CONSOLIDATED HIGHLIGHTS

First Quarter 2024

• Total revenue increased 2.4% to $2,834 million
• Property revenue increased 3.3% to $2,804 million
• Net income increased 192.6% to $922 million^(1)(2)(3)
• Adjusted EBITDA increased 5.2% to $1,854 million
• Net income attributable to AMT common stockholders increased 173.2% to $917 million^(1)(2)(3)
• AFFO attributable to AMT common stockholders increased 10.0% to $1,303 million

BOSTON--(BUSINESS WIRE)--Apr. 30, 2024-- American Tower Corporation (NYSE: AMT) today reported financial results for the quarter ended March 31, 2024.

Steven Vondran, American Tower’s Chief Executive Officer, stated, “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.

By coupling these durable secular trends with our commitment to leveraging a best-in-class operating model to yield efficiencies for American Tower and our customers alike, we see a long runway for driving expansion in our cash margins and optionality to deploy capital towards accretive development opportunities, as we support our customers’ growing network needs. Taken together, we believe we are uniquely positioned to drive sustained growth throughout the 5G cycle and convert increasing demand for our portfolio of digital infrastructure assets into incremental shareholder value throughout 2024 and beyond.”

CONSOLIDATED OPERATING RESULTS OVERVIEW

American Tower generated the following operating results for the quarter ended March 31, 2024 (all comparative information is presented against the quarter ended March 31, 2023).

Please refer to “Non-GAAP and Defined Financial Measures” below for definitions and other information regarding the Company’s use of non-GAAP measures. For financial information and reconciliations to GAAP measures, please refer to the “Unaudited Selected Consolidated Financial Information” below.

CAPITAL ALLOCATION OVERVIEW

Distributions – During the quarter ended March 31, 2024, the Company declared the following regular cash distributions to its common stockholders:

Capital Expenditures – During the first quarter of 2024, total capital expenditures were approximately $402 million, of which $36 million was for non-discretionary capital improvements and corporate capital expenditures. For additional capital expenditure details, please refer to the supplemental disclosure package available on the Company’s website.

Other Events – On January 4, 2024, the Company, through its subsidiaries, ATC Asia Pacific Pte. Ltd. and ATC Telecom Infrastructure Private Limited (“ATC TIPL”), which holds the Company’s operations in India, consistent with its previously disclosed exploration of strategic alternatives for the Company’s operations in India, entered into an agreement with Data Infrastructure Trust (“DIT”), an infrastructure investment trust sponsored by an affiliate of Brookfield Asset Management, pursuant to which DIT will acquire a 100% ownership interest in ATC TIPL (the “Pending ATC TIPL Transaction”). The Company will retain the full economic benefit associated with the optionally convertible debentures issued by a customer in India, Vodafone Idea Limited (the “VIL OCDs”), of which the Company converted an aggregate face value of 14.4 billion Indian Rupees (“INR”) (approximately $172.7 million) into 1,440 million shares of equity of VIL (the “VIL Shares”) in March 2024, as well as rights to payments on certain existing customer receivables. On April 29, 2024, the Company completed the sale of the VIL Shares at a price of 12.78 INR per share. The Company expects the net proceeds of this transaction to be approximately 18.0 billion INR (approximately $216.0 million at the date of settlement) after deducting commissions and fees.

Subject to certain pre-closing terms, total aggregate consideration would potentially represent up to approximately 210 billion INR (approximately $2.5 billion), including the value of the VIL OCDs and the VIL Shares, payments on certain existing customer receivables, the repayment of existing intercompany debt and the repayment, or assumption, of the Company’s existing term loan in India, by DIT, as well as the accrued ticking fee proceeds that commenced on October 1, 2023 through the date of closing. During the three months ended March 31, 2024, ATC TIPL distributed approximately 9.6 billion INR (approximately $115.1 million) to the Company, which will be deducted from the total aggregate consideration to be received by the Company at closing. Additionally, the Pending ATC TIPL Transaction is expected to close in the second half of 2024, subject to customary closing conditions, including government and regulatory approval.

LEVERAGE AND FINANCING OVERVIEW

Leverage – For the quarter ended March 31, 2024, the Company’s Net Leverage Ratio was 5.0x net debt (total debt less cash and cash equivalents) to first quarter 2024 annualized Adjusted EBITDA.

Liquidity and Financing Activities – As of March 31, 2024, the Company had approximately $9.3 billion of total liquidity, consisting of approximately $2.4 billion in cash and cash equivalents plus the ability to borrow an aggregate of approximately $6.9 billion under its revolving credit facilities, net of any outstanding letters of credit.

On January 12, 2024, the Company repaid $500.0 million aggregate principal amount of its 0.600% senior unsecured notes due 2024 (the “0.600% Notes”) upon their maturity. On February 14, 2024, the Company repaid $1.0 billion aggregate principal amount of its 5.00% senior unsecured notes due 2024 (the “5.00% Notes”) upon their maturity. Such notes were repaid using borrowings under its $6.0 billion senior unsecured multicurrency revolving credit facility. Upon completion of the repayment, none of the 0.600% Notes or the 5.00% Notes remained outstanding.

On March 7, 2024, the Company issued an aggregate of $1.3 billion in senior unsecured notes. The net proceeds of the offering were used to repay existing indebtedness under its $6.0 billion senior unsecured multicurrency revolving credit facility.

FULL YEAR 2024 OUTLOOK

The following full year 2024 estimates are based on a number of assumptions that management believes to be reasonable and reflect the Company’s expectations as of April 30, 2024. Actual results may differ materially from these estimates as a result of various factors, and the Company refers you to the cautionary language regarding “forward-looking statements” included in this press release when considering this information.

The Company’s outlook is based on the following average foreign currency exchange rates to 1.00 U.S. Dollar for April 30, 2024 through December 31, 2024: (a) 1,247 Argentinean Pesos; (b) 1.53 Australian Dollars; (c) 111.20 Bangladeshi Taka; (d) 5.20 Brazilian Reais; (e) 1.36 Canadian Dollars; (f) 965 Chilean Pesos; (g) 3,950 Colombian Pesos; (h) 0.93 Euros; (i) 14.00 Ghanaian Cedis; (j) 83.30 Indian Rupees; (k) 131 Kenyan Shillings; (l) 17.20 Mexican Pesos; (m) 1.67 New Zealand Dollars; (n) 1,300 Nigerian Naira; (o) 7,480 Paraguayan Guarani; (p) 3.75 Peruvian Soles; (q) 56.40 Philippine Pesos; (r) 18.95 South African Rand; (s) 4,000 Ugandan Shillings; and (t) 610 West African CFA Francs.

The Company’s outlook reflects estimated negative impacts of foreign currency exchange rate fluctuations to property revenue, Adjusted EBITDA and AFFO attributable to AMT common stockholders of approximately $15 million, $5 million and $5 million, respectively, relative to the Company’s prior 2024 outlook. The impact of foreign currency exchange rate fluctuations on net income metrics is not provided, as the impact on all components of the net income measure cannot be calculated without unreasonable effort.

The Company’s 2024 outlook assumes a full year contribution from the India business, which includes approximately $20 million of revenue reserves, as compared to $65 million of revenue reserves assumed in the prior outlook, and is net of the $29 million revenue reserve reversal recognized in Q1 2024 associated with favorable customer collections. The $20 million revenue reserve assumed in the Company’s 2024 outlook has a corresponding negative impact to the financial measures below, including a $0.04 per share negative impact to AFFO attributable to AMT common stockholders per Share. The Company’s outlook reflects India contributions of $1,205 million, $400 million and $325 million for property revenue, Adjusted EBITDA and Unlevered AFFO attributable to AMT common stockholders, respectively. The Company expects the closing of the Pending ATC TIPL Transaction to occur in the second half of 2024, subject to customary closing conditions, including government and regulatory approval. Additional information pertaining to Unlevered AFFO attributable to AMT common stockholders and the expected contributions from India to the Company’s 2024 outlook has been provided on page 21 of the Company’s first quarter 2024 earnings presentation available on the Company’s website.

As a result of the favorable impacts associated with improved customer collections in India in Q1 2024, partially offset by the negative impacts of foreign currency exchange rate fluctuations, the Company is raising the midpoints of its full year 2024 outlook for property revenue, Adjusted EBITDA, AFFO attributable to AMT common stockholders and AFFO attributable to AMT common stockholders per Share by $30 million, $40 million, $40 million and $0.09, respectively. Consistent with the prior outlook, the Company’s outlook includes the extension of the estimated useful lives of its tower assets and the estimated settlement dates for its asset retirement obligations, which is expected to result in a decrease of approximately $730 million in depreciation and amortization expense and a decrease of approximately $75 million in accretion expense as compared to the prior year. The Company is reducing the midpoint for net income and net income attributable to AMT common stockholders by $235 million and $240 million, respectively, primarily due to other adjustments resulting in an increase to depreciation, amortization and accretion expense as compared to prior outlook.