We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
American Tower (AMT) Q4 AFFO Misses & Revenues Beat Estimates
Read MoreHide Full Article
American Tower Corporation (AMT - Free Report) reported fourth-quarter 2021 adjusted funds from operations (AFFO) for common stockholders of $2.10 per share, which lagged the Zacks Consensus Estimate of $2.17. The bottom line, however, improved 1.4% year over year.
The company generated total revenues of $2.45 billion, which beat the consensus mark of $2.41 billion. Also, the top line grew 15.2% year over year.
Quarterly results reflect improving revenues across both Property and Service operations. American Tower also recorded strong year-over-year organic tenant billings growth of 11.7%.
In 2021, the company’s AFFO of $9.43 per share was up 11.7% from a year ago and lagged the consensus estimate of $9.50. Total revenues grew 16.4% to $9.36 billion.
Quarter in Detail
The adjusted EBITDA came in at $1.52 billion, up 10.2% from the prior-year period. The adjusted EBITDA margin was 62% in the quarter. The operating income summed $626.6 million, down 7.1% year over year.
During the reported quarter, American Tower spent roughly $0.4 billion to acquire two data centers as part of the DataSite, Inc. acquisition, along with nearly 700 communications sites, primarily in international markets.
Also, it acquired more than 20 data center facilities and related assets in eight United States markets, as part of the previously announced acquisition of CoreSite Realty Corporation for total consideration of $10.4 billion, including the assumption and repayment of CoreSite’s existing debt. As a result of this transaction, AMT updated its reportable segments to add a Data Centers segment, which is reported within its property operations.
Further, AMT redeemed 100% of Macquarie SBI Infrastructure Investments Pte Limited’s and SBI Macquarie Infrastructure Trust’s holdings in ATC Telecom Infrastructure Private Limited (ATC TIPL) for INR12.9 billion ($173.2 million) in the quarter. As a result of the redemption, the company now holds a 100% ownership interest in ATC TIPL.
Property Operations
The quarterly revenues came in at $2.38 billion, up 13.2% on a year-over-year basis. The operating profit was $1.54 billion, and operating profit margin came in at 65%.
In the Property segment, revenues from the United States totaled $1.23 billion, up 1.2% year over year. The total international revenues amounted to $1.13 billion, jumping 28.2%. Further, the newly formed Data Centers added $16 million to Property revenues.
Services Operations
Revenues totaled $67 million during the reported quarter, significantly up from $23 million in the prior-year quarter. The operating profit came in at $33 million, and the operating profit margin was 49% in the December quarter.
Cash Flow and Liquidity
In the fourth quarter, American Tower generated $679 million of cash from operating activities, down 40% year over year. Free cash flow in the period was $212, declining 72%.
At the end of the fourth quarter, the company had $6.1 billion in total liquidity. This comprised $1.9 billion in cash and cash equivalents and availability of $4.2 billion under its revolving credit facilities (net of any outstanding letters of credit).
2022 Outlook
American Tower anticipates total property revenues of $10,220-$10,400 million, suggesting a year-over-year improvement of 13.2% at the mid-point.
The adjusted EBITDA is projected at $6,500-$6,610 million, indicating a mid-point increase of 9.6%. The consolidated AFFO is expected to be $4,700-$4,810 million, implying a year-over-year mid-point expansion of 8.7%.
Further, AFFO is expected to be $4,535-$4,645 million, reflecting mid-point growth of 7.3%. Capital expenditure is projected to be $2-$2.1 billion.
American Tower Corporation Price, Consensus and EPS Surprise
Mid-America Apartment Communities, Inc. (MAA - Free Report) , commonly referred to as MAA, reported fourth-quarter 2021 core FFO per share of $1.90, surpassing the Zacks Consensus Estimate of $1.87. The reported number increased 15.2% from the year-ago figure of $1.57.
MAA’s quarterly results were driven by an increase in the average effective rent per unit for the same-store portfolio. The average physical occupancy for the same-store portfolio also increased year over year.
Equity Residential’s (EQR - Free Report) fourth-quarter 2021 normalized FFO per share of 82 cents outpaced the Zacks Consensus Estimate of 80 cents. Rental income of $645.1 million beat the consensus mark of $628.6 million.
On a year-over-year basis, Equity Residential’s normalized FFO per share improved 7.9%, while rental income rose 5.2%. EQR’s results were driven by a strong physical occupancy, a substantial improvement in pricing power and an increase in non-Residential revenues.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
American Tower (AMT) Q4 AFFO Misses & Revenues Beat Estimates
American Tower Corporation (AMT - Free Report) reported fourth-quarter 2021 adjusted funds from operations (AFFO) for common stockholders of $2.10 per share, which lagged the Zacks Consensus Estimate of $2.17. The bottom line, however, improved 1.4% year over year.
The company generated total revenues of $2.45 billion, which beat the consensus mark of $2.41 billion. Also, the top line grew 15.2% year over year.
Quarterly results reflect improving revenues across both Property and Service operations. American Tower also recorded strong year-over-year organic tenant billings growth of 11.7%.
In 2021, the company’s AFFO of $9.43 per share was up 11.7% from a year ago and lagged the consensus estimate of $9.50. Total revenues grew 16.4% to $9.36 billion.
Quarter in Detail
The adjusted EBITDA came in at $1.52 billion, up 10.2% from the prior-year period. The adjusted EBITDA margin was 62% in the quarter. The operating income summed $626.6 million, down 7.1% year over year.
During the reported quarter, American Tower spent roughly $0.4 billion to acquire two data centers as part of the DataSite, Inc. acquisition, along with nearly 700 communications sites, primarily in international markets.
Also, it acquired more than 20 data center facilities and related assets in eight United States markets, as part of the previously announced acquisition of CoreSite Realty Corporation for total consideration of $10.4 billion, including the assumption and repayment of CoreSite’s existing debt. As a result of this transaction, AMT updated its reportable segments to add a Data Centers segment, which is reported within its property operations.
Further, AMT redeemed 100% of Macquarie SBI Infrastructure Investments Pte Limited’s and SBI Macquarie Infrastructure Trust’s holdings in ATC Telecom Infrastructure Private Limited (ATC TIPL) for INR12.9 billion ($173.2 million) in the quarter. As a result of the redemption, the company now holds a 100% ownership interest in ATC TIPL.
Property Operations
The quarterly revenues came in at $2.38 billion, up 13.2% on a year-over-year basis. The operating profit was $1.54 billion, and operating profit margin came in at 65%.
In the Property segment, revenues from the United States totaled $1.23 billion, up 1.2% year over year. The total international revenues amounted to $1.13 billion, jumping 28.2%. Further, the newly formed Data Centers added $16 million to Property revenues.
Services Operations
Revenues totaled $67 million during the reported quarter, significantly up from $23 million in the prior-year quarter. The operating profit came in at $33 million, and the operating profit margin was 49% in the December quarter.
Cash Flow and Liquidity
In the fourth quarter, American Tower generated $679 million of cash from operating activities, down 40% year over year. Free cash flow in the period was $212, declining 72%.
At the end of the fourth quarter, the company had $6.1 billion in total liquidity. This comprised $1.9 billion in cash and cash equivalents and availability of $4.2 billion under its revolving credit facilities (net of any outstanding letters of credit).
2022 Outlook
American Tower anticipates total property revenues of $10,220-$10,400 million, suggesting a year-over-year improvement of 13.2% at the mid-point.
The adjusted EBITDA is projected at $6,500-$6,610 million, indicating a mid-point increase of 9.6%. The consolidated AFFO is expected to be $4,700-$4,810 million, implying a year-over-year mid-point expansion of 8.7%.
Further, AFFO is expected to be $4,535-$4,645 million, reflecting mid-point growth of 7.3%. Capital expenditure is projected to be $2-$2.1 billion.
American Tower Corporation Price, Consensus and EPS Surprise
American Tower Corporation price-consensus-eps-surprise-chart | American Tower Corporation Quote
Currently, American Tower carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other REITs
Mid-America Apartment Communities, Inc. (MAA - Free Report) , commonly referred to as MAA, reported fourth-quarter 2021 core FFO per share of $1.90, surpassing the Zacks Consensus Estimate of $1.87. The reported number increased 15.2% from the year-ago figure of $1.57.
MAA’s quarterly results were driven by an increase in the average effective rent per unit for the same-store portfolio. The average physical occupancy for the same-store portfolio also increased year over year.
Equity Residential’s (EQR - Free Report) fourth-quarter 2021 normalized FFO per share of 82 cents outpaced the Zacks Consensus Estimate of 80 cents. Rental income of $645.1 million beat the consensus mark of $628.6 million.
On a year-over-year basis, Equity Residential’s normalized FFO per share improved 7.9%, while rental income rose 5.2%. EQR’s results were driven by a strong physical occupancy, a substantial improvement in pricing power and an increase in non-Residential revenues.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.