8-KRegulation FD

AMERICAN TOWER CORP /MA/ 8-K Report, Regulation FD Disclosure (Jul 26, 2019)

Filed July 26, 2019For Securities:AMT

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.

Frequently Asked Questions

The primary purpose of this 8-K filing is to provide investors with information regarding American Tower's revenue exposure to T-Mobile US and Sprint in light of the DOJ's approval of their merger.

For the quarter ended March 31, 2019, T-Mobile US accounted for approximately 10% of American Tower's consolidated property revenues, and Sprint accounted for approximately 8%.

On sites where both companies had separate leases, the average remaining non-cancellable current term of the leases closest to expiration with T-Mobile US and Sprint is between two and three years.

The merger could potentially lead to lease consolidations or renegotiations as the combined entity streamlines operations. The filing provides transparency on AMT's current revenue dependence on these two carriers and their near-term lease maturities, allowing investors to assess potential impacts.