BOCA RATON, Fla. - Vertical Bridge REIT, LLC, a prominent private owner and operator of communications infrastructure in the United States, has finalized a significant transaction with Verizon Communications Inc. (NYSE, NASDAQ: NYSE:VZ), a $167.88 billion market cap telecommunications giant. The deal grants Vertical Bridge exclusive rights to lease, operate, and manage over 6,300 wireless communication towers nationwide. The agreement, valued at approximately $3.3 billion, also includes certain commercial benefits for the company. According to InvestingPro, Verizon maintains a GOOD financial health score and has demonstrated consistent shareholder returns with a notable 6.79% dividend yield.
President and CEO of Vertical Bridge, Ron Bizick, stated that the completion of this deal is a pivotal moment for the firm, enhancing its status as a preferred partner in the U.S. communications infrastructure sector. The acquisition of these underutilized towers, many of which are in locations that are difficult to service, is expected to allow Vertical Bridge to offer expanded real estate solutions to its clients. For Verizon, which generated $134.24 billion in revenue over the last twelve months, this transaction aligns with its strategic asset optimization efforts.
The transaction's financial advisory role for Vertical Bridge was filled by Centerview Partners LLC, with Greenberg Traurig providing legal counsel. Verizon's financial advisor was J.P. Morgan, with legal advice from Jones Day.
Established in 2014 and headquartered in Boca Raton, Florida, Vertical Bridge boasts a portfolio exceeding 500,000 sites, which includes more than 17,000 owned and master-leased towers. The company's reach extends across all 50 states and Puerto Rico, offering build-to-suit and colocation solutions to the wireless industry.
Notably, Vertical Bridge has distinguished itself in the environmental sphere by becoming the first tower company globally to achieve CarbonNeutral® company certification in 2020, a status it has maintained annually. For detailed analysis of Verizon's financial metrics, growth potential, and more insights, investors can access comprehensive research through InvestingPro, which offers exclusive ProTips and in-depth analysis of over 1,400 US stocks.
The information in this article is based on a press release statement. Readers should note that forward-looking statements contained within the press release are subject to various risks and uncertainties and may differ from actual future results. Vertical Bridge and Verizon have claimed the protection of the safe harbor for forward-looking statements under the Private Securities Litigation Reform Act of 1995 and do not commit to publicly updating any revisions to these statements as required by law.
In other recent news, a Supreme Court decision has impacted telecom giants including AT&T, Verizon, and Comcast (NASDAQ:CMCSA). The court declined to hear an appeal contesting a New York law requiring internet service providers to offer discounted service rates to low-income households, causing shares in these companies to fall. Analysts from TD Cowen suggest that the court may review this power to regulate broadband pricing in its 2025-26 term.
Verizon Communications has seen a range of analyst activity recently. Raymond (NS:RYMD) James maintained an Outperform rating on the company, highlighting its defensive nature and potential for a compelling total return. However, Bernstein SocGen Group initiated coverage with a Market Perform rating, noting competitive pressures and strategic initiatives. KeyBanc Capital Markets and Scotiabank (TSX:BNS) expressed concerns about Verizon's future financial performance, with KeyBanc downgrading the stock due to predicted slowdowns in EBITDA growth and free cash flow.
Verizon has also seen changes in its leadership, appointing Daniel H. Schulman as the new lead director of its Board of Directors. Schulman's experience in the technology, telecommunications, and finance sectors is expected to be an asset in extending Verizon's industry leadership.
The company maintained its quarterly dividend at 67.75 cents per outstanding share, demonstrating its commitment to shareholder returns. Additionally, Verizon has a strategic focus on expanding its broadband reach, targeting over 100 million households with a mix of fixed wireless access and fiber solutions. The company also plans to double its fixed wireless access subscribers by 2028. These are the recent developments from Verizon Communications.
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