American Tower (AMT) Bank of America’s 2024 Media, Communications and Entertainment Conference summary

Strategic priorities and operational focus

• Emphasis on maximizing organic growth and implementing cost controls, targeting $35 million in SG&A savings for the year.

• Automation and machine learning, including drone data collection, are being used to streamline processes and right-size the organization.

• Shift in capital allocation away from emerging markets, with a focus on developed markets for new investments and growth.

• Targeting a leverage ratio of five times by year-end to maintain financial flexibility for M&A, buybacks, or dividend increases.

• Board refreshment and governance improvements are underway, including new board members.

Emerging vs. developed markets strategy

• Operational synergies and demand in emerging markets have been strong, but financial risks, especially FX and carrier consolidation, have limited profitability.

• Raised hurdle rates for emerging market investments and are reducing overall exposure by prioritizing developed market growth.

• Cash flows from emerging markets are being repatriated and reinvested in the U.S., Europe, and CoreSite.

• European expansion is selective, focusing on favorable contract terms, CPI-linked escalators, and high demand environments.

• Building 500 new sites in Europe this year, with a disciplined approach to M&A and portfolio performance.

Domestic tower business and industry challenges

• Comprehensive agreements with carriers provide predictability and operational efficiency, smoothing out peaks and valleys in activity.

• Activity levels have improved, with application volume up 70% in Q1 over Q4, and a steady pace expected for the rest of the year.

• Majority of Sprint churn is behind, with the final tranche of $70 million hitting in Q4.

• Variable rate debt exposure has been reduced, with proceeds from India sale earmarked for further debt paydown.

• Recently received a credit rating upgrade to BBB flat.