AT&T Completes $850M Sale-Leaseback Across 74 Properties

AT&T has completed a structured sale-leaseback of 74 underutilized central office facilities with Reign Capital, generating over $850 million in upfront cash and allowing for future profit sharing from redevelopment opportunities. This transaction, which closed on January 8, encompasses more than 13 million square feet of space and is part of AT&T's broader legacy network transformation, aiming to exit most of its copper network operations by 2029. The new deal structure will enable AT&T to streamline its real estate footprint while retaining necessary operational control over relevant spaces. Michael Ford, AT&T's head of global real estate, stated that the deal unlocks value in stranded commercial real estate and aligns with the company's capital allocation priorities. The arrangement is also designed to ensure that network infrastructure remains undisturbed during redevelopment efforts. Overall, this initiative is expected to reduce operating costs and contribute to environmental sustainability through decreased power consumption.