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Crown Castle Inc., a U.S.-based wireless tower operator, has raised its annual site rental revenue forecast for the second time this year, reflecting steady leasing demand from major carriers upgrading their networks to 5G. With around 40,000 towers across the U.S. and long-term agreements with AT&T, T-Mobile, and Verizon, the company now expects site rental revenue between USD 4.01 billion and USD 4.05 billion. In the latest quarter, it reported revenue of USD 1.01 billion and adjusted funds from operations of USD 1.12 per share, highlighting continued growth in its tower business.
Crown Castle has revised upward its full-year site rental revenue forecast for the second time this year, driven by ongoing demand from U.S. wireless carriers. The company earns most of its revenue by leasing its tower infrastructure to major carriers such as AT&T, T-Mobile US, and Verizon Communications on long-term contracts. It currently operates approximately 40,000 cellular towers nationwide. Advertisement
The real estate investment trust now expects annual site rental revenue in the range of USD 4.01 billion to USD 4.05 billion, slightly higher than its earlier projection of USD 4.00 billion to USD 4.04 billion. The upward revision reflects continued investments by major carriers in 5G network upgrades and efforts to expand capacity to handle growing mobile data traffic.
During the most recent quarter, Crown Castle posted site rental revenue of USD 1.01 billion, slightly above analysts' consensus of USD 1 billion. Adjusted funds from operations came in at USD 1.12 per share, down from USD 1.20 per share a year earlier. Despite the small decline in AFFO, the underlying tower business remains strong due to long-term lease agreements and steady demand from carriers.
Historically, Crown Castle has faced challenges such as tenant churn, elevated capital expenditure for tower and small-cell development, and occasional contract cancellations. Nevertheless, its tower leasing segment continues to benefit from structural demand as the largest U.S. carriers expand 5G networks and increase infrastructure capacity. Analysts tracking real estate investment trusts expect earnings growth for infrastructure-focused REITs to improve toward 2026, as supply pressures ease and development costs moderate.
Source Reuters
5th Jun, 2025
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