Mobile Infrastructure Corporation

Good afternoon and welcome to the Mobile Infrastructure Corporation second quarter 2024 earnings conference call. All participants will be in 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 1 on your telephone keypad. To withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the call to Casey Coterie, Investor Relations Representative. Please go ahead.

Casey Coterie Thank you, Operator. Good afternoon, everyone, and thank you for joining us to review Mobile's second quarter 2024 performance. With us today from Mobile are Manuel Chavez, CEO, and Stephanie Hogue, President. In a moment, we will hear management statements about the company's results of operations as of the second quarter of 2024. Before we begin, we would like to remind everyone that today's discussion includes forward-looking statements, including projections and estimates of future events, business or industry trends, or business or financial results. Actual results may vary significantly from those statements and may be affected by the risks Mobile has identified in today's press release and those identified in its filings with the SEC, including Mobile's most recent annual report on Form 10-K and its most recent quarterly report on Form 10-Q. Mobile assumes no obligation and does not intend to update or comment on forward-looking statements made on this call. Today's discussion also contains references to non-GAAP financial measures that Mobile believes provide useful information to its investors. These non-GAAP measures should not be considered in isolation from or as a substitute for GAAP results. Mobile's earnings release and the most recent quarterly report on Form 10-Q provide a reconciliation of those measures to the most directly comparable GAAP measures and a list of the reasons why Mobile uses these measures. I will now turn the call over to Mobile CEO, Manuel Chavez, to discuss second quarter 2024 performance. Manuel?

Thank you, Casey, and thanks to all the participants. On today's call, we will review our second quarter operating and financial performance and discuss our business outlook. This was another quarter of progress for our company. Our asset portfolio continued to show solid year-on-year improvements, highlighted by a 14% increase in net operating income, which is the key metric that we managed to. This NOI growth is particularly noteworthy considering the challenging business environment that persists in many of our markets. Our team executed effectively as evidenced by the increase in portfolio yields, while at the same time working on initiatives that we expect will accelerate long-term growth. Our asset portfolio consists of 42 parking properties, 18 garages, and 24 surface parking lots. These assets are primarily located in the Midwest and Southwest where driving is the main mode of transportation. We have contracts with service providers who maintain our parking properties, and at the beginning of this year, we converted a large portion of these contracts from leases to management contracts. This strategic shift has made a significant difference in three key ways. First, it has given us greater access to the data that we are leveraging to maximize utilization. We now have improved visibility of parking usage and demand metrics. This enables us to employ marketing techniques and pricing adjustments to increase utilization, which over the long term should enable us to accelerate growth. Second, management contracts provide us with greater transparency to control and manage expenses at the asset level, which has helped us deploy resources more efficiently. end of the second quarter 27 of our assets have been converted to management contracts and we have already converted two additional assets during the third quarter third the conversion to management contracts has given us improved insight into the marketplace and the flexibility to take advantage of unique opportunities as they arise for example if we see an increase in requests for large blocks of parking spaces we have the ability to reorganize existing parkers and ship them to other nearby locations. Taking a closer look at our second quarter business results, the conversion to management contracts allows us to drill into detailed monthly and transient performance at each asset. While the current economic environment seems to be more challenging than a year ago, specifically in the transient parking, analyzing data has allowed us to focus on increasing market share and utilization of our assets. through strategic rate deployment and or expanding relationships within the micro market. We believe there are opportunities throughout the portfolio for targeted rate improvement. In the second quarter, these initiatives contributed to a low single-digit rate improvement that offset marginal transient volume declines. We believe our team can continue to drive improved NOI by adjusting rates as micro markets evolve. While demand in most central business districts continues to be sluggish, our team has witnessed continued strength in monthly parking for medical and social service facilities, municipal offices, and residential locations. Geographically, the Midwest remained our strongest market. Despite near-term economic uncertainty, we are seeing early signs of a pickup in demand that we expect to begin materializing in 2025. First and foremost, there is a multi-year conversion of Class B office space into residential apartment living that is currently underway in several of our markets. The pace of these conversions has accelerated since the beginning of this year, and the developers of these new residential units are keen to offer parking as part of their sales proposition. Our expertise in micro-market relationships has provided early insight into these opportunities, and we are actively engaged in discussions on pricing and number of required spaces with developers. This is a new and important demand driver for us. As the shift from the previous commercial usage of a five-day-a-week, 8 a.m. to 5 p.m. parking access to a 24-7 parking access could result in a significant increase in utilization and revenue for our company. Additionally, the current economic uncertainty appears to be enhancing the return to office mandates in our markets. We are starting to get inbound inquiries from corporates that are anticipating more employees returning to the office, maybe not five days a week, but often enough to require a regular parking space. It's too early to call this a trend, but despite unemployment ticking higher, our contract parkers are actually up from 6,500 to 6,900, or 6%, which indicates this long overdue return to office shift. may be underway. Now I will turn the call over to our president, Stephanie Hogue, who will provide a more detailed review of our second quarter operating and business results. Stephanie?