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]