American Tower Delivers Robust Q1 Performance, Eyes Long-Term Growth Despite Market Challenges

Benzinga04-30

American Tower Corp (NYSE: AMT) reported fiscal first-quarter 2024 revenue growth of 2.4% year-on-year to $2.834 billion, beating the consensus estimate of $2.795 billion.

AFFO per share attributable was $2.79, up by 9.8% Y/Y and against the consensus of $2.54.

Property revenue increased 3.3% Y/Y to $2.8 billion. Tenant Billings grew by 6.3%, and Organic Tenant Billings increased by 5.4%.

Adjusted EBITDA increased 5.2% Y/Y to $1.85 billion with a margin of 65.4%. 

The company generated $882 million in free cash flow, up by 47.5% Y/Y. It held $2.5 billion in cash and equivalents as of March 31, 2024.

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

FY24 Outlook: American Tower expects property revenue of $11.08 billion – $11.26 billion (prior $11.05 billion – $11.23 billion). It projects AFFO per share of $10.30 – $10.53 (prior $10.21 – $10.45) vs. consensus $10.38.

American Tower stock lost 13% in the last 12 months. Investors can gain exposure to the stock via Pacer Data & Infrastructure Real Estate ETF (NYSE:SRVR) and J.P. Morgan Exchange-Traded Fund Trust JPMorgan Realty Income ETF (NYSE:JPRE).

Price Action: AMT shares traded lower by 0.55% at $174.02 on the last check Tuesday.

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