COMPANY PROFILE

Global Leader in Wireless Infrastructure

Founded in 1995, American Tower Corporation, one of the largest global Real Estate Investment Trusts (REITs), is a leading independent owner, operator and developer of wireless and broadcast communications real estate. Our global portfolio includes more than 171,000 communications sites, including nearly 41,000 properties in the United States and more than 130,000 properties internationally. In addition to leasing space on wireless and broadcast towers, we provide customized solutions through our in-building systems, outdoor distributed antenna systems and other right-of-way options, managed rooftops and services that speed network deployment.

Recent Earnings

CONSOLIDATED HIGHLIGHTS

Third Quarter 2019

• Total revenue increased 9.4% to $1,954 million

• Property revenue increased 9.7% to $1,922 million

• Net income increased 33.9% to $505 million

• Adjusted EBITDA increased 12.2% to $1,229 million

• Consolidated AFFO increased 8.5% to $891 million

• Our tenants are making significant investments in their networks as mobile data usage growth continues.Acquisitions – During the third quarter of 2019, the Company spent approximately $0.5 billion to acquire 615 communications sites and other related assets, primarily through a previously disclosed transaction in the U.S. In addition, the Company spent $43 million to purchase the 243 remaining towers under its previously disclosed sublease agreement, as amended, with ALLTEL Communications, LLC, a predecessor entity to Verizon Wireless.

• $5.2 billion of total liquidity, consisting of $1.4 billion in cash and cash equivalents plus the ability to borrow an aggregate of $3.8 billion under its revolving credit facilities, net of any outstanding letters of credit.

• GUIDANCE

  • The Company is raising the midpoint of its full year 2019 outlook for property revenue, net income, Adjusted EBITDA and Consolidated AFFO by $180 million, $145 million, $180 million and $5 million, respectively, as compared to the Company’s outlook issued on July 31, 2019. The increases in property revenue, net income and Adjusted EBITDA include approximately $167 million in additional straight-line revenue as a result of the Company’s new MLA with AT&T.

Opinion

From a factor scoring perspective versus the other 199 brands in the brands index, here’s where AMT scores well as of 12/10/19:

• 93% high 3yr dividend growth

• 85% high operating margins

• 90% high sales surprise last quarter

• 71% high FCF growth

• 71% high 3YR sales growth

American Tower operates in a pretty boring business but wow is it vital to our ability to communicate via mobile phone. AMT has annual double-digit growth in demand for wireless connectivity and a growing international presence will continue to field long term growth. Given how large and powerful they are in the industry, they continue to have a negotiation advantage for signing leases with with cellphone companies. It’s a bit like needed gas on the highway, you have to pay what they want or run out of gas. That’s quite a competitive advantage. Just look at their coverage map above, there’s plenty of room to grow and add more towers, particularly as more data is used, more cap-ex will be spent and AMT is a key beneficiary. The stock is extremely expensive but the recurring revenue is north of $40 billion last I checked. And I love a good dividend growth stock and this puppy has raised its dividend every quarter since 2012. I’ll buy any dips I get to keep beefing this position up.