American Tower (NYSE: AMT) saw its stock price plummet 5.12% in Tuesday's pre-market trading session, despite reporting better-than-expected third-quarter results. The sharp decline comes as investors appear to be focusing on the company's property revenue guidance, which fell short of analyst expectations.

The real estate investment trust, which specializes in wireless communications infrastructure, announced third-quarter revenue of $2.72 billion, surpassing the consensus estimate of $2.65 billion. Adjusted EBITDA also beat expectations, coming in at $1.816 billion compared to the forecast of $1.779 billion. Additionally, the company reported adjusted funds from operations (AFFO) of $2.78 per share, up from $2.52 a year earlier and above the $2.66 analyst estimate.

Despite these strong results, American Tower's stock took a significant hit. The sell-off appears to be driven by the company's full-year 2025 property revenue guidance, which was set at a range of $10.21 billion to $10.29 billion. This falls below the FactSet consensus estimate of $10.51 billion, potentially signaling concerns about future growth prospects in the wireless infrastructure market. While the company raised its overall AFFO guidance for the year to a range of $10.60 to $10.72 per share, up from the previous $10.46 to $10.65 per share, the property revenue outlook seems to have overshadowed this positive adjustment.

The market's negative reaction to American Tower's earnings report highlights the sensitivity of REIT stocks to forward-looking metrics and the importance of property-level performance for investors. As the wireless infrastructure landscape continues to evolve with the ongoing rollout of 5G technology and potential shifts in carrier spending, American Tower's ability to maintain strong property revenue growth will likely remain a key focus for analysts and shareholders in the coming quarters.