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Mobile Infrastructure Corp (BEEP)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $9.16M, up 16% YoY; Adjusted EBITDA was $3.87M (+16% YoY), with a 42.3% margin; net loss narrowed to $1.0M, reflecting operational progress as 29 assets were converted to management contracts .
  • FY 2024 revenue finished at $37.0M, below the company’s prior FY 2024 guidance range ($38–$40M); FY NOI landed at $22.6M, within the $22.5–$23.25M guidance, while Adjusted EBITDA was $15.8M .
  • 2025 guidance was introduced: revenue $37–$40M, NOI $23.5–$25.0M, Adjusted EBITDA $16.5–$18.0M; management highlighted accelerating portfolio optimization (36‑month non‑core divestitures) and tailwinds from residential conversions near assets .
  • Potential stock catalysts: accelerated asset rotation with expected proceeds “north of $100M,” buybacks (420K shares repurchased in 2024), and visible secular demand drivers (return‑to‑office and office‑to‑residential conversions) .

What Went Well and What Went Wrong

What Went Well

  • Adjusted EBITDA grew 16% YoY to $3.9M with a 42.3% margin; NOI of $5.5M represented 60% of revenue, underscoring operating leverage as assets shift to management contracts .
  • Same‑location RevPAS increased 1% YoY in Q4 to $200.44 per stall; management cited targeted rate increases in November/December and attrition normalization as contributors .
  • Balance sheet actions: $87.5M of refinancings in Q4 extended substantially all secured maturities due in 2024–2025; preferred redemptions and a $10M buyback (420K shares repurchased) supported shareholder value .

What Went Wrong

  • FY 2024 revenue ($37.0M) missed the company’s prior guidance ($38–$40M), reflecting continued softness in transient demand and the accounting/expense impacts of the shift to management contracts .
  • Property operating expenses rose to $1.94M in Q4 (vs. $0.54M in Q4 2023) due to recognition of asset‑level expenses under management contracts; interest expense increased to $4.4M (vs. $3.0M) .
  • Detroit Renaissance Center garage remains under pressure; disruption is embedded in 2025 guidance, with upside only post‑redevelopment (2028–2030) despite meaningful long‑term NOI potential .

Financial Results

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$9.27 $9.76 $9.16
GAAP EPS ($USD)$(0.06) $(0.06) $(0.03)
Adjusted EBITDA ($USD Millions)$4.20 $4.50 $3.87
Adjusted EBITDA Margin (%)45.4% 46.2% 42.3%
NOI ($USD Millions)$5.63 $6.09 $5.50
NOI Margin (%)~60% ~62% ~60%

Segment/Revenue Components

Component ($USD Millions)Q2 2024Q3 2024Q4 2024
Managed Property Revenue$7.23 $7.98 $7.14
Base Rent Income$1.52 $1.54 $1.49
Percentage Rental Income$0.52 $0.24 $0.53

KPIs

KPIQ3 2024Q4 2024
Same‑Location RevPAS ($ per stall)$227.60 $200.44

Notes:

  • Q4 YoY revenue growth: +16% (from $7.9M in Q4 2023 to $9.2M headline; detailed revenue $9.157M per S/O table) .
  • Q4 YoY Adjusted EBITDA: +16% ($3.9M vs. $3.3M) .
  • Net loss improved materially YoY: Q4 2024 $(1.0)M vs. $(6.5)M Q4 2023 .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025N/A$37.0–$40.0M Introduced
Net Operating Income (NOI)FY 2025N/A$23.5–$25.0M Introduced
Adjusted EBITDAFY 2025N/A$16.5–$18.0M Introduced
RevenueFY 2024$38.0–$40.0M (Q3 reaffirmed) Outcome: $37.0M Lower than guidance
NOIFY 2024$22.5–$23.25M (Q3 reaffirmed) Outcome: $22.6M Achieved (within)

Note: Company did not provide 2024 Adjusted EBITDA guidance earlier; 2025 guidance excludes potential asset sales .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Return‑to‑office demandEarly signs; packages tailored to 2–3 day/week usage Inflection point; same‑location RevPAS turned positive YoY Continued utilization gains expected; demand strongest in healthcare, professional services, F&B, government Improving
Office‑to‑residential conversionsEngaged with developers; benefit timing into late 2024/2025 First projects delivering Q4; pipeline into 2025–2026 Mercantile leasing in Cincinnati began; 7 West 7 opening in April; multiple projects through 2027 Accelerating
Portfolio optimization/asset rotationBuilding disciplined pipeline; patient on acquisitions Sold Indianapolis lot for >$4.6M; realized stakeholder/developer premiums Launching 36‑month plan to divest non‑core assets; redeploy into fewer, larger, clustered assets Accelerating
RevPASIntroduced as KPI; placeholder for utilization/rate $227.60 (+1.6% YoY) $200.44 (+1% YoY); targeted rate increases in Nov/Dec; attrition normalized Stabilizing/improving
Balance sheet/refinancingRevolver flexibility; active refinancing work Expect to report successful actions by YE 2024 Completed $87.5M in Q4; extended maturities Strengthening
Preferred stock & buybacksAddressing conversion overhang; LOC to redeem preferred in cash LOC $40.4M; ~250K shares repurchased Preferred balance cut to $20.1M; 420K shares repurchased; $10M program Ongoing
Detroit (Renaissance Center) asset——Disruption embedded in 2025 guide; long‑term NOI uplift potential of 10–15% post‑redevelopment (2028–2030) Mid‑term headwind; long‑term upside
AV/EV readiness——Investing in AV‑friendly infrastructure: EV charging, gateless systems, marked lanes Early‑stage planning

Management Commentary

  • “This was our first full year as a publicly traded company…we successfully converted 29 of our 40 parking assets to management contracts from leases…completed three asset sales…took actions to build shareholder value” — Manuel Chavez .
  • “In Cincinnati, the Mercantile building began leasing in the fourth quarter of 2024…we have experienced a continued pickup in utilization…half a dozen similar projects underway…largest apartment building in Cincinnati, 7 West 7…connected to our One West 7 asset” — Manuel Chavez .
  • “We see a path forward for…Detroit…adjacent to the Renaissance Center…once completed (2028–2030)…potential to drive as much as a 10% to 15% increase in our consolidated net operating income” — Manuel Chavez .
  • “We began a $10 million share repurchase program in September…by the end of 2024, we repurchased 420,000 shares…completed $87.5 million of refinancings in the fourth quarter” — Stephanie Hogue .
  • “We are introducing initial 2025 guidance for revenue of $37 million to $40 million…NOI…$23.5 million to $25 million…Adjusted EBITDA…$16.5 million to $18 million” — Stephanie Hogue .
  • “Our shares are selling at a substantial discount to our net asset value of $7.25 per share…in 2024, we repurchased 420,000 shares” — Manuel Chavez .

Q&A Highlights

  • Asset rotation cadence: Under contract for ~one‑third of non‑core assets by year‑end 2025; proceeds could be “north of $100M” to redeploy into clustered, higher‑NOI opportunities .
  • Balance sheet: Evaluating options to address the line of credit and broader refinancing; more updates expected next quarter .
  • Detroit guidance: Disruption and stress on parking income already baked into 2025 guidance; construction‑related parking opportunities possible during redevelopment; upside later .
  • Demand mix/pricing: Residential contract parking is a 24/7 reserved product at higher rates than historical norms; RevPAS growth in 2025 expected to be driven more by utilization than rate .
  • RevPAS drivers: Attrition flattened/eliminated; targeted rate increases in Nov/Dec supported YoY RevPAS growth despite calendar headwinds .

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable due to data access limitations during this session. As a result, comparisons vs consensus cannot be provided at this time. Values would typically be sourced from S&P Global; unavailable in this instance.

Key Takeaways for Investors

  • Q4 delivered solid YoY growth: revenue +16% to ~$9.16M; Adjusted EBITDA +16% to $3.87M; net loss narrowed to $1.0M, reflecting the benefits of management contracts, targeted rate initiatives, and attrition normalization .
  • FY 2024 revenue missed prior company guidance ($37.0M vs $38–$40M), but FY NOI hit guidance ($22.6M); watch utilization trends and transient recovery into 2025 .
  • 2025 guide implies continued NOI and EBITDA expansion (NOI $23.5–$25.0M; EBITDA $16.5–$18.0M) driven by contract parking growth and modest transient uptick; excludes potential asset sales .
  • Asset rotation is a major near‑term catalyst: non‑core divestitures over 36 months; proceeds could exceed $100M, redeployed into clustered assets with multiple demand drivers and pricing advantages .
  • Detroit Renaissance Center garage is a visible headwind in 2025–2027 but offers significant upside (10–15% consolidated NOI lift) post‑redevelopment (2028–2030) .
  • Shareholder actions (preferred redemptions, 420K share buybacks, $87.5M refinancing) support value; NAV cited at $7.25/share; continued investor sponsorship and potential sell‑side coverage expansion may aid rerating .
  • Near‑term trading: monitor incremental updates on asset sale contracts, RevPAS/utilization progression, and refinancing of the line of credit; medium‑term thesis: secular demand from residential conversions and return‑to‑office, plus disciplined portfolio optimization should sustain margin/NOI growth .