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T&T has completed a structured sale-leaseback transaction with Reign Capital, involving 74 properties across the country totaling over 13 million square feet. The deal generates more than $850 million in upfront cash proceeds for AT&T and includes future revenue sharing from redevelopment opportunities. This transaction follows a similar one in 2021 that involved 13 properties and 3 million square feet, generating over $300 million in cash.

    The sale-leaseback arrangement aligns with AT&T's network modernization as it transitions from copper to fiber networks, reducing space requirements. The company will lease back only the necessary space for network operations, maintaining operational control of critical infrastructure while reducing its real estate footprint.

    This deal is part of AT&T's plan to exit the majority of its legacy copper network operations by 2029. By monetizing underutilized central office facilities and streamlining its real estate footprint, AT&T aims to unlock value in its properties and reduce operating costs.

    The transaction includes provisions for financial participation in redevelopment revenues, ensuring long-term benefits from future property value increases. AT&T retains final redevelopment plan approvals to ensure network infrastructure and operations remain undisturbed.

    This deal serves as a template for potential future transactions for some locations in AT&T's footprint and is just one way the company intends to realize cost savings from legacy transformation.