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American Tower's (AMT) Africa Operations & MTN Nigeria Ink Deal
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American Tower Corporation (AMT - Free Report) , through its Africa operations (ATC Africa), is set to make significant strides in improving wireless connectivity in Nigeria via an agreement with MTN Nigeria. The recently announced collaboration highlights AMT's commitment to sustainability and responsible business practices while expanding its presence in the African market.
Under the terms of this agreement, starting in the second half of 2024, ATC Africa is set to facilitate new tenancies for MTN Nigeria over a multi-year period. Leveraging its extensive portfolio of more than 8,000 sites in Nigeria, a considerable portion of which already integrates green energy solutions, ATC Africa is poised to play a pivotal role in meeting MTN Nigeria's evolving site requirements. Additionally, the agreement involves the deployment of new sites adhering to ATC Africa's green site specifications, reinforcing a commitment to sustainable business practices.
According to Marek Busfy, the senior vice president and CEO of ATC Africa, “We believe this agreement, which secures incremental lease-up on our existing portfolio and a strong development pipeline, clearly demonstrates the differentiated value ATC Africa can provide its customers through our quality of assets, leading build-to-suit capabilities, and best-in-class Power-as-a-Service and green site offerings."
AMT continues focusing on macro-tower investment opportunities and gaining scale in attractive global markets. It has built more than 45,000 international sites since it began expanding internationally. Around 8,000 of these sites have been built in Africa as carriers continue to invest in their network coverage and densification needs. Further, in the nine months ended Sep 30, 2023, it purchased 69 communications sites and other communications infrastructure assets in the United States, Canada, France, Poland and Spain for $65.7 million.
Moreover, in 2022, AMT acquired and constructed roughly 7,405 communications sites globally. Its 2021 acquisition of Telxius’ European and Latin American tower divisions, consisting of around 31,000 communications sites in Argentina, Brazil, Chile, Germany, Peru and Spain, has offered a significant scale in these attractive markets, diversifying its footprint with the strong, primarily tier-1, multinational tenant base.
The advancement in mobile technology, such as 4G and 5G, and the proliferation of bandwidth-intensive applications propel growth in mobile data usage globally. Moreover, the advent of next-generation technologies, including edge computing functionality, autonomous vehicle networks and the Internet of Things, and the rampant usage of network-intensive applications for video conferencing and cloud services and hybrid-working scenarios have rapidly increased wireless connectivity usage.
Amid this, wireless service providers and carriers have been deploying additional equipment for existing networks to enhance network coverage and capacity. Given its portfolio of nearly 225,000 communication sites worldwide and the unmatched geographic diversification of its sites, American Tower is strategically positioned to capture incremental demand from global 4G and 5G deployment efforts, growing wireless penetration and spectrum auctions.
In the third quarter of 2023, the company recorded healthy year-over-year organic tenant billings growth of 6.3% and total tenant billings growth of 7.3%. In the nine months ended Sep 30, 2023, revenues from the property segment and adjusted EBITDA increased by 5.2% and 7.9%, respectively, on a year-over-year basis. However, customer concentration and high interest rates pose key concerns for AMT.
Shares of this Zacks Rank #3 (Hold) company have risen 8.6% in the past month against the industry’s decline of 1.3%.
The Zacks Consensus Estimate for Welltower’s current-year funds from operations (FFO) per share has moved marginally northward over the past week to $3.58.
The Zacks Consensus Estimate for Iron Mountain’s 2023 FFO per share has moved marginally upward in the past three months to $3.97.
The Zacks Consensus Estimate for Boston Properties’ ongoing year’s FFO per share has been raised marginally over the past two months to $7.30.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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American Tower's (AMT) Africa Operations & MTN Nigeria Ink Deal
American Tower Corporation (AMT - Free Report) , through its Africa operations (ATC Africa), is set to make significant strides in improving wireless connectivity in Nigeria via an agreement with MTN Nigeria. The recently announced collaboration highlights AMT's commitment to sustainability and responsible business practices while expanding its presence in the African market.
Under the terms of this agreement, starting in the second half of 2024, ATC Africa is set to facilitate new tenancies for MTN Nigeria over a multi-year period. Leveraging its extensive portfolio of more than 8,000 sites in Nigeria, a considerable portion of which already integrates green energy solutions, ATC Africa is poised to play a pivotal role in meeting MTN Nigeria's evolving site requirements. Additionally, the agreement involves the deployment of new sites adhering to ATC Africa's green site specifications, reinforcing a commitment to sustainable business practices.
According to Marek Busfy, the senior vice president and CEO of ATC Africa, “We believe this agreement, which secures incremental lease-up on our existing portfolio and a strong development pipeline, clearly demonstrates the differentiated value ATC Africa can provide its customers through our quality of assets, leading build-to-suit capabilities, and best-in-class Power-as-a-Service and green site offerings."
AMT continues focusing on macro-tower investment opportunities and gaining scale in attractive global markets. It has built more than 45,000 international sites since it began expanding internationally. Around 8,000 of these sites have been built in Africa as carriers continue to invest in their network coverage and densification needs. Further, in the nine months ended Sep 30, 2023, it purchased 69 communications sites and other communications infrastructure assets in the United States, Canada, France, Poland and Spain for $65.7 million.
Moreover, in 2022, AMT acquired and constructed roughly 7,405 communications sites globally. Its 2021 acquisition of Telxius’ European and Latin American tower divisions, consisting of around 31,000 communications sites in Argentina, Brazil, Chile, Germany, Peru and Spain, has offered a significant scale in these attractive markets, diversifying its footprint with the strong, primarily tier-1, multinational tenant base.
The advancement in mobile technology, such as 4G and 5G, and the proliferation of bandwidth-intensive applications propel growth in mobile data usage globally. Moreover, the advent of next-generation technologies, including edge computing functionality, autonomous vehicle networks and the Internet of Things, and the rampant usage of network-intensive applications for video conferencing and cloud services and hybrid-working scenarios have rapidly increased wireless connectivity usage.
Amid this, wireless service providers and carriers have been deploying additional equipment for existing networks to enhance network coverage and capacity. Given its portfolio of nearly 225,000 communication sites worldwide and the unmatched geographic diversification of its sites, American Tower is strategically positioned to capture incremental demand from global 4G and 5G deployment efforts, growing wireless penetration and spectrum auctions.
In the third quarter of 2023, the company recorded healthy year-over-year organic tenant billings growth of 6.3% and total tenant billings growth of 7.3%. In the nine months ended Sep 30, 2023, revenues from the property segment and adjusted EBITDA increased by 5.2% and 7.9%, respectively, on a year-over-year basis. However, customer concentration and high interest rates pose key concerns for AMT.
Shares of this Zacks Rank #3 (Hold) company have risen 8.6% in the past month against the industry’s decline of 1.3%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are Welltower (WELL - Free Report) , Iron Mountain Incorporated (IRM - Free Report) and Boston Properties (BXP - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Welltower’s current-year funds from operations (FFO) per share has moved marginally northward over the past week to $3.58.
The Zacks Consensus Estimate for Iron Mountain’s 2023 FFO per share has moved marginally upward in the past three months to $3.97.
The Zacks Consensus Estimate for Boston Properties’ ongoing year’s FFO per share has been raised marginally over the past two months to $7.30.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.