The company's primary strategy is to continue focusing on expanding its site leasing business through organic growth and expansion of its tower portfolio to create shareholder value. They believe that the long-term and repetitive nature of their site leasing business will permit them to maintain a stable, recurring cash flow stream.

The company's tower growth in international markets is primarily driven by wireless service providers seeking to increase the quality and coverage of their networks, increased consumer mobile data traffic, and incremental spectrum auctions as well as incremental voice and data network deployments.

The company expects organic site leasing revenue in both its domestic and international segments to increase over 2023 levels due in part to wireless carriers deploying unused spectrum. They believe their site leasing business is characterized by stable and long-term recurring revenues, predictable operating costs, and minimal non-discretionary capital expenditures.

The company has a comprehensive, cross-functional approach to cybersecurity risk management, driven by its information security management systems and propelled by industry-leading expertise from both its internal information technology security team and top-tier third-party consultants and firms that they engage.

Effective December 31, 2023, Jeffrey A. Stoops retired from his position as President and Chief Executive Officer, and Brendan T. Cavanagh assumed the position of Chief Executive Officer. Marc Montagner assumed the position of Executive Vice President and Chief Financial Officer, which was previously held by Mr. Cavanagh. Additionally, Jason Silberstein, our Executive Vice President, Site Leasing, will retire effective August 1, 2024.

The company approaches sales on a company-wide basis, involving many of its employees. They have a dedicated sales force that is supplemented by members of their executive management team. Their dedicated salespeople are based regionally as well as in their corporate office.

Significant consolidation among the company's wireless service provider customers has resulted, and is expected to continue to result, in their customers failing to renew existing leases for tower space as a result of overlapping coverage, nearby locations, or reducing future capital expenditures in the aggregate because their existing networks and expansion plans may overlap or be very similar.

The company derives a significant portion of its revenue from a small number of customers. Consequently, a reduction in demand for site leasing, reduced future capital expenditures or operating expenses on the networks, or the loss, as a result of bankruptcy, merger with other customers of ours or otherwise, of any of our largest customers could materially decrease our revenue and have an adverse effect on our growth.

The interest rate that the company pays on indebtedness incurred under the Revolving Credit Facility and the Term Loans varies based on a fixed margin over either a base rate or a Eurodollar rate which references the SOFR rate. As of December 31, 2023, this indebtedness represented approximately $2.4 billion, or 19.8% of their total indebtedness.

The company believes that tower location and capacity, quality of service, density within a geographic market, and price historically have been and will continue to be the most significant competitive factors affecting the site leasing business.

Competition for tenants, whether or not resulting in master lease agreements, may materially and adversely affect the company's lease rates or lead to non-renewal of existing leases. Furthermore, pricing pressures could lead to more prevalent network sharing, both domestically and internationally, which could reduce the demand for their tower space or lead to non-renewals of existing leases.

Increased competition for acquisitions may result in fewer acquisition opportunities for the company, higher acquisition prices, and increased difficulty in negotiating and acquiring such towers. As a result of these risks, the cost of acquiring these towers may be higher than they expect, or they may not be able to meet their annual and long-term tower portfolio growth targets.

The company's capital allocation strategy is aimed at increasing shareholder value through investment in quality assets that meet their return criteria, stock repurchases when they believe their stock price is below its intrinsic value, and by returning cash generated by their operations in the form of cash dividends.

The company expects to grow its cash flows by adding tenants to its towers at minimal incremental costs by using existing tower capacity or requiring wireless service providers to bear all or a portion of the cost of tower modifications and (2) executing monetary amendments as wireless service providers add or upgrade their equipment.

As an owner and operator of towers, the company may be liable for substantial costs of remediating soil and groundwater contaminated by hazardous materials without regard to whether they, as the owner, lessee, or operator, knew of or were responsible for the contamination. They may be subject to potentially significant fines, penalties, or taxes if they fail to comply with any of these requirements.

In addition to their traditional tower-related services, the company continues to explore ancillary services and evolving technologies that they believe will allow them to create additional value by leveraging their current assets, capabilities, and relationships with wireless service providers and others by expanding SBA's business within the growing communications ecosystem.

For example, the company is exploring ways to participate in edge computing infrastructure to support existing and future customers' increasing need to deploy computing capabilities to locations closer to their end users, such as regional data centers and smaller local data centers located at the base of their towers.

Improvements or changes in the efficiency, architecture, and design of wireless networks or changes in a wireless service provider customer's business model may reduce the demand for their wireless infrastructure. Also, as customers deploy increased capital to develop and implement new technologies, they may allocate less of their budgets to lease space on their towers.

The company currently utilizes stock repurchases as part of its capital allocation policy when they believe their share price is below its intrinsic value. They believe that share repurchases, when purchased at the right price, will facilitate their goal of increasing their Adjusted Funds From Operations per share.

Cash dividends are an additional component of the company's strategy of returning value to shareholders. They do not expect their dividend to require any changes in their leverage and believe that, due to their low dividend payout ratio, they can continue to focus on building and buying quality assets and opportunistically buying back their stock.

The mortgage loan agreement related to their securitization transactions, the Senior Credit Agreement, and the indentures governing their 2020 Senior Notes and 2021 Senior Notes contain certain covenants that could limit their ability to make distributions to their shareholders.

The Revolving Credit Facility incorporates sustainability-linked targets which will adjust the Revolving Credit Facility's applicable interest and commitment fee rates upward or downward based on how the Company performs against those targets.

The company is committed to building a pipeline of future business leaders by strategically recruiting and retaining talent reflective of the communities and markets they serve.

The company's safety of their tower climbers has been a key focus of the company since its founding. In 2013, they opened their internal training facility "Tower U" which provides a rigorous multi-day safety certification program that is required for their employed tower climbers.

Increasing interest rates have impacted, and are expected to continue to impact, the ability and willingness of wireless service providers to incur capital expenditures at historic levels to expand their networks, which would adversely affect the company's future revenue growth rates.

The company is also exposed to risks operating in countries with high levels of inflation, including the risk that inflation rates exceed their fixed escalator percentages in markets where their leases include fixed escalators and the risk that adverse economic conditions may discourage growth in consumer demand and consequently reduce their customers' demand for their site leasing services.

The exchange rates between the company's foreign currencies and the U.S. Dollar have fluctuated significantly in recent years and may continue to do so in the future. For example, the Brazilian Real has historically been subject to substantial volatility and strengthened 3.2% when comparing the average rate for the years ended December 31, 2023 and 2022.