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

Published 02/22/2024, 11:26 AM
Updated 02/22/2024, 11:31 AM
© Reuters. The Colorado Aqueduct near the Iron Mountain Pumping Plant in Earp, California is shown in this photo taken April 16, 2015. REUTERS/Sam Mircovich/File Photo

(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.

© Reuters. The Colorado Aqueduct near the Iron Mountain Pumping Plant in Earp, California is shown in this photo taken April 16, 2015. REUTERS/Sam Mircovich/File Photo

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.

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