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Mobile Infrastructure Corporation (NYSE American: BEEP), a real estate company, announced today that its board of directors has approved the payment of monthly dividends for its Series A and Series 1 Preferred Stock. The dividend for Series A Preferred Stock is set at $4.791 per share, while the Series 1 Preferred Stock will receive $4.583 per share. Both dividends are scheduled for payment on November 12, 2024.
Shareholders who are on record as of the close of business today will be eligible for the October Dividend. The company highlighted that the declaration and payment of future dividends would remain at the board's discretion and would depend on various factors, including the company's financial health and legal requirements.
This decision follows the company's established practice of rewarding its shareholders and reflects its current financial position. Mobile Infrastructure Corporation, previously known as Fifth Wall Acquisition Corp. III, is based in Cincinnati, Ohio, and operates within the real estate sector, specifically focusing on mobile infrastructure.
In other recent news, Mobile Infrastructure Corporation has secured a $40.4 million credit line from Harvest Small Cap Partners, L.P. and Harvest Small Cap Partners Master, Ltd. This strategic financial move aims to enhance shareholder value by providing the flexibility to pay for future preferred stock redemptions in cash, cover all accrued dividends on preferred stock, and initiate a common stock repurchase plan. The company's Board of Directors has also authorized a $10 million share buyback program in response to the perceived undervaluation of its stock.
Co-Chairman of the Board, Jeff Osher, who also manages the lenders providing the credit facility, expressed the company's commitment to increasing shareholder value and preventing future dilution from preferred stock conversions. President Stephanie Hogue added that the funding would resolve the issue of dilutive preferred equity conversions to common stock, which has significantly impacted the company's valuation over the past year. The line of credit will bear an interest rate of 15.0% per annum, with interest payable at maturity or upon any principal repayment.
InvestingPro Insights
While Mobile Infrastructure Corporation has announced dividend payments for its preferred stock, it's important to note that according to InvestingPro data, the company does not pay a dividend to common shareholders. This information adds context to the company's capital allocation strategy.
InvestingPro Tips highlight that Mobile Infrastructure Corporation has impressive gross profit margins, which is reflected in the data showing a gross profit margin of 65.72% for the last twelve months as of Q2 2024. This strong margin could potentially support the company's ability to maintain preferred stock dividend payments.
However, another InvestingPro Tip indicates that the company has not been profitable over the last twelve months. This is corroborated by the negative operating income of -$4.71 million and a negative operating income margin of -13.85% for the same period. These figures suggest that while the company is generating significant gross profits, it faces challenges in achieving overall profitability.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. The platform currently lists several more tips that could provide valuable context for understanding Mobile Infrastructure Corporation's financial position and market performance.
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