American Tower Corp (AMT)

“In Q3, we will expect—we expect that to convert to equity. So that will move the ownership percentage of Stonepeak up to about 36% and move ours down to about 64%.”

“we do view this as an inflection year where we will be driving higher AFFO per share growth going forward.”

“With respect to the lower band spectrum, what we've seen is that the carriers have been using that as a very good complement to the higher band spectrum in their network. And it's the layer cake of spectrum that I think people have talked about as part of 5G in terms of how they're meeting that need. And so we absolutely expect those lower bands to be deployed, and that will generate some revenue for us just like every spectrum deployment does.”

“We believe this year represents a trough for attributable AFFO per share growth, and as these headwinds ease heading into 2027, we're confident that we can deliver a meaningful inflection in growth and return to our long-term expectation of AFFO per share growth in the mid- to high single-digit range.”

“CoreSite remains the fastest-growing segment of our business, and this quarter delivered another record leasing performance reinforcing our conviction that 2026 has the potential to be another record year for the business.”

“So we are maintaining that $245 million of services revenue.”

“if you normalize for those nonrecurring headwinds, we would be at around 7% AFFO per share growth on an FX-neutral basis.”

“In terms of the upper C-band, that will go on to our sites, and we do expect that over time that we will get significant activity as a result of that.”

“So you put all that together, you end up with an organic growth rate in the mid-single digits, maybe 4.5% for 2026.”

“As a result of that, in 2026, we expect the carrier network investments to drive revenue growth for us with the contribution to organic tenant billings that comes from new business of about 250 basis points.”

“So with that, we aim to distribute 100% of our REIT taxable income each year. This year, that will equal about $3.3 billion and represent roughly a 5% growth.”

“we're able to continue to underwrite mid-teens or better stabilized yields on all our incremental new investments there.”

“We continue to expect to spend approximately 85% of our discretionary capital within our developed markets platforms, including over $700 million to develop more capacity in our data center portfolio, approximately $370 million to construct new towers globally and approximately $210 million to purchase land beneath our towers.”

“Due to higher interest rates, we now expect our debt refinancings to be an approximately 150 basis point headwind to attributable AFFO per share growth this year, up from an approximately 100 basis point headwind in our prior outlook.”

“As a reminder, we continue to expect our services business growth to represent an approximately 100 basis point headwind to attributable AFFO per share growth this year.”

“We are raising our attributable AFFO outlook by $0.09 per share, representing a 1% increase to our prior outlook.”

“We are raising our adjusted EBITDA outlook by $45 million at the midpoint, representing an approximately 1% increase to our prior outlook.”

“We are reiterating organic growth assumptions across all regions and continue to expect organic tenant billings growth of approximately 1% and approximately 4% when excluding DISH churn and data center growth of approximately 15% year-over-year, which represents a significant acceleration versus our prior outlook of 13% growth.”

“We are raising our outlook by $110 million at the midpoint, representing a 1% increase to our prior outlook.”

“As a reminder, churn is expected to be back-half weighted, resulting in approximately 10% organic growth in the first half of the year and approximately 7% expected in the second half of the year.”

“We expect the transaction to be neutral to AFFO per share growth while enhancing the quality and focus of our global tower portfolio.”

“we remain on track to deliver an additional 200 to 300 basis points of Tower cash EBITDA margin expansion by 2030.”

“We believe these investments create a substantial runway for sustained double-digit revenue growth.”

“and we're raising our outlook to approximately 15% revenue growth from our data center business.”

“This year, we remain on track to deliver approximately 4% organic tenant billings growth across our global tower business, excluding one-time DISH-related impacts and we're raising our outlook to approximately 15% revenue growth from our data center business.”

“That is very constructive and supportive of our aspirational intention to deliver mid-single-digit to upper single-digit AFFO per share growth going forward.”

“We remain encouraged by the prospects of an earlier-than-expected market repair in Brazil and the forthcoming acceleration in organic growth in 2027.”

“we're excited about the prospect of Latin America being accretive to the U.S. growth rates over time, and we believe that we're on track to see that start happening, as Rod said, '28 and beyond.”

“we remain confident in our ability to deliver 200 to 300 basis points of cash, adjusted EBITDA margin expansion in our tower business by 2030.”

“We expect that growth rate to be in line on average with our AFFO per share growth rate. So again, a mid-single-digit growth rate on the dividend, investing $1.5 billion to $2 billion in CapEx.”

“And then CoreSite double-digit growth, that's accretive to those growth rates. You look at the emerging markets, Africa is growing double digits.”

“solid mid-single-digit growth in the U.S. market, probably better than that across the Europe market. That would be driven by a mid-single-digit organic tenant billings growth in the U.S., probably slightly higher in Europe, complemented by good cost controls in managing the expenses down the line.”

“we do expect to get back to accelerated organic tenant billings growth into '27. So moving from a negative OTBG into positive territory in the lower single digit to '27 and returning to kind of the expectation of normalized growth by the time we get out to '28 and beyond.”

“So we do think that the market there is peaking in terms of the churn that we would expect.”

“certainly, being above our weighted average cost of capital by a couple of hundred basis points over a reasonable amount of time...that really is what we would expect based on just the fundamentals of the market and the investment that we're making.”

“those pieces as well support and contribute to achieving our ambition of mid- to upper single-digit AFFO and AFFO per share growth.”

“This outlook for 2026 is in line with our longer-term view for AFFO per share growth, which is up in the mid-single digits to better than mid-single digits before you account for the impacts of FX and interest rates, whether those are tailwinds or headwinds, quite frankly.”

“In 2026, our growth capital plan remains consistent with our prior outlook. We continue to expect to spend approximately 85% of our discretionary capital within our developed markets platforms, including over $700 million in success-based investments in our data center portfolio to replenish elevated levels of capacity, purchases of land beneath our tower sites and continued acceleration in European new builds, with over 700 new sites planned.”

“As a reminder, we continue to expect our services business growth and debt refinancings to each represent an approximately 100 basis point headwind to attributable AFFO per share growth this year.”

“We expect attributable AFFO per share growth on an FX-neutral basis to be faster in the back half of the year than the front half, primarily due to the timing of maintenance capital and cash taxes compared to the prior year periods.”

“Normalized for the impact of onetime DISH-related churn and excluding the impact of refinancing costs, our outlook for attributable AFFO per share growth implies approximately 5% growth on an FX-neutral basis.”

“Normalized for the onetime impact of DISH-related churn, our outlook for adjusted EBITDA implies approximately 5% growth on a cash FX-neutral basis.”

“Our revised outlook now implies approximately 2% growth year-over-year, excluding noncash net straight line and FX impacts.”

“We are raising our adjusted EBITDA outlook by approximately $105 million at the midpoint, representing a 1% increase to our prior outlook.”

“We are reiterating organic growth assumptions across all regions and continue to expect organic tenant billings growth of approximately 1% or approximately 4% when excluding DISH churn and data center growth of approximately 13% year-over-year.”

“Normalized for the impact of onetime DISH-related churn, our outlook implies approximately 5% growth on a cash FX-neutral basis.”

“Our revised outlook now implies approximately 3% year-over-year growth when excluding noncash straight line revenue and FX impacts.”

“We are raising our outlook by approximately $145 million at the midpoint, representing a 1% increase to our prior outlook.”

“Overall, we are encouraged by the prospects of an earlier-than-expected market repair in Brazil and the forthcoming acceleration in organic growth in 2027.”

“As a reminder, churn is expected to be back half weighted, resulting in approximately 10% organic growth in the first half of the year and approximately 7% in the second half of the year.”

“These same sector tailwinds will translate into accelerating momentum at CoreSite.”

“First, driving durable revenue growth, including approximately 4% organic tenant billings growth across our global tower portfolio, but adjusting for onetime disrelated impacts and double-digit growth from our data center business.”

“And we expect it to be at that level or better in the future as they switch to densifying their networks.”

“We are expecting slightly fewer number of total applications this year.”

“But overall, it's going up. And that's enabling us to continue to underwrite mid-teens or better returns on the new incremental capital that we're putting in.”

“They are contributing a consistent level of activity in '26 that we saw in prior years, and we expect that to continue going forward.”

“And our projections for 2026 are to have another good year of that.”

“We don't expect it to have any effect on our business there at all.”

“You can expect it to be approximately 2 to 3 years from the time we break ground till the time that we can bring that capacity online and start realizing revenue from it.”

“We will continue to be opportunistic in utilizing the remaining approximately $1.6 billion that the Board has authorized for share repurchases.”

“Our plan also includes approximately $180 million in maintenance capital, a reduction of roughly $15 million due to an acceleration of maintenance capital projects into 2025, reducing 2026 anticipated spending.”

“Next, we're planning for $1.9 billion in capital deployments, of which $1.8 billion is discretionary in nature and includes the construction of 2,000 sites at the midpoint.”

“We expect to grow our dividend approximately 5%, resulting in approximately $3.3 billion in distributions to our shareholders, subject to Board approval.”

“In services, we expect healthy levels of carrier activity to drive our third highest services contribution in the history of the company.”

“Normalized for these onetime items, we expect cash margins to hold steady as strong lease-up of existing facilities is offset by putting new capacity into service.”

“In data centers, we expect cash margins to decline approximately 270 basis points year-over-year as onetime benefits from property tax adjustments and legal settlements in 2025 are not expected to reoccur in 2026.”

“In towers, due to a continuation of high conversion rates and cost savings initiatives, we expect cash margins to be flat year-over-year even while absorbing approximately 60 basis points of onetime pressure from DISH-related churn.”

“Cash adjusted EBITDA margins are expected to be 66.8%, down a modest 20 basis points versus last year as steady margins in towers are offset by contributions from lower-margin data centers and services.”

“Normalized for the onetime impact of DISH-related churn, our outlook for cash adjusted EBITDA implies approximately 5% growth.”

“Adjusted EBITDA is expected to grow approximately 2% when excluding net straight line and FX impacts as growth in towers and data centers is partially offset by a decline in services.”

“We expect our outlook for approximately 1% organic tenant billings growth to be complemented by the selective construction of approximately 2,000 new tower sites at the midpoint of our outlook and approximately 13% growth in our U.S. data center business.”

“On average, our multiyear expectations remain consistent, though we now expect more acute churn in 2026 and the acceleration in organic growth to commence in 2027, 1 year earlier than previously expected.”

“As communicated over the last couple of years, we have expected low single-digit organic growth in LatAm through the end of 2027 due to elevated consolidation-related churn in Brazil and for organic growth to accelerate in 2028 once the churn passed.”

“This includes steady colocation and amendment contributions of approximately 2%, CPI-linked escalations of approximately 4%, churn of approximately 8% and other run rate revenue headwinds of approximately 1%.”

“In LatAm, organic tenant billings is expected to decline by approximately 3%.”

“This is comprised of colocation and amendment growth of approximately 3%, consistent with 2025 levels, CPI-linked escalations of approximately 2% and churn of approximately 1%.”

“In Europe, organic tenant billings growth is expected to be approximately 4%.”

“Churn is expected to be back half weighted, resulting in approximately 10% organic growth in the first half of the year and approximately 7% in the second half of the year.”

“This is comprised of colocation and amendment growth of approximately 7%, representing a modest acceleration off of 2025 levels, CPI-linked escalations of approximately 4% and churn of approximately 2.5%.”

“In Africa and APAC, organic tenant billings growth is expected to be approximately 8.5%.”

“We remain constructive on growth for towers in the U.S., supported by a healthier, well-capitalized customer base.”

“This is comprised of colocation and amendment growth of approximately 2.5%, escalations of approximately 3%, DISH-related churn of approximately 4% and normal churn of approximately 1%.”

“In the U.S. and Canada, organic tenant billings growth is expected to be approximately 0.5% or approximately 4.5% when excluding DISH churn.”

“For 2026, we expect consolidated organic tenant billings growth of approximately 1% or approximately 4% excluding DISH churn.”

“This year, we plan to deploy the vast majority of growth CapEx to our developed tower markets and CoreSite, and we'll continue to manage our global portfolio in ways that accelerate growth and reduce volatility.”

“We expect these new initiatives in conjunction with continued strong conversion rates to drive 200 to 300 basis points of tower cash EBITDA margin expansion over the next 5 years.”

“These powerful demand trends, combined with our unique interconnection-oriented infrastructure, continue to support CoreSite's achievement of mid-teens or higher stabilized yields on new data center deployments.”

“We continue to expect our international tower portfolio to deliver faster organic growth in the U.S. as our less mature portfolios lease up over time.”

“As carriers invest in this capacity, we expect our U.S. portfolio to deliver durable long-term mid-single-digit organic growth.”

“We expect future reserves of approximately $8 million to $10 million per quarter until the arbitration is settled.”

“At this point, DISH is current. And so we wouldn't take any reserves because they're current today. And we expect them to pay.”

“Importantly, we expect 80% of our discretionary projects this year to be in developed markets, consistent with our capital allocation philosophy that Steve reiterated earlier.”

“We continue to expect to distribute approximately $3.2 billion to our shareholders as a common dividend in 2025, subject to Board approval and expect $1.7 billion in capital expenditures.”

“We are raising our attributable AFFO outlook by $50 million, which now implies growth at the midpoint of approximately 7% year-over-year on an as-adjusted basis or approximately 9%, excluding financing costs and FX impacts.”

“We are raising our adjusted EBITDA outlook by $45 million at the midpoint, which implies approximately 4% growth year-over-year or approximately 7% growth year-over-year, excluding noncash net straight-line and FX impacts.”

“We are reiterating organic growth assumptions across all regions and continue to expect organic tenant billings growth of approximately 5% and data center growth of approximately 13% year-over-year.”

“We are raising our outlook by $40 million at the midpoint, which implies approximately 3% year-over-year growth or approximately 5% when excluding noncash straight-line revenue and FX impacts.”

“Our expectations for organic growth and CoreSite revenue growth remain in line with our prior outlook.”

“Net of FX headwinds and financing costs, our outlook implies attributable AFFO per share as adjusted, growth of approximately 9%, which reflects the fundamental strength of our core operating model.”

“At the midpoint of our revised guidance, we now expect to deliver attributable AFFO per share as adjusted, growth of approximately 7%.”

“I don't see anything in there that would make me think we're going to fall outside that normal range of churn, 1% to 2%.”

“We just think we have a really compelling set of assets. We think buying back shares in this environment makes a lot of sense for us given our ability and confidence in this business generating upper single-digit AFFO per share growth over time before you account for the impacts of FX and interest rates.”

“We continue to believe that sustained double-digit growth is possible as long as we can keep building the capacity to absorb the demand that we're seeing out there.”

“We will continue to be opportunistic in utilizing the remaining $2 billion that the Board has authorized for share repurchases.”

“Given the overall exposure, we'll still be in that 1% to 2% historical range for churn, we believe.”

“In terms of our kind of long-term growth algorithm, we believe that somewhere in the mid-single digits is where you should see the organic growth in the developed markets, a little bit higher in the emerging markets.”

“We do think that our services business will be a good robust contributor in 2026 as well.”

“We've generated approximately 300 basis points of adjusted EBITDA margin expansion since 2020, and we see room for continued expansion as we streamline operations.”

“All of these positive trends in demand and pricing reinforce our expectation for CoreSite to achieve mid-teens or higher stabilized yields and to achieve these targets faster and with better visibility as pre-leasing and sales pipelines accumulate.”

“It is possible that we could go back up to 5x later in the year.”

“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.”

“we are well positioned to benefit from growing mobile data consumption and confident in our ability to sustain growth through the second half of the year.”

“We invest this year about $1.7 billion. It's been between $1.5 billion and $2 billion over the last few years. We expect that to continue as we have a robust pipeline of places to put that capital.”

“We still are marching towards 5.0 or below by the time we get into the second half of the year. So we're on pace with that.”

“our operating profit margin is also expanding year-over-year this year by about 100 basis points.”

“we expect interconnection to grow -- interconnection revenue to grow by double digits.”

“We expect a very similar number of revenue growth for the full year.”

“we expect churn as a percent to drop down to about 100 basis points or maybe even below for Q4 and then probably stay in that lower end of our range between 1% and 2% as a churn number, kind of staying at the lower end of that, closer to 1% for a little while”

“For the full year of 2025, we expect to be roughly flat on SG&A, excluding the bad debt.”

“So we were at a projection of about $165 million, $165 million or slightly better for new business. With this revised timing of the pacing of some of the deployments. That number is expected now to be more like $160 million.”

“We are still expecting churn to trend down, and that's not considering the U.S. Cellular transaction, which has now been approved.”

“We continue to expect to distribute approximately $3.2 billion to our shareholders as a common dividend, which remains unchanged from our prior expectation and subject to Board approval.”

“We are modestly revising our 2025 capital plans, which include approximately $1.7 billion in capital expenditures, down $20 million compared to prior outlook and contemplates a 100 site reduction in Latin America and consistent data center spending.”

“Our revised attributable AFFO per share midpoint is $10.56. Year-over-year, AFFO per share growth is now expected to be approximately 6% on an as adjusted basis.”

“We are raising our expectations for AFFO attributable to common stockholders by $55 million at the midpoint or $0.12 on a per share basis.”

“We are increasing our adjusted EBITDA outlook by $120 million compared to our prior outlook driven by the conversion of property revenue, services gross profit and FX tailwinds, partially offset by nonrecurring expense items, including incremental bad debt associated with certain Latin America customers.”

“we are reiterating our organic tenant billings growth expectations of approximately 5% for Europe, raising our expectations for Africa and APAC to greater than 12% due to solid carrier activity and slightly lower churn expectations and raising our expectations for LatAm to greater than 2% driven by modestly higher-than-expected contributions from CPI-linked escalators.”

“We have revised our expectations for the U.S. and Canada organic tenant billings growth to approximately 4.3% reflecting slight timing differences due to modestly slower than initially anticipated pacing of new business.”

“We are reiterating our organic tenant billings growth expectations of approximately 5% on a consolidated basis.”

“we are raising our expectations for property revenue, adjusted EBITDA, attributable AFFO and attributable AFFO per share by approximately $165 million, $120 million, $55 million and $0.12, respectively, compared to our prior outlook.”

“Overall, our outlook is generally looking up as we have the second half of 2025”

“Capacity constraints from high absorption rates and continued AI-driven demand from both very large hyperscale players across the wider market and the enterprise customers that value our interconnection ecosystem are driving a sustained favorable pricing and pre-leasing environment that we expect to continue into the foreseeable future.”

“we would expect because we're a REIT, that our dividend growth will largely be in line on average over multiple years with our AFFO growth.”

“we think that the inflection point is really going to happen in 2028. That's when we see things getting significantly better for us there.”

“We're still anticipating to have low single-digit growth for the next couple of years there. So through 2027, we're going to continue to deal with the dynamics of that market where you have higher churn”

“we expect that double-digit growth to continue for the next couple of years based on kind of exhausting that backlog and delivering all those new business contracts.”

“Growth in Latin America remains muted relative to historical trends our expectations for persisting low single-digit growth through 2027 remain unchanged.”

“And we are continuing to see strong and elevated pricing. Our mark-to-market is above our historical 2% to 4% range, and our churn is kind of in line with our historical churn range there.”

“Collectively, driving approximately 6% for international and approximately 5% on a consolidated basis.”

“Furthermore, we are reiterating our prior outlook expectations for organic tenant billings growth across all regions, including greater than or equal to 4.3% in the U.S. and Canada or greater than or equal to 5.3%, excluding the impacts of Sprint churn and approximately 12%, 5% and 2% to the Africa and APAC segment, Europe and Latin America, respectively.”

“When we think about the U.S., we don't think any of the uncertainty that's out that's going to affect demand in the U.S. this year.”

“In terms of the escalator, we're anticipating about 5% in 2025, but that is CPI dependent.”

“Our outlook assumes a 52% margin on this business, which is very consistent with what we saw in 2024.”

“We do expect to get paid. And so, we -- all we've built into our kind of ongoing guidance for our kind of future growth is the minimum contractual commitments under that agreement.”

“Another month or another quarter and for Q2 in that $38 million range wouldn't be out of the expectation for us, and then an acceleration there getting up over $40 million for the last two quarters”

“That would imply a lower amount of revenue for Q3 and Q4.”

“Still in the range for the full year, for a strong revenue full year number in and around the $240 million, $250 million range.”

“As you heard in my prepared remarks, we started this year with a really strong services result, achieving about $75 million of services revenue for Q1... We also expect that to continue into Q2, that steady kind of strong demand for the services business. So, another quarter in that range of about $75 million is what we're targeting.”

“I'd like to reiterate that while overall capital spend is moderately increasing year-over-year as we execute on attractive development opportunities across the U.S., Europe and CoreSite, we continue to reduce investments across our emerging markets.”

“We continue to expect an approximately $3.2 billion common dividend distribution to our shareholders subject to Board approval and approximately $1.7 billion in capital expenditures, which includes 2,250 newly constructed sites at the midpoint and roughly $610 million for data center development.”

“At the midpoint, our expectation for attributable AFFO per share is $10.44 or nearly 5% growth year-over-year on an as adjusted basis.”

“before increasing to over 5.5% in Q4.”

“As highlighted on our last earnings call, we continue to expect growth to be below 4% for the next two quarters due to Sprint churn before increasing to over 5.5% in Q4.”

“As we continue to hear that, those information request, that gives us a lot of confidence that we're going to see an increase in colocations over time as they move into that densification phase over the next few years.”

“Oh, you definitely will. We're seeing this phase of densification start.”

“We'll continue to see wireless churn from Oi over the next two years, and 2027 will have wireline churn from Oi.”

“So, we are guiding for OTBG in Latin America to be low-single-digits for the next three years.”

“There's still a decent amount of amendment activity that we expect to see over the next two years as they take those percentages covered by mid-band from somewhere in the 50% range for one of the carriers, one -- the other two are a little bit higher, up to that 80% to 90% coverage over time.”

“So when you look at that guide for next year, there's a little bit more construction there, but overall activity is expected to be up year-over-year in terms of that.”

“So all of our development in CoreSite is being underwritten at mid-teens stabilized yields.”

“that churn number in Q2 will reduce down to about $10 million or so.”

“we are looking at about $98 million to $100 million of churn revenue in 2025. We're going to start off the year at roughly a run rate of about $30 million a quarter of churn, and that includes Sprint churn.”

“We expect to resume dividend growth in the mid-single-digit range subject to Board approval, which corresponds to an approximately $3.2 billion distribution to our shareholders.”

“we anticipate the positive momentum we saw in our U.S. services segment in 2024 to continue into 2025, resulting in an increase to services gross margin of nearly $30 million.”

“Resulting in elevated churn of approximately 5% in 2025 and other billing adjustments of less than 1%.”

“Growth in Europe of approximately 5% includes 2% in escalators and steady organic new business contributions of around 4%, partially offset by churn of approximately 1%.”

“Our plan continues to target maintaining floating rate debt exposure below 10%, which we believe is a reasonable target for the foreseeable future.”

“we are reducing emerging market discretionary CapEx to just over $300 million in 2025, a reduction of over 60% from 2021 and over 15% compared to 2024.”

“we are continuing to direct most discretionary capital towards our developed market platforms, including over $600 million for data center development on existing campuses underwritten at mid-teens stabilized yields, with some optionality to pursue smaller tuck-in inorganic opportunities were appropriate and also the construction of six of our tower sites in Europe, where we anticipate low double-digit day one yields.”

“supports our continued long-term expectation of mid-teens or higher stabilized yields.”

“although we anticipate the positive momentum in U.S. activity to continue to 2025 with a solid pipeline supporting it, our outlook for organic tenant billings growth in the U.S. and Canada steps down modestly compared to 2024.”

“In 2025, we expect our developed markets, which consist of our U.S., Canadian and European operations, along with CoreSite, to contribute about 75% towards our unlevered AFFO, and we expect to further expand this portion through continued prioritization of capital into these developed segments.”

“Yes, we don't -- we're not changing our long-term guidance in terms of what we believe the average to be from that 2023 through 2027 time period.”

“In terms of kind of our longer-term view of Europe, I mean, mid-single digits is kind of what we see that market being over time.”

“That's going to sustain solid revenue growth over the next couple of years.”

“roughly half of that is from Sprint churn, which will not be reoccurring next year. So that will be an inflection point where that number certainly is expected to be higher going into next year.”

“In Latin America, growth of approximately 2% includes contributions from escalators of around 5% and organic new business of over 2%. Gross growth is partially offset by another year of carrier consolidation driven churn, which we expect to persist through 2027.”

“We expect this number to come down over time as we satisfy those commitments and redirect new discretionary capital to develop regions.”

“Over the next five years, underwritten by projected total mobile network profit growth of over 15% annually given the existing service terms, we expect the required network capacity to more than double, with more connected devices, data-intensive applications and growing uplink transmission requirements while placing significant strength in the networks.”

“we do think there is an acceleration -- modest acceleration that could be seen at the end of the year.”

“And we are past the US Sprint churn after the end of this year. So that will be a positive for us.”

“we remain confident in driving organic growth, in line with our mid-single-digit expectations in the region going forward.”

“we do expect our churn to be at the lower end of the historical range, which was 1% to 2%.”

“We're looking at about 6% for the full year.”

“We're still able to underwrite those mid-teens or better development yields and stabilization.”

“we do see the dividend payout as a percent of AFFO staying roughly where it is, which, call it, between 60 and mid-60s kind of in that range.”

“we're expecting to have a healthy pipeline in 2025 as well.”

“We're hitting double-digit growth this quarter and will -- for Q3 and we expect double-digit growth here now going forward annually.”

“We expect that to be similar for Q4 as well, so pretty similar to the last three quarters which was all in and around a quarterly contribution of about mid-40s, $45 million or so. That would end up landing us at kind of the lower end of that range around $180 million”

“So if you look at 2025 through that lens, we still have about 100 basis points of churn coming in from that final Sprint churn tranche. So if you normalize that out, that's kind of be the mid-5s for next year.”

“Our planned dividend distribution remains at $6.48 per share with the expectation to resume growth in 2025, all subject to Board approval.”

“Although certain anticipated project delays into 2025 will likely bring our revenue modestly below initial estimates.”

“As we have previously indicated, we expect to see a step-down towards 4% growth in Q4 due to the commencement of the final tranche of Sprint churn, consistent with prior outlook assumptions.”

“we expect further reductions from efficient repatriation in the near term.”

“we plan to allocate more capital to CoreSite over the next several years, likely meeting or exceeding the $480 million in development spend assumed at the midpoint of our 2024 guide.”

“further supporting the favorable pricing environment for both new leasing and renewals into the foreseeable future.”

“AI-driven workloads are a growing component of CoreSite's signed leasing and customer requirements are indicating that demand will only grow over the near-to-medium term.”

“So we feel like that growth rate is durable for the foreseeable future right now.”

“We feel very confident in a high single or double-digit, most likely double-digit growth rate for the next several years in terms of revenue commencing there.”

“But that long-term algorithm of mid to high single-digits holds true even while absorbing some of those costs in there.”

“the long-term view of the dividend growth rate is that it will closely mirror the average AFFO per share growth rate over time.”

“Over time, we believe that will come back to high single-digit growth. But for the next few years, we are projecting low single-digit growth in there based on care consolidation churn that's primarily OI, but it's also some potential consolidation that we see kind of on the map.”

“We do think next year with that final tranche of the Sprint churn will be the low watermark and then it will spring back up in '26 and '27.”

“We think that US business can grow in the mid-single digits, just like Steve walked through the long-term guide for US OTBG on average that 5%.”

“And that's consistent with our long-term guide of at least 5% from '23 to '27, because if you think about '26 and '27, at that point, we're through the spread churn.”

“And so you could see that number grow kind of into that range that you're talking about.”

“We'll see where that goes. But we're very, very confident that we are on the right path, driving towards getting to that 5.0 and we will get there. Most likely the second half of this year, if not the beginning of next year.”

“at the end of day, we're still confident that we're going to have continued growth supportive of our longer-term guide.”

“we've got 44 megawatts under construction today and 61% of that is pre-leased. And so there's quite a bit of CapEx going into those campuses today that we feel very confident that we're going to get our mid-teens stabilized yields or better in those campuses that we're investing in.”

“we saw another quarter of accelerating new business moving organic tenant billings growth in the region to 5.7% and giving us confidence to modestly raise our full year outlook for the segment”

“In the US, we're continuing to see demand and activity levels that are in line with our previous long-term guide on OTBG, organic tenant billings growth in and around that 5%.”

“we have a portfolio of assets here that are performing very well operationally with the fundamentals that could deliver upper single-digit AFFO per share growth.”

“we do expect leverage to tick back up to 5.0 or 5.1 during Q3 and Q4.”

“we do think it appropriate to work that percentage down over time by focusing on our developed markets.”

“On the churn side, in 2025, we're going to continue to see a level of elevated spread churn. The final tranche of that spread churn commenced in Q4 of this year, that's about $70 million of annualized monthly run rate. That will impact our growth rates through Q3 of next year.”

“we do have a level of contractually locked in growth for 2025 via our comprehensive MLA and that's similar to what we see in 2024 as well as consistent growth from the escalator of about 3%.”

“And in terms of closing afterwards, I think you could expect that to occur in kind of four to six weeks afterwards, somewhere in that timeframe.”

“At this point, Ric, there's no update on that. We're still waiting for the approval. And what we've said consistently is we believe it is second half of the year closing.”

“We would expect that the dividend growth would resume in 2025 based on what we're seeing in the numbers going beyond 2024.”

“With respect to our services guide, we are holding our guide for the year.”

“we are increasing our plan for 2024 by $55 million, which includes $30 million associated with maintenance CapEx, as I previously mentioned, and additional success-based development investments in our US data center business to maximize sellable capacity on the back of ongoing record demand.”

“We are increasing our adjusted EBITDA outlook by $130 million as compared to the prior outlook.”

“we have lowered our expectations for Latin America to greater than 1.5%, down from approximately 2%.”

“we have raised expectations for Africa to greater than 12% and Europe to approximately 6%, up from 11% to 12% and 5% to 6%, respectively.”

“we expect a relatively similar growth rate in Q3 before a step down in Q4 as we commence the final tranche of contracted Sprint churn, all supportive of our 2024 outlook expectation of approximately 4.7%.”

“we anticipate incurring incremental costs within the business between SG&A and maintenance CapEx, a modest offset to the upside realized through strong collections.”

“we expect the remaining proceeds potentially of approximately $2.1 billion to be received at closing as we make progress towards closing, which we continue to target the second half of 2024”

“For 2018 and at the midpoint of our 2024 outlook, we expect to reduce cash SG&A, excluding bad debt as a percentage of revenue by roughly 210 basis points in Europe, Africa and LatAm in aggregate.”

“However, given the impacts of the financial risk and the stability and the quality of earnings our investor is whitefly demand from tower and communications infrastructure models, we expect to further reduce our relative exposure to emerging markets over time as we continue focus on incremental investments in developed economies.”

“These proactive actions and our refined strategic focus have corresponded to an expected 2024 reduction of over 40% in discretionary capital across Latin America, Africa and APAC compared to 2021.”

“At the midpoint of our guidance this year, we anticipate savings of over $40 million of SG&A, including bad debt relative to 2023.”

“we would expect them all to be in the upper teens certainly in places like Africa, above 20% over time, would certainly be where we would target that.”

“This performance, together with the broad-based application pipeline buildup discussed by Steve in his prepared remarks, gives us confidence in our expectation for accelerating activity continuing through the duration of the year and is supportive of our full-year U.S. services outlook.”

“Continued strong growth from CoreSite, especially as we're commencing those kind of record levels of new business that we've signed since the transaction was consummated.”

“We see leasing volumes in Africa and Europe remaining positive with churn remaining low in Europe and an expectation for further moderation in China and Africa.”

“we continue to see strong fundamentals in our business. That includes a continuation of solid U.S. and Canada organic tenant billings growth, even while we're still absorbing some headwinds associated with that final tranche of spread churn that happens in Q4 of this year.”

“we're seeing for the outlook for 2024, LatAm is going to be coming in around 2% organic tenant billings growth.”

“we expect that leverage during the year will be back up above 5 slightly between now and the end of the year. And we're going to continue to work on getting that down to 5 in a sustainable way, and the goal is by the end of the year.”

“Well, if we continue to grow it kind of in line with our AFFO per share growth, you can think of that payout ratio staying kind of in that 60% to 65% range.”

“Over the long term, what you can think about is that our dividend per share and AFFO per share growth to be similar over the longer term.”

“that positions CoreSite very well to have high levels of growth over the next couple of years.”

“We've got more megawatts under construction today than we ever had before at CoreSite, so we're planning for that demand cycle to continue.”

“maintaining a relatively flat annual common dividend declaration of $6.48 per share or approximately $3 billion in 2024, with an expectation to resume growth again in 2025, all subject to Board approval.”

“our disciplined approach to capital allocation, together with recurring topline growth and its high conversion to profitability through cost management, all support the progress we've made to achieving our goal of 5x net leverage by the end of the year.”

“We are reiterating our prior outlook expectations for organic tenant billings growth across all regions, including approximately 4.7% in the U.S. and Canada, 11% to 12% in Africa, 5% to 6% in Europe and 2% in both LatAm and APAC, collectively driving approximately 5% for international and 5% on a consolidated basis.”

“while we continue to anticipate a second half 2024 closing on our sale of ATC India to Brookfield”

“what we've seen thus far supports the 2024 guidance we provided in February, including approximately $195 million, the expected services revenue contributions; approximately 4.7% organic tenant billings growth at $180 million to $190 million in year-over-year co-location and amendment growth, one of our strongest years to date.”

“an expectation for growth on a per-site basis in 2024 that significantly exceeds the average seen during the 4G deployment cycle.”

“That growth can be a little bit offset by the headwinds we have in Latin America because we do see an elevated consolidation churn environment there for the next few years, and that's going to keep Latin America kind of in that low single-digit growth.”

“we said that we expect at least 5% organic tenant billings growth on average for the period between 2023 and 2027, and that would be 6% excluding the Sprint churn that we have.”

“If those trends continue and if they're able to kind of underwrite some additional incremental network builds to support that, that would be upside to our base case.”

“I would say when you think about buybacks, Rick, it's probably more towards the end of this year, we'll be reassessing things.”

“So we do expect some improvement in our time lines there.”

“We look at it roughly 5% organic growth from the U.S. That includes some Sprint churn over the next few years there. We do expect that the non-U.S. properties will have incremental growth from there, maybe a couple of hundred basis points.”

“We do see a general uptick in conversation from our customers that make us believe that there will be an uptick in the second half of the year.”

“We also expect to evenly distribute the dividend across each quarter of the year, which would suggest a one-time sequential stepdown from our fourth quarter 2023 declared dividend of $1.70 to $1.62 in the first quarter of 2024, all subject to Board approval.”

“the 2024 plan assumes maintaining an annual common dividend distribution of approximately $3 billion, representing a modest increase on an annual per share basis to $6.48 per share.”

“Additionally, our outlook includes an expectation for approximately $17 million in year-over-year gross margin growth from our U.S. services business with the quarterly cadence, suggesting a ramp-up in carrier activity in the second half of the year.”

“Finally, in Asia Pacific, we are guiding to approximately 2% organic tenant billings growth in 2024, including colocation and amendment growth of approximately 3.5%, roughly 2.5% from escalators and churn of around 4%.”

“Churn is offset by relatively consistent colocation and amendment activity of approximately 3% and contributions from escalators of approximately 4%.”

“On the colocation and amendment front, we anticipate growth of 3% to 4%, an acceleration as compared to 2023, while growth from escalators stand at roughly 3%, consistent with 2023, churn is expected to remain low at around 1%.”

“This includes colocation and amendment contributions of approximately 7%, along with escalator growth of 8% to 9%, partially offset by churn of around 4%, which would represent a notable year-over-year improvement after incurring the largest impacts from carrier consolidation in 2023.”

“In the U.S. & Canada, we anticipate organic tenant billings growth of approximately 4.7% or 6%, excluding Sprint churn.”

“Furthermore, we would estimate an approximately $0.09 reduction to attributable AFFO per share, which assumes anticipated proceeds at closing are used to pay down existing indebtedness.”

“we would anticipate a reduction of $295 million and $95 million to our presented outlook midpoints for property revenue and adjusted EBITDA, respectively.”

“the same demand trends that have resulted in two consecutive years of record new leasing are expected to drive stabilized returns in the mid-teens for ongoing development projects.”

“we'll hold the dividend relatively flat in 2024, subject to board approval.”

“What it cost our overhead costs, as you'll see in our 2024 guidance, we're targeting a reduction in SG&A, which combined with healthy top line growth is supporting an 80 basis point reduction in cash SG&A as a percentage of property revenue and approximately 200 basis point expansion in cash adjusted EBITDA margin since 2022.”

“We absolutely believe this business can drive growth over the long term and in 2024.”

“We've said that our goal, and we're on track to achieve our goals, which is to sell a majority equity stake to a financial investor.”

“We are confident that the process will conclude in the next couple of months.”

“We are confident we'll be concluding it this year just as we've previously mentioned, once we do, we'll let the investors know exactly what we've concluded and what we plan to do there.”

“Our goal is to get to 5 times really as soon as we can... The goal will also -- the goal -- and it's specifically for 2024, that's where we hope to get to.”

“When it comes to M&A, we continue to not see compelling M&A opportunities in our pipeline. So it's not something that's hitting our radar screen in terms of capital allocation this year and we turn the corner into next year.”

“We do expect that to tick back up towards the end of this year. And we expect to end this year, again, higher than our stated range of 3 to 5 times up in the 5.2%, 5.3% range.”

“We closed the quarter with net leverage of approximately 5 times, which benefits from certain non-recurring items in the quarter, as I mentioned earlier, and we expect to close the year slightly above 5 times.”

“We anticipate maintaining a dividend per share profile in 2024 that closely aligns with our 2023 expectation of $6.45 per share resuming growth in a manner supportive of our REIT taxable income thereafter, all subject to Board approval.”

“Our full year CapEx spend also remains consistent at $1.7 billion with the acceleration of certain non-discretionary projects that I mentioned earlier, offset by lower discretionary spend, which includes a reduction in development CapEx associated with lower anticipated new build volumes.”

“We are planning to distribute approximately $3 billion in common stock dividends which represents a year-over-year growth rate of 10% on a per share basis, subject to board approval.”

“We are raising our expectations for AFFO attributable to common stockholders by $40 million at the midpoint or approximately $0.09 on a per share basis, moving the midpoint to $9.79 per share.”

“We are raising our adjusted EBITDA outlook by $60 million.”

“In APAC, we are increasing our guidance from approximately 4% to about 5% supported by a combination of strong new business in delayed churn.”

“Next, we're increasing our Africa outlook from greater than 11% to approximately 12%, primarily due to a continued uptick in colocation and amendment demand.”

“In Latin America, we have increased our outlook from approximately 4% up now to approximately 5%, largely driven by continued delays in anticipated consolidation-related churn.”

“Growth is further benefiting from non-Sprint related churn delays, which we now anticipate occurring in 2024.”

“We are increasing our guidance to greater than 5% or approximately 6.5% excluding Sprint churn, now with an expectation for approximately $230 million in colocation and amendment growth contributions.”

“As Tom mentioned earlier, we anticipate 2023 to again break the signed new business record just set in 2022, setting up CoreSite to drive sustained attractive levels of growth as the backlog of new business commences over the next several years.”

“Our teams delivered record signed new business in 2022, a record we are targeting to exceed in 2023.”

“The visibility that we have into a baseline level of contractually guaranteed growth through these comprehensive MLAs allow us to reiterate our expectation that we're going to achieve an average annual OTBG growth rate of at least 5% in the U.S. and Canada segment between 2023 and 2027.”

“Over the next couple of years, LatAm because of the reduction in inflation that could happen and the elevated churn, we could be in the low single digits in terms of organic tenant billings growth as we head into next year.”

“When you think about next year 2024 in our long-term guide, it's unlikely that there's going to be material upside based on where we sit today. We do think there's potential for upside in the longer-term growth rates, but that would probably come in '26 and '27 and down the line, not necessarily in '24.”

“Combined with the favorable supply and demand dynamics we're seeing across the data center industry, we have a high degree of confidence in our ability to drive double-digit stabilized yields on our development investments, largely supported by the reinvestment of CoreSite's own cash flows with further support from American Tower and our partner, Stonepeak.”

“And it's very in line with kind of that 220, 220 plus sort of range. So we're certainly very happy with that, and it drives about a 5% new business growth contribution to that overall organic tenant balance growth.”

“Hey Greg, thanks for the question. Regarding the cadence here, I think you do want to plan for that lower 50 certainly by the time you get out to Q4. We'll see a slight deceleration from Q3 to Q4. So maybe you're up in the mid-50s and the low 50s by the time you get to Q4, but that's what we do expect and see in terms of the new business in the U.S. going forward.”

“And as I said in my prepared remarks, we do expect to complete a transaction sometime during the second half of this year.”

“So we do anticipate that to pick up later in the year in Q3 and Q4.”

“And you'll see us going forward this year and well into next prioritizing delevering and trying to get down below 5 times.”

“But all in, we're exceptionally pleased with the way the data center business is performing. And we do think staying in that between 300 to 360 in and around that area is the right place in terms of ensuring we have the capacity available to meet the demand in our current facilities.”

“I think as Rod mentioned in his prepared remarks, we see a kind of record levels of cash backlog that's contracted revenue that's going to hit a balance of this year and into 2024 and a little bit into 2025.”

“The thing that I would point out there as it relates to services is the level of activity we see continuing into the back half of the year, even through the slowdown, it's still equal to or better than the high watermark of level of activity we experienced throughout the 4G cycle.”

“On the left side of the slide, you see our plans continue to assume approximately $360 million in discretionary spend allocated to our U.S. data center business in 2023.”

“Turning to Slide 11. We are raising our expectations for AFFO attributable to common stockholders by $25 million at the midpoint, representing approximately $0.05 on a per share basis moving the midpoint to $9.70 per share.”

“Although we are pleased with the acceleration in organic tenant billings growth in APAC in Q2, we are maintaining our prior outlook of approximately 4% at this time.”

“In Europe, we are raising our guidance to approximately 8%, up from 7% to 8% previously, supported by modest improvements in our escalator contributions, together with an expectation for colocation and amendment growth to be closer to the upper end of our initial 2% to 3% assumption as we continue to make operational progress in Germany on leasing up our rooftop assets.”

“In the U.S. and Canada, we are maintaining our guidance of approximately 5% or over 6% excluding sprint churn, with an expectation for at least $220 million in colocation and amendment growth contributions.”

“Moving to Slide 9, we are increasing our expectations for organic tenant billings growth at a consolidated and international level.”

“In 2023, these factors as well as a healthy leasing environment are coming together to derive an expectation of approximately 8% organic kind of Billings growth in Europe, including an expectation for an acceleration in growth from colocations as we exit the year.”

“At the same time, we expect existing enterprise customers who are building AI into their products and operating models will expand their power and space requirements in CoreSite with its flexible and scalable model and speed to market benefits, is already well positioned to support these expected used cases today.”

“And the slowdown does not change our view there because the vast majority of that is fully contracted. That includes the incremental impact of sprint churn. Without that, we'd be at about 6%.”

“So I'll just remind you in terms of what our long-term guide was. We are seeing an average of about 5% organic tenant billings growth in the U.S. from now until 2027.”

“In terms of the longer-term guidance is you think the way that our comprehensive agreements are set up, we really are in very good shape we think, from now out to 2027.”

“I'm not sure, Greg, if I would go out and say that, that upside is certainly not in the short term, if it would, it would probably be clearly small here this year. We wouldn't expect to see much of an impact.”

“So we have about 90% of our revenue and revenue growth for this year fully contracted, and there’s no variability in that.”

“We guided when we did the Telxius transaction that we would be achieving mid-single-digit organic tenant billings growth. We’ve been above that since we acquired the portfolio in this year, we’re again looking at upper single digits in that 7% to 8% range, which is a really nice place.”

“Maybe that 10% thinks back a little bit. But we should be solidly in the upper single-digit growth rate and within our underwriting targets for that business.”

“So, you are correct in terms of the organic new bid, the incremental new bids we get from colocations and amendments. That $60 million number, we do see that at the peak for the year. But with that said, it will be -- we expect that number on a quarterly basis to be between $50 million and $60 million for the next three quarters for the full year.”

“And we do believe that Voda management is committed to and capable of increasing their payments to us in the second half of the year, and that’s reflected in our outlook.”

“We expect the level of collection that we had in Q1 to continue into Q2 as kind of the way we’re thinking about it.”

“And we will continue to look at kind of delevering the balance sheet really over the next 12 to 18 months until we get it to a spot that we’re really comfortable with.”

“Additionally, we closed the quarter with net leverage of approximately 5.2 times, well on track towards our deleveraging target of 3 to 5 times.”

“In addition, our CapEx outlook midpoints remain unchanged across all categories and support our initial plans to construct approximately 4,000 new sites across our international footprint.”

“And for the full year, we expect $220 million in year-over-year growth contributions from colocations and amendments, a record for our U.S. business.”

“And we continue to feel really good about everything that we see and work on in terms of the U.S. business being in a strong position to achieve 5% organic tenant billings growth on average out over the time period through 2027.”

“And then when you look at the long-term going out through 2027, you’ve heard us talk about that 5% on average OTBG in the U.S. We have about 75% visibility out over that long period of time of the underlying revenue as colored for revenue growth.”

“In American Tower, we’ve underwritten this expectation into the comprehensive MLAs that underpin our expectation to deliver average annual organic growth of at least 5% or 6% excluding the Sprint churn over the next 5 years, which closely mirrors the 6.2% average organic growth we experienced between 2016 and 2020.”

“I wouldn’t be surprised if that number is a little bit lower next year.”

“And our development CapEx is coming in at around $360 million for 2023.”

“We're also seeing higher escalators at around 8%. And we do have a headwind of churn of about 8% as well.”

“The interest rates, Rod walked through the impact of rates. It's kind of a reset in 2023. I believe it to be kind of more of a one-off, if you will, in 2023.”

“Actually, Rick, it's going to be very consistent, very linear throughout the year. And so largely, it's a function of the relationships and the agreements that we have in place. But we would expect it to be very consistent in the US throughout the year.”

“We expect higher rates of growth in 2023 and in particular, within the United States.”

“the long-term guidance that Rick asked about, we are continuing to target equal to or greater than 5% between 2023 out to 2027.”

“So we are underscoring really what we had said a year ago relative to growth coming out of 2023 through 2027.”

“So we're looking at 10% dividend, as Rod talked about this year. It's difficult really to predict what that might be. It depends upon what we bring into the REIT, what's not in the REIT, obviously, what kind of M&A exists out there. It could drop a little bit to high single digits.”

“Now of course, as we move beyond 2023, that 90% will come down maybe to about two-thirds or so by the time you get in the outer years.”