American Tower Corporation (NYSE:AMT) Q4 2022 Earnings Call Transcript

And so we’re very excited about it. There’s nothing in our guide relative to performance coming from that activity. And as we’ve said, it’s going to be a multi-year rollout. But we think that as a result of the CoreSite assets as well as our tower assets, we’re really uniquely positioned to be a meaningful part of the puzzle as the edge continues to develop. So as I said, I think we would just continue to underscore what we originally had thought, and we’re continually working very methodically in terms of trying to become that linchpin for rolling out that kind of capability.

Nick Del Deo: Okay. Thank you, Tom.

Rod Smith : And Nick, maybe I’ll just add — complement on to what Tom said here. As we wait for the edge or work for the edge to develop, the CoreSite business is performing exceptionally well and right in line with our expectations. You heard us talk earlier about the record new business that we achieved in 2022. We see strong demand from enterprise customers on those core data center assets that we have around the country. A few of the key metrics here. We are seeing escalations right around 3% on our rental space, which is right in our target range. We see cash mark-to-market adjustments for 2023 go up beyond where they were in 2022. So, they’ve gone from about 2% up to maybe 3% to 3.5%. So, that’s certainly a good factor.

Churn continues to be in and around 6.5%, which is on the low end of our range. Interconnection growth we expect in 2023 to be in the 6% to 8% range, kind of right in line with where we would expect it to be. And our development CapEx is coming in at around $360 million for 2023. And much of that is to replace capacity that we sold in 2022 through those record new business numbers that we will be deploying in 2023 and 2024. Replacing that capacity is really where the CapEx is being deployed. So, we’re seeing very good results and really demand from that CoreSite business, again, as we look to work to develop the edge.

Nick Del Deo: That’s great color. thank you both.

Operator: And that’s all the time we have for questions today. I would now like to turn the conference back to your speakers for any closing remarks.

Adam Smith: I appreciate everybody joining the call. If you have any questions, please feel free to reach out to myself or the Investor Relations team. Thanks everyone.

Operator: Ladies and gentlemen, that does conclude your conference for today. Thank you for your participation and for using AT&T Teleconference. You may now disconnect.