American Tower’s latest acquisition has secured high quality assets with strong existing cash flows and significant opportunity for future growth. The tenancy ratio on GTP’s domestic portfolio is believed to be around 2, while American Tower’s is 2.6, with the difference attributable to the younger age of GTP’s assets. GTP’s towers typically have capacity for four tenants without the need for upgrade investment.
This acquisition extends American Tower’s runway for growth in their domestic market. With an acquisition of 5,400 towers, many in top metropolitan markets, plus 9,000 domestic managed sites (primarily rooftops), and with 70% of GTP’s revenue coming from the ‘Big Four’ carriers, American Tower has strengthened their hand to secure business as 4G deployment shifts into a higher gear.
