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Tower Sales Might Change The Case For Investing In SBA Communications Stock (SBAC)

Simply Wall St · 1d ago
  • SBA Communications reported third quarter 2026 results with solid demand for its tower portfolio, completed sales of sites in Chile and Ecuador, advanced a sale agreement for Peruvian towers, and declared a quarterly cash dividend paid in December 2026.
  • The exit from Chile and Ecuador, along with the planned sale of Peru, point to SBA Communications tightening its footprint around markets where tower returns and capital allocation priorities appear more attractive.
  • We will now look at how SBA Communications’ investment narrative could be influenced by these tower divestments and the dividend declaration.

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SBA Communications Investment Narrative Recap

SBA Communications remains an investment on the idea that carriers keep leasing more space as networks get denser, while the tower portfolio is trimmed to where returns justify the capital and higher interest expense. In the near term, an important swing factor is whether new U.S. and international lease up fills gaps from churn and refinancing costs. The latest quarter suggests this is at least being supported by solid demand.

The tower sales in Chile and Ecuador, plus the pending Peru deal, do not fundamentally change that core belief. They mainly sharpen it. The biggest near-term risk remains customer churn and pricing power, especially in markets such as Brazil, together with the impact of refinancing low coupon debt into higher rate bonds through 2027.

The most relevant recent development is the agreement to sell all Peruvian towers, alongside the completed exits from Chile and Ecuador. For investors, this crystallises one of the existing catalysts in the SBA Communications story: recycling capital from subscale or lower priority portfolios into a cleaner balance sheet and higher return markets, rather than just adding more sites everywhere.

This matters because rising interest costs and negative shareholders’ equity keep balance sheet quality firmly on the risk list. If SBA Communications continues to prune its portfolio and reinvest into areas such as U.S. densification or CPI-linked Latin American contracts, then the key factors around lease up, AFFO resilience and use of the US$2.5 billion revolver remain central to the thesis, while the dividend and elevated debt load remain important pressure points to watch.

What SBA Communications’ Forecasts Say About Growth And Risk

SBA Communications' current analyst narrative points to forecast revenue of US$3.1b and expected earnings of US$952.1m by 2029, anchored on projected revenue growth of about 3.0% a year and a move from earnings today of US$990.7m to that lower consensus figure, which implies an earnings decrease of roughly US$38.6m by the 2029 estimate year.

Uncover why SBA Communications' fair value indicates a 21% potential upside to its current price, which could narrow quickly.

NasdaqGS:SBAC 1-Year Stock Price Chart
NasdaqGS:SBAC 1-Year Stock Price Chart

Exploring Other Perspectives

Two fair value estimates from the Simply Wall St Community cluster between about US$226 and US$272 per share, well above recent prices. This signals that some retail investors see SBA Communications as heavily undervalued. Set those views against risks like higher refinancing costs or competition from low Earth orbit satellites, and you get a wide spread of opinion. You should expect that range of views and explore more Community perspectives before leaning on any single narrative.

Explore another SBA Communications fair value estimate, including one that suggests it could be worth just $226.40!

Form Your Own Verdict

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

Looking For More Investment Ideas Beyond SBA Communications?

Once you have a view on SBA Communications, it can help to compare that thesis with a wider watchlist of businesses that fit different return and risk profiles.