Mobile Infrastructure Corporation

Good day, and welcome to the Mobile Infrastructure Corporation First Quarter 2024 Financial Results Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Casey Coterie, Investor Relations Representative. Please go ahead.

Thank you, Operator. Good afternoon, everyone, and thank you for joining us to review Mobile's first quarter 2024 performance. With us today from Mobile are Manuel Chavez, CEO, and Stephanie Hogue, President and CFO. During this conference call, we will make forward-looking statements to assist you in understanding mobile management's expectations about our future performance. These statements are subject to a number of risks that could cause actual events and results to differ materially, and I refer you to our May 15, 2024 press release and our SEC filings for discussions of those risks. In addition, our statements during this call are based on our views as of today. We anticipate that future developments will cause our views to change. please consider the information presented in that light. We may at some point elect to update the forward-looking statements made today, but specifically disclaim any obligation to do so. I will now turn the call over to Mobile's CEO, Manuel Chavez, to discuss the first quarter 2024 performance. Manuel?

Thank you, Casey. And thank you all for participating in today's call to review our first quarter results and discuss our outlook for 2024. To provide context to newcomers, Mobile Infrastructure is the owner of a diversified portfolio of 42 parking assets, which are split between garages and service lots. Our assets are located in 21 markets with an average MSA population of about 2.9 million people, most of whom drive to their destinations. In 2022, this asset portfolio was valued at $520 million by an independent national financial services firm. And since 2022, our net operating income has increased by approximately 10%. Thus, while we are a small cap company, our underlying asset base is substantial. The first quarter is typically our slowest quarter of the year, as there are fewer sporting events, concerts, and other events in our markets. That said, we are pleased with our results for the period, which demonstrate continued progress in several key areas. First, we further improved the performance of our asset portfolio compared to year-ago levels, posting considerable revenue growth and double-digit increase in net operating income. Second, these results were closely tied to the actions we took early in the quarter to convert 26 of our parking assets from leases to management agreements. First quarter revenue growth was comprised of mid-single-digit organic growth that benefited from our ability to drive increased utilization on the converted contracts. And the faster growth in net operating income was attributable to our team's focus on actively managing expenses on those contracts. And lastly, we saw positive momentum across several key end markets in the first quarter that we expect to build throughout the year. Taking a closer look at our first quarter business results, we are pleased to see year-on-year growth both in contract revenue, which is the revenue we derive from monthly parking tenants, and in commercial revenue, which comes from our parking garages that are attached to retail destinations. Transient volume will always lighten the first quarter due to the absence of events was particularly sluggish this year, but it picked up progressively throughout the period. our average transient parking rates increased, which mitigated the softness in this category. With respect to end markets, we continued to see strength in hotel parking as well as growth in monthly parking from medical and social service facilities, municipal offices, and residential locations. And geographically, the Midwest remained our strongest market. Our technology infrastructure is a key differentiator in the marketplace, providing us with unique insights into parking trends at our locations and giving us the ability to customize offerings. In the first quarter, we continued to build out our systems to track revenue data on a real-time basis, which will enable us to implement sophisticated pricing models and other utilization tools across our asset portfolio. As we discussed on our fourth quarter, 2023 conference call. 2024 will be a year. We plan to accelerate operational improvements as we work to strengthen the performance of our existing asset base. Our first quarter results represent a good step in that direction. Additionally, as we have announced, we have named a new CFO who will expand our bench strength at the executive level and relieve Stephanie of this role so she can concentrate on her responsibilities as president. Paul Gore officially joined us on Monday after many years as a Chief Accounting Officer and Vice President of Corporate Finance at Seco Environmental. Paul's public company experience, his impressive track record of accounting excellence and change management, and his reputation as a team player are important attributes that support our ambitious growth plan, and we welcome him as a key member of our leadership team. I would like to thank Stephanie for her willingness to remain in the CFO role until we found the right person for this position. And now I would like to turn the call over to her for financial review.