Profile: SBA Communications Corp (SBAC.OQ)
7 Mar 2014
SBA Communications Corporation (SBA), incorporated on December 23, 1997, is an independent owner and operator of wireless communications towers. The Company’s principal operations are in the United States and its territories. During the year ended December 31, 2012, its primary business line is its site leasing business, which contributed 97.4% of its total segment operating profit. In April 2012, through its wholly owned subsidiary SBA Monarch Acquisition, LLC, it acquired 2,300 tower sites in the United States and Central America and indoor and outdoor distributed antenna system (DAS) assets in Chicago, Las Vegas, New York City and Auburn, Alabama. In October 2012, through its wholly owned subsidiary, SBA 2012 Acquisition, LLC, it acquired TowerCo II Holdings LLC. In October 2012, ExteNet Systems, Inc. purchased Distributed Antenna System from SBA. In December 2012, the Company launched operations in Brazil and acquired 800 freestanding wireless towers from broadband wireless carriers in Brazil.
The Company’s other business line is its site development business, through which it assists wireless service providers in developing and maintaining their own wireless service networks. In the Company’s site leasing business, it leases antenna space primarily to wireless service providers on towers and other structures that it owns, manages or leases from others. As of December 31, 2012, the Company owned 2,562 towers in Brazil, Canada, Costa Rica, El Salvador, Guatemala, Nicaragua and Panama. As of December 31, 2012, the Company managed or leased approximately 4,800 actual or potential communications sites, approximately 500 of which were revenue producing.
Site Leasing Services
SBA focuses on leasing of antenna space on its multi-tenant towers to a range of wireless service providers under long-term lease contracts in the United States, Canada and Central America. Site leasing revenues are received primarily from wireless service provider tenants, including AT&T, Sprint, Verizon Wireless, T-Mobile, Digicel, Claro, and Telefonica. In the United States and Canada its tenant leases are generally for an initial term of five years with five 5-year renewal periods at the option of the tenant. In the United States and Canada its tenant leases are generally for an initial term of five to ten years with five year renewal periods at the option of the tenant. These tenant leases typically contain specific rent escalators, which average 3-4% per year, including the renewal option periods. Tenant leases in its Central and South America markets typically have an initial term of 10 years with five year renewal periods. In Central America, the Company has similar rent escalators to that of leases in the United States and Canada while its leases in South America typically escalate in accordance with a standard cost of living index. As of December 31, 2012, the Company had an average of 2.0 tenants per tower. During 2012, site leasing revenues generated outside the United States and its territories were less than 6% of total revenue.
Site Development Services
Its site development business, which is conducted in the United States only, is complementary to its site leasing business and provides the Company the ability to keep in close contact with the wireless service providers who generate substantially all of its site leasing revenue and to capture ancillary revenues that are generated by its site leasing activities, such as antenna and equipment installation at its tower locations. Site development services revenues are received primarily from providing a full range of end to end services to wireless service providers or companies providing development or project management services to wireless service providers. Its services include network pre-design; site audits; identification of potential locations for towers and antennas; support in buying or leasing of the location; assistance in obtaining zoning approvals and permits; tower and related site construction; antenna installation; and radio equipment installation, commissioning and maintenance. The Company provides its site development services on a local basis, through regional offices, territory offices and project offices.
SBA Communications Corp
5900 BROKEN SOUND PARKWAY
BOCA RATON FL 33487