By Josh Beckerman
Crown Castle International Corp. (CCI) said Thursday it has
sharply increased its dividend in a move that was sought by
activist shareholder Corvex Management LP.
The provider of shared wireless infrastructure is boosting its
annual payout to $3.28 a share from $1.40, effective with its
December dividend.
The company, which operates as a real estate investment trust,
also posted big increases in third-quarter revenue, net income and
funds from operations.
Crown Castle increased its 2014 outlook for adjusted funds from
operations to $4.19 to $4.20 a share. In July, it raised its view
to $4.13 to $4.18 a share. Its 2015 estimate for that metric is
$4.31 to $4.37 a share.
The company predicts higher leasing activity will continue
during 2015, but also expects "a significant amount of tenant
nonrenewals" amid industry consolidation, a trend that's likely to
affect its growth over the next three to four years.
In late trading, Crown Castle shares were recently down 2% to
$81.50.
In the third quarter, adjusted funds from operations were $1.05
a share, above the company's projection of $1 to $1.01 and the
year-earlier figure of 83 cents.
Crown Castle reported net income of $108 million, or 29 cents a
share, up from $46.5 million, or 16 cents a share, a year earlier.
Revenue rose 24% to $930 million.
Although the company anticipates "headwinds" from nonrenewals,
it expects to benefit as wireless companies upgrade their networks
and said it anticipates small cell networks to contribute more to
margin growth in the future.
Crown Castle said factors it considered in raising its dividend
include "aligning of shareholder returns to the core business
model" and "reinforcing confidence in the long-term, recurring
nature of Crown Castle's cash flows."
Write to Josh Beckerman at josh.beckerman@wsj.com
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