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Results reflected a decline in billboard revenues in the quarter, which affected year-over-year top-line growth. However, a rise in transit revenues, and lower interest expenses and operating expenses supported the results to some extent.
Quarterly revenues came in at $390.7 million, missing the Zacks Consensus Estimate by 1.5%. The top line decreased 4.4% year over year.
Per Nick Brien, Interim CEO of OUTFRONT Media, "Although recent macroeconomic events have further increased the uncertainty in the market, we remain confident in the health and strength of our business in both the short and long term.”
OUT’s First Quarter in Detail
During the reported quarter, billboard revenues were $310.7 million, reflecting a year-over-year decline of 1%. The fall was due to the impact of lost billboards and lower proceeds from condemnations, partly offset by higher average revenue per display (yield), including the impact of programmatic platforms on digital billboard revenues. Our estimate was pegged at $305.8 million.
The company’s transit revenues of $77.7 million increased 2.6% from the year-ago quarter. The growth was primarily due to an increase in average revenue per display (yield), partially offset by the impact of new and lost transit franchise contracts in the period. Our estimate was pegged at $82.8 million.
OUTFRONT Media’s operating income totaled $13.9 million in the first quarter compared with an operating income of $14 million in the year-ago quarter.
Operating expenses were $221.3 million, which decreased 7.3% year over year. The fall was due to the impact of lower variable property lease expenses, the impact of the Outdoor Systems Americas ULC and its subsidiaries transaction, and lost billboards.
Net interest expenses of $36 million decreased 13% from $41.4 million in the prior-year period. The fall was mainly due to lower average debt balance and lower interest rates. The weighted average cost of debt, as of March 31, 2025, was 5.4% compared with 5.7% in the prior-year period.
OUT’s Cash Flow & Balance Sheet Position
Net cash flow provided by operating activities for the quarter ended March 31, 2025, was $33.6 million, which increased from $30.6 million in the prior-year period.
As of March 31, 2025, OUTFRONT Media’s liquidity position comprised unrestricted cash of $30.5 million and $494.8 million of availability under its $500 million revolving credit facility, net of $5.2 million of issued letters of credit and $100 million of additional availability under its accounts receivable securitization facility.
In the reported quarter, no shares of the company's common stock were sold under its at-the-market (ATM) equity program. It had $232.5 million available under the ATM program at the quarter’s end.
OUT’s Dividend Update
Concurrent with its first-quarter earnings release, OUTFRONT Media announced its common stock quarterly cash dividend of 30 cents per share. The dividend will be paid out on June 30 to its shareholders of record as of June 6, 2025.
Public Storage (PSA - Free Report) reported first-quarter 2025 core FFO per share of $4.12, which surpassed the Zacks Consensus Estimate of $4.06. Also, the figure increased 2.2% year over year from $4.03. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Results were backed by top-line growth, with the company experiencing higher realized annual rent per occupied square foot, though a fall in occupancy partly offset the positive. PSA also reaffirmed its 2025 guidance.
Vornado Realty Trust’s (VNO - Free Report) first-quarter 2025 FFO plus assumed conversions, on an adjusted basis, were 63 cents per share, which beat the Zacks Consensus Estimate of 52 cents. Moreover, the figure jumped 14.5% year over year.
The results displayed growth in total same-store net operating income year over year. Also, VNO witnessed decent leasing activity during the quarter.
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.
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OUTFRONT Media Q1 AFFO & Revenues Miss, Interest Expenses Dip
OUTFRONT Media Inc. (OUT - Free Report) reported first-quarter 2025 adjusted funds from operations (AFFO) per share of 14 cents, missing the Zacks Consensus Estimate of 15 cents. The reported figure remained unchanged from the prior-year quarter.
Results reflected a decline in billboard revenues in the quarter, which affected year-over-year top-line growth. However, a rise in transit revenues, and lower interest expenses and operating expenses supported the results to some extent.
Quarterly revenues came in at $390.7 million, missing the Zacks Consensus Estimate by 1.5%. The top line decreased 4.4% year over year.
Per Nick Brien, Interim CEO of OUTFRONT Media, "Although recent macroeconomic events have further increased the uncertainty in the market, we remain confident in the health and strength of our business in both the short and long term.”
OUT’s First Quarter in Detail
During the reported quarter, billboard revenues were $310.7 million, reflecting a year-over-year decline of 1%. The fall was due to the impact of lost billboards and lower proceeds from condemnations, partly offset by higher average revenue per display (yield), including the impact of programmatic platforms on digital billboard revenues. Our estimate was pegged at $305.8 million.
The company’s transit revenues of $77.7 million increased 2.6% from the year-ago quarter. The growth was primarily due to an increase in average revenue per display (yield), partially offset by the impact of new and lost transit franchise contracts in the period. Our estimate was pegged at $82.8 million.
OUTFRONT Media’s operating income totaled $13.9 million in the first quarter compared with an operating income of $14 million in the year-ago quarter.
Operating expenses were $221.3 million, which decreased 7.3% year over year. The fall was due to the impact of lower variable property lease expenses, the impact of the Outdoor Systems Americas ULC and its subsidiaries transaction, and lost billboards.
Net interest expenses of $36 million decreased 13% from $41.4 million in the prior-year period. The fall was mainly due to lower average debt balance and lower interest rates. The weighted average cost of debt, as of March 31, 2025, was 5.4% compared with 5.7% in the prior-year period.
OUT’s Cash Flow & Balance Sheet Position
Net cash flow provided by operating activities for the quarter ended March 31, 2025, was $33.6 million, which increased from $30.6 million in the prior-year period.
As of March 31, 2025, OUTFRONT Media’s liquidity position comprised unrestricted cash of $30.5 million and $494.8 million of availability under its $500 million revolving credit facility, net of $5.2 million of issued letters of credit and $100 million of additional availability under its accounts receivable securitization facility.
In the reported quarter, no shares of the company's common stock were sold under its at-the-market (ATM) equity program. It had $232.5 million available under the ATM program at the quarter’s end.
OUT’s Dividend Update
Concurrent with its first-quarter earnings release, OUTFRONT Media announced its common stock quarterly cash dividend of 30 cents per share. The dividend will be paid out on June 30 to its shareholders of record as of June 6, 2025.
OUT’s Zacks Rank
Currently, the company has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
OUTFRONT Media Inc. Price, Consensus and EPS Surprise
OUTFRONT Media Inc. price-consensus-eps-surprise-chart | OUTFRONT Media Inc. Quote
Performance of Other REITs
Public Storage (PSA - Free Report) reported first-quarter 2025 core FFO per share of $4.12, which surpassed the Zacks Consensus Estimate of $4.06. Also, the figure increased 2.2% year over year from $4.03. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Results were backed by top-line growth, with the company experiencing higher realized annual rent per occupied square foot, though a fall in occupancy partly offset the positive. PSA also reaffirmed its 2025 guidance.
Vornado Realty Trust’s (VNO - Free Report) first-quarter 2025 FFO plus assumed conversions, on an adjusted basis, were 63 cents per share, which beat the Zacks Consensus Estimate of 52 cents. Moreover, the figure jumped 14.5% year over year.
The results displayed growth in total same-store net operating income year over year. Also, VNO witnessed decent leasing activity during the quarter.
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.