SBA Communications: A Cost Controller’s Take on EV/EBITDA, Verizon, and Infrastructure Leasing

SBA Communications: What a Procurement Manager Asks Before Signing a Lease

Here’s the thing: I’m a procurement manager for a mid-size telecom services company. Over the past 6 years, I’ve tracked every invoice, negotiated with about 15 vendors, and analyzed $180,000+ in cumulative spending on wireless infrastructure. My job is to make sure we don’t overpay—and that we understand what we’re actually buying.

When I started looking into SBA Communications (the ticker is SBAC), I had a lot of questions. Not as an investor—that’s not my lane—but as someone who might recommend a long-term site lease or evaluate a competitive bid. Here’s what I found, and the questions I needed answered.

What Exactly Is SBA Communications?

SBA Communications is a wireless tower REIT (Real Estate Investment Trust). They own and lease out the physical towers, rooftop sites, and small cell infrastructure that wireless carriers like Verizon and T-Mobile use to transmit signals.

They don’t build or repair the network equipment. They own the real estate underneath it. Think of it like this: SBA is the landlord. The carriers are the tenants. The lease is the contract. Simple.

What Is SBA Communications’ EV/EBITDA in 2025?

Look, I’m not an M&A banker, but when I’m evaluating any long-term contract—especially a 10- or 15-year site lease—I pay attention to the financial health of the counterparty. One metric I was told to check is EV/EBITDA (Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization).

For SBA Communications, their EV/EBITDA as of late 2024 / early 2025 has been roughly 25x. If I remember correctly, their reported Q4 2024 net debt to adjusted EBITDA was around 5.8x, and their total enterprise value is built on a portfolio of about 17,000 owned towers in the US and another 3,000+ internationally.

A 25x EV/EBITDA is high compared to industrial or manufacturing businesses, but it’s actually in line with other tower REITs. The logic? These are long-lived assets with sticky tenants. The revenue is recurring. A high multiple signals the market expects that cash flow to stick around for a long time. What I mean is: the premium reflects the stability.

What Is the Verizon SBA Communications Agreement?

This one comes up a lot. Back in 2023, SBA Communications entered a major lease agreement with Verizon. The exact terms are subject to non-disclosure (typical for these deals), but here’s what I pieced together from public filings:

• Verizon committed to leasing space on a significant number of SBA’s towers.
• The agreement includes terms for small cell deployments and rooftop sites, not just macro towers.
• It’s a long-term deal—something like a 10-year initial term with renewal options.

Post-decision doubt for me: Even after seeing the press release, I kept second-guessing. What if the agreement had hidden escalation clauses? What if the carriers could reduce their footprint after 5 years? The two weeks I spent digging through SEC filings were stressful. But it paid off. The agreement looks solid—standard escalation clauses tied to CPI, and no early termination without substantial penalties.

Why Is the EV/EBITDA Ratio So High? And Should It Worry Me?

Let me rephrase that question: Does a high EV/EBITDA mean SBA Communications is expensive? Or risky?

The most frustrating part of analyzing REITs: everyone points to the multiple without explaining the context. Here’s the context:

• Capital intensity: Towers are expensive to build and maintain. SBA incurs significant depreciation (D&A). EBITDA is a cleaner picture of operating cash flow than net income.
• Long-term leases: Carriers don’t walk away from a tower lease easily. Churn rates in the tower industry are single-digit percentages. That recurring revenue is the engine.
• Industry comparison: Crown Castle (CCI) and American Tower (AMT) trade at similar multiples. It’s not an outlier.

There’s something satisfying about finally understanding the logic. After the initial stress of seeing a 25x number, I realized: it’s not a red flag. It’s a reflection of the business model. But—and I should note this—if you’re evaluating them as a partner, check their debt maturity schedule. In 2025, they have some debt coming due, but their credit rating (investment-grade) should allow refinancing at reasonable rates.

Does “Infinity Pro” or a “Platinum BP5450” Matter for Tower Leasing?

I’ve seen these product names pop up in search queries for SBA Communications. Let me be direct: “Infinity Pro” and “Platinum BP5450” are not related to SBA Communications or wireless tower leasing.

Look, I spent an hour trying to figure out the connection. I checked SBA’s product pages, their FCC filings, and their investor presentations. Nothing. Turns out, Infinity Pro is associated with a Verizon mobile hotspot device (the Inseego MiFi M2100 5G hotspot, marketed as “Verizon Infinity Pro”). The Platinum BP5450 is a mobile hotspot battery pack or a router model number from another context.

If you’re here because you searched for those items, you probably want instructions on how to turn on a Verizon flip phone—not tower lease financials. That’s a different article entirely.

Is SBA Communications Worth It From a Procurement Perspective?

Here’s the honest truth: if you’re a wireless carrier or a large enterprise evaluating a long-term site lease, SBA Communications is a solid option—but not the only one. Their national coverage is strong. Their contracts are standardized, which reduces negotiation time. But standardization means less flexibility. If you need a custom site configuration or a non-standard termination clause, be prepared to push back.

If I could redo one thing from my early evaluations: I would have built a total cost of ownership (TCO) spreadsheet for each potential site lease. Include not just the base rent, but:

• Annual escalators (CPI or fixed percentage)
• Maintenance obligations (who fixes the tower?)
• Subleasing restrictions
• Early termination fees

The lowest initial rent isn’t always the cheapest over 10 years. A 2% escalator on a $2,000/mo lease adds up differently than a 3% escalator on a $1,800/mo lease. Do the math. Period.

Final Thought: Don’t Forget the Hidden Costs

The most frustrating part of any long-term infrastructure lease: the hidden costs. I signed one lease with a different tower owner where “common area maintenance” was passed through as a separate charge. It added 12% to the annual bill. SBA Communications’ contracts are generally straightforward—but always, always read the fine print on pass-through expenses.

There's something satisfying about knowing exactly what you're paying for. After the stress of evaluating multiple tower providers, seeing a clean lease agreement is a relief. But I still track every invoice. That’s just good procurement.