Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $9 million, down from $9.3 million in Q2 2024, primarily due to lower transient volumes influenced by adverse weather and fewer special events [17][19] - Net Operating Income (NOI) decreased by 3.5% year over year to $5.4 million, attributed to lower transient volumes [19] - Adjusted EBITDA was $3.8 million, down about 6% from $4.1 million in the prior year, with an adjusted EBITDA margin of 42.8% [20] Business Line Data and Key Metrics Changes - Contract parking grew, with monthly contracts increasing by 2.5% during the quarter and over 6.5% year to date, particularly strong in residential monthly contracts, which rose by 44% since year-end [7][8] - Transient pricing saw a year-over-year increase, reflecting the positioning of garages and the ability to drive rates even in a lower volume environment [6] Market Data and Key Metrics Changes - Portfolio level utilization was slightly below last year's levels, with declines concentrated in three markets due to construction and development activities [11] - In Cleveland, contract revenue increased nearly 30% year over year, driven by residential and traditional office contracts [9] Company Strategy and Development Direction - The company is focused on an asset optimization strategy aimed at unlocking $100 million from non-core assets over three years, with $20 million in active negotiations for asset sales [16] - The strategy includes redeploying proceeds into select parking assets to enhance net operating income potential [16] Management's Comments on Operating Environment and Future Outlook - Management noted that while the second quarter faced challenges, the long-term value of assets is expected to improve as construction projects conclude and demand drivers return [5][14] - The company anticipates that the second half of 2025 will see business trends similar to the first half, with potential seasonal tailwinds from increased event attendance and hotel occupancy [25] Other Important Information - The company has maintained a stable balance sheet with total debt outstanding at $214 million, flat compared to the previous year [21] - The published NAV is $7.25 per share, indicating a material discount relative to the stock price [22][23] Q&A Session Summary Question: What are the parameters of the $20 million potential dispositions? - The company is not disclosing the number of properties but expects pricing to be similar to previous asset sales at significant multiples of parking income [31] Question: How are you planning to address the line of credit maturity? - The company is evaluating refinancing options and is confident in working with supportive lenders to manage the maturity [32] Question: How does the guidance flow through to EBITDA? - The company has significant operating leverage and is focused on monthly contracts, with strong cost controls in place to drive NOI [34] Question: What is the transient performance outlook for Q3? - Transient performance in Q2 improved over Q1, but was impacted by weather and construction, with expectations for improvement as construction concludes [36][37] Question: Can you clarify the contract parking trend? - Contract parking demand is slightly slower than expected, particularly in residential areas, but long-term trends remain positive [42][43] Question: Is there significant competition for the assets in the market? - There is significant demand for parking assets, with various buyers interested, providing the company with optionality [50]