Showing posts with label American Tower. Show all posts
Showing posts with label American Tower. Show all posts

Tuesday, May 1, 2018

American Tower reports robust demand as sales grow 7.8% yoy

American Tower reported revenue of $1.742 billion for Q1 2018, up 7.8% over last year.

“The strong demand we experienced in late 2017 for our telecommunications real estate further accelerated in the U.S. as well as in our Latin America and EMEA regions in the first quarter of 2018. Notably, record levels of new business commencements, along with a robust pipeline of applications for both amendments and new colocations resulted in our increase in expectations for full year U.S. Organic Tenant Billings Growth to approximately 6.5% in 2018," stated Jim Taiclet, American Tower’s Chief Executive Officer.

During Q1, American Tower spent approximately $673 million to acquire nearly 10,600 sites primarily in international markets, including approximately 10,200 sites in India as part of its previously announced transaction with Vodafone India Limited.

Tuesday, March 13, 2018

The tower companies will let us know when 5G rollouts gets real - part 2

Preamble: Network densification is a key premise of 5G architecture. Once the rollouts of 5G networks begin in earnest, we should expect to see many more cell sites in urban areas across the world, so one way to measure the progress of 5G rollouts will be to keep an eye on the companies that actually will handle the deployment of physical equipment on the streets.
American Tower is one of those companies.

At this week’s Mobile World Congress, American Tower, in partnership with Philips Lighting, is announcing a street ¬¬¬pole designed to meet the capacity challenges in dense urban centres. This “Smart Fusion Pole” combines LED street lighting with mobile connectivity. Integrated antennas are concealed and can support services from multiple mobile operators on a single pole. American Tower says the design is 5G and IoT ready.

The City of Huntington Beach, California will be the first to deploy this street pole from American Tower, which has an agreement with the city for exclusive access to 200 smart pole locations. It is a start.

Although we do not know the financial terms of such an agreement, cities will soon realize that the cost of upgrading their street infrastructure in an aesthetically pleasing fashion, in this case street lights, can be paid for by the mobile industry. If the public accepts it, we could soon see thousands of such street poles even in a fairly small and lightly populated (by world standards) city such as Huntington Beach (population 200,000).

So let’s say a tower operator has 5,000 fibre-connected street poles equipped for 5G in Huntington Beach. How much can they charge Sprint or Verizon or AT&T for monthly rent? And what impact will this have on the OPEX budget of mobile operators? Will 5G networks be more costly to operate and maintain than 4G?

Expansion in Mexico

In November, American Tower American Tower acquired a subsidiary of KIO Networks that controls more than 50,000 concrete poles and approximately 2,100 route miles of fiber. The purchase price was $500 million in cash. Most of these facilities are located in dense urban areas. Mexico’s population tends to be more urban than rural.

KIO Networks is one of the major data center operators in Mexico. The company is owned by Maria Asuncion Aramburuzabala, whose family holds investments in many industrial sectors of the country.



Mexico’s Red Compartida project

Mexico’s Red Compartida (shared network) project is a private-public initiative that aimed to break-up the dominance of America Movil by providing a shared infrastructure that would allow competition in mobile services to grow. Red Compartida is sometimes described as the largest construction of a new public access network in the world, although it is eclipsed by the FirstNet emergency response project in the U.S. The primary contractor for the project is ALTÁN Redes.

Key facts of the initiative include:

•   Red Compartida will only offer wholesale mobile services.

•   Red Compartida will build a new national network covering at least 92.2% of the population.

•   Red Compartida's largest investor at 33% is Marapendi Holding BV, an indirect subsidiary of North Haven Infrastructure Partners II, an infrastructure fund with a value-add strategy to invest in OECD countries around the world, managed by Morgan Stanley Infrastructure; Caisse de dépôt et placement du Québec(CDPQ), one of North America's largest pension fund manager holds a 12.68% share; Mr. Miguel S. Escobedo holds a 9.35% share; and Mr. Eugenio Galdón, Chairman of Multitel, holds a 3.34% share.

•   Axtel and Megacable also hold a stake in ALTÁN Redes through a series of non-voting shares and without involvement in management; each has a participation of 4.01%.

•   In March, ALTÁN Redes selected Huawei and Nokia as turn-key technology providers for Red Compartida, a pure IP + LTE network.

•   Huawei technology will be used for central and southern Mexico (telecommunications regions 6 to 9), as well as providing the backbone.

•   Nokia's technology will be rolled out in the northern part of the country (regions 1 to 5). Nokia will also supply the network Core, which includes the Network Operation Center (NOC) and Security Operation Center (SOC).

As of 30-January-2018, ALTÁN Redes confirmed that the project was on target to begin operations with 30 percent coverage of Mexico’s population by 31-March-2018.

Presumably, American Tower’s newly acquired facilities will play some role, as that is the basis of the acquisition, but it remains to be seen how the economics of Red Compartida will ultimately play out. The key question ultimately is if smaller competitors will be able to challenge America Movil, and if AT&T Mexico will be able to participate in Red Compartida, and if so, to what extent it does so.

One interesting observation is the presence of Huawei as a principal vendor for Red Compartida – could that be an obstacle for AT&T Mexico?

Monday, November 20, 2017

American Tower buys network infrastructure in Mexico

American Tower Corporation completed its previously announced acquisition of KIO Networks’ infrastructure subsidiary in Mexico. The deal includes more than 50,000 concrete poles and approximately 2,100 route miles of fiber, primarily located in Mexico’s key urban centers. The price was approximately $500 million in cash.

Hal Hess, American Tower’s EVP and President, EMEA and Latin America, stated, “We are pleased to close this transaction, which we expect not only to enhance the value of our existing tower portfolio in Mexico, but also to better position American Tower to capture a larger share of future urban 4G network densification efforts and the eventual rollout of 5G.”

Citigroup acted as American Tower's exclusive financial adviser and Kilpatrick Townsend & Stockton and Holland & Knight as its legal advisers.

American Tower, one of the largest global REITs, has a portfolio of approximately 149,000 communications sites.

Thursday, October 27, 2016

American Tower Looks to Europe for Opportunities

American Tower, a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of over 144,000 tower sites, will form a joint venture with Dutch pension fund manager PGGM to develop telecommunications real estate investment opportunities in select European countries. The new company will be called ATC Europe.  American Tower will contribute its German assets into ATC Europe and PGGM will acquire a 49% interest in ATC Europe. American Tower will retain operational control and day-to-day oversight of ATC Europe.

"We are pleased to be able to enter into this partnership with PGGM,” said James D. Taiclet, Jr., American Tower’s Chairman, President and Chief Executive Officer. “We believe that the combination of PGGM’s long-term investment philosophy and extensive knowledge of the European landscape with American Tower’s proven track record of investing in and operating telecommunications real estate assets will establish a compelling platform for future investment opportunities."

http://www.americantower.com/

Thursday, February 5, 2015

American Tower to Acquire 11,489 Towers from Verizon

American Tower Corporation agreed to acquire rights to approximately 11,324 wireless communications towers and purchase approximately 165 additional towers from Verizon Communications for $5.056 billion in cash. The portfolio of approximately 11,489 towers spans all 50 states with approximately 50% of the sites in the top 100 BTAs. The average height of the tower portfolio is approximately 190 feet, with capacity for incremental colocation.

Under the deal, American Tower will have the exclusive right to lease and operate the Verizon towers for a weighted average term of approximately 28 years. In addition, American Tower will have fixed price purchase options to acquire the towers based on their anticipated fair market values at the end of the lease terms. Verizon will sublease space on the towers for a minimum of 10 years with monthly rent of $1,900 per site and fixed annual rent escalators of 2%.

American Tower said the deal, in combination with its legacy footprint, will give it the largest wireless communications real estate portfolio in the United States with over 40,000 tower sites. This transaction expands and strengthens American Tower’s relationships with major U.S. wireless operators, and 85% of pro forma domestic rental and management revenue will be generated by the Big Four U.S. carriers.

“The Verizon tower portfolio is a unique asset. Due to outstanding design and management by the Verizon Wireless network operations team, the portfolio boasts a number of key attributes that we believe will facilitate robust leasing opportunities under our focused management. These attributes include average tower heights approaching 200 feet, ample structural capacity and ground space, very attractive transmission locations with relatively few competing sites, a solid ground lease profile, and excellent documentation and technical information. By acquiring access to this high quality asset base, American Tower will be well positioned to capture incremental leasing activity and extend our ability to drive strong annual organic core growth and solid AFFO per share growth, well into the future,” stated Jim Taiclet, American Tower’s Chief Executive Officer.

American Tower estimates that the Verizon tower portfolio will generate approximately $410 million in domestic rental and management revenue, approximately $235 million in gross margin and will be break-even to AFFO per share in its full first year of operation, and accretive thereafter.

http://www.americantower.com/corporateus/investor-relations/press-releases/index.htm

Tuesday, November 25, 2014

American Tower to Acquire Bharti Airtel's Towers in Nigeria

American Tower agreed to acquire over 4,800 communications towers in Nigeria from Bharti Airtel.

Airtel will be the anchor tenant on the portfolio under a lease with a ten-year initial term.

“We are pleased to announce the launch of our operations in Nigeria while expanding our relationship with Airtel, one of the leading multinational operators in the world,” said Jim Taiclet, Chairman, President and Chief Executive Officer of American Tower. “With the largest population and economy in Africa and relatively underdeveloped wireless infrastructure, we view Nigeria as a tremendous growth opportunity. Further, we expect this investment to support our long-term objective of generating double-digit AFFO per share growth for our stockholders.”

Commenting on the development, Christian de Faria, MD and Chief Executive Officer of Bharti Airtel Africa, said, “Nigeria is the largest mobile market in Africa and a key one for Airtel. This agreement, which is part of our stated philosophy of promoting infrastructure sharing, will provide us with considerable cost efficiencies and at the same time allows us to sharpen our focus on the customer. American Tower has a proven track record in passive infrastructure management and we look forward to benefitting from the best practices from all other countries it operates in."

http://www.americantower.com

American Tower to Acquire TIM Celular's Towers in Brazil

American Tower agreed to acquire two portfolios of towers in Brazil from TIM Celular S.A., which is owned by Telecom Italia S.p.A..

The first portfolio includes approximately 5,240 towers. The second portfolio includes approximately 1,240 towers, which are subject to certain preemptive acquisition rights held by third parties. The total consideration is expected to be approximately 3.0 billion Brazilian Reais (approximately $1.2 billion at the current exchange rate), subject to customary adjustments. American Tower intends to finance the acquisition in a manner consistent with its previously announced leverage targets.

American Tower anticipates that the towers will generate approximately 435 million Brazilian Reais (approximately $171 million at the current exchange rate) in annual run rate revenues (which includes ground rent pass-through and existing collocation revenue), and approximately 191 million Brazilian Reais (approximately $75 million at the current exchange rate) in annual gross margin. TIM will be the anchor tenant on each portfolio under leases with 20-year initial terms.

http://www.americantower.com

Sunday, September 8, 2013

American Tower to Acquire Global Tower Partners for $4.8 Billion

American Tower Corporation agreed to acquire 100% of the outstanding common membership interests of MIP Tower Holdings LLC, a private real estate investment trust, which is the parent company of Global Tower Partners, for approximately $4.8 billion.

GTP owns and operates approximately 5,400 towers across the U.S., 800 domestic property interests under third-party communications sites, and has management rights to over 9,000 domestic sites, which are primarily rooftop assets. In addition, GTP owns 500 communications sites in Costa Rica.

The deal increases American Tower's U.S. portfolio by 25%, strengthening its presence in top 10 markets, including New York, San Francisco and Washington D.C.

GTP's Revenue Sources:
AT&T - 25%
Sprint - 17%
T-Mobile - 16%
Verizon - 12%
Other - 30%

“GTP has constructed and acquired an outstanding U.S. portfolio of tower, rooftop and land assets, which is highly complementary to that of American Tower. Moreover, GTP’s management of these assets has been excellent, as confirmed through our rigorous due diligence process. GTP’s towers boast a high quality customer base, a strong position with respect to ground ownership and lease terms, and additional structural capacity available to facilitate future leasing activity.

With all four major domestic wireless carriers engaged in aggressive multi-year 4G LTE deployments, we believe our acquisition of GTP solidifies our path to achieving our strategic goals related to growing our AFFO over the next five years,” said Jim Taiclet, Chairman, President and Chief Executive Officer of American Tower.

American Tower will pay using approximately $3.3 billion in cash and the assumption of approximately $1.5 billion of existing indebtedness.
American Tower expects to use cash on hand and borrowing capacity under its existing revolving credit facilities, as supplemented by additional anticipated sources of debt financing, to satisfy the cash consideration for this acquisition and other previously announced acquisitions. American Tower intends to maintain its financial and capital structure policies, consistent with investment grade credit metrics, and expects to use the quality cash flow and margin characteristics of the GTP portfolio to de-lever over time back to its stated target leverage range.

American Tower expects that in aggregate, in 2014, the portfolio will generate approximately $345 million in revenues and approximately $270 million of gross margin, and is anticipated to be immediately accretive to Adjusted Funds From Operations (“AFFO”) upon closing.

http://www.americantower.com

Last month, American Tower Corporation agreed to acquire up to 2,790 towers in Brazil and 1,666 towers in Mexico from NII Holdings for approximately $413 million and $398 million, respectively.

American Tower said the majority of the portfolio consists of towers located in and around major population areas and along major highways. On average, the towers have a tenancy ratio of just over one tenant per tower, with Nextel Brazil or Nextel Mexico as the primary tenant, providing significant opportunities for future site leasing growth.

Both Nextel Brazil and Nextel Mexico have agreed to leaseback the towers from American Tower for a minimum 12-year initial lease term with additional renewal options thereafter. NII International Telecom S.C.A, a subsidiary of NII based in Luxembourg, has agreed to provide certain credit support with respect to the obligations of Nextel Brazil.

Saturday, August 10, 2013

American Tower Acquires Tower Sites in Mexico and Brazil

American Tower Corporation will acquire up to 2,790 towers in Brazil and 1,666 towers in Mexico from NII Holdings for approximately $413 million and $398 million, respectively.

American Tower said the majority of the portfolio consists of towers located in and around major population areas and along major highways. On average, the towers have a tenancy ratio of just over one tenant per tower, with Nextel Brazil or Nextel Mexico as the primary tenant, providing significant opportunities for future site leasing growth.

Both Nextel Brazil and Nextel Mexico have agreed to leaseback the towers from American Tower for a minimum 12-year initial lease term with additional renewal options thereafter. NII International Telecom S.C.A, a subsidiary of NII based in Luxembourg, has agreed to provide certain credit support with respect to the obligations of Nextel Brazil.

"Through this acquisition, American Tower will gain significant incremental scale in our Mexican and Brazilian operations, and we anticipate leveraging the strong demand backdrop in both markets to drive meaningful revenue and cash flow growth for many years to come," stated Jim Taiclet, Chairman, President and Chief Executive Officer of American Tower.

American Tower currently owns and operates over 56,000 communications sites in the United States, Brazil, Chile, Colombia, Germany, Ghana, India, Mexico, Peru, South Africa and Uganda.

http://www.americantower.com

See also