Release Date: April 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss a bit more about some of the preconditions you're seeing for better domestic leasing activity, the applications that you described for new leases and amendments, and does this give you encouragement that 2025 can see better leasing activity than 2024?
A: (Brendan Thomas Cavanagh - CEO, President & Director) It's a bit premature to predict 2025 based on the current data. While there's a minor increase in applications, it's too early to comment on the impact for 2025.
Q: Where do you see the most interesting build-to-suit opportunities across your markets? And can you remind us of your guidelines for M&A, either within existing markets or elsewhere?
A: (Brendan Thomas Cavanagh - CEO, President & Director) Opportunities are primarily in African and select South American markets. For M&A, the focus is on high-quality opportunities in existing markets, guided by financial analysis and expected returns over about five years.
Q: Can you provide an update on where Oi is in terms of equipment being decommissioned off of towers for their mobile network and prospectively for the wireline?
A: (Brendan Thomas Cavanagh - CEO, President & Director) For Oi wireless, the decommissioning is about 40% complete, varying by carrier. The wireline side is still early in the process, with significant runway ahead as they reorganize and continue to operate the network.
Q: Regarding the portfolio review, has there been a shift in capital allocation towards buybacks due to valuation issues in the M&A environment? Also, can you share details about the 271 sites you are acquiring?
A: (Brendan Thomas Cavanagh - CEO, President & Director) There's a shift towards buybacks due to better perceived returns compared to current M&A opportunities. The sites under contract are primarily in South America, consistent with previous disclosures.
Q: How are you managing leverage in the current high interest rate environment, and do you have a target leverage ratio for the end of the year?
A: (Brendan Thomas Cavanagh - CEO, President & Director) The focus isn't on a specific leverage ratio but on reducing absolute debt levels, especially considering upcoming debt maturities. Flexibility is maintained for potential investment opportunities.
Q: Can you discuss the impact of the comprehensive MLA signed with AT&T last year? Has it helped generate more activity on your sites with AT&T, and is there appetite for similar agreements with other customers?
A: (Brendan Thomas Cavanagh - CEO, President & Director) The agreement with AT&T has facilitated smoother operations and could be beneficial with other customers. Existing relationships and specific customer needs guide the potential for similar agreements.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
