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T&T Inc. (NYSE: T) has completed a structured sale-leaseback of underutilized central office facilities with private real estate development firm Reign Capital as part of its legacy network transformation. The transaction unlocks value in company-owned properties originally constructed for outdated copper networks, reducing operating expenses and providing revenue sharing opportunities.

    The deal generates over $850 million in upfront cash proceeds through the transfer of 74 properties across the country, encompassing more than 13 million square feet of space. This unique structure preserves necessary infrastructure requirements to keep the network running smoothly while enabling future profit sharing from redevelopment opportunities.

    "The deal unlocks value in otherwise stranded commercial real estate space," said Michael Ford, head of global real estate at AT&T. "It's a creative solution providing both upfront and long-term value through a revenue sharing model that fits with our broader company and transformation initiatives."

    As customers transition from copper to fiber and wireless networks, central offices are no longer needed for large equipment, freeing up valuable space for other uses. This technology evolution reduces power consumption, lowers operating costs, and aligns with AT&T's strategic capital allocation priorities.

    By leasing back only the necessary space, AT&T streamlines its real estate footprint while maintaining exclusive operational control of required areas. The transaction impacts a small portion of AT&T's portfolio and has no impact on jobs or services offered to customers.