{ "docId": "019dd923-622c-750b-8b9c-80e6d77f0276", "docSlug": "14f44cdb0575", "documentTitle": "Crown Castle International Corp. (CCI)", "authorId": "02_Elliott_Management", "authorName": "Elliott", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2020-07-06 00:00:00", "orientation": "landscape", "aspectRatio": 1.4444444, "pageNumber": 36, "pageCount": 67, "prevPage": 35, "nextPage": 37, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 6, "notes": "Uses CEO quotes to frame the contradiction between stated strategy and actual underperformance.", "elementsJson": [ "headline_text", "subtitle_text", "bar_chart_vertical", "data_table", "quote_block", "callout_box" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9c-80e6d77f0276/36", "deckHref": "/decks/019dd923-622c-750b-8b9c-80e6d77f0276", "deckJsonHref": "/decks/019dd923-622c-750b-8b9c-80e6d77f0276.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9c-80e6d77f0276#slide-36", "components": [ { "bbox": { "h": 0.15, "w": 0.4, "x": 0.55, "y": 0.75 }, "kind": "callout", "text": "Not only has Crown Castle's AFFO per share grown more slowly than that of peers, but its AFFO also includes less of its total capex. In other words, Crown Castle is growing cash flow per share slower than its peers despite spending far more capital", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e321d768-d939-4c67-8e02-7b0e37af8384", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.6, "w": 0.45, "x": 0.05, "y": 0.25 }, "kind": "chart", "text": "AFFO per Share CAGR: Last Five Years", "attrs": null, "subkind": "bar-stacked", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "255d34f7-5b29-4cbd-a12c-349b06f40191", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "AFFO per share CAGR: 8%", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd952-ee36-760b-92a5-3705d149e4b0", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.9, "x": 0.05, "y": 0.12 }, "kind": "paragraph", "text": "Over the last five years, SBA and American Tower have grown AFFO per share 21% and 41% faster than Crown Castle, respectively. AFFO growth is a critical metric favored by REIT investors", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6d436f39-daed-42d6-afb7-002e480eda39", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.4, "x": 0.55, "y": 0.48 }, "kind": "quote", "text": "We will focus the majority of our value creation discussion on AFFO per share. Certainly, we will be making our capital allocation decisions based on our goal of maximizing long-term AFFO per share.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8cb061ac-2958-4913-988e-dd17b5e17a37", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.4, "x": 0.55, "y": 0.25 }, "kind": "quote", "text": "As you have heard us say for a long time, we evaluate the decisions that we make in the business based on the long-term impact to cash flow per share, and AFFO is the best proxy for this.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c7cdfa2c-6f3d-40e9-bd87-b54ba3c1a853", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"As you have heard us say for a long time, we evaluate the decisions that we make in the business based on the long-term impact to cash flow per share, and AFFO is the best proxy for this.\" — CEO Jay Brown, July 2017; \"We will focus the majority of our value creation discussion on AFFO per share. Certainly, we will be making our capital allocation decisions based on our goal of maximizing long-term AFFO per share.\" — CEO Jay Brown (CFO at the time), January 2012", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-ee36-760b-92a5-3198312f4f99", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.6, "x": 0.05, "y": 0.92 }, "kind": "source-note", "text": "Source: Company public filings. 1. Crown Castle 2019 AFFO per share shown on a pre-restatement basis for purposes of comparison to 2014.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "882b74eb-499a-4232-9236-9acaefbd3862", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.5, "x": 0.05, "y": 0.05 }, "kind": "title", "text": "Significant AFFO Growth Underperformance", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a2572478-ba4d-4350-9ab7-bc9a25b6fb95", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "13fbef6a-aa93-4b71-b9f4-003d7675489e", "evidence": "Uses CEO quotes to highlight a gap between stated strategy and actual performance.", "confidence": 0.95 } ], "arcBeats": [ { "to": 38, "from": 11, "beatId": "c051c5c5-ece4-46e8-bf57-9a7cbd17ebc3", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Agitate", "beatSlug": "problem-agitate-solution-agitate-make-it-worse", "evidence": "Slides 11-38 highlight the issues with Crown Castle's fiber business strategy", "position": 1, "confidence": 0.9, "parentBeatName": "Development", "parentBeatSlug": "development" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }