So we’re not comfortable enough with what the interest rate environment looks like over the course of 2024 to make a change at this point. And like I said, there would be some impact at the AFFO level. And there is going to be positive negatives throughout the course of the year based on what we thought was going to happen and what actually happened only when they start to exceed the ranges that we’ve given, we will really consider changing the guidance.
David Barden: Okay. Great, helpful guys. Thank you so much.
Operator: The next question comes from Brendan Lynch with Barclays. Please go ahead.
Brendan Lynch: Great. Thanks for taking the question. You guys have guided to 5% organic Tower growth through 2027, which is largely already contracted in your MLAs. Can you talk about what level of consistency or volatility we should expect on a quarter-to-quarter basis for core leasing activity?
Dan Schlanger: Sure. Just to clarify the comment you made, we’ve given some disclosure that through 2027 we believe our Tower growth will average 5% and 75% of that is contracted to date. And I think you could understand it. There is more contracted in the early years than there is in late years. But we believe that the amount of activity will support our 5% growth going forward. And in terms of volatility on a quarter-to-quarter basis, our business is very stable. But that doesn’t mean that every quarter is the same. So we will have volatility quarter-to-quarter. But over the course of the year, I think it is a pretty stable growth pattern. And that has been proven over time. But even in the years, we grew at 5% in 2023.
We expect to grow 4.5% in 2024. That level of volatility will likely remain something in that vicinity. But when you’re talking about a business of our size and scale, that’s not a huge amount of volatility overall. So we feel good about both the stability of our cash flows and the growth of those cash flows over the next several years.
Brendan Lynch: Great. Thanks. That’s helpful. And then on churn, it was the lowest that you’ve had in at least 5 years in 2023. Are you expecting it to be structurally lower going forward? Of course, this is excluding Sprint.
Dan Schlanger: Yes. We have said that what we believe our churn is going to be between 1% and 2% per year. We were on the low end of that, obviously, in 2023, as you pointed out. We – there is nothing that would say we’re going to be outside of the 1% to 2% range, but we do think we will be on the lower end of it over – in the near-term, just given some of the churn historically have been related to consolidation churn that is not earning any more other than the Sprint consolidation that you just spoke of. And we think that churn in the industry is very low. It’s one of the reasons that it makes the Tower business such an attractive business is that we have growth driven by the things that Tony was talking about densification, continuation of data demand, limited capital expenditure requirements and limited churn, so we can have long-term growth without having to spend a lot of money.
That’s a great place to be, and we believe that churn will remain relatively low on the lower side of that range for a bit.
Brendan Lynch: Great. Thanks for the color.
Operator: Next question comes from Nick Del Deo with MoffettNathanson. Please go ahead.
Nick Del Deo: Hey, good morning. Dan, glad to hear that you won’t be going anywhere. First, there is obviously been a lot of change and uncertainty in a pretty short period of time. I think about the reduction in force, the leadership and the Board changes, the U-turn on the plan to centralize the organization and obviously, what’s going on with the fiber review. In light of all that, how would you characterize morale and the state of the workforce? And are you confident that there won’t be any sort of operating impacts or unwanted loss of human capital stemming from all that?
Tony Melone: Nick, thanks for the question. Yes. So in my time here, I’ve spoken to a great number of employees. And I would say that the morale is good. I mean, obviously, change is unsettling for people. But people – the employees want to just get down the work. They want to serve their customers. They want to drive the business forward. And I think they are excited about moving forward. So I am not experienced in my short time here, any evidence to say that people are reacting in a way that I would be concerned about our ability to execute our plan in 2024 and beyond. So I’ve been happy with everything I’ve seen so far, and I think the employee morale is very good.
Dan Schlanger: I’ll add a couple of things as I probably have a little bit more context given my perspective here. First, it’s been great to see how Tony has engaged with our employees. He’s been talking to a lot of people and I think the response has been very positive, both as Tony just said from his perspective, but also people have appreciated his coming in with plans and ideas and didn’t – not just sitting here doing nothing, like, hey, we’re going to make this better. And I think people like that. I think people like the direction. And as you pointed out, Nick, there has been a lot of change and a lot of uncertainty. And I think Tony has projected a view of understanding what we need to do and having an idea of how to get there.
And I think that has been helpful. And lastly, even in the fourth quarter, we delivered on what we expected to do, and there couldn’t have been much more turmoil than in the fourth quarter for us. So, I think that’s just a testament to how well people stay focused on, as Tony pointed out, delivering for our customers and generating what we need to do for the business. And the overarching commentary that I have received recently has been just let us go back to work. There has been a lot of turmoil. We like what we do. We like working here. We like delivering for our customers, let’s go do that. And I think that’s the overarching feeling that we have gotten from most of our employees and to which I would just say thanks to all of them who are listening.
I know it’s been a tough time and appreciate all the dedication you have shown to getting things done anyway.
Nick Del Deo: Okay. That’s terrific to hear. If I can ask one more about fiber solutions, your bookings in that segment in Q4 were – we are at a level that would get you to your 2024 guidance if they were sustained over the course of the year. And it was a nice step-up from what we have seen over the last 1.5 years or so. I guess can you talk a little bit about what’s behind the improvement, so we can get additional comfort and its sustainability?
