“We are raising our outlook by $110 million at the midpoint, representing a 1% increase to our prior outlook.”

In context

“Rodney Smith (Executive Vice President, Chief Financial Officer and Treasurer): Thanks, Steve, and thank you all for joining the call. As Steve mentioned, we've carried our strong momentum into the second quarter and increased our 2026 outlook for the second time this year. I'll start by reviewing our second quarter results, and then I'll touch on our revised full year outlook. Slide 7 shows a snapshot of our second quarter highlights. Consolidated property revenue grew over 5% year-over-year when excluding noncash straight-line revenue and FX impacts. Normalized for the impact of one-time DISH churn, property revenue grew over 7% on a cash FX-neutral basis. Our growth was primarily driven by organic tenant billings growth of nearly 2% or 4% normalized for the impact of one-time DISH churn and complemented by data center cash revenue growth of approximately 12%. Adjusted EBITDA grew over 3% when excluding net straight-line and FX impacts. Normalized for the impact of one-time DISH churn, adjusted EBITDA grew over 6% on a cash FX-neutral basis. Cash adjusted EBITDA margins declined approximately 40 basis points year-over-year, primarily due to DISH-related churn and SG&A timing. Excluding DISH-related churn, cash adjusted EBITDA margins expanded approximately 30 basis points. Attributable FFO per share grew approximately 1% when excluding FX impacts. Normalized for the impact of one-time DISH churn and excluding the impact of refinancing costs, attributable AFFO per share grew over 5% on an FX-neutral basis. Moving to Q2 organic growth and data center growth on Slide 8, we delivered consolidated organic tenant billings growth of nearly 2% or approximately 4% when excluding DISH churn. Across each of our tower segments, organic growth was in line with the expectations we laid out earlier this year, driven by solid demand across our global portfolio. In the U.S. and Canada, organic growth was nearly 1% and approximately 5% when excluding DISH churn, consistent with our expectations for durable growth in the mid-single digits. In Africa and APAC organic growth was nearly 11%. As a reminder, churn is expected to be back-half weighted, resulting in approximately 10% organic growth in the first half of the year and approximately 7% expected in the second half of the year. In Europe, organic growth was approximately 4%. And in Latin America, organic growth declined over 2% primarily driven by elevated churn in Brazil, consistent with our expectations laid out at the start of the year. We remain encouraged by the prospects of an earlier-than-expected market repair in Brazil and the forthcoming acceleration in organic growth in 2027. Finally, on the right side of the slide, data center property revenue growth was approximately 12% when excluding noncash straight-line revenue. As Steve mentioned, this quarter marked another record quarter of new leasing revenue for CoreSite. In fact, we added more new business this quarter than we did for the entire year of 2021 and the continued strength in underlying demand drove double-digit revenue growth for the fifth consecutive quarter. Now, let's turn to our revised full year outlook. We are raising guidance across all of our key consolidated financial metrics primarily driven by consistent growth across our global tower portfolio, data center outperformance, operating expense benefits and FX tailwinds. In addition, as Steve mentioned, we completed the divestiture of our Philippines and Bangladesh portfolios this quarter. The divestitures occurred in mid-to-late June and our revised outlook now excludes contributions from Bangladesh and the Philippines for the remainder of the year. Starting with property revenue outlook on Slide 9. We are raising our outlook by $110 million at the midpoint, representing a 1% increase to our prior outlook. Our revised outlook now implies nearly 4% year-over-year growth when excluding noncash straight-line revenue and FX impacts. Normalized for the impact of one-time DISH-related churn, our outlook implies approximately 6% growth on a cash FX-neutral basis. The increase to outlook was primarily driven by approximately $35 million of FX tailwinds, $25 million of data center outperformance and $65 million from other items, including pass-through and straight-line revenue, partially offset by approximately $15 million related to Philippines and Bangladesh divestitures. Our underlying operating trends remain consistent with the assumptions embedded in our prior outlook. We are reiterating organic growth assumptions across all regions and continue to expect organic tenant billings growth of approximately 1% and approximately 4% when excluding DISH churn and data center growth of approximately 15% year-over-year, which represents a significant acceleration versus our prior outlook of 13% growth. Moving to adjusted EBITDA on Slide 10. We are raising our adjusted EBITDA outlook by $45 million at the midpoint, representing an approximately 1% increase to our prior outlook. Our revised outlook now implies over 2% growth year-over-year, excluding noncash net straight-line and FX impacts. Normalized for one-time impact of DISH-related churn, our outlook for adjusted EBITDA implies approximately 5% growth on a cash FX-neutral basis. The increase to outlook was driven by approximately $20 million of FX tailwinds, $30 million of data center outperformance and approximately $35 million of one-time benefits primarily related to an indirect tax recovery in Latin America, partially offset by approximately $10 million related to the Philippines and Bangladesh divestitures and $30 million of other items, primarily comprised of noncash straight-line impacts. Turning to AFFO on Slide 11. We are raising our attributable AFFO outlook by $0.09 per share, representing a 1% increase to our prior outlook. Our revised outlook now implies growth of approximately 3% year-over-year. Normalized for the impact of one-time DISH-related churn and excluding the impact of refinancing costs, our outlook for attributable AFFO per share growth implies nearly 6% growth on an FX-neutral basis. The increase to outlook was primarily driven by adjusted EBITDA outperformance of approximately $0.12 and FX tailwinds of approximately $0.06. Higher cash taxes related to the EBITDA outperformance represent approximately $0.04 of downside and higher net interest expense also represents approximately $0.04 of downside. Finally, the Philippines and Bangladesh divestitures represent $0.01 of downside. As a reminder, we continue to expect our services business growth to represent an approximately 100 basis point headwind to attributable AFFO per share growth this year. Due to higher interest rates, we now expect our debt refinancings to be an approximately 150 basis point headwind to attributable AFFO per share growth this year, up from an approximately 100 basis point headwind in our prior outlook. Our ability to raise outlook while absorbing an additional 50 basis point headwind from higher interest rates highlights the strength of our underlying business and the benefits of the proactive steps we've taken to reduce floating rate debt. We believe this year represents a trough for attributable AFFO per share growth, and as these headwinds ease heading into 2027, we're confident that we can deliver a meaningful inflection in growth and return to our long-term expectation of AFFO per share growth in the mid- to high single-digit range. Turning to capital allocation and our balance sheet on Slide 12. Our capital allocation strategy remained focused on balance sheet strength, disciplined investment and long-term value creation. The work we've done over the past several years to strengthen our financial position has created significant flexibility. We ended the quarter with leverage of 4.9x, within our target range of 3 to 5x and in the highest credit rating among our peer group. In today's environment, where opportunities across digital infrastructure continue to expand, balance sheet capacity remains an important competitive advantage. In 2026, our growth capital plan remains consistent with our prior outlook. We continue to expect to spend approximately 85% of our discretionary capital within our developed markets platforms, including over $700 million to develop more capacity in our data center portfolio, approximately $370 million to construct new towers globally and approximately $210 million to purchase land beneath our towers. In addition, year-to-date, we have allocated over $230 million to acquisitions of towers and data center land and over $200 million to share repurchases. Turning to Slide 13. Our second quarter results reflect the durability of our business model and the consistent execution of our strategy. We continue to see resilient demand trends, supported by increasing mobile data consumption, ongoing network investments and growing requirements for highly interconnected digital infrastructure. Combined with our disciplined approach to capital allocation and strong financial position, these trends provide confidence in our ability to continue generating sustainable earnings growth and long-term shareholder value. With that, operator, please open the line for questions.”