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Outfront & Metro Transit Authority Renew Relationship

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Outfront Media Inc.OUT has announced the extension of its advertising relationship with the Los Angeles County Metropolitan Transportation Authority ("LACMTA"), the public transportation operating agency for Los Angeles County. In fact, the board of directors of LACMTA has authorized Outfront, the New York-based real estate investment trust ("REIT") to display advertisements on metro buses and metro rail stations and cars, operated by LACMTA.

This authorization has extended the relationship between LACMTA and Outfront till Dec 31, 2017. This move is expected to generate plenty of opportunities as well as fresh ideas for local businesses and the riding passengers.

Outfront is a lessor of advertising space on out-of-home advertising structures and sites across the United States, Canada and Latin America. The company's portfolio mainly consists of billboard displays. Through this latest action, Outfront will be able to expand its existing Metro Rail 2-sheet ad panel business so as to include the Expo, Gold, Blue and Green Lines. This program is anticipated to boost the rail system revenues generated from advertising by $150,000 per year.

Notably, Outfront reported fourth-quarter 2015 net loss per share of 54 cents, as against net income of 23 cents per share recorded in the prior-year quarter. Earnings, excluding the effect of loss on real estate assets held for sale, were recorded at 21 cents per share during fourth-quarter 2015, down from 25 cents earned in the prior-year quarter. The Zacks Consensus Estimate for fourth-quarter earnings was pegged at 53 cents per share.

Outfront currently carries a Zacks Rank #2 (Buy).

Investors interested in the REIT industry may consider stocks like DCT Industrial Trust Inc. DCT , CoreSite Realty Corporation COR and Digital Realty Trust Inc. DLR . Each of these stocks holds the same Zacks Rank as Outfront.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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