Mobile Infrastructure NASDAQ: BEEP reported higher same-location net operating income in the second quarter of 2026 as contract parking demand, recovering downtown markets and expense management supported operating results. The company reaffirmed its full-year outlook while continuing to pursue asset sales and debt reduction.
Chief Executive Officer Stephanie Hogue said a special committee of the board is actively reviewing and evaluating a recently submitted take-private proposal from Blackstone Alternative Asset Management. She said the company would not comment further on the matter during the call.
Same-Location Growth Driven by Utilization
Same-location NOI rose 12% year over year to $5.9 million in the second quarter, compared with $5.2 million a year earlier. Same-location revenue increased 5.6%, while reported total revenue was $8.9 million, down slightly from $9 million in the prior-year period due primarily to assets sold in 2025 and 2026.
Hogue said portfolio utilization averaged its highest quarterly level since the company took control of the portfolio in 2021 and began tracking the metric. Trailing 12-month utilization was approximately 70%, up five percentage points from 65% a year earlier, and increased in every month of the quarter.
Revenue per available space, or RevPAS, reached approximately $225 during the quarter, the highest second-quarter level in three years, according to Hogue. Trailing 12-month RevPAS exceeded $200.
The company’s strategy remains focused on raising occupancy before pursuing broader pricing increases. Hogue said rate actions are determined on an asset-by-asset and market-by-market basis rather than applied across the portfolio. In garages, she said stabilized utilization may fall between 80% and 100%, while parking lots can have substantially higher utilization because spaces turn over multiple times per day.
“Predominantly, the revenue expansion came from utilization growth,” Hogue said in response to an analyst question, adding that the company expects pricing power to increase once garages reach fuller occupancy.
Contract and Transient Demand Improved
Contract parking volume increased approximately 12% from a year earlier and 7% sequentially. Chief Financial Officer Paul Gohr cited gains in Cincinnati, Denver and Fort Worth. Hogue attributed the trend to return-to-office activity and newly leased residential units coming online across the company’s markets.
Transient revenue rose 4% across the portfolio, while average transient transactions increased 3% year over year. Management said the improvement was aided by the reopening of disrupted demand drivers, including Cincinnati’s convention center, as well as the completion of construction and redevelopment activity in markets including Cincinnati, Denver and Nashville.
Chicago also recorded transaction growth, which Gohr attributed to aggressive online marketing initiatives. Hogue said the company saw modest rate expansion in transient parking, but said the recovery in assets and venues returning online was the more substantial contributor to transient growth.
Management highlighted Chicago, Cincinnati, Milwaukee and Nashville as markets with strong operating metrics. In Milwaukee, an asset’s transition from a lease arrangement to a management contract gave Mobile greater ability to work directly with its operator, Hogue said.
The company enters the third quarter, historically its busiest period, with a larger contract parking base, growing utilization and a fuller event calendar. Hogue said sports, concerts, conventions, hotel stays and other downtown activity typically make the third quarter the most dynamic period for demand. Transient parking represents about two-thirds of company revenue, while contract parking accounts for roughly one-third, Gohr said.
Expenses, EBITDA and Balance Sheet
Property taxes declined to $1.4 million from $1.8 million in the prior-year quarter. On a same-location basis, property taxes were down $0.3 million, reflecting benefits from the company’s property tax appeal management process.
Property operating expenses were $1.6 million, compared with $1.8 million a year earlier. Same-location operating expenses increased $0.1 million, primarily because of the timing of repairs and maintenance. Gohr said second-quarter expenses were somewhat higher than anticipated but should moderate in the third and fourth quarters.
General and administrative expense increased to $2.6 million from $2.4 million. The current quarter included $0.8 million of non-cash stock-based compensation, unchanged from the prior-year quarter.
Adjusted EBITDA increased 5.5% to $4.1 million, compared with $3.8 million in the second quarter of 2025.
At June 30, the company had $10.9 million of cash equivalents and restricted cash, while net debt totaled $197.1 million, down from $200 million at the end of the first quarter. During the quarter, Mobile repaid $3.7 million of principal and $0.8 million of accrued interest on its line of credit. Gohr said the company has repaid $22.6 million of debt using proceeds from its asset rotation strategy.
Asset Sales and 2026 Outlook
Under its 36-month, $100 million asset rotation program, Mobile has generated more than $30 million in cumulative proceeds from asset sales at a weighted average implied capitalization rate of approximately 2%, according to Hogue. The company is negotiating about $25 million of potential transactions involving non-core assets.
Hogue said the transactions could close by year-end, though timing could move, and emphasized that the company is seeking the “right buyer” and “right price point.” Mobile is targeting sale transactions at sub-3% capitalization rates, she said.
The company reaffirmed its full-year 2026 guidance:
- Total revenue of $35 million to $38 million, including approximately 8% same-location growth at the midpoint.
- NOI of $21.5 million to $23 million, including 10% same-location growth at the midpoint.
- Adjusted EBITDA of $15 million to $16.5 million, including 13% same-location growth at the midpoint.
Management said the outlook reflects expectations for continued contract volume growth, venue reopenings and recoveries, and the effects of technology and pricing optimization initiatives. The guidance does not include future asset sales or acquisitions under the asset rotation program.
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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