American Tower Corporation reported a 2 percent increase in revenue for Q1 2025, reaching $2.56 billion.
Adjusted funds from operations (AFFO) per share came in at $2.75, slightly below the $2.79 from the prior year.
Despite this dip, the company achieved 6.6 percent growth in Attributable AFFO per share on an as-adjusted basis.
Services revenue reached its highest quarterly level since 2021, fueled by increased mid-band 5G deployments and early signs of new site demand in the U.S. market.
The property segment generated $2.49 billion, representing 97 percent of total revenue, with telecom giants AT&T, T-Mobile, and Verizon accounting for 86 percent of the U.S. and Canada property segment revenue in 2024.
Capital expenditures totaled $340 million, including $38 million for non-discretionary improvements. American Tower has deployed >75 percent of discretionary capital expenditures to developed market platforms in the first-quarter.
The company acquired 242 communication sites for $148 million, with 145 located in the U.S. and 97 in Europe. Additionally, it finalized the acquisition of a multi-tenant data center in Denver (DE1), adding leasing capacity and development potential.
American Tower completed the sale of its South Africa Fiber business for $137.7 million, recognizing a gain of $53.6 million.
The company raised its 2025 total property revenue guidance to $9.97–$10.12 billion. The stock rose 2.5 percent in early trading following the results, reflecting investor confidence in the company’s leasing trends, operational efficiency, disciplined capital allocation, and long-term value creation strategy, Reuters news report said.
Steven Vondran, American Tower’s Chief Executive Officer, said: “In the U.S., accelerating broad-based mid-band deployments and the early indications of capacity-driven new site demand supported our highest quarter of services revenue since 2021.”
“Complemented by favorable leasing and pricing trends at CoreSite, steady activity in our international markets and a continued focus on global cost management, we delivered Attributable AFFO per Share growth of 6.6 percent,” Steven Vondran said.
TelecomLead.com News Desk