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American Tower (AMT) AFFO & Revenues Surpass Estimates in Q4
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American Tower Corporation (AMT - Free Report) has reported fourth-quarter 2022 adjusted funds from operations (AFFO) per share, attributable to AMT common stockholders, of $2.34, beating the Zacks Consensus Estimate of $2.23. The figure also compared favorably with the prior-year quarter’s $2.10
Results reflect improving revenues across its Property segment. American Tower has also recorded decent year-over-year organic tenant billings growth of 4.7% and total tenant billings growth of 5.7%. It has issued its 2023 outlook.
The company has clocked in total revenues of $2.70 billion, outpacing the Zacks Consensus Estimate of $2.68 billion. Also, the top line climbed 10.6% year over year.
In 2022, the company’s AFFO of $9.76 per share was up 3.5% from a year ago and beat the consensus estimate of $9.70. Total revenues grew 14.5% to $10.71 billion and outpaced the consensus mark of $10.68 billion.
Quarter in Detail
Adjusted EBITDA was $1.71 billion, up 12.1% from the prior-year period. The adjusted EBITDA margin was 63.1% in the quarter.
In the reported quarter, AMT spent roughly $190 million on the acquisition of 250 communications sites, mainly in Europe, and other communications infrastructure assets.
Property Operations
Revenues were $2.65 billion, up 11.2% on a year-over-year basis. The operating profit was $1.74 billion, and the operating profit margin was 66%.
In the Property segment, revenues from the United States and Canada totaled $1.23 billion, up 3.8% year over year. Total international revenues amounted to $1.17 billion, rising 3.4%. Newly formed Data Centers added $198 million to Property revenues, up substantially from $16 million in the prior-year period.
Service Operations
Revenues totaled $60.2 million in the reported quarter, down from $67.2 million in the prior-year quarter. The operating profit was $32 million and the operating profit margin was 52% in the October-December quarter.
Cash Flow & Liquidity
In the fourth quarter, American Tower generated $1.19 billion of cash from operating activities, jumping 74.5% year over year. Free cash flow in the period was $519 million, significantly rising from the year-ago quarter.
As of Dec 31, 2022, the company had $7.1 billion in total liquidity. This comprised $2 billion in cash and cash equivalents, and availability of $5.1 billion under its revolving credit facilities (net of any outstanding letters of credit).
2023 Guidance
American Tower anticipates total property revenues of $10,685-$10,865 million, suggesting a year-over-year improvement of 2.9% at the mid-point.
The adjusted EBITDA is projected at $6,860-$6,970 million, indicating a mid-point increase of 4.1%. The consolidated AFFO is expected to be $4,675-$4,785 million, implying a year-over-year mid-point expansion of 1%.
AFFO is expected to be $4,430-$4,540 million, suggesting a mid-point decline of 0.7%.
AFFO per share is expected to be $9.49-$9.72, indicating a fall at the mid-point of 1.6%. The Zacks Consensus Estimate for the same is pegged at $9.70, which lies within the company’s guided range.
Capital expenditure is projected to be $1,650-$1,760 million.
Crown Castle Inc. (CCI - Free Report) reported fourth-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 maintained its outlook for 2023.
SBA Communications Corporation’s (SBAC - Free Report) quarterly adjusted funds from operations (AFFO) per share of $3.11 lagged the Zacks Consensus Estimate of $3.13. Nonetheless, this reflects a rise of 10.7% from the prior-year quarter.
SBAC witnessed an improvement in site-leasing and site-development businesses, which supported the top line. It continues to benefit from the addition of sites to its portfolio.
Boston Properties Inc.’s (BXP - Free Report) fourth-quarter 2022 FFO per share of $1.86 outpaced the Zacks Consensus Estimate of $1.84. The figure increased 18.7% year over year.
The quarterly figure also exceeded the mid-point of the company’s fourth-quarter guidance by a cent, reflecting portfolio outperformance. In addition, BXP experienced solid leasing activity in the quarter. The company revised its 2023 outlook for FFO per share.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.
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American Tower (AMT) AFFO & Revenues Surpass Estimates in Q4
American Tower Corporation (AMT - Free Report) has reported fourth-quarter 2022 adjusted funds from operations (AFFO) per share, attributable to AMT common stockholders, of $2.34, beating the Zacks Consensus Estimate of $2.23. The figure also compared favorably with the prior-year quarter’s $2.10
Results reflect improving revenues across its Property segment. American Tower has also recorded decent year-over-year organic tenant billings growth of 4.7% and total tenant billings growth of 5.7%. It has issued its 2023 outlook.
The company has clocked in total revenues of $2.70 billion, outpacing the Zacks Consensus Estimate of $2.68 billion. Also, the top line climbed 10.6% year over year.
In 2022, the company’s AFFO of $9.76 per share was up 3.5% from a year ago and beat the consensus estimate of $9.70. Total revenues grew 14.5% to $10.71 billion and outpaced the consensus mark of $10.68 billion.
Quarter in Detail
Adjusted EBITDA was $1.71 billion, up 12.1% from the prior-year period. The adjusted EBITDA margin was 63.1% in the quarter.
In the reported quarter, AMT spent roughly $190 million on the acquisition of 250 communications sites, mainly in Europe, and other communications infrastructure assets.
Property Operations
Revenues were $2.65 billion, up 11.2% on a year-over-year basis. The operating profit was $1.74 billion, and the operating profit margin was 66%.
In the Property segment, revenues from the United States and Canada totaled $1.23 billion, up 3.8% year over year. Total international revenues amounted to $1.17 billion, rising 3.4%. Newly formed Data Centers added $198 million to Property revenues, up substantially from $16 million in the prior-year period.
Service Operations
Revenues totaled $60.2 million in the reported quarter, down from $67.2 million in the prior-year quarter. The operating profit was $32 million and the operating profit margin was 52% in the October-December quarter.
Cash Flow & Liquidity
In the fourth quarter, American Tower generated $1.19 billion of cash from operating activities, jumping 74.5% year over year. Free cash flow in the period was $519 million, significantly rising from the year-ago quarter.
As of Dec 31, 2022, the company had $7.1 billion in total liquidity. This comprised $2 billion in cash and cash equivalents, and availability of $5.1 billion under its revolving credit facilities (net of any outstanding letters of credit).
2023 Guidance
American Tower anticipates total property revenues of $10,685-$10,865 million, suggesting a year-over-year improvement of 2.9% at the mid-point.
The adjusted EBITDA is projected at $6,860-$6,970 million, indicating a mid-point increase of 4.1%. The consolidated AFFO is expected to be $4,675-$4,785 million, implying a year-over-year mid-point expansion of 1%.
AFFO is expected to be $4,430-$4,540 million, suggesting a mid-point decline of 0.7%.
AFFO per share is expected to be $9.49-$9.72, indicating a fall at the mid-point of 1.6%. The Zacks Consensus Estimate for the same is pegged at $9.70, which lies within the company’s guided range.
Capital expenditure is projected to be $1,650-$1,760 million.
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 fourth-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 maintained its outlook for 2023.
SBA Communications Corporation’s (SBAC - Free Report) quarterly adjusted funds from operations (AFFO) per share of $3.11 lagged the Zacks Consensus Estimate of $3.13. Nonetheless, this reflects a rise of 10.7% from the prior-year quarter.
SBAC witnessed an improvement in site-leasing and site-development businesses, which supported the top line. It continues to benefit from the addition of sites to its portfolio.
Boston Properties Inc.’s (BXP - Free Report) fourth-quarter 2022 FFO per share of $1.86 outpaced the Zacks Consensus Estimate of $1.84. The figure increased 18.7% year over year.
The quarterly figure also exceeded the mid-point of the company’s fourth-quarter guidance by a cent, reflecting portfolio outperformance. In addition, BXP experienced solid leasing activity in the quarter. The company revised its 2023 outlook for FFO per share.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.