Market capitalization at the start of 2015
CCI – ~26.15B
ATC – ~39.14B
SBA – ~14.28B
Market capitalization today
CCI – ~46.83B
ATC – ~95.04B
SBA – ~24.91B
Market capitalization growth rate
CCI – ~79.08%
ATC – ~142.82%
SBA – ~74.44%
Since 2015, American Tower has consistently led in growing its overall company value. The key factors for CCI and ATC are their extensive asset portfolios, with both companies being aggressive in tower acquisitions. ATC stands out with a significant international business, while Crown has heavily invested in Fiber. SBA has steadily grown by acquiring small tower portfolios.
The top 3 US tower companies are undergoing significant leadership changes, with each either having changed or in the process of changing their CEO for 2024. I’ll share my industry perspective on what I anticipate each company will do in the future.
Crown Castle faces instability, appointing an interim CEO amid a Fiber portfolio review. Board tenure issues persist, but recent additions, like Bradley Singer, suggest a board shakeup. Choosing a new CEO is crucial for overcoming the lag behind American Tower. The incoming leader must decide on the fate of the fiber business; a potential sale looms. Concerns arise about asset loss post-layoffs. They must prioritize defending the core to avoid losing assets to rivals. Hiring a third-party vendor for lease extensions and buyouts will help the cause. Property owners who have Crown ground leases may see rent reduction letters, which will help to improve site margins.
American Tower holds the strongest position among tower companies, diversifying its assets effectively. The acquisition of Core Site reflects their constant pursuit of new business segments for growth and value. Selling their India operation, despite challenges, demonstrates a strategic focus on performing international markets. Known for investing in high-return assets, American Tower plans careful expansion, possibly increasing investments in the United States. Exploring options like building and acquiring new data centers and expanding the DAS business into arenas, stadiums, airports, and convention centers align with their growth strategy. The challenge lies in managing growth given their substantial size compared to competitors.
The future of SBA Communications is intriguing. While they’ve developed an international presence over the last half-decade, it doesn’t compare to American Tower. As the smallest among the top 3 US tower companies, SBA missed out on large tower portfolios acquired by Crown and ATC a decade ago. Expect continued international expansion and acquisitions of smaller tower portfolios in the US. The recent Master Lease Agreement with AT&T suggests potential agreements with Verizon and T-Mobile in the coming year.
The industry anticipates a better 2024, with significant decisions ahead for publicly owned tower companies. The question of which company will have a superior growth story in 2030 remains to be seen, and time will provide the answer.
