BEEP - Earnings call transcript Q3 2024 | Mobile Infrastructure Corp

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Operator

Good day, and welcome to the Mobile Infrastructure Corporation Third Quarter 2024 Earnings Conference Call. Please note this event is being recorded. I would now like to turn the conference over to Casey Kotary, Investor Relations representative. Please go ahead.

Casey Kotary

Thank you, operator. thank XXXX joining Performance. and Mobile's to everyone, quarter third afternoon, you us for review Good With Chavez, Hogue, CEO; today and us from Stephanie President. mobile are Manuel statements of In the third hear we a XXXX. management moment, quarter of company's as operations results of the will about

forward-looking those events, financial begin, includes may its Mobile recent press most from Form be business vary most has identified and trends release business and on by would or the its or affected risks the Actual today's quarterly Mobile's in we and report results significantly those filings including report projections and we today's to identified remind SEC, on industry including Before annual that estimates results. in Form recent may everyone XX-K statements like discussion statements, of future or with XX-Q.

a measures Mobile update the to as to this GAAP Today's and or provide quarterly not mobile why a reconciliation Mobile's of measures. not XX-Q GAAP measures on discussion for the assumes comparable most also from isolation made recent in non-GAAP be useful measures investors. earnings or release report should These comment financial these mobile of does obligation reasons the references a most Form results. directly to and on no substitute list measures uses forward-looking these statements information to call. that considered intend contains its believes provide and on non-GAAP

the quarter turn now to CEO, third XXXX will I discuss over Chavez, Manuel? Mobile Manuel call performance. to

Manuel Chavez

and discuss outlook. to all in call results our and review third Casey, to quarter business Thank participating thanks you, our today's

XX third bring with operating or make growth X.X%, year-to-date operational NOI guidance from growth. and as year. by leases, of modest growth contribution manage assets line the quarter, XX our conversion year-to-date of increasing this net to reflects organic of to income single-digit a beginning provided from in as We the NOI to XX% we well X.X% high the financial progress parking of our to at continue Revenue contracts in

strengthened have operating in increase has are are decisions. and informs to shift real-time now using model marketplace strategic parking ways. We the the several marketing in and condition, access we This insight utilization our pricing our gaining data which to we greater

we ability control level, which enabled at Additionally, efficiently. the our expenses now to more resources have to use asset has us more

quarter We at recurring demand consecutive in increased third contract for volumes locations markets. event are hospitality year-on-year to pleased the offsetting parking see our sluggish transient in quarter, second parking

we cancellations which us. we behind fact, on point have contracts, In believe XXXX of of we had have COVID-related are for masked an at the new mostly corporate parking success are bringing as inflection much business in

occupancy stall of for facilities. parking are indication of nearby resolved performance per days appears have It assets. a which is our to the employees their located of quarter, now, offices, first number showed corporates the that In the third revenue required the by time policies year, for good improved year-on-year and growth that the to a in of or which spend the our us provides markets this with respect RevPas, of with most underlying our a our available baseline

our benefit to more meaningful cancellations, trends a emerge impact have wind XXXX in contract secular have addition and corporate our down quarter begun should other COVID-related performance. fourth In X that the to the modestly positive of on results

and at the building markets. return seen social in-person returning particularly in and services we professional offices. municipal office has to to earlier indications this strength healthcare, from our in sectors, This notable on trends and beverage of year have we early First, employees seeing are food been work services the

many our B conversion of markets the our across living, apartment which strength locations. residential place is impactful downtown potentially more commercial of has near taken to even and Midwestern of several Second, Class with offices specific

capacity. The will location where demand at have delivering first QX. our a substantial in in space pickup we adjacent parking of these projects begin Creating

driver These should to X XX/X in conversions significant p.m. and demand represent to addition important result from parking the company commercial a.m. access previous a revenue. for in an X in Parking in to our the as access shift a And increase usage utilization of of a the certain of residential XXXX has and there pace scheduled spaces. and XXXX. that similar for number these aspect the these completion our and of include hotels beginning commercial projects new are under are year conversions since projects of the The amenity-rich construction in markets accelerated

parking new of as offer units part residential keen sales the to their And of these proposition. are developers

relationships and opportunities Our growth discussions capture and in assets a market and number required engaged actively we of first-mover developers. pricing company the given analytics, on have to with expertise these are spaces new parking micro and downtown well-located advantage

of value what uses values. $X.XX annual to assets, As on when the we can were on to keeping lines value, our utilization based on a asset far profitability also the are optimize we work Indianapolis, that level we was sense, just receiving makes and fact assets we This property. the The case with $X.X of deemed the this our premiums assets per for significant was a X in eye debt. of that the of outstanding quarter increase parking on multiple third our for willing This asset of opportunities the the is have this an higher highlights minus income our is sold fair to other that were share even sell in and value capture value close our to net million. over are which proceeds reaches above a market

buyer a in to are downtown strong is When estate, way a we some position benefit. motivated who real there

our demand have to location close drivers opportunities to summary, continue we market parking. evaluate and our upside, also our We expertise. can consistency greater several expand market we leverage and see where and residential our assets like opportunities that with for to and newer portfolio multiple demand positioning namely In projects, for

who to Hogue, more review Stephanie over a and our detailed the business turn will President, Stephanie? quarter Mobile's of third results. now operating provide will I call

Stephanie Hogue

third discuss financial details I the of you, Thank results. pleased good am and our quarter Manuel, morning, XXXX to everyone.

We that report weeks actions per gap value strategic a within to the our and decisive our asset call. value share long-term conference and are designated took narrow net We few NAV our $X.XX between shareholder earnings happy enhance of price. QX share of or to

putting and often their a such way preferred Previously, $XX we initiatives of were capital price. established shares shares. to company's provide share which common when quickly, pressure were the our on equity common flexibility converted for redeemed, First, found million repurchasing credit to line as preferred shares, the they specifically unnecessary to market

have to had a intrinsic redeem preferred discount redeeming highly at dilutive. shares essentially shares shares. for new issuing implementation, we line, to shifted shares the conversion Since The new us credit our million our significant value, we cash. preferred have making drawn to With $X.X

headway preferred from now start million of $XX.X year. remaining, We and million have have $XX.X the at made shares good down of the

up on addition, current on distributions pace accrued bringing from that distributions In By preferred distributions. current, ongoing a slow are the return believe caught shares. we again of we outstanding as may realizing have investors redemption

price share repurchased about of authorized repurchase Board have program. shares average date, we our an XXX,XXX $X.XX at million a per share. To Finally, $XX

of efforts achieve the outlook and both our share portfolio. positive is our in line that price these a asset more Together, actions to value our highlight with

$X.X $X.X XX% third Now million in let's XXXX. the quarter. from of year-over-year quarter in quarter the of the Revenue turn third increased million to third

Over year, quarter. the X third assets XX has benefited the the including from past in management of that revenue completed contracts conversion to were

from management metric revenue underlying a as for in higher As typically view the for revenue to rates a monitor which accrual-based straight trends. operators, and basis. as occur volumes on we a investors cash results collections conversion reliable than on recognition reminder, line revenue not based contracts our business do recognize We rather

over progress We continue contracts leases to work XXXX. in and more further expect to facilities XXXX convert and management as to roll additional

we quarter revenue use third per available is RevPas or In stall our RevPas. a we metric introduced release, portfolio. our key within earnings

provide management additional our to convert we a view performance. contracts, locations RevPas of will ability improve investors location As to

positive the an basis a time XXXX. third same quarter, point turning first mentioned, Manuel reached the location in As year-over-year RevPas in on inflection for

While our Property with year's forward sharing can which $XXX,XXX quarterly there via in metric, report this other seasonal to impact RevPas. compared were $X.X are last on to third operating performance more that expenses forward. going line and factors plan some you to top we quarter. We look million

the flat increase shift business financial with with of locations, operating derived benefit primarily within million, from in treatment $X.X XXXX quarter. year. million, last million to from the taxes $X.X NOI, year's bulk quarter of last related The the resulted management up managed and XX% shift the NOI third of was our accounting in Net represented expenses X.X% or contracts income, underscoring recognizing revenue the $X.X growth statements. were Property of third our level model. the our from asset

were General year compared down $X.X last million the compensation prior million and quarter. in with third year's current noncash $X.X administrative quarter. million in year This the from $X.X of million noncash quarter included expenses of comp of $X.X in

from mentioned larger have base. our past, significant support operating grow we Mobile infrastructure As leverage a in readily the significant can without benefits G&A asset can Infrastructure as and increases

million, margin EBITDA up XX.X%. X.X% million was Adjusted was $X.X $X.X EBITDA adjusted year, from and last

XXXX $XXX.X outstanding reflecting Infrastructure Looking up cash end at was million the million earlier. shareholder at debt of had actions Mobile the Total our cash used the cash million, for sheet. end strategic I restricted at and $XX.X from of mentioned in balance quarter. the $XXX.X

to underway to We and expect on more active year-end. report have have several refinancing initiatives before

to to year-to-date includes to $XX position us of our $XX Our XXXX of benefit with prior in together million, and revenue contracts, our growth. reaffirm leases to from shift range we the continue which organic modest management million guidance, the results expect

includes based sales which We around revenue revenue, and on guidance net report card gross revenue typically excludes on Our XX%. a these fees fees. which basis, credit is tax

$XX.X the on to will business, Finally, we significantly in the I well is as And of in NOI call are over remarks. million. reaffirming $XX.XX which back NOI managing our for Manuel we with focus range for know, million as to turn his that, our you guidance, NOI, closing

Manuel Chavez

the puts with as further performance performance the it which as up we full focus beginning year strengthen at year to a sum this operational to our pleased To At of asset we the of on we in guidance described time, provided as existing portfolio. track are XXXX year-to-date we reach on would improvements XXXX that us work we year. our

We XX% challenging increasing income market have have just in succeeded our net conditions. by operating done that and amid almost

become term, for the Longer operating our build the Operator, industry. proven call expect to choice in the open questions. on of let's acquirer to parking model we fragmented

Operator

The with B. today comes question first Bryan Riley. from Maher

Bryan Maher

One, Stephanie.

for you modeling. Kind are for of very, helpful on, start says more earnings How is with deck by significantly earnings Can that? higher purchase? very up all, of data, much us replacement number? of Give NAV. than with the improved please? appraisals? deck you Is that First that, I'll cost it thanking on moving off cost that coming it quantify you Is some color your

Manuel Chavez

Yes.

would include So a replacement combination value of costs costs. and land construction

Bryan Maher

is your across so portfolio you're that that And statement? something to monitoring make

Manuel Chavez

engineers market and in we replacement market. talking Yes, talking out to Yes. construction monitor to the to in the costs each

Bryan Maher

Okay. properties How in front acquisition risks what which And What we about motivations? the the are think big, else think their then your of of pipeline, are pretty you? we -- those are about somebody should that? when Who sellers? is acquiring

Manuel Chavez

Right.

pipeline important that acquisition it's not So is note stagnant. our to

as to assets $XXX are $XXX across $XXX Those So refer constantly million, or may million while it U.S. changing. the we million

at and And aren't. Some values them that. don't upside of and patient constantly talking see okay the them be and trading frankly, accretion. to disciplined trading with heads in up where We're if our eyes to thing we the of material don't are market. we going sellers. buyers We're that we and see they're important is our buyers. open. We're or some But Then we're have

we And that are growing pipeline. so

Bryan Maher

preference properties you your to or do lot a of transaction more to And why? a at garage Okay. when looking are and Is transaction buy.

Manuel Chavez

they which So off value, are could excess types both well when . we parking income. of land to we of be parking asset parking underwriting trade like trade, in primarily, lots income. Oftentimes,

Bryan Maher

me. for And then last just

that property Indianapolis offer? was was unsolicited sold, the that you an that marketed you something On or

Manuel Chavez

No.

that the were -- than to offer in sold we unsolicited So out less it we investor what developers. was us We had eventually market X. a of talking to stakeholders talking half parking and make an

and process buy developer that to in stakeholder disciplined parking sales properties premiums being understanding so income and them and and of And we assets we sell for multiples. our

identify to that value. the able a valued so at And and developer land we're stakeholder site

And so we transacted. that's where

Operator

The Company. next question Marc Sidoti comes from with & Riddick

Marc Riddick

Hi, good morning. Good morning.

maybe year-over-year some was wondering a so I in I able measure you the So why the about components -- quarter we more third guess see and growth there. RevPas if to of talk we were you don't the of with investors little what could a the bit the start maybe the -- areas involved led sort little target? that same takes puts talk on year-over-year? about to location bit as what and should And as of Can the far RevPas. there some growth that

Manuel Chavez

sure. Yes,

So so certainly that's headwind. that first made significant average conduct XXXX. companies the that the -- in or of part and how background, of a been an headwind. sort to and that of are quarter, either RevPas return or we've hit cancellations, in office or first saw then lessening XXXX us to What actually of sort a is rate, the a -- all. XXXX to their growing we've cancellations, some of both and and trend they the seen we've we the And those these return the people mind not the combination beginning number. is people of been of the commitments quarter, so change from which growing week us utilization latter At significant against number COVID were days Since this on while that in had seen going year, COVID throughout that just we of at we've of created drive sort

quarter, in QX finally, of in the we XXXX. third able of QX those and so to outpace the And part latter were cancellations then

Marc Riddick

of third utilization measure that specifically, opposed is quarter, growth to So reflection more component. say for year-over-year as is reasonable a to revenue in it growth guess, I the the the this

Manuel Chavez

is. it Yes,

Marc Riddick

Okay.

if what that your Okay. imagine in whether Great. or think remarks, would could talk you expand a seasonality be have you the maybe we wondering prepared And you are want comment on can I the don't bit about that's Stephanie, to I revenue that And made misquote. to think then, I within should seasonality that us. might a do with there. on then little something maybe might and it, pacing, But about how factors quarter? But I it. for was

Stephanie Hogue

great a question. it's Yes,

They're sticky you mix more numbers So page, there transient gives the of reasons RevPas X travel trailing like daily is on has, your hotel is a of and at to is XX-month of view category. the seasonality how monthly in revenue the typically clear you a which the kind really our the is, because if of look business, that quarter lowest it we that first there's event. lower point, really in and but

the go asset. the parking and terms As mix events you through the year, are third of in and is and peak of of a the terms the changes comparable in daily utilization asset; second usage, quarter of quarter dynamic of roughly uses of and the fourth use

Marc Riddick

concerts of was year. felt -- strong recall a sure we really And of like necessarily basis healthy and things you I'm me that actually, is. sort not like and was you I thought remember last Great. little events that then beneficial -- this if as if major artists you correctly. touring -- year, it if forgive for I'm felt Okay. I and that tell strong seem very but that Can might a and this, wrong and something but a one on be squishy, me, can amount was nature. guys of for if nationwide last this it about a to year, I me it last had

how stuff if concerts all, that think First about like you sporting events we touch sort the that. about not bit of little flow that. whether maybe of me or a and and I'm of on should And you could could tell wrong --

Manuel Chavez

sort portfolio. experiential It bounce was and XXXX, that's In a spending. lockdown we great a COVID-related back saw across Yes, of our question.

of we be we've line saw travel a pace a which the and demand of around seen XXXX, historically, transient would even that type growth bounce top movement in that think norm. of food was to single-digit back drivers. in So beverage sort our that expect of events, now We lot would than would we sort And I And back of revenue. norm. on a sort reversion be bigger

Operator

Maxim comes question from Michael Diana next The with Group.

Unknown Analyst

you On either revenue to us talked geographies indications about that drivers, or you're early evidence your of give Could anecdotal particular this? seeing office. return any you

Manuel Chavez

Yes. on in are office then return to -- are We're Southwest certainly than the trends coast. the stronger seeing and mean, I they the Midwest

We are return seeing as days Tuesdays as for the and the peak to trough. Fridays office

buying CBD monthly We have parking. have reamenitize to to the back parking, also positive of been that the and or a slowly more their then Class remonetization transition that into core continued office to experiential coming which from towers of office that A transition seeing into that would expedited the sort is for of sort been people We've say seeing has contract sort us. And a been daily movement. I lobbies return of office of back

So front in are out getting we're deploying closely developers return. tracking where capital of that and

Unknown Analyst

of office was which first rentals. if where that Okay. And generally, residential then space this you Or Can tell you first see conversion your -- in? conversion market to conversion happening? do not, just downtown us

Manuel Chavez

Yes.

are that XX our So to portfolio. actually to XX apartment units it the the line happen seen we of to releasing announcement we've time across considerably varies months. the is What to that time varies up seeing it and time -- public from of

They break ground get focused So they we're on building these are then on really financed when it. and permits. projects zoned. They're actually

pipeline, in as Cincinnati starts, also Cleveland, right that it. in seeing to And Indianapolis the Worth, more so now, It's closely once Ohio, but a having impacts we've in Fort us well. we're tracking we're immediate impact got

Unknown Analyst

to conversions actually Okay. the you say use of in started your you've cases, guess -- you certain And services? parking those developers I with negotiating

Manuel Chavez

of to for for in And the cases, have. their their developers we the control parking Yes, cost want some the Yes. renter.

our appropriate income. shift sort just a of make developer then the risk open spaces the on for us. reoccurring And longer-term and at their to on risk rate. direction then not, longer offset supply of to actually exchange parking we're in term our price, sort we're times go they'll renter an and wants developer on with negotiate and just also the very market. there's that commitments of in own happy case, happier there's to of their point so And If significant If sort happy and most to very, taking

Unknown Analyst

Very interesting. Okay.

expense. on also as you the operating And On additional the mean that What guess from get expense is mentioned you mentioned manage side, leases moving more you on oversight contracts. to the you gaining you're I leverage. hear properties opportunity expense you side?

Stephanie Hogue

Yes.

you're The right. into an leases contracts the and gives what's work happening therefore, expense conversion So from management greater to operator asset pretty maintain at exactly and visibility margin to the allows us us transparency to tightly. with

that's of shift. the key that strategy. leverage the referenced in The is business the remarks terms really So strategy in I around operating the business

to us having the so an operators without allows And scale the overhead. corporate pretty scaling company with third-party asset quickly base

Our for additional operators great on are are the partners ground. boots us. They

scale And adding the overhead. materially twice so to allows without it us

Unknown Analyst

Great. then of finally, or technology revenue? ancillary Okay. any updates have you on use And your do

Manuel Chavez

Yes.

number of technology in with capital lately. in money different There's seen, So that we lot own it's operators a deployed sort operators. venture of parking amount of and as their parking work are been a And enormous actually now. developing as an because providers technology news been the you've

finding, revenue service control, way of sure top latest terms we're hardware cetera. staying of our that and et validation, make and work we closely on the So to providers with operators in

Unknown Analyst

And anything ancillary on Great. revenue? Okay.

Manuel Chavez

Ancillary with EV revenue. charging. whether talk We're to it's continuing

lot self-storage see opportunity that. phone with a with We of talks cell have towers. still We with

our sort then on opportunities that to at analyze and best in the are partners as really We looking of well. assets impact longer-term analyze

Operator

over like remarks. question-and-answer to closing our Concludes would I the back any conference turn for session.

Manuel Chavez

all Have day. for you good Thank a attending.

Operator

today's now The concluded. conference for Thank has attending you presentation.

disconnect. now may You

Mobile Infrastructure (BEEP) 13 Nov 242024 Q3 Earnings call transcript