Crown Castle Inc. faces interest rate risk from $2.4B in floating-rate debt, potentially increasing borrowing costs with rising rates. Future debt obligations, including Commercial Paper Notes and principal payments, are significant. The company's ability to refinance the Tower Revenue Notes by May 2025 is uncertain. Restructuring activities, including potential additional charges, pose a risk. The cancellation of 7,000 small cell nodes could result in a $125-$150M asset write-down.
Financial Upside
Crown Castle anticipates site rental revenue growth in 2024, driven by tenant additions and contract renewals. The company expects to generate at least $6.26 per share in dividends over the next 12 months. Sustaining capital expenditures are projected to be minimal at 1% of net revenues. The company's liquidity position, including undrawn revolver availability, is sufficient to cover expected uses over the next 12 months.
