On January 8, 2025, AT&T completed a sale-leaseback of 74 underutilized properties, generating over $850 million in cash. This strategic move is part of AT&T's legacy network transformation, aimed at reducing reliance on outdated copper technology in favor of more efficient fiber and wireless systems. The transaction not only provides immediate financial benefits but also positions AT&T to monetize its real estate assets while maintaining control over necessary operational spaces. This aligns with the company’s capital allocation priorities as it phases out legacy services by 2029.
The uniquely structured deal unlocks value in otherwise stranded commercial real estate space which is key for AT&T's transformation initiatives.
By leasing back only space that is needed for the network, AT&T is streamlining its real estate footprint as it exits legacy operations.
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