Most billboard companies fail to account for sign replacement expenses in their projections. This is not a big issues with static boards which last 40 years. It matters however, with digital signs because they have a useful life of 100,000 hours or 11.5 years. If you exclude replacement costs you […]
Billboard Loans Blog
Annual Lease Inflators Impact Billboard Values
The quickest way to destroy the value of a billboard is to agree to a bad lease with a high fixed minimum lease inflator. Inflation has averaged 2%/year for the past 10 years. Outdoor revenues have grown at approximately 1.8%/year for the past 10 years. If you agree to an […]
Which is better? A billboard loan or a billboard lease?
Is is better to finance your billboard or digital sign with a bank loan or with a financing lease? It depends on your objectives. A billboard loan is better if: You want long term financing (10 years or more). Billboard loans have terms of 10-15 years versus a 5-7 year […]
Outdoor Values March 2015
Public outdoor values have been increasing. The three US outdoor companies are valued at 4.4 times revenues and 14.2 times cashflow as the following table demonstrates. Enterprise Value/Revenue March 2015 Clear Channel Revenue Multiple 2.83 Lamar Revenue Multiple 5.84 Outfront Revenue Multiple 4.65 Average Revenue Multiple 4.44 […]
Outdoor revenue up 1% to $7 billion in 2014.
US Outdoor revenue rose 1% to $7 billion during 2014 according to the latest figures released by the OAAA. The following chart compares US outdoor revenues with us radio revenues and the US gross domestic product. The chart demonstrates that the US outdoor revenues have grown in line with the […]
Billboard Construction Costs
How much does it cost to construct a 14 by 48, two-sided, illuminated, 40 foot above ground billboard? My rule of thumb is $30,000 for wood structure, $60,000 for a steel monopole structure, and $350,000 for a digital billboard. The 2015 Billboard Structures Valuation Guides put out by the Departments […]
4 Tips For Dealing With Site Locators.
There are firms which obtain billboard permits and land leases and sell them for a fee. Most are legitimate but there are unscrupulous developers who will try to take advantage of you especially if you are new to the business. A billboard site seller has no skin in the game. […]
Outdoor Advertising Company Valuations January 2015
The rule of thumb is that an outdoor advertising company is worth 4-6 times gross revenue. My company has been involved in 18 sales of small, mostly rural billboard companies. The sales multiples varied from 3.2 times revenues to 13 times revenues. The median sales price was 4.9 times […]
How much does billboard financing cost?
What does it cost for finance your billboard company? Equity providers want to a return of 15-25% per annum with an ability to realize the return over a five year period. Lamar’s public dividend REIT is trading at a 6.33% dividend yield. Outfront Media’s REIT is trading at a 5.52% […]
Out of Home Magazine and Out of Home Weekly will cease publishing.
Received an email from Emerson Schwartzkopf saying that out of home magazine and out of home weekly will stop publishing. Emerson did a great job and his publications will be missed. Here’s the text for his email: “Out of Home Magazine and Out of Home Weekly will cease publishing new […]
