Why SBAC Stock Could Be Worth Your Investment Attention: A Deep Dive Into Wireless Tower REITs

SBA Communications (SBAC) has been quietly building a strong case for investors despite recent headwinds. While shares dropped 4.3% over the past three months—outpacing the broader industry’s 0.7% decline—analysts aren’t panicking. In fact, the company just earned a Zacks Rank #2 (Buy) rating, and there’s solid reasoning behind the optimism.

The Market Tailwind Is Real

Here’s the thing: the world is drowning in data. Smartphone proliferation, 5G rollouts across continents, and bandwidth-hungry applications are forcing wireless carriers into a spending spree. They’re upgrading networks, expanding coverage, and leasing more tower space to handle the load. SBAC’s extensive infrastructure portfolio sits right in the middle of this secular growth trend. The company isn’t betting on a fad—it’s betting on fundamental increases in data consumption that show no signs of slowing.

A Business Model Built for Stability

What makes SBAC particularly interesting is the predictability of its revenue stream. The company generates most income from long-term tower leases (typically 5-15 years), creating a cushion of stable, recurring cash flows. With operating margins that remain attractive even during market uncertainty, this leasing model has proven resilient. Throughout 2025, wireless service providers continue adding antenna space on SBAC’s towers, and management expects core leasing revenues to grow compared to 2024 levels on a currency-neutral basis.

Aggressive Expansion Signals Confidence

SBAC isn’t sitting idle. In Q3 alone, the company acquired 447 communication sites (including Milicom’s 446 assets) for $142.8 million and built 151 towers. The company also spent $8.9 million on land, easements, and lease extensions. By November 3, 2025, SBAC had additional contracts to purchase 78 communication sites for $66.9 million, expected to close by Q1 2026. This expansion playbook—both domestic and international—positions the company to capitalize on continued wireless infrastructure demand globally.

Dividend Growth That Matters

For income-focused investors, SBAC delivers. The company has raised dividends five consecutive times over the past five years, with an annualized growth rate of 18.52%. Given the company’s solid operating platform, reasonable financial position, and below-industry dividend payout ratios, these payouts appear sustainable for the long haul.

The Numbers Support the Thesis

Analyst estimates tell part of the story. The Zacks Consensus Estimate for SBAC’s 2025 and 2026 FFO per share has moved upward—2.2% and 3.3% respectively over the past two months—landing at $12.89 and $12.86. These modest but meaningful revisions suggest confidence in the underlying fundamentals.

Looking at peers, companies like Cousins Properties (CUZ) and Digital Realty Trust (DLR) also carry Zacks Rank #2 ratings, with Cousins posting FFO growth expectations of 5.6% year-over-year. While these alternatives offer different exposure within the REIT space, SBAC’s unique positioning in wireless infrastructure provides distinct advantages.

The combination of tailwind market dynamics, predictable cash flows, active portfolio expansion, and committed dividend growth creates a compelling narrative. For investors seeking exposure to the wireless infrastructure buildout, SBAC represents a reasoned entry point despite recent volatility.