LAMR Overview

Quarterly and Special Dividends: Lamar Advertising (LAMR) has declared a quarterly dividend of $1.55 per share and a special cash dividend of $0.25 per share, both payable on December 31 to shareholders of record as of December 22.

Earnings Performance: In its recent earnings report, Lamar Advertising reported a GAAP EPS of $1.40, which missed expectations by $0.16, while revenue of $585.5 million exceeded estimates by $1.5 million.

Future Projections: The company anticipates an AFFO per share of $8.10–$8.20 for 2025, with strong growth momentum expected in 2026, supported by $300 million in acquisitions.

Industry Presentation: Lamar Advertising recently presented at Wells Fargo's 9th Annual TMT Summit, highlighting its position as a high-quality billboard REIT with strong margins and growth potential.

Berkshire Hathaway's Investment: Berkshire Hathaway invested $141 million in Lamar Advertising, recognizing its strong market position and 4.7% dividend yield, which aligns with Warren Buffett's preference for companies with significant moats.

Market Dominance and Client Diversity: Lamar Advertising is the leading outdoor advertising company with over 360,000 displays, benefiting from a diverse client base that includes major brands, ensuring stability and resilience during economic downturns.

Regulatory Moat: The Highway Beautification Act of 1965 creates barriers for competitors, allowing Lamar to maintain its dominant position in the billboard market, as new entrants face strict regulations on billboard placement and approval.

Financial Stability and Growth Potential: Despite high debt levels, Lamar Advertising's business model as a REIT requires substantial dividend payouts, making it attractive for income-focused investors, while its historical revenue resilience suggests potential for growth even in challenging economic conditions.