Iron Mountain posts higher fourth-quarter FFO on resilient data storage demand

By Thomson Reuters Feb 22, 2024 | 10:26 AM

(Reuters) – Iron Mountain posted a rise in its funds from operations (FFO) for the fourth quarter on Thursday, driven by resilient demand for its data storage and records business.

Shares of the Boston, Massachusetts-based real estate investment trust, which offers cloud data management services and leases its data centers, rose more than 5% in morning trade.

“We continue to be pleased with the growth trajectory of our data center business, which is only accelerated with the rapid adoption of AI-enabled services,” CEO William Meaney said on a post-earnings call.

The company’s adjusted FFO, which indicates cash flow, rose 9% over the year earlier to $1.11 per share for the quarter ended Dec. 31.

Iron Mountain, which counts cloud services providers Oracle and Akamai Technologies among its clients, posted adjusted profit of 52 cents per share. Analysts on average estimated 45 cents, according to LSEG data.

The company’s storage rental revenue rose 13% to $871 million.

It posted revenue of $1.42 billion for the fourth quarter, compared with analysts’ estimate of $1.45 billion.

Iron Mountain expects its full-year 2024 revenue to be between $6.00 billion and $6.15 billion, the midpoint of which is slightly below analysts’ average estimate of $6.09 billion.

(Reporting by Priyanka.G in Bengaluru; Editing by Shilpi Majumdar)