AT&T scores $850M upfront in real estate sale-leaseback dealAT&T scores $850M upfront in real estate sale-leaseback deal

AT&T said secured more than $850 million in upfront cash proceeds from the asset transfer of 74 US properties, including underutilized central offices, with Reign Capital. #pressrelease

January 24, 2025

1 Min Read

As part of its legacy network transformation, AT&T Inc. (NYSE: T) completed a structured sale-leaseback of underutilized central office facilities with private real estate development firm Reign Capital.

The transaction, which closed on Jan. 8, includes the asset transfer of 74 properties, located across the country, encompassing over 13 million square feet of space. The transaction generates more than $850 million in upfront cash proceeds for AT&T through a unique deal structure that enables future profit sharing from redevelopment opportunities.

Central offices were originally built to house and connect large, bulky, and energy-intensive equipment for outdated copper networks. As customers move 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.

Read the full press release here.

AT&T

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