Summary
American Tower Corporation (AMT) has announced a new master lease agreement (MLA) with T-Mobile U.S. Inc., signed subsequent to their July 30, 2020 outlook. This agreement is expected to generate approximately $95 million in additional straight-line revenue for the full year 2020. Consequently, AMT has revised its full-year 2020 financial outlook. The company now anticipates total property revenue to be between $7,750 million and $7,880 million, with net income projected at $1,845 million to $1,925 million and Adjusted EBITDA between $4,985 million and $5,065 million. The MLA is significant as it secures nearly 15 years of non-cancellable lease terms on average, providing approximately $17 billion in expected incremental, contractually committed revenue over the life of the agreement. This long-term visibility and revenue enhancement are positive indicators for the company's future financial performance and stability. Other key performance indicators, such as Organic Tenant Billings Growth and Consolidated AFFO, remain unchanged from the previous outlook.
Key Highlights
- 1New Master Lease Agreement (MLA) signed with T-Mobile U.S. Inc.
- 2Expectation of approximately $95 million in additional straight-line revenue for full-year 2020.
- 3Revised full-year 2020 outlook: Total property revenue revised to $7,750 - $7,880 million.
- 4Revised full-year 2020 outlook: Net income revised to $1,845 - $1,925 million.
- 5Revised full-year 2020 outlook: Adjusted EBITDA revised to $4,985 - $5,065 million.
- 6MLA includes an average non-cancellable term of nearly 15 years.
- 7Secures approximately $17 billion in expected incremental contractually committed revenue over the contract term.