Mobile Infrastructure Corp Q1 FY2026 earnings call

New Performance Metric Introduction

• The company introduced a new quarterly reporting metric, Same Location NOI, which removes valuation noise from the ongoing asset rotation program to provide a clear view of underlying operating portfolio performance, aligned with how management internally evaluates the business.

Core Operational Progress

• Overall portfolio utilization increased ~8 percentage points year-over-year, exceeding planned targets; the share of the management agreement portfolio operating above 80% utilization rose 750 basis points year-over-year, opening up opportunities for rate expansion and parker mix optimization.
• Contract parking growth was led by three key markets: Cincinnati (+24% YoY contract counts), Cleveland (+19% YoY contract counts), and Fort Worth (+10% YoY contract counts), consistent with management's "volume first, rate second" strategy of building occupancy before raising prices.
• The company is 1 year into its 3-year $100 million non-core asset rotation program, with cumulative proceeds from completed sales exceeding $30 million at a weighted average implied cap rate of ~2%. The strong valuation of assets in private markets highlights a disconnect between the company's private market portfolio value and its current public share price.

Capital Allocation

• To date, $22.6 million of asset sale proceeds have been used to pay down outstanding debt, reducing total debt from $207.7 million at year-end 2025 to $200 million at the end of Q1 2026.
• Capital allocation priorities remain: debt paydown (primary use of proceeds to reduce cost of capital), followed by opportunistic share repurchases and selective acquisitions of higher-quality assets, evaluated monthly by the board of directors.

Long-Term Strategic Value

• Management frames Mobile Infrastructure's portfolio as holding durable long-term value: assets are located in supply-constrained urban central business districts where new parking construction is uneconomical, have optionality for adaptive reuse (residential, hospitality, EV charging, last-mile logistics, emerging mobility), and are positioned to accommodate any future mix of mobility modes via their core access point function.

Total revenue for Q1 2026 was $7.9 million, down from $8.2 million in Q1 2025, driven by the sale of four non-core assets in 2025. Excluding dispositions, same location total revenue was flat year-over-year at $7.9 million. Contract parking is the largest reported segment: it grew volumes 6% year-over-year, and now contributes 38% of total management agreement revenue. Transient parking volumes grew 3% year-over-year, lifted by reopenings of assets that experienced 2025 construction disruptions. Revenue per Available Stall (RevPass) was $184 for the quarter, flat year-over-year; excluding the Detroit asset facing near-term redevelopment dislocation, RevPass was $186, slightly up year-over-year. On a trailing 12-month basis, RevPass was $200, or $196 excluding Detroit. Same location net operating income (NOI) grew 4.4% year-over-year to $4.6 million, from $4.4 million in Q1 2025. Property taxes were $1.5 million (down from $1.9 million YoY) and property operating expenses were $1.8 million (down from $1.9 million YoY), reflecting active tax appeal work and expense discipline. General and administrative expenses were flat at $2.4 million YoY. Adjusted EBITDA was $3 million, up 8.6% from $2.7 million in Q1 2025. At quarter end, the company held $14.2 million in cash, cash equivalents, and restricted cash, with total outstanding debt of $200 million, down from $207.7 million at the end of 2025.

• Management reaffirmed its full-year 2026 guidance, with no upward or downward revisions from the prior quarter's projection. • Total revenue is expected to range between $35 million and $38 million, representing ~4% year-over-year growth at the midpoint and ~8% same location year-over-year growth. • Full-year NOI is projected between $21.5 million and $23.0 million, representing ~7% year-over-year growth at the midpoint and ~10% same location year-over-year growth. • Adjusted EBITDA is forecast to range from $15.0 million to $16.5 million, representing ~10% year-over-year growth at the midpoint and ~13% same location year-over-year growth. • The guidance does not include any future asset sales or acquisitions that may occur under the company's asset rotation program. It is based on expectations of continued contract volume growth, benefits from completed venue reopenings, and gains from technology and dynamic pricing optimization initiatives.

• The call notes that all forward-looking statements and projections are subject to material risks that could cause actual results to differ significantly, including the risks outlined in the company's SEC filings (Form 10-K, Form 10-Q) and earnings press release. The company does not intend to update forward-looking statements. • Near-term dislocation in performance is ongoing at the large Detroit asset due to redevelopment activity, which distorts aggregate portfolio RevPass metrics. • There is inherent uncertainty around the future evolution of mobility adoption over the next decade, which could impact long-term parking demand.

Q: Mark Riddick asks for additional details on recent asset sales, the cap rates achieved, and the company's near-term capital allocation priorities. / A: Management confirms the program is 1 year in, with cumulative proceeds just over $30 million, and sale cap rates still averaging ~2% across closed assets. Debt paydown on the line of credit is the most accretive primary use of proceeds, followed by a balanced choice between highly accretive share repurchases at current share prices and high-conviction growth acquisitions. The board reviews the balance of these three priorities monthly.

Q: Riddick asks about the pacing of the stronger-than-expected utilization improvement across the quarter. / A: Management explains that per-stall parking inventory is perishable by the hour, making utilization the most important metric for underlying performance. The company currently focuses on building stabilized occupancy first by optimizing the parker mix (residential, commercial contract, hotel, then transient backfill) before pulling the rate lever, which becomes available once assets approach stabilized occupancy levels.

Q: Riddick asks for details on how return-to-office trends are benefiting the company, and if gains are concentrated in specific markets. / A: Management notes that stronger return-to-office demand is broadly consistent across the entire portfolio, not just concentrated in one region. The key change is larger block bookings from companies bringing employees back full-time, with many seeking blocks of 500 to 1,000 parking spaces, compared to the individual sign-ups seen in earlier recovery periods. While demand is broad, some Midwestern and Texas markets have seen larger block transactions.