and based on local inflation in international markets. The contracts are usually non-cancellable, and have lease escalators of around 3% in the U.S. Opportunities and RisksĪMT's contracts are generally for 5-10 years with multiple renewal options. ![]() It later sold a stake in this business, and now owns 72% of it, or 64% on a fully converted basis, after issuing equity and convertible preferreds to the buyer Stonepeak. This includes things such as site application, zoning and permitting structural analysis and construction management services.ĪMT also got into the data center space through its December 2021 acquisition of CoreSite Realty, which it bought for $10.4 billion. The company also derives about 2-3% of its revenue from tower-related services. ![]() Rent is based on the property location, the amount of leased vertical square footage on the tower, and the weight of the equipment placed on the tower. AMT also owns generators at some sites to provide back-up power.ĪMT leases the vertical space on the tower and the land underneath to multiple tenants for their communications equipment. AMT owns the tower structure and ground interest, while its tenants own and operate their equipment, such as antennas, antenna arrays, coaxial cables, and bases stations, along with equipment shelters. It also owns distributed antenna system (DAS) networks that help deliver coverage in certain in-building and outdoor wireless environments.Ī tower is vertical structure built on a parcel of land designed to handle the equipment of multiple tenants. Its portfolio primarily consists of towers that it owns or operates through long-term lease agreements. ![]() Company ProfileĪMT is real estate investment trust (REIT) that leases space on communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies, and municipalities, among others. American Tower ( NYSE: AMT) has been an investment darling riding some nice secular trends for a long time, but the stock's valuation is too rich for my blood given the recent headwinds it has been facing.
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