American Tower Corporation - Revision history

>BigDesa: Valuations Finalised

2023-08-16T08:34:01Z

Valuations Finalised

← Older revision		Revision as of 09:34, 16 August 2023
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	=== DCF ===		=== DCF ===
			<u>Assumptions</u>

			* Perpetual Growth Rate: 2.5%
			* 10% Market Return: aligning with the S&P 500 return
			* Fund For Operations(FFO) replaces EBITDA since it gives a more accurate representation of REIT's PnL:

			<math display="block">FFO = Net \ Income + Depreciation + Amortisation + Loss - Gain \ on \ sale \ of \ Assets - Interest \ Income</math>

			Cash Flow & Income Statement Items

	[[File:Amt-dcf.jpg\|frameless\|1792x1792px]]		[[File:Amt-dcf.jpg\|frameless\|1792x1792px]]

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	<u>Result</u>		<u>Result</u>
	[[File:Amt-dcf-upside.png\|center\|thumb\|813x813px]]		[[File:Amt-dcf-upside.png\|center\|thumb\|813x813px]]<u>Sanity Check</u>: Geometric Brownian Motion Simulation

			Average log return: 7%; Annualised volatility: 30%
			[[File:Amt-dcf-gbm.png\|none\|thumb\|1400x1400px\|<math display="inline">P(price>222.75)=0.49</math>]]

	=== Trading Comp ===		=== Trading Comp ===
	<u>Assumptions</u>		<u>Assumptions</u>

			AMT, compared to its peers, operates at lower multiples with a significant market cap, therefore using the lower quartile and min of the multiples is more realistic in terms of modelling.

	[[File:Amt-comp-1.png\|frameless\|1800x1800px]]		[[File:Amt-comp-1.png\|frameless\|1800x1800px]]
	[[File:Amt-comp-2.png\|frameless\|1700x1700px]]<u>Result</u>[[File:Amt-comp-3.png\|frameless\|734x734px]]		[[File:Amt-comp-2.png\|frameless\|1700x1700px]]<u>Result</u>

			[[File:Amt-comp-3.png\|frameless\|734x734px]]

	== Risk ==		== Risk ==

>BigDesa: Valuations

2023-08-16T08:17:11Z

Valuations

@@ Line 22: / Line 22: @@
 American Tower Corporation, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 219,000 communications sites.
-<Youtube>35pTTwcWh9k</Youtube>
+== Pitch ==
 == Team ==
@@ Line 211: / Line 212: @@
 ==== Occupancy Rate: ====
 American Towers has an occupancy rate of 84.3%. This indicates the ratio of its assets which are currently being used, and the proportion of assets which are wasted/unused.
 <ref>craft.co</ref> <ref><nowiki>https://www.digitaljournal.com/pr/news/newsmantraa/telecom-towers-market-2023-is-booming-with-top-key-players-china-tower-corporation-american-tower-corporation-mer-sba-communications-crown-castle</nowiki> </ref> <ref><nowiki>https://www.coherentmarketinsights.com/market-insight/telecom-towers-market-2826#</nowiki>
 </ref>
 == Finance ==
 <blockquote>Sources:</blockquote>[https://stockanalysis.com/stocks/amt/financials/ StockAnalysis]
@@ Line 224: / Line 220: @@
 [https://pitchbook.com/profiles/company/11395-36#stock Pitchbook]
 == Risk ==
@@ Line 319: / Line 337: @@
 |8.3%
 |}
 == References ==
 __INDEX__

63.247.192.138: /* Risk Matrix: */

2023-08-15T08:59:45Z

Risk Matrix:

@@ Line 226: / Line 226: @@
 == Risk ==
 '''<u>Risks related to Ability to Sell:</u>'''
@@ Line 322: / Line 319: @@
 |8.3%
 |}
 == References ==
 __INDEX__

Manos at 10:20, 13 August 2023

2023-08-13T10:20:52Z

← Older revision		Revision as of 11:20, 13 August 2023
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			{{Infobox company
			\| name = American Tower Corporation
			\| logo = American Tower Corporation logo.svg
			\| type = [[Public company]]
			\| traded_as = {{ubl\|{{NYSE\|AMT}}\|[[S&P 100]] component\|[[S&P 500]] component}}
			\| founded = {{start date and age\|1995}}
			\| hq_location_city = [[Boston]], Massachusetts
			\| hq_location_country = United States
			\| key_people = Tom Bartlett ([[Chairman]], [[CEO]] and [[President (corporate title)\|President]])
			\| industry = {{ubl\|[[Real estate investment trust]]\|Communication services}}
			\| revenue = {{increase}} {{US$\|9.4 billion\|link=yes}} (2021)
			\| operating_income = {{increase}} US$3.1 billion (2021)
			\| net_income = {{increase}} US$2.6 billion (2021)
			\| assets = {{increase}} US$69.9 billion (2021)
			\| equity = {{increase}} US$9.1 billion (2021)
			\| num_employees = 6,378 (2021)
			\| subsid = [[CoreSite]]
			\| website = {{URL\|americantower.com}}
			\| footnotes = <ref name="10K">{{Cite web \|title=American Tower Corporation 2021 Form 10-K Annual Report \|url=https://sec.report/Document/0001053507-22-000017/ \|publisher=[[U.S. Securities and Exchange Commission]]}}</ref>
			}}

	American Tower Corporation, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 219,000 communications sites.		American Tower Corporation, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 219,000 communications sites.

Manos: /* Competitors */

2023-08-13T10:19:31Z

Competitors

← Older revision		Revision as of 11:19, 13 August 2023
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	=== Competitors ===		=== Competitors ===
	{\| class="wikitable"		{\| class="wikitable"
	\|Company Name		!Company Name
	\|Logo		!Logo
	\|HQ		!HQ
	\|Founding Year		!Founding Year
	\|No. of Towers (excl. Sites)		!No. of Towers (excl. Sites)
	\|Revenue (FY 2022)		!Revenue (FY 2022)
	\|Market Cap.		!Market Cap.
	\|Operating Regions		!Operating Regions
	\|-		\|-
	\|American Tower		\|American Tower
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	\|8.3%		\|8.3%
	\|}		\|}


	==== <u>Risk Matrix:</u> ====		==== <u>Risk Matrix:</u> ====
	{\| class="wikitable"		{\| class="wikitable"

Manos at 10:18, 13 August 2023

2023-08-13T10:18:44Z

← Older revision		Revision as of 11:18, 13 August 2023
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			American Tower Corporation, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 219,000 communications sites.

	~~== Summary ==~~		<Youtube>35pTTwcWh9k</Youtube>

	American Tower Corporation, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 219,000 communications sites.

	~~Pitch: https://youtu.be/35pTTwcWh9k~~
	== Team ==		== Team ==
	{\| class="wikitable mw-collapsible"		{\| class="wikitable mw-collapsible"

>BigDesa: /* Summary */ Add Pitch Video

2023-08-11T11:09:52Z

Summary: Add Pitch Video

← Older revision		Revision as of 12:09, 11 August 2023
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	American Tower Corporation, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 219,000 communications sites.		American Tower Corporation, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 219,000 communications sites.

			Pitch: https://youtu.be/35pTTwcWh9k
	== Team ==		== Team ==
	{\| class="wikitable mw-collapsible"		{\| class="wikitable mw-collapsible"

>Mihir Acharya: /* Risk */

2023-08-11T08:24:04Z

Risk

@@ Line 208: / Line 208: @@
 == Risk ==
 '''<u>Risks related to Ability to Sell:</u>'''
@@ Line 300: / Line 302: @@
 Supply Chain - 0%
 |8.3%
 |}

>Mihir Acharya: /* Risk small changes */

2023-08-11T08:22:04Z

Risk small changes

← Older revision		Revision as of 09:22, 11 August 2023
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	* American Tower's business, and that of their customers, is subject to laws, regulations and administrative and judicial decisions, and changes thereto, that could restrict their ability to operate our business as they currently do or impact their competitive landscape		* American Tower's business, and that of their customers, is subject to laws, regulations and administrative and judicial decisions, and changes thereto, that could restrict their ability to operate our business as they currently do or impact their competitive landscape
	* If American Tower fail to remain qualified for taxation as a REIT, they will be subject to tax at corporate income tax rates, which may substantially reduce funds otherwise available, and even if they qualify for taxation as a REIT, they may face tax liabilities that impact earnings and available cash flow		* If American Tower fail to remain qualified for taxation as a REIT, they will be subject to tax at corporate income tax rates, which may substantially reduce funds otherwise available, and even if they qualify for taxation as a REIT, they may face tax liabilities that impact earnings and available cash flow
	* ~~complying~~ with REIT requirements may limit ~~our~~ flexibility or cause us to forego otherwise attractive opportunities;		* Complying with REIT requirements may limit American Tower's flexibility or cause us to forego otherwise attractive opportunities
	* we could have liability under environmental and occupational safety and health laws		* American Tower could have liability under environmental and occupational safety and health laws
	* ~~if we~~ are unable to protect ~~our~~ rights to the land under our towers and buildings in which ~~our~~ data centers are located, it could adversely affect ~~our~~ business and operating results~~; and~~		* If American Tower are unable to protect their rights to the land under our towers and buildings in which their data centers are located, it could adversely affect their business and operating results
	* ~~if we~~ are unable or choose not to exercise ~~our~~ rights to purchase towers that are subject to lease and sublease agreements at the end of the applicable period, ~~our~~ cash flows derived from those towers will be eliminated.		* If American Tower are unable or choose not to exercise their rights to purchase towers that are subject to lease and sublease agreements at the end of the applicable period, their cash flows derived from those towers will be eliminated

	'''<u>Risks related to Tech & Innovation:</u>'''		'''<u>Risks related to Tech & Innovation:</u>'''

	* ~~new~~ technologies or changes, or lack thereof, in ~~our~~ or a customer’s business model could make ~~our~~ communications infrastructure leasing business less desirable and result in decreasing revenues and operating results;		* New technologies, changes, or lack thereof, in American Tower's or a customer’s business model could make their communications infrastructure leasing business less desirable and result in decreasing revenues and operating results
	* ~~if we~~, or third parties on which we rely, experience technology failures, including cybersecurity incidents or the loss of personally identifiable information, we may incur substantial costs and suffer other negative consequences, which may include reputational damage;		* If American Tower, or third parties on which they rely, experience technology failures, including cybersecurity incidents or the loss of personally identifiable information, they may incur substantial costs and suffer other negative consequences, which may include reputational damage

	'''<u>Risks related to Macro & Political Reasons:</u>'''		'''<u>Risks related to Macro & Political Reasons:</u>'''

	* ~~our~~ foreign operations are subject to economic, political and other risks that could materially and adversely affect ~~our~~ revenues or financial position, including risks associated with fluctuations in foreign currency exchange rates;		* American Tower's foreign operations are subject to economic, political and other risks that could materially and adversely affect their revenues or financial position, including risks associated with fluctuations in foreign currency exchange rates
	* we may be adversely affected by regulations related to climate change;		* American Tower may be adversely affected by regulations related to climate change
	* ~~our~~ towers, fiber networks, data centers or computer systems may be affected by natural disasters (including as a result of climate change) and other unforeseen events for which ~~our~~ insurance may not provide adequate coverage or result in increased insurance premiums;		* American Tower's towers, fiber networks, data centers or computer systems may be affected by natural disasters (including as a result of climate change) and other unforeseen events for which their insurance may not provide adequate coverage or result in increased insurance premiums

	In the most recent earnings report American Tower disclosed 24 risk factors, two more since last quarter's report, including the following risk distributions:		In the most recent earnings report American Tower disclosed 24 risk factors, two more since last quarter's report, including the following risk distributions:
	{\| class="wikitable"		{\| class="wikitable"

>Mihir Acharya: /* risk updates*/

2023-08-11T08:11:04Z

risk updates

← Older revision		Revision as of 09:11, 11 August 2023
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	* American Tower's ability to achieve their return on investment criteria could be adversely affected by competition for assets		* American Tower's ability to achieve their return on investment criteria could be adversely affected by competition for assets
	* American Tower's costs could increase and their revenues could decrease due to perceived health risks from radio emissions, especially if these perceived risks are substantiated		* American Tower's costs could increase and their revenues could decrease due to perceived health risks from radio emissions, especially if these perceived risks are substantiated


	'''<u>Risks related to Finance & Corporate:</u>'''		'''<u>Risks related to Finance & Corporate:</u>'''

	* if ~~our~~ customers consolidate their operations, exit their businesses or share site infrastructure to a significant degree~~, our growth, revenue and ability to generate positive cash flows could be materially and adversely affected;~~		* American Tower's growth, revenue and ability to generate positive cash flows could be materially and adversely affected if their customers consolidate their operations, exit their businesses or share site infrastructure to a significant degree
	* ~~our~~ expansion initiatives involve a number of risks and uncertainties, including those related to integrating acquired or leased assets, that could adversely affect ~~our~~ operating results, disrupt ~~our~~ operations or expose us to additional risk;		* American Tower's expansion initiatives involve a number of risks and uncertainties, including those related to integrating acquired or leased assets, that could adversely affect their operating results, disrupt their operations or expose them to additional risk
	* ~~our~~ leverage and debt service obligations, including during a rising interest rates environment, may materially and adversely affect ~~our~~ ability to raise additional financing to fund capital expenditures, future growth and expansion initiatives and to satisfy ~~our~~ distribution requirements;		* American Tower's leverage and debt service obligations, including during a rising interest rates environment, may materially and adversely affect their ability to raise additional financing to fund capital expenditures, future growth and expansion initiatives and to satisfy their distribution requirements
	* ~~restrictive~~ covenants in the agreements related to ~~our securitization~~ transactions, ~~our~~ credit facilities and ~~our~~ debt securities could materially and adversely affect ~~our~~ business by limiting flexibility, and we may be prohibited from paying dividends on ~~our~~ common stock, which may ~~jeopardize our~~ qualification for taxation as a REIT;		* Restrictive covenants in the agreements related to their: securitisation transactions, credit facilities and debt securities could materially and adversely affect their business by limiting flexibility, and may be prohibited from paying dividends on their common stock, which may jeopardise American Tower's qualification for taxation as a REIT
	* ~~the~~ transition to SOFR based loans may adversely affect ~~our~~ cost to obtain financing;		* The transition to SOFR based loans may adversely affect American Tower's cost to obtain financing
	* ~~rising~~ inflation may adversely affect us by increasing costs beyond what we can recover through price increases;		* Rising inflation may adversely affect American Tower by increasing costs beyond what they can recover through price increases

	'''<u>Risks related to Legal and Regulatory:</u>'''		'''<u>Risks related to Legal and Regulatory:</u>'''

	* ~~our~~ business, and that of ~~our~~ customers, is subject to laws, regulations and administrative and judicial decisions, and changes thereto, that could restrict ~~our~~ ability to operate our business as we currently do or impact ~~our~~ competitive landscape;		* American Tower's business, and that of their customers, is subject to laws, regulations and administrative and judicial decisions, and changes thereto, that could restrict their ability to operate our business as they currently do or impact their competitive landscape
	* ~~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 available cash flow;		* If American Tower fail to remain qualified for taxation as a REIT, they will be subject to tax at corporate income tax rates, which may substantially reduce funds otherwise available, and even if they qualify for taxation as a REIT, they may face tax liabilities that impact earnings and available cash flow
	* complying with REIT requirements may limit our flexibility or cause us to forego otherwise attractive opportunities;		* complying with REIT requirements may limit our flexibility or cause us to forego otherwise attractive opportunities;
	* we could have liability under environmental and occupational safety and health laws		* we could have liability under environmental and occupational safety and health laws