AT&T Secures $850M From Sale-Leaseback Deal With Reign Capital

AT&T has completed a sale-leaseback transaction with Reign Capital, generating over $850 million in upfront cash by offloading 74 underutilized central office properties, covering 13 million square feet. This strategic move aligns with AT&T's plan to exit most legacy copper network operations by 2029, as the company shifts focus towards fiber optics and wireless technology. The deal not only provides immediate cash flow but also includes future profit-sharing opportunities from redevelopment, allowing AT&T to maintain operational control over necessary spaces. This transaction reflects a broader trend in the telecom industry to modernize infrastructure and optimize capital allocation while minimizing disruption to services and employment. Industry experts view this as a savvy financial strategy that could positively impact investor sentiment and signal a commitment to long-term growth. AT&T had previously executed a similar deal in 2021, indicating a continued focus on leveraging real estate assets effectively.