Mobile Infrastructure Q1 Earnings Call Highlights
Mobile Infrastructure (NASDAQ:BEEP) reported first-quarter 2026 results that management said reflected progress on utilization, contract growth and asset sales, while reaffirming its full-year outlook.
Chief Executive Officer Stephanie Hogue said the company’s first-quarter performance showed “solid execution” against the initiatives it outlined for 2026, including driving utilization and contract growth and advancing the first phase of its asset rotation program. She said higher residential demand and continued return-to-office momentum helped lift contract parking volumes by approximately 6% year over year.
Contract parking represented approximately 38% of the company’s management agreement revenue during the quarter, Hogue said.
Same-location NOI rises as revenue remains stable
Mobile introduced a new metric on the call: same-location net operating income, or Same-Location NOI. Hogue said the metric is intended to give investors a clearer view of the operating portfolio as the company continues its three-year, $100 million asset rotation strategy.
“Total portfolio NOI now blends two stories: how the operating portfolio performs and how the rotation reshapes it,” Hogue said. “Same-Location NOI strips out the noise from rotation timing and gives investors a clean period-over-period view of the operating portfolio.”
Same-Location NOI increased 4.4% year over year to $4.6 million from $4.4 million. Hogue said Same-Location revenue was approximately flat at the operating level, while NOI growth was driven by expense discipline and conversions from lease structures to management agreements completed over the past year.
Chief Financial Officer Paul Gohr said total revenue was $7.9 million in the first quarter, compared with $8.2 million in the prior-year period. He attributed the decline primarily to four assets sold in 2025. Excluding those dispositions, Same-Location revenue was $7.9 million, essentially flat from the prior year.
Gohr said the flat revenue comparison did not fully reflect underlying activity, noting that transactions and contract volumes increased across the portfolio while the company accepted near-term rate compression in certain markets to build occupancy.
Utilization and contract parking improve
Hogue said portfolio utilization ended March roughly 8 percentage points higher than a year earlier and ahead of the company’s planned utilization. She described parking as “a utilization-driven business with daily perishable inventory,” adding that as assets approach stabilized occupancy, the company gains more flexibility to optimize rates and parker mix.
The portion of the management agreement portfolio operating above 80% utilization rose 750 basis points year over year in the first quarter, according to Hogue. She said that higher utilization allows the company to consider rate expansion across certain rate bands and parker types.
Several markets posted notable contract parking gains:
- Cincinnati contract counts grew approximately 24% year over year across three garages.
- Cleveland contract counts increased approximately 19%, with rates beginning to follow utilization.
- Fort Worth contract counts rose approximately 10%.
Hogue said the company is following a “volume first, rate second” strategy, building occupancy first and then raising rates as markets stabilize. In the question-and-answer session, she said utilization is the company’s most important measure of asset performance because parking stalls can turn multiple times per day.
Hogue also said return-to-office trends were helping demand across the portfolio, with companies seeking larger blocks of parking spaces. She said the company is seeing interest from employers that need 500 to 1,000 spaces as they bring employees back full time, particularly in the Midwest and Texas, though she described the trend as broadly present across the portfolio.
Asset rotation proceeds top $30 million
Management said Mobile continued to advance its 36-month, $100 million asset rotation program. Hogue said cumulative proceeds from assets sold under the program have exceeded $30 million at a weighted average implied cap rate of approximately 2%.
Gohr said the Honolulu disposition was the fifth asset closed under the program. In connection with that sale, the company paid down $8.1 million of mortgage principal on its CMBS facility. He also said Mobile paid an additional $4.5 million toward its line of credit in April.
Total debt outstanding was $200 million at March 31, down from $207.7 million at the end of the prior quarter. Gohr said the company has repaid $22.6 million of debt using proceeds from the asset rotation strategy. Mobile ended the quarter with $14.2 million of cash equivalents and restricted cash.
Hogue said reducing the cost of capital remains a primary use of disposition proceeds. In response to a question from Marc Riddick of Sidoti, she said paying down the company’s line of credit is currently the “most accretive use of proceeds.” She said other potential uses include share repurchases and selective acquisitions in markets where management has strong conviction for growth.
Expenses decline and adjusted EBITDA improves
Property taxes were $1.5 million in the first quarter, compared with $1.9 million in the prior-year period. Property operating expenses were $1.8 million, compared with $1.9 million a year earlier. Gohr attributed the reduction in property taxes to the company’s property tax appeal management process and said stable operating expenses reflected expense discipline despite inflationary pressures.
General and administrative expenses were $2.4 million, flat with the first quarter of 2025. The current quarter included $0.8 million of non-cash stock-based compensation, compared with $0.7 million in the prior-year quarter.
Adjusted EBITDA was $3.0 million, up 8.6% from $2.7 million in the first quarter of 2025. Gohr said the improvement illustrated operating discipline despite flat revenue.
Revenue per available stall, or RevPAS, was $184 in the quarter, approximately flat year over year. Hogue said that excluding Detroit, where redevelopment-related dislocation remains a near-term factor, RevPAS was $186, slightly higher than a year earlier. On a trailing 12-month basis, RevPAS was $200, or $196 excluding Detroit.
Company reaffirms 2026 guidance
Mobile reaffirmed its full-year 2026 guidance. The company continues to expect total revenue of $35 million to $38 million, representing approximately 4% growth at the midpoint over 2025 results and approximately 8% growth on a same-location basis.
NOI is expected to range from $21.5 million to $23.0 million, representing 7% year-over-year growth at the midpoint and 10% growth on a same-location basis. Adjusted EBITDA is forecast at $15.0 million to $16.5 million, representing 10% year-over-year growth at the midpoint and 13% growth on a same-location basis.
Gohr said the outlook is supported by expectations for continued contract volume growth, benefits from venue reopenings and recoveries across the portfolio, and positive impacts from technology and pricing optimization initiatives. He noted that the guidance does not include any future asset sales or acquisitions under the asset rotation program.
In closing remarks, Hogue said Mobile’s portfolio consists of well-located land and access points in central business districts, which she described as hard assets with long-term optionality. She said the company remains focused on driving utilization, converting utilization into rates, rotating non-core assets at private-market valuations, deleveraging and optimizing its operating model.
About Mobile Infrastructure (NASDAQ:BEEP)
Mobile Infrastructure Corporation is a Maryland corporation. The Company owns a diversified portfolio of parking assets primarily located in the Midwest and Southwest. As of December 31, 2023, the Company owned 43 parking facilities in 21 separate markets throughout the United States, with a total of 15,700 parking spaces and approximately 5.4 million square feet. The Company also owns approximately 0.2 million square feet of retail/commercial space adjacent to its parking facilities.
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