American Tower Corporation (reit) · NYSE:AMT
American Tower Corporation (reit) — Q2 2024 Earnings Presentation
24 slides from American Tower Corporation (reit)'s earnings presentation, Jul 30, 2024
Slide 1: Second Quarter 2024 Earnings Conference Call
Second Quarter 2024 Earnings Conference Call July 30, 2024
Slide 2: Agenda
Agenda Introduction Adam Smith Senior Vice President, Investor Relations & FP&A Opening Remarks Steven Vondran President and Chief Executive Officer Financial Results Rod Smith Executive Vice President, Chief Financial Officer and Treasurer Q&A 2
Slide 3: Forward-Looking Statements
Forward-Looking Statements “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements within the meaning of federal securities laws concerning our goals, beliefs, strategies, future operating results and underlying assump
Slide 4: Consolidated Results Highlights
Consolidated Results Highlights Y/Y Change Y/Y FX-Neutral $ in millions, except per share data 2Q24 2Q23 Change (1) Total property revenue $2,853 $2,729 4.6% 6.9% Total revenue $2,900 $2,772 4.6% 6.9% Net income attributable to AMT common stockholders(2)(3) $900 $476 89.3% N/A (4) Per diluted share
Slide 5: Global Capital Priorities
Global Capital Priorities Steven Vondran President and Chief Executive Officer
Slide 6: Discretionary Capital Priorities
Discretionary Capital(1) Priorities Discretionary Capital Allocation(2) 2021: $1.2B Total 2024E: $1.4B Total Emerging Markets(2): Developed Markets(2): Emerging Markets(3): Developed Markets(2): $0.8B (~66% Total) $0.4B (~34% Total) $0.4B (~30% Total) 6% $1.0B (~70% Total) 13% 14% 18% 29% 11% 18% 35
Slide 7: Financial Results
Financial Results Rod Smith Executive Vice President, Chief Financial Officer and Treasurer
Slide 8: Q2 2024 Property Revenue
Q2 2024 Property Revenue ($ in millions) Property Revenue Organic Tenant Billings Growth(2) $2,853 $2,729 13.2% 4.6% Growth 6.9% FX-Neutral Growth(1) ~6% >6% 5.7% 5.5% 6.1% Tenant Billings Growth 5.3% 5.1% 2.2% 2.1% Q2 2023 Q2 2024 Total U.S. & Intl Africa Europe LatAm APAC Canada Impact of Sprint C
Slide 9: Q2 2024 Adjusted EBITDA and Attributable AFFO
Q2 2024 Adjusted EBITDA and Attributable AFFO ($ in millions) Adjusted EBITDA AFFO Attributable to AMT Common Stockholders $1,890 $1,749 $1,306 $1,151 8.1% Growth 13.5% Growth 10.2% FX-Neutral Growth(1) 15.9% FX-Neutral Growth(1) 13.4% Per Share Growth Q2 2023 Q2 2024 Q2 2023 Q2 2024 61.7% Cash Marg
Slide 10: Raising 2024 Property Revenue Outlook
Raising 2024 Property Revenue Outlook(1) ($ in millions) $116 $11,170 $11,190 ($45) ($51) India Revision: $116 ($50) ($1) +$65M / +$66M FXN(2) Ex. India Revision: $- $5 ($50) -$45M / +$5M FXN(2) Prior Outlook India Revenue Reserves(3) Pass-Through / FX Current Outlook Straight-Line › Increasing Prop
Slide 11: Revising 2024 Organic Tenant Billings Growth Outlook
Revising 2024 Organic Tenant Billings Growth Outlook(1)(2) >12% >5.5% ~6% ~6% ~5% ~5% ~4.7% ~2% >1.5% Total U.S. & Canada International Africa Europe APAC LatAm Impact of Sprint Churn(3) › Reiterating Consolidated, U.S. & Canada, International and APAC Organic Tenant Billings Growth › Raising Organi
Slide 12: Raising 2024 Adjusted EBITDA Outlook
Raising 2024 Adjusted EBITDA Outlook(1) ($ in millions) $50 $12 $7,305 $116 $7,175 ($15) ($33) India Revision: $116 $0 $0 ($15) ($1) +$100M / +$101M FXN(2) Ex. India Revision: $- $50 $12 $- ($32) +$30M / +$62M FXN(2) Prior Outlook India Revenue (3) Cash Property Net Straight-Line India SG&A FX Curre
Slide 13: Raising 2024 Attributable AFFO Outlook
Raising 2024 Attributable AFFO Outlook(1) ($ in millions) $116 $35 $4,960 $4,875 ($30) ($8) ($28) $10.60 $10.42 per Share per Share India Revision: $116 ($15) ($15) $- ($1) +$85M / +$86M FXN(2) Ex. India Revision: $- $50 ($15) ($8) ($27) +$0M / +$27M FXN(2) Prior Outlook India Revenue Cash EBITDA Ma
Slide 14: Capital Allocation & Balance Sheet Management
Capital Allocation & Balance Sheet Management ($ in billions, totals may not add due to rounding) 2024E Capital Deployment(1) Balance Sheet Management 3/31/2024 6/30/2024 Net Leverage Discretionary 5.0x 4.8x (LQA) Capital Common Stock $1.5 Liquidity ($B) $9.3 $9.2 Dividends (2) $3.0 Fixed / Floating
Slide 15: In Summary
In Summary Strong Q2 Performance › Solid Organic Tenant Billings Growth demonstrating fundamental strength; accelerating U.S. services expectations reinforced › Another quarter of double-digit year-over-year revenue growth at CoreSite, including second highest quarter of signed new leasing in histor
Slide 16: Definitions
Definitions Adjusted EBITDA: Net income before income (loss) from equity method investments, Income tax benefit (provision), Other income (expense), Gain (loss) on retirement of long-term obligations, Interest expense, Interest income, Other operating income (expense), including Goodwill impairment,
Slide 17: Definitions (continued)
Definitions (continued) Organic Tenant Billings: Tenant Billings on sites that the Company has owned since the beginning of the prior-year period, as well as Tenant Billings activity on new sites that occurred after the date of their addition to the Company’s portfolio. Organic Tenant Billings Growt
Slide 18: Risk Factors
Risk Factors This presentation contains “forward-looking statements” concerning our goals, beliefs, expectations, strategies, objectives, plans, future operating results and underlying assumptions and other statements that are not necessarily based on historical facts. Examples of these statements i
Slide 19: Risk Factors (continued)
Risk Factors (continued) (15) if we fail to remain qualified for taxation as a REIT, we will be subject to tax at corporate income tax rates, which may substantially reduce funds otherwise available, and even if we qualify for taxation as a REIT, we may face tax liabilities that impact earnings and
Slide 20: Historical Reconciliations
Historical Reconciliations ($ in millions, totals may not add due to rounding) RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME 2013 2014 2015 2016 2017 2018(1) 2019 2020 2021 2022 2023 2Q23 2Q24 Net income $482 $803 $672 $970 $1,225 $1,265 $1,917 $1,692 $2,568 $1,697 $1,367 $462 $908 Income tax prov
Slide 21: 2024 Current Outlook Reconciliations
2024 Current Outlook Reconciliations(1)(2) ($ in millions, except share and per share data, totals may not add due to rounding) Reconciliations of Outlook for Adjusted EBITDA to Net Income: Full Year 2024 Net income $3,225 to $3,315 Interest expense 1,475 to 1,455 Depreciation, amortization and accr
Slide 22: 2024 Prior Outlook Reconciliations
2024 Prior Outlook Reconciliations(1)(2) ($ in millions, except share and per share data, totals may not add due to rounding) Reconciliations of Outlook for Adjusted EBITDA to Net Income: Full Year 2024 Net income $3,080 to $3,170 Interest expense 1,465 to 1,445 Depreciation, amortization and accret
Slide 23: Reconciliations
Reconciliations ($ in millions, except per share amounts & as noted, totals may not add due to rounding) Estimated Q2 2024 FX-Neutral Q2 2024 FX-Neutral Reconciliations Q2 2023 Q2 2024 Growth Rate FX Impact Q2 2023 FX-Neutral Growth Rate Total Property Revenue $2,729 $2,853 4.6% (~$63) $2,729 $2,916
Slide 24: 2024 India Outlook
2024 India Outlook ($ in millions, totals may not add due to rounding) 2024 OUTLOOK INDIA BUSINESS CONTRIBUTIONS 1Q24A 2Q24A 3Q24E 4Q24E 2024 Outlook 2023 Total Tenant Billings (FX Impacted) $ 158 158 159 159 $ 635 $ 627 Pass-Through Revenue (1) 143 170 136 139 588 518 Straight-Line Revenue (0) (0)
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