Financial Data and Key Metrics Changes - The company raised its outlook for property revenue, EBITDA, and AFFO due to strong demand and favorable FX tailwinds [4][20] - Consolidated property revenue grew 1.2% year over year, with a more than 3% increase when excluding non-cash straight-line revenue [16] - Adjusted EBITDA grew 1.8% year over year, approximately 4.5% when excluding non-cash net straight-line revenue [17] Business Line Data and Key Metrics Changes - The US services business had a near-record quarter, with application volumes among the big three customers up over 50% year over year, driven by amendment upgrades and a 200% increase in colocations [14][16] - The data center business, particularly CoreSite, saw over 13% revenue growth, driven by hybrid cloud demand and AI-related use cases [10][14] - International property revenue grew approximately 1% year over year, with a 3% increase when excluding FX impacts [16] Market Data and Key Metrics Changes - In developed markets (US, Canada, Europe), mobile traffic growth rates are expected to slightly outpace global averages over the next five years [6] - The Africa business showed robust growth due to stabilized lower churn and better consumer pricing, while Latin America is expected to see low single-digit growth through 2027 [9][10] - The company anticipates a modest increase in its outlook for Latin America due to improved market conditions, although challenges remain [10][78] Company Strategy and Development Direction - The company remains focused on capital allocation strategies, prioritizing funding for CoreSite and maintaining a disciplined approach to capital expenditures [11][12] - The strategic long-term focus is on benefiting from the durability of tower leasing and growing mobile data demand trends [12] - The company is optimistic about the future, with a strong pipeline of applications and a healthy leasing environment [30][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth through the second half of the year, driven by resilient demand across the global portfolio [13] - The company noted that while there are timing delays in customer commencements, the overall pipeline remains healthy and supportive of long-term guidance [30][32] - Management highlighted the importance of maintaining a strong balance sheet and financial flexibility, with plans to reduce leverage to below five times [102] Other Important Information - The company issued €500 million in senior unsecured notes to pay down existing debt, with net leverage standing at 5.1 times [15] - The company expects to distribute approximately $3.2 billion to shareholders as a common dividend, unchanged from prior expectations [24] Q&A Session Summary Question: Can you elaborate on the domestic leasing observations and the impact on the second half of the year? - Management noted an increase in application volume but acknowledged a slower conversion from one customer, which may affect the timing of revenue recognition [30][32] Question: What is the exposure to US Cellular and DISH? - US Cellular represents less than 0.5% of global property revenues, while DISH accounts for over 2% of global revenues, with management optimistic about recent positive developments [46][48] Question: What is the outlook for the Latin America business? - The company anticipates low single-digit growth in Latin America through 2027, with significant improvements expected around 2028 [78][79] Question: How is the company managing supply chain challenges for CoreSite? - The company has proactively secured long lead-time items and built contractual mitigations to manage potential tariff impacts [64][66] Question: What are the capital allocation priorities moving forward? - The company prioritizes funding dividends, capital expenditures for internal projects, and considers options for debt reduction or M&A based on market conditions [102][104]

Q2 2025 Financial Performance - Total property revenue increased by 1.2% year-over-year to $2.527 billion, with a 1.9% increase on an FX-neutral basis[5] - Total revenue increased by 3.2% year-over-year to $2.627 billion, with a 3.9% increase on an FX-neutral basis[5] - Net income attributable to AMT common stockholders decreased by 59.3% to $367 million, with a per diluted share of $0.78[5] - Adjusted EBITDA increased by 1.8% year-over-year to $1.752 billion, with a 2.6% increase on an FX-neutral basis; Adjusted EBITDA margin was 66.7%[5] - AFFO attributable to AMT common stockholders decreased by 6.7% to $1.218 billion, with a per diluted share of $2.60; As adjusted, AFFO increased by 2.6% to $1.218 billion, with a per diluted share of $2.60[5] 2025 Outlook Revisions - The company raised the 2025 property revenue outlook by $165 million to $10.21 billion, representing ~3% year-over-year growth[20] - The company raised the 2025 Adjusted EBITDA outlook by $120 million to $7.04 billion, representing >3% year-over-year growth[27] - The company raised the 2025 Attributable AFFO outlook by $55 million to $4.95 billion, or $10.56 per share, representing ~6% year-over-year per share growth (as adjusted)[31] Capital Allocation - The company plans to deploy $1.5 billion in discretionary capital projects, with approximately 40% allocated to U.S. Data Centers, 25% to U.S. & Canada, 15% to Europe, and 20% to Emerging Markets[36] - The company targets a common dividend declaration of approximately $3.2 billion[39]

[Q2 2025 Financial Results Overview](index=1&type=section&id=Q2%202025%20Financial%20Results%20Overview) American Tower reported mixed Q2 2025 results, with revenue growth driven by U.S. demand and CoreSite, offset by a net income decrease due to foreign currency losses [Consolidated Highlights](index=1&type=section&id=CONSOLIDATED%20HIGHLIGHTS) American Tower reported mixed Q2 2025 results, with revenue up 3.2% to $2.63 billion, but net income down 58.1% due to foreign currency losses - CEO Steven Vondran highlighted strong demand for the company's global portfolio, driven by midband upgrades, densification in the U.S., and double-digit growth at CoreSite[2](index=2&type=chunk) - The significant decrease in net income was primarily attributed to foreign currency losses of approximately **$(484.0) million** in Q2 2025, compared to losses of $(21.7) million in the prior-year period[4](index=4&type=chunk)[6](index=6&type=chunk) - The financial results reflect the sale of the company's operations in India (ATC TIPL), now reported as discontinued operations, with prior period results adjusted for comparability[5](index=5&type=chunk)[7](index=7&type=chunk)[12](index=12&type=chunk) Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | Growth Rate | | :--- | :--- | :--- | | Total Revenue (in millions) | $2,627 | 3.2% | | Net Income (in millions) | $381 | (58.1)% | | Adjusted EBITDA (in millions) | $1,752 | 1.8% | | AFFO per Share ($) | $2.60 | (6.8)% | | Adjusted AFFO per Share ($) | $2.60 | 2.4% | [Capital Allocation & Leverage](index=2&type=section&id=CAPITAL%20ALLOCATION%20%26%20LEVERAGE) The company managed capital through shareholder distributions, strategic acquisitions, and debt management, maintaining a Net Leverage Ratio of 5.1x [Capital Allocation Overview](index=2&type=section&id=CAPITAL%20ALLOCATION%20OVERVIEW) In Q2 2025, capital was allocated to $1.70 per share distributions, $313 million in capital expenditures, and $185 million in acquisitions Q2 2025 Common Stock Distributions | Metric | Value | | :--- | :--- | | Distributions per share ($) | $1.70 | | Aggregate amount (in millions) | $796.0 | | Year-over-year per share growth | 4.9% | - Total capital expenditures were approximately **$313 million**, with **$40 million** designated for non-discretionary capital improvements and corporate capital expenditures[10](index=10&type=chunk) - The company spent approximately **$185 million** on acquisitions, primarily for a multi-tenant data center facility in Denver (DE1), adding incremental customer leases and capacity for future development[11](index=11&type=chunk) [Leverage and Financing Overview](index=3&type=section&id=LEVERAGE%20AND%20FINANCING%20OVERVIEW) As of June 30, 2025, American Tower maintained a Net Leverage Ratio of 5.1x and total liquidity of approximately $10.5 billion, actively managing its debt Net Leverage Ratio as of June 30, 2025 | Metric | Value (in millions) | | :--- | :--- | | Total debt | $37,485 | | Less: Cash and cash equivalents | $2,076 | | **Net Debt** | **$35,409** | | Second quarter annualized Adjusted EBITDA | $7,007 | | **Net Leverage Ratio** | **5.1x** | - Total liquidity stood at approximately **$10.5 billion**, comprising **$2.1 billion** in cash and **$8.4 billion** available under revolving credit facilities[15](index=15&type=chunk) - Key financing activities during the quarter included repayment of **€500.0 million** and **$750.0 million** of senior unsecured notes, issuance of **€500.0 million** of **3.625%** senior unsecured notes due 2032, and repayment of **$525.0 million** outstanding under the 2015 Securitization[16](index=16&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk) [Full Year 2025 Outlook](index=3&type=section&id=FULL%20YEAR%202025%20OUTLOOK) American Tower updated its full-year 2025 outlook, raising property revenue and Adjusted EBITDA guidance while reducing net income due to foreign currency impacts [Updated Guidance and Assumptions](index=3&type=section&id=Updated%20Guidance%20and%20Assumptions) The company raised its 2025 outlook for property revenue and Adjusted EBITDA, but reduced net income guidance due to unrealized foreign currency losses - The company is raising the midpoints of its full-year 2025 outlook for property revenue (by **$165M**), Adjusted EBITDA (by **$120M**), and AFFO per share (by **$0.12**), driven by core outperformance and favorable foreign currency exchange rates[23](index=23&type=chunk) - The midpoint for net income outlook is being reduced by **$400 million**, primarily due to unrealized foreign currency losses[23](index=23&type=chunk) - Midpoint property revenue growth expectations by segment are: **U.S. & Canada** at **(0.3)%**, **International** at **4.6%**, and **Data Centers** at **13.0%**[25](index=25&type=chunk) Full Year 2025 Outlook (Midpoint) | Metric | Midpoint | Midpoint Growth vs. Prior Year | | :--- | :--- | :--- | | Total property revenue (in millions) | $10,210 | 2.8% | | Net income (in millions) | $2,390 | 4.8% | | Adjusted EBITDA (in millions) | $7,040 | 3.3% | | AFFO per Share ($) | $10.555 | 0.2% | | Adjusted AFFO per Share ($) | $10.555 | 6.0% | 2025 Outlook for Capital Expenditures (Midpoint) | Category | Amount (in millions) | | :--- | :--- | | Discretionary capital projects | $880 | | Ground lease purchases | $210 | | Start-up capital projects | $75 | | Redevelopment | $335 | | Capital improvement | $160 | | Corporate | $10 | | **Total** | **$1,670** | [Unaudited Financial Statements and Reconciliations](index=10&type=section&id=Unaudited%20Financial%20Statements%20and%20Reconciliations) This section presents unaudited consolidated financial statements and reconciliations of GAAP to non-GAAP measures for Q2 2025 [Consolidated Balance Sheets](index=10&type=section&id=UNAUDITED%20CONSOLIDATED%20BALANCE%20SHEETS) The balance sheet as of June 30, 2025, shows total assets of $63.8 billion and total liabilities of $53.3 billion, both increasing since year-end 2024, with total equity growing to $10.5 billion Selected Balance Sheet Items (in millions) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $3,601.4 | $3,178.8 | | Property and Equipment, net | $19,799.8 | $19,056.8 | | **Total Assets** | **$63,754.5** | **$61,077.4** | | Total current liabilities | $5,863.6 | $7,075.6 | | Long-term obligations | $35,193.7 | $32,808.8 | | **Total Liabilities** | **$53,275.6** | **$51,428.7** | | **Total Equity** | **$10,478.9** | **$9,648.7** | [Consolidated Statements of Operations](index=11&type=section&id=UNAUDITED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For the three months ended June 30, 2025, total operating revenues increased to $2.63 billion, but net income attributable to common stockholders fell sharply to $366.8 million due to a $484.0 million unrealized foreign currency loss Statement of Operations Highlights - Three Months Ended June 30 (in millions) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total operating revenues | $2,626.9 | $2,544.7 | | Operating Income | $1,197.7 | $1,156.2 | | Net Income | $380.5 | $908.4 | | Net Income Attributable to AMT Common Stockholders | $366.8 | $900.3 | | Diluted Net Income per Share | $0.78 | $1.92 | [Consolidated Statements of Cash Flows](index=12&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, cash provided by operating activities was $2.58 billion, while cash used for investing activities increased to $841.2 million and financing activities used $1.75 billion Cash Flow Summary - Six Months Ended June 30 (in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Cash provided by operating activities | $2,576.5 | $2,622.1 | | Cash used for investing activities | $(841.2) | $(525.3) | | Cash used for financing activities | $(1,750.5) | $(1,418.1) | | Net increase in cash | $101.4 | $525.2 | [Consolidated Results by Segment](index=13&type=section&id=UNAUDITED%20CONSOLIDATED%20RESULTS%20FROM%20OPERATIONS%2C%20BY%20SEGMENT) Q2 2025 segment performance showed strong revenue growth in Europe, Africa & APAC, and Data Centers, with international organic tenant billings growth at 6.5% Q2 2025 Revenue Growth by Segment (vs. Q2 2024) | Segment | Revenue Growth (%) | | :--- | :--- | | U.S. & Canada | (0.6) | | Latin America | (13.2) | | Africa & APAC | 12.4 | | Europe | 14.5 | | Data Centers | 13.5 | Q2 2025 Organic Tenant Billings Growth by Segment | Segment | Growth Rate (%) | | :--- | :--- | | U.S. & Canada | 3.7 | | Latin America | 2.9 | | Africa & APAC | 13.0 | | Europe | 5.1 | | **Total International** | **6.5** | | **Total Property** | **4.7** | [Non-GAAP Reconciliations](index=15&type=section&id=UNAUDITED%20SELECTED%20CONSOLIDATED%20FINANCIAL%20INFORMATION) This section provides detailed reconciliations for key non-GAAP metrics, including Net Income to Adjusted EBITDA and AFFO, demonstrating adjustments for non-cash items and financing costs Reconciliation of Net Income to Adjusted EBITDA - Q2 2025 (in millions) | Item | Amount | | :--- | :--- | | Net income | $380.5 | | Adjustments (Taxes, Interest, D&A, etc.) | $1,371.3 | | **Adjusted EBITDA** | **$1,751.8** | Reconciliation of Net Income to AFFO - Q2 2025 (in millions) | Item | Amount | | :--- | :--- | | Net income | $380.5 | | Nareit FFO Adjustments | $384.2 | | **Nareit FFO attributable to AMT common stockholders** | **$764.7** | | AFFO Adjustments | $453.6 | | **AFFO attributable to AMT common stockholders** | **$1,218.3** | [Other Information](index=6&type=section&id=Other%20Information) This section defines non-GAAP financial measures and includes cautionary language regarding forward-looking statements [Non-GAAP and Defined Financial Measures](index=6&type=section&id=Non-GAAP%20and%20Defined%20Financial%20Measures) This section defines non-GAAP and other financial measures like Adjusted EBITDA, AFFO, and Tenant Billings, which management believes provide useful insights into core business performance beyond GAAP measures - The company presents non-GAAP measures like Adjusted EBITDA, AFFO, and Free Cash Flow, as well as defined metrics like Tenant Billings Growth, to provide investors with additional insight into underlying operating trends[40](index=40&type=chunk)[41](index=41&type=chunk) - Key revenue components are broken down to provide transparency, including Tenant Billings, Straight-line revenue, and International pass-through revenue, to help investors analyze the performance of the real estate portfolio[43](index=43&type=chunk) [Cautionary Language Regarding Forward-Looking Statements](index=9&type=section&id=Cautionary%20Language%20Regarding%20Forward-Looking%20Statements) This section contains the standard safe harbor statement, warning that forward-looking statements, including the 2025 outlook, are subject to numerous risks and uncertainties that could cause actual results to differ materially - The report identifies several key risk factors that could impact future results, including decreased leasing demand, customer concentration, increased competition, leverage risks, and foreign operations risks like currency fluctuations[69](index=69&type=chunk)

Core Viewpoint - Analysts forecast a decline in American Tower's quarterly earnings and revenues, with EPS expected at $2.60, down 6.8% year-over-year, and revenues projected at $2.59 billion, down 10.9% from the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised 0.5% higher in the last 30 days, indicating a collective reevaluation by analysts [2]. - Revisions to earnings estimates are significant indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock performance [3]. Revenue Estimates - Analysts predict 'Total operating revenues - Data Centers' at $257.71 million, reflecting an 11.6% increase year-over-year [5]. - 'Total operating revenues - Services' is expected to reach $74.89 million, indicating a substantial increase of 59.3% from the prior year [5]. - 'Total operating revenues - Total Property' is projected at $2.50 billion, showing a decrease of 12.4% compared to the previous year [5]. Geographic Revenue Estimates - 'Geographic Revenues - Total International' is estimated at $942.78 million, down 27.9% year-over-year [6]. - 'Geographic Revenues - U.S. & Canada' is expected to be $1.30 billion, reflecting a slight decline of 1.2% [6]. - 'Geographic Revenues - Europe' is projected at $224.06 million, indicating a 10.4% increase from the prior year [6]. - 'Geographic Revenues - Latin America' is forecasted to reach $398.55 million, down 11.2% from the previous year [7]. Tenant Billings Growth - 'Organic Tenant Billings Growth - Total International' is expected at 5.8%, slightly up from 5.5% in the same quarter last year [8]. - 'Organic Tenant Billings Growth - U.S. & Canada' is projected at 3.7%, down from 5.1% year-over-year [8]. Ending Balance Estimates - 'U.S. & Canada - Ending Balance' is estimated at 41,824, down from 42,124 year-over-year [7]. - The total ending balance is projected to be 174,228, compared to 222,415 in the previous year [7]. - 'International - Ending Balance' is expected to be 107,433, down from 180,291 year-over-year [9]. Stock Performance - American Tower shares have returned +4.5% over the past month, compared to the S&P 500 composite's +5.7% change [9]. - With a Zacks Rank 2 (Buy), American Tower is expected to outperform the overall market in the near future [10].

Core Viewpoint - American Tower Corporation (AMT) is expected to report a year-over-year decline in revenues and adjusted funds from operations (AFFO) per share for the second quarter of 2025 [1][9]. Group 1: Financial Performance - In the last quarter, AMT reported an AFFO per share of $2.75, exceeding the consensus estimate of $2.60, with a year-over-year revenue increase driven by growth in its property and service operations [2]. - The consensus estimate for total property segment revenues is $2.50 billion, indicating a decline from $2.85 billion reported in the same quarter last year [6]. - The Zacks Consensus Estimate for quarterly revenues is $2.58 billion, reflecting an 11% drop from the previous year's figure, while the AFFO per share estimate has remained unchanged at $2.59, representing a 7.2% decrease year-over-year [7][9]. Group 2: Growth Drivers - Increased capital expenditure by wireless carriers due to rising wireless penetration and accelerated 5G deployment is expected to sustain strong demand for AMT's communication real estate portfolio [3]. - The Services segment is projected to generate operating revenues of $74.9 million, a significant increase from $47 million in the prior-year quarter [4]. - The Data Centers segment is anticipated to see operating revenues of $257.7 million, up from $231 million in the year-ago period, benefiting from growth in cloud computing and IT infrastructure demand [5]. Group 3: Challenges - Elevated churn rates in AMT's U.S. and Canada property segments and high interest costs are likely to negatively impact overall performance during the quarter [6][9].

Core Insights - Infrastructure Capital Advisors is a prominent provider of investment management solutions aimed at income-focused investors [1] - Jay Hatfield serves as the CEO and CIO, leading the investment team [1] - The firm manages several ETFs including InfraCap Small Cap Income ETF (NYSE: SCAP) and InfraCap Equity Income Fund ETF (NYSE: ICAP) [1] - Infrastructure Capital is frequently featured in major financial media outlets such as Fox Business, CNBC, and Bloomberg [1] - The company publishes a variety of market reports and educational resources, including monthly market and economic reports and quarterly commentaries [1] - Infrastructure Capital also hosts monthly webinars and participates in industry conferences to enhance investor education [1]

Core Insights - American Tower (AMT) shares have increased by 19.3% year to date, outperforming the industry growth of 5.4% [1] - The company is expected to benefit from rising investments by wireless carriers in 5G networks, supported by solid business fundamentals and a prudent capital allocation strategy [1][4] - Analysts are optimistic about AMT, with the Zacks Consensus Estimate for its 2025 AFFO revised to $10.55 [1] Company Overview - American Tower possesses a geographically diversified communication real estate portfolio, with nearly 149,000 communication sites globally [3] - The company is well-positioned to capture demand due to increased capital expenditure from wireless carriers driven by rising wireless penetration and accelerated 5G deployment [3][4] - AMT has a resilient business model, generating most revenues from long-term, non-cancellable tower leases with major wireless carriers [5] Financial Performance - The company has shown strong growth in key financial metrics and continues to expand its platform amid favorable trends in the wireless industry [4] - As of March 31, 2025, AMT had a net leverage ratio of 5.0 and total liquidity of $11.7 billion, providing financial flexibility [6] - AMT enjoys investment-grade credit ratings of BBB and Baa3, allowing it to borrow at favorable rates [6] Dividend Strategy - American Tower has a disciplined capital distribution strategy, having raised its dividend 14 times with an annualized growth rate of 8.26% over the past five years [7][8] - The company is committed to increasing shareholder value through regular dividend hikes, supported by robust operating fundamentals [8]

Core Viewpoint - American Tower Corporation (AMT) is well-positioned to benefit from global 5G deployment, increasing wireless penetration, and strong demand in the data center segment, despite facing challenges from customer concentration and industry consolidation [2][9]. Group 1: Company Performance - AMT has a portfolio of nearly 149,000 communication sites globally and a strong presence in U.S. data centers [1]. - The company reported a year-over-year organic tenant billings growth of 4.7% and total tenant billings growth of 5.2% in Q1 2025, indicating robust performance amid industry growth trends [3]. - Data center revenue grew by 8.4% in Q1 2025, supported by the increasing demand for cloud computing and IT infrastructure [4]. Group 2: Financial Position - As of March 31, 2025, AMT had $11.7 billion in total liquidity, providing financial flexibility to support debt servicing [5]. - The company has a substantial debt burden of approximately $36.86 billion, which may impact its ability to purchase or develop real estate [10]. - AMT has consistently increased its dividends, with 14 hikes in the last five years and an annualized growth rate of 8.26% [6]. Group 3: Industry Challenges - High customer concentration is a concern, with the top three customers (T-Mobile, AT&T, and Verizon Wireless) accounting for 44% of consolidated operating revenues in Q1 2025 [7]. - The merger between T-Mobile and Sprint has led to tower site overlap, negatively affecting leasing revenues and resulting in a churn rate of approximately 2% in Q1 2025 [8]. - Elevated interest rates pose a risk for AMT, increasing borrowing costs and potentially affecting real estate transactions [9].

Group 1 - The statement about making the first million dollars being the hardest is a common belief among individuals [1] - iREIT® offers in-depth research on various investment vehicles including REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, Builders, and Asset Managers [1] - The iREIT® Tracker provides data on over 250 tickers along with quality scores, buy targets, and trim targets [1] Group 2 - A new Ratings Tracker called iREIT Buy Zone has been introduced to assist members in screening for value [2] - The offer includes a 2-week free trial along with a complimentary book [4]

Group 1 - The iREIT® Tracker provides comprehensive data on over 250 tickers, including quality scores, buy targets, and trim targets, focusing on various investment vehicles such as REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, Builders, and Asset Managers [1] - There is a prevalent misconception in the REIT sector that issuing stock is dilutive to investors, which is frequently discussed on platforms like Seeking Alpha and social media [1] Group 2 - The investing group iREIT®+HOYA Capital, led by Brad and HOYA Capital, specializes in REITs, BDCs, MLPs, Preferreds, and other income-oriented alternatives, backed by a team of analysts with over 100 years of combined experience [2] - Brad Thomas has over 30 years of experience in real estate investing, having been involved in over $1 billion in commercial real estate transactions, and has been featured in major media outlets [3]