We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
American Tower (AMT), Stonepeak Tie Up for Data Center Business
Read MoreHide Full Article
As part of a new long-term strategic partnership, American Tower Corporation (AMT - Free Report) recently announced that Stonepeak will be acquiring a 29% stake in its U.S. data center business. Stonepeak will carry out the deal on behalf of some of its affiliated investment vehicles.
Reflecting positive sentiments, shares of AMT closed at $257.99, appreciating 1.17% in the Jul 11 trading session following the announcement.
The $2.5 billion transaction will be sealed through investment in common equity and mandatorily convertible preferred equity. American Tower’s U.S. data center business, which is held as its subsidiaries, will have an enterprise value of roughly $10.5 billion.
Stonepeak is an alternative investment firm specializing in infrastructure and real assets. It holds around $49.3 billion of assets under management.
Per the agreement, American Tower will maintain its managerial and operational control of the U.S. data center business and manage its day-to-day operations. Stonepeak will attain certain governance rights.
With a portfolio of roughly 221,000 communications sites worldwide and unmatched geographic diversification of its sites, American Tower is strategically positioned to capture the incremental demand from global 4G and 5G deployment efforts, growing wireless penetration and spectrum auctions.
Moreover, given the rising demand for low-latency, hybrid IT solutions and agile interconnection across the platform’s data center campuses in major U.S. metro areas, this partnership seems to be a strategic fit for both companies.
In addition, the platform’s data center portfolio, which comprises 27 data centers across 10 U.S. markets, has more than 450 networks, 23 native cloud on-ramps along with more than 35,000 interconnections that will benefit both partners.
Markedly, American Tower completed the CoreSite acquisition in December 2021. Through the deal, it acquired more than 20 data center facilities and related assets in eight U.S. markets for a total consideration of $10.4 billion.
According to Tom Bartlett, AMT’s president and CEO, “While this transaction supports the equity financing component for our previously completed CoreSite acquisition, it also creates a platform through which growth opportunities can be strategically evaluated and financed, with American Tower and Stonepeak committed to executing on opportunities as the 5G ecosystem continues to develop.”
Analysts seem bullish on this Zacks Rank #3 (Hold) stock. The recent estimate revision trend for 2022 funds from operations (FFO) per share indicates a favorable outlook for the company, with estimates moving marginally northward to $9.92 over the past month.
Shares of American Tower have rallied 0.3% in the past three months against the industry’s decline of 15.7%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are Extra Space Storage (EXR - Free Report) , Host Hotels & Resorts (HST - Free Report) and Pebblebrook Hotel Trust (PEB - Free Report) .
The Zacks Consensus Estimate for Extra Space Storage’s ongoing year’s FFO per share has been raised 3.4% over the past two months to $8.26. EXR presently carries a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Host Hotels’ 2022 FFO per share has moved 1.2% upward in the past month to $1.65. HST carries a Zacks Rank of 2 (Buy), currently.
The Zacks Consensus Estimate for Pebblebrook Hotel’s current-year FFO per share has moved 2.9% northward in the past month to $1.80. PEB carries a Zacks Rank #1 at present.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
American Tower (AMT), Stonepeak Tie Up for Data Center Business
As part of a new long-term strategic partnership, American Tower Corporation (AMT - Free Report) recently announced that Stonepeak will be acquiring a 29% stake in its U.S. data center business. Stonepeak will carry out the deal on behalf of some of its affiliated investment vehicles.
Reflecting positive sentiments, shares of AMT closed at $257.99, appreciating 1.17% in the Jul 11 trading session following the announcement.
The $2.5 billion transaction will be sealed through investment in common equity and mandatorily convertible preferred equity. American Tower’s U.S. data center business, which is held as its subsidiaries, will have an enterprise value of roughly $10.5 billion.
Stonepeak is an alternative investment firm specializing in infrastructure and real assets. It holds around $49.3 billion of assets under management.
Per the agreement, American Tower will maintain its managerial and operational control of the U.S. data center business and manage its day-to-day operations. Stonepeak will attain certain governance rights.
With a portfolio of roughly 221,000 communications sites worldwide and unmatched geographic diversification of its sites, American Tower is strategically positioned to capture the incremental demand from global 4G and 5G deployment efforts, growing wireless penetration and spectrum auctions.
Moreover, given the rising demand for low-latency, hybrid IT solutions and agile interconnection across the platform’s data center campuses in major U.S. metro areas, this partnership seems to be a strategic fit for both companies.
In addition, the platform’s data center portfolio, which comprises 27 data centers across 10 U.S. markets, has more than 450 networks, 23 native cloud on-ramps along with more than 35,000 interconnections that will benefit both partners.
Markedly, American Tower completed the CoreSite acquisition in December 2021. Through the deal, it acquired more than 20 data center facilities and related assets in eight U.S. markets for a total consideration of $10.4 billion.
According to Tom Bartlett, AMT’s president and CEO, “While this transaction supports the equity financing component for our previously completed CoreSite acquisition, it also creates a platform through which growth opportunities can be strategically evaluated and financed, with American Tower and Stonepeak committed to executing on opportunities as the 5G ecosystem continues to develop.”
Analysts seem bullish on this Zacks Rank #3 (Hold) stock. The recent estimate revision trend for 2022 funds from operations (FFO) per share indicates a favorable outlook for the company, with estimates moving marginally northward to $9.92 over the past month.
Shares of American Tower have rallied 0.3% in the past three months against the industry’s decline of 15.7%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are Extra Space Storage (EXR - Free Report) , Host Hotels & Resorts (HST - Free Report) and Pebblebrook Hotel Trust (PEB - Free Report) .
The Zacks Consensus Estimate for Extra Space Storage’s ongoing year’s FFO per share has been raised 3.4% over the past two months to $8.26. EXR presently carries a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Host Hotels’ 2022 FFO per share has moved 1.2% upward in the past month to $1.65. HST carries a Zacks Rank of 2 (Buy), currently.
The Zacks Consensus Estimate for Pebblebrook Hotel’s current-year FFO per share has moved 2.9% northward in the past month to $1.80. PEB carries a Zacks Rank #1 at present.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.