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OUTFRONT Media (OUT) Q2 FFO Tops Estimates, Revenues & Expenses Up
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OUTFRONT Media Inc. (OUT - Free Report) delivered second-quarter 2021 adjusted funds from operations (AFFO) per share of 27 cents, surpassing the Zacks Consensus Estimate of 14 cents. In the prior-year quarter, the company reported AFFO per share deficit of 14 cents.
Revenues of $341 million outpaced the Zacks Consensus Estimate of $327.8 million in the second quarter. Also, the revenue figure jumped 46.4% year over year.
The company’s second-quarter results reflect a rise in revenues, partially offset by higher operating expenses.
Quarter in Detail
Billboard revenues were $287.3 million, marking year-over-year growth of 52.4%. This upside resulted from higher average revenues per display (referred to as yield) as compared to the year-ago quarter.
Transit and other revenues of $53.7 million climbed 20.9% year over year. This rise mainly resulted from increase in yield compared to prior-year period.
OUTFRONT Media reported an operating income of $29.1 million in the second quarter against the operating loss of $25.9 million posted in the year-earlier quarter.
Operating expenses of $189.6 million flared up 23.1%, year over year. This chiefly resulted from guaranteed minimum annual payments to the New York Metropolitan Transportation Authority, higher transit franchise expenses, elevated posting, maintenance and other expenses, and a rise in billboard property lease expenses.
Balance Sheet
Net cash flow used for operating activities for the six-month period ended Jun 30, 2021, was $13.6 million as against the net cash flow of $50.7 million provided by operating activities in the prior-year period.
As of Jun 30, 2021, OUTFRONT Media’s liquidity position comprised unrestricted cash of $529 million and $497.9 million of availability under its $500-million revolving credit facility, net of $2.1 million of issued letters of credit. In the second quarter, the company sold no share under its at-the-market (ATM) equity program and had $232.5 million available under the ATM program at the quarter’s end.
Dividend Update
On Aug 5, OUTFRONT Media announced its common stock quarterly cash dividend of 10 cents per share. This dividend will be paid out on Sep 30, to its shareholders of record at the close of business on Sep 3, 2021.
Prologis, Inc. (PLD - Free Report) came up with second-quarter core FFO per share of $1.01, surpassing the Zacks Consensus Estimate of 99 cents. Results underlined all-time low vacancies in its markets that aided rent growth and valuation increases.
Boston Properties Inc.’s (BXP - Free Report) second-quarter 2021 FFO per share of $1.72 beat the Zacks Consensus Estimate of $1.61. The quarterly figure also exceeded the mid-point of the company’s second-quarter guidance by 12 cents, highlighting an improved portfolio performance, and better-than-projected parking, hotel, retail and termination income.
Highwoods Properties, Inc.’s (HIW - Free Report) quarterly FFO per share of 93 cents topped the Zacks Consensus Estimate by a cent. Rental and other revenues of $185.5 million outpaced the consensus mark of $184.9 million.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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OUTFRONT Media (OUT) Q2 FFO Tops Estimates, Revenues & Expenses Up
OUTFRONT Media Inc. (OUT - Free Report) delivered second-quarter 2021 adjusted funds from operations (AFFO) per share of 27 cents, surpassing the Zacks Consensus Estimate of 14 cents. In the prior-year quarter, the company reported AFFO per share deficit of 14 cents.
Revenues of $341 million outpaced the Zacks Consensus Estimate of $327.8 million in the second quarter. Also, the revenue figure jumped 46.4% year over year.
The company’s second-quarter results reflect a rise in revenues, partially offset by higher operating expenses.
Quarter in Detail
Billboard revenues were $287.3 million, marking year-over-year growth of 52.4%. This upside resulted from higher average revenues per display (referred to as yield) as compared to the year-ago quarter.
Transit and other revenues of $53.7 million climbed 20.9% year over year. This rise mainly resulted from increase in yield compared to prior-year period.
OUTFRONT Media reported an operating income of $29.1 million in the second quarter against the operating loss of $25.9 million posted in the year-earlier quarter.
Operating expenses of $189.6 million flared up 23.1%, year over year. This chiefly resulted from guaranteed minimum annual payments to the New York Metropolitan Transportation Authority, higher transit franchise expenses, elevated posting, maintenance and other expenses, and a rise in billboard property lease expenses.
Balance Sheet
Net cash flow used for operating activities for the six-month period ended Jun 30, 2021, was $13.6 million as against the net cash flow of $50.7 million provided by operating activities in the prior-year period.
As of Jun 30, 2021, OUTFRONT Media’s liquidity position comprised unrestricted cash of $529 million and $497.9 million of availability under its $500-million revolving credit facility, net of $2.1 million of issued letters of credit. In the second quarter, the company sold no share under its at-the-market (ATM) equity program and had $232.5 million available under the ATM program at the quarter’s end.
Dividend Update
On Aug 5, OUTFRONT Media announced its common stock quarterly cash dividend of 10 cents per share. This dividend will be paid out on Sep 30, to its shareholders of record at the close of business on Sep 3, 2021.
Currently, OUTFRONT Media carries a Zacks Rank #2 (Buy). 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
Prologis, Inc. (PLD - Free Report) came up with second-quarter core FFO per share of $1.01, surpassing the Zacks Consensus Estimate of 99 cents. Results underlined all-time low vacancies in its markets that aided rent growth and valuation increases.
Boston Properties Inc.’s (BXP - Free Report) second-quarter 2021 FFO per share of $1.72 beat the Zacks Consensus Estimate of $1.61. The quarterly figure also exceeded the mid-point of the company’s second-quarter guidance by 12 cents, highlighting an improved portfolio performance, and better-than-projected parking, hotel, retail and termination income.
Highwoods Properties, Inc.’s (HIW - Free Report) quarterly FFO per share of 93 cents topped the Zacks Consensus Estimate by a cent. Rental and other revenues of $185.5 million outpaced the consensus mark of $184.9 million.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.