On October 26, 2023, American Tower Corp (AMT, Financial) released its financial results for the third quarter of 2023. The company reported a 5.5% increase in total revenue to $2,819 million and a 7.0% increase in property revenue to $2,792 million. However, net income decreased by 29.6% to $577 million. Adjusted EBITDA saw a 10.4% increase to $1,814 million.
Financial Highlights
Despite the decrease in net income, American Tower Corp (AMT, Financial) reported several positive financial results. The company's net income attributable to AMT common stockholders decreased by 30.1% to $587 million, while AFFO attributable to AMT common stockholders increased by 9.5% to $1,206 million. The company also reported a 39.5% increase in cash provided by operating activities to $1,301 million.
CEO Commentary
Tom Bartlett, American Tower’s Chief Executive Officer, stated, “We had a strong quarter, as our global portfolio of communications assets continued to demonstrate resiliency in an increasingly challenging macroeconomic environment. Our consolidated tower business again drove Organic Tenant Billings Growth of over 6%, while revenue growth in our U.S. data center business, where we’re positioned to deliver a second consecutive year of record new leasing, was over 9%. This performance, coupled with an on-going focus towards cost management, drove Attributable AFFO per Share growth of over 9%. As a result of our strong results, and a high degree of visibility through the balance of the year, we are pleased to again raise our full year outlook for property revenue, Adjusted EBITDA and Attributable AFFO, and remain encouraged by our positioning as we look forward to 2024."
Capital Allocation and Leverage
During the third quarter of 2023, American Tower Corp (AMT, Financial) declared regular cash distributions to its common stockholders amounting to $755 million, reflecting a year-over-year per share growth of 10.2%. The company also spent approximately $408 million on capital expenditures and $61 million on acquisitions. As of September 30, 2023, the company's Net Leverage Ratio was 5.0x net debt to third quarter 2023 annualized Adjusted EBITDA.
Outlook for 2023
Based on the company's strong results and visibility through the balance of the year, American Tower Corp (AMT, Financial) has raised the midpoints of its full year 2023 outlook for property revenue, Adjusted EBITDA, AFFO attributable to AMT common stockholders and AFFO attributable to AMT common stockholders per Share by $60 million, $60 million, $40 million and $0.09, respectively. However, the midpoint for net income and net income attributable to AMT common stockholders has been reduced by $90 million, primarily due to the goodwill impairment charges in India.
Explore the complete 8-K earnings release (here) from American Tower Corp for further details.
