Back to top

Image: Bigstock

OUTFRONT Media (OUT) Q4 FFO Beats Estimates, Revenues Rise Y/Y

Read MoreHide Full Article

OUTFRONT Media Inc. (OUT - Free Report) delivered fourth-quarter 2021 adjusted funds from operations (AFFO) per share of 65 cents, surpassing the Zacks Consensus Estimate of 55 cents. In the prior-year quarter, the company reported an AFFO per share of 35 cents.

Quarterly revenues of $464.5 million outpaced the Zacks Consensus Estimate of $444.7 million. The revenue figure jumped 38.3% year over year.

The company’s fourth-quarter results reflect a rise in revenues, partially offset by higher operating expenses.

In 2021, AFFO per share was $1.40, surpassing the Zacks Consensus Estimate of $1.19. The figure represents a significant rise from 67 cents per share recorded in 2020. Full-year revenues were $1.46 billion, up 18.4% year over year. The reported figure surpassed the Zacks Consensus Estimate of $1.44 billion.

Quarter in Detail

Billboard revenues were $3354 million, marking year-over-year growth of 26.7%. The upside resulted from higher average revenues per display (referred to as yield) as compared to the year-ago quarter.

Transit and other revenues of $110.5 million surged 95.6% year over year. The upswing mainly resulted from the increase in yield compared with the prior-year period.

OUTFRONT Media reported an operating income of $105.2 million in the fourth quarter compared with $39.5 million posted in the year-earlier quarter.

Operating expenses of $217 million were up 23.2% year over year. The rise was primarily due to higher transit franchise expenses and variable costs associated with higher billboard revenues.

Balance Sheet

Net cash flow provided by operating activities for the year ended Dec 31, 2021, was $98.8 million, down 24.3% year over year. This was due to an increase in accounts receivables and prepaid MTA equipment deployment costs, partly offset by an increase in accrued expenses and a fall in prepaid expenses.

As of Dec 31, 2021, OUTFRONT Media’s liquidity position comprised unrestricted cash of $424.8 million and $495.9 million of availability under its $500-million revolving credit facility, net of $4.1 million of issued letters of credit. In the quarter under review, the company sold no shares under its at-the-market (ATM) equity program and had $232.5 million available under the ATM program at the quarter’s end.

Dividend Update

Concurrently, OUTFRONT Media announced its common stock quarterly cash dividend of 30 cents per share. The dividend will be paid out on Mar 31 to its shareholders of record at closing on Mar 4.

OUTFRONT Media Inc. Price, Consensus and EPS Surprise

 

OUTFRONT Media Inc. Price, Consensus and EPS Surprise

OUTFRONT Media Inc. price-consensus-eps-surprise-chart | OUTFRONT Media Inc. Quote

Currently, OUTFRONT Media sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of Other REITs

Boston Properties Inc.’s (BXP - Free Report) fourth-quarter 2021 funds from operations per share of $1.55 surpassed the Zacks Consensus Estimate of $1.52. The figure compared favorably with the year-ago quarter’s $1.37.

BXP’s quarterly figure exceeded the mid-point of its fourth-quarter guidance by 5 cents, reflecting an improved portfolio performance. Boston Properties also experienced strong leasing activity in the quarter.

Highwoods Properties, Inc.’s (HIW - Free Report) fourth-quarter 2021 funds from operations per share of $1.06 surpassed the Zacks Consensus Estimate of 97 cents. Rental and other revenues of $203.2 million outpaced the Zacks Consensus Estimate of $192.7 million.

Decent leasing activity and improvement in same-property cash net operating income growth aided Highwoods Properties. While FFO per share increased 21.8% from 87 cents year over year, rental and other revenues climbed 12.9%.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Highwoods Properties, Inc. (HIW) - free report >>

Boston Properties, Inc. (BXP) - free report >>

OUTFRONT Media Inc. (OUT) - free report >>

Published in