OUTFRONT Media Inc. (NYSE:OUT), a real estate investment trust specializing in the real estate and construction sector, has announced a special dividend for its shareholders.
The special dividend, approved by the company's board of directors, amounts to $0.75 per share of its common stock. The dividend is scheduled to be paid on December 31, 2024, to stockholders of record as of the close of business on November 15, 2024.
The dividend payout will be partly in cash and partly in additional shares of common stock. Specifically, approximately $0.30 per share, translating to about $49.8 million, will be distributed in cash, while the remaining $0.45 per share, or $74.7 million, will be paid in shares of common stock.
Stockholders have the option to elect to receive their special dividend entirely in cash or stock. However, the total cash distributed will not exceed the cash portion of the dividend, with the remainder to be paid in common stock.
The election process for stockholders to choose their preferred form of dividend payment began on Monday, with Equiniti Trust Company, LLC, the company's election and disbursing agent, mailing the necessary forms to eligible shareholders.
The deadline for stockholders to make their election is 5:00 p.m., Eastern Standard Time, on December 13, 2024. The information regarding the special dividend, including the election forms, is detailed in Exhibit 99.1 of the company's recent 8-K filing.
OUTFRONT Media, formerly known as CBS Outdoor Americas Inc., is headquartered in New York and is incorporated in Maryland. The company operates in the advertising and marketing space, providing platforms for companies to advertise outdoors, such as billboards and transit displays.
The information in this article is based on a press release statement.
In other recent news, OUTFRONT Media has reported noteworthy developments in its recent financial performance. The company announced a 5% increase in U.S. media revenue and an 11% rise in adjusted OIBDA in the third quarter of 2024. Additionally, the company's digital billboards have shown significant growth, with revenues increasing by 10% and now accounting for over 32% of total revenues.
Despite facing challenges such as a non-material accounting error and recent storms, OUTFRONT Media is projecting a 3% U.S. media revenue growth for Q4.
The company is also implementing programmatic ad technology at the MTA to drive growth. OUTFRONT Media expects political ad spending for 2024 to reach around $15 million. Lastly, the company anticipates full-year consolidated AFFO to be between $295 million and $300 million.
These are the recent developments for OUTFRONT Media.
InvestingPro Insights
OUTFRONT Media's special dividend announcement aligns with its strong financial performance and shareholder-friendly policies. According to InvestingPro data, the company boasts a high dividend yield of 6.55% as of the latest available information. This generous yield is complemented by a robust total return of 65.47% over the past year, indicating significant value creation for shareholders.
InvestingPro Tips highlight that OUTFRONT Media has demonstrated a "high shareholder yield" and has seen a "large price uptick over the last six months." These insights are particularly relevant given the company's decision to distribute a special dividend, reinforcing its commitment to returning value to shareholders.
The company's market capitalization stands at $3.04 billion, reflecting its substantial presence in the outdoor advertising industry. With a price-to-earnings ratio of 13.07, OUTFRONT Media appears to be trading at a reasonable valuation relative to its earnings.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and metrics that could provide deeper insights into OUTFRONT Media's financial health and market position. The platform currently lists 13 additional tips for OUT, which could be valuable for those considering the stock in light of this special dividend announcement.
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