American Tower(AMT) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenues for the three months ended March 31, 2025, increased by 2% to $2,562.8 million compared to$ 2,512.6 million in 2024 [159]. - For the three months ended March 31, 2025, net income decreased by 46% to $498.6 million compared to$ 921.7 million in the same period of 2024 [184]. - Adjusted EBITDA for the three months ended March 31, 2025, increased by 2% to $1,744.2 million from$ 1,712.2 million in the prior year [184]. - The company reported a total property revenue of $2,488.2 million, reflecting a marginal increase of 0% compared to the previous year [159]. - The gross margin for the three months ended March 31, 2025, was$ 1,471.0 million, compared to $1,423.7 million in the same period of 2024 [191]. Revenue Segments - Property operations accounted for 97% of total revenues for the three months ended March 31, 2025 [143]. - U.S. & Canada property segment revenue decreased by$ 12.4 million, while Africa & Asia-Pacific segment revenue grew by $36.5 million, reflecting a 12% increase [160]. - Services segment revenue surged by 147% to$ 74.6 million, up from $30.2 million in the prior year [159]. - Latin America property segment revenue decreased by$ 46.3 million, attributed to foreign currency translation impacts [162]. Churn and Lease Revenue - Churn rate during the three months ended March 31, 2025, was approximately 2% of tenant billings, primarily driven by the U.S. & Canada property segment [151]. - The company anticipates elevated churn rates in the U.S. & Canada property segment through 2025 due to lease cancellations by T-Mobile [152]. - Most tenant leases have initial non-cancellable terms of five to ten years, with average annual rent escalations of approximately 3% in the U.S. [149]. - The company expects to generate over $55 billion of non-cancellable customer lease revenue over future periods [150]. Transactions and Asset Sales - The ATC TIPL Transaction was completed on September 12, 2024, with total consideration of 182 billion INR (approximately$ 2.2 billion) received [142]. - The sale of South Africa Fiber assets was completed on March 6, 2025, prior to which its operating results were included in the Africa & APAC property segment [147]. - The company recorded a loss of $1.2 billion on the sale of ATC TIPL, primarily due to a cumulative translation adjustment of$ 1.1 billion [180]. - The company recognized a gain of $46.4 million on the sales of VIL Shares and VIL OCDs during the year ended December 31, 2024 [183]. Expenses and Taxation - Total other expense rose significantly by 190% to$ 636.6 million, primarily due to foreign currency losses of $345.7 million [174][175]. - The income tax provision increased by 30% to$ 118.9 million, influenced by taxes from the sale of South Africa Fiber [176]. - The effective tax rate for the three months ended March 31, 2025, was 19.3%, up from 9.9% in 2024 [176]. Capital Expenditures and Debt - Significant capital expenditures for the three months ended March 31, 2025, totaled $340.0 million, including$ 203.5 million for discretionary capital projects and $114.6 million related to data center assets [202]. - The company expects total capital expenditures for 2025 to range from$ 1,635 million to $1,745 million, including$ 880 million to $910 million for discretionary capital projects and approximately$ 610 million for data center assets [206]. - The company had total outstanding indebtedness of $37.1 billion as of March 31, 2025, with a current portion of$ 2.8 billion [196]. - The company repaid $650.0 million of 2.950% senior unsecured notes and$ 750.0 million of 2.400% senior unsecured notes upon their maturity in January and March 2025, respectively [208][209]. Liquidity and Cash Flow - The total liquidity as of March 31, 2025, was $11,658.2 million, which includes$ 2,103.7 million in cash and cash equivalents and $9,554.5 million available under credit facilities [194]. - For the three months ended March 31, 2025, the company reported a net cash provided by operating activities of$ 1,295.0 million, compared to $1,283.6 million for the same period in 2024, reflecting an increase in operating profit driven by growth in the Africa & APAC and Europe property segments [195]. - The company has distributed an aggregate of approximately$ 21.3 billion to common stockholders, including a distribution of $1.62 per share or$ 757.1 million during the three months ended March 31, 2025 [230][231]. Foreign Currency Exposure - The company experienced a foreign currency exchange rate fluctuation loss of $345.7 million for the three months ended March 31, 2025 [196]. - For the three months ended March 31, 2025, 31% of the company's revenues and 37% of total operating expenses were denominated in foreign currencies [258]. - An adverse change of 10% in the underlying exchange rates of unsettled intercompany debt would result in$ 31.3 million of unrealized losses included in net income for the three months ended March 31, 2025 [259]. - The company has incurred 7.5 billion EUR (approximately $8.1 billion) in outstanding debt, with a potential$ 0.9 billion loss from a 10% adverse change in exchange rates [259]. Compliance and Financial Ratios - As of March 31, 2025, the company was in compliance with all financial and operating covenants under its Bank Loan Agreements [235]. - The Consolidated Total Leverage Ratio was approximately 5.0, which is below the maximum allowable ratio of 6.00:1.00 [236]. - The company reported a Debt Service Coverage Ratio (DSCR) of 1.30x, with excess cash flow of $90.5 million and a decrease in net cash flow of$ 336.6 million [243].