LAMR Lamar Advertising Company

 Lamar Advertising Company (the “Company” or “Lamar”) (Nasdaq: LAMR), a leading owner and operator of outdoor advertising and logo sign displays, announces the Company’s operating results for the third quarter ended September 30, 2023.

“In the third quarter, we demonstrated impressive operating leverage, increasing revenue while decreasing expenses on a year-over-year, acquisition-adjusted basis," Lamar chief executive Sean Reilly said. "The broader advertising environment remains challenging. Nevertheless, based on current bookings, we are pacing to reach or even slightly exceed the upper end of our revised guidance for full-year diluted AFFO per share.”

Third Quarter Highlights

• Net revenue increased 2.9%
• Adjusted EBITDA increased 5.8%
• Diluted AFFO per share increased 0.5%

Third Quarter Results

Lamar reported net revenues of $542.6 million for the third quarter of 2023 versus $527.4 million for the third quarter of 2022, a 2.9% increase. Operating income for the third quarter of 2023 increased $7.1 million to $188.1 million as compared to $181.0 million for the same period in 2022. Lamar recognized net income of $140.4 million for the third quarter of 2023 as compared to net income of $146.2 million for the same period in 2022, a decrease of $5.8 million, primarily related to an increase in interest expense of $11.5 million over the same period in 2022. Net income per diluted share was $1.37 and $1.44 for the three months ended September 30, 2023 and 2022, respectively.

Adjusted EBITDA for the third quarter of 2023 was $265.7 million versus $251.2 million for the third quarter of 2022, an increase of 5.8%.

Cash flow provided by operating activities was $222.5 million for the three months ended September 30, 2023 versus $224.5 million for the third quarter of 2022, a decrease of $1.9 million. Free cash flow for the third quarter of 2023 was $181.0 million as compared to $176.0 million for the same period in 2022, a 2.9% increase.

For the third quarter of 2023, funds from operations, or FFO, was $210.0 million versus $207.9 million for the same period in 2022, an increase of 1.0%. Adjusted funds from operations, or AFFO, for the third quarter of 2023 was $208.8 million compared to $206.4 million for the same period in 2022, an increase of 1.2%. Diluted AFFO per share increased 0.5% to $2.04 for the three months ended September 30, 2023 as compared to $2.03 for the same period in 2022.

Acquisition-Adjusted Three Months Results

Acquisition-adjusted net revenue for the third quarter of 2023 increased 1.6% over acquisition-adjusted net revenue for the third quarter of 2022. Acquisition-adjusted EBITDA for the third quarter of 2023 increased 4.5% as compared to acquisition-adjusted EBITDA for the third quarter of 2022. Acquisition-adjusted net revenue and acquisition-adjusted EBITDA include adjustments to the 2022 period for acquisitions and divestitures for the same time frame as actually owned in the 2023 period. See “Reconciliation of Reported Basis to Acquisition-Adjusted Results”, which provides reconciliations to GAAP for acquisition-adjusted measures.

Nine Month Results

Lamar reported net revenues of $1.56 billion for the nine months ended September 30, 2023 versus $1.50 billion for the nine months ended September 30, 2022, a 3.9% increase. Operating income for the nine months ended September 30, 2023 increased $15.8 million to $483.7 million as compared to $467.9 million for the same period in 2022. Lamar recognized net income of $347.5 million for the nine months ended September 30, 2023 as compared to net income of $372.5 million for the same period in 2022, a decrease of $25.0 million, primarily related to an increase in interest expense of $40.3 million over the same period in 2022. Net income per diluted share was $3.39 and $3.66 for the nine months ended September 30, 2023 and 2022, respectively.

Adjusted EBITDA for the nine months ended September 30, 2023 was $717.6 million versus $685.8 million for the same period in 2022, an increase of 4.6%.

Cash flow provided by operating activities was $529.4 million for the nine months ended September 30, 2023, a decrease of $7.7 million as compared to the same period in 2022. Free cash flow for the nine months ended September 30, 2023 was $453.5 million as compared to $477.0 million for the same period in 2022, a 4.9% decrease.

For the nine months ended September 30, 2023, funds from operations, or FFO, was $554.2 million versus $561.8 million for the same period in 2022, a decrease of 1.4%. Adjusted funds from operations, or AFFO, for the nine months ended September 30, 2023 was $547.3 million compared to $555.2 million for the same period in 2022, a decrease of 1.4%. Diluted AFFO per share decreased 1.8% to $5.36 for the nine months ended September 30, 2023 as compared to $5.46 for the same period in 2022.

Liquidity

As of September 30, 2023, Lamar had $645.7 million in total liquidity that consisted of $606.3 million available for borrowing under its revolving senior credit facility and $39.4 million in cash and cash equivalents. There were $135.0 million in borrowings outstanding under the Company’s revolving credit facility and $247.1 million outstanding under the Accounts Receivable Securitization Program as of the same date.

Recent Developments

Subsequent to September 30, 2023, Lamar paid down $70.0 million of its outstanding borrowings under the Company’s revolving credit facility. Currently, there is $65.0 million in outstanding balances under the revolving credit facility.

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding sales trends. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. These risks and uncertainties include, among others: (1) our significant indebtedness; (2) the state of the economy and financial markets generally, and the effect of the broader economy on the demand for advertising; (3) the continued popularity of outdoor advertising as an advertising medium; (4) our need for and ability to obtain additional funding for operations, debt refinancing or acquisitions; (5) our ability to continue to qualify as a Real Estate Investment Trust (“REIT”) and maintain our status as a REIT; (6) the regulation of the outdoor advertising industry by federal, state and local governments; (7) the integration of companies and assets that we acquire and our ability to recognize cost savings or operating efficiencies as a result of these acquisitions; (8) changes in accounting principles, policies or guidelines; (9) changes in tax laws applicable to REITs or in the interpretation of those laws; (10) our ability to renew expiring contracts at favorable rates; (11) our ability to successfully implement our digital deployment strategy; and (12) the market for our Class A common stock. For additional information regarding factors that may cause actual results to differ materially from those indicated in our forward-looking statements, we refer you to the risk factors included in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2022, as supplemented by any risk factors contained in our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. We caution investors not to place undue reliance on the forward-looking statements contained in this document. These statements speak only as of the date of this document, and we undertake no obligation to update or revise the statements, except as may be required by law.

Use of Non-GAAP Financial Measures

The Company has presented the following measures that are not measures of performance under accounting principles generally accepted in the United States of America (“GAAP”): adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), free cash flow, funds from operations (“FFO”), adjusted funds from operations (“AFFO”), diluted AFFO per share, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense. Our management reviews our performance by focusing on these key performance indicators not prepared in conformity with GAAP. We believe these non-GAAP performance indicators are meaningful supplemental measures of our operating performance and should not be considered in isolation of, or as a substitute for their most directly comparable GAAP financial measures.

Our Non-GAAP financial measures are determined as follows:

• We define adjusted EBITDA as net income before income tax expense (benefit), interest expense (income), loss (gain) on extinguishment of debt and investments, equity in earnings (loss) of investees, stock-based compensation, depreciation and amortization, gain or loss on disposition of assets, transaction expenses and investments and capitalized contract fulfillment costs, net.
• Adjusted EBITDA margin is defined as adjusted EBITDA divided by net revenues.
• Free cash flow is defined as adjusted EBITDA less interest, net of interest income and amortization of deferred financing costs, current taxes, preferred stock dividends and total capital expenditures.
• We use the National Association of Real Estate Investment Trusts definition of FFO, which is defined as net income before gains or losses from the sale or disposal of real estate assets and investments and real estate related depreciation and amortization and including adjustments to eliminate unconsolidated affiliates and non-controlling interest.
• We define AFFO as FFO before (i) straight-line revenue and expense; (ii) capitalized contract fulfillment costs, net; (iii) stock-based compensation expense; (iv) non-cash portion of tax provision; (v) non-real estate related depreciation and amortization; (vi) amortization of deferred financing costs; (vii) loss on extinguishment of debt; (viii) transaction expenses; (ix) non-recurring infrequent or unusual losses (gains); (x) less maintenance capital expenditures; and (xi) an adjustment for unconsolidated affiliates and non-controlling interest.
• Diluted AFFO per share is defined as AFFO divided by weighted average diluted common shares outstanding.
• Outdoor operating income is defined as operating income before corporate expenses, stock-based compensation, capitalized contract fulfillment costs, net, transaction expenses, depreciation and amortization and loss (gain) on disposition of assets.
• Acquisition-adjusted results adjusts our net revenue, direct and general and administrative expenses, outdoor operating income, corporate expense and EBITDA for the prior period by adding to, or subtracting from, the corresponding revenue or expense generated by the acquired or divested assets before our acquisition or divestiture of these assets for the same time frame that those assets were owned in the current period. In calculating acquisition-adjusted results, therefore, we include revenue and expenses generated by assets that we did not own in the prior period but acquired in the current period. We refer to the amount of pre-acquisition revenue and expense generated by or subtracted from the acquired assets during the prior period that corresponds with the current period in which we owned the assets (to the extent within the period to which this report relates) as “acquisition-adjusted results”.
• Acquisition-adjusted consolidated expense adjusts our total operating expense to remove the impact of stock-based compensation, depreciation and amortization, transaction expenses, capitalized contract fulfillment costs, net, and loss (gain) on disposition of assets and investments. The prior period is also adjusted to include the expense generated by the acquired or divested assets before our acquisition or divestiture of such assets for the same time frame that those assets were owned in the current period.

Adjusted EBITDA, FFO, AFFO, diluted AFFO per share, free cash flow, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense are not intended to replace other performance measures determined in accordance with GAAP. Free cash flow, FFO and AFFO do not represent cash flows from operating activities in accordance with GAAP and, therefore, these measures should not be considered indicative of cash flows from operating activities as a measure of liquidity or of funds available to fund our cash needs, including our ability to make cash distributions. Adjusted EBITDA, free cash flow, FFO, AFFO, diluted AFFO per share, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense are presented as we believe each is a useful indicator of our current operating performance. Specifically, we believe that these metrics are useful to an investor in evaluating our operating performance because (1) each is a key measure used by our management team for purposes of decision making and for evaluating our core operating results; (2) adjusted EBITDA is widely used in the industry to measure operating performance as it excludes the impact of depreciation and amortization, which may vary significantly among companies, depending upon accounting methods and useful lives, particularly where acquisitions and non-operating factors are involved; (3) adjusted EBITDA, FFO, AFFO, diluted AFFO per share and acquisition-adjusted consolidated expense each provides investors with a meaningful measure for evaluating our period-over-period operating performance by eliminating items that are not operational in nature and reflect the impact on operations from trends in occupancy rates, operating costs, general and administrative expenses and interest costs; (4) acquisition-adjusted results is a supplement to enable investors to compare period-over-period results on a more consistent basis without the effects of acquisitions and divestitures, which reflects our core performance and organic growth (if any) during the period in which the assets were owned and managed by us; (5) free cash flow is an indicator of our ability to service debt and generate cash for acquisitions and other strategic investments; (6) outdoor operating income provides investors a measurement of our core results without the impact of fluctuations in stock-based compensation, depreciation and amortization and corporate expenses; and (7) each of our Non-GAAP measures provides investors with a measure for comparing our results of operations to those of other companies.

Our measurement of adjusted EBITDA, FFO, AFFO, diluted AFFO per share, free cash flow, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense may not, however, be fully comparable to similarly titled measures used by other companies. Reconciliations of adjusted EBITDA, FFO, AFFO, diluted AFFO per share, free cash flow, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense to the most directly comparable GAAP measures have been included herein.

Conference Call Information

A conference call will be held to discuss the Company’s operating results on Thursday, November 2, 2023 at 8:00 a.m. central time. Instructions for the conference call and Webcast are provided below:

Conference Call

All Callers:	1-800-420-1271 or 1-785-424-1634
Passcode:	63104
Live Webcast:	www.lamar.com/About/Investors/Presentations
Webcast Replay:	www.lamar.com/About/Investors/Presentations
	Available through Thursday, November 9, 2023 at 11:59 p.m. eastern time
Company Contact:	Buster Kantrow
	Director of Investor Relations
	(225) 926-1000
	bkantrow@lamar.com

General Information

Founded in 1902, Lamar Advertising (Nasdaq: LAMR) is one of the largest outdoor advertising companies in North America, with approximately 363,000 displays across the United States and Canada. Lamar offers advertisers a variety of billboard, interstate logo, transit and airport advertising formats, helping both local businesses and national brands reach broad audiences every day. In addition to its more traditional out-of-home inventory, Lamar is proud to offer its customers the largest network of digital billboards in the United States with approximately 4,700 displays.

LAMAR ADVERTISING COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
	Three Months EndedSeptember 30,								Nine Months EndedSeptember 30,
		2023				2022				2023				2022
Net revenues	$	542,609			$	527,390			$	1,555,078			$	1,496,630
Operating expenses (income)
Direct advertising expenses		175,305				169,740				515,606				493,926
General and administrative expenses		79,201				84,212				248,392				250,185
Corporate expenses		22,414				22,242				73,520				66,715
Stock-based compensation		3,916				5,108				16,362				14,331
Capitalized contract fulfillment costs, net		(117	)			(772	)			(203	)			(463	)
Transaction expenses		—				93				—				3,769
Depreciation and amortization		74,636				65,833				222,919				202,210
Gain on disposition of assets		(879	)			(53	)			(5,243	)			(1,990	)
Total operating expense		354,476				346,403				1,071,353				1,028,683
Operating income		188,133				180,987				483,725				467,947
Other expense (income)
Loss on extinguishment of debt		115				—				115				—
Interest income		(621	)			(248	)			(1,559	)			(742	)
Interest expense		45,070				33,545				130,163				89,824
Equity in earnings of investee		(699	)			(1,554	)			(1,326	)			(2,655	)
		43,865				31,743				127,393				86,427
Income before income tax expense		144,268				149,244				356,332				381,520
Income tax expense		3,843				3,056				8,821				8,976
Net income		140,425				146,188				347,511				372,544
Earnings attributable to non-controlling interest		408				—				833				—
Net income attributable to controlling interest		140,017				146,188				346,678				372,544
Preferred stock dividends		91				91				273				273
Net income applicable to common stock	$	139,926			$	146,097			$	346,405			$	372,271
Earnings per share:
Basic earnings per share	$	1.37			$	1.44			$	3.40			$	3.67
Diluted earnings per share	$	1.37			$	1.44			$	3.39			$	3.66
Weighted average common shares outstanding:
Basic		101,960,356				101,580,997				101,890,573				101,469,918
Diluted		102,130,614				101,685,965				102,085,016				101,599,157
OTHER DATA
Free Cash Flow Computation:
Adjusted EBITDA	$	265,689			$	251,196			$	717,560			$	685,804
Interest, net		(42,823	)			(31,720	)			(123,684	)			(84,555	)
Current tax expense		(2,588	)			(2,417	)			(7,911	)			(7,125	)
Preferred stock dividends		(91	)			(91	)			(273	)			(273	)
Total capital expenditures		(39,145	)			(41,006	)			(132,152	)			(116,808	)
Free cash flow	$	181,042			$	175,962			$	453,540			$	477,043

SUPPLEMENTAL SCHEDULESSELECTED BALANCE SHEET AND CASH FLOW DATA(IN THOUSANDS)
	September 30,2023					December 31,2022
	(Unaudited)
Selected Balance Sheet Data:
Cash and cash equivalents		$	39,395			$	52,619
Working capital deficit		$	(312,074	)		$	(361,485	)
Total assets		$	6,572,322			$	6,475,214
Total debt, net of deferred financing costs (including current maturities)		$	3,401,705			$	3,312,805
Total stockholders’ equity		$	1,186,842			$	1,195,374

	Three Months EndedSeptember 30,								Nine Months EndedSeptember 30,
		2023				2022				2023				2022
	(Unaudited)
Selected Cash Flow Data:
Cash flows provided by operating activities	$	222,546			$	224,475			$	529,420			$	537,105
Cash flows used in investing activities	$	115,916			$	94,086			$	245,925			$	402,464
Cash flows used in financing activities	$	114,955			$	142,559			$	296,736			$	154,842

SUPPLEMENTAL SCHEDULESUNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES(IN THOUSANDS)
	Three Months EndedSeptember 30,								Nine Months EndedSeptember 30,
		2023				2022				2023				2022
Reconciliation of Cash Flows Provided by Operating Activities to Free Cash Flow:
Cash flows provided by operating activities	$	222,546			$	224,475			$	529,420			$	537,105
Changes in operating assets and liabilities		900				(5,237	)			65,357				59,581
Total capital expenditures		(39,145	)			(41,006	)			(132,152	)			(116,808	)
Preferred stock dividends		(91	)			(91	)			(273	)			(273	)
Capitalized contract fulfillment costs, net		(117	)			(772	)			(203	)			(463	)
Transaction expenses		—				93				—				3,769
Other		(3,051	)			(1,500	)			(8,609	)			(5,868	)
Free cash flow	$	181,042			$	175,962			$	453,540			$	477,043
Reconciliation of Net Income to Adjusted EBITDA:
Net income	$	140,425			$	146,188			$	347,511			$	372,544
Loss on extinguishment of debt		115				—				115				—
Interest income		(621	)			(248	)			(1,559	)			(742	)
Interest expense		45,070				33,545				130,163				89,824
Equity in earnings of investee		(699	)			(1,554	)			(1,326	)			(2,655	)
Income tax expense		3,843				3,056				8,821				8,976
Operating income		188,133				180,987				483,725				467,947
Stock-based compensation		3,916				5,108				16,362				14,331
Capitalized contract fulfillment costs, net		(117	)			(772	)			(203	)			(463	)
Transaction expenses		—				93				—				3,769
Depreciation and amortization		74,636				65,833				222,919				202,210
Gain on disposition of assets		(879	)			(53	)			(5,243	)			(1,990	)
Adjusted EBITDA	$	265,689			$	251,196			$	717,560			$	685,804
Capital expenditure detail by category:
Billboards - traditional	$	11,658			$	12,165			$	40,619			$	30,388
Billboards - digital		18,057				19,218				59,598				61,172
Logo		2,368				3,636				9,499				9,639
Transit		1,001				817				2,390				3,021
Land and buildings		2,094				2,467				9,785				5,102
Operating equipment		3,967				2,703				10,261				7,486
Total capital expenditures	$	39,145			$	41,006			$	132,152			$	116,808

SUPPLEMENTAL SCHEDULESUNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES(IN THOUSANDS)
	Three Months EndedSeptember 30,												Nine Months EndedSeptember 30,
		2023				2022			% Change					2023				2022			% Change
Reconciliation of Reported Basis to Acquisition-Adjusted Results(a):
Net revenue	$	542,609			$	527,390				2.9	%		$	1,555,078			$	1,496,630				3.9	%
Acquisitions and divestitures		—				6,733								—				28,706
Acquisition-adjusted net revenue		542,609				534,123				1.6	%			1,555,078				1,525,336				1.9	%
Reported direct advertising and G&A expenses		254,506				253,952				0.2	%			763,998				744,111				2.7	%
Acquisitions and divestitures		—				3,787								—				17,321
Acquisition-adjusted direct advertising and G&A expenses		254,506				257,739				(1.3	)%			763,998				761,432				0.3	%
Outdoor operating income		288,103				273,438				5.4	%			791,080				752,519				5.1	%
Acquisition and divestitures		—				2,946								—				11,385
Acquisition-adjusted outdoor operating income		288,103				276,384				4.2	%			791,080				763,904				3.6	%
Reported corporate expense		22,414				22,242				0.8	%			73,520				66,715				10.2	%
Acquisitions and divestitures		—				—								—				—
Acquisition-adjusted corporate expenses		22,414				22,242				0.8	%			73,520				66,715				10.2	%
Adjusted EBITDA		265,689				251,196				5.8	%			717,560				685,804				4.6	%
Acquisitions and divestitures		—				2,946								—				11,385
Acquisition-adjusted EBITDA	$	265,689			$	254,142				4.5	%		$	717,560			$	697,189				2.9	%

(a)   Acquisition-adjusted net revenue, direct advertising and general and administrative expenses, outdoor operating income, corporate expenses and EBITDA include adjustments to 2022 for acquisitions and divestitures for the same time frame as actually owned in 2023.                                                                                                                                                                                                        

SUPPLEMENTAL SCHEDULESUNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES(IN THOUSANDS)
	Three Months EndedSeptember 30,												Nine Months EndedSeptember 30,
		2023				2022			% Change					2023				2022			% Change
Reconciliation of Net Income to Outdoor Operating Income:
Net income	$	140,425			$	146,188				(3.9	)%		$	347,511			$	372,544				(6.7	)%
Loss on extinguishment of debt		115				—								115				—
Interest expense, net		44,449				33,297								128,604				89,082
Equity in earnings of investee		(699	)			(1,554	)							(1,326	)			(2,655	)
Income tax expense		3,843				3,056								8,821				8,976
Operating income		188,133				180,987				3.9	%			483,725				467,947				3.4	%
Corporate expenses		22,414				22,242								73,520				66,715
Stock-based compensation		3,916				5,108								16,362				14,331
Capitalized contract fulfillment costs, net		(117	)			(772	)							(203	)			(463	)
Transaction expenses		—				93								—				3,769
Depreciation and amortization		74,636				65,833								222,919				202,210
Gain on disposition of assets		(879	)			(53	)							(5,243	)			(1,990	)
Outdoor operating income	$	288,103			$	273,438				5.4	%		$	791,080			$	752,519				5.1	%

SUPPLEMENTAL SCHEDULESUNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES(IN THOUSANDS)
	Three Months EndedSeptember 30,												Nine Months EndedSeptember 30,
		2023				2022			% Change					2023				2022			% Change
Reconciliation of Total Operating Expense to Acquisition-Adjusted Consolidated Expense:
Total operating expense	$	354,476			$	346,403				2.3	%		$	1,071,353			$	1,028,683				4.1	%
Gain on disposition of assets		879				53								5,243				1,990
Depreciation and amortization		(74,636	)			(65,833	)							(222,919	)			(202,210	)
Transaction expenses		—				(93	)							—				(3,769	)
Capitalized contract fulfillment costs, net		117				772								203				463
Stock-based compensation		(3,916	)			(5,108	)							(16,362	)			(14,331	)
Acquisitions and divestitures		—				3,787								—				17,321
Acquisition-adjusted consolidated expense	$	276,920			$	279,981			(1.1		)%		$	837,518			$	828,147				1.1	%

SUPPLEMENTAL SCHEDULESUNAUDITED REIT MEASURESAND RECONCILIATIONS TO GAAP MEASURES(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
	Three Months EndedSeptember 30,								Nine Months EndedSeptember 30,
		2023				2022				2023				2022
Adjusted Funds from Operations:
Net income	$	140,425			$	146,188			$	347,511			$	372,544
Depreciation and amortization related to real estate		71,519				63,089				213,925				193,164
Gain from sale or disposal of real estate, net of tax		(806	)			(10	)			(5,113	)			(1,783	)
Adjustments for unconsolidated affiliates and non-controlling interest		(1,107	)			(1,364	)			(2,159	)			(2,135	)
Funds from operations	$	210,031			$	207,903			$	554,164			$	561,790
Straight-line expense		1,136				741				3,476				2,884
Capitalized contract fulfillment costs, net		(117	)			(772	)			(203	)			(463	)
Stock-based compensation expense		3,916				5,108				16,362				14,331
Non-cash portion of tax provision		1,255				639				910				1,851
Non-real estate related depreciation and amortization		3,117				2,743				8,994				9,046
Amortization of deferred financing costs		1,626				1,577				4,920				4,527
Loss on extinguishment of debt		115				—				115				—
Transaction expenses		—				93				—				3,769
Capitalized expenditures-maintenance		(13,402	)			(13,008	)			(43,642	)			(44,681	)
Adjustments for unconsolidated affiliates and non-controlling interest		1,107				1,364				2,159				2,135
Adjusted funds from operations	$	208,784			$	206,388			$	547,255			$	555,189
Divided by weighted average diluted common shares outstanding		102,130,614				101,685,965				102,085,016				101,599,157
Diluted AFFO per share	$	2.04			$	2.03			$	5.36			$	5.46