Open main menu
Home
Random
Donate
Recent changes
Special pages
Community portal
Preferences
About Stockhub
Disclaimers
Search
User menu
Talk
Contributions
Create account
Log in
Editing
American Tower Corporation
(section)
Warning:
You are not logged in. Your IP address will be publicly visible if you make any edits. If you
log in
or
create an account
, your edits will be attributed to your username, along with other benefits.
Anti-spam check. Do
not
fill this in!
== Risk == '''<u>Risks related to Ability to Sell:</u>''' * A significant decrease in leasing demand for American Tower communications infrastructure would materially and adversely affect their business and operating results, and this demand cannot be controlled * A substantial portion of American Tower's current and projected future revenue is derived from a small number of customers, and the company is sensitive to adverse changes in the creditworthiness and financial strength of our customers * With increasing competition within the same industry, American Tower's revenue may be materially and adversely affected * 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 '''<u>Risks related to Finance & Corporate:</u>''' * 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 * 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 * 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 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 American Tower's cost to obtain financing * 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>''' * 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 * Complying with REIT requirements may limit American Tower's flexibility or cause us to forego otherwise attractive opportunities * American Tower could have liability under environmental and occupational safety and health laws * 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 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>''' * 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 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>''' * 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 * American Tower may be adversely affected by regulations related to climate change * 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: {| class="wikitable" |+ !Risk Distribution !Description !Risks !Overall Percentage |- |'''Ability to sell''' |Risks related to the company’s ability to sell goods and services |'''Demand - 13%''' Competition - 8% Sales & Marketing 4% Brand / Reputation 0% |25% |- |'''Finance & Corporate''' |Financial and accounting risks. Risks related to the execution of corporate activity and strategy |'''Debt & Financing - 17%'''Corporate Activity and Growth - 4% Share Price & Shareholder Rights - 0% Accounting & Financial Operations - 0% |20.8% |- |'''Legal & Regulatory''' |Litigation, compliance, new legislation, and taxation risks |'''Regulation - 8%'''Environmental / Social - 8% Taxation & Government Incentives - 4% Litigation & Legal Liabilities - 0% |20.8% |- |'''Tech & Innovation''' |Risks related to the company’s reliance on technology and ability to make innovative products |'''Technology - 8%'''Trade secrets - 4% Innovation - 0% Cyber Security - 0% |12.5% |- |'''Macro & Political''' |Risks related to catastrophic events or geopolitical conditions that may disrupt the company’s business |'''Economy & Political Environment - 4%'''Natural and Human Disruptions - 4% Capital Markets - 4% International Operations - 0% |12.5% |- |'''Production''' |Risks related to the company’s ability to manufacture goods and services |'''Cost - 8%'''Manufacturing - 0% Employment / Personnel - 0% Supply Chain - 0% |8.3% |}
Summary:
Please note that all contributions to Stockhub may be edited, altered, or removed by other contributors. If you do not want your writing to be edited mercilessly, then do not submit it here.
You are also promising us that you wrote this yourself, or copied it from a public domain or similar free resource (see
Stockhub:Copyrights
for details).
Do not submit copyrighted work without permission!
Cancel
Editing help
(opens in new window)