Inwit Set to Close a Healthy Year With High-Single-Digit Growth

Inwit’s is a local tower player in Italy, growing organically as Telecom Italia and Vodafone deploy new equipment on existing towers and new built-to-suit (BTS) towers to cover white spots (areas with poor coverage). Inwit's customers, mainly Telecom Italia and Vodafone, have already committed to deploy more than 2,200 new towers from 2024 to 2026, with each newly deployed tower having two tenants. This, together with more colocation growth from other operators like Iliad, Wind Tre should result in tenants per tower (the tenancy ratio) getting above the 2.5 range beyond 2026. We estimate Inwit will keep deploying new capital at double-digit internal rates of return through BTS towers, distributed antenna systems, and fiber-to-the-tower projects.