Nick Del Deo

Vondran saw some rationality in small US tower multiples but nothing material; Smith restated the dividend, capex, M&A and buyback ordering.

Vondran said smaller edge deployments are drawing interest and the Raleigh facility's first megawatt is leased, with the second almost fully leased.

Confirmed all satellite providers are existing customers but deferred on their plans, pointing back to the DISH precedent rather than current discussions.

Listed new markets, existing campus expansion, and selective inorganic deals, while ruling out hyperscale and undifferentiated colocation.

Steve emphasized ecosystem curation as CoreSite's competitive moat, balancing networks, enterprises, cloud providers, and now inferencing hubs. Neo clouds and inferencing providers actively seeking access.

Steve confirmed ongoing discussions with carriers but said nothing to announce yet. Rod noted services business had record $340 million revenue last year, demonstrating operational capability for large-scale builds.

Steve said carriers still use existing installations for FWA but all raising subscriber targets, indicating growing network demand. AI video upstreaming/downstreaming expected to stress networks, upload capacity may need to shift from 10% to north of 20%. Meta glasses-style live streaming another emerging use case.

Steve confirmed land purchases in various areas as exploratory but not ready to announce new markets. Rationale: fourth consecutive record sales year with AI as major new use case creating demand for expanded footprint. Timeline from groundbreaking to revenue: approximately 2-3 years depending on power availability and zoning.

Steve highlighted many of the higher bands are 6G spectrum. Higher frequency means lower wavelength requiring more site densification. Excited about government identifying and working to make these bands available. Long-term growth tailwind for tower model.

Steve explained pre-leasing dip is purely mechanical, construction moving to service, not demand softness. Rod added 42MW under construction (highest ever at CoreSite), 296MW of power available for future development. No purposeful shift to retail; sticking to business model.

Steve confirmed it is purely a longer book-to-bill cycle, applications are healthy, just slower conversion to signed leases and equipment installation. Business is in backlog, purely timing.

Rod confirmed ~$10M in-year property revenue from DE1. Steve noted the building was already a partial CoreSite lease facility, acquisition provides full ownership of the most highly interconnected site in Denver area with incremental new business and interconnection opportunity.

Steve said CoreSite proactively prebought long lead time items since COVID era. Building contractual tariff mitigation into pre-leasing to protect mid-teens yields. Current development pipeline is secured. Tariffs may challenge acceleration of development pace but team finding ways to manage.

Steve declined specifics but confirmed expectation to be paid. Only minimum contractual commitments baked into multiyear guide. Not anticipating anything that materially changes EchoStar's business.

Steve broke services into site acquisition (steady) and construction management (slightly larger proportion this year, regional). For non-MLA activity, 60-180 day lag from services to property revenue commencement depending on customer/geography. Rod added services margins consistently north of 50%, outlook assumes 52%.

Steve said next phase focuses on operations: maintenance, utilities, supply chain under new COO Bud Noel. Not ready to quantify but expects savings beyond the $35M SG&A achieved in 2024. Will share targets when ready.

Steve confirmed demand has broadened. Chicago and New York campuses now as desirable as Silicon Valley, LA, Northern Virginia. Building DE3 in Denver. Exploring new campuses in other markets, similar to Miami expansion.

Said edge sites grew from near zero at the start of the year but could not split out GPU deployments.

Attributed the low-end leasing outlook to timing, not a change in trajectory, with interest from carriers and edge operators.

Management said the 0.2 megawatt figure was illustrative, framing edge power capacity in the tens to low hundreds of kilowatts available without capital investment.

CFO targeted increasing ground lease ownership from 30% to up to 40% over next several years, citing lower cost of capital versus competing land aggregators.

CFO and CEO said new builds are selective with minimum two committed customers required. Convergence from Verizon-Frontier and AT&T-Lumen deals creates new geographic opportunities. Tower build costs have risen significantly since COVID.

CFO confirmed approximately 80% of 2026 organic growth is already contracted through MLAs and signed leases.

CEO emphasized disciplined approach to MLAs, only where value creation exists, not MLAs for the sake of MLAs. Customer conversations have been warm with interest in long-term partnerships.

CEO said CCI has started deploying similar platforms to those at Vantage Towers, but work remains to define best-in-class cycle times and capital/OpEx efficiency over the next year.

CFO confirmed H2 CapEx increase from stepped-up land purchases, systems investment, and sustaining CapEx timing, all back-end loaded this year.

CFO said $10M G&A reduction is split between corporate and tower levels, continuing benefits from 2024 mid-year workforce reductions and strong cost discipline.

CEO confirmed automation, systems upgrades, digitization of assets, and process improvements are all continuing without waiting for permanent CEO appointment.

CFO declined to break down the SGA/revenue/interest bridge, saying it's too early and the ranges are intentionally wide.

CEO emphasized customer service differentiation, winning RF engineering preference, and re-entering new tower builds and M&A to increase market share.

Gave a clear typical range plus the upper end of current deployments.

Said existing site power has often sufficed and utility requests follow the normal process.

Agreed churn should normalize toward peer levels once Sprint and DISH roll off.

CEO confirmed talks with many satellite providers and said early edge deployments would be smaller-scale, not one-megawatt.

Some initial burst from sites opening up from carrier-controlled hands, but sustainable growth expected for extended period. Lots of sites, just beginning conversations with primarily 1 customer, pent-up demand observed.

Confirmed more constructive carrier dialogue on new US builds. Rising cost of capital and need for long-term reliable partners driving shift away from smaller entrants. Master agreements facilitating broader relationships.

Verizon deal has minimum annual commitment but Verizon could do more earlier. More smoothly implemented over course of agreement is the expectation. Straight-line impact would follow normal new agreement patterns.

Cavanagh acknowledged BEAD shift away from fiber focus is positive for fixed wireless but couldn't quantify impact. Speculated Verizon MLA partly motivated by expanding into areas where BEAD funding could supplement.

Competitor carriers see Millicom sites as opportunity to close competitive gap with the #1 carrier. Lease-up potential may exceed initial assumptions. Canada sale proceeds (~$325M) fungible across capital allocation priorities.

ERP refresh is a multi-year project incorporating AI. Too early to quantify savings but expects both cost savings and new revenue opportunities. Comfortable with ERP implementation risk.

Cavanagh was positive on build yields without disclosing specifics. ~500 of 800 new builds are in Central America as part of Millicom. Tanzania is another active build market.

Cavanagh acknowledged services remain concentrated with one large customer, though all carriers are increasing. Diversification is an internal goal but hampered by turfing vendor agreements.

Said the products anticipate customer needs around agentic AI and draw on customer advisory board input.

Deferred any revenue impact until general availability next year, when pricing and packaging are defined.

CEO cited prior acceleration as evidence of flexibility and a proprietary demand model, but did not detail how spending would be scaled back if demand undershoots the forecast.

Olivier outlined debt-first capital allocation strategy leveraging the 3.8x position, with opportunistic equity use. He praised the team quality, culture, and operational rigor from his data center supplier perspective.

Adaire positioned cloud-to-cloud announcements as validation of connectivity importance while Equinix serves far more complex hybrid multi-cloud needs, with exciting MCP and AI agent support developments.

Adaire explained Neoclouds like Zetaris, Lyceum, Block, Groq, Nebius, and CoreWeave use Equinix for connectivity to 10,000+ enterprise customers, with dedicated Americas team managing these relationships.

Adaire attributed the 6,200 net adds to cloud and AI expansion, with strong Fabric Cloud Router adoption and diversifying use cases including data center interconnect.

Adaire acknowledged the fiber opportunity and Zayo partnership but gave a qualitative rather than quantitative answer on potential magnitude.

Adaire detailed Build Bolder strategy accelerating NY3, DC16, and LD4 by at least a year through streamlined phasing, with 62 major projects underway and more than 65% of retail expansion in major metros.

Power walked through new colo markets, $1.4 billion of hyperscale signings and the $3.25 billion hyperscale fund as the recycling vehicle for large-footprint capacity.

Wright noted valuation differences largely reflect asset mix (land vs cash-generating), with strong underlying dynamics supporting values; DLR leveraging private capital levers.

Power believes enterprise AI adoption is very early with most testing in public cloud, but expects hybrid pattern to emerge similar to cloud journey.

Power confirmed supporting neo cloud customers judiciously without overexposure, noting some are tremendously successful but traditional hyperscalers have been climbing ranks faster.

Americas yields are highest due to extreme supply-demand imbalance; AI globalization should drive EMEA/APAC yields up over time but similar power constraints apply.