American Tower Closes Latin American Tranche of Telxius Towers Acquisition

Rhea-AI Summary

American Tower Corporation (NYSE: AMT) has successfully completed the acquisition of over 7,000 communications sites in Brazil, Peru, Chile, and Argentina from Telxius Towers for approximately €0.9 billion ($1.1 billion). Funded through cash reserves and credit facilities, this acquisition is expected to generate around $70 million in property revenue and $40 million in gross margin for the remainder of 2021. The deal enhances American Tower's position in Latin America, leveraging partnerships with Telefónica to facilitate growth in mobile broadband connectivity.

Positive

• Acquisition adds over 7,000 sites, enhancing market presence in Latin America.
• Expected revenue generation of $70 million and gross margin of $40 million for 2021.
• Partnership with Telefónica supports future growth in 4G and 5G deployments.

Negative

• None.

American Tower Corporation (NYSE: AMT) today announced that it has closed the Latin American tranche of its Telxius Towers acquisition, comprised of over 7,000 communications sites in Brazil, Peru, Chile and Argentina, for total consideration of approximately €0.9 billion (approximately $1.1 billion at current foreign currency exchange rates). The closing was funded by a combination of cash on hand and borrowings under the Company’s revolving credit facilities and term loans.

Tom Bartlett, American Tower’s Chief Executive Officer stated, “We are pleased to add more than 7,000 sites to our extensive portfolio of communications infrastructure across Latin America. With Telefónica as our anchor tenant partner and attractive opportunities for colocation as 4G and 5G deployments accelerate, we expect to drive strong, sustainable long-term growth and attractive returns in the region while helping to enhance mobile broadband connectivity for hundreds of millions of people.”

American Tower expects these assets to generate approximately $70 million in property revenue and approximately $40 million in gross margin for the balance of 2021, at current foreign currency exchange rates, and to be immediately accretive to Consolidated AFFO per Share.

About American Tower

American Tower, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 214,000 communications sites. For more information about American Tower, please visit the “Earnings Materials” and “Investor Presentations” sections of our investor relations website at www.americantower.com.

Cautionary Language Regarding Forward-Looking Statements

This press release contains statements about future events and expectations, or “forward-looking statements,” all of which are inherently uncertain. We have based those forward-looking statements on management’s current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, statements regarding the expected financial projections for the portfolio and the impact on our consolidated results. These forward-looking statements involve a number of risks and uncertainties. For important factors that may cause actual results to differ materially from those indicated in our forward-looking statements, we refer you to the information contained in Item 1A of our Form 10-K for the year ended December 31, 2020 under the caption “Risk Factors,” and in other filings we make with the Securities and Exchange Commission. We undertake no obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances.

Consolidated AFFO is a non-GAAP financial measure. For more information, see our Form 10-Q for the quarter ended March 31, 2021 under the captions “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures” and “– Results of Operations.” Additionally, Consolidated AFFO per Share is a non-GAAP measure, and is defined as Consolidated AFFO divided by the diluted weighted average common shares outstanding.

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FAQ

What is the significance of American Tower's acquisition of Telxius Towers?

The acquisition enhances American Tower's portfolio with over 7,000 sites, improving market presence and enabling growth in mobile connectivity across Latin America.

How much did American Tower pay for the Telxius Towers acquisition?

American Tower closed the acquisition for approximately €0.9 billion, equating to around $1.1 billion.

When is the expected financial impact from the acquisition of Telxius Towers?

American Tower anticipates generating approximately $70 million in property revenue and $40 million in gross margin for the remainder of 2021.

What role does Telefónica play in American Tower's acquisition?

Telefónica serves as the anchor tenant partner, providing opportunities for colocation and supporting growth in 4G and 5G deployments.

How will the acquisition impact American Tower's stock?

The acquisition is expected to be immediately accretive to Consolidated AFFO per Share, potentially enhancing shareholder value.