Mobile Infrastructure Corporation

Hello, and welcome to Mobile Infrastructure First Quarter 2026 Earnings Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask the question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. I would now like to hand the conference over to Casey Colterree, you may begin.

Thank you, operator. Good morning, everyone, and thank you for joining us to review Mobile's first quarter 2026 performance. With us today from Mobile are Stephanie Hogue, CEO, and Paul Gore, CFO. In a moment, we will hear management statements about the company's results of operations as of the first quarter of 2026. 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 gap measures and a list of the reasons why Mobile uses these measures. I will now turn the call over to Mobile's CEO, Stephanie Hogue, to discuss the first quarter 2026 performance. Stephanie?

Thank you, Casey, and good afternoon, everyone. Thank you for joining us today. Our first quarter results reflect solid execution against the initiatives we laid out for 2026. We focused on driving utilization and contract growth while delivering on the first phase of our asset rotation program. Supported by higher residential demand and continued return to office momentum, contract parking volumes grew approximately 6% year over year, and contract parking now represents approximately 38% of our management agreement revenue. Before walking through the quarter in more detail, let me introduce the metric we are reporting for the first time today. Same location, NOI. As we execute the second year of our three-year $100 million asset rotation strategy, the composition of our total portfolio is changing. Total portfolio NOI now blends two stories, how the operating portfolio performs and how the rotation reshapes it. Same location NOI strips out the noise from rotation timing and gives investors a clean period-over-period view of the operating portfolio. This is the metric we use internally to evaluate the underlying business, and we will report it every quarter going forward. For the first quarter, same location NOI grew 4.4% year over year to $4.6 million, up from $4.4 million. Same location revenue was approximately flat at the operating level. The growth in NOI was driven by active expense discipline, as well as lease to management agreement conversions completed over the last year. The period included winter weather typical of our Midwestern markets in January, as well as ongoing redevelopment around several of our largest assets and pockets of hotel occupancy softness. Growing the operating portfolios NOI through that backdrop while continuing to rotate non-core assets and reduce debt reflects the operating discipline we have set as a strategic priority. Portfolio utilization ended March up roughly eight percentage points year over year ahead of our planned utilization. Parking is fundamentally a utilization-driven business with daily perishable inventory. As assets approach stabilized occupancy, optionality increases, both with rate and parker mix optimization. We are seeing more of the portfolio cross into that range. The portion of our management agreement portfolio operating above 80% utilization in the first quarter increased 750 basis points year over year, which will allow us to contemplate rate expansion across specific rate bands and or Parker type. In markets where we have seen stable utilization for more than 12 months, we have implemented rate increases or started to optimize Parker mix. Cincinnati is the next key market in that progression, focusing first on utilization and then on Parker mix and rate. Turning to contract parking, contract volumes grew 6% year-over-year in the quarter, with continued strength in residential and meaningful contributions from return to office momentum. Three markets stand out. Cincinnati, contract counts grew approximately 24% year over year across our three garages. Cleveland, our contract counts grew approximately 19%, and rate has already begun to follow utilization. And finally, Fort Worth, where contract counts also grew approximately 10%. This is the volume first, rate second playbook and execution to build occupancy, and we earn rate back as the market stabilizes. Now turning to transient revenue. Transient volumes grew approximately 3% year-over-year in the quarter as several key markets reopened after experiencing construction and redevelopment dislocations in 2025. As expected, we are now witnessing growing demand as these micro-markets reopen, which, when combined with continued momentum in contract parking, and a robust spring calendar across our broader portfolio underpins the confidence our team has in Mobile's 2026 plan. RevPath for the quarter was $184, approximately flat year over year. Excluding Detroit, which is large enough to influence portfolio metrics and where we have been candid about near-term redevelopment-driven dislocation, RevPath was $186, slightly up year over year. On a trailing 12-month basis, RevPass was $200 and excluding Detroit, it was $196. The same location revenue picture is stable while we continue to drive utilization and the rate lever remains ahead of us in markets where utilization stabilizes. In the first quarter, we also made meaningful progress on our capital allocation strategy. Cumulative proceeds from assets sold under a 36-month, $100 million asset rotation program have now exceeded $30 million. at a weighted average implied cap rate of approximately 2%. The value our assets continue to command in private market transactions illustrates the strategic value of well-located urban land, further magnifying the disconnect between the value of our portfolio and mobile infrastructure's current share price. Paul will walk through the balance sheet in more detail, but I will note that we ended the quarter with total debt outstanding of $200 million. down from $207.7 million at year end, reflecting both the Honolulu sale and the related pay down of CMBS debt. Reducing the cost of capital remains a primary use of disposition proceeds, and we continue to evaluate that against share repurchases and selective acquisitions of higher quality assets in coordination with our board of directors. Stepping back, the playbook for 2026 is unchanged from what we outlined last quarter. Continue to drive utilization across the portfolio and convert utilization into pricing leverage as markets stabilize. Rotate our non-core assets into debt pay down, opportunistic share repurchases, or higher quality acquisitions, all of which while continuing to optimize our operating model through technology, dynamic pricing tools, lease to management agreement conversions, and disciplined expense management. The first quarter results reflect solid execution against that playbook, and we are reaffirming our 2026 guidance, which Paul will discuss in detail. With that, I will turn the call over to Paul to address financial results.