Raj Kalathur joins American Tower’s board of directors

BOSTON - American Tower Corporation (NYSE: NYSE:AMT), a leading global real estate investment trust (REIT) with a market capitalization of $87.7 billion, has announced the appointment of Rajesh (Raj) Kalathur as a member of its board of directors. Kalathur brings a wealth of experience to the role, with over 27 years in various sectors including finance, IT, operations, and sales and marketing. According to InvestingPro, AMT maintains strong profitability with a 71% gross margin and has consistently raised its dividend for 14 consecutive years.

Currently serving as President of John Deere (NYSE:DE) Financial and the Chief Information Officer of Deere & Company, Kalathur has been instrumental in implementing an IT agile operating model and advancing digital transformation initiatives, leveraging artificial intelligence and automation technologies. His previous role as Chief Financial Officer at Deere & Company highlights his extensive background in global financial operations.

Steve Vondran, President and CEO of American Tower, expressed enthusiasm for Kalathur’s addition to the board, citing his global financial expertise, technical knowledge, and proven leadership in transformational practices as qualities that align with the company’s core principles. Vondran anticipates that Kalathur will provide valuable insight as American Tower continues to grow and maintain its position in the market, aiming to deliver value for its shareholders.

American Tower operates as one of the largest global REITs, specializing as an independent owner, operator, and developer of multi-tenant communications real estate. The company boasts a portfolio exceeding 148,000 communications sites and maintains a significant presence in the U.S. data center market. Recent financial data shows revenue of $11.2 billion in the last twelve months, with analysts setting a consensus price target of $255 at the high end. The company offers an attractive dividend yield of 3.5%, supported by strong free cash flow of $5.2 billion.

The information regarding Kalathur’s appointment is based on a press release statement from American Tower Corporation. The company has also issued a cautionary note regarding forward-looking statements, advising that actual results may vary due to a range of factors. These include risks outlined in their annual report on Form 10-K and other documents filed with the Securities and Exchange Commission. American Tower has stated that it does not intend to update the information to reflect events or circumstances that occur after the release.

In other recent news, American Tower Corporation has been the subject of several significant developments. BMO Capital Markets recently revised its price target for the company to $210 from $230, while maintaining an Outperform rating. The firm’s analyst highlighted a mix of challenges and growth opportunities, forecasting net organic growth in the United States at 4.0% and 4.4% for the fourth quarter of 2024 and the full year 2025, respectively. The analyst also projected a slight year-over-year decline of 0.7% in American Tower’s adjusted funds from operations for 2025.

In addition to these projections, American Tower has announced amendments to its credit agreements, extending the maturity dates of certain facilities and adjusting financial terms. This includes extensions to the multicurrency credit facility and the unsecured term loan to January 2028, and the senior unsecured revolving credit facility to January 2030.

In a further financial move, the company has issued $1.2 billion in senior unsecured notes. The net proceeds, approximately $1,183.7 million after underwriting discounts and expenses, will be directed towards reducing the company’s obligations under its senior unsecured multicurrency revolving credit facility and its senior unsecured revolving credit facility. These recent developments represent key aspects of American Tower’s financial management strategy, providing a snapshot of the company’s current state and future projections.

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