American Tower Corp (NYSE:AMT) stock fell 0.88% (As on February 26, 11:24:47 AM UTC-4, Source: Google Finance) after the company beat fourth-quarter revenue estimates due to recovering demand for its leasing business from telecom and wireless carrier clients. However, the company’s annual forecast and fourth-quarter numbers for adjusted funds from operations (AFFO), a key measure of cash flow, came in below market estimates. Leasing activity in the U.S. is gradually picking up after a slowdown wrought by wireless providers completing their initial deployments of 5G networks. Telecom majors are now expanding their networks to accommodate a growing subscriber base. During the fourth quarter of 2024, total capital expenditures were approximately $453 million, of which $74 million was for non-discretionary capital improvements and corporate capital expenditures. For the quarter ended December 31, 2024, the Company’s Net Leverage Ratio was 5.1x net debt (total debt less cash and cash equivalents) to fourth quarter 2024 annualized Adjusted EBITDA. As of December 31, 2024, the Company had approximately $12.0 billion of total liquidity, consisting of approximately $2.0 billion in cash and cash equivalents plus the ability to borrow an aggregate of approximately $10.0 billion under its revolving credit facilities, net of any outstanding letters of credit.

Meanwhile, during the three months ended December 31, 2024, the Company completed the previously announced sales of 100% of its ownership interests of its subsidiaries in Australia and New Zealand for total aggregate consideration of approximately $77.6 million. The Company has entered into an agreement, which received government approval on February 13, 2025, pursuant to which it expects to sell one of its subsidiaries in South Africa that holds fiber assets for total aggregate consideration of 2.5 billion South African Rand (approximately $132.7 million) subject to certain adjustments. The Company expects to complete the sale during the first quarter of 2025.

AMT in the fourth quarter of FY 24 has reported AFFO growth of 10.5% to $2.32 per share, missing the analysts’ estimates of $2.40. The company had reported the adjusted revenue growth of 3.7 percent to $2.55 billion in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $2.53 billion, according to data compiled by LSEG.

American Tower expects annual AFFO to be between $10.31 and $10.50 per share, below analysts’ estimates of $10.57, according to data compiled by LSEG. American Tower expects 2025 revenue to be between $9.92 billion and $10.07 billion.

The company said demand for connectivity across its global platform continues unabated, despite a challenging macroeconomic environment. It believes strategic steps taken to enhance earnings quality through portfolio management and disciplined capital allocation have positioned it well to navigate volatility.