NEW YORK - OUTFRONT Media Inc. (NYSE: OUT), a prominent player in the United States outdoor advertising sector, has declared a special dividend of $0.75 per share on its common stock, payable on December 31, 2024, to shareholders on record as of November 15, 2024. The dividend is part of the company's strategy to distribute its 2024 distributable real estate investment trust (REIT) income, exceeding the cash dividends paid earlier in the year.
The special dividend will be divided into two portions: approximately $0.30 per share in cash, totaling about $49.8 million, and around $0.45 per share in common stock, equating to nearly $74.7 million. Shareholders have the option to receive the dividend fully in cash or common stock, but the total cash distributed will not exceed the specified cash amount. In the event of cash requests surpassing the available amount, a pro-rata distribution will ensure the cash portion remains at $49.8 million, with the remainder paid in stock.
Election forms for the dividend preference will be sent post-record date, with a deadline for submission set for 5:00 p.m., Eastern Standard Time, on December 13, 2024. The final amount of common stock distributed will be determined by the volume-weighted average price over three trading days starting December 16, 2024. Equiniti Trust Company, LLC has been appointed as the election and disbursing agent for the dividend process.
To counteract the potential dilution from the stock portion of the dividend, OUTFRONT Media's Board of Directors has also approved a reverse stock split, anticipated to be completed in January 2025.
OUTFRONT Media specializes in connecting brands with consumers through a diverse array of billboard, transit, and mobile assets. The company's technology platform aims to revolutionize advertiser engagement with on-the-go audiences.
The announcement contains forward-looking statements, and the company cautions that these involve risks and uncertainties that could cause actual results to differ materially from those projected. Factors influencing these outcomes include economic conditions, competition, and government regulation, among others.
This news is based on a press release statement and aims to provide shareholders and potential investors with the latest financial developments from OUTFRONT Media.
In other recent news, Outfront Media (NYSE:OUT)'s earnings and revenue results have shown promising growth. The company reported a 4% revenue increase in its U.S. Media segment in the second quarter of 2024, primarily driven by a robust billboard and transit sector. Adjusted OIBDA for U.S. Media observed a near 10% increase, and digital revenues, now accounting for over a third of total revenues, also saw a significant rise.
In terms of analyst ratings, Wolfe Research recently downgraded Outfront Media from Outperform to Peer Perform. The firm noted that while there are still positive signs for the out-of-home (OOH) advertising industry, the previous growth expectations for the company have already been factored into its recent performance. The firm also expressed a more cautious outlook on the national recovery as a driving force for Outfront Media's growth.
On the other hand, TD Cowen has adjusted its price target for Outfront Media from $16.00 to $17.00, maintaining a Hold rating. The adjustment followed the company's recent quarterly financial results, where Outfront Media exceeded profitability expectations for the second quarter, despite falling slightly short on revenue.
Among other recent developments, Outfront Media plans to distribute a dividend of $0.30 per share in September, with a larger dividend expected later in the year for REIT compliance. The company's Board of Directors may also distribute a portion of the dividend from the sale of its Canadian business in stock, which could accelerate debt repayment. Furthermore, Outfront Media anticipates mid-single-digit revenue growth in the next quarter, focusing primarily on the domestic market.
InvestingPro Insights
OUTFRONT Media's recent announcement of a special dividend aligns with its attractive dividend profile. According to InvestingPro data, the company currently boasts a dividend yield of 6.65%, with the last ex-dividend date on September 6, 2024. This high yield is particularly noteworthy in the context of the company's financial performance.
InvestingPro Tips indicate that OUTFRONT Media has been profitable over the last twelve months, with a market capitalization of $3 billion. The company's revenue for the last twelve months as of Q2 2024 stood at $1.84 billion, with a gross profit margin of 47.58%. These figures suggest a solid financial foundation supporting the dividend payout.
Moreover, OUTFRONT Media's stock has shown strong performance, with a 72.01% price total return over the past year. This impressive return, coupled with the fact that the stock is trading near its 52-week high (at 93.38% of its peak), indicates investor confidence in the company's prospects.
For investors seeking more comprehensive insights, InvestingPro offers additional tips and metrics that could provide a deeper understanding of OUTFRONT Media's financial health and market position. The platform currently lists 12 additional tips for OUT, which could be valuable for those considering the stock in light of this special dividend announcement.
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