• Cell Tower REITs have been one of the weakest-performing property sectors since early 2022, an uncharacteristic stretch of poor performance following a half-decade of industry-leading returns.

• Concern over the long-term competitive positioning of land-based cellular networks in the ever-evolving telecommunications industry has been amplified by the accelerated rollout of satellite-based networks offering some mobile connectivity.

• Low-Earth-Orbit ("LEO") satellite-based networks are an improvement over older geostationary technology, but there remain unavoidable physical and technical limitations that will limit its use-case to niche applications that lack better options.

• 5G has found its "killer app." Fixed Wireless Access ("FWA") - home broadband provided by carriers through cellular networks - is for real. Roughly 90% of net broadband subscribers added in 2022 are using FWA, taking share from traditional wireline and satellite services.

• Legacy cable providers have responded by expanding their own cell service offerings - in some cases becoming tenants themselves on macro towers and small-cells, a dynamic that we believe further solidifies the competitive positioning of cell tower REITs for at least the next decade.

Within the Hoya Capital Cell Tower REIT Index, we track the three Cell Tower REITs which account for roughly $175 billion in market value: American Tower (AMT), Crown Castle (CCI), SBA Communications (SBAC). The three cell tower REITs employ slightly different strategies: AMT and SBAC focus primarily on macro towers, but each has a significant international presence. CCI focuses exclusively on the United States, but has a significant small-cell business to complement its macro tower portfolio. We also track Uniti Group (UNIT), which owns a fiber-optic cable network that connects digital communications infrastructure.

Cell tower REITs comprise 15% of the market capitalization of the REIT sector - the single-largest real estate property sector weight. Cell Tower REITs' relative dominance over the real estate sector is dwarfed by its even more impressive dominance over the telecommunications sector, as these REITs control nearly 75% of wireless communication infrastructure in the U.S. and more than 50% in several major international markets. These REITs are the landlords to the four nationwide cellular network operators in the U.S.: AT&T (T), Verizon (VZ), T-Mobile (TMUS), and DISH Network (DISH), and own 50-80% of the roughly 140k macro cell towers in the United States and a significant share of multi-tenant "small cell" infrastructure. Six additional companies own portfolios of at least 2,000 towers, including DigitalBridge (DBRG), U.S. Cellular (USM), and private equity firms Peppertree Capital, Diamond Communications, Palistar Capital, and Tillman Infrastructure.