Crown Castle Q1 Highlights: Revenue Beat, Site Rental Revenues Up 3%, Reiterates FY23 Guidance

Crown Castle Inc CCI reported Q1 revenues of $1.77 billion, beating the consensus of $1.76 billion.
Site rental revenues rose 3% Y/Y to $1.62 billion, with an organic contribution of around $85 million to Site Rental Billings and a $46 million net contribution to fiber solutions growth from lease cancellations.
Site rental gross margins rose to $1.22 billion from $1.19 billion a year ago.
Adjusted EBITDA increased 1% Y/Y to $1.10 billion.
Adjusted funds from operations (AFFO) per share, a measure of the operating performance of REITs, rose 2% Y/Y to $1.91.
Capital expenditures were $341 million in Q1, including around $272 million of discretionary capital expenditures related to Fiber and about $48 million related to Towers business.
CCI paid a common dividend per share of $1.565, 6.5% Y/Y.
"Longer term, I believe the continued demand for our 40,000 towers combined with an increasing need from our customers for small cell deployments across our 85,000 route miles of fiber will support our ability to deliver compelling risk-adjusted returns through a combination of dividends and growth," said Jay Brown, CEO.
Outlook: CCI reiterated FY23 guidance for site rental revenues of $6.488 billion - $6.533 billion, adjusted EBITDA of $4.45 billion-$4.49 billion, and AFFO per share of $7.58-$7.68.
The company expects dividend growth to be less than its 7% to 8% target in 2024 and 2025.
Price Action: CCI share closed higher by 0.87% at $133.55 on Wednesday.

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