OUTFRONT Media (OUT, Financial) (OUT- $13.48- NYSE) is a Real Estate Investment Trust (REIT) that is one of the leading providers of advertising space on out-of-home structures in the form of billboards and transit displays. OUTFRONT entered 2020 with solid underlying momentum after posting a record 2019. This momentum came to an abrupt halt as the virus spread and “stay at home” orders began in some of the largest population centers in the country. This led advertisers on both a local and national level to pull back spending drastically. From a geographic standpoint, New York is OUTFRONT’s largest market and was a major source of growth as OUTFRONT upgrades the displays on the NYC transit system. It was not surprising to see management withdraw 2020 guidance as it is unknown how long this pandemic will last. Near-term, the business will be negatively impacted, but the longer-term prospects remain solid with attractive assets in the most desirable locations.
From Keeley Asset Management's Small Cap Dividend Value Fund first-quarter 2020 shareholder commentary.
