American Tower - Buy now?
American Tower Corporation (NYSE: AMT) is a leading global owner, operator, and developer of wireless and broadcast communication infrastructure, with headquarters in Boston, Massachusetts. The company traces its founding back to 1995 and has grown to become one of the largest independent owners of communication towers in the world.
It released its latest FY'2022 results, and I'm a bit on the fence. Here's why
1. Strong and resilient FY 2022 growth
Property revenue experiences a growth of 14.9% even in the advent of volatile foreign exchange effects. Revenue grew from USD 9.11 billion to USD 10.47 billion, on top of also a tenant billings growth of 6.9%.
2. US & Canada constitutes 48% of its property revenue, and 69% of leases expiring beyond 2027
AMT's major clients are mostly telecommunication companies operating in the US, in the likes of $AT&T(T.US$ $T-Mobile US(TMUS.US$ & $Verizon(VZ.US$.
For both its global tenant and ground lease renewal schedule, 69% of the leases expire beyond 2027 and beyond.
3. Net loss in Q4'22 due to unfavorable foreign exchange & impairments
AMT reported a net loss of USD 683.8 million for Q4'22.
These losses are mainly due to an impairment loss of USD 642 million and a foreign exchange loss of USD 662 million.
4. Growing DPU
AMT has a solid track record of raising its distributions per unit for the last 9 years. 9 years ago, AMT's distribution per unit was only just USD 1.10, but as of its latest FY 2022, the total DPU is USD 5.86.
Do you think AMT can continue to grow its distributions?
Will you consider investing in AMT even though of the dividend withholding tax in the US?
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The information available in this article/report/analysis is for sharing and education purposes only. This is neither a recommendation to purchase or sell any of the shares, securities, or other instruments mentioned; nor can it be treated as professional advice to buy, sell or take a position in any shares, securities, or other instruments. If you need specific investment advice, please consult the relevant professional investment advice and/or for study or research only.
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