NFLX - Billboard REITs: In Your Face But Under The Radar

• In your face, but still under the radar? Billboard REITs own a commanding share of the nation's 500,000 outdoor advertising displays - a surprisingly resilient business with strong inflation-hedging attributes.
• Unlike other increasingly-cluttered digital formats, there's "only one channel" on the highway. These REITs are well-positioned to capture the steadily rising share of marketing spending towards Out-of-Home ("OOH") advertising displays.
• Underscoring its attractiveness to advertisers that seek to break through the clutter, major technology firms - Amazon, Apple, and Google - are among the largest (and growing) spenders on OOH advertising.
• Traditional billboards - generally those located adjacent to highways - have fared far better than transit-oriented displays with a full recovery expected this year. Lamar's focus on this segment has been advantageous.
• We see value in the billboard REIT sector's supply constraints and see the conversion to digital displays as a catalyst to drive mid-single-digit same-store revenue growth and margin expansion throughout this decade.

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