What the changes say
- Customer lease disputes and data governance failures are newly highlighted risks for American Tower Corporation.
What changed since the prior 10-K
New
- NewRisks Related to Our Business Strategy
Our business, results of operations and financial condition could be negatively impacted by disputes with our customers
Ordinary course lease disputes with customers could lead to lease terminations, litigation, and decreased revenues.
- NewRisks Related to Our Business Strategy
business that may not provide expected returns or profitability, which could divert management attention and have a material adverse effect on our operating results
Customers may overestimate 5G network benefits, which could adversely affect their growth and American Tower's growth.
- NewRisks Related to Our Business Strategy
Our use of joint ventures and strategic partnerships may expose us to risks associated with jointly owned investments
Joint ventures in Europe, Data Centers, and Africa and APAC expose the company to partner conflicts and liabilities.
- NewRisks Related to Our Financial Performance or General Economic Conditions
default on any of the loans, the servicer on such loan could seek to foreclose upon or otherwise convert the ownership of the secured assets, in which case we could lose such assets and the cash flow associated with such assets
Credit facility covenants and cross-default provisions could restrict development, acquisitions, and lead to foreclosure of secured assets.
- NewRisks Related to the Operation of Our Business
Our business depends on effective data governance, and failures in our data governance frameworks could adversely affect our operations
Data governance failures or insufficient access controls could result in fraud, data leakage, and operational disruptions.
- NewRisks Related to the Operation of Our Business
The transformation initiatives we undertake may not deliver the results we expect
Operational transformations and digital initiatives may be costly, disruptive, and fail to deliver expected profit margins.
Dropped
- DroppedRisks Related to Our Business Strategy
or 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
- DroppedRisks Related to Laws and Regulations
previously 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
Reworded
- 80% rewrittenRisks Related to Our Business Strategy
Increasing competition within our industries may materially and adversely affect our revenue
Added a disclosure that 2025 tenant billing churn was approximately 2%.
- 69% rewrittenRisks Related to Laws and Regulations
We may be adversely affected by regulations related to climate change
Added references to federal policy changes under the current US administration and local jurisdictions like New York.
- 59% rewrittenRisks Related to the Operation of Our Business
Our towers, data centers, other telecommunications assets 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
Expanded asset scope to explicitly include other telecommunications assets alongside towers and data centers.
Was: Our 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
- 58% rewrittenRisks Related to the Operation of Our Business
Our expansion initiatives involve a number of risks and uncertainties that could adversely affect our operating results, disrupt our operations or expose us to additional risk
Refined language regarding risks encountered during the course of acquiring or building communications assets.
Was: Our 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
- 58% rewrittenRisks Related to Our Financial Performance or General Economic Conditions
Increased inflation and interest rates may adversely affect us by increasing costs beyond what we can recover through price increases
Updated inflation drivers to include changes in trade or tariff policies alongside ongoing global military conflicts.
Was: High inflation may adversely affect us by increasing costs beyond what we can recover through price increases
- 56% rewrittenRisks Related to the Operation of Our Business
If 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
Expanded cybersecurity vulnerabilities to explicitly include disruptions to customers' operations.
- 55% rewrittenRisks Related to Our Business Strategy
Divestitures may materially and adversely affect our financial condition, results of operations or cash flows
Updated recent divestitures to include Mexico fiber and Poland in 2023 and South Africa fiber in 2025.
Was: Divestitures and strategic partnerships may materially and adversely affect our financial condition, results of operations or cash flows
- 55% rewrittenRisks Related to Our Financial Performance or General Economic Conditions
Our leverage, debt service obligations and repurchase activity 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
Added specific figures showing $37.2 billion in consolidated debt and $9.6 billion in available borrowing capacity as of December 31, 2025.
Was: Our 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
- 53% rewrittenRisks Related to Laws and Regulations
Our 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
- 47% rewrittenRisks Related to Our Business Strategy
A 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
- 36% rewrittenRisks Related to Laws and Regulations
If 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
- 22% rewrittenRisks Related to Our Business Strategy
New 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
- 20% rewrittenRisks Related to Our Business Strategy
If our customers consolidate their operations, exit their businesses or share site infrastructure to a significant degree, our growth and revenue could be materially and adversely affected
Was: If 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
All 26 risk factors
Headings as the filing states them, in filing order.
Risks Related to Our Business Strategy
- 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
- 02Our business, results of operations and financial condition could be negatively impacted by disputes with our customersNew
- 03A 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 customers47% rewritten
- 04Increasing competition within our industries may materially and adversely affect our revenue80% rewritten
- 05If our customers consolidate their operations, exit their businesses or share site infrastructure to a significant degree, our growth and revenue could be materially and adversely affected20% rewritten
- 06Competition to build or purchase assets could adversely affect our ability to achieve our return on investment criteria
- 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 results22% rewritten
- 08business that may not provide expected returns or profitability, which could divert management attention and have a material adverse effect on our operating resultsNew
- 09Divestitures may materially and adversely affect our financial condition, results of operations or cash flows55% rewritten
- 10Our use of joint ventures and strategic partnerships may expose us to risks associated with jointly owned investmentsNew
Risks Related to Our Financial Performance or General Economic Conditions
- 11Our leverage, debt service obligations and repurchase activity 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 requirements55% rewritten
- 12Increased inflation and interest rates may adversely affect us by increasing costs beyond what we can recover through price increases58% rewritten
- 13default on any of the loans, the servicer on such loan could seek to foreclose upon or otherwise convert the ownership of the secured assets, in which case we could lose such assets and the cash flow associated with such assetsNew
Risks Related to Laws and Regulations
- 14Our 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
- 15Our 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 landscape53% rewritten
- 16If 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 flow36% rewritten
- 17Complying with REIT requirements may limit our flexibility or cause us to forego otherwise attractive opportunities
- 18We could have liability under environmental and occupational safety and health laws
- 19We may be adversely affected by regulations related to climate change69% rewritten
Risks Related to the Operation of Our Business
- 20If 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 damage56% rewritten
- 21If 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
- 22Our business depends on effective data governance, and failures in our data governance frameworks could adversely affect our operationsNew
- 23The transformation initiatives we undertake may not deliver the results we expectNew
- 24Our expansion initiatives involve a number of risks and uncertainties that could adversely affect our operating results, disrupt our operations or expose us to additional risk58% rewritten
- 25Our towers, data centers, other telecommunications assets 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 premiums59% rewritten
- 26If 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
Other American Tower 10-Ks
- FY2024 10-K risk factors22 risks
Demand for communications infrastructure relies heavily on wireless and cloud service provider capital expenditures and leasing stability.
Filed Feb 25, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.