In Short:
American Tower raised its forecast for annual property revenue due to increased spending on 5G services by telecom companies. The company also sees growing demand for data center leasing. It now expects total property revenue for 2024 between $11.08 billion and $11.26 billion. American Tower reported first-quarter revenue of $2.83 billion, beating estimates, and posted adjusted funds from operations of $2.79 per share, exceeding expectations.
American Tower Raises Annual Revenue Forecast
American Tower has raised its forecast for annual property revenue as the real estate investment trust benefits from healthy telecom and wireless carrier spending. Telecom companies are increasing spending on 5G services to meet the growing demand for mobile data and high bandwidth wireless services.
Growing Demand for Data Center Leasing
American Tower is also experiencing a rise in demand for its data center leasing business as more firms seek to expand their digital infrastructure and leverage the artificial intelligence boom.
Revised Revenue Projection
American Tower now expects full-year 2024 total property revenue between $11.08 billion and $11.26 billion, up from its previous forecast of $11.05 billion to $11.23 billion. The company’s property segment, which includes its site leasing business, contributed significantly to American Tower’s revenue last year.
The company also anticipates annual adjusted funds from operations between $10.30 and $10.53 per share, compared to its prior outlook of $10.21 to $10.45 per share.
Strong Financial Performance
American Tower, with clients such as T-Mobile, AT&T, and Verizon, reported first-quarter total revenue of $2.83 billion, surpassing analysts’ estimates of $2.80 billion. The company’s adjusted funds from operations for the first quarter stood at $2.79 per share, exceeding estimates of $2.54 per share.
