What changed in this filing

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

2024-11-01 compared with 2024-08-02 · 18 added, 15 removed, 74 unchanged (31% of the section changed)

2 unchanged sentences

These instruments arise from transactions entered into in the normal course of business.

The following table presents the future principal payment obligations and fair values associated with our long-term debt instruments assuming our actual level of long-term indebtedness as of June 30, 2024:

(in thousands)

16 unchanged sentences

While we cannot predict our ability to refinance existing debt or the impact interest rate movements will have on our existing debt, we continue to evaluate our financial position on an ongoing basis.

We have performed a sensitivity analysis assuming a hypothetical 1% increase in our variable interest rates as of June 30, 2024.

As of June 30, 2024, the analysis indicated that such an adverse movement would have caused our interest expense to increase by approximately 1.3% for the six months ended June 30, 2024.

We have performed a sensitivity analysis assuming a hypothetical 1% increase in our variable interest rates as of September 30, 2024.

As of September 30, 2024, the analysis indicated that such an adverse movement would have caused our interest expense to increase by approximately 1.8% for the nine months ended September 30, 2024.

We are exposed to market risk from changes in foreign currency exchange rates in connection with our operations in Brazil, Canada, Chile, Peru, Colombia, South Africa, the Philippines, Tanzania, and to a lesser extent, our markets in Central America.

7 unchanged sentences

Dollars at exchange rates in effect at the end of the applicable fiscal reporting period, and all revenues and expenses are translated at average rates for the period.

The cumulative translation effect is included in equity as a component of Accumulated other comprehensive income (loss), net.

For the six months ended June 30, 2024, approximately 22.0% of our revenues and approximately 31.2% of our total operating expenses were denominated in foreign currencies.

We have performed a sensitivity analysis assuming a hypothetical 10% adverse movement in the Brazilian Real from the quoted foreign currency exchange rates at June 30, 2024.

As of June 30, 2024, the analysis indicated that such an adverse movement would have caused our revenues and operating income to decline by approximately 1.3% and 1.0%, respectively, for the six months ended June 30, 2024.

As of June 30, 2024, we had intercompany debt, which is denominated in a currency other than the functional currency of the subsidiary in which it is recorded.

The cumulative translation effect is included in equity as a component of Accumulated other comprehensive loss, net.

For the nine months ended September 30, 2024, approximately 21.7% of our revenues and approximately 31.3% of our total operating expenses were denominated in foreign currencies.

We have performed a sensitivity analysis assuming a hypothetical 10% adverse movement in the Brazilian Real from the quoted foreign currency exchange rates at September 30, 2024.

As of September 30, 2024, the analysis indicated that such an adverse movement would have caused our revenues and operating income to decline by approximately 1.3% and 1.0%, respectively, for the nine months ended September 30, 2024.

As of September 30, 2024, we had intercompany debt, which is denominated in a currency other than the functional currency of the subsidiary in which it is recorded.

As settlement of this debt is anticipated or planned in the foreseeable future, any changes in the foreign currency exchange rates will result in unrealized gains or losses, which will be included in our determination of net income.

A change of 10% in the underlying exchange rates of our unsettled intercompany debt at June 30, 2024 would have resulted in

approximately $125.7 million of unrealized gains or losses that would have been included in Other (expense) income, net in our Consolidated Statements of Operations for the six months ended June 30, 2024.

A change of 10% in the underlying exchange rates of our unsettled intercompany debt at September 30, 2024 would have

resulted in approximately $114.8 million of unrealized gains or losses that would have been included in Other income (expense), net in our Consolidated Statements of Operations for the nine months ended September 30, 2024.

Special Note Regarding Forward-Looking Statements

10 unchanged sentences

 our capital allocation strategies and the impact of these strategies on our future financial and operational results including our goal of increasing our Adjusted Funds From Operations per share;

 future our future liquidity requirements, including our debt service in 2024, and our ability to meet such requirements with cash on hand, capacity under our Revolving Credit Facility, and our cash flows from operations for the next twelve months will be sufficient to service our outstanding debt during the next twelve months;

 our ability to refinance in the near term a portion of our outstanding debt facility as well as the interest rates at which we will be able to refinance;

 the impact of our election to be taxed as a REIT on that strategy,

 our future liquidity requirements, including our debt service in 2024, and our ability to meet such requirements with cash on hand, capacity under our Revolving Credit Facility, and our cash flows from operations for the next twelve months will be sufficient to service our outstanding debt during the next twelve months;

 our previously announced agreement with Millicom, including the timing of closing;

 our site leasing revenue and our strategies for growing our cash flows;

 our election to be taxed as a REIT, the impact of such election and our intent to continue to operate as a REIT;

 that we will be able to grow our dividend rate in the future;

 the timing for closing of pending acquisitions;

 our election to be subject to tax as a REIT and our intent to continue to operate as a REIT;

 the timing for closing and costs of pending acquisitions;

 depreciation and amortization expense;

the impact of inflation;

 the use of NOLs to reduce REIT taxable income;

15 unchanged sentences

 our ability to secure as many site leasing tenants as anticipated, recognize our expected economies of scale with respect to new tenants on our towers, and retain current leases on towers;

 our ability to obtain the necessary regulatory approvals and satisfy the other closing conditions of the Millicom transaction;

 our ability to secure and deliver anticipated services business at contemplated margins;

12 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 3. Quantitative and Qualitative Disclosures About Market Risk