Financial Data and Key Metrics Changes - The company reported record financial performance with revenue increasing 13% to $1.8 billion, adjusted EBITDA growing 16% to $660 million, and AFFO rising 18% to $393 million [3][15][24] - Adjusted EBITDA margin improved to 37.6%, up 110 basis points year-on-year, reflecting enhanced margins in data center and asset lifecycle management (ALM) businesses [16][22] - AFFO per share increased 17% to $1.32, marking another all-time quarterly record [16] Business Line Data and Key Metrics Changes - The global records and information management (RIM) business achieved record quarterly revenue of $1.34 billion, up 6% year-on-year, driven by revenue management and higher digital revenue [15][17] - Data center revenue surged 33% year-on-year to $204 million, with organic storage rental growth increasing 32% [18][19] - ALM revenue increased 65% year-on-year to $169 million, with 36% organic growth attributed to strong operational execution [20][21] Market Data and Key Metrics Changes - The data center market remains robust, with leasing activity picking up as hyperscale customers focus on building out inference and cloud capacity [9][34] - The company has a pre-leasing backlog and strong pipeline, with 450 megawatts available for sale over the next 18-24 months [10][41] Company Strategy and Development Direction - The company is focused on sustaining industry-leading revenue and earnings growth, with a portfolio of growth businesses expected to contribute nearly 30% of total revenue by the end of 2025 [5][6] - Recent acquisitions, such as ACT Logistics, are aimed at strengthening market leadership in ALM and expanding capabilities [11][21] - The company is committed to maintaining a strong balance sheet while investing in high-return opportunities that drive double-digit growth [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining data center revenue growth, projecting over 25% growth in 2026 based on currently signed leases [4][10] - The company anticipates continued strong performance in the ALM business, with expectations of approximately $600 million in revenue for the year [30] - Management highlighted the importance of customer relationships and operational execution in driving future growth [6][13] Other Important Information - The board of directors authorized a 10% increase in the quarterly dividend, marking the fourth consecutive year of dividend growth [7][22] - The company secured a significant long-term contract with the U.S. Department of the Treasury valued at up to $714 million, expected to ramp linearly over five years [8][26] Q&A Session Summary Question: Can you talk more about the planned phasing of revenues for the Treasury contract? - Management indicated that the contract will ramp linearly with slight growth, influenced by seasonal tax volumes [26] Question: What are the expectations for the ALM business regarding volume versus price? - Management confirmed strong performance in ALM, with volume-led growth and some increases in component pricing expected to influence future growth rates [30][31] Question: Can you elaborate on the data center pipeline and demand? - Management noted a marked uptick in leasing activity from hyperscale customers, with a strong pipeline for the next 450 megawatts of capacity [34][41] Question: What drives client decisions to shift leasing locations? - Management explained that customer needs dictate such decisions, emphasizing a customer-centric approach [50][54] Question: What are the expectations for volumes and pricing in the RIM storage business? - Management anticipates continued organic volume growth and revenue management actions in the mid-single-digit range [58]