OUTFRONT Media's Q2 AFFO Beats Estimates, Revenues Miss

OUTFRONT Media Inc. OUT reported second-quarter 2025 adjusted funds from operations (AFFO) per share of 51 cents, surpassing the Zacks Consensus Estimate of 46 cents. This compares to the FFO of 50 cents a year ago.

Results reflected a decline in billboard revenues in the quarter, which affected year-over-year top-line growth. However, a rise in transit revenues, and lower interest expenses and operating expenses supported the results to some extent.

Quarterly revenues came in at $460.2 million, missing the Zacks Consensus Estimate marginally. Moreover, the top line decreased 3.6% year over year.

OUT’s Second Quarter in Detail

During the reported quarter, billboard revenues were $351.3 million, reflecting a year-over-year decline of 2.5%. The fall was due to the impact of lost billboards in the period, partially offset by higher proceeds from condemnations and an increase in average revenue per display (yield), including the impact of programmatic platforms on digital billboard revenues. Our estimate was pegged at $358.9 million.

The company’s transit revenues of $106.3 million rose 5.6% from the year-ago quarter. The growth was primarily due to an increase in average revenue per display (yield), partially offset by the impact of new and lost transit franchise contracts in the period. Our estimate was pegged at $97.9 million.

OUTFRONT Media’s operating income totaled $56.2 million in the second quarter compared with an operating income of $229.1 million in the year-ago quarter.

Operating expenses were $231.5 million, which decreased 3.5% year over year. The drop was due to the impact of lower variable property lease expenses, the impact of the Outdoor Systems Americas ULC and its subsidiaries’ transaction and lost billboards, partially offset by higher guaranteed minimum annual payments to the New York Metropolitan Transportation Authority due to inflation.

Net interest expenses of $36.5 million decreased 11.2% from $41.4 million in the prior-year period. The fall was mainly due to lower average debt balance and lower interest rates. The weighted average cost of debt, as of June 30, 2025, was 5.4% compared with 5.6% in the prior-year period.

The adjusted OIBDA margin for the quarter came in at 27%, improving 60 basis points year over year.

OUT’s Cash Flow & Balance Sheet Position

As of June 30, 2025, OUTFRONT Media’s liquidity position comprised unrestricted cash of $28.5 million and $494.7 million of availability under its $500 million revolving credit facility, net of $5.3 million of issued letters of credit and $80 million of additional availability under its accounts receivable securitization facility.

Total debt outstanding at the end of the second quarter was $2.6 billion.

In the reported quarter, no shares of the company's common stock were sold under its at-the-market (ATM) equity program. It had $232.5 million available under the ATM program at the quarter’s end.

OUT’s Dividend Update

Concurrent with its second-quarter earnings release, OUTFRONT Media announced its common stock quarterly cash dividend of 30 cents per share. The dividend will be paid out on Sept. 30 to its shareholders of record as of Sept. 5, 2025.

OUT’s Zacks Rank

Currently, OUTFRONT Media has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

OUTFRONT Media Inc. Price, Consensus and EPS Surprise

OUTFRONT Media Inc. price-consensus-eps-surprise-chart | OUTFRONT Media Inc. Quote

Performance of Other REITs

Public Storage PSA reported second-quarter 2025 core FFO per share of $4.28, which surpassed the Zacks Consensus Estimate of $4.23. Also, the figure increased by 1.2% year over year.

Results were backed by top-line growth, with the company experiencing higher realized annual rent per occupied square foot, though a fall in occupancy partly offset the upside. PSA also raised its outlook, backed by stabilizing operations and accelerated acquisition volume.

Vornado Realty Trust’s VNO second-quarter 2025 FFO plus assumed conversions, on an adjusted basis, were 56 cents per share, which beat the Zacks Consensus Estimate of 53 cents. However, the figure declined 1.8% year over year.

The results displayed growth in total same-store net operating income year over year. Also, VNO witnessed decent leasing activity during the quarter.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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