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1. Experienced In The Outdoor Advertising Industry
Landmark Dividend’s Solutions Capital programs are tailored for outdoor signage both digital and static displays. Over the past 6 years, we have deployed nearly $150 million of capital in the outdoor advertising sector on over 600 locations nationwide. Many of our 175 professionals are highly experienced in the industry and worked for leading outdoor advertising companies. We understand your business and the outdoor display asset and we can tailor a solution for your needs.
Landmark Dividend will work directly with you and your vendor to provide you with long-term capital for your LED or static sign.
The programs we offer will provide you with:
• Lowest monthly payments in the industry
• Efficient and easy funding process
• Various repayment options
• Other uses for the capital as described herein
• Capital Solutions tailored for your business needs
Solutions Capital for Outdoor Displays
2.
Landmark Dividend’s Billboard Funding
• 618 Billboards closed• 42 states • $140.6 MM funds deployed
Landmark Dividend | www.landmarkdividend.com | 2141 Rosecrans Ave., Ste 2100 El Segundo, CA 90245
(As of July 2016)
2141 Rosecrans Ave., Ste. 2100 | El Segundo, CA 90254
Solutions Capital for Outdoor Displays
3.Landmark Dividend | www.landmarkdividend.com | 2141 Rosecrans Ave., Ste 2100 El Segundo, CA 90245
Capital Deployed
Repayment Term (years)
Monthly Payment
Annual Payment
Annual Savings
% Payment Reduction with Landmark
2. Immediately Maximize Your Asset’s Value
3. Matching the Asset with the Liability
Landmark Dividend’s capital repayment terms are significantly longer than conventional bank equipment financing and can range from 15 years to 40 years, depending on the transaction structure as described in this brochure. As shown on the table below, this means that your monthly payment can be 40% to 50% lower than conventional three or five-year equipment lease financing. Your billboard and project revenues will cover the monthly cost much quicker and generate to positive cash flow much sooner. As your location ramps up, you will generate much more cash flow from the asset.
At Landmark, we believe that the transaction is optimal and a win-win when the useful life of the billboard asset location is paired with our capital repayment terms. We take the position that much of the value comes from the location, not just the steel and signage. This philosophy allows us to go out much farther than conventional banks on our repayment terms and offer significantly more attractive capital to our customers. You wouldn’t finance the purchase of your home with a five-year mortgage - why would take this approach when obtaining capital for your long-term assets?
As shown above, you can re-invest the annual savings back into your plant and continue to grow the number of sites you have in your portfolio and generate even more returns. This is not possible with the high monthly payments on short term bank equipment capital.
Conventional BankEquipment Financing
Landmark DividendSolutions Capital
$500,000
3
$15,500
$186,000
$500,000
20
$5,500
$66,000
$54,000
45%
$500,000
15
$6,000
$72,000
$48,000
40%
$500,000
5
$10,000
$120,000
$500,000
40
$5,000
$60,000
$60,000
50%
2.4. Landmark Dividend | www.landmarkdividend.com | 2141 Rosecrans Ave., Ste 2100 El Segundo, CA 90245
Solutions Capital for Outdoor Displays
4. Program Overview & Examples
A. Structure 1: Display on a Leasehold Site
In this structure, you lease the ground from a third party landowner and will construct the display after the Landmark Dividend closing. The ground lease (including extensions) expires in 16 years in June, 2031.
Landmark Dividend Collateral: Signage, Permit, Leasehold Interest
Lease Term. Landmark Dividend’s Lease Term may be up to 20 years, but won’t exceed the underlying ground lease term, including extensions. This applies to sites that are subject to a third party ground lease.
Obsolescence Reserve. $2,000 per month will be paid and set aside to upgrade obsolete panels beginning in years seven to ten. This reserve is only required on sites subject to a leasehold. If the Landmark Dividend Lease Term is ten years or less, the reserve is not required.
Reserve Balance. Based on $2,000 per month paid in for ten years, there will be a balance of $240,000 available to you for signage obsolescence and upgrades.
1.
2.
3.
Monthly Payment:
Obsolescence Reserve (2):
Total Monthly Payment:
Reserve Balance Yr 10 (3):
$6,750
$16,000
$3,600
$2,000
$5,600
$240,000
Conventional Financing
5-Yr Equipment Mo Pmt:
3-Yr Equipment Mo Pmt:
Ground Lease Expires:
Landmark Dividend Lease Term (1):
Use of Funds
Hard Costs:
Soft Costs:
Total Signage Project:
16 years
15 years
$250,000
$50,000
$300,000
2.5.Landmark Dividend | www.landmarkdividend.com | 2141 Rosecrans Ave., Ste 2100 El Segundo, CA 90245
Solutions Capital for Outdoor Displays
Landmark Dividend Lease Term:
Use of Funds
Hard Costs:
Soft Costs:
Total Signage Project:
40 Years
$250,000
$50,000
$300,000
In this structure, you own the ground or have obtained an easement and will construct the display after closing
Landmark Dividend Collateral: Signage, Permit, Fee or Easement
$6,750
$16,000
$3,000
Conventional Financing
5-Yr Equipment Mo Pmt:
3-Yr Equipment Mo Pmt:
Monthly Payment:
In this structure, you currently have a ground lease from a third party land owner and will construct the display after Landmark closing. In addition to the capital for the signage, Landmark will also provide you with the capital to purchase the fee interest or perpetual easement from the third party landowner at closing.
Landmark Collateral: Signage, Permit, Easement
C. Structure 3: Display on a “To Be Purchased” Fee Site
Conventional Financing
5-Yr Equipment Mo Pmt:
3-Yr Equipment Mo Pmt:
$10,700
$16,000
Ground Lease Mo Pmt (1):
Landmark Dividend Lease Term:
Use of Funds:
Hard Costs:
Soft Costs:
Total Signage Project:
Land/Easement Purchase:
Total Uses
Monthly Payment (Signage):
Monthly Payment (Easement):
Total Monthly Payment:
$2,000
40 years
$250,000
$50,000
$300,000
$192,000
$492,000
$3,000
$1,750
$4,750
(1) Ground Lease Payment. This is the monthly payment you are currently paying your third party landlord for the site. You negotiate to purchase their land at 8X annual rents or $192,000.
B. Structure 2: Display on a Fee Site
6.
5. Preparing Your Plant For Sale Down The Road
Landmark Dividend | www.landmarkdividend.com | 2141 Rosecrans Ave., Ste 2100 El Segundo, CA 90245
6. Funding Process
Solutions Capital for Outdoor Displays
Many of our outdoor clients want to build up their plants as efficiently and as large as possible for a sale down the road to a major outdoor industry player such as Outfront, Clear Channel or Lamar. The Landmark Dividend lease may be assumed by the buyer of your company, and because the monthly payment is so low, your valuation multiple will be much higher when you sell your asset. In addition, larger corporations do not want to assume short-term equipment leases, which minimize the cash flow on the display.
If requested, Landmark Dividend will also provide you with the capital to purchase the fee interest from your landlords. As an example, if you have a high revenue sign subject to a third party ground lease which is expiring soon, you may be better off buying out the land owner’s fee interest instead of re-negotiating for another ground lease, which may be at a substantially higher lease rate. The buyer of your plant will not want to take the risk of a great location on a ground lease which is up for expiration.
The Application and Funding Process:
Provide the populated pre-qualification form to your Landmark Dividend representative.
You receive your lease payment quote.
Provide the Application Materials list of items to Landmark.
Your file will now enter Due Diligence. This process typically takes 2 to 3 weeks.
Approval. Your credit and capital amount will receive final approval by Landmark. The Landmark closing team will prepare your lease document.
You endorse the documents are return them notarized to Landmark.
Landmark Dividend issues a purchase order and the vendor ships your equipment.
Landmark Dividend funds the project at closing.
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7.Landmark Dividend | www.landmarkdividend.com | 2141 Rosecrans Ave., Ste 2100 El Segundo, CA 90245
Solutions Capital for Outdoor Displays
7. Frequently Asked Questions
1. Why is using Landmark Dividend’s Solution Capital better than an outright cash purchase of your outdoor display?
You can retain the working capital in your business or organization for opportunities and a cushion.
Landmark Dividend’s financing will not affect your bank lines and your borrowing limits. You will still have all the capacity available for other opportunities and for continuing to grow your plant.
The monthly payment is the lowest in the industry.
Generate immediate positive cash flow after construction and activation.
You can build more sites to grow your plant quicker for a large sale down the road.
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2.
Approval typically takes two to four days from the receipt of the pre-qualification form. Funding typically takes 30 days.
How long does approval and funding typically take?
3.
Yes. You are responsible to pay all sales and use taxes and property taxes. This would also be the case if you purchased the display for cash. However, these amounts can be funded by Landmark Dividend at closing.
Do I have to pay taxes?
4.
Your vendor will deliver and install your display in the same manner as if it were purchased with cash.
How do I obtain my sign?
5.
Yes. Because Landmark Dividend’s repayment is part of a premises lease, our position is it is tax deductible on your P&L. You should speak with your tax advisors.
Is my payment to Landmark Dividend tax deductible?
6.
Yes. You will need to provide evidence of insurance coverage and name Landmark Dividend on the policy as an additional insured and payee in case of loss.
Do I need to provide insurance on the display?
7.
Yes. There will be a prepayment formula which will be used to calculate your early prepayment. This will be equal to the sum of the remaining payments discounted by a Treasury rate-based index.
Can I pay off my Landmark Dividend capital early?
8.
The minimum amount is $50,000. There is no maximum amount.
Is there a minimum and maximum capital amount?
9.
Yes. Landmark will cover up to 100% of the hard and soft costs for the display and installation.
Will Landmark Dividend also cover the soft costs?
Scott FurcolowRegional VP, Acquisitions
615-656-7179 | Office615-927-2275 | Mobile615-656-7180 | Fax
www.landmarkdividend.com
2141 Rosecrans Ave., Ste. 2100El Segundo, CA 90245
Solutions Capital for Outdoor Displays
