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DATE

Monday, March 2, 2026 at 4:30 p.m. ET

CALL PARTICIPANTS

  • Chief Executive Officer — Stephanie L. Hogue
  • Chief Financial Officer — Paul M. Gohr
  • Executive Chairman — Manuel Chavez

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TAKEAWAYS

  • Total Revenue -- $8.8 million for the fourth quarter, down from $9.2 million, attributed to lower transient volumes and construction impacts.
  • Revenue per Available Stall (RevPASS) -- $190 in the fourth quarter, a 5% decline, reflecting lower rates and transient weakness; excluding Detroit, the decrease was 3.4%.
  • Contract Parking Growth -- Over 6,700 contracts at year-end baseline assets, representing 10% same-store sales growth and 12% growth excluding Detroit disruptions.
  • Residential Parking Contracts -- Increased approximately 60% year over year, driven by office-to-residential conversions in several markets.
  • Transient Volume -- Declined 6% during the year, primarily due to temporary market disruptions, while transient rates increased despite the volume decline.
  • Asset Dispositions -- Over $30 million in non-core assets sold or under contract, with an aggregate cap rate of approximately 2%.
  • NOI Fourth Quarter -- $5.3 million, down from $5.5 million, reflecting temporary factors.
  • Adjusted EBITDA Fourth Quarter -- $3.9 million, unchanged from the prior year, illustrating stability amid revenue decline.
  • Full-Year Revenue -- $35.1 million, down from $37 million, a 5.2% decrease resulting from short-term transient headwinds.
  • Same-Location RevPASS (Full Year) -- $199 compared to $209, a decrease of 4.7% in line with revenue trends.
  • Full-Year NOI -- $20.7 million compared to $22.6 million, with management attributing the decline to temporary venue-related disruptions.
  • Adjusted EBITDA (Full Year) -- $14.3 million versus $15.8 million, with management maintaining expense discipline and margin improvement focus.
  • Total Debt -- $207.7 million as of year-end, reduced from $213.2 million, with a $10 million line of credit paydown funded by asset sales.
  • Cash and Restricted Cash -- $15.3 million at year-end, down slightly from $15.8 million.
  • Stock Repurchases -- Over 1.6 million shares bought at an average price of $3.25 per share, targeting undervaluation versus net asset value.
  • 2026 Revenue Guidance -- $35 million to $38 million, representing 4% growth at the midpoint; on a same-portfolio basis, midpoint implies 8% growth.
  • 2026 NOI Guidance -- $21.5 million to $23 million, midpoint equates to 7% growth; adjusted for asset sales, guidance implies 10% NOI growth.
  • 2026 Adjusted EBITDA Guidance -- $15 million to $16.5 million, with 10% midpoint growth; on an adjusted basis, growth is approximately 13% due to NOI margin improvement and expense control.
  • Contract Parking Share -- Makes up approximately 35% of management agreement revenue, providing a recurring revenue base and future pricing leverage potential.
  • Asset-Backed Securitization -- $100 million transaction completed in the third quarter, adding three institutional investors, extending maturities, and supporting asset rotation flexibility.

SUMMARY

Mobile Infrastructure Corporation (BEEP 3.93%) emphasized execution of its asset rotation strategy, confirming over $30 million of non-core divestitures at low cap rates and line of credit reduction as key capital priorities. The company described positive operational signals, citing a measurable increase in contract parking and residential agreement volume linked to both office attendance trends and market-specific conversions. Operational discipline was reflected as adjusted EBITDA remained flat year over year, despite revenue declines, with further margin and earnings growth targeted for 2026. Management noted that major venue reopenings and completed construction projects are expected to drive sequential improvements, supporting guidance for both revenue and NOI recovery. Strategic statements referenced further technology adoption for customer experience and data-driven management, with a focus on asset-level operational optimization plans. Mobile Infrastructure Corporation remains committed to ongoing balance sheet deleveraging, opportunistic share repurchases, and adaptive capital allocation between debt paydown and future acquisitions.

  • Management stated asset disposals are weighted toward late-year closings, with ongoing pipeline activity and targeted buyer selection processes supporting future proceeds.
  • Hogue said, "Cincinnati will be the most impactful in the near term," referencing upticks in event attendance and contract revenues post-construction.
  • The transition from leases to management contracts continues, with remaining major conversions expected over the next 24 months.
  • CEO Hogue described residential contract uptake as "up about 60% year over year," emphasizing growth potential and the bifurcation opportunity between residential and traditional worker-driven demand.
  • The company intends to prioritize utilization in its parking assets as a precursor to future pricing power and parker mix optimization in maturing markets.
  • Technological enhancements aimed at transaction data capture, operator incentives, and inventory liquidation via online aggregators are integral to 2026 operational initiatives.
  • Asset sales are frequently to strategic buyers seeking asset-specific integration, with cap rates on recent sales reinforcing management's belief that "portfolio, as expressed through the stock price, is materially disconnected from the value of the parts."
  • Return-to-office tailwinds are most measurable in the Midwest and Texas, associated with large corporate mandates and contributing to improved parking demand trends.
  • Guidance for 2026 does not include potential new asset sales or acquisitions beyond those already contracted, but further dispositions could trigger updates if material impacts on results are anticipated.

INDUSTRY GLOSSARY

  • RevPASS (Revenue per Available Stall): The total revenue generated per available parking stall over a specified period, used by parking operators to track performance and demand optimization.
  • Transient Volume: Revenue or number of transactions generated from short-term parking users not under contract, typically associated with events or hourly demand.
  • Contract Parking: Agreements providing longer-term, recurring revenue from individuals or entities reserving dedicated parking, usually on a monthly or annual basis.
  • Asset Rotation Strategy: Intentional sales of selected properties to improve portfolio composition, redeploy capital, pay down debt, or pursue new acquisitions.

Full Conference Call Transcript

Casey Kotary: Good afternoon, everyone, and thank you for joining us to review Mobile Infrastructure Corporation's fourth quarter and full year 2025 performance. With us today from Mobile Infrastructure Corporation are Stephanie L. Hogue, CEO; Paul M. Gohr, CFO; and Manuel Chavez, Executive Chairman. In a moment, we will hear management statements about the company's results of operations as of the fourth quarter and full year 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, or business or financial results.

Actual results may vary significantly from these statements and may be affected by the risks Mobile Infrastructure Corporation has identified in today's press release and those identified in its filings with the SEC, including Mobile Infrastructure Corporation's most recent Annual Report on Form 10-K and its most recent Quarterly Report on Form 10-Q. Mobile Infrastructure Corporation assumes no obligation and does not intend to update or revise forward-looking statements made on this call. Today's discussion also contains references to non-GAAP financial measures that Mobile Infrastructure Corporation believes provide useful information to its investors. These non-GAAP measures should not be considered in isolation from or as a substitute for GAAP results.

Mobile Infrastructure Corporation's earnings release and the most recent Quarterly Report on Form 10-Q provide a reconciliation of those measures to the most directly comparable measures and a list of the reasons why Mobile Infrastructure Corporation uses these measures. I will now turn the call over to Mobile Infrastructure Corporation's CEO, Stephanie L. Hogue, to discuss fourth quarter and full year 2025 performance. Stephanie?

Stephanie L. Hogue: Thank you, Casey, and good afternoon, everyone. Thank you for joining us today. 2025 was a year in which we strengthened the foundation of our business. And while we did not achieve the growth that we originally expected, we executed on several key strategic priorities which have positioned the company for future growth and to capitalize on the green shoots we are seeing throughout the portfolio. While consolidated revenue and NOI declined year over year, the underlying structure of the company improved meaningfully.

We continue to show positive momentum in contract parking, improved utilization at several of our assets, completed phase one of our asset rotation strategy, strengthened our balance sheet, and our confidence is growing with identifiable catalysts that position us for progress in 2026. Additionally, accelerating return-to-office momentum across our markets supports our outlook for growth in 2026, along with the reopening of several venues that should increase our transient volumes this year. Taking a closer look at 2025 operations, let me start with contract parking because that forms the operational base that supports our broader growth.

We ended 2025 with over 6,700 contracts at our baseline assets, representing same-store sales growth of 10% year over year and 12% growth when excluding the temporary disruption in Detroit. Contract parking represents approximately 35% of our management agreement revenue. This recurring revenue creates stability, reduces volatility, and builds a platform for pricing leverage as utilization improves. As we have focused on driving utilization across the portfolio, we have done so with a specific, tested playbook for success: volume first, rate second. In some assets, we have accepted lower initial price points per stall per day to ensure we are winning market share, volume, and stabilizing assets. In other words, our priority in 2025 was occupancy.

The result is that while utilization has climbed with contract growth, our overall revenue mix has remained relatively steady at approximately 35%, which is a deliberate sequencing decision. Parking is fundamentally a utilization-driven business, with daily perishable inventory. When assets are underutilized, pricing leverage is limited. As assets move toward stabilized occupancy, optionality increases both with rate and parker mix optimization. Cleveland demonstrates this clearly. As utilization approached stabilized levels in that market, we were able to implement approximately 5% rate increases on monthly contracts. We have developed an optimization plan for each of our core assets.

In some markets, the near-term priority will remain volume, while in others, where utilization is tightening, the focus will shift toward parker mix optimization and pricing discipline. The opportunity ahead of us is not simply to grow contracts but to enhance the quality of that revenue as assets continue to mature. So while contract revenue today represents 35% of the mix, we view that as a baseline off of which we intend to grow over time. As utilization continues to increase and market conditions normalize, we believe there is meaningful opportunity to improve pricing and strengthen the overall revenue composition of the portfolio. We are also seeing tangible signs that demand dynamics are shifting.

For several years, return to office was something we expected would eventually translate into parking demand. Over the last several months, that shift has become more measurable. We are seeing an increase in inbound block parking inquiries, something that we have not experienced in nearly five years. To be clear, we are not back to pre-pandemic patterns. But corporate in-office attendance policies are beginning to drive incremental demand in a way that will translate to increased utilization in markets where we have exposure to office. Residential parking contracts have been another contributor to our emphasis on building the Mobile Infrastructure Corporation recurring revenue platform.

Residential contracts increased approximately 60% year over year in 2025, reflecting the conversion of downtown office buildings in several of our markets to apartment rentals. That growth diversifies our exposure and transforms assets that were historically weekday-centric into 24-hour revenue platforms. Over time, that flexibility enhances our ability to optimize both utilization and pricing. Now turning to transient revenue. Transient volumes declined 6% in 2025, primarily due to temporary disruptions in certain markets that we have discussed in recent earnings calls. These were micro-market disruptions tied to physical projects and timing that will ultimately create long-term demand for our assets. Importantly, even during this period, transient rates increased.

That rate resilience reinforces our conviction that our assets remain well positioned within these districts. As we move into 2026, many of these temporary disruptions are shifting to positive demand catalysts. The renovated Cincinnati Convention Center has reopened, and construction projects such as the 16th Street Mall redevelopment in Denver and Nashville's 2nd Avenue rebuild have been completed. And we have new contract wins being onboarded. This visibility gives us confidence in sequential improvements as the year progresses. Over the past year, we have pivoted our own data strategy to identify the technology platforms that enhance customer experience, improve revenue management, and reduce structural management costs.

In certain high-volume assets, we have identified some barriers to revenue management, and those operational initiatives have not yet produced the operational fluidity and throughput we expect. Actions are underway to further improve utilization across our portfolio, which includes reexamining our technology being used across the Mobile Infrastructure Corporation portfolio. We look forward to sharing more about these operational initiatives in the future. A key highlight of 2025 was the execution of phase one of our asset rotation strategy. Consistent with the objectives we outlined at this time last year, we have sold or are under contract to sell over $30 million of non-core assets.

The aggregate cap rate of sold assets is approximately 2% to date, which supports our ongoing belief that the sum of the Mobile Infrastructure Corporation portfolio, as expressed through the stock price, is materially disconnected from the value of the parts. We are continuing to execute on this three-year strategy in 2026, when we expect to have sold or be in contract to sell another large portion of our non-core assets. In the third quarter, we completed a $100 million asset-backed securitization with three new institutional investors. That transaction extended maturities, enhanced flexibility around asset rotation, and validated the quality of our underlying collateral.

Finally, and equally importantly, we continue to deleverage the portfolio with approximately a $10 million paydown of the line of credit in the fourth quarter. Paying down the line of credit and reducing the overall cost of capital will continue to be a primary consideration of capital deployment through 2026. This, coupled with our stock repurchase program and potential asset purchases, forms the core of our capital allocation strategy to drive long-term value to shareholders. Despite the green shoots in our business and excitement for 2026, I also think it is important to step back and acknowledge the broader environment in which we are operating.

We are living through a moment of extraordinary uncertainty around how artificial intelligence will reshape the nature of work, office usage, and even human productivity itself. But regardless of how technology evolves, people will continue to gather, transact, attend events, live in cities, and move through physical space. Mobile Infrastructure Corporation owns hard assets—land and access points in central business districts—that are essential to that movement. While near-term NOI may fluctuate as markets normalize, the underlying scarcity and strategic positioning of well-located urban land will not be disrupted by an evolving AI landscape. Over time, we believe that ownership of critical physical infrastructure in vibrant districts only becomes more valuable.

With that, I will turn the call over to Paul to address the financial results and earnings guidance for 2026.

Paul M. Gohr: Thank you, Stephanie, and good afternoon, everyone. I will discuss our financial performance for the fourth quarter and full year 2025 and provide additional context around our 2026 financial outlook. Starting with the fourth quarter, total revenue was $8.8 million compared to $9.2 million in the same period of the prior year. The revenue decline reflects lower transient volumes year over year due to fewer events and associated attendance, as well as continued construction-related impacts at several of our assets. As Stephanie mentioned, these projects have now largely been completed, which should provide a tailwind for these assets in 2026. Now let us discuss revenue per available stall, or RevPASS, a key metric we use to manage the portfolio.

This metric is increasingly useful as we convert more assets to management contracts. As a larger portion of our portfolio is included in the calculation, for the fourth quarter, RevPASS was $190 compared to $200 in the prior-year quarter, a decrease of 5%. The year-over-year decline reflects rate compression from our volume-first strategy, as well as the transient weakness I mentioned earlier. Adjusting for our Detroit location, which is one of the largest assets in our portfolio, RevPASS was down 3.4% year over year. As we have discussed before, for our Detroit location, redevelopment is actively underway. While there are some near-term dislocations, longer term, this asset is extremely well positioned.

Turning to expenses, property taxes were $1.6 million compared to $1.7 million in the prior-year quarter. Property operating expenses were flat at $1.9 million for 2025 and 2024. This demonstrates the operational discipline we have maintained throughout the quarter. Net operating income was $5.3 million for the fourth quarter compared to $5.5 million in the prior-year period. General and administrative expenses were $1.1 million compared to $1.2 million in 2024. This excluded non-cash compensation of $800,000 in 2025 compared with $1 million of non-cash compensation in the prior year. Adjusted EBITDA for the fourth quarter was $3.9 million, flat compared to the prior year.

This stability in adjusted EBITDA despite revenue headwinds demonstrates the underlying earnings power of our operations and the benefit of our expense management initiatives. For the full year 2025, total revenue was $35.1 million compared to $37 million in 2024, a decrease of 5.2%, reflecting the temporary transient volume headwinds previously described. For 2025, same-location RevPASS was $199 compared to $209 in 2024, a decrease of 4.7%, consistent with the revenue decline. Property taxes were $7 million compared to $7.3 million in 2024. Property operating expenses were $7.4 million compared to $7.1 million, an increase that is primarily attributable to our migration to management agreements. Net operating income for the full year was $20.7 million compared to $22.6 million.

While this represents a meaningful decline, it is important to note that this was driven by the temporary factors Stephanie outlined. As venues reopen and the catalysts we see materialize, we will have a clear line of sight to NOI recovery. General and administrative expenses were $4.8 million compared to $5.1 million in 2024, reflecting cost management trends previously described. This excluded non-cash compensation of $3.1 million in the current year compared with $5.7 million of non-cash compensation in the prior year. Adjusted EBITDA for the full year was $14.3 million compared to $15.8 million in 2024. Turning to our balance sheet, as of 12/31/2025, we had $15.3 million in cash and restricted cash compared to $15.8 million at 12/31/2024.

Total debt outstanding as of 12/31/2025 was $207.7 million. This compares to total debt of $213.2 million at 12/31/2024. As Stephanie mentioned, during the fourth quarter, we paid down approximately $10 million on the line of credit, including both principal and accrued interest, and funded this paydown with proceeds from our fourth quarter asset sales. Additionally, to date, we have repurchased over 1,600,000 shares at an average price of $3.25 per share. Given the current share price and the valuation relative to our NAV, our shares continue to be an extremely compelling investment. Accordingly, repurchases will continue to be an area of focus. For 2026, we are providing the following guidance.

2026 revenue is expected to be $35 million to $38 million. At the midpoint, this represents 4% growth over 2025 revenue. On an apples-to-apples basis, adjusted for the assets we sold in 2025, the midpoint represents approximately 8% growth on the same-portfolio basis. This 8% adjusted growth rate better reflects the underlying operational momentum we expect from our portfolio. Net operating income is expected to be $21.5 million to $23 million. At the midpoint, this represents 7% growth over 2025 actual results. On an adjusted basis, removing sold assets, this represents approximately 10% NOI growth, highlighting the operating leverage inherent in our business model. Adjusted EBITDA is expected to be $15 million to $16.5 million.

At the midpoint, this represents 10% growth over 2025 actual results. On an adjusted basis, this represents approximately 13% growth. The adjusted EBITDA expansion reflects both NOI margin improvement and continued expense discipline. Our guidance does not include any future asset sales or acquisitions beyond what we have already contracted. If we complete additional dispositions during 2026 as planned, we would expect to update guidance accordingly, though the NOI impact should be relatively modest given we are selling lower-contributing assets. There are a few key assumptions underpinning our guidance. First, we expect continued contract parking volume growth across our major markets, building on the 10% growth we achieved in 2025.

Second, we expect transient growth in markets where temporary construction disruptions have been resolved. And finally, further progress from the green shoots we see of return-to-office momentum that we believe will provide uplift to both contract and transient revenue streams. With that, I will turn the call back to Stephanie for closing remarks.

Stephanie L. Hogue: Thank you, Paul. Before we open the line for questions, I want to leave you with a broader perspective on where we see our business heading. Over the last several years, this company has navigated tremendous change. We have operated through a global pandemic, a structural shift in workplace behavior, significant redevelopment around some of our largest assets, rising interest rates, and capital markets volatility. We are focused on building the most durable part of our revenue base through contract expansion. We have strengthened our capital structure. We have rotated assets according to our long-term strategy. And we have positioned the portfolio and broader platform to benefit as temporary disruptions convert into long-term growth catalysts.

In choosing to prioritize utilization, we focused on getting closer to a stabilized performance. Ultimately, the occupancy base will create pricing leverage. As utilization increases, optionality increases. As optionality increases, parker mix optimization becomes possible. And as mix improves, pricing power follows. As such, we see embedded opportunity. Our assets are moving toward stabilized occupancy levels where future pricing adjustments can be implemented thoughtfully and strategically, market by market. We continue to believe that the intrinsic value of this portfolio materially exceeds the current trading value of our shares. Our focus remains on closing that gap through disciplined execution and a shareholder-first mindset to capital allocation.

As we move through 2026, we will implement targeted operational enhancements with select properties designed to improve transaction flow and reduce friction. Each asset has its own operational optimization roadmap, and we expect that these adjustments will drive incremental revenue over time. Beyond near-term improvements, we are building something larger. Mobile Infrastructure Corporation owns points around the center of urban mobility systems. In a world increasingly shaped by digital transformation, we remain a business with ownership of strategically located land and hard assets in central business districts—assets that we believe will compound value over time. Historically, our revenue model has centered on parking transactions. But our assets generate far more data than payment activity.

They capture data on traffic flow, dwell time, ingress and egress behavior, and utilization patterns across central business districts. Over time, we believe this portfolio can evolve toward intelligent infrastructure assets that are not only revenue generating but increasingly adaptive and data aware. We are in the early stages of building that capability. We are not announcing a specific rollout today, but are laying the foundation for infrastructure that enhances long-term value creation. This evolution will not happen overnight, but we believe the future of this company is not simply higher occupancy.

It is smarter infrastructure with assets that generate insight along with income, and operational systems that allow us to optimize each garage individually rather than manage the portfolio with broader assumptions. As we move through 2026, we see strengthening contract momentum, identifiable recovery catalysts, and operational enhancements. Thank you for your continued support. Operator, please open the line for questions.

Operator: Thank you. Please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again. We will now open for questions. Our first question comes from John Massocca with B. Riley Securities. Your line is open.

John Massocca: Good afternoon. So maybe just going to the dispositions first. Can you maybe tell me what exactly was closed in the quarter and what maybe is still yet to close in that $30 million number?

Stephanie L. Hogue: Yes. We have one asset remaining to close this quarter, anticipating that closing in the next 14 to 20 days, and then anything else in 2026 will be toward the back quarter of the year.

John Massocca: Okay. Does that mean there is nothing really in the pipeline for sale today, or is that just because the assets you are selling are going to take a little time to work through all of the various minutiae of sale?

Stephanie L. Hogue: Yes, more of the latter. There are assets in the pipeline. Certainly, we do not want to rush a process, so it is always balancing speed to close versus the right buyer. So we have some targeted conversations that, given the nature of disposition strategy, are back half of this year.

John Massocca: Okay. I understand that with the cap rate you are selling these at, it should not be too impactful. But if I think about what was actually closed in the quarter, is there some kind of weighting towards the back or the front of the quarter? I am just trying to think if there is a stub impact of NOI that was in 4Q that is not going to roll into 1Q.

Stephanie L. Hogue: It will roll through January because it will sell toward the end of the first quarter. But largely nominal overall.

John Massocca: Okay. And maybe can you provide a little color on what you are seeing year to date in some of the markets that were most impacted by local disruptions—just thinking Cincinnati, Denver, Nashville. Is there any kind of tangible uplift you are seeing in comparable rate or utilization in those markets now that some of those projects around the garages have been completed?

Stephanie L. Hogue: January, as you know, is always our slowest month of the year. You have weather, etcetera. I will say, though, Cincinnati, we are seeing some impact as expected. I think we made in the remarks the comment that there are seven events in the first quarter. There were several in January. They were well attended. Contract revenue is up, and we have seen a number of inbounds from the return to office. Not all of those will convert, but we are starting to see that trend. So I think Cincinnati will be the most impactful in the near term. Nashville has opened back up the 2nd Street corridor.

So just in terms of an asset coming back online like Nashville is, that really should be back-half weighted as parkers get used to going there, prebooking, etcetera. But I anticipate we will see Cincinnati in the numbers in the first quarter.

John Massocca: Okay. And then in terms of the broader portfolio, I would imagine it is already baked into guidance, but just in terms of the impacts versus run rate, how much weather impact has the portfolio seen, if any, in 1Q, given it has been a slightly colder, snowier winter than it has been in years past? Within the guidance, is that already accounted for, given it is in the year-to-date performance? And then what could have been guidance if not for that weather disruption, roughly?

Stephanie L. Hogue: It was, in the grand scheme of the year, not super impactful. We did see a little bit of a downtick, but I do not think, on the balance of the year, that it will be impactful. Yes. January is always the slowest month of the first quarter, which is the slowest quarter of the year. So to Paul’s point, it was a few days and largely nominal overall.

John Massocca: Okay. That is it for me. I will hop back in the queue.

Stephanie L. Hogue: Thanks, John. Thank you.

Operator: The next question is going to come from Kevin Steinke with Barrington Research. Your line is open.

Kevin Steinke: Great. Thank you. I believe you talked about in your remarks expecting to see a sequential build in results throughout the year. Obviously, there are seasonal impacts as you move throughout the year, but is there anything based on the green shoots and the momentum you are seeing in contract that would make things vary materially versus what you have typically seen in the past?

Stephanie L. Hogue: No, there is not. The contract parking will compound through the year. So the fluctuation, the seasonality, is largely driven by transient. All the contract green shoots will do is give us a higher base from which that transient will compound revenue through the year.

Kevin Steinke: Okay. Sounds good. And obviously, you discussed the momentum you are seeing in the contract business. Return to office sounds like it is a nice tailwind right now. Any updates on just the office-to-residential conversions and what you are seeing in particular markets with that in terms of uptake on residential contracts? I am thinking about the developments in Cincinnati and anywhere else you might want to highlight.

Stephanie L. Hogue: Yes, absolutely. Residential has been really great. It is still not a large portion of contracts, but it was up about 60% year over year. We anticipate that to continue growing, especially with the return to office that we are seeing. So I think what we are really excited about is that bifurcation in pricing, which has not happened yet but will ultimately, when you have a 24/7 reserved space versus a Monday-through-Thursday, 8-to-5 worker. So that is on the come. But the thing with residential is we are bound by how fast units lease. So we cannot make great predictions in terms of how fast that builds.

But once people are in their apartments and they are leasing, we have pretty good capture there.

Kevin Steinke: Okay. Great. That is helpful. You talked about seeing some positive impact from your technology optimization initiatives. But you also talked about maybe improving technology in certain areas or in certain facilities. Can you just walk through that a little bit more and maybe unpack the benefits you have seen from initiatives and what other things you are looking to improve on that front?

Stephanie L. Hogue: Yes. It has been a fairly broad attack on technology and execution. We work with our third-party operators and have really transitioned toward those who give us the most operating insight and transaction data in our assets. The thing with parking is it really needs to be a frictionless ecosystem. And so focusing on operators and technology where it is that drive-in, drive-out experience, but also the LPR—the license plate recognition—captures the data and charges effectively so you do not have leakage, is really important. And so we are working with operators on that.

Then the second piece is just making sure that we have the right online presence and premarketing for events and also liquidation of excess inventory with online aggregators. So it is a multifaceted approach. Historically, asset owners have relied on operators to do that. A lot of that has been brought in house over the last year, and we are expecting to see that benefit in 2026.

Kevin Steinke: Alright. That sounds good. Can you refresh us on where we are in terms of the ongoing transition from leases to management contracts on your owned assets, and maybe are we expecting any significant movement on that front—flipping to management contracts—as we move throughout the year?

Stephanie L. Hogue: I think the balance of them largely are late this year and next year when they transition, and there are only a handful remaining. So it will not be materially impactful, but certainly, as we transition, we will update. The ones that are on long-term leases are just coming to their lease end over the next 24 months.

Kevin Steinke: Great. Understood. That is helpful. Lastly, I want to ask about the ongoing asset optimization strategy. You have had some success with some divestitures. It sounds like maybe over the course of 2026 the focus is to divest assets, and more of those are to come later in the year or maybe into 2027. But it sounds like initially, it is still going to be a focus on paying down that line of credit. Could you also update us on where you stand with the asset acquisition pipeline and when you would potentially look to start acting on that pipeline a little more actively or aggressively?

Stephanie L. Hogue: Yes, absolutely. In the near term, the focus will be the line of credit. But to your point, every disposition is a capital allocation question. So we will look at near-term acquisition pipeline versus line of credit paydown and balance accordingly with our board.

Kevin Steinke: Okay. Well, thank you for taking the questions. I will turn it back over.

Stephanie L. Hogue: Thanks, Kevin. Thank you.

Operator: Our next question will come from Michael Diana with Maxim Group. Your line is open.

Michael Diana: Thank you. Stephanie, when you are selling some of these properties, are the buyers looking to run them as parking facilities or do something else with them?

Stephanie L. Hogue: Sure. Hey, Michael. It really depends. We have some buyers who are looking to the change of use. Others are keeping the asset as parking, but they need it for a particular purpose, i.e., they could be transitioning an office tower to residential, or they are buying an office tower and parking becomes important for them to lease out their space. So I would say it is not necessarily a fixed outcome. The input that is consistent is they need the space for their own asset that they have just acquired to be worth more. So for us, we are really indifferent as long as we can maximize proceeds for our shareholders.

Michael Diana: Yes, sure. Of course. So it is good to know that, with interest rates being where they are, you would find buyers.

Stephanie L. Hogue: Absolutely. Our approach is very strategic and targeted, so we tend to not put things on a broadly marketed process, but it is identifying, asset by asset, who the key stakeholders are and developing a relationship with them, understanding what their needs might be. And in some cases, it is just use for land. In other cases, it is parking-specific. And those relationships take time, and they are extremely targeted, which is how we are able to achieve the proceeds that we do.

Michael Diana: Okay. And then return to office—could you give us some idea which cities are the strongest in that?

Stephanie L. Hogue: We have really seen it across the board. The Midwest seems to be the strongest, I would say. But in Texas, we are seeing the same. Anywhere where you have large corporations, I think that is where we are really seeing the impact of mandates of back to office.

Michael Diana: Okay. Great. Thank you.

Stephanie L. Hogue: Absolutely.

Operator: Thank you. Our next question is going to come from John Massocca with B. Riley Securities. Your line is open.

John Massocca: Hi. Just a quick one for me. As I think about the $30 million—in particular, what is still left to close in terms of dispositions in 1Q 2026—what kind of net proceeds is that potentially going to generate to pay down the line of credit? I would assume it is maybe collateralizing some other type of debt, but I am not sure. So I am just curious how much cash you think you can generate for further line of credit paydown.

Stephanie L. Hogue: Yes. So to date, we paid down $10 million, and we will continue to put excess proceeds toward the line of credit. I think this particular asset, you are correct, will run through its waterfall. It is in a CMBS portfolio, so there are some prepayments, etcetera. So excess proceeds then will go toward the line of credit.

John Massocca: And any kind of rough amount you think that could be, or is that still to be determined given the debt structure in place on that asset?

Stephanie L. Hogue: Yes. I think it is on the come.

John Massocca: Okay. That is it for me. Thank you very much.

Stephanie L. Hogue: Okay. Thanks.

Operator: Thank you. I am showing no further questions in the queue. I would like to thank you for participating. This does conclude today's conference call. Everyone have a great evening.