AT&T announced on Friday that it has raised $850 million through a sale-leaseback arrangement involving its underutilized central office facilities that support its legacy copper networks, with the transaction being facilitated by real estate development firm Reign Capital.
The telecommunications giant intends to phase out most of its copper network operations by 2029, as customers increasingly adopt advanced technologies like fiber optics and wireless networks, which provide enhanced speed and reliability while occupying less physical space.
In a sale-leaseback arrangement, a company sells part of its assets to generate capital and subsequently leases the same property to continue its operations. AT&T will retain only the necessary space for its network functions.
Michael Ford, head of global real estate at AT&T, remarked, "The uniquely structured deal unlocks value in otherwise stranded commercial real estate space." The transaction, finalized in early January, involves the transfer of 74 properties nationwide, impacting only a minor segment of AT&T's central office portfolio and not affecting jobs or service changes, according to the company.