Bryan Maher's questions to Mobile Infrastructure (BEEP) leadership • Q3 2024
Question
Bryan Maher asked for quantification of the company's statement that asset replacement cost is significantly higher than Net Asset Value (NAV). He also inquired about the risks of losing acquisition targets, the company's preference between parking lots and garages, and whether the recent Indianapolis property sale was solicited.
Answer
Manuel Chavez, an executive, explained that replacement cost is determined by combining land value and construction costs, which the company actively monitors. He stated that the acquisition pipeline is dynamic and the company remains a patient, disciplined buyer, passing on deals that don't offer material accretion. Regarding asset types, Chavez noted they underwrite to parking income for both lots and garages. He clarified the Indianapolis sale originated from an unsolicited offer that was less than half the final price, which was achieved by finding a developer who valued the site based on its land value.