Earnings call transcript Q1 2023

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the American Tower First Quarter 2023 Earnings Conference Call.

As a reminder, today’s conference call is being recorded.

Following the prepared remarks, we will open the call for questions. [Operator Instructions]

to Senior call Relations. Vice like host, to now Smith, Adam President would turn over the your I of Investor go ahead, Please sir.

Adam Smith

quarter thank American And for XXXX first morning. call. earnings Good conference you Tower’s joining

posted prepared under website, our www.americantower.com. have to of Relations remarks a will the we We refer which throughout tab Investor our presentation,

our CFO center On call call, our Bartlett, an Treasurer, Tom this then businesses. our results provide tower And our QX President, these questions. up on and year U.S. President we update Executive Rod will discuss revised the Smith, morning’s will open your and outlook. and and data Vice comments, CEO, XXXX for will After full

number include that outlook; are of begin, in remind you facts. performance; India and of comments our we matters with and a I’ll other expectations historical our these regarding and Idea future allocation uncertainties. our XXXX expectations Examples that our contain collections growth, not including associated statements forward-looking regarding statements will operating Before future risks capital statements involve any that Vodafone

factors or call to these in in we make obligation contained reflect filings consider other with the forward-looking to affect Such no set aware differ update remind for press XX-K forth from may cause and these we certain expressed factors actual the the We December those factors risk materially in in year information subsequent forth the urge this SEC. XXXX, You should morning’s in and be Form results events to you future this undertake you include XX, ended that the to factors set release, us those could circumstances. that statements. earnings in our and

over to turn I’ll Tom. that, With the call

Tom Bartlett

us thanks and for Thanks, Adam, everyone this morning. joining to

of property data our will first up XX% our in profit consolidated our XX% of and focus As the call, our is business, comments XXXX. principally is of for quarter quarter U.S. tower revenue platforms, on comprised which center which our of today property my and operating first customary made

supported tailwinds decades remain lower secular consistent. With performance. applications, last regard platform, number have to growth a our and consume the more over faster through subscribers requiring the devices and that speeds U.S. of outstanding latency Every wireless year, mobile data growing tower two

a increasing of customers are more being As that consumed, towers data result on the to of levels our our demand. deploying equipment meet

service. activity ever more multiple addition, In $XX deployed before, those bands of customers U.S. around is carriers XG existing reflective which nationwide capital deliver of technology wave than on harvest provide the in coverage the and last to XX to during This provide utilizing billion amend of mid-band of and and record network spectrum. of from to In core efficiencies. are our high-quality, spectral cycles benefits the the enhancements investment over seen services sites ubiquitous and initial years, level first capacity with spectrum XXXX, major typical levels network new we’ve carriers

assets. infrastructure followed in other driven In these moderation core typically by previous reductions have spending, of initial overall in on fiber upgrades, been by in spend cycles, periods peaks part and

continuous the However, would we tower reliability. mobile seen more to we’ve look customers consumption the expect data in our remain of provide and cycle. And network support growth historically same spend quality market-leading as over focus and in XG

colocations investments see in part million nearly our the networks in year, XG absent customers of And expect X%, from since driving the a into overall we for we’ve and In in record invest yet their monetized we their full business. growth broader to churn, densification in stages having and impacts our for our on equipment initiatives, Sprint as of adding contributions making our XXXX, rollout, XXXX. scale. still QX the into early amendments, U.S. to MLAs, sites, organic These X.X% significant quarter $XXX at modifying or while of relatively strongest which investments we’re is of coverage year-over-year the to the growth continue QX

experienced over that that mirrors supportive our the the excluding performance occurs. which U.S. and strong XG least continued of average and next this average the we’ve to MLAs environment churn see or between years, cycle underwritten into densification X.X% investment underpin the is out years, expectation American the deliver in over an we growth of the expectation Looking progresses annual XXXX. as growth closely X X% Sprint several organic X% Tower, next comprehensive at organic we XXXX the In

data grow category at mobile be XX% of total speed network in to rate applications. of any is years, monthly compounded of annual increased new and require Further, impacts five from over lower driven estimates next latency industry expect the increases a mobile continuous one consumption that by which will irrespective potential to utility, suggest we set above

network As a X approach X to least roughly X need years the today’s as result, today we capacity have times networks X the capacity at we they end of our decade. times believe customers’ to will in the or provide

of our beyond initiatives, the demand to XG of tenancies on deployment today. Over refarming upgrade through new spectrum. with in been positioned spectrum portfolio equipment additional even of across customers to we XX,XXX network cycle meet our this capacity and over time, this what’s customers expect sites believe accommodate XG locked contractually our In continued significant balance optimally we and the context, serve to new and is the densification

in of efficiency AFFO. leveraging our and incremental levels increasing customers business internal done our best-in-class we generate historically, top we’ve As of conversion to both processes our growth for service to higher in line the anticipate with resulting

period. This to the operational roughly billion M&A, the expense annual less and margin incremental helped operating of our with XXXX, added and in over XXX X% and revenues to $XX of has corresponding U.S. paired roughly basis points prudent approach segment $X.X combination Canada segment growth profit cost million since expansion growth. organic to revenue nearly or in efficiency the drive property management than we’ve a in Through SG&A by

the the to efficiencies cost of established given our the at scale, and to every organization, maximize capacity on to continues returns for ability of level existing drive capital in expanding XG utilization see leverage to demonstrated high-margin a drive mature. forward, assets inherent as our landscape operating tremendous potential further benefits Going invested growth the concerted opportunity our model to and efforts we

flexibility. business our Now, to platform, and customers with performance U.S. service we serves data respect prospects enterprise the equally propel require infrastructure center about to an forward. initiatives Increasingly cloud CoreSite for optimal for enhanced complex demands integrators, creation. nexus business and excited as networks value inter-operate the CoreSite are service providers, digital their

and because way to key customers see native drives and and it which results access and CoreSite’s is by service scalable and a customers efficiency their businesses. is renewal in platforms well growth ability to with ecosystem, both CoreSite it and returns. logos, in generate their solid as to them This existing industry-leading leasing provides customers rates expanding growth interconnection strength landing pricing, flexible, to a that the continued allows driven as continue reflected in of serve cloud new We the diverse drive

vast all support. a digital that of hybrid architectures positioned of We year, in broader continue early grow CoreSite compute is the to rate instances at approximately transformation of stages workloads new in the and Each environments into also IT deployed majority that XX% uniquely still center recognize cloud movement. to we’re data a and

continue to enterprise CoreSite agility workload transformations data we expect challenges platform growth offers. optionality, interconnection critical as operational organizations IT and center digital capabilities hybridization the from long-term Additionally, that generate that management require face to -- and our

behind demand the type the drives further this Importantly, the provide interconnection customers. incremental of we flywheel of CoreSite absorption and and ecosystem to the our on value momentum can value our builds

our have benefit of select we the tail opportunities being So, see opportunity to are ecosystem. to campuses, we and able of to added long growing that and accretive a our continue scaling prudently

segment cash As the we’ll a for generated customers into returns. business, result, flows our in generate provide center invest incremental and continue confidence runway back the growth a highly attractive with long in CoreSite to data

platforms for Meanwhile, of leading and the real that position to alike. value solutions incremental shareholders future American networks and working combined Tower the leverage develop our our communications our a customers continue provider infrastructure for teams as estate create to

represent and are come. and that customers long-term the our center differentiated our U.S. managing value and Tower growth they the U.S. proposition summary, tower center both American our for of for platforms data years portfolio and for create deliver high talented nature In the many to foundational teams the high-quality tower interconnection them significant incremental returns. to platform, to believe our shareholders the continued We set tailwinds, seasoned uniquely positions secular strong value data and industry our

Rod? hand to QX balance that, over the results With expectations for and of the our I’ll Rod year. to discuss the call

Rod Smith

you Thanks, for Tom. call. today’s Good And joining thank morning.

are we across a release, key to our expectations year of many performance with saw As start our press you in exceeding metrics. to solid our off initial the

Before for diving I’ll a and start few highlights into the from the XXXX, quarter. outlook revised results the with

despite stability and First, our favorable of business. demand volatility, growth is drive resiliency footprint, to macroeconomic across our trends leasing the global ongoing and testament continue a to strong which

colocations roll customer amendments growth growth In of X%, This our to over leading carriers our as X%, QX, to basis-point organic out posted years, aggressively tower networks and to in and portfolio their rate XXXX since demand. three through QX continue over consolidated compared includes to we XXX of an billings leverage of XXXX. highest macro our meet as tenant acceleration highest over

complemented further as another from by scale international strong accretive was to volumes opportunities customers across we development quarter growth of our attract and build to leasing continue leading capabilities Organic our leverage new business. our

what record-breaking XXXX of had from our record leasing the plan. Finally, continuing quarter underwriting a we and was from another momentum exceeding CoreSite, initial

management the XXX Complementing of inherent of to trends, in points as drove year our the expansion the to last with absence our leverage material XX.X%, the solid M&A. margin on of model, tower QX cost line compared benefits approximately more given noticeable with focus being operating top basis combined

profile. maximizing profitability forward, business reoccurring our with growth strong of Going manage to our continue organic cost discipline, the we’ll

$X.X secured the from more we business, remainder billion and together Next, maturities used access down from the the notes floating our pay in sale issuing billion offerings terms. Mexico unsecured Proceeds capital to these $X.X the the rate in proceeds of strategic attractive QX were debt. and cover initiatives, various at notes Fiber markets, with debt including than successfully

continue to our we’ve of course XX% million the result, by debt nearly evaluate now further balance opportunities structure. manage our year-to-date, reduced We’ll a slightly the balance over representing to over year. As this of $XXX floating

remain investors we portfolio outcome assess we options profile our with to have continue discussions global American and Finally, We as maximizes our its and return for India mix constructive value the risk-adjusted potential business. an and Tower for optimizes stakeholders. focused executing on strategic that

forward, will move As developments. new any informed keep of we we our investors

slide turn and to tenant billings I’ll for our organic review please and quarter. that, the revenue With X, property growth

growth was data X% international on prior our X% approximately over revenue year property fluctuations, As over the revenue property over you consolidated over and the of This in U.S. X%, could neutral X% basis Canada of see, included QX period. center business. growth an XX% growth and X%, excluding or FX nearly approximately and U.S. currency growth impacts of

benefited quarter, payment approximately in accelerated $XX In half million, from second by settlements reserves or revenue we $XX to XXXX. of Vodafone improvement the to compared million, offset representing Idea totaling of America, decommissioning-related trends partially as the VIL, Latin modest approximately a

a overall since Moving highest which tenant X.X% mentioned, XXXX. billings side to our I quarter as a our on at basis, of organic QX growth, the right standing revenue of significant growth slide, to the was contributor was consolidated

and organic tenant growth quarter nearly a a reported nearly compared to segment, the and growth and contributions billings as increase In X.X% amendment in X% of absent growth colocation Canada QX including record nearly Sprint-related million, was $XX XX% our of XXXX. churn, of U.S.

by X.X% extent, tenant operations of driven delays commencements in still across we which nearly of over from acceleration churn, basis-point a across QX XXX and some various expectations, new generating benefits year our CPI-linked business XXXX, reported Similarly, which organic of all improvements segments, exceeded the billings modestly experienced our escalator includes occur contracts. growth the lesser anticipate upside. in to to Growth and, international

and which escalator contributions Africa in billings churn, highest generated some including nearly over organic XX% of to record delays previously a in business benefited X%. on from still new of consolidation-driven the of quarter continuation growth year. quarter of solid occur tenant with expect we its the in communicated XX.X%, Growth carrier

region. our in relatively the been on including on from portfolio later monetize partially saw the decommissioning vast over X.X% initial consistent new year. America, escalator demonstrating relative expectations continued Turning in the Churn events we growth, ability majority offset as the quarter delayed of In which of escalations, and the elevated growth favorable business and a as a across of to by we X.X%, to to Europe, have calls. our was we’ve past X% CPI-linked Latin churn, escalators slightly our includes in growth to highlighted the saw

we the on X,XXX nearly sites, Pacific, the remained growth the double sites of XX% ramp QX consecutive over quarter saw construction tenant needs Asia with growth X,XXX was up was their to in Pacific, This as carriers X.X%, by of mainly Lastly, as in over yielding primarily in one. coverage digits exceeding a growth Africa quarter, acceleration sites XXth densification colocation carriers three solidly past network representing further in our by Asia driven continue complemented returns XG contributions of across billings and improvement demonstrating quarters. Organic deployments. steady and in invest regions. the the Initial amendment day and constructed

EBITDA nearly Adjusted to FX-neutral quarter. for an grew X% basis on X. slide billion to XX% nearly approximately or $X.X the Turning

SG&A controls, cost remarks, by allowing mentioned XXX in our on X.X% year-over-year Again, both demonstrated still VIL-related total property conversion in cash, improvement and growth. approximately XXX% basis-point to of through points opening This was XX revenue revenue as adjusted of on focus I bad expansion basis normalizing year-over-year down revenue an improvement basis when EBITDA margin to and normalized a approximately approximately basis-point India. debt margin EBITDA achieved quarter. adjusted percent VIL a continued an my reserves As to for periods the and XX.X% approximately for XXX driving over of

primarily headwinds the AFFO while rise flat X.X%, year. roughly right growth against the X.X% cost around which share per attributable attributable slide. growth, was the per AFFO in Moving basis, on respectively, financing a over Attributable rates X.X% driven side and of to AFFO and includes the by of share past

to Let’s full our revised outlook. year now turn

quarter, across metrics. mentioned a first key majority outperforming strong of expectations the earlier, As initial had our our we

which core date year and are assumptions we have our year million performance, some prior results for excited years. consistent our to the largely position sustainable revenue to I relatively and trends demand consistent the of QX assumptions the This alluded VIL-related also about includes While year. reserves, the early we the we’ve kept timing to around earlier. benefits our underpinned approach past guidance in held our and $XX that given This for guide, is our to at full

improvement approximately we’ve record guide in XXXX, the noted in in notably in of back earlier, This As for relative the of our to risk million certain for with duration where by XXXX. assessment, our supported including half in the VIL assumption did half. contractual considered contractual the year, improvement committed QX reserves VIL the latest we $XX QX by applying an conversations is the demonstrated and that a to they’ve factors in customers’ second the with obligations, payments these management, customer obligations meet

methodology the level. FX our below EBITDA fiber several standard and include Key the upsides AFFO updates using to sale of the Mexico, adjustments together with attributable outlook from at revised from our recent business the derived the impacts in small

the let’s numbers. dive into With that,

X. Turning slide to

for We outlook, of property million million offset expectations positive $XX versus driven of fiber in prior $XX associated business FX. impacts the by the reducing are approximately related by with revenue partially million the Mexico, our sale by $XX to our

slide X. to Moving

coming further reiterating our quarter We from tenant assess into prior momentum we the first we’ll across as positive organic and continue billings our growth year. outlook to regions, for are strong expectations work our the

slide to on Moving XX.

of our FX. $XX positive offset $XX outlook a by We impacts million Mexico million with from of related adjusted to the Fiber are reiterating EBITDA decline approximately sale,

Turning XX. to slide

at moving Mexico $XX isolated midpoint driven favorable a compared the decline net the approximately per to FX, expectations, debt pay by On some the proceeds from Mexico in part the savings. cash offset basis, sale, AFFO share. use outlook attributable million to raising the per prior an midpoint. to include aside to cash sale our common our AFFO $X.XX and tax Updates the to midpoint reduction due basis, resulted by to for stockholders a are We in attributable down share by adjusted $XX interest $X.XX sale million the and as Fiber of on to our expectations Fiber EBITDA

priorities Moving on slide, a XX. the allocation priorities on outlook, towards sheet Beginning review XXXX. our Board allocation left remain XXXX on common our subject to per our capital basis. balance includes for I’ll prior representing share slide dividend, the growth side which to and consistent of year-over-year capital for approximately billion $X with our XX% approval,

remain international our midpoints our all across and new approximately plans categories across sites CapEx support addition, construct outlook footprint. In our unchanged X,XXX initial to

we as our to three to further of side investment-grade slightly strengthened to And the I XX%. years, six the in rate earlier, balance the profile months first balance Moving average slide. debt extending our highlighted right the floating while of year, nearly over our reducing sheet maturity

approximately Additionally, towards track of our with we the to X quarter closed of on X.X deleveraging net X times. leverage target times, well

Consistent our CapEx we value of floating balance a and through sources accretive debt pool further and managing strengthening program extend growing maturity ongoing focused of through liquidity, our dividend sheet term past market potentially rate to on profile. with while conditions maximizing capital shareholder our an driving remain remarks, out diverse and our assessment deleveraging,

accelerating portfolio its deploy our continue of leasing XX steps capabilities by projects. our assets across to strengthening while another business strong communications to incremental QX capital Turning us quarter an afford in Underpinned accretive partner opportunities taken summary. footprint, demand with growth, our and to across as sustained slide to was trends generated towards balance our and our leading sheet. global infrastructure development operator high-yielding

solid across term. trends We over our by to growth, to are positioned footprint well secular global we compelling shareholders long deliver and our believe supported returns attractive the drive

line we open for operator, the that, can questions. With

Operator

go Brett of the [Operator Instructions] We’ll go ahead. to Please Feldman. line

Brett Feldman

some there Mexican there? on sale I about that just if background What you came something a then this. shopping, to inbound led approach actively can was take And ask to of the fiber I was higher-level hoping were Was asset. that? an the or maybe we that

equity You evaluating business. you’re a gave potential and update considering the in India us an sale

you’re was range? a the proceeds sold especially if And target do undertaking is just getting that or think where strategy? we business. your you those close piece some of You portfolio the to your you. pull India, you rationalization additional Mexican if it how that leverage even case Thank Are in, proceeds broader would a applying end of high now about just

Tom Bartlett

and I’ll can assets on Brett, of obviously better our every places start, continually, can reallocate look Rod at Hey add Yes. repeatedly. We our rates we looking capital. drive, are there at us also of And that return you’re for here. one the markets best are where in to

it’s is an ongoing internally. we so, And that do this -- process

of in We and of well. Mexico, business had we that kind just our better of a somebody And we’ve business And fiber for with expected. broader had we’ve it in that couldn’t on Board was felt with also returns -- year every do the could as a the that initial it the had that part had marketplace. hands that of -- better particular the platform And years, really approach. in was we we had extension several who generate that piece scale business kinds our the we’ve in business be would be innovation

review, last the was months. a we’ve it And marketed ongoing so, of actively that of kind business several result a over our as

India, market, products place a a that again, And have. be this to capital goes that or of in And as and we’ve services. better look same about in in given that we like of like invest at, other okay, talked kind past. able some we there market we’re to It how approach about is reallocate the even India, is disciplined thinking through consistent with each

the we’ve we’re on our Rod as process will perspective I about to that. the that’s through kind to, fiber, goal right we’re sheet next XX so, continue with. to from from balance months fiber those you call sheet And going the right And delever, talked really at look get that we it we did and the last it do we now, balance I talked mean, with the look really And XX just proceeds to is comfortable over to we to and a a with And use we’ll now. until delevering that of spot the as about all. sale

Rod Smith

of Brad, there. points if add Thanks question. I could the for just a couple

to here, we to see leverage the you reduce course, dividend pay and down our of this delever, numbers we not debt, debt, around X.X%. investment-grade really that XX% capital exposure actually get we’re down to delever. top of but we environment, to our it balance the did, our the floating rate in quarterly from got comes did as that And proceeds the to business use dividend shows to And constant, to You just we in our which to down definitely have. That’s and that paying number. allocation sheet commitment the growth looking when beyond our once list fiber

And And we delevering our range we’re on focus to times. target the focus exposure to debt. on continuing business we’ll within rate to to reducing floating X until also of get X continue down our

So, more try we’re side coming exposure now that policy even about looking that on be XX%. to going floating the that than in right rate at we’re the to to reduce at and quarter. But working our within

active space. you’ll that in us pretty So, see

Brett Feldman

Great.

months If just get close is turns, the to It into follow-up at mind to high of you don’t range. would like being take that I as XX your mean, a to which X.X end seem XX doesn’t target question. range. it so quick

meaning you to environment, below X times to is that’s closer and to just something of say times, continue that rate and X that the just equal, to down case? pay so, may compelling, debt if particularly this all And that’s would being floating drift delever right things interpretation highly the absent statement you likely in

Tom Bartlett

Brett. absolutely, Yes,

want the the have debt to And stretch. now exposure balance go the X floating be whether rate could to we a as times, But really we to back that exactly bit get we it sheet. on of sub-X. we to clearly, lessen Rod You’re a down do And right. said, want

Rod Smith

is thing, X.X up X even function before bit, don’t alert to where I’ll quarters down. just it be you back surprised you a just coming of kind little Brett, if trending EBITDA of be the That back One our see see float in a that you the maybe will a should our make commitment that is, -- suggesting you delevering that end as think it back EBITDA it But may come you annualized our to as before it not quarterly down. touch might just see you it isn’t up back but because landing. strong flow see we’re up a is,

Operator

We’ll go next Flannery Morgan to Simon the line Stanley. of with

Landon Park

for morning. center start for Good data the This I’m is Park we taking if the Landon Thanks Simon. on questions. wondering on can side.

side, give You record on seeing project data any to center get you’re your scaling the that front? data built that us an you color of were bookings can where on on start demand you and mentioned update this the in trying year center edge out more maybe there to for another quarter what coming market terms Can And is you that from? CoreSite. in provide

Tom Bartlett

Yes, sure.

demand digital between or enterprise start, can to me the what be the accounts, really throughout operators To the can then the just a nice of cloud. XXXX. -- And kind have mean, we as that infrastructure to continues well as it’s country. continuation in continue between for strong and Let balance it. -- we saw I Rod, add the of you from continue --

continue strong interconnection drive actions remains the the year, pricing healthy, able capture we and throughout been So, really as growth. to all the particularly have pipeline of taken and to the some we’ve really advantage opportunity

QX, that business the again what has of expectations for really done, team the with to forward. pleased we it the have strong resulted really generated, we’re and strong they’ve and really really So, going in a business with types continue

to of identifying X where meg all work to edge power. can kind With particular regards locations on we of continue X the of we or drive internally actually work, meg

to We shovel-ready that have and this point, are them. a looking at we’re move on number of sites

have the think to service continue players and that one can hyperscalers value continue the be all we to of forward us. all well proposition out all that figure operators and profitable conversations We to as for with the move a cloud as

to as we’ve but early so, opportunity. stages said, about it, remain And continue excited of it’s still ultimate the really we

Landon Park

in And this edge and think, for to easily relatively sort something Where are that going just could the phase forward? center one year you that you guys that. I were follow-up that design at on of design terms of be hoping, scaled data

Tom Bartlett

we on to out that, as a shovel-ready really perspective, From a design well such and locations have before, deploy I couple start we’re of specs really it. the said to engineering laid

And so, to the of have the who know exactly that it. teams and look lot be going are what vendors the to of pieces a it’s going resources identified are providing like,

overall far really we’re design. so, along And on the

Landon Park

cost What for per does the like megawatt look that design?

Tom Bartlett

can know don’t give time. I in more we deploy When that -- overall and point give as at to to it this -- economics. I it, into get ready want we’re specifics roll we’ll the more to

Operator

the with James. Raymond to Prentiss line next Rick go We’ll of

Rick Prentiss

follow bit Fiber Brett’s little to question on want the everybody. on Mexico Good Thanks. sale. a up morning, I

you deeper there. that into lessons go Let’s learned what

I and dramatically you specifically you than it hoping a fiber I business cell. U.S. think business is the were small some just different got what And playing. question. learn? that small But weren’t the But is did cells to see power

Tom Bartlett

Mexico consistent to we money, of and is Region came we’ve at Mexico difficult thought But to candidly it densify make in to might of particular enterprise be it providing some and and it’s deploy to in was then interesting we just as continue it our and to just customers those IX right thousands that retail the what and in have had City, the particular sites to to us, do in or very with and how still is. City Rick, able we side, circuits the how provision experiences unique. to itself. asset also assets and interesting the in That of lit with learn business, accounts which services we things competitive the on remains very be tens past able differently

And them, There’s a with a competition manner. maintain the be amount to the very SLAs tremendous that go along of in it to in them is profitable how difficult able marketplace.

makes And they see all of just for with success particular it those we our of the hands find particular XX/X. That’s dunk more sense slam capability a to does when that’s for because business really But as tower. that us of we a the for markets, kind including fiber us U.S., bringing so, is in in of what fiber the just capabilities in that will somebody result, opportunity it’s consistent hopefully, there’s capacity the the to the put think and obviously a where And an it site. you’re improving there. that

the get start retail for us low when a competitive, into that opportunity to out it’s sense aspects just it made to move of So, such we it. intensive, margin of just capital it,

Rick Prentiss

debt your good rate and to reduce interest. this floating some In environment, save

On private U.S. in talk of to to as of towers going lot edge. as a to what carriers that aggregate you the are but get heard your the we’ve touched are do been we you networks before but can the slowly, some spectrum kind that percent ramp, think of have update carriers. starting the us private wanting networks see with of mid-band by far And side,

on mid-band as just to U.S. touches the in gauge far seeing trying So you’re where and networks. at private as what we’re

Tom Bartlett

kind it of Yes. still that I range. is that mean, Rick, in XX%

XX% of going in higher, are basis. a coverage. on a touched. you that if Again, some Some nationwide are terms densification at of been been ubiquitous that think the will, range But largely bit There aggregate, still in that coverage some on, a largely it’s lower. I bit getting amendment-driven, are it’s pockets have

if will. well we active. MLAs versus Rod remain of type it from mentioned, comprehensive really all carriers ‘XX. us know, capital spend, And volatility, to that the the in as be as expect lower But you you protect So ‘XX our overall

while may a in expected consolidated really that. from as at bit would down ‘XX, the basis, so, And a levels different on be slowed we protected are carriers spend

On of entering yes, private say sales networks. side, see But do lot of mean the XG I into at relative there looking private I of a teams with a of kind dialogue on going more enterprises, networks. deploying is types to deployments. conversations types I wouldn’t candidly surge our private carriers, it’s different

with experimenting have and some deploying. We we’re that

XG, clearly, aspect play -- the developing significant But market. to more there’s will plays I that. think of a think, I role that come in on

Operator

of We’ll go with Michael Citi. Rollins next line the to

Michael Rollins

Thanks.

on the as performance, is both coming the to significantly three to of big sensitivity what’s ‘XX Curious these from out the decrease? guidance, if or you Just which of increase that much environment. national leasing multiyear were look outside for your include carriers? the strength following from wireless significantly how and up DISH, domestic to leasing could And activity others,

from could commentary the throw of common And second with then question, market-by-market delay I theme if of a churn. the in some just

possible what’s curious outlook causing And markets. if part a of Thanks. if so should delays more for the delays in should in to of just ‘XX terms those of help And considerate be unpack headwind something certain and those just there’s in we be XXXX?

Rod Smith

new from question. Hey, we’re that thanks the the talked environment and the colocations are and acceleration in for and seeing joining, We’ve for the Michael. U.S. Thanks about terms in seeing an of incremental Good coming the amendment. revenue morning. our in past business we from specifically leasing in numbers

really amendment track to well step-up achieve in million. had That’s which was the million colocation is revenue. about strong a $XXX about U.S. which for last $XX QX the we nice in year, on our over $XXX We So, of target million a booked incremental quarter year,

carriers we’re S. certainly. the in I that’s that. And seeing. acceleration holistic in deals the everyone So, is contributor knows U. know a most And think also is from that carriers, DISH primary the you the That environment. call big primarily and have on with the we that coming the three

but So carrier has is carrier, in does specifics through there. revenue not it go it contracted by our work with how that any what we’ll they

for no in we have growth fully variability and that. of contracted, year and there’s XX% this our revenue about So, revenue

really So, that. about good we feel

going you at talk us then that out XXXX, the And long-term through when U.S. look X% you’ve heard on average the in OTBG about

XX% as about long visibility of have revenue over We of the time colored underlying for growth. period that revenue out

we activity But So is feel good that. DISH. three the vast really the plus about of majority big that

agencies. in always the vast of other with some and our piece big and guys the the the like some range that always broadcasters, this of that in people kind majority category contribute there, have been a really they’re towers But they’ve other companies at. And local radio Certainly, U.S. is we government kind they independent use

helps churn, you our support which about did When think for rates delays we have in growth churn, quarter. the

we’re to about So, up X.X%.

quarter. where about piece. because the it’s not of And places biggest dropping U.S. noticeable, but at for in the slight in the that’s X.X% down it’s came a the churn improvement more Our probably churn, It’s Latin into America.

everyone delay. guide within in for knows Telefonica, well coming we And X%. as churn. primarily happening what’s percentage Oi as Within Telefonica what’s happening And in X Oi is from with that just the America, Mexico carriers: big two Brazil. X% points our which represents Latin in for about that is down overall had

churn the for why So we seeing That’s our Telefonica kind catch to Oi during churn for not year. well as a fully tenant organic the of up expect year. to outlook churn change you’re as the the the billings full here

do with kind up expect of to So, catch that. we

QX, for it that’s the conservative and keeping still consistent. little kind of So, we’ll and terms take tenant realistic But where being billings of really is. positive maybe benefits we’re growth organic in a our

have in in We timing around just And a even C bit. and over with our also outlook AirtelTigo elevated with Ghana. we’re the not down in year Cell full Africa moving is South just churn again, Africa changing

Operator

of line with next go We’ll Matt the Niknam Bank. Deutsche to

Matt Niknam

two, I Just could. if

VIL then, prior you and of resolved. dovetail the terms First, by that impacted on India, has or in to can is color been FX, there’s some on give obviously, may if process that reserves. interest, you year expect any where maybe this to And have more question, update when

other kind more in to are viable we to there should we of consider move maybe share roll we contemplating growth start that, onwards, XXXX target As is aspirational or as the a Thanks. past maybe AFFO type be calendar? high-single-digit per headwinds

Rod Smith

India into and Let me next hit the I’ll question. first, the then jump process

running process, the in stake we in data joint are U.S. we prior venture business as in through I call the walked center It’s that a equity we an So, process as we talked and similar very call. the European to sold on when our Tom about here and have this did. well as the

investors top to couple gone out in are that we’ve professional, So, space. infrastructure the highly the dozen large

which government Our or can a is really, connection, to investor strong connections, understands the to very the the same remain other things. all that run sell did, partner the in those transactions of has help sorts we to space goals that the has equity business, carrier that

more partner a but than just So experience to also business. capital, strategic bringing the a in willingness and be some

So process continues. that

active. think at of like list the I out got transaction we figure say here, still from and a where smaller we’ll might point, would And down this in progressing. And worked couple the dozen coming the it’s full I list to very head that look what we’ve quarter.

But in you what more like. on opportunities we’ll and kind it, We’ll of be there look see probably we there’ll work So, be we’ll And next call. as course, very decide going interest best well that the before. patient. to gone the mind, employees to there opportunistic But through kind shareholders as as it’s we we’ll what when the do, customers have be similar the of through India. of the and we’re the in of in and we’ve process update a

in -- the about jumping think you question of when guess terms next AFFO. I here the into

zero, share we than negative so growth here guide a our know AFFO per that’s growth a You less little rate. in have

the as also you but middle we to the remind finance as just you cost, the there, last And headwinds CoreSite of issuance FX. that the that highlighted, is help well really the I’ll did interest shares year financing as of business

an including year are spike interest around in X% headwind we the seeing roughly the financing for rates. pieces, So, the

reserve on We’re VIL talked roughly about that that we’re about, FX. taking, represents a seeing well. about headwind $XX headwind And as a million the that we X% that X%

good core So, for in when feels is growing in that that to you underlying year. put X% X% all business us. think together, And we this pretty the place that fact range like a

extent the international We bit new with prudent higher drive rate we that billings down U.S., growth then, a XXX the in we complement in in growth margins as another And organic X% markets, is achievable. through drop so growth drive basis or upper we points the capital little builds. we billings way. we to single-digit that tenant our with that expand tenant deployed think a We organic P&L. certainly So

need be to that with still a need we continue The go. know are Now to situation will a that VIL we items that -- there don’t We ongoing rates things exactly where to situation watch. said, that interest the watch. is few could that’s

of refinancing ‘XX risk certainly refinancing And debt, reduce get being to And to new prudent of bonds, year, floating we’ve issued under entirely. So, risk. that from exposure reduce the already in this we’re just billion new rate ahead our trying notes. $X refinancings removes and

to beginning we’re to remove at Now, look that. ‘XX

single VIL actively lot is digits great this achievable long that’s put hangs direction. as in rates kind places, that good then spot seeing trending the you all We’ve volatility, that together, a are of a customers kind of out in the kind we’re of we if India leasing we’ve site. which sort upper in so in got of as the good cooperate a and assets But that portfolio there, in certainly If bag of got rates, business. really interest favorability

So, feel of we good portfolio. really about the core performance this

Operator

Barden line America. David of next to go of with Bank the We’ll

David Barden

two, could. So if I

to Vodafone I for Idea situation. sure just make one first I this want Rod. So understand

roughly guidance rate be second run assumed the we you gave would that second expected half to And when collections you method came said to equivalent that then the what changed for that of So, half accounting a XXXX, of was -- the realized. out for would you you and rate you XX% number cash XX% XXXX. maybe and be to

then that was for reserves expected you’re had you that whole the you But almost year. yet the half then first better-than-expected which you a also actually And the said made today quarter collections. in provision,

all that’s So, I I don’t if working. how know understand

through will kind can helpful. of that super you us it and work, help if that be would how So,

distressed work the people a if growth? be, about how And in for that the there’s to wireless feel from second the then stock your field Thanks. hitting with aren’t is of you in us space, questions those comfortable lot Tom, that of And years. bonds XX-year next DISH, And then kind day as age? bankruptcy relationship? XX% are does yielding would position. The how contribute this XX% for in how would a us How as grizzled I contractual do It’s who think piece maybe some a and a you emerged low. three to of of veterans,

Rod Smith

Hey Voda. David, on take one I’ll first good morning. the

not QX, So it’s seeing our the collections our in It’s than we’re right better expectation. rate in line with that expectation.

to we the of QX thinking it. expect in about as way collection the QX into level had continue of that we’re We kind

experienced rate experienced sure not try I’m what of in QX year. slightly better QX if that we of I last we and all I’ll the collections to clarify your but QX in That detail year experienced in question, in we you. than for heard is what last

Vodafone. improvement half the collections of So compared say, let’s to we the last year, last half the of terms of in from about this first really It’s the that’s talk where year.

I the your of part improvement And as other question, happening in into the Vodafone in into expect from The later collections second year. enter we half it kind think of we an do of year. what’s this leads

quite that’s frequently. we’re of where we talk so, Voda kind to And And looking.

debt. government they’re does balance aggressively we that Voda that. working potentially clear to equity raise the -- gather way And of have little on their and equity. seen That have converted sheet seen you We on the we’ve kind work that -- for to their bit and a

and have our second India. half that good that’s We seen that’s appointment committed new reflected as payments think in is year, in do in to of Board the and a capable really the their outlook. fact of us over may Voda well. And a to we increasing You believe management

bits that’s So booked and year. $XX that we of half there pieces will and of those have the how first the in of be kind worth most realized serve in this million

Tom Bartlett

They’re have in develop drive remain strategies terms for been I that their of in they They are throughout have their a good the a partner. leadership investing Dave, to make FCC all sense them. very country to always the faith -- team network DISH, with of regards and in able the active of there requirements. to market. lot being meet

been intelligent terms out But of know strong things So that and on smart very from the speculate are I’m think, really a player very a perspective, our there network. that their you I team, they let other very strong leadership has to and of building types candidly. to really believe partner. in just strong being, I going all and they’re not how bankruptcies

David Barden

follow just could up. I if Tom,

there companies of I with think spectrum that relationships a have DISH. tower that is

some that activity-related, latter And camp. minimum rates think Is in you’re of kind are take the escalators are Some to and I such. fair that contractual say? with

Tom Bartlett

relationships with the on the And I with we’ve relationship of comfortable both really types of how I I of working I their and the U.S. number a had, -- for team between look think, in can’t for building out other a our speculate terms at But engineering a built some that entities. has network been that DISH leadership out years. other over mean them say the with respect we’ve of the their gate. And of it’s of and been with been them really would years helping tower network. cos. mutual think right strong I relationship there’s

Operator

go line Levi We’ll the UBS. to of next Batya with

Batya Levi

you you and Asian to number a you in of a presence talk will that a in bit in how markets some There be Can portfolios don’t have the maybe about of M&A? approach Europe. available seems little some currently

they if on Thank the And activity? growth the of couple And portfolio would your expect great. that could prioritize decide about carrier specifically the contributing route, interest impacts in any What your and do And a next talk to we grow growth update see of there’s outlook? question if in in terms should on years, you. you is your you one-on-one any Europe. be how would MVNO If just how growth? to second maybe you just

Rod Smith

Hey good question. Thanks for morning. the Batya,

see pricing today M&A, our we this let’s along with of quarters, look between and, months, the last we us any see compelling that it’s where moment. terms move. that you at view kind certainly region, few last is or public that, sales make region couple of the in equities, there’s And environment, is to important, there which look what’s with of require portfolio of our portfolio by the say, the us to differences in pipeline. Nothing the by a we been at tower last evaluation, there and consistent kind regarding -- couple that nothing some when course, prompt and in of in continue in that given conditions and available So we are at in see tower that’s the private would

providing And settle that we’re rate the our amount we here X us back our firmly around to we’re growing allocation getting back that of and the of ensuring to approach aggressively a and interest sure in shareholders. And things guide that making a reducing managing leverage dividend capital times time, dividend uncertainty committed then along So our with floating going below rates our reducing of we’re rates forward. a also prudent helps in. kind one is exposure,

dividend at look of the committed opportunities growth. we’re the you and totality fully dividend when So, available, to

day for capital we build yields, programs, internal towers. our our globe. Those the programs the Next, build We’ll roughly where high around the around year X,XXX -- to allocate XX% QX. come one capital this very in for NOI we at mid-teens. is number

that So, we good. really that’s feel

capital the mid-XXXs. We’re say, so. this also within million, cash produce towards or for EBITDA generation. in discussed, kind let’s in mid-$XXX They allocating margin, flow And as year some the we’ve CoreSite $XXX that’s let’s of their or it, gross number capital within our million call

that up demand we we to experienced customers quarter continue comfortably keep have sure first we’re -- this the the of record the satisfy in flow So their kind cash make back their year that capacity into reinvesting business to to year. and last of with

the I’ll and not last our below, slightly capital capital reducing and And floating below. but program that’s kind towards of call slightly here a exposure. for that highlight allocating rate they’re the again leverage our And function below materially on year year, sheet is this folks of reducing balance

that the of all but think would in would think some looking X are seen conditions When active portfolios one. think Europe. don’t very about where the yet really Asia, it, got there’s up don’t portfolios. really it Europe, we could day Europe pricing market want call that to good good and several there. buy good Europe us. backdrop different about larger be in terms that that where lining think and anything said, let’s portfolio we and next like over time in and happen do We you But terms constructive is in for And to is we’ve in With feel our We be. X there to position be a soon. we years, there, We and a if at place expect we’ve years, nothing need different we pieces interesting to any

kind think of of in lined couple again, lot Asia we our And and when different you up the of where criteria. spent met Asia, a years time in of looking and last transactions at nothing

We’re leverage, conditions, also term. balance active in to us in And counterparty any and to and We’ll country continue rate comes terms very very-disciplined like way not in reducing committed when see that. disciplined. do think near evaluations reducing pricing be and things I be to the and it sheet, major floating M&A debt you’ll

activity question, the seeing we’re good is other hit XG Drillisch a to network And build It’s think Europe. that up X&X point when build. maybe across greenfield your other then, Europe, in just full their a the about to Germany, -- center beginning of in you kind just thing ramp

them But endeavor activity year little we’ll So, excited we network out in second bit in we’re years that do we’re this support build revenue activity seeing with from in half there. of the of come. And that. certainly think their more to and see them to a a to

and guided billings at been would We’ve growth. be that that markets. us a really of the we And France board, we’re portfolio there’s position think since there achieving place. Spain which looking above support. rates again in Germany within the that our really across But X% digits counter-parties acquired a the really good then and when feel transaction for mid-single-digit set Telxius range, backdrop, upper the when about is and year, organic good think to about nice you carriers good to We single X% we a tenant those we we and growth we did in this

the from We’re the benefited that leasing. carriers in we’re activity terms seeing the of from

able and to seeing low terms networks also we’ve very we been from to is have benefited escalators the very build because in from the also negotiate. that where the churn we then And untapped which contracts work helpful. rates carriers Spain, Germany of we’re in and see contract We’re the the way demand out again, that

in ability Europe. we really good our the think good really networks are things out about in So, good about endeavors and support position build feel to our Europe. to come carriers’ we We some feel in there Europe, to

Operator

go to Markets. We’ll Brandon Nispel next with of the Capital KeyBanc line

Brandon Nispel

$XX it refresh just million guess customers. guess And for contribution was I we lease when would the line, we the of S. look at use contracts, the colo think fee agreements where Company generally terms help at peaking? guide your to million, and those a for record your I of of I highest was one you hoping my at work number help as off extends. explain the it’s And then, some us U. I the how Thanks. because in ever. provided the in fall of is typically leasing can Are use those the colo it the if in we just can imply just that us. terms the you But understanding year that us midpoint look deceleration. master contract point term of $XXX fee is

Rod Smith

be new with year. will expect next at peak between million -- $XX $XX on million from we full amendments. the That quarterly for and bids said, But you the bid, So, the to for it of year. quarters incremental be the get a terms million number see that three we correct organic we that basis number, $XX for the are colocations the that and in new do

way not work. as going off. is the it’s pretty to there So, a things though big see linear drop It we’re

right it into And here to about function differences revenue step over the you variable have quarter. too mostly get -- to little much have timing want use timing the way quarter. certain MLAs don’t that, can but fees. ability that a a see in of contracts But will have and the can the work. above that drift the So the They’re which of detail throughout kind I and you additional kind of and be then of you a the up where more right the also bit, and get is you loaded. down front-end contracts use fees

the we and in moving help some the kind that that say kind would period seeing million MLAs is transition function of of we’re of and does had with of $XXX that -- the year, I there number support a of different that kind out MLAs, that a this there bit. that

the hit So, year. again, said, of next it is the of acceleration wouldn’t year. But as off year. organic $XXX number average quarterly $XXX seeing business year. see That the that that to million and bit we lower we really U.S. in on last surprised on we’re strong terms period through everything enter XXXX. I from again XX% And continue being taper is And billings a a time the in up that if will achieve kind on the about to basis. of beginning good of little be almost kind that this the of million that that we position But feel with growth work we still hit the for tenant out full X% we revenue over we’ll a

Operator

more And That of from will we have question. Luebchow come time of Wells one for line the Fargo. Eric

Eric Luebchow

well. you of also leasing Maybe talk centers data kind growth are new tightened supply touching between continuing seeing just pricing. historically rents. push data accelerated of perform and operators to is disaggregate heard and lot We’ve continuing on to just about the quickly that there obviously, and center a really it you’re business, the Maybe could then

can think, cadence the markets. Maybe I you revenue taper seeing upgrades, densification the certain comment, in amendment starts off that the in years, the of a especially think you’re you of pockets next made spectrum mid-band how you of then as evolves And over couple of talk next that about years? some few some to

Rod Smith

data So, have. we’re that business we the excited center about very

past on-ramps and the the in customers have, facilities, their a set multiple cloud lots we extent the network facilities in say of us of it’s lots heard that you’ve assets enterprise standard a it’s that differentiated think to cloud-rich I there. of and with record on-ramps seen. lot and drive That those is and this to And cloud that everyone facilities come interconnect really networking we’ve that there’s a into helping means other companies. companies else, for multiple the these of People the interconnection. enterprise growth the that cloud,

new we’ve say, about, CoreSite And a as a talked had performance of for last record of kind full quarter-over-quarter for we where the So, continuation we bids we through also saw XXXX. prior year, that record from saw new of should QX QX from year. I year business

performance that certainly is continuing. So strong

rate it. year. And for really got business. the That’s upper Maybe than growth solidly assets. that for thinks year-on-year that business. a targets this kind underwrote of little upper That bit. that We’ve the resulted underwriting we in business last what We’ve within outperformed revenue and underwrote talked our X% XX% growth XX% growth a to But in back good in a be X% we single-digit economic set start we about that single-digit That’s higher year. we of way that should for.

and doing growth there. strong all have they’ve because interconnection within about up that customers and companies. we it networking that’s these makes these got that with really And durable, why really relationships facilities into key they’re more these the other seeing and sticky also lot revenue customers We’re a what our because represents are revenue, enterprise X.X%. really in And dependable

that is fact. So, good a really

making being that assets within our to to trying prices as market drive increasing that that contributing well, customers. but sensitive also are value in these business and we’re We’re customers the sure to also getting growth

is see the to range, is well. So, mark-to-market we which in which X% continue X% X% -- to to range, going X% cash increases

in generally in our see escalator rate churn kind We mid-single X% The that contracts, CapEx our within business, in in so $XX of within year. underlying we the X% a have right X% well escalators continues between contracts. lots of target. maintenance be revenue, range, X% to $XX digits million range a about X.X% of in the runs our of our And to target million and is in our

those performing our they’re for do almost that that the that’s assets way frankly, So, for and at us. important And those assets we’re really running the really quite gross customers. a with the way XX%. team And assets which the is are what for pleased we’re margin customers, continuing business

into wireless customers’ but to we those towers U.S. that and the performance more about are to facilities thrilled throughout companies So, also data when quite optionality base the business enterprise compute as with potentially edge the network couldn’t and think frankly, you be into the assets and and the those customers the side, that radios our provide assets outlook, our the center us edge scattered well connecting as on future closer of closer

is and the there outlook future business that really So, strong.

Adam Smith

today’s call. you Great. Thank everybody joining for

have you questions, myself If Investor free feel team. Relations or any the Thanks, out please to everyone. reach to

Operator

Thank you. your participation. you for and our ladies conclude today. does And for conference gentlemen, that Thank

You may now disconnect.

American Tower (AMT) 26 Apr 232023 Q1 Earnings call transcript