Richard Choe

Management deferred detail on the leasing trajectory to the third quarter but expressed comfort with the current guide, and said edge leasing would count as new leasing activity.

CEO said edge compute is in trial phase with initial partnerships signed. Most tower sites already have fiber backhaul, ample power, and space. Very little capital required as real estate model, renting horizontal space.

CEO listed growth pipeline: new colocations/amendments, turnkey services, new tower builds, Power as a Service, shared generators, and edge compute colocation using existing 40,000 tower sites. Growth is second-half weighted.

CEO said the industry as a whole, including carriers, prefers MLAs for cost certainty. No change in approach seen.

CFO outlined three CapEx buckets: ground lease buyouts (cash flow benefit), new tower builds (revenue), and systems/platform investments (efficiency).

CFO confirmed Q4 core leasing expected consistent with Q1/Q2 levels (ex-$5M Q3 uplift), with healthy application levels supporting the service business.

CEO declined to give 2026 guidance but noted core leasing activity expected to increase in H2 versus H1, and organic growth raised from 4.5% to 4.7% is meaningful.

CEO said back-billing improvements will be episodic as the team identifies equipment on towers that needs billing, part of broader operational improvement effort.

CEO confirmed leasing activity is broad-based across all carriers, with comfort in meeting guidance and expectations for continued 5G and densification demand.

Power cited record interconnection bookings up 17% year-over-year and north of $20 million; Sharp described the training-to-inference shift and the bidirectional needs agentic workloads create.

Mercier explained increase reflects carryover from 2025 plus continued buildout of enterprise portfolio, at approximately 7% of revenue in line with industry.

Power noted hundreds of megawatts available across major North American markets plus international capacity in Latin America and South Africa.

Mercier noted CapEx already increased 50% year-over-year and there is potential for gross CapEx to expand further given demand and available funding.

Power noted US-focused supply chains and USMCA carve-outs limit tariff impact to less than 5%, with proactive component ordering to derisk volatility.

Management explained 2024 outperformance was from packaged deal pull-forwards not assumed in 2025 guidance, with improving mark-to-market in outer years.

CEO said edge conversations are broadening across multiple parties and expects developments over the next 12 months.

Brazil growth mostly organic lease-up, not new builds. Drivers: upcoming 450 and 700 MHz spectrum auctions possibly in 2027, densification needs given 4x fewer sites per capita than US. Activity muted during Oi rationalization but expected to pick up.

Full year $35M incremental domestic revenue from new leases and amendments. Activity expected slightly heavier in beginning of year but steady throughout. Mix of densification and coverage expansion.

Colocation shift delays revenue recognition versus amendments. Second half must have greater contributions to meet full year outlook, confirming acceleration expected.

Services raise driven by both Q1 outperformance and increased backlogs. Company has capacity for much higher services revenue, having done almost $300 million in prior years.

Cavanagh confirmed US dollar contribution from colocations now exceeds amendments, a shift from historical patterns, though amendment count still higher due to smaller dollar amounts.

Steve said CoreSite pricing continues to rise from supply-demand imbalance. Mark-to-market above historical norms. Able to pass through inflation and tariff cost pressure while maintaining mid-teens stabilized yields. On towers: slightly fewer total applications expected in 2026 as carriers complete initial 5G overlays, but higher share of colocations which come at higher revenue per transaction.

Rod said $5M is minor non-run-rate activity. Sequential data center variation also just one-time items, nothing material. No abnormal churn in data center business.

Steve said focus is on supply chain, cross-border best practices, automation, and AI opportunities. Land buyout program could potentially expand to other geographies but not a near-term priority. No material capital shifts expected from the efficiency review.

Steve said Canada is small (~200+ towers) but growing well. Carriers building more differentiated networks with less sharing. Same M&A discipline applies, won't pay up for scale without right terms and price.

Steve said good services backlog entering 2025 with more construction services becoming a component. More visibility into first half; second half harder to predict. Activity expected up year-over-year overall.

Katrina attributed low churn to delayed timing of some churn including the metal business, plus continued focus on the renewal process. Maintained 2-2.5% full-year guidance range while noting early renewal engagement is having an impact.