AT&T has completed a structured sale-leaseback deal with private real estate firm Reign Capital, monetizing 74 properties nationwide for over $850 million in upfront cash proceeds. The transaction, part of AT&T’s broader transformation strategy, includes 13 million square feet of space originally constructed for legacy copper network equipment. This deal not only reduces operating expenses but also unlocks future revenue potential through a profit-sharing model tied to redevelopment opportunities.
The properties, previously underutilized due to advancements in fiber and wireless network equipment, will now be managed by Reign Capital, with AT&T leasing back only the space needed for its ongoing operations. AT&T retains operational control over critical network infrastructure while benefiting from lower power consumption, streamlined operations, and long-term financial participation in property redevelopments. This innovative model aligns with AT&T’s strategic goal of exiting most copper network operations by 2029 and sets a precedent for future real estate transactions.
• The transaction covers 74 properties with a combined 13 million square feet, generating $850 million in upfront cash.
• AT&T will lease back only essential space for network operations, reducing real estate and operating costs.
• The deal includes revenue-sharing provisions from future property redevelopments.
• Redevelopment plans must receive AT&T approval to ensure network operations remain unaffected.
• This follows a similar, smaller transaction with Reign Capital in 2021, involving 13 properties and $300 million in proceeds.
“This uniquely structured deal unlocks value in otherwise stranded commercial real estate space,” said Michael Ford, head of global real estate at AT&T. “It’s a creative solution providing both upfront and long-term value through a revenue-sharing model that fits with our broader company and transformation initiatives.”
