AMERICAN TOWER CORP /MA/

Previous wording

We are one of the largest global real estate investment trusts and a leading independent owner, operator and developer of multitenant communications real estate. Our primary business is the leasing of space on communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities and tenants in a number of other industries. In addition to the communications sites in our portfolio, we manage rooftop and tower sites for property owners under various contractual arrangements. We also hold other telecommunications infrastructure and property interests that we lease primarily to communications service providers and third-party tower operators, and, as discussed further below, we hold a portfolio of highly interconnected data center facilities and related assets in the United States. Our customers include our tenants, licensees and other payers. We refer to the business encompassing the above as our property operations, which accounted for 97% of our total revenues for the three months ended March 31, 2025 and includes our U.S. & Canada property, Africa & APAC property, Europe property and Latin America property segments and Data Centers segment.

Current wording

We are one of the largest global real estate investment trusts and a leading independent owner, operator and developer of multitenant communications real estate. Our primary business is the leasing of space on communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities and tenants in a number of other industries. In addition to the communications sites in our portfolio, we manage rooftop and tower sites for property owners under various contractual arrangements. We also hold other telecommunications infrastructure and property interests that we lease primarily to communications service providers and third-party tower operators, and, as discussed further below, we hold a portfolio of highly interconnected data center facilities and related assets in the United States. Our customers include our tenants, licensees and other payers. We refer to the business encompassing the above as our property operations, which accounted for 96% and 97% of our total revenues for the three and six months ended June 30, 2025, respectively, and includes our U.S. & Canada property, Africa & APAC property, Europe property and Latin America property segments and Data Centers segment.

Previous wording

As of March 31, 2025, our property portfolio included 30 operating data center facilities across 11 markets in the United States that collectively comprise approximately 3.4 million net rentable square feet (“NRSF”) of data center space, as follows:

Current wording

As of June 30, 2025, our property portfolio included 30 operating data center facilities across 11 markets in the United States that collectively comprise approximately 3.6 million net rentable square feet (“NRSF”) of data center space, as follows:

Previous wording

In most of our markets, our tenant leases for our communications sites with wireless carriers generally have initial non-cancellable terms of five to ten years with multiple renewal terms. Accordingly, the vast majority of the revenue generated by our property operations during the three months ended March 31, 2025 was recurring revenue that we should continue to receive in future periods. Most of our tenant leases for our communications sites have provisions that periodically increase or “escalate” the rent due under the lease, typically based on (a) an annual fixed escalation (averaging approximately 3% in the United States), (b) an inflationary index in most of our international markets, or (c) a combination of both. In addition, certain of our tenant leases provide for additional revenue primarily to cover costs (pass-through revenue), such as ground rent or power and fuel costs.

Current wording

In most of our markets, our tenant leases for our communications sites with wireless carriers generally have initial non-cancellable terms of five to ten years with multiple renewal terms. Accordingly, the vast majority of the revenue generated by our property operations during the six months ended June 30, 2025 was recurring revenue that we should continue to receive in future periods. Most of our tenant leases for our communications sites have provisions that periodically increase or “escalate” the rent due under the lease, typically based on (a) an annual fixed escalation (averaging approximately 3% in the United States), (b) an inflationary index in most of our international markets, or (c) a combination of both. In addition, certain of our tenant leases provide for additional revenue primarily to cover costs (pass-through revenue), such as ground rent or power and fuel costs.

Previous wording

The revenues generated by our property operations may be affected by cancellations of existing tenant leases. As discussed above, most of our tenant leases with wireless carriers and broadcasters are multiyear contracts, which typically are non-cancellable; however, in some instances, a lease may be cancelled upon the payment of a termination fee. Revenue lost from either tenant lease cancellations or the non-renewal of leases or rent renegotiations, which we refer to as churn, has historically not had a material adverse effect on the revenues generated by our consolidated property operations. During the three months ended March 31, 2025, churn was approximately 2% of our tenant billings, primarily driven by churn in our U.S. & Canada property segment, as discussed below.

Current wording

The revenues generated by our property operations may be affected by cancellations of existing tenant leases. As discussed above, most of our tenant leases with wireless carriers and broadcasters are multiyear contracts, which typically are non-cancellable; however, in some instances, a lease may be cancelled upon the payment of a termination fee. Revenue lost from either tenant lease cancellations or the non-renewal of leases or rent renegotiations, which we refer to as churn, has historically not had a material adverse effect on the revenues generated by our consolidated property operations. During the six months ended June 30, 2025, churn was approximately 2% of our tenant billings, primarily driven by churn in our U.S. & Canada property segment, as discussed below.

Previous wording

Nareit FFO attributable to American Tower Corporation common stockholders is defined as net income before gains or losses from the sale or disposal of real estate, real estate related impairment charges, real estate related depreciation, amortization and accretion including adjustments and distributions for unconsolidated affiliates and noncontrolling interests and adjustments for discontinued operations. In this section, we refer to Nareit FFO attributable to American Tower Corporation common stockholders as “Nareit FFO (common stockholders).”

Current wording

Nareit FFO attributable to American Tower Corporation common stockholders is defined as net income before gains or losses from the sale or disposal of real estate, real estate related impairment charges, real estate related depreciation, amortization and accretion, and including adjustments and distributions for unconsolidated affiliates and noncontrolling interests and adjustments for discontinued operations. In this section, we refer to Nareit FFO attributable to American Tower Corporation common stockholders as “Nareit FFO (common stockholders).”

Previous wording

Adjusted EBITDA, Nareit FFO (common stockholders), AFFO (common stockholders) and Segment gross margin are not intended to replace net income or any other performance measures determined in accordance with GAAP. None of Adjusted EBITDA, Nareit FFO (common stockholders), AFFO (common stockholders) or Segment gross margin represents cash flows from operating activities in accordance with GAAP and, therefore, these measures should not be considered indicative of cash flows from operating activities, as a measure of liquidity or a measure of funds available to fund our cash needs, including our ability to make cash distributions. Rather, Adjusted EBITDA, Nareit FFO (common stockholders), AFFO (common stockholders) and Segment gross margin are presented as we believe each is a useful indicator of our current operating performance. We believe that these metrics are useful to an investor in evaluating our operating performance because (1) each is a key measure used by our management team for decision making purposes and for evaluating our operating segments’ performance; (2) Adjusted EBITDA is a component underlying our credit ratings; (3) Adjusted EBITDA is widely used in the telecommunications real estate sector to measure operating performance as depreciation, amortization and accretion may vary significantly among companies depending upon accounting methods and useful lives, particularly where acquisitions and non-operating factors are involved; (4) AFFO

Current wording

Adjusted EBITDA, Nareit FFO (common stockholders), AFFO (common stockholders) and Segment gross margin are not intended to replace net income or any other performance measures determined in accordance with GAAP. None of Adjusted EBITDA, Nareit FFO (common stockholders), AFFO (common stockholders) or Segment gross margin represents cash flows from operating activities in accordance with GAAP and, therefore, these measures should not be considered indicative of cash flows from operating activities, as a measure of liquidity or a measure of funds available to fund our cash needs, including our ability to make cash distributions. Rather, Adjusted EBITDA, Nareit FFO (common stockholders), AFFO (common stockholders) and Segment gross margin are presented as we believe each is a useful indicator of our current operating performance. We believe that these metrics are useful to an investor in evaluating our operating performance because (1) each is a key measure used by our management team for decision making purposes and for evaluating our operating segments’ performance; (2) Adjusted EBITDA is a component underlying our credit ratings; (3) Adjusted EBITDA is widely used in the telecommunications real estate sector to measure operating performance as depreciation, amortization and accretion may vary significantly among companies depending upon accounting methods and useful lives, particularly where acquisitions and non-operating factors are involved; (4) AFFO (common stockholders) is widely used in the telecommunications real estate sector to adjust Nareit FFO (common stockholders) for items that may otherwise cause material fluctuations in Nareit FFO (common stockholders) growth from period to period that would not be representative of the underlying performance of property assets in those periods; (5) Segment gross margin provides valuable insight into the site-level profitability of our assets (6) each provides investors with a meaningful measure for evaluating our period-to-period operating performance by eliminating items that are not operational in nature; and (7) each provides investors with a measure for comparing our results of operations to those of other companies, particularly those in our industry.

Previous wording

•A decrease of $56.5 million in other revenue, primarily due to a decrease of $56.7 million due to straight-line accounting;

Current wording

•A decrease of $54.5 million in other revenue, primarily due to a decrease of $44.8 million due to straight-line accounting;

Previous wording

•Partially offset by tenant billings growth of $44.3 million, which was driven by:

Current wording

•Partially offset by tenant billings growth of $46.2 million, which was driven by:

Previous wording

•$38.0 million due to leasing additional space on our sites (“colocations”) and amendments;

Current wording

•$38.6 million due to leasing additional space on our sites (“colocations”) and amendments;

Previous wording

•$1.0 million generated from sites acquired or constructed since the beginning of the prior-year period (“newly acquired or constructed sites”);

Current wording

•$1.6 million generated from sites acquired or constructed since the beginning of the prior-year period (“newly acquired or constructed sites”);

Previous wording

•$2.6 million from other tenant billings;

Current wording

•$2.6 million from other tenant billings; and

Previous wording

Segment revenue growth was partially offset by a decrease of $7.6 million, attributable to the impact of foreign currency translation, which included, among others, negative impacts of $8.2 million related to fluctuations in Nigerian Naira and $7.6 million related to fluctuations in Ghanaian Cedi, offset by positive impacts of $6.0 million related to fluctuations in Kenyan Shilling and $2.6 million related to fluctuations in Ugandan Shilling.

Current wording

Segment revenue growth included an increase of $5.9 million, attributable to the impact of foreign currency translation, which included, among others, positive impacts of $5.3 million related to fluctuations in Ghanaian Cedi (“GHS”), $2.1 million related to fluctuations in Ugandan Shilling (“UGX”) and $1.1 million related to fluctuations in West African CFA Franc, partially offset by negative impacts of $4.0 million related to fluctuations in Nigerian Naira (“NGN”).

Previous wording

Segment revenue growth was partially offset by a decrease of $7.4 million attributable to the negative impact of foreign currency translation related to fluctuations in Euro (“EUR”).

Current wording

Segment revenue growth included an increase of $11.1 million attributable to the positive impact of foreign currency translation related to fluctuations in Euro (“EUR”).

Previous wording

•A decrease of $58.8 million, attributable to the impact of foreign currency translation, which included, among others, negative impacts of $31.5 million related to fluctuations in Brazilian Real, $25.0 million related to fluctuations in Mexican Peso and $2.2 million related to fluctuations in Colombian Peso;

Current wording

•A decrease of $35.0 million, attributable to the impact of foreign currency translation, which included, among others, negative impacts of $16.8 million related to fluctuations in Mexican Peso (“MXN”), $16.4 million related to fluctuations in Brazilian Real (“BRL”) and $2.0 million related to fluctuations in Colombian Peso (“COP”);

Previous wording

•$3.3 million from contractual escalations, net of churn; and

Current wording

•$3.7 million from contractual escalations, net of churn; and

Previous wording

•An increase of $12.9 million in rental, related and other revenue, primarily due to new lease commencements, customer expansions and rent increases upon customer renewals;

Current wording

•An increase of $18.7 million in rental, related and other revenue, primarily due to new lease commencements, customer expansions and rent increases upon customer renewals;

Previous wording

•An increase of $6.4 million in power revenue from new lease commencements, increased power consumption and pricing increases from existing customers; and

Current wording

•An increase of $9.0 million in power revenue from new lease commencements, increased power consumption and pricing increases from existing customers; and

Previous wording

•An increase of $3.4 million in interconnection revenue, primarily due to customer interconnection net additions and pricing increases from existing cross connects;

Current wording

•An increase of $4.2 million in interconnection revenue, primarily due to customer interconnection net additions and pricing increases from existing cross connects;

Previous wording

•Partially offset by a decrease of $3.2 million in straight-line revenue.

Current wording

•Partially offset by a decrease of $0.8 million in straight-line revenue.

Previous wording

Services segment revenue growth of $44.4 million was primarily attributable to an increase in site application, zoning and permitting services, construction management services and structural and mount analyses services.

Current wording

Services segment revenue growth of $52.1 million was primarily attributable to an increase in construction management services, site application, zoning and permitting services and structural and mount analyses services.

Previous wording

Segment revenue growth was partially offset by a decrease of $0.2 million attributable to the negative impact of foreign currency translation related to fluctuations in Canadian Dollar.

Current wording

Segment revenue decrease included a decrease of $0.2 million attributable to the negative impact of foreign currency translation related to fluctuations in CAD.

Previous wording

•The increase in Africa & APAC property segment gross margin was primarily attributable to the increase in revenue described above, partially offset by an increase in direct expenses of $7.2 million, primarily due to an increase in repair and maintenance spending. Direct expenses also benefited by $1.9 million from the impact of foreign currency translation.

Current wording

•The increase in Africa & APAC property segment gross margin was primarily attributable to the increase in revenue described above, partially offset by an increase in direct expenses of $4.1 million, primarily due to an increase in repair and maintenance spending and an increase in costs associated with pass-through revenue, including fuel and utility costs. Direct expenses were also negatively impacted by $2.6 million from the impact of foreign currency translation.

Previous wording

•The increase in Europe property segment gross margin was primarily attributable to the increase in revenue described above, partially offset by an increase in direct expenses of $5.1 million, primarily due to an increase in land rent costs. Direct expenses also benefited by $2.6 million from the impact of foreign currency translation.

Current wording

•The increase in Europe property segment gross margin was primarily attributable to the increase in revenue described above, partially offset by an increase in direct expenses of $9.3 million, primarily due to an increase in costs associated with pass-through revenue, including energy costs. Direct expenses were also negatively impacted by $4.1 million from the impact of foreign currency translation.

Previous wording

•The decrease in Latin America property segment gross margin was primarily attributable to the decrease in revenue described above, partially offset by a decrease in direct expenses of $0.7 million. Direct expenses also benefited by $16.9 million from the impact of foreign currency translation.

Current wording

•The decrease in Latin America property segment gross margin was primarily attributable to the decrease in revenue described above, partially offset by a decrease in direct expenses of $2.6 million. Direct expenses also benefited by $9.4 million from the impact of foreign currency translation.

Previous wording

•The increase in Data Centers segment gross margin was primarily attributable to the increase in revenue described above, partially offset by an increase in direct expenses of $6.4 million, primarily due to an increase in costs associated with power revenue, including utility costs.

Current wording

•The increase in Data Centers segment gross margin was primarily attributable to the increase in revenue described above, partially offset by an increase in direct expenses of $3.6 million, primarily due to an increase in costs associated with power revenue, including utility costs. Direct expenses were benefited by a legal settlement and resolution of a utility back billing matter.

Previous wording

•The increase in Services segment gross margin was primarily attributable to the increase in revenue described above, partially offset by an increase in direct expenses of $21.0 million.

Current wording

•The increase in Services segment gross margin was primarily attributable to the increase in revenue described above, partially offset by an increase in direct expenses of $26.1 million.

Previous wording

•The decrease in U.S. & Canada property segment gross margin was primarily attributable to the decrease in revenue described above, partially offset by a decrease in direct expenses of $2.0 million.

Current wording

•The decrease in U.S. & Canada property segment gross margin was primarily attributable to the decrease in revenue described above, partially offset by a decrease in direct expenses of $0.4 million.

Previous wording

•The increase in our U.S. & Canada property segment SG&A was primarily driven by a net increase in bad debt expense and increased personnel and related costs to support our business, partially offset by decreased professional services costs and lower canceled construction costs.

Current wording

•The increase in our U.S. & Canada property segment SG&A was primarily driven by increased personnel and related costs and an increase in bad debt expense, partially offset by lower canceled construction costs.

Previous wording

•The decrease in our Latin America property segment SG&A was primarily driven by a net decrease in bad debt expense of $4.3 million, decreased personnel and related costs and a benefit from the impact of foreign currency translation, partially offset by increased professional services costs.

Current wording

•The decrease in our Latin America property segment SG&A was primarily driven by decreased personnel and related costs and a benefit from the impact of foreign currency translation, partially offset by increased professional services costs and a net increase in bad debt expense.

Previous wording

•The decrease in other SG&A was primarily attributable to a decrease in stock-based compensation expense of $9.4 million, primarily driven by the reversal of previously recognized stock-based compensation expense associated with awards forfeited in connection with the departure of our Executive Vice President and President, APAC due to such role being eliminated, as discussed in note 9 to our consolidated and condensed consolidated financial statements included in this Quarterly Report.

Current wording

•The decrease in other SG&A was primarily attributable to a decrease in stock-based compensation expense of $6.4 million, primarily driven by the reversal of previously recognized stock-based compensation expense associated with awards forfeited in connection with the departure of our Executive Vice President and President, APAC due to such role being eliminated, as discussed in note 9 to our consolidated and condensed consolidated financial statements included in this Quarterly Report.

Previous wording

•The increases in operating profit for the three months ended March 31, 2025 for our Africa & APAC property segment, Data Centers segment and our Services segment were primarily attributable increases in our segment gross margin, partially offset by increases in our segment SG&A.

Current wording

•The increases in operating profit for the three and six months ended June 30, 2025 for our Africa & APAC property segment, Data Centers segment and our Services segment were primarily attributable increases in our segment gross margin, partially offset by increases in our segment SG&A.

Previous wording

•The increase in operating profit for the three months ended March 31, 2025 for our Europe property segment was primarily attributable to an increase in our segment gross margin.

Current wording

•The increases in operating profit for the three and six months ended June 30, 2025 for our Europe property segment were primarily attributable to increases in our segment gross margin and decreases in our segment SG&A.

Previous wording

•The decrease in operating profit for the three months ended March 31, 2025 for our Latin America property segment was primarily attributable to a decrease in our segment gross margin, partially offset by a decrease in our segment SG&A.

Current wording

•The decrease in operating profit for the three months ended June 30, 2025 for our Latin America property segment was primarily attributable to a decrease in our segment gross margin and an increase in our segment SG&A. The decrease in operating profit for the six months ended June 30, 2025 for our Latin America property segment was primarily attributable to a decrease in our segment gross margin, partially offset by a decrease in our segment SG&A.

Previous wording

The decrease in depreciation, amortization and accretion expense for the three months ended March 31, 2025 was primarily attributable to foreign currency exchange rate fluctuations and decreases in property and equipment and intangible assets subject to amortization as a result of impairments taken and disposals since the beginning of the prior-year period.

Current wording

The decreases in depreciation, amortization and accretion expense for the three and six months ended June 30, 2025 were primarily attributable to foreign currency exchange rate fluctuations.

Previous wording

The increase in other operating income during the three months ended March 31, 2025 was primarily attributable to the gain on the sale of South Africa Fiber of $53.6 million.

Current wording

The change in other operating (income) expense during the three months ended June 30, 2025 was primarily attributable to a decrease in losses on sales or disposals of assets. The increase in other operating (income) expense during the six months ended June 30, 2025 was primarily attributable to the gain on the sale of South Africa Fiber of $53.6 million.

Previous wording

Total other expense consists primarily of interest expense and realized and unrealized foreign currency gains or losses as a result of foreign currency exchange rate fluctuations primarily associated with our intercompany notes and similar unaffiliated balances denominated in a currency other than the subsidiaries’ functional currencies.

Current wording

Total other expense consists primarily of interest expense and realized and unrealized foreign currency gains or losses as a result of foreign currency exchange rate fluctuations primarily associated with our EUR denominated senior unsecured notes, our intercompany notes and similar unaffiliated balances denominated in a currency other than the subsidiaries’ functional currencies.

Previous wording

The increase in total other expense during the three months ended March 31, 2025 was primarily due to foreign currency losses of $345.7 million in the current period, as compared to foreign currency gains of $127.7 million in the prior-year period.

Current wording

The increase in total other expense during the three months ended June 30, 2025 was primarily due to an increase in foreign currency losses of $462.3 million. Total other expense during the three months ended June 30, 2025 also includes $110.7 million in unrealized gains from equity securities in the United States. The increase in total other expense during the six months ended June 30, 2025 was primarily due to foreign currency losses of $829.7 million in the current period, as compared to foreign currency gains of $106.0 million in the prior-year period. Total other expense during the six months ended June 30, 2025 also includes $118.3 million in unrealized gains from equity securities in the United States.

Previous wording

As a real estate investment trust for U.S. federal income tax purposes (“REIT”), we may deduct earnings distributed to stockholders against the income generated by our REIT operations. Consequently, the effective tax rate on income from continuing operations for the three months ended March 31, 2025 and 2024 differs from the federal statutory rate.

Current wording

As a real estate investment trust for U.S. federal income tax purposes (“REIT”), we may deduct earnings distributed to stockholders against the income generated by our REIT operations. Consequently, the effective tax rate on income from continuing operations for the six months ended June 30, 2025 and 2024 differs from the federal statutory rate.

Previous wording

The increase in the income tax provision during the three months ended March 31, 2025 was primarily attributable to taxes incurred as a result of the sale of South Africa Fiber.

Current wording

The increases in the income tax provision during the three and six months ended June 30, 2025 were primarily attributable to unrealized gains from equity securities in the United States and the accrual of taxes related to the anticipated repatriation of funds from certain foreign subsidiaries. The income tax provision during the six months ended June 30, 2025 also includes taxes incurred as a result of the sale of South Africa Fiber.

Previous wording

(1)For the three months ended March 31, 2024, includes Income from discontinued operations, net of taxes of $91.7 million.

Current wording

(1)For the three and six months ended June 30, 2024, includes Income from discontinued operations, net of taxes of $138.5 million and $230.2 million, respectively.