American Tower Q2 2022 Earnings Call Transcript

Quartr
Provided by Quartr
July 27, 2022

There are 12 speakers on the call.

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the American Tower Second Quarter 2022 Earnings Conference Call. As a reminder, today's conference call is being recorded. Following the prepared remarks, we will open the call for questions. Please press 1 on your telephone keypad.

Operator

I would now like to turn the call over to your host, Adam Smith, Senior Vice President of Investor Relations. Please go ahead, sir.

Speaker 1

Good morning, and thank you for joining American Tower's Q2 2022 earnings conference call. We have posted a presentation, which we will refer to throughout our provide an update on our international business and then Rod Smith, our Executive Vice President, CFO and Treasurer, will discuss our Q2 2020 results and revised full year outlook. After these comments, we will open up the call for your questions. Before we begin, I'll remind you that our comments will contain forward looking statements that future operating performance. Our expectations regarding the financing plan for the CoreSite acquisition, including the closing of our Stonepeak minority investment our U.

Speaker 1

S. Data center business, our expectations regarding the impacts of COVID-nineteen and any other statements regarding matters that are not historical facts. You should be aware that certain factors may affect us in the future and could cause actual results to differ materially from those expressed in these forward looking statements. Such factors include the risk factors set forth in this morning's earnings press release, those set forth in our Form 10 ks for the year ended December 31, 2021 and in other filings we make with the SEC. We urge you to consider these factors and remind you that we undertake no obligation to update the information contained in this call to reflect With that, I'll turn the call over to Tom.

Speaker 2

Thanks, Adam, and good morning, everyone. In line with our historical practice for our Q2 earnings call, my comments today will be focused on American Tower's international business. Before diving into the trends that we see driving a long runway of growth in our international segment, I'd like to take a moment to review the principles that have underpinned our international expansion strategy over the last 2 decades. Since we first Started expanding outside of the United States, entering Mexico and Brazil in 1999 and 2000, respectively, We've been guided by the belief that the secular demand trends and fundamentals of the tower business model that would drive tremendous value in the U. S.

Speaker 2

Over a multi decade period would be replicated internationally. Central to this thesis With that, the anticipated proliferation of wireless networks and resulting rapid growth in mobile data demand would necessitate neutral host shared wireless infrastructure across the globe. We also believe that by leveraging our core Developed here in the United States, we could position American Tower as a premier global provider of communications real estate and a prime beneficiary of these trends. Further, given the relative lack of fixed line infrastructure, Accelerating population growth and earlier stages of network technology evolution in many parts of the world, We believe we could both augment and extend our overall consolidated growth trajectory. So we set out to construct a geographically diverse platform of communication assets in the world's largest democratic economies, while establishing relationships with the leading global wireless carriers, achieved primarily through the acquisition of high quality portfolios with compelling underlying organic growth and risk adjusted return profiles.

Speaker 2

We then sought to leverage our scale, Customer relationships and capabilities to execute on high return new build opportunities And innovative solutions like power as a service that have strengthened our competitive positioning and supported our customers in meeting their network needs, all while driving increasing shareholder value. As a result of these efforts, today our global platform includes an international portfolio that sits in over 178,000 sites and contributes approximately 45% of our property revenues and approximately 36% of our property segment operating profit. Focusing We've constructed approximately 40,000 sites since launching our international operations over 2 decades ago, With just over 22,000 of those sites being built since the start of 2018 alone, we Credit this recent acceleration to our enhanced market positioning ahead of major network deployments, demonstrated operational capabilities and Strong cross national M and O partnerships, all afforded through previous strategic M and A expansion initiatives. In total, these 40,000 American tower build sites are driving an attractive NOI yield of 25%, owing to the strong demand we've seen for our infrastructure and the operating leverage inherent to the shared tower model across the globe. As such, looking forward, we'll continue driving toward our ambition to add another 40,000 to 50,000 sites to our international portfolio over the next several years.

Speaker 2

With that, let's take a few minutes to discuss each of our international regions and the key trends developing across our footprint. First, I'll touch on Europe, where we have a portfolio of over 30,000 sites And strong scaled positions in Germany and Spain, which are benefiting from many of the same trends driving strong growth in the measured approach to achieving scale in the continent. We started through a modest acquisition in Germany in 2012. We then spent the better part of the following decade evaluating various opportunities through our disciplined approach to capital allocation, which led to our entry into France in 2017 and later a small scale entry to Poland. However, it wasn't until action in 2021 that we found an opportunity to add significant scale to a portfolio that met the standards of our global underwriting framework.

Speaker 2

These characteristics include high quality, strategically located assets that stand to benefit from continued network investments terms and conditions, such as CPI based escalators, which act as a natural hedge against local inflation, along with a low churn profile, which taken together drive compelling risk adjusted returns for American Tower and our shareholders. From a timing perspective, we couldn't be happier with our acquisition of the TELSIUS tower portfolio. Across Germany and Spain, we've seen several quarters of accelerating activity as carriers begin lighting up low and mid band spectrum with new 5 gs equipment, while continuing to invest to support growth data consumption on their existing 4 gs networks. At the same time, in Germany, Newentrant 101 is rolling out a greenfield 5 gs network and we believe our portfolio of nearly 15,000 sites, primarily located in urban centers across the country, is in a strong position to support their network build. Earlier this year, we signed a framework agreement with 101 through which we can provide value to the carrier while benefiting from incremental growth associated with the relationship for many years to come.

Speaker 2

As a result of these factors, we're seeing strong leasing activity on our assets as well as demand for new builds, particularly in white and gray spot areas where carriers are working to meet coverage requirements and provide critical connectivity in areas that have historically been underserved. In 2022, we plan to double our previous record And build approximately 400 sites across Europe. And we expect this trend of elevated new build activity to continue. Thanks to the demand driven by such initiatives, the pipeline secured through the TELSIUS transaction and our position as a leading independent tower operator on the continent with a global reputation for operational excellence. With that, let's turn to our regions that are in relatively Earlier stages of network technology and where we see an opportunity to capitalize on a strong persistent demand environment for an extended period.

Speaker 2

There's probably no region where the benefits of local scale and the operational expertise gained as a premier independent operator are more pronounced than in Africa, where we're seeing these benefits play out across essentially every facet of the business. In recent years, we've seen the proliferation of affordable Smart devices and consumer uptake of mobile application use cases drive outsized growth in mobile data usage. And our multinational carrier customers across the region have been working to roll out and enhance their 4 gs networks in response. For ATC Africa, this has resulted in average organic tenant billings growth in the high single digit range over the last several years, coupled with 5 consecutive years of record new build activity. This trend has continued unabated into 2022.

Speaker 2

And as a result, we've built over 1,000 sites across Africa in the first half alone, up over 30% compared to the first half of twenty twenty one and nearly double the volumes achieved in the same period in 2020. These sites continue to demonstrate Very attractive average day one NOI yields with our year to date builds producing more than 13%, And we expect to continue to execute on opportunities to add critical scale and earn strong returns in key markets throughout the region over the next Several years. While the trends supporting a strong growth environment in the region are expected to persist, there are Operational challenges that create unique opportunities in the African market, particularly in the context of the global supply chain disruptions, Power grid availability and reliability and ongoing macro volatility. It's here that the scale of our The shared learnings of a global organization and an entrenched culture of innovation have resulted in a resilient differentiated business across the region. For example, we've been able to leverage global supply chain learnings from the peak of the pandemic as well as the resources afforded by our investment grade balance sheet and strong international cash flows to materials for our new build program several quarters in advance.

Speaker 2

Not only does this result in cost savings in an inflationary environment, It also derisks operational challenges in a core sector of high yield growth for American Tower, while Our reputation as a preferred partner was capable of delivering new sites when we say we're going to. This forward thinking approach to the procurement of critical resources has also been applied to an area of our Africa business That we are perhaps most proud of, our power program, where we've accelerated our innovative efforts across the region in recent years. To date, we deployed roughly $300,000,000 in the region to equip nearly 16,000 sites With the capability to source power from renewables and more energy efficient resources, including lithium ion batteries and solar arrays. In a new build program, where we're working toward making the majority of our newly constructed towers operationally 0 or near 0 greenhouse Gas Emission Sites. In fact, as of the end of the second quarter, we've installed lithium ion batteries and solar panels at nearly 70% In over 40% of our sites in the region, respectively, which has driven a reduction in our reliance on fossil fuel power generators, accommodated our potential to increasingly rely on intermittent renewable sources and supported our progress toward meeting our GHG emission reduction targets.

Speaker 2

More recently, we've been able to leverage our position in the region to form a strategic partnership with a vendor in our energy supply chain. This alliance brings product assembly to the region as we look to augment our delivery of environmentally and economically sustainable power solutions at our sites Where power availability and access to efficient and reliable sources can often be a challenge. Additionally, this local partnership We'll facilitate the acceleration of our progress toward meeting our emission targets, reducing our supply chain risk, lowering the overall carbon footprint and cost of our Procurement process and supporting the local economy and the communities we serve, which we are particularly proud of. Now let's turn to Latin America, which was our first region of international expansion and where we've seen upper single digit average organic tenant billings growth over the last several years. On a consolidated basis, our nearly 49,000 sites are earning a double digit NOI yield In our earlier vintage in the region, which consists of assets built or acquired prior to 2010, we're Seeing a U.

Speaker 2

S. Dollar yield of over 40%. Today, MNOs in the region are in advanced stages of 4 gs And in the early innings of 5 gs network deployments, which is driving a significant need for additional cell sites. As a result, we continue to see solid activity on Although we expect to see the ongoing effects of industry restructuring impact net organic growth in the midterm, we believe the portfolio we've developed across Over the last two decades, we'll be critical for our customers as they continue to invest in their networks. Looking at Brazil specifically, our largest market in the region in terms of site count revenue, we're seeing the final stages of a consolidation process That has resulted in the transfer of network assets into the hands of large multinational operators with the capabilities and financial Firepower to build out enhanced next generation networks on a nationwide basis.

Speaker 2

Further, with the 5 gs auction now complete, our local scale We're already seeing incremental demand for infrastructure, capturing a large share of the initial urban amendment cycle. We expect this amendment cycle to be followed by a period of new site deployments aimed at improving capacity and performance Similar to the cadence we anticipate in the U. S. Over the course of the next decade, which should translate to solid growth for American Tower in the region over a multiyear period. Finally, let's turn to Asia Pacific.

Speaker 2

Our portfolio in the region predominantly consists of our scaled footprint across India, as well as our more recently established presence in the Philippines and Bangladesh, where we've leveraged our management and site deployment expertise to prudently evaluate opportunities in the region through high yield build programs, resulting in over 400 sites being constructed across the 2 markets combined year to date. In India, we continue to be encouraged by the improvements in and ensuring a multiplayer competitive ecosystem, all of which is driving incrementally constructive trends across the communications infrastructure landscape. And with the carrier consolidation cycle and associated elevated churn largely complete, our full year outlook includes an expectation for positive organic tenant billings growth in the region for the first time in several years. While challenges certainly remain in the market and we could see some variability in growth from period to period, Our optimism around the longer term opportunity presented in India remains, with an attractive backdrop Have a growing population of over 1,400,000,000 people that's driving accelerated mobile data usage. And in government, it's demonstrating a commitment to a digital transformation of the economy.

Speaker 2

We see a need for thousands of new cell sites to serve 4 gs and eventually future 5 gs networks. We expect these catalysts to drive a period of sustained attractive growth as well as the continued acceleration of our new build program, where we're seeing low to mid double digit day 1 NOI yields on average. And taken together with a moderating churn environment, we remain optimistic that India and the Asia Pacific region can be a solid contributor toward achieving our longer term growth targets on a consolidated basis. In summary, we're encouraged by the trends we're seeing across With an acceleration in mobile data consumption, driving sustained customer investments on current and next generation networks globally. Over the past 2 decades, we followed a consistent and disciplined approach to market and asset selection, demonstrated a consistent track record of operational excellence and developed a scaled presence in strong customer partnerships across a geographically diverse And globally distributed footprint, which we believe places us at a distinct competitive advantage in a 5 gs world and beyond.

Speaker 2

While we'll continue to evaluate opportunities to further enhance our scale through the same disciplined lens, we remain focused on leveraging our position and capabilities to drive incremental value across our served markets. We believe our well balanced international platform Combined with our highly complementary foundational U. S. Business provides American Tower with an unmatched global portfolio that's optimally positioned to benefit from multiple network technology evolutions and digital transformation opportunities for many years to come. With that, I'll turn it over to Rod to take you through our latest quarterly results and updated outlook.

Speaker 2

Rod?

Speaker 3

Thanks, Tom. Good morning and thank you to everyone for joining today's call. As you saw in today's press release, we delivered another quarter of strong performance across our global business. Before walking through the details of our Q2 results and revised outlook, I'll touch on a few highlights from the quarter along with the financing initiatives we've executed over the last several months. First, we've announced and partially closed our plans to raise approximately $4,800,000,000 in equity financing in support of our CoreSite acquisition, beginning with our common equity issuance in early June and later through our announced agreement with Stonepeak in our U.

Speaker 3

S. Data center business. With these two transactions, not only have we addressed our equity financing requirement for CoreSite, but we've accomplished it in a manner that maximizes shareholder value and supports our investment grade credit ratings. Further, through our partnership with Stonepeak, who brings tremendous Expertise in Communications Infrastructure and has a like minded long term investment philosophy. We've created a platform to further evaluate and finance growth opportunities across our U.

Speaker 3

S. Data center business as the 5 gs ecosystem further develops. Moreover, We believe Stonepeak's investment represents a full valuation relative to what we have invested in our U. S. Data center portfolio today and allows to retain operational control as well as the flexibility to execute on our mobile edge strategy.

Speaker 3

I'll discuss this transaction in more detail later. 2nd, we also continue to strengthen our balance sheet by leveraging the debt capital markets, raising $1,300,000,000 in senior unsecured notes at attractive terms. As a result of our Q2 financing activities In pro form a for our private capital proceeds, which we expect to use to pay down short term floating rate debt, we will increase our percentage of fixed debt to nearly 80%, up from 66% as of the end of Q1 and bring pro form a net leverage down to approximately 5.5 times. With our CoreSite financing now largely complete, we remain committed to organically delevering back below 5 times over the next couple of years. 3rd, we see strong secular trends driving increased network coverage and densification initiatives among our customers, continuing to translate into solid gross new business globally, including the need for more cell sites internationally, as Tom just highlighted, Evidenced by the success of our newbuilds program, we constructed over 1500 sites in Q2, representing the 12th quarter of over 1,000 newbuilds since the start of 2019, a demonstration of the success of our capabilities and expertise, scaled market positions and strong customer relationships.

Speaker 3

Additionally, demand remains robust for our differentiated interconnection rich U. S. Data center campuses As customers leverage the dynamically scalable solutions and interoperability provided by CoreSite's national ecosystem, leading to another strong quarter of new and expansion leasing. And finally, our first half performance And confidence in our full year outlook and long term targets amid heightened market volatility, rising inflation and operational challenges is a testament to the resiliency of our business and the stability of the earnings we consistently generate. This is made possible through operational excellence and service dependability, Our investment grade balance sheet, the strength of our underlying contracts, including international revenues supported by CPI linked escalators, The ability to pass through a substantial portion of our direct costs across our international regions and the matching of escalator Terms in the U.

Speaker 3

S. Between customer and land leases and more importantly, the mobile data trends driving unabated demand for our communications assets. With that, please turn to Slide 6 and I'll review our Q2 property revenue and organic tenant billings growth. As you can see, our Q2 consolidated property revenue of $2,600,000,000 grew by over 17% and nearly 19% on an FX neutral basis over the prior year period. In the U.

Speaker 3

S. And Canada, property revenue was roughly flat due to the continued effects of Sprint Churn. While international growth stood at roughly 19% or nearly 23% excluding the impacts of currency fluctuations and includes about 12% contributed by the TELSIUS assets. In addition, our U. S.

Speaker 3

Data center business contributed nearly $190,000,000 Growth in the quarter. These growth rates are indicative of the strong secular demand drivers that underpin growth on our communications infrastructure assets across the globe as 4 gs and 5 gs deployments continue. Moving to the right side of the slide, you can see we achieved consolidated organic tenant billings growth of 2.6 percent for the quarter. In the U. S.

Speaker 3

And Canada, as expected, organic growth was slightly negative at 0.4%, including a sequential step down in gross organic new business on a dollar basis associated with the timing of certain MLA use fee commencements in 2021, which we guided to during our Q1 call. We continue to expect a reacceleration in gross new business in the back half of Escalators were 2.8%, which as we also highlighted last quarter were impacted by certain Timing mechanics within our MLAs. Though for the full year, we expect escalators to come in right around 3%, Consistent with historical trends, this growth was offset by the impacts of Sprint churn, which continues to drive over 4% of negative headwind year over year. On the international side, organic growth was 7.8%. Starting with Europe, we saw growth of 11.2%, which remains elevated given contributions from the TELSIUS portfolio, which were only partially included in our Q2 2021 base.

Speaker 3

Absent TELSIUS, our legacy European business grew roughly 6%, an expansion of approximately 160 basis points as compared to our Q2, 2021 growth rates. In Africa, we generated organic tenant billings growth of 9%, which includes 8% in gross organic new business contributions, our highest quarter on record. The continued strength and densification initiatives continue to drive strong top line growth in returns across the region. Moving to Latin America. Organic growth was 8.3%, which includes approximately 8.7% from escalations.

Speaker 3

Consistent gross organic leasing growth was offset by expected elevated churn, primarily associated with certain Relative to the first half in net organic growth rates due to anticipated consolidation driven churn, which remains consistent with our prior outlook assumptions. In APAC, we saw organic growth of 3.9 percent, in line with our expectations and representing our 4th consecutive quarter of positive growth, which comes alongside a continuation of solid newbuild activity with nearly 1,000 sites constructed during the quarter. It's important to note that although we remain encouraged by the positive trends we're seeing in our APAC growth rates, we do anticipate a modest sequential Our Q2 adjusted EBITDA grew just over 13% or over 14% on an FX neutral basis to approximately $1,700,000,000 Adjusted EBITDA margin was 62.5 percent, down 170 basis points over the prior year, driven by the lower margin profile of newly acquired assets, the conversion impacts of commenced Sprint churn along with higher pass through revenue resulting from rising fuel costs. Moving to the right side Slide. Attributable AFFO and attributable AFFO per share grew by 7% 5% respectively.

Speaker 3

Growth was meaningfully impacted by Sprint churn and the timing of cash taxes, which together provided a negative headwind of nearly 7%. Let's now turn to our revised full year outlook where I'll start by reviewing a few of the key high level drivers. First, our core operating performance remains strong across our business, allowing us to raise our AFFO per share guidance for the year and increase our expectations on an FX neutral basis for property revenue and adjusted EBITDA. 2nd, we have revised our FX assumptions using our standard methodology, which has resulted in outlook to outlook headwinds of approximately 100,000,000 Nearly $50,000,000 $40,000,000 and roughly $0.08 for property revenue, adjusted EBITDA, consolidated AFFO and AFFO per share respectively. Finally, we have updated our CoreSite financing assumptions to reflect our completed common equity issuance and our anticipated close of private capital funding.

Speaker 3

This update has resulted in a reduction in our total equity requirement balanced with the incremental debt and associated interest costs. Additionally, we have contemplated the minority interest impacts related to the Stonepeak partnership and updated closing assumptions, all of which I will address in more detail in a moment. With that, let's discuss the details of our revised full year As you can see on Slide 8, we are continuing to project consolidated year over year property revenue growth of nearly 14% at the midpoint. The $15,000,000 decrease relative to prior guidance is driven by the FX headwinds I previously mentioned, which were partially offset by over 40,000,000 core property revenue outperformance, taking the benefits of CPI and our international escalators and accelerated decommissioning related settlements, Together with upside in our U. S.

Speaker 3

And Canada and data center segments and over $40,000,000 in other outperformance, primarily driven by higher international pass through revenue due to elevated fuel costs. Moving to Slide 9, you will see our organic tenant billings growth projections, which have been slightly revised since our last earnings call. While our expectations remain consistent in the U. S. And Canada, International and on a consolidated basis, we have made some adjustments within our specific international segments.

Speaker 3

In Europe, we have adjusted our growth back to approximately 9%, reflecting our expectations for a temporary shift in new business commencement timing from the back half of twenty twenty two into 2023. Demand remains very solid in the region, setting us up well as we exit 2022. You will also see that we have modestly raised the guidance for Latin America to approximately 7% and Africa to approximately 6.5%, both up from previous expectations of greater than 6%, reflecting a continuation of escalation benefits from CPI. Moving to Slide 10, we are lowering outlook by $20,000,000 as compared to our prior outlook driven again by negative FX impacts with expected growth of approximately 10% year over year. While we are seeing a strong conversion of core property revenue upside to cash margin outperformance, we have taken a revised view on SG and A, Notably on bad debt reversal expectations for the year, although collection trends were solid in Q2, We have pushed out some of our assumptions related to the incremental collections associated with previously reserved balances that we continue to expect to collect in time.

Speaker 3

Turning to Slide 11, we are raising our attributable AFFO per share guidance to $9.74 up from $9.72 despite absorbing the negative effects from FX and a continued rise in interest rates. To better understand the components in our revised outlook bridge, I'd like to spend a moment to walk through the moving pieces of the guidance associated With our updated equity plan and the mechanics of our Stonepeak partnership, which consists of $1,750,000,000 in common equity and $750,000,000 in mandatory convertible preferred equity for a total ownership interest of 29% on a fully convertible basis in our U. S. Data center business. First, as I mentioned, we were able Proceeds, which meaningfully reduced our share issuance to approximately 9,200,000 shares.

Speaker 3

The reduction in equity resulted in an increase to our debt balances, which together with the revised timing of the equity raise Along with the elevated interest rates has driven an increase to our interest expense outlook, which largely makes up the over $50,000,000 Other reduction to AFFO as compared to our prior outlook. Next, regarding our Stonepeak partnership, The financial impacts for the A minority investment will appear in 2 places. First, the coupon of $750,000,000 of mandatory Convertible preferred equity with a cost in the mid single digit percent range will be recognized as a deduction to the AFFO generated by our data center segment and reflected in our consolidated AFFO, which represents approximately $14,000,000 in our 2022 guide as shown on the slide. 2nd, until conversion of their preferred equity, which is expected to occur 4 years from the date of closing, Stonepeak's initial common equity stake in our data center business will stand at 23%, which contemplates approximately $2,000,000,000 of net debt on the U. S.

Speaker 3

Data center business and will be considered as a minority interest deduction for attributable AFFO equating to approximately $20,000,000 in our 2022 outlook. Please note, We have also reduced the European minority interest assumption from $160,000,000 previously to 150,000,000 largely due to FX. Together, we are now guiding to a minority interest adjustment of $170,000,000 in 2022. Finally, as I mentioned earlier, our updated outlook also takes into consideration updated equity closing assumptions. We previously assumed a May closing for our common equity issuance, which actually occurred in early June.

Speaker 3

We also assumed our private capital will close in mid Q3 with planned proceeds to be used to pay down short term floating rate debt. Taken altogether, our revised CoreSite financing plan drove approximately $0.06 Of incremental accretion relative to our prior attributable AFFO per share outlook, which includes a negative hit of roughly $0.03 driven by higher interest rates on our debt financing relative to our previous assumptions. Moving to Slide 12, let's look at our capital expectations for 2022, which are updated compared to our prior outlook, while continuing to reflect our focus on driving strong sustainable AFFO per 1st, we now expect to dedicate approximately $2,700,000,000 subject to Board approval towards our 20 22 dividends. This is down slightly from our previous guidance of $2,800,000,000 which is simply a function of our reduced Common equity issuance and continues to represent approximately 12.5% in year over year growth on a per share basis. In regards to CapEx, we are decreasing our outlook midpoint by $60,000,000 in total with development CapEx increasing $15,000,000 and with redevelopment capital and land acquisition spend decreasing $25,000,000 $50,000,000 respectively.

Speaker 3

Our development plan continues to assume the construction of approximately 6,500 new sites globally at attractive returns. In fact, on the nearly 3,000 sites constructed in the first half of twenty twenty two, we saw a day 1 NOI yield of roughly 14 Lastly, we continue to expect to direct roughly $300,000,000 towards our U. S. Data center business, largely associated with development spend. Now turning to Slide 13 and with our CoreSite financing plan largely complete, I will briefly touch on the strength of our investment grade balance sheet, which is fundamental to the execution of our stand and deliver strategy.

Speaker 3

Our long standing financial policies, including establishing optimal levels of leverage and an appropriate mix of debt instruments, guide the management of our capital structure, which together with our strong business fundamentals provide American Tower with continued access to capital markets at attractive terms. As you recall, American Tower proactively accessed the debt capital markets in 2021, taking advantage of historically low pricing, raising roughly $3,000,000,000 in senior unsecured notes in the second half of the year at a blended cost of approximately 1.6%. With our fixed debt percentage at the time rising to over 85%, this effectively allowed us to lock in low rate debt for future Strategic initiatives including the CoreSite acquisition, which in turn reduced our dependency on the debt markets in 2022 as part of our final Financing plan. We believe the strategic and efficient management of our balance sheet puts us in a strong position As we close out 2022 and look beyond, as of the end of the second quarter, in pro form a for the close of the Stonepeak investment in our U. S.

Speaker 3

Data center business, Our average cost of debt stands at about 2.6 percent with an average remaining tenor of over 6 years. Since 2010, We have reduced our average cost of debt by approximately 2 50 basis points and increased our average debt tenure by about 1 year by accessing the long part of the yield curve, proactively refinancing our debt and capitalizing on low rate environments. In addition, And more recently, we also focused on diversifying and expanding our capital sources and structure by issuing euro denominated debt, Establishing our ATM program and efficiently executing on public equity raises and partnership agreements with leading global private investors. With a strong liquidity position of approximately $6,700,000,000 on a pro form a basis, inclusive of Stonepeak proceeds And other financing activities subsequent to the quarter end, in a staggered maturity profile, we feel well positioned moving forward as we focus on organically deleveraging back to within our normal net leverage range over the next couple of years. Taken altogether, we see the strength of our financial position as a competitive advantage for American Tower, whether executing on our growth Navigating economic downturns or volatility in the financial markets.

Speaker 3

And we remain focused on and committed to Our thoughtfully established financial policies that have guided our financial strategy for the past decade. Finally, on Slide 14 and in summary, Q2 was another solid quarter supported by leasing demand across our global portfolio Of communications assets, strong execution of capital markets initiatives, including financing for the CoreSite acquisition and meaningful High yielding new asset development activity, our high quality set of assets and established market positions continue to benefit From secular demand trends driving 4 gs and 5 gs initiatives across our global footprint, while the strength of our balance sheet and cash flows has us well positioned to manage and grow the business through potential market volatility and uncertainty. As we look to the Half of the year, we are excited about our growth trajectory and remain focused on executing on our strategic initiatives, which support our long term double digit AFFO growth aspirations. With that, I'll turn the call back over to the operator for Q and A.

Operator

Thank One moment here. We'll go to Michael Rollins with Citi. Please go ahead.

Speaker 4

Thanks and good morning. 2 topics if I could. First on the U. S, curious if you can give a further update on the U. S.

Speaker 4

Leasing environment and Typically, provide an update on how American Tower is tracking against the previously provided growth target of at least 5% organic growth beginning next year. And then also, sorry, just one other Part of this is just are you seeing any change in the environment with AT and T announcing the acceleration of its C band deployment? And then I'll come back maybe on just a second topic on India, if I could.

Speaker 2

Okay. Hey, Michael, I can start and Rod can join in. We're right on track With our previously planned growth rates going forward, we would expect kind of an acceleration And the back half of 2022 and then even a further acceleration into 2023. So we have so much visibility with regards to MLAs, I think we're in a really good position to be able to track what that growth looks like, but everything is right on track as we've laid out. And with regards to AT and T, nothing Outside of the ordinary, I mean, all the carriers are building at a great pace.

Speaker 2

And as I said, very consistent with how we've seen the market and how we see it developing over the next several years.

Speaker 5

Yes. And Tom, maybe I'll just add in there. In terms of further discussing the on track comment, we We guided to approximately 2% of the billings growth on average for 2021 and 2022. And as you can see, the numbers, Michael, is right on. Back with that, Hit about 2.2% last year in the U.

Speaker 5

S. Organic. So we'll hit 1% this year. So that puts us right on Back to that 2%. I will remind you that there is a pretty significant headwind from the Sprint term that is expecting growth rate and that does Equal about 4% headwind going into this year.

Speaker 5

So that 1% would have been a lot closer to 5% if That's great. And then the further guidance from 23 out to 27 Is around 5% on a reported basis with about 6% adjusted for the Sprint churn kind of coming out of that. And we're well on track for that. We've got about 2 thirds of that revenue growth already committed within the framework of our holistic agreement. We're also seeing that expectation in the co location and amendment contributions from new biz in The U.

Speaker 5

S, so we are on track with that metric for this year. That is growth over last year. We do expect 3 in Q4 to be at higher levels than what we had in Q1. So that's the acceleration we're seeing through this year and we expect levels as we head into next year. Based on the way that our holistic deals are structured, the addition of DISH as well as the acceleration of spend from the carriers.

Speaker 4

Thanks. And just one question on India. I was just perusing over the supplemental. And on Page 12, the historical tower count, It shows in the APAC region, presumably India, that the that there's been this negative adjustments in sales or

Speaker 5

just shutdowns

Speaker 4

of towers that's been Sales or just shutdowns of towers that's been running at an annualized rate of 3% to 5%. And just curious, when this optimization could substantially slow down or conclude and if that then releases a headwind on the growth of this segment?

Speaker 5

Sorry, Michael. I had a little computer difficulty here that I just had to address. Yes, so when it comes to the India It really is associated with the consolidation that we've seen in the Indian market with the churn that we've had over the last several years, As you're well aware of, with that, when we have single tenant towers where we don't see additional lease possibilities in the near term, we do Taking those down to kind of rationalize the operating expense aspect of kind of what we're doing in India. So As you see churn in India continue to moderate, which we've seen to a great extent over the last couple of years, you'll see decommission Activity in the tower reduction slowdown as well. And there is usually a little lag between when you see the churn come through our revenue numbers And then when you see the towers, some towers actually come out of the tower counts.

Speaker 4

Thanks very much.

Operator

And next we'll go to Simon Flannery with Morgan Stanley. Please go ahead.

Speaker 6

Great. Thank you very much. Good morning. I was wondering if you could talk a little bit about the data center portfolio. I think you referenced in the slides Outperformance there, it looked like the sequential numbers were good.

Speaker 6

What are you seeing in terms of bookings trends, backlog, things like that, Industry pricing. And then I think on the European guidance, you talked about pushing some activity from late 2022 into 2023. I think one of the other tower companies in Europe had mentioned something similar. Can you just expand on that a little bit? And what gives you confidence that it's just a matter of months?

Speaker 6

And Are there other things given the kind of recession concerns and the impact power prices might be having there? Thanks.

Speaker 2

Hey, Simon. Maybe I'll take on the data center side. I'm going to lead another really strong quarter with all of our data center business. We've largely completed the integration of our legacy centered into CoreSite. Strong sales, strong backlog, Really positive cash MDM.

Speaker 2

Churn is right on track. So we're really pleased. They're outpacing, as Rod mentioned, we've actually upgraded our guidance relative to the activity that we've seen within CoreSite. So really strong top line growth, new and expanded sales activity, all very, very good mix With new logos, with network new business as well as with hyperscale. So really balanced, strong growth and interconnection As well, which I think is just critical to this competitive advantage that we are seeing in the business and fully expected.

Speaker 2

So Couldn't be more pleased with what the business has been able to generate out of the gate.

Speaker 5

Yes, Simon. And I would just add to that that's Confidence to undertake a couple of development projects on the data center side. So we have a few of them, 2 of them going on. That's driving slightly elevated CapEx CapEx investments in the data center business. So I think you'll see in our numbers, we've got upwards to $300,000,000 $320,000,000 of CapEx, which is a little heavier than what we would normally Expect to see, but we do have a couple of facilities where the demand is so strong, we've undertaken some additional development opportunities there within the campuses that we operate.

Speaker 5

And then to address your question on Europe, we are seeing a little bit of a moderation in terms of the growth In Europe, our previous guidance was to have organic tenant billing growth for the full year to be greater than 9%. We've taken that back a touch to approximately 9%. And that's primarily driven because we do see some leasing activity that we expected in the second half of twenty twenty two to be pushed into 2023. So We do see a very strong market in Europe, particularly in Germany, with the addition of 101 coming in 5 gs, the initial deployments of 5 gs networks. And the way that the organic tenant billings growth will exit this year is going to be approaching 7% Sort of as we exit our run rate, which is a really strong number for us.

Speaker 5

We couldn't be more happy with the timing of what we're seeing In Europe, in terms of the demand for our assets, through the Telkius portfolio, we've picked up a lot of really good urban centric assets, Including a lot of rooftops and we're finding that very desirable in terms of carrier activity going forward and that's what's really driving the growth rates there. So It's really just the timing in Europe, but the growth rates are really strong.

Speaker 6

Great. And on the data center, Tom, any updated Thoughts on the Edge opportunity now that you've owned it for 6 plus months?

Speaker 2

Yes. Simon, it's Yes, there is. I mean, we've actually created internally an Edge advisory board. We're setting up an Edge lab. We've scanned our sites and have done really the full evaluation of our sites that can support a megawatt and 2 megawatts So of activity, we're looking by the end of the year to actually establish and start to build out A few of these megawatt facilities, and we're in discussions with all of the potential participants looking to take advantage Of the opportunity.

Speaker 2

So it's still early days. As you recall, the reason for this particular transaction was the underlying business itself, The diversification of our existing business into the broader digital infrastructure industry And then the potential for being a major player in terms of developing what that edge would look like. And so we'll have more about this on our Q3 call when we Talk more about technology, Simon.

Speaker 6

Thank you.

Operator

And next we can go to the line of Eric Luebchow with Wells Fargo. Please go ahead.

Speaker 7

Great. Thanks for taking the question. 1st, I wanted to touch on you mentioned some of the churn in Latin America. Maybe you could just expand on that, whether that's specific to the OI restructuring in Brazil, How do you expect that to flow versus some of the churn you've had in Mexico and how you see that trending into next year? And Rob, curious on the bad debt reserve you mentioned.

Speaker 7

Any color you can provide in terms of regions that you're closely monitoring in terms of collections or payments activity that would be helpful? Thank you.

Speaker 5

Yes. Good morning, Eric. Thanks for joining. So the term that we're seeing in Latin America is primarily the Telefonica term we're seeing in Mexico and some next in the Brazil market. We have not begun to experience the Oi Churn.

Speaker 5

So Oi has consolidated with other cancer years in our region. The contract that we have with Oi actually And Oi makes up about 1% of our global revenue. We've got quite a long time here to kind of work through the churn from The OI restructuring that's happening there. That's something that you'll see through the next several years, maybe out longer than that. We're certainly With the categories who are picking up those assets, to talk about maybe restructuring those contracts, figuring out the time yields and the churn comes.

Speaker 5

But We are in a pretty good position, Leroy, because we do have average over 6 years left on the contract there. And then in terms of the bad debt, in terms of where we're seeing the bad debt activity, it's really in India and a little bit in The theme recently here is we've actually reduced our reserves by about $8,000,000 or so in Q2. And we have a plan in the outlook to further For a total of about $20,000,000 So collections in Q2 were really quite strong for us around the globe, but particularly in India. So we're happy to see that. And based on all the discussions that we have had, we continue to have with our customers, we expect And India will remain with those expectations that are in our outlook, which would allow us for the full year to reverse about $20,000,000 of prior bad debt Reserves.

Speaker 5

We did reduce that. You'll see it in the presentation by about $10,000,000 and that's just based on timing of reversing some of those reserves that we have moderated Thank you there. But it's still good news for the year.

Speaker 2

Great. Thanks.

Operator

And we can go now to Ric Prentiss with Raymond James. Please go ahead.

Speaker 8

Thanks. Good morning, everyone.

Speaker 5

Good morning, Rick.

Speaker 8

Hey, a couple of questions. First, obviously, I think it's important you guys are focusing on attributable AFFO. Help us understand what a full year impact of the new Stonepeak would be As far as the Mando convert 14 in the current year and the $20,000,000 minority interest. And then I've got 2 others, quickie ones.

Speaker 5

Yes, sure, Rick. So the way that we've got some of the guidance That next year or actually in Q4 of this year, full year kind of utilized run rate for the answer to About $200,000,000 $50,000,000 of that is really coming through

Speaker 7

the stone

Speaker 5

in the data center business That we have. So that's kind of the exit run rate. The balance roughly the $150,000,000 is what we have in Europe. So that's kind of what you can think From the minority interest piece of our AFFO going into next year, dollars $350,000,000 in Europe and about 50,000,000 On the data center side. And that's mandatory.

Speaker 5

You're going to see that through as a deduct to our AFFO. The mandatory is up 7.50,000,000 It's single digit interest rate. So you just calculate the math and that's what you'll see in terms of the deducts from AFFO from that.

Speaker 8

Okay. Second one is, you guys obviously know I've really focused on removing amortization of prepaid rent from valuation and non cash item. Interestingly, your number is smaller than Crown. Crown did put a table out there talking about what they see as far as amortization of prepaid rent going forward. Is that something you guys would consider?

Speaker 8

And I've got one other quick one.

Speaker 5

I don't know, Rick, if we would put out a table, but I can tell you this year for the full year, we're looking at about $110,000,000 or so in amortized revenue coming through our numbers. That's down a little bit from last year. Last year, we're about $140,000,000 I think from a going forward Run rate basis, you can think of that line item being around $25,000,000 to $30,000,000 on a quarterly basis. That's what we see. We think it'll hold pretty decent, but we'll as we go forward.

Speaker 5

But you can think about our amortized revenue $25,000,000 $30,000,000 per quarter and it's about $100,000,000 this year.

Speaker 8

That makes sense. And last one for me is we're getting a lot of questions from investors on join the centers. You talked about the growth capital opportunity there at CoreSite. What do you think maintenance CapEx is in the data center business? And I think unusual question we get, but it came up is what would cause data centers to become obsolete or individual data centers become obsolete?

Speaker 5

Yes. Maybe I'll take the first one, Tom, and then you can handle the second one. So the maintenance CapEx about $20,000,000 this year for us in our data center business, Rick. It tends to run about 3%, maybe 4% of the data center revenue. We don't see that changing at all.

Speaker 5

So that's how I should think about the main CapEx of the business.

Speaker 2

And Rick, relative to your second question, I mean, it all comes down to really barriers to entry. And if you think of the asset that we have with Foresight, the barriers entry are incredibly strong with the interconnection capability, with the cloud on ramps. And so it's hard to think about a world in which our customers are not going to be still looking at kind of Hybrid environment to be able to connect with the cloud, to be able to really use data centers as a sales channel for themselves as their interconnection within the business. So we don't anticipate any of that kind of activity you said. But I must say that it's think this particular asset that we have within CoreSite and that we're building out really continues to build up those barriers to entry.

Speaker 2

And that's going to be critical. It's much like the tower business. We build up a strong barrier to entry with the exclusive pieces of real estate we have. That's our strategy Find those assets that have those strong barriers that we can continue to develop.

Speaker 8

Yes, makes sense. Thanks guys. I love hearing barriers to entry.

Speaker 2

Okay. Thanks Rick.

Speaker 7

You're welcome.

Operator

Okay. Next, we'll go to David Barton with Bank of America.

Speaker 9

Hey, guys. Thanks so much for taking the questions.

Speaker 3

First,

Speaker 9

I guess maybe Rod, When you were talking about the partnership with Stonepeak, you mentioned something to the effect that you were creating a Platform for data center investment given the Stonepeak's experience in the common infrastructure space. I think one of the Concerns some people have about American Tower's foray into data centers is that it's going to be a big Call on capital at the margin and we just don't know how big it's going to be. So if you could kind of clear up a little bit about how you think this Platform might be looking at acquisitions and investments and calls on capital. And then second, Maybe Tom, I don't know if you have a view on this, but with respect to American Tower not having a holistic MLA with Verizon at this stage, do you feel that AMT contributing factor to AMT's kind of domestic Same store sales growth performance this year might be that Verizon is allocating business to its other tower partners in the early stages of its C band build and that need to wait for them to come around to become an AMT customer. Thanks.

Speaker 2

I mean, David, let me take that one And then I'll let Rod and then I'll come back and add on to that to the first one. Relative to how Verizon is building out It's really hard to tell in terms of whether it's happening with other carriers who have More holistic type of an MLA versus ourselves? I don't think so, candidly. I think that Verizon is being very, as they always are, Measured in terms of how they're rolling out C band. And I would expect candidly over the next Half of the year and clearly into 2023, some real investments that they're going to be making into the sites.

Speaker 2

We represent a significant piece of their portfolio And strategically located in some critical markets, that I know Verizon is going to want to Drop in C band on the sites, they have to. And I would expect that to see in the second half. Relative to the timing in terms of Us not having that, it's really difficult to say whether there's been a timing difference in terms of when we're going to see that type of activity. As I said, I don't think so. But more importantly, I would expect to see significant activity really ramping up in the second half and into 2023, which is the more important element.

Speaker 5

Yes. And David, with regard to your question on the data center spend, this year we do have CapEx in the plan of about 300,000,000 Maybe a touch over, it was a couple of development projects that really will not be recurring in nature. So we're looking at about 200,000,000 of historical annual investments into development projects and total CapEx, including the maintenance CapEx. And that's where we expect to stay going forward. That would allow us to keep ahead of kind of a net absorption forward looking 2 years.

Speaker 5

We need to make sure that each of our facilities has Available megawatt capacity. And in order to do that, we expect to reinvest about that $200,000,000 give or take, which is what CoreSite had been doing historically, maybe ours will be a touch higher, maybe they were closer to 150, between 150,200, we'll probably be closer to 100 or maybe a touch over. So we're not looking to compete on a national scale in the data center business. We really I bought CoreSite because of the cloud centric network dense nature, the interconnection nature of these assets and kind of the geographical Right throughout the U. S.

Speaker 5

And really good proximity to our tower sites, which is facilities In LA, up in Silicon Valley, Chicago, Denver, Boston, New York, Northern Virginia, we have some of my many. So We've got a nice spread of these assets. And because of the high quality nature, that's what's giving us the nice growth rates there, As Tom mentioned earlier, up in the 10% range, which is well above our underwriting expectations of between 6% 8%. So we see really strong demand for these assets, high quality. And we're looking to really take these assets and potentially in the future connect them to our cell cloud on ramps and interconnection facilities at the tower sites.

Speaker 5

That's the real significant upside. So with that said, we'll be reinvesting the core site cash flow kind of Back in to keep ahead of that 2 years of net absorption on the megawatt capacity. And then you may see us add a data center here or there throughout the U. S, But not a major change in capital allocation certainly.

Speaker 9

That's super helpful guys. Thank you so much.

Operator

And we'll go to Matt Niknam with Deutsche Bank. Please go ahead.

Speaker 10

Thanks for taking the questions. Just maybe to follow-up on the prior one around expanding the platform. I guess more broadly Beyond data centers, just thinking about the broader comm infrastructure portfolio, are you seeing incremental opportunities internationally That may not have been as present a year ago. And then secondly, as it relates to India, 4% organic growth This quarter, we noticed a pretty big step down in churn. I'm just wondering if there's any additional color you could share there and whether that's maybe this quarter is maybe a better run rate to think about From a churn perspective in India on a go forward basis?

Speaker 10

Thanks.

Speaker 2

Yes, Matt, I'll take the first one, Rod can take the second one. We're very focused On the U. S, as we said. Yes, there are a lot of opportunities outside of the United States. And as a result of the positioning that we have with CoreSite, we get approached By many different players developed, but we're very focused on the U.

Speaker 2

S. And as Rod said, to the extent that there's outsized CapEx, We're going to be incredibly measured about how we spend that, but it will be at the tower sites. Remember the edge is all about the opportunity at the site itself. And we've identified largely over 1,000 sites that with power and interconnection could support upwards of at least a megawatt of capacity. And so we're going to be looking at that where we can take it to a megawatt, where we can take it to 2, where we can take it to 3.

Speaker 2

And to the extent that we're able to develop the demand From a customer perspective, we will look at building that kind of capacity out, but it will be very measured, it will be based upon demand, And it will largely be in the United States.

Speaker 5

Hey, Matt, good morning. Thanks for joining the call. So regarding India, we are guiding to 2% to 3% organic Billings growth in India for the Q2, we did see a higher number than that, close to 4%, which was nice to see. That was driven by consistent sort of stable organic new business. We have the 2% escalator, of course.

Speaker 5

And then we did see a A reduction in churn in Q2 from Q1 and certainly a further reduction from the prior year Quarter, but so when we go forward, one thing that I will highlight is in Q3, we do see A higher level of churn happening in Q3 compared to Q2. So don't be surprised if you see that organic tenant billings pull back a little bit From the 4% to probably below 2%, maybe approaching 1%. That will be temporary and you'll see it come back up in Q4, up in the 3% range. So I think for now, we are constantly optimistic about India. There are still some churn events that we're working through.

Speaker 5

And we feel good about a 2% to 3 Number for this year. And certainly, as we go forward, we hope to see and expect to see continued moderation on the term line, Solid new business activity that will allow us to grow from that 2% to 3% organic tenant billings growth. But of course, we'll address that In next February, we will give guidance for 2023.

Speaker 10

That's great. Thank you both.

Operator

And next we can go to Phil Cusick with JPMorgan. Please go ahead.

Speaker 7

Hi, this is Richard Phil, just wanted to follow-up on the international tower builds of the 40,000 to 50,000 over the next few years. Wanted to get a sense of how much of that is contracted versus you have a good line of sight into?

Speaker 5

Yes. I would say, Richard, we have a good line of sight into those. I mean, certainly, there are elements of that that are contracted. And the TELSIUS transaction that we did over time. There's also a site that we're building for Orange over time that are contracted.

Speaker 5

I don't want to put too firm numbers on there in terms of orange piece. When it comes to India, Africa and Latin America, it's more opportunistic, But we do have a really good run rate in terms of building sites. This year, we'll build around 6,500 towers. That's A little bit above where we were in the prior year and we see that run rate as being sustainable going forward. And as of course, we highlight this often, Those build to suit are some of our most attractive capital deployment opportunities and we're seeing double digit NOI yields day 1 from those newly constructed sites around the globe.

Speaker 5

So we have a high level of confidence in that $40,000 to $50,000 number. Some of it's contract, some of it's more opportunistic, but the pipeline is robust.

Speaker 7

Great. And the follow-up on that, the yields are high on day 1, but what kind of co location, I guess, expectations do you have on those builds over Can you give us any color around that?

Speaker 5

Yes. I think we would view them to be very similar to the rest of our towers And be comparable to the market that they're in, certainly the towers we build, we like to see that they are Multipenative, of course, and we know that the growth in mobile data consumption around the globe continues to run at a really solid clip in that 30% range or even higher in some markets. So certainly getting additional tenants on those sites is something that's really important. We do have a line of sight to see that. And we see

Operator

with these new builds, we do see

Speaker 5

in the north of 20% NOI Yields on most of these assets. So time will tell, but given the demand for tower sites, the Critical nature of these power assets globally and the fact that a lot of these emerging markets as well as Europe are transitioning It's a new technology, either building out 4 gs networks or in the case of the transition out of 5 gs, there's a need in the demand for more and more So that gives us the confidence that we will be able to attract additional tenants on these sites.

Speaker 7

And the last follow-up for me. On the data center Sai, just to clarify, there's no additional capital coming in from Stonepeak with either the new builds, but There might be, if there's an acquisition, a small one or whatnot?

Speaker 5

Yes, I think that's right. The way and we announced a $2,500,000,000 investment, which will give On the minority stake, that will be when their preferred investment is fully converted, they'll be a 29% owner Of the data center business. And certainly, if there's any capital requirements needed to fund our data center business, there will be a capital call to all As you know, us and them kind of on a pro rata share. And then certainly, if there's M and A opportunities That require capital calls. Of course, again, it will be the same situation will be funding that together.

Speaker 7

Great. Thank you.

Operator

And we have time for one last question. We'll go to the line of Batya Levi with UBS. Please go ahead.

Speaker 11

Great. Thank you. In the U. S, can you provide a little bit more color on the activity you're seeing from DISH? And a question on capital allocation.

Speaker 11

You typically bring back share buybacks after an issuance or ahead of like mandatory conversion. Going forward, can we expect you to Maybe debt reduction versus opportunistic buybacks? Thank you.

Speaker 2

Sure. I'll do the first one. On DISH, they're right where we thought They would be. I mean, they've been very measured in terms of their deployments. They've been very active, got a couple of critical markets that they are bringing up.

Speaker 2

And we have a comprehensive MLA with them and we're seeing good activity across the country.

Speaker 5

Yes. And then relative to the capital allocation question, you've heard us say it many times, but the first priority, of course, is funding Our dividend is not only funding it, but growing the dividend. So this year we'll have a double digit 12.5 And growth rate on the dividend. In this in the current environment that we're in, we certainly will be focused on delevering. It's no surprise to anyone on the call, I'm sure that we are outside a little high of our target range of around 5%, below 5%.

Speaker 5

So we ended the quarter at about $5,800,000 That's about $5,500,000 if you pro form a the investment from Stonepeak in. So we still have some delevering work to do, which we will be focused on. So we will be focused on organic growth. We'll be focused on driving 10% AFFO per share growth. We'll be focused on delevering.

Speaker 5

We'll be focused on our CapEx plans around the globe, funding the build pursuits that we've seen, Very good returns on across all the markets that we're currently in. And then to the extent that there are opportunities To buy back shares at attractive prices from time to time or fund additional M and A from time to time that's accretive and fits within our disciplined approach, We'll balance those 2 investment opportunities and make the choice that's best for our shareholders and drives the most AFFO for share growth.

Speaker 11

Great. Thank you.

Operator

And speakers, I'll hand the call back to you.

Speaker 1

Thank you everyone for joining today's call. Please feel free to reach out to the Investor Relations team with any questions. Thank you everyone.

Operator

Thank you. And that does conclude the call for today. The replay will be made available after 10:30 this morning and running through August 11 at midnight. You can access the AT and T replay system at any time by dialing 1-eight 66 207-1,041 and entering the access code 5,855,174. International parties, MEDAL, 4029700847.

Operator

Those numbers again, 1866 207-1041 with the access code 5,855,174.

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Earnings Conference Call
American Tower Q2 2022
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