HOW CAN WE HELP?
AMERICAN TOWER CORPORATION ($AMT) FUNDAMENTALS
AMERICAN TOWER QUICK FACTS
- From 2nd quarter 2018 through 1st quarter 2019, ATC built 16 towers in the United States while acquiring 204 towers.
- During that same time, they decommissioned 162 towers.
- American Tower has done lease buyouts on just over 13,000 of their towers. (33% of all towers in the US).
- 90% of American Tower tower site ground leases are held by landlords who own a single site.
- American Tower has an average term remaining of 28 years on its ground leases.
AMERICAN TOWER LEASE EXTENSIONS AND BUYOUTS
As of the end of Q1 2019, American Tower had an average of 28 years remaining on average for all its cell tower ground leases in the US which represents a 4-year increase from the same time in 2014. (In other words, American Tower continues to buy or extend its leases.) Of the towers ATC owns in the U.S., approximately 90% of them are on property where the property owner only has one tower lease altogether with American Tower. This means that ATC is a party to leases with over 35,000 individual property owners.
WHY WOULD AMERICAN TOWER WANT TO PURCHASE AN EASEMENT OR EXTEND YOUR LEASE FAR IN ADVANCE OF ITS EXPIRATION?
- To get to landowners prior to the landowner retaining an expert who can help them understand the true value proposition in the lease; and
- To prevent the landowner from selling the lease to a third party lease buyout company
- In the case of a lease buyout, to change the ongoing operating expenditure (Opex) for the lease and convert it to capital expenditure (Capex). This is particularly important for Real Estate Investment Trusts.
WE HELP YOU REVIEW AMERICAN TOWER PROPOSALS
- American Tower Lease Buyout: AMT offers to purchase the ground rights under their existing tower through a perpetual or fixed term easement..
- American Tower Ground Lease Extension: AMT proposes to extend their ground lease for 30-50 years. They typically offer a nominal signing bonus and will sometimes offer to increase the rent going forward.
- American Tower Proposed Cell Tower Lease: AMT contacts a landowner to enter into a lease to erect a tower on the property.
- American Tower Rooftop Lease Purchase Offer: AMT has recently formed a Rooftop Lease Buyout division to contact building owners who have rooftops where they lease space to wireless carriers directly. They then propose to acquire the rooftop leases plus the rights to the remaining space on the rooftop so that they can lease to other wireless carriers.
- American Tower Lease Expansion or Consent Requests: AMT will contact their existing landowners to request the right to expand their lease footprint or to receive consent to sublease space on the tower to a wireless provider.
Please contact us to discuss any questions you might have about a proposal you have received from American Tower Corporation. The initial discussion is free and once we talk to you and understand your needs, we can advise you as to what the costs would be should you choose to retain our services. Unlike our competitors, we offer the flexibility of either a fixed fee consulting service or a contingency based service.