American Tower Corporation’s AMT shares have gained nearly 4% in today’s trading session in response to stellar first-quarter results.
Its first-quarter 2025 adjusted funds from operations (AFFO), attributable to AMT common stockholders per share, of $2.75 beat the Zacks Consensus Estimate of $2.60. However, the figure declined 1.4% year over year.
Results reflect a year-over-year rise in revenues, aided by revenue growth across its property and service operations segment. American Tower recorded healthy year-over-year organic tenant billings growth of 4.7% and total tenant billings growth of 5.2%.
The company’s total revenues were $2.56 billion, outpacing the Zacks Consensus Estimate of $2.51 billion. The figure increased 2% from the prior-year quarter.
Per Steven Vondran, CEO of American Tower, “Together with the resilient demand we’re seeing for our portfolio of assets, we remain focused on enhancing the quality of our earnings through active portfolio management, organizational and operational efficiency, disciplined capital allocation and a strong balance sheet, positioning us to better navigate ongoing macroeconomic uncertainty while continuing to meet our customers’ critical connectivity needs. Taken altogether, our business is well-positioned to drive profitability and sustained value creation for our shareholders for years to come.”
AMT’s Q1 in Detail
Adjusted EBITDA was $1.74 billion, up 1.9% from the prior-year period. The adjusted EBITDA margin was 68.1%.
American Tower spent approximately $148 million to acquire 242 communication sites, including 145 sites in the United States and 97 sites in Europe.
The company, through its subsidiary ATC South Africa Wireless Infrastructure Proprietary Limited, completed the sale of its fiber assets in South Africa for a total consideration of 2.5 billion South African Rand (approximately $137.7 million at the date of closing), resulting in a gain on the sale of approximately $53.6 million.
Property Operations of AMT
Revenues were $2.49 billion, up marginally on a year-over-year basis. Total operating profit was $1.77 billion and the operating profit margin was 71%.
In the Property segment, revenues from the United States and Canada totaled $1.30 billion, down nearly 1% year over year. Total international revenues amounted to $946 million, down marginally year over year. Data Centers added $244 million to Property revenues, up 8.4% from the prior-year period.
AMT’s Service Operations
Revenues totaled $74.6 million in the quarter, rising significantly from $30.2 million in the prior-year quarter. The operating profit was $33 million, and the operating profit margin was 45% in the January-March quarter.
Cash Flow & Liquidity of AMT
In the first quarter, American Tower generated $1.3 billion of cash from operating activities, rising 0.9% year over year. Free cash flow in the period was $955 million, jumping 8.3% from a year ago.
As of March 31, 2025, the company had $11.7 billion in total liquidity. This comprised $2.1 billion in cash and cash equivalents and the availability of $9.6 billion under its revolving credit facilities (net of any outstanding letters of credit).
AMT’s 2025 Guidance Raised
American Tower anticipates total property revenues of $9,970-$10,120 million, up from the earlier guided range of $9,920-$10,070 million.
The adjusted EBITDA is revised to $6,885-$6,955 million, up from the prior projected range of $6,855-$6,925 million.
The AFFO attributable to AMT common stockholders is now expected to be in the band of $4,850-$4,940 million, up from the company’s prior expectations ranged from $4,830-$4,920 million.
AFFO, attributable to AMT common stockholders per share, is revised upward to $10.35-$10.54 from the prior projected range of 10.31-$10.50. The Zacks Consensus Estimate for the metric is pegged at $10.41, which is within the company’s guided range.
AMT currently carries a Zacks Rank #3 (Hold).
American Tower Corporation Price, Consensus and EPS Surprise
American Tower Corporation Price, Consensus and EPS Surprise
American Tower Corporation price-consensus-eps-surprise-chart | American Tower Corporation Quote
Performance of Other REITs
SL Green Realty Corp. SLG reported first-quarter 2025 FFO per share of $1.40, which surpassed the Zacks Consensus Estimate of $1.27. The company had reported an FFO of $3.07 per share in the year-ago period.
Results reflected improved average rental rates on the Manhattan office leases signed in the period and higher same-store cash net operating income (NOI). However, elevated interest expenses undermined the results to some extent. Presently, SLG carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Healthpeak Properties, Inc. DOC reported first-quarter 2025 FFO as adjusted per share of 46 cents, meeting the Zacks Consensus Estimate. This compares to the FFO of 45 cents reported in the prior year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Results reflect better-than-anticipated revenues. Growth in total merger-combined same-store cash (adjusted) NOI was witnessed across the portfolio. However, higher interest expenses affected the results to some extent. Currently, DOC carries a Zacks Rank #3.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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