Billionaire Paul Singer’s Top 12 Long-Term Stock Picks

5. Uniti Group Inc. (NASDAQ:UNIT)

Elliott Management’s Stake Value: $57.08 Million

Elliott Management First Major Purchase:  2017

Number of Hedge Fund Holders: 31

Uniti Group Inc. (NASDAQ:UNIT) operates as a real estate investment trust focused on acquiring and constructing mission-critical communication infrastructure. It is also a leading provider of fibre and other wireless solutions for the communication industry. While the stock is up by about 2.21% for the year, underperforming the overall market, it has had to navigate a challenging market environment.

The high interest rate environment has been unfavorable for the real estate sector. It has affected the number of deals companies can close owing to high mortgage rates and reduced consumer purchasing power. Nevertheless, Uniti Group Inc. (NASDAQ:UNIT) has remained resilient, going by the solid third-quarter results delivered on October 31, 2024.

Revenues in the quarter totaled $292 million, which was helped by a 3% growth in the strategic fibre business. Net income in the quarter totaled $11.9 million as AFFO attributable to shareholders came in at $87.1 million. The better-than-expected third-quarter results came as Uniti Group Inc. (NASDAQ:UNIT) continues to experience solid demand for its mission-critical fibre infrastructure with consolidated bookings of $1 million.

Uniti Group Inc. (NASDAQ:UNIT) is concentrating on increasing its fibre coverage and taking advantage of the expanding broadband market in light of the threefold increase in bookings from fibre-to-the-home carriers and the substantial demand from hyperscalers. The planned merger with Windstream is proceeding as planned and is expected to strengthen its position as a market leader in the fibre business.