CMCSA - Cell Tower REITs: 5G Dominance

• From David to Goliath. Emerging from relative obscurity early last decade, Cell Tower REITs have developed into dominant players of both the telecommunications and real estate sectors through relentless growth.
• The single largest property sector, three Cell Tower REITs now account for almost a fifth of the total REIT market value and control nearly 75% of wireless communication infrastructure in the U.S.
• After uncharacteristically lagging early this year, Cell Tower REITs - along with other "essential" property sectors across the technology and housing sectors - have surged over the past three weeks.
• Cell Tower REITs delivered another stellar year in 2020 with FFO growth of nearly 9% with no signs of slowing. American Tower outlined an "aspirational" guidance target of double-digit annual FFO growth through 2027.
• Last quarter, we discussed how the recent pull-back appeared to be a long-awaited buying opportunity. While the "flash sale" may be over, Cell Tower REITs have continually provided support to our theory that growth-oriented REITs are persistently undervalued.

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