{
  "docId": "019dd923-622c-750b-8b96-1aee342c3a73",
  "docSlug": "10dc4f9f3e31",
  "documentTitle": "American Tower (AMT)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2013-07-17 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 68,
  "pageCount": 118,
  "prevPage": 67,
  "nextPage": 69,
  "slideType": "research-note",
  "function": "diagnose_problem",
  "density": "dense",
  "nDataPoints": 5,
  "notes": "The slide functions as a critical investment research note warning shareholders about potential risks in AMT's M&A strategy.",
  "elementsJson": [
    "paragraph",
    "footnote"
  ],
  "metadataConfidence": 0.9,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b96-1aee342c3a73/68",
  "deckHref": "/decks/019dd923-622c-750b-8b96-1aee342c3a73",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b96-1aee342c3a73.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-1aee342c3a73#slide-68",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Because of these issues, and the questionable overlapping audit committee chair with NIHD along with prior transaction discrepancies, we strongly suggest that AMT's shareholders and independent Board members scrutinize the transaction, and consider rejecting it, as the incremental risk may outweigh the benefits.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-e6f0-72b6-8695-abc27afa0701",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.72,
        "x": 0.14,
        "y": 0.49
      },
      "kind": "paragraph",
      "text": "There are reports of an imminent sale and lease back transaction of approximately 4,500 towers in Mexico and Brazil that belong to financially distressed NII (NIHD). In April of 2013, NII's CEO reported being close to a deal. Multiple industry insiders and analysts believe that AMT is the leading candidate for this portfolio.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7c11c447-992f-413b-b38b-a2d82ae3f6a1",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.72,
        "x": 0.14,
        "y": 0.12
      },
      "kind": "paragraph",
      "text": "AMT's recent acquisition of 883 towers from Axtel for US$248.5 million is a much larger deal, but one which might be poised for a repeat. In Mexico, where market rents are generally close to US$1,000 per month per site or sometimes even much lower, Axtel reports that is will be paying approximately US$1,888/month per site (US$20 million per year).",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "82cf9a5c-264e-45d6-9535-741b501f70b7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.72,
        "x": 0.14,
        "y": 0.32
      },
      "kind": "paragraph",
      "text": "These above market rates might be great for AMT's top-line and the acquisitions can show as being immediately accretive, but they come with risks that the average REIT investor probably fails to appreciate. In the event of a default or a buyout by a larger competitor, the potential acquirers are few, and most are existing, large customers such as American Movil or Telefónica.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d1a24567-9dcd-434e-baf6-278c4d7a3690",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "“although the sale and leaseback of the towers improved their liquidity, their lease adjusted leverage remains essentially the same.” — Fitch Ratings",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd952-e6f0-72b6-8695-aee265f9fb63",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.72,
        "x": 0.14,
        "y": 0.71
      },
      "kind": "source-note",
      "text": "131-136 footnotes detailing sources for market rents, credit ratings, and NII financial status.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c8c63a0d-231e-4eb6-b04a-5a707940aade",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}