CLAIM #6997 · American Tower Corp (AMT) · 2025Q2 earnings call · Jul 29, 2025

“what we're doing to protect ourselves there is building a contractual mitigation so that if there are an increase in cost, what we're doing with pre-leasing that we have a mechanism to adjust that to make sure that we're getting that mid-teens stabilized yield that we're underwriting on things.”

Steven Vondran · CEO

How to check this claim

Look at: Stabilized yield on new development projects (CoreSite data center segment), as underwritten/reported by management

It came true if: Reported stabilized yield on newly delivered/stabilized development projects >= mid-teens (approximately 15%)

Where: Management commentary / supplemental disclosure on development pipeline yields in quarterly earnings materials or call

Knowable after: 2026-07-29

In context

“ablished new players, I'm curious as to whether it's becoming at all more challenging for CoreSite to kind of keep its place in line. Steven O. Vondran: Well, a lot of the supply chain challenges really started during COVID. And so that whole supply chain process lengthened several years ago. We had to adjust our strategy then. So we started prebuying those long lead time items several years ago. And the way you secure your place in line is you got to pay. So you put a deposit down on that equipment. And so we've been very proactive in looking at that over time and securing those places. The other component that we're watching very closely like everyone else is, is the effect of potential tariffs on some of those supplies because a lot of those components can only be sourced overseas. And what we're doing to protect ourselves there is building a contractual mitigation so that if there are an increase in cost, what we're doing with pre-leasing that we have a mechanism to adjust that to make sure that we're getting that mid-teens stabilized yield that we're underwriting on things. So I feel very good about the actions the teams have taken to be able to secure that. And for all of our kind of development pipeline that we have in view and the things that we've planned out we're secure on that. It may make it challenging to accelerate things from the pace that we originally wanted. We'd like to accelerate some of this development because the demand environment is so healthy right now and it does make that a little bit more challenging, but we are finding ways to do that in some circumstances as well. So certainly a challenge out there that we're all facing, but something that I've talked to the team has done a good job of getting ahead of. Nicholas Ralph Del Deo: And sorry, can I ask one quick housekeeping item on the CoreSite front as well. Anything you can share abo”

Verify independently

SEC filings for AMT ↗ · Quote is verbatim from the 2025Q2 earnings call.