April 29 (Reuters) - SBA Communications ( SBAC ) cut its

annual revenue forecast on Monday, as slowing wireless carrier

activity is expected to hit demand for the wireless tower

operator's communications infrastructure.

Shares of the Boca Raton, Florida-based company fell about

2% in after-market trading.

Wireless carriers are navigating an uncertain economy,

and sticky inflation has forced them to keep a tight leash on

their budgets, hitting demand for companies such as SBA

Communications ( SBAC ).

After the initial rollout of 5G networks, demand for

wireless tower operators has been slowing, even as several sites

require 5G-related upgrades.

"Carrier activity throughout our markets remained measured

in response to continued macro-economic financial pressures and

the high cost of capital," CEO Brendan Cavanagh said in a

statement.

The company now expects annual revenue to be between $2.66

billion and $2.70 billion, compared with its prior expectations

of between $2.67 billion and $2.71 billion.

Analysts, on average, were expecting annual revenue of $2.69

billion, according LSEG data.

SBA, which leases space and manages tower sites for wireless

carriers including AT&T ( T ), T-Mobile US ( TMUS ) and Verizon

Communications ( VZ ), posted total revenues of $657.9 million

in the first quarter, missing estimates of $670 million.

The real estate investment trust faces competition from

other wireless tower companies, such as Crown Castle ( CCI ) and

American Tower ( AMT ).

Adjusted funds from operations - a key measure of cash flow

- came in at $3.29 per share, about 5% higher from a year

earlier.

In the reported quarter, site leasing revenue rose 1.8% to

$628.3 million, missing estimates of $633.3 million.