Post Earnings Coverage as American Tower Revenue Jumped 20.3%; AFFO Climbed Approximately 21%
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LONDON, UK / ACCESSWIRE / March 15, 2017 / Active Wall St. announces its post-earnings coverage on American Tower Corp. (NYSE: AMT). The Company announced its financial results for the fourth quarter fiscal 2016 and full year 2016 on February 27, 2017. The wireless communications infrastructure Company's earnings surpassed market expectations. Register with us now for your free membership at:
One of American Tower's competitors within the REIT - Diversified space, Vornado Realty Trust (NYSE: VNO), reported its financial results for Q4 ended December 31, 2016. AWS will be initiating a research report on Vornado Realty Trust in the coming days.
Today, AWS is promoting its earnings coverage on AMT; touching on VNO. Get our free coverage by signing up to:
For the quarter ended December 31, 2016, American Tower's total revenue of $1.54 billion grew 20.3% on a y-o-y basis, but missed analysts' consensus estimates of $1.55 billion. During the reported quarter, the Company's property revenue grew 21.6% to $1.52 billion, while adjusted EBITDA grew nearly 17% to approximately $936 million.
For Q4 2016, American Tower's consolidated AFFO increased by nearly 21% to approximately $655 million and net income attributable to American Tower Corporation's common stockholders decreased approximately 2% to $202 million, or $0.46 per diluted common share. This decrease was primarily attributable to a higher income tax provision compared to the prior year, which was resulting from a gain which the Company realized associated with its newly formed European joint venture with PGGM. AFFO attributable to American Tower's common stockholders per share was $1.47, up 16.7% on a y-o-y basis. AFFO also came in above market estimates of $1.42 per share.
From a full-year perspective, American Tower's total revenue surged 21.3% to $5.79 billion. The Company's property revenue grew approximately 22.1% to $5.7 billion, while adjusted EBITDA grew by nearly 16% to approximately $3.55 billion. American Tower's consolidated AFFO increased by nearly 16% to approximately $2.49 billion and net income attributable to American Tower Corporation's common stockholders increased by approximately 43% to $849 million.
Capital Expenditures
During Q4 2016, American Tower's total capital expenditures were $212 million, of which approximately $47 million was for non-discretionary capital improvements and corporate capital expenditures. For the full year 2016, total capital expenditures were $701 million, of which approximately $127 million was for non-discretionary capital improvements and corporate capital expenditures.
Acquisitions and Other Transactions
During Q4 2016, American Tower spent approximately $106 million to acquire 108 sites, primarily in its existing international markets, and Comunicaciones y Consumos, S.A. (CyCSA) in Argentina, a new market for the Company. In December 2016, the Company finalized its entry into a joint venture ("ATC Europe") with PGGM. In addition, during the reported quarter, ATC Europe entered into a definitive agreement to acquire FPS Towers in France, a new market for the Company. The FPS acquisition closed on February 15, 2017. As a result, the Company now operates in 15 countries. For the full year, the Company spent $1.4 billion to acquire over 43,000 communications sites, primarily in the Company's international markets.
Leverage and Financing Overview
For the quarter ended December 31, 2016, American Tower's net leverage ratio was approximately 4.7x net debt (total debt less cash and cash equivalents) to Q4 2016 annualized adjusted EBITDA.
As of December 31, 2016, the Company had approximately $3.6 billion of total liquidity, consisting of approximately $0.8 billion in cash and cash equivalents plus the ability to borrow an aggregate of approximately $2.8 billion under its revolving credit facilities, net of any outstanding letters of credit.
Subsequent to the end of Q4 2016, American Tower borrowed an aggregate of $1.0 billion under its credit facilities. These borrowings were used to fund the Company's FPS acquisition in France, the redemption of all outstanding 7.25% senior unsecured notes, the repayment of all amounts outstanding under certain securitized notes assumed in connection with prior acquisitions and for general corporate purposes.
Dividend Declared
In a separate press release on March 09, 2017, American Tower announced that its board of directors has declared its quarterly cash distribution of $0.62 per share on shares of the Company's common stock. The distribution is payable on April 28, 2017, to such stockholders of record at the close of business on April 12, 2017.
Outlook
For FY17, American Tower is forecasting property revenue to be in the range of $6.21 billion to 6.39 billion, with the midpoint growth of 10.3. The Company is expecting net income to be in the band of $1.18 billion to 1.25 billion. American Tower's consolidated AFFO for 2017 is estimated to be in the range of $2.70 billion to $2.80 billion.
Stock Performance
On March 14, 2017, American Tower's share price finished the trading session at $114.02, slightly sliding 0.21%. A total volume of 1.42 million shares exchanged hands. The stock has surged 10.80% and 18.00% in the last three months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have gained 7.89%. The stock is trading at a PE ratio of 57.61 and has a dividend yield of 2.03%.
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