American Tower Corp at Deutsche Bank Media, Internet and Telecom Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Matthew Niknam - Deutsche Bank AG - Analyst : <_ALACRA_META_ABSTRACT>Great to have you. There's always a lot to talk about American Tower. Maybe just to start, you recently reported fourth quarter results, you gave an initial outlook '25. Maybe if you can share some of the key highlights from the outlook and the top priorities for AMT. Rodney Smith - American Tower Corp - Chief Financial Officer, Executive Vice President, Treasurer Yes, that sounds great. So thank you, everyone, for joining. We did hold our earnings call a couple of weeks ago, and we announced the outlook for this year. I'm sure you've all seen it. That outlook was largely in line with kind of the way we prepositioned it. So we were certainly happy with that. The highlights are we had the AFFO per share growth off of the adjusted prior year, excluding India, in the mid-4s or so. We also provided an algorithm that kind of highlights what the overall growth components are and the interesting thing there is it shows the core business performing in the upper single-digit range for AFFO per share growth. That is before you account for FX and interest rate headwinds. So -- and that area there of high single digits, I think we were at 8.5%. It's been pretty consistent the last couple of years where the core business really drives that upper single-digit growth rate and then FX has been fairly volatile. That's provided a headwind. And the example we showed for 2025, it accounts for about 2.7% headwind and then we've got another 100 basis points or so from FX refinancing headwinds. So those are the two pieces that take us down from upper single-digit AFFO per share growth down to kind

Question: Matthew Niknam - Deutsche Bank AG - Analyst : Got it. One of the other interesting points I thought that came up on the call was you noted -- you recently appointed, Bud Noel, as your new COO. And you talked a little bit about incremental opportunities for business efficiency and margin expansion. What's been achieved so far? And what's incremental as we look forward?

Question: Matthew Niknam - Deutsche Bank AG - Analyst : Got it. Okay. So you talked about maybe shifting the asset mix more towards developed markets in recent years. I think this year, about 75% of unlevered AFFO is going to come from developed markets. Are you content with the current mix? Or do you see that 75-25 mix evolving even more over time?

Question: Matthew Niknam - Deutsche Bank AG - Analyst : Got it. So if we think about the current asset mix, it sounds as though, and you've got some moving parts with FX this year, some debt refinance headwinds that have been lingering -- is it fair to assume then that on sort of a multiyear algorithm basis, high single-digit growth is reasonable to assume with where the asset mix is today and with where leverage sits.

Question: Matthew Niknam - Deutsche Bank AG - Analyst : So there's a lot on pack around cap allocation. So why don't we pivot there before we get into some of the regions -- so you've been busy. You've delevered this business down to around 5.1 turns at year-end, 97% of the debt now is fixed rate. You've got what looks like incremental cash EBITDA growth and cash flow generation, what's the approach to capital allocation and uses of excess cash, especially now that you're sort of getting back within that five turn.

Question: Matthew Niknam - Deutsche Bank AG - Analyst : The dividend growth. So yes, you returned to growth. I think you bumped up the dividend by about 5% recently. Is this going to be pegged to AFFO per share growth on a go-forward basis? Is it like an optimal payout ratio you see yourself getting to over time?

Question: Matthew Niknam - Deutsche Bank AG - Analyst : One [theme] that I've actually picked up today. And we'll hear more from 1 of your peers later this afternoon, but US power seem like things are getting better. It seems like we're maybe well off the loads that we've heard about maybe in last year, years past. What are you seeing across the demand backdrop across the US business? And maybe if you can give us some more color on what's baked into the outlook for 4.3% or better online tenant billings growth this year?

Question: Matthew Niknam - Deutsche Bank AG - Analyst : Got it. And if we think about maybe the construct there, without getting into carrier specifics, is the strength broad-based? And -- are you seeing more sort of infill colos activity relative to maybe a more amendment heavy activity that you may have seen earlier in the decade?

Question: Matthew Niknam - Deutsche Bank AG - Analyst : How should investors -- as we think about the US business, maybe on a more longer-term time frame, are you still comfortable with

Question: Matthew Niknam - Deutsche Bank AG - Analyst : Got it. One last one on the US Tower business where I pivot to CoreSite. Satellite coverage has been really topical. A lot of your customers are now maybe signing agreements with satellite partners how do you frame the potential risk from satellite-based coverage to the business? And does it affect your business prospects in more rural markets, if at all? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 10, 2025 / 5:50PM, AMT.N - American Tower Corp at Deutsche Bank Media, Internet and Telecom Conference

Question: Matthew Niknam - Deutsche Bank AG - Analyst : Let's pivot to CoreSite. That's been, let's say, an area where you've got into the business about three years ago. I think performance safe to say is well exceeded initial expectations. So can you talk a little bit about the expectations for 2025. You had another record leasing year sounds like in '24. So what is -- what are the expectations for '25? And maybe just update us on how the asset fits in for the broader American Tower portfolio.

Question: Matthew Niknam - Deutsche Bank AG - Analyst : In the outlook for '25, you talked about data center CapEx that's up roughly 20% relative to a year ago. So I think it's a little over $600 million you're investing this year. Can you maybe give us some color on what's driving this and whether you ultimately envision expanding CoreSite into newer domestic or international markets.

Question: Matthew Niknam - Deutsche Bank AG - Analyst : I want to hit on. There's one other piece of the developed market portfolio in Europe, which is the market you've scaled up in, I'd say, over the last several years with the Telefonica acquisition -- (inaudible) . Can you give us an update on what you're seeing in the European market? And I guess, more importantly, would you look to add more scale there inorganically? Are you primarily focused on newer builds in that market.

Question: Matthew Niknam - Deutsche Bank AG - Analyst : I want to hit on LatAm and Africa as well. If we think about LatAm, maybe just to start. So the outlook for this year calls for another year of, call it, 2% organic tenant billings growth. M&A churn is still somewhat elevated in the mid-single digits -- can you help us REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 10, 2025 / 5:50PM, AMT.N - American Tower Corp at Deutsche Bank Media, Internet and Telecom Conference think about how long this elevated M&A churn could last? And ultimately, what normalized growth could and should look like for the region?

Question: Matthew Niknam - Deutsche Bank AG - Analyst : And then maybe just to round this out with Africa. That's actually, I think, Africa, plus Asia Pacific. It's your fastest-growing region, 12% this year. It seems like maybe we're past consolidation churn in that region? Just wondering, as you think about some of the volatility around currency that's taken place over the last year plus maybe repivoting towards more developed markets for the broader portfolio, has that affected at all the way you think about your investments in Africa and Asia Pacific?