Summary
American Tower Corporation (AMT) filed an 8-K on July 26, 2019, to address the U.S. Department of Justice's approval of the T-Mobile US and Sprint merger. This regulatory development is significant for AMT as both T-Mobile US and Sprint were substantial tenants on its tower infrastructure. The filing provides clarity on the revenue exposure of AMT to these two carriers. For the quarter ended March 31, 2019, T-Mobile US and Sprint individually represented approximately 10% and 8%, respectively, of AMT's consolidated property revenues. On sites where both had separate leases, their combined contribution was about 8% of property revenue, including legacy leases. Importantly, the average remaining non-cancellable lease term for the leases closest to expiration with these two carriers is between two and three years, indicating a near-term consideration for potential lease consolidations or renegotiations.
Key Highlights
- 1Disclosure regarding the DOJ's approval of the T-Mobile US and Sprint merger.
- 2T-Mobile US represented approximately 10% of AMT's consolidated property revenues for Q1 2019.
- 3Sprint represented approximately 8% of AMT's consolidated property revenues for Q1 2019.
- 4On shared sites, revenue from T-Mobile US and Sprint (including legacy) was around 4% each of consolidated property revenue.
- 5Average remaining non-cancellable lease term for the closest expiring leases with T-Mobile US and Sprint is 2-3 years.