2 Reasons American Tower's Business Will Continue to Flourish
American Tower Corporation (NYSE: AMT) is one of the leading owners and operators of telecommunication towers in the U.S., India, Africa and Latin America. As of its most recent earnings report, American Tower was operating nearly 170,000 towers worldwide. The bulk of its towers are located overseas, but the company still generates the majority of its revenues in the U.S. The company operates as a real estate investment trust (REIT) and has been paying out a growing quarterly dividend over the years.
The company's core business thrives on the predictability of its long-term leases to its tenants. These leases are also anchored by large, reputable clients in the radio, broadcasting and wireless communications industry. With the rapid digitalisation of data and proliferation of smartphones, wireless service providers have been scrambling to upgrade their infrastructure in order to keep up with surging demand.
Source: American Tower's Q3 2019 Supplemental Data; author's compilation
Source Fool.com
