American Tower (AMT) TD Cowen 10th Annual Communications Infrastructure Summit summary

Strategic priorities and capital allocation

• Focus on driving organic sales growth globally, with selective investments in developed markets and reduced exposure in emerging markets.

• Emphasis on cost control, with SG&A expected to be $35 million lower year-over-year and ongoing efforts to expand gross margins.

• Maintaining an investment-grade balance sheet, targeting leverage in the 3–5x range, and prioritizing capital allocation based on long-term shareholder value.

• Ongoing board refreshment, with new members and committee chair changes to balance experience and fresh perspectives.

Market activity and growth outlook

• U.S. carrier activity is increasing in the second half of the year, with Q1 application volume up 70% over Q4 and continued solid activity expected.

• Most activity is amendment-focused as carriers expand 5G coverage, with densification expected to ramp up in 2026–2027.

• New leasing guidance for the U.S. is tracking toward the lower end of $180–$190 million, with some variability due to one carrier not under a comprehensive agreement.

• 5G mid-band overlays are expected to reach near 100% deployment across all major carriers, driven by ongoing increases in mobile data usage.

International portfolio and emerging markets

• Strategic capital pivot toward developed markets (U.S., Canada, Europe), with reduced M&A and CapEx in emerging markets due to macroeconomic and FX challenges.

• Africa continues to show strong demand for assets despite FX headwinds, while Latin America faces churn from carrier consolidation, especially in Brazil.

• No plans to exit other markets similar to India; unique challenges in India included low escalators and regulatory differences.

• Raised underwriting standards and hurdle rates across all emerging markets to address economic risks and ensure CPI-linked escalators.