AMT: Q2 2023 Beat And Raise

American Tower (AMT) delivered the coveted “beat and raise”.

It’s like the beat and raise in Q1 2023, but this time the sequel is better than the original.

I put together a chart to highlight several of the values I wanted to see:

We’re calculating from the left to the right. The numbers that are most relevant to me are the ones highlighted in sky blue. This is a good quarter and it is driving results for the year. We have improved guidance for revenue. Part of that will be straight-line revenue, but a good chunk should show up in cash this year.

Interest expense is projected to be a bit higher, which fits with the increase in interest rates over the last several months.

When AMT provides “AFFO”, they add back stock-based compensation (many REITs do). I’m not a fan of adding back stock issuance, so I simply reversed the adjustment. We end up with a modest increase to guidance for AFFO per share despite the increase in rates.

So where is that extra revenue coming from?