Headquartered in Baton Rouge, LA, Lamar Advertising Company is one of the largest owners and operators of outdoor advertising structures in the United States. This real estate investment trust (REIT) delivers advertising solutions to a diverse range of industries, including restaurants, retail, automotive, real estate, healthcare and gaming. With a selection of advertising formats such as billboards, interstate logos, transit placements and airport displays, the company empowers both local enterprises and national brands to connect with extensive audiences on a daily basis.
Lamar has operations across the United States and Canada, with around 361,000 displays. It operates three types of outdoor advertising displays, namely billboards (89.3% of second-quarter 2023 net revenues), transit advertising displays (6.8%) and logo signs (3.9%). It derives revenues from contracts for advertising space in these categories.
Billboard advertising: Billboard advertising comprises bulletins and posters and accounts for most of the company's advertising space. In addition to traditional static displays, Lamar rents digital billboards.
Logo sign advertising: Lamar installs logo signs that generally advertise nearby food, gas, camping, lodging and other attractions, as well as directional signs to direct vehicle traffic to nearby services and tourist attractions near highway exits.
Transit advertising: The company generally enters into transit contracts with the local municipalities and airport authorities, allowing it the exclusive right to rent advertising displays to customers at airports and on buses, benches or shelters.
On the acquisition front, Lamar Advertising closed 16 transactions for a total of $42 million as of Jun 30, 2023. In 2022, the company completed 73 acquisitions of outdoor advertising assets for $479.8 million.
Note: All EPS numbers presented in this report represent FFO per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.