BOSTON--(BUSINESS WIRE)--American Tower Corporation (NYSE: AMT) today reported financial results for the quarter ended September 30, 2020.

Tom Bartlett, American Tower’s Chief Executive Officer, stated, “We saw strong demand across our global portfolio of communications real estate in the third quarter as our tenants deployed new technology, densified their networks and enhanced critical broadband connectivity for their customers during the ongoing pandemic. As a result, we drove Consolidated AFFO per Share growth of nearly 15% while again delivering solid growth in our dividend.

Looking forward, as 5G deployments in the U.S. accelerate and as wireless technology evolves globally, we believe that our macro tower-oriented footprint is well-positioned to generate consistent, recurring growth and attractive returns. In addition, to further broaden our tenant base and total addressable market, we are pursuing complementary opportunities to extend our communications real estate platform.”

Please refer to “Non-GAAP and Defined Financial Measures” below for definitions and other information regarding the Company’s use of non-GAAP measures. For financial information and reconciliations to GAAP measures, please refer to the “Unaudited Selected Consolidated Financial Information” below.

CAPITAL ALLOCATION OVERVIEW

Distributions – During the quarter ended September 30, 2020, the Company declared the following regular cash distributions to its common stockholders:

Capital Expenditures – During the third quarter of 2020, total capital expenditures were approximately $251 million, of which $29 million was for non-discretionary capital improvements and corporate capital expenditures. For additional capital expenditure details, please refer to the supplemental disclosure package available on the Company’s website.

Acquisitions – During the third quarter of 2020, the Company spent approximately $101 million to acquire 305 communications sites, primarily in international markets, including 195 communications sites in France as part of its previously announced agreement with Orange S.A.

Other Events – In April 2019, Tata Teleservices Limited served notice of exercise of its put options with respect to 100% of its remaining combined holdings with Tata Sons in ATC Telecom Infrastructure Private Limited (“ATC TIPL”). The Company expects to pay INR 24.8 billion (approximately $336 million at the September 30, 2020 exchange rate) to redeem the put shares in the fourth quarter of 2020, subject to regulatory approval. After the completion of the redemption, the Company will hold an approximately 92% ownership interest in ATC TIPL.

Additionally, during the third quarter of 2020, the Company signed a new master lease agreement (“MLA”) with T-Mobile US, Inc. (“T-Mobile”). The Company’s third quarter 2020 results and revised full year 2020 outlook include impacts from the MLA.

LEVERAGE AND FINANCING OVERVIEW

Leverage – For the quarter ended September 30, 2020, the Company’s Net Leverage Ratio was 4.5x net debt (total debt less cash and cash equivalents) to third quarter 2020 annualized Adjusted EBITDA.

Liquidity and Financing Activities – As of September 30, 2020, the Company had nearly $6.7 billion of total liquidity, consisting of $1.6 billion in cash and cash equivalents plus the ability to borrow an aggregate of approximately $5.1 billion under its revolving credit facilities, net of any outstanding letters of credit.

During the third quarter of 2020, the Company issued $1.1 billion in senior unsecured notes and an additional €1.4 billion in Euro-denominated senior unsecured notes (approximately $1.65 billion at the date of issuance). The net proceeds were used to repay existing indebtedness and for general corporate purposes.

On July 6, 2020, the Company completed its previously announced redemption of all of its outstanding 3.450% senior unsecured notes due 2021 and all of its outstanding 3.300% senior unsecured notes due 2021, for an aggregate principal amount of $1.4 billion.

Additionally, on August 5, 2020, the Company established an “at the market” stock offering program through which it may issue and sell shares of its common stock having an aggregate gross sales price of up to $1.0 billion. No shares have been issued under the program as of October 28, 2020.

FULL YEAR 2020 OUTLOOK

The following full year 2020 estimates are based on a number of assumptions that management believes to be reasonable and reflect the Company’s expectations as of October 29, 2020. Actual results may differ materially from these estimates as a result of various factors, and the Company refers you to the cautionary language regarding “forward-looking” statements included in this press release when considering this information.

As of October 29, 2020, based on currently available information and outside of foreign currency translation effects, the Company does not anticipate significant impacts to its underlying operating results in 2020 as a result of the coronavirus (“COVID-19”) pandemic. This is subject to change depending on future developments, which are highly uncertain and cannot be predicted at this time. Additional information pertaining to the impact of COVID-19 on the Company will be provided in our upcoming Form 10-Q for the nine months ended September 30, 2020.

The Company’s outlook is based on the following average foreign currency exchange rates to 1.00 U.S. Dollar for October 29, 2020 through December 31, 2020: (a) 80.90 Argentinean Pesos; (b) 5.50 Brazilian Reais; (c) 800 Chilean Pesos; (d) 3,810 Colombian Pesos; (e) 0.85 Euros; (f) 5.80 Ghanaian Cedis; (g) 73.50 Indian Rupees; (h) 110 Kenyan Shillings; (i) 22.20 Mexican Pesos; (j) 390 Nigerian Naira; (k) 6,990 Paraguayan Guarani; (l) 3.55 Peruvian Soles; (m) 4.00 Polish Zloty; (n) 17.25 South African Rand; (o) 3,700 Ugandan Shillings; and (p) 600 West African CFA Francs.

The Company is raising the midpoint of its full year 2020 outlook for property revenue, net income, Adjusted EBITDA and Consolidated AFFO by $165 million, $90 million, $170 million and $75 million, respectively. These revised expectations include approximately $105 million in straight-line revenue attributable to the Company’s new MLA with T-Mobile.

The Company’s outlook reflects estimated favorable impacts of foreign currency exchange rate fluctuations to property revenue, Adjusted EBITDA and Consolidated AFFO of approximately $15 million, $5 million and $5 million, respectively, as compared to the Company’s prior 2020 outlook. The impact of foreign currency exchange rate fluctuations on net income is not provided, as the impact on all components of the net income measure cannot be calculated without unreasonable effort.

Additional information pertaining to the impact of foreign currency and London Interbank Offered Rate (“LIBOR”) fluctuations on the Company’s outlook has been provided in the supplemental disclosure package available on the Company’s website.

About American Tower

American Tower, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of over 181,000 communications sites. For more information about American Tower, please visit the “Earnings Materials” and “Investor Presentations” sections of our investor relations website at www.americantower.com.