We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shares of Lamar Advertising Company (LAMR - Free Report) dropped 2.73% during Friday’s regular trading session after this REIT provided lower-than-expected guidance for full-year 2023 adjusted funds from operations (AFFO) per share.
However, LAMR reported a 7.3% year-over-year increase in the fourth-quarter AFFO per share to $1.91. The figure also surpassed the Zacks Consensus Estimate of $1.69.
Per management, the company experienced strong local sales, which helped offset the declining demand from national customers. However, quarterly net revenues came in at $535.5 million, slightly missing the consensus mark of $536.4 million. Net revenues for the quarter increased 8.3% on a year-over-year basis.
According to the company’s chief executive, Sean Reilly, "For 2023, we anticipate solid revenue growth and moderating expense growth. With interest expense as a meaningful headwind, we anticipate full-year diluted AFFO per share of $7.40 to $7.55." This is below the Zacks Consensus Estimate of $7.82.
For the full-year 2022, the AFFO per share came in at $7.38, higher than the prior-year tally of $6.59. This was backed by 13.7% growth in net revenues to $2.03 billion.
Quarter in Detail
Acquisition-adjusted net revenues for the fourth quarter climbed 4.6% year over year. Also, acquisition-adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) climbed 6.3%.
The operating income of $110.1 million decreased from the year-earlier period’s $149.9 million, while the adjusted EBITDA increased 9.4% to $252.3 million. Moreover, free cash flow of $159.3 million increased 6.9% year over year during the December-end quarter.
During the fourth quarter, Lamar completed 19 acquisitions. The total purchase price was roughly $192 million.
Balance Sheet
At the end of the fourth quarter of 2022, Lamar Advertising had total liquidity of $746.6 million. This comprised $694.0 million available for borrowing under its revolving senior credit facility and $52.6 million in cash and cash equivalents.
Recent Events
On Feb 23, 2023, Lamar Advertising’s board of directors announced a quarterly cash dividend of $1.25 per share on its Class A common stock and Class B common stock, representing a 4.2% hike sequentially. The dividend will be paid out on Mar 31 to its shareholders on record as of Mar 17, 2023.
Moreover, LAMR’s board of directors authorized the company’s renewal to repurchase up to $250 million of the company’s Class A common stock through Sep 30, 2024. Also, the board of directors authorized the renewal of Lamar Media’s ability to repurchase up to $250 million of outstanding senior notes and other indebtedness outstanding through Sep 30, 2024.
Prologis, Inc. (PLD - Free Report) reported a fourth-quarter 2022 core FFO per share of $1.24, beating the Zacks Consensus Estimate of $1.21. The figure climbed 10.7% from the year-ago quarter. Prologis’ quarterly results reflected better-than-anticipated revenues, driven by healthy leasing activity and solid rent growth.
Public Storage (PSA - Free Report) reported a fourth-quarter 2022 core FFO per share of $4.16, increasing 17.5% year over year. The figure surpassed the Zacks Consensus Estimate of $3.99. Results reflected a better-than-anticipated top line, aided by an improvement in the realized annual rent per occupied square foot. PSA also benefited from its expansion efforts through acquisitions, developments and extensions.
Extra Space Storage Inc. (EXR - Free Report) reported a fourth-quarter 2022 core FFO per share of $2.09, beating the Zacks Consensus Estimate of $2.08. The figure was also 9.4% higher than the prior-year quarter’s $1.91. Extra Space Storage’s results reflected a better-than-anticipated top line. EXR experienced higher average rates for existing customers and a rise in other operating income, partly offset by lower occupancy.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Lamar (LAMR) Beats Q4 AFFO, Issues Soft '23 View, Stock Down
Shares of Lamar Advertising Company (LAMR - Free Report) dropped 2.73% during Friday’s regular trading session after this REIT provided lower-than-expected guidance for full-year 2023 adjusted funds from operations (AFFO) per share.
However, LAMR reported a 7.3% year-over-year increase in the fourth-quarter AFFO per share to $1.91. The figure also surpassed the Zacks Consensus Estimate of $1.69.
Per management, the company experienced strong local sales, which helped offset the declining demand from national customers. However, quarterly net revenues came in at $535.5 million, slightly missing the consensus mark of $536.4 million. Net revenues for the quarter increased 8.3% on a year-over-year basis.
According to the company’s chief executive, Sean Reilly, "For 2023, we anticipate solid revenue growth and moderating expense growth. With interest expense as a meaningful headwind, we anticipate full-year diluted AFFO per share of $7.40 to $7.55." This is below the Zacks Consensus Estimate of $7.82.
For the full-year 2022, the AFFO per share came in at $7.38, higher than the prior-year tally of $6.59. This was backed by 13.7% growth in net revenues to $2.03 billion.
Quarter in Detail
Acquisition-adjusted net revenues for the fourth quarter climbed 4.6% year over year. Also, acquisition-adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) climbed 6.3%.
The operating income of $110.1 million decreased from the year-earlier period’s $149.9 million, while the adjusted EBITDA increased 9.4% to $252.3 million. Moreover, free cash flow of $159.3 million increased 6.9% year over year during the December-end quarter.
During the fourth quarter, Lamar completed 19 acquisitions. The total purchase price was roughly $192 million.
Balance Sheet
At the end of the fourth quarter of 2022, Lamar Advertising had total liquidity of $746.6 million. This comprised $694.0 million available for borrowing under its revolving senior credit facility and $52.6 million in cash and cash equivalents.
Recent Events
On Feb 23, 2023, Lamar Advertising’s board of directors announced a quarterly cash dividend of $1.25 per share on its Class A common stock and Class B common stock, representing a 4.2% hike sequentially. The dividend will be paid out on Mar 31 to its shareholders on record as of Mar 17, 2023.
Moreover, LAMR’s board of directors authorized the company’s renewal to repurchase up to $250 million of the company’s Class A common stock through Sep 30, 2024. Also, the board of directors authorized the renewal of Lamar Media’s ability to repurchase up to $250 million of outstanding senior notes and other indebtedness outstanding through Sep 30, 2024.
Lamar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lamar Advertising Company Price, Consensus and EPS Surprise
Lamar Advertising Company price-consensus-eps-surprise-chart | Lamar Advertising Company Quote
Performance of Other REITs
Prologis, Inc. (PLD - Free Report) reported a fourth-quarter 2022 core FFO per share of $1.24, beating the Zacks Consensus Estimate of $1.21. The figure climbed 10.7% from the year-ago quarter. Prologis’ quarterly results reflected better-than-anticipated revenues, driven by healthy leasing activity and solid rent growth.
Public Storage (PSA - Free Report) reported a fourth-quarter 2022 core FFO per share of $4.16, increasing 17.5% year over year. The figure surpassed the Zacks Consensus Estimate of $3.99. Results reflected a better-than-anticipated top line, aided by an improvement in the realized annual rent per occupied square foot. PSA also benefited from its expansion efforts through acquisitions, developments and extensions.
Extra Space Storage Inc. (EXR - Free Report) reported a fourth-quarter 2022 core FFO per share of $2.09, beating the Zacks Consensus Estimate of $2.08. The figure was also 9.4% higher than the prior-year quarter’s $1.91. Extra Space Storage’s results reflected a better-than-anticipated top line. EXR experienced higher average rates for existing customers and a rise in other operating income, partly offset by lower occupancy.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.