American Tower (AMT) Citi’s 2026 Global TMT Conference summary

Strategic initiatives and market positioning

• Focus on long-term contract quality and protecting asset value in key markets, including the U.S., Europe, and emerging markets.

• Four major growth catalysts identified: network densification, new spectrum deployment, 6G development, and AI-driven network changes.

• Data center business (CoreSite) positioned for double-digit growth, benefiting from rising bandwidth consumption.

• 2026 expected as a trough year for organic tenant billings growth, with acceleration anticipated in 2027.

• Reduction in churn due to less Dish impact and global portfolio consolidation, supporting future growth.

Financial outlook and margin expansion

• Revenue growth and margin expansion expected from reduced churn and stable new business, with high conversion rates.

• Operating expenses targeted for reduction through global COO oversight and supply chain unification.

• Margin expansion of 200–300 basis points projected in the tower business over the next few years.

• AFFO per share growth targeted at mid to upper mid-single digits, with FX and interest rates as key variables.

• Double-digit AFFO growth not anticipated; focus remains on consistent mid to upper single-digit rates.

Market dynamics and risk management

• U.S. and Latin America carrier consolidation largely complete; Europe more insulated due to contracted revenue.

• Ongoing arbitration with AT&T Mexico over rent increases, with $70 million reserved and outcome expected by next year.

• Dish Network litigation ongoing; business outlook fully de-risked for Dish, with any recovery seen as upside.

• Satellite technology viewed as complementary, not a threat, to tower business; rural site reductions seen as positive.

• Application volume and services revenue have declined from peak, but multi-year catalysts expected to drive future activity.