Inwit Reports 8.9% Organic Growth in Q3; Further Upside if Inflation Remains High in 2023

As expected, narrow-moat Inwit kept growing at a healthy organic pace during the third quarter. Revenue grew by 8.9% organically year over year, while EBITDA after leases grew by 10.8%, with margins expanding 100 basis points compared with last year. Tenancy ratios are at 2.12 times compared with 2.09 last quarter and 1.98 times one year ago. The company seems to be doing a good job managing its cost base, as ground lease costs per site keep declining due to land renegotiations and buyouts, which is offsetting any inflation indexation in the cost base. We maintain our EUR 10.70 fair value estimate for Inwit, and believe it is a solid play to get exposure to growing dividends (3.7% yield with 7% annual growth expected) and inflation protection.