American Tower CorporationNYSE
American Tower: A True GARP Opportunity
Dane Bowler • 11 Comments
Dane Bowler • 11 Comments
Fri, Nov. 11, 11:16 AM
- With the presidential election providing reheated speculation about the prospect of a merger between Sprint and T-Mobile, infrastructure firm American Tower (AMT -1.2%) took the opportunity to release data on its relationship with the two companies.
- In the just-past quarter, Sprint accounted for 10% of property revenues at American Tower, and T-Mobile 8%, the company said.
- AMT has separate leases for antenna space on the same site at about 5,500 sites. The revenue generated from each of those companies on those sites made up 4% of consolidated property revenues.
- The average non-cancellable lease term on those sites is about five years.
- Declines over the past three months have trimmed YTD gains for American Tower, which now stand at +7.9%.
Thu, Oct. 27, 10:08 AM
- Along with earnings today, American Tower (AMT +0.8%) announced a joint venture with Dutch pension fund manager PGGM to pursue real estate investment opportunities in Europe.
- The JV, ATC Europe, will be 49% owned by PGGM while American Tower will retain operational control and day-to-day oversight.
- “We believe that the combination of PGGM’s long-term investment philosophy and extensive knowledge of the European landscape with American Tower’s proven track record of investing in and operating telecommunications real estate assets will establish a compelling platform for future investment opportunities," says American Tower chief James Taiclet.
- American Tower will contribute its German assets to the JV at closing time.
- BofA Merrill Lynch is advising American Tower, and the deal is expected to close by year-end.
Thu, Oct. 27, 7:02 AM
Wed, Oct. 26, 5:30 PM
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Wed, Sep. 28, 7:46 PM
- American Tower (NYSE:AMT) has priced a debt offering of $1B, in two tranches.
- The company is offering $600M in senior unsecured notes due 2022, at 2.25% interest, issued at 99.858% of face value. It's also offering $400M in senior unsecured notes due 2027, at 3.125% interest and a price equal of 99.933% of face value.
- Net proceeds are seen at $990.6M, which will be used to pay indebtedness under its October 2013 term loan.
- BofA Merrill Lynch, Citigroup, Credit Agricole CIB, J.P. Morgan and Morgan Stanley are joint book-runners.
Mon, Sep. 19, 11:57 PM
- AT&T (NYSE:T) looks to be working behind the scenes to cut the rates it's paying for space on cell towers, with the implication that it could switch to competitors' spaces to make it happen.
- Letters seen by FierceWireless show AT&T pressing tower operators for new terms, and in some direct language asking for lower rates. An AT&T spokesman tells them that the company's execs are "frustrated with the current tower cost structure and believe it is not sustainable."
- In one case AT&T pursues early termination rights, the chance to modify equipment without additional cost, reduced (or no) annual escalators on the rates, and simply "rents reduced to competitive rates."
- "A ‘no’ or non-response will trigger AT&T’s review of alternate locations,” the company says at one point.
- Tower players: AMT, CCI, SBAC, CSAL
Fri, Sep. 16, 5:04 PM
Tue, Sep. 13, 5:00 PM
- SunTrust Robinson Humphrey launched bullish coverage on wireless tower operators, looking ahead to a number of growth drivers coming over the next year.
- The firm initiated American Tower (AMT -2.8%), Crown Castle International (CCI -2.2%) and SBA Communications (SBAC -2.3%) with Buy ratings.
- Continued intensity in wireless competition should see capital spending by AT&T, Verizon and Sprint picking up, says analyst Greg Miller. "As we look forward to 2017, we believe the outlook is relatively brighter. U.S. carrier activity remains stable at historically low levels, but a number of growth drivers — new spectrum deployments/re-farming, 5G trials and FirstNet, for example — could modestly re-accelerate growth for the group."
- Carriers will need to continue to spend on networks, he reasons, as the risks of standing still are just too high.
- SunTrust's price target for AMT is at $128 (implying 18.4% upside from today's close); for CCI, $107 (16.5% upside); for SBAC, $129 (18.4% upside).
Thu, Jul. 28, 11:35 AM
- American Tower (NYSE:AMT) is 1.3% lower off Q2 earnings where funds from operations rose 10.3% and narrowly missed consensus.
- EPS came in at $0.37 vs. estimates for $0.54, and net income rose 22.4% overall. EBITDA rose 14% to $869M, edging an expected $868M.
- Organic tenant billings growth came to almost 6% in the U.S. and about 14% internationally; growing 7.7% in total, to $76M. Total tenant billings grew 23.1% to $228M, helped by the Viom transaction in India and sites acquired from Bharti Airtel in Nigeria, and TIM in Brazil.
- It's raising its full-year outlook: Total property revenue is forecast at $5.62B-$5.71B (20.9% growth at midpoint); net income to $965M-$1.025B (48.1% growth); EBITDA of $3.5B-$3.54B (14.8% growth); and consolidated AFFO of $2.42B-$2.46B (13.5% growth).
- Press Release
Thu, Jul. 28, 7:05 AM
Wed, Jul. 27, 5:30 PM
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Tue, Jul. 19, 7:37 AM
Mon, Jul. 11, 10:09 AM
- Crown Castle International (NYSE:CCI) is off 2.2% as Citigroup downgrades the shares to Neutral following tower stocks' recent gains.
- CCI is coming off Wednesday's all-time high, and the downgrade comes following a solid run for high dividend payers.
- It's time to shift investment strategy for towers and seek cheaper assets, says Citi's Michael Rollins, who maintained Buy ratings on American Tower (AMT -0.2%) and SBA Communications (SBAC -0.3%). "Tower stocks have rallied back 9% over the last month and 15% year to date. Lower rates seem to be helping valuations, especially for Crown Castle given its larger dividend yield," Rollins writes.
- Rollins has a price target of $109 on CCI, implying 8.9% upside from today's lower price. Meanwhile, Citi has a price target of $121 on AMT (6.7% upside from here).
Fri, Jul. 1, 11:26 AM
- Deutsche Telekom (OTCQX:DTEGY) is looking to sell German mobile towers for what could come to €5B that it could use for network investments, Reuters reports.
- Goldman Sachs and Morgan Stanley have reportedly been hired to organize a sale of thousands of towers for this fall, though depending on interest Deutsche Telekom could sell all, some or none of them.
- It had previously sold its U.S. towers to Crown Castle (NYSE:CCI) in a $2.4B deal. That firm could be interested in the German sale, as could American Tower (NYSE:AMT) and SBA Communications (NASDAQ:SBAC).
- A sale of German towers would be the latest in a series of global infrastructure deals where wireless carriers shed mobile masts in order to cut debt.
Thu, Jun. 2, 4:39 PM
- American Tower (NYSE:AMT) declares $0.53/share quarterly dividend, 3.9% increase from prior dividend of $0.51.
- Forward yield 1.99%
- Payable July 15; for shareholders of record June 17; ex-div June 15.
Fri, Apr. 29, 7:03 AM
- American Tower (NYSE:AMT): Q1 AFFO of $1.41 beats by $0.11.
- Revenue of $1.29B (+19.4% Y/Y) in-line.