American Tower (AMT) risk factors, FY2024 10-K

Risks Related to Our Business Strategy

1. 01A significant decrease in leasing demand for our communications infrastructure would materially and adversely affect our business and operating results, and we cannot control that demand
2. 02A substantial portion of our current and projected future revenue is derived from a small number of customers, and we are sensitive to adverse changes in the creditworthiness and financial strength of our customers
3. 03If our customers consolidate their operations, exit their businesses or share site infrastructure to a significant degree, our growth, revenue and ability to generate positive cash flows could be materially and adversely affected
4. 04Increasing competition within our industries may materially and adversely affect our revenue
5. 05or enter into new leases, they may be at rates lower than our current rates or on less favorable terms than our current terms, resulting in an adverse impact on our results of operations and growth rate
6. 06Competition to build or purchase assets could adversely affect our ability to achieve our return on investment criteria
7. 07New technologies or changes, or lack thereof, in our or a customer’s business model could make our communications infrastructure leasing business less desirable and result in decreasing revenues and operating results
8. 08Divestitures and strategic partnerships may materially and adversely affect our financial condition, results of operations or cash flows

Risks Related to Our Financial Performance or General Economic Conditions

1. 09Our leverage and debt service obligations, including during a high interest rates environment, may materially and adversely affect our ability to raise additional financing to fund capital expenditures, future growth and expansion initiatives and may reduce funds available to satisfy our distribution requirements
2. 10High inflation may adversely affect us by increasing costs beyond what we can recover through price increases

Risks Related to Laws and Regulations

1. 11Our foreign operations are subject to economic, political and other risks that could materially and adversely affect our revenues or financial position, including risks associated with fluctuations in foreign currency exchange rates
2. 12Our business, and that of our customers, is subject to laws, regulations and administrative and judicial decisions, and changes thereto, that could restrict our ability to operate our business as we currently do or impact our competitive landscape
3. 13We may be adversely affected by regulations related to climate change
4. 14If we fail to remain qualified for taxation as a REIT, we will be subject to tax at corporate income tax rates, which may substantially reduce funds otherwise available, and even if we qualify for taxation as a REIT, we may face tax liabilities that impact earnings and available cash flow
5. 15previously filed tax returns and continuing assessments of our tax exposures may have an adverse effect on our provision for income taxes and cash tax liability
6. 16Complying with REIT requirements may limit our flexibility or cause us to forego otherwise attractive opportunities
7. 17We could have liability under environmental and occupational safety and health laws

Risks Related to the Operation of Our Business

1. 18If we are unable to protect our rights to the land under our towers and buildings in which our data centers are located, it could adversely affect our business and operating results
2. 19If we, or third parties on which we rely, experience technology failures, including cybersecurity incidents or the loss of personally identifiable information, we may incur substantial costs and suffer other negative consequences, which may include reputational damage
3. 20Our expansion and operational initiatives involve a number of risks and uncertainties, including those related to integrating acquired or leased assets, that could adversely affect our operating results, disrupt our operations or expose us to additional risk
4. 21Our towers, fiber networks, data centers or computer systems may be affected by natural disasters (including as a result of climate change), public perception of health risks and other unforeseen events for which our insurance may not provide adequate coverage or result in increased insurance premiums
5. 22If we are unable or choose not to exercise our rights to purchase towers that are subject to lease and sublease agreements at the end of the applicable period, our cash flows derived from those towers will be eliminated