Q4 2024 American Tower Corp Earnings Call Transcript
Key Points
- American Tower Corp (AMT) reported strong demand for its assets, with significant activity in the US and European markets driven by mid-band spectrum deployments and 5G rollouts.
- The company achieved a record year of new leasing in its CoreSite data center business, highlighting robust demand and pricing durability.
- AMT successfully reduced cash SG&A expenses by approximately $35 million in 2024, demonstrating effective cost management and efficiency initiatives.
- The company is on track to maintain its leverage target of five times, supported by margin expansion and systematic reduction of recurring SG&A costs.
- AMT's strategic focus on developed markets is expected to contribute about 75% towards its unlevered AFFO in 2025, enhancing earnings quality and growth profile.
- AMT faces headwinds from carrier consolidation and foreign exchange (FX) and interest rate volatility, which could impact future results.
- The company's organic tenant billings growth in the US and Canada is expected to step down modestly in 2025 compared to 2024 due to the cadence of contracted use fees.
- AMT's emerging market exposure remains a concern, with discretionary CapEx in these regions being reduced by over 60% from 2021 levels.
- The company anticipates elevated churn in Latin America due to carrier consolidation, which is expected to persist through 2027.
- AMT's 2025 outlook includes a negative impact from FX devaluation and interest costs associated with refinancing needs, affecting growth projections.
Ladies and gentlemen, thank you for standing by. Welcome to the American Tower fourth quarter and full year 2024 earnings conference call. (Operator Instructions) I would now like to turn the call over to your host, Adam Smith, Senior Vice President of Investor Relations, and FP&A. Please go ahead, sir.
Good morning, and thank you for joining American Tower's fourth quarter and full year 2024 earnings conference call. We have posted a presentation, which we will refer to throughout our prepared remarks, under the Investor Relations tab of our website, www.americantower.com. I'm joined on the call today by Steve Vondran, our President and CEO, and Rod Smith, our Executive Vice President, CFO and Treasurer. Following our prepared remarks, we will open up the call for your questions.
Before we begin, I'll remind you that our comments will contain forward-looking statements that involve a number of risks and
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