AMT vs DLR: How American Tower Corporation and Digital Realty Trust Compare (2026)
Short answer
AMT (American Tower Corporation) and DLR (Digital Realty Trust) are often compared because they share investment themes, but they are different businesses. American Tower Corporation (NYSE: AMT), founded in 1995 and headquartered in Boston, is a real estate investment trust that owns, operates, and develops multitenant communications real estate. Digital Realty Trust (NYSE: DLR) is a real estate investment trust that owns, develops, and operates carrier-neutral data centers providing colocation, interconnection, and cloud connectivity solutions. Neither is universally better: pick by which thesis you are expressing and what you already own. This is descriptive, not a recommendation.
What does American Tower Corporation (AMT) do?
American Tower Corporation (NYSE: AMT), founded in 1995 and headquartered in Boston, is a real estate investment trust that owns, operates, and develops multitenant communications real estate. Its core business is leasing vertical space on wireless towers to mobile network operators, government agencies, and broadcasters under long-term contracts with annual escalators, generating 97% of 2025 revenue from property operations. Beyond towers, AMT owns CoreSite, a portfolio of 30 U.S. data centers offering colocation and interconnection services to enterprises, cloud providers, and network operators, which has become a fast-growing second revenue engine. The company manages nearly 150,000 communications sites across the Americas, Europe, Africa, and Asia-Pacific, providing global scale that smaller peers cannot easily replicate.
What does Digital Realty Trust (DLR) do?
Digital Realty Trust (NYSE: DLR) is a real estate investment trust that owns, develops, and operates carrier-neutral data centers providing colocation, interconnection, and cloud connectivity solutions. Its PlatformDigital network spans more than 300 data centers across more than 55 global markets and serves over half of Fortune 500 companies, including major cloud hyperscalers such as Microsoft Azure, Amazon Web Services, Google Cloud, and Oracle. Revenue is generated primarily through long-term leases for data center space and power, interconnection fees charged when tenants cross-connect inside facilities, and managed services, giving the business a largely recurring, contractual revenue base.
AMT vs DLR: how do they differ?
Both fit overlapping themes, but they are not interchangeable. American Tower Corporation is best understood through its own drivers, and Digital Realty Trust through its. The useful comparison is which set of drivers and risks you want exposure to.
- AMT drivers: 5G Densification and Mid-Band Upgrades; CoreSite and AI-Driven Data Center Demand.
- DLR drivers: AI Infrastructure Demand Surge; Interconnection and Enterprise Growth.
AMT vs DLR: how they make money and what they cost
AMT. AMT's trailing P/E of approximately 27x is well below its own 3-year average of roughly 45x and its 10-year average of roughly 56x, reflecting both earnings normalization after a period of large one-time items and a broader re-rating of rate-sensitive REITs in a higher-for-longer interest rate environment. For tower REITs, investors typically focus on AFFO per share rather than GAAP earnings, because the latter is heavily influenced by depreciation and one-time currency gains or losses. On that basis, FY 2025 delivered high-single-digit AFFO per share growth, and management's 2026 guidance projects continued quarterly revenue in the $2.67 billion to $2.77 billion range per quarter, suggesting mid-single-digit full-year growth if realized.
DLR. DLR's trailing P/E of roughly 47 to 53 times is elevated relative to the North American specialized REIT peer average of approximately 29 times, reflecting a growth premium tied to AI infrastructure demand. Because DLR is a REIT, investors and analysts typically weight Core FFO and Adjusted EBITDA over GAAP net income; on a Core FFO basis, the implied multiple is materially lower and more consistent with historical norms. The 2026 management guidance of $6.65 to $6.75 billion in revenue and $7.90 to $8.00 in Core FFO per share implies roughly 8 percent FFO-per-share growth, which the market appears to be pricing in at current levels.
Headline figures (approximate, 2026-06-27): AMT shows revenue (q1 2026) ~$2.74 billion, revenue (fy 2024, most recent full year) ~$10.13 billion, adjusted ebitda (q1 2026) ~$1.84 billion (margin ~67%); DLR shows revenue (full year 2025) ~$6.1 billion, adjusted ebitda (full year 2025) ~$3.34 billion, core ffo per share (full year 2025) ~$7.39 (up ~10% YoY). A cheaper-looking multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is actually compounding.
Which fits which kind of investor
Both share a theme, but they suit different temperaments. American Tower Corporation's case leans on 5g densification and mid-band upgrades, and Digital Realty Trust's on ai infrastructure demand surge. A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The most immediate risk is customer concentration: in 2025, four carriers (T-Mobile at 18%, AT&T at 17%, Verizon at 14%, and Telefonica at 10%) collectively represented roughly 59% of total revenue, so any material lease dispute, consolidation event, or technology shift (such as carriers building private networks or relying on low-earth-orbit satellites) could disproportionately hurt results. For DLR, dLR's GAAP P/E ratio of roughly 47 to 53 times (depending on the exact trailing period) sits well above the North American specialized REIT industry average of approximately 29 times, leaving limited margin for error if earnings growth disappoints.
AMT or DLR: which should you pick?
The bottom line: AMT vs DLR
AMT and DLR are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined AMT and DLR exposure against your real portfolio. It is not an investment adviser.
Build a basket around AMT with Walnut
Use American Tower Corporation as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
What is the difference between AMT and DLR?
+
American Tower Corporation (NYSE: AMT), founded in 1995 and headquartered in Boston, is a real estate investment trust that owns, operates, and develops multitenant communications real estate. Digital Realty Trust (NYSE: DLR) is a real estate investment trust that owns, develops, and operates carrier-neutral data centers providing colocation, interconnection, and cloud connectivity solutions. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is AMT or DLR the better stock?
+
Walnut is informational, not investment advice. Neither is universally better; AMT and DLR suit different views and risk levels. Compare what each does, how they make money, and the risks, then decide which fits your thesis and what you already own.
Should you own both AMT and DLR?
+
Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both before you add the second.
What are the risks of AMT vs DLR?
+
AMT: The most immediate risk is customer concentration: in 2025, four carriers (T-Mobile at 18%, AT&T at 17%, Verizon at 14%, and Telefonica at 10%) collectively represented roughly 59% of total revenue, so any material lease dispute, consolidation event, or technology shift (such as carriers building private networks or relying on low-earth-orbit satellites) could disproportionately hurt results. AMT carries $37.2 billion in consolidated debt, meaning its cost of capital is sensitive to interest rate levels, and the net leverage ratio of 4.9x leaves limited buffer if earnings disappoint. Foreign currency volatility is a persistent drag given the company's large international portfolio, and regulatory or political instability in emerging markets (as seen with certain Latin American customer events in 2025) can disrupt anticipated cash flows. Finally, the tower industry faces longer-term structural questions about whether continued 5G spending by carriers will generate the densification cycle that bulls expect, given that some analysts describe 5G as having thus far underwhelmed relative to early projections. DLR: DLR's GAAP P/E ratio of roughly 47 to 53 times (depending on the exact trailing period) sits well above the North American specialized REIT industry average of approximately 29 times, leaving limited margin for error if earnings growth disappoints. The Altman Z-Score has flagged the company in or near financial distress territory due to its substantial long-term debt load, and interest coverage declined meaningfully in recent quarters. There is also a structural oversupply risk: if DLR and its peers expand development faster than hyperscalers commit capacity, markets like Northern Virginia could see rent pressure that compresses same-store cash NOI growth. Tariffs and geopolitical uncertainty could modestly raise construction costs, and ongoing share issuances (including an active at-the-market equity offering of up to $3 billion) are a source of dilution for existing shareholders.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell AMT or DLR; figures are approximate and dated. Verify current data before investing.