AMERICAN TOWER CORP /MA/ Q4 FY2024 earnings call

• Steve Vondran discussed leading American Tower through growth, strategic priorities like balance sheet stream, efficiency, etc. - Rod Smith highlighted 2024 performance in-line with prior outlook, demand for assets remained solid, cost management bolstered cash adjusted EBITDA margin expansion, and strengthening of investment grade balance sheet. - Focus on evolving value proposition to customers and shareholders, actively managing capital to prioritize high-risk-adjusted return opportunities, and globalizing organization for economies of scale. - Sold India business, land interests in Australia and New Zealand, and signed agreement to divest South Africa fiber business. - CoreSite team delivered strong quarter results with elevated demand and pricing durability. - Bud Noel appointed COO to drive efficiency and margin expansion, and Rich Rossi led U.S. and Canada business.

Developed markets (U.S., Canadian, European operations, and CoreSite) are expected to contribute about 75% to unlevered AFFO in 2025. Property revenue growth for the year was nearly 1% and 3% on an FX-neutral basis, supported by organic tenant billings growth over 5%, construction of nearly 2,400 sites, and U.S. data center growth over 10%, partially offset by a 2% negative headwind from reduced non-cash straight-line revenue. Adjusted EBITDA growth was approximately 2% and over 4% on an FX-neutral basis, negatively impacted by 3.5% from reduced non-cash straight line. Attributable AFFO per share was $10.54, representing nearly 7% growth year-over-year and over 9% on an FX-neutral basis. CoreSite business had strong results with elevated demand and pricing durability for interconnection-centric, retail-oriented colocation.

• 2025 outlook reflects total company organic tenant billings growth of approximately 5%, around 5.5% absent Sprint churn. - U.S. and Canada organic tenant billings growth expected to be ≥4.3%, ≥5.3% excluding Sprint churn, modest reduction from 2024. - Africa and APAC growth ~12%, Europe ~5%, Latin America ~2%. - Property revenue growth over 0.5% or ~3% on FX-neutral basis. - Cash property revenue growth converting to adjusted EBITDA ~1% and over 3% on FX-neutral basis. - 2025 attributable AFFO per share $10.40, growth over 4% relative to 2024. - Plan to resume dividend growth in mid-single-digit range, $1.7 billion capital deployment, ~80% discretionary spend on developed market platforms, reduce emerging market discretionary CapEx.

• Macroeconomic uncertainty including interest rate and FX volatility. - Carrier consolidation which could impact business. - Uncertainty around timing and impact of AI-driven demand on network capacity needs. - Risks associated with forward-looking statements and factors that could cause actual results to differ from expectations as outlined in earnings press release, Form 10-K, and SEC filings.

Q: Additional details on domestic leasing environment, mix of COLO vs amendments, and multiyear growth opportunity.

A: Steve Vondran and Rod Smith discussed mix of amendments and colocations, sequential step-down in contracted use fees, OTPG metric sensitivity to timing, and multiyear growth guide.

Q: Thoughts on data center integration with towers, AI impact on towers, and U.S. land purchases.

A: Steve Vondran talked about data center value maximization and AI impact on networks, Rod Smith discussed U.S. land purchases for securing revenue and returns.

Q: Follow-ups on domestic activity, capital allocation.

A: Steve Vondran and Rod Smith provided details on carrier tower upgrades, new business cadence, and capital allocation including buybacks.

Q: Data center yields, AI impact on towers, M&A pipeline.

A: Steve Vondran mentioned data center yields at mid-teens stabilized, AI impact on networks, and M&A pipeline with high standards.

Q: Cost efficiencies, CoreSite demand patterns.

A: Steve Vondran and Rod Smith discussed cost efficiency focus, Bud Noel's role, and CoreSite demand broadening.

Q: U.S. carrier activity relative to fixed wireless, Europe organic growth and M&A.

A: Steve Vondran commented on U.S. carrier activity and Europe organic growth and M&A considerations.

Q: Services business growth and Canadian business color.

A: Steve Vondran discussed services business growth and Canadian business evaluation based on terms and conditions.