AT&T Mexico withholding rents from American Tower (AMT) as $10M reserves booked

Rhea-AI Filing Summary

American Tower Corporation used a conference appearance to highlight a dispute with a major customer in Mexico. AT&T Mexico, which represented approximately $300 million of tenant revenue in 2024, has been withholding tower rent payments since the start of 2025, leading the company to record about $10 million of reserves in the second quarter of 2025 and indicating that additional reserves are likely if non-payment continues.

The company believes it has valid defenses, is vigorously defending the full enforceability of its Master Lease Agreement with AT&T Mexico, and has an arbitration hearing scheduled for August 2026. Separately, management noted that DISH Network accounts for roughly 2% of total annual property revenue and 4% of U.S. & Canada property revenue under a Master Lease Agreement running through 2036, providing context on customer concentration.

Positive

• None.

Negative

• AT&T Mexico revenue and collection risk: AT&T Mexico, contributing about $300 million of tenant revenue in 2024, has been withholding tower rents since early 2025, leading to a recorded $10 million reserve in Q2 2025 and the likelihood of further reserves if non-payment continues, with arbitration not scheduled until August 2026.

Insights

Telecom infrastructure and credit risk analyst

American Tower flags a material Mexico tenant dispute with reserves already recorded.

American Tower disclosed that AT&T Mexico, a customer contributing about $300 million of tenant revenue in 2024, has been withholding tower rents since early 2025. The company has already booked roughly $10 million of reserves in Q2 2025 related to this exposure, and indicated it would likely record additional reserves if non-payment continues. This points to both revenue collection risk and potential pressure on near-term cash flows tied to this customer.

Management stated it is vigorously defending the Master Lease Agreement with AT&T Mexico and expressed confidence in the contract terms, with arbitration scheduled for a hearing in August 2026. That timing means the situation may remain unresolved for an extended period. The discussion also quantified exposure to DISH Network at about 2% of total annual property revenue and 4% of U.S. & Canada property revenue under a lease that runs to 2036, giving investors a clearer view of customer concentration in another key relationship.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): September 3, 2025

AMERICAN TOWER CORPORATION

(Exact Name of Registrant as Specified in Charter)

Delaware

001-14195

65-0723837

(State or Other Jurisdiction of Incorporation)

(Commission File Number)

(I.R.S. Employer Identification No.)

116 Huntington Avenue

Boston, Massachusetts 02116

(Address of Principal Executive Offices) (Zip Code)

(617) 375-7500

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, $0.01 par value			AMT			New York Stock Exchange
1.950% Senior Notes due 2026			AMT 26B			New York Stock Exchange
0.450% Senior Notes due 2027			AMT 27C			New York Stock Exchange
0.400% Senior Notes due 2027			AMT 27D			New York Stock Exchange
4.125% Senior Notes due 2027			AMT 27F			New York Stock Exchange
0.500% Senior Notes due 2028			AMT 28A			New York Stock Exchange
0.875% Senior Notes due 2029			AMT 29B			New York Stock Exchange
0.950% Senior Notes due 2030			AMT 30C			New York Stock Exchange
3.900% Senior Notes due 2030			AMT 30D			New York Stock Exchange
4.625% Senior Notes due 2031			AMT 31B			New York Stock Exchange
1.000% Senior Notes due 2032			AMT 32			New York Stock Exchange
3.625% Senior Notes due 2032			AMT 32B			New York Stock Exchange
1.250% Senior Notes due 2033			AMT 33			New York Stock Exchange
4.100% Senior Notes due 2034			AMT 34A			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

Item 7.01 Regulation FD Disclosure.

On September 3, 2025, Steven O. Vondran, the President and Chief Executive Officer of American Tower Corporation (the “Company”) attended the Citi 2025 Global TMT Conference where he participated in a “fireside chat” and one-on-one meetings with industry analysts and investors. Mr. Vondran mentioned that one of the Company’s customers in Mexico, AT&T Comunicaciones Digitales, S. de R.L. de C.V. and related entities (collectively, “AT&T Mexico”), and the Company are engaged in a legal dispute and that AT&T Mexico, which represented approximately $300 million of tenant revenue in 2024, has been withholding tower rents since the start of 2025. The Company incurred approximately $10 million of reserves in the second quarter of 2025 related to this customer, and if AT&T Mexico continues to withhold payment, the Company would likely incur additional reserves going forward. Mr. Vondran noted that the Company has valid defenses against AT&T Mexico’s claims, is vigorously defending the full enforceability of its Master Lease Agreement with AT&T Mexico (the “MLA”) and remains confident in the terms and conditions of the MLA. The arbitration is scheduled for a hearing in August 2026.

Separately, Mr. Vondran discussed the Company’s relationship with DISH Network Corporation (“DISH”), noting that DISH represents approximately 2% of the Company’s total annual property revenue and approximately 4% of the Company’s total annual U.S. & Canada property revenue, and the Company and DISH have a Master Lease Agreement that was signed in 2021 and expires in 2036.

Cautionary Language Regarding Forward-Looking Statements

This current report on Form 8-K contains “forward-looking statements” concerning the Company’s goals, beliefs, expectations, strategies, objectives, plans, future operating results and underlying assumptions and other statements that are not necessarily based on historical facts. Actual results may differ materially from those indicated in the Company’s forward-looking statements as a result of various factors, including those factors set forth under the caption “Risk Factors” in Item 1A of its most recent annual report on Form 10-K, and other risks described in documents the Company subsequently files from time to time with the Securities and Exchange Commission. The Company undertakes no obligation to update the information contained in this current report on Form 8-K to reflect subsequently occurring events or circumstances.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

						AMERICAN TOWER CORPORATION
						(Registrant)
Date:			September 5, 2025			By:			/s/ Rodney M. Smith
									Rodney M. Smith
									Executive Vice President, Chief Financial Officer and Treasurer

FAQ

What legal dispute did American Tower (AMT) disclose involving AT&T Mexico?

American Tower reported that AT&T Comunicaciones Digitales, S. de R.L. de C.V. and related entities (“AT&T Mexico”) are in a legal dispute with the company over their Master Lease Agreement, and that AT&T Mexico has been withholding tower rent payments since the start of 2025.

How significant is AT&T Mexico to American Tower’s revenue?

AT&T Mexico represented approximately $300 million of American Tower’s tenant revenue in 2024, indicating that this customer is a meaningful contributor to the company’s property-related income.

What financial impact has the AT&T Mexico dispute had on American Tower so far?

American Tower incurred approximately $10 million of reserves in the second quarter of 2025 related to AT&T Mexico’s withheld rents and indicated it would likely record additional reserves if the non-payment continues.

When is the arbitration with AT&T Mexico scheduled?

The arbitration related to American Tower’s Master Lease Agreement with AT&T Mexico is scheduled for a hearing in August 2026.

How did American Tower describe its legal position against AT&T Mexico’s claims?

American Tower stated that it has valid defenses against AT&T Mexico’s claims, is vigorously defending the full enforceability of the Master Lease Agreement, and remains confident in the agreement’s terms and conditions.

What exposure does American Tower (AMT) have to DISH Network?

Management noted that DISH Network represents about 2% of American Tower’s total annual property revenue and approximately 4% of its total annual U.S. & Canada property revenue under a Master Lease Agreement signed in 2021 that expires in 2036.

In what context were these customer updates from American Tower provided?

The updates were provided by President and CEO Steven O. Vondran during a fireside chat and investor meetings at the Citi 2025 Global TMT Conference, as described in an American Tower Form 8-K under Regulation FD disclosure.