(Reuters) - Iron Mountain (NYSE:IRM) 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 (NYSE:ORCL) and Akamai Technologies (NASDAQ:AKAM) 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.