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American Tower's (AMT) Q4 AFFO Beat Estimates, Revenues Rise Y/Y
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American Tower Corporation (AMT - Free Report) reported fourth-quarter adjusted funds from operations (AFFO) per share, attributable to AMT common stockholders, of $2.29, outpacing the Zacks Consensus Estimate of $2.18. Total revenues of $2.79 billion, beat the Zacks Consensus Estimate of $2.73 billion.
Its AFFO per share reported a 2.1% decrease year over year, while revenues rose 3% from the prior-year quarter.
For 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.
American Tower Corporation Price, Consensus and EPS Surprise
AMT’s Total Property revenues grew 4.6% year over year to nearly $2.77 billion in the fourth quarter of 2023. The figure was higher than our estimate of $2.69 billion.
Data Centers revenues increased 8.6% year over year to $215 million. The figure was slightly higher than our estimate of $213.5 million.
Services revenues were $21 million, which declined 65% year over year. Our estimate of $25.3 million was higher than the reported number.
Non-Financial Metrics
Organic Tenant Billings for the United States and Canada grew 5.1% for the quarter ended Dec 31, 2023. The figure was slightly lower than our projection of 5.2%.
Organic Tenant Billings for the Total Property registered year over year growth of 6.1%. Our projection of 5.9% was lower than the reported figure.
Organic Tenant Billings for the Total International grew 7.7% on a year-over-year basis. The figure was higher than our estimate of 6.5%.
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 $11.05-$11.23 billion, suggesting a year-over-year improvement of 1.3% at the mid-point.
The adjusted EBITDA is projected at $7.08-$7.19 billion. 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 $4.78-$4.89 billion, 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 billion.
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 Beat Estimates, Revenues Rise Y/Y
American Tower Corporation (AMT - Free Report) reported fourth-quarter adjusted funds from operations (AFFO) per share, attributable to AMT common stockholders, of $2.29, outpacing the Zacks Consensus Estimate of $2.18. Total revenues of $2.79 billion, beat the Zacks Consensus Estimate of $2.73 billion.
Its AFFO per share reported a 2.1% decrease year over year, while revenues rose 3% from the prior-year quarter.
For 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.
American Tower Corporation Price, Consensus and EPS Surprise
American Tower Corporation price-consensus-eps-surprise-chart | American Tower Corporation Quote
Solid Operating Revenues
AMT’s Total Property revenues grew 4.6% year over year to nearly $2.77 billion in the fourth quarter of 2023. The figure was higher than our estimate of $2.69 billion.
Data Centers revenues increased 8.6% year over year to $215 million. The figure was slightly higher than our estimate of $213.5 million.
Services revenues were $21 million, which declined 65% year over year. Our estimate of $25.3 million was higher than the reported number.
Non-Financial Metrics
Organic Tenant Billings for the United States and Canada grew 5.1% for the quarter ended Dec 31, 2023. The figure was slightly lower than our projection of 5.2%.
Organic Tenant Billings for the Total Property registered year over year growth of 6.1%. Our projection of 5.9% was lower than the reported figure.
Organic Tenant Billings for the Total International grew 7.7% on a year-over-year basis. The figure was higher than our estimate of 6.5%.
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 $11.05-$11.23 billion, suggesting a year-over-year improvement of 1.3% at the mid-point.
The adjusted EBITDA is projected at $7.08-$7.19 billion. 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 $4.78-$4.89 billion, 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 billion.
Currently, AMT carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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.