Investing.com — AT&T (NYSE:T) on Friday announced a sale-leaseback agreement with Reign Capital, a private developer.
The deal, which involves 74 of AT&T’s less utilized properties across the U.S., will generate $850 million in cash for the telecommunications company.
The Dallas-based firm revealed that the agreement with Reign Capital covers 13 million square feet of central-office facilities.
These facilities were initially used for large, cumbersome equipment for outdated copper networks. As AT&T plans to decommission the majority of its legacy copper networks by the end of 2029, these spaces have become redundant.
In addition to the immediate cash influx of $850 million, the deal includes provisions for future profit sharing from the redevelopment of these properties, according to AT&T.
The telecom giant will continue to make lease payments to Reign Capital and will retain operational control of any areas necessary for infrastructure access.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
