OUTFRONT Media (OUT, Financial) (OUT - $16.95 – 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 continues to report improving performance as billboard and transit advertising rebound from COVID constraints and its business shifts from static to digital displays. The quarter was quite impressive with sales growth of 44%. Despite the strong quarter, OUTFRONT was one of our worst performers, declining almost 40%. The reason for this decline is a fear of a potential collapse in advertising spending and negative impacts from a potential recession that intensified after Snap Inc.’s (SNAP) surprise disclosure that revenue and profit will be lower than expected.
From the Keeley Small Cap Dividend Value Fund second-quarter 2022 commentary.
