American Tower Corporation (AMT) Earnings Call Transcript & Summary

All right. Welcome, everybody, to the 30th Annual Media, Internet and Telco Conference. I'm Matt Niknam, comm infrastructure analyst here at Deutsche Bank. And we're very pleased to be joined by American Tower's CFO, Rod Smith. Rod, welcome.

Good morning, everyone. Yes. Good morning, everyone. Thanks for coming.

So Rod, very, very busy 2021. After having closed that out, can you talk about the top priorities for the company in 2022?

Yes. Thanks, Matt. It's a great question. We did have a very busy 2021, a few transformational acquisitions. Certainly, the big acquisition we did in Europe, buying the Telxius assets. And then following that up with another $10 billion of our acquisition of a data center business in the U.S. So we were very busy, but that doesn't change the priorities of the company. Our priorities continue to be driving organic growth to make sure that we put together a collection of assets around the globe that are well positioned to drive organic growth through the increased consumption of mobile data around the world. And we see that continuing to happen in the U.S. as the U.S. market transitions to 5G. We see Europe at the early stages of transitioning to 5G deployments as well. In many of the emerging markets that we're in, in India, in Latin America, throughout Africa, they're all continuing to build out 4G networks and densifying those networks. So we see mobile data consumption really around the world continuing to rise. And our #1 priority is making sure our assets are well positioned to grow organically. And then in addition to that, it's being prepared to grow inorganically and to make sure that we're scanning the globe and not just in tower assets, as you saw with the CoreSite acquisition, but other asset classes that allow us to extend our growth rates longer term.

Okay. That's a good segue. So the business obviously has evolved, I'd say, over the last decade. You mentioned 2 large $10 billion deals last year. So now you've become maybe more of a global digital infrastructure platform. So can you talk about the broader strategic vision for the company, how the mix of U.S. and international towers, alongside data centers, maybe enhances AMT's strategic position, maybe looking forward over the next decade?

Yes. Absolutely. So number one, I would say we are a tower company. That is our core asset base. That's the asset class that we've been in for well over 25 years, really driving this tower business not just in the U.S. but around the globe. So make no mistake about it, the American Tower is a tower company. And we are well positioned to benefit from growth in mobile data around the globe. And also, we're well positioned to continue to expand that portfolio. In addition to the tower assets, we do see changes and an evolution in these networks, and particularly in 5G networks, that we believe will allow us to drive additional value and growth on the tower asset. And that really is the key to buying the CoreSite business. We see CoreSite as a very unique, high-quality set of assets. These are network-centric, highly interconnected. Each one of the facilities that we acquired through CoreSite has cloud on-ramps within them. So this set of assets is not your old-fashioned data center, where people are watching over, babysitting servers in air-conditioned space. These are full interconnection facilities, network-dense facilities with cloud on-ramps. And we do think, and we believe firmly in the fact that these networks will evolve over time, particularly with 5G in the wireless side but also on the landline side, where network users and network companies will require lower latency in the networks. And in order to get that, you've got to push out the compute power of the on-ramps and the network connections out closer to the edge. So we see that evolution coming. We firmly believe that more and more connections through the networks will be cloud-centric. People won't be holding their own applications and data, enterprise data as well as applications for the wireless network on servers and data centers longer term. It's all going to be in the cloud. And those cloud on-ramps will need to become much more diverse and spread out throughout the U.S. and then around the globe as well. So we have a vision where we will -- we expect to see many more cloud on-ramps around the country. Those cloud on-ramps could certainly be at tower sites. We have the wireless carriers at the tower sites today. We have base radios at the sites today. We have easements for power and telco, so they're perfect locations to site these new cloud on-ramps and have network compute power there as well, not just to serve the wireless subscribers in the wireless networks but landline companies -- landline network companies can tap into that as well as enterprise customers could get easier access to cloud on-ramps if they were more distributed throughout the U.S.

Got it. And so as we think about now the evolution of the platform, you've got U.S. and international towers. We talked a little bit about data centers, and we'll get into that a little bit more. But as we think about bottom line growth, can you maybe help us think through the aspirational targets you've laid out for double-digit AFFO per share growth? And I know that's on average through 2027, maybe from a high level in terms of assumptions around organic growth, margin expansion and leverage in terms of the inputs to those targets?

Yes. So we did put out long-term guidance last year. We are targeting 10% AFFO per share growth from 2021 out through 2027 on average. So we were quick to say not every year do we expect to be over 10%. But on average, we do expect to be at the 10% mark. 2021 was the first year that we were operating under that guidance, and our AFFO per share growth was in the above 13%, so a really nice solid start there. It's going to be lower in 2022 because of the realization of the Sprint churn that we have coming through. And then we would expect that to bounce right back up after we get through there. We also put out longer-term organic tenant billings growth targets for the U.S. And in that -- on that topic, we sit today with a clear path to seeing, on average, 4% reported organic tenant billings growth between now and out through 2027 in the U.S. If you normalize that for the Sprint churn, it will be up more like 5%. If you look out over a couple of years, we expect that number to continue to accelerate, where we would have reported growth out from 2023 out to 2027 on a reported basis, inclusive of the Sprint churn at 5%. And then if you normalize for that Sprint churn, we would expect it to be about 6%. So we do see accelerating contributions to our organic tenant billings growth in the U.S. Once we get through this Sprint churn, we do see accelerated growth. That acceleration is coming in a couple of different places. We certainly are seeing the beginning of 5G deployments from a lot of the carriers, and we also have DISH as a customer. Now they'll be a paying customer for us this year. That will ramp up in a couple of tranches of fixed fee, kind of MLA-type revenue for us. That will start this year, and then it will accelerate into the next couple of years. And that's a contributor to our overall long-term growth. So we do see accelerating organic tenant billings growth in the U.S. And we see a really solid backdrop globally for our business. Certainly, we have a few churn events here and there. When you have a company that spans 25 different countries, a lot of different emerging markets, we do have churn events from time to time. But make no mistake about it, the underlying revenue demand and the growth across our portfolio has been really strong. And we continue to see that. And it's really driven by where these networks globally are in their development and the amount of infrastructure they're going to need in the future to satisfy the population within those countries and to provide the networks. Many of the countries we're in don't have landline networks, so they rely solely on wireless networks. And once you get the handsets, particularly when you get into the higher evolution handsets into the hands of the people within the markets that we're in, they consume an awful lot of data. So we see a long track record or a long runway here internationally of carriers deploying capital, building out networks. And we are partnered with some of the largest customers in the international market on each continent, customers like Telefónica over in Europe and Orange over in Europe and MTN down in Africa and Airtel in India and in Africa. So some of the biggest carriers out there are our partners that we're providing them the infrastructure. So we see the revenue growth in the U.S. and internationally really strong and certainly constructive and supportive of double-digit AFFO growth. You have seen our margins decline slightly in 2021 and in 2020, really based on us having -- buying some of these portfolios. We bought the InSite portfolio in the U.S., slightly less tenanted than our core U.S. portfolio. We bought the Telxius assets in Europe, which came a little over one tenant per tower, so the margins there are low. We brought in the CoreSite assets. That has a lower margin. So you have seen a reduction in our margins because of that. We also have the Sprint churn that began to roll off in Q4 of 2021. That certainly reduces the churn rate. If you normalize for those things, we would have expansion in our margins. So now that those acquisitions are done, we've kind of reset where the margins are. This business has such tremendous operating leverage that those margins will begin to expand now as we go forward, both in the U.S. and around the globe. So we certainly look for that. And those are the things that help drive that double-digit AFFO per share growth. And then the final thing that I would say is we continue to scan the globe to find AFFO per share accretive transactions we can do. And we will be very disciplined as we look for those. And maybe the one other thing I would just highlight here is in our revenue assumptions. We've got over 2/3 of the revenue growth that we're projecting from now out to 2027 already contracted, fully contracted and noncancelable kind of in our contracts. So really good visibility to that level of growth, which gives us the confidence to put out that double-digit AFFO target on average from 2021 out to 2027.

I wanted to just touch on one of the last points you mentioned, sort of still scanning the globe for additional maybe accretive deals. With leverage where it sits right now after the CoreSite acquisition, does that preclude you in any way or inhibit your ability to maybe look at some of the portfolios that we read and hear about in terms of coming on -- coming to market, particularly in Europe and overseas?

Yes. I would say no, it doesn't preclude us from anything. We can certainly look at transactions around the globe, and we will. And ones that we find that we really like, that we find the right terms and conditions and we feel good about, we can also execute there. We did end 2021 with leverage up around 6.8x, well above our 3 to 5x target. So we do expect to delever here in 2022 pretty significantly. That's based on purchasing the CoreSite assets, really with bank debt. We went out and increased our bank facility borrowings by a little bit more than $10 billion to close on CoreSite. We will now replace that with -- in the outlook that we put out for 2022, we're assuming that we'll raise about $5.5 billion of common equity. With that said, that's an assumption in a model for outlook purposes. We're also looking at all other kinds of options when it comes to that equity piece, which could be mandatory convertible preferreds or it could be private capital as well. So we've done private capital in Europe. We raised about $3 billion in private capital when we closed on the Telxius transaction. And it is important to us to have a strong balance sheet. We're investment-grade balance sheet. We've got tremendous access to capital around the globe. We increased our euro borrowings in the capital markets from $1.5 billion a couple of years ago up to over $6 billion now. So we've got that cap -- that senior unsecured notes and denominated in euros, that market is wide open to us. Now the investors there know us very well. We're in and out of that market consistently. And on the private capital side, in the transaction we did with Telxius, we got to know 20 to 30 really high-quality global, large private investors. And we expect to continue to tap those folks for different acquisitions potentially around the globe. We're looking at that for the CoreSite transaction. So we've got a number of different capital sources and different ways we can do acquisitions. So we will be delevering, but it won't stop us from looking at additional acquisitions. If we find the right ones with the right terms and conditions, then we could execute.

And what's embedded in terms of your outlook for '22 timing-wise, just in terms of the $5.5 billion you referenced. I think you referenced that on the earnings call as well. I'm just wondering any updates you can share in terms of timing or expectations.

Timing is -- I think we're going to have the permanent financing kind of put in place during the second quarter of 2022. That's kind of where we're working to. With that said, we'll watch markets. We'll work with private capital investors. We'll continue to work with rating agencies. Investment-grade credit is important to us, so we will maintain the investment grade credit that we have. Could that mean that we end up getting into Q3 before we issue the equity? It's possible, so we'll look at that. But we're currently kind of on track to have it wrapped up sometime in Q2.

You referenced the U.S., Just one more I wanted to touch on is maybe from a high level, if we think down to the 2022 targets you laid out for U.S. organic growth, I think most are sort of understanding around Sprint churn peaking. It started off late last year. We're going to peak and then it will begin to sort of abate exiting '22. But as we think about the outlook for gross organic growth, just in terms of amendments and colo activity, what's baked into the outlook for '22? And is there any color you can give us in terms of -- and I know you don't like to get into the carrier-specific activity, but any just color in terms of what's driving a lot of that pickup year-on-year?

Sure. So last year, in 2020, in 2021, from colos and amendments, we had about $130 million contributed to our organic tenant billings growth or our organic tenant billings. In 2022, we're forecasting that to be around $150 million. So it's about a 15% step-up in the level of activity around colocation amendment contributions to our tenant billings. And it's really a continuation of the big carriers investing capital in building out their networks. And I would remind people that we do have comprehensive MLAs with a number of our carriers where the level of activity is decoupled from their fees and their revenue growth that we get from those carriers, at least on a year-to-year basis, but it's all inclusive within a multiyear window. So we've kind of flatlined some of the growth revenue numbers from the carriers. And they have a little bit more flexibility in terms of when they take those amendments, when they deploy the colos within a few year period. So 2 out of the 3 big carriers, we've got those comprehensive MLAs. And so that revenue is kind of baked right in. We know exactly what it's going to be. We have 100% visibility unless they use more of our sites than we contemplated, unless they have more equipment, bigger pieces of equipment going in over and above what we contemplated. If they do that, then that's upside. If some -- if one of the carriers turns up their CapEx program and overperforms compared to what we were planning and what we agreed with them on, then we would -- that would be what we refer to as additions to pay, additional fees on top of it. So there's always the opportunity for upside there, particularly in a world where it's getting very competitive in a 5G landscape. So really, you can think about it as a continuation from the 3 big carriers and then it has the addition of DISH kind of rolling in this year. And in the way that our agreement with DISH works, and we've talked about this in the past, is that their fixed fee step-up, certain number of sites that they get over a number of years. So what is in our projections for 2022 really is the minimum commitment that we have from DISH in there. And Verizon, everyone knows, is now on an ala carte basis going forward, starting 2022. So we have them in slated at a normal level of activity. And again, if they outperform that, there's upside there. But we've got them kind of at a consistent run rate to prior years.

Got it. I want to go back to CoreSite just because we got a lot of questions around the rationale for the deal. Why buy CoreSite? Why not partner with them? So maybe to answer that, if you can answer that directly, what does the deal necessarily give you relative to partnerships you could have signed maybe with a broader set of data center peers?

Number one, it gives us a great set of assets that we now own. So it's -- it came with 25 core data center facilities spread across 8 different markets they're in, from San Francisco down to L.A. up in Chicago and down in Denver up in Boston, New York, Northern Virginia and down in Miami. So they're really well distributed throughout the U.S. And owning that asset gives us full optionality in terms of what we could do with it going forward. It gives us direct ownership and direct customer relationships with the cloud players, all the cloud players that are in these organizations. And it gives us full control of these highly interconnected facilities, which are some of the highest quality, most interconnected facilities that you'll find in the U.S., particularly out in California with the One Wilshire, and a really nice foothold again in the Northern Virginia area. So we now have cloud on-ramp spread out all over the country. We have network-dense facilities. We also have 43,000 towers in the U.S., kind of roughly speaking, spread out in the same -- in a very similar geographic pattern is where these data centers are. So when we think of the evolution to mobile edge, that network development won't be driven by one company alone. It will require cloud on-ramps and interconnection. It will likely require some tower and tower space. The wireless carriers will join those facilities to reduce their latency. I think they will want those cloud on-ramps and compute power close to where their base radios are, which are all at tower sites today. So now we come into negotiations with folks around the edge, which would be cloud players, wireless carriers, network companies and tower companies. And we represent really high-quality, well dispersed interconnection assets as well as tower assets. So we are a much more credible player in terms of not participating in the edge but being able to drive the edge and drive with those mobile sites where we're going. And the other thing I would say is that this set of assets that we bought, they are a high-quality set of assets with really strong growth potential because of the amount of interconnection. We've got over 32,000 interconnections within these facilities. And like I said, cloud ramps in all of them. That makes the revenue very sticky. So the churn rate there, we expect going forward will be down in the 6% to 8% range and well controlled for many years to come. We also see the revenue growth to be able to be up in that 6% to 8% revenue growth year after year. That's a little bit higher than what they had done in the past. We think that with this high-quality set of assets and a little bit more capital that we can put into that business, really putting CoreSite's own cash flow back into the business, that they can build out some additional capacity a little bit sooner and drive more revenue growth. So we do see this business being well positioned with really strong revenue drivers. So we look at it as very little downside because of the nature and the high quality of these assets. We think they're worth every penny that we pay based on discounted cash flow models. Very confident that there are others out in the U.S. that would want to participate in these assets and see the value the way we see them. But then there's tremendous upside in terms of the optionality. So high-quality, limited downside, really good economic growth with a tremendous upside under our ownership.

And you mentioned maybe using their cash flow to maybe grow a little bit faster than they had been growing in the past. One of the other follow-on questions that often comes from investors is how do you think about maybe using AMT's larger balance sheet access to capital? And obviously, you've got a global footprint. How do you think about maybe leveraging that to expand CoreSite's data center footprint, either domestically in newer markets or maybe even internationally, given the locations of your sites?

Yes. So it's a great question. We do have a big balance sheet. We have a lot of capital at our disposal. But with CoreSite, we will be disciplined. And our focus on CoreSite today is continuing the high economic growth that these current facilities can drive. And it's building out capacity within these facilities to satisfy the customers and the demand within there. And we think we can do that by reinvesting CoreSite's own cash flow. So they -- CoreSite typically would invest about $150 million kind of on average every year in building out additional capacity. Our outlook for 2022 is going to be about $300 million of capital. And it does include building out some additional capacity in a few buildings but also a new ground-up development potentially out in California in the Silicon Valley area, which is a place where we've already got 8 buildings that are all full. Revenue opportunity there is tremendous. So adding some more capacity there, we think, could be really interesting. So our first focus is driving growth on the existing assets and the campuses. And the way these buildings and campuses work is they're interconnected. So when you're in Silicon Valley, whether you're in building 1, 7, 8, 9, it doesn't matter. You're all interconnected, and you can interconnect with everybody in there. So adding that capacity really makes the revenue much stickier. And it also allows for the growth in revenue. And there is the demand there. So we want to make sure that we have the capacity available when people need it.

And to take the platform -- I assume the $300 million this year is domestic.

Domestic, that's correct.

It sounds like that's maybe overseas?

Yes. I think the first thing we'll do is look at expanding these -- the capacity of the current campuses. The next thing we'll be doing is really looking at the mobile edge and really trying to define what the mobile edge is, working with tech companies, cloud companies, networking companies, wireless carriers, to really figure out where that edge is. And we would invest in the edge at our tower sites when that opportunity comes up. We're not looking to build a data center business that competes with some of the other large U.S. data center businesses. We want to have a very unique high-quality set of select assets across the U.S. and use that to drive the networking facilities of the future. These smaller, lower power, anywhere from 500-kilowatt to 1-megawatt to maybe 2-megawatt facilities that would be spread around the U.S., that really will be our focus. And driving those on to the tower site is key for us as well. When it comes to international, again, we're not looking to expand internationally right away in terms of data centers. But to the extent that we figure out the ecosystem here around the edge and find a model that really works, where you're interconnected with landline customers and wireless customers and using the tower as a home base for these edge facilities, we will then look to expand that internationally maybe over in Europe to the extent that they're already rolling into 5G and doing some select things internationally as networks get upgraded and they need the lower latency and the more edge. But you're not going to see us expanding into data center businesses around the globe right away. We're going to be cautious. We're going to be slow in terms of that. We'll be focused on the edge. We'll be focused on driving organic growth in CoreSite, expanding CoreSite where it makes sense to continue that economic growth.

That's great context. Maybe let's hit international as well. If you can update us on expectations for the international business and maybe help us unpack the forecast for 6% organic growth this year, high level across the different geos.

Yes. Yes, sure. So we have a number of businesses around the globe in Europe, Africa, Latin America and over in India. The one thing we see for sure is that the demand for our assets is strong kind of across the board. And we are seeing higher level growth in Europe and something we've forecasted and we talked about. In 2021, our organic tenant billings growth was about 5% in Europe. We then bought the Telxius assets, which was a $10 billion acquisition of assets in Spain and in Germany but also had some assets that filled out some of our markets down in Latin America. And at the time, we were projecting that organic tenant billings growth on that portfolio could be up in the mid-single digits, maybe 6% to 7% organic tenant billings growth from that perspective. We are now forecasting upper single-digit growth rates in our European business. So we're forecasting 9% organic tenant billings growth in Europe, which is a really nice number for us. We do think that will moderate and step back a little bit, so back into that 6% to 7% range by the time we get out to 2023. But we are seeing exactly what we expected to see. There is less churn in the European market. There's more demand for these sites. There are new entrants in Germany and some good activity around 4G densification and 5G deployment. So we think Europe is really well positioned for many years of solid demand. And we think that because of the assets that we put together in Europe, our churn rates will be relatively low in Europe. And that will give us that nice north of 5% growth in that, let's call it, 6% to 7% growth, organic tenant billings growth. But this year, we're looking at 9%, so really attractive. And one of the things that is helpful there is the Telxius assets. Because of the way it's contracted, we'll have very little churn, if any at all. So that really reduces the overall churn rate in that market at a time when we are seeing increased growth rates there. So Europe is really strong for us. We couldn't be more happy with the acquisition we had done and the way that it's performing. The integration is well in hand, and the growth rates look really strong across Europe. So we're excited about Europe. And then jumping over, I'll hit India really quickly. We're going to be in positive territory for organic billings growth there in India for the first time in many years. We're projecting between 2% and 3% of organic tenant billings growth. That is also because of a moderation in churn. The churn rates are coming down to 5% or so in India, and we still see solid organic gross growth up in that 5% range as well, maybe a touch north of that. And then we have 2% escalators across the board there. So we do think that, that market is turning a corner and turning a corner fairly rapidly. We're still very cautious in terms of what we're projecting there. But the Indian government has stepped up and really have been much more supportive to the wireless segment, the telecom segment than it has in the past. It allowed the carriers to delay their interest and penalty fees on what we refer to adjusted gross revenue case that was in Europe, which is essentially a tax on adjusted gross revenue that goes back over a 15-year period. So that took a $7 billion liability off of Voda and basically delayed it for 4 years. And Voda has subsequently then set all the penalties and interest that accrue on that. They're going to turn that into equity for the government and not pay it out. So it helps them really shore up their balance sheet. So they are in the process of really kind of figuring that out. They're also monetizing some of their noncore assets, which again will further strengthen their balance sheet. And the industry, by and large, raised tariffs. And now they're producing more EBITDA as a sector, and that's going to be really constructive for them as well. So we think India is on the verge of some really good things. We're happy to see them come back into positive territory for us when churn rates come down. We are building 3,500, 3,600 sites in India in 2022. That's a similar level to what we built in 2021. And those all come in with double-digit NOI yields on day 1. So it's really good assets to build. And so the Indian market is really transitioning. And again, we're cautious there. So when you think of the double-digit AFFO per share growth rates that I talked about over -- between now and 2027, that has kind of a moderate recovery in India built in. And when it has organic tenant billings growth coming back into the mid-single digits over that time period, there's a chance that we can do much better than that in terms of if the market continues to heal and continues on the trajectory that it's on. Then bouncing over to Latin America, we're going to see organic tenant billings growth rates in 2022 better than 6%. That's slightly down below where it was in 2021, down off of, I think, it was just under 8% in 2021. And the reason for that is we're seeing elevated levels of churn in a few specific instances in Latin America. So we have the continuation of some of the Nextel churn coming through in Brazil. And we also have Altan, who's kind of hit a pause, not necessarily churn but not building out quite as aggressively as they were. We think that, that they will get sure footing on their balance sheet, and they'll continue to build as well. We have Telefonica kind of working through their MVNO strategy with AT&T in Mexico, so that's kind of delayed things there slightly. But we're seeing solid levels of gross growth, elevated churn because of a few -- just a few instances of churn there. And we're seeing outsized escalators in Latin America. So the escalators are jumping up into the upper single-digit rates in Latin America. So that's kind of where Latin America looks. But certainly, the long-term gross demand is going to be there. And we do think these churn events are temporary. They'll come, and they will go. And the demand will still be there, and the growth rates will rebound to upper single digit growth rates. And Africa is really a similar story. They're going to be around 6% organic tenant billings growth in 2022. That's down a couple of hundred basis points from where they were a year ago. There are a few select instances of churn. We do have Airtel Tigo exiting Ghana. We also have Cell C exiting South Africa. We've got a few other things kind of going on within the marketplace. We are seeing very strong growth in a place like Nigeria. So we're up in double-digit growth rates in Nigeria as they deploy 4G networks and kind of build out that country. So we -- in these emerging markets, we will have times when there's elevated churn. But we'll also have times where there's just elevated organic tenant billings growth over time. So -- and that's just a function of the amount of network investment that those countries need. And we've got really good assets across those countries, and that's where the bulk of the investments will go in terms of where the antennas are going to be cited on tower sites and certainly on our tower sites. So that -- I think that kind of hits the globe in terms of organic tenant billings growth.

Just in the last minute or so. If anybody has any questions in the audience, you can raise your hand, and somebody with a mic will come over. So maybe just to wrap up, last question here, if we're sitting back here next year, looking back on 2022, maybe what are 1 or 2 targets you would have liked to have accomplished?

I think for me, I would say it's all about execution. It's all about driving the numbers for 2022. We do operate, and you've heard us talk about our stand and deliver kind of framework that Jim put in that Tom continues to champion within our company. And that's really about meeting our commitments as well as positioning our company for future growth and future opportunities. So at the end of the year, what I would look for is to make sure that we're meeting or exceeding all the expectations that we put out in the market. That's organic growth. That's executing on the acquisitions that we had driven. That's deploying the capital that we had in the outlook that we're going to deploy in the way we said we were going to deploy it in terms of capturing these build-to-suits, 6,500 of them around the globe, most of them with double-digit NOI yields. So I would say it's that, really, it's execution, first and foremost. We're also very focused on preparing our company for the future and progressing this edge computing scenario that we're working on and also looking around the globe to make sure that if there are tower acquisitions that we want to own, that we're competitive in that process, competitive and disciplined. So certainly looking around the globe. And if anything there comes up that we can participate in that really meets our financial framework, the terms and conditions we look for, if we think we can drive outsized growth and get a good return for our investors, we would -- we'll move on those opportunities. So we'll be looking for that as well. And then DE&I is certainly important to us. ESG is important to us. So we're doing a lot in Africa with power and lithium batteries and solar and wind power. And I think we're making a lot of progress there in terms of reducing our overall carbon footprint. In India and some places in Latin America and Africa, we're building out digital villages, which are really neat, little containerized, educational banking type infrastructure where people that live in the villages around our sites can go up and use the facilities. We are talking to other companies about partnering with us to invest in that and expand that even beyond what we've been doing in India and around the globe. So that's really important to us, in particular, really important to Tom. So we're really looking at that. I think that's something you'll probably hear more about.

We'll end it there. We're just about out of time. Rod, thank you so much. Appreciate it.

Yes. Thanks, Matt. Thank you.

Thanks, everyone.