AT&T secures $850 million from sale-leaseback of actual property to Reign Capital

(Reuters) -AT&T stated on Friday it has secured $850 million by means of the sale-leaseback of its underused central workplace services that home its legacy copper networks to actual property growth agency Reign Capital.

The U.S. telecom main is planning to exit a majority of its copper community operations by 2029 as prospects shift to newer applied sciences comparable to fiber optics and wi-fi networks, which supply superior pace and reliability and require a smaller house to function.

Sale-leaseback is a financing possibility during which an organization sells a part of its belongings to lift capital and leases again the identical property to run its operations.

AT&T (NYSE:T) will lease again solely the house required for its community operations.

“The uniquely structured deal unlocks worth in in any other case stranded business actual property house,” stated Michael Ford (NYSE:F), head of world actual property at AT&T.

The transaction, which closed in early January, consists of asset switch of 74 properties throughout the nation, affecting solely a small portion of AT&T’s portfolio of central workplaces and has no impression on jobs or adjustments within the providers, the corporate stated.

The Dallas, Texas-based firm’s shares rose 0.7% in early buying and selling.