Billboard REITs: In Your Face, But Under-The-Radar
Advertising billboards have become a symbol of American consumerism and an inescapable fixture of the typical American commute. REITs own a commanding share of the nation's 300,000 outdoor advertising displays.
The lack of a commute for many Americans throughout the pandemic slammed these REITs last year as far fewer eyeballs were looking at Out-of-Home ("OOH") advertising displays.
The mass transit segment of the OOH market has been hit particularly hard amid a plunge in ridership. Outfront's massive deal with the New York MTA has been especially unfortunate.
Traditional billboards - generally those located adjacent to highways - have fared far better with a full recovery expected this year. Lamar's focus on this segment has been advantageous.
Unlike other media, there's "only one channel" on the highway. We like sectors with clear supply constraints, and these REITs are well-positioned to capture the steadily rising ad spending towards OOH.
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