Good day and welcome to the Mobile Infrastructure Corporation First Quarter 2025 Earnings Conference Call. [Operator Instructions] This event is being recorded. I would now like to turn the conference over to Casey Kotary, Investor Relations Representative. Please go ahead.

Thank you, operator. Good morning, everyone and thank you for joining us to review Mobile’s first quarter 2025 performance. With us today from Mobile are Manuel Chavez, CEO; and Stephanie Hogue, President. In a moment, we will hear management’s statements about the company’s results of operations as of the first quarter of 2025. Before we begin, we would like to remind everyone that today’s discussion includes forward-looking statements, including projections and estimates of future events, business or industry trends and business or financial results. Actual results may vary significantly from those statements and maybe affected by the risks Mobile has identified in today’s press release and those identified in its filings with the SEC, including Mobile’s most recent annual report on Form 10-K and its most recent quarterly report on Form 10-Q. Mobile assumes no obligation and does not intend to update or comment on forward-looking statements made on this call. Today’s discussion also contains references to non-GAAP financial measures that Mobile believes provides useful information to its investors. These non-GAAP measures should not be considered in isolation from or as a substitute for GAAP results. Mobile’s earnings release and the most recent quarterly report on Form 10-Q provide a reconciliation of those measures to the most directly comparable GAAP measures and a list of reasons why Mobile uses these measures. I will now turn the call over to Mobile’s CEO, Manuel Chavez, to discuss first quarter 2025 performance. Manuel?

Thank you, Casey and thank you all for participating in today’s call to review our first quarter results and discuss our business outlook. To start off, underlying operating metrics moved in the right direction and the strategic pillars we detailed in March are firmly on track. That said seasonal headwinds and some other factors muted top line growth in Q1. Our infrastructure and consumer win, combined with improved data, is guiding disciplined capital deployment in positioning Mobile Infrastructure for value creation. Before we get into the details, I’d like to reground you on the long-term journey that guides our actions. When we spoke in early March barely 7 weeks ago, we set out a multiyear, multi-pronged strategy consisting of two primary focus areas. Our first focus area, as expected, is to continue to convert the balance of our core portfolio into management agreements, driving increased utilization via increasing our monthly residential and commercial contracts. The second focus area is our portfolio optimization strategy in which we aim to rotate out certain parking assets that have greater value for alternative stakeholders than they do as long-term assets in our portfolio into new assets that more closely align with the key characteristics of our core portfolio, ultimately, maximizing value for our Mobile shareholders. As a reminder, our core portfolio is defined as parking structures that are near multiple demand drivers and likely clustered close to assets that are already in our portfolio. We believe rotating the non-core segment of Mobile’s portfolio can generate at least $100 million of proceeds that can be used to reinvest into our robust acquisition pipeline. Second, our team sees a meaningful opportunity to further leverage data and enhance processes and use rigorous management of our core portfolio to increase asset utilization and grow NOI. Because specialized parking…

Good morning, everyone, and thank you, Emmanuel. My remarks today will move through three interconnected topics: our balance sheet efforts, the financial performance of our assets and importantly, our path forward. Starting with our balance sheet. As you recall, last September, we put a $40 million credit facility in place to give holders of our preferred stock, a cash option rather than converting into common shares and immediately selling in the open market, which not only would have resulted in substantial dilution but also created a downward pressure on a similarly traded stock. In addition, and as importantly, we reinstated the dividend to those shareholders, which was a core reason that they made the investment in the first place. That facility is doing its job. During the first quarter, we redeemed just $1.2 million of preferred, which is the lowest quarter of redemptions or conversion since early 2024. The preferred outstanding now sits at $19 million, down from $39.5 million at the start of last year. At the same time, we continue to repurchase common shares. We have repurchased approximately 82,000 shares this quarter at an average price of $3.23. Our internal NAV remains $7.25 per share which does not assess for their operational value or replacement value premiums. Considering material discount of Mobile stock price relative to NAV, we intend to continue taking potential dilution off the table by settling preferred redemptions with cash and buying back our stock in the open market. This dovetails into our financing strategy. After refinancing $87.5 million of secured debt late last year, we are now working through our debt maturities through 2027 and evaluating alternative structures that offer flexibility around our capital rotation strategy of non-core assets. Traditional CMBS is restricted with asset sales, redeployment of capital and operating changes like leases…

[Operator Instructions] The first question comes from John Massocca with B. Riley. Please go ahead.

Good morning.

Good morning John.

Just focusing in on some of the headwinds in 1Q ‘25, obviously, weather probably shouldn’t be a factor, at least in 2Q and 3Q as much. But things around, for instance, the convention center remodel in Cincinnati or maybe other construction things that were called out. I mean could those have longer tails – could that be kind of affecting the rest of the year here?

The convention center redevelopment in Cincinnati, actually, the completion timeframe was moved up. And as of late, they are expecting opening of that in December of this year or January of next year. We also had some street closures associated with exterior facade, in some apartment building redevelopments, which are coming to completion as well.

Okay. And anything else on the operating expense side in the quarter that – is it one-timer, should maybe more permanent, I thought I remember in the press release something around security was kind of called out. Just curious if there is any – how we should kind of think about that OpEx number going forward.

Yes . Security definitely has been an expense that we are seeing through the portfolio. There was an element of expense though, in this quarter that was moved forward. So, it was planned R&M for the year that just came up either timing or it was the right opportunity to do it. So, we expect that, that is on line with guidance through the year.

Okay. And then the Renaissance Center in Detroit splitting it out from RevPAS, is that kind of an indication that that asset maybe is potentially going to be a drag on kind of the overall portfolio in the near to intermediate-term, just given some of the secular things going on with that specific assets, or just kind of curious what the outlook for that specific asset is, just given you split up from the rest of the portfolio.

Yes. Detroit is one of our biggest markets, and that asset is a premier riverfront location, but connected directly to the Renaissance Center. And so what’s happened is that asset has moved from a revenue perspective. It’s moved to a trough much more quickly than we anticipated, which is disappointing on one hand, but on the other hand, it says that the sort of movement of current tenants in the Renaissance Center is happening more quickly, meaning they are moving out, which should make way for the redevelopment. The downward pressure on our overall performance once this asset does truly hit the trough, that downward pressure will lessen up, but we wouldn’t anticipate any type of real growth there outside of some potential construction – construction worker parking, outside of that we wouldn’t anticipate any real growth until the redevelopment is completed there.

Is there a rough timeframe for when you would expect that asset to kind of trough or maybe we already gotten there?

I think we are getting pretty close.

Okay. And then you called out debt a little bit – looking for maybe alternative sources of kind of debt capital that are more adhesive to your operating model. I mean can you provide a little more color on the conversations you are having today and maybe kind of a rough timeline for when we might expect something on the refinancing to that extent?

Yes. John, most of our maturities are ‘26 and ‘27, so we are moving a little bit faster from a refinancing perspective than we would otherwise. One of the challenges as you look at our portfolio is you have a lot of CMBS portfolios that were done kind of prior to 2020. And they are restrictive in what and when we can sell assets. As you know, the non-core asset piece of our strategy is really important. So, we will have more to come later this year. We have been working on it, as you know, markets are somewhat volatile. So, working to really find the right answer for the company long-term that allows us to execute quickly on sales as they come, but also recycle that capital into assets that look more like the core portfolio. So, I would say later this year, we will have more detail, but working on it to give us really a lot of flexibility within the portfolio.

Okay. That’s it for me. Thank you very much.

Thanks John.

Thanks John.

[Operator Instructions] Your Next question comes from Kevin Steinke with Barrington Research. Please go ahead.

Hey. Thanks. Good morning. I just want to start off by asking about the improved contract parking demand trends you are seeing and maybe how sustainable that is? And then you also mentioned initially some pricing sensitivity around monthly commercial parking, although you mentioned that could kind of go away as the utilization builds. So, maybe just kind of the timeline of how that typically works in terms of maybe when pricing sensitivity lessens in response to higher utilization.

Yes. That’s a great question. I would say it’s sort of a tale of two stories. Transient as we are seeing continued activity in downtown certainly slower than we expected in the first quarter, rates held. So, people that are coming downtown for whether it’s dinner events, why ever they are moving around the city there is not a lot of pricing sensitivity. But you are right, it is absolutely in kind of the return to office trend. Right now, there is a surplus in downtown parking because people have, by and large, not been working Monday through Friday in offices and City core. So, as that trend is shifting, we are getting a lot more inbound as opposed to just outbound of us calling, we are seeing our operators are reporting that they are getting more inbounds from people looking for large blocks of parking. As that continues and garages fill up, we will see that pricing power shift towards the company.

Okay. Thanks. And then you mentioned some momentum on the ancillary revenue initiatives specially calling out revenue sharing for EVs. It sounds like maybe some revenue generation coming from that later in the year, perhaps. Could you talk about that more? And how widespread that is in terms of across your asset portfolio?

Absolutely. We have EV and several of our garages. I would say, performance and utilization takes time to build. Customers need to know that it’s there that it is available, so it’s not that you put an EV charger and automatically, it’s 100% utilization. We are really focusing on garages that have that residential demand elements, because those are people that don’t have an alternative place necessarily to charge. They can’t drive home and plug it in at their house. So, EV charging will become more important. But it is one of the things that just takes probably several quarters before you really have insight in terms of utilization, and that’s subject to people knowing it’s there that they are using it consistently, and it’s priced accordingly.

Okay. Understood. Thanks for taking my questions.

Thanks for the questions.

This concludes our question-and-answer session and today’s conference call. Thank you for attending today’s presentation. You may now disconnect.