Erosion risks

• Carrier consolidation and bargaining power
• Contractual cancellations / non-renewals (e.g., integration-driven churn)
• Regulatory or legislative changes affecting tower leasing economics

Leading indicators

• Tenant billings growth (U.S. & Canada)
• Churn rate and renewal outcomes
• Carrier radio access network capex trends

Counterarguments

• Large tenants can renegotiate pricing at renewal or exercise termination rights where available
• Alternative architectures (small cells, network sharing) can reduce incremental macro-tower demand

Erosion risks

• Policy changes that streamline tower approvals
• Greater use of collocation on competitor sites
• Shift of spending from macro towers to small cells in dense urban areas

Leading indicators

• Average time-to-permit for new builds
• Percentage of growth from amendments vs new sites
• Local regulation changes affecting tower siting

Counterarguments

• Incumbents and new entrants alike can navigate permitting with experienced contractors
• In many cases, carriers can add capacity via amendments rather than new tower construction

Erosion risks

• Technology shifts reducing reliance on macro towers (e.g., satellite-to-device, small cells)
• Natural disasters or localized site decommissions
• Competitive overbuild in select markets

Leading indicators

• Tenants per tower / colocations per site
• Amendment activity and new tenant additions
• Macro tower utilization vs small cell deployments

Counterarguments

• Portfolio scale is shared with other large U.S. tower REITs; differentiation can be market-by-market
• If carriers shift spend to alternative infrastructure, location density becomes less valuable

Erosion risks

• Carrier network consolidation (e.g., decommissioning duplicate sites)
• Increased use of network sharing and carrier-neutral host models
• Aggressive pricing competition leading to targeted relocations

Leading indicators

• U.S. & Canada churn trend
• Non-renewal / cancellation notices from top tenants
• Carrier spectrum and network rationalization activity

Counterarguments

• Major integrations (like Sprint/T-Mobile) can drive elevated churn for years
• Some sites are substitutable if multiple towers cover the same area

Erosion risks

• Regulatory intervention in telecom or tower pricing
• Mobile operator consolidation and tenant renegotiations
• Currency volatility reducing USD-reported growth

Leading indicators

• International organic tenant billings growth
• FX movements vs major operating currencies
• Regulatory actions affecting tower companies

Counterarguments

• Tenants can push for pricing resets during renewals or through disputes/arbitration
• Some countries can shift to sharing agreements that reduce incremental site leasing

Erosion risks

• Government policy speeding approvals or promoting municipal networks
• Overbuild by competing towercos in select markets
• Landlord cost inflation and ground lease pressure

Leading indicators

• Time-to-build and approval cycle times by country
• Competitive tender activity for new build-to-suit programs
• Ground lease / land cost inflation

Counterarguments

• In some markets, new build programs can still proceed quickly with the right relationships
• Carriers may prefer shared/neutral-host models that reduce dependence on any single towerco

Erosion risks

• Political instability or expropriation risk in select markets
• Power reliability issues increasing operating costs
• Technology shifts reducing need for macro sites

Leading indicators

• International tenancy ratio / colocation rate
• Power/fuel cost trends in off-grid markets
• Tenant investment cycles (spectrum auctions, 4G/5G rollouts)

Counterarguments

• Scale does not always translate to pricing power if tenant concentration is high
• Local competitors can have stronger relationships and faster build execution

Erosion risks

• Scale/network effects at larger peers (EQIX/DLR) attract more ecosystems
• Customers multi-home across data centers, reducing lock-in
• Pricing pressure as colocation supply expands

Leading indicators

• Interconnection revenue growth vs space/power leasing growth
• Leasing velocity in key metros
• New capacity additions and power availability constraints

Counterarguments

• Interconnection offerings are typically month-to-month and cancellable, limiting durability of the advantage
• Larger colocation platforms may offer denser network ecosystems and broader global reach

Erosion risks

• Power constraints delay expansions and raise costs
• Hyperscalers self-build, reducing third-party demand
• Rapid new supply from competitors in core metros

Leading indicators

• Net rentable square feet leased/sold and backlog
• Power capacity contracted vs available
• Capex spend on data center expansion

Counterarguments

• Portfolio scale is materially smaller than the largest peers, limiting bargaining power and ecosystem density
• Customer requirements may favor hyperscale or specialized operators rather than mid-sized platforms