Yellow marks the spot of a CBS Outdoor billboard on southbound Interstate 5, south of Parker Road.

CBS Corp., which owns many of the larger billboards in Santa Clarita, both in town and along the 5 and 14 freeways – and throughout the rest of the United States and other parts of the world – announced Wednesday that it is spinning off its outdoor advertising operation, CBS Outdoor.

CBS said it has “ begun the process of converting” its U.S. billboard business into a  real estate investment trust, and it will divest its European and Asian billboard operations.

“We believe the moves we are announcing today will unlock the tremendous value of these unique quality assets,” CBS President Leslie Moonves said in a statement.

REITs don’t pay corporate taxes but must return at least 90 percent of profits to investors, who report the taxable income.

A CBS Outdoor billboard (in yellow) on Bouquet Canyon Road south of Bouquet Junction.

“We have studied the benefits of converting our Americas operations into a REIT,” Moonves said, “and we are increasingly enthusiastic that this transaction — as well as the sale of our business in Europe and Asia — will achieve significant value for our shareholders.”

To effect the conversion to a REIT, CBS said it will “submit a request for a private letter ruling from the Internal Revenue Service during the first quarter of 2013. If the ruling is granted, the Company could complete the REIT conversion in the taxable year beginning in 2014.”

With estimated revenues of $1.9 billion in 2012, CBS Outdoor is the world’s third largest outdoor advertising company, with billboards, street furniture, bus shelters and mall advertising.