're able to produce with the current holdings. So that's the more immediate thing, and that's the type of thing that we would discuss rather than around future auctions at this stage.

Sure, that makes sense. Another issue, you're selling the portfolio in Columbia. Should we expect you to exit additional markets throughout this year, or is that process pretty much complete at this point?

No, I mean, it's not our intention to necessarily exit additional markets. In fact, as I mentioned, I think, in my comments, we much prefer to not do that and to find ways towards improved scale and better positioning with the leading carriers in those markets. So that's what we're focused on. But having said that, you know, in some cases, like we did in Colombia and like we did in the Philippines, if we come to the conclusion that we don't see a reasonable, viable path to getting there anytime soon, then for purposes of being focused with our operations and where we are spending our time and energy, you know, we would consider it. But it's not currently something that we have in the hopper.

Great. Thank you for the call.

Sure.

There was our last caller in the queue. One final reminder for last questions. Dialing pound two will place you in the question queue. Looks like there are no further questions at this time. That concludes the SBA fourth quarter 2024 results conference. You may now disconnect.