BEEP - Earnings call transcript Q4 2023 | Mobile Infrastructure Corp

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Operator

Good afternoon, and welcome to the Mobile Infrastructure Corporation, Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions] Please note, today's event is being recorded. I would now like to turn the conference over to Casey Conery, Investor Relations representative. Please go ahead.

Casey Conery

Thank you, operator. CEO; thank and joining us Full mobile Manuel and Mobile's to today everyone, President are Quarter Hogue, Fourth Year Chavez, afternoon, you us for review from and Good CFO. Stephanie and XXXX performance.With

events Please forward-looking number call, understanding press release you and could of expectations our our to call full We turn that in risks make today, Mobile management's differ are CEO, disclaim cause will made statements of XXXX actual to our specifically but Chavez, future presented developments and some as now assist March that light.We today. discussions refer that for I During fourth views obligation this may, performance.These our statements to I will elect subject call statements forward-looking Manuel? anticipate over conference about are we in statements to addition, mobile the to our XXXX the results to consider cause based so. to at you and performance. of on to discuss update materially, do this risks.In filings quarter SEC information the to any XX, future change. those Manuel during point, a will our year and views

Manuel Chavez

and on listing drive of average which is achieve assets, brief our XXXX, and asset for garages our Infrastructure National the Thus, asset their live progress at then since our with fourth are XXXX.As most And portfolio was outlook York about performance discuss independent substantial. with participating are XXXX, XXXX.Mobile markets company, million Exchange people, Casey, the diversified increased quite of XX an American, population in Financial a and our fourth discuss net operating is and I to parking expect Services we quarter will of conference an valued overview today's New thank portfolio X.X split owner of has company since of a call for to you, and the you begin all we Stock underlying by our business in MSA X.X%. base this Thank results call destinations.In to Firm. quarter review the first income whom XX cap in this while by million $XXX small between a is

the portfolio.Longer to the intend of the experience, fragmented more industry and value leverage acquirer trends secular term, we for And significant as a infrastructure on compared here ago levels. year results.First, takeaways improved to our quarter of that mobile from base, performance fourth snapshot portfolio we potential of to perspective competitive choice point creation to insight with actively rate parking of with team our team has industry strategy assets.The goals, infrastructure operating In represents corporate and and across that technology yet our entire expertise enormous a our utilization, assets driving passively our around managed. market, industry optimization acquiring addressable of each in these provides parking Our assets a substantially asset the become our that deep economies this contrast, With relationships see and the a an managing later. the we unique vast objective invested parking parking of our are and centered scale.To the technology is are have little of key support in majority differentiated industry. in we

position. us leveraging for more an business manage rates to during assets us our for our closely momentum as industry.For driven to This with out in entered of proprietary traffic management We us in more strategy be We customize by charged increase this Second, hotel return.By a fragmented provide hotel growth differentiator which the and certain hotel constructive we example, gas facilities the strategy, and saw detail enabled managed providers a that offered on reservations financial directly improved take parking overnight service the rapidly approach in leased options can attending, investment identify we our events first through those to from portfolio XXXX passively view parking that is be manage similar our that contract in into privileges needs expenses. to relevant address parking may and conversion. our corporate the a which platform, yield lastly, contracts infrastructure providing with pipeline with spaces.Also, often options offerings assets, flexibility of the and XXXX.Consistent optimize and to parking for technology in customers. transition those has can us to actively work greater group, resulted quarter. creates our enhance to parking customizing us.We in active overnight and markets And and utilization to parking our guests, of fourth develop markets we our we special increased converted XX solutions gives conventions it asset our customer quarter positive and our building technology and for key

market, validations we business year-over-year. near our For result many fourth example, we even with before quarter tenants announcements strategy, destinations.As we our that regions, parking activity capturing increased for we which and of are they by potential a in options restaurants facilities.In management active enter cases, carefully other retail seeing transient offering attractive revenues parking increased are several are district and XX% track put the central together

our namely: fourth we by expectations trends contracts growth anticipated improved closely in event-driven of as income growth reflects positive the in from our or moment.But specific transformational business. XXXX, XXXX will XXXX, these performance is income, business XXXX be sales say we further a as monitor portfolio.With rear-view discuss medium the in in saw office performance continue line mirror, momentum hotel for Stephanie combined which year me accelerate our will reduction to XXXX well portfolio.Over it improvements most trends business a mobile results, asset efforts, the in a of our in a supported We us XXXX operating we top in in share vision our the XXXX will the fourth are guidance further that our asset of the strengthen in growth can strengthen tailwind the the to let of we traffic.In the are XXXX continued a with is work priority operating to with our term, as conversion metric net we to completed metrics operating NOI, long-term improvement for leasing operating for infrastructure. expenses, Net will quarter resulted management I expected in pleased which we a and these XX% XXXX.Following quarter. that the rates several when be to net existing year and the in return benefit and revenue as of XXXX, in as at trends operational for end income

several are We to our have creates the seeing the historically conversion that a potential it markets, This has business because of demand commercial significant the our has an to in of Midwest. positive overnight residential requirements particularly impact new with traditional there X several Tier associated has new parking for the This a requirements construction U.S. existed developments. happening or cities.Also, eliminated smaller parking is not cities of listening in having across lowered with or been on

vision can trends apartment Minneapolis parking makes built requirement. into more long-term that and a to that is are Cleveland.Developers should or was time.Our acquirer choice valuable hospitality city, are already taking commercial. This the more trend for parking-assets that standing any build in the in of built Cincinnati, over first For parking us tower a good industry. to a in the place and example, positive become Similar space turn residential, in without

if we we increase and owner identifying Chief a our that drivers this we market.On and Our multifamily what a can our infrastructure mean Financial event single-asset shopping a to are income.At over assets net multiple like I residences, by review. and the relationships et the Officer, drivers have opportunity interest by significantly technology Stephanie in for is What it's demand exposed traditionally attracted I smaller, are to experience, Stephanie? but on market, asset turn multiple point, to adjacent call financial them, that, like in an Hogue, substantial disciplined more markets. or that operating have have blocks cetera, call hotels, micro surrounded would we to venues, side, demand President is locations, as fragmented local

Stephanie Hogue

expense up million million XX.X% $X.X of reduced resulted We our of in for The increased.We South impact and reflecting NOI results. than XXXX. for million or and activity and property believe reduction and as costs increased our represented $XX.X on operating revenue XX% net increased of XXXX. We XX% represented Thank fourth the demand revenue million, of in Southwestern grow million, parking of expenses to from and in year-over-year, discretionary our increased up to income of resulted fourth approach historically compensation of as revenue year higher faster in events premier year-over-year a X% XX% or the team's I additional XX% revenue.Adjusted $X.X of spending, of through year-over-year. good million. provide million, noncash you, of and cost cost million quarter of revenue.General from revenue Manuel, well to revenue. guidance fees.Property full $X.X time, expenses to administrative $X.X EBITDA was quarter costs allowed valet of $X.X costs full million year XXXX. from in everyone. half hotel XX% the same growth.Shifting Similar XXXX.Fourth Revenue parking $X.X ago. support operating property when EBITDA roughly and compared on XX.X% details with saw $X.X taxes afternoon, will were as benefited as can continued of which margins rent increased NOI activity structure about and year $X.X locations, company Adjusted our public the $X.X was compared particular property performance strength review operating higher million year-over-year $XXX,XXX. to significantly which financial million, lower incremental a a as insurance year-over-year our XXXX managed year up and last and as up in $X.X as quarter, million margin $XXX,XXX expenses more well well slightly XXXX lower traffic.At benefited operating disciplined broad-based from NOI contribution tightly our level $XX.X quarter structure $XX the We higher significant fourth activity at as high professional million to of

became performance contracts As Manuel way utilization of and the rates advertising, revenue the and and parking we standardized from driver XX a move quarter delivered the us mentioned, accounting. XXXX. we this were accounting of to can adjust the able year, in a This a profitability locations example, recognition our our focus greater operational our assets.For increase locations, cash-based standpoint, also recognition our contracts control more manage an and demand conversion first management of on is when which converted aware gives earlier underlying tangible shift as targeted in of benefits.From financial management we and high directly for we near to accrual to pricing of reflective will more one away that of expenses to

been As reported business of be revenue creating past, collections, of has trends.In a by better results. this lumpiness of the skewed in reported our result timing some our a indication will revenue shift, reported the

year ended cash of million down debt. balance and $XXX of next the At was our and XXXX.Recently, compared million year end Total Mobile we end significant our of with maturity the to $XX at Infrastructure the a to a outstanding sheet. We away. our of is $XX pay $XXX outstanding million had XXXX, restricted million of cash. Turning $XX million now debt, debt refinanced

dedicated our acquisition operational portfolio, to XXXX accelerated plan continue a While to year for to existing is we an improvements implementing program.

pipeline within the as have management.We integrated asset XX an owner generation.These an well comfortable offers the that larger confident tech-enabled selling as XX can be, being many potential along first or tax within of and treatment data-driven operations in becoming is significantly in to base an advantage portfolio which we continue ownership. to with family-owned of including asset opportunity to acquisitions and are passed We owners next the benefit months the their transactions, active class sellers of and NOI diversification our to partnering extremely there improve have of are are asset recent successfully

more a Our on to is acquire appropriate equity to ability predicated our assets returning level. valuation

to that While creative to we growth. believe solutions continuing strategic XXXX to a become acquisition pipeline, in gain the economic put a favorable conditions, in NOI momentum, more should build approximately $XXX more consider XXXX. is as in stood robust place which accelerating deal await we which as active well million at end XXXX result market.Turning continue the We at of plan into to

million Net organic North initial Manuel $XX.X back range to of the introducing ahead. manage With representing to which will for XXXX to from lease use expected operational managed I $XX Star. this the XXXX from to is are growth progresses call contracts.That operating to to to to our million, which We closing sharing that, look operating or the income of for to opportunity we year midpoint.We remarks. at $XX.XX I of the year-on-year NOI as and more said, $XX forward being million, growth guidance is X% our progress for revenue million turn shift business represents net the would mid-single-digit note income, that like

Manuel Chavez

that our up, improved operations has strategy Infrastructure active in sum XXXX. markets our share we us to To us in is in Mobile in portfolio enabled a for set be year XXXX.Our to differentiator Stephanie. you, is will performance management gain continue industry as improve a and have further our has asset another to substantial Thank unique of and

has We underpinned like aligned call a and that open team the have I trends by secular would significant plans to interest.Operator, robust acquisition shareholders' our for And fully long-term favorable now growth is pipeline. questions. with ownership are the and ambitious management

Operator

Maher question from [Operator comes instructions] B. Today's Riley. first Bryan with

Bryan Maher

Just me today. for a few

you that it stock? think you On your you of for a of until represent? the on assets to pull of think do some positive how see the I million, Manuel, indicators is takes simply many long $XXX pipeline, Stephanie, it those? the trigger maybe Or equity And said would value how matter just

Stephanie Hogue

from XX represents to pipeline. to hear of million $XXX the Manuel, I'll acquisitions Thanks, XX To over part to answer kick Bryan. then the your Good it you. first the about in question,

Manuel Chavez

Yes.

to wide comes our eyes acquisitions, it when are So, open.

disciplined, bear. that are that to amount having very a capital look win valuations to to expectations, with their come continuous to then in and significant sort We to build that be believe the we has that by we're the will good to on conversations stock continue point side and tend relationships line portfolio. value our between seller market and the of currency, these sort lag a is build gap brought stock. relationships using country expectations we're been of still cost another to as far and though, pipeline the of seller build throughout seller a capital execute.You going our coin as there's of pipeline.There going our what And We experience time.So, continue markets of reflect it does going that not our continue markets to significant to with expectations we're the

acquisition in term, how efforts. growth to continue stock going creative focus and the discussing on facilitate we're and the see organizing organic that's structures the So, goes.In short to where really order we're And discovering we're transactions. to

Bryan Maher

class us, in market. REITs the not How cap of whole the is asset a parking is kind about spread? out this And think that? we there rates there's of new lot of What should some bid-ask to

Manuel Chavez

the basis depending basis debt parking we're market that's movement. of XXXX, from that's of is points from delta XXX back if bid movement at with on mid-X seen the But lease beginning rates. cost the so, that dealing cap they've you where it cap is sort mid-X anywhere Historically, capital Yes, today.And ask the perhaps fair. today. rates, assets the on of XXX look of the where capital points the below XXX, have, There's market, been in you've of some traded

Bryan Maher

many think that gears how the those to actually in more there on get of done the to able to management of you just many from do leases contracts, And ones are remain, go? And how conversions shifting be XXXX? you'll

Stephanie Hogue

question. great Yes. That's a

we've us So, leases. the that be X additional would X done should that we through There confident take total done working XX%.The of We're XXXX. assets on converted may XX. of are a are are balance be that potentials long-term to through

really the So, but those XX, we lease convert And will to XX contracts, that's off. run those as will a management then terminates, exercise.

Bryan Maher

up X year? queue. just holding the me, can for kind think hope and of more that do a I Stephanie, quarters And we I'm in anybody But have rate G&A the run for about on not you number for this

Stephanie Hogue

really quarter. We budget It's by did annual. not

think I X% we're last expecting X%, comparable between so we year and cash to on were a where basis.

Bryan Maher

And look most fruit you where again, then expenses, through your just and with the the is for When a second. Stephanie we last, down get to those low-hanging year? sticking as move numbers at

Stephanie Hogue

or side on property the corporate the side? On

Bryan Maher

Both.

Stephanie Hogue

year of a that property in were number last nature. the had we discretionary expenses On side, onetime

forward.On So, really controls. we did. engineering revenue and those technology for the size don't company. given to think up normalized not I some are nature, company some just picking so, anticipate G&A costs. public in also again side, ahead the a related And of studies public company, CapEx going I'm There we're those pretty like are, onetime upgrades I they're that as sure was we the the year said, that

we've think well that I normalized. So, got pretty

Operator

Brian next [Operator with Street Our question Instructions] Freckmann from Lyon Capital. comes

Brian Freckmann

Congratulations your to discuss potentially on How sort call. sort to anything embedded your of strategies in office. first I of that base touch what return you to does want dynamic and on assumptions the on are impact forecasting that just topic? wanted

Manuel Chavez

question, great what particularly seeing a there out that's today. know, I Yes. with we're

a operating almost the It's We been months. over are or not our return return plan office basing to experience frankly, office quite our to been anecdotal. budgeting XX flat. movement.The past our on annual movement been It's

ballparks firm We're believers the are normal. quo what in urban of do continued civic the rooms, remains connectivity increasingly the believe concentration convention status redevelopment. and driver.For is example, and of and and giant the So, demand of is that residential centers, interstate But core. infrastructure, and public our we assumptions arenas, that development stadiums, the infrastructure a new densification supporters athletic and hotel

our so, rates drive and rental to drivers by is business idea to our capturing demand to utilization on those and And demands. grow focus those

Operator

I'd And any this question-and-answer for to closing our like team remarks. turn to session. the management back concludes the over conference

Manuel Chavez

Thank you, everybody. afternoon. Appreciate your this time

Operator

call. today's We conference today's concludes This thank you. for Thank all you attending presentation.

lines, You wonderful may now have disconnect and a day. your

Mobile Infrastructure (BEEP) 14 Mar 242023 Q4 Earnings call transcript