DALLAS — AT&T Inc. (NYSE: T) has completed a sale-leaseback transaction with New York City-based development and investment firm Reign Capital that encompasses approximately 13 million square feet of office space across 74 U.S. properties. The deal, which closed earlier this month, nets the Dallas-based telecommunications giant about $850 million in upfront cash proceeds.
The names and locations of the AT&T-owned buildings in which the spaces are located were not disclosed. According to AT&T, the majority of the space that was sold was originally designed and developed “to house and connect large, bulky and energy-intensive equipment for outdated copper networks.”
AT&T further explained that “as customers move[d] from copper to fiber and wireless, a smaller, more efficient equipment footprint is managing the network. This technology evolution not only reduces power consumption, benefitting the environment, but also lowers operating costs and frees up valuable real estate for other uses.”
AT&T plans to exit the large majority of its legacy copper network operations by the end of 2029. Under the terms of the deal, AT&T will make lease payments to Reign Capital for the duration of the lease term and maintain exclusive operational control of space required for access to communications infrastructure in each location.
In addition, the agreement includes provisions for financial participation in redevelopment revenues, ensuring long-term benefits from future property value increases. AT&T retains final redevelopment plan approvals to ensure network infrastructure and operations remain undisturbed at these properties.
AT&T provides telecommunications services for more than 100 million individual customers, as well as nearly 2.5 million businesses. The firm employed approximately 150,000 people globally as of year-end 2023.
AT&T’s stock price closed on Friday, Jan. 24 at $22.72 per share, up from $17.25 a year ago.
— Taylor Williams