Iron Mountain Stock Rises 30% in Three Months: Will the Trend Last?

Core Business Performance - Iron Mountain's shares have increased by 30.1% over the past three months, outperforming the industry growth of 18.6% [1] - The company benefits from stable and resilient core storage and records management businesses, which contribute to its growth trajectory [2] - In Q2 2024, organic storage rental revenues rose by 10.1% year-over-year, driven by revenue management in its Global RIM Business and growth in its Global Data Center Business [6] Revenue and Client Base - Iron Mountain serves over 240,000 clients across various industries, with no single customer accounting for more than 1% of its revenues in 2023, indicating a well-diversified revenue base [7] - The company expects a year-over-year increase of 9.6% in storage rental revenues for 2024, with projected growth of 8.6% and 9.6% for 2025 and 2026, respectively [6] Data Center Expansion - The data center segment achieved a revenue growth of 29.4% in Q2 2024, leasing 66 megawatts of capacity in the quarter [9] - Management has revised its leasing expectations for the year from 100 megawatts to 130 megawatts due to a strong pipeline [9] Financial Strength - Iron Mountain had total liquidity of approximately $2.3 billion as of June 30, 2024, with a weighted average maturity of five years and no significant debt maturities until 2027 [10] - The company's net total lease-adjusted leverage was 5.0X in Q2 2024, the lowest since its REIT conversion in 2014 [10] Dividend Policy - In August 2024, Iron Mountain announced a 10% increase in its cash dividend to 71.5 cents per share, reflecting its commitment to solid dividend payouts [12] - The adjusted AFFO growth projection for 2024 is 9.8%, indicating a sustainable dividend increase given the company's healthy operating platform [12] Analyst Sentiment - Analysts are optimistic about Iron Mountain, with the Zacks Consensus Estimate for 2024 adjusted funds from operations (AFFO) per share revised upward to $4.49 [4]