Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $9.2 million, a 16% increase from $7.9 million in Q4 2023 [29] - Full year revenue reached $37 million, up 22.3% year-over-year [34] - Net operating income (NOI) for Q4 2024 was $5.5 million, a 1% increase from the previous year [33] - Adjusted EBITDA for Q4 2024 was $3.9 million, up 16% from $3.3 million in Q4 2023 [34] - Total debt outstanding at the end of 2024 was $213.2 million, compared to $192.9 million at the end of 2023 [35] Business Line Data and Key Metrics Changes - The conversion of 29 parking assets to management contracts has led to higher revenue recognition based on usage rather than cash collections [30] - Revenue per available stall (RevPAS) increased 1% year-over-year to $200.44 per stall in Q4 2024 [31] - Property operating expenses rose to $1.9 million from $0.5 million in the previous year's fourth quarter due to the shift to management contracts [32] Market Data and Key Metrics Changes - The company noted a significant increase in demand for 24x7 parking access due to the conversion of Class B downtown office spaces to residential apartments [13] - Utilization rates have picked up in early 2025, indicating a positive trend in demand [15] Company Strategy and Development Direction - The company is implementing a 36-month asset rotation strategy to divest non-core assets and reinvest in larger, more profitable parking assets [21][22] - The management team is focused on optimizing the portfolio to enhance shareholder value and is exploring strategic actions to address the gap between net asset value and share price [41][42] - The company is preparing for future trends such as autonomous vehicles by investing in features like EV charging and gateless entry systems [36][37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth in contract parking revenue and a recovery in transient volumes in 2025 [40] - The impact of corporate parking contract cancellations is believed to be behind the company, with expectations for improved utilization moving forward [12] - The redevelopment of the Detroit property is expected to have a significant positive impact on NOI once completed, projected for 2028-2030 [18][56] Other Important Information - The company repurchased 420,000 shares in 2024, reflecting confidence in its long-term prospects [23][27] - The company has a substantial pipeline of potential acquisitions, leveraging deep industry experience and relationships [22] Q&A Session Summary Question: Can you talk about the property capital recycling plan and expected dispositions? - The company is analyzing its portfolio to identify assets with the highest and best use, aiming to reposition it for consistent revenue growth [48][49] Question: What is the likelihood of significant transaction volume in 2025? - The objective is to be under contract for about a third of non-core assets by the end of 2025 [51] Question: How meaningful could proceeds from divestitures be for acquisitions? - Proceeds from asset sales could exceed $100 million, with a focus on fewer, larger parking assets [78] Question: What is the RevPAS growth assumption baked into guidance? - Most RevPAS growth is expected from utilization rather than rate growth [88]