Earnings Call: Q2 2021

Aug 5, 2021

Welcome to Uniti Group's Q2 2021 conference call. My name is Carmen, and I will be your operator for today. A webcast of this call will be available on the company's website at www.uniti.com beginning August 5th, 2021, and will remain available for 14 days. At this time, all participants are in listen-only mode. Participants on the call will have the opportunity to ask questions following the company's prepared comments. The company would like to remind you that today's remarks include forward-looking statements, and actual results could differ materially from those projected in these statements. The factors that could cause actual results to differ are discussed in the company's filings with the SEC. The company's remarks this afternoon will reference slides posted on its website, and you are encouraged to refer to those materials during this call. Discussion during the call will also include certain financial measures that were not prepared in accordance with generally accepted accounting principles. Reconciliations of those non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the company's current report on Form 8-K, dated today. I would now like to turn the call over to Uniti Group's Chief Executive Officer, Kenny Gunderman. Please go ahead, Mr. Gunderman. Thank you. Good afternoon, everyone. Joining me on the call today is Paul Bullington, our interim CFO. Uniti reported another strong quarter of results at both Uniti Leasing and Uniti Fiber. Demand for our fiber infrastructure remains very strong, fueled by growing tailwinds within the communications infrastructure industry. This demand was evidenced by consolidated new sales bookings of approximately $1 million in MRR, representing a sequential increase of over 80% from the first quarter of this year and one of the highest quarters ever for consolidated bookings at Uniti. As slide 4 of our presentation illustrates, fiber is the mission-critical connective tissue for virtually all current and future broadband delivery. We're seeing an acceleration of the virtualization of our society with 5G mobile broadband, fiber to the home, fixed wireless, satellite, and other technologies enabling greater usage of video conferencing, e-learning, telemedicine, and remote work environments, all resulting in an overall continued surge in broadband traffic. Turning to slide five, Uniti is one of the largest independent wholesale fiber providers in the country, and our dense world-class fiber network is at the nexus of each of these trends. In fact, 90% plus of all the business we're generating today, including lease-up, is wholesale in nature, and we expect that to continue in the future. We have a growing portfolio of small cells, connected buildings, macro towers, and homes passed, and the need for more investment by our customers in 5G networks and other technologies is also growing. For example, our wireless carrier customers are particularly active in an effort to keep their underlying infrastructure ahead of the explosive growth in mobile broadband. These carriers are increasingly looking for 10-gig upgrades on our macro tower backhaul circuits while simultaneously continuing to push for backhaul to new macro towers and C-RAN small cell deployments in our metro markets. These investments provide Uniti with the unique opportunity to expand our networks with anchor economics, setting the foundation for attractive future lease-up and further validating the shared infrastructure benefits of fiber. Our non-wireless carrier customers, such as the FANG group and national MSOs, are also active as they expand their cloud-based services. Their insatiable demand for high-capacity, long-haul routes, in particular, continues to accelerate. Our residential and enterprise-focused carrier customers continue to be active in driving broadband to more and more consumers. Our dense metro networks today pass 250,000 buildings, and we're aggressively building deeper into commercial parks and neighborhoods through fiber to the home and fixed wireless builds. Over the past three years, we've built almost 10,000 route miles of new fiber, and we expect that number could increase significantly over the next three years. We've amassed this valuable and hard-to-replicate portfolio in only six years through our proprietary M&A efforts and organic sales strategy, and our portfolio is growing every day. As evidenced on slide six, Uniti is demonstrating the economics of an attractive shared infrastructure model that continues to drive meaningful returns. As a reminder, Uniti believes that a healthy mix of wireless and non-wireless bookings and installs represents the most effective way to drive optimal, profitable economics. Uniti acquires or builds new fiber largely for our wireless customers with attractive long-term anchor cash flow yields in the mid to high single digits. We're also successfully adding additional tenants with very high margins and minimal CapEx, resulting in a cumulative cash flow yield today of approximately 18%, an almost threefold increase from the anchor yield, and all within the past 5 years. Turning to Uniti Fiber during the quarter, small cell revenues grew 27% from the prior year, while enterprise revenue grew 16%, demonstrating that we're choosing good anchor markets to expand our network in a disciplined manner and that we're executing well on follow-on lease-up. Uniti Fiber sales bookings in the second quarter were approximately $0.8 million of MRR, an increase of almost 70% from the first quarter, and our highest level of bookings in over 1 year. In terms of mix, 65% of our sales bookings came from non-wireless customers. Almost 40% of the lease-up of MRR sold over the past 12 months occurred in the second quarter alone as we continue to ramp up our lease-up efforts within our Southeast markets. Uniti Fiber installed $0.6 million of MRR during the second quarter, with 75% of gross installs related to non-wireless opportunities, 20% related to wireless, and 5% related to bandwidth upgrades. Importantly, for the first time in Uniti's history, our time to install new circuits has dropped below 90 days. This is a terrific accomplishment that really helps improve customer satisfaction as well as profitability for the company, as a result of largely selling on-net services to our customers. Turning to slide seven. At Uniti Leasing, we continue to actively market over 3 million strand miles of fiber that is available to lease to third parties. Our sales pipeline today stands at a little over $1 billion of total contract value, which translates to about $65 million of potential annual recurring revenue, reflecting the continued significant interest from our wholesale customers. Over 70% of the deals utilized fiber we acquired as part of the settlement with Windstream, and our success is the result of less than one year of actively marketing this fiber. We continue to be successful with monetizing our portfolio of assets and to date have executed on opportunities that represent total remaining revenues under contract of $805 million, with an average contract term remaining of over 14 years and incremental cash flow yields of approximately 11%. Turning to slide 8. Our growth capital investment program continues to yield positive results. As a reminder, our tenant has invested over almost $1 billion of tenant capital improvements in our network over the past six years, and that investment is expected to continue. Uniti Group has now begun investing its own capital in long-term value accretive fiber, largely focused on building highly valuable last mile fiber, including in commercial parks and fiber to the home. Collectively, these investments have resulted in around 20% of the legacy copper network being overbuilt with fiber and almost 10,000 route miles of new fiber constructed. Both of those numbers are expected to increase materially in the coming years. We believe our GCI program is an attractive investment for our stockholders, providing a secure near-term cash flow yield while simultaneously future-proofing our network for renewal. With that, I'll now turn the call over to Paul. Thanks, Kenny. Good afternoon, everyone. As Kenny mentioned earlier, we delivered another strong quarter of results at both Uniti Fiber and Uniti Leasing. Our guidance remains mostly in line with prior outlook. However, we are tracking ahead of plan year to date, and we now expect adjusted EBITDA and AFFO per diluted common share for full year 2021 to be closer to the high end of our guidance range due to the strength of our second quarter and the expectation that strength will continue into the second half of 2021. However, we are not adjusting the midpoint of our 2021 outlook as there remains the possibility that some contractual revenue could slip into the first quarter of 2022. During the quarter, we closed our strategic opco/propco transaction with Everstream. As part of the transaction, we recorded a pre-tax book gain of $28 million relating to the partial sale of our Northeast operations and the sale of certain dark fiber IRU contracts. The gain is excluded from both adjusted EBITDA and AFFO. Please turn to slide 9, and I'll start with comments on our second quarter. We reported consolidated revenues of $268 million, consolidated adjusted EBITDA of $216 million, AFFO attributed to common shares of $103 million, and AFFO per diluted common share of $0.41. Net income attributable to common shares for the quarter was $49 million, or $0.20 per diluted share, and includes the $28 million pre-tax gain on sale I mentioned earlier related to the Everstream transaction. At Uniti Leasing, we reported segment revenues of $196 million and adjusted EBITDA of $192 million, up 6% and 5% respectively from the prior year. Accordingly, Uniti Leasing achieved an adjusted EBITDA margin of 98% for the quarter. The year-over-year growth reflects straight-line rent recognition under the Windstream MLAs and GCI investments subsequent to our settlement agreement, the dark fiber IRU contracts we acquired from Windstream, as well as annual lease escalators. During the second quarter, Uniti Leasing deployed approximately $50 million towards growth capital investment initiatives, with almost all the investments relating to the Windstream GCI program. These GCI investments added around 1,600 route miles and 56,000 strand miles of valuable fiber to Uniti's own network across 13 different states. As of June 30th, Uniti has invested $177 million of capital to date under the GCI program with Windstream, adding around 5,000 route miles and 178,000 strand miles of fiber to our network. These investments will be added to the master leases at an 8% initial yield at the one-year anniversary of Uniti making such investment. They are subject to a 0.5% annual escalator and result in near 100% margin. The investments we have made to date will ultimately generate approximately $14 million of annualized cash rent. At Uniti Fiber, we turned over 150 lit backhaul, dark fiber, and small cell sites for our wireless carriers across our southeast footprint during the second quarter. These installs added annualized revenues of approximately $1 million. We currently have around 1,200 lit backhaul, dark fiber, and small cell sites remaining in our backlog that we expect to deploy within the next few years. This wireless backlog represents an incremental $10 million of annualized revenues. Uniti Fiber revenues of $72 million during the quarter were in line with our expectations. As I mentioned earlier, we closed the Everstream transaction on May 28th, and the results from our Uniti Fiber Northeast operations that were sold as a part of the transaction will no longer be included in our financials from that date. The impact in the second quarter from the sale of the Northeast operations was approximately $2 million in revenue and $1 million in Adjusted EBITDA. Adjusted EBITDA of $29 million during the quarter was higher than expected due to lower operational and maintenance costs. Adjusted EBITDA margin for the quarter was 41%, representing a 480 basis point improvement from the prior year due to the lower cost I just mentioned and our continued emphasis on higher margin recurring revenue. Uniti Fiber net success-based CapEx was $37 million in the second quarter, consistent with our expectations. We also incurred $2 million of maintenance CapEx, or about 3% of revenues. Please turn to slide 10, and I will now cover our updated 2021 guidance. We are revising our prior guidance primarily for the impact of the gain on sale of operations and income tax expense related to the Everstream transaction, the impact of transaction-related and other costs incurred to date, and revised estimates of interest expense. Our current outlook excludes future acquisitions, capital market transactions, and future transaction-related and other costs not specifically mentioned herein. Actual results could differ materially from these forward-looking statements. Our current full-year outlook for 2021 includes the following for each segment. Beginning with Uniti Leasing, we continue to expect revenues and adjusted EBITDA to be $784 million and $766 million respectively at the midpoint, representing adjusted EBITDA margins of approximately 98%. Revenue and adjusted EBITDA each include $26 million relating to the straight-line rent associated with the Windstream master leases and GCI investments. Our outlook reflects $210 million of net success-based CapEx at Uniti Leasing at the midpoint of our guidance, of which $200 million relates to estimated Windstream GCI investments. Most of these markets are similar to our own tier 2, tier 3 markets, providing Windstream with substantial growth opportunities over time. As slide 11 highlights, non-Windstream revenues and adjusted EBITDA continue to grow at a healthy pace and are expected to be about $55 million and $42 million respectively, up 27% and 17% from 2020 levels. This includes the assets and dark fiber IRU contracts we acquired from Windstream, where the revenue is diversified across multiple third parties, and the dark fiber IRU leases that are part of the Everstream transaction. Turning to slide 12, we expect Uniti Fiber to contribute $305 million of revenue and $118 million of adjusted EBITDA, representing a margin of 39% this year at the midpoint of our guidance, which is 300 basis point improvement from 2020. As we pointed out on our earnings call last quarter, Uniti Fiber's outlook is impacted by the sale of our Northeast operations as part of the Everstream transaction and the winding down of our non-core construction business. Adjusting for the impact of these two items, revenue and adjusted EBITDA for 2021 at Uniti Fiber are expected to increase by 6% and 10% respectively from 2020. Net success-based CapEx for Uniti Fiber this year is still expected to be $125 million at the midpoint of our guidance. Turning to slide 13. For 2021, we continue to expect full-year AFFO to range between $1.61 and $1.65 per diluted common share, with a midpoint of $1.63 per diluted share. On a consolidated basis, we expect revenues to be $1.1 billion and adjusted EBITDA to be $852 million at the midpoint. Our guidance contemplates consolidated interest expense for the full year of approximately $397 million, excluding any deferred financing cost write-offs and premiums paid relating to early repayment of our debt. Reported interest expense in 2021 will include an additional $44 million relating to the write-off of deferred financing costs and premiums paid on the early repayment of our 8.25% senior unsecured notes and 6% senior secured notes due 2023. Corporate SG&A, excluding amounts allocated to our business segments, is still expected to be approximately $42 million, including $10 million of stock-based compensation expense. We continue to expect weighted average diluted common shares outstanding for full-year 2021 to be around 263 million shares. As a reminder, guidance ranges for key components of our outlook are included in the appendix to our presentation. Turning now to our capital structure. At quarter end, we had approximately $574 million of combined unrestricted cash and cash equivalents and undrawn revolver capacity. Our leverage ratio stood at 5.65 times based on net debt to annualized adjusted EBITDA. On August 3rd, our board declared a dividend of $0.15 per share to stockholders of record on September 17th, payable October 1st, which is our current estimate of the maximum amount allowed under our current debt agreements. I'll now turn the call back over to Kenny. Thanks, Paul. Turning to slide 14. Before opening up the call for Q&A, I'd like to take a moment to comment on Uniti's public market valuation. We get questions regularly from investors and analysts about how we think Uniti should be valued, given the unique nature of parts of our business. We believe there's a material disconnect between how the public market values Uniti's equity and our intrinsic valuation. We believe our scale high-performing fiber business, which includes Uniti Fiber and non-Windstream operations at Uniti Leasing, should demand a 15 to 20 times cash flow multiple based upon substantial private market comps. Our attractive economics, which includes 95% recurring revenue, monthly churn of 0.2%, mean time to deliver of less than 90 days, company-wide net success-based capital intensity of 30%, and cash flow growth of 5%-10%, are evidence of the quality of our platform relative to other fiber businesses. Using the midpoint of this range, our remaining business is being valued at a 14% yield or roughly 7x cash flow multiple. This 7x cash flow multiple compares to an 11-12x implied cash flow multiple from the valuation we received in 2015 as part of the original spin-off from Windstream, and the refreshed valuation we received in 2020 in connection with Windstream's emergence from bankruptcy. Both of these valuations were performed by separate and independent third-party valuation firms. Further, Windstream exited bankruptcy at a roughly 3.75x cash flow multiple, and when combined with an 11.5x multiple for our infrastructure, the resulting blended multiple of 6.5x is in line with other publicly traded ILECs. This valuation is only a jumping-off point as market-based comps suggest even greater upside since our lease streams have never been disrupted and have repeatedly been proven as a priority payment. In closing, the value and strategic interests in 5G, fiber, small cells, and now fiber to the home has never been greater, and Uniti represents a unique portfolio of all of these infrastructure assets. With that, operator, we are now ready to take questions. Thank you. As a reminder to ask a question, simply press star one on your telephone. To withdraw the question, press the pound or hash key. Please stand by while we compile the Q&A roster. First question is from Philip Cusick with JP Morgan. Thanks, guys. I guess, Kenny, to start, if the company believes your shares are cheap, what's the next step? Are you willing to borrow to buy some shares? Would you consider selling assets to buy shares? Do you engage with the private equity company? Certainly, there is a lot of private equity chasing fiber assets today. What do those conversations look like? Hey, Phil. Yeah, those are all the right questions, and frankly, some of the questions and the dialogue that we hope to spur from this page and this framework. Yeah, look, we've said for some time that we think we're undervalued. We've said for some time we think the portfolio of our assets and just the core predictable performance of our underlying operations are underappreciated. We've continuously thought that and looked for ways to unlock that value. I think for sure we need to continue to execute and continue to grow both organically and inorganically. I think especially in this environment where the industry is awash with capital, we also have to look for other ways to lock in value as opposed to just talk about it theoretically. I think there are a number of different ways to do that. We could look at securitization of the leases. We could look at monetizing a portion of the leases through JVs or selling interests or other things, including some of the things you mentioned. These are all things that we're leaning into. With all that said, we think it's very important for our investors, especially our public market investors, to understand a framework for looking at value for Uniti. We can all haggle over what the right assumptions are, but having the right framework to look at it, because we do get a lot of questions about a good way to look at it. Given the unique nature of our business, we think leaning into this a little bit more now is the appropriate thing to do. Okay. On the operational side, well, I guess it's not, but we talked a number of times in the past about deal pipelines, a lot going on, I think this is the same question I may have asked 3 months ago. You've talked about, hey, it took a year last time to get things up and running. It's kind of been nearly a year at this point. What's the status of that pipeline? Yeah. Phil, you beat everybody else to that question, so thanks for asking it. Nothing's changed in our strategy. Somebody was going to. We're still not quite to the one year anniversary of the emergence. I would just encourage our investors to be patient. We're still working very hard on developing the funnel, and I would encourage investors to look back at our track record of being disciplined, not setting artificial deadlines, but at the end of the day, being very successful at executing on acquiring assets and businesses at attractive multiples, despite a frothy market. Also, at the same time, finding ways to monetize non-core assets at very attractive premium multiples. I think we've got a good track record. We've been able to demonstrate it over a six-year period. We've not set artificial deadlines, but we're working very hard at it, and we've got a very nice funnel that's continuing to develop. Thanks, Kenny. Thank you. Our next question is from Frank Louthan with Raymond James. Oh, your audio. Frank? Please check your audio. We cannot hear your question. All right. Please queue in the Q&A. I'm going to continue with the next question from David Barden from Bank of America. Hey, Kenny. Thanks for taking the question. I guess I got two. One kind of big picture, one small picture. I guess I'm going to follow up on Phil's question. If we reverse engineer this, right? You guys went through this process with Windstream and the courts and got the lease kind of certified, in effect, as a lease for the core assets. In a lot of ways, I view it as kind of a super senior secured kind of security. You kind of litigated it to the nth degree. $692 million at a 10% yield is basically $7 billion. The fiber business is effectively free inside Uniti today. The bigger picture question is why are these two businesses one business? Why don't we just separate them and just create value right away, rather than waiting to do a private negotiation with a private entity. Let's just break it apart. The second question is related to the pipeline on leasing that you guys shared. In the footnotes, it says there's $18 million of the roughly $65 million in annualized revenue was related to 1 particular IRU deal. What is the value of that IRU deal versus the $1.1 billion in total pipeline revenues that you guys disclosed? Thanks. Yeah, David, on that second question, we'll probably come back to you on that one. I'm pretty sure I know which one it is, and I think Paul does too. In terms of the specific numbers, we'll come back to you on that. It was one of the large anchor IRUs that we sold when we first took over the network, and it was with one of the large national MSOs. In terms of your first question, again, I think those are all the right questions and good observations and some of the things that we're thinking about. I do think these two businesses together do make sense, however. The network that we lease to Windstream provides a substantial amount of valuable fiber and capacity for Uniti Fiber. We use that network, and we're leasing it up through Uniti Leasing. In a lot of cases, the networks that we're selling are network solutions where we're selling some Uniti Fiber fiber, we're selling some of the Windstream fiber that we got in the settlement, we're selling some of the fiber we got from Sapphire. There's strategic value in keeping all of this together. At the same time, some of that can be accomplished through other means if there were some value creative ways to separate or to lock in some of these values. All things we're thinking about, and I think your line of thinking in terms of the value and sort of getting Uniti Fiber for free, so to speak, at these prices is right. Kenny, if I could follow up just with one more. We heard over the course of the last couple of weeks, Crown talking about how carriers had kind of pivoted from small cell densification to more macro C-band deployments and were reallocating capital, actually defunding small cells to fund more kind of macro geographic builds. Also we heard from SBA that DISH is actually doing a much more broad geographic build than simply the Las Vegas market announcement that they made earlier. Obviously, you have a strategic relationship with them. Are you seeing an acceleration in the activity level, either in terms of conversations, funnel, contractual signings, that sort of thing contributing to this kind of record or near record monthly recurring revenue billings in the quarter, or is that still to come? Both. We're expecting an acceleration in the second half of the year on bookings. We're expecting a pickup in general at the beginning, in the second half of the year. That was something we expected coming into the year. DISH, we've been extremely active with DISH. Frankly, much more so than I thought, and I think even what our sales folks thought coming into the year, and it's accelerating. I think it is macro related, no small cell activity, but macro related as you alluded to. We expect that to continue, at least for the foreseeable future. Small cells, again, we don't have a huge small cell portfolio. It's growing. It grew at 27% this quarter year-over-year, so growing off a small base. As we've always talked about, you know, David, we believe when small cells do come to our markets, we're going to have a first-mover advantage there in the tier 2-ish and 3-ish markets. We expect that. With that said, we have seen some of the carriers pull back on small cells and reprioritize macros in return. That's C-band related. It's 10G upgrade related. I wouldn't say we've seen small cells fall out of our funnel. I think they've just been pushed out in terms of timing. Now, of course, that always means there's greater risk to them staying in the funnel. At least for now, we're not taking anything out of our overall forecast. They've just been pushed out in terms of timing. Got it. Okay, thanks guys. Thank you. Our next question comes from Frank Louthan with Raymond James. Great. Thank you very much. 1 quick thing in the quarter. Did the asset sale to Everstream have any impact on revenue EBITDA in the quarter? What was the timing of that? What do you think about opportunities with any of the RDOF companies, some of the startups there to be part of their builds? Do you think that's going to be an opportunity for you guys, going forward? Hey, Frank, good to have you back. I'll take the second one, then Paul can take the first. Yeah, I think a number of our current customers, whether it be sale-leaseback customers like Windstream or CableSouth or others, are RDOF recipients, large RDOF recipients. We think what that means is greater investment in the edge of the network and therefore greater need for the middle mile and ultimately the backhaul on our network. We've already seen that. I think it's going to lead to just greater traffic coming from those customers on the network. We've also seen for non-customers, companies who are RDOF recipients who are currently not customers, we've been having some good dialogue with them about them using our network as jumping-off points for their RDOF builds. As you know, many of these builds are in more rural areas, and that's where a lot of our network goes. It's a great jumping-off point for many of these customers. I can't give you a sense yet, Frank, for how big of an opportunity it is for us, but I do think it's an opportunity, and I certainly don't think it's a competitive threat. On the margin, we may have some fiber or some additional competitors in certain markets. I think the benefit to us outweighs any competitive threat. Paul, you want to comment on the Everstream question? Yes, sure, Frank. Yeah, I'll take that. Yes, the sale of our Northeast operations to Everstream did have an impact on the quarter. It closed on May 28th, so it basically had 1 month of impact on our financials. The dollar amounts, had a $2 million impact on revenue and a $1 million impact on adjusted EBITDA. All right, great. One quick follow-up. You mentioned edge and so forth. Would you guys ever consider building small edge data centers as part of your network? I mean, you branched out into towers at one point. Is that something you would consider for growth as part of your infrastructure portfolio, or should we just pretty much think of you guys more on the fiber network side going forward? Frank, we are considering that. As a reminder, look, we still have macro towers. We're obviously building small cells, and we're actually developing, have developed a prototype and even a business case around what you're calling edge data centers. We call them something different, but it's really just pods at the edge of the network. That's a result of our carrier customers asking for it in certain markets. Again, I can't give you any sense of how big of an opportunity that is. When you think about it, we're in a market with a fiber network. We've got boots on the ground. A natural extension of that network is adding some pods on the edge, that in effect serve as edge data centers. That is something that we're doing, and I think something that we'll probably see more of in the coming quarters and years. All right, great. Thank you very much. Thank you. Our next question comes from Simon Flannery with Morgan Stanley. Great. Thank you very much. Following up on the RDOF, you've got a lot of money set aside in the infrastructure bill. Kenny, I was wondering if you see any opportunities around leveraging some of those funds over the next several years. On the MRR, it's nice to see the bookings coming through. To what extent does that largely run on your existing network, or is there much CapEx or need associated with those new bookings? Hey, Simon. On the first question, I think. We're proponents of the infrastructure bill, at least the part related to communications infrastructure. We're excited about it. We think it's another tailwind in our industry where there's just bipartisan support for $50 billion-$100 billion of additional investment in fiber. We think a lot of that's going to be directed towards more rural suburban areas, which again, is where our network is. We're not going to be direct recipients of that funding, or at least we don't think so, unless something changes, but we don't think we will be. We will be a derivative recipient through our customers and our customers' investment for the reasons I said earlier related to RDOF. We just think it's another example of the continued sort of steady pace of federal and state subsidy for investment in our space, which we're a beneficiary of. On the bookings question, and I'll comment, and Paul can jump in, but it's a mix. It's a very strong quarter, very strong, frankly, start to the third quarter based on early numbers I've seen for July. It's a good, healthy mix of wireless, including wireless anchor builds and wireless lease-up, in addition to enterprise and regular wholesale. The vast majority of that is on our existing network or it's being built off of our existing network. If we're building new fiber, it's going to be connected to the existing network. It's coming in at very, what we consider attractive incremental yields, and we demonstrate those yields early on in our presentation. The initial anchor yields of 5%-10%, and then getting up to the near 20% blended yields. We continue to see that in our book of business and our new bookings that are coming on. What does that do to capital intensity in the fiber business? I think it- Into 2022 and beyond. Yeah. Yeah. It's going to continue to decline as we forecasted. We are still managing that number down. The bookings levels that we're currently at, and frankly, that we see continuing, are going to be a mix of those on-net, greenfield build, and near net, and it's all going to result in what we think is a steadily declining capital intensity. Thank you. Thank you. This concludes our Q&A session for today. I would like to turn the call back to management for his final remarks. Thank you. We appreciate your interest in Uniti Group, and look forward to updating you further on future calls. Thank you for joining us today. Thank you. This concludes today's conference call. Thank you for your participation, and you may now disconnect.