Business Breakdowns
Episode 188 American Tower: Signals and Stability
Business Breakdowns

Episode 188: American Tower: Signals and Stability

Business Breakdowns

Episode 188

American Tower: Signals and Stability

William Heard is the Founder and CIO of Heard Capital Management. We cover why tower infrastructure was historically spun out of carrier networks, what's involved in building new towers and expanding existing capacity, and what it can teach investors about owning REITs more broadly.

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Show Notes

(00:00:00) Welcome to Business Breakdowns

(00:03:42) Understanding American Tower's Infrastructure

(00:04:41) Market Size and Share

(00:05:44) Ownership and Construction of Towers

(00:06:51) Investment and Growth in Tower Infrastructure

(00:11:32) Data Centers and Their Importance

(00:14:34) Leasing Model and Revenue Structure

(00:17:02) Management and Financial Strategy

(00:18:42) Acquisitions and Growth Strategy

(00:21:39) Management Teams and Strategic Priorities

(00:22:35) Capital Allocation and Dividend Strategy

(00:24:09) REITs and Market Dynamics

(00:26:49) International Operations and Challenges

(00:29:19) Carrier Spending and Revenue Streams

(00:37:57) Risks and Competitive Landscape

(00:38:58) Lessons from Breaking Down American Tower

American Tower: Signals and Stability

Introduction

Matt
Welcome back to Business Breakdowns. This is Matt Reustle, and today we are breaking down the communications giant, the infrastructure asset that is American Tower. To break down American Tower, I'm joined by William Heard, founder and CIO of Heard Capital Management.

William founded Heard Capital in 2011. Today, the firm manages $2 billion in assets, holds about 15 to 20 names, and has a very specific criteria for investing in companies. We cover AMT from all angles here—the long-life physical assets that underpin the business, the contracted and highly visible revenue stream that also has low churn, the secular growth story not just in mobile communications but in data usage broadly, and some of the micro-dynamics like incremental margins, M&A, balance sheet management, and capital allocation.

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