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Iron Mountain (IRM) Q4 FFO Beats Estimates, Revenues Rise Y/Y

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Iron Mountain Incorporated (IRM - Free Report) reported fourth-quarter 2021 adjusted funds from operations (AFFO) per share of 92 cents, which surpassed the Zacks Consensus Estimate of 71 cents. The reported figure was 39% higher than the year-ago quarter’s 66 cents.

Both service and storage segments delivered solid performances in the quarter, while the data-center business witnessed continued momentum. Moreover, the company executed 27 megawatts of new and expansion leasing at its global data-center portfolio in the December-end quarter.

Quarterly revenues of $1.16 billion increased 9% year over year. The top line beat the Zacks Consensus Estimate of $1.15 billion.

For 2021, AFFO per share was $3.48, which surpassed the Zacks Consensus Estimate of $2.74. The reported figure was 13% higher than 2020. Full-year revenues were $4.49 billion, surpassing the Zacks Consensus Estimate of $4.48 billion. The top line was 8% higher than the previous year.

Quarter in Detail

Storage rental revenues were $725 million in the fourth quarter, up 4% year over year.

Service revenues amounted to $434 million, reflecting a year-over-year rise of 20%.

Global Data Center business revenues climbed 24.7% in the fourth quarter or marked a 25.3% increase from the prior-year quarter, excluding the impacts of foreign-currency exchange.

The adjusted EBITDA improved 15% year over year to $430.7 million in fourth-quarter 2021, backed by a strong increase in service revenues and benefits from Project Summit.

The adjusted EBITDA margin expanded 180 basis points (bps) on a year-over-year basis to 37.1%.

Liquidity

The company exited the fourth quarter with $255.8 million of cash and cash equivalents, up from $205.1 million at the end of 2020.

Dividend Update

On Feb 24, Iron Mountain announced its first-quarter common stock cash dividend of 61.85 cents per share. The dividend will be paid out on Apr 6 to its shareholders of record as of Mar 15.

Outlook

Iron Mountain provided guidance for 2022. It projects adjusted FFO per share of $3.70-$3.82. The Zacks Consensus Estimate for the same is pegged at $2.93.

Revenues are estimated to be $5,125-$5,275 million, while adjusted EBITDA is predicted to be $1,800-$1,850 million.

Iron Mountain Incorporated Price, Consensus and EPS Surprise

 

Iron Mountain Incorporated Price, Consensus and EPS Surprise

Iron Mountain Incorporated price-consensus-eps-surprise-chart | Iron Mountain Incorporated Quote

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.

Performance of Other REITs

OUTFRONT Media Inc. (OUT - Free Report) delivered fourth-quarter 2021 adjusted funds from operations per share of 65 cents, surpassing the Zacks Consensus Estimate of 55 cents. In the prior-year quarter, the company reported an AFFO per share of 35 cents.

OUT’s quarterly revenues of $464.5 million outpaced the Zacks Consensus Estimate of $444.7 million. The revenue figure jumped 38.3% year over year.

OUT’s fourth-quarter results reflect a rise in revenues, partially offset by higher operating expenses.

Boston Properties Inc.’s (BXP - Free Report) fourth-quarter 2021 funds from operations per share of $1.55 surpassed the Zacks Consensus Estimate of $1.52. The figure compared favorably with the year-ago quarter’s number of $1.37.

BXP’s quarterly figure exceeded the mid-point of its fourth-quarter guidance by 5 cents, reflecting an improved portfolio performance. Boston Properties also experienced strong leasing activity in the quarter.

Highwoods Properties, Inc.’s (HIW - Free Report) fourth-quarter 2021 FFO per share of $1.06 surpassed the Zacks Consensus Estimate of 97 cents. Rental and other revenues of $203.2 million outpaced the Zacks Consensus Estimate of $192.7 million.

Decent leasing activity and improvement in same-property cash net operating income growth aided HIW. While Highwoods Properties’ FFO per share increased 21.8% year over year from 87 cents, rental and other revenues climbed 12.9%.

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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