Lamar Acquires Clear Channel Assets in 5 U.S. Markets

In a notable development, Lamar Advertising Co. LAMR has acquired the assets of Clear Channel Outdoor Holdings Inc. CCO, a San Antonio, TX-based outdoor advertising displays company, in 5 U.S. markets for $458.5 million in cash. Notably, Lamar, based in Baton Rouge, LA, is always on lookout for high-quality properties that are consistent with its real estate investment trust ("REIT) status for adding to its portfolio. The acquired assets are expected to boost Lamar's capabilities for providing digital advertising services to Cleveland, Seattle/Tacoma, Des Moines, Memphis and Reno.

Lamar is one of the largest owners and operators of outdoor advertising structures in the U.S. It provides advertising services to restaurants, retailers, automotive, real estate, health care, gaming, service, hotel & motel, telecommunication, and amusement industries including entertainment and sports. The latest acquisition will add over 5,500 bulletin and poster faces to Lamar's portfolio across these 5 markets.  Further, Lamar expects the acquisition to be accretive to its adjusted funds from operations ("FFO") per share in 2016.

Both Lamar and Clear Channel carry a Zacks Rank #3 (Hold).

Investors interested in the REIT industry may consider stocks like Arbor Realty Trust Inc. ABR and Crown Castle International Corp. CCI. Both the stocks sport a Zacks Rank #1 (Strong Buy).

Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income

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