Lamar Advertising
Lamar Advertising is a REIT. It owns the poles bolted into the ground, not the advertising on them. A billboard paying back in 18 months generates 70 percent operating margins for decades. The highway is the neighborhood.
Lamar advertising owns the billboards, not the advertising, not the creative. The physical structures bolted into the ground beside highways. The company is a real estate investment trust that happens to display advertisements. The REIT structure means Lamar pays no corporate income tax as long as it distributes 90% of income to shareholders. Lamar operates over 363,000 billboard displays across the United States. Revenue exceeded 2 billion in 2023. A single billboard costs between 50,000 and 200,000 to build and generates 5,000 to 15,000 monthly in rental income. Payback period is 12 to 36 months. After payback, the structure generates nearly pure profit for decades.
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