CCI – Market expectations are for record-high Uniform ROA, but management may have concerns about small cell deployment, yields, and node density

• Crown Castle International Corp. (REIT) (CCI:USA) currently trades above recent averages relative to UAFRS-based (Uniform) earnings, with a 49.2x UAFRS-based P/E, implying bullish expectations for the firm. However, management may have concerns about small cell deployment delays, yields on invested capital, and node density.
• Specifically, management may have concerns about the impact of delays on small cell deployments and the sustainability of increasing node density. In addition, they may lack confidence in their ability to maintain tower business yields and activity and sustain elevated lease levels. Also, they may be exaggerating the industry leadership position of their small cell business and the sustainability of their yields on invested capital in Denver and Philadelphia.