UNIT - Cell Tower REITs: All-In On 5G

• Cell Tower REITs - the single-largest REIT sector - are again pulling their weight after uncharacteristically lagging earlier this year, catalyzed by strong first quarter earnings and major M&A developments.
• Time To Focus: AT&T and Verizon ended their tumultuous foray into the media business this year, divesting their capital-draining ancillary businesses as competition has heated-up with T-Mobile and Dish Network.
• Wireless network spending is poised to accelerate as the 5G rollout advances. All three Cell Tower REITs boosted their full-year guidance during earnings season and now expect double-digit FFO growth.
• Cell Tower REITs remain in growth-mode, utilizing a sector-leading cost of capital and favorable competitive positioning. American Tower acquired $15B in additional assets in early 2021 through two major deals.
• While no longer cheap, Cell Tower REITs should remain a growth engine of the real estate sector and risks to technological disruption remain distant, particularly as carriers go "all-in" on 5G network build-outs.

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