7. American Tower Corporation (NYSE:AMT)
Number of Hedge Fund Holders as of Q4: 70
Akre Capital Management’s Equity Stake: $ 1 Billion
American Tower Corporation (NYSE:AMT) is a leading real estate investment trust (REIT) specializing in wireless and broadcast communications infrastructure. Headquartered in Boston, Massachusetts, the company owns, operates, and develops multitenant communications real estate across various countries, with a portfolio of approximately 180,000 communication sites. American Tower has maintained strong financial performance, boasting a 74.6% gross profit margin and consistently paying dividends for 15 consecutive years.
On March 17, 2025, American Tower Corporation (NYSE:AMT) announced that board member JoAnn A. Reed will not seek re-election at the upcoming Annual Meeting of Stockholders. Reed, a member of the company’s Audit Committee, will continue to serve until the meeting, with no disclosed disagreements regarding company management or operations. Her tenure has been marked by valuable contributions to financial oversight and governance. While the SEC filing did not specify the reason for her departure or name a successor, her exit marks a significant transition for the company’s leadership.
American Tower Corporation (NYSE:AMT) reported strong fourth-quarter 2024 financial results, exceeding analyst expectations with earnings per share of $2.32 versus the projected $1.77 and revenue of $2.55 billion, surpassing the forecasted $2.52 billion. With an annual revenue of $10.1 billion and a 3.2% dividend yield, the company maintains a solid market position. To manage its debt, American Tower priced $1 billion in senior unsecured notes, allocating the proceeds toward repaying existing obligations and reducing debt under its revolving credit facility. Despite challenges such as currency fluctuations and a softer U.S. leasing environment, analyst upgrades signal confidence in the company’s growth potential. Additionally, American Tower adjusted its executive compensation, revising base salaries and target cash bonuses to align leadership incentives with company performance.
Meridian Hedged Equity Fund stated the following regarding American Tower Corporation (NYSE:AMT) in its Q4 2024 investor letter:
“American Tower Corporation (NYSE:AMT) is a leading global owner and operator of wireless communications infrastructure, with a portfolio spanning the U.S. and key international markets. We hold American Tower for its exposure to the secular growth in wireless data consumption and its strategic positioning in underpenetrated emerging markets. The company benefits from long-term contracts with investment-grade wireless carriers, providing strong visibility into future cash flows. This quarter, performance was mixed. Revenue met expectations but fell short of consensus. Adjusted EBITDA declined slightly year-over year, impacted by the divestiture of its India business and elevated bad debt expense. However, organic tenant billings growth remained healthy, with U.S. and international markets posting solid growth. While we maintain conviction in American Tower’s ability to benefit from increasing data consumption and 5G network deployments, near-term currency headwinds and regional challenges warrant monitoring.”
