Oct 28 (Reuters) - SBA Communications ( SBAC ) raised

its annual forecast for adjusted funds from operations on

Monday, anticipating a steady wireless carrier activity on the

back of growing demand for 5G network.

The Boca Raton, Florida-based company also said it would buy

more than 7,000 communication sites in Central America from

telecom firm Millicom International Cellular S.A. for

about $975 million in cash.

The company said the acquired sites are expected to generate

about $129 million of revenue and $89 million of tower cash flow

during their first full year of operations after closing, which

is expected in 2025.

The companies have also agreed to a seven-year exclusivity

period, during which SBA will have the exclusive right to build

up to 2,500 new sites for the telecom firm.

The wireless tower operator is expected to benefit from

a surge in demand from U.S. carriers, as they are upgrading

their networks to 5G and increasing capacity to meet booming

data demand.

The company leases tower space to major wireless carriers

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

Communications ( VZ ).

SBA raised its forecast range for annual adjusted funds

from operations to between $13.20 and $13.45 per share, from

$13.06 to $13.43.

It now expects annual revenue to be between $2.66 billion

and $2.68 billion, compared with its prior expectation of

between $2.64 billion and $2.67 billion.

SBA's third-quarter revenue came in at $667.6 million,

missing analysts' estimates of $669.8 million, according to data

compiled by LSEG.

Adjusted funds from operations - a key measure of cash flow

- were $3.32 per share, slightly beating analysts' estimates of

$3.30.

The company's site leasing revenue for the quarter ended

Sept. 30 fell 1.8% to $625.7 million, while its site development

revenue decreased 7.1% to $41.9 million.