Mobile Infrastructure (BEEP) - 2025 Q2 - Quarterly Results

Executive Summary & Business Update Second Quarter 2025 Performance Overview Mobile Infrastructure Corporation's Q2 2025 performance met expectations, remaining stable year-over-year despite construction and weather impacts, with growth in contract parking and higher transient parking rates offsetting volume decline - Q2 2025 performance met expectations, largely stable year-over-year despite adverse construction and weather-related factors[2] - Contract parking volume grew 2.5% in Q2 and 6.6% year-to-date, reflecting the company's strategic focus on improving asset utilization[2] - Transient parking volume continued to decline due to unfavorable weather, fewer special events and lower attendance, and construction impacts at some locations[2] - Despite the decline in transient parking volume, rates increased both year-over-year and quarter-over-quarter, indicating strong positioning of core assets driven by multiple demand factors[2] Strategic Initiatives The company is disciplined in managing operating and G&A expenses, implementing a three-year asset rotation strategy to divest non-core assets, optimize the balance sheet, and reinvest in assets with higher NOI potential - The company maintains disciplined management of operating and general and administrative expenses to achieve significant operating leverage as revenue grows[3] - Refinancing discussions are underway for debt maturing in 2026 and 2027, aiming to increase financial flexibility and resources for long-term growth[3] - Progress is being made on a three-year asset rotation strategy, with active negotiations for approximately $20 million in asset sales[3] - Plans to utilize net proceeds from asset sales to optimize the balance sheet and reinvest in fewer, larger assets with multiple demand drivers and higher net operating income potential[3] - Target to divest approximately $100 million in non-core assets over the next three years[3] Outlook and Guidance The company anticipates similar business trends in H2 2025 as H1, with potential upside from seasonality and increased event participation, but full-year revenue and NOI guidance are expected at the low end due to key asset construction delays - Business trends in H2 2025 are expected to be similar to H1, with potential upside from seasonal factors and increased event participation and hotel occupancy in key markets[12] - Based on delays in key asset construction and year-to-date performance, the 2025 full-year revenue guidance ($37 million to $40 million) and Net Operating Income guidance ($23.5 million to $25 million) are expected to be at the low end of their respective ranges[12] - The company will continue to conservatively manage its balance sheet and focus on growing recurring cash flow and enhancing the long-term value of its portfolio[12] - Positioned to capture sustainable long-term demand and create shareholder value, benefiting from long-term trends such as urban residential revitalization and the return of office/hybrid work models[13] Financial Results Second Quarter 2025 Financial Highlights In Q2 2025, total revenue decreased by 3.0% year-over-year, net loss expanded to $4.7 million, NOI and Adjusted EBITDA declined, while interest expense significantly increased Key Financial Metrics for Q2 2025 | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | YoY Change (%) | | :------------------- | :----------------------- | :----------------------- | :----------- | | Total Revenue | 9.0 | 9.3 | -3.0% | | Net Loss | 4.7 | 2.5 | +88.0% | | Net Operating Income (NOI) | 5.4 | 5.6 | -3.5% | | Adjusted EBITDA | 3.8 | 4.1 | -7.3% | | Revenue Per Available Space (RevPAS) | 212 | 217 | -2.3% | - Interest expense for Q2 2025 was $4.7 million, a significant increase from $3.1 million in Q2 2024, primarily due to the revolving credit facility obtained in September 2024, with an outstanding balance of $29.5 million as of June 30, 2025[7] - As of June 30, 2025, the company held $15.9 million in cash, cash equivalents, and restricted cash, with total debt (including credit facility and notes payable) of $214.3 million[10] Consolidated Statements of Operations Total revenue decreased by 3.0% year-over-year in Q2 2025, mainly due to a significant reduction in percentage rent revenue, while net loss expanded significantly due to increased interest and D&A expenses, partially offset by lower G&A Consolidated Statements of Operations Summary for Q2 2025 (Thousands of USD) | Metric | Q2 2025 | Q2 2024 | YoY Change (%) | | :----------------------- | :------------- | :------------- | :----------- | | Managed Property Revenue | $7,441 | $7,226 | +3.0% | | Base Rent Revenue | $1,447 | $1,523 | -5.0% | | Percentage Rent Revenue | $104 | $517 | -79.9% | | Total Revenue | $8,992 | $9,266 | -3.0% | | Property Taxes | $1,779 | $1,809 | -1.7% | | Property Operating Expenses | $1,778 | $1,824 | -2.5% | | Depreciation and Amortization | $2,867 | $2,096 | +36.7% | | General and Administrative Expenses | $2,071 | $2,909 | -28.8% | | Total Expenses | $8,847 | $8,898 | -0.6% | | Interest Expense, Net | $(4,704) | $(3,087) | +52.4% | | Net Loss | $(4,661) | $(2,469) | +88.8% | | Net Loss Attributable to Common Stockholders | $(4,498) | $(1,843) | +144.1% | | Basic and Diluted Loss Per Share | $(0.11) | $(0.06) | +83.3% | Consolidated Balance Sheets As of June 30, 2025, total assets slightly decreased from year-end 2024, mainly due to lower net real estate investments, while total liabilities slightly increased and total equity decreased, reflecting the net loss impact Consolidated Balance Sheets Summary (Thousands of USD) | Metric | June 30, 2025 | December 31, 2024 | Change (%) | | :----------------------- | :------------- | :--------------- | :------- | | Net Real Estate Investments | $385,299 | $389,730 | -1.1% | | Cash and Cash Equivalents | $10,621 | $10,655 | -0.3% | | Restricted Cash | $5,234 | $5,164 | +1.4% | | Total Assets | $405,573 | $415,062 | -2.3% | | Notes Payable, Net | $184,745 | $185,921 | -0.6% | | Credit Facility | $29,535 | $27,238 | +8.4% | | Total Liabilities | $226,665 | $225,791 | +0.4% | | Equity Attributable to Mobile Infrastructure Corporation Stockholders | $160,635 | $169,983 | -5.6% | | Non-Controlling Interests | $18,273 | $19,288 | -5.2% | | Total Equity | $178,908 | $189,271 | -5.5% | Non-GAAP Financial Measures Net Operating Income (NOI) Net Operating Income (NOI), a supplemental measure of property-level operating trends, decreased by 3.5% year-over-year in Q2 2025 and 10.3% cumulatively for six months - NOI is defined as total revenue less property operating expenses and property taxes, used to evaluate property performance and operating trends[26] Net Operating Income (NOI) (Thousands of USD) | Metric | Q2 2025 | Q2 2024 | YoY Change (%) | | :----- | :------------- | :------------- | :----------- | | Net Operating Income | $5,435 | $5,633 | -3.5% | | H1 2025 Net Operating Income | $9,899 | $11,035 | -10.3% | Adjusted EBITDA Adjusted EBITDA, excluding interest, taxes, depreciation, amortization, and other non-recurring items, decreased by 5.6% year-over-year in Q2 2025 and 12.9% cumulatively for six months - Adjusted EBITDA reflects net income (loss) excluding specific items such as interest expense, depreciation and amortization, provision for income taxes, and share-based compensation expense[27][28] Adjusted EBITDA (Thousands of USD) | Metric | Q2 2025 | Q2 2024 | YoY Change (%) | | :----- | :------------- | :------------- | :----------- | | Adjusted EBITDA | $3,846 | $4,074 | -5.6% | | H1 2025 Adjusted EBITDA | $6,595 | $7,569 | -12.9% | Net Asset Value (NAV) As of June 30, 2024, the company's fully diluted NAV per share was $7.25, based on a 4.0% implied capitalization rate, with annual NAV updates planned Net Asset Value Estimation as of June 30, 2024 (Thousands of USD) | Metric | Estimated Value | | :--------------------------- | :--------- | | Real Estate Investments | $546,130 | | Cash and Restricted Cash | $13,314 | | Other Assets | $7,647 | | Total Assets | $567,091 | | Notes Payable and Revolving Credit Facility, Net (at Fair Value) | $179,601 | | Accrued Preferred Dividends | $9,864 | | Other Liabilities | $11,758 | | Total Liabilities | $201,223 | | Preferred Stock | $33,782 | | Total Estimated Net Asset Value | $332,086 | | Fully Diluted Shares Outstanding | 45,820,367 | | Fully Diluted Net Asset Value Per Share | $7.25 | - The estimated value is based on applying a 4.0% implied capitalization rate to the trailing twelve months Net Operating Income (TTM NOI) of properties owned as of June 30, 2024[31] - The company expects to update its NAV as of December 31, 2025, and annually thereafter[31] - NAV is not a GAAP measure, and its valuation is based on numerous assumptions, estimates, forecasts, and judgments that may prove inaccurate or incomplete over time[33] Corporate Information About Mobile Infrastructure Corporation Mobile Infrastructure Corporation, a Maryland company, owns a diversified portfolio of 40 parking facilities across the US, comprising 15,100 parking spaces, approximately 5.2 million square feet of parking, and 200,000 square feet of retail/commercial space - The company owns 40 parking facilities in 20 different markets across the United States, totaling 15,100 parking spaces and approximately 5.2 million square feet of parking space[20] - The company also owns approximately 200,000 square feet of retail/commercial space adjacent to its parking facilities[20] Forward-Looking Statements This press release contains forward-looking statements based on current expectations and assumptions, involving numerous risks and uncertainties, where actual results may differ materially due to factors like competition, financing ability, and economic conditions - Statements in this press release that are not historical facts are forward-looking statements, including those regarding Net Operating Income and revenue projections, economic performance trends, and the impact of strategic model changes[17] - Forward-looking statements are based on the company's current expectations, plans, estimates, assumptions, and beliefs, involving numerous risks and uncertainties, and actual results may differ materially[18] - Factors that could materially and adversely affect operations and future prospects include, but are not limited to: the company potentially continuing to incur losses, inability to implement investment strategies, intense competition, and inability to obtain attractive financing[18] - The company undertakes no obligation to publicly update or revise any forward-looking statements after the date of this press release, and investors should not place undue reliance on these statements[19] Investor Relations & Contact The company will host a conference call on August 12, 2025, to discuss Q2 results, offering registration and webcast options, and providing investor contact details - The company will host a conference call on August 12, 2025, at 4:30 PM ET to discuss Q2 2025 results[15] - Participants can register to receive dial-in numbers and a PIN, or access a live webcast via the investor relations section of the company's website[15] - A replay of the webcast will be available for one year in the 'News & Events' section of the investor relations website[16] - Investor contacts: David Gold, Lynn Morgen, email: beepir@advisiry.com, phone: (212) 750-5800[21]