Cell Tower REITs: Stay-At-Home Winners
Updated: Sep 19, 2020
As fears over missed rent payments rattle the real estate sector, Cell Tower REITs are not just surviving, they're thriving. These REITs are one of the few in positive territory.
Cellular network usage has surged amid the stay-at-home orders as businesses and individuals stay connected via virtual interaction. Signs of stress in capacity enforce the need for additional network investments.
The long-awaited marriage between T-Mobile and Sprint has finally come to fruition. The emergence of a fourth competitor - Dish Network - was an unexpected coup for cell tower REITs.
The market is understanding what we've said for years: low-band, wide-coverage macro tower networks will be the "hub" of 5G service due to the logistical challenges of dense small-cell networks.
Fundamentals remain stellar, which are reflected in the sector’s premium valuations. Low-orbit satellite technology - backed by SpaceX and others - is a competitive threat to keep an eye on.