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Iron Mountain (IRM) Beats on Q2 FFO, Increases '21 View

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Iron Mountain Incorporated (IRM - Free Report) reported second-quarter 2021 adjusted funds from operations (AFFO) per share of 85 cents, which surpassed the Zacks Consensus Estimate of 64 cents. However, the reported figure is 3% lower than the year-ago quarter’s 87 cents.

The company leased 19 megawatts of capacity at its global data-center portfolio through the first seven months of 2021. Moreover, both the service and storage segments performed well during second the quarter.

Revenues of $1.12 billion jumped 14%, year over year.  Also, the top line outpaced the Zacks Consensus Estimate of $1.10 billion.

Quarter in Detail

Storage rental revenues were $718 million in the second quarter, highlighting a 6% year-over-year increase.

Service revenues amounted to $401 million in the reported quarter, reflecting a year-over-year rise of 32%.

Adjusted EBITDA improved 13% year over year to $406 million in second-quarter 2021, backed by the strong increase in service revenues, benefits from Project Summit and the flow-through from revenue management.

However, adjusted EBITDA margin shrunk 40 basis points (bps) to 36.2% on a year-over-year basis.

Liquidity

On Aug 5, Iron Mountain announced its third-quarter common stock cash dividend of 61.85 cents per share. The dividend will be paid out on Oct 6, to its shareholders of record at the close of business on Sep 15, 2021.

Dividend Update

On Aug 5, Iron Mountain announced its third-quarter common stock cash dividend of 61.85 cents per share. The dividend will be paid out on Oct 6, 2021, to its shareholders of record at the close of business on Sep 15, 2021.

Outlook

Iron Mountain increased the guidance for 2021 and projects current-year AFFO per share at $3.33-$3.45 compared with the $3.28-$3.45 guided earlier. The Zacks Consensus Estimate for the same is pegged at $2.63.

Revenues are estimated to be $4,415-$4,515 million, up from the $4,365-$4,515 million expected earlier. Adjusted EBITDA is predicted to be $1,600-$1,635 million, up from the $1,585-$1,635 million estimated previously.

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

Prologis, Inc. (PLD - Free Report) came up with second-quarter core FFO per share of $1.01, surpassing the Zacks Consensus Estimate of 99 cents. Results underlined all-time low vacancies in its markets that aided rent growth and valuation increases.

Boston Properties Inc.’s (BXP - Free Report) second-quarter 2021 FFO per share of $1.72 beat the Zacks Consensus Estimate of $1.61. The quarterly figure also exceeded the mid-point of the company’s second-quarter guidance by 12 cents, highlighting an improved portfolio performance, and better-than-projected parking, hotel, retail and termination income.

Highwoods Properties, Inc.’s (HIW - Free Report) quarterly FFO per share of 93 cents topped the Zacks Consensus Estimate by a cent. Rental and other revenues of $185.5 million outpaced the consensus mark of $184.9 million.

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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