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American Tower (AMT) Q3 AFFO Declines, Revenues Rise Y/Y
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American Tower Corporation (AMT - Free Report) reported third-quarter 2022 consolidated adjusted funds from operations (AFFO) per share of $2.45 and AFFO attributable to AMT common stockholders per share of $2.36, down 3.2% and 5.2% year over year, respectively. The Zacks Consensus Estimate was pegged at $2.42.
The company generated total revenues of $2.67 billion, in line with the consensus mark. Also, the top line jumped 8.8% year over year.
Results reflect improving revenues across its Property segment. American Tower also recorded decent year-over-year organic tenant billings growth of 2.6% and total tenant billings growth of 3.9%.
Quarter in Detail
Adjusted EBITDA came in at $1.64 billion, up 5.8% from the prior-year period. The adjusted EBITDA margin was 61.5% in the quarter.
During the reported quarter, AMT spent roughly $141 million on the acquisition of 114 communications sites and other communications infrastructure assets, including a data center in the Miami area, for $34 million.
Property Operations
Revenues came in at $2.61 billion, up 10.2% on a year-over-year basis. The operating profit was $1.67 billion, and the operating profit margin came in at 64%.
In the Property segment, revenues from the United States totaled $1.26 billion, up 2.5% year over year. Total international revenues amounted to $1.16 billion, rising 1.7%. Further, newly formed Data Centers added $194 million to Property revenues, up substantially from $3 million in the prior-year period.
Service Operations
Revenues totaled $61.6 million during the reported quarter, down from $85.4 million in the prior-year quarter. The operating profit came in at $28 million and the operating profit margin was 46% in the September quarter.
Cash Flow & Liquidity
In the third quarter, American Tower generated $932 million of cash from operating activities, down 55.5% year over year. Free cash flow in the period was $468 million, plunging 73.6%.
At the end of the third quarter, the company had $7.0 billion in total liquidity. This comprised $2.1 billion in cash and cash equivalents and availability of $4.9 billion under its revolving credit facilities (net of any outstanding letters of credit).
2022 Guidance
American Tower anticipates total property revenues in the range of $10,395-$10,485 million, suggesting a year-over-year improvement of 14.6% at the midpoint. Earlier, the company targeted total property revenues in the band of $10,280-$10,460 million.
Adjusted EBITDA is projected in the band of $6,580-$6,660 million, indicating a midpoint increase of 10.6% year over year. The prior guidance was in the band of $6,535-$6,645 million.
Consolidated AFFO is expected between $4,595 and $4,675 million, implying a year-over-year midpoint expansion of 6.0%. The same was earlier expected within $4,625-$4,735 million.
Further, AFFO for common stockholders is anticipated in the band of $4,430-$4,510 million, suggesting midpoint growth of 4.5% year over year. Previously, AMT expected the same in the $4,455-$4,565 million range.
AFFO per share is expected in the band of $9.57-$9.74, indicating an increase of 2.3% year over year. The Zacks Consensus Estimate for the same is currently pegged at $9.84.
Capital expenditure is projected between $1.895 and $1.995 billion.
Crown Castle Inc. (CCI - Free Report) reported third-quarter 2022 AFFO per share of $1.85, beating the Zacks Consensus Estimate of $1.83. Reported AFFO per share compared favorably with the year-ago period’s $1.77.
The rise in site-rental revenues amid elevated tower space demand aided CCI’s year-over-year top-line growth. It also announced a hike in its quarterly cash dividend payment.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported third-quarter 2022 AFFO per share of $2.13, surpassing the Zacks Consensus Estimate by a cent. The reported figure also compared favorably with the year-ago quarter’s $1.95.
ARE’s results reflect decent leasing activity and rental rate growth during the quarter. Year-over-year improvement in the top line was noticeable.
Boston Properties Inc.’s (BXP - Free Report) third-quarter 2022 FFO per share of $1.91 outpaced the Zacks Consensus Estimate of $1.87. The figure increased 10.4% year over year.
BXP’s quarterly results reflect healthy leasing activity alongside year-over-year growth in the top line. It also carried out strategic acquisitions, redevelopments and dispositions during the quarter. The company revised its 2022 outlook for FFO.
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.
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American Tower (AMT) Q3 AFFO Declines, Revenues Rise Y/Y
American Tower Corporation (AMT - Free Report) reported third-quarter 2022 consolidated adjusted funds from operations (AFFO) per share of $2.45 and AFFO attributable to AMT common stockholders per share of $2.36, down 3.2% and 5.2% year over year, respectively. The Zacks Consensus Estimate was pegged at $2.42.
The company generated total revenues of $2.67 billion, in line with the consensus mark. Also, the top line jumped 8.8% year over year.
Results reflect improving revenues across its Property segment. American Tower also recorded decent year-over-year organic tenant billings growth of 2.6% and total tenant billings growth of 3.9%.
Quarter in Detail
Adjusted EBITDA came in at $1.64 billion, up 5.8% from the prior-year period. The adjusted EBITDA margin was 61.5% in the quarter.
During the reported quarter, AMT spent roughly $141 million on the acquisition of 114 communications sites and other communications infrastructure assets, including a data center in the Miami area, for $34 million.
Property Operations
Revenues came in at $2.61 billion, up 10.2% on a year-over-year basis. The operating profit was $1.67 billion, and the operating profit margin came in at 64%.
In the Property segment, revenues from the United States totaled $1.26 billion, up 2.5% year over year. Total international revenues amounted to $1.16 billion, rising 1.7%. Further, newly formed Data Centers added $194 million to Property revenues, up substantially from $3 million in the prior-year period.
Service Operations
Revenues totaled $61.6 million during the reported quarter, down from $85.4 million in the prior-year quarter. The operating profit came in at $28 million and the operating profit margin was 46% in the September quarter.
Cash Flow & Liquidity
In the third quarter, American Tower generated $932 million of cash from operating activities, down 55.5% year over year. Free cash flow in the period was $468 million, plunging 73.6%.
At the end of the third quarter, the company had $7.0 billion in total liquidity. This comprised $2.1 billion in cash and cash equivalents and availability of $4.9 billion under its revolving credit facilities (net of any outstanding letters of credit).
2022 Guidance
American Tower anticipates total property revenues in the range of $10,395-$10,485 million, suggesting a year-over-year improvement of 14.6% at the midpoint. Earlier, the company targeted total property revenues in the band of $10,280-$10,460 million.
Adjusted EBITDA is projected in the band of $6,580-$6,660 million, indicating a midpoint increase of 10.6% year over year. The prior guidance was in the band of $6,535-$6,645 million.
Consolidated AFFO is expected between $4,595 and $4,675 million, implying a year-over-year midpoint expansion of 6.0%. The same was earlier expected within $4,625-$4,735 million.
Further, AFFO for common stockholders is anticipated in the band of $4,430-$4,510 million, suggesting midpoint growth of 4.5% year over year. Previously, AMT expected the same in the $4,455-$4,565 million range.
AFFO per share is expected in the band of $9.57-$9.74, indicating an increase of 2.3% year over year. The Zacks Consensus Estimate for the same is currently pegged at $9.84.
Capital expenditure is projected between $1.895 and $1.995 billion.
Currently, AMT carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Tower Corporation Price, Consensus and EPS Surprise
American Tower Corporation price-consensus-eps-surprise-chart | American Tower Corporation Quote
Performance of Other REITs
Crown Castle Inc. (CCI - Free Report) reported third-quarter 2022 AFFO per share of $1.85, beating the Zacks Consensus Estimate of $1.83. Reported AFFO per share compared favorably with the year-ago period’s $1.77.
The rise in site-rental revenues amid elevated tower space demand aided CCI’s year-over-year top-line growth. It also announced a hike in its quarterly cash dividend payment.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported third-quarter 2022 AFFO per share of $2.13, surpassing the Zacks Consensus Estimate by a cent. The reported figure also compared favorably with the year-ago quarter’s $1.95.
ARE’s results reflect decent leasing activity and rental rate growth during the quarter. Year-over-year improvement in the top line was noticeable.
Boston Properties Inc.’s (BXP - Free Report) third-quarter 2022 FFO per share of $1.91 outpaced the Zacks Consensus Estimate of $1.87. The figure increased 10.4% year over year.
BXP’s quarterly results reflect healthy leasing activity alongside year-over-year growth in the top line. It also carried out strategic acquisitions, redevelopments and dispositions during the quarter. The company revised its 2022 outlook for FFO.
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.