Is Lamar Advertising a Strong REIT Play for 2026 Investors?

Core Insights - Lamar Advertising Company (LAMR) has established itself as a consistent player in the out-of-home advertising sector, maintaining strong performance amidst a mixed advertising market [1] - The company is well-positioned for future growth, with a focus on local businesses and national brands [1] Financial Performance - The Zacks Consensus Estimate for funds from operations per share for 2025 and 2026 has increased to $8.19 and $8.83, indicating year-over-year growth of 2.50% and 7.81% respectively [2] - Over the past three months, LAMR shares have increased by 7.3%, contrasting with a 0.9% decline in the industry [2] Revenue Composition - Local and regional advertisers contributed approximately 78% of billboard revenues, marking 18 consecutive quarters of growth in this segment [5] - Digital billboards have become a significant revenue driver, growing by 5% and now accounting for about 31% of total billboard revenues [6] Operational Strength - Lamar operates over 5,400 digital billboard faces across 155 markets, with same-board digital revenues increasing by 3.4% [6] - The company has a conservative balance sheet, ending the third quarter with net debt at about 3x EBITDA and total liquidity near $834 million [7] Growth Strategy - Lamar is actively pursuing acquisitions to enhance its market presence, with plans to deploy close to $300 million on acquisitions in 2025 [8] - The company has an estimated investment capacity of over $1 billion while maintaining leverage targets [9] Dividend Policy - Lamar has consistently raised its dividend, with a five-year annualized growth rate of 13.94%, attracting income-focused investors [10] - A special dividend was declared in December 2025, further enhancing investor confidence [10] Overall Assessment - Lamar combines stable demand, increasing digital exposure, a strong balance sheet, and reliable income, making it a compelling option for investors seeking a resilient REIT [11]