AMT Stock Pitch

Megan Reddington

November 9th, 2015

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SBA Reval Investment

Thesis

AMT

Overview

Growth

Drivers Risks Conclusion

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Thesis

AMT

Overview

Growth


Risks of Owning SBA Risks of Selling SBA

Has a nominal cap on exposure in emerging markets

Little geographic diversification

Falling behind competition ◦ AMT has been acquiring

overseas assets for years

Expectations too low ◦ What people expect is too

low

SBA complements SMIF portfolio ◦ Our portfolio leans in the

direction of more conservative and defensive assets

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Thesis

AMT

Overview

Growth


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Thesis

AMT

Overview

Growth


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Source: Yahoo Finance

November 4th Closing Price: $98.03

Target Price: $114.09

Current Yield: 1.91%

Why invest in AMT: ◦ 1. AMT is undervalued

◦ 2. Relative performance of SBA vs AMT due to the

emerging markets exposure

◦ 3. Demand drivers for both short and long term

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Thesis

AMT

Overview

Growth


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Thesis

AMT

Overview

Growth


AMT is generating free cash flows

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Thesis

AMT

Overview

Growth


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Thesis

AMT

Overview

Growth


The American Tower A tower is a vertical structure built on a parcel of land, designed to accommodate multiple tenants

Tenants lease the tower and space below it for their equipment

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Thesis

AMT Overview

Growth Drivers

Risks Conclusion

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Adding more tenants, equipment and upgrades results in higher returns. Revenue is added with minimal incremental cost.


Thesis

AMT

Overview

Growth


American Tower’s primary business ◦ Over 98% of revenue is generated from leasing

properties

Annual churn rate: ~1%-2%

AMT yields high operating margins and lease

renewal rates its industry ◦ 10 year non-cancelable contracts

◦ Annual lease escalators to the contacts

In the US: ~3%

International: based on local inflation indices

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Thesis

AMT

Overview

Growth


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AMT’s International Market


Thesis

AMT

Overview

Growth


Short term (1-10 years): ◦ Global economy/developing markets adopting

smartphones

Long term (10+ years): ◦ Driverless cars, the increase data usage

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Thesis

AMT

Overview

Growth


Average monthly traffic skyrocketed 2,268% from 2009 to 2014

Nearly half a billion mobile

devices and connections were

added in 2014

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Thesis

AMT

Overview

Growth


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Thesis

AMT Overview

Growth Drivers

Risks Conclusion

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Thesis

AMT

Overview

Growth


March, 2015: AMT acquired the rights to 11,324

wireless communication towers from Verizon

Communications Inc.

October, 2015: AMT agrees to buy 51% controlling

stake in India’s mobile operator, Viom networks for 76 billion rupees

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Thesis

AMT

Overview

Growth


‣ Changes in technology

‣ Tenants sharing site infrastructure

‣ Currency risk

‣ Deterioration in the macro environment

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Thesis

AMT

Overview

Growth


We are at the very early phase of a global economic expansion

We must move out of just focusing on the US (what worked) and move towards the global market (what will work)

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Thesis

AMT

Overview

Growth


Sell SBA Shares

Buy AMT Shares $3,693

AMT is undervalued

Relative performance of SBA vs AMT due to the

emerging markets exposure

Demand drivers both short and long term for AMT

prove growth in their bottom-line and

geographically

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Thesis

AMT

Overview

Growth


AMT Stock Pitch

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