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][19] - Consolidated property revenue grew 1.2% year over year, with a more than 3% increase when excluding non-cash straight-line revenue [15] - Adjusted EBITDA grew 1.8% year over year, approximately 4.5% when excluding non-cash straight-line revenue [16] Business Line Data and Key Metrics Changes - The U.S. services business had a near-record quarter, with application volumes among the big three customers up over 50% year over year [12][13] - The data center business, particularly CoreSite, saw over 13% revenue growth, driven by hybrid cloud demand and AI-related use cases [15][16] - Colocations increased by 200% year over year, indicating a shift towards densification [12][97] Market Data and Key Metrics Changes - In developed markets (U.S., 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 [8][9] - The company anticipates a modest increase in its outlook for Brazil due to market stabilization and improved carrier economics [9] Company Strategy and Development Direction - The company aims to benefit from the durability of tower leasing and growing mobile data demand trends, focusing on capital allocation and maintaining a high-quality balance sheet [11] - The strategic focus includes prioritizing funding for CoreSite and maintaining a disciplined approach to capital allocation [10][11] - The company plans to continue enhancing its service offerings and expanding its tower footprint to capture new business opportunities [5][11] 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 [12] - The company noted that while there are timing delays in customer commencements, the overall leasing pipeline remains healthy [30][31] - Management expects churn to trend down as the company moves past the final year of Sprint churn [52] Other Important Information - The company issued €500 million in senior unsecured notes to strengthen its balance sheet, with net leverage standing at 5.1 times [14] - The revised capital plans for 2025 include approximately $1.7 billion in capital expenditures, reflecting a slight decrease from prior expectations [23] Q&A Session Summary Question: Can you elaborate on the domestic leasing observations and the impact of delays in commencements? - Management indicated that while application volumes are healthy, one customer is experiencing a slower conversion to commencements, which may affect the second half of the year but does not indicate a pullback in overall demand [26][29][30] 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. Management remains optimistic about DISH's recent positive developments [45][48] Question: Can you provide insights on CoreSite's supply chain risk management? - Management has proactively secured long lead-time items and built contractual mitigations to manage potential tariff impacts, ensuring stability in their development pipeline [66][68] Question: What are the expectations for the Latin America business? - The company anticipates low single-digit growth in Latin America through 2027, with significant improvements expected around 2028 [80][81] Question: How does the company view direct-to-device satellite connectivity? - Management views direct-to-device satellite technology as complementary to macro cell networks, particularly in low-density areas where building towers is not economically viable [55][56]