Mobile Infrastructure Corporation

and welcome to the Mobile Infrastructure Corporation first quarter 2025 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 one on your telephone keypad. 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 Cotery, Investor Relations Representative. Please go ahead.

Thank you, Operator. Good morning, everyone, and thank you for joining us to review Mobile's first quarter 2025 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 first quarter of 2025. 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, and 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 gap measures and a list of reasons why Mobile uses these measures. I will now turn the call over to Mobile's CEO, Manuel Chavez, to discuss first quarter 2025 performance. Manuel?

Thank you, Casey, and thank you all for participating in today's call to review our first quarter results and discuss our business outlook. To start off, underlying operating metrics moved in the right direction. And the strategic pillars we detailed in March are firmly on track. That said, seasonal headwinds and some other factors needed top line growth in Q1. Our infrastructure and consumer lens combined with improved data is guiding disciplined capital deployment and positioning mobile infrastructure for value creation. Before we get into the details, I'd like to reground you on a long-term journey that guides our actions. When we spoke in early March, barely seven weeks ago, we set out a multi-year, multi-pronged strategy consisting of two primary focus areas. Our first focus area, as expected, is to continue to convert the balance of our core portfolio into management agreements, driving increased utilization via increasing our monthly residential and commercial contracts. The second focus area is our portfolio optimization strategy in which we aim to rotate out certain parking assets that have greater value for alternative stakeholders than they do as long-term assets in our portfolio into new assets that will closely align with the key characteristics of our core portfolio, ultimately maximizing value for our mobile shareholders. As a reminder, Our core portfolio is defined as parking structures that are near multiple demand drivers and likely clustered close to assets that are already in our portfolio. We believe rotating the non-core segment of Mobile's portfolio can generate at least $100 million of proceeds that can be used to reinvest into our robust acquisition pipeline. Second, our team sees a meaningful opportunity to further leverage data and enhance processes and use rigorous management of our core portfolio to increase asset utilization and grow NOI. Because specialized parking properties do not change hands quickly, this takes time, and today's remarks are meant as a progress report on initiatives whose most visible milestones will surface over the coming quarters. Mobile infrastructure's garages occupy a distinctive niche. They are hard infrastructure, essential nodes in the flow of urban mobility, yet also behave like consumer microcosms, their performance rising and falling with daily human patterns. That dual nature shaped the first quarter story. The first quarter is our lightest season, and this year was no different. Adding to the typical seasonality, weather proved harsher than usual. Construction disrupted several central business district corridors, And in Cincinnati, one of our largest markets, the convention center closed for renovation, creating less demand in our transient and overnight hotel traffic. Even so, the team delivered a solid opening 90 days of 2025. Business development outreach secured more than 250 net new monthly contracts and lifted contract volume sequentially at essentially flat pricings. Our pipeline for new monthly business continues to grow evidence that our go-to-market discipline is taking hold. Transient transactions declined versus the prior year quarter, but average transient rate rose, demonstrating the levers that we have at our disposal to protect price, even when volume is softer. We also saw encouraging early signs from a wave of downtown residential conversions. For example, The mercantile and the newly opened One West Seventh Apartments in Cincinnati are seeing success in leasing even through the first quarter, a time when people are less likely to move. We are seeing some demand for parking from these new lessees, although there is some rate sensitivity early on. Experience tells us that sustained higher use eventually converts to pricing power, and we will remain patient with our pricing lever until that threshold is reached. 29 of our 40 garages are now under management contracts. By the end of calendar year 2025, we will have transitioned 75% of our portfolio to run under management contracts with the balance scheduled for conversion in 2026 and 2027. Management contracts allow for full rate autonomy, transparent cost structures, and crucially, granular data on utilization, Parker Mix, and rate elasticity. That data allows us to fine tune decisions with a precision unavailable previously. Building a data-driven decision process has taken time, and we believe the effects will become more obvious later this year and into 2026. Portfolio optimization remains an important pillar of our strategy. Last year's sale of three assets at attractive multiples confirmed the latent value of our real estate holdings. These three assets were sold at a sub-2% capitalization rate on NOI, which is a function of our assets often playing a critical role in the real estate development plans of alternative stakeholders. Building on that success, we have launched a 36-month disposition program targeting roughly $100 million of non-core properties whose value will be derived from the underlying land, or equally as importantly, the buyer who would like to control the parking experience for their customers or employees. Proceeds will be redeployed into locations supported by multiple demand drivers and higher net operating income potential in markets where we already hold scale advantages. We are working towards roughly one-third of those assets to be under active negotiations or in contract by year-end, and we are preparing the balance sheet accordingly. Over the past quarter, we evaluated debt facilities, including term debt, pooled asset debt, and single asset level facilities to ensure we can close sales swiftly and reallocate the capital in a manner that is accretive to shareholders. Looking beyond the traditional parking income, we are layering complimentary revenue streams into the portfolio. Revenue sharing negotiations are in late stages for electric vehicle charging at several garages, as is the longer term vehicle storage and assets that have greater availability throughout the year. And exploratory discussions with autonomous vehicle operators continue. Positioning our centrally located assets as future fleet hubs. Each initiative is intended to add durable cash flow and enhance asset value. We look forward to sharing more details on those initiatives in coming quarters. Again, in short, seasonal headwinds muted top-line growth, yet the underlying operating metrics moved in the right direction and the strategic pillars we detailed in March are firmly on track. Our infrastructure plus consumer lens combined with ever-richer data is guiding disciplined capital deployment and positioning mobile infrastructure for sustained value creation. Thank you for your time and continued support. I will now turn the call over to our president, Stephanie Hogue, who will elaborate on our financial performance through the quarter. Stephanie?