SBA Communications (SBAC) 10-K risk factor changes: FY2018 vs FY2017

The following table sets forth our total principal amount of debt and shareholders’ deficit as of December 31, [removed: 2017] [added: 2018] and [removed: 2016.][added: 2017.]

| Total principal amount of indebtedness | | | | | $ | [removed: 9,405,000] [added: 10,028,000] | | $ | [removed: 8,875,000] [added: 9,405,000] |

| Shareholders' deficit | | | | | $ | [removed: (2,599,114)] [added: (3,376,823)] | | $ | [removed: (1,995,921)] [added: (2,599,114)] |

[removed: In addition, fluctuations] [added: Fluctuations] in market interest rates or changes in central bank monetary policy may increase interest expense relating to our floating rate indebtedness, which we expect to incur pursuant to our Revolving Credit Facility and Term [removed: Loans,] [added: Loan,] and may make it difficult to refinance our existing indebtedness at a commercially reasonable rate or at all.

[removed: There is no guarantee that the future] refinancing of our indebtedness will have fixed interest rates or that interest rates on such indebtedness will be equal to or lower than the rates on our current indebtedness.

Interest rates, including LIBOR, have recently increased and [removed: are expected to continue to] [added: may] increase in future periods.

[removed: In the future, we] [added: We have and] may [added: continue to] enter into interest rate swaps that involve the exchange of floating for fixed rate interest payments in order to reduce interest rate volatility.

However, if Oi is unable to successfully fulfill its reorganization obligations or cannot operate its business on a go-forward basis, it could adversely affect our future results of [removed: operation.][added: operations.]

| Percentage of Total Revenues | | | | [removed: 2017] [added: 2018] | | [removed: 2016] [added: 2017] | | [removed: 2015] [added: 2016] |

| AT&T Wireless | | | | [removed: 25.0%] [added: 24.0%] | | [removed: 25.7%] [added: 25.0%] | | [removed: 24.2%] [added: 25.7%] |

| T-Mobile | | | | [removed: 16.5%] [added: 16.4%] | | [removed: 17.0%] [added: 16.5%] | | [removed: 16.0%] [added: 17.0%] |

| Verizon Wireless | | | | [removed: 15.2%] [added: 14.7%] | | 15.2% | | [removed: 13.8%] [added: 15.2%] |

| Sprint | | | | [removed: 15.1%] [added: 17.9%] | | [removed: 16.1%] [added: 15.1%] | | [removed: 19.6%] [added: 16.1%] |

| Percentage of Domestic Site Leasing Revenue | | | | [removed: 2017] [added: 2018] | | [removed: 2016] [added: 2017] | | [removed: 2015] [added: 2016] |

| AT&T Wireless | | | | [removed: 32.7%] [added: 31.9%] | | 32.7% | | [removed: 31.9%] [added: 32.7%] |

| T-Mobile | | | | [removed: 19.7%] [added: 20.3%] | | [removed: 19.6%] [added: 19.7%] | | [removed: 19.0%] [added: 19.6%] |

| Verizon Wireless | | | | 19.0% | | [removed: 18.2%] [added: 19.0%] | | [removed: 16.3%] [added: 18.2%] |

| Sprint | | | | [removed: 18.9%] [added: 19.6%] | | [removed: 19.8%] [added: 18.9%] | | [removed: 22.3%] [added: 19.8%] |

| Percentage of International Site Leasing Revenue | | | | [removed: 2017] [added: 2018] | | [removed: 2016] [added: 2017] | | [removed: 2015] [added: 2016] |

| Oi S.A. | | | | [removed: 42.2%] [added: 35.5%] | | [removed: 43.9%] [added: 42.2%] | | [removed: 48.8%] [added: 43.9%] |

| Telefonica | | | | [removed: 25.7%] [added: 26.7%] | | [removed: 26.4%] [added: 25.7%] | | [removed: 24.7%] [added: 26.4%] |

| Claro | | | | [removed: 10.0%] [added: 11.4%] | | [removed: 9.4%] [added: 10.0%] | | [removed: 8.0%] [added: 9.4%] |

| Percentage of Site Development Revenue | | | | [removed: 2017] [added: 2018] | | [removed: 2016] [added: 2017] | | [removed: 2015] [added: 2016] |

| T-Mobile | | | | [removed: 26.9%] [added: 16.4%] | | [removed: 28.4%] [added: 26.9%] | | [removed: 17.6%] [added: 28.4%] |

| Sprint | | | | [removed: 12.9%] [added: 47.1%] | | [removed: 11.7%] [added: 12.9%] | | [removed: 28.5%] [added: 11.7%] |

| Verizon Wireless | | | | [removed: 12.8%] [added: 6.4%] | | [removed: 16.5%] [added: 12.8%] | | [removed: 14.8%] [added: 16.5%] |

| Nokia, Inc. | | | | [removed: 10.1%] [added: 3.2%] | | [removed: 7.1%] [added: 10.1%] | | [removed: 6.3%] [added: 7.1%] |

[removed: Each] [added: In the United States and Canada, each] site leasing contract relates to the lease of space at an individual tower and is generally for an initial term of five to ten years [removed: in the U.S. and Canada, and renewable for five] [added: with multiple] 5-year [added: renewal] periods at the option of the tenant.

Site leasing contracts in our Central American and South American markets typically have an initial term of ten years with multiple [removed: five year] [added: 5-year] renewal periods.

[removed: However, if any of our significant site leasing] customers were to experience financial difficulty, substantially reduce their capital expenditures or reduce their dependence on leased tower space and fail to renew their leases with us, our revenues, future revenue growth and results of operations would be adversely affected.

For example, in [removed: 2017,] [added: 2018,] we passed on more U.S. acquisitions than we did in [removed: 2016] [added: 2017] due to asset quality, price, or lease terms.

Furthermore, to the extent that the tower acquisition opportunities are for significant tower portfolios, [removed: many] [added: some] of our competitors are significantly larger and have greater financial resources than we do.

[removed: Finally, laws regulating] competition, domestically and internationally, may limit our ability to acquire certain portfolios.

Due to these risks, it may take longer to complete our new tower [removed: builds,] [added: builds than anticipated,] domestically and internationally, [removed: than anticipated,] and the costs of constructing these towers may be higher than we expect or we may not be able to add as many towers as we had planned in [removed: 2018.][added: 2019.]

In addition, the increasing number of towers (1) may provide customers the ability to relocate their [removed: antennae] [added: antennas] to other towers if they determine that a more suitable, efficient or [removed: economic] [added: economical] location exists, which could lead to non-renewal of existing leases, or (2) may adversely impact our ability to enter into new customer leases.

- national and regional tower companies who may be substantially larger and have greater financial resources than we do; [removed: and]

A slowdown in demand for wireless communications services or [removed: for tower space] [added: delays or changes in the deployment or adoption of new technologies] could materially and adversely affect our future growth and revenues, and we cannot control that demand.

If consumers significantly reduce their minutes of use or data usage, or fail to widely adopt and use wireless data [removed: applications,] [added: applications or new technologies,] our wireless service provider customers could experience a decrease in demand for their services.

As a result of all of the above, wireless service providers may scale back their business plans or otherwise reduce their spending, which could materially and adversely affect demand for our tower space and our wireless communications services [removed: business, which could have a material adverse effect on our business, results of operations and financial condition.][added: business.]

Our current business operations in [removed: Canada, Central America, and South America,] [added: developing markets,] and our expansion into any other international markets in the future, could result in adverse financial consequences and operational problems not typically experienced in the United States.

AT&T, Verizon and Sprint have grown through acquisitions of other wireless service providers.

As a result, the combined companies have rationalized duplicative parts of their networks, and, in the case of Sprint, the Nextel iDEN network was discontinued.

In addition, in April 2018, T-Mobile and Sprint entered into a definitive agreement to merge, subject to regulatory approval and other closing conditions.

If this potential transaction closes, it may lead to the non-renewal of certain leases as a result of the rationalization of duplicative or overlapping parts of their networks.

As of December 31, 2018, T-Mobile and Sprint represented approximately 16.4% and 15.8% of our total site leasing revenue, respectively.

The revenue generated from each of T-Mobile and Sprint on overlapping sites represented less than 6.5% of our total site leasing revenue for the year ended December 31, 2018, excluding, and incremental to, the impact from previously disclosed expected consolidation churn from T-Mobile’s MetroPCS and Sprint’s Clearwire networks.

In addition, these overlapping sites have an average remaining current term of approximately 3.6 years and 4.9 years with T-Mobile and Sprint, respectively.

In addition, our customers may decide not to renew certain tower leases on towers that do not have duplicative or overlapping antennas, which could further impact our operating results.

Consolidation may also occur among wireless service provider customers in our international markets.

For example, in January 2019, Claro acquired Telefonica’s assets in Guatemala and El Salvador, two markets in which we own towers.

Consolidations in our international markets may also lead to non-renewal of certain of our tower leases, which could adversely affect our operating results.

However, if any of our significant site leasing

For example, in January 2018, Oi, S.A. (“Oi”), our largest customer in Brazil, emerged from bankruptcy with a reorganization plan and is expected to resolve all of its pre-petition obligations.

| | | | | | 2018 | | | 2017 | |

For example, on March 9, 2018, we, through a New York common law trust, issued $640.0 million in Tower Securities, and on April 11, 2018, we secured a new $2.4 billion term loan, which contributed to the net $623.0 million increase of our total indebtedness during 2018.

There is no guarantee that the future

As of December 31, 2018, this represented approximately $2.7 billion, or 27.1% of our total indebtedness.

In addition, LIBOR is the subject of recent proposals for reform, which may cause LIBOR to disappear entirely or perform differently than in the past.

The consequences of these developments cannot be predicted, but could result in an increase in the cost of our variable rate debt.

For example, on February 1, 2019, we, through our wholly owned subsidiary, SBA Senior Finance II, LLC, entered into a four-year interest rate swap on a portion of our 2018 Term Loan.

We swapped $1.2 billion of notional value accruing interest at one month LIBOR plus 200 basis points for a fixed rate of 4.495% per annum.

This impact may be exacerbated if competitors construct towers near our existing towers.

Finally, laws regulating

- challenges arising from less-developed infrastructure in certain markets; and

We are also exposed to risks operating in countries with high levels of inflation, including the risk that inflation rates exceed our fixed escalator percentages in markets where our leases include fixed escalators and the risk that adverse economic conditions may discourage growth in consumer demand and consequently reduce our customers’ demand for our site leasing services.

For example, we have a subsidiary in Argentina through which we operate our site leasing business.

The Argentinean economy was deemed to be “highly inflationary” from a U.S. GAAP perspective as of the second quarter of 2018.

As a result, we remeasured the financial statements for those operations to the U.S. dollar as of July 1, 2018.

Although this change did not have a material impact on our financial statements as our assets in and revenue from Argentina were each less than 1% of consolidated assets and revenue, respectively, as of December 31, 2018, going forward, fluctuations in the Argentinean Peso to U.S. dollar exchange rate could negatively impact our financial results.

expenses are denominated in local currency.

The majority of our tower portfolio is comprised of traditional macro sites, and therefore is not as diversified into non-macro sites and other technologies and architectures as some of our competitors.

Any such event may have a disproportionate impact on our business as compared to our competitors whose portfolios may be more technologically and architecturally diversified than ours.

In addition, delays or changes in the deployment of new technologies could further slow additional investment by our customers in their networks.

Any of these factors could have a material adverse effect on our business, results of operations and financial condition.

We are subject to a number of risks and uncertainties as a result of those acquisition activities.

These activities may fail to achieve the benefits we expected from the acquisition or the acquired assets may not meet our internal guidelines for current and future returns, particularly if we are required to place greater reliance on the financial and operational representations and warranties of the sellers in individually material acquisitions.

The impact of these risks is further enhanced in acquisitions of towers in international markets, where it may be more challenging to analyze and verify all relevant information with respect to the assets being acquired.

These risks could adversely affect our revenues and results of operations.

The process of integrating any acquired towers into our operations is also subject to a number of risks and financial impacts, including unforeseen operating difficulties, large expenditures, diversion of management attention, the loss of key customers and/or personnel, our inability to retain or timely find suitable replacements for key employees and management needed to operate the acquired business, and exposure to unanticipated liabilities.

significant operational and financial restrictions on us, including restrictions that may limit our ability to engage in acts that may be in our long-term best interests.

In connection with the combinations of Verizon Wireless and ALLTEL (to form Verizon Wireless), Cingular and AT&T Wireless (to form AT&T Mobility) and Sprint PCS and Nextel (to form Sprint), the combined companies have rationalized duplicative parts of their networks, and, in the case of Sprint, the Nextel iDEN network was discontinued, which has led and may continue to lead to the non-renewal of certain leases on our towers.

During 2013, Sprint acquired Clearwire Communications and T-Mobile acquired MetroPCS, and in 2014, AT&T acquired Leap Wireless (Cricket Wireless).

| | | | | | 2017 | | | 2016 | |

For example, on October 13, 2017, we issued $750.0 million of unsecured senior notes, which contributed to the $530 million increase of our total indebtedness during 2017.

These restrictions could have a material adverse effect on our business by limiting our ability to take advantage of financing, new tower development, mergers and acquisitions, share repurchases, or other opportunities and to satisfy our REIT distribution requirements.

We currently have no interest rate swaps.

On June 20, 2016, Oi, S.A. (“Oi”), our largest customer in Brazil, filed a petition for judicial reorganization in Brazil.

For the year ended December 31, 2017, Oi comprised approximately 7.5% of our total site leasing revenue.

While we initially recorded a $16.5 million bad debt provision during the second quarter of 2016 relating to amounts owed or potentially owed by Oi as of the petition date, since that date we have continued to do business with Oi in the ordinary course.

On January 8, 2018, Oi’s reorganization plan was approved by the Brazilian courts and Oi is expected to resolve all its pre-petition obligations in accordance with the terms of the plan.

| Ericsson, Inc. | | | | 7.4% | | 5.0% | | 15.3% |

- health or similar issues, such as a pandemic or epidemic;

- language and cultural differences.

In accordance with

We rely on our due diligence of the towers and the representations and financial records of the sellers and other third parties to establish the anticipated revenues and expenses and whether the acquired towers will meet our internal guidelines for current and future potential returns.

In addition, we may not always have the ability to analyze and verify all information regarding title, access and other issues regarding the land underlying acquired towers.

This is particularly true in our international acquisitions of towers from wireless service providers.

To the extent that these towers were acquired in individually material transactions, we may be required to place enhanced reliance on the financial and operational representations and warranties of the sellers.

If (i) these records are not complete or accurate, (ii) we do not have complete access to, or use of, the land underlying the acquired towers or (iii) the towers do not achieve the financial results anticipated, it could adversely affect our revenues and results of operations.

The process of integrating any acquired towers into our operations may result in unforeseen operating difficulties and large expenditures and may absorb significant management attention that would otherwise be available for the ongoing development of our business.

It may also result in the loss of key customers and/or personnel and expose us to unanticipated liabilities.

Further, we may not be able to retain the key employees that may be necessary to operate the business we acquire, and we may not be able to timely attract new skilled employees and management to replace them.

This is particularly true in our international acquisitions of towers from wireless service providers.

Delays or changes in the deployment or adoption of new technologies or slowing consumer adoption rates may have a material adverse effect on our growth rate.

Our quarterly operating results for our site development services fluctuate and therefore we may not be able to adjust our cost structure on a timely basis with regard to such fluctuations.

The demand for our site development services fluctuates from quarter to quarter and should not be considered indicative of long-term results.

Numerous factors cause these fluctuations, including:

- the timing and amount of our customers’ capital expenditures;

- the size and scope of our projects;

- the business practices of customers, such as deferring commitments on new projects until after the end of the calendar year or the customers’ fiscal year;

- delays relating to a project or tenant installation of equipment;

- seasonal factors, such as weather, holidays and vacation days and total business days in a quarter;

- the use of third party providers by our customers;

- the rate and volume of wireless service providers’ network development; and

- general economic conditions.

Although the demand for our site development services fluctuates, we incur significant fixed costs, such as maintaining a staff and office space, in anticipation of future contracts.

In addition, the timing of revenues is difficult to forecast because our sales cycle may be relatively long.

Therefore, we may not be able to adjust our cost structure on a timely basis to respond to the fluctuations in demand for our site development services.

Cavanagh, our Executive Vice President and Chief Financial Officer.

The SEC staff acknowledged the challenges companies face incorporating the effects of the Tax Act by their financial reporting deadlines.

Our primary business line is our site leasing business, which contributed [removed: 98.7%] [added: 98.0%] of our total segment operating profit for the year ended December 31, [removed: 2017.][added: 2018.]

As of December 31, [removed: 2017,] [added: 2018,] we owned [removed: 27,909] [added: 29,578] towers, a substantial portion of which have been built by us or built by other tower owners or operators who, like us, have built such towers to lease space to multiple wireless service providers.

We also managed or leased approximately [removed: 9,000] [added: 9,700] actual or potential [removed: towers,] [added: sites,] approximately 500 of which were revenue producing as of December 31, [removed: 2017.][added: 2018.]

As of December 31, [removed: 2017,] [added: 2018,] (1) no U.S. state or territory accounted for more than 10% of our total tower portfolio by tower count, and (2) no U.S. state or territory accounted for more than 10% of our total revenues for the year ended December 31, [removed: 2017.][added: 2018.]

In addition, as of December 31, [removed: 2017,] [added: 2018,] approximately [removed: 30.1%] [added: 28.9%] of our total towers are located in Brazil and less than 3% of our total towers are located in any of our other international markets (each country is considered a market).

[removed: In the United States and Canada, our] tenant leases are generally for an initial term of five to ten years with [removed: five] [added: multiple] 5-year renewal periods at the option of the tenant.

Tenant leases in our Central American and South American markets typically have an initial term of ten years with multiple [removed: five year] [added: 5-year] renewal periods.

In Brazil, Canada, [removed: Chile,] and [removed: Colombia,] [added: Chile,] significantly all of our revenue, expenses, and capital expenditures, including tenant leases, ground leases, and other tower-related expenses are denominated in local currency.

In [removed: Argentina] [added: Colombia, Argentina,] and Peru, our revenue, expenses, and capital expenditures, including tenant leases, ground leases, and other tower-related expenses are denominated in a mix of local currency and U.S. dollars.

- Straight-line rent adjustment for the difference between rental payments made and the expense recorded as if the payments had been made evenly throughout the lease term (which may include renewal terms) of the underlying property [removed: interests;][added: interests.]

- Property insurance; [removed: and]

- [removed: Deferred lease] [added: Lease] origination cost [removed: amortization.][added: amortization; and]

Ground leases are generally for an initial term of five years or more with multiple [added: 5-year] renewal [removed: terms of five year] periods at our option and provide for rent escalators which typically average 2-3% annually, or in our South American markets, adjust in accordance with a standard cost of living index.

As of December 31, [removed: 2017,] [added: 2018,] approximately [removed: 70%] [added: 71%] of our tower structures were located on parcels of land that we own, land subject to perpetual easements, or parcels of land in which we have a leasehold interest that extends beyond 20 years.

| Segment operating profit as a percentage of total | | [removed: 2017] [added: 2018] | | | [removed: 2016] [added: 2017] | | | [removed: 2015] [added: 2016] | |

| Domestic site leasing | | | [removed: 81.8%] [added: 81.2%] | | | [removed: 83.6%] [added: 81.8%] | | | [removed: 82.4%] [added: 83.6%] |

| International site leasing | | | [removed: 16.9%] [added: 16.8%] | | | [removed: 15.1%] [added: 16.9%] | | | [removed: 14.4%] [added: 15.1%] |

| Total site leasing | | | [removed: 98.7%] [added: 98.0%] | | | 98.7% | | | [removed: 96.8%] [added: 98.7%] |

During [removed: 2018,] [added: 2019,] we expect organic site leasing revenue in both our domestic and international segments to increase over [removed: 2017] [added: 2018] levels due in part to wireless carriers deploying unused [removed: spectrum and spectrum acquired during auctions completed in 2017.][added: spectrum.]

[removed: Furthermore, because our towers are strategically positioned and our customers typically do] not relocate, we have historically experienced low tenant lease terminations as a percentage of revenue other than in connection with customer consolidation or cessations of a specific technology (e.g. iDEN, MetroPCS, Clearwire, and Cricket).

We currently utilize stock repurchases as part of our capital allocation policy when we believe our share price is below [added: its] intrinsic value.

For a detailed discussion on the application of these and other accounting policies, see Note 2 of our Consolidated Financial Statements for the year ended December 31, [removed: 2017,] [added: 2018,] included herein.

Revenue from site leasing is [removed: recorded monthly and] recognized on a straight-line basis over the current term of the related lease agreements, which are generally five to ten years.

Site development projects in which we perform consulting services include contracts on a [removed: time and materials basis or a] fixed price [removed: basis.][added: basis that are billed at contractual rates.]

Revenue from construction projects is recognized [removed: on the percentage-of-completion method of accounting,] [added: over time,] determined by the percentage of cost incurred to date compared to management’s estimated total cost for each contract.

[removed: We] [added: In addition, we] monitor collections and payments from our customers and maintain a provision for estimated credit losses based upon historical experience, specific customer collection issues identified, and past due balances as determined based on contractual terms.

Domestic site leasing revenues increased $34.5 million for the year ended December 31, 2017, as compared to the prior year, due largely to [removed: (i)] [added: (1)] revenues from 438 towers acquired and 97 towers built since January 1, 2016 and [removed: (ii)] [added: (2)] organic site leasing growth, primarily from monetary lease amendments for additional equipment added to our towers as well as new leases and contractual rent escalators, partially offset by lease non-renewals primarily by MetroPCS, Clearwire, and Cricket.

These changes were primarily due to [removed: (i)] [added: (1)] revenues from 1,518 towers acquired and 739 towers built since January 1, 2016, [removed: (ii)] [added: (2)] organic site leasing growth from new leases and contractual escalators, and [removed: (iii)] [added: (3)] an increase in reimbursable pass-through expenses.

Site development revenues increased $9.4 million for the year ended December 31, 2017, as compared to [added: the] prior year, as a result of increased carrier activity.

Domestic site leasing segment operating profit increased $34.6 million for the year ended December 31, 2017, as compared to the prior year, primarily due to additional profit generated by [removed: (i)] [added: (1)] towers acquired and built since January 1, 2016 and organic site [added: leasing growth as noted above, (2) continued control of our site leasing cost of revenue, and (3) the positive impact of our ground lease purchase program.]

[added: These changes were primarily due to additional profit generated by (1) towers acquired and built since January 1, 2017 and organic site] leasing growth as noted above, [removed: (ii)] [added: (2)] continued control of our site leasing cost of revenue, and [removed: (iii)] [added: (3)] the positive impact of our ground lease purchase program.

These changes were primarily as a result of changes in our estimated pre-acquisition contingencies as compared to the prior year period and a reduction in third party acquisition costs expensed in [removed: the current year] [added: 2017] as compared to [removed: the prior year.][added: 2016.]

| Site [removed: Development] [added: development] | | | 180 | | | — | | | — | | | 180 | | | [removed: NM] [added: —%] |

| Not identified by segment | | | — | | | 2,345 | | | — | | | (2,345) | | | [removed: (100.0%)] [added: —%] |

Asset impairment and decommission costs increased $6.5 million for the year ended December 31, [removed: 2017] [added: 2017,] as compared to the prior year.

These changes were primarily as a result of [removed: a] [added: an] $8.9 million gain on the sale of fiber assets recorded in the prior year period, partially offset by a $2.3 million decrease in write-off and disposal costs related to our former corporate headquarters building.

Operating Income [removed: (Loss):][added: (Expense):]

| Other [removed: income (expense),] [added: (expense) income,] net | | | (2,418) | | | 94,278 | | | (99,624) | | | 2,928 | | | 3.1% |

The decrease primarily resulted from the repayment of the 2010-2C Tower Securities in July 2016, the 5.75% Senior Notes in August 2016, the 5.625% Senior Notes in October 2016, and [added: the 2012-1C Tower Securities in April 2017, partially offset by the issuance of the 2016-1C Tower Securities in July 2016, 2016 Senior Notes in August 2016, 2017-1C Tower Securities in April 2017, 2017 Senior Notes in October 2017, and a higher average balance outstanding on the Revolving Credit Facility in 2017.]

Non-cash interest expense increased $0.7 million for the year ended December 31, 2017, as compared to the prior year, primarily due to the amortization of the discount related to the 2016 Senior Notes [removed: (defined below)] issued in August 2016.

In the United States and Canada, our

Furthermore, because our towers are strategically positioned and our customers typically do

Revenue from site leasing represents 93% of our total revenue.

Revenue is recognized over time based on milestones achieved, which are determined based on costs incurred.

Refer to Note 9 in our Consolidated Financial Statements included in this annual report for further detail of costs and estimated earnings in excess of billings on uncompleted contracts.

The site development segment represents approximately 7% of our total revenues.

We account for site development revenue in accordance with ASC 606, Revenue from Contracts with Customers, which was adopted on January 1, 2018 by applying the modified retrospective transition method.

Payment terms do not result in any significant financing arrangements.

Furthermore, these contracts do not typically include variable consideration; therefore, the transaction price that is recognized over time is generally the amount of the total contract.

The cumulative effect of initially applying the new revenue standard had no impact on our financial results.

The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.

The adoption of the new standard had no impact to net income on an ongoing basis.

The accounts receivable balance for the years ended December 31, 2018 and 2017 was $111.0 million and $90.7 million, respectively, of which $27.1 and $20.8 million related to the site development segment, respectively.

Refer to Note 18 in our Consolidated Financial Statements included in this annual report for further detail of the site development segment.

Recent Accounting Pronouncements Not Yet Adopted

In February 2016, the FASB issued ASU 2016-02, Leases.

The standard requires lessees to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments for all leases with a term greater than 12 months.

The accounting for lessors remains largely unchanged from existing guidance.

The Company has adopted this standard as of January 1, 2019.

This guidance will have a material impact on the Company’s consolidated balance sheet due to the recognition of lease liabilities for its ground leases of approximately $2.3 billion to $2.7 billion.

Adoption of this guidance will not have a significant impact on the Company’s lease classification, a material impact on its consolidated statement of operations, or a notable impact on its liquidity.

Additionally, the standard will have no impact on the Company’s debt-covenant compliance under its current agreements.

In July 2018, the FASB issued additional guidance on the accounting for leases.

The guidance provides companies with another transition method that allows entities to recognize a cumulative-effect adjustment to the opening balance of retained earnings as of the date of adoption.

Under this method, previously presented years’ financial positions and results are not adjusted.

The Company adopted this alternative transition method.

The new guidance also provides lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component if (1) the non-lease components would otherwise be accounted for under the new revenue recognition standard, (2) both the timing and pattern of transfer are the same for the non-lease components and associated lease component, and (3) if accounted for separately, the lease component would be classified as an operating lease.

The Company adopted this practical expedient in its accounting for leases.

| Domestic site leasing | | $ | 1,400,095 | | $ | 1,308,389 | | $ | — | | $ | 91,706 | | | 7.0% |

| International site leasing | | | 340,339 | | | 314,784 | | | (31,343) | | | 56,898 | | | 18.1% |

| Site development | | | 125,261 | | | 104,501 | | | — | | | 20,760 | | | 19.9% |

| Total | | $ | 1,865,695 | | $ | 1,727,674 | | $ | (31,343) | | $ | 169,364 | | | 9.8% |

| Domestic site leasing | | $ | 266,131 | | $ | 260,826 | | $ | — | | $ | 5,305 | | | 2.0% |

| International site leasing | | | 106,165 | | | 98,701 | | | (10,795) | | | 18,259 | | | 18.5% |

| Site development | | | 96,499 | | | 86,785 | | | — | | | 9,714 | | | 11.2% |

| Total | | $ | 468,795 | | $ | 446,312 | | $ | (10,795) | | $ | 33,278 | | | 7.5% |

| Domestic site leasing | | $ | 1,133,964 | | $ | 1,047,563 | | $ | — | | $ | 86,401 | | | 8.2% |

| International site leasing | | | 234,174 | | | 216,083 | | | (20,548) | | | 38,639 | | | 17.9% |

| Site development | | | 28,762 | | | 17,716 | | | — | | | 11,046 | | | 62.4% |

| Domestic site leasing | | $ | 72,879 | | $ | 67,263 | | $ | — | | $ | 5,616 | | | 8.3% |

Time and materials based contracts are billed at contractual rates and revenue is recognized as the services are rendered.

For those site development contracts in which we perform work on a fixed price basis, site development billing (and revenue recognition) is based on the completion of agreed upon phases of the project on a per site basis.

Upon the completion of each phase on a per site basis, we recognize the revenue related to that phase.

Site development projects generally take from 3 to 12 months to complete.

The asset “costs and estimated earnings in excess of billings on uncompleted contracts” represents costs incurred and revenues recognized in excess of amounts billed.

The liability “billings in excess of costs and estimated earnings on uncompleted contracts,” included within other current liabilities on our Consolidated Balance Sheets, represents billings in excess of costs incurred and revenues recognized.

Asset Impairment

We evaluate individual long-lived and related assets with finite lives for indicators of impairment to determine when an impairment analysis should be performed.

We evaluate our tower assets and current contract intangibles at the tower level, which is the lowest level for which identifiable cash flows exists.

We evaluate our network location intangibles for impairment at the tower leasing business level whenever indicators of impairment are present.

We have established a policy to at least annually evaluate our tower assets and current contract intangibles for impairment.

We record an impairment charge when we believe an investment in towers or related assets has been impaired, such that future undiscounted cash flows would not recover the then current carrying value of the investment in the tower and related intangible.

If the future undiscounted cash flows are lower than the carrying value of the investment in the tower and related intangible, we calculate future discounted cash flows and compare those amounts to the carrying value.

We record an impairment charge for any amounts lower than the carrying value.

Estimates and assumptions inherent in the impairment evaluation include, but are not limited to, general market and economic conditions, historical operating results, geographic location, lease-up potential, and expected timing of lease-up.

In addition, we make certain assumptions in determining an asset’s fair value for the purpose of calculating the amount of an impairment charge.

Acquisitions

In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business.

ASU 2017-01 provides revised guidance to determine when an acquisition meets the definition of a business or when the acquisition should be accounted for as an asset acquisition.

We adopted this standard effective January 1, 2017 and all changes will be accounted for prospectively.

The adoption of ASU 2017-01 did not have a material impact on our unaudited consolidated financial statements and related disclosures.

Under the new standard, our acquisitions will generally qualify for asset acquisition treatment under ASC 360, Property, Plant, and Equipment, rather than business combination treatment under ASC 805 Business Combinations.

For acquisitions which qualify as asset acquisitions, the aggregate purchase price is allocated on a relative fair value basis to towers and related intangible assets.

For asset acquisitions, external, direct transaction costs will be capitalized as a component of the cost of the asset acquired.

We will continue to expense internal acquisition costs as incurred.

We account for business combinations under the acquisition method of accounting.

The assets and liabilities acquired are recorded at fair market value at the date of each acquisition and the results of operations of the acquired assets are included with those from the dates of the respective acquisitions.

We continue to evaluate all acquisitions for a period not to exceed one year after the applicable closing date of each transaction to determine whether any additional adjustments are needed to the allocation of the purchase price paid for the assets acquired and liabilities assumed as a result of information available at the acquisition date.

The fair values of net assets acquired are based on management’s estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques.

The fair value estimates are based on available historical information and on future expectations and assumptions deemed reasonable by management at the time.

If the actual results differ from the estimates and judgments used in these fair values, the amounts recorded in the consolidated financial statements could be subject to a possible impairment of the intangible assets, or require acceleration of the amortization expense of intangible assets in subsequent periods.

The intangible assets represent the value associated with the current leases at the acquisition date (“Current contract intangibles”) and future tenant leases anticipated to be added to the towers (“Network location intangibles”) and were calculated using the discounted values of the current or future expected cash flows.

The intangible assets are estimated to have a useful life consistent with the useful life of the related tower assets, which is typically 15 years.

In connection with certain acquisitions, we may agree to pay contingent consideration (or earnouts) in cash or stock if the communication sites or businesses that are acquired meet or exceed certain performance targets over a period of one to three years after they have been acquired.

Contingent consideration in connection with asset acquisitions will be recognized at the time when the contingency is resolved or becomes payable and will increase the cost basis of the assets acquired.

We accrue for contingent

consideration in connection with business combinations at fair value as of the date of the acquisition.

All subsequent changes in fair value of contingent consideration payable in cash are recorded through Consolidated Statements of Operations.

the 2012-1C Tower Securities in April 2017, partially offset by the issuance of the 2016-1C Tower Securities in July 2016, 2016 Senior Notes in August 2016, 2017-1C Tower Securities in April 2017, 2017 Senior Notes in October 2017, and a higher average balance outstanding on the Revolving Credit Facility in the current year period.

Loss from the extinguishment of debt was $52.7 million for the year ended December 31, 2016 due to the payment of a $25.8 million call premium and the write-off of $7.7 million in deferred financing fees on the redemption of the 5.75% Senior Notes, the payment of a $14.1 million call premium and the write-off of $4.1 million in deferred financing fees on the redemption of the 5.625% Senior Notes, and the write-off of $1.0 million in deferred financing fees related to redemption of the 2010-2C Tower Securities.

The following table presents the future principal payment obligations and fair values associated with our long-term debt instruments assuming our actual level of long-term indebtedness as of December 31, [removed: 2017:][added: 2018:]

| | | [removed: 2018 | | |] 2019 | | | 2020 | | | 2021 | | | 2022 | | | [added: 2023 | | |] Thereafter | | | Total | | | Fair Value | |

| 2014 Senior Notes | | $ | — | | $ | — | | $ | — | | $ | [removed: —] [added: 750,000] | | $ | [removed: 750,000] [added: —] | | $ | — | | $ | 750,000 | | $ | [removed: 770,625] [added: 735,000] |

| 2016 Senior Notes | | | — | | | — | | | — | | | — | | | — | | | 1,100,000 | | | 1,100,000 | | | [removed: 1,127,500] [added: 1,034,000] |

| 2017 Senior Notes | | | — | | | — | | | — | | | [removed: —] [added: 750,000] | | | [removed: 750,000] [added: —] | | | — | | | 750,000 | | | [removed: 750,938] [added: 712,500] |

| [removed: 2013-1C] [added: 2013-2C] Tower Securities [removed: (1)(2)] [added: (1)] | | | [removed: 425,000] [added: —] | | | — | | | — | | | — | | | [removed: —] [added: 575,000] | | | — | | | [removed: 425,000] [added: 575,000] | | | [removed: 423,853] [added: 569,164] |

| 2014-1C Tower Securities (1) | | | [removed: —] [added: 920,000] | | | [removed: 920,000] [added: —] | | | — | | | — | | | — | | | — | | | 920,000 | | | [removed: 915,216] [added: 914,241] |

| 2014-2C Tower Securities (1) | | | — | | | — | | | — | | | — | | | — | | | 620,000 | | | 620,000 | | | [removed: 620,942] [added: 609,665] |

| 2015-1C Tower Securities (1) | | | — | | | [removed: —] [added: 500,000] | | | [removed: 500,000] [added: —] | | | — | | | — | | | — | | | 500,000 | | | [removed: 496,840] [added: 496,640] |

| 2016-1C Tower Securities (1) | | | — | | | — | | | [removed: —] [added: 700,000] | | | [removed: 700,000] [added: —] | | | — | | | — | | | 700,000 | | | [removed: 691,166] [added: 691,432] |

| 2017-1C Tower Securities (1) | | | — | | | — | | | — | | | [removed: —] [added: 760,000] | | | [removed: 760,000] [added: —] | | | — | | | 760,000 | | | [removed: 751,404] [added: 744,496] |

| Revolving Credit Facility | | | — | | | — | | | [removed: 40,000] [added: —] | | | — | | | [removed: —] [added: 325,000] | | | — | | | [removed: 40,000] [added: 325,000] | | | [removed: 40,000] [added: 325,000] |

(1)The anticipated repayment date and the final maturity date for the [removed: 2013-1C] [added: 2013-2C] Tower Securities is April [removed: 10, 2018] [added: 11, 2023] and April 9, [removed: 2043,] [added: 2048,] respectively.

The anticipated repayment date and the final maturity date for the [removed: 2013-2C] [added: 2018-1C] Tower Securities is [removed: April 11,] [added: March 9,] 2023 and [removed: April] [added: March] 9, 2048, respectively.

Our current primary market risk exposure is (1) interest rate risk relating to our ability to refinance our debt at commercially reasonable rates, if at all, and (2) interest rate risk relating to the impact of interest rate movements on [added: the variable portion of] our [removed: 2014 Term Loan and 2015] [added: 2018] Term Loan and any borrowings that we may incur under our Revolving Credit Facility, which are at floating rates.

We manage the interest rate risk on our outstanding debt through our large percentage of fixed rate [removed: debt.][added: debt, including a four-year interest rate swap on a portion of our 2018 Term Loan entered into on February 1, 2019.]

[added: While we cannot predict our ability to] refinance existing debt or the impact interest rate movements will have on our existing debt, we continue to evaluate our financial position on an ongoing basis.

In addition, in Brazil, Canada, [removed: Chile,] and [removed: Colombia,] [added: Chile,] we receive significantly all of our revenue and pay significantly all of our operating expenses in local currency.

In [removed: Peru and] [added: Colombia,] Argentina, [added: and Peru,] we receive our revenue and pay our operating expenses in a mix of local currency and U.S. dollars.

[removed: For] the year ended December 31, [removed: 2017,] [added: 2018,] approximately [removed: 13.5%] [added: 13.3%] of our revenues and approximately [removed: 16.3%] [added: 16.9%] of our total operating expenses were denominated in foreign currencies.

We have performed a sensitivity analysis assuming a hypothetical 10% adverse movement in the Brazilian Real from the quoted foreign currency exchange rates at December 31, [removed: 2017.][added: 2018.]

As of December 31, [removed: 2017,] [added: 2018,] the analysis indicated that such an adverse movement would have caused our revenues and operating income to decline by approximately 1.1% and [removed: 2.8%,] [added: 0.5%,] respectively, for the year ended December 31, [removed: 2017.][added: 2018.]

As of December 31, [removed: 2017,] [added: 2018,] we had intercompany debt, which is denominated in a currency other than the functional currency of the subsidiary in which it is recorded.

A change of 10% in the underlying exchange rates of our unsettled intercompany debt at December 31, [removed: 2017] [added: 2018] would have resulted in approximately [removed: $56.4] [added: $53.6] million of unrealized gains or losses that would have been included in Other income (expense), net in our Consolidated Statements of Operations for the year ended December 31, [removed: 2017.][added: 2018.]

This annual report contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the [added: Securities] Exchange [removed: Act.][added: Act of 1934, as amended.]

- our expectations on the future growth and financial health of the wireless industry and the industry participants, the drivers of such growth, the demand for our towers, the [added: future capital investments of our customers, the] trends developing in our industry, and competitive factors;

- our intent to grow our tower portfolio domestically and internationally and [removed: expend] [added: expand] through [added: acquisitions, new builds and] organic lease up on existing towers;

- our expectation regarding site leasing revenue growth, on an organic basis, in our domestic and international [removed: segments;][added: segments, and the drivers of such growth;]

- our [added: focus on our site leasing business and] belief that our site leasing business is characterized by stable and long-term recurring revenues, [added: reduced exposure to changes in customer spending,] predictable operating costs, and minimal non-discretionary capital expenditures;

- our expectations regarding our capital allocation strategy, [added: including future allocation decisions between stock repurchases and portfolio growth,] the impact of our election to be taxed as a REIT on that strategy, and our goal of increasing our Adjusted Funds From Operations per share;

- our expectations regarding our debt service in [removed: 2018] [added: 2019] and our belief that our cash on hand, capacity under our Revolving Credit Facility, and our cash flows from operations for the next twelve months will be sufficient to service our outstanding debt during the next twelve months; [added: and]

- our [added: expectations and] estimates regarding certain tax and accounting matters, including the impact on our financial statements.

- the impact of consolidation among wireless service [removed: providers] [added: providers, including the potential impact of the proposed merger between Sprint and T-Mobile if consummated,] on our leasing revenue;

- our ability to successfully manage the risks associated with international operations, including risks relating to political or economic conditions, [added: inflation,] tax laws, currency restrictions and exchange rate fluctuations, legal or judicial systems, and land ownership;

- the impact of rising interest rates [added: on our results of operations] and our ability to refinance our existing indebtedness at commercially reasonable rates or at all;

- our ability to utilize available NOLs to reduce REIT taxable income; [added: and]

| 2018-1C Tower Securities (1) | | | — | | | — | | | — | | | — | | | 640,000 | | | — | | | 640,000 | | | 641,478 |

| 2018 Term Loan | | | 24,000 | | | 24,000 | | | 24,000 | | | 24,000 | | | 24,000 | | | 2,268,000 | | | 2,388,000 | | | 2,262,630 |

| Total debt obligation | | $ | 944,000 | | $ | 524,000 | | $ | 724,000 | | $ | 2,284,000 | | $ | 1,564,000 | | $ | 3,988,000 | | $ | 10,028,000 | | $ | 9,736,246 |

We swapped $1.2 billion of notional value accruing interest at one month LIBOR plus 200 basis points for a fixed rate of 4.495% per annum.

For

- our expectations regarding churn rates;

- our election to be subject to tax as a REIT and our intent to continue to operate as a REIT;

- our expectations regarding our business strategies, including our strategy for securing rights to the land underlying our towers, and the impact of such strategies on our financial and operational results;

- our intent to maintain our target leverage levels;

| 2013-2C Tower Securities (1) | | | — | | | — | | | — | | | — | | | — | | | 575,000 | | | 575,000 | | | 578,433 |

| 2013-1D Tower Securities (1)(2) | | | 330,000 | | | — | | | — | | | — | | | — | | | — | | | 330,000 | | | 330,145 |

| 2014 Term Loan | | | 15,000 | | | 15,000 | | | 15,000 | | | 1,402,500 | | | — | | | — | | | 1,447,500 | | | 1,451,119 |

| 2015 Term Loan | | | 5,000 | | | 5,000 | | | 5,000 | | | 5,000 | | | 467,500 | | | — | | | 487,500 | | | 488,109 |

| Total debt obligation | | $ | 775,000 | | $ | 940,000 | | $ | 560,000 | | $ | 2,107,500 | | $ | 2,727,500 | | $ | 2,295,000 | | $ | 9,405,000 | | $ | 9,436,290 |

The anticipated repayment date and the final maturity date for the 2013-1D Tower Securities is April 10, 2018 and April 9, 2043, respectively.

(2)Proceeds from the issuance of the 2018\-1C Tower Securities, which, once issued, will be due March 9, 2023, are expected to be used to repay the full $425.0 million outstanding under the 2013-1C Tower Securities and the full $330.0 million outstanding under the 2013-1D Tower Securities.

While we cannot predict our ability to

- our ability to grow our tower portfolio without proportionately increasing selling, general, and administrative expenses;

- our belief regarding the impact of our ground lease purchase program;

- our ability to remain qualified as a REIT and the timing of such qualification and our election to be subject to tax as a REIT;

- and our goal of increasing our Adjusted Funds From Operations per share;

- the timing of closing of pending financings and the expected use of proceeds;

- our belief regarding our credit risk;

- our estimates with respect to tax matters as a result of the Tax Act and our expectation that one-time income charges recognized as a result of the Tax Act will be offset by our existing NOLs; and

- the complexity of the Tax Act and our ability to accurately interpret and predict its impact on our financial condition and results; and

We are a leading independent owner and operator of wireless communications infrastructure, including tower structures, rooftops, and other structures that support antennas used for wireless communications, which we collectively refer to as “towers” [removed: or] [added: and the location of the towers as] “sites.” Our principal operations are in the United States and its territories.

Our primary business line is our site leasing business, which contributed [removed: 98.7%] [added: 98.0%] of our total segment operating profit for the year ended December 31, [removed: 2017.][added: 2018.]

As of December 31, [removed: 2017,] [added: 2018,] we owned [removed: 27,909] [added: 29,578] towers, a substantial portion of which have been built by us or built by other tower owners or operators who, like us, have built such towers to lease space to multiple wireless service providers.

We also managed or leased approximately [removed: 9,000] [added: 9,700] actual or potential sites, approximately 500 of which were revenue producing as of December 31, [removed: 2017.][added: 2018.]

Our site leasing business generates substantially all of our total segment operating profit, representing [removed: 96.8%] [added: 98.0%] or more of our total segment operating profit for the past three fiscal years.

As of December 31, [removed: 2017,] [added: 2018,] we owned [removed: 15,979] [added: 16,263] sites in the United States and its territories.

For the year ended December 31, [removed: 2017,] [added: 2018,] we generated [removed: 80.6%] [added: 80.4%] of our total site leasing revenue from these sites.

We derive domestic site leasing revenues primarily from AT&T, [removed: T\-Mobile,] Sprint, [added: T\-Mobile,] and Verizon Wireless.

In the United States, our tenant leases are generally for an initial term of five to ten years with [removed: five] [added: multiple] 5-year renewal periods at the option of the tenant.

Our ground leases in the United States are generally for an initial term of five years or more with multiple [added: 5-year] renewal [removed: terms of five-year] periods, at our option, and provide for rent escalators which typically average 2-3% annually.

As of December 31, [removed: 2017,] [added: 2018,] (1) no U.S. state or territory included more than 10% of our total tower portfolio by tower count, and (2) no U.S. state or territory accounted for more than 10% of our total revenues for the year ended December 31, [removed: 2017.][added: 2018.]

As of December 31, [removed: 2017, 30.1%] [added: 2018, we owned 13,315 sites in our international markets,] of [added: which 28.9% of] our [removed: total towers] [added: global sites] are located in Brazil and less than 3% of our [removed: total towers] [added: global sites] are located in each of our other international markets (each country is considered a market).

[added: | | · | | International Market Expansion –] We believe that we can create substantial value by expanding our site leasing services into select international markets which we believe have a high-growth wireless industry and relatively stable political and regulatory environments. [added: We consider various factors when identifying a market for our international expansion, including: |]

In Canada, our tenant leases are generally for an initial term of five to ten years with [removed: five] [added: multiple] 5-year renewal periods at the option of the tenant.

Tenant leases in our Central American and South American markets typically have an initial term of ten years with multiple [removed: five year] [added: 5-year] renewal periods.

In [added: certain international markets such as] Brazil, tenant leases are typically governed by master lease agreements, which provide for the material terms and conditions that will govern the terms of the use of the site.

Our [added: Businesses]

[removed: ground leases in Canada, Central America and South America generally have similar terms and] conditions as those in the United States, except that the annual escalators in our South American ground leases are based on a cost of living index.

In Brazil, Canada, [removed: Chile,] and [removed: Colombia,] [added: Chile,] significantly all of our revenue, expenses, and capital expenditures, including tenant leases, ground leases, and other tower-related expenses are denominated in local currency.

In [removed: Argentina] [added: Colombia, Argentina,] and Peru, our revenue, expenses, and capital expenditures, including tenant leases, ground leases, and other tower-related expenses are [removed: dominated] [added: denominated] in a mix of local currency and U.S. dollars.

[removed: We expand] [added: Consequently, we intend to continue to grow] our tower portfolio, [removed: both] domestically and internationally, through [removed: the acquisition of towers from third parties] [added: tower acquisitions] and [removed: through] the construction of new tower structures.

[added: | | · | | Disciplined Tower Acquisitions – In our tower acquisition program, we pursue towers from third parties, domestically and internationally, that meet or exceed our internal guidelines regarding current and future potential returns.] For each acquisition, we prepare various analyses that include projections of several different investment return metrics, review of available capacity, future lease up projections, and a summary of current and future tenant/technology mix. [added: |]

[added: | | · | | International Tower Growth – The majority of our international markets typically have less mature wireless networks with limited wireline infrastructure and lower wireless data penetration rates than those in the United States.] Accordingly, our [removed: expansion] [added: tower growth] in these markets is primarily driven by [removed: (i)] [added: (1)] wireless service providers seeking to increase the quality and coverage of their networks, [removed: (ii)] [added: (2)] increased consumer mobile data traffic, such as media streaming, mobile apps and games, web browsing, and email, and [removed: (iii)] [added: (3)] incremental spectrum auctions, which have resulted in new market entrants, as well as incremental voice and data network deployments. [added: |]

Since we first entered the Central and South American markets, we have built or acquired [removed: 11,655 towers] [added: 13,016 sites] as of December 31, [removed: 2017] [added: 2018] and continue to expand in these markets to respond to growing demand.

| | [removed: ·] [added: o] | | Country analysis – We consider the country’s economic and political stability, and whether the country’s general business, legal and regulatory environment is conducive to the sustainability and growth of our business. |

| | [removed: ·] [added: o] | | Market potential – We analyze the expected demand for wireless services, and whether a country has multiple wireless service providers who are actively seeking to invest in deploying voice and data networks, as well as spectrum auctions that have occurred or that are anticipated to occur. |

| | [removed: ·] [added: o] | | Risk adjusted return criteria – We consider whether buying or building towers in a country, and providing our management and leasing services, will meet our return criteria. As part of this analysis, we consider the risk of entering into an international market (for example, the impact of foreign currency exchange [removed: rates,] [added: rates and inflation,] real estate, permitting, and taxation risks), and how our expansion meets our long-term strategic objectives for the region and our business generally. |

Our site development business, which is conducted in the United States only, is complementary to our site leasing business and provides us the ability to keep in close contact with the wireless service providers that generate substantially all of our site leasing revenue and to capture [added: ancillary] revenues that are generated by our site leasing activities, such as [removed: antenna] [added: site acquisition services] and [removed: equipment] [added: the] installation [added: of antennas and other equipment] at our tower locations.

Our services include: (1) network pre-design; (2) [removed: site audits; (3)] identification of potential locations for [removed: towers and] [added: carrier] equipment on [added: new and] existing [added: towers, along with other wireless] infrastructure; [removed: (4)] [added: (3)] support in leasing of the location; [removed: (5)] [added: (4)] obtaining zoning approvals and permits; [removed: (6)] [added: (5)] tower and related site construction; [removed: (7)] [added: (6)] antenna installation; and [removed: (8)] [added: (7)] radio equipment installation, commissioning, and maintenance.

| | · | | Consumers are increasing their demand for wireless connectivity due to the adoption of bandwidth-intensive wireless data applications, such as video, social networking and enhanced web [removed: browsing.] [added: browsing, and the growth in machine-to-machine applications (such as connected cars).] As a result, according to industry estimates, global mobile data traffic will grow at an approximately 46% compound annual growth rate from [removed: 2016] [added: 2017] to [removed: 2021] [added: 2022] and will grow at a rate [removed: three] [added: two] times faster than non-mobile data traffic over the same period. |

| | · | | The velocity of spectrum development is expected to remain dynamic as carriers continue to deploy new bands and optimize bands that are currently in service, both of which activities we expect will require carriers to install equipment at new sites and add new equipment at existing sites. For example, recent spectrum auctions and a new network for first responders that is being developed by AT&T for the First Responder Network Authority (“FirstNet”), an independent authority within the Department of Commerce, are expected to contribute to growth in the upcoming years. [added: In addition, the deployment of 5G wireless technologies is expected to increase equipment installation at existing sites.] |

Our primary strategy is to continue to focus on expanding our site leasing [removed: business.][added: business through organic growth and expansion of our tower portfolio to create shareholder value.]

[removed: By focusing on] [added: We believe that the long-term and repetitive nature of the revenue stream of] our site leasing [removed: business, we believe that we can] [added: business will permit us to] maintain a stable, recurring cash flow stream and reduce our exposure to cyclical changes in customer [removed: spending.][added: spending which arises in our site development business.]

[added: | | · | | Maximizing our Tower Capacity.] We [added: generally have constructed or acquired towers that accommodate multiple tenants and a majority of our towers are high capacity tower structures. Most of our towers have significant capacity available for additional antennas, and we believe that increased use of our towers can generate additional lease revenue and be achieved at a low incremental cost. We] measure the available capacity of our existing sites to support additional tenants by assessing several factors, including tower height, tower type, wind loading, environmental conditions, existing equipment on the tower and zoning and permitting regulations in effect in the jurisdiction where the tower is located. [added: We actively market space on our towers through our internal sales force. As of December 31, 2018, we had an average of 1.8 tenants per tower structure. |]

Consequently, we believe that we are able to materially increase our [added: domestic and international] tower portfolio without proportionately increasing selling, general, and administrative expenses.

We [removed: intend to use a portion] [added: believe that one] of [added: the best uses of] our [removed: available] [added: liquidity, including] cash from operating activities and [removed: available liquidity, including] borrowings, [added: is] to [removed: build and/or] acquire [added: and/or build] new towers at prices that we believe will be accretive to our shareholders both in the short and long term and which allow us to maintain our long-term target leverage ratios.

[removed: We] [added: Consequently, we] have purchased and/or entered into perpetual easements or long-term leases for the land that underlies our tower structures and intend to continue to do so, to the extent available at commercially reasonable prices.

As of December 31, [removed: 2017,] [added: 2018,] approximately [removed: 70%] [added: 71%] of our tower structures were located on land that we own or control for more than 20 years and the average remaining life under our ground leases, including renewal options under our control, was [removed: 33] [added: 36] years.

As of December 31, [removed: 2017,] [added: 2018,] approximately [removed: 6.9%] [added: 7.9%] of our tower structures had ground leases maturing in the next 10 years.

We [removed: are seeking] [added: seek] to replicate this operating model internationally.

Organic Growth.

| | · | | Capitalizing on our Scale and Management Experience. We are a large owner, operator and developer of towers, with substantial capital, human, and operating resources. We have been developing towers for wireless service providers in the U.S. since 1989 and owned and operated towers for ourselves since 1997. We believe our size, experience, capabilities, and resources make us a preferred partner for wireless service providers both in the U.S. and internationally. Our management team has extensive experience in site leasing and site development, with some of the longest tenures in the tower and site development industries. We believe that our industry expertise and strong relationships with wireless service providers will permit us to continue to organically grow our site leasing and site development services. |

Systematic Tower Portfolio Growth.

New Build Program – We build new towers domestically and internationally.

We believe that a primary component of a strong site leasing business is the ability to control the underlying land positions.

| --- | --- | --- | --- |

| --- | --- | --- | --- |

| --- | --- | --- | --- |

Our ground leases in Canada, Central America and South America generally have similar terms and

| Algar Celular | Dish | Oi S.A. |

| Cable & Wireless | Freedom Mobile | SouthernLinc |

| Cellular South | Harris Corp. | TIM |

| Claro | ICE | Telefonica |

| --- | --- | --- | --- |

| --- | --- | --- | --- |

relationships with our customers.

is cleared by the FAA.

FCC rules establish presumptively reasonable time periods for state and local authorities to act on applications to collocate a facility or deploy a facility, such as a tower.

However, in August 2018, the FCC issued a declaratory ruling stating that express and de facto moratoria on deployment of telecommunications facilities violate the Communications Act.

Although this FCC ruling is currently the subject of petitions for reconsideration before the FCC and petitions for review before a federal appellate court, it remains in effect.

International Regulations.

Based on our experience to date, these regimes have been similar to, but not more rigorous,

SBA Communications Corporation was incorporated in the State of Florida in March 1997 and began operating in compliance with real estate investment trust (“REIT”) requirements for federal income tax purposes effective January 1, 2016.

Wireless service providers enter into tenant leases with us, each of which relates to the lease or use of space at each individual site.

As of December 31, 2017, we owned 11,930 towers in our international markets.

During 2017, we continued our international expansion with our acquisition of sites in Peru and Argentina, as well as additional sites in existing international markets.

Domestic and International Expansion

In our tower acquisition program, we pursue towers that meet or exceed our internal guidelines regarding current and future potential returns.

The majority of our international markets typically have less mature wireless networks with limited wireline infrastructure and lower wireless data penetration rates than those in the United States.

We consider various factors when identifying a market for our international expansion, including:

For financial information about our operating segments, please see Note 18 of our Consolidated Financial Statements included in this Form 10-K.

The long-term and repetitive nature of the revenue stream of our site leasing business makes it less volatile than our site development business, which is more cyclical.

Maximizing Use of Tower Capacity.

We generally have constructed or acquired towers that accommodate multiple tenants and a majority of our towers are high capacity tower structures.

Most of our towers have significant capacity available for additional antennas, and we believe that increased use of our towers can generate additional lease revenue and be achieved at a low incremental cost.

We actively market space on our towers through our internal sales force.

As of December 31, 2017, we had an average of 1.7 tenants per tower structure.

Disciplined Growth of our Tower Portfolio.

We intend to continue to grow our tower portfolio, domestically and internationally, through tower acquisitions and the construction of new tower structures.

In connection with our international expansion, we have targeted select international markets that we believe have relatively stable political environments and a growing wireless communications industry.

Capitalizing on our Scale and Management Experience.

We are a large owner, operator and developer of towers, with substantial capital, human, and operating resources.

We have been developing towers for wireless service providers in the U.S. since 1989 and owned and operated towers for ourselves since 1997.

We believe our size, experience, capabilities, and resources make us a preferred partner for wireless service providers both in the U.S. and internationally.

Our management team has extensive experience in site leasing and site development, with some of the longest tenures in the tower and site development industries.

We believe that our

industry expertise and strong relationships with wireless service providers will allow us to expand our position as a leading provider of site leasing and site development services.

| Cable & Wireless | Ericsson, Inc. | Oi S.A. |

| Cellular South | ICE | SouthernLinc |

| Claro | NII Holdings | TIM |

| CNT | Nokia, Inc. | Telefonica |

corporate office.

The FAA may condition its issuance of a no-

International.

and other occupational health and safety matters.

SBA Communications Corporation was incorporated in the State of Florida in March 1997.

For the fiscal year ended December 31, [removed: 2017][added: 2018]

Indicate by check mark whether the registrant has submitted electronically [removed: and posted on its corporate Web site, if any,] every Interactive Data File required to be submitted [removed: and posted] pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit [removed: and post] such files).

If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section [added: 13(a) of the Exchange Act.]

The aggregate market value of the voting stock held by non-affiliates of the Registrant was approximately [removed: $16.2] [added: $18.8] billion as of June 30, [removed: 2017.][added: 2018.]

The number of shares outstanding of the Registrant’s common stock (as of February 21, [removed: 2018):] [added: 2019):] Class A common stock — [removed: 116,507,867.][added: 112,589,177.]

Portions of the Registrant’s definitive proxy statement for its [removed: 2018] [added: 2019] annual meeting of shareholders, which proxy statement will be filed no later than 120 days after the close of the Registrant’s fiscal year ended December 31, [removed: 2017,] [added: 2018,] are hereby incorporated by reference in Part III of this Annual Report on Form 10-K.

| ITEM 1A. | [RISK FACTORS](#Item1A) | [removed: 8] [added: 7] |

| ITEM 2. | [PROPERTIES](#Item2) | [removed: 22] [added: 20] |

| ITEM 3. | [LEGAL PROCEEDINGS](#Item3) | [removed: 23] [added: 21] |

| ITEM 4. | [MINE SAFETY DISCLOSURE](#Item4) | [removed: 23] [added: 21] |

| ITEM 5. | [MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES](#Item5) | [removed: 23] [added: 21] |

| ITEM 6. | [SELECTED FINANCIAL DATA](#Item6) | [removed: 25] [added: 23] |

| ITEM 7. | [MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#Item7) | [removed: 27] [added: 24] |

| ITEM 7A. | [QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#Item7A) | [removed: 54] [added: 48] |

| ITEM 8. | [FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA](#Item8) | [removed: 57] [added: 51] |

| ITEM 9. | [CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE](#Item9) | [removed: 58] [added: 52] |

| ITEM 9A. | [CONTROLS AND PROCEDURES](#Item9A) | [removed: 58] [added: 52] |

| ITEM 10. | [DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE](#Item10) | [removed: 60] [added: 54] |

| ITEM 11. | [EXECUTIVE COMPENSATION](#Item11) | [removed: 60] [added: 54] |

| ITEM 12. | [SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS](#Item12) | [removed: 60] [added: 54] |

| ITEM 13. | [CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE](#Item13) | [removed: 60] [added: 55] |

| ITEM 14. | [PRINCIPAL ACCOUNTING FEES AND SERVICES](#Item14) | [removed: 60] [added: 55] |

| ITEM 15. | [EXHIBITS, FINANCIAL STATEMENT SCHEDULES](#Item15) | [removed: 60] [added: 55] |

| ITEM 16. | [FORM 10-K SUMMARY](#Item16) | [removed: 66] [added: 60] |

| [SIGNATURES](#Signatures) | | [removed: 67] [added: 61] |

10-K 1 sbac-20181231x10k.htm 10-K

10-K 1 sbac-20171231x10k.htm 10-K

As of December 31, [removed: 2017,] [added: 2018,] approximately [removed: 70%] [added: 71%] of our tower structures were located on parcels of land that we own, land subject to perpetual easements, or parcels of land that have an interest that extends beyond 20 years.

The average remaining life under our ground leases, including [removed: renewal options under our control, is 33 years.]

Ground leases are generally for an initial term of five years or more with [removed: five or more additional automatic] [added: multiple 5-year] renewal [removed: periods of five years,] [added: periods,] for a total of thirty years or more.

As of December 31, [removed: 2017,] [added: 2018,] we had an average of [removed: 1.7] [added: 1.8] tenants per tower structure.

renewal options under our control, is 36 years.

As of February 21, [removed: 2018,] [added: 2019,] there were [removed: 67] [added: 234] record holders of our Class A common stock.

As of December 31, [removed: 2017, $956.7] [added: 2018, $755.4] million of the federal NOLs are attributes of the REIT.

The following table presents information related to our repurchases of Class A common stock during the fourth quarter of [removed: 2017:][added: 2018:]

| | (1) | | On February 16, 2018, our Board of Directors authorized a [removed: new] [added: $1.0 billion] stock repurchase plan, replacing the plan authorized on January 12, [removed: 2017 which had a remaining authorization of $150.0 million.] [added: 2017.] This plan authorizes us to purchase, from time to time, up to $1.0 billion of our outstanding Class A common stock through open market repurchases in compliance with Rule 10b-18 under the Exchange Act, and/or in privately negotiated transactions at management’s discretion based on market and business conditions, applicable legal [removed: requirements] [added: requirements,] and other factors. Shares repurchased will be retired. [removed: The new] [added: This] plan has no time deadline and will continue until otherwise modified or terminated by our Board of Directors at any time in its sole discretion. |

| 10/1/2018 - 10/31/2018 | | 936,981 | | $ | 151.55 | | 936,981 | | $ | 404,518,419 |

| 11/1/2018 - 11/30/2018 | | — | | $ | — | | — | | $ | 404,518,419 |

| 12/1/2018 - 12/31/2018 | | 1,226,357 | | $ | 163.08 | | 1,226,357 | | $ | 204,518,536 |

| Total | | 2,163,338 | | $ | 158.09 | | 2,163,338 | | $ | 204,518,536 |

The following table presents the high and low sales price for our Class A common stock for the periods indicated:

| | | | | | | |

| --- | --- | --- | --- | --- | --- | --- |

| | | | | | | |

| | | | High | | | Low |

| Quarter ended December 31, 2017 | | $ | 173.97 | | $ | 142.31 |

| Quarter ended September 30, 2017 | | $ | 154.71 | | $ | 133.27 |

| Quarter ended June 30, 2017 | | $ | 140.38 | | $ | 118.59 |

| Quarter ended March 31, 2017 | | $ | 120.51 | | $ | 102.06 |

| | | | | | | |

| Quarter ended December 31, 2016 | | $ | 116.27 | | $ | 95.66 |

| Quarter ended September 30, 2016 | | $ | 118.57 | | $ | 107.36 |

| Quarter ended June 30, 2016 | | $ | 108.30 | | $ | 96.68 |

| Quarter ended March 31, 2016 | | $ | 107.44 | | $ | 82.80 |

| 10/1/2017 - 10/31/2017 | | 754,955 | | $ | 147.19 | | 754,955 | | $ | 350,002,722 |

| 11/1/2017 - 11/30/2017 | | 1,187,788 | | $ | 168.38 | | 1,187,788 | | $ | 150,002,829 |

| 12/1/2017 - 12/31/2017 | | — | | $ | — | | — | | $ | 150,002,829 |

| Total | | 1,942,743 | | $ | 160.15 | | 1,942,743 | | $ | 150,002,829 |

The following table sets forth selected historical financial data as of and for each of the five years in the period ended December 31, [removed: 2017.][added: 2018.]

The financial data for the fiscal years ended [added: 2018,] 2017, 2016, 2015, [removed: 2014,] and [removed: 2013] [added: 2014] have been derived from our audited consolidated financial statements.

| | | [added: 2018 | | |] 2017 | | | 2016 | | | 2015 | | | 2014 | | [removed: | 2013 | |]

| Site leasing | | $ | [removed: 1,623,173] [added: 1,740,434] | | $ | [removed: 1,538,070] [added: 1,623,173] | | $ | [removed: 1,480,634] [added: 1,538,070] | | $ | [removed: 1,360,202] [added: 1,480,634] | | $ | [removed: 1,133,013] [added: 1,360,202] |

| Site development | | | [added: 125,261 | | |] 104,501 | | | 95,055 | | | 157,840 | | | 166,794 | [removed: | | 171,853 |]

| Total revenues | | | [added: 1,865,695 | | |] 1,727,674 | | | 1,633,125 | | | 1,638,474 | | | 1,526,996 | [removed: | | 1,304,866 |]

| Cost of site leasing | | | [added: 372,296 | | |] 359,527 | | | 342,215 | | | 324,655 | | | 301,313 | [removed: | | 270,772 |]

| Cost of site development | | | [added: 96,499 | | |] 86,785 | | | 78,682 | | | 119,744 | | | 127,172 | [removed: | | 137,481 |]

| Selling, general, and administrative | | | [added: 142,526 | | |] 130,697 | | | 143,349 | | | 114,951 | | | 103,317 | [removed: | | 85,476 |]

| Acquisition related adjustments and expenses | | | [added: 10,961 | | |] 12,367 | | | 13,140 | | | 11,864 | | | 7,798 | [removed: | | 19,198 |]

| Asset impairment and decommission costs | | | [added: 27,134 | | |] 36,697 | | | 30,242 | | | 94,783 | | | 23,801 | [removed: | | 28,960 |]

| Depreciation, accretion, and amortization | | | [added: 672,113 | | |] 643,100 | | | 638,189 | | | 660,021 | | | 627,072 | [removed: | | 533,334 |]

| Total operating expenses | | | [added: 1,321,529 | | |] 1,269,173 | | | 1,245,817 | | | 1,326,018 | | | 1,190,473 | [removed: | | 1,075,221 |]

| Operating income | | | [added: 544,166 | | |] 458,501 | | | 387,308 | | | 312,456 | | | 336,523 | [removed: | | 229,645 |]

| Interest income | | | [added: 6,731 | | |] 11,337 | | | 10,928 | | | 3,894 | | | 677 | [removed: | | 1,794 |]

| Interest expense | | | [added: (376,217) | | |] (323,749) | | | (329,171) | | | (322,366) | | | (292,600) | [removed: | | (249,051) |]

| Non-cash interest expense | | | [added: (2,640) | | |] (2,879) | | | (2,203) | | | (1,505) | | | (27,112) | [removed: | | (49,085) |]

| Amortization of deferred financing fees | | | [added: (20,289) | | |] (21,940) | | | (21,136) | | | (19,154) | | | (17,572) | [removed: | | (15,560) |]

| Loss from extinguishment of debt, net | | | [added: (14,443) | | |] (1,961) | | | (52,701) | | | (783) | | | (26,204) | [removed: | | (6,099) |]

| Other [removed: income] (expense) [added: income, net] | | | [added: (85,624) | | |] (2,418) | | | 94,278 | | | (139,137) | | | 10,628 | [removed: | | 31,138 |]

| Total other expense | | | [added: (492,482) | | |] (341,610) | | | (300,005) | | | (479,051) | | | (352,183) | [removed: | | (286,863) |]

| Income (loss) before provision for income taxes | | | [added: 51,684 | | |] 116,891 | | | 87,303 | | | (166,595) | | | (15,660) | [removed: | | (57,218) |]

| [removed: (Provision) benefit] [added: Provision] for income taxes | | | [added: (4,233) | | |] (13,237) | | | (11,065) | | | (9,061) | | | (8,635) | [removed: | | 1,309 |]

| Net income (loss) | | $ | [removed: 103,654] [added: 47,451] | | $ | [removed: 76,238] [added: 103,654] | | $ | [removed: (175,656)] [added: 76,238] | | $ | [removed: (24,295)] [added: (175,656)] | | $ | [removed: (55,909)] [added: (24,295)] |

| Basic net income (loss) per common share | | $ | [removed: 0.86] [added: 0.41] | | $ | [removed: 0.61] [added: 0.86] | | $ | [removed: (1.37)] [added: 0.61] | | $ | [removed: (0.19)] [added: (1.37)] | | $ | [removed: (0.44)] [added: (0.19)] |

| Diluted net income (loss) per common share | | $ | [removed: 0.86] [added: 0.41] | | $ | [removed: 0.61] [added: 0.86] | | $ | [removed: (1.37)] [added: 0.61] | | $ | [removed: (0.19)] [added: (1.37)] | | $ | [removed: (0.44)] [added: (0.19)] |

| Basic | | | [added: 114,909 | | |] 119,860 | | | 124,448 | | | 127,794 | | | 128,919 | [removed: | | 127,769 |]

| Diluted | | | [added: 116,515 | | |] 121,022 | | | 125,144 | | | 127,794 | | | 128,919 | [removed: | | 127,769 |]

| | | [added: 2018 | | |] 2017 | | | 2016 | | | 2015 | | | 2014 | | [removed: | 2013 | |]

| [added: Balance Sheet Data] | | (audited) (in thousands) | | | | | | | | | | | | | |

| Cash and cash equivalents | | $ | [removed: 68,783] [added: 143,444] | | $ | [removed: 146,109] [added: 68,783] | | $ | [removed: 118,039] [added: 146,109] | | $ | [removed: 39,443] [added: 118,039] | | $ | [removed: 122,112] [added: 39,443] |

| Restricted cash - current | | | [added: 32,464 | | |] 32,924 | | | 36,786 | | | 25,353 | | | 52,519 | [removed: | | 47,305 |]

| Property and equipment, net | | | [added: 2,786,355 | | |] 2,812,346 | | | 2,792,076 | | | 2,782,353 | | | 2,762,417 | [removed: | | 2,578,444 |]

| Intangibles, net | | | [added: 3,331,465 | | |] 3,598,131 | | | 3,656,924 | | | 3,735,413 | | | 4,189,540 | [removed: | | 3,387,198 |]

| Total assets | | | [added: 7,213,707 | | |] 7,320,205 | | | 7,360,945 | | | 7,312,980 | | | 7,748,635 | [removed: | | 6,714,025 |]

| Total debt | | | [added: 9,938,553 | | |] 9,310,686 | | | 8,775,583 | | | 8,452,070 | | | 7,768,309 | [removed: | | 5,807,444 |]

| Total shareholders' [removed: (deficit) equity] [added: deficit] | | | [added: (3,376,823) | | |] (2,599,114) | | | (1,995,921) | | | (1,706,144) | | | (660,801) | [removed: | | 356,966 |]

| | | [added: 2018 | | |] 2017 | | | 2016 | | | 2015 | | | 2014 | | [removed: | 2013 | |]

| Operating activities | | $ | [removed: 818,470] [added: 850,618] | | $ | [removed: 742,525] [added: 818,470] | | $ | [removed: 723,030] [added: 742,525] | | $ | [removed: 674,340] [added: 723,030] | | $ | [removed: 509,852] [added: 674,340] |

| Investing activities | | | [added: (618,347) | | |] (605,107) | | | (428,235) | | | (737,065) | | | (1,764,127) | [removed: | | (820,197) |]

| | | | | | | | | | | | | | | | |

| Balance Sheet Data | | | | | | | | | | | | | | | |

Financial statements and supplementary data are on pages F-1 through [removed: F-40.][added: F-43.]

In connection with the preparation of this Annual Report on Form 10-K, as of December 31, [removed: 2017,] [added: 2018,] an evaluation was performed under the supervision and with the participation of our management, including the CEO and CFO, of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act).

Based on such evaluation, our CEO and CFO concluded that, as of December 31, [removed: 2017,] [added: 2018,] our disclosure controls and procedures were effective.

There has been no change in our internal control over financial reporting during the quarter ended December 31, [removed: 2017] [added: 2018] that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Management’s Annual Report on Internal Control over Financial Reporting – Management is responsible for establishing and maintaining adequate internal control over financial reporting, and for performing an assessment of the effectiveness of internal control over financial reporting as of December 31, [removed: 2017.][added: 2018.]

Our system of internal control over financial reporting includes those policies and procedures that [removed: (i)] [added: (1)] pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of SBAC; [removed: (ii)] [added: (2)] provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of SBAC are being made only in accordance with authorizations of management and directors of SBAC; and [removed: (iii)] [added: (3)] provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of SBAC’s assets that could have a material effect on the financial statements.

Management performed an assessment of the effectiveness of SBAC’s internal control over financial reporting as of December 31, [removed: 2017] [added: 2018] based upon criteria in Internal Control – Integrated Framework (2013 Framework) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

Based on our assessment, management determined that SBAC’s internal control over financial reporting was effective as of December 31, [removed: 2017] [added: 2018] based on the criteria in Internal Control – Integrated Framework (2013 Framework) issued by COSO.

Report of Independent Registered [removed: Certified] Public Accounting Firm

We have audited SBA Communications Corporation and Subsidiaries’ internal control over financial reporting as of December 31, [removed: 2017,] [added: 2018,] based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria).

In our opinion, SBA Communications Corporation and Subsidiaries’ (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, [removed: 2017,] [added: 2018,] based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United [removed: States),] [added: States) (PCAOB),] the consolidated balance sheets of the Company as of December 31, [removed: 2017] [added: 2018] and [removed: 2016] [added: 2017] and the related consolidated statements of operations, comprehensive income (loss), shareholders’ deficit, and cash flows for each of the three years in the period ended December 31, [removed: 2017,] [added: 2018,] and the related notes and financial statement schedule listed in the Index at Item 15(a) of the Company and our report dated [removed: March 1, 2018] [added: February 28, 2019] expressed an unqualified opinion thereon.

February 28, 2019

March 1, 2018

The Code of Ethics is located on our internet web site at www.sbasite.com under [removed: “Investor Relations] [added: “Investors] – [removed: Corporate] Governance – Governance Documents.” We intend to provide disclosure of any amendments or waivers of our Code of Ethics on our website within four business days following the date of the amendment or waiver.

The remaining items required by Part III, Item 10 are incorporated herein by reference from the Registrant’s Proxy Statement for its [removed: 2018] [added: 2019] Annual Meeting of Shareholders to be filed on or before April [removed: 29, 2018.][added: 30, 2019.]

The items required by Part III, Item 11 are incorporated herein by reference from the Registrant’s Proxy Statement for its [removed: 2018] [added: 2019] Annual Meeting of Shareholders to be filed on or before April [removed: 29, 2018.][added: 30, 2019.]

The items required by Part III, Item [removed: 12] [added: 12, other than the information regarding the Registrant’s equity plans set forth below required by Item 201(d) of Regulation S-K,] are incorporated herein by reference from the Registrant’s Proxy Statement for its [removed: 2018] [added: 2019] Annual Meeting of Shareholders to be filed on or before April [removed: 29, 2018.][added: 30, 2019.]

Equity Compensation Plan

The following table summarizes information with respect to the Registrant’s compensation plans under which the Registrant’s equity securities are authorized for issuance as of December 31, 2018:

| | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | | | |

| | | Equity Compensation Plan Information | | | | | | |

| | | As of December 31, 2018 | | | | | | |

| | | (in thousands, except exercise price) | | | | | | |

| | | | | | | | | Number of Securities |

| | | Number of Securities | | | Weighted Average | | | Remaining Available for |

| | | to be Issued | | | Exercise Price | | | Future Issuance Under |

| | | Upon Exercise of | | | of Outstanding | | | Equity Compensation Plans |

| | | Outstanding Options, | | | Options, Warrants | | | (Excluding Securities |

| | | Warrants and Rights | | | and Rights | | | Reflected in first column (a)) |

| | | (a) | | | | (b) | | (c) |

| Equity compensation plans approved by | | | | | | | | |

| security holders | | | | | | | | |

| 2010 Plan | | 5,140 | (1) | | $ | 107.29 | | 6,517 |

| Equity compensation plans not approved by | | | | | | | | |

| security holders | | — | | | | | | — |

| Total | | 5,140 | | | $ | 107.29 | | 6,517 |

| | (1) | | Included in the number of securities in column (a) is 322,784 restricted stock units, which have no exercise price. The weighted average exercise price of outstanding options, warrants, and rights (excluding restricted stock units) is $114.48. |

| --- | --- | --- | --- |

The items required by Part III, Item 13 are incorporated herein by reference from the Registrant’s Proxy Statement for its [removed: 2018] [added: 2019] Annual Meeting of Shareholders to be filed on or before April [removed: 29, 2018.][added: 30, 2019.]

The items required by Part III, Item 14 are incorporated herein by reference from the Registrant’s Proxy Statement for its [removed: 2018] [added: 2019] Annual Meeting of Shareholders to be filed on or before April [removed: 29, 2018.][added: 30, 2019.]

| | | | | | | | | | | | | [added: Gross] | | | | | | | | | | | | | Life on Which |

| | | | | | | | | | Cost | | | [added: Amount] | | | | Accumulated | | | | | | | | | Depreciation |

| | | | | | | | | | Capitalized | | | [removed: Gross Amount] [added: Carried] | | | | Depreciation | | | | | | | | | in Latest |

| | | | | | | Initial | | | Subsequent | | | [removed: Carried] at Close | | | | at Close | | | | | | | | | Income |

| | (2) | | As of December 31, [removed: 2017,] [added: 2018,] certain assets secure debt of [removed: $6.8] [added: $7.4] billion. |

| | | | | | | | | | | | | | | | | | | [removed: 2017] [added: 2018] | | | [removed: 2016] [added: 2017] | | | [removed: 2015] [added: 2016] | |

| Gross amount at beginning | | | | | | | | | | | | | | | | | | $ | [removed: 5,079,660] [added: 5,340,858] | | $ | [removed: 4,839,874] [added: 5,079,660] | | $ | [removed: 4,577,296] [added: 4,839,874] |

| Acquisitions (1) | | | | | | | | | | | | | | | | | | | [removed: 112,979] [added: 131,686] | | | [removed: 72,456] [added: 112,979] | | | [removed: 203,441] [added: 72,456] |

| Construction and related costs on new builds | | | | | | | | | | | | | | | | | | | [removed: 70,361] [added: 54,237] | | | [removed: 58,143] [added: 70,361] | | | [removed: 87,088] [added: 58,143] |

| Augmentation and tower upgrades | | | | | | | | | | | | | | | | | | | [removed: 43,288] [added: 49,201] | | | [removed: 37,861] [added: 43,288] | | | [removed: 52,146] [added: 37,861] |

| Land buyouts and other assets | | | | | | | | | | | | | | | | | | | [removed: 41,657] [added: 37,032] | | | [removed: 44,574] [added: 41,657] | | | [removed: 47,148] [added: 44,574] |

| Tower maintenance | | | | | | | | | | | | | | | | | | | [removed: 29,391] [added: 30,048] | | | [removed: 28,257] [added: 29,391] | | | [removed: 27,123] [added: 28,257] |

| Other (2) | | | | | | | | | | | | | | | | | | | — | | | [removed: 45,829] [added: —] | | | [removed: —] [added: 45,829] |

| Total additions | | | | | | | | | | | | | | | | | | | [removed: 297,676] [added: 302,204] | | | [removed: 287,120] [added: 297,676] | | | [removed: 416,946] [added: 287,120] |

| Cost of real estate sold or disposed | | | | | | | | | | | | | | | | | | | [removed: (1,027)] [added: (1,083)] | | | [removed: (12,842)] [added: (1,027)] | | | [removed: (26,506)] [added: (12,842)] |

| Other (2) | | | | | | | | | | | | | | | | | | | [removed: (1,350)] [added: (63,844)] | | | [removed: —] [added: (1,350)] | | | [removed: (93,489)] [added: —] |

| Balance at end | | | | | | | | | | | | | | | | | | $ | [removed: 5,340,858] [added: 5,561,005] | | $ | [removed: 5,079,660] [added: 5,340,858] | | $ | [removed: 4,839,874] [added: 5,079,660] |

| | | | | | | | | | | | | | | | | | | [removed: 2017] [added: 2018] | | | [removed: 2016] [added: 2017] | | | [removed: 2015] [added: 2016] | |

| Gross amount of accumulated depreciation at beginning | | | | | | | | | | | | | | | | | | $ | [removed: (2,396,587)] [added: (2,627,841)] | | $ | [removed: (2,160,530)] [added: (2,396,587)] | | $ | [removed: (1,912,906)] [added: (2,160,530)] |

| Depreciation | | | | | | | | | | | | | | | | | | | [removed: (248,818)] [added: (257,469)] | | | [removed: (254,982)] [added: (248,818)] | | | [removed: (282,831)] [added: (254,982)] |

| Other [removed: (2)] [added: (1)] | | | | | | | | | | | | | | | | | | | [removed: —] [added: (25)] | | | [removed: (5,557)] [added: —] | | | [removed: —] [added: (5,557)] |

| Total additions | | | | | | | | | | | | | | | | | | | [removed: (248,818)] [added: (257,494)] | | | [removed: (260,539)] [added: (248,818)] | | | [removed: (282,831)] [added: (260,539)] |

| Amount of accumulated depreciation for assets sold or disposed | | | | | | | | | | | | | | | | | | | [removed: 17,051] [added: 4,392] | | | [removed: 24,483] [added: 17,051] | | | [removed: 25,909] [added: 24,482] |

| Other [removed: (2)] [added: (1)] | | | | | | | | | | | | | | | | | | | [removed: 513] [added: 12,436] | | | [removed: —] [added: 513] | | | [removed: 9,298] [added: —] |

| Total deductions | | | | | | | | | | | | | | | | | | | [removed: 17,564] [added: 16,828] | | | [removed: 24,483] [added: 17,564] | | | [removed: 35,207] [added: 24,482] |

| Balance at end | | | | | | | | | | | | | | | | | | $ | [removed: (2,627,841)] [added: (2,868,507)] | | $ | [removed: (2,396,587)] [added: (2,627,841)] | | $ | [removed: (2,160,530)] [added: (2,396,587)] |

[removed: | |] (3) [removed: | |] Exhibits [removed: |]

| 4.15A | | [Form of Senior [removed: Indenture.](http://www.sec.gov/Archives/edgar/data/1034054/000119312515075315/d883871dex415a.htm)] [added: Indenture.](http://www.sec.gov/Archives/edgar/data/1034054/000119312518070600/d518987ds3asr.htm)] | | S-3ASR [removed: (333-202477)] [added: (333-223449)] | | [removed: 03/03/15] [added: 03/05/18] |

| 4.16A | | [Form of Subordinated [removed: Indenture.](http://www.sec.gov/Archives/edgar/data/1034054/000119312515075315/d883871dex416a.htm)] [added: Indenture.](http://www.sec.gov/Archives/edgar/data/1034054/000119312518070600/d518987ds3asr.htm)] | | S-3ASR [removed: (333-202477)] [added: (333-223449)] | | [removed: 03/03/15] [added: 03/05/18] |

| 10.35H | | [Amendment to Employment Agreement, effective as of August 15, 2017, between SBA Communications Corporation and Jeffrey A. [removed: Stoops.†*](https://www.sec.gov/Archives/edgar/data/1034054/000103405418000003/sbac-20171231xex10_35h.htm)] [added: Stoops.†*](http://www.sec.gov/Archives/edgar/data/1034054/000103405418000003/sbac-20171231xex10_35h.htm)] | | [added: 10-K] | | [added: Year ended December 31, 2017] |

| [removed: 10.57D] [added: 10.57F] | | [Amended and Restated Employment Agreement, dated as of [removed: December 7, 2015,] [added: October 1, 2018,] between SBA Communications Corporation and Kurt L. [removed: Bagwell.†](http://www.sec.gov/Archives/edgar/data/1034054/000103405416000018/sbac-20151231ex1057dab82.htm)] [added: Bagwell.†*](https://www.sec.gov/Archives/edgar/data/1034054/000103405419000002/sbac-20181231xex10_57f.htm)] | | [removed: 10-K] | | [removed: Year ended December 31, 2015] |

| [removed: 10.57E] [added: 10.58F] | | [removed: [Amendment to Amended] [added: [Amended] and Restated Employment Agreement, [removed: effective] [added: dated] as of [removed: December 7, 2015,] [added: October 1, 2018,] between SBA Communications Corporation and [removed: Kurt L. Bagwell.†*](https://www.sec.gov/Archives/edgar/data/1034054/000103405418000003/sbac-20171231xex10_57e.htm)] [added: Thomas P. Hunt.†*](https://www.sec.gov/Archives/edgar/data/1034054/000103405419000002/sbac-20181231xex10_58f.htm)] | | | | |

| [removed: 10.58D] [added: 10.85E] | | [Amended and Restated Employment Agreement, dated as of [removed: December 7, 2015,] [added: October 1, 2018,] between SBA Communications Corporation and [removed: Thomas P. Hunt.†](http://www.sec.gov/Archives/edgar/data/1034054/000103405416000018/sbac-20151231ex1058da38e.htm)] [added: Brendan T. Cavanagh.†*](https://www.sec.gov/Archives/edgar/data/1034054/000103405419000002/sbac-20181231xex10_85e.htm)] | | [removed: 10-K] | | [removed: Year ended December 31, 2015] |

| [removed: 10.60] [added: 10.50A] | | [Joinder and Amendment to Management Agreement, dated November 6, 2006, by and among SBA Properties, Inc., SBA Towers, Inc., SBA Puerto Rico, Inc., SBA Sites, Inc., SBA Towers USVI, Inc., and SBA Structures, Inc., and SBA Network Management, Inc., and SBA Senior Finance, Inc.](http://www.sec.gov/Archives/edgar/data/1034054/000119312507043928/dex1060.htm) | | 10-K | | Year ended December 31, [removed: 2006] [added: 2016] |

| 21 | | [removed: [Subsidiaries.*](https://www.sec.gov/Archives/edgar/data/1034054/000103405418000003/sbac-20171231xex21.htm)] [added: [Subsidiaries.*](https://www.sec.gov/Archives/edgar/data/1034054/000103405419000002/sbac-20181231xex21.htm)] | | | | |

| 23.1 | | [Consent of Ernst & Young [removed: LLP.*](https://www.sec.gov/Archives/edgar/data/1034054/000103405418000003/sbac-20171231xex23_1.htm)] [added: LLP.*](https://www.sec.gov/Archives/edgar/data/1034054/000103405419000002/sbac-20181231xex23_1.htm)] | | | | |

| 31.1 | | [Certification by Jeffrey A. Stoops, Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of [removed: 2002.*](https://www.sec.gov/Archives/edgar/data/1034054/000103405418000003/sbac-20171231xex31_1.htm)] [added: 2002.*](https://www.sec.gov/Archives/edgar/data/1034054/000103405419000002/sbac-20181231xex31_1.htm)] | | | | |

| 31.2 | | [Certification by Brendan T. Cavanagh, Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of [removed: 2002.*](https://www.sec.gov/Archives/edgar/data/1034054/000103405418000003/sbac-20171231xex31_2.htm)] [added: 2002.*](https://www.sec.gov/Archives/edgar/data/1034054/000103405419000002/sbac-20181231xex31_2.htm)] | | | | |

| 32.1 | | [Certification by Jeffrey A. Stoops, Chief Executive Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. [removed: ](https://www.sec.gov/Archives/edgar/data/1034054/000103405418000003/sbac-20171231xex32_1.htm)] [added: ](https://www.sec.gov/Archives/edgar/data/1034054/000103405419000002/sbac-20181231xex32_1.htm)] | | | | |

| 32.2 | | [Certification by Brendan T. Cavanagh, Chief Financial Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. [removed: ](https://www.sec.gov/Archives/edgar/data/1034054/000103405418000003/sbac-20171231xex32_2.htm)] [added: ](https://www.sec.gov/Archives/edgar/data/1034054/000103405419000002/sbac-20181231xex32_2.htm)] | | | | |

| 29,578 sites | (1) | $ | 7,428,000 | (2) | | (3) | | | (3) | | $ | 5,561,005 | (4) | | $ | (2,868,507) | | | Various | | | Various | | | Up to 20 years |

| Impairment | | | | | | | | | | | | | | | | | | | (17,130) | | | (34,101) | | | (34,492) |

| Total deductions | | | | | | | | | | | | | | | | | | | (82,057) | | | (36,478) | | | (47,334) |

| | (1) | | Primarily represents cumulative translation adjustments related to changes in foreign currency exchange rates. |

| 10.7B | | [2018 Refinancing Amendment, dated as of April 11, 2018, among SBA Senior Finance II LLC, as borrower, the banks and other financial institutions or entities party hereto as refinancing revolving lenders, continuing term lenders, additional term lenders or incremental amended term lenders and Toronto Dominion (Texas) LLC, as administrative agent and issuing lender.](http://www.sec.gov/Archives/edgar/data/1034054/000119312518114546/d570372dex1090.htm) | | 8-K | | 04/11/18 |

| 10.12D | | [Fourth Loan and Security Agreement Supplement, dated as of March 9, 2018, by and among the Borrowers named therein and Midland Loan Services, a division of PNC Bank, National Association, as Servicer on behalf of Deutsche Bank Trust Company Americas, as Trustee.](http://www.sec.gov/Archives/edgar/data/1034054/000119312518084090/d552405dex1012d.htm) | | 8-K | | 03/15/18 |

| 10.75B | | [SBA Communications Corporation 2018 Employee Stock Purchase Plan.†](http://www.sec.gov/Archives/edgar/data/1034054/000119312518172050/d583496dex1075b.htm) | | S-8 (333-225139) | | 05/23/18 |

| 10.91 | | [Form of Incentive Stock Option Agreement (U.S. and non-U.S. employees and officers) pursuant to SBA Communications Corporation 2010 Performance and Equity Incentive Plan, as amended and restated.†](http://www.sec.gov/Archives/edgar/data/1034054/000103405418000018/sbac-20180930xex10_91.htm) | | 10-Q | | Quarter ended September 30, 2018 |

| 10.92 | | [Form of Restricted Stock Unit Agreement (U.S. and non-U.S. employees and officers) pursuant to SBA Communications Corporation 2010 Performance and Equity Incentive Plan, as amended and restated.†](http://www.sec.gov/Archives/edgar/data/1034054/000103405418000018/sbac-20180930xex10_92.htm) | | 10-Q | | Quarter ended September 30, 2018 |

| 27,909 sites (1) | | $ | 6,805,000 | (2) | | (3) | | | (3) | | $ | 5,340,858 | (4) | | $ | (2,627,841) | | | Various | | | Various | | | Up to 20 years |

| Impairment | | | | | | | | | | | | | | | | | | | (34,102) | | | (34,491) | | | (34,373) |

| Total deductions: | | | | | | | | | | | | | | | | | | | (36,479) | | | (47,334) | | | (154,368) |

| --- | --- | --- | --- | --- | --- | --- |

| 10.3 | | [2015 Revolving Refinancing Amendment, dated as of February 5, 2015, among SBA Senior Finance II, as borrower, the several lenders from time to time parties thereto, and Toronto Dominion (Texas) LLC, as administrative agent.](http://www.sec.gov/Archives/edgar/data/1034054/000103405415000004/sbac-20141231ex103a3a692.htm) | | 10-K | | Year ended December 31, 2014 |

| 10.4 | | [Purchase Agreement, dated April 4, 2013, among SBA Senior Finance, LLC, Deutsche Bank Trust Company Americas, as trustee, and the several initial purchasers listed on Schedule I thereto.](http://www.sec.gov/Archives/edgar/data/1034054/000119312513167677/d526073dex104.htm) | | 8-K | | 04/23/13 |

| 10.5 | | [Incremental Term Loan B-2 Amendment, dated as of June 10, 2015, among SBA Senior Finance II LLC, as borrower, the several lenders from time to time parties thereto, and Toronto Dominion (Texas) LLC, as administrative agent.](http://www.sec.gov/Archives/edgar/data/1034054/000103405415000012/sbac-20150630ex10540e3f4.htm) | | 10-Q | | Quarter ended June 30, 2015 |

| 10.6 | | [Purchase Agreement, dated October 6, 2015, among SBA Senior Finance, LLC, Deutsche Bank Trust Company Americas, as trustee, and the several initial purchasers listed on Schedule I thereto.](http://www.sec.gov/Archives/edgar/data/1034054/000119312515341475/d49488dex106.htm) | | 8-K | | 10/09/15 |

| 10.7 | | [Second Amended and Restated Credit Agreement, dated as of February 7, 2014, among SBA Senior Finance II LLC, as borrower, the several lenders from time to time parties thereto, Citigroup Global Capital Markets Inc. and Barclays Bank PLC, as incremental tranche B-1 term loan joint lead arrangers and syndication agents, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, TD Securities (USA) LLC, The Royal Bank of Scotland plc and Wells Fargo Securities, LLC, as co-incremental Tranche B-1 term loan documentation agents, and Toronto Dominion (Texas) LLC, as administrative agent.](http://www.sec.gov/Archives/edgar/data/1034054/000119312514051444/d674966dex107.htm) | | 8-K | | 02/13/14 |

| 10.7A | | [Seventh Amendment, dated as of January 20, 2017, among SBA Senior Finance II LLC, as borrower, the lenders parties thereto, and Toronto Dominion (Texas) LLC, as administrative agent.](http://www.sec.gov/Archives/edgar/data/1034054/000103405417000003/sbac-20161231xex10_7a.htm) | | 10-K | | Year ended December 31, 2016 |

| 10.11 | | [Purchase Agreement, dated October 7, 2014, among SBA Senior Finance, LLC, Deutsche Bank Trust Company, as trustee, and several initial purchasers listed on Schedule I thereto.](http://www.sec.gov/Archives/edgar/data/1034054/000119312514369230/d803600dex1011.htm) | | 8-K | | 10/10/14 |

| 10.13 | | [Purchase Agreement, dated June 21, 2016, among SBA Senior Finance, LLC, Deutsche Bank Trust Company Americas, as trustee, and the several initial purchasers listed on Schedule I thereto.](http://www.sec.gov/Archives/edgar/data/1034054/000119312516631688/d215179dex1013.htm) | | 8-K | | 06/24/16 |

| 10.14 | | [Purchase Agreement, dated August 1, 2016, between SBA Communications Corporation and Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC, as representatives of the several initial purchasers listed on Schedule 1 thereto.](http://www.sec.gov/Archives/edgar/data/1034054/000119312516668668/d219832dex1014.htm) | | 8-K | | 08/02/16 |

| 10.15 | | [Registration Rights Agreement, dated August 15, 2016, among SBA Communications Corporation and the several initial purchasers listed on Schedule I thereto (incorporated by reference to Exhibit 10.16 to the Form 8-K filed on August 16, 2016).](http://www.sec.gov/Archives/edgar/data/1034054/000119312516683231/d246365dex1016.htm) | | 8-K | | 08/16/16 |

| 10.33 | | [2001 Equity Participation Plan as Amended and Restated on May 16, 2002.†](http://www.sec.gov/Archives/edgar/data/1034054/000102140802005354/ddef14a.htm) | | DEF 14A | | 04/16/02 |

| 10.58E | | [Amendment to Amended and Restated Employment Agreement, effective as of December 7, 2015, between SBA Communications Corporation and Thomas P. Hunt.†*](https://www.sec.gov/Archives/edgar/data/1034054/000103405418000003/sbac-20171231xex10_58e.htm) | | | | |

| 10.75A | | [SBA Communications Corporation 2008 Employee Stock Purchase Plan, as amended on May 4, 2011.†](http://www.sec.gov/Archives/edgar/data/1034054/000119312511211834/dex1075a.htm) | | 10-Q | | Quarter ended June 30, 2011 |

| 10.85C | | [Amended and Restated Employment Agreement, dated as of December 7, 2015, between SBA Communications Corporation and Brendan T. Cavanagh.†](http://www.sec.gov/Archives/edgar/data/1034054/000103405416000018/sbac-20151231ex1085c38d3.htm) | | 10-K | | Year ended December 31, 2015 |

| 10.85D | | [Amendment to Amended and Restated Employment Agreement, effective as of December 7, 2015, between SBA Communications Corporation and Brendan T. Cavanagh.†*](https://www.sec.gov/Archives/edgar/data/1034054/000103405418000003/sbac-20171231xex10_85d.htm) | | | | |

| /s/ Steven E. Bernstein | Chairman of the Board of Directors | [removed: March 1, 2018] [added: February 28, 2019] |

| /s/ Jeffrey A. Stoops | Chief Executive Officer and President | [removed: March 1, 2018] [added: February 28, 2019] |

| /s/ Brendan T. Cavanagh | Chief Financial Officer and Executive Vice President | [removed: March 1, 2018] [added: February 28, 2019] |

| /s/ Brian D. Lazarus | Chief Accounting Officer and Senior Vice President | [removed: March 1, 2018] [added: February 28, 2019] |

| /s/ Brian C. Carr | Director | [removed: March 1, 2018] [added: February 28, 2019] |

| /s/ Mary S. Chan | Director | [removed: March 1, 2018] [added: February 28, 2019] |

| /s/ Duncan H. Cocroft | Director | [removed: March 1, 2018] [added: February 28, 2019] |

| /s/ George R. Krouse Jr. | Director | [removed: March 1, 2018] [added: February 28, 2019] |

| /s/ Jack Langer | Director | [removed: March 1, 2018] [added: February 28, 2019] |

| /s/ Kevin L. Beebe | Director | [removed: March 1, 2018] [added: February 28, 2019] |

| [Consolidated Balance Sheets as of December 31, [removed: 2017] [added: 2018] and [removed: 2016](#BS)] [added: 2017](#BS)] | F-2 |

| [Consolidated Statements of Operations for the years ended December 31, [removed: 2017, 2016] [added: 2018, 2017] and [removed: 2015](#IS)] [added: 2016](#IS)] | F-3 |

| [Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, [removed: 2017, 2016] [added: 2018, 2017] and [removed: 2015](#CI)] [added: 2016](#CI)] | F-4 |

| [Consolidated Statements of Shareholders’ Deficit for the years ended December 31, [added: 2018,] 2017, [removed: 2016,] and [removed: 2015](#SE)] [added: 2016](#SE)] | F-5 |

| [Consolidated Statements of Cash Flows for the years ended December 31, [removed: 2017, 2016] [added: 2018, 2017] and [removed: 2015](#CF)] [added: 2016](#CF)] | F-6 |

Report of Independent Registered [removed: Certified] Public Accounting Firm

We have audited the accompanying consolidated balance sheets of SBA Communications Corporation and Subsidiaries (the Company) as of December 31, [removed: 2017] [added: 2018] and [removed: 2016,] [added: 2017,] and the related consolidated statements of operations, comprehensive income (loss), shareholders’ deficit, and cash flows for each of the three years in the period ended December 31, [removed: 2017,] [added: 2018,] and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial [removed: statements“).][added: statements”).]

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, [removed: 2017] [added: 2018] and [removed: 2016,] [added: 2017,] and the results of its operations and its cash flows for each of the three years in the period ended December 31, [removed: 2017,] [added: 2018,] in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, [removed: 2017,] [added: 2018,] based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated [removed: March 1, 2018] [added: February 28, 2019] expressed an unqualified opinion thereon.

| We have served as the Company’s auditor since [removed: 2002] [added: 2002.] |

| | | [added: 2018 | | |] 2017 | | | 2016 | |

| Cash and cash equivalents | | $ | [added: 143,444 | | $ |] 68,783 | | $ | 146,109 | [added: | |]

| Restricted cash | | | [removed: 32,924] [added: 32,464] | | | [removed: 36,786] [added: 32,924] |

| Accounts receivable, net | | | [removed: 90,673] [added: 111,035] | | | [removed: 78,344] [added: 90,673] |

| Costs and estimated earnings in excess of billings on uncompleted contracts | | | [removed: 17,437] [added: 23,785] | | | [removed: 11,127] [added: 17,437] |

| Prepaid expenses and other current assets | | | [removed: 49,716] [added: 63,126] | | | [removed: 52,205] [added: 49,716] |

| Total current assets | | | [removed: 259,533] [added: 373,854] | | | [removed: 324,571] [added: 259,533] |

| Property and equipment, net | | | [removed: 2,812,346] [added: 2,786,355] | | | [removed: 2,792,076] [added: 2,812,346] |

| Intangible assets, net | | | [removed: 3,598,131] [added: 3,331,465] | | | [removed: 3,656,924] [added: 3,598,131] |

| Other assets | | | [removed: 650,195] [added: 722,033] | | | [removed: 587,374] [added: 650,195] |

| Total assets | | $ | [removed: 7,320,205] [added: 7,213,707] | | $ | [removed: 7,360,945] [added: 7,320,205] |

| Accounts payable | | $ | [removed: 33,334] [added: 34,308] | | $ | [removed: 28,320] [added: 33,334] |

| Accrued expenses | | | [removed: 69,862] [added: 63,665] | | | [removed: 61,129] [added: 69,862] |

| Current maturities of long-term debt | | | [removed: 20,000] [added: 941,728] | | | [removed: 627,157] [added: 20,000] |

| Deferred revenue | | | [removed: 97,969] [added: 108,054] | | | [removed: 101,098] [added: 97,969] |

| Accrued interest | | | [removed: 48,899] [added: 48,722] | | | [removed: 44,503] [added: 48,899] |

| Other current liabilities | | | [removed: 8,841] [added: 9,802] | | | [removed: 11,240] [added: 8,841] |

| Total current liabilities | | | [removed: 278,905] [added: 1,206,279] | | | [removed: 873,447] [added: 278,905] |

| Long-term debt, net | | | [removed: 9,290,686] [added: 8,996,825] | | | [removed: 8,148,426] [added: 9,290,686] |

| Other long-term liabilities | | | [removed: 349,728] [added: 387,426] | | | [removed: 334,993] [added: 349,728] |

| Date: | February 28, 2019 |

February 28, 2019

| | | 2018 | | | 2017 | |

| Net income | | — | | | — | | | — | | | 47,451 | | | — | | | 47,451 |