American Tower (AMT) 27 Feb 242023 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the American Tower Fourth Quarter and Full Year 2023 Earnings Conference Call.

As a reminder this conference is being recorded. [Operator Instructions] I would now like to turn the call over to your host, Adam Smith, Senior Vice President of Investor Relations. Please go ahead, sir.

you XXXX American Earnings thank and Fourth and Year Full Conference morning, for Tower's joining Quarter Good Call.

tab under We we have Investor remarks will which website, Relations the refer to posted throughout our a of our presentation, www.americantower.com. prepared

by call CEO; Rod Executive I'm our our CFO President, and Vondran, today on President Steve joined and Smith, Vice the and and Treasurer.

will for your Following call our questions. the prepared open up remarks, we

risks involve and our that Examples Before future we capital a will forward-looking include number statements remind allocation of future our statements begin, these comments that regarding growth, uncertainties. contain of you and expectations XXXX performance. I'll our operating including outlook,

collections of regarding and expectations impacts on not of that the closing our our and of sale are the in other any the expectations Our matters historical India statements expected business India facts. such for business, sale our

that statements. affect could from should factors forward-looking these cause You results in and those to actual certain aware differ materially the in future be may expressed us

to filings the this that factors XX-K Such Form SEC. press other we the set urge upcoming these reflect subsequent to factors our We and to you call make and factors include information the XX, circumstances. ended forth remind in XXXX, will we set forth those you December that release, in this the be obligation year earnings for morning's with in no in risk undertake consider update contained or events

to call turn I'll that, over the With Steve.

of company American leadership last Thanks, I like it's honor him to Tom years an over thanks thank the an step privilege exceptional congratulate Adam, everyone saying on his CEO of by XX for Tower. I'd to and career. start and at to the the to today. role the and joining want Bartlett for a call into

to many recent I've together excited in telling X have that opportunity success of big date. and I'm more In on to the I've I been and our XX-plus that. of stakeholders, reasons I to weeks, look key to been I company. are tremendous we've customers fill to my achieved with all the investors continuing by shoes that today years our forward for build recognize employees, ahead certainly There the

in suggests still technology digital going mobility to infrastructure early a a and for future. we're computing-driven stages wave First, the of distributed the be higher demand that foreseeable is

as X we decades global developing this leading interconnection with spent backbone wave. of and portfolio power last serve the real the a Second, platforms that estate, core will

business and built the and our we're best-in-class believe to tower to now platforms center the differentiated unique positioned I value provide we've portfolio. To quality going scaled, growth, for our deliver that data harvest highest for returns in benefits This securing key accretive profitability operational market and of committed to is and growth most on for secular in geographies maximize means where it demand by means securing opportunities as risks trends -- it scale owning Equally important and potential investing in development downside well and the organic leaders, sustained attractive minimize maintaining leading growth. to XXXX we're be operating a on assets as long-term that the and opportunity, attracting afforded beyond. we're with contract customers in-market few begin, To in our and structures investors. zeroing areas signal the capabilities.

service from power performance by CPI-linked was ACO also drove these programs. International million new as XG MLAs and comprehensive of our contributions from terms investment the U.S. growth in and colocation the business, driven and Canada play amendment record benefits record of cycle factors and our clear saw contribution We out a Tower roughly organic escalator business critical further and XXXX. growth supported a growth. In $XXX our in by and build-to-suit

consecutive second saw new business. business interconnection CoreSite differentiated our of signed Furthermore, year record

maximizing global on same focus actively our and continue to we'll and development time, going At that X select still assess across is continue apply underwriting to revenue over organic our our of and original deployment capital allocation thesis growth ahead opportunities. supportive through the to complement learned we decisions challenge ensure what the generation see decades going we've our assets existing we're to across the footprint opportunity plans incremental forward. our forward, Going last prior our

that portfolio focused premium Ultimately, deliver line we're sustained proper around global a a market. an efficient is top segue high-quality, That's exposure operating discipline, mix the rates delivering invested of model of area expansion commands supported increasing which returns the conversion the and a of to on margin profitability operating capital. structure in that on centered can cost by operating next most drives provides outsized focus, good growth into and and the risk

of Our further infrastructure investing cost model. We're host regional per on also operating scale opportunity track we're global to inherent in record present and direct in site, regional our bring improve implementation applications and an and cost down long to and operations leverage deployment experimentation and operating the the time-efficient make neutral few a our to initiatives energy accelerating cost greater create technologies to operations in maintenance yields just a generation, improved other that examples. bring precision renewable more equipment and lower AI cycle on

see basis XX SG&A, supporting you'll XXXX. cost top in line cash in an reduction overhead in SG&A adjusted point and property a it a EBITDA combined basis What our point our since healthy XXX targeting expansion which, margin costs, approximately as percentage cash revenue XXXX in reduction we're with of is growth as guidance,

cost forward. and is profitability algorithm Continued driving improvement to to in be cornerstone our going going a both structure our

past on sheet strategic a balance today Next, as and as our working asset. highlighted to reinforce calls, we're further we've

going core at strategy, to the change. of Our rating and is credit that's our investment-grade not

capital may the cycle I market access believe last of strategic even over importance and of cost more advantages fact, decade. than In be this they were in

is flexibility evolving capital to environment. we will Rob progress XXXX. this beyond, made going program look further, resiliency and the strengthening sheet allocation in we and As And towards substantial economic XXXX balance on elaborate prioritize as to our in

like XXXX, approval. to board on overall of hold executing our In our relatively accelerate flexibility. achieving strategic our we'll turn, intensity gross capital we'll with savings to initiatives to reducing Together financial balance enhance a debt the leverage net subject reduction prioritize across cost pathway flat target and the business, the and dividend other in

market. while investment have highlighted be M&A not in company, position the today, we've of come meet that to our relevant criteria As priority to a a past, in and portfolios want is as strength a when do the we strategically

highest a In a between At our platforms our by U.S. American capital Tower, internal investing allocate our of rates and our expand with We tower well ability international continue center to businesses to see and competitive CoreSite as we'll the opportunities this existing program, CapEx distinct risk-adjusted return. the developed unique tower as U.S.-based we've advantage. as data selecting platform.

in generate While over robust program demand consecutive development nimble our business as In assets in to and ongoing our our make cash share record the footprint, flow model to time, conditions toward within of new and continue our including of building and years us the to capital Europe view drive the we to markets. resulted projects. going mid-teens the out our the a best near development CapEx X is CoreSite trends flexibility which be the expected XXXX, expanding in the we to responsive for leasing exposure capital there, allocation tower same larger where the decisions into U.S. outlook allow stabilized developed have we're returns are growing that term as market for means

risks in We're balancing FX decline This volumes we've our footprint, in compared X,XXX new in and as our does certain represent volatility the XXXX markets. build in a out Africa. international expectation particularly XXXX, the seen to around recently primarily market tower including assess emerging sites, we to

grow market tower key partnering portfolio growth continue component globally However, as our to algorithm. to I that want our leaders reiterate to of we long-term see with a

months the allocation Simply put, out the bar the required have over and reflected the in seen that the we've macroeconomic capital discipline our it sheet expectations raised seeing environment we're when to XXXX. global priorities, in returns. And for and flexibility XX balance changes you're comes rolling last

I've talked globe can global for customers, the and is industry. today, focus world and serve. of the business. and foundational Everything across we throughout I've investors and by going dedication to heard impressed Finally, over are make the teams attracting we're our the performance around and our met developing, weeks, teams our organization so with hinge the strategy and recent I've rewarding we the the the impact and in about our on people from the the been of to talent communities and continue strengthening best

demand business Against opportunity compelling we're want supporting to reiterate Tower. and balance there's believe to platforms, from sheet closing, truly Evolving trends, continue teams to trends dense, and tremendous discipline low present to ahead for leading for I latency leverage the are my capital I going center growth more opportunities global and ubiquitous, those that the networks. dedicated outset. technology tower In American drive distributed value differentiated data our proposition shareholders. and strength, for allocation a return our comments

our I'll XXXX that, outlook. With results to discuss the XXXX Rod to over hand and call

joining call. Thanks, Steve. Good today's thank and morning, you for

results expectations past achievements highlight into from key a year. dive I Before the few XXXX, and our XXXX our financial for will I

guidance a year attributable a share First, outlook strong full comfortably property adjusted year initial and XXXX exceeding revenue, with midpoints XXXX our our results across closed with fourth per successful we quarter, a AFFO prior EBITDA ago. beating from

resulting in continued by diverse as over our an to consolidated billings organic demand anchored XXXX. portfolio was growth, performance compared year, X% XXX the of asset for acceleration global For basis points over tenant

each amendment roughly and in and Canada our With U.S. international million and $XXX colocation growth million, record of nearly respectively. $XXX delivering segments

new recently, record emerging signed another marked use business diverse cases. technologies, we digital year Additionally, workloads more including for supporting across of in CoreSite, AI transformation

model our cash and with in cost in inherent I'll EBITDA attractive year-over-year focus margin adjusted a operating expansion, leverage combined benefits moment. the onetime on which the management, Furthermore, certain touch resulted in on tower

through strengthen and sheet of to continue we in rate our balance billion fixed the debt. approximately issuance Second, successful $X deleveraging organic

to extended the quarter year. of to Closing over leverage of net debt exposure on XX% the Xx X from average meet with start debt leverage of As net by to we've end end XXXX. the our to X.Xx, a are our upper the result XXXX and floating track of our stack, we rate of the actions, than at the maturity down our of total goal XX% less fourth reduced

our a transaction reaching earnings review We will we Poland enhances divestitures of risk believe fiber American positions the refer year. high-quality Tower ATC earlier as and definitive strategic our India business and in with Brookfield, over term. India agreement the concluded we sustained growth this which together this the the to long XXXX XXX% Finally, to global portfolio sell to for India mix Mexico sale. and profile of

our details results. year full discuss of the XXXX let's Now

nearly basis, tenant X. with over Turning was of in property growth churn. X% Full to growth X.X%, nearly Slide by construction of was on billings revenue FX-neutral primarily Canada, X.X% growth the with billings organic growth excluding property In was billings complemented growth and international over X%, year X,XXX our an tenant and States X% tenant new Sprint organic X.X% markets. X.X% the of or builds, United consolidated revenue

grew revenue each X.X%, property tenant international billings prior of our meeting exceeding outlook. growth X%, Our segment including by with or over organic

the in prior fourth with of million able we collections million. outlook, closing contributing our versus with in quarter, Additionally, were to in revenue associated revenue reserve customer with year of $XX $XX approximately the customer a to India, net approximately outperformance collections reserves prior India associated reverse

and year-over-year approximately another center growth total representing Finally, year contributed business. signed I $XXX our mentioned as to our million earlier, X%, delivering of record XXXX, new segment revenue property of nearly data in

basis nearly Adjusted combined XX $X strong basis, over FX-neutral a cash an and to adjusted EBITDA revenue on. billion. approximately onetime the On year-over-year focus improved management X% XX.X%, basis year-over-year property EBITDA Moving XXX primarily a with certain cost SG&A or points organic on as consolidated approximately with margins driven X.X% by over around grew to of business, percent to points cash, keen on X%. growth total benefits throughout a down basis

absorbed basis Moving approximately grew from and X% Growth attributable on and by impacts X%, per X% AFFO per right AFFO attributable share X% over side and another the slide, of negative a the costs of in financing FX. to share respectively.

and I assumptions. for XXXX, before the our start Now I by details summarizing will discuss a key highlights of outlook few

First, balance a are we to and and by sheet. operating Steve highest quality supported committed owning as portfolio strong mentioned, the

to and we mind, on focused diverse growth conversion continuing while taking assets, drive costs the shortly. to subject accelerate dividend maximize organic get sheet, our business. further for top and approval, with financial capital strengthen profitability across our collective pathway Board in a a to flat the of detail in commitment of to actions result, of that more Together maximizing compared growth recurring portfolio relatively our as line by flow compelling and row a balance maintaining XXXX the payout to reducing aggregate second flexibility we XXXX, cash as We'll believe will our in With into year are growth, optionality. intensity out these

contribution to we a adjusted for the representing outlook, and regulatory customary over in the $XXX second year common full million of occurring AMT anticipate we of AFFO assuming $XXX Next, which stockholders. property to attributable India the million are in sale, conditions and EBITDA India $X.XX of business half of revenue XXXX, subject Upon billion our closing during approval. unlevered

revise the then incorporate outlook will We transaction. our assumptions to

would XXXX, million October XX presented contributions a outlook have $XXX in the outlook to revenue for $XX and included quarter, your anticipate EBITDA, to property a our reference, closing respectively. we X, we midpoints assuming on million transparency, earnings and India added of Slide by For shows this which for reduction adjusted presentation, potential our

Furthermore, share, incremental $XX million $X.XX AFFO we year, in down included the to to for a would reduction reserves of reduction estimate to existing Also AFFO revenue attributable assumes approximately proceeds within share. which $X.XX closing translating India an segment, are per full anticipated the have pay we at attributable to indebtedness. approximately per used

Although in a believe XXXX, it's of time. realized point the encouraged the half we collection take by second to we conservative prudent this results at view in are positive

XXXX assumptions note assumed maturities. Additionally, cost to refinancing floating our XXXX our interest and curve debt rate assumptions, our the rate including senior for the we've rate forward of support

Lastly, FX revenue, compared as EBITDA negative attributable impact $XX our property million reflects estimated side, on on XXX and for million of translational for the outlook adjusted $XXX million to AFFO XXXX.

into the let's that, numbers. dive With

an year-over-year Slide of At the and property we midpoint of increase basis. $XX.X X. X% than X% revenue of representing outlook, an billion, over greater to on FX-neutral on Moving expect the details our total

FX growth Our our pass-through. segment and includes $XXX guide international in revenue of cash and $XXX Canada excluding million in regions, million around of the U.S. growth neutral

in line We also XX% headwind noncash million includes of the revenue XXXX, $XX of growth demonstrating expect million growth data $XXX straight in $XX centers increase in revenue Property straight revenue an step-down cash by X% line. or million to roughly approximately also to approximately contribute nearly year-over-year, excluding partially in offset impacts growth pass-through. approximately

of million earlier remarks, mentioned anticipate property we FX nearly $XXX revenue X% consolidated I as or my an headwind Lastly, in to growth.

X. Turning to Slide

XXXX Canada growth Sprint solid of organic another and from segments. amendment another expect approximately record from reflecting million still higher healthy X.X% and of We contributions than This the achievement XXXX colocation U.S. million, in the XXXX year $XXX of International U.S. to excluding X%, $XXX of XX% step our and our expected and year we In organic our though expectation to includes Canada, level approximately down anticipate average. growth contributions churn. growth tenant or billings

This churn XXXX. offset strong a we to around represent from X%, approximately X%, continue growth largest XX%. contributions X%, would Internationally, growth colocation billings includes momentum after with to tenant X% Africa, XX% partially impacts to from organic along of the starting of amendment expected of with improvement expect year-over-year by with a XXXX escalator which notable consolidation carrier incurring in and of

to Turning X%. XXXX be billings is organic tenant expected X% growth Europe. to to

at stand Churn an X%, and remain escalators XXXX, X% approximately On is to at to tenant churn as around messaging, front, X%. organic growth with by the activity while amendment approximately in as offset down we previous growth with the Latin and XXXX, acceleration consistent to from to around of oil for expected consistent billings amendment roughly we X% from X%, to is to growth as ] consistent at expect primarily our contributions In due to remain escalators churn compared America, will colocation Brazil. [ anticipate low of colocation and relatively X% approximately step compared elevated XXXX X%. year of X%,

including growth of of colocation Finally, tenant and are X.X% X%. in escalators in billings churn growth approximately XXXX, X.X%, from around guiding we Asia to approximately organic X% roughly and amendment Pacific

X% the less a on associated midpoint I approximately XXXX, over the $XX X% by an outlook, X. while trends with expect of Moving expansion FX-neutral margin to to basis, EBITDA X.X% negative of than Slide as adjusted revenue straight earlier, At impact we and growth growth absorbing we're our of strong of net cash line. SG&A approximately million EBITDA basis reduce planning cash contributing mentioned adjusted around XX Complementing compared to to on points.

from carrier year. for expectation of gross Additionally, a ramp-up the in U.S. year-over-year in outlook second our margin $XX services with approximately business includes the in our half growth the cadence, an activity quarterly million suggesting

XX. Slide to Turning

grow attributable together approximately in basis. minority maintenance and growth on AFFO $XX.XX and Growth in adjustments and a partially is to with EBITDA in year-over-year our approximately and taxes, data in expect per costs center FX-neutral cash X.X% higher financing cash an due X% adjusted offset increase an share We CapEx by JVs. to European reduction interest to

common and per the quarter third returns. the XXXX the growth $X.XX Moving XXXX on earnings to the I'll XXXX earnings approximately spending basis we growth, modest priorities continue support operational for share. capital of channel efficiency, maintaining $X organic In upcoming balance attractive increase share prioritizing our sheet and billion, on on sheet with messaging annual per sustainable a call, will that and Slide strength, and into dividend most risk assumes capital plan our on representing year. reducing focus distribution and Consistent for our while plans review XX. an risk-adjusted discretionary quality annual projects an of earnings yield XXXX, to balance to

declared down step XXXX, from Board also quarter distribute suggest of to the first approval. our $X.XX onetime dividend year, each fourth the to of $X.XX evenly the quarter across of sequential XXXX subject to quarter We dividend all in a would expect which

billion around of XX% expect CapEx, we will be $X.X in addition, which to In discretionary. deploy

Steve record and view appropriate the center targeted yields our across ability In As replenish shareholders. distinct advantage XXXX, exposure his sellable this CapEx attractive towards with data as remarks, seek deployments competitive in while increasing in capacity, our for increasing in our the development drive XXXX and drive our assets and million developed existing be to This XXXX, we highlighted a sold for $XXX flexibility maintain our CoreSite the of range mid-teens. campuses allocation to to of to for markets. means levels we attractive a includes and returns options and geographies of Tower spend to continuing CapEx American stabilized capacity sustained

The balance of year another of volumes assumes CapEx support development internationally, which the construction of new sites will spend solid at the the build X,XXX midpoint.

end right growth, the to we slide, management side and of augmented range business of earlier, mentioned strengthening sheet made I the by the through we XXXX the towards balance discipline anticipate allocation cost X significant recurring our progress combined our with leverage Xx net our year-end. of strategic and as upper with to in plans, Moving meeting capital

Our investment-grade enhancing steadfast to balance unchanged. remains financial commitment and flexibility sheet maintaining strength our credit and rating

for the already position successful balance global and by continued augmented industry. to infrastructure our and growth XX enhances our execution initiatives strategic demonstrate initiatives in summary, driving XXXX, in and in resiliency operational a strong enhancing business Slide foundation of efficiency strong core to these Turning believe of our quality XXXX our strengthening solid global provides leader a as aimed communications at earnings, We and sheet.

to on shareholders well our challenges years are ahead, positioned to adapt for opportunities, we come. compelling to risk-adjusted capitalize Looking deliver to returns and

that, we operator, for line up can With the open questions.

Stanley. Your from from Morgan [Operator first Flannery Simon of comes question the line Instructions]

here. through the where portfolio initial appreciate the developed doesn't in up Nigeria, and where very on each priorities. some looking were back How thinking is mentioned challenged around several term. markets sort markets some more of challenging do Rod come opportunity your or markets a you think had Is you and at to Any near sort want process I'm in I the new medium really scale formally beyond there business you're that Or of are to And Great. that business? in fits point the highest those role that we've that? best and a kind noted this in markets? CapEx on you times thinking quality know more of data domestically to these congrats and where about wanted existing about internationally, you comments, like just was center of what color How the of matters? that? your again, you obviously going huge what here. And it FX And either the I making. investing certainly, And comments review that. campuses about the environment what I then for and going Steve, more do a

in for of Well, the there. take Sure. a that Simon. Thanks pieces good I'll thanks, wishes couple here.

if a out challenge to what the and and all we choice we quality mean highest a to we or both second And our to continue market business can capital is So constantly get meet And ongoing all business, would and the How is in by our our of the reassessing criteria. allocation the and it with we're fix what And capital rechallenging then we about the start is capital into. past say is want portfolio. by to I'll we we say, look criteria. portfolios, do abroad what investment domestically meet that do a made thing do mean they it there's to in those at still we allocation that? can first put decisions

FX issues portfolio, we talk look a us translation saying of we're you what continue acquired we my the raise terms is look market Nigeria, caused we assumptions at about have and in when bar that did including quality the mention that in our best like I macroeconomic that returns. if found to some of to the comments there, conditions, the So at

like devaluation, for we're contractual looking the we and shaping class, protections the assets, that portfolio about structures get demand asset talk for we an the that. market, can for we contract we're when the the at FX So types in what of something portfolio, have the place,

the there's we're exit review beyond what having it clear already to terms choose did point going talked to for those us those. strategic But did We very because India. that in to Mexico said We've report going continue we of we've make in that any market. did that to to and other that, nothing Poland wasn't changes about scale look been we to today there's And and Now in we'll nothing we would to to say near businesses I on that exit at have term. the fiber. portfolio assessments we're exit make

complement second we going And The important appropriate question, forward. there. continue the emerging time there will we think that to developed of I strategy think believe a portfolio growth think elongate level still our market the algorithm risk we market you our asked about us market our to of do was curve is that how part Nigeria, having and allow like an growth to over

mindful capital for decisions challenges you're CapEx of some are And some that versus seeing We there markets rotating discretionary our we're play of are that allocation that the some developed as seeing near-term markets. out there. our emerging we're

we've to our effect our in of market more decrease also exposure India emerging continue markets divesting emerging markets, of will developed the our will that exposure, We reducing inside market allocate emerging Europe. seen versus development recent CapEx we U.S., our that margin had market acquisitions out also reduce You've to exposure. in done. the inorganic years did all in of the And some those in with Telsius the U.S., play CoreSite if

a bit seeing it. play we're is portfolio do in response is portfolio our to conditions environment thing at So that and is any what the little which us rebalance look there rebalancing seeing, in to out to the you're we think appropriate macroeconomic the essentially

into highest back that quality so And leads portfolio. that

you think development existing and campuses. second use business we a projects on look sold of are if of returns And year. mid-teens. years CoreSite now, it's you there? in we I leasing, very about replenish need on of those and XX% what how our capital. The most we're Again, the you we've our we question focused of we as campuses. has Right that our than end they're development, expanding stabilized record X at capacity performed, looking that focused is to had the was around had have And good the think pre-leased And in the if of more our in have CapEx at the

you And really business, reduces development, time so of mid-teens is period that prevalent all takes the that those CoreSite about think the and and as something pre-leasing in it that returns. risk that pre-leasing pre-acquisition to to shortens wasn't it when stabilized that get

so us you're seeing that's some there do bit. U.S. investment the a And why in markets Tier We up the evaluate X pick

Miami, on. But the if small not priority that's a buy if tenant for a we there going You later a saw into it's give might continue can turn more to at to a huge we'll data material campus that us anchor want look in going an we us return good of us center for in into tuck-ins and it. And us. sort to we whether are have think do it U.S.

have this those to opportunities. consider the to into today. data there's point. larger customers of But than I You're footprint would a put We centers, international near do say at the for capital to respect a love not we're And anything to us do we'll us something leaning would going not U.S. that's that. have going lot see to nothing term? we that And that do today into expansion point in with we're that outside to in

that But as a contract I you briefly others would look comments just for in we I on structures know mentioned. this, know Steve but reminder, Nigeria, here. in Nigeria the complement maybe Steve's to Simon, also just protect ourselves

actually XX% pegged as reminder, that revenue just in got property which about Nigeria. in power, revenue, a we've is So of U.S. to million through. pricing. that passed Much $XXX of is is

the we So risk pass-through those on avoid numbers. FX

annually and leasing is that adjusts that the $XXX revenue pegged of to the the roughly U.S. dollar. XX% XX% million is of

the again, protected FX That from exposed we that fluctuations. the returns, revenue or the then the that's look of We be sheltered into for that's effect the can build FX would And the others volatility. So our of like although Nigeria with catches Fisher term, and a directly Nigeria in long said, we in think process the actually of to volatile, models. XX% FX leaves that about our short over in be rates do volatility market underwriting risk-adjusted term. course, FX

comes Michael Your Rollins line from the Citi. next from of question

Congrats on you official this again, Two topics transition. morning. Steve, for the

on And are some include development year? services can within levels in leasing the this half or whether activity First, to guidance? improving the to the can as the to the share you're decision contributing second environment seeing not an and you update your activity any points that you carrier share domestic changes during data early of

then just of the normalize AMT And organic portfolio a return what to level map that is of to second can the that long topic, it How growth there? And organic growth? is take LatAm does level to? road what for get its

Thanks, Michael. there. wishes Thanks for the well

with start about your U.S. question first the I'll So

predicting X.X%. we that know, So have our largely approximately And are we as MLAs our that's in comprehensive guidance carriers. is OTBG the by with U.S. our for you underwritten

rolled that X comprehensive insulation cadence that have we degree our do there. We off of have deployment of in from MLAs you portion that of the see carrier MLA. its has variability a of big So the X

little bit more gone a a And so an of [indiscernible]. to that's

it some So are application an carriers base would already in that spread at levels that's increase in seen What like conversations to U.S. unloaded this the uptick we you'll we're activity been year the year, increase a last a of in end a agreement. seeing through from in more activity. we around the modest are seeing but see the low is off pretty seeing comprehensive activity, in we've have

our led applications, we're happens But year. RF and there's our that's and figure conversation especially to do that's business activity, lot loaded, out to to design services of our conversation, our degree have for in believe what's going back-end services next uptick an for what sheets to increasing to before and on trying business, us there's around they're guidance their year. our And that. we that led And doing of to that front probably the process inquiry a carriers. with of with respect end get they're an when we a the engaged And the the

the lower construction business. That's guide, contractors that right not about I little construction and our over Now at do you it that business, our guide. out resources the grown a we would on out in we do third-party if services aggressively result And point previously. something when a That's it's think work. the don't more of I a to lean bit you that having do want than do past. have you we've And We pockets where services point that to services can in nationwide. that margin bit little look

our there in So that there that we pretty quickly demand variabilities we if can costs see cut are the there.

a of X and services. So that's not customers, it's carrier we our that the it things us, to again, little of But that is earns by that's bit seeing in reflected mix value services it's and more us higher construction huge X for by a business think margin business. we're targeted region, adds a but

billings. on question the LatAm the tenant hit organic I'll Michael,

of at. kind just we're me let recap a where little So bit

of for X% tenant and guide steady growth. XXXX activity co-location X%. organic Our about with comes around That billings level of amendment pretty a is

from are region. the That's benefiting X%. across escalators that inflation are also tied We local to at about the

you through we've the America we couple of Latin churn X%. that last single worked growth digits, in We've churn in have years. events So through the of in, for over upper coming X% in gross in in had worked Telefonica XXXX. down Mexico. a We the churn Noticeably also do XXXX, have couple that

that. I think you're well aware of

is drivers in the primary the in oil of Brazil. XXXX the of churn One churn

churn X% XXXX. is come oil half we're almost through that So the it in to going of assuming is that churn, of

off $XX about for oil up XXXX. million that in of coming That's ends [ ] billings

churn through. event, that rolls through in a I too years churn. normalized And years. watch look to of mid it and the for about we've gone that how been there. what's at digits get we through return market to really yes, do the to that in talk the be to and of churn 'XX is not more a That's reducing couple to And going before some will and X billings consolidation we want organic get growth probably We churn growth but beyond, few upper the that overall sort away expect rate. through see So to it's mid-single the persist but oil much our tenant more to

But activity level escalations from and once we We do colocation get way ourselves as good to of the We contracts a through protect the that, inflation. from we well. amendment written. steady our do benefit volatility are see FX tied some

Your next question comes of from the line of America. David Barden from Bank

if two, I guess, I could.

peers, we're be second that for from year the higher of maybe from Tower point the what different XXXX front-end could that half Steve, yesterday heard First, American hearing is maybe into the than a visibility the getting the to going we slower. question be better and which than is that activity about of jumping slower of second might be the I'm I half of biggest year into back is levels think maybe just the the XXXX part off X year your more what loaded is

that you helpful, that relationships, couple half might would So of MLAs people very of have last in some the differences of to we're maybe et maybe bit some activity little about the cetera, don't reconcile between could think, kind kind a level second for the talk be DISH your be of I you the hearing conviction higher, that can levels what of days. others

And all then the details question, around Rod. for you second the India. Thank

the levered share between the AFFO guide help for for you're and share. unlevered about will you've back per have gets in to in that I in out out and that the some But the in level the people, got trying kind back Slide the you quarter XXXX thinking $X.XX XX, really of think order year. the are I are get surprised understand you people see number Could were of set per text, fourth a to unlevered an share. for X $X.XX, in pulling that that the India think, year full $X.XX numbers guide, be to us the you per difference a around to number part we quarter. what

first with Okay. I'll growth. the start question, U.S. and we'll talk the about

So our that would revenue extent. result MLAs our decoupled of is point comprehensive as to the of I out from activity just a some levels that

signed degree it of estimations the fact forward that we And there's there. is either OTBG last metric given and because it's this It's trailing So it's XX-month was I locked-in commencing our because in, carries business of just year. a year, a comprehensive locked carryover MLAs the a large of it's leasing signed tough, the part number or else's of have is our a revenue to rental little activity. growth part new us someone level think comparing bit of

of better we said The services past, brought activity business. we've we a the couple take where to predict up quite exactly is it had for to analog our land. you're year, bit. it's as guidance A And in ago, years to hard notoriously Last going down.

we're also activity can what best levels providing some of be market-driven. more is given the it So estimate seeing, our of we're but

a So more it given particular activity service performing that be may that we're ubiquitous that's how market in worked. versus of some activity has

of you're conversation business and ala with second bit But to in a a you have that that of activity do us the before half We uptick services there believe driving new an that if do year. lease, sign that about of a make environment. an customers carte quite work the see general activity, as think you service from the be actually levels service the you uptick in our will

So it that's that in just is our come believe. growth and day, or largely end confident in, locked but through the our will the we timing feel belief portion there. is revenue in of in, not we're be the the could referencing that cadence, rental locked we But growth property at

a side, that that's continuing on and we what to services activity on And led that the the in we'll ramp believe see guide that.

here. David, Rod

there. a Regarding points India, of couple just

be for basis to also close up is going just you right? what of not the closing the by the being dates, XXXX. really in see so that through but Commission the you you And So in the to full on quarterly figure a for expect reviewed in Page We out that India. a process against XX, India, variety transaction of impact second we're may of kind the year, Competition the help breakdown give half we it's

that of interested lawyers approval course, well kind in of India, local process. proper of -- the kind lawyers that's we team, we doing parties as as around feel and U.S. the reviewed pretty So action with India good the our diligence about local there. process gating and in within local with advisers, with And based, that

the the be. year, do we it sure and said, that closed all but not expect be we're to date would With approved what in half exactly of second the

at the rate, take EBITDA billion for have quarter. year, Essentially, breaks billion million year, about that from is $X the $X.X got $X.XX to the see pay $X.XX want you $X.X range India the at under difference is kind to at that interest in -- you can the we've AFFO again, our quarterly And at sale, $X.XX you it you'd would the just look -- guide $XXX adjusted $XXX the ability terms is that but basis wanted of full AFFO unlevered about roughly to property to the [ look give the kind we assumption debt or days where ] so give debt at quarter. On that know the we by dilution down is the million. as to potential progress in the and and revenue not X% so, the we maybe So of proceeds that what for through can a in revolving down dilution unlevered on per these that in we way of year, I from us between breakdown billion approximately. quarterly you of up revolving quarter the a

down the really The that is for paying debt, down -- $X.XX into towards quarter dilution that year. put between and that's those per math differential You the proceeds David. or $X.XX that that brings and that simple, $X.XX the

of Raymond the from from next James. question line Rick Prentiss comes Your

you by allocation Steve, I raising the and details. giving appreciate us capital refinement all the good your view

would there got from or about concentration I've David's their Brookfield Rod, required heard There level is at the any towers be in question there obviously marketplace. divestitures? have some about there commission how First competitive on India. Have many you question the comfort anything as is, they far as piggybacking

for Yes, the question. Rick, thanks

directly confident So we've I process. fair certainly the of we're certainly but to the We're get that confident, up. to Commission, that divestitures discussions. pretty diligence. contemplated done that very agreement we want level not could approved. will through. There the We within through talked detailed into was working it don't gets Competition sure where amount We're be haven't some a work end of

there that us overly. concern nothing would So

the say, some towers other is view there. kind to the And I also the -- competition does is would we have way it Brookfield is way run they part friendly, where we these plan that of

transaction want but I than that, half of it close go to the approved ability the So detail expect that to and in would the do second have be we would more don't into XXXX.

appreciate Okay. expect you kind X versus that you're before can then comments And talks applications that. leasing because you still then getting in kind of analyses the the Steve, financials? I having of service decouple X, And Is revenue others. then the color time of months us you really it revenue from from these on shows up a little the the give pacing of it

new to in million activity think, $XXX you Canada. of U.S., leasing million said $XXX I Rod,

different time give exact different because Rick, customers. it's an by to Sure. line, It's hard

you I site, to of revenue It referred get the what So variability you. with and honest how an on on carte the are urgent there a up be a basis, there. la application there's really call it, from to X on customer depends XX kind to to showing from say they would to days months

colocation, In would period. major at of out relatively leases the the contribution the terms MLAs I comprehensive from just and portion of point the expired the of new last flat we year. of that had cadence our X for across the it's end Again,

of loading you that front-end in rid some previous years. of so saw got And that the

be will more evenly it So this year. distributed

you to we raise Help much be it paid year. raise cited thought have quarter process dividend evenly you one, this 'XX 'XX if a flat on could so spread Rod, in the why in while dividend would Okay. to last what keeping And that lot, while the the $X.XX or that because out the from in get down flat annually. 'XX, a the the -- optically that pull XX down for people why fourth what XQ XQ there's was probability keeping the fairly understand $X.XX, dividend the question versus it over maybe go 'XX paid

the the we certain that, number step a the Yes. up we in were have Rick, that the we problem to shareholders have If flat step XXXX. wouldn't when And we dividend we committed I'll aware the had our take -- had take hold to with dividend to have on and that hit in QX. hold decision decided flat a then to But lightly X. the committed didn't optics QX to Look, QX, it XXXX. we down we didn't in we of would then to. from

on we've very think clear so it And trying telegraphed. And we we do And QX then. since reason a very this been talked was onetime about and We're be our happening, like and to has what kept about is say it to there. call to that's this do, the what we event. we we're going well

agree say And do -- handle the to it not it's to going we what do we that the so dividend flat. ideal wasn't and but situation, we're wanted

And good I to well. do. going year do think going say through evenly probably Do they're spread is what the they as

So Steve, running appreciate about all how the the seat in company. color you're on is insightful sitting very the

line from the from Eric of comes question next Your Luebchow Wells Fargo.

of investing and markets more deleveraging made Steve, top I appreciate clear it priority. you so the question. pretty a in developed is year this kind

a use consolidation the opportunities as of in right you out Europe. there could potential about now maybe I So capital? environment M&A are there know talk some

area And Rod. of time? X then an you that's expansion if for wondering over for Just

talked rates kind growth of of when years, we've longer to in you interest just could transaction, you update the a you've the you seen India Maybe can the double-digit impact changes rate. think aspirationally that think of some to term I do get AFFO and some with India getting the where recently? stripping from out noise coming of us the refinancings kind about in of

what's M&A in environment. between to We're continue portfolio. the talking across activity we multiples. the public a I'll Look, on private the So start M&A about dislocation going monitor and still seeing

that's that little criteria. investment the so market trading important of there And no today our X strategically that meet we're that's is portfolio bit think that that now. out a And would of there's reasons out we right

also of are that our is think target to but market opportunities they strategically very and One focused to down investment that advantage end make sure position criteria. range the on take to our to a high inorganic in if the important, reasons meet our bringing we're that to leverage we when of we're come of

something portfolios that that right point would in that would is we you I just are will be compelling. would trading that there to that future is But we find there's think be we we're in range So that nothing interested in. now, optimistic a the

Rod the for here. Thanks Eric, question.

a -- So just regarding AFFO let me hit points. couple couple growth, of of a

First, what I'll throughout at And of generically the that markets we as exposure for portfolio. we the kind hit with as kind of look growth emerging developed a Steve pleased as as well just diversity really we said, algorithm we're to that have the portfolio markets. have

-- X% growth We straightforward. the expect next next over pretty a includes from U.S. the at We will from couple And over growth remind think maybe in the Sprint non-U.S. good those the some that world those in this populated markets, for emerging be exposure of to largest our are and I properties algorithm basis points. there, organic there. really the years more time. more hundred algorithm. that to everyone is that and that infrastructure you is in we do churn do going have need having us of the would and But some look industries incremental growth investors really the roughly That few

not a single-digit, long of certainly over looking that's nice CoreSite we there. And with be at period maybe double-digit think upper returns. America over possible, from on average year, but from we very to time, rates which We're and time, expect growth Latin Africa every

well So course, you direct and driving margins. costs, as margin, end with that cost growth margin you EBITDA cost, expanded the rates SG&A And as reducing and gross move on higher of good. focus up down our P&L, both discipline looks very particularly at costs as managing with

to AFFO U.S. upper X% double-digit nicely. translate can that growth, does into down all we get you time that single-digit the by at. core X% side, growth That's So international, of kind pretty AFFO, what look

X% then in from headwind for VIL a year. XXXX It that so. and at FX. XXX I'll or point if additional came included an just around maybe basis financing we in just and look 'XX, per you point remind reserve share you at AFFO X% in for headwind in XXXX, percentage the growth full the And included

that the If growth business math you X%, around that do per guide kind single of is backwards, $XX.XX core us In getting underlying solidly to upper share. rate. XXXX, is digit the

Financing XXX headwinds is basis in points. about that

have into that's XXX you upper speaking, XXX single-digit we're about kind headwind FX and with basis the you're We India, point broadly well. core that growth. that headwind reserve, a And that and that's point up for basis a as seeing, volatility again, into the back of and getting about

markets of some churn emerging that core Sprint growth And in single-digit in I'll has -- higher-than-normal the well remind as that in you upper even the embedded that, U.S. as it churn the

on As we a FX our to level, is per items in go certainly through of even rates being able and line with at being the handle AFFO financing normal some modest AFFO in single-digit share growth and that, churn upper sight. more

the line question next Your from from Batya comes Levi of UBS.

this of write-down region? drove bit in a a year? of growth And talk talk your revenue scale more I about you how about And was about the you a for bit your -- a think there beyond in expectations Can in terms Can what little Spain. new think Europe leasing you that?

pick you Yes. it I'll Rod start with some can leasing up. trends,

the build-outs we're coverage So we MNOs to XG in seeing see we carriers. what by Europe the continue population Spain. substantial in Germany from and is do see And leading

kind of for resources time are but of and power In practices. permitting some other we've help with see best including of of good complexities the it's our pipeline there, company toward growth more that some made weighted But connections. that there. that utilizing dealing remains do in So delays to we market feel Germany, from parts to we We've colocations. everyone's the we and progress continuing solid, brought about work through with

our do we lines So some expect in there. time improvement

XG in they're There's So to markets. more and the expect colocation Europe. our continue through in little most see bulk we that's bit upgrades their would a what of driven to of activity

Batya, here. Rod

capital business original flow business in really I'd you also function discounted of was simply against transaction. on of So And also from Telsius of we Spain hitting the performing about impairment That a that regarding Spain, there Spain exclusively is a that $XX testing. of Spain legacy our no rate that saw There its that market our is was obviously million. a annual through had based the cost only up was I is the impairment terms to But cash about capital prior that as Europe million the acquisition. cost $XX put, of very metrics driven to the remind in would of the that, a model. market of in well you rising and function write-down add case. business impairment XXX% our milestones exclusively running business

of Bank. Matt Your from comes the next from question Deutsche line Niknam

and centers data on X X Just housekeeping.

big basis Rod, of of on what's is still little data as First, do that something long-term useful down really least the near that, And centers your your extend become towers, CoreSite sort year? the initially, evolving saw a customers a center term? data this I'm you the sense getting is lives bit on pervasive and D&A enterprises. of with of pretty the a rationale data then maybe that tower at or more acquisition edge to a potentially driving the guide micro changing for the use that more review part cases Or little decision I maybe D&A, step at, that's of maybe that of bit opportunity? conversations the in implied was and at the are if at becoming your builds assets? across how centers, more AI all, nature And for

that's on-prem environment. what start facility. is general, still the major people either hybrid or were That's who still enterprises demand still either with data CoreSite, we're And to question. I'll primarily by cloud moving In their driver. a driven native in So seeing cloud is cloud they center with or largely or

We pick in AI are applications facilities. seeing some had always we're inferencing facilities. targeting our our We've AI that up

So we are seeing demand there.

there. reducing overall markets, market leading pricing capacity comes us. for is AI it the opportunities to the favorable now, deployment, speaking, we're to we niche more supply will near-term Right with people overall do or broadly is When which of Edge markets. inferencing have that lead AI think to More in exploring particular, are the some interface in the is in opportunities trends AI that the

that You kind automotive may blog market have seen products. a update software an out facility partners to the them on X our of of working on with we're put in Edge their

have working particular. we're number POCs of are more on applications niche We in a partners that with that various

work little in our customers potential on our data at the micro But towers, continue the going meantime, customers there's look further out. think guys you base continue to something that's iterating of what a we the facilitating like. the to And bit centers or I about is AI just update we'll on if with still there. to talk to

our XX the that saw And Matt, purposes years closely we matching with increased you here up from here, realized life the of through was tower XX life the just years regarding books. simply adjustment life for book is a more to put, book our GAAP assets. essentially actual life what for that for running the it's numbers tower function the

that than assets longer a other that really than complicated these So last XX than realization lot nothing years. more a

books will forward. not that reflect our So going

the final Brandon line today KeyBanc. question comes from your And of from Nispel

spending that capital remaining inform that tower expansion around businesses pipeline, your pipeline that your XXXX, capital segments? with your imply development the -- spending imply at development decision and how does your does when to in segment does the your really, So look data pipeline, spending on beyond development we your center

record really portfolio that the Well, we the our in are that how it spending And see Sure. depends to this had sales to are. increasing and on there. what's the opportunities evolve the amount what we've of future year to development sales as is pipeline continue led what

also be of capital we have years' is there. structure our of kind that a a in partners guide that to where premature business. do in I would have and we So with CoreSite reinforce we me What capital it future that would for degree optionality have spending

choosing we And or for us. to capital us so capital risk thought see our there the in pipeline because development sell very and is was a some put better if optionality in we and somebody continue terms using capital how point, else's returns, this existing could our But to in, of much we you to expand that mid-teens low we're demand rise. we have at today, campuses, see stabilized we're achieving fine option

later bit and little we'll that a appropriate that what's and make appropriate XXXX into share at with guys we'll later, for the assessment So time. you

have here. optionality comments there going The would Rod only that Steve's of add to we forward. is full I kind Brandon, thing

higher alluded going beyond that think forward. this, going level XXXX the a we're data business in that but I that spending does to Steve of business in level capital investing us center million the fact or in $XXX XXXX to commit not

markets, a of markets, towers, year-to-year. certain towards to other towers capital developed centers, data go in towards not So amount countries, countries we emerging flexibility as deploy fair we have towards

so optionality for capital. our given decisions we globe rates that around best protect the return year. we will So optionality, the any make risk-adjusted looking can of always follow with be secure that to

Thank you, everybody, for joining today's call.

you free Investor questions, have feel any to follow-up Relations the team. you If out reach to please all. Thank

for using does Teleconference. your you Thank for your AT&T for and conference Ladies today. conclude and gentlemen, that participation

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