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Iron Mountain (IRM) Q3 FFO Beats Estimates, Revenues Up Y/Y
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Iron Mountain Incorporated (IRM - Free Report) reported third-quarter 2021 adjusted funds from operations (AFFO) per share of 72 cents, which surpassed the Zacks Consensus Estimate of 70 cents. The reported figure is also 14.3% higher than the year-ago quarter’s 63 cents.
Both service and storage segments put up solid performance during the third quarter, while the data-center business saw a continued momentum. Moreover, the company executed 22 megawatts of new and expansion leasing at its global data-center portfolio through Sep 30, 2021.
Revenues of $1.13 billion increased 9%, year over year. However, the top line missed the Zacks Consensus Estimate by 0.13%.
According to William L. Meaney, president and CEO of Iron Mountain, "Our Mountaineers have been executing well despite what continues to be a challenging environment, and we are pleased to continue to drive accelerated growth with continued strong uptake in our digital and SITAD offerings resulting in 19% year over year growth, strong storage growth of 3.2% with positive organic volume, and continued momentum in our Data Center business, which is well on track to deliver bookings in excess of 30 megawatts for the year."
Quarter in Detail
Storage rental revenues were $719 million in the third quarter, highlighting a 3% year-over-year increase.
Service revenues amounted to $412 million in the reported quarter, reflecting a year-over-year rise of 21%.
Global Data Center business revenues climbed 21.7% in the third quarter, or marked a 21.2% increase from the prior-year quarter, excluding the impact of foreign-currency exchange.
The adjusted EBITDA improved 11% year over year to $418 million in third-quarter 2021, backed by strong increase in service revenues, benefits from Project Summit and the flow through from revenue management.
The adjusted EBITDA margin expanded 70 basis points (bps) to 37.0% on a year-over-year basis.
Liquidity
The company exited the third quarter with $161.4 million of cash and cash equivalents, down from $205.1 million at the end of 2020.
Dividend Update
On Nov 4, Iron Mountain announced its fourth-quarter common stock cash dividend of 61.85 cents per share. The dividend will be paid out on Jan 6, 2022, to its shareholders of record on Dec 15, 2021.
Outlook
Iron Mountain confirmed the guidance for 2021 and projects current-year adjusted FFO per share at $3.33-$3.45.The Zacks Consensus Estimate for the same is pegged at $2.76.
Revenues are estimated to be $4,415-$4,515 million, while the adjusted EBITDA is predicted to be $1,600-$1,635 million.
We now look forward to the earnings releases of other REITs, including Outfront Media Inc. (OUT - Free Report) , Welltower Inc. (WELL - Free Report) and Federal Realty Investment Trust (FRT - Free Report) , scheduled to be out today.
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.
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Iron Mountain (IRM) Q3 FFO Beats Estimates, Revenues Up Y/Y
Iron Mountain Incorporated (IRM - Free Report) reported third-quarter 2021 adjusted funds from operations (AFFO) per share of 72 cents, which surpassed the Zacks Consensus Estimate of 70 cents. The reported figure is also 14.3% higher than the year-ago quarter’s 63 cents.
Both service and storage segments put up solid performance during the third quarter, while the data-center business saw a continued momentum. Moreover, the company executed 22 megawatts of new and expansion leasing at its global data-center portfolio through Sep 30, 2021.
Revenues of $1.13 billion increased 9%, year over year. However, the top line missed the Zacks Consensus Estimate by 0.13%.
According to William L. Meaney, president and CEO of Iron Mountain, "Our Mountaineers have been executing well despite what continues to be a challenging environment, and we are pleased to continue to drive accelerated growth with continued strong uptake in our digital and SITAD offerings resulting in 19% year over year growth, strong storage growth of 3.2% with positive organic volume, and continued momentum in our Data Center business, which is well on track to deliver bookings in excess of 30 megawatts for the year."
Quarter in Detail
Storage rental revenues were $719 million in the third quarter, highlighting a 3% year-over-year increase.
Service revenues amounted to $412 million in the reported quarter, reflecting a year-over-year rise of 21%.
Global Data Center business revenues climbed 21.7% in the third quarter, or marked a 21.2% increase from the prior-year quarter, excluding the impact of foreign-currency exchange.
The adjusted EBITDA improved 11% year over year to $418 million in third-quarter 2021, backed by strong increase in service revenues, benefits from Project Summit and the flow through from revenue management.
The adjusted EBITDA margin expanded 70 basis points (bps) to 37.0% on a year-over-year basis.
Liquidity
The company exited the third quarter with $161.4 million of cash and cash equivalents, down from $205.1 million at the end of 2020.
Dividend Update
On Nov 4, Iron Mountain announced its fourth-quarter common stock cash dividend of 61.85 cents per share. The dividend will be paid out on Jan 6, 2022, to its shareholders of record on Dec 15, 2021.
Outlook
Iron Mountain confirmed the guidance for 2021 and projects current-year adjusted FFO per share at $3.33-$3.45.The Zacks Consensus Estimate for the same is pegged at $2.76.
Revenues are estimated to be $4,415-$4,515 million, while the adjusted EBITDA is predicted to be $1,600-$1,635 million.
Iron Mountain currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Iron Mountain Incorporated Price, Consensus and EPS Surprise
Iron Mountain Incorporated price-consensus-eps-surprise-chart | Iron Mountain Incorporated Quote
We now look forward to the earnings releases of other REITs, including Outfront Media Inc. (OUT - Free Report) , Welltower Inc. (WELL - Free Report) and Federal Realty Investment Trust (FRT - Free Report) , scheduled to be out today.
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.