American Tower Corp Q4 2024 Earnings Call Transcript

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

Question: Michael Rollins - Citigroup Inc. - Analyst : First, can you give us some additional details on what you're seeing in the domestic leasing environment, including the mix of colo versus

Question: Simon Flannery - Morgan Stanley & Co. LLC - Analyst : Steve if I could come back to the data center business. Great to see the strong performance there. Just want to get a sense of how the original concept of the integration of the data center connectivity, the towers AI inference and so forth, how are you thinking about that today? And I guess one of the concerns is we've got this massive multiple gap between data centers and towers. And are you getting full recognition for the assets that you hold given the predominance of the tower business? So I'd love to get your thoughts about is it worth owning this versus separating that? And then I think there was a reference, Rod, maybe to more money on US land purchases. Can you just give us a sense of what's driving that? How are you thinking about the economics now that's leading you to lean into that this year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 25, 2025 / 1:30PM, AMT.N - Q4 2024 American Tower Corp Earnings Call

Question: Batya Levi - UBS Securities LLC - Analyst : A couple of follow-ups on the domestic activity. I think you mentioned 65% of towers in the US have been upgraded. What does that metric look like for the carriers that are outside of the comprehensive deal? And maybe in terms of the pacing, new leasing pacing for the year, I think you mentioned mid-3s, so about $170 million versus the $180 million we saw last year. How should we think about the cadence through the year? And one final question if I could. On capital allocation, with leverage inside your target now and dividend growth potentially starting, how do you think about buybacks?

Question: Batya Levi - UBS Securities LLC - Analyst : Got it. And the buyback?

Question: Ric Prentiss - Raymond James & Associates Inc - Analyst : First, follow on, my friend, Simon, who's we're going to miss you, man. But following Simon's questions on the data center side, what kind of yields are you getting on the over $600 million on the data centers? And then when -- if, when, how does AI affect towers, we're all trying to figure out how that might play out. And then I'll have one more.

Question: Ric Prentiss - Raymond James & Associates Inc - Analyst : Okay. And following from Batya's -- go ahead, Rod.

Question: Ric Prentiss - Raymond James & Associates Inc - Analyst : Okay. And then on Batya's question, you mentioned that there could be some other M&A that would fit into the mix on stock buybacks or not. Previously, you've been thinking there's not many portfolios out there that were of interest or value creation to you, not putting words in your mouth, I don't think there. But anything changing on that dynamic as far as more portfolios coming out. Are they coming from mobile network operators? Are they coming from privates that want to exit -- what are you kind of thinking as far as what might be in that pipeline of potential M&A for tower deals?

Question: Nick Del Deo - MoffettNathanson LLC - Analyst : First, Steve, you -- achieving cost efficiencies has been a real area of focus for you, and you've been quite successful on that front over the past couple of years. I guess in your prepared remarks, you alluded to sharing long-term efficiency targets with us in the future. So I don't need you to share anything with us today before you're comfortable doing so, but at a high level, can you expand on that and maybe kind of tell us about the magnitude of savings you think American Tower can potentially achieve on this front over time?

Question: Nick Del Deo - MoffettNathanson LLC - Analyst : Okay. Great. Thanks for all the color on that front, guys. I guess one on CoreSite for you as well. Historically, when they were public, we'd see the stats by metro, the capacity and the demand was really skewed towards the Bay Area, L.A., and Northern Virginia. Have you seen the demand patterns change at all such that it's broadened out across your markets? Or do those three markets continue to garner kind of a lopsided share of demand?

Question: James Schneider - Goldman Sachs Group Inc - Analyst : I was wondering if you could maybe comment on your view of the US carrier activity relative to fixed wireless access. And specifically, are you seeing any of your carrier customers devoting new capacity specifically for that purpose as far as you can tell?

Question: James Schneider - Goldman Sachs Group Inc - Analyst : And then maybe as a follow-up, specifically relative to Europe, you're guiding for organic $10 billion, worth about 5%. Is that the right number on a multiyear basis, do you believe? Do you think there's a potential for acceleration there in the out years? And then maybe give us your view, if you would, on any M&A opportunities, specifically in that region. Is that an area where you'd like to increase your focus or not?

Question: Richard Choe - JPMorgan Chase & Co - Analyst : I wanted to ask about the services business, the 30% growth and the margin contribution. Can you give us a sense of how that should kind of grow through the year and what you're seeing there? And then I have one follow-up. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 25, 2025 / 1:30PM, AMT.N - Q4 2024 American Tower Corp Earnings Call

Question: Richard Choe - JPMorgan Chase & Co - Analyst : And then in terms of your Canadian business, can we get a little bit of color of how things are going there? And any desire to get bigger in Canada?