AT&T strikes $850 million property deal with Reign Capital

AT&T (NYSE: T ) on Friday announced a sale-leaseback agreement with Reign Capital, a private developer.

The deal, which involves 74 of AT&T's less utilized properties across the U.S., will generate $850 million in cash for the telecommunications company.

The Dallas-based firm revealed that the agreement with Reign Capital covers 13 million square feet of central-office facilities.

These facilities were initially used for large, cumbersome equipment for outdated copper networks. As AT&T plans to decommission the majority of its legacy copper networks by the end of 2029, these spaces have become redundant.

In addition to the immediate cash influx of $850 million, the deal includes provisions for future profit sharing from the redevelopment of these properties, according to AT&T.

The telecom giant will continue to make lease payments to Reign Capital and will retain operational control of any areas necessary for infrastructure access.