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American Tower Corporation (AMT) is one of the largest global real estate investment trusts and a leading independent owner, operator and developer of multitenant communications real estate. The company’s primary business is leasing space on communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities and tenants in other industries.
The company generated 57% of its revenue from the U.S. and Canada during the first quarter of 2021 with the remainder coming from Latin America (16%), Asia-Pacific (13%), Africa (11%) and Europe (2%). In addition, the company generated 1% of total revenue from services.
American Tower reported first quarter FFO of $2.46 per share, which came in higher than consensus estimates by 18 cents. Last month, the company also announced a $2.15 billion equity raise to finance its Telxius transaction and pay related fees and expenses, as well as repay existing debt and fund general corporate expenses.
The nationwide 5G rollout has analysts optimistic on American Tower and other communication leasing businesses. For instance, Morgan Stanley analyst Simon Flannery recently hiked his price target, citing tower and carrier commentary in recent months that has increased his confidence in the 5G leasing cycle. Flannery expects the “Big 3” carriers to become increasingly active in their 5G mid-band network deployments while Dish also builds out its network.
The company raised its quarterly dividend by 2.4% to $1.27 per share, which represents a 1.93% yield. The dividend is payable on July 9, 2021, to shareholders on record as of June 18, 2021.
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