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  "documentTitle": "Crown Castle International Corp. (CCI)",
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  "authorName": "Elliott",
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  "presentationDate": "2020-07-06 00:00:00",
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  "notes": "Uses quotes from management to highlight the contradiction in their investment logic.",
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      "kind": "callout",
      "text": "ROI on fiber must be measured exclusively against the cost of capital of fiber",
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      "text": "Fiber Capex Yield vs. Implied Fiber Cost of Capital",
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      "text": "Fiber Capex Yield: 3%",
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      "text": "Over the last 5+ years, Crown Castle has compared its low-return fiber yield to its “cost of capital.” This comparison is entirely wrong because the Company’s overall cost of capital is driven primarily by higher quality towers than by lower quality fiber. Instead, we must compare fiber yields to fiber cost of capital",
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      "kind": "quote",
      "text": "“Those [fiber & small cell] returns are very attractive, meaningfully exceeding our cost of capital.” CEO Jay Brown, April 2018",
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      "text": "“The [discretionary capex] returns we see on those investments so far exceed our cost of capital… Those investments continue to look really good even in this rate environment.” CFO Dan Schlanger, October 2018",
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      "kind": "quote",
      "text": "“[W]e make investment decisions based on what we think the recurring yield on those assets is going to be and, ultimately, whether or not it is enhancing to our long-term dividend per share growth rate…[W]e have to consider all of the cost of capital associated with the assets that we're looking at.” CEO Jay Brown, April 2020",
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      "text": "\"Those [fiber & small cell] returns are very attractive, meaningfully exceeding our cost of capital.\" — CEO Jay Brown, April 2018; \"The [discretionary capex] returns we see on those investments so far exceed our cost of capital... Those investments continue to look really good even in this rate environment.\" — CFO Dan Schlanger, October 2018; \"[W]e make investment decisions based on what we think the recurring yield on those assets is going to be and, ultimately, whether or not it is enhancing our long-term dividend per share growth rate...[W]e have to consider all of the cost of capital associated with the assets that we're looking at.\" — CEO Jay Brown, April 2020",
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      "text": "Source: Company financials. 1. Reflects organic EBITDA growth divided by invested capital. 2. Uses inverse of market multiple (12x) as a proxy for cost of capital.",
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      "text": "Fiber Capex Yield Well Below Fiber Cost of Capital",
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      "text": "Crown Castle Explanation",
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