Landmark has shifted from lease and easement purchases to higher return, higher growth development initiatives.  Here are the results from the third quarter 2019 earnings release and earnings call.

• Revenue declined by by $3.1 million (17%) to $14.4 million for the three months ended September 30, 2019 due to the sale of assets and the transfer of assets to an unconsolidated subsidiary.
• Net income excluding gains from the sale of real property and foreign currency declined from $5 million to $2.5 million due to lower revenue.
• The company acquired 10 additional out of home sites during the third quarter of 2019, all outside the US.  Here’s a breakdown of Landmark’s out of home acquisition activity from third parties.

• Landmark CEO Tim Brazy said the company has shifted focus away from acquisitions: “Landmark has shifted its near term strategy from primarily acquisition driven growth to a focus on higher return, higher growth development initiatives.  Although we continue to selectively acquire higher cap rate ground lease assets on a direct basis, our emphasis has been on the development and enhancement of wireless outdoor and smart cities infrastructure.”  The company will deploy 300 smart media and wireless kiosks across the Dallas area (DART) rapid transit plant.
• The company’s stock has dropped 12% since the earnings announcement as you can see from this chart

Landmark Infrastructure Stock Performance November 4 to November 15, 2019

Insider’s take:  Landmark is shifting away from lease and easement acquisitions in favor of development projects.  Good news for the out of home industry because a single, huge out of home landlord like Landmark would squeeze out of home companies on lease renewals.

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