Why Is Crown Castle Stock Surging Today?

Crown Castle Inc. (NYSE:CCI) shares surged premarket on Friday after the company disclosed a deal yesterday to sell all of its Fiber segment and announced quarterly results.

Fiber Segment Asset Sale: The company inked a deal to sell its Fiber segment, including supporting assets and personnel, for $8.5 billion.

In particular, EQT Corporation (NYSE:EQT) will acquire the small cells business, while DigitalBridge Group, Inc.‘s (NYSE:DBRG) Zayo will take over the fiber solutions division.

Crown Castle plans to use the proceeds to repay debt and fund a $3.0 billion share repurchase program, aiming to maintain its investment-grade credit rating.

The company expects to reduce its annualized dividend to around $4.25 per share starting in the second quarter of FY25.

After the transaction closes, Crown Castle plans to set its annualized dividend at approximately 75% to 80% of AFFO, excluding amortization of prepaid rent.

Crown Castle expects to grow its annualized dividend in ...