Outfront Media Inc (OUT) has disclosed a new risk, in the Share Price & Shareholder Rights category.
Outfront Media Inc. faces a significant risk as its board of directors holds the authority to revoke the company’s REIT election at any time, without needing stockholder approval. Such a decision could be motivated by the limitations imposed by REIT income and asset test requirements, which might hinder the company’s ability to pursue beneficial investments and business opportunities. If the REIT status is terminated, the company would incur federal, state, and local income taxes on its taxable income and lose the obligation to distribute most of its net taxable income to stockholders. This change could adversely affect the total return to stockholders, potentially impacting investor confidence and the company’s financial performance.
The average OUT stock price target is $20.25, implying 8.87% upside potential.
To learn more about Outfront Media Inc’s risk factors, click here.