American Tower Corporation Reports Fourth Quarter and Full Year 2023 Financial Results
- None.
- Net income decreased by 19.4% for FY 2023 despite overall positive financial results.
- AFFO attributable to AMT common stockholders decreased by 2.1% for Q4 2023.
- Foreign currency losses and impairment charges impacted growth rates for Q4 2023 and FY 2023.
- The company's net leverage ratio was 5.2x as of December 31, 2023, indicating high leverage.
- Repayment of senior unsecured notes using borrowings may affect the company's financial position in the future.
Insights
The reported financial results of American Tower Corporation (AMT) for Q4 and full year 2023 demonstrate a mixed performance with total revenue and property revenue experiencing growth while net income saw a significant increase in Q4 but a decrease for the full year. Notably, Net income attributable to AMT common stockholders surged by 112.4% in Q4 but declined by 16.0% for the full year, which could be attributed to the impact of foreign currency fluctuations and impairment charges, particularly in India. Adjusted EBITDA, a key indicator of operational efficiency, showed an increase, suggesting effective cost management and operational discipline.
From an investment perspective, the Adjusted Funds From Operations (AFFO), a crucial metric for real estate investment trusts (REITs) like AMT, decreased slightly in Q4 but increased modestly over the full year. This measure is essential for evaluating the company's cash flow available for distribution to shareholders. The slight decrease in Q4 AFFO per share could signal caution to investors about the company's ability to maintain dividend growth, despite a reported increase in distributions per share.
The company's capital allocation strategy, including capital expenditures and acquisitions, indicates ongoing investment in its asset base, which is critical for long-term growth in the communications infrastructure sector. The planned divestiture of the company's operations in India could be a strategic move to optimize its portfolio and focus on more profitable markets. However, the outcome of this transaction will be a key factor to watch in 2024, as it could significantly impact the company's financial position and operational focus.
The communications infrastructure industry is at the cusp of transformation with the advent of 5G technology and AI, which AMT's CEO has identified as drivers for future demand. American Tower's focus on leveraging its global scale and operating model to tap into this demand is a strategic move that aligns with industry trends. The company's emphasis on cost discipline and margin expansion is particularly noteworthy in a challenging macroeconomic environment, indicating a robust approach to maintaining profitability.
AMT's property gross margin improvement suggests effective management of operational costs and pricing power in its property portfolio. This is a positive sign for investors, as it can lead to higher profitability and potentially greater returns. Furthermore, the company's commitment to shareholder returns, as evidenced by the growth in distributions per share, may attract income-focused investors, although the decreased AFFO warrants a closer examination of future cash flow sustainability.
Analyzing the company's leverage and financing activities, the Net Leverage Ratio of 5.2x is within reasonable limits for the industry, but investors should monitor this in conjunction with the company's future capital needs and the potential impact of interest rate fluctuations on its cost of debt. The company's liquidity position appears strong, providing flexibility for future investments or debt repayments.
The Pending ATC TIPL Transaction involving the sale of AMT's operations in India to Data Infrastructure Trust, sponsored by an affiliate of Brookfield Asset Management, is a significant event that requires careful legal scrutiny. The transaction is subject to customary closing conditions, including government and regulatory approvals, which can introduce uncertainties and potential delays. The outcome of this transaction will have material implications for the company's international strategy and financial health.
Investors should consider the legal complexities and risks associated with international transactions, particularly in a market like India where regulatory environments can be unpredictable. The retention of economic benefits associated with the Vodafone Idea Limited optionally convertible debentures indicates a strategic approach to maintaining some level of investment in the Indian market, albeit indirectly. This could be a hedge against complete exit from a potentially lucrative market.
Furthermore, the company's proactive approach to managing its debt profile, as seen in the repayment of senior unsecured notes using its revolving credit facility, reflects a strategic financial management approach. This activity may also have legal implications in terms of compliance with debt covenants and maintaining a strong credit rating, which in turn affects investor confidence and the company's ability to raise capital on favorable terms.
CONSOLIDATED HIGHLIGHTS
Fourth Quarter 2023
-
Total revenue increased
3.0% to$2,787 million -
Property revenue increased
4.6% to$2,766 million -
Net income increased
101.9% to$13 million -
Adjusted EBITDA increased
3.2% to$1,761 million -
Net income attributable to AMT common stockholders increased
112.4% to$85 million -
AFFO attributable to AMT common stockholders decreased
2.1% to$1,070 million
Full Year 2023
-
Total revenue increased
4.0% to$11,144 million -
Property revenue increased
5.1% to$11,001 million -
Net income decreased
19.4% to$1,367 million -
Adjusted EBITDA increased
6.7% to$7,087 million -
Net income attributable to AMT common stockholders decreased
16.0% to$1,483 million -
AFFO attributable to AMT common stockholders increased
2.1% to$4,612 million
Steven Vondran, American Tower’s Chief Executive Officer, stated, “We delivered another year of solid results at American Tower. In 2023, we combined record colocation and amendment growth in the US &
Looking to 2024 and beyond, technology evolutions such as 5G, AI and the requirement for more distributed compute workloads are expected to drive tremendous demand for our communications infrastructure assets. As a result, we’re focused on leveraging our differentiated global scale, best-in-class operating model and investment-grade balance sheet to deliver increasing shareholder returns, strong, sustainable growth and a unique value proposition for all of our stakeholders.”
CONSOLIDATED OPERATING RESULTS OVERVIEW
American Tower generated the following operating results for the quarter and full year ended December 31, 2023 (all comparative information is presented against the quarter and full year ended December 31, 2022).
($ in millions, except per share amounts.) |
|
Q4 2023 |
|
Growth Rate |
|
FY 2023 |
|
Growth Rate |
||||||
Total revenue |
|
$ |
2,787 |
|
|
3.0 |
% |
|
$ |
11,144 |
|
|
4.0 |
% |
Total property revenue |
|
$ |
2,766 |
|
|
4.6 |
% |
|
$ |
11,001 |
|
|
5.1 |
% |
Total Tenant Billings Growth |
|
$ |
129 |
|
|
7.1 |
% |
|
$ |
530 |
|
|
7.2 |
% |
Organic Tenant Billings Growth |
|
$ |
112 |
|
|
6.1 |
% |
|
$ |
460 |
|
|
6.3 |
% |
Property Gross Margin |
|
$ |
1,966 |
|
|
5.5 |
% |
|
$ |
7,801 |
|
|
6.7 |
% |
Property Gross Margin % |
|
|
71.1 |
% |
|
|
|
|
70.9 |
% |
|
|
||
Net income(1)(2)(3) |
|
$ |
13 |
|
|
101.9 |
% |
|
$ |
1,367 |
|
|
(19.4 |
)% |
Net income attributable to AMT common stockholders(1)(2)(3) |
|
$ |
85 |
|
|
112.4 |
% |
|
$ |
1,483 |
|
|
(16.0 |
)% |
Net income attributable to AMT common stockholders per diluted share(1)(2)(3) |
|
$ |
0.18 |
|
|
112.2 |
% |
|
$ |
3.18 |
|
|
(16.8 |
)% |
Adjusted EBITDA |
|
$ |
1,761 |
|
|
3.2 |
% |
|
$ |
7,087 |
|
|
6.7 |
% |
Adjusted EBITDA Margin % |
|
|
63.2 |
% |
|
|
|
|
63.6 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
||||||
Nareit Funds From Operations (FFO) attributable to AMT common stockholders(1) |
|
$ |
858 |
|
|
40.0 |
% |
|
$ |
4,610 |
|
|
(12.7 |
)% |
AFFO attributable to AMT common stockholders |
|
$ |
1,070 |
|
|
(2.1 |
)% |
|
$ |
4,612 |
|
|
2.1 |
% |
AFFO attributable to AMT common stockholders per Share |
|
$ |
2.29 |
|
|
(2.1 |
)% |
|
$ |
9.87 |
|
|
1.1 |
% |
|
|
|
|
|
|
|
|
|
||||||
Cash provided by operating activities |
|
$ |
1,142 |
|
|
(3.6 |
)% |
|
$ |
4,722 |
|
|
27.8 |
% |
Less: total cash capital expenditures(4) |
|
$ |
531 |
|
|
(20.2 |
)% |
|
$ |
1,830 |
|
|
(3.8 |
)% |
Free Cash Flow |
|
$ |
611 |
|
|
17.7 |
% |
|
$ |
2,893 |
|
|
61.3 |
% |
| _______________ | ||
(1) |
Q4 2023 and FY 2023 growth rates impacted by foreign currency (losses) gains of approximately |
|
(2) |
Q4 2023 and FY 2023 growth rates impacted by impairment charges of |
|
(3) |
Q4 2023 net income growth rates reflect the absolute growth rates as the Q4 2022 net income results represented losses of approximately |
|
(4) |
Q4 2023 and FY 2023 cash capital expenditures include |
|
Please refer to “Non-GAAP and Defined Financial Measures” below for definitions and other information regarding the Company’s use of non-GAAP measures. For financial information and reconciliations to GAAP measures, please refer to the “Unaudited Selected Consolidated Financial Information” below.
CAPITAL ALLOCATION OVERVIEW
Distributions – During the quarter and full year ended December 31, 2023, the Company declared the following regular cash distributions to its common stockholders:
Common Stock Distributions |
|
Q4 2023(1) |
|
FY 2023 |
||||
Distributions per share |
|
$ |
1.70 |
|
|
$ |
6.45 |
|
Aggregate amount (in millions) |
|
$ |
793 |
|
|
$ |
3,007 |
|
Year-over-year per share growth |
|
|
9.0 |
% |
|
|
10.1 |
% |
_______________ |
||
(1) |
The distribution declared on December 13, 2023 was paid on February 1, 2024 to stockholders of record as of the close of business on December 28, 2023. |
|
Capital Expenditures – During the fourth quarter of 2023, total capital expenditures were approximately
Acquisitions – During the fourth quarter of 2023, the Company spent approximately
Other Events – On January 4, 2024, the Company, through its subsidiaries, ATC Asia Pacific Pte. Ltd. and ATC Telecom Infrastructure Private Limited (“ATC TIPL”), which holds the Company’s operations in
LEVERAGE AND FINANCING OVERVIEW
Leverage – For the quarter ended December 31, 2023, the Company’s Net Leverage Ratio was 5.2x net debt (total debt less cash and cash equivalents) to fourth quarter 2023 annualized Adjusted EBITDA.
Calculation of Net Leverage Ratio ($ in millions, totals may not add due to rounding.) |
|
As of December 31, 2023 |
|
Total debt |
|
$ |
38,922 |
Less: Cash and cash equivalents |
|
|
1,973 |
Net Debt |
|
$ |
36,948 |
Divided By: Fourth quarter annualized Adjusted EBITDA(1) |
|
|
7,043 |
Net Leverage Ratio |
|
5.2x |
|
_______________ |
||
(1) |
Q4 2023 Adjusted EBITDA multiplied by four. |
|
Liquidity and Financing Activities – As of December 31, 2023, the Company had approximately
On January 12, 2024, the Company repaid
On February 14, 2024, the Company repaid
FULL YEAR 2024 OUTLOOK
The following full year 2024 estimates are based on a number of assumptions that management believes to be reasonable and reflect the Company’s expectations as of February 27, 2024. Actual results may differ materially from these estimates as a result of various factors, and the Company refers you to the cautionary language regarding “forward-looking statements” included in this press release when considering this information.
The Company’s outlook is based on the following average foreign currency exchange rates to
The Company’s outlook reflects estimated negative impacts of foreign currency exchange rate fluctuations to property revenue, Adjusted EBITDA and AFFO attributable to AMT common stockholders of approximately
The Company’s 2024 outlook assumes a full year contribution from the
The Company’s outlook also reflects an estimated
Additional information pertaining to the impact of foreign currency and Secured Overnight Financing Rate fluctuations on the Company’s outlook has been provided in the supplemental disclosure package available on the Company’s website.
2024 Outlook ($ in millions, except per share amounts.) |
Full Year 2024 |
|
Midpoint Growth Rates vs. Prior Year |
||||||
Total property revenue(1) |
$ |
11,050 |
to |
$ |
11,230 |
|
|
||
Net income |
|
3,305 |
to |
|
3,415 |
|
|
||
Net income attributable to AMT common stockholders |
|
3,295 |
to |
|
3,405 |
|
|
||
Adjusted EBITDA |
|
7,080 |
to |
|
7,190 |
|
|
||
AFFO attributable to AMT common stockholders |
|
4,780 |
to |
|
4,890 |
|
|
||
AFFO attributable to AMT common stockholders per Share |
$ |
10.21 |
to |
$ |
10.45 |
|
|
||
| _______________ | ||
(1) |
Includes |
|
2024 Outlook for Total Property revenue, at the midpoint, includes the following components(1): ($ in millions, totals may not add due to rounding.) |
|
|
International Property(3) |
|
Data Centers Property(4) |
|
Total Property |
||
International pass-through revenue(5) |
N/A |
|
$ |
1,610 |
|
N/A |
|
$ |
1,610 |
Straight-line revenue(6) |
216 |
|
|
21 |
|
14 |
|
|
251 |
_______________ |
||
(1) |
For additional discussion regarding these components, please refer to “Revenue Components” below. |
|
(2) |
|
|
(3) |
International property revenue reflects the Company’s |
|
(4) |
Data Centers property revenue reflects revenue from the Company’s data center facilities and related assets. |
|
(5) |
Includes |
|
(6) |
Includes |
|
2024 Outlook for Total Tenant Billings Growth, at the midpoint, includes the following components(1): (Totals may not add due to rounding.) |
|
|
International Property(2) |
|
Total Property |
Organic Tenant Billings |
~ |
|
~ |
|
~ |
New Site Tenant Billings |
~ |
|
~ |
|
~ |
Total Tenant Billings Growth |
~ |
|
~ |
|
~ |
_______________ |
||
(1) |
For additional discussion regarding the component growth rates, please refer to “Revenue Components” below. Tenant Billings Growth is not applicable to the Data Centers segment. For additional details related to the Data Centers segment, please refer to the supplemental disclosure package available on the Company’s website. |
|
(2) |
International property revenue reflects the Company’s |
|
Outlook for Capital Expenditures(1): ($ in millions, totals may not add due to rounding.) |
Full Year 2024 |
||||||
Discretionary capital projects(2) |
$ |
790 |
to |
$ |
820 |
||
Ground lease purchases |
|
70 |
to |
|
90 |
||
Start-up capital projects |
|
65 |
to |
|
85 |
||
Redevelopment |
|
455 |
to |
|
485 |
||
Capital improvement |
|
155 |
to |
|
165 |
||
Corporate |
|
10 |
— |
|
10 |
||
Total |
$ |
1,545 |
to |
$ |
1,655 |
||
_______________ |
||
| (1) |
Outlook for Capital Expenditures includes approximately |
|
| (2) |
Includes the construction of 2,500 to 3,500 communications sites globally, including approximately 800 in |
|
Reconciliation of Outlook for Adjusted EBITDA to Net income: ($ in millions, totals may not add due to rounding.) |
Full Year 2024 |
||||||||
Net income |
$ |
3,305 |
|
to |
$ |
3,415 |
|
||
Interest expense |
|
1,460 |
|
to |
|
1,440 |
|
||
Depreciation, amortization and accretion |
|
1,930 |
|
to |
|
1,950 |
|
||
Income tax provision |
|
410 |
|
to |
|
420 |
|
||
Stock-based compensation expense |
|
190 |
|
— |
|
190 |
|
||
Other, including other operating expenses, interest income, (gain) loss on retirement of long-term obligations and other (income) expense |
|
(215 |
) |
to |
|
(225 |
) |
||
Adjusted EBITDA |
$ |
7,080 |
|
to |
$ |
7,190 |
|
||
Reconciliation of Outlook for AFFO attributable to AMT common stockholders to Net income: ($ in millions, except share and per share data, totals may not add due to rounding.) |
Full Year 2024 |
||||||||
Net income |
$ |
3,305 |
|
to |
$ |
3,415 |
|
||
Straight-line revenue |
|
(251 |
) |
— |
|
(251 |
) |
||
Straight-line expense |
|
51 |
|
— |
|
51 |
|
||
Depreciation, amortization and accretion |
|
1,930 |
|
to |
|
1,950 |
|
||
Stock-based compensation expense |
|
190 |
|
— |
|
190 |
|
||
Deferred portion of income tax and other income tax adjustments |
|
65 |
|
— |
|
65 |
|
||
Other, including other operating expense, amortization of deferred financing costs, debt discounts and premiums, (gain) loss on retirement of long-term obligations, other (income) expense and long-term deferred interest charges |
|
(17 |
) |
to |
|
(27 |
) |
||
Capital improvement capital expenditures |
|
(155 |
) |
to |
|
(165 |
) |
||
Corporate capital expenditures |
|
(10 |
) |
— |
|
(10 |
) |
||
Adjustments and Distributions for unconsolidated affiliates and noncontrolling interests |
$ |
(328 |
) |
— |
$ |
(328 |
) |
||
AFFO attributable to AMT common stockholders |
$ |
4,780 |
|
to |
$ |
4,890 |
|
||
Divided by weighted average diluted shares outstanding (in thousands) |
|
468,000 |
|
— |
|
468,000 |
|
||
AFFO attributable to AMT common stockholders per Share |
$ |
10.21 |
|
to |
$ |
10.45 |
|
||
Conference Call Information
American Tower will host a conference call today at 8:30 a.m. ET to discuss its financial results for the quarter and full year ended December 31, 2023 and its outlook for 2024. Supplemental materials for the call will be available on the Company’s website, www.americantower.com. The conference call dial-in numbers are as follows:
International dial-in: (234) 720-6979
Passcode: 3589117
When available, a replay of the call can be accessed until 11:59 p.m. ET on March 12, 2024. The replay dial-in numbers are as follows:
International dial-in: (402) 970-0847
Passcode: 6745967
American Tower will also sponsor a live simulcast and replay of the call on its website, www.americantower.com.
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 over 224,000 communications sites and a highly interconnected footprint of
Non-GAAP and Defined Financial Measures
In addition to the results prepared in accordance with generally accepted accounting principles in
These measures are not intended to replace financial performance measures determined in accordance with GAAP. Rather, they are presented as additional information because management believes they are useful indicators of the current financial performance of the Company's core businesses and are commonly used across its industry peer group. As outlined in detail below, the Company believes that these measures can assist in comparing company performance on a consistent basis irrespective of depreciation and amortization or capital structure, while also providing valuable incremental insight into the underlying operating trends of its business.
Depreciation and amortization can vary significantly among companies depending on accounting methods, particularly where acquisitions or non-operating factors, including historical cost basis, are involved. The Company's Non-GAAP and Defined Financial Measures may not be comparable to similarly titled measures used by other companies.
Revenue Components
In addition to reporting total revenue, the Company believes that providing transparency around the components of its revenue provides investors with insight into the indicators of the underlying demand for, and operating performance of, its real estate portfolio. Accordingly, the Company has provided disclosure of the following revenue components: (i) Tenant Billings, (ii) New Site Tenant Billings; (iii) Organic Tenant Billings; (iv) International pass-through revenue; (v) Straight-line revenue; (vi) Pre-paid amortization revenue; (vii) Foreign currency exchange impact; and (viii) Other revenue.
Tenant Billings: The majority of the Company’s revenue is generated from non-cancellable, long-term tenant leases. Revenue from Tenant Billings reflects several key aspects of the Company’s real estate business: (i) “colocations/amendments” reflects new tenant leases for space on existing sites and amendments to existing leases to add additional tenant equipment; (ii) “escalations” reflects contractual increases in billing rates, which are typically tied to fixed percentages or a variable percentage based on a consumer price index; (iii) “cancellations” reflects the impact of tenant lease terminations or non-renewals or, in limited circumstances, when the lease rates on existing leases are reduced; and (iv) “new sites” reflects the impact of new property construction and acquisitions.
New Site Tenant Billings: Day-one Tenant Billings associated with sites that have been built or acquired since the beginning of the prior-year period. Incremental colocations/amendments, escalations or cancellations that occur on these sites after the date of their addition to our portfolio are not included in New Site Tenant Billings. The Company believes providing New Site Tenant Billings enhances an investor’s ability to analyze the Company’s existing real estate portfolio growth as well as its development program growth, as the Company’s construction and acquisition activities can drive variability in growth rates from period to period.
Organic Tenant Billings: Tenant Billings on sites that the Company has owned since the beginning of the prior-year period, as well as Tenant Billings activity on new sites that occurred after the date of their addition to the Company’s portfolio.
International pass-through revenue: A portion of the Company’s pass-through revenue is based on power and fuel expense reimbursements and therefore subject to fluctuations in fuel prices. As a result, revenue growth rates may fluctuate depending on the market price for fuel in any given period, which is not representative of the Company’s real estate business and its economic exposure to power and fuel costs. Furthermore, this expense reimbursement mitigates the economic impact associated with fluctuations in operating expenses, such as power and fuel costs and land rents in certain of the Company’s markets. As a result, the Company believes that it is appropriate to provide insight into the impact of pass-through revenue on certain revenue growth rates.
Straight-line revenue: Under GAAP, the Company recognizes revenue on a straight-line basis over the term of the contract for certain of its tenant leases. Due to the Company’s significant base of non-cancellable, long-term tenant leases, this can result in significant fluctuations in growth rates upon tenant lease signings and renewals (typically increases), when amounts billed or received upfront upon these events are initially deferred. These signings and renewals are only a portion of the Company’s underlying business growth and can distort the underlying performance of our Tenant Billings Growth. As a result, the Company believes that it is appropriate to provide insight into the impact of straight-line revenue on certain growth rates in revenue and select other measures.
Pre-paid amortization revenue: The Company recovers a portion of the costs it incurs for the redevelopment and development of its properties from its tenants. These upfront payments are then amortized over the initial term of the corresponding tenant lease. Given this amortization is not necessarily directly representative of underlying leasing activity on its real estate portfolio (i.e. does not have a renewal option or escalation as our tenant leases do), the Company believes that it is appropriate to provide insight into the impact of pre-paid amortization revenue on certain revenue growth rates to provide transparency into the underlying performance of our real estate business.
Foreign currency exchange impact: The majority of the Company’s international revenue and operating expenses are denominated in each country’s local currency. As a result, foreign currency fluctuations may distort the underlying performance of our real estate business from period to period, depending on the movement of foreign currency exchange rates versus the
Other revenue: Other revenue represents revenue not captured by the above listed items and can include items such as customer settlements, fiber solutions revenue and data centers revenue.
Non-GAAP and Defined Financial Measure Definitions
Tenant Billings Growth: The increase or decrease resulting from a comparison of Tenant Billings for a current period with Tenant Billings for the corresponding prior-year period, in each case adjusted for foreign currency exchange rate fluctuations. The Company believes this measure provides valuable insight into the growth in recurring Tenant Billings and underlying demand for its real estate portfolio.
Organic Tenant Billings Growth: The portion of Tenant Billings Growth attributable to Organic Tenant Billings. The Company believes that organic growth is a useful measure of its ability to add tenancy and incremental revenue to its assets for the reported period, which enables investors and analysts to gain additional insight into the relative attractiveness, and therefore the value, of the Company’s property assets.
New Site Tenant Billings Growth: The portion of Tenant Billings Growth attributable to New Site Tenant Billings. The Company believes this measure provides valuable insight into the growth attributable to Tenant Billings from recently acquired or constructed properties.
Gross Margin: Revenues less operating expenses, excluding depreciation, amortization and accretion, selling, general, administrative and development expense and other operating expenses. The Company believes this measure provides valuable insight into the site-level profitability of its assets.
Operating Profit: Gross Margin less selling, general, administrative and development expense, excluding stock-based compensation expense and corporate expenses. The Company believes this measure provides valuable insight into the site-level profitability of its assets while also taking into account the overhead expenses required to manage each of its operating segments.
Operating Profit Margin: The percentage that results from dividing Operating Profit by revenue.
Adjusted EBITDA: Net income before income (loss) from equity method investments, income tax benefit (provision), other income (expense), gain (loss) on retirement of long-term obligations, interest expense, interest income, other operating income (expense), including Goodwill impairment, depreciation, amortization and accretion and stock-based compensation expense. The Company believes this measure provides valuable insight into the profitability of its operations while at the same time taking into account the central overhead expenses required to manage its global operations. In addition, it is a widely used performance measure across the telecommunications real estate sector.
Adjusted EBITDA Margin: The percentage that results from dividing Adjusted EBITDA by total revenue.
Nareit Funds From Operations (FFO), as defined by the National Association of Real Estate Investment Trusts (Nareit), attributable to American Tower Corporation common stockholders: Net income before gains or losses from the sale or disposal of real estate, real estate related impairment charges, real estate related depreciation, amortization and accretion less dividends to noncontrolling interests, and including adjustments for (i) unconsolidated affiliates and (ii) noncontrolling interests. The Company believes this measure provides valuable insight into the operating performance of its property assets by excluding the charges described above, particularly depreciation expenses, given the high initial, up-front capital intensity of the Company’s operating model. In addition, it is a widely used performance measure across the telecommunications real estate sector.
Consolidated Adjusted Funds From Operations (AFFO): Nareit FFO attributable to American Tower Corporation common stockholders before (i) straight-line revenue and expense, (ii) stock-based compensation expense, (iii) the deferred portion of income tax and other income tax adjustments, (iv) non-real estate related depreciation, amortization and accretion, (v) amortization of deferred financing costs, debt discounts and premiums and long-term deferred interest charges, (vi) other income (expense), (vii) gain (loss) on retirement of long-term obligations, (viii) other operating income (expense), and adjustments for (ix) unconsolidated affiliates and (x) noncontrolling interests, less cash payments related to capital improvements and cash payments related to corporate capital expenditures. The Company believes this measure provides valuable insight into the operating performance of its property assets by further adjusting the Nareit FFO attributable to American Tower Corporation common stockholders metric to exclude the factors outlined above, which if unadjusted, may cause material fluctuations in Nareit FFO attributable to American Tower Corporation common stockholders growth from period to period that would not be representative of the underlying performance of the Company’s property assets in those periods. In addition, it is a widely used performance measure across the telecommunications real estate sector.
Adjusted Funds From Operations (AFFO) attributable to American Tower Corporation common stockholders: Nareit FFO attributable to American Tower Corporation common stockholders before (i) straight-line revenue and expense, (ii) stock-based compensation expense, (iii) the deferred portion of income tax and other income tax adjustments, (iv) non-real estate related depreciation, amortization and accretion, (v) amortization of deferred financing costs, debt discounts and premiums and long-term deferred interest charges, (vi) other income (expense), (vii) gain (loss) on retirement of long-term obligations, and (viii) other operating income (expense), less cash payments related to capital improvements and cash payments related to corporate capital expenditures, excluding the impact of noncontrolling interests on both Nareit FFO attributable to American Tower Corporation common stockholders and the other line items included in the calculation of AFFO attributable to American Tower Corporation common stockholders. The Company believes this measure provides valuable insight into the operating performance of its assets by further adjusting the Nareit AFFO attributable to American Tower Corporation common stockholders metric to exclude the factors outlined above, which if unadjusted, may cause material fluctuations in Nareit FFO attributable to American Tower Corporation stockholders growth from period to period that would not be representative of the underlying performance of the Company’s property assets in those periods. In addition, it is a widely used performance measure across the telecommunications real estate sector. The Company believes providing this metric, excluding the impacts of noncontrolling interests, enhances transparency, given the minority interest in its
AFFO attributable to American Tower Corporation common stockholders per Share: AFFO attributable to American Tower Corporation common stockholders divided by the diluted weighted average common shares outstanding.
Unlevered AFFO attributable to AMT common stockholders: AFFO attributable to AMT common stockholders before deducting net interest charges. The Company believes this measure provides valuable insight into the
Free Cash Flow: Cash provided by operating activities less total cash capital expenditures, including payments on finance leases and perpetual land easements. The Company believes that Free Cash Flow is useful to investors as the basis for comparing our performance and coverage ratios with other companies in its industry, although this measure of Free Cash Flow may not be directly comparable to similar measures used by other companies.
Net Debt: Total long-term debt, including current portion and finance lease liabilities, less cash and cash equivalents.
Net Leverage Ratio: Net Debt divided by the quarter’s annualized Adjusted EBITDA (the quarter’s Adjusted EBITDA multiplied by four). The Company believes that including this calculation is important for investors and analysts given it is a critical component underlying its credit agency ratings.
Cautionary Language Regarding Forward-Looking Statements
This press release contains “forward-looking statements” concerning our goals, beliefs, expectations, strategies, objectives, plans, future operating results and underlying assumptions and other statements that are not necessarily based on historical facts. Examples of these statements include, but are not limited to, statements regarding our full year 2024 outlook and other targets, foreign currency exchange rates, our expectations regarding the potential impacts of the Adjusted Gross Revenue court ruling in
UNAUDITED CONSOLIDATED BALANCE SHEETS |
|||||||
(In millions) |
|||||||
|
December 31, 2023 |
|
December 31, 2022 |
||||
ASSETS |
|
|
|
||||
CURRENT ASSETS: |
|
|
|
||||
Cash and cash equivalents |
$ |
1,973.3 |
|
|
$ |
2,028.4 |
|
Restricted cash |
|
120.1 |
|
|
|
112.3 |
|
Accounts receivable, net |
|
669.7 |
|
|
|
758.3 |
|
Prepaid and other current assets |
|
946.9 |
|
|
|
723.3 |
|
Total current assets |
|
3,710.0 |
|
|
|
3,622.3 |
|
PROPERTY AND EQUIPMENT, net |
|
19,788.8 |
|
|
|
19,998.3 |
|
GOODWILL |
|
12,639.0 |
|
|
|
12,956.7 |
|
OTHER INTANGIBLE ASSETS, net |
|
16,520.7 |
|
|
|
17,983.3 |
|
DEFERRED TAX ASSET |
|
179.1 |
|
|
|
129.2 |
|
DEFERRED RENT ASSET |
|
3,521.8 |
|
|
|
3,039.1 |
|
RIGHT-OF-USE ASSET |
|
8,878.8 |
|
|
|
8,918.9 |
|
NOTES RECEIVABLE AND OTHER NON-CURRENT ASSETS |
|
789.4 |
|
|
|
546.7 |
|
TOTAL |
$ |
66,027.6 |
|
|
$ |
67,194.5 |
|
LIABILITIES |
|
|
|
||||
CURRENT LIABILITIES: |
|
|
|
||||
Accounts payable |
$ |
258.7 |
|
|
$ |
218.6 |
|
Accrued expenses |
|
1,280.6 |
|
|
|
1,344.2 |
|
Distributions payable |
|
906.2 |
|
|
|
745.3 |
|
Accrued interest |
|
387.0 |
|
|
|
261.0 |
|
Current portion of operating lease liability |
|
794.6 |
|
|
|
788.9 |
|
Current portion of long-term obligations |
|
3,187.5 |
|
|
|
4,514.2 |
|
Unearned revenue |
|
434.7 |
|
|
|
439.7 |
|
Total current liabilities |
|
7,249.3 |
|
|
|
8,311.9 |
|
LONG-TERM OBLIGATIONS |
|
35,734.0 |
|
|
|
34,156.0 |
|
OPERATING LEASE LIABILITY |
|
7,438.7 |
|
|
|
7,591.9 |
|
ASSET RETIREMENT OBLIGATIONS |
|
2,158.2 |
|
|
|
2,047.4 |
|
DEFERRED TAX LIABILITY |
|
1,361.4 |
|
|
|
1,492.0 |
|
OTHER NON-CURRENT LIABILITIES |
|
1,220.6 |
|
|
|
1,186.8 |
|
Total liabilities |
|
55,162.2 |
|
|
|
54,786.0 |
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
||||
EQUITY: |
|
|
|
||||
Common stock |
|
4.8 |
|
|
|
4.8 |
|
Additional paid-in capital |
|
14,872.9 |
|
|
|
14,689.0 |
|
Distributions in excess of earnings |
|
(3,638.8 |
) |
|
|
(2,101.9 |
) |
Accumulated other comprehensive loss |
|
(5,739.5 |
) |
|
|
(5,718.3 |
) |
Treasury stock |
|
(1,301.2 |
) |
|
|
(1,301.2 |
) |
Total American Tower Corporation equity |
|
4,198.2 |
|
|
|
5,572.4 |
|
Noncontrolling interests |
|
6,667.2 |
|
|
|
6,836.1 |
|
Total equity |
|
10,865.4 |
|
|
|
12,408.5 |
|
TOTAL |
$ |
66,027.6 |
|
|
$ |
67,194.5 |
|
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(In millions, except share and per share data) |
|||||||||||||||
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
REVENUES: |
|
|
|
|
|
|
|
||||||||
Property |
$ |
2,765.7 |
|
|
$ |
2,644.8 |
|
|
$ |
11,001.2 |
|
|
$ |
10,470.0 |
|
Services |
|
21.0 |
|
|
|
60.2 |
|
|
|
143.0 |
|
|
|
241.1 |
|
Total operating revenues |
|
2,786.7 |
|
|
|
2,705.0 |
|
|
|
11,144.2 |
|
|
|
10,711.1 |
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
||||||||
Costs of operations (exclusive of items shown separately below): |
|
|
|
|
|
|
|
||||||||
Property |
|
800.1 |
|
|
|
782.1 |
|
|
|
3,200.5 |
|
|
|
3,156.4 |
|
Services |
|
11.3 |
|
|
|
22.9 |
|
|
|
60.1 |
|
|
|
107.4 |
|
Depreciation, amortization and accretion |
|
764.9 |
|
|
|
814.7 |
|
|
|
3,086.5 |
|
|
|
3,355.1 |
|
Selling, general, administrative and development expense(1) |
|
252.3 |
|
|
|
224.3 |
|
|
|
992.5 |
|
|
|
972.3 |
|
Other operating expenses(2) |
|
161.2 |
|
|
|
669.0 |
|
|
|
377.7 |
|
|
|
767.6 |
|
Goodwill impairment(3) |
|
80.0 |
|
|
|
— |
|
|
|
402.0 |
|
|
|
— |
|
Total operating expenses |
|
2,069.8 |
|
|
|
2,513.0 |
|
|
|
8,119.3 |
|
|
|
8,358.8 |
|
OPERATING INCOME |
|
716.9 |
|
|
|
192.0 |
|
|
|
3,024.9 |
|
|
|
2,352.3 |
|
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
||||||||
Interest income |
|
36.3 |
|
|
|
28.6 |
|
|
|
143.4 |
|
|
|
71.6 |
|
Interest expense |
|
(350.7 |
) |
|
|
(303.5 |
) |
|
|
(1,398.2 |
) |
|
|
(1,136.5 |
) |
Loss on retirement of long-term obligations |
|
— |
|
|
|
— |
|
|
|
(0.3 |
) |
|
|
(0.4 |
) |
Other (expense) income (including foreign currency (losses) gains of ( |
|
(367.3 |
) |
|
|
(675.7 |
) |
|
|
(248.5 |
) |
|
|
433.7 |
|
Total other expense |
|
(681.7 |
) |
|
|
(950.6 |
) |
|
|
(1,503.6 |
) |
|
|
(631.6 |
) |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
35.2 |
|
|
|
(758.6 |
) |
|
|
1,521.3 |
|
|
|
1,720.7 |
|
Income tax (provision) benefit(4) |
|
(21.9 |
) |
|
|
42.0 |
|
|
|
(154.2 |
) |
|
|
(24.0 |
) |
NET INCOME (LOSS) |
|
13.3 |
|
|
|
(716.6 |
) |
|
|
1,367.1 |
|
|
|
1,696.7 |
|
Net loss attributable to noncontrolling interests |
|
71.6 |
|
|
|
32.8 |
|
|
|
116.2 |
|
|
|
69.1 |
|
NET INCOME (LOSS) ATTRIBUTABLE TO AMERICAN TOWER CORPORATION COMMON STOCKHOLDERS |
$ |
84.9 |
|
|
$ |
(683.8 |
) |
|
$ |
1,483.3 |
|
|
$ |
1,765.8 |
|
NET INCOME (LOSS) PER COMMON SHARE AMOUNTS: |
|
|
|
|
|
|
|
||||||||
Basic net income (loss) attributable to American Tower Corporation common stockholders |
$ |
0.18 |
|
|
$ |
(1.47 |
) |
|
$ |
3.18 |
|
|
$ |
3.83 |
|
Diluted net income (loss) attributable to American Tower Corporation common stockholders |
$ |
0.18 |
|
|
$ |
(1.47 |
) |
|
$ |
3.18 |
|
|
$ |
3.82 |
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (in thousands): |
|
|
|
|
|
|
|
||||||||
BASIC |
|
466,249 |
|
|
|
465,609 |
|
|
|
466,063 |
|
|
|
461,519 |
|
DILUTED |
|
467,453 |
|
|
|
466,696 |
|
|
|
467,162 |
|
|
|
462,750 |
|
| _______________ | ||
(1) |
Selling, general, administrative and development expense includes stock-based compensation expense in aggregate amounts of |
|
(2) |
Three and twelve months ended December 31, 2023 include approximately |
|
(3) |
Goodwill impairment charges include |
|
(4) |
Three and twelve months ended December 31, 2022 reflects income tax benefits associated with intangible asset impairments, primarily in |
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(In millions) |
|||||||
|
Twelve Months Ended December 31, |
||||||
|
2023 |
|
2022 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
||||
Net income |
$ |
1,367.1 |
|
|
$ |
1,696.7 |
|
Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
||||
Depreciation, amortization and accretion |
|
3,086.5 |
|
|
|
3,355.1 |
|
Stock-based compensation expense |
|
195.7 |
|
|
|
169.3 |
|
Loss on early retirement of long-term obligations |
|
0.3 |
|
|
|
0.4 |
|
Other non-cash items reflected in statements of operations |
|
886.7 |
|
|
|
93.9 |
|
Increase in net deferred rent balances |
|
(472.0 |
) |
|
|
(499.8 |
) |
Right-of-use asset and Operating lease liability, net |
|
(103.7 |
) |
|
|
(9.3 |
) |
Changes in unearned revenue |
|
(43.4 |
) |
|
|
(818.9 |
) |
Increase in assets |
|
(377.1 |
) |
|
|
(274.7 |
) |
Increase (decrease) in liabilities |
|
182.3 |
|
|
|
(16.5 |
) |
Cash provided by operating activities |
|
4,722.4 |
|
|
|
3,696.2 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
||||
Payments for purchase of property and equipment and construction activities |
|
(1,798.1 |
) |
|
|
(1,873.6 |
) |
Payments for acquisitions, net of cash acquired |
|
(168.0 |
) |
|
|
(549.0 |
) |
Proceeds from sales of short-term investments and other non-current assets |
|
17.3 |
|
|
|
19.6 |
|
Deposits and other |
|
253.3 |
|
|
|
47.8 |
|
Cash used for investing activities |
|
(1,695.5 |
) |
|
|
(2,355.2 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
||||
Proceeds from short-term borrowings, net |
|
148.7 |
|
|
|
28.8 |
|
Borrowings under credit facilities |
|
6,120.0 |
|
|
|
4,190.0 |
|
Proceeds from issuance of senior notes, net |
|
5,678.3 |
|
|
|
1,293.6 |
|
Proceeds from issuance of securities in securitization transaction |
|
1,300.0 |
|
|
|
— |
|
Repayments of notes payable, credit facilities, senior notes, secured debt, term loans and finance leases(1) |
|
(13,230.3 |
) |
|
|
(9,625.5 |
) |
Contributions from noncontrolling interest holders |
|
4.1 |
|
|
|
3,120.8 |
|
Distributions to noncontrolling interest holders |
|
(46.5 |
) |
|
|
(10.9 |
) |
Purchases of common stock |
|
— |
|
|
|
(18.8 |
) |
Proceeds from stock options and employee stock purchase plan |
|
22.1 |
|
|
|
32.4 |
|
Distributions paid on common stock |
|
(2,949.3 |
) |
|
|
(2,630.4 |
) |
Proceeds from the issuance of common stock, net |
|
— |
|
|
|
2,291.7 |
|
Deferred financing costs and other financing activities(2) |
|
(144.5 |
) |
|
|
(94.9 |
) |
Cash used for financing activities |
|
(3,097.4 |
) |
|
|
(1,423.2 |
) |
Net effect of changes in foreign currency exchange rates on cash and cash equivalents, and restricted cash |
|
23.2 |
|
|
|
(120.4 |
) |
NET DECREASE IN CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH |
|
(47.3 |
) |
|
|
(202.6 |
) |
CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD |
|
2,140.7 |
|
|
|
2,343.3 |
|
CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD |
$ |
2,093.4 |
|
|
$ |
2,140.7 |
|
CASH PAID FOR INCOME TAXES, NET(3) |
$ |
306.5 |
|
|
$ |
322.3 |
|
CASH PAID FOR INTEREST |
$ |
1,260.0 |
|
|
$ |
1,088.6 |
|
_______________ |
||
(1) |
Twelve months ended December 31, 2023 and December 31, 2022 include |
|
(2) |
Twelve months ended December 31, 2023 and December 31, 2022 include |
|
(3) |
Twelve months ended December 31, 2022 include |
|
UNAUDITED CONSOLIDATED RESULTS FROM OPERATIONS, BY SEGMENT |
|||||||||||||||||||||||||||||||||||||||
($ in millions, totals may not add due to rounding.) |
|||||||||||||||||||||||||||||||||||||||
|
Three Months Ended December 31, 2023 |
||||||||||||||||||||||||||||||||||||||
|
Property |
|
Services |
|
Total |
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
Total International(1) |
|
Data Centers(2) |
|
Total Property |
||||||||||||||||||||||||
Segment revenues |
$ |
1,301 |
|
|
$ |
435 |
|
|
$ |
336 |
|
|
$ |
294 |
|
|
$ |
185 |
|
|
$ |
1,250 |
|
|
$ |
215 |
|
|
$ |
2,766 |
|
|
$ |
21 |
|
|
$ |
2,787 |
|
Segment operating expenses |
|
213 |
|
|
|
144 |
|
|
|
177 |
|
|
|
105 |
|
|
|
70 |
|
|
|
497 |
|
|
|
90 |
|
|
|
800 |
|
|
|
11 |
|
|
|
811 |
|
Segment Gross Margin |
$ |
1,088 |
|
|
$ |
291 |
|
|
$ |
159 |
|
|
$ |
189 |
|
|
$ |
115 |
|
|
$ |
753 |
|
|
$ |
125 |
|
|
$ |
1,966 |
|
|
$ |
10 |
|
|
$ |
1,975 |
|
Segment SG&A(3) |
|
42 |
|
|
|
26 |
|
|
|
6 |
|
|
|
26 |
|
|
|
21 |
|
|
|
79 |
|
|
|
18 |
|
|
|
140 |
|
|
|
6 |
|
|
|
145 |
|
Segment Operating Profit |
$ |
1,045 |
|
|
$ |
265 |
|
|
$ |
152 |
|
|
$ |
162 |
|
|
$ |
94 |
|
|
$ |
674 |
|
|
$ |
107 |
|
|
$ |
1,826 |
|
|
$ |
4 |
|
|
$ |
1,830 |
|
Segment Operating Profit Margin |
|
80 |
% |
|
|
61 |
% |
|
|
45 |
% |
|
|
55 |
% |
|
|
51 |
% |
|
|
54 |
% |
|
|
50 |
% |
|
|
66 |
% |
|
|
19 |
% |
|
|
66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Growth Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Revenue Growth |
|
1.7 |
% |
|
|
1.9 |
% |
|
|
45.1 |
% |
|
|
(12.5 |
)% |
|
|
6.2 |
% |
|
|
7.0 |
% |
|
|
8.8 |
% |
|
|
4.6 |
% |
|
|
(65.1 |
)% |
|
|
3.0 |
% |
Total Tenant Billings Growth |
|
5.1 |
% |
|
|
4.3 |
% |
|
|
8.1 |
% |
|
|
20.3 |
% |
|
|
10.0 |
% |
|
|
10.1 |
% |
|
|
N/A |
|
|
|
7.1 |
% |
|
|
|
|
||||
Organic Tenant Billings Growth |
|
5.1 |
% |
|
|
4.1 |
% |
|
|
6.6 |
% |
|
|
13.3 |
% |
|
|
8.5 |
% |
|
|
7.7 |
% |
|
|
N/A |
|
|
|
6.1 |
% |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Revenue Components(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Prior-Year Tenant Billings |
$ |
1,107 |
|
|
$ |
265 |
|
|
$ |
153 |
|
|
$ |
183 |
|
|
$ |
114 |
|
|
$ |
715 |
|
|
$ |
— |
|
|
$ |
1,822 |
|
|
|
|
|
||||
Colocations/Amendments |
|
53 |
|
|
|
8 |
|
|
|
10 |
|
|
|
15 |
|
|
|
4 |
|
|
|
37 |
|
|
|
— |
|
|
|
90 |
|
|
|
|
|
||||
Escalations |
|
34 |
|
|
|
18 |
|
|
|
3 |
|
|
|
17 |
|
|
|
7 |
|
|
|
45 |
|
|
|
— |
|
|
|
79 |
|
|
|
|
|
||||
Cancellations |
|
(28 |
) |
|
|
(15 |
) |
|
|
(4 |
) |
|
|
(9 |
) |
|
|
(1 |
) |
|
|
(29 |
) |
|
|
— |
|
|
|
(57 |
) |
|
|
|
|
||||
Other |
|
(2 |
) |
|
|
0 |
|
|
|
1 |
|
|
|
1 |
|
|
|
(0 |
) |
|
|
2 |
|
|
|
— |
|
|
|
1 |
|
|
|
|
|
||||
Organic Tenant Billings |
$ |
1,164 |
|
|
$ |
276 |
|
|
$ |
163 |
|
|
$ |
208 |
|
|
$ |
124 |
|
|
$ |
770 |
|
|
$ |
— |
|
|
$ |
1,934 |
|
|
|
|
|
||||
New Site Tenant Billings |
|
(0 |
) |
|
|
0 |
|
|
|
2 |
|
|
|
13 |
|
|
|
2 |
|
|
|
17 |
|
|
|
— |
|
|
|
17 |
|
|
|
|
|
||||
Total Tenant Billings |
$ |
1,163 |
|
|
$ |
276 |
|
|
$ |
165 |
|
|
$ |
220 |
|
|
$ |
125 |
|
|
$ |
787 |
|
|
$ |
— |
|
|
$ |
1,951 |
|
|
|
|
|
||||
Foreign Currency Exchange Impact(5) |
|
(0 |
) |
|
|
23 |
|
|
|
(2 |
) |
|
|
(28 |
) |
|
|
7 |
|
|
|
1 |
|
|
|
— |
|
|
|
0 |
|
|
|
|
|
||||
Total Tenant Billings (Current Period) |
$ |
1,163 |
|
|
$ |
300 |
|
|
$ |
163 |
|
|
$ |
193 |
|
|
$ |
133 |
|
|
$ |
788 |
|
|
$ |
— |
|
|
$ |
1,951 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Straight-Line Revenue |
|
107 |
|
|
|
(1 |
) |
|
|
6 |
|
|
|
18 |
|
|
|
1 |
|
|
|
23 |
|
|
|
4 |
|
|
|
135 |
|
|
|
|
|
||||
Pre-paid Amortization Revenue |
|
23 |
|
|
|
1 |
|
|
|
— |
|
|
|
0 |
|
|
|
5 |
|
|
|
6 |
|
|
|
— |
|
|
|
30 |
|
|
|
|
|
||||
Other Revenue |
|
7 |
|
|
|
17 |
|
|
|
17 |
|
|
|
(6 |
) |
|
|
5 |
|
|
|
32 |
|
|
|
211 |
|
|
|
251 |
|
|
|
|
|
||||
International Pass-Through Revenue |
|
— |
|
|
|
110 |
|
|
|
152 |
|
|
|
132 |
|
|
|
39 |
|
|
|
434 |
|
|
|
— |
|
|
|
434 |
|
|
|
|
|
||||
Foreign Currency Exchange Impact(6) |
|
(0 |
) |
|
|
9 |
|
|
|
(3 |
) |
|
|
(43 |
) |
|
|
3 |
|
|
|
(34 |
) |
|
|
— |
|
|
|
(34 |
) |
|
|
|
|
||||
Total Property Revenue (Current Period) |
$ |
1,301 |
|
|
$ |
435 |
|
|
$ |
336 |
|
|
$ |
294 |
|
|
$ |
185 |
|
|
$ |
1,250 |
|
|
$ |
215 |
|
|
$ |
2,766 |
|
|
|
|
|
||||
| _______________ | ||
(1) |
Total International reflects the Company’s international operations excluding |
|
(2) |
For additional details related to the Data Centers segment, please refer to the supplemental disclosure package available on the Company’s website. |
|
(3) |
Excludes stock-based compensation expense. |
|
(4) |
All components of revenue, except those labeled current period, have been translated at prior-period foreign currency exchange rates. |
|
(5) |
Reflects foreign currency exchange impact on all components of Total Tenant Billings. |
|
(6) |
Reflects foreign currency exchange impact on components of revenue, other than Total Tenant Billings. |
|
UNAUDITED CONSOLIDATED RESULTS FROM OPERATIONS, BY SEGMENT (CONTINUED) |
|||||||||||||||||||||||||||||||||||||||
($ in millions, totals may not add due to rounding.) |
|||||||||||||||||||||||||||||||||||||||
|
Three Months Ended December 31, 2022 |
||||||||||||||||||||||||||||||||||||||
|
Property |
|
Services |
|
Total |
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
Total International(1) |
|
Data Centers(2) |
|
Total Property |
||||||||||||||||||||||||
Segment revenues |
$ |
1,279 |
|
|
$ |
427 |
|
|
$ |
231 |
|
|
$ |
336 |
|
|
$ |
174 |
|
|
$ |
1,169 |
|
|
$ |
198 |
|
|
$ |
2,645 |
|
|
$ |
60 |
|
|
$ |
2,705 |
|
Segment operating expenses |
|
214 |
|
|
|
132 |
|
|
|
169 |
|
|
|
116 |
|
|
|
69 |
|
|
|
485 |
|
|
|
83 |
|
|
|
782 |
|
|
|
23 |
|
|
|
805 |
|
Segment Gross Margin |
$ |
1,065 |
|
|
$ |
295 |
|
|
$ |
62 |
|
|
$ |
220 |
|
|
$ |
105 |
|
|
$ |
683 |
|
|
$ |
115 |
|
|
$ |
1,863 |
|
|
$ |
37 |
|
|
$ |
1,900 |
|
Segment SG&A(3) |
|
49 |
|
|
|
26 |
|
|
|
4 |
|
|
|
16 |
|
|
|
11 |
|
|
|
58 |
|
|
|
16 |
|
|
|
123 |
|
|
|
6 |
|
|
|
128 |
|
Segment Operating Profit |
$ |
1,016 |
|
|
$ |
269 |
|
|
$ |
58 |
|
|
$ |
204 |
|
|
$ |
94 |
|
|
$ |
626 |
|
|
$ |
99 |
|
|
$ |
1,740 |
|
|
$ |
32 |
|
|
$ |
1,772 |
|
Segment Operating Profit Margin |
|
79 |
% |
|
|
63 |
% |
|
|
25 |
% |
|
|
61 |
% |
|
|
54 |
% |
|
|
54 |
% |
|
|
50 |
% |
|
|
66 |
% |
|
|
52 |
% |
|
|
65 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Growth Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Revenue Growth |
|
3.8 |
% |
|
|
14.8 |
% |
|
|
(24.4 |
)% |
|
|
27.0 |
% |
|
|
(7.2 |
)% |
|
|
3.4 |
% |
|
|
1,174.2 |
% |
|
|
11.2 |
% |
|
|
(10.4 |
)% |
|
|
10.6 |
% |
Total Tenant Billings Growth |
|
3.9 |
% |
|
|
6.6 |
% |
|
|
6.4 |
% |
|
|
12.1 |
% |
|
|
8.4 |
% |
|
|
8.3 |
% |
|
|
N/A |
|
|
|
5.7 |
% |
|
|
|
|
||||
Organic Tenant Billings Growth |
|
4.1 |
% |
|
|
6.4 |
% |
|
|
2.5 |
% |
|
|
7.0 |
% |
|
|
5.9 |
% |
|
|
5.6 |
% |
|
|
N/A |
|
|
|
4.7 |
% |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Revenue Components(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Prior-Year Tenant Billings |
$ |
1,065 |
|
|
$ |
244 |
|
|
$ |
158 |
|
|
$ |
188 |
|
|
$ |
119 |
|
|
$ |
708 |
|
|
$ |
— |
|
|
$ |
1,772 |
|
|
|
|
|
||||
Colocations/Amendments |
|
43 |
|
|
|
8 |
|
|
|
8 |
|
|
|
14 |
|
|
|
3 |
|
|
|
34 |
|
|
|
— |
|
|
|
77 |
|
|
|
|
|
||||
Escalations |
|
31 |
|
|
|
22 |
|
|
|
3 |
|
|
|
10 |
|
|
|
5 |
|
|
|
40 |
|
|
|
— |
|
|
|
72 |
|
|
|
|
|
||||
Cancellations |
|
(29 |
) |
|
|
(15 |
) |
|
|
(7 |
) |
|
|
(12 |
) |
|
|
(1 |
) |
|
|
(35 |
) |
|
|
— |
|
|
|
(63 |
) |
|
|
|
|
||||
Other |
|
(2 |
) |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
(0 |
) |
|
|
0 |
|
|
|
— |
|
|
|
(2 |
) |
|
|
|
|
||||
Organic Tenant Billings |
$ |
1,109 |
|
|
$ |
259 |
|
|
$ |
162 |
|
|
$ |
201 |
|
|
$ |
126 |
|
|
$ |
747 |
|
|
$ |
— |
|
|
$ |
1,856 |
|
|
|
|
|
||||
New Site Tenant Billings |
|
(2 |
) |
|
|
1 |
|
|
|
6 |
|
|
|
9 |
|
|
|
3 |
|
|
|
19 |
|
|
|
— |
|
|
|
17 |
|
|
|
|
|
||||
Total Tenant Billings |
$ |
1,107 |
|
|
$ |
260 |
|
|
$ |
168 |
|
|
$ |
210 |
|
|
$ |
128 |
|
|
$ |
766 |
|
|
$ |
— |
|
|
$ |
1,873 |
|
|
|
|
|
||||
Foreign Currency Exchange Impact(5) |
|
(0 |
) |
|
|
5 |
|
|
|
(15 |
) |
|
|
(27 |
) |
|
|
(14 |
) |
|
|
(51 |
) |
|
|
— |
|
|
|
(52 |
) |
|
|
|
|
||||
Total Tenant Billings (Current Period) |
$ |
1,107 |
|
|
$ |
265 |
|
|
$ |
153 |
|
|
$ |
183 |
|
|
$ |
114 |
|
|
$ |
715 |
|
|
$ |
— |
|
|
$ |
1,822 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Straight-Line Revenue |
|
144 |
|
|
|
(2 |
) |
|
|
(11 |
) |
|
|
11 |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
6 |
|
|
|
149 |
|
|
|
|
|
||||
Pre-paid Amortization Revenue |
|
24 |
|
|
|
0 |
|
|
|
— |
|
|
|
0 |
|
|
|
4 |
|
|
|
4 |
|
|
|
— |
|
|
|
29 |
|
|
|
|
|
||||
Other Revenue |
|
4 |
|
|
|
55 |
|
|
|
(26 |
) |
|
|
34 |
|
|
|
8 |
|
|
|
72 |
|
|
|
191 |
|
|
|
267 |
|
|
|
|
|
||||
International Pass-Through Revenue |
|
— |
|
|
|
104 |
|
|
|
123 |
|
|
|
137 |
|
|
|
55 |
|
|
|
419 |
|
|
|
— |
|
|
|
419 |
|
|
|
|
|
||||
Foreign Currency Exchange Impact(6) |
|
(0 |
) |
|
|
4 |
|
|
|
(7 |
) |
|
|
(29 |
) |
|
|
(8 |
) |
|
|
(40 |
) |
|
|
— |
|
|
|
(40 |
) |
|
|
|
|
||||
Total Property Revenue (Current Period) |
$ |
1,279 |
|
|
$ |
427 |
|
|
$ |
231 |
|
|
$ |
336 |
|
|
$ |
174 |
|
|
$ |
1,169 |
|
|
$ |
198 |
|
|
$ |
2,645 |
|
|
|
|
|
||||
| _______________ | ||
(1) |
Total International reflects the Company’s international operations excluding |
|
(2) |
For additional details related to the Data Centers segment, please refer to the supplemental disclosure package available on the Company’s website. |
|
(3) |
Excludes stock-based compensation expense. |
|
(4) |
All components of revenue, except those labeled current period, have been translated at prior-period foreign currency exchange rates. |
|
(5) |
Reflects foreign currency exchange impact on all components of Total Tenant Billings. |
|
(6) |
Reflects foreign currency exchange impact on components of revenue, other than Total Tenant Billings. |
|
UNAUDITED CONSOLIDATED RESULTS FROM OPERATIONS, BY SEGMENT (CONTINUED) |
|||||||||||||||||||||||||||||||||||||||
($ in millions, totals may not add due to rounding.) |
|||||||||||||||||||||||||||||||||||||||
|
Twelve Months Ended December 31, 2023 |
||||||||||||||||||||||||||||||||||||||
|
Property |
|
Services |
|
Total |
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
Total International(1) |
|
Data Centers(2) |
|
Total Property |
||||||||||||||||||||||||
Segment revenues |
$ |
5,216 |
|
|
$ |
1,798 |
|
|
$ |
1,151 |
|
|
$ |
1,226 |
|
|
$ |
776 |
|
|
$ |
4,950 |
|
|
$ |
835 |
|
|
$ |
11,001 |
|
|
$ |
143 |
|
|
$ |
11,144 |
|
Segment operating expenses |
|
850 |
|
|
|
566 |
|
|
|
704 |
|
|
|
433 |
|
|
|
300 |
|
|
|
2,003 |
|
|
|
348 |
|
|
|
3,201 |
|
|
|
60 |
|
|
|
3,261 |
|
Segment Gross Margin |
$ |
4,366 |
|
|
$ |
1,232 |
|
|
$ |
447 |
|
|
$ |
792 |
|
|
$ |
476 |
|
|
$ |
2,947 |
|
|
$ |
487 |
|
|
$ |
7,801 |
|
|
$ |
83 |
|
|
$ |
7,884 |
|
Segment SG&A(3) |
|
165 |
|
|
|
108 |
|
|
|
42 |
|
|
|
79 |
|
|
|
66 |
|
|
|
295 |
|
|
|
72 |
|
|
|
532 |
|
|
|
23 |
|
|
|
555 |
|
Segment Operating Profit |
$ |
4,201 |
|
|
$ |
1,124 |
|
|
$ |
405 |
|
|
$ |
713 |
|
|
$ |
411 |
|
|
$ |
2,652 |
|
|
$ |
415 |
|
|
$ |
7,268 |
|
|
$ |
60 |
|
|
$ |
7,328 |
|
Segment Operating Profit Margin |
|
81 |
% |
|
|
63 |
% |
|
|
35 |
% |
|
|
58 |
% |
|
|
53 |
% |
|
|
54 |
% |
|
|
50 |
% |
|
|
66 |
% |
|
|
42 |
% |
|
|
66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Growth Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Revenue Growth |
|
4.2 |
% |
|
|
6.3 |
% |
|
|
6.9 |
% |
|
|
2.8 |
% |
|
|
5.4 |
% |
|
|
5.4 |
% |
|
|
8.9 |
% |
|
|
5.1 |
% |
|
|
(40.7 |
)% |
|
|
4.0 |
% |
Total Tenant Billings Growth |
|
5.3 |
% |
|
|
5.4 |
% |
|
|
8.2 |
% |
|
|
18.5 |
% |
|
|
10.1 |
% |
|
|
10.2 |
% |
|
|
N/A |
|
|
|
7.2 |
% |
|
|
|
|
||||
Organic Tenant Billings Growth |
|
5.3 |
% |
|
|
5.2 |
% |
|
|
5.4 |
% |
|
|
12.8 |
% |
|
|
8.3 |
% |
|
|
7.7 |
% |
|
|
N/A |
|
|
|
6.3 |
% |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Revenue Components(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Prior-Year Tenant Billings |
$ |
4,416 |
|
|
$ |
1,068 |
|
|
$ |
626 |
|
|
$ |
764 |
|
|
$ |
465 |
|
|
$ |
2,923 |
|
|
$ |
— |
|
|
$ |
7,339 |
|
|
|
|
|
||||
Colocations/Amendments |
|
230 |
|
|
|
35 |
|
|
|
41 |
|
|
|
58 |
|
|
|
14 |
|
|
|
148 |
|
|
|
— |
|
|
|
378 |
|
|
|
|
|
||||
Escalations |
|
132 |
|
|
|
82 |
|
|
|
13 |
|
|
|
79 |
|
|
|
29 |
|
|
|
202 |
|
|
|
— |
|
|
|
334 |
|
|
|
|
|
||||
Cancellations |
|
(119 |
) |
|
|
(61 |
) |
|
|
(22 |
) |
|
|
(44 |
) |
|
|
(3 |
) |
|
|
(130 |
) |
|
|
— |
|
|
|
(250 |
) |
|
|
|
|
||||
Other |
|
(8 |
) |
|
|
0 |
|
|
|
2 |
|
|
|
4 |
|
|
|
(1 |
) |
|
|
5 |
|
|
|
— |
|
|
|
(3 |
) |
|
|
|
|
||||
Organic Tenant Billings |
$ |
4,650 |
|
|
$ |
1,124 |
|
|
$ |
660 |
|
|
$ |
861 |
|
|
$ |
504 |
|
|
$ |
3,148 |
|
|
$ |
— |
|
|
$ |
7,799 |
|
|
|
|
|
||||
New Site Tenant Billings |
|
(1 |
) |
|
|
2 |
|
|
|
17 |
|
|
|
44 |
|
|
|
9 |
|
|
|
72 |
|
|
|
— |
|
|
|
70 |
|
|
|
|
|
||||
Total Tenant Billings |
$ |
4,649 |
|
|
$ |
1,126 |
|
|
$ |
677 |
|
|
$ |
905 |
|
|
$ |
512 |
|
|
$ |
3,220 |
|
|
$ |
— |
|
|
$ |
7,869 |
|
|
|
|
|
||||
Foreign Currency Exchange Impact(5) |
|
(0 |
) |
|
|
68 |
|
|
|
(34 |
) |
|
|
(120 |
) |
|
|
13 |
|
|
|
(73 |
) |
|
|
— |
|
|
|
(73 |
) |
|
|
|
|
||||
Total Tenant Billings (Current Period) |
$ |
4,649 |
|
|
$ |
1,194 |
|
|
$ |
643 |
|
|
$ |
785 |
|
|
$ |
525 |
|
|
$ |
3,147 |
|
|
$ |
— |
|
|
$ |
7,796 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Straight-Line Revenue |
|
394 |
|
|
|
(7 |
) |
|
|
10 |
|
|
|
66 |
|
|
|
3 |
|
|
|
71 |
|
|
|
19 |
|
|
|
484 |
|
|
|
|
|
||||
Pre-paid Amortization Revenue |
|
89 |
|
|
|
2 |
|
|
|
— |
|
|
|
1 |
|
|
|
19 |
|
|
|
22 |
|
|
|
— |
|
|
|
110 |
|
|
|
|
|
||||
Other Revenue |
|
86 |
|
|
|
130 |
|
|
|
(23 |
) |
|
|
(33 |
) |
|
|
26 |
|
|
|
100 |
|
|
|
815 |
|
|
|
1,002 |
|
|
|
|
|
||||
International Pass-Through Revenue |
|
— |
|
|
|
449 |
|
|
|
544 |
|
|
|
523 |
|
|
|
196 |
|
|
|
1,712 |
|
|
|
— |
|
|
|
1,712 |
|
|
|
|
|
||||
Foreign Currency Exchange Impact(6) |
|
(0 |
) |
|
|
30 |
|
|
|
(23 |
) |
|
|
(116 |
) |
|
|
6 |
|
|
|
(103 |
) |
|
|
— |
|
|
|
(103 |
) |
|
|
|
|
||||
Total Property Revenue (Current Period) |
$ |
5,216 |
|
|
$ |
1,798 |
|
|
$ |
1,151 |
|
|
$ |
1,226 |
|
|
$ |
776 |
|
|
$ |
4,950 |
|
|
$ |
835 |
|
|
$ |
11,001 |
|
|
|
|
|
||||
| _______________ | ||
(1) |
Total International reflects the Company’s international operations excluding |
|
(2) |
For additional details related to the Data Centers segment, please refer to the supplemental disclosure package available on the Company’s website. |
|
(3) |
Excludes stock-based compensation expense. |
|
(4) |
All components of revenue, except those labeled current period, have been translated at prior-period foreign currency exchange rates. |
|
(5) |
Reflects foreign currency exchange impact on all components of Total Tenant Billings. |
|
(6) |
Reflects foreign currency exchange impact on components of revenue, other than Total Tenant Billings. |
|
UNAUDITED CONSOLIDATED RESULTS FROM OPERATIONS, BY SEGMENT (CONTINUED) |
|||||||||||||||||||||||||||||||||||||||
($ in millions, totals may not add due to rounding.) |
|||||||||||||||||||||||||||||||||||||||
|
Twelve Months Ended December 31, 2022 |
||||||||||||||||||||||||||||||||||||||
|
Property |
|
Services |
|
Total |
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
Total International(1) |
|
Data Centers(2) |
|
Total Property |
||||||||||||||||||||||||
Segment revenues |
$ |
5,006 |
|
|
$ |
1,692 |
|
|
$ |
1,077 |
|
|
$ |
1,193 |
|
|
$ |
736 |
|
|
$ |
4,697 |
|
|
$ |
767 |
|
|
$ |
10,470 |
|
|
$ |
241 |
|
|
$ |
10,711 |
|
Segment operating expenses |
|
845 |
|
|
|
527 |
|
|
|
698 |
|
|
|
445 |
|
|
|
320 |
|
|
|
1,989 |
|
|
|
322 |
|
|
|
3,156 |
|
|
|
107 |
|
|
|
3,264 |
|
Segment Gross Margin |
$ |
4,161 |
|
|
$ |
1,165 |
|
|
$ |
379 |
|
|
$ |
747 |
|
|
$ |
416 |
|
|
$ |
2,708 |
|
|
$ |
445 |
|
|
$ |
7,314 |
|
|
$ |
134 |
|
|
$ |
7,447 |
|
Segment SG&A(3) |
|
183 |
|
|
|
108 |
|
|
|
69 |
|
|
|
80 |
|
|
|
52 |
|
|
|
309 |
|
|
|
64 |
|
|
|
556 |
|
|
|
22 |
|
|
|
579 |
|
Segment Operating Profit |
$ |
3,978 |
|
|
$ |
1,058 |
|
|
$ |
310 |
|
|
$ |
667 |
|
|
$ |
364 |
|
|
$ |
2,399 |
|
|
$ |
381 |
|
|
$ |
6,757 |
|
|
$ |
111 |
|
|
$ |
6,869 |
|
Segment Operating Profit Margin |
|
79 |
% |
|
|
63 |
% |
|
|
29 |
% |
|
|
56 |
% |
|
|
49 |
% |
|
|
51 |
% |
|
|
50 |
% |
|
|
65 |
% |
|
|
46 |
% |
|
|
64 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Growth Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Revenue Growth |
|
1.7 |
% |
|
|
15.5 |
% |
|
|
(10.2 |
)% |
|
|
18.6 |
% |
|
|
48.3 |
% |
|
|
12.7 |
% |
|
|
3,204.3 |
% |
|
|
14.9 |
% |
|
|
(2.5 |
)% |
|
|
14.5 |
% |
Total Tenant Billings Growth |
|
1.1 |
% |
|
|
11.2 |
% |
|
|
6.3 |
% |
|
|
13.7 |
% |
|
|
56.2 |
% |
|
|
16.4 |
% |
|
|
N/A |
|
|
|
6.9 |
% |
|
|
|
|
||||
Organic Tenant Billings Growth |
|
1.1 |
% |
|
|
7.9 |
% |
|
|
2.6 |
% |
|
|
7.7 |
% |
|
|
8.4 |
% |
|
|
6.6 |
% |
|
|
N/A |
|
|
|
3.2 |
% |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Revenue Components(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Prior-Year Tenant Billings |
$ |
4,369 |
|
|
$ |
959 |
|
|
$ |
625 |
|
|
$ |
735 |
|
|
$ |
331 |
|
|
$ |
2,650 |
|
|
$ |
— |
|
|
$ |
7,019 |
|
|
|
|
|
||||
Colocations/Amendments |
|
149 |
|
|
|
35 |
|
|
|
36 |
|
|
|
55 |
|
|
|
13 |
|
|
|
139 |
|
|
|
— |
|
|
|
288 |
|
|
|
|
|
||||
Escalations |
|
132 |
|
|
|
87 |
|
|
|
12 |
|
|
|
40 |
|
|
|
20 |
|
|
|
158 |
|
|
|
— |
|
|
|
290 |
|
|
|
|
|
||||
Cancellations |
|
(224 |
) |
|
|
(48 |
) |
|
|
(30 |
) |
|
|
(39 |
) |
|
|
(5 |
) |
|
|
(122 |
) |
|
|
— |
|
|
|
(347 |
) |
|
|
|
|
||||
Other |
|
(6 |
) |
|
|
2 |
|
|
|
(1 |
) |
|
|
0 |
|
|
|
0 |
|
|
|
2 |
|
|
|
— |
|
|
|
(5 |
) |
|
|
|
|
||||
Organic Tenant Billings |
$ |
4,419 |
|
|
$ |
1,035 |
|
|
$ |
641 |
|
|
$ |
792 |
|
|
$ |
358 |
|
|
$ |
2,826 |
|
|
$ |
— |
|
|
$ |
7,245 |
|
|
|
|
|
||||
New Site Tenant Billings |
|
(2 |
) |
|
|
32 |
|
|
|
23 |
|
|
|
44 |
|
|
|
158 |
|
|
|
257 |
|
|
|
— |
|
|
|
255 |
|
|
|
|
|
||||
Total Tenant Billings |
$ |
4,417 |
|
|
$ |
1,066 |
|
|
$ |
665 |
|
|
$ |
836 |
|
|
$ |
516 |
|
|
$ |
3,083 |
|
|
$ |
— |
|
|
$ |
7,500 |
|
|
|
|
|
||||
Foreign Currency Exchange Impact(5) |
|
(0 |
) |
|
|
1 |
|
|
|
(39 |
) |
|
|
(72 |
) |
|
|
(51 |
) |
|
|
(161 |
) |
|
|
— |
|
|
|
(161 |
) |
|
|
|
|
||||
Total Tenant Billings (Current Period) |
$ |
4,416 |
|
|
$ |
1,068 |
|
|
$ |
626 |
|
|
$ |
764 |
|
|
$ |
465 |
|
|
$ |
2,923 |
|
|
$ |
— |
|
|
$ |
7,339 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Straight-Line Revenue |
|
461 |
|
|
|
(3 |
) |
|
|
(8 |
) |
|
|
28 |
|
|
|
4 |
|
|
|
21 |
|
|
|
20 |
|
|
|
502 |
|
|
|
|
|
||||
Pre-paid Amortization Revenue |
|
100 |
|
|
|
3 |
|
|
|
— |
|
|
|
1 |
|
|
|
12 |
|
|
|
16 |
|
|
|
— |
|
|
|
116 |
|
|
|
|
|
||||
Other Revenue |
|
30 |
|
|
|
196 |
|
|
|
(46 |
) |
|
|
15 |
|
|
|
20 |
|
|
|
185 |
|
|
|
746 |
|
|
|
961 |
|
|
|
|
|
||||
International Pass-Through Revenue |
|
— |
|
|
|
425 |
|
|
|
528 |
|
|
|
438 |
|
|
|
252 |
|
|
|
1,643 |
|
|
|
— |
|
|
|
1,643 |
|
|
|
|
|
||||
Foreign Currency Exchange Impact(6) |
|
(0 |
) |
|
|
3 |
|
|
|
(23 |
) |
|
|
(53 |
) |
|
|
(17 |
) |
|
|
(91 |
) |
|
|
— |
|
|
|
(91 |
) |
|
|
|
|
||||
Total Property Revenue (Current Period) |
$ |
5,006 |
|
|
$ |
1,692 |
|
|
$ |
1,077 |
|
|
$ |
1,193 |
|
|
$ |
736 |
|
|
$ |
4,697 |
|
|
$ |
767 |
|
|
$ |
10,470 |
|
|
|
|
|
||||
| _______________ | ||
(1) |
Total International reflects the Company’s international operations excluding |
|
(2) |
For additional details related to the Data Centers segment, please refer to the supplemental disclosure package available on the Company’s website. |
|
(3) |
Excludes stock-based compensation expense. |
|
(4) |
All components of revenue, except those labeled current period, have been translated at prior-period foreign currency exchange rates. |
|
(5) |
Reflects foreign currency exchange impact on all components of Total Tenant Billings. |
|
(6) |
Reflects foreign currency exchange impact on components of revenue, other than Total Tenant Billings. |
|
UNAUDITED SELECTED CONSOLIDATED FINANCIAL INFORMATION |
|||||||||||||||
($ in millions, except share and per share data, totals may not add due to rounding.) |
|||||||||||||||
The reconciliation of Adjusted EBITDA to net income and the calculation of Adjusted EBITDA Margin are as follows: |
|||||||||||||||
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income (loss) |
$ |
13.3 |
|
|
$ |
(716.6 |
) |
|
$ |
1,367.1 |
|
|
$ |
1,696.7 |
|
Income tax provision (benefit) |
|
21.9 |
|
|
|
(42.0 |
) |
|
|
154.2 |
|
|
|
24.0 |
|
Other expense (income) |
|
367.3 |
|
|
|
675.7 |
|
|
|
248.5 |
|
|
|
(433.7 |
) |
Loss on retirement of long-term obligations |
|
— |
|
|
|
— |
|
|
|
0.3 |
|
|
|
0.4 |
|
Interest expense |
|
350.7 |
|
|
|
303.5 |
|
|
|
1,398.2 |
|
|
|
1,136.5 |
|
Interest income |
|
(36.3 |
) |
|
|
(28.6 |
) |
|
|
(143.4 |
) |
|
|
(71.6 |
) |
Other operating expenses |
|
161.2 |
|
|
|
669.0 |
|
|
|
377.7 |
|
|
|
767.6 |
|
Goodwill impairment |
|
80.0 |
|
|
|
— |
|
|
|
402.0 |
|
|
|
— |
|
Depreciation, amortization and accretion |
|
764.9 |
|
|
|
814.7 |
|
|
|
3,086.5 |
|
|
|
3,355.1 |
|
Stock-based compensation expense |
|
37.7 |
|
|
|
31.2 |
|
|
|
195.7 |
|
|
|
169.3 |
|
Adjusted EBITDA |
$ |
1,760.7 |
|
|
$ |
1,706.9 |
|
|
$ |
7,086.8 |
|
|
$ |
6,644.3 |
|
Total revenue |
$ |
2,786.7 |
|
|
$ |
2,705.0 |
|
|
|
11,144.2 |
|
|
|
10,711.1 |
|
Adjusted EBITDA Margin |
|
63 |
% |
|
|
63 |
% |
|
|
64 |
% |
|
|
62 |
% |
The reconciliation of Nareit FFO attributable to American Tower Corporation common stockholders to net income and the calculation of Consolidated AFFO, AFFO attributable to American Tower Corporation common stockholders and AFFO attributable to American Tower Corporation common stockholders per Share are as follows: |
|||||||||||||||
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income |
$ |
13.3 |
|
|
$ |
(716.6 |
) |
|
$ |
1,367.1 |
|
|
$ |
1,696.7 |
|
Real estate related depreciation, amortization and accretion |
|
703.1 |
|
|
|
752.8 |
|
|
|
2,834.1 |
|
|
|
3,108.9 |
|
Losses from sale or disposal of real estate and real estate related impairment charges(1) |
|
219.2 |
|
|
|
651.4 |
|
|
|
732.8 |
|
|
|
684.3 |
|
Dividends to noncontrolling interests(2) |
|
(103.3 |
) |
|
|
(13.5 |
) |
|
|
(137.8 |
) |
|
|
(22.2 |
) |
Adjustments for unconsolidated affiliates and noncontrolling interests |
|
25.6 |
|
|
|
(61.1 |
) |
|
|
(186.2 |
) |
|
|
(188.2 |
) |
Nareit FFO attributable to AMT common stockholders |
$ |
857.9 |
|
|
$ |
613.0 |
|
|
$ |
4,610.0 |
|
|
$ |
5,279.5 |
|
Straight-line revenue |
|
(130.6 |
) |
|
|
(149.4 |
) |
|
|
(472.0 |
) |
|
|
(499.8 |
) |
Straight-line expense |
|
7.2 |
|
|
|
8.9 |
|
|
|
30.2 |
|
|
|
39.6 |
|
Stock-based compensation expense |
|
37.7 |
|
|
|
31.2 |
|
|
|
195.7 |
|
|
|
169.3 |
|
Deferred portion of income tax and other income tax adjustments |
|
(87.2 |
) |
|
|
(119.8 |
) |
|
|
(152.3 |
) |
|
|
(298.3 |
) |
GTP one-time cash tax settlement |
|
— |
|
|
|
1.7 |
|
|
|
— |
|
|
|
48.3 |
|
Non-real estate related depreciation, amortization and accretion |
|
61.8 |
|
|
|
61.9 |
|
|
|
252.4 |
|
|
|
246.2 |
|
Amortization of deferred financing costs, debt discounts and premiums and long-term deferred interest charges |
|
12.9 |
|
|
|
11.8 |
|
|
|
49.8 |
|
|
|
47.5 |
|
Other expense (income)(3) |
|
367.3 |
|
|
|
675.7 |
|
|
|
248.5 |
|
|
|
(433.7 |
) |
Loss on retirement of long-term obligations |
|
— |
|
|
|
— |
|
|
|
0.3 |
|
|
|
0.4 |
|
Other operating expense(4) |
|
22.0 |
|
|
|
17.6 |
|
|
|
46.9 |
|
|
|
83.3 |
|
Capital improvement capital expenditures |
|
(79.1 |
) |
|
|
(64.7 |
) |
|
|
(201.2 |
) |
|
|
(176.2 |
) |
Corporate capital expenditures |
|
(5.8 |
) |
|
|
(2.1 |
) |
|
|
(16.2 |
) |
|
|
(9.4 |
) |
Adjustments for unconsolidated affiliates and noncontrolling interests |
|
(25.6 |
) |
|
|
61.1 |
|
|
|
186.2 |
|
|
|
188.2 |
|
Consolidated AFFO |
$ |
1,038.5 |
|
|
$ |
1,146.9 |
|
|
$ |
4,778.3 |
|
|
$ |
4,684.9 |
|
Adjustments for unconsolidated affiliates and noncontrolling interests(5) |
|
31.5 |
|
|
|
(54.1 |
) |
|
|
(166.8 |
) |
|
|
(168.2 |
) |
AFFO attributable to AMT common stockholders |
$ |
1,070.0 |
|
|
$ |
1,092.8 |
|
|
$ |
4,611.5 |
|
|
$ |
4,516.7 |
|
Divided by weighted average diluted shares outstanding (in thousands) |
|
467,453 |
|
|
|
466,696 |
|
|
|
467,162 |
|
|
|
462,750 |
|
AFFO attributable to AMT common stockholders per Share |
$ |
2.29 |
|
|
$ |
2.34 |
|
|
$ |
9.87 |
|
|
$ |
9.76 |
|
| _______________ | ||
(1) |
Three and twelve months ended December 31, 2023 include impairment charges of |
|
(2) |
Three months and twelve months ended December 31, 2023 primarily includes distributions related to the outstanding mandatorily convertible preferred equity and to the outstanding common equity in connection with the Company’s agreements with certain investment vehicles affiliated with Stonepeak Partners LP. |
|
(3) |
Three and twelve months ended December 31, 2023 include (losses) gains on foreign currency exchange rate fluctuations of |
|
(4) |
Primarily includes acquisition-related costs, integration costs and disposition costs. |
|
(5) |
Includes adjustments for the impact on both Nareit FFO attributable to American Tower Corporation common stockholders as well as the other line items included in the calculation of Consolidated AFFO. |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240227784442/en/
Adam Smith
Senior Vice President, Investor Relations
Telephone: (617) 375-7500
Source: American Tower Corporation
FAQ
What was the percentage increase in total revenue for Q4 2023?
How much did net income increase by for Q4 2023?
What was the change in AFFO attributable to AMT common stockholders for Q4 2023?
What was the year-over-year per share growth in distributions for FY 2023?
What was the Net Leverage Ratio as of December 31, 2023?
