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AT&T's $850M Sale-Leaseback Offers Blueprint for Companies Seeking Liquidity

More companies may use sale-leasebacks to avoid the uncertainty of interest rates.

By Erik Sherman | January 28, 2025 at 07:15 AM

AT&T’s $850 million plus sale-leaseback deal with Reighn Capital of 13 million square feet across 74 US underutilized central office properties offers some creative real estate approaches other companies might decide to try.

The portfolio represents only a small part of the company’s central office holdings. The deal will not negatively affect service or jobs and noted it is “leasing back space that’s needed for the network,” as the company’s statement said. This will help AT&T cut operating expenses, trim power consumption, and turn away from copper networks — a long-term shift the company has taken to improve margins and exit the legacy networks and line of business by 2029. The deal allows the company to earn money from the properties sold in the future.

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