That being said, that does not mean that there are no more companies to invest in for the coming year. Even a great REIT that has grown consistently all these years can falter when times are bad. Like many other companies, AMT does look to be in a tight spot for FY 2023. Even though it foresees continuous cash-adjusted EBITDA contributions, a higher net interest expense together with a preferred mandatory coupon payment will more or less net off the cash from operations.Ĭoupled with the unfavorable foreign exchange will see a flattish AFFO per unit for AMT, before an allocation of impairment by VIL in FY 2023. Since AMT is a dividend play, scrutinizing its AFFO makes more sense than focusing on its GAAP losses.įor its 2023 outlook, AMT’s AFFO looks muted.
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2023 AFFO growth looks muted Source: American Tower Fourth Quarter & Full Year 2022 Earnings Conference Call So long as AMT continues to grow, as a REIT, it needs to annually distribute at least 90% of its taxable income.
9 years ago, AMT’s distribution per unit was only just USD 1.10, but as of its latest FY 2022, the total DPU is USD 5.86. Then again, for businesses like REITs, net profitability might not paint a true picture of the cash flow generation capability.ĪMT has a solid track record of raising its distributions per unit for the last 9 years. Secondly, other expenses of USD 675.7 million, out of which approximately USD 662 million is from foreign currency losses. Firstly, an impairment loss of USD 642 million, out of which USD 441.6 million is coming from tenant-related intangible assets for Vodafone Idea Limited (VIL) (NSE: IDEA). These losses are mainly coming from 2 contributions. AMT encountered a net loss in Q4’22 due to unfavorable foreign exchange & impairments Source: AMT Press Release Q4 2022Įven though AMT posted growth in EBITDA, it experiences a net loss of USD 683.8 million for Q4’22. Pertaining to its US & Canadian property interests, the remaining average term is approximately 30 years, with 90% of these ground leases which are held by landlords who own just a single land parcel.įor both its global tenant and ground lease renewal schedule, 69% of the leases expire beyond 2027 and beyond. US and Canada contribute 48% of AMT’s Q4’22 property revenue.
This includes players like T-Mobile Us Inc (NASDAQ: TMUS), Verizon Communications Inc. US & Canada constitutes 48% of its property revenue, and 69% of leases expiring beyond 2027 Source: American Tower Supplemental Financial and Operating Data December 31, 2022Īs a US company, AMT’s major clients are mostly telecommunication companies operating in the US. Per share basis, this translates to a growth of 3.5%. Revenue grew from USD 9.11 billion to USD 10.47 billion, on top of also a tenant billings growth of 6.9%.Īdjusted EBITDA also trend along, posting a growth of 11.1% YoY, from USD 5.98 billion to USD 6.644 billion.Īnother key metric, which is the adjusted fund from operations (AFFO), posted a 5.6% growth from USD 4.28 billion to USD 4.52 billion.
Strong and resilient FY 2022 growth metrics Source: American Tower Fourth Quarter & Full Year 2022 Earnings Conference CallįY 2022 is a good year for AMT, as its property revenue experiences a growth of 14.9% even in the advent of volatile foreign exchange effects. Is this REIT finally broken? Here are some important points to take note of before investing. However, in its latest quarterly report, it slumped into a loss. Source: American Tower Supplemental Financial and Operating Data December 31, 2022ĪMT is a REIT and has had a great track record. The company’s towers, rooftop installations, and other structures support a broad range of wireless technologies, including 5G, LTE, and Wi-Fi. The company traces its founding back to 1995 and has grown to become one of the largest independent owners of communication towers in the world.ĪMT provides vital infrastructure to support wireless communication and data transmission, enabling people and businesses to stay connected and access essential services such as mobile voice and data, broadband, and television. American Tower Corporation (NYSE: AMT) is a leading global owner, operator, and developer of wireless and broadcast communication infrastructure, with headquarters in Boston, Massachusetts.
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