OUTFRONT CFO Matt Siegel talked about digital billboards the MTA and the company’s dividend at yesterday’s Oppenheimer Technology, Internet & Communications conference.  Some highlights.

Digital conversion is compelling.

Converting static to digital is really the best returning activity we do.  We know the location, we know the landlord, we’re adding additional inventory…and in most cases it looks better than static.  You are adding flips.  You can reduce the price per flip so the customer is happy.  We’re happy – we get 7-8 more of the same thing.  The reason we don’t do an infinite amount…is you want to make sure you don’t overwhelm the demand side of the business.  Remember that the competition is probably trying to do the same thing and add inventory in the same location…

Acquisitions

We’ve picked up our tuck-in acquisition pace which was very slow…Mid first quarter we closed a bunch of smaller tuck-ins…and we have a pretty good pipeline for the rest of the year.  We’re also seeing a some of the regional boutiques looking to monetize their portfolio – in the $20-50 million range and which are right in our neighborhoods.  I expect to have some announcements later in the year…

On the dividend

We want to become a dividend-grower rather than a high-yielding-dividend-payer.  Pre-pandemic one of the comments from investors was “you’re not growing as fast as your competition…your business is growing but your dividend is stuck…

Insider’s take:  OUTFRONT’s back on the acquisition track.  In the second quarter of 2021 OUTFRONT closed more acquisitions than Lamar.  That hasn’t happened for a couple years.  A good time to be an out of home seller.

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