Crown Castle International Corp.
) - a leading independent operator of wireless communication
towers in the U.S. - has started functioning as a Real Estate
Investment Trust (REIT) from Jan 1, 2014. Earlier, in 2012, the
company's closest rival
American Tower Corp.
) also converted itself into a REIT.
A REIT status will benefit the company in terms of tax savings
and enhancing long-term shareholders wealth. Moreover, it will
also minimize the weighted average cost of capital. Following the
conversion, Crown Castle will distribute 90% of its earnings
through dividends every year, reducing tax.
Recently, Crown Castle decided to pay a quarterly cash dividend
on its 4.50% Mandatory Convertible Preferred Stock on Feb 3, 2014
to holders of record as on Jan 15, 2014. The rate of dividend is
$1.1625 per share.
In the third quarter of 2013, Crown Castle reported mixed
financial results with the bottom line missing the Zacks
Consensus Estimate but the top line surpassing the same. The
company exited the third quarter with $218.6 million of cash and
a huge debt of $10,660.1 million. Crown Castle expects Site
Rental revenues for the fourth quarter to be in the range of $625
to $630 million while AFFO is estimated in the $318 - $323
Crown Castle currently has a Zacks Rank #3 (Hold).
Other Stocks to Consider
Other better-ranked stocks in the wireless tower industry
Arris Group Inc.
SBA Communications Corp.
). Arris carries a Zacks Rank #1 (Strong Buy) while SBA
Communications holds a Zacks Rank #2 (Buy).
AMER TOWER CORP (AMT): Free Stock Analysis
ARRIS GROUP INC (ARRS): Free Stock Analysis
CROWN CASTLE (CCI): Free Stock Analysis
SBA COMM CORP (SBAC): Free Stock Analysis
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