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 98% of our total revenues for the three months ended March 31, 2026 and includes our U.S. & Canada property, Africa & Asia-Pacific (“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 98% and 98% of our total revenues for the three and six months ended June 30, 2026, respectively, and includes our U.S. & Canada property, Africa & Asia-Pacific (“APAC”) property, Europe property and Latin America property segments and Data Centers segment.

Previous wording

Three Months Ended March 31, 2026 and 2025

Current wording

(2)During the three months ended June 30, 2026, we completed the sales of our subsidiary in the Philippines (“ATC Philippines”) and our controlling interest in Kirtonkhola Tower Bangladesh Limited (“KTBL”).

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, 2026 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, 2026 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

Based upon existing customer leases and foreign currency exchange rates as of March 31, 2026, we expect to generate over $50 billion of non-cancellable customer lease revenue over future periods, before the impact of straight-line lease accounting.

Current wording

Based upon existing customer leases and foreign currency exchange rates as of June 30, 2026, we expect to generate nearly $50 billion of non-cancellable customer lease revenue over future periods, before the impact of straight-line lease accounting.

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, 2026, churn was approximately 5% of our tenant billings, primarily driven by churn due to one of our U.S. customers, DISH Wireless L.L.C., a subsidiary of DISH Network Corporation (“DISH”) in our U.S. & Canada property segment, as discussed below. Beginning on January 1, 2026, 100% of DISH revenue will be reflected in churn.

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, 2026, churn was approximately 5% of our tenant billings, primarily driven by churn due to one of our U.S. customers, DISH Wireless L.L.C., a subsidiary of DISH Network Corporation (“DISH”) in our U.S. & Canada property segment, as discussed below. Beginning on January 1, 2026, 100% of DISH revenue will be reflected in churn.

Previous wording

AT&T Mexico Dispute. We are currently engaged in a legal dispute (the “Arbitration”) with one of our customers in Mexico, AT&T Comunicaciones Digitales, S. de R.L. de C.V. and related entities (collectively, “AT&T Mexico”). AT&T Mexico, which represented approximately $300 million of tenant revenue in 2025, is challenging the calculation of the monthly lease amount established under our Master Lease Agreement with AT&T Mexico (the “MLA”), as well as certain other provisions of the MLA, seeking rent abatement both retroactively and prospectively, and had been withholding tower rents since the start of 2025. We incurred approximately $30 million of reserves during the year ended December 31, 2025, and an additional approximately $10 million of reserves during the three months ended March 31, 2026, related to this customer. We expect to record future reserves until the Arbitration is settled. We believe we have meritorious defenses to the claims raised in this Arbitration, are vigorously defending the full enforceability of the MLA and remain confident in the terms and conditions of the MLA. The Arbitration is scheduled for a hearing in August 2026.

Current wording

AT&T Mexico Dispute. We are currently engaged in a legal dispute (the “Arbitration”) with one of our customers in Mexico, AT&T Comunicaciones Digitales, S. de R.L. de C.V. and related entities (collectively, “AT&T Mexico”). AT&T Mexico, which represented approximately $300 million of tenant revenue in 2025, is challenging the calculation of the monthly lease amount established under our Master Lease Agreement with AT&T Mexico (the “MLA”), as well as certain other provisions of the MLA, seeking rent abatement both retroactively and prospectively, and had been withholding tower rents since the start of 2025. We incurred approximately $30 million of reserves during the year ended December 31, 2025, and an additional approximately $20 million of reserves during the six months ended June 30, 2026, related to this customer. We expect to record future reserves until the Arbitration is settled. We believe we have meritorious defenses to the claims raised in this Arbitration, are vigorously defending the full enforceability of the MLA and remain confident in the terms and conditions of the MLA. The Arbitration is scheduled for a hearing in August 2026.

Previous wording

DISH Dispute. On September 24, 2025, DISH delivered a notice purporting to be excused from its contractual obligations under our Strategic Collocation Agreement entered into in March 2021 (the “SCA”). DISH has failed to meet its payment obligations, and as of January 2026 is in default under the SCA. We remain confident that DISH has not been excused from its obligations under the SCA, and that the SCA remains in full force and effect. On October 20, 2025, we filed a complaint in the U.S. District Court for the District of Colorado seeking a declaratory judgment that DISH has not been excused from its obligations under the SCA, that the SCA remains in full force and effect, and that DISH remains required to perform all of its obligations under the SCA. DISH represented approximately 2% and 4% of our total annual property revenue and total annual U.S. & Canada property revenue, respectively, for 2025. DISH is reflected in churn for three months ended March 31, 2026. During the three months ended March 31, 2026, we recorded impairment charges related to DISH of $17.5 million.

Current wording

DISH Dispute. On September 24, 2025, DISH delivered a notice purporting to be excused from its contractual obligations under our Strategic Collocation Agreement entered into in March 2021 (the “SCA”). On October 20, 2025, we filed a complaint in the U.S. District Court for the District of Colorado seeking a declaratory judgment that DISH had not been excused from its obligations under the SCA, that the SCA remained in full force and effect, and that DISH remained required to perform all of its obligations under the SCA. Thereafter, DISH failed to meet its payment obligations, and as of January 2026, has been in default under the SCA. We remain confident that DISH was not excused from its obligations under the SCA. We delivered notices of termination, effective June 2, 2026, to DISH of the SCA and related agreements with DISH.

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•Tenant billings growth of $8.7 million, which was driven by:

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•Partially offset by tenant billings growth of $8.7 million, which was driven by:

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•$34.0 million due to leasing additional space on our sites (“colocations”) and amendments; and

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•$33.8 million due to leasing additional space on our sites (“colocations”) and amendments; and

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•$0.9 million generated from sites acquired or constructed since the beginning of the prior-year period (“newly acquired or constructed sites”);

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•$0.4 million generated from sites acquired or constructed since the beginning of the prior-year period (“newly acquired or constructed sites”);

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•$25.2 million resulting from churn in excess of contractual escalations, primarily related to DISH; and

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•$24.6 million resulting from churn in excess of contractual escalations, primarily related to DISH; and

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•$6.6 million resulting from contractual escalations, net of churn; and

Current wording

•$6.7 million resulting from contractual escalations, net of churn; and

Previous wording

Segment revenue growth included an increase of $31.8 million, attributable to the impact of foreign currency translation, which included, among others, positive impacts of $15.0 million related to fluctuations in Ghanaian Cedi, $8.0 million related to fluctuations in Nigerian Naira, $5.6 million related to fluctuations in South African Rand and $2.2 million related to fluctuations in West African CFA Franc.

Current wording

Segment revenue growth included an increase of $23.7 million attributable to the impact of foreign currency translation, which included, among others, positive impacts of $13.9 million related to fluctuations in Nigerian Naira (“NGN”), $5.9 million related to fluctuations in Ghanaian Cedi (“GHS”) and $5.1 million related to fluctuations in South African Rand (“ZAR”), partially offset by a negative impact of $1.4 million related to fluctuations in Ugandan Shilling.

Previous wording

•$3.1 million generated from newly acquired or constructed sites; and

Current wording

•$3.0 million generated from newly acquired or constructed sites; and

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•An increase of $10.4 million in other revenue, primarily due to the impact of incremental capital contributions, which are amortized over the term of the lease;

Current wording

•An increase of $6.5 million in other revenue, primarily due to the impact of incremental capital contributions, which are amortized over the term of the lease; and

Previous wording

Segment revenue growth included an increase of $27.3 million attributable to the positive impact of foreign currency translation related to fluctuations in Euro (“EUR”).

Current wording

Segment revenue growth included an increase of $7.1 million attributable to the positive impact of foreign currency translation related to fluctuations in Euro (“EUR”).

Previous wording

Segment revenue growth included an increase of $50.8 million attributable to the impact of foreign currency translation, which included, among others, positive impacts of $22.7 million related to fluctuations in Brazilian Real, $18.8 million related to fluctuations in Mexican Peso, $3.7 million related to fluctuations in Colombian Peso and $2.6 million related to fluctuations in Chilean Peso.

Current wording

•An increase of $44.0 million attributable to the impact of foreign currency translation, which included, among others, positive impacts of $20.1 million related to fluctuations in Brazilian Real (“BRL”), $14.8 million related to fluctuations in Mexican Peso (“MXN”) and $5.0 million related to fluctuations in Colombian Peso (“COP”);

Previous wording

•Partially offset by a decrease in tenant billings of $5.8 million, which was driven by:

Current wording

•Partially offset by a decrease in tenant billings of $7.0 million, which was driven by:

Previous wording

•$10.4 million from churn in excess of contractual escalations, primarily related to customer cancellations in Brazil;

Current wording

•$13.5 million from churn in excess of contractual escalations, primarily related to customer cancellations in Brazil;

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•An increase of $25.7 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 $20.3 million in rental, related and other revenue, primarily due to new lease commencements, customer expansions and rent increases upon customer renewals;

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•An increase of $10.3 million in power revenue from new lease commencements, increased power consumption and pricing increases from existing customers;

Current wording

•An increase of $8.2 million in power revenue from new lease commencements, increased power consumption and pricing increases from existing customers;

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•An increase of $4.4 million in interconnection revenue, primarily due to customer interconnection net additions and pricing increases from existing cross connects; and

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•An increase of $3.5 million in interconnection revenue, primarily due to customer interconnection net additions and pricing increases from existing cross connects; and

Previous wording

•An increase of $4.4 million in straight-line revenue.

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•An increase of $3.2 million in straight-line revenue.

Previous wording

Services segment revenue decrease of $7.0 million was primarily attributable to a decreases in site application, zoning and permitting services and structural and mount analyses services, partially offset by an increase in construction management services.

Current wording

Services segment revenue decrease of $38.2 million was primarily attributable to decreases in site application, zoning and permitting services, structural and mount analyses services and construction management services.

Previous wording

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

Current wording

Segment revenue decrease was partially offset by an increase of $0.1 million attributable to the positive impact of foreign currency translation related to fluctuations in CAD.

Previous wording

•Partially offset by a decrease of $0.9 million from other tenant billings; and

Current wording

•$1.6 million from other tenant billings; and

Previous wording

•An increase of $32.0 million in other revenue, primarily due to an increase of $27.9 million from straight-line accounting resulting largely from tenant settlements in Brazil and a decrease in revenue reserves; and

Current wording

•An increase of $46.1 million in other revenue, primarily due to an increase of $26.3 million from straight-line accounting resulting largely from tenant settlements in Brazil and a decrease in revenue reserves; and

Previous wording

•The decrease in U.S. & Canada property segment gross margin was primarily attributable to the decrease in revenue described above and an increase in direct expenses of $3.9 million, primarily due to an increase in repair and maintenance spending. Direct expenses were also negatively impacted by $0.1 million from the impact of foreign currency translation.

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 $1.7 million, primarily due to a decrease in land rent costs, partially offset by increases in repair and maintenance spending and property taxes. Direct expenses also benefited by $0.1 million from the impact of foreign currency translation.

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 $9.1 million, primarily due to an increase in costs associated with pass-through revenue, including fuel and utility costs. Direct expenses were also negatively impacted by $11.7 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 $31.4 million, primarily due to an increase in costs associated with pass-through revenue, including fuel and utility costs. Direct expenses were also negatively impacted by $10.9 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 $6.9 million, primarily due to an increase in costs associated with pass-through revenue, including energy costs and an increase in land rent costs. Direct expenses were also negatively impacted by $9.6 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 $6.8 million, primarily due to an increase in costs associated with pass-through revenue, including energy costs and an increase in land rent costs. Direct expenses were also negatively impacted by $2.7 million from the impact of foreign currency translation.

Previous wording

•The increase in Latin America property segment gross margin was primarily attributable to the increase in revenue described above and a decrease in direct expenses of $2.4 million, primarily due to an decrease in land rent costs. Direct expenses were negatively impacted by $13.5 million from the impact of foreign currency translation.

Current wording

•The increase in Latin America property segment gross margin was primarily attributable to the increase in revenue described above and a decrease in direct expenses of $6.1 million, primarily due to a decrease in land rent costs. Direct expenses were negatively impacted by $12.5 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 $12.8 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 $10.9 million, primarily due to an increase in costs associated with power revenue, including utility costs.

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•The decrease in Services segment gross margin was primarily attributable to the decrease in revenue described above and an increase in direct expenses of $3.6 million.

Current wording

•The decrease in Services segment gross margin was primarily attributable to the decrease in revenue described above, partially offset by a decrease in direct expenses of $14.7 million.

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•The increase in our Data Centers segment SG&A was primarily driven by increased personnel and related costs to support our business.

Current wording

•The increase in our Data Centers segment SG&A was primarily driven by increased personnel and related costs to support our business and increased legal and professional services costs.

Previous wording

•The increase in other SG&A was primarily attributable to an increase in corporate SG&A, including an increase in personnel and related costs to support our business, and an increase in stock-based compensation expense of $5.0 million. Stock-based compensation expense for the three months ended March 31, 2025 included the reversal of $7.1 million of previously recognized expense associated with awards forfeited in connection with the departure of our Executive Vice President and President, APAC due to such role being eliminated.

Current wording

•The decrease in other SG&A was primarily attributable to a decrease in stock-based compensation expense of $13.1 million, partially offset by an increase in corporate SG&A, including an increase in personnel and related costs to support our business.

Previous wording

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

Current wording

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

Previous wording

•The decrease in our Africa & APAC property segment SG&A was primarily driven by decreased professional services costs, partially offset by the negative impact of foreign currency translation.

Current wording

•The increase in our Africa & APAC property segment SG&A was primarily driven by increased personnel and related costs to support our business and the negative impact of foreign currency translation, partially offset by decreased professional services costs.

Previous wording

•The increase in our Latin America property segment SG&A was primarily driven by higher canceled construction costs, an increase in bad debt expense of $2.2 million and the negative impact of foreign currency translation.

Current wording

•The increase in our Latin America property segment SG&A was primarily driven by higher canceled construction costs and the negative impact of foreign currency translation, partially offset by a decrease in bad debt expense of $3.1 million.

Previous wording

•The decrease in our Services segment SG&A was primarily driven by a decrease in net bad debt expense and decreased personnel and related costs.

Current wording

•The decrease in our Services segment SG&A was primarily driven by a decrease in net bad debt expense, decreased personnel and related costs and decreased professional services costs.

Previous wording

•The increases in operating profit for the three months ended March 31, 2026 for our Europe property segment, Latin America property segment and our Data Centers segment were primarily attributable to 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, 2026 for our Africa & APAC property segment, Europe property segment and our Data Centers segment were primarily attributable to increases in our segment gross margin, partially offset by increases in our segment SG&A.