American Tower lifts 2025 property revenue forecast as wireless carriers vie for infrastructure

American Tower (AMT.N) has raised its full-year property revenue forecast to $10.14-$10.29 billion and its adjusted funds from operations (AFFO) per share outlook to $10.46-$10.65, surpassing analyst expectations. This upward revision reflects strong leasing activity from wireless carriers, including AT&T, T-Mobile, and Verizon, driven by intensified competition for 5G infrastructure, along with favorable foreign currency movements. Despite a 58.1% decline in Q2 net income primarily due to foreign currency losses, the company reported Q2 revenue of $2.63 billion, exceeding estimates, and improved Q2 AFFO per share.

Analysis

American Tower (AMT) has raised its full-year guidance, signaling strong underlying business momentum driven by the secular demand for 5G infrastructure. The company increased its property revenue forecast to a range of $10.14 billion to $10.29 billion and its adjusted funds from operations (AFFO) per share outlook to $10.46-$10.65, which notably exceeds the analyst consensus of $10.27. This optimism is rooted in robust leasing activity from its key tenants—AT&T, T-Mobile, and Verizon—which collectively accounted for 86% of its U.S. and Canada property revenue last year. The revised forecast also incorporates a positive impact from foreign currency exchange rate fluctuations. While second-quarter results showed a revenue beat at $2.63 billion and year-over-year growth in the critical AFFO per share metric to $2.60, reported net income fell sharply by 58.1% to $381 million. However, the company attributes this decline primarily to foreign currency losses, suggesting the drop is not indicative of deteriorating operational performance, a view supported by the strength in its revenue and AFFO figures.

Key Decisions for Investors

• Investors should view the upgraded full-year AFFO guidance as a primary indicator of fundamental strength, reinforcing the thesis that American Tower is a core beneficiary of the ongoing 5G investment cycle.
• It is crucial to prioritize the growth in AFFO per share, a key metric for REIT performance, over the headline drop in net income, which the company attributed to non-operational foreign currency losses.
• Given that foreign exchange rates were cited as both a tailwind for revenue guidance and a headwind for Q2 net income, monitoring currency volatility remains a key risk factor for the company's reported results.