Summary
American Tower Corporation (AMT) announced a new master lease agreement (MLA) with AT&T Inc. (AT&T) on September 3, 2019. This agreement is expected to significantly enhance AMT's financial performance for the full year 2019, primarily through an additional $135 million in straight-line revenue recognition. As a result of this new MLA, AMT has revised its previously issued 2019 financial outlook. The company now anticipates total property revenue to be in the range of $7,340 million to $7,470 million, net income between $1,725 million and $1,795 million, and Adjusted EBITDA between $4,625 million and $4,705 million. Importantly, other key performance indicators, such as Organic Tenant Billings Growth and Consolidated AFFO, remain consistent with the prior outlook, indicating that the positive impact is primarily revenue-driven and concentrated in specific areas of the business. This filing provides an update on a material contract and its impact on the company's financial projections.
Key Highlights
- 1American Tower entered into a new master lease agreement (MLA) with AT&T Inc.
- 2The MLA is expected to generate approximately $135 million in additional straight-line revenue for the full year 2019.
- 3AMT has raised its full-year 2019 revenue outlook to $7,340 - $7,470 million.
- 4Revised 2019 outlook includes higher net income projected between $1,725 - $1,795 million.
- 5Adjusted EBITDA guidance for 2019 is now between $4,625 - $4,705 million.
- 6Outlook for Organic Tenant Billings Growth and Consolidated AFFO remains unchanged.
- 7The company issued a press release on September 3, 2019, to announce this development.