Mobile Infrastructure Corp Q3 FY2025 earnings call

• Portfolio performance: Resilient but revenue and NOI lighter than expected due to ongoing construction and longer redevelopment timelines.
• Contract parking: Volumes trended higher, increasing 1.4% sequentially and 8% year to date.
• Transient volumes: Up sequentially but down 5% year over year due to softness in hotel and event traffic.
• Market headwinds: Core downtown markets face temporary headwinds like long construction cycles, event cancellations, and lower hotel occupancy.
• Asset rotation: Completed an ABS transaction, sold a small noncore lot, and expects to sell or be in contract to sell ~$30 million in noncore assets by year-end.
• EV charging: Measured investments in locations where utilization and pricing support long-term profitability.

In the third quarter, revenue was $9.1 million compared to $9.8 million in 2024. Revenue per available stall (RevPAS) was $212 in 2025, consistent with the second quarter but down 7.1% from $228 in 2024. Net operating income (NOI) was $5.5 million, up modestly sequentially but down from $6.1 million in the prior year's third quarter. Contract parking volumes increased 1.4% sequentially and 8% year to date. Transient volumes were up sequentially but down approximately 5% year over year, impacted by softness in hotel and event traffic.

• Cincinnati: Convention center reopening in early 2026 to drive event and hotel traffic, with seven events booked in Q1 2026.
• Denver: 16th Street Mall redevelopment recovery, officially opened on October 4 with foot traffic approaching 30,000.
• Nashville: 2nd Avenue Corridor project expected to be completed by December 2025, restoring access to the garage.
• Fort Worth and Detroit: Positively positioned to benefit from long-term urban revitalization as surrounding projects complete.

• Short-term impacts: Construction, event cancellations, and lower hotel occupancy pressuring near-term results.
• Transient traffic uncertainty: Market-specific headwinds affecting transient volumes in various markets.

Q: What was the outlook for top-line performance heading into 4Q 2025?

A: Mixed, with some markets like Denver and Nashville seeing easing of headwinds, but looking to 2026 for year-over-year pickup.

Q: Where do the proceeds from the $30 million of potential sales go?

A: Near term, focus on repaying the line of credit, with evaluation ongoing for broader capital allocation.

Q: What was the impairment in the quarter related to?

A: $2.5 million impairment related to normal quarterly testing and asset rotation strategy.

Q: What made the ABS transaction attractive?

A: Allowed selling noncore assets, setting up the balance sheet for portfolio optimization.

Q: What was the NOI impact from the $30 million of sales?

A: Fairly nominal, under a million dollars from an NOI perspective with sub-three cap rate.