Crown Castle sees increased AFFO and venue rental revenue in 2023 after strong third quarter (NYSE:CCI)

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Crown Castle (NYSE: CCI) released its 2023 outlook on Wednesday, which forecast higher site rental revenue, adjusted operating funds and adjusted EBITDA after the REIT experienced a mixed Q3 Results 2022.

The company expects venue rental revenue to be $6.5 billion midway through 2023, up 4% from the prior year’s forecast. Adjusted EBITDA is expected to be $4.5 billion, versus $6.23 billion in the 2022 outlook. AFFO is targeted at $7.63, versus $7.36 from the prior year outlook, but down from the consensus of $7.77.

In his assessment of Crown Castle’s (CCI) third quarter results, CEO Jay Brown noted that “our customers continue to upgrade their macro tower networks, and we expect another year of strong growth in 2023 with a 5% organic revenue growth in our Towers segment.”

“Furthermore, we expect small cell growth to accelerate in 2023 by doubling our small cell deployments to 10,000 nodes, more than half of which will be co-located on existing fiber with yields in line with our performance expectations. rental economy,” he added.

Due to expected cash flow growth in 2023, the company increased its annualized common stock dividend by 6.5% to $6.26 per share.

Meanwhile, the third-quarter AFFO of $1.85 is below analysts’ average estimate of $1.91, but was up from $1.77 a year ago.

Revenue of $1.75 billion beat Street’s consensus of $1.73 billion and climbed $1.62 billion a year earlier.

Adjusted EBITDA increased to $1.1 billion from $976 million in the prior quarter, primarily due to growth in venue rental revenue and an increased contribution from services.

Revenue from continuing operations was $419m versus $351m in Q3 2021.

Earlier, Crown Castle AFFO $1.85 misses $0.06, revenue of $1.75 billion beats $20 million.

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