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American Tower’s 2Q17 Growth Rode on This

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Investments in 2Q17

American Tower (AMT) deployed nearly $1 billion of capital in 2Q17. The total deployment consisted of $79 million for acquisitions and over $400 million for stock repurchases.

In 2Q17, American Tower spent more than $182 million toward constructing new sites, expanding the capacity of its existing sites, buying new lands, and upgrading newly-acquired sites to AMT standards.

In 2Q17, AMT took over 152 sites, including 54 towers in Brazil worth $79 million. The towers were acquired under an agreement with its subsidiary TIM Participações.

AMT now owns 5,873 towers worth $842 million under the deal with TIM Participações. AMT has plans to buy 1,200 sites in Colombia, 1,400 sites in Paraguay, and almost 100 additional sites in Mexico.

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Guidance for capital deployment in fiscal 2017

AMT plans to invest $145 million–$175 million in discretionary projects, $150 million–$160 million in ground lease purchases, $165 million–$185 million in start-up projects, and $195 million–$225 million in redevelopment projects in fiscal 2017.

By comparison, close competitors Realty Income Properties (O), SBA Communications (SBAC), Crown Castle International (CCI) reported revenues of $300.2 million, $1.04 billion, and $423.4 million, respectively. AMT and its peers make up ~17% of the ProShares Ultra Real Estate ETF (URE).

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