Outfront Media eyes dividend growth, boasts $450 million of liquidity

By Lisa Kerner

Charlotte, N.C., June 10 – Outfront Media Inc. chief financial officer Donald Shassian outlined three of the company’s financial goals during a presentation at the NAREIT REIT Week Investor Forum in New York City on Wednesday.

Shassian, who also serves as executive vice president, said Outfront wants to maximize its AFFO per share and grow dividends annually. In addition, the company wants to maintain a strong balance sheet, with leverage between 3½% and 4%, and maximize its operational and financial flexibility.

Outfront has $2.3 billion of debt consisting of an $800 million term loan and $1.5 billion of senior notes ranging from 5¼% to 5 7/8%.

The company’s weighted average cost of debt is about 4.7%, and it has $450 million of liquidity.

Shassian said Outfront’s leverage on net debt to OBIDA is higher than the company would like, at 4.9%, due to a large acquisition last year. The company hopes to drive that down to its targeted leverage range by the end of 2016.

Outfront Media is a New York-based lessor of advertising space on out-of-home advertising structures and sites, formerly known as CBS Outdoor Americas.

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