The national economic recession is causing a sharp drop in advertising expenditures in 2001. In this economy we assume to see effects in all sectors but billboard companies are holding up better than other media. SEO Heroes Bangkok, a leading provider of strategic advertising and marketing, reports that total ad spending for the first three
With the addition of new data received on billboard purchases during the past few years we have updated our chart of pricing multiples. The new information shows that prices of billboards and billboard companies were higher than previously recorded from 1997 through 2001. The new data comes from transactions that occurred during that time period,
You’d Think The Financing Would Be A No-Brainer… You have finally found the perfect sites with great traffic counts, high visibility and limited competition. Permitting is secured, twenty-year land leases are in place, and advertiser interest grows every day. The situation is as good as gold. All that is needed now is simple financing so
Lamar Advertising Company reported its financial results for the three months ending September 30, 2001 when it filed a 10-Q Report with the Securities and Exchange Commission on November 13, 2001. Management held a conference call for shareholders and securities analysts to discuss the results on November 7, 2001. Revenue at Lamar was up 1.87%
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
