Mobile Infrastructure Corp Q2 FY2025 earnings call

• Business Overview: Key markets face temporary headwinds but long-term value. Transient volumes were soft year-over-year but improved from Q1. Contract parking grew, with monthly contracts up 2.5% during the quarter and up over 6.5% year-to-date, especially strong in residential. - Asset Optimization Strategy: Active negotiations for approximately $20 million in asset sales, planning to redeploy proceeds into select parking assets with higher net operating income potential. - Financial Review: Revenue, RevPAS, NOI, and adjusted EBITDA discussed; balance sheet details including cash, debt, and preferred stock redemption mentioned.

In the second quarter of 2025, revenue was $9.0 million, down modestly from $9.3 million in the second quarter of 2024. Revenue per available stall (RevPAS) decreased 2% to $212. Net operating income (NOI) was $5.4 million, down 3.5% from the prior year. Adjusted EBITDA was $3.8 million, down about 6% from the prior year. Approximately 50% of the portfolio consists of core assets that generate about 80% of revenue and an even higher portion of net operating income.

• Full year 2025 guidance: Revenue expected to be $37 million to $40 million, NOI $23.5 million to $25 million. Year-to-date results and construction delays lead to tracking to the low end of these ranges. - Second half 2025 trends: Similar to first half, with possible upside from seasonal tailwinds like increased event attendance and hotel occupancy.

• Temporary headwinds in key markets due to construction, weather, and fewer marquee events. - Uncertainty in timing of redevelopment and construction impacts on short-term performance.

Q: What are the general parameters of the $20 million of potential dispositions mentioned?

A: Not specific on number of properties, but pricing will be similar to 2024 asset sales, significant multiples of parking income.

Q: How is the use of proceeds from sales and refinancing activity being addressed?

A: Evaluating through refinancing of the larger portfolio and sale of assets to work with the lender on the line of credit maturity, confident in positive progress.

Q: How does the guidance trending to the low end flow through to EBITDA?

A: Company has significant operating leverage; focus on monthly contracts, potential transient upside, strong cost controls in assets, and G&A being largely fixed. - Q: On contract parking trend, was demand slower than expected?

A: Yes, in reference to residential pickup and delivery being a bit slower in Q2 but team is delivering well with long-term pickup expected. - Q: Related to contract demand, any impact from corporate construction?

A: Detroit's monthly contracts impacted by Renaissance Center redevelopment; construction impacts transient traffic, but long-term view of the asset is positive. - Q: Thoughts on second half transient upside?

A: Second half trends similar to first half, with possible upside from sports attendance and other factors, but conservative assumptions in guidance.