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Iron Mountain's (IRM) Q3 AFFO Beats, Revenues Increase Y/Y
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Iron Mountain Incorporated (IRM - Free Report) reported third-quarter adjusted funds from operations (AFFO) per share of 98 cents, which surpassed the Zacks Consensus Estimate of 96 cents. This figure was 8.9% higher than the year-ago quarter’s 90 cents, attributable to improved adjusted EBITDA, partially offset by higher interest expense and cash taxes.
Iron Mountain’s results reflect solid performance in the storage and service segments, and the data-center business. It reaffirms its outlook for 2022.
Quarterly total revenues of $1.29 billion increased 13.9% year over year. However, the figure missed the Zacks Consensus Estimate by 2.2%.
According to William L. Meaney, president and CEO of Iron Mountain, “We are pleased to report a set of very strong results for the third quarter, including all-time record Adjusted EBITDA and AFFO."
Behind the Headlines
Storage rental revenues came in at $760.4 million in the third quarter, up 5.8% year over year. Also, service revenues amounted to $526.6 million, reflecting a rise of nearly 28%.
Operating expenses increased 5.5% year over year to $1 billion during the reported quarter.
The Global Data Center business reported revenues of $100.3 million in third-quarter 2022, rising 13.2% year over year.
The adjusted EBITDA improved 12.4% year over year to $469.4 million in the quarter. The adjusted EBITDA margin contracted 50 basis points to 36.5%.
Balance-Sheet Position
IRM exited the third quarter with $155.2 million of cash and cash equivalents, up from $144.7 million as of Jun 30, 2022.
Dividend Update
Concurrent with the third-quarter earnings release, IRM announced its quarterly cash dividend of 61.85 cents per share on its common stock for fourth-quarter 2022. The dividend will be paid out on Jan 5 to its shareholders on record as of Dec 15.
2022 Guidance
Iron Mountain reaffirmed its guidance for 2022.
It projects AFFO per share to lie between $3.70 and $3.82. The Zacks Consensus Estimate for the same is currently pegged at $3.78, which lies in the guided range.
Management predicts total revenues to be within $5.125-$5.275 billion. The Zacks Consensus Estimate for the same is presently pegged at $5.19 billion. Also, adjusted EBITDA is estimated to be in the band of $1.80-$1.85 billion.
Extra Space Storage Inc. (EXR - Free Report) reported third-quarter 2022 core FFO per share of $2.21, beating the Zacks Consensus Estimate of $2.18. The figure was also 19.5% higher than the prior-year quarter’s $1.85.
EXR’s results reflect better-than-anticipated top-line growth. The same-store net operating income (NOI), too, improved year over year. It revises its outlook for 2022.
Public Storage's (PSA - Free Report) third-quarter 2022 core FFO per share of $4.13 surpassed the Zacks Consensus Estimate of $4.05. The figure also increased 20.8% year over year.
PSA’s results reflect better-than-anticipated top-line growth alongside an improvement in the realized annual rent per occupied square foot. The company also benefited from its expansion efforts through acquisitions, developments and extensions. It raised its guidance for 2022 FFO per share.
Healthpeak Properties, Inc. reported third-quarter 2022 FFO as adjusted per share of 43 cents, in line with the Zacks Consensus Estimate. The reported figure was up 7.5% from the year-ago quarter’s 40 cents.
PEAK’s performance was backed by healthy top-line growth. Moreover, improvement in same-store portfolio cash (adjusted) NOI was witnessed across the portfolio. The company revised its 2022 outlook.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Iron Mountain's (IRM) Q3 AFFO Beats, Revenues Increase Y/Y
Iron Mountain Incorporated (IRM - Free Report) reported third-quarter adjusted funds from operations (AFFO) per share of 98 cents, which surpassed the Zacks Consensus Estimate of 96 cents. This figure was 8.9% higher than the year-ago quarter’s 90 cents, attributable to improved adjusted EBITDA, partially offset by higher interest expense and cash taxes.
Iron Mountain’s results reflect solid performance in the storage and service segments, and the data-center business. It reaffirms its outlook for 2022.
Quarterly total revenues of $1.29 billion increased 13.9% year over year. However, the figure missed the Zacks Consensus Estimate by 2.2%.
According to William L. Meaney, president and CEO of Iron Mountain, “We are pleased to report a set of very strong results for the third quarter, including all-time record Adjusted EBITDA and AFFO."
Behind the Headlines
Storage rental revenues came in at $760.4 million in the third quarter, up 5.8% year over year. Also, service revenues amounted to $526.6 million, reflecting a rise of nearly 28%.
Operating expenses increased 5.5% year over year to $1 billion during the reported quarter.
The Global Data Center business reported revenues of $100.3 million in third-quarter 2022, rising 13.2% year over year.
The adjusted EBITDA improved 12.4% year over year to $469.4 million in the quarter. The adjusted EBITDA margin contracted 50 basis points to 36.5%.
Balance-Sheet Position
IRM exited the third quarter with $155.2 million of cash and cash equivalents, up from $144.7 million as of Jun 30, 2022.
Dividend Update
Concurrent with the third-quarter earnings release, IRM announced its quarterly cash dividend of 61.85 cents per share on its common stock for fourth-quarter 2022. The dividend will be paid out on Jan 5 to its shareholders on record as of Dec 15.
2022 Guidance
Iron Mountain reaffirmed its guidance for 2022.
It projects AFFO per share to lie between $3.70 and $3.82. The Zacks Consensus Estimate for the same is currently pegged at $3.78, which lies in the guided range.
Management predicts total revenues to be within $5.125-$5.275 billion. The Zacks Consensus Estimate for the same is presently pegged at $5.19 billion.
Also, adjusted EBITDA is estimated to be in the band of $1.80-$1.85 billion.
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
Performance of Other REITs
Extra Space Storage Inc. (EXR - Free Report) reported third-quarter 2022 core FFO per share of $2.21, beating the Zacks Consensus Estimate of $2.18. The figure was also 19.5% higher than the prior-year quarter’s $1.85.
EXR’s results reflect better-than-anticipated top-line growth. The same-store net operating income (NOI), too, improved year over year. It revises its outlook for 2022.
Public Storage's (PSA - Free Report) third-quarter 2022 core FFO per share of $4.13 surpassed the Zacks Consensus Estimate of $4.05. The figure also increased 20.8% year over year.
PSA’s results reflect better-than-anticipated top-line growth alongside an improvement in the realized annual rent per occupied square foot. The company also benefited from its expansion efforts through acquisitions, developments and extensions. It raised its guidance for 2022 FFO per share.
Healthpeak Properties, Inc. reported third-quarter 2022 FFO as adjusted per share of 43 cents, in line with the Zacks Consensus Estimate. The reported figure was up 7.5% from the year-ago quarter’s 40 cents.
PEAK’s performance was backed by healthy top-line growth. Moreover, improvement in same-store portfolio cash (adjusted) NOI was witnessed across the portfolio. The company revised its 2022 outlook.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.