Key Reasons to Add Iron Mountain Stock to Your Portfolio Now

Core Viewpoint - Iron Mountain Incorporated (IRM) is positioned to benefit from its recurring revenue model and expansion into the data center business, supported by a diversified tenant base and a healthy balance sheet [1][2]. Business Model - IRM operates as a real estate investment trust (REIT) with stable core storage and records management businesses, primarily generating revenue from fixed periodic storage rental fees, ensuring a steady stream of recurring revenues [2][3]. Revenue Growth - In Q2 2024, IRM's organic storage rental revenue increased by 10.1% year-over-year, driven by revenue management in its Global RIM Business and growth in its Global Data Center Business [3][4]. - The company anticipates a year-over-year increase of 9.6% in storage rental revenues for 2024 [3]. Tenant and Revenue Diversification - IRM 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 [4]. Expansion Efforts - The company is expanding its data center segment to complement its storage performance, with strong demand for connectivity and colocation space expected to drive growth in this area [5][6]. - In the first half of 2024, IRM leased 97 megawatts of data center capacity and now expects to lease 130 megawatts for the year, exceeding its original projection of 100 megawatts [6]. Financial Performance - Over the past three to five years, IRM recorded a funds from operations (FFO) per share growth of 16.32%, significantly outperforming the industry's average of 4.34% [7]. - The Zacks Consensus Estimate for IRM's 2024 FFO per share is $4.49, indicating a 9% year-over-year growth [8]. Balance Sheet and Cash Flow - As of June 30, 2024, IRM maintained a healthy balance sheet with $2.3 billion in total liquidity and no significant debt maturities until 2027, providing financial flexibility for growth [9]. - The company's current cash flow growth is projected at 4.46%, compared to a 4.03% decline for the industry, with a trailing 12-month return on equity of 595.44% [10].