We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Iron Mountain (IRM) Q4 AFFO Beats, Revenues Increase Y/Y
Read MoreHide Full Article
Iron Mountain Incorporated (IRM - Free Report) has reported fourth-quarter adjusted funds from operations (AFFO) per share of 98 cents, which surpassed the Zacks Consensus Estimate of 94 cents. This figure improved 6.5% from the year-ago quarter’s 92 cents, attributable to improved adjusted EBITDA, partially offset by higher interest expenses and cash taxes.
Iron Mountain’s results reflect solid performances in the storage and service segments, and the data-center business. However, higher operating expenses in the quarter created a headwind. The company issued its outlook for 2023.
Quarterly total revenues of $1.28 billion increased 10.3% year over year. However, the figure missed the Zacks Consensus Estimate by 1.97%.
According to William L. Meaney, president and CEO of Iron Mountain, “Our record performance reflects the continued strength and resilience of our business model, and we are pleased to report a set of very strong results for the fourth quarter and full year, including all-time record Adjusted EBITDA and continued strength in AFFO.”
For the full year, IRM reported AFFO per share of $3.80, up from $3.48 reported in 2021. The figure also beat the Zacks Consensus Estimate of $3.76. Revenues of $5.10 billion climbed 13.6% year over year but lagged the consensus mark of $5.13 billion.
Behind the Headlines
Storage rental revenues were $769.5 million in the fourth quarter, up 6.1% year over year. Also, service revenues amounted to $509.6 million, reflecting a rise of 17.3%.
In the reported quarter, operating expenses flared up 7% year over year to $1.03 billion.
The Global Data Center business reported revenues of $103.7 million in fourth-quarter 2022, rising 15% year over year.
The adjusted EBITDA improved 9.6% year over year to $471.9 million in the quarter. The adjusted EBITDA margin contracted 20 basis points to 36.9%.
Balance-Sheet Position
IRM exited the fourth quarter with $141.8 million of cash and cash equivalents, down from $155.2 million as of Sep 30, 2022.
Dividend Update
Concurrent with the fourth-quarter earnings release, IRM announced its quarterly cash dividend of 61.85 cents per share on its common stock for first-quarter 2023. The dividend will be paid out on Apr 5 to its shareholders of record as of Mar 15.
2023 Guidance
Iron Mountain provided its guidance for 2023.
It projects an adjusted FFO per share of $3.91-$4.00. The Zacks Consensus Estimate for the same is pegged at $3.91, which lies within the company’s guided range.
Revenues are estimated to be $5,500 -$5,600 million, while adjusted EBITDA is anticipated to be $1,940-$1,975 million.
Iron Mountain currently carries a Zacks Rank #4 (Sell).
Public Storage (PSA - Free Report) reported fourth-quarter 2022 core FFO per share of $4.16, increasing 17.5% year over year. The core FFO per share, excluding the contribution from the company’s equity investment in PS Business Parks, Inc., was $4.16. Both figures surpassed the Zacks Consensus Estimate of $3.99.
PSA’s results reflected better-than-anticipated top-line growth, aided by an improvement in the realized annual rent per occupied square foot. The company also benefited from its expansion efforts through acquisitions, developments and extensions.
Boston Properties Inc.’s (BXP - Free Report) fourth-quarter 2022 FFO per share of $1.86 outpaced the Zacks Consensus Estimate of $1.84. The figure increased 18.7% year over year.
The quarterly figure also exceeded the mid-point of the company’s fourth-quarter guidance by a cent, reflecting portfolio outperformance. In addition, BXP experienced solid leasing activity in the quarter. The company revised its 2023 outlook for FFO per share.
Highwoods Properties Inc. (HIW - Free Report) reported a fourth-quarter 2022 FFO per share of 96 cents, in line with the Zacks Consensus Estimate. The figure compared unfavorably with the prior-year quarter’s $1.06. We estimated FFO per share for fourth-quarter 2022 to be 96 cents.
HIW’s quarterly results reflected better-than-anticipated revenues on robust leasing activity and improvement in rents. However, higher operating expenses created a headwind in the quarter.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Iron Mountain (IRM) Q4 AFFO Beats, Revenues Increase Y/Y
Iron Mountain Incorporated (IRM - Free Report) has reported fourth-quarter adjusted funds from operations (AFFO) per share of 98 cents, which surpassed the Zacks Consensus Estimate of 94 cents. This figure improved 6.5% from the year-ago quarter’s 92 cents, attributable to improved adjusted EBITDA, partially offset by higher interest expenses and cash taxes.
Iron Mountain’s results reflect solid performances in the storage and service segments, and the data-center business. However, higher operating expenses in the quarter created a headwind. The company issued its outlook for 2023.
Quarterly total revenues of $1.28 billion increased 10.3% year over year. However, the figure missed the Zacks Consensus Estimate by 1.97%.
According to William L. Meaney, president and CEO of Iron Mountain, “Our record performance reflects the continued strength and resilience of our business model, and we are pleased to report a set of very strong results for the fourth quarter and full year, including all-time record Adjusted EBITDA and continued strength in AFFO.”
For the full year, IRM reported AFFO per share of $3.80, up from $3.48 reported in 2021. The figure also beat the Zacks Consensus Estimate of $3.76. Revenues of $5.10 billion climbed 13.6% year over year but lagged the consensus mark of $5.13 billion.
Behind the Headlines
Storage rental revenues were $769.5 million in the fourth quarter, up 6.1% year over year. Also, service revenues amounted to $509.6 million, reflecting a rise of 17.3%.
In the reported quarter, operating expenses flared up 7% year over year to $1.03 billion.
The Global Data Center business reported revenues of $103.7 million in fourth-quarter 2022, rising 15% year over year.
The adjusted EBITDA improved 9.6% year over year to $471.9 million in the quarter. The adjusted EBITDA margin contracted 20 basis points to 36.9%.
Balance-Sheet Position
IRM exited the fourth quarter with $141.8 million of cash and cash equivalents, down from $155.2 million as of Sep 30, 2022.
Dividend Update
Concurrent with the fourth-quarter earnings release, IRM announced its quarterly cash dividend of 61.85 cents per share on its common stock for first-quarter 2023. The dividend will be paid out on Apr 5 to its shareholders of record as of Mar 15.
2023 Guidance
Iron Mountain provided its guidance for 2023.
It projects an adjusted FFO per share of $3.91-$4.00. The Zacks Consensus Estimate for the same is pegged at $3.91, which lies within the company’s guided range.
Revenues are estimated to be $5,500 -$5,600 million, while adjusted EBITDA is anticipated to be $1,940-$1,975 million.
Iron Mountain currently carries a Zacks Rank #4 (Sell).
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
Public Storage (PSA - Free Report) reported fourth-quarter 2022 core FFO per share of $4.16, increasing 17.5% year over year. The core FFO per share, excluding the contribution from the company’s equity investment in PS Business Parks, Inc., was $4.16. Both figures surpassed the Zacks Consensus Estimate of $3.99.
PSA’s results reflected better-than-anticipated top-line growth, aided by an improvement in the realized annual rent per occupied square foot. The company also benefited from its expansion efforts through acquisitions, developments and extensions.
Boston Properties Inc.’s (BXP - Free Report) fourth-quarter 2022 FFO per share of $1.86 outpaced the Zacks Consensus Estimate of $1.84. The figure increased 18.7% year over year.
The quarterly figure also exceeded the mid-point of the company’s fourth-quarter guidance by a cent, reflecting portfolio outperformance. In addition, BXP experienced solid leasing activity in the quarter. The company revised its 2023 outlook for FFO per share.
Highwoods Properties Inc. (HIW - Free Report) reported a fourth-quarter 2022 FFO per share of 96 cents, in line with the Zacks Consensus Estimate. The figure compared unfavorably with the prior-year quarter’s $1.06. We estimated FFO per share for fourth-quarter 2022 to be 96 cents.
HIW’s quarterly results reflected better-than-anticipated revenues on robust leasing activity and improvement in rents. However, higher operating expenses created a headwind in the quarter.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.