Financial Results
Statements of Operations
Net loss attributable to common stockholders of $23.1 million, or $1.77 per diluted share, compared with $2.9 million, or $0.22 per diluted share, in the comparable prior year period, was significantly impacted by several non-recurring charges primarily associated with the merger transaction and repositioning of the Company. Most significantly, during the third quarter of 2023, we reported a non-cash charge of $16.1 million for the excess of fair value of the Series 2 Preferred Stock over the original issue price. The Company also reported non-cash impairment charges of $8.7 million associated with three parking facilities, as a result of continuing delays in back-to-work trends impacting these assets. The Company will continue to focus on leasing efforts for these assets, but may also explore alternative options, including strategic transactions that would allow capital to be recycled into assets that better align with the Company’s growth strategy and market focus. General and administrative expenses include a $1.4 million non-cash charge for the cancellation by executive management of LTIP Units, and the planned reallocation of such units to non-executive employees.
Interest expense for the third quarter 2023 was $3.6 million, as compared to $3.7 million during the third quarter of 2022, reflecting the impact of the higher interest rate environment, offset by the impact of the $25 million paydown of indebtedness.
NOI
Net Operating Income (“NOI”), defined by the Company as total revenues less property taxes and operating expenses, was $5.9 million for the third quarter of 2023, representing a 3.1% decrease from the third quarter of 2022.
Total revenue of $8.1 million during the third quarter of 2023 declined by 3.5% from $8.4 million in the prior year quarter. Total revenue from the portfolio was favorably impacted by continued leasing efforts, but was more than offset by the timing of collections from several larger contract parkers, as well as market-specific trends around certain assets. Further, base rent changes reflect contract restructurings at certain locations where the Company has elected to lower base rent and increase its share of percent rent to better align revenues with location performance, providing more revenue upside when parking utilization increases. Total property taxes and operating expenses for the third quarter of 2023 were $2.2 million, as compared to $2.3 million during the same period in 2022.
Adjusted EBITDA
Adjusted EBITDA was $4.4 million for the third quarter of 2023, representing a 2.3% increase over the same year-ago period. The increase reflects the impact of NOI described above, as well as savings in professional fees and general and administrative expenses outside of non-cash stock compensation.
Balance Sheet
As of September 30, 2023, the Company had $18.7 million in cash, cash equivalents and restricted cash. As of September 30, 2023, total debt outstanding, including outstanding borrowings on the credit facility and notes payable, was $193.5 million, compared to total debt outstanding of $219.7 million as of December 31, 2022.
As of September 30, 2023, the Company’s outstanding debt had a weighted-average interest rate of 6.8%.
