Here’s Why SBA Communications (SBAC) Has Promising Organic Growth Prospects

TCW funds, an investment management company, released its “TCW Global Real Estate Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund (I Share) returned +2.37% in the quarter compared to +4.50% for the S&P Global REIT Index. The overweight allocation in Diversified Real Estate Activities had a favorable impact on the fund’s relative performance in the quarter, while the overweight in Telecom Tower REITs had a negative effect. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, TCW Global Real Estate Fund highlighted stocks such as SBA Communications Corporation (NASDAQ:SBAC). SBA Communications Corporation (NASDAQ:SBAC) is an independent owner and operator of wireless communications infrastructure. The one-month return of SBA Communications Corporation (NASDAQ:SBAC) was 2.14%, and its shares lost 5.27% of their value over the last 52 weeks.  On December 26, 2025, SBA Communications Corporation (NASDAQ:SBAC) stock closed at $192.60 per share, with a market capitalization of $20.524 billion.

TCW Global Real Estate Fund stated the following regarding SBA Communications Corporation (NASDAQ:SBAC) in its third quarter 2025 investor letter:

“Our two worst performing securities were SBA Communications Corporation (NASDAQ:SBAC) (SBAC; 4.79%**; Telecom Tower Reits) and American Tower Corporation (AMT; 6.32%**; Telecom Tower Reits).

SBA Communications (SBAC) operates a predominantly U.S. network of macro cell towers, though with solid exposure in select international markets such as South America, Central America, Canada, and South Africa. Secular drivers such as increased data traffic domestically, increased wireless penetration internationally, and the upcoming tailwind from 5G (only ~50% of the of the coverage phase has been deployed, with high-value densification phase to follow) should result in promising organic growth prospects for the foreseeable future. Management anticipates 6% to 7% growth rates for SBAC, which should translate into 70%+ EBITDA margins through via a high operating leverage model.”

Why SBA Communications Corp (SBAC) Is Surging In 2025

SBA Communications Corporation (NASDAQ:SBAC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 35 hedge fund portfolios held SBA Communications Corporation (NASDAQ:SBAC) at the end of the third quarter, compared to 41 in the previous quarter. While we acknowledge the risk and potential of SBA Communications Corporation (NASDAQ:SBAC) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SBA Communications Corporation (NASDAQ:SBAC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered SBA Communications Corporation (NASDAQ:SBAC) and shared the list of best real estate dividend stocks to buy. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.