(Reuters) – Real estate investment trust American Tower forecast annual adjusted funds for operations (AFFO) below estimates on Tuesday, after property revenue growth slowed in the fourth quarter.
High interest rates and cost pressures have pushed telecom companies to tighten their budgets, hurting demand for tower infrastructure.
American Tower’s total property revenue increased 2% to $2.48 billion in the fourth quarter, lower than growth of 4.6% last year.
The company leases space on its communication sites to wireless service providers, radio and television broadcasters, and other firms that need network infrastructure.
Its main customers include telecom giants such as AT&T, Verizon and T-Mobile.
American Tower expects annual adjusted funds from operations, a key measure of cash flow, to be between $10.31 and $10.50 per share. Analysts were estimating $10.57, according to data compiled by LSEG.
The company’s adjusted funds for operation for the quarter ended December 31 grew 10.5% to $2.32 per share, compared with estimates of $2.40 per share.
The wireless infrastructure provider reported total revenue of $2.55 billion, above estimates of $2.53 billion.
(Reporting by Priyanka.G in Bengaluru; Editing by Devika Syamnath)
Comments