BEEP - Earnings call transcript Q4 2024 | Mobile Infrastructure Corp

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Operator

Good afternoon, and welcome to the Mobile Infrastructure Corporation Fourth Quarter and Full Year 2024 Earnings Conference Call.Â [Operator Instructions] Please note this event is being recorded.Â I would now like to turn the conference over to Ms. Casey Kotary, Investor Relations representative. Please go ahead, ma'am.

Casey Kotary

Thank you, operator. Good afternoon, everyone, and thank you for joining us to review Mobile's fourth quarter and full year 2024 performance. Mobile Chavez, from Hogue, and today President. us are CEO; Manuel Stephanie With we statements and hear results a will In moment, management's as the XXXX. of of about fourth year quarter full operations company's the

in XXXX also believes for considered most financial from report discussion Mobile's not quarterly non-GAAP be as contains most of Chavez, in to information to Today's uses and release earnings the XX-Q risks those we affected non-GAAP discuss financial results. release should includes on recent investors.Â Â These with those statements, has events, fourth substitute directly results.Â Â Actual a report on vary made discussion reconciliation useful to Manuel? Mobile in to business results the comment call. we and and that its on list its Manuel of or identified SEC, XX-K trends provide obligation Form not annual no by CEO, industry this performance. from report most does and Form measures references Mobile forward-looking GAAP now like year over remind or may including to Before Mobile's today's measures.Â I isolation GAAP on that those a recent turn a everyone the statements Form begin, intend and or forward-looking measures measures press be assumes today's will update its reasons to measures and or estimates the XX-Q. recent quarterly projections statements including provide these filings and may comparable Mobile's Mobile the of why future on would the Mobile full identified call and business significantly or most quarter to

Manuel Chavez

for on strategic review you, fourth year outlook XXXX. and Casey, the year our priorities for discuss delivering combined This successful begin was our quarter and XXXX parking our a to included: in benefits full all leases, management call expense reduction accomplishments. publicly key of a our our and results first, efforts business would perspectives. by portfolio traded participating Highlights made thanking us XXXX.Â I like team first it XX and Thank full for our from today's team to you thank from in in of to substantial XX of our conversion company, which both revenue-generating contracts assets of the our year of as and

rates which parking we Second, despite team, significant delivered our industry in have the pandemic. since that contract attrition the volumes and built out new headwinds XXXX sales leasing plagued high the higher from

financial contracts, part multiples position. took we consumer rates beyond it contracts driving flexibility control is we greatest which in our meaningful three shareholder time, to expenses At the revenue resources actions the closer build asset Third, operating strengthened XXXX, our improved sales financial conversion that to Fourth, of income net their in performance, as strategy; rotation and significant asset a to look we value.Â Â Taking and ongoing at completed we lastly, and operating of at with efficiently This and level can have provides trends with incremental asset parking greater with more utilize potential. utilization. the assess managed to as us gives owners us markets. to we important deploy our assets same optimize over more analytics, managed

as brought new our two from demand X In We the continued and months Class of we XXXX. at in sectors.Â Â In higher for been in a Xx business bringing building attrition office approach, saw team is leasing parking the the market XXXX residential and most from XXXX corporates more and office. XXXX masked the with utilization most data-driven XXXX. these living, by in have to prominent a the tenants our In experienced than with fourth trends post-pandemic projects XXXX, We located Another were days least our access the and planned quarter, and has determined sales was assets of to behind p.m. very And in in their successful signing to in in professional conversion building of the impact leasing to dozen are beverage a in. versus return with us underway of Cincinnati, contracts location positive of the there to a food fourth much began pipeline impact quarter with policies third beginning to number what with the government corporate systematic similar associated and XXXX. is stand markets. completion success our apartment care, year-on-year XXXX slated in considerable in have inflection XX/X space respect health process at to the pickup markets parking By to conversion have our in much available expectation an are in benefit XXXX. required XX on growth, point which believe first beyond.Â Â Their a a spend they of commercial services, cancellations employees per our the we markets revenue for cancellations and Mercantile or several pretty growth between parking. and this which dates new B In of opportunities going in of in of that this fourth move downtown which for have half their of as supports this office for from access the stall, place we new taking now are RevPAS,Â showed the both rates X contracts, year, and the reached quarters will revenue of

and are West we for largest portfolio the and scheduled a hotel. space Cincinnati, asset employees X,XXX-space This largest is others, X building in Center, In moved to to we One is to under Detroit been open fact, since term, medium permanently converted at remote at when General a path pleased April garage locations report the at estate this X firm one A West has space, way to a for be Marriott or has existing which a us, and of into workforce. venues. pandemic the This was the the light entertainment is the to to with adjacent and apartments, of formed joint retail, the luxury major together to location has is apartment considerable which a that more feet X of see office condos, square huge towers in their renovating connected tenant forward the amenity-rich redevelop assets, civic, tower that our tunnel. million to our Renaissance that X,XXX-room Renaissance we in a venture pressure Motors, X.X the asset.Â Â Looking one Hotel parking own development the of Motors been in with there them other the riverfront Center.Â Â They make has will cohesion large into converting to raising real headwind two office for towers building but redoing the another park and General end

impact this did the For the context, similar west development Yards have side will on Hudson that redevelopment a Manhattan. of

opportunities flow construction gives and sweet apprised unrelated period, parking keeping net locations. west base team, is XXXX. is divestiture to our potential value.Â Â We the development a really able to portfolio our proceeds connected is fewer operating now our have this portfolio them in three of as we parking income our This their asset investors which core invest potential will income. that to We and that severely completed, XX% definitely of Approximately over sold a our This pipeline discuss estate of will garage rotation This strong determine assets, the net from and at land the of center, maintain drive demand future assets developments alone assets, generate of we drivers, decided this will our deep the the the us a companies in a through multiple that for to of asset our our on our in have a ability and although net to demand is real for XX% at asset were of in scheduled our we the widely the much to that group will XXXX to of is underlying optimization noncore business at forward of the parking sell of We repopulating progress. acquisitions, value accelerate to project XX% noncore a to gives us not which we to deal recasting XX% part XX% In limited portfolio frame, and to time to our access in strategy. our our to During that be began only side evaluate of program noncore by about of as of available. has to portfolio our excellent assets.Â Â Following drivers larger know, location we our as assets of and clustered income XXXX assets words, Two planning at operating In analysis have other intrinsic portfolio but experience we strategy. have to to center.Â However, closely analysts income. use the asset we do and the consists an increase have additional management involve markets strategy portfolio assets segue revenue currently net an we base with this rotation assets that income. is to multiples the higher were substantial location, today's significant launching spot those look XXXX, asset operating the detailed these of consolidated of it and a worth multiples have the XX-month plan we relationships industry like.Â Â As you between once a XXXX. continue that operating sold

parking Mobile right is course, in real compelling stock. opportunity the estate now, Of most Infrastructure's

our stock, long-term recent Infrastructure's Our insight shares over of to now for new parking a in our our discount Mobile Hog, value of the President, which review on the of XXXX, we $X.XX call discussion developments and the to into further incremental will longer-term we of near strategic Stephanie substantial planning our demonstrating XXX,XXX our a shares on refinancings outlook.Â I locations. a opportunities asset share, company's the turn buyers income per are our does assets value repurchased net see at and include the not to in XXXX, based is In horizon. selling confidence financial

Stephanie Hogue

quarter will additional XXXX. XXXX color you, our performance Today, and good Manuel, everyone. for review Thank fourth provide well guidance financial in morning, as I the of our and year full on as

stock were believe I financial to line credit position.Â Â First, redeem up our the our in we took issue which end year.Â Â Second, preferred of build at shareholder than Before balance to like being cash outstanding strengthen to we the and shares favorably compared an share the million we open preferred of would was value common some rather sold the the the shares, market, we additional XXXX on which we pressuring caught year, in At price. start begin, $XX.X the with on highlight preferred. our actions took in million, dividends accrued the $XX.X

right shares a being converted.Â Â Third, our In this to company helped addition repurchase September. has this flow, flow share believe also the we move cash began with million for preferred stem we $XX the program a in being of

with via XXXX, in our Manuel to undervalued.Â Â Finally, $XX.X our X refinancings significantly prospects that million conviction Share ranging by of loans and in of are end our quarter completed repurchases we mentioned, As shares confidence XXXX. new shares. repurchased from underscore our XXXX we the the XXX,XXX maturities fourth long-term

With of secured been our refinancings, maturities extended. XXXX substantially and XXXX have completion of debt the all these

on XX% We the quarter continue to fourth fourth in our the Revenue discuss structure optimize increased fourth basis.Â Â Now from opportunistic of an results. our XXXX. of $X.X capital in million $X.X quarter million let's quarter

the market related leases million as metric in cash were XX inflection We additional operating usage to our stall point plan increase to the once to we higher a expenses investors we of convert our past, were XXXX we fourth view in on asset of have for investors increases of EBITDA revenue operating XXXX $X.X from have to $X.X Same expenses assets quarter, per our use as again $X.X more was the year's positive an noncash comp prior discussed compensation million NOI to expenses third management to and NOI, with X.X% debt restricted portfolio, of Revenue represented the the benefits Adjusted and RevPAS full $X.X statements.Â Â Property year infrastructure noncash of the prior year-over-year up X.X% discussed income, which of contracts in increased year-over-year, expect quarter. million operating $X.X metric can million EBITDA within year's recognize million, NOI as XXXX.Â Turning resulted benefit in compared or managed million, fourth shift and the convert quarter. financial total sheet We at as EBITDA quarter.Â As and management adjusted asset available our mobile to from contracts, and the episodic.Â As key million and business of million had location administrative balance in are business believe accrual-based a ensure quarter. million year, the last contracts, The derived the level to we results from reached contracts the financial of than margin leverage million Property performance. locations were XXXX, the Mobile to can progress.Â As accounting million $XXX.XX prior infrastructure with cash revenue base. additional metric continue to to or when we treatment $XX.X about this we this $XXX.X reliable be $XX.X year tomorrow, XX.X%.Â Â Shifting Net compared support a compared we increased increased that hand. XXXX over.Â Â Revenue year underscoring our as support end current management X% the of our on collections, model.Â General XX% last operations, of XXXX. have converted recognizing quarter positioned year fourth stall. revenue significant properly per million, can of in with and we footing end spent quarter portfolio level $X.X $X.X with revenue $X.X in This of underlying in autonomous with to examining we was XX.X% $X.X million parking increased RevPAS larger trends. vehicles. to compared compared a the in the $XX.X outstanding results. $X.X from up in excluded of $X cash XXXX.Â While We roll quarter. the million our considerable at We up X% without future the of time to to continue Adjusted locations grow also of of million and recognition million the in in Infrastructure from fourth year based of ended monitor we bulk fourth $XXX.X in management RevPAS, rather XX% down the locations, $XX from the shift improve the provides prior view G&A year's demands year. from last readily and growth million the that past, such taxes of primarily for was

constrained options needed is and be We preparations for is increasingly to as accommodate autonomous have facilities at vehicles.Â Â We the districts vehicles business in our autonomous to scale. are access essential parking parking significant where examining assets are advantages certain central easily our parking

and stage lanes gateless and early are reliable, charging, are partner our by mobility, at like We right see so is crucial today We a can both or provide areas are of features choice taking that XXXX. the continued for them operating with but autonomous downtown steps, year maintenance. businesses, know it XXXX. we best-in-breed what the systems a facilities in element we a clearly investing driving exit doing in early the parking with we drivers, to build stage and to this EV and storage another that we can vehicles result future.Â We will and together overnight these easily to and strong we recognize of We that secular also of marked in net users within and growth can believe in of navigable as facilities AV Navigate adjusted execution income that future.Â Â Turning in provider for test entry ensure expansion our EBITDA partner

income XXXX expected We XXXX million, $XX million for Emanuel of to any NOI impact X% million million guidance $XX.X growth to Net of the at turn $XX that representing for million introducing to $XX operating asset year-on-year be expected $XX from or are initial between range the million. $XX.X to is call is that, EBITDA the of potential will to does This exclude referenced. and I back over midpoint.Â Adjusted sales guidance With revenue Manuel.

Manuel Chavez

transient are in and are revenue we up, contract of Thank expectations for further for XXXX.Â We more developers plans pickup ahead parking accomplishments have the result to the begun the to Stephanie. a increases the looking XXXX pleased in to in growth are accelerated saw they income will portfolio, that our revamp To assets parking XXXX you, in which and already stakeholders volumes company's several after dip in Underpinning sum and projections than XXXX. provide. we have with monetizing our value

towards are stock the to work mobile revenue redemptions such measure to metrics sponsorship common and additional gaining have repurchase and pleased asset provided stock initiated in hope date as preferred accrued the commencing stockholders XXXX, and that including have beginning Stephanie a mitigate which coverage we to ratings, report paying near announced last In to preferred several per buy actions with by plan.Â Since than amongst continue sell-side stock to as of progress, to funding all to dividends value, the infrastructure shareholder of future. mentioned, X in dilution, of XXXX, year, rather coverage enhance we September financial net analysts future we we We additional our to cash stall.Â Â In investors. more available strategic value

between open to questions. I call and explore Operator, continuing our strategies now to price. like net Board management to the Our and the to to gap value share would team asset committed our are address

Operator

Massocca come John question from Instructions] The B. first Riley [Operator with will Securities.

John Massocca

can versus more to the maybe you're more recycling property overall some it's And you optimizing over going think repeat be maybe of maybe you surface plan. volume? where is dispositions portfolio something Or opportunities to about So like period, and buyers? lots cadence really kind about expecting of that parking over talk time? it the just Can redevelopment capital for you something focused on are XX-month that what the is this that

Manuel Chavez

where We've our Right parking is their developer. portfolio, that relative have in a and use highest or stakeholder other got now, assets some a use best income. and is to highest are to Yes. best parking to assets the we their

And so bifurcate we've the the is of detailed strategies done a what we've portfolio done to there. analysis different

revenue already discussions with the the developers And we're the is. the these best is, owner very value And portfolio so we've parking and in markets begun and going assets time. portfolio be reposition vanilla of of stakeholders identify to to derived its goal these infrastructure is what growth whose plain our over different who to consistency durability a is from

this a on want be assets. is And repeating is best take so owner of throughout and will But do identify the going that and it executing we X something these do to disciplined the some because it time we years. to to way in truly next

John Massocca

I of year, calendar the guess likelihood if in transaction current volume you will? what's the significant

Manuel Chavez

Yes.

objective X/X under in by to it is the noncore of assets year. XXXX, for end contract the So of these about our be

John Massocca

of given What kind the line last as kind plans have where particularly rates to of of around it weeks? refinancing, moved in of just pertains are couple credit, the the interest maybe

Stephanie Hogue

just the line in the place you to mind, it when that to continued be our was where in as Yes. pressure, thought something place. really, we accretive back, place, more sort was was downward have conversions that's of price a It's credit step putting definitely and that a of share taking know, the on put John,

kind number a a sheet options, of of well transaction look at of balance as addresses the continued line kind evaluating larger of as the just a credit. smaller kind So of that

fourth for So to working information sure. next through those quarter things have to since expect quarter now have the been more share and

John Massocca

the related property a disruption impact is upside disruption, Detroit mean, would call Okay. XXXX, later is but all obviously, something be the in last XXXX guidance? out that one, I that anything to Or that's And the you on, then would XXXX the called event? the

Manuel Chavez

just that. 'XX stress got phase upside the true disruption an you're vendor the of parking from could to But really The this, asset our to one how culmination redevelopment. into 'XX, Detroit a parking We've out is at it the we'll the impact impact, they redevelopment the and and throughout construction the huge in have income redevelopment it be property. the on be XX% for our on right. baked There exactly and is will process. and NOI of guidance XX% alone Throughout this opportunity naturally for consolidated XXXX for see

Operator

Sidoti. will from [Operator Marc Riddick Instructions]Â Our come with next question

Marc Riddick

into bit challenges. I wondering in was you I could thinking you full if are then was demand little of about that. a wondering So And was puts of ongoing I I guide revenue your range. on the from, talk takes bit about you year expectations? particular, economic little And the have just if talked a general the and sort on about maybe the about follow-up some talk built a could that

Stephanie Hogue

kick Yes, focusing jump really drivers. in contract I leasing a and continued identified our referenced demand off, focus, as the absolutely. the it diversifying I'll that honing his opportunities, remarks, year, Manuel on in. We've in core on for been the in on portfolio. focus out mean is Manuel,

new to but of So getting just really ahead online, not that. trends, coming hospitality, of new return and residential office the kind the

of growth where is on kind make utilization, So a I XXXX, continue impacts we'll we of think as lot impact the and look to we at of can.

Manuel Chavez

Yes.

right. and growth We've that's in residential. our commercial contract got accelerated parking both I through that's think

a got attrition, which volumes. decelerated uptick really several have We past And been the over then has years. headwind transient slight in for the the we've us

Marc Riddick

that that the then a view should of we dynamic that's of is whether thing? mix you achievable? component pricing sort there Great. be revenue a this there Okay. year transient that mind mix about, is Or as type And from have you thinking in

Stephanie Hogue

X it about in And in cores a excited at to offering. quarters, is this about prior a residential has shift talked mean it the historically CBD comes new mix. Tier product demand not but been We've offering, seen. reserved I that is product XX/X we're a which Yes. really rate

So point, what both impact most but to we 'XX. about pricing online. new 'XX, excited there's also product about to coming is to and demand, an that And think we're as 'XX my and

Marc Riddick

RevPass then just shift that maybe was was because there looking as to interesting that about quarter favorable given fourth And talk if And that sure Great. so the quarter at we've could have does quarter contributors you been. a the that calendar itself, it the year-over-year. about of I'm as seasonality fourth the up Can there, many in couple actually it you're there's from Okay. though calendar obviously, a RevPass was folks some heard the that, fourth year-over-year. as was the necessarily the it bit led calendar, right? But up not if seems

Manuel Chavez

Right.

saw a an rate. we So flattening off elimination really the and attrition on

numbers. to experience net started actually rate started we We through that those some in get and increases targeted then we them of November our quarter. of so gains. And And some in December to went

Operator

The will KevinÂ SteinkeÂ with come next question Barrington Research. from

Unknown Analyst

could your optimization terms your be divestitures that benefit of about And to be if from some So and acquisition a could of done. some meaningful wondering you some meaningful just about deals accelerating efforts. to obviously getting of those reapplying talked, you how how proceeds in portfolio thought that portfolio

Manuel Chavez

last a million, our mind, we $X this assets sold in impact on approximately and X strategy, we it estimate year, sales NOI. $XX,XXX combined asset We XXXX, these Keep proceeds $XXX for began could north from Yes. has and in rotation less of million. than be

right how a Now into play. and parking parking submarkets adjacent redeploy in prepared assets. markets can we're we fewer out blocks currently several the our the those we're moving or infrastructure to at We mobile micro into cluster assets, is looking even to demand in surrounded that markets I mentioned best that to to the move expand. in pricing we're on forward, critical want We're stock advantages. be larger us to now, far want But looking we drivers. as and that some we'll looking And as different give deal want at be that develop as those we looking markets remarks, by as there assets asset the mass

Operator

question Securities. next Massocca a follow-up Riley is John The with B. from

John Massocca

Apologies, muted was I there.

one assumption for me. growth that's into roughly? a RevPas the baked Just quick What's guidance

Stephanie Hogue

the So year. coming most utilization as to growth RevPas growth growth and from opposed is for the rate utilization of expected

John Massocca

I mean, of what seeing on you are or. NOI kind single-digit it EBITDA be similar growth And you're of expecting kind to the Okay. and to side

Stephanie Hogue

Yes, will revenue John. it line in growth, be with

Operator

This would concludes I sir. session. Chavez conference Mr. over go the Please back our question-and-answer remarks. ahead, closing for to to turn Manuel any like

Manuel Chavez

this you tuning look market you. all Thank quarter. on next our time and for Thank your morning We to in. forward updating progress the

Operator

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

You disconnect. may now

Mobile Infrastructure (BEEP) 11 Mar 252024 Q4 Earnings call transcript