Mobile Infrastructure Corp.'s Q4 2024: Discrepancies in Asset Disposition and Revenue Growth Strategies

These are the key contradictions discussed in Mobile Infrastructure Corporation's latest 2024Q4 earnings call, specifically including: Asset Disposition Strategy and Revenue Growth Expectations:



Revenue and Profit Growth:
- Mobile Infrastructure Corporation reported revenue of $9.2 million in Q4 2024, up 16% from the previous year, and $37 million for the full year, up 22.3% year-over-year.
- The growth was driven by the successful conversion of leases to management contracts, increased utilization from the conversion of office spaces to residential, and the optimization of the company's portfolio.

Net Operating Income and EBITDA:
- The company's net operating income (NOI) for Q4 2024 was $5.5 million, representing a 1% increase from the previous year, and the full year NOI was $22.6 million, up 7.2%.
- Adjusted EBITDA for the year increased by 6.9% to $15.8 million. This growth is attributed to increased revenue from managed locations and operational efficiencies, despite some headwinds from the post-pandemic attrition.

Portfolio Optimization and Refinancing:
- Mobile Infrastructure completed $87.5 million in refinancings in Q4 2024, extending its debt maturities to 2027-2034.
- Additionally, the company plans to divest certain non-core assets, generating proceeds estimated to be north of $100 million, which will be used for acquiring parking assets that offer multiple demand drivers and higher net operating income opportunities.

Asset Redemption and Share Repurchase:
- The company redeemed preferred shares in cash rather than issuing common shares, reducing its preferred share balance to $20.1 million from $39.5 million at the start of the year.
- Mobile Infrastructure also initiated a $10 million share repurchase program, buying back 420,000 shares by the end of 2024, reflecting its confidence in the company's long-term prospects and the undervalued share price.