Baton Rouge-based Lamar Advertising Co. saw its adjusted funds from operations rise to $442.1 million in 2015, up 13.8% over AFFO of $388.5 million in 2014, according to a quarterly and yearend report released today.
“We ended 2015 with momentum, with fourth-quarter revenue growth of 5.7%,” says Lamar CEO Sean Reilly in the report. “We also grew Diluted AFFO per share 12.5% for the 2015 fiscal year. As we begin 2016, we are encouraged by our revenue pacings to date and the integration of five new markets we recently acquired.”
Lamar’s diluted AFFO increased to $4.59 per share last year, compared to $4.08 per share in 2014. AFFO is a measure that indicates a real estate investment trust’s financial ability to pay dividends to shareholders. Lamar converted to a REIT last year, allowing the billboard giant to return cash to shareholders, avoid some federal income taxes and boost the value of its stock. Lamar is required to distribute annually to its stockholders an amount equal to at least 90% of its REIT taxable income.
The fourth-quarter growth helped push Lamar to a 5.2% revenue increase in 2015 to $1.35 billion, up from $1.29 billion in 2014. Net income for the company last year totaled $262.6 million, compared to net income of $253.5 million in 2014.
Last month, Lamar closed on a $458.5 million deal to buy more than 5,500 outdoor signs and digital displays in five major U.S. markets from Clear Channel Outdoor Holdings Inc. The deal involves signage, including 132 digital billboards, in Cleveland; Des Moines, Iowa; Memphis; Reno, Nevada; and Seattle.
Founded in 1902, Lamar is one of the largest outdoor advertising companies in North America with now more than 323,000 outdoor billboards and signs in the United States, Canada and Puerto Rico, including 2,300 digital billboards.
