American Tower Corporation Overview and Analysis

American Tower Corporation is a leading provider of wireless and broadcast communications infrastructure in the United States and internationally. The company operates a large portfolio of wireless communications sites, including cell towers, rooftops, and other structures.

American Tower Corporation was founded in 1995 by James D. Taiclet and has since grown to become one of the largest tower companies in the world. The company is headquartered in Boston, Massachusetts.

American Tower Corporation operates in over 100 markets worldwide, providing a range of services to wireless carriers, broadcasters, and other customers. The company's portfolio includes over 150,000 communications sites globally, making it one of the largest tower companies in the world.

American Tower Corporation generates revenue by collocating space on its towers to wireless carriers. This revenue comes from both international and US carriers, with 44% coming from international carriers and 56% from the US.

The company's US revenue is primarily generated from the big 4 wireless carriers. American Tower Corp has a large portfolio of towers, with 40,359 towers in the US as of mid-2019.

To acquire and maintain its tower portfolio, American Tower Corp must contact landowners to enter into ground leases or assign existing leases from previous companies. This process allows the company to build new towers and lease land from landowners.

American Tower Corp has acquired many of its towers through larger historical acquisitions, including Global Tower Partners, Spectrasite, Airtouch (Verizon), Alltel (Verizon), Cingular (AT&T), and Nextel (Sprint).

American Tower Corporation operates in a competitive industry, with a relatively low ESG risk rating of 12.6 out of 1010. This ranking puts the company at 194 out of 1010 in the industry.

The company's competitors include Crown Castle International Corp., Pinnacle Holdings Inc., and Spectra Site Holdings, Inc. These firms are all major players in the industry, with their own strengths and weaknesses.

Here's a brief overview of the company's industry ranking:

American Tower Corporation is a major player in the industry, and its lease extensions and buyouts are a significant aspect of its business strategy. As of Q1 2019, American Tower had an average of 28 years remaining on its cell tower ground leases in the US.

This represents a 4-year increase from the same time in 2014, indicating that American Tower continues to actively buy or extend its leases. Over the last year, American Tower has paid over $154,000,000 to property owners to purchase their leases.

This means that American Tower has acquired over 5,000 ground leases from landowners. Typically, American Tower does this by purchasing a long-term easement under the lease from the landowner.

American Tower has a strong interest in acquiring or extending its existing ground leases, which can lead to competing interests from third-party buyout companies. In fact, over the last 15 years, Steel in the Air has assisted over 700 landowners who have been contacted by American Tower Corporation regarding lease proposals, extensions, and buyouts.

Here are some key reasons why American Tower might be proactive in its lease extensions and buyouts:

Let's take a look at how some of the key players in the industry stack up in terms of ESG risk and industry rank.

Prologis, Inc. has a relatively low ESG risk rating of 10.9, which is a good sign for investors who prioritize sustainability.

Welltower, Inc. has a slightly higher ESG risk rating of 11.5, but still ranks as low-risk.

Simon Property Group, Inc. and American Tower Corp. both have ESG risk ratings of 12.5 and 12.6 respectively, which is still considered low-risk.

Equinix, Inc. has the highest ESG risk rating of 13.1 among these companies, but it's still classified as low-risk.

Here's a quick comparison of these companies:

These companies are all major players in the industry, but it's worth noting that they have some notable competitors.

American Tower Corporation has a well-structured management and governance system in place.

The company's Board of Directors has a strong presence, with 11 members, including the Chairman, President and CEO, Tom Bartlett. The Board is responsible for making key strategic decisions and overseeing the company's overall direction.

American Tower Corporation has a clear CEO succession plan in place. Tom Bartlett has been the President and CEO since 2013, and the company has a process for identifying and developing future leaders.

The company's leadership team is composed of experienced professionals with deep industry knowledge. They work closely together to drive the company's growth and innovation.

American Tower Corporation has a strong focus on corporate governance, with a clear set of policies and procedures in place to ensure transparency and accountability. This includes regular Board meetings and a robust audit committee.

The company's leadership team is committed to diversity and inclusion, with a goal of increasing diversity on the Board and in leadership positions.

American Tower Corp. has faced significant controversy in the last three years, with a highest Controversy level impacting its ESG Risk Rating. This level of controversy has a direct impact on the company's overall rating.

The company's exposure to material ESG issues is a major concern, with specific issues such as management of these issues not being well addressed. American Tower Corp. needs to improve its management of these issues to reduce its ESG risk.

Controversy and Risk often go hand in hand with ESG issues, and understanding the top ESG issues is crucial to mitigating risk.

American Tower Corp. has specific material ESG issues that expose the company to controversy and risk.

The top material ESG issues for American Tower Corp. include climate change, which affects the company's operations and assets.

Climate change is a pressing concern for companies in the telecommunications industry, as it can impact the reliability and resilience of their infrastructure.

The company's exposure to climate-related events, such as hurricanes and wildfires, is a significant risk factor.

Material ESG issues also include data privacy and security, which is a major concern for companies in the telecommunications sector.

Data breaches can have severe consequences for companies, including financial losses and reputational damage.

American Tower Corp. must manage these ESG issues effectively to minimize risk and maintain stakeholder trust.

The Controversy Rating is a crucial aspect of evaluating a company's ESG (Environmental, Social, and Governance) risk. American Tower Corp.'s ESG Risk Rating has been impacted by controversy in the last three years.

The highest Controversy level that has impacted American Tower Corp.'s ESG Risk Rating in the last three years is a significant concern. This level of controversy is a major red flag for investors and stakeholders.

Understanding the Controversy Rating can help investors make informed decisions about their investments. By knowing the level of controversy, they can assess the potential risks and rewards of investing in a particular company.

The Controversy Rating is a key factor in determining a company's overall ESG risk. It's essential to consider this rating when evaluating a company's sustainability and social responsibility.

American Tower Corp.'s ESG Risk Rating has been impacted by controversy, but the exact level of controversy is not specified in the available data.

American Tower Corporation sends landowners five different proposals. These proposals include a lease buyout, ground lease extension, proposed cell tower lease, rooftop lease purchase offer, and lease expansion or consent requests.

American Tower's lease buyout proposal offers to purchase ground rights under their existing tower through a perpetual or fixed-term easement. This can be a good option for landowners who want to sell their rights to the tower.

Here are the five proposals in a concise list:

In 2020, insider trading cases increased significantly, with a 20% rise in cases compared to the previous year.

The SEC charged 66 individuals and entities with insider trading in 2020, a notable increase from the 55 cases in 2019.

The majority of these cases involved corporate insiders, including CEOs, CFOs, and other high-ranking executives.

These executives often used their access to sensitive information to trade on non-public information, resulting in significant profits for themselves and their families.

The SEC also charged several hedge funds and other institutional investors with insider trading in 2020.

The use of technology, such as encrypted messaging apps and other digital communication tools, made it easier for insiders to communicate and trade on non-public information.

The SEC's enforcement actions in 2020 highlighted the importance of implementing effective compliance programs to prevent insider trading.

In one notable case, a former CEO was charged with insider trading for selling stock based on non-public information about a merger.

The case demonstrated the importance of monitoring and enforcing insider trading policies within companies.

The SEC's efforts to combat insider trading in 2020 sent a clear message to corporate insiders and institutional investors: insider trading will not be tolerated.

American Tower Corporation is notorious for sending out multiple proposals to landowners, leaving many confused about which one to choose. There are five proposals landowners typically receive from American Tower.

If you're unsure about a proposal, it's essential to understand the differences between each one. American Tower Lease Buyout is one option, where they offer to purchase the ground rights under their existing tower.

Another proposal is the American Tower Ground Lease Extension, where they propose to extend their ground lease for 30-50 years. This typically comes with a nominal signing bonus and an increase in rent.

American Tower Proposed Cell Tower Lease is also a common proposal, where they contact a landowner to enter into a lease to erect a tower on the property. In some cases, they may also propose acquiring the rooftop leases plus the rights to the remaining space on the rooftop.

If you're already working with American Tower, you may receive a request to expand their lease footprint or receive consent to sublease space on the tower to a wireless provider. This is known as American Tower Lease Expansion or Consent Requests.

Here's a quick rundown of the five proposals:

American Tower Corporation operates in a dynamic market where its performance is influenced by various factors.

The company's exposure to material ESG issues is a significant consideration. Our exposure score takes into consideration subindustry and company-specific factors such as its business model.

American Tower Corp.'s Exposure is Low, which indicates a relatively limited exposure to different material ESG issues.

American Tower Corporation is a leading independent owner, operator, and developer of broadcast and wireless communications sites in North America and Mexico. Headquartered in Boston, the company operates regional hub offices in six major cities.

Their fully integrated areas of business include site development, construction, components, monitoring, site management, and site leasing. This comprehensive approach serves as an indispensable resource center for the wireless industry.

The company's commitment to providing the most advanced technology and human support is evident in its ability to meet the growing needs of the wireless industry. As the demand for wireless services continues to skyrocket, American Tower is well-positioned to provide turnkey site solutions.

In October, the company secured a contract with the Canadian Broadcasting Corporation for an analog uplink of uninterrupted news feeds over the ANIK-E2 satellite. This demonstrates American Tower's ability to provide reliable and high-quality services to its clients.

The company's acquisition of ICG Satellite Services, Inc. and Maritime Telecommunications Network, Inc. expanded its capabilities in the teleport and satellite services sector. This move enabled American Tower to offer customers more choices in satellite coverage to the Atlantic Ocean region.

With the acquisition of U.S. Electrodynamics, Inc., American Tower gained access to 52 antennae with teleport facilities in three states. This move enabled the company to expand its digital services to high-growth areas such as China, South East Asia, and Australia.