In a letter dated 23 September, Maiden blamed the "weakness" of billboard advertising in the UK, which it described as an "ailing sector", for its decision.
"With poor sales, we are unable to sustain current rental levels," the letter says. "As a short term measure we will not be paying the final quarter's rent."
Maiden Outdoor managing director David Pugh said the rent holiday was "part of an annual housekeeping exercise", but would not comment further.
Media Week understands the letter was sent to the owners of about 400 billboards. There is a total of 12,000 in Maiden's portfolio.
The letter said there was "no intention" to repeat the exercise in 2006, and normal payments would resume in the new year.
However, it is believed this is the third year Maiden has not paid rent for a period.
Landlords are entitled to insist upon the rent, but can then be given a minimum notice period – sometimes only a month – to terminate the contract.
None of Maiden's large corporate landlords, which include Network Rail, Transport for London and Lend Lease, were targeted in the exercise.
While the outdoor advertising sector has been generally healthy, with Outdoor Advertising Association figures showing revenue up 8.2% year on year in the first half of 2005, Maiden Group recently reported a loss for the same period.
Maiden, which last month released its interim results for the six months ending 30 June 2005, reported a £3.5m pre-tax loss and an operating loss of £2.4m on turnover of £45.5m. This compared with a pre-tax profit of £1.9m and operating profit of £3.1m for the first six months of 2004.
The company, which operates roadside, rail and retail advertising in the UK and Ireland, blamed an "uncertain advertising climate, bedding-in of major new contracts and a delay in the awarding of the Network Rail Roadside concession" for its lacklustre performance.
Maiden said sales in the first quarter were strong, but this dropped away in the second quarter, partly because of the General Election. The company said this affected its business more than its rivals because of its greater reliance on large billboard formats.
Roadside billboard advertising contributes more than half Maiden's turnover, according to the company.
Other billboard operators occasionally seek to readjust rent payments, but Maiden's actions are considered unusual.
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