SBA Communications Q4 AFFO Misses, Revenues Grow 3.7%, Costs Surge
SBA Communications reported Q4 AFFO per share of $3.19, missing estimates of $3.25 and down from $3.47 year-ago, while revenues rose 3.7% to $719.6 million. Site-leasing costs climbed 12.5% and interest expense increased 12.5%, driving operating income down 21.8% to $298.9 million.
1. Q4 AFFO and Revenue Performance
SBA Communications reported Q4 adjusted funds from operations of $3.19 per share, missing the $3.25 estimate and down from $3.47 year-ago, while revenue rose 3.7% to $719.6 million, slightly below forecasts.
2. Rising Costs and Profit Impact
Cost of site leasing increased 12.5% to $130.7 million, site development costs jumped 24.2% to $44.8 million and interest expense rose 12.5% to $124 million, contributing to a 21.8% decline in operating income to $298.9 million.
3. Portfolio Expansion Activities
The company acquired 2,026 communication sites for $236.4 million, including 2,020 sites from Milicom, built 164 towers and held 46,328 sites as of Dec. 31, 2025, with a $45 million commitment to buy 48 more sites by Q2 2026.
4. Dividend Hike and Guidance
A 12.6% dividend increase to $1.25 per share was declared for Q1 2026, and 2026 AFFO guidance of $11.84–$12.29 per share sits below the $12.73 consensus, with adjusted EBITDA expected at $1.912–$1.932 billion.