In a conference call on October 15, 2001 with institutional investors, Obie Media reported on operations for the third quarter of 2001. Obie is an outdoor advertising company primarily operating billboards and transit advertising displays. Some of the comments in the conference call were directed specifically at the billboard side of the business. The company
The Nevada Supreme Court recently addressed several fundamental billboard appraisal issues in the case known as National Advertising Co. v. State Department of Transportation, 116 Nev. Adv. Op. No. 10, issued on February 2, 2000. This case arose when the Nevada Department of Transportation (NDOT) removed billboards for a highway construction project south of Reno.
Market prices for billboards and billboard companies are still in a declining trend. The highest multiples of a billboard’s Effective Gross Income* (or Net Revenue) were paid in 1998 and 1999. This pricing measure reached an average of 6.2X EGI according to our calculations for 1998, and declined to 5.6X in 1999 and 5.5X in
When appraisers use income methods and certain sales comparison methods, it is important that they examine both the actual income level of the subject property and the market level of income for the same types of property. This is a particularly critical issue for billboards because actual income may differ significantly from the market. Also,
The State of California has passed legislation to limit the cutting of trees and shrubs that block the view of billboards on state land. The law authored by Senator Don Perata, D-Alameda, is intended to prevent unauthorized trimming and removal of foliage by billboard companies. The office of Governor Gray Davis reports that the problem
Lamar Advertising is the largest pure play outdoor advertising company in North America with billboards in three quarters of the top 250 markets in the United States. The company reported in a conference call with investors on August 9, 2001 that advertisers are not spending as aggressively on outdoor advertising as they did in 2000.
Four Billboards in Norfolk, VA Condemned In Snyder Plaza Properties, Inc. v. Adams Outdoor Advertising, Inc., No. 991306 (April 21, 2000), the Supreme Court of Virginia upheld a commissioner’s “variation of the income approach” to estimate the value of four billboard leasehold interests. The billboards located in the downtown financial district of Norfolk were condemned
Supreme Court Ruling On June 28, 2001, the Supreme Court ruled that states could not ban tobacco advertising on billboards near playgrounds and schools because such a ban would violate federal law and free speech rights. The court found that in the course of limiting children’s exposure to tobacco ads, the state would prevent adults
First Union Securities’ Nantucket Conference On June 28, 2001 Mr. Sean Reilly, Vice President of Mergers and Acquisitions with Lamar Outdoor Advertising, spoke to the First Union Securities’ Nantucket Conference about his company’s market share and recent acquisition activity. Mr. Reilly reported that Lamar’s national market share of traditional billboards is approximately 25%, Clear Channel
