Crown Castle (CCI) The Bank of America 2024 Media, Communications and Entertainment Conference summary

Leadership and organizational changes

• New CEO with significant operating experience appointed in April, shifting focus from financial to operational efficiency and cost management.

• Recent leadership transitions included three CEOs in four months and workforce reductions on both tower and fiber sides.

• Despite major changes, operational performance and guidance targets have been met, reflecting strong organizational focus.

• CEO has emphasized clarity of near-term goals and organizational stability during transition.

• Strategic review underway, with leadership prioritizing controllable actions to position for best outcomes.

Industry trends and growth outlook

• Carrier conversations about network investment are increasing, but no immediate change in growth outlook for 2024; 4.5% growth expected.

• Long-term growth through 2027 projected at mid-single digits, supported by contracted revenue and ongoing carrier investments.

• Growth cycles tied to generational network upgrades (e.g., 4G to 5G), with 5G providing higher growth than previous cycles.

• Structured agreements provide downside protection while allowing upside during network investment surges.

• Private market valuations for towers remain higher than public markets, suggesting undervaluation.

Strategic review and business structure

• All options are being considered in the strategic review, including potential sale or separation of business units.

• Fiber and small cell businesses are operationally separable, but the review focuses on whether separation adds value.

• The original rationale for acquiring fiber assets was to enhance returns by leveraging shared infrastructure for both small cells and enterprise customers.

• Investor opinions on business configuration are diverse and evolving, adding complexity to decision-making.

• Capital allocation, including dividend policy, is part of the review, with future decisions dependent on review outcomes.