AT&T Secures $850 Million Through Sale-Leaseback

(Reuters) – AT&T announced on Friday that it has secured $850 million through the sale-leaseback of its underused central office facilities, which house legacy copper networks, to real estate development firm Reign Capital.

The U.S. telecom giant plans to exit a majority of its copper network operations by 2029, as customers transition to newer technologies like fiber optics and wireless networks that offer superior speed, reliability, and require less space.

Sale-leaseback is a financing strategy where a company sells part of its assets to raise capital, then leases back the same property to continue its operations.

AT&T will lease back only the necessary space for its network operations.

> “The uniquely structured deal unlocks value in otherwise stranded commercial real estate space,” said Michael Ford, head of global real estate at AT&T.

The transaction closed in early January and includes the transfer of 74 properties across the U.S. It affects only a small portion of AT&T’s central office portfolio and does not impact jobs or service changes, according to the company.

Shares of the Dallas, Texas-based company rose 0.7% in early trading.