This Giant REIT Is Making Merry Thanks To US Data Center Business Growth, Shares Surge

American Tower Corp (NYSE: AMT) reported third-quarter FY23 revenue growth of 5.5% year-on-year to $2.82 billion, beating the consensus estimate of $2.76 billion.

Property revenue increased 7% Y/Y to $2.79 billion. Tenant Billings grew by 7.3%, and Organic Tenant Billings increased by 6.3%.

AFFO per share attributable was $2.58, up by 9.3 Y/Y compared to a consensus of $2.51.

The company generated $892 million in free cash flow. It held $2.23 billion in cash and equivalents.

Tom Bartlett, American Tower's Chief Executive Officer, stated, "Our consolidated tower business again drove Organic Tenant Billings Growth of over 6%, while revenue growth in our U.S. data center business, where we're positioned to deliver a second consecutive year of record new leasing, was over 9%."

American Tower that Tom Bartlett will retire from his positions as President, Chief Executive Officer and director of the Board of Directors, effective February 1, 2024. 

Steve Vondran is to succeed Mr. Bartlett as President and Chief Executive Officer, at which time Mr. Vondran will also be appointed as a director of the Board. To facilitate the transition, the Board also appointed Mr. Vondran to the role of Executive Vice President, Global Chief Operating Officer, for the interim period, effective November 1, 2023 until February 1, 2024. 

FY23 Outlook: American Tower raised property revenue forecast from  $10.790 billion - $10.970 billion to 10.895 billion - $10.985 billion.

It raised AFFO per share from $9.61 - $9.79 to $9.72 - $9.85 vs. consensus $9.75.

AMT Price Action: AMT shares traded higher by 8.42% at $175.57 on the last check Thursday.