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  "documentTitle": "American Tower (AMT)",
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  "authorName": "Carson C. Block",
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  "presentationDate": "2013-07-17 00:00:00",
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      "text": "AMT is able to depreciate or amortize the entire amount of the asset purchase over 10 years. We assumed a local corporate tax rate of 25%. Assumes no co-locations. We assumed no maintenance cap ex. Carrier A's rent reverts to market.",
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      "text": "When AMT lends money to a carrier as part of a sale and leaseback, it creates two impediments to future growth. First, co-locations do not move the needle. Second, the carrier's rent will most likely reset to market rates.",
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      "text": "One of the issues for investors trying to understand this business model is that rents do not necessarily move in a linear fashion with above market multiples. AMT's stated IRR hurdle rates are too low for the markets in which they operate.",
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      "text": "The leaseback agreements are generally 10 years. When the lease ends, and the anchor tenant's rent resets to market, the drag on growth is substantial.",
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      "text": "10-Year Revenue CAGR: Market 1.25x (10.6%), Market 1.5x (9.4%), Market (8.5%)",
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