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American Tower's (AMT) Q4 AFFO & Revenues Beat Estimates
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Shares of American Tower Corporation (AMT - Free Report) have gained nearly 1.3% in today’s trading session in response to stellar fourth-quarter results.
Adjusted funds from operations (AFFO) per share, attributable to AMT common stockholders, of $2.29 beat the Zacks Consensus Estimate of $2.18 but declined 2.1% year over year.
Results reflect better-than-anticipated revenues, aided by revenue growth across its Property segment. American Tower recorded healthy year-over-year organic tenant billings growth of 6.1% and total tenant billings growth of 7.1%. It has also issued its 2024 outlook.
The company has clocked in total revenues of $2.79 billion, outpacing the Zacks Consensus Estimate of $2.73 billion. On a year-over-year basis, the figure increased 3% from the prior-year quarter.
Per Steven Vondran, CEO, American Tower, “In 2023, we combined record colocation and amendment growth in the US & Canada and a second consecutive year of record sales at CoreSite, with resilient performance in our international markets. Looking to 2024 and beyond, technology evolutions such as 5G, AI and the requirement for more distributed compute workloads are expected to drive tremendous demand for our communications infrastructure assets. As a result, we’re focused on leveraging our differentiated global scale, best-in-class operating model and investment-grade balance sheet to deliver increasing shareholder returns, strong, sustainable growth and a unique value proposition for all of our stakeholders.”
In 2023, the company’s AFFO of $9.87 per share increased 1.1% from a year ago and beat the consensus estimate of $9.79. Total revenues grew 4% to $11.14 billion and outpaced the consensus mark of $11.09 billion.
Quarter in Detail
Adjusted EBITDA was $1.76 billion, up 3.2% from the prior-year period. The adjusted EBITDA margin was 63.2% in the quarter.
In the reported quarter, AMT shelled out $16 million for the purchase of communications sites and other communications-related infrastructure globally.
Property Operations
Revenues were $2.77 billion, up almost 4.6% on a year-over-year basis. Our estimate for Property revenues was pegged at $2.69 billion. The operating profit was $1.83 billion, and the operating profit margin was 66%.
In the Property segment, revenues from the United States and Canada totaled $1.30 billion, up 1.7% year over year. Total international revenues amounted to $1.25 billion, rising 6.9%. Newly formed Data Centers added $215 million to Property revenues, up 8.6% from $198 million in the prior-year period.
Service Operations
Revenues totaled $21 million in the reported quarter, down from $60.2 million in the prior-year quarter. We expected the metric to be $54.9 million. The operating profit was $4 million and the operating profit margin was 19% in the October-December quarter.
Cash Flow & Liquidity
In the fourth quarter, American Tower generated $1.14 billion of cash from operating activities, falling 3.6% year over year. Free cash flow in the period was $611 million, jumping 17.7% from a year ago.
As of Dec 31, 2023, the company had $9.6 billion in total liquidity. This comprised $2 billion in cash and cash equivalents and availability of $7.6 billion under its revolving credit facilities (net of any outstanding letters of credit).
2024 Guidance
American Tower anticipates total property revenues of $11,050 -$11,230 million, suggesting a year-over-year improvement of 1.3% at the mid-point.
The adjusted EBITDA is projected at $7,080-$7,190 million. This indicates a mid-point marginal increase of 0.7%.
The AFFO attributable to AMT common stockholders is expected to be in the band of $4,780 -$4,890 million, implying 4.8% year-over-year growth at the mid-point.
AFFO per share is expected to be within $10.21-$10.45, indicating a rise at the mid-point of 4.7%. The Zacks Consensus Estimate for the same is pegged at $10.27, which is within the company’s guided range.
Capital expenditure is projected to be $1,545-$1,655 million.
Lamar Advertising Company (LAMR - Free Report) reported fourth-quarter 2023 adjusted funds from operations (AFFO) per share of $2.10, beating the Zacks Consensus Estimate of $1.95. The figure also compared favorably with the prior-year quarter's tally of $1.91.
LAMR’s results reflect year-over-year growth in the top line. However, higher interest expenses during the quarter acted as a dampener.
Public Storage (PSA - Free Report) reported a fourth-quarter 2023 core funds from operations (FFO) per share of $4.20, beating the Zacks Consensus Estimate of $4.15. The figure increased 1% year over year.
Results showed a better-than-anticipated top line, aided by an improvement in the realized annual rent per available square foot in the reported quarter. PSA also benefited from its expansion efforts through acquisitions, developments and extensions. It also issued its 2024 outlook.
Welltower Inc.’s (WELL - Free Report) fourth-quarter 2023 normalized FFO per share of 96 cents surpassed the Zacks Consensus Estimate of 94 cents. The reported figure improved 15.7% year over year.
Results reflect better-than-anticipated revenues. The total same-store net operating income (SSNOI) increased year over year, driven by SSNOI growth in the seniors housing operating portfolio. WELL issued its guidance for 2024.
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) Q4 AFFO & Revenues Beat Estimates
Shares of American Tower Corporation (AMT - Free Report) have gained nearly 1.3% in today’s trading session in response to stellar fourth-quarter results.
Adjusted funds from operations (AFFO) per share, attributable to AMT common stockholders, of $2.29 beat the Zacks Consensus Estimate of $2.18 but declined 2.1% year over year.
Results reflect better-than-anticipated revenues, aided by revenue growth across its Property segment. American Tower recorded healthy year-over-year organic tenant billings growth of 6.1% and total tenant billings growth of 7.1%. It has also issued its 2024 outlook.
The company has clocked in total revenues of $2.79 billion, outpacing the Zacks Consensus Estimate of $2.73 billion. On a year-over-year basis, the figure increased 3% from the prior-year quarter.
Per Steven Vondran, CEO, American Tower, “In 2023, we combined record colocation and amendment growth in the US & Canada and a second consecutive year of record sales at CoreSite, with resilient performance in our international markets. Looking to 2024 and beyond, technology evolutions such as 5G, AI and the requirement for more distributed compute workloads are expected to drive tremendous demand for our communications infrastructure assets. As a result, we’re focused on leveraging our differentiated global scale, best-in-class operating model and investment-grade balance sheet to deliver increasing shareholder returns, strong, sustainable growth and a unique value proposition for all of our stakeholders.”
In 2023, the company’s AFFO of $9.87 per share increased 1.1% from a year ago and beat the consensus estimate of $9.79. Total revenues grew 4% to $11.14 billion and outpaced the consensus mark of $11.09 billion.
Quarter in Detail
Adjusted EBITDA was $1.76 billion, up 3.2% from the prior-year period. The adjusted EBITDA margin was 63.2% in the quarter.
In the reported quarter, AMT shelled out $16 million for the purchase of communications sites and other communications-related infrastructure globally.
Property Operations
Revenues were $2.77 billion, up almost 4.6% on a year-over-year basis. Our estimate for Property revenues was pegged at $2.69 billion. The operating profit was $1.83 billion, and the operating profit margin was 66%.
In the Property segment, revenues from the United States and Canada totaled $1.30 billion, up 1.7% year over year. Total international revenues amounted to $1.25 billion, rising 6.9%. Newly formed Data Centers added $215 million to Property revenues, up 8.6% from $198 million in the prior-year period.
Service Operations
Revenues totaled $21 million in the reported quarter, down from $60.2 million in the prior-year quarter. We expected the metric to be $54.9 million. The operating profit was $4 million and the operating profit margin was 19% in the October-December quarter.
Cash Flow & Liquidity
In the fourth quarter, American Tower generated $1.14 billion of cash from operating activities, falling 3.6% year over year. Free cash flow in the period was $611 million, jumping 17.7% from a year ago.
As of Dec 31, 2023, the company had $9.6 billion in total liquidity. This comprised $2 billion in cash and cash equivalents and availability of $7.6 billion under its revolving credit facilities (net of any outstanding letters of credit).
2024 Guidance
American Tower anticipates total property revenues of $11,050 -$11,230 million, suggesting a year-over-year improvement of 1.3% at the mid-point.
The adjusted EBITDA is projected at $7,080-$7,190 million. This indicates a mid-point marginal increase of 0.7%.
The AFFO attributable to AMT common stockholders is expected to be in the band of $4,780 -$4,890 million, implying 4.8% year-over-year growth at the mid-point.
AFFO per share is expected to be within $10.21-$10.45, indicating a rise at the mid-point of 4.7%. The Zacks Consensus Estimate for the same is pegged at $10.27, which is within the company’s guided range.
Capital expenditure is projected to be $1,545-$1,655 million.
Currently, AMT carries a Zacks Rank #2 (Buy). 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
Lamar Advertising Company (LAMR - Free Report) reported fourth-quarter 2023 adjusted funds from operations (AFFO) per share of $2.10, beating the Zacks Consensus Estimate of $1.95. The figure also compared favorably with the prior-year quarter's tally of $1.91.
LAMR’s results reflect year-over-year growth in the top line. However, higher interest expenses during the quarter acted as a dampener.
Public Storage (PSA - Free Report) reported a fourth-quarter 2023 core funds from operations (FFO) per share of $4.20, beating the Zacks Consensus Estimate of $4.15. The figure increased 1% year over year.
Results showed a better-than-anticipated top line, aided by an improvement in the realized annual rent per available square foot in the reported quarter. PSA also benefited from its expansion efforts through acquisitions, developments and extensions. It also issued its 2024 outlook.
Welltower Inc.’s (WELL - Free Report) fourth-quarter 2023 normalized FFO per share of 96 cents surpassed the Zacks Consensus Estimate of 94 cents. The reported figure improved 15.7% year over year.
Results reflect better-than-anticipated revenues. The total same-store net operating income (SSNOI) increased year over year, driven by SSNOI growth in the seniors housing operating portfolio. WELL issued its guidance for 2024.
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.