CoreSite's Q1 2025 Earnings Call: Unpacking Contradictions in U.S. Leasing, Dividends, and Growth Strategies

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Strong Start in 2025:
- American Tower Corporation reported exceeding expectations in property revenue, adjusted EBITDA, and attributable AFFO per share for Q1 2025.
- The growth was driven by ongoing demand across their global portfolio and resilient network investments.

Leasing Trends and Carrier Activity:
- The company experienced a fifth consecutive quarter of sequential increases in application volumes and services revenue, which grew roughly 60% and over 140% year-over-year, respectively.
- This was attributed to carrier demands for network upgrades and capacity-oriented new site demand.

CoreSite Performance:
- CoreSite reported strong leasing and continued pricing favorability, adding 11 megawatts of capacity with high day-one leasing.
- The sustained demand and strategic market positioning drive best-in-class returns and insulation against broader market shifts.

Global Operations and Cost Optimization:
- American Tower is focusing on globalization initiatives to enhance efficiency and synergies across markets and products.
- This includes streamlining operations and leveraging cross-border applicability of regions' best practices to drive incremental value.

Capital Allocation and Portfolio Management:
- The company continues to prioritize discretionary capital in developed markets and reduce risk by managing the portfolio following a grow, harvest, and resolve methodology.
- This includes strategic acquisitions like the purchase of the DE1 data center asset and the sale of the South Africa Fiber business.