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American Tower Stock Down Despite AFFO & Revenue Beat, '25 View Raised
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Key Takeaways
American Tower's Q3 AFFO of $2.78 beat estimates and rose from $2.64 a year ago.
Total revenues climbed 7.7% year over year to $2.72 billion, exceeding expectations.
AMT lifted its 2025 outlook for property revenues, adjusted EBITDA, and AFFO per share.
American Tower Corporation (AMT - Free Report) reported its third-quarter 2025 adjusted funds from operations (AFFO), attributable to AMT common stockholders per share, of $2.78, beating the Zacks Consensus Estimate of $2.62. This compares favorably with the prior year’s reported figure of $2.64. However, the stock was trading around 2% down during the early hours of today's trading session.
Results reflect a year-over-year rise in revenues, aided by revenue growth across its property and service operations segment. American Tower recorded healthy year-over-year organic tenant billings growth of 5% and total tenant billings growth of 5.5%. The company has raised its 2025 FFO outlook.
The company’s total revenues were $2.72 billion, outpacing the Zacks Consensus Estimate of $2.65 billion. The figure increased 7.7% from the prior-year quarter.
According to Steven Vondran, CEO of American Tower, “Leasing activity across our U.S. and international towers remains robust as carriers invest in network coverage and capacity, and in our data center business, strong hybrid-cloud demand, favorable pricing, and rising AI-related workloads drove a strong quarter, including a record quarter of signed retail new leasing.”
AMT’s Quarter in Detail
Adjusted EBITDA was $1.82 billion, up 7.6% from the prior-year period. The adjusted EBITDA margin was 66.8%.
AMT’s Property Operations
Revenues were $2.62 billion, up by 5.9% on a year-over-year basis. Total operating profit was $1.83 billion, and the operating profit margin was 70%.
In the Property segment, revenues from the United States and Canada totaled $1.32 billion, up marginally year over year. Total international revenues amounted to $1.03 billion, up 12.3% year over year. Data Centers added $267 million to Property revenues, up 14.1% from the prior-year period.
AMT’s Service Operations
Revenues totaled $101 million in the quarter, rising significantly from $52 million in the prior-year quarter. The operating profit was $41 million, and the operating profit margin was 41% in the July-September quarter.
Cash Flow & Liquidity of AMT
In the third quarter, American Tower generated $1.46 billion of cash from operating activities, down 0.6% year over year. Free cash flow in the period was $984 million, falling 5.1% from the prior year.
As of Sept. 30, 2025, the company had $10.7 billion in total liquidity. This comprised $2.0 billion in cash and cash equivalents and the availability of $8.7 billion under its revolving credit facilities (net of any outstanding letters of credit).
AMT’s 2025 Guidance Raised
American Tower now anticipates total property revenues in the band of $10,210-$10,290 million, up from the earlier guided range of $10,135-$10,285 million.
Adjusted EBITDA is revised to the $7,058-$7,113 million band, up from the prior projected range of $7,005-$7,075 million.
AFFO attributable to AMT common stockholders is now expected in the band of $4,973-$5,028 million, up from the company’s prior expectations between $4,905-$4,995 million.
AFFO, attributable to AMT common stockholders per share, is revised upward to $10.60-$10.72 from the prior projected range of $10.46-$10.65. The Zacks Consensus Estimate for the metric is pegged at $10.58, which is below the company’s guided range.
SL Green Realty Corp. (SLG - Free Report) reported third-quarter 2025 FFO per share of $1.58, which surpassed the Zacks Consensus Estimate of $1.34. The company had reported an FFO of $1.13 per share in the year-ago period.
Results reflected strong leasing activity with improved average rental rates on the Manhattan office leases signed in the period. Presently, SLG carries a Zacks Rank #3 (Hold).
Prologis (PLD - Free Report) reported third-quarter 2025 core FFO per share of $1.49, outpacing the Zacks Consensus Estimate of $1.44. This compares favorably with the year-ago quarter’s figure of $1.43.
Results reflected a rise in rental revenues and healthy leasing activity. However, high interest expenses were an undermining factor. Currently, PLD carries a Zacks Rank #3.
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 Stock Down Despite AFFO & Revenue Beat, '25 View Raised
Key Takeaways
American Tower Corporation (AMT - Free Report) reported its third-quarter 2025 adjusted funds from operations (AFFO), attributable to AMT common stockholders per share, of $2.78, beating the Zacks Consensus Estimate of $2.62. This compares favorably with the prior year’s reported figure of $2.64. However, the stock was trading around 2% down during the early hours of today's trading session.
Results reflect a year-over-year rise in revenues, aided by revenue growth across its property and service operations segment. American Tower recorded healthy year-over-year organic tenant billings growth of 5% and total tenant billings growth of 5.5%. The company has raised its 2025 FFO outlook.
The company’s total revenues were $2.72 billion, outpacing the Zacks Consensus Estimate of $2.65 billion. The figure increased 7.7% from the prior-year quarter.
According to Steven Vondran, CEO of American Tower, “Leasing activity across our U.S. and international towers remains robust as carriers invest in network coverage and capacity, and in our data center business, strong hybrid-cloud demand, favorable pricing, and rising AI-related workloads drove a strong quarter, including a record quarter of signed retail new leasing.”
AMT’s Quarter in Detail
Adjusted EBITDA was $1.82 billion, up 7.6% from the prior-year period. The adjusted EBITDA margin was 66.8%.
AMT’s Property Operations
Revenues were $2.62 billion, up by 5.9% on a year-over-year basis. Total operating profit was $1.83 billion, and the operating profit margin was 70%.
In the Property segment, revenues from the United States and Canada totaled $1.32 billion, up marginally year over year. Total international revenues amounted to $1.03 billion, up 12.3% year over year. Data Centers added $267 million to Property revenues, up 14.1% from the prior-year period.
AMT’s Service Operations
Revenues totaled $101 million in the quarter, rising significantly from $52 million in the prior-year quarter. The operating profit was $41 million, and the operating profit margin was 41% in the July-September quarter.
Cash Flow & Liquidity of AMT
In the third quarter, American Tower generated $1.46 billion of cash from operating activities, down 0.6% year over year. Free cash flow in the period was $984 million, falling 5.1% from the prior year.
As of Sept. 30, 2025, the company had $10.7 billion in total liquidity. This comprised $2.0 billion in cash and cash equivalents and the availability of $8.7 billion under its revolving credit facilities (net of any outstanding letters of credit).
AMT’s 2025 Guidance Raised
American Tower now anticipates total property revenues in the band of $10,210-$10,290 million, up from the earlier guided range of $10,135-$10,285 million.
Adjusted EBITDA is revised to the $7,058-$7,113 million band, up from the prior projected range of $7,005-$7,075 million.
AFFO attributable to AMT common stockholders is now expected in the band of $4,973-$5,028 million, up from the company’s prior expectations between $4,905-$4,995 million.
AFFO, attributable to AMT common stockholders per share, is revised upward to $10.60-$10.72 from the prior projected range of $10.46-$10.65. The Zacks Consensus Estimate for the metric is pegged at $10.58, which is below the company’s guided range.
AMT’s Zacks Rank
AMT currently 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
SL Green Realty Corp. (SLG - Free Report) reported third-quarter 2025 FFO per share of $1.58, which surpassed the Zacks Consensus Estimate of $1.34. The company had reported an FFO of $1.13 per share in the year-ago period.
Results reflected strong leasing activity with improved average rental rates on the Manhattan office leases signed in the period. Presently, SLG carries a Zacks Rank #3 (Hold).
Prologis (PLD - Free Report) reported third-quarter 2025 core FFO per share of $1.49, outpacing the Zacks Consensus Estimate of $1.44. This compares favorably with the year-ago quarter’s figure of $1.43.
Results reflected a rise in rental revenues and healthy leasing activity. However, high interest expenses were an undermining factor. Currently, PLD carries a Zacks Rank #3.
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.