American Tower Reports Growth Potential Amid Tenant Default
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 23 2026
0mins
Should l Buy AMT?
Source: Benzinga
- Tenant Default Impact: A tenant representing about 2% of annual revenue, approximately $200 million, has defaulted, yet consensus estimates still project a 6.5% growth in AFFO per share, indicating the company's resilience in adversity.
- Strong Financial Performance: In Q3 2025, AFFO per share reached $2.78, reflecting a year-over-year growth of about 10%, while consolidated revenue increased approximately 8% to $2.72 billion, showcasing ongoing expansion in both tower and data center segments.
- Robust Data Center Growth: The CoreSite data center segment reported property revenue growth exceeding 14% year-over-year, driven by new leasing activity linked to cloud and AI demand, highlighting strong market appetite for data center services.
- Positive Future Outlook: Management raised full-year 2025 guidance, projecting approximately 7% growth in AFFO per share, with estimates for 2026 suggesting an AFFO per share of about $10.78, reflecting ongoing improvements in operational efficiency and market demand.
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Analyst Views on AMT
Wall Street analysts forecast AMT stock price to rise
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 171.020
Low
185.00
Averages
211.45
High
254.00
Current: 171.020
Low
185.00
Averages
211.45
High
254.00
About AMT
American Tower Corporation is a global real estate investment trust (REIT) and an independent owner, operator and developer of multitenant communications real estate with a portfolio of nearly 150,000 communications sites and a highly interconnected footprint of United States data center facilities. The Company's segments include U.S. & Canada property, Africa & APAC property, Europe property, Latin America property, Data Centers and Services. The Company’s primary business is leasing space on multitenant communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities and tenants in a number of other industries. The Company’s Data Centers segment relates to data center facilities and related assets that it owns and operates in the United States. Its Services segment offers tower-related services in the United States, including AZP, structural and mount analyses, and construction management.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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See More
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- Simplified Connectivity Solutions: Through Google's VPP program, CoreSite offers customers simplified connectivity solutions that enable seamless access to all Google services, particularly Google Cloud, reducing the complexities associated with direct peering and enhancing the reliability of business operations.
- Multi-Market Network Interfaces: CoreSite achieved Google Gold VPP status by establishing dedicated and redundant private network interfaces (PNIs) across multiple markets, including Atlanta, Denver, Los Angeles, Silicon Valley, and Chicago, ensuring improved latency and performance for customers utilizing Google services.
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- REIT Advantages: Realty Income, structured as a monthly dividend stock, owns over 15,500 properties across 92 industries, providing stability against market downturns, with a current yield of 5% that appeals to income investors.
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- Realty Income's Stability: Realty Income (O) owns over 15,500 properties and has paid monthly dividends for over 50 years, currently yielding 5.16%, with its diversified client base effectively mitigating risks from market fluctuations.
- Schwab ETF's Diversification Advantage: The Schwab U.S. Dividend Equity ETF (SCHD) tracks high-dividend stocks with an annual fee of just 0.06% and a yield of 3.3%, providing investors with solid risk protection and stable income sources.
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