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U.S. Organic Growth Forecast Off a Bit in 2015 for American Tower

March 5, 2015

WirelessWatch

March 5, 2015 — American Tower reported above average U.S. organic core revenue growth of 10 percent in 2014, bolstered by the towers it bought from GTP in the fall of 2013 that generated organic core growth of 10.5 percent. In 2015, however, American expects U.S. organic core growth will drop to 7 percent.

Commenced new business is projected to decline by 25 percent versus 2014 levels, driven by AT&T’s slowdown in capital expenditures. “We’ve assumed that the other major carriers will be at least as active as they were in 2014 and if there is a re-acceleration of AT&T spend, there could potentially be some upside later in the year,” said Tom Bartlett, American’s CFO.

U.S. organic leasing for American will benefit from the newly acquired Verizon towers, whose revenues are expected to grow at an average annual rate of around 9 percent to 10 percent for the next five years.

“The Verizon portfolio in particular is poised for strong growth, due to the fact that the properties have not been actively marketed previously and have very limited exposure to churn from its existing tenant base,” Taiclet said.

(Chart courtesy American Tower Corporation)
(1) Historical periods and outlook midpoints reflect organic core growth. Verizon metrics reflect estimated 5-year cash rental revenue growth in respective deal model. (2) 2015E reflects midpoint of 2015 outlook, as reported in the Company’s 8-K, dated February 23, 2015. (3) GTP reflects standalone GTP 2014 organic core growth.
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