On a May 7, 2020 earnings call Landmark CEO Tim Brazy said COVID is impacting Landmark’s portfolio of 2,008 out of home assets: “With regard to outdoor advertising our tenants in this sector are experiencing some challenges…In our portfolio we have received a number of abatements and requests for rent relief and rent reductions from our outdoor advertising tenants…It’s still much too early to quantify the impact of the covid pandemic on our outdoor advertising tenants and in turn our own business.”

On the same call CFO George Doyle said Landmark has received “a fair number” of requests of rent abatements, that the company “is not granting a really large percentage of those requests” but that abatements will impact Q2 results.

In response to Covid, Landmark paused acquisitions and reduced its dividend.

Yesterday Landmark announced the sale of the joint venture that holds its European outdoor assets for 95 million pounds or $119 million US equivalent.  The company will use proceeds to reduce bank borrowings.

Insider’s take:  The sale eliminates one-quarter or $119 million of Landmark’s $458 million of debt. Landmark’s debt/EBIDTA should decline from 6:1 to approximately 4.5:1, well below the company’s 8:1 debt covenant.  Landmark is deemphasizing out of home leases and easements in favor of wireless development.  The US out of home portfolio was not growing.  The European out of home portfolio was growing and now it’s sold.

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