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1. Company Snapshot

1.a. Company Description

American Tower Corporation, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 219,000 communications sites.For more information about American Tower, please visit the “Earnings Materials” and “Investor Presentations” sections of our investor relations website at www.americantower.com.

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1.b. Last Insights on AMT

American Tower Corporation faces challenges due to foreign currency losses and slightly weaker US growth. Despite raising its 2025 guidance, driven by revenue growth in data centers and international segments, profit and cash flow declines have been noted. Verizon's expensive relocation plan may impact growth, with muted carrier activity affecting leasing revenue. The company's valuation is considered reasonable compared to peers, with lower leverage and stronger financial flexibility. (Source: American Tower Corporation (AMT) Q2 2025 Earnings Call Transcript, July 29, 2025)

1.c. Company Highlights

2. American Tower's Q3 2025 Earnings: Strong Performance and Growth

American Tower reported a strong Q3 2025 performance, with double-digit growth in attributable AFFO per share as adjusted. The company's revenue was not explicitly stated, but the increase in attributable AFFO per share as adjusted indicates a robust financial performance. The actual EPS came out at $1.82, which is lower than the estimated $2.62. The company's adjusted EBITDA margin expansion since 2020 is around 300 basis points, driven by organic growth and cost efficiencies. As Rodney Smith mentioned, "We've expanded our EBITDA margins by 300 basis points since 2020, driven by organic growth and cost efficiencies."

Publication Date: Oct -29

📋 Highlights
  • Double-Digit AFFO Growth & Guidance Raise: Attributable AFFO per share as adjusted grew double-digits, with revised 2025 guidance projecting ~7% growth, including $40M, $45M, and $50M increases in property revenue, adjusted EBITDA, and attributable AFFO, respectively.
  • Robust Leasing & Data Center Demand: Near-record services revenue and 35% YoY mobile data growth driven by 5G adoption, while CoreSite reported record retail leasing and 20-25% CAGR in international data consumption since 2020.
  • 5G Infrastructure & Portfolio Upgrades: 75% of towers upgraded with 5G equipment, supported by $1.7B in capital expenditures and 300 bps adjusted EBITDA margin expansion since 2020, with room for further margin growth via cost efficiencies.
  • Strong Balance Sheet & Share Buybacks: Net leverage at 4.9x, $10.7B liquidity, and $28M in post-Q3 share repurchases under a $2B buyback program, prioritizing capital returns alongside dividend distributions of $3.2B in 2025.

Business Segment Performance

The leasing activity remained robust across tower and data center businesses, complemented by near-record services revenue. The data center business is performing well, with CoreSite signing record retail new leasing revenue and experiencing healthy growth in larger deployments. Demand for hybrid cloud and multi-cloud deployments, as well as AI-related workloads, is driving growth. The company's tower portfolio is well-positioned to benefit from the growing demand for mobile data, with approximately 75% of its towers upgraded with 5G equipment.

Industry Trends and Outlook

The industry backdrop is favorable, with spectrum deals and carrier consolidation expected to benefit American Tower. Demand for mobile data continues to rise, with a 35% year-over-year increase in 2024. The company has increased its guidance for the year, expecting attributable AFFO per share as adjusted growth of approximately 7% at the midpoint of revised guidance. With a P/E Ratio of 29.1 and an EV/EBITDA of 20.54, the market is pricing in a certain level of growth, which American Tower is expected to deliver through its strategic priorities.

Capital Allocation and Valuation

American Tower's capital plan remains consistent, with $3.2 billion in common dividend distributions and $1.7 billion in capital expenditures. The company has a strong balance sheet, with net leverage at 4.9x, $10.7 billion in liquidity, and low floating rate debt exposure. The Dividend Yield is around 3.68%, indicating a relatively stable return for investors. With a ROE of 80.6%, the company is generating strong returns on equity. The current valuation multiples, including a P/B Ratio of 21.64 and a P/S Ratio of 8.18, suggest that the market is pricing in a certain level of growth and profitability.

Growth Prospects

The company's long-term domestic leasing growth guidance remains on track, with mid-single-digit growth expected. The growth of mobile data and the need for densification will likely support American Tower's long-term growth outlook. With its strong financial performance, robust business segment performance, and favorable industry trends, American Tower is well-positioned to deliver growth and create value for its shareholders.

3. NewsRoom

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Groupe la Francaise Purchases 7,185 Shares of American Tower Corporation $AMT

Dec -04

Source: defenseworld.net

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1832 Asset Management L.P. Lowers Holdings in American Tower Corporation $AMT

Dec -03

Source: defenseworld.net

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American Tower Corporation Prices Senior Notes Offering

Dec -02

Source: businesswire.com

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American Tower to Present at UBS Global Media and Communications Conference

Dec -02

Source: businesswire.com

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Boston Family Office LLC Cuts Holdings in American Tower Corporation $AMT

Dec -01

Source: defenseworld.net

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Doves Take The Wheel

Nov -30

Source: seekingalpha.com

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American Tower Corporation $AMT Shares Acquired by B&I Capital AG

Nov -27

Source: defenseworld.net

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AmeriTrust Announces Third Quarter 2025 Financial Results

Nov -26

Source: accessnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.88%)

6. Segments

Property - U.S. & Canada

Expected Growth: 4.3%

American Tower’s U.S. and Canada segment growth is driven by increasing demand for wireless network infrastructure, 5G deployment, and rising mobile data usage.

Property - Latin America

Expected Growth: 5.3%

None

Property - Africa & Apac

Expected Growth: 9.6%

American Tower's Africa and Asia Pacific region is expected to grow driven by increasing mobile penetration, 4G adoption, and rising demand for data services. The region's growing economy, urbanization, and government initiatives to improve digital infrastructure will further fuel growth.

Property - Europe

Expected Growth: 4.5%

American Tower's European property portfolio is driven by increasing demand for 5G network infrastructure, growing mobile data traffic, and strategic acquisitions, enabling the company to expand its tower portfolio and enhance its offerings to tenants.

Services

Expected Growth: 11.9%

American Tower Corporation's growth is fueled by increasing demand for wireless infrastructure, accelerated 5G deployments, and rising mobile data traffic, driving tower leasing and services revenue.

Property - Data Centers

Expected Growth: 11.1%

American Tower’s data center properties are poised for growth driven by increasing demand for hybrid IT infrastructure, rising adoption of cloud services, and the need for low-latency data storage and processing.

7. Detailed Products

Towers

American Tower Corporation owns and operates a portfolio of over 220,000 communication towers across 25 countries, providing infrastructure for wireless communication services.

In-Building DAS (Distributed Antenna Systems)

American Tower's In-Building DAS solutions provide reliable and efficient wireless coverage within buildings, stadiums, and other large venues.

Small Cells

American Tower's small cell solutions provide targeted wireless coverage and capacity in high-demand areas, such as urban centers and public venues.

Edge Data Centers

American Tower's edge data centers provide low-latency, high-capacity data processing and storage solutions for edge computing applications.

Fiber Solutions

American Tower's fiber solutions provide high-capacity, low-latency connectivity for wireless networks, data centers, and enterprise customers.

8. American Tower Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

American Tower Corporation has a low threat of substitutes due to the high barriers to entry in the telecommunications infrastructure industry. The company's tower portfolio and long-term contracts with major carriers provide a significant moat against potential substitutes.

Bargaining Power Of Customers

American Tower Corporation's customers, including major carriers, have some bargaining power due to their large scale and negotiating power. However, the company's diversified customer base and long-term contracts mitigate this risk.

Bargaining Power Of Suppliers

American Tower Corporation has a low bargaining power of suppliers due to its significant scale and negotiating power. The company's suppliers are largely fragmented, and the company has a strong track record of managing its supply chain.

Threat Of New Entrants

American Tower Corporation has a low threat of new entrants due to the high barriers to entry in the telecommunications infrastructure industry. The company's significant scale, long-term contracts, and high capital requirements for new entrants make it difficult for new competitors to enter the market.

Intensity Of Rivalry

American Tower Corporation operates in a moderately competitive industry, with a few large players competing for market share. However, the company's diversified portfolio, long-term contracts, and strong relationships with customers help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 91.82%
Debt Cost 3.95%
Equity Weight 8.18%
Equity Cost 7.47%
WACC 4.23%
Leverage 1123.21%

11. Quality Control: American Tower Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Crown Castle

A-Score: 5.9/10

Value: 7.3

Growth: 2.3

Quality: 5.6

Yield: 8.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
AFC Gamma

A-Score: 5.7/10

Value: 8.3

Growth: 7.4

Quality: 5.4

Yield: 10.0

Momentum: 0.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Lamar

A-Score: 5.7/10

Value: 2.6

Growth: 5.1

Quality: 6.5

Yield: 8.0

Momentum: 3.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
American Tower

A-Score: 5.2/10

Value: 1.8

Growth: 4.8

Quality: 5.5

Yield: 7.0

Momentum: 3.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Iron Mountain

A-Score: 5.2/10

Value: 4.7

Growth: 4.1

Quality: 4.2

Yield: 7.0

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Equinix

A-Score: 4.4/10

Value: 0.9

Growth: 6.0

Quality: 4.6

Yield: 4.0

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

178.86$

Current Price

178.86$

Potential

-0.00%

Expected Cash-Flows