Lamar Advertising Company (LAMR) Citi’s 30th Annual Global Property CEO Conference summary

Business model and market positioning

• Outdoor advertising benefits from severe supply constraints, with no net new billboards being built, supporting high market share in local markets, often exceeding 80%.

• Focus on middle and small markets, with 80% of revenue from local customers and a highly diversified tenant base; no single tenant accounts for more than 1.5% of billings.

• Transit contracts are concentrated in small and mid-sized markets, with a preference for large-format billboards and minimal exposure to low-margin transit business.

• Product mix is curated for large formats and prime locations, distinguishing the portfolio from competitors.

Financial performance and guidance

• 2024 AFFO guidance was raised twice, ending at $7.99, driven by strong Q4 political spending and a leap year/Super Bowl boost in Las Vegas.

• Q1 2025 is expected to be below the 3% top-line growth guide due to tough comps, but overall pacing for the year is tracking toward the top end of the AFFO range.

• About 61% of the annual goal is already contracted, providing good visibility for the year.

• Operating leverage is strong, with incremental revenue above guidance flowing through at about 65% margin.

• Digital conversions and tuck-in acquisitions are expected to enhance margins, with digital billboards providing 65%-70% incremental margin.

Revenue drivers and client mix

• Local services, especially attorneys, are the largest vertical, followed by healthcare, fast food restaurants, retail, and auto dealers.

• National business has stabilized after being a headwind, with local and digital segments expected to drive growth in 2025.

• Programmatic revenue is growing 15%-20% but remains a small portion of the total.