- Price
- $185.29
- Fair value
- $225.00
- Discount
- 17.6%
- Uncertainty
- Medium
- LSEG rating
- 1.84
- Moat
- Narrow
- Next earnings
- 2026-10-27
- Next earnings is estimate
- No
- Company name
- American Tower
- Sector
- Tower & data center REIT
- About
- American Tower is one of the largest global real estate investment trusts (REITs). It owns, operates and develops communications sites, mostly towers, and leases space on them to wireless carriers and other tenants under long contracts. It has more than 148,000 sites in the United States and Canada, Latin America, Africa and Asia Pacific, and Europe. It also owns US data centers through CoreSite, which has many interconnections between networks and cloud providers. For 2026, it expects property revenue of $10,695 million to $10,845 million, of which $5,060 million to $5,120 million comes from the United States and Canada and $1,200 million to $1,220 million from data centers. As a REIT, it pays out most of its taxable income as dividends.
- Thesis
- The market prices American Tower for slow growth in its largest market and for its debt. In the United States and Canada, organic tenant billings grow only about 0.5% in 2026, and property revenue there falls about 3% at the midpoint of guidance. All revenue from DISH Wireless counts as churn from January 1, 2026, and American Tower ended its DISH agreement in June 2026 and continues to sue DISH. Total debt was $37.19 billion at June 30, 2026, and net leverage was 4.9 times annualized adjusted EBITDA, so higher interest rates raise its costs. Revenue from emerging markets also moves with exchange rates. For the gap to close, three things must be true. US carriers must increase their spending on new equipment, so that US organic tenant billings grow again in 2027. CoreSite must keep its data center growth near the 15% expected for 2026. American Tower must reach its 2026 AFFO guidance of $11.00 to $11.17 per share and keep net leverage near 5 times. The Q3 2026 report on October 27, 2026, is the next test. The 2027 outlook in February 2027 is the main test. If these checks pass, the gap can close over the next three to five quarters. The main reason it may not close is weak spending by US carriers, which leaves tower revenue flat.
- Risks
- A few large wireless carriers give most of the US revenue. Carrier mergers, lower spending or the loss of a tenant can reduce growth. DISH stopped being a source of revenue in 2026, and US organic tenant billings grow only about 0.5% this year.
Total debt was $37.19 billion at June 30, 2026, and net leverage was 4.9 times. About $5.2 billion was due within 12 months. Higher interest rates raise the cost of refinancing.
Latin America, Africa and Asia Pacific give a large part of revenue in local currencies. Weaker currencies, inflation or tenant problems in these markets can lower results. Organic tenant billings in Latin America fall about 3% in 2026.
The data center business needs large investments and much power. Delays in power supply or lower demand from cloud and AI customers can slow its growth.
- Balance sheet
- Cash: $1.8B
Debt: $37.2B
Net debt: $35.4B
Net debt / EBITDA: 4.9× (high)
Interest cover: 3.6×
Undrawn credit line: $8.2B
Debt due within 12 months: $5.2B
American Tower funds its towers and data centers with senior unsecured notes, bank loans and revolving credit facilities. At June 30, 2026, total debt was $37.19 billion, and cash was $1.76 billion, so net debt was $35.43 billion. The company states net leverage of 4.9 times net debt to Q2 2026 adjusted EBITDA multiplied by four. About $5.23 billion of long-term obligations were current. Total liquidity was about $9.9 billion, including about $8.2 billion available under its revolving credit facilities. In May 2026, it extended the maturities of its $6.0 billion and $4.0 billion revolving credit facilities and its $1.0 billion term loan. Interest cover is operating income divided by interest expense for the first half of 2026. In September 2026, it issued $1.6 billion of new notes due 2031 to 2036. It pays a quarterly dividend of $1.79 per share.
As of 2026-06-30.
- Checkpoints
- Oct 27, 2026: Q3 2026 earnings: US leasing and data centers. Pending. Watch: AFFO per share on track for the $11.00 to $11.17 guidance and steady data center growth pass; a cut to the guidance fails.
Feb 2027 (estimate): 2027 outlook: US organic growth. Pending. Watch: A 2027 outlook with higher US organic tenant billings growth than the about 0.5% of 2026 and AFFO per share growth passes; flat or lower AFFO per share fails.
- Recent events
- 2026-09-18: American Tower declared a dividend of $1.79 per share, payable on October 20, 2026. The board also elected Kristen M. Ludgate, the former Chief People Officer of HP, as a director.
2026-09-14: American Tower issued $1.6 billion of senior notes: $500 million of 5.300% notes due 2031, $500 million of 5.560% notes due 2033 and $600 million of 5.750% notes due 2036.
2026-07-28: American Tower reported Q2 2026 results. Total revenue rose 4.7% to $2,749 million, and adjusted EBITDA rose 3.2% to $1,808 million. AFFO per share rose 4.2% to $2.71. CoreSite had record leasing activity. The company raised its 2026 outlook for the second time, to AFFO of $11.00 to $11.17 per share.
2026-06-15: American Tower sold its subsidiary in the Philippines for $75.6 million. On June 29, 2026, it also sold its controlling interest in a tower company in Bangladesh for $6.9 million.
2026-06-02: American Tower ended its 2021 Strategic Collocation Agreement with DISH Wireless. All DISH revenue already counts as churn from January 1, 2026, so the company does not expect an impact on its 2026 results. It continues to sue DISH over its obligations under the agreement.