By Maria Armental
Crown Castle International Corp. swung to a profit in the fourth
quarter as the cell-tower owner reported a sharp increase in
revenue.
The results benefited from the company's $4.85 billion deal with
AT&T , which closed in December.
For the current quarter, Crown Castle expects net income between
$111 million and $144 million and funds for operations, excluding
certain items, of between $1.09 and $1.10 a share. For the year,
the company expects net income of $445 million to $529 million and
adjusted funds from operations of between $4.33 and $4.39.
AFFO is a closely watched measure of performance for real-estate
investment trusts, or REITs, that measures a trust's net
income.
Founded in 1994, the Houston company started trading publicly in
2001 and converted to a REIT last year.
Companies like Crown Castle--which buy or build portfolios of
cell towers, which they then rent to carriers--have grown amid a
wave of investment driven by increased demand for wireless
Internet.
In December, Crown Castle more than doubled its dividend to
$3.28 a share, from $1.40, following pressure from hedge fund
Corvex Management LP.
For the latest period, Crown Castle reported net income of
$148.1 million, or 41 cents a share, compared with a year-earlier
loss of $23.5 million, or 11 cents a share. Those figures include
dividends on preferred stocks. The company had expected profit of
29 cents to 39 cents.
Net revenue rose 21% to $967.6 million, topping the Wall Street
consensus of $931.8 million.
Adjusted funds from operations were $1.04 a share, up 14% from
the year-ago period, but on the low end of the company's projection
of $1.04 to $1.05.
Shares rose 1.16% to $82.30 in recent after-hours trading.
Through Wednesday's closing, the company's stock had risen 9%
over the past 12 months.
Write to Maria Armental at maria.armental@wsj.com
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