American Tower (AMT) 30 Apr 242024 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the American Tower First Quarter 2024 Earnings Conference Call.

As a reminder, today's conference call 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 and FP&A. Please go ahead, sir.

you American thank Earnings First and Call. Conference morning, for Tower's joining Quarter Good

a we and Treasurer. tab presentation, throughout posted our CFO the have We which and Steve by our remarks www.americantower.com. joined Vondran, the Executive call website, President, today our and will under Investor Smith, our Relations CEO; of President I'm on Rod prepared to refer Vice

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

contain remind impacts expectations of of allocation you that business. the expectations including that performance; that of sale in our our sale Before forward-looking we expected will risks closing the Examples our historical any statements outlook, and a comments uncertainties. not expectations begin, these on matters India our regarding of number our other capital I'll statements India and collections operating our of XXXX growth, involve our include for facts. such future are regarding and future business the statements and

Steve. no circumstances. With SEC. to call undertake urge subsequent events to we should consider materially reflect you and in in could release, to turn other and factors that, include forth the risk results in to risks time may earnings you cause morning's in in this actual aware described report future differ I'll the in affect information us the that Form documents those contained annual You XX-K those that forward-looking we We statements. Such set on and expressed set to to with these these subsequently factors filed update most certain press forth our this or from from over the factors call time remind be the factors recent obligation

to Thanks, everyone joining for Adam, today. thanks and

morning, upgrades application Europe. our to rollouts and our another demand mobile pipeline center you sequential see digital step this acceleration and trends growth are colocation we in compelling up U.S. tower an XG in are in the and contributing across driving transformation in network can data reported As results platforms. and amendment

continue resulted in another elevated in you'll growth more CoreSite, demand sales drive which and Africa hear business on. Solid to about quarter strong at later performance of retail demand

I in been and discussing our of [ handing key prism on spend to ] of strategy. factors our the critical and most Rod, expansion that operational call factors data the contract over few ability performance we drive to to in U.S. consumption our of monetize in growth minutes must the structures, ] alter determining have [ creation value multiple network performance focus a global [ evaluation ] investment Canada the our and believe that cycles. business quality, leading our have Before execution excellence long-term over ability and driven and the In assets particular, mobile our underpin asset tower

meaningful portfolios benefited transition high-quality select upon assets [ tower to the host the represent have portfolios, to independent of together and each provider success scale. target with of acquisition built which further Over ] of XX,XXX and been XX across high-quality a Canada. of primarily portfolios, expanded constructive we've sites networks through constructed the been design has have and which last carrier years, the acquisition tower of approximately developed the scaled methodically nationwide This nationwide and portfolio smaller G these neutral build-to-suit We've complemented portfolio U.S. operation. tuck-in sites, taken from and

creation. growth underwrite acquisition assets assets pursued we've selective create of understanding we've have that dynamics development, the and Our the a pursue to for tower result analysis and competition together to to chosen we've value accumulated the the our come insights consideration These aggressively operator. be structural our ability that our robust used reinforced due capabilities differentiated history and in location, rely the on of data to to are diligence internal insights highly standards the that asset not potential as and for we've

Canada has result corridors at to for portfolio [ factors towers asset market these allowing premier are together ] to at our structurally for as majority maximization believe by enabled in level high-quality the we significant come operating resulted in on best assets Notably, we of year with environments for a care points growth and new the generate transport which has where leading For reduce towers. travel following profit to assets. our by well capacity, profit our that's and on we U.S. overall expanded live and for deployments as designed value on the on believe cash Property and margins suburban speed vast [indiscernible] over operating in industry transaction since and geographically the cotenancy, focus Verizon costs can assets. Similarly, Americans example, in locations on and XXXX, assets skewed focusing rural our and redevelopment business creation segment basis our structural us return U.S. XXX on significant towards

to continue business driving at focus a profitability forward. level, increasing to U.S. see the further and business we As of efficiency going more path the on our we new asset and Canada

that operating through and service we focus customers in we our believe as of our our our on invested model we've value delivering technology and buildup efficiency offering. customers, the for of provide enhance product to exceptional Turning value a capabilities the

and asset thousands of time, year further in application Through customer conditions, resulted approved have customers, program, our land segment, for asset services Services the cycle reduced high governance customers. And investments development critical in investments business. Elsewhere our our shows asset into a customer our access attractive differentiated consistent significant quality and supporting our site in a revenue for factor automation we've for feedback of to experience of deployed our translates improve these tower that programs, protection which growth For to expanding protect the a times, realization combined upward management we've with we've our ease data trajectory in approach Over in emitted service performed advantages satisfaction, and of our platforms continuously providing achieved focused of ground of taken speed-to-market accelerated our on thousands at by data through internal and customer customers' our contracts overall our integrity. margin also offerings and operations, profitability the critical a that that's and integrity. supporting performance. decade, In over we return, last we've needs [indiscernible] the sites. rights mitigate rates assets capital transactions example,

customers our many American around and times, as creating Finally, long-term of has been to the said critical assets and and could potentially publicly the internally full most over last the at their the when capability is it come terms wins. short-term expense structure the important of are carrier manage knowing decades realizing and value. contract we assets approach [indiscernible] understanding even our only for our Perhaps Tower built value value we've we've X

time. for to flows create to our to creating skill these period our our compared result, lower significant framework operational at degree shareholder achieve translates a while customers growth in monetization self-performance, we've to a MLA for able this transaction operational growth guaranteed way and on by together, network focus of that agreements, excellence the leverage networks costs such this carrier of deployments. Taking representing to providing increasing lowering and a over value proposition we've visibility multiyear outstanding efficiencies that with all high-quality spending. contracts value carrier a providing the compelling facilitate by assets Clinically, consumption secure we're contracts seen quarter-to-quarter a when maximizes ebbs structures been corresponding seen data these that growth a and also from agreements, comprehensive on their their our wireless value insulation in sell-side yield administrative traditional innovative the in able we've and right MLA. Under of increases cost assets, over budgetary ownership total CapEx while developing mobile and As by as

mobile cycle investment smartphone during XG up consumption period, deploying over on were per XXXX for the than between per less from approximately data annually gigabytes average approximately $XX XG. of that X course carriers And average, the month billion megawatts $XX and from XXX to billion increased month. XXXX, Over

carrier on That cycle due month that we the XG brings roughly cycle cycle. CapEx our as the translated indicated early indications The as XXXX. we've activity seen to expectation. ground. investment compared for that see was a network subscriber. And actively our to we CapEx working having again the $XXX the to year. that long-term data customers average early during basis to as XXXX for XG approximately year-over-year we part in the significantly year-over-year colocation customers the the average billion the pipeline grow call, expectation increase conversations an This much step our Xx seen we the into segment underwritten in XG consuming well till subscribers application activity all early of out we XG XG moved in we see last up where with our deployment that mobile and are seen in of for XXXX we uptick to Services ] attributed upgrades exceeds [indiscernible] guidance. On in our reinforces today. expected rollouts eminent broader for our delivered to a As our smartphone contributions mobile We've line per and almost per growth last XG in to growth approximately expectations in as of key investment us a gigabytes on with in million data QX consumption average to saw teams playing once $XX continue today, [ which on year XX annual well

quarter was our of what in application the saw in segment XX% came And we than higher side, Services our contributions Specifically, on volume QX in of year. expectations. last for the QX ahead over internal

represented across volume was months. XX major March broad-based supported fact, customers. our over level In by It step-ups high the the U.S. trailing

we we've with million amendment $XXX growth thus strongest organic the there's approximately years in some year-over-year associated services the supports guidance million our say our that of contributions, including February, X.X% $XXX segment, to risk ] Now expectations one growth, [ while billings to colocation what expected only date. $XXX in pleased approximately provided seen far in XXXX I'm of level million we tenant to at revenue Services and

demand uniquely we for as So investments over in drive as tower compelling expected positioned to carrier portfolio continue forward, associated increasing and time. growth believe U.S. is mobile assets consumption our data driving move XG we increases our

proposition over that through the portfolio, a already attractive global across Further, leveraging by experience you expands and footprint, a value that today profit develop a to in incremental factors our converting Rod similar taking line monetize top well as are we to cost delivering outlook. and we're as differentiated and same rate our increasing on customers. Rod? while Importantly, that to at global QX well to it shareholder discuss leading positioned cash path global our I'll continued trends creates believe to updated our provide performance to focus efficiency value. With structure, that, operating turn our growth margins expertise

thank and you earnings to Steve. in optionality and the many highlighted beyond. attractive morning, initial to our our of for of give Thanks, by joining expectations XXXX XXXX place us rates exceeding of drive growth, to projects most yielding towards initiatives drive we various deploying trends metrics. Good our today's start strong, quality with profitability in shareholder risk-adjusted for and results, and performance confidence we ability with selectively key the across the capital and QX solid have to are returns positive expansion return, and a our call. margin off together and sustained Steve, discipline These

dive revised outlook, from XXXX results few the I'll and touch on highlights I into a Before our the quarter.

margin billings our and another of performance exceptional the in highlighted our CoreSite, signed that quarter growth cash reoccurring consolidated since including I a to discipline of year-over-year will resulting are which cost underpin XXXX. business moment. new highest tenant First, with organic we touch EBITDA of leasing X.X% at in Furthermore, quarter expansion, QX retail business again fundamentals strong its demonstrate strong continue on in QX adjusted

while Separately, anticipate into sale trends approximately proceeds in to tax continued withholdings Brookfield, QX, of ATC this accelerating of closing to us continue associated of reserved transaction, a total progress million India we including saw net the billion QX Next, in our to ] XXXX in on the earlier repatriation payments month. of we potential included $XXX India, reverse we previously allowing XXXX made $XX second with half million in of certain to revenue. approximately have back the the already [ U.S. the collection $X.X

to in our are backstop liquid we outstanding optionally our serving Additionally, purpose monetizing VIL towards the anticipated a asset transaction. as making executing the ahead debentures convertible issued debentures progress of closing of receivable the by intended India of balances.

towards from pay our We will use of to existing informed is the made continue India we incremental closing to indebtedness, to the progress anticipated as shareholders keep expect proceeds transaction. sale down our the

issuing at accessed successfully capital X.X%, proceeds billion the of $X.X we a used debt. senior Finally, with down last average weighted pay month, to in debt markets cost unsecured floating notes rate

at and property absorbing FX line, consolidated tenant property first organic noncash and growth revenue while X.X%, of the International XXXX was fluctuations, business headwinds. over of X.X% roughly U.S. America impacts or to end over improved growth growth in approximately Slide with termination over collections as billings churn. the year. was a the revenue basis points was the in which by India X% timing sale from Sprint a quarter. Property Canada offset of excluding or X% fees X.X% revenue the reduction of to Turning in revenue and excluding prior X%, X, line approximately Mexico partially QX currency XXX impact on our includes associated revenue roughly growth straight compared fiber includes straight which benefit X.X% of or the excluding Latin

in in demand versus X outperformance multi-cloud hybrid as last the a record initial the IT our years business commence plan over way. continues our signed the for of to meaningful strong XX.X% and data and begins architecture revenue increased backlog Finally, business and new continuing by center underwriting

segment, was was over tenant our the tenant X.X% Sprint strong Moving our guidance and absent and quarter growth year related of the to by X.X% expected, was below in slide, full side and billings right growth footprint. In billings slightly across consolidated supported as our X.X%. the U.S. organic Canada growth global demand churn, of X.X% organic

expect step contracted the of QX of growth rates commence supportive As we all our each and that expectation. would Sprint we tranche lap outlook in QX in commenced a modestly down elevated of before we churn to to QX roughly QX accelerate XXXX, XXXX final as churn X%

International colocation from and reflecting a and expected remain rate contribution an see growth, in drove from Africa. Europe acceleration of continuation Our CPI-linked tenant with X% down in Meanwhile, segment billings we of as X.X% another escalators. rates of X.X% XXXX in QX step in around organic moderation contributions amendments sequential elevated the strong

nearly points timing expense Turning reserve improved taking our X%, to XX impacts X. Adjusted Slide EBITDA or further to absorbing FX ongoing noncash focus. XX.X%, cost EBITDA margins points approximately and grew excluding management basis by XXX Cash-adjusted the while line X.X% in benefits basis year-over-year straight India of certain supported headwinds. in

and fact, XXXX In QX approximately cash debt roughly was bad our SG&A, declined down excluding of X% year-over-year in levels. QX X%

QX Additionally, gross is our the in broad-based remarks, application and though of supportive accelerating services pipeline U.S. by discussed services year prepared full in roughly levels. buildup outlook. confidence of for together year-over-year, of XX% came business of his us continuing our our gives our activity the an through Steve $XX of expectation nearly year U.S. the in duration with acceleration performance, just over decline margin representing XXXX This XX% a from million,

attributable attributable AFFO per XX% adjusted slide, share of by Moving by the side attributable cash the right conversion AFFO supported AFFO. respectively, and and of grew X.X%, growth EBITDA high to to

revised shifting full outlook. year Now to our

As results we I the trends underpinning date the performance. pleased mentioned, sustainable to are with and our demand

notable given updates. year to mind, several our largely includes have we However, full With released assumptions unchanged. our revised proximity outlook the kept previously guidance, that in close core

for which, reserves we to First, resulted in $XX I reserve our in approximately outlook, collections million revenue have strong QX in earlier, in assumed compared first taken reversals in India prior million approximately as the activity December attributable the revenue, remained net quarter through the in the revenue a $XX resulting for year adjusted and assumptions for reserve EBITDA assumption April resulting million. for unchanged, to $XX net Reserve of $XX compared in million property year of to AFFO. million plan a benefit of through $XX outlook prior mentioned

revised Next, FX compared the our a we modest our assumptions resulting in have prior year, headwind outlook. to for

I earlier our unchanged through the which modest Finally, elevated by interest expense interest partially a balance have by while numbers. we income. dive remain net offset relatively India let's offset into With the and assumptions that, to increased due higher to proceeds debt interest mentioned reduced expense interest accelerated was further attributed our reductions rates,

Turning to Slide X.

expectations the We million approximately to first the to upside are driven for outlook, revenue by quarter, in by $XX $XX of during with by our million property positive increasing impacts. India partially offset prior associated related compared million collections negative FX $XX

international Canada, We X% including approximately are on XX% Africa, reiterating and both driving in our organic for prior in X% basis. consolidated the outlook LatAm a approximately in regions, Europe XX% to and tenant and for X% X% U.S. growth across billings in and APAC, to all collectively expectations X% X.X%

to through first quarter continue the our year. work will assess we momentum We as

Turning to Slide X.

by the increasing million EBITDA FX $X We partially flow-through headwinds. as by India, assumptions outlook, adjusted in our are of compared by prior the revenue reserve driven of revised $XX outlook to offset million

Moving to Slide XX.

We AFFO basis, a approximately India benefits, partially by stockholders are midpoint our raising million and FX. $X.XX the midpoint attributable by for by the share supported similarly at the assumption moving $XX $XX.XX, of per offset to reserve on revised expectations common

mentioned, although net are offset a I a expectations income. increase expense, is in basis As on we it raising interest by similar interest for

XX. Turning to Slide

in earnings sustained our share common a balance discussed reiterating billion of to all an XXXX, $X the we growth this accelerated delivering return projects profile to in with QX and per shareholder declaration focused annual maintaining expect Board relatively again selectively as flexibility of XXXX, $X.XX an total risk-adjusted on to allocation approximately pathway and financial quality call, attractive resume XXXX for is or dividend approval. includes an our growth on and strength flat subject most expectation are executing drive capital rates funding XXXX which attractive sheet to earnings plans of We on return, and

which approach right Xx, slide, goal the disciplined while progress QX. to key recurring execution important a Xx previously further conversion QX our benefits through allocation, we'd side is will of profitability asset, be our combined capital the reversals to reinforced to for with sheet remain note net the by capital that it Indian expect a our end the cost successful Xx efforts, top quarter reserve markets already our metric and the mentioned, achieving to its in leverage have high of at and above all line we've to this made growth management year-to-date as leverage the together support year, with our from balance net moving forward. of stands focus the to strategic investment-grade Moving These

Turning summary, to in great off start we are Slide a XXXX. to XX. And to

strong, Our visibility discipline into of solid accelerating future cost an with strength stakeholders for gives best-in-class a being our activity, term expectations the and while expansion confidence combined a our recurring of while and business open growth sheet across sustained pipeline shareholders our questions. demonstration deploying capital high strategically continued contracted balance keen a drive growth focus for supporting ability the margin operator globally. With can foundation degree of on global line we over for a enhancing operator, a us that, to long for in our our

[Operator Deutsche first of the Instructions] Niknam from from Your Bank. comes line question Matt

the on quarter. Congrats

I if X, Just could.

more in across curious maybe First, whether going on data that broad-based can the big in the expectations on maybe DISH bit what for a or acceleration and leasing in centers. on limited nature? X color you forward? this more little was then and And saw you maybe new get more even the I'm secondly, U.S., and implies the services quarter activity

in highest of can any to But that much talked terms of business? And you isn't quarter caution uptick curious XQ the since leasing in your about there have caution peers signed of if talked driving the of retail what's share there. macro color are 'XX, of seems you just new think there it macro about. again, headwinds in your signs some any way imply I or

which pipeline we're gross services the Thanks in Sure. was our at to about In we in, was about than QX. quarter, in higher for seeing U.S. $XX QX XX% QX. million QX the acceleration our coming application in question. And Again, in the margin higher than expected. relative And came had an

we're we're is an of quarter. gross seeing we're the in having QX guide kind services $XXX seeing to our services inherently reiterate And margin. along our just that our conversations while to on ground that that activity in underpins the services boots in expecting going about in guidance really is we're the we're about last with what hit sometimes, that is, we hard acceleration on look, of $XXX year. gave million predict for services, us So to the gives kind And revenue, what the the that customers, million with teams activity that from that confidence

there. throughout from how it property And see gives to you everything the our continue When and revenue so we'll revenue are comprehensive cadence lot remind us of seeing comes assumptions the year. in rest that growth But I'll again, that some watch goes that, our it a we're MLAs. to QX our by optimism of underpinned

that in So we're seeing organic a final down we're of we'll the guidance be to I'll that in We're see it a bit to overall, point, bit of that. then the that middle QX. to will U.S. a by billings encouraged in acceleration bit that. see But X.X%. and little the that in that little I doesn't reiterate expecting hits that this growth, different change Again, the we're of growth X.X% in in U.S. tranche And terms quarter-by-quarter. In year at And in the QX, will weigh the approximately Sprint churn expecting tenant our what go was expect up October, of

all comp of it this customers. again, X record year. continue of a rest that, customer terms year. encouraged When we're in is we sales pipeline of of to years it I we kind to have a to and pick to CoreSite, levels, tough seeing, the compared activity we In got individual the for but healthy going that's comes of our And year. last with have broad-based. we've fairly into some the And seeing are major up what broad-based U.S. don't get activity want we're

have another really very know of So that sales, to we exciting but record a and retail on year this achieve did that hoping. And was quarter I we're year, strong we'll don't see.

native very the hybrid that growth that cloud that data very have of everything In that's optimistic being moved that going there IT terms a what to they're tail And a very, their own there's the by that there. tail is went are now, growth in we the cloud of There's that environment. that this are And the CoreSite centers we're underpinning or of biggest lot companies about we for a we headwinds Again, see and there. they're business, of companies enterprises looking a driven still seeing. had infrastructure. we're to structure a right long to and still the lot cloud, of and cost bulk event long activity that have, what's see going hybrid out for different and out driver

of We for uptick particular, kind perfectly AI inferencing CoreSite. suited models of AI, portion are is seeing in the an in activity from

have to hyperscale to provide that also get centers. perfectly is the learning you and models when type channel. need to that in to interfacing a suited data users, inputs provide you these distribution big going And But CoreSite that the You're distribution. done of them data the with large them, from are start

are some activity seeing So we there.

today. falloff like our kind We're In in seeing we're terms funnel a is. everyone watching of just else not of it, industry headwinds,

are issues the pricing people the the that up. things -- things of actually some drive have that Some highlighted supply of demand

actually had megawatts We've constrained So at than CoreSite. under supplied, more pricing where before that got markets construction that's up. have driving we we ever are today

demand have that So for to we're more of a we than cycle continue. planning But ever I'll large that reiterate just that before. is portion pre-leased

construction that the down And that's I placed a we're in constantly to in discussion right we've as our see cross there our a pre-leasing have because seeing interconnect. And XX%. on, of little under seeing percentage some customers of quarter for from something to And growth as optimize still of even growth We're about that's we'll still bits trying seeing that about structure. now that we connects. service, demand there's grooming cost with still some healthy out they're grooming healthy of explore that tick there. But last we're well. fact, continue and some pre-leasing going stuff In we is bit know but things with

So hoping sales, year that's again, think demand CoreSite, the pipeline for tough I record but we're that comp. seeing, the a for optimistic very another about we're of

team demand my we is see hearing I'm sure today. our and appropriately But weigh watching But teams So it. market seeing good seeing else we'll me down. say about like on And if be we're again, sales we're feel cautious that. we we're not from cringing is, But not just everybody slowing sales it headwinds the that that's what today.

comments. If Matt, add briefly X I this is here or Rod. just X could

as we're that that So leading in of revenue levels now we've couple is delivering Steve what that to course, new business up of years. the is higher as said, record had growth over we of last new business signed the past. And

So of saw had rate. you north in we XX% a quarter, revenue the growth

that of led also remarks, last new the couple record of to over that has in is years. couple result As last on prepared said business the signed the of [ ] years levels new of new I my business, delivering a up those we high of level biz backlog. of

So of $XX we million from last haven't up we're deals up a in closer to of or years. the terms to $XX signed million That's is the backlog, close yet. in which rate run into revenue couple in $XX commenced of million that

it and up, translates sign revenue we revenue and into growth. then into backlog it business translates new the So

seen the over CoreSite of very next So to with couple growth the of we years, the activity couple well have today, we've that last high in level levels positions the have high backlog years. of

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

the from the think, share competitors? guide you secondly, in that the American Tower your or long-term supporting of on domestic for I business. regarding your a the activity see category up tower this comments in in do Do rising you following see tide quarter. your the for And your pickup is you first referenced, taking of then activity one the and comments domestic Just as some slides

If the in billings you these you influence us activity organic growth for those annual recap can tenant changes average and levels how may see longer-term where outcomes?

the Thanks Sure. for question.

again, the of we're that guide in to results. ramp what seeing. And that into it's the quarter my up. what in give terms So is it's spot a conversations have kind us X for lot competitors the visibility year seeing I clearly of our the are U.S., customer is of on starting the -- don't we're optimism having

materially whether what to I But think to the an lot on think on on mid-band when is complete goals different rollouts. there's to I long-term their what yet customers reflect I done. work be what seeing. So network, their opinion what a do when we're are seeing don't can I And their give than about of XG they're need

what they're in think saw XG, think is see cycle to that. we're push, starting then same we that little their bit out seeing that the slowdown I another we're same then there's optimizing I initial we a in XG, there's cycle saw the So And and push. play while of a where an there's network

longer-term XXX us have. we're I in billings X.X%, and give on that number to our does remind greater to points growth the And our And speed differentiated do those at over provide churn the I least that to of think between average we think that button this projecting is where churn for XXXX, do that, give share of great we've the Sprint easy a bit and that's little organic predictability. Back market, X.X% year. for XXXX we're just kind really excluding time. customers. all to great cost that able everyone, market MLAs X% be ourselves said years. that of Now year them would in guide for our X% an that and than we absorbing Sprint of And each a XXXX, period we're and OTBG we tenant basis greater was expect U.S.,

data We of carrier So again, XG. XG any cheaper way. of and long-term good about cycle a in levels we way the lot seeing activity the is the good or of see about we feel feel guide. activity the that they supportive of And data it than that giving them other of performing megabytes produce terms very about gigabytes could we're

and shift And between in other within activity? Any densification one. just the mix the X domestic quick amendments

Again, part the overlays about coverage down have some network to in, might that push might always implies first is and these always that see And infill then they build be of start more sites. that on you getting gaps carriers slow think bit. optimizing I And that better optimal coverage service. not colocations. service quality existing little or and is that they of cycles optimization where get A think when the implies when a the you

So we of that some kind we're broad-based see Again, as for seeing we well. activity. are demand some

So of it's do that some ups those out -- I off we're did we the again, comprehensive seeing customers their the smooth of that cycles conference both, rolled of and QX and our place in have the that of major downs disclose in one activity levels. We MLAs. MLAs remind customers our folks that we're And of in across would just with seeing carriers. some of

terms more comprehensive for so to in off the commencement the pay that is the seasonality And portion them. of when and those there you of the of as by customer, kind drink, they sign leases get more of come

from of that more do so levels will conference the our drive they than on business And ones that that are of the MLAs. for portion the -- perspective, activity

the Your Simon next Stanley. Flannery question Morgan comes of from line from

the of be the the [indiscernible] buying or things M&A portfolio and updates last of quarter perhaps And review. how you out place updates India in could just October Maybe about just X more of on market for that? either review headout come any assessment. at Great. this on talked beyond I Steve, things then at India? then the deal comments portfolio a processes you any any the looking there think being that you timing And kind sort Are broadly. about sort doing and on situation selling thanks point. in think we that might India of regulatory

will with It's come Sure. predict that approval No very updates the hard I'll start this India. through. at when point. to

expecting on of know know we're still the that. second let we half what's But So we'll as happening soon year. as you

standard In that's would us kind everything of of beginning take Xx nothing down part our of that our at our seeing that's sale. off M&A, compelling look terms of but teams of out capital that priorities that our at And of for get that the we're making any capital practice. broader just There's then our year, our in that's allocation focused sure we're out after that, we to dividend, our allocation the is laid of and first we on really priority delevering leverage. net there

something at I seeing that that us at there And came we're us us we're not Having have strategically if the this be do with When change out at comes when looking or intending right doing we along, buyer globe, out that sell they the that our not may own this. make to our consider may today strategic kind the to point. is to said our right our of that, on that for clear right so our criteria. review underwriting businesses meeting if important want businesses price we that's today. there's price that or strategic would is original figure not anything, about are there, be a it the scale. nothing make But some mind And across out meaning as at that at the there's not there. we're We're goal would nothing portfolio specifically, are as if we be just portfolio, look there to

to it's they'd first. our have efficiency what How the try getting get more is we market, we'll be because to thing it. up. the price we first sales? How to and more fix And The we drive accretive decided that to those? that shareholders than holding in if do other right do margins can to drive think exit do market we we we're greater

some point portfolio consider this the the that if at But looking would there's to are us again, and there that we're point, buyer nonstrategic in there price dispose right nothing right So our of. to came to out actively businesses along. for we

everyone a the add a on and a numbers couple to of couple of reminder. comments to to listening going India, give I'm just Simon,

the some said, year. our a Steve Everything that call as going it as of we as So that it, will billion, the proceeds couple is purchase $X.X price, timing the, with to [ which loan little receivables the comes working some in also includes we is in and loan India, I well, intercompany expectation. VIL. remind billion. the certainly India we signed about less that ]. It still we with second is want well be Brookfield that this $X.X intercompany term million have forms. different would $X everyone in OCD up deal the of a have debt that announced that sell to within that of that half I'm capital, debt than put when $XXX total the let's be to have place It then could term familiar of and terms includes you're billion the there sure in we XXX% with is in

So the OCD about was $XXX million.

receivables little the The other And than based is and a between about component then a India $XXX ticking we that also closing. signing there's was less million. that fee get on mechanics

$X.X those all put about things billion. You together, comes up to it

these realizing and the process India. taking out some of of proceeds in are We of

some back those as India, and of belong the million positive see That's from based about it trends receivables in details, -- us that of India and billion. we've you to the $X.X So removed U.S. the did collection you'll and part see we seen on in the $XXX to took

subsequently also million done, of FPO happy kind that which the were right after to XX% see. during of and successful that liquidated OCD We converted $XXX and VIL we then had the we

the converted, XX% and that. we the realized a sold the market, we it little of over that into $XXX $XXX million we million So on

that So realizing the And it out and increasing original our liquidate that's I'll balance, worked us it's receivable probability which actually avenues well. achieving is well. cash giving multiple really just worked highlight to that purpose, again, of

million. over have we So $XXX

you it back probably and remove terms of will We fee any of paired of the on India well. the to kind and up billion everyone bring to see from closing the what give see the $X closing. closing, proceeds you'll mechanics as to that will be just U.S. around -- on in expect us plus ticking those And

given on this That's beyond year. any And great. policy update

in on to give and we'll we've call what like. specifics said in plan XXXX, as going of what 'XX, do to terms resume Yes, always approval, that's in to look is QX Board we our growth February subject we

long you per share term. AFFO the be term, the dividend and our about what similar over share per longer think growth to can Over

And that. so may short-term be there some changes in

divestiture, there our be AFFO with example, per India will dilution for share. some So in

the and AFFO taxable we growth might there share see So income. there per from be will what in a dislocation

year. you think specific long for February being the next XXXX, in in particular, about more over that can So those get we'll of term, about similar

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

Or share? term, dividend up on is are on attributable in and per board decision. follow of it yet. of share trying the an to I it absolute you appreciate it be up dividend. question a is XX% again per it growth lot But AFFO going on there you But pairing more rate payout attributable want is you're can't to achieve payout more per it what to a growth Was give Simon's of level? kind is Or AFFO more that color like there I kind of ratio? the like that? XXX% ratio Is long share? that

share in payout kind per to that our of Well, of you growth, kind to ratio if of continue line we that AFFO XX% staying think in XX% can grow range. with

just quickly, to that billion billion towards would additional, XX% at uses, anything Rick, It put let's want AFFO or And does $X to range. either that $X.X CapEx us else to I say, do. and of between we add other leave

financial to invest in of of of fits lot giving capital. XX% us a So that that with flexibility ratio well XX% to kind

room green not Appreciate U.S. talk prepared to on you questions you possibility to the we carry be may leave why you and to CapEx. what And all out, a lot. a investors improvement. Steve, understand a CapEx Can It's to a it as as leasing. your quarter perfect good perfect to at you it or help not carrier well, the see. happen of a about to CapEx shoots, already some or may indicator, and to Michael can indicator ourselves you've look that. get [indiscernible] any grow it talked linear pointed business. us and call of we lot but how on thing not One year of always to activity lot look indicator carrier question given if an the leasing in pay like you others a And A

the to. happy Thanks for I'm question, Rick. Sure.

we're XG. billion So or per billion CapEx, when in And billion about carrier that's you up that look XG, first, from XG $X seeing point $X and was year mark billion or billion, billion out I $XX on that and are for would $X the carrier $XX we around $X what estimates CapEx saw up at that -- from average.

So for The lot radio into see the towers. is that it's algorithm reason all goes perfect not going access tower a CapEx do It's growth overall on CapEx the side network different to a that increasing. on not we of goes uses.

rand that's into core it the goes There's the CapEx related some network. goes lot sites. to to on the CapEx that not just of the connect and of to the Some network the of of a fiber

deployments that. And will algorithm year [ ] said their one their that and continue they a giving this pace not for they're I comments where of in year the savings earlier point CapEx it's So this is coming that to in I'd fact, core perfect to from you that customers' my think C-band fiber.

trying the market on to what to perspective hearing idea to do we're out take from tower they're our is give really think we from And going we're to what on be think our what don't that intelligence preparing sites based going we the [ activity about sites. to themselves. and carriers CapEx, their we while CapEx what the the break and the on where on when better specifically, is be So care ] is focus what the ground teams that's on a

they're algorithm. If does more matter. not generally speaking, And CapEx so less, but imply, spending means that a more less perfect CapEx, does the activity, it's

it and do thing another to out, and back activity if to also lease co-locations, us seems Michael shift new coverage pointed And Sure. new that from activity amendment see the you to that very lease possibility? average new CapEx carrier. the obviously, Is is higher, to though might even going be not than amendment rent be your a different another for an typically, in

amendments do Yes, than leases. lease rate than higher that's amendment get but typically is you new you A rate, new a possibility, Rick. more

growth of and So cycle, as what for and saw that XG It's leases a what cycle. all there's the today. combination our It's guidance, we that's long-term that's amendments a a out in XG, seeing going expectation it's to But replicate positive it's it's a a there. and underpin is. and bit things our long look, of all little what trade-off and new XG go closely we through very we're and playing

where you you to trigger given equation circle point. I buybacks at that that what me trying can through getting comes stock buyback option know you you stock would available But obviously, projects the me, new you're also last understand excess to some back, allow mentioned India is use Rod, Let to one returns. get and cash then are have price stock the you construction for at for and us capital Help into the at? process would think the X.X. allocation, think

focused of momentum with allocation, it balance we're adding capital long share see the focused the best quality right term. saying profile and great very very delevering earnings, operational for efficiency, have Rick. growth growth overall sheet risk and as driving we It's to direct organic right focused cost as our where AFFO when on -- of very question, last continuing driving projects growth, driving on over reducing AFFO strengthening we've the Steve on couple are profile, comes drive a -- and and I we Yes. our quarters, the really been of that the And per SG&A and and to CapEx

So remains all and our is focus. clear that

we see leverage. are at quarter did terms You net Xx of in this

the absence QX. point had you saw So our the benefited for in our need say, achieved that, outlook. for of, India we goal we in we've that payments that the by for was the reserve I'll that out and let's

is a X benefits above we is QX. there million means year million, timing much be back So will could leverage during in expect goal slightly work that continue as year. $XX up of that be that there to $XX the is that the What as some going sustainable between by down now the end in the X and the end of the getting to and on year. to And we're way,

very not may there, we'll but be get in be close, think, shape. I good we Now and we'll

economics, some then range that interest things around we see in full or are rates have buybacks, we with In in at So the regained really more the below fashion, sustained think sorts engage want options said, those that a around and on flexibility. today. more at financial all when think point, all I of to At of certainty inflation target issues we'd our I and leverage point, order to table. certainty

that that a sure appreciate uncertainty we still all is I to going is think we're and our strong in and we be there fact sheet making fair of there, balance prudent the amount focus business managing floating year. AFFO That rate to growth. in short-term means changes are reducing debt, reducing the to our say, vulnerability, effectively the rates. for drive let's of That's this our kind

probably and I So I of different point, think we'll the Hopefully, towards things. full we'll different buybacks, by going. year, when of would about say that economic allocation be leverage. point, in sustained you more And this think to rates options. the are comes interest at in bit end it's we position be reassessing a can consideration it where At a more outlook that Rick, certainty then, do when little there's

more I visibility. so hope sure certainty Well, and

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

X foreign the question, side? access, access be you've to kind share are maybe you share of for how getting the an aggressive. more at the carriers for looking some year. less we Argentinian outlook And in We've your us increasing fixed decreasing outlook second as aggressive, with growth for some the a would be the inflection moves contributor you first that an or guess given in then loss seem might Could Could point around how kind even to be, getting you been macro months, more similarly, contributor to of question peso, fixed hedging the carriers that thinking naira currency pretty recently your related some as movements. I would evolution Nigerian in yen. extraordinary the be just impacting last seeing any and at your

FX I'll one, think David, hit Steve the thanks the fixed question. will take and on the for I then one wireless.

it do you're through in year, Nigeria, really the out, you're FX to of. have think right seeing I the That's Africa aware in when headwinds comes This point some absolutely clear. that to we're So we are and coming FX headwinds primarily FX, business. which

where down look an you have opposite puts have FX quarter. about to and guide Africa. a million wind million of a there. And then And outlook, but to $X there's on at and across Africa on we region a year-on-year, headwind bit pretty across outlook although outlook, brewed headwind this when Latin positive So there, actually here EBITDA that $XX up tailwind of in first in about the a FX in we the we're America, property significant for outlook year, outlook year-on-year, the have the in tailwind revenue, when adjustment AFFO, dilution just to is in about kind seen we've is the we the outlook which or it takes comes $X.XX

currencies little one another others where is certainly all We in not if portfolio under than So be kind effect together. pressure, times more move the of at up one terms currency and may of a bit. benefit

our If the you by into build we that actually that's tell but outlook, what revs It's the look million. too would at about us. improve spot spots could rates, early $XX to

years. we've a is our debt we standpoint, now euro-based quite to of billion debt bit euro-denominated mean, up I match hedging a in done our that Europe. diversified So of with up structure $X.X we've in that have. the from And of about the we're business several things kind one last to

through intercompany take the you in that The in have, Africa let's across currency in businesses the continue markets. other our back generate devaluation still when and cash local of kind to we're reinvest say lending. APAC, thing don't business Latin those America course, international the that we of say, have flow we I if operating would out we we is there, And it in

denominated is local P&L in currency. Our

and in expenses the of local are all currency. So revenues all

we terms flows have that is have assets long-term is and America. comes good of markets or it it of where our with said, a in of lot back outsized broad. to into shareholders. is a that headwinds, certainly for hedging I very to those do our Latin invest we isn't can country, But of pretty where is it capital it and in one But prudent lot can creating value see capital most to allocation the of translational. play There the thinking. And reinvesting And is that our the do don't we cash any sense a year. Africa that we FX in think, regions, extent that makes in every into think those value, benefits and dynamically. our every portfolio we allocate it We create and most do that for will shareholders So actively

David, you've in of It's or us thing all heard we into underwriting other our The FX FX build this deals. our impacts certainly headwinds before, model. say

we weighted by country. So is do of average country cost capital

the as the we've expectation of in between we term that foreign country Fisher differentials over invest the have We within model. currency the out as U.S. inflation [ also long well effect that in, and the build and ]

have in pull model. right the in long-term that term. when But a over FX of you the you better short get to I think right period, hard a XX-year much XX-, it's getting So out chance that

lean in about the out important we to those in FX handle note different of we one looking depending we feel our the portfolio ability that that the ability in what's things of still long the term, happening at. certainly good places in underwriting is short that and So would of it have on be terms to FX. the to term, over have is and our we But

for Yes. those us to I differential do markets that will you markets. revenues markets, in very mechanisms recover dollar. of the from have of also sure those we escalators have also from add that inflation control CPI-linked to that would extent. make just U.S. some it to And It's in to the international contractual important some U.S. have some to use also pegged some you the in all we

of in Nigeria, XX% example, For through Nigeria about the power. in the revenue -- is of passed

kind through same it. we're passing And that of the paying rate at so that's

dollar. hedge. So is we naira, little is of when in paid half natural -- ] that pegged but XX% it's U.S. bit to whatever That the go get that's a The exchange in the remaining of [ rate to pegged a we about there.

local expenses expenses. So we of currency Rod that as mechanisms said do our as well as use contractual hedge what to are most well

well. Fixed there hedge some as wireless. natural there's So

our going -- it's look, XG, always seeing that So use we're on and first the seeing cases wireless. be customers fixed aggressively into of said that wireless out. the play the side, in fixed carrier one we've And might we're

stand-alone upside driven type to fixed of were say. showing by our if a ARPUs and competitiveness seeing, to our million getting, long in the small that the the too if wireless fixed networks When base At and early for support additional anticipating the have that, they're those broadband. And like think of wireless this we activity numbers by carriers. subs the the guys, of continue WISPs to to or wireless total that. them the able We that point, were about I continue build incremental carriers think network term, people the encouraged they're for in incremental I network with guide wireless current wireless. that at some But the underwrite stand-alone this U.S. by builds. fixed case. fixed fixed to builds the are seeing that XX their major growth means deploy point, do utilize they're trends it's in they they're not not at line we're the have the for fixed excess any What be would the set capacity kind I'm that we've U.S., some long-term

I for us be now going drive or early happens. a if would tell of think it's too that not. if But business that's So to upside right it to additional lot

of Your from Nick comes Deo the question Del line MoffettNathanson. next from

mix be help I your comment more mix drivers for scale quarter. deals and higher cabinet per consumption the like-for-like that? First cap earlier. really that your bit gains that of generally, signings decompose driving can a growth talked guess can you versus on more pricing changes record the And strong. MMR quarter recent might per CoreSite, has little to a about versus [ ] you how the bit been Steve, noted you funnel retail a had on had versus also in you you today? in retail guess I that in periods what's you've

Sure.

attack part the that. first me of Let

when our it look markets, what's really dynamics. So you across supply-demand is at driving pricing

pricing scale, we're to increases capacity those rare There's they retail begin pricing more hyperscale have seeing in and so the because contiguous the at probably in little a increase in this similar lowest because is kind bit more of hyperscale becoming with And markets. markets. and point

people expected. capacity And happening facilities. people our so what is pricing think underlying entire And less what of seen in off for faster other than provided all driver part is as is just the cases not in we've the our and is ecosystem And demand. And across are much use of the the markets supply as taken than that have AI has that our what seeking. that's really

have we have of what a of Our my out a and capacity use there installations. mix of the scale to scale. finger that's funnel healthy lot on the tips. by sell to is capacity some exact what and driven for has breakdown don't I But retail

retail underwrite facility. come don't to we all us. markets. is can offer hub. the People provider us on in the which be we And because of or comes interconnection on CoreSite colocation low-cost se -- not so a what We not we terms depending we and don't and those Because facility provide. of the in per people, really flexible business interconnection could It's that customers. market write a be We're an to which just we selective

that model in cloud we we to them continue the we a curate balance industry-leading returns us and to a way players bought healthy that we try enterprises with a mix mix, capital on our our so and that before gives networks, to use underwrite was and retail And CoreSite of of kind delivering there.

have dynamic Steve, Or [indiscernible] influenced densities like-for-like higher MMR more pricing power described? is just you at it the all? the

up certainly, density more because cabinets more higher we the power. they're taking I mean, price

press We certified weeks So some that of about NVIDIA in release it. a did couple influence facilities. a of being does our have ago

when certainly, that you're driving there's or so And in a cabinet. the the differential board CPUs, pricing the putting supply-demand across dynamics. really pricing GPUs on But versus what's increases

Okay.

Okay. perspective. keep into You've can I ask year. help then down you're normal that a It always expenses? ship tight the from actions one tighter of than can any specific run you're seems on I running like you costs And guess even really this pretty taking to down. drill

Sure.

examples. the give can you backdrop it, few give of me to you a Let then kind I

mode you're in you're cetera. making lot balls quickly and et last and been very our of a sure you're and service, assets, And over markets. focused buying in decade, on So it the really rapid new a integrating providing piece drop that that of customer we've you're growth when growing and no

on we're buying integrating that Now not to lot focus a us operational assets for of and a good excellence. time it's them, really

the kind of doing the on customer looking what business, an X, can at e-market say careful their we're being we can markets. things not globalize market to and we're more practices what very with our And of Phase business." efficiencies can So taking the expertise business and looking then of our that that what is is efficiently. we're best more taking would today we that's we're service board, do I terms doing if negatively focused is opportunity that or on see own. and to there damaging from they other drive do of their there. the in each "How is that what additional we're opportunities are across is without So we're And and saying, impacting But long-term at we operations be finding better future to the it. trajectory

efficient extremely For we're as example, Power even asking fuel our efficiency in the that internationally we is, and business. with take ourselves U.S., are we've question how can automations of drive In them Africa, to use those our automated in a there? we more use the lot Service a we processes. And

looking can U.S. we're we saying, and those markets that So other practices at to like the export

those deliberate the to very very to we to fruit And growth. as we over kind going coming a the of decade try continuing now, off efficient can after as time. then become just chasing so be thoughtful being inherent look we're about can and we we're And low-hanging of in right that's costs at as business everywhere

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

any your question macro across regions. a second exposure the risks seeing. be build-to-suit talk bit program wireline helpful. expected just for update business churn given Any in in on activity some seeing a a to quarter its on and pressures your you're you I or the think little LatAm? that of an about bit the the you're trends ahead And would changes came Can regional outlook

Rod. give Batya, a little with insight is LatAm and you the this there. I'll start trends on

seeing colocation outlook in LatAm organic billings to for the we're X% up And for pretty you is if put and going we it's revenue. around with via So flat. coming prior growth. about That's X% be coming year, contributed tenant against amendment the XXXX, being that

X-ish activity for Latin that percent demand steady in new a level The seeing we're X%. America business. across So that also in escalators are and of

touch down down. of across inflation moderating above come the because a So that. region That's has actually kind

of X%. last year, that north This it's was X%. So about year,

driver good we of of inflation. headline big are the a is also lower moderation seeing churn. is change that see that you'll a just of any The news that's So level

a before in business. to doing. But in get come probably -- will year's in just work you wireline our come and the we normalized churn, I'll churn our the this coming a almost But is a XX% up represent of about overall And to We get about agree that When will it to ], give LatAm take growth X%. [ around you that. to and OA will of of is region. [ It million couple side OA was back ] we maybe $XX assumed us outlook. hitting you to years familiar saw X% Within kind X% comments about what about couple then a we years with here. there. heard more the of a take a did more side of So it out [ will they're million publicly would think I guide of revenue is of through sort $XX They which other year for wireline ], of you're discount the of in from you numbers half of there. couple expect last that know OA closer couple

into outlook the also means the do So not negative basis next comes $X little [ the OA certain detail kind count part a we there's about of And years. to worked to down ]. look couple no as will that. there. of ownership the a work of on got I'm on terms the That that. impact over any on out to we have be based that in of sites a million through that or transaction, we street taking per We've that. give year at bit more have there of But to from of you going discount.

working -- we years, region do in range, So the couple LATAM. kind it's growth low through but for digits think let's lower temporary, X% also you'll say. relatively that for of single see do the think churn remaining down we'll We say, X% X% let's to that next in of be the

update. That's helpful. And maybe just to built-to-suit

Yes.

to keeping [ we but do little [ in were a QX, bit of consistent of terms ] I the build-to-suits, ]. up couple the to X,XXX X,XXX of mean, that increase. we're expect In that lower, range the a volumes to thousand

for us We for continue customers our Europe. in and Africa to see strong demand building towers also across

we're volumes because say down selective have one results who I is quality, the assets we a But still of disciplined where for We're we being let's would new So that. we And sure we and can see the cost that around increased certainly higher little build-to-suits build. to sites the of on make with build fairly year. very we of have pricing what been every reflects several the reality. bit. has build, But looking happy that being say, that thousand the with we build come capital, really

around at look disciplined. with uncertainty the rates we're the being environment we As macro and capital, of cost extremely

the comes RBC. today your of question Atkin from final from Jon And line

a X-parter. of extent anything effect? maybe paid maybe MLAs, even take and And then drink, to what but of I do changing holistic holistic the roll use what around domestic on by extent us it about Question them maybe lot is To as or a the they're you 'XX, update into year-end internationally? your we know used MLAs MLAs just off look portions that internationally.

Sure.

So of bigger on or an acquisition international that depend markets, a when of they the build-to-suits did our it's a we to there. have contract it with and whether we comes variety part sometimes structures business or

the a We type in say terms holistic deals we structures. in I construct more utilize contract a would So those we Again, flavor of variation our U.S., couple a internationally. lot little how do bit we there's have of contracts do than would different have internationally. try to but

But something the think in may They're of understand an that's customers that lot takes not it those markets. time. to opportunity I over be those. time us used typically get for a to

them type in take see the and something that terms those agreements have so and And U.S. is those utilize may to experience structures some customers able on to that the of from time. seeing benefits kind educating of of our being value them continue had

to end that, this publicly agreements that specifically the on we year. of you at point In the about U.S. point. terms the this nothing at we're would that of year There's talking

of [ ] kind expect would I a So change there.

years are into these often duration? any in 'XX change given that X And

true. kind to it's type a look, fundamental XXXX. early of us be for algorithm growth holds for little guidance of our think But look, Well, we that any giving

CoreSite, that in includes signed we'll we capital complement still as continued our see and look to in Europe continue XXXX, strong a moderation fundamentals U.S. growth, focus margin and when continue continuation so the our consummated. And to Africa, new of China while billings on we're in levels allocation. that those business. organic and discipline again, very at an Canada remaining we strong continuing happens solid of further especially have transaction absorbing see expansion leasing and disciplined final spread to We with associated Africa even some volumes of cost line in business growth in be headwinds with of to tranche that remaining was since growth year. QX churn expectation positive, record we're Europe And and in this with, from churn and commencing for That low kind we've top of that

is we an Now have keep going consolidation there's America is in a growth. to predict. think single-digit of churn harder rates, see headwinds FX in And for kind by variables America XXXX and elevated offset because rates, little then the few there again, Latin inherently of like and be that's interest that we about going low to a on, do services keeping the beyond, next eyes years, we're that when that Latin bit you environment lot to growth our

what of So we guide about on then to rate been to we anything next an AFFO will that although us. the won't is, have be until very year. And on means that clear trying timing that growth what the NDA also share closing we've impact think early per

and understand the investors our growth variables But long-term the all most algorithm I point strong variability think that on of of beyond. with kind timing. in remaining XXXX those we think, our to

the to Please call everyone, Thanks, for the the we joining questions. free feel And team or close IR to can reach out call. myself any with today. operator,

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

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