American Tower Stock Declines Despite Revenue & AFFO Beat

American Tower Corporation AMT reported its second-quarter 2025 adjusted funds from operations (AFFO), attributable to AMT common stockholders per share, of $2.60, meeting the Zacks Consensus Estimate. This compares favorably with the prior year’s reported figure of $2.54. However, the stock was down 4.09% in the early trading hours owing to significant foreign currency losses reported by the company for the quarter.

Results reflect a year-over-year rise in revenues, aided by revenue growth across its property and service operations segment. American Tower recorded healthy year-over-year organic tenant billings growth of 4.7% and total tenant billings growth of 5.2%.

The company’s total revenues were $2.63 billion, outpacing the Zacks Consensus Estimate of $2.59 billion. The figure increased 3.2% from the prior-year quarter.

Per Steven Vondran, CEO of American Tower, “Backed by resilient mobile demand and the criticality of our assets, our business enters the second half of 2025 with continued momentum and strategic clarity. Our disciplined and long-term approach to maximizing shareholder value through our thoughtful capital allocation strategy, balance sheet strength, best-in-class operational execution, and, most importantly, compelling customer value proposition positions us to derive substantial value from a dynamic market and deliver durable, sustained returns.”

AMT’s Q2 in Detail

Adjusted EBITDA was $1.75 billion, up 1.8% from the prior-year period. The adjusted EBITDA margin was 66.7%.

During the quarter, American Tower spent $185 million on acquisitions, mainly driven by the acquisition of a multi-tenant data center facility in Denver, CO, in which it previously leased space (“DE1”). The acquisition has resulted in incremental customer leases and operating spaces within DE1, and additional space and power capacity that the company intends to develop within the data center.

Property Operations of AMT

Revenues were $2.53 billion, up by 1.2% on a year-over-year basis. Total operating profit was $1.77 billion, and the operating profit margin was 70%.

In the Property segment, revenues from the United States and Canada totaled $1.31 billion, down marginally year over year. Total international revenues amounted to $958 million, up marginally year over year. Data Centers added $262 million to Property revenues, up 13.4% from the prior-year period.

AMT’s Service Operations

Revenues totaled $100 million in the quarter, rising significantly from $47 million in the prior-year quarter. The operating profit was $45 million, and the operating profit margin was 45% in the April-June quarter.

Cash Flow & Liquidity of AMT

In the second quarter, American Tower generated $1.28 billion of cash from operating activities, down 4.3% year over year. Free cash flow in the period was $969 million, falling 4.1% from the prior year.

As of June 30, 2025, the company had $10.5 billion in total liquidity. This comprised $2.1 billion in cash and cash equivalents and the availability of $8.4 billion under its revolving credit facilities (net of any outstanding letters of credit).

AMT’s 2025 Guidance Raised

American Tower now anticipates total property revenues in the band of $10,135-$10,285 million, up from the earlier guided range of $9,970-$10,120 million.

Adjusted EBITDA is revised to the $7,005-$7,075 million band, up from the prior projected range of $6,885-$6,955 million.

AFFO attributable to AMT common stockholders is now expected in the band of $4,905-$4,995 million, up from the company’s prior expectations between $4,850 and $4,940 million.

AFFO, attributable to AMT common stockholders per share, is revised upward to $10.46-$10.65 from the prior projected range of $10.35-$10.54. The Zacks Consensus Estimate for the metric is pegged at $10.58, which is within the company’s guided range.

AMT’s Zacks Rank

AMT currently carries a Zacks Rank #2 (Buy).

American Tower Corporation Price, Consensus and EPS Surprise

American Tower Corporation price-consensus-eps-surprise-chart | American Tower Corporation Quote

Performance of Other REITs

SL Green Realty Corp. SLG reported second-quarter 2025 FFO per share of $1.63, which surpassed the Zacks Consensus Estimate of $1.37. The company had reported an FFO of $2.05 per share in the year-ago period.

Results reflected improved average rental rates on the Manhattan office leases signed in the period. However, elevated interest expenses undermined the results to some extent. Presently, SLG carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Prologis PLD reported second-quarter 2025 core FFO per share of $1.46, outpacing the Zacks Consensus Estimate of $1.41. This compares favorably with the year-ago quarter’s figure of $1.34.

Results reflected a rise in rental revenues and healthy leasing activity. However, high interest expenses were an undermining factor. Currently, PLD carries a Zacks Rank #3.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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