We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Iron Mountain (IRM) Secures a 20-Megawatt Lease in Manassas
Read MoreHide Full Article
Iron Mountain Incorporated (IRM - Free Report) signed a 20-megawatt multi-year lease for its VA-2 data center in Manassas, VA with an existing U.S.-based Fortune 100 customer. The lease reflects decent demand for the company’s data-center space.
The lease is expected to begin in phases from mid-2022 through mid-2023. Considering the lease and current design plans, Iron Mountain now projects the VA-2 facility to support 36 megawatts, up from the 30 megawatts previously expected.
Per management, “Offering a varied capacity portfolio enables us to meet the demands of both our retail customers as well as our hyperscale clients. The balance also enables us to effectively manage lease commencement dates and backlog revenue to manage our future growth.”
Iron Mountain is witnessing encouraging demand for its data-center space from both new and existing customers. Since the beginning of the year through Dec 6, the company signed new and expansion leases of roughly 44 megawatts, which exceeded its prior target of at least 30 megawatts for 2021.
With growth in cloud computing, Internet of Things and big data, and several companies opting for third-party IT infrastructure, data-center providers are witnessing a boom. Furthermore, the estimated growth rates for AI, autonomous vehicles and virtual/augmented reality markets will be robust over the next five to six years. Data centers are poised to benefit from the heightening reliance on technology in the wake of the pandemic. Thus, data-center landlords, including IRM, are anticipated to witness significant demand for their properties.
Shares of Iron Mountain have gained 8.5% so far in the quarter compared with the industry’s 6.4% increase. It currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
Key Picks
Some better-ranked picks from the REIT sector include Extra Space Storage Inc. (EXR - Free Report) , CubeSmart (CUBE - Free Report) and Rexford Industrial Realty (REXR - Free Report) .
Extra Space Storage holds a Zacks Rank of 2 (Buy) at present. The 2021 FFO per share for Extra Space Storage is expected to increase 29.9% year over year.
The Zacks Consensus Estimate for EXR’s 2021 FFO per share has been revised 2.1% upward in a week.
The Zacks Consensus Estimate for CubeSmart’s ongoing-year FFO per share has moved 1.4% north to $2.10 over the past week. Its long-term growth rate is projected at 9.8%.
Rexford Industrial holds a Zacks Rank of 2 at present. The long-term growth rate for Rexford Industrial is projected at 12.8%.
The Zacks Consensus Estimate for REXR’s 2021 FFO per share has been revised 1.2% upward in a month to $1.63.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Iron Mountain (IRM) Secures a 20-Megawatt Lease in Manassas
Iron Mountain Incorporated (IRM - Free Report) signed a 20-megawatt multi-year lease for its VA-2 data center in Manassas, VA with an existing U.S.-based Fortune 100 customer. The lease reflects decent demand for the company’s data-center space.
The lease is expected to begin in phases from mid-2022 through mid-2023. Considering the lease and current design plans, Iron Mountain now projects the VA-2 facility to support 36 megawatts, up from the 30 megawatts previously expected.
Per management, “Offering a varied capacity portfolio enables us to meet the demands of both our retail customers as well as our hyperscale clients. The balance also enables us to effectively manage lease commencement dates and backlog revenue to manage our future growth.”
Iron Mountain is witnessing encouraging demand for its data-center space from both new and existing customers. Since the beginning of the year through Dec 6, the company signed new and expansion leases of roughly 44 megawatts, which exceeded its prior target of at least 30 megawatts for 2021.
With growth in cloud computing, Internet of Things and big data, and several companies opting for third-party IT infrastructure, data-center providers are witnessing a boom. Furthermore, the estimated growth rates for AI, autonomous vehicles and virtual/augmented reality markets will be robust over the next five to six years. Data centers are poised to benefit from the heightening reliance on technology in the wake of the pandemic. Thus, data-center landlords, including IRM, are anticipated to witness significant demand for their properties.
Shares of Iron Mountain have gained 8.5% so far in the quarter compared with the industry’s 6.4% increase. It currently carries a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked picks from the REIT sector include Extra Space Storage Inc. (EXR - Free Report) , CubeSmart (CUBE - Free Report) and Rexford Industrial Realty (REXR - Free Report) .
Extra Space Storage holds a Zacks Rank of 2 (Buy) at present. The 2021 FFO per share for Extra Space Storage is expected to increase 29.9% year over year.
The Zacks Consensus Estimate for EXR’s 2021 FFO per share has been revised 2.1% upward in a week.
The Zacks Consensus Estimate for CubeSmart’s ongoing-year FFO per share has moved 1.4% north to $2.10 over the past week. Its long-term growth rate is projected at 9.8%.
The Zacks Consensus Estimate for CubeSmart’s 2021 FFO per share suggests an increase of 22.1% year over year. Currently, CUBE carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Rexford Industrial holds a Zacks Rank of 2 at present. The long-term growth rate for Rexford Industrial is projected at 12.8%.
The Zacks Consensus Estimate for REXR’s 2021 FFO per share has been revised 1.2% upward in a month to $1.63.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.