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American Tower's (AMT) Q1 AFFO Beat Estimates, '24 View Raised
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Shares of American Tower Corporation (AMT - Free Report) have declined marginally so far in today’s trading session despite stellar first-quarter results.
Adjusted funds from operations (AFFO) per share, attributable to AMT common stockholders, of $2.79 beat the Zacks Consensus Estimate of $2.55 and climbed 9.8% 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 5.4% and total tenant billings growth of 6.3%. It has also raised its 2024 outlook.
The company has clocked in total revenues of $2.83 billion, outpacing the Zacks Consensus Estimate of $2.80 billion. On a year-over-year basis, the figure increased 2.4% from the prior-year quarter.
Per Steven Vondran, CEO of American Tower, “The strong performance we saw in 2023, underscored by robust demand across our asset platforms, continued into the first quarter, resulting in Attributable AFFO per share growth of nearly 10%. With visibility into accelerating activity across the U.S. and Europe, a continuation of elevated new business growth across many of our emerging markets, positive collection trends in India, and another strong quarter of signed leasing at CoreSite, our global business is positioned to deliver quality, recurring growth as we move through the year and over the long-term.”
Quarter in Detail
Adjusted EBITDA was $1.85 billion, up 5.2% from the prior-year period. The adjusted EBITDA margin was 65.4% in the quarter.
In January, American Tower, through its subsidiaries, ATC Asia Pacific Pte. Ltd. and ATC Telecom Infrastructure Private Limited (“ATC TIPL”), which holds the company’s operations in India, entered into an agreement with Data Infrastructure Trust (“DIT”), an infrastructure investment trust, pursuant to which DIT will acquire a 100% ownership interest in ATC TIPL.
The pending transaction, subject to customary closing conditions, including government and regulatory approval, is expected to close in the second half of 2024.
Property Operations
Revenues were $2.80 billion, up 3.3% on a year-over-year basis. Total operating profit was $1.90 billion, and the operating profit margin was 68%.
In the Property segment, revenues from the United States and Canada totaled $1.31 billion, up 1.8% year over year. Total international revenues amounted to $1.27 billion, rising 3.7%. Newly formed Data Centers added $225 million to Property revenues, up 10.8% from $203 million in the prior-year period.
Service Operations
Revenues totaled $30.2 million in the reported quarter, down from $52.7 million in the prior-year quarter. The operating profit was $11 million and the operating profit margin was 38% in the January-March quarter.
Cash Flow & Liquidity
In the first quarter, American Tower generated $1.28 billion of cash from operating activities, rising 19.9% year over year. Free cash flow in the period was $882 million, jumping 47.5% from a year ago.
As of Mar 31, 2024, the company had $9.3 billion in total liquidity. This comprised $2.4 billion in cash and cash equivalents and availability of $6.9 billion under its revolving credit facilities (net of any outstanding letters of credit).
2024 Guidance Raised
American Tower anticipates total property revenues of $11,080 -$11,260 million, suggesting a year-over-year improvement of 1.5% at the mid-point. The earlier guided range was $11,050 -$11,230 million.
The adjusted EBITDA was revised upward to $7,120-$7,230 million from $7,080-$7,190 million stated earlier. This indicates a year-over-year mid-point increase of 1.2%.
The AFFO attributable to AMT common stockholders is now expected to be in the band of $4,820-$4,930 million, implying 5.7% year-over-year growth at the mid-point. The company’s prior expectations ranged from $4,780-$4,890 million.
AFFO per share is revised upward to $10.30-$10.53, indicating a rise at the mid-point of 5.6%. The prior projected range was $10.21-$10.45. The Zacks Consensus Estimate for the same is pegged at $10.35, which is within the company’s guided range.
It retained its guidance for capital expenditure between $1,545-$1,655 million.
Cousins Properties’ (CUZ - Free Report) first-quarter 2024 funds from operations (FFO) per share of 65 cents beat the Zacks Consensus Estimate of 63 cents.
Results reflect better-than-anticipated revenues. Although the company witnessed healthy leasing activity, higher interest expenses acted as a dampener. CUZ also revised its 2024 outlook for FFO per share.
Prologis, Inc. (PLD - Free Report) reported first-quarter 2024 core FFO per share of $1.28, in line with the Zacks Consensus Estimate. This compares favorably with the year-ago quarter’s figure of $1.22.
However, PLD trimmed its guidance for 2024 as it prepares for a slower leasing environment in the next quarter or two.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported first-quarter 2024 AFFO per share of $2.35, which beat the Zacks Consensus Estimate of $2.31. The reported figure also climbed 7.3% from the year-ago quarter.
Results reflected a rise in revenues, aided by decent leasing activity and rental rate growth. ARE also narrowed its 2024 outlook.
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) Q1 AFFO Beat Estimates, '24 View Raised
Shares of American Tower Corporation (AMT - Free Report) have declined marginally so far in today’s trading session despite stellar first-quarter results.
Adjusted funds from operations (AFFO) per share, attributable to AMT common stockholders, of $2.79 beat the Zacks Consensus Estimate of $2.55 and climbed 9.8% 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 5.4% and total tenant billings growth of 6.3%. It has also raised its 2024 outlook.
The company has clocked in total revenues of $2.83 billion, outpacing the Zacks Consensus Estimate of $2.80 billion. On a year-over-year basis, the figure increased 2.4% from the prior-year quarter.
Per Steven Vondran, CEO of American Tower, “The strong performance we saw in 2023, underscored by robust demand across our asset platforms, continued into the first quarter, resulting in Attributable AFFO per share growth of nearly 10%. With visibility into accelerating activity across the U.S. and Europe, a continuation of elevated new business growth across many of our emerging markets, positive collection trends in India, and another strong quarter of signed leasing at CoreSite, our global business is positioned to deliver quality, recurring growth as we move through the year and over the long-term.”
Quarter in Detail
Adjusted EBITDA was $1.85 billion, up 5.2% from the prior-year period. The adjusted EBITDA margin was 65.4% in the quarter.
In January, American Tower, through its subsidiaries, ATC Asia Pacific Pte. Ltd. and ATC Telecom Infrastructure Private Limited (“ATC TIPL”), which holds the company’s operations in India, entered into an agreement with Data Infrastructure Trust (“DIT”), an infrastructure investment trust, pursuant to which DIT will acquire a 100% ownership interest in ATC TIPL.
The pending transaction, subject to customary closing conditions, including government and regulatory approval, is expected to close in the second half of 2024.
Property Operations
Revenues were $2.80 billion, up 3.3% on a year-over-year basis. Total operating profit was $1.90 billion, and the operating profit margin was 68%.
In the Property segment, revenues from the United States and Canada totaled $1.31 billion, up 1.8% year over year. Total international revenues amounted to $1.27 billion, rising 3.7%. Newly formed Data Centers added $225 million to Property revenues, up 10.8% from $203 million in the prior-year period.
Service Operations
Revenues totaled $30.2 million in the reported quarter, down from $52.7 million in the prior-year quarter. The operating profit was $11 million and the operating profit margin was 38% in the January-March quarter.
Cash Flow & Liquidity
In the first quarter, American Tower generated $1.28 billion of cash from operating activities, rising 19.9% year over year. Free cash flow in the period was $882 million, jumping 47.5% from a year ago.
As of Mar 31, 2024, the company had $9.3 billion in total liquidity. This comprised $2.4 billion in cash and cash equivalents and availability of $6.9 billion under its revolving credit facilities (net of any outstanding letters of credit).
2024 Guidance Raised
American Tower anticipates total property revenues of $11,080 -$11,260 million, suggesting a year-over-year improvement of 1.5% at the mid-point. The earlier guided range was $11,050 -$11,230 million.
The adjusted EBITDA was revised upward to $7,120-$7,230 million from $7,080-$7,190 million stated earlier. This indicates a year-over-year mid-point increase of 1.2%.
The AFFO attributable to AMT common stockholders is now expected to be in the band of $4,820-$4,930 million, implying 5.7% year-over-year growth at the mid-point. The company’s prior expectations ranged from $4,780-$4,890 million.
AFFO per share is revised upward to $10.30-$10.53, indicating a rise at the mid-point of 5.6%. The prior projected range was $10.21-$10.45. The Zacks Consensus Estimate for the same is pegged at $10.35, which is within the company’s guided range.
It retained its guidance for capital expenditure between $1,545-$1,655 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
Cousins Properties’ (CUZ - Free Report) first-quarter 2024 funds from operations (FFO) per share of 65 cents beat the Zacks Consensus Estimate of 63 cents.
Results reflect better-than-anticipated revenues. Although the company witnessed healthy leasing activity, higher interest expenses acted as a dampener. CUZ also revised its 2024 outlook for FFO per share.
Prologis, Inc. (PLD - Free Report) reported first-quarter 2024 core FFO per share of $1.28, in line with the Zacks Consensus Estimate. This compares favorably with the year-ago quarter’s figure of $1.22.
However, PLD trimmed its guidance for 2024 as it prepares for a slower leasing environment in the next quarter or two.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported first-quarter 2024 AFFO per share of $2.35, which beat the Zacks Consensus Estimate of $2.31. The reported figure also climbed 7.3% from the year-ago quarter.
Results reflected a rise in revenues, aided by decent leasing activity and rental rate growth. ARE also narrowed its 2024 outlook.
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.