American Tower Corporation

American Tower Corporation

Type	Public company
Traded as	NYSE: AMT S&P 100 component S&P 500 component
Industry	Real estate investment trust Communication services
Founded	1995 (1995)
Headquarters	Boston, Massachusetts , United States
Key people	Tom Bartlett (Chairman, CEO and President)
Revenue	US$9.4 billion (2021)
Operating income	US$3.1 billion (2021)
Net income	US$2.6 billion (2021)
Total assets	US$69.9 billion (2021)
Total equity	US$9.1 billion (2021)
Number of employees	6,378 (2021)
Subsidiaries	CoreSite
Website	americantower.com
Footnotes / references

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

AMT Stock Pitch - Sprint 4

Team

Member	Current Role	Career Path
Tom Bartlett	President and Chief Executive Officer	Educational background: M.B.A. from Rutgers University and a Bachelor of Science degree in Industrial Engineering from Lehigh University Started his career at Deloitte, Haskins & Sells Prior to 2009: Served in numerous corporate, operations, and business development roles at Verizon Communications and its predecessor companies and affiliates Held various positions including President and CEO of Bell Atlantic International Wireless, CEO of Iusacell, and CEO of Verizon's Global Solutions Inc. April 2009: Joined American Tower as Executive Vice President and Chief Financial Officer Current roles: President and Chief Executive Officer of American Tower Corporation Affiliations: Member of the World Economic Forum’s Information and Communications Technologies (ICT) Board of Governors, NAREIT Executive Committee, and the Business Roundtable
Ruth Dowling	Executive Vice President, Chief Administrative Officer, General Counsel and Secretary	Educational background: Law degree from Duke University School of Law and a Bachelor of Arts from the University of North Carolina Chapel Hill Prior to joining American Tower: Partner and co-chair of the litigation department at Edwards Angell Palmer & Dodge LLP Served as Senior Vice President and General Counsel for the EMEA and Latin America regions 2011: Joined American Tower and served as Senior Vice President, Corporate Legal Led American Tower’s Global Remobilization Project Team during the pandemic
Sanjay Goel	Executive Vice President and President, Asia-Pacific	Educational background: Bachelor’s degree in Engineering with specialization in Electronics and Communications from Manipal Institute of Technology Worked at ABB and IBM earlier in his career Prior to American Tower: Held various sales and business management positions at Nokia, including President of the Global Services business group and Nokia Operations March 2021: Joined American Tower as Executive Vice President and President, Asia-Pacific
Edward Knapp	Senior Vice President and Chief Technology Officer	Educational background: M.B.A. from Columbia University, Master of Science in Electrical Engineering from Polytechnic University (NYU), and a Bachelor of Science in Engineering from Stony Brook University Prior to American Tower: Served as Senior Vice President of Engineering at Qualcomm Worked at Flarion Technologies, PacketVideo Corporation, NextWave Telecom, and Bell Atlantic/NYNEX Mobile (Verizon Wireless) 2017: Joined American Tower as Chief Technology Officer Holds five granted U.S. patents and one pending application
Anthony Noble	Senior Vice President and Chief Strategy Officer	Educational background: Graduate of Syracuse University, the School of Public and International Affairs at Princeton University, and the University of Pennsylvania Law School Prior to American Tower: Worked as a commercial real estate developer and as a lawyer in private practice May 2016: Joined American Tower as Vice President and Chief of Staff to the Chairman, President, and CEO Involved in counselling and securing zoning approvals for various developments
Colleen Richards Powell	Senior Vice President and Chief Diversity, Equity and Inclusion Officer	Educational background: Bachelor’s degree from Wellesley College and a master’s degree from Harvard University Started her career on the Capitol Hill staff of Senator Edward “Ted” Kennedy Prior to American Tower: Held the same position at MFS Investment Management and served in various roles at the Massachusetts Convention Center Authority and Harvard University March 2021: Joined American Tower as Chief Diversity, Equity, and Inclusion Officer Active in various leadership and advisory roles
Olivier Puech	Executive Vice President and President, Latin America and EMEA	Educational background: Bachelor’s degree in International Business Administration from Ecole Supérieure De Commerce in Marseille, France Prior to American Tower: Held various leadership roles at Nokia and Gemalto 2013: Joined American Tower as Senior Vice President and CEO of Latin America October 2018: Appointed as Executive Vice President and President, Latin America and EMEA
Rod Smith	Executive Vice President, Chief Financial Officer and Treasurer	Educational background: M.B.A. from Suffolk University, a Certificate of Accountancy from Bentley College, and a Bachelor of Science in Finance from Merrimack College Prior to American Tower: Served in executive roles at Lightower and RoweCom October 2009: Joined American Tower and held various roles, including Senior Vice President, Corporate Finance and Treasurer, and CFO of American Tower's U.S. Tower Division Also held leadership positions at Nextel Communications
Steven O. Vondran	Executive Vice President and President, U.S. Tower Division	Educational background: J.D. with high honors from the University of Arkansas at Little Rock School of Law and a Bachelor of Arts in Economics and Business from Hendrix College Prior to American Tower: Worked at Lewellen & Frazier LLP, Young & Associates, Inc., and as a Law Clerk to the Hon. John Stroud on the Arkansas Court of Appeals 2000: Joined American Tower as a member of the Corporate legal team August 2004: Appointed Senior Vice President of U.S. Leasing Operations August 2018: Appointed Senior Vice President and General Counsel for U.S. Tower Division

All the images and data has been taken from the AMT website.^[5]

Market

Total Addressable Market

Here, the total addressable market (TAM) is the global commercial real estate market which, based on a number of assumptions and in terms of revenue, was valued at $35.0 trillion in 2022.

Serviceable Available Market

Here, the serviceable available market (SAM) is the global telecom tower market which, based on a number of assumptions and in terms of revenue, is valued at $50.4 billion in 2022.

Map showing Global Presence of American Tower Corporation

Fastest Growing Region

Asia-Pacific

Largest Region

Asia-Pacific

Market Drivers

• Increase in demand for highspeed internet services across the world.
• Digital transformation of businesses.
• Growing adoption of IoT-based devices.

• Launch of 5G connectivity.

Market Trends

• Development and deployment of green and sustainable towers
  • Solar powered towers
  • Energy efficient construction and installation methods

• Infrastructure sharing between telecom providers (tower sharing and tower leasing)
  • Lowers capital investment
  • Boosts operational efficiencies
• “Smart” towers
  • Remote monitoring
  • Predictive maintenance

Competitors

Company Name	Logo	HQ	Founding Year	No. of Towers (excl. Sites)	Revenue (FY 2022)	Market Cap.	Operating Regions
American Tower		Boston, US	1995	245K	$10.7B	$89.5B	Worldwide
SBA Communications		Boca Raton, US	1989	39K	$2.6B	$24.8B	Americas, South Africa
Crown Castle		Houston, US	1994	40K	$7B	$49.5B	USA
Helios Towers		London, GB	2009	13.8K	$0.56B	$0.88B	Africa and Middle East
China Tower		Beijing, CN	1993	2006K	$12.8B (¥92.2B)	$23.16B	China

Competitive Advantage:

American Towers is one of the only to provide data centre services in addition its tower-based infrastructure offerings.

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.

Finance

Sources:

StockAnalysis

Yahoo Finance

Pitchbook

Valuation

DCF

Assumptions

• 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:

$$FFO=Net\ Income+Depreciation+Amortisation+Loss-Gain\ on\ sale\ of\ Assets-Interest\ Income$$

Cash Flow & Income Statement Items

WACC

Sensitivity Analysis

Result

Sanity Check: Geometric Brownian Motion Simulation

Average log return: 7%; Annualised volatility: 30%

${\textstyle P(price>222.75)=0.49}$

Trading Comp

Assumptions

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.

Result

Risk

Risks related to Ability to Sell:

• 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

Risks related to Finance & Corporate:

• 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

Risks related to Legal and Regulatory:

• 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

Risks related to Tech & Innovation:

• 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

Risks related to Macro & Political Reasons:

• 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:

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%

References

5. ↑ https://www.americantower.com/company/leadership-team/index.html

6. https://www.tipranks.com/stocks/amt/risk-factors

7. https://americantower.gcs-web.com/static-files/01aa59a6-d202-4bcf-b8d6-8ef19df4c3ef