Cell Tower REITs: The Basics
Cell tower REITs offer investors a unique opportunity to diversify their portfolio with potential for steady income and growth.
Cell tower REITs serve a crucial role as landlords for antennas, leasing space on numerous communication towers to wireless companies such as Verizon Communications (VZ), T-Mobile US (TMUS), and AT&T (T), as well as their counterparts abroad.
These REITs thrive independently of any single wireless company, often renting out space on the same tower to multiple carriers. Their success is driven by the insatiable demand for more and faster data from mobile phone users, necessitating additional antennas in various locations and periodic network technology upgrades. Contracts with carriers typically span several years, ensuring a clear revenue outlook, and include annual rent escalations to safeguard against inflation.
Understanding Cell Tower REITs
Unlike many other REITs primarily sought for their dividend income, cell tower REITs also offer significant growth potential. With the proliferation of wireless devices and…
