Property Revenue Growth: Grew by 3.3%, or over 4.5%, excluding noncash straight-line revenue, absorbing approximately 100 basis points of FX headwinds.
U.S. and Canada Property Revenue Growth: Approximately 1.8% or over 4% excluding straight-line, including over 1% impact from Sprint churn.
International Revenue Growth: Approximately 3.7% or roughly 6%, excluding the impacts of currency fluctuations.
Data Center Business Revenue Increase: Increased by 10.6%.
Adjusted EBITDA Growth: Grew 5.2% or nearly 8%, excluding noncash straight line while absorbing 90 basis points in FX headwinds.
Attributable AFFO Growth: Attributable AFFO and attributable AFFO per share grew by 10% and 9.8%, respectively.
Future Guidance
Property Revenue: Increased expectations by approximately $30 million compared to the prior outlook.
Organic Tenant Billings Growth: Reiterating prior expectations, including approximately 4.7% in the U.S. and Canada.
Adjusted EBITDA Outlook: Increased by $40 million as compared to the prior outlook.
AFFO Attributable to Common Stockholders: Raised expectations by $40 million at the midpoint and approximately $0.09 on a per share basis, moving the midpoint to $10.42.
Capital Allocation Plans for 2024: Reiterating plans focused on projects with the most attractive risk-adjusted rates of return.
Trends, Market Conditions, Sentiment
Accelerated Q1 Activity: Saw an increase in U.S. application pipeline by 70% compared to Q4 of the previous year and a strong gross margin from services business.
Continuous Demand Across Platforms: Mobile network upgrades and digital transformation trends continue to drive demand across tower and data center platforms.
5G Rollouts Acceleration: Contributing to increased demand for services in the U.S. and enhanced colocation and amendment growth in Europe.
Optimistic on Services Revenue: Based on Q1 activities and higher services gross margin than expected, confidence in meeting the $195 million services revenue forecast.
Sustainable Demand Trends: Foundation of recurring contracted growth globally supports long-term growth optimism.
Operational Efficiency and Margin Expansion: Focused on cost discipline resulting in strong year-over-year cash-adjusted EBITDA margin expansion.
Notable Quotes
”We are off to a solid start to 2024 with Q1 performance exceeding our initial expectations across many of our key metrics.” - Rodney Smith
”As we move forward, we believe our U.S. tower portfolio is uniquely positioned to continue driving compelling growth as 5G expected increases in mobile data consumption and associated carrier investments drive increasing demand for our assets over time.” - Steven Vondran
”Our visibility into a solid foundation of recurring contracted growth across our global business combined with an accelerating pipeline supporting our expectations for future activity, a keen focus on cost discipline and margin expansion and a continued demonstration of strategically deploying capital while enhancing balance sheet strength gives us a high degree of confidence in our ability to drive strong, sustained growth over the long term for our shareholders while being a best-in-class operator for our stakeholders globally.” - Rodney Smith
