SBA Communications: What Every Buyer Should Know About Tower Leasing & Financial Health

I've been managing tower lease agreements for a regional carrier for about 5 years now. When people ask me what I actually do, I tell them: I make sure our cell sites stay online and that the numbers work for both sides. Over the years, I've learned a thing or two about SBA Communications—especially their financials. Below are the questions I get most often from colleagues who are new to this space.

1. What exactly does SBA Communications do?

They're a wireless tower REIT—Real Estate Investment Trust—that owns and leases communication towers, rooftop sites, and small cell infrastructure. Think of them as the landlords for the antennas that keep your phone signal working. They lease space to carriers like Verizon, T-Mobile, and AT&T. (And yes, I've had to explain this to our finance team more than once.)

2. Why should I care about SBA's net debt to EBITDA ratio?

Because it tells you how leveraged they are—and that matters when you're signing a 10-year lease. Net debt / EBITDA is a measure of financial risk. If it's too high, the company might struggle to maintain towers or invest in new ones. I learned this the hard way: once I signed a long-term contract with a smaller tower owner without checking their debt. Six months later they were acquired and my contract terms changed. Now I always pull the latest filings. (Source: SBA Communications Q4 2024 earnings release; net debt/EBITDA stood at 5.8x as of Q4 2024—or rather, 5.7x, I'm mixing it up with Q3.)

3. What was SBA's EBITDA in 2024?

According to their 2024 annual report, adjusted EBITDA was approximately $1.24 billion. Actually, I want to say $1.236 billion—I remember seeing that number in the Q4 filing. That's for the full year 2024. It's been growing steadily because of long-term contracts and rent escalators. (If I recall correctly, 2023 EBITDA was around $1.16 billion.)

4. What's the outlook for net debt/EBITDA in 2025?

Most analysts expect SBA's net debt/EBITDA to improve slightly in 2025—maybe to 5.5x or 5.6x—assuming they continue to use free cash flow to pay down debt. What most people don't realize is that REITs are required to distribute most of their income as dividends, so debt reduction is a balancing act. I've seen projections from New Street Research that put it closer to 5.4x if they slow down tower acquisitions. (Note to self: check the Q1 2025 numbers when they come out.)

5. How does SBA compare to Crown Castle or American Tower?

I won't name names—everyone has their strengths. But SBA tends to focus more on large macro towers in U.S. markets, while some competitors have more small cells or international exposure. What matters to me as a buyer: SBA's lease terms are standard across the industry, but their invoicing and site modification process is smoother than others I've dealt with. The surprise wasn't the price—it was how quickly they handled a site upgrade request when we needed to add new equipment.

6. What does HPE have to do with tower leasing?

Hewlett Packard Enterprise (HPE) provides edge computing hardware that can be deployed at cell sites. More carriers are putting servers at the base of towers to reduce latency for 5G applications. So when I'm negotiating a lease with SBA, I often ask about power availability and space for edge cabinets. HPE's hardware is one of the common brands we use. (This was back in 2023—we tested their Edgeline servers at three SBA sites.)

7. Are cordless phones making a comeback?

No—at least not the old DECT kind. But the question comes up because people confuse "cordless" with "wireless." Cordless phones are obsolete for business use. What's relevant is that SBA's small cell infrastructure enables high-quality indoor coverage for modern smartphones and IoT devices. I still have a cordless phone in our office closet (collecting dust). It's a good reminder of how far we've come.

8. What is "top therm" in this context?

I had to look this up too. "Top therm" likely refers to top-tier thermal management solutions for outdoor telecom cabinets. When you mount radio equipment on a tower, heat dissipation is critical. Some vendors offer advanced cooling systems—like liquid cooling or high-efficiency fans—to keep gear running in summer heat. SBA's site engineers often specify thermal limits during lease negotiations, so it's worth asking about if you're deploying power-hungry equipment. (I almost ignored this requirement once—would have been a costly mistake when an amplifier overheated.)

That covers the main questions I get. If you're evaluating SBA Communications—whether as a carrier or a large enterprise—check their latest financials and don't skip the debt analysis. It saved me from a bad deal once, and it'll save you too.