American Tower Corporation’s AMT shares have gained nearly 7% in today’s trading session in response to stellar fourth-quarter results.

Its fourth-quarter 2024 adjusted funds from operations (AFFO), attributable to AMT common stockholders per share, of $2.32 beat the Zacks Consensus Estimate of $2.31 and climbed 1.3% year over year.

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Results reflect a year-over-year rise in revenues, aided by revenue growth across its property and service operations segment. American Tower recorded healthy year-over-year organic tenant billings growth of 5% and total tenant billings growth of 5.7%.

The company’s total revenues were $2.55 billion, outpacing the Zacks Consensus Estimate of $2.50 billion. The figure increased 3.7% from the prior-year quarter.

Per Steven Vondran, CEO of American Tower, “We posted another year of solid results at American Tower, delivering AFFO per share growth supportive of our long-term target, while demonstrating effective execution of the strategic priorities I laid out a year ago. Our initial expectations for accelerating activity over the course of the year were validated, highlighted by mid-band deployments in the United States and Europe, 4G densification and early 5G upgrades in emerging markets, and another exceptional year of leasing at CoreSite.”

In 2024, the company’s AFFO of $10.54 per share increased 6.8% from a year ago and met the consensus estimate of $10.54. Total revenues grew 1.1% to $10.13 billion and outpaced the consensus mark of $10.08 billion.

AMT’s Q4 in Detail

Adjusted EBITDA was $1.69 billion, up 5.1% from the prior-year period. The adjusted EBITDA margin was 66.4%.

The company sold 100% of its ownership interests in its subsidiaries in Australia and New Zealand for a total aggregate consideration of approximately $77.6 million.

It entered into an agreement to sell one of its subsidiaries in South Africa that holds fiber assets for a total aggregate consideration of 2.5 billion South African Rand (approximately $132.7 million) subject to certain adjustments. The company expects to complete the sale in the first quarter of 2025.

Property Operations of AMT

Revenues were $2.48 billion, up 2% on a year-over-year basis. Total operating profit was $1.73 billion and the operating profit margin was 70%.

In the Property segment, revenues from the United States and Canada totaled $1.30 billion, up marginally year over year. Total international revenues amounted to $944 million, increasing 2.7%. Data Centers added $236 million to Property revenues, up 9.8% from the prior-year period.

AMT’s Service Operations

Revenues totaled $63.7 million in the quarter, rising significantly from $21 million in the prior-year quarter. The operating profit was $26 million and the operating profit margin was 40% in the October-December quarter.

Cash Flow & Liquidity of AMT

In the fourth quarter, American Tower generated $1.2 billion of cash from operating activities, rising 5% year over year. Free cash flow in the period was $746 million, jumping 22.2% from a year ago.

As of Dec. 31, 2024, the company had $12 billion in total liquidity. This comprised $2 billion in cash and cash equivalents and the availability of $10 billion under its revolving credit facilities (net of any outstanding letters of credit).

AMT’s 2025 Guidance

American Tower anticipates total property revenues to be in the band of $9,920 -$10,070 million, indicating a year-over-year improvement of 0.6% at the midpoint.

The adjusted EBITDA is projected in the band of $6,855-$6,925 million. This indicates a year-over-year increase of 1.1% at the midpoint.

The AFFO attributable to AMT common stockholders is expected to be in the band of $4,830-$4,920 million, implying a 1.3% year-over-year decline at the midpoint.

The expected range for AFFO, attributable to AMT common stockholders per share, is $10.31-$10.50, indicating a fall of 1.3% at the midpoint. The Zacks Consensus Estimate for the metric is pegged at $10.40, which is within the company’s guided range.

AMT currently carries a Zacks Rank #4 (Sell).

American Tower Corporation Price, Consensus and EPS Surprise

American Tower Corporation price-consensus-eps-surprise-chart | American Tower Corporation Quote

Performance of Other REITs

Host Hotels & Resorts, Inc. HST reported fourth-quarter AFFO per share of 44 cents, which surpassed the Zacks Consensus Estimate of 40 cents. The figure remained unchanged from the prior-year quarter.

Results reflected higher revenues, driven by year-over-year comparable hotel total RevPAR growth. The company issued its outlook for 2025 adjusted AFFO per share. Presently, HST carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Healthpeak Properties, Inc. DOC reported fourth-quarter 2024 FFO as adjusted per share of 46 cents, which beat the Zacks Consensus Estimate by a penny. The reported figure remained unchanged from the prior-year quarter.

Results reflected better-than-anticipated revenues. Growth in total merger-combined same-store cash (adjusted) net operating income was witnessed across the portfolio. However, higher interest expenses affected the results to some extent. DOC currently carries a Zacks Rank of 3.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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