Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $9.1 million, down from $9.8 million in Q3 2024, primarily due to lower transient volumes and ongoing construction impacts [16][19] - Net Operating Income (NOI) was $5.5 million, slightly up sequentially but down from $6.1 million year-over-year, reflecting lower transient volumes [18] - Revenue per available stall (revpass) was $212, consistent with Q2 2025 but down 7.1% from $228 in Q3 2024 [17] Business Line Data and Key Metrics Changes - Contract parking volumes increased 1.4% sequentially and 8% year-to-date, while transient volumes were down approximately 5% year-over-year [5][6] - Residential monthly contracts increased approximately 75% year-over-year, now representing about 35% of trailing 12-month management agreement revenue [9] Market Data and Key Metrics Changes - Several core downtown markets experienced temporary headwinds, including lower hotel occupancy and event cancellations, impacting transient traffic [6][11] - Cleveland showed positive trends with transient growth of 8% in Q3 2025 compared to Q3 2024, alongside strong growth in residential and commercial monthly contracts [9][10] Company Strategy and Development Direction - The company is focusing on optimizing its portfolio by segmenting core and non-core assets, with plans to sell approximately $30 million in non-core assets by year-end [12][13] - A strategic emphasis on residential parking is seen as a long-term growth driver, with ongoing investments in EV charging infrastructure [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term value creation despite short-term challenges, particularly in markets like Cincinnati and Nashville where redevelopment projects are underway [21][22] - The company believes that the portfolio is undervalued compared to its net asset value (NAV) and expects recognition of this value as temporary disruptions subside [23] Other Important Information - The company completed a $100 million refinancing via asset-backed securitization, enhancing capital flexibility and allowing for the sale of non-core assets [19][20] - The published NAV is $7.25 per share, with ongoing stock repurchases as a key focus area for capital deployment [20] Q&A Session Summary Question: Top-line performance outlook for Q4 2025 - Management indicated a mixed outlook, with some easing expected in Denver and Nashville due to ongoing construction projects [25] Question: Use of proceeds from $30 million asset sales - Proceeds will primarily focus on repaying the line of credit in the near term, with potential for acquisitions evaluated monthly [26][27] Question: Impairment details for the quarter - An impairment of $2.5 million was related to normal fair value testing coinciding with the asset rotation strategy [28][30] Question: Attractiveness of the ABS transaction - The ABS transaction was attractive due to the flexibility it provides for selling non-core assets, which were previously restricted under CMBS debt [31][40] Question: Impact of transient traffic disruptions - Management noted that transient traffic disruptions are largely due to ongoing construction, which is expected to have long-term positive effects [35] Question: Actions to improve retention and utilization - The focus is on increasing utilization through monthly contracts and stabilizing the base before leveraging pricing [36][38] Question: Changes in residential monthly contract growth - The leasing pace for apartments is slower than expected, impacting contract additions, but pricing remains competitive [39] Question: NOI impact from asset sales - The expected NOI impact from the $30 million in sales is nominal, under $1 million [58]