Mobile Infrastructure (AMEX:BEEP) held its first-quarter earnings conference call on Tuesday. Below is the complete transcript from the call.
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Summary
Mobile Infrastructure reported a 6% year-over-year increase in contract parking volumes, with contract parking now representing approximately 38% of management agreement revenue.
Same location NOI grew 4.4% year-over-year to $4.6 million, driven by expense discipline and lease to management agreement conversions.
Total revenue for Q1 2026 was $7.9 million, slightly down from $8.2 million in Q1 2025, due to asset sales. Excluding these sales, same location revenue was flat.
The company completed over $30 million in asset sales under its 36-month, $100 million asset rotation strategy, using proceeds to reduce debt and potentially repurchase shares or acquire higher quality assets.
Mobile Infrastructure reaffirmed its 2026 guidance, expecting total revenue between $35 million and $38 million and NOI growth of 7% at the midpoint.
The company emphasizes utilization improvements, with an 8 percentage point increase year-over-year, and plans to leverage this into rate increases as markets stabilize.
Management highlighted strategic value in owning irreplaceable urban land assets with potential for adaptive reuse.
Full Transcript
OPERATOR
Hello and welcome to Mobile Infrastructure’s first quarter 2026 earnings conference call. At this time all participants are in a listen only mode. After the speakers’ presentations, 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 Codery. You may begin.
Casey Codery (Moderator)
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’s 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 10K and its most recent quarterly report on Form 10Q. 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 Mobil 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 10Q 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 Stephanie Hogue to discuss the first quarter 2026 performance.
Stephanie Hogue (Chief Executive Officer)
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 a metric. We are reporting for the first time Today, same location Net Operating Income (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 Net Operating Income (NOI) now blends two stories, how the operating portfolio performs and how the rotation reshapes it. Same Location Net Operating Income (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 Net Operating Income (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 Net Operating Income (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 portfolio’s Net Operating Income (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 8 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 in 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 …
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