BEEP — Mobile Infrastructure Corporation

Summary of BEEP Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Total Revenue: $7.9 million, down from $8.2 million year-over-year, primarily due to the sale of four assets in 2025. Same location revenue remained flat at $7.9 million.
• Same Location NOI: Increased by 4.4% year-over-year to $4.6 million, driven by expense discipline and lease to management agreement conversions.
• RevPAR: $184, flat year-over-year; $186 excluding Detroit, which is undergoing redevelopment.
• Adjusted EBITDA: Rose to $3 million, an 8.6% increase from $2.7 million in Q1 2025.
• Debt Reduction: Total debt decreased to $200 million from $207.7 million, with $22.6 million repaid using proceeds from asset sales.

2. Strategic Updates and Business Highlights

• Asset Rotation Program: Exceeded $30 million in proceeds from asset sales, with a weighted average cap rate of approximately 2%. This program is part of a 36-month strategy aimed at optimizing the portfolio.
• Utilization Growth: Portfolio utilization improved by 8 percentage points year-over-year, with a significant increase in management agreement contracts.
• Contract Parking Volumes: Grew by 6% year-over-year, with notable increases in Cincinnati (24%), Cleveland (19%), and Fort Worth (10%).
• Focus on Technology and Pricing: Continued emphasis on optimizing operations through technology and dynamic pricing tools.

3. Forward Guidance and Outlook

• 2026 Revenue Guidance: Expected to be between $35 million and $38 million, reflecting approximately 4% growth year-over-year.
• NOI Guidance: Projected between $21.5 million and $23 million, indicating 7% growth at the midpoint.
• Adjusted EBITDA Guidance: Forecasted to range from $15 million to $16.5 million, representing a 10% year-over-year increase at the midpoint.
• The guidance is underpinned by anticipated contract volume growth and the reopening of venues.

4. Bad News, Challenges, or Points of Concern

• Revenue Decline: The overall revenue decline due to asset sales may raise concerns about organic growth.
• Flat Same Location Revenue: While NOI grew, the flat same location revenue indicates potential challenges in driving top-line growth.
• Market Sensitivity: The business remains sensitive to economic conditions, particularly in urban areas where parking demand can fluctuate.

5. Notable Q&A Insights

• Asset Sale Cap Rates: Management confirmed that the cap rates for recent asset sales are hovering around 2%, reflecting strong market demand for well-located urban land.
• Debt Prioritization: Management emphasized that paying down the line of credit is the most accretive use of proceeds from asset sales, followed by stock buybacks and selective acquisitions.
• Utilization Insights: Utilization is viewed as critical, with management noting that stabilized assets can exceed 100% utilization, allowing for pricing leverage.
• Return to Office Trends: There is a consistent increase in demand for parking from companies bringing employees back to the office, particularly in larger blocks rather than individual requests.

Overall, BEEP's Q1 2026 results reflect solid execution of its strategic initiatives, although challenges related to revenue growth and market conditions remain. The company is optimistic about its future performance, supported by ongoing asset rotation and utilization strategies.