Financial Data and Key Metrics Changes - Revenue increased by 12% to $1.7 billion, adjusted EBITDA grew by 15% to $628 million, and AFFO increased by 15% to $370 million [5][20][21] - Adjusted EBITDA margin was 36.7%, up 120 basis points year on year, reflecting improved margins across all business segments [21][22] Business Line Data and Key Metrics Changes - Global Records and Information Management (RIM) business achieved record revenue of $1.32 billion, up $73 million year on year, with organic storage revenue up 6% [23][24] - Data center revenue was $189 million, an increase of $37 million year on year, with organic storage rental growth of 26% [25][26] - Asset Lifecycle Management (ALM) revenue was $153 million, a 70% increase year on year, with 42% organic growth [28] Market Data and Key Metrics Changes - The data center market remains strong, with pricing trends showing renewal pricing spreads of 13-20% on cash and GAAP basis [26] - The company expects data center revenue growth in excess of 25% in 2026, driven by a strong leasing backlog [27][31] Company Strategy and Development Direction - The company is focused on driving double-digit revenue growth supported by strong cross-selling opportunities in fragmented markets [31][33] - The acquisition of CRC India is expected to enhance the company's digital product portfolio and capitalize on growth opportunities in India [12][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining double-digit revenue and profit growth, supported by strong customer relationships and operational execution [18][31] - The company is increasing its financial guidance for the year based on strong second-quarter performance and positive outlook [31][32] Other Important Information - The company invested $477 million in the second quarter, with $442 million allocated to growth CapEx [29] - The quarterly dividend declared is $0.785 per share, with a payout ratio of 63% [29] Q&A Session Summary Question: Data center signings came in lighter than expected; can you elaborate on the slowdown? - Management noted that while the market remains strong, customers have been prioritizing large campuses for AI, which has affected leasing activity [35][36] Question: Is the slowdown in data center leasing just timing? - Management indicated that the focus on large language models has shifted back to their core markets, which should improve leasing activity going forward [38][40] Question: Can you break down the ALM growth in the quarter? - ALM growth was balanced between enterprise and data center, with volume being the primary driver of growth [45][48] Question: What are the dynamics in the hyperscale decommissioning sector? - Management highlighted their competitive advantage in providing secure and flexible decommissioning services, which has led to recent wins [52][54] Question: Can you discuss the margin trajectory and flow-through? - Management confirmed a 47% flow-through margin, driven by strong performance in the global RIM and data center businesses [60][62] Question: Can you clarify the revenue from the treasury contract? - Management stated that only $1 million of revenue was recognized in Q2, with expectations for more significant revenue in 2026 [64][69] Question: What are the targets for megawatts this year? - The expected range for new lease signings is 30 to 80 megawatts, with year-to-date signings at about 6 megawatts [72][74] Question: How is the company positioned in the data center ecosystem? - Management emphasized their focus on AI inference and cloud infrastructure, highlighting strong demand in key markets [78][82] Question: Can you elaborate on the growth in the digital business? - The digital business is experiencing strong growth due to unique capabilities in managing unstructured data, with a projected run rate of over $540 million [87][88]

Financial Data and Key Metrics Changes - In 2024, revenue increased by 12% to $6.15 billion, adjusted EBITDA grew by 14% to $2.24 billion, and AFFO increased by 11% to $1.3 billion [8][42][56] - For Q4 2024, revenue was $1.58 billion, up 11% year-on-year, adjusted EBITDA reached $605 million, up 15%, and AFFO was $368 million, up 12% [37][41][56] Business Line Data and Key Metrics Changes - Records and Information Management (RIM) business grew by 7% in 2024, with Q4 revenue of $1.26 billion, an increase of $66 million year-on-year [15][44] - Data Center revenue grew by 25% to a record $620 million in 2024, with Q4 revenue of $170 million, up 24% year-on-year [22][47] - Asset Lifecycle Management (ALM) revenue increased by 119% in 2024, with Q4 revenue of $112 million, up 118% year-on-year [27][51] Market Data and Key Metrics Changes - The growth portfolio, including digital solutions and data center management, represented 25% of total revenue in 2024, up from 15% at the beginning of the Matterhorn initiative [12] - The company secured significant contracts across various sectors, including a four-year contract with a Fortune 500 company for records management and additional services [16] Company Strategy and Development Direction - The company aims to continue double-digit growth driven by recurring revenue streams and strong macro factors supporting demand for growth businesses [14] - A focus on cross-selling to a loyal customer base, which includes 95% of the Fortune 1000, is a key strategy for growth [14] - The company has authorized a 10% increase in its quarterly dividend, reflecting confidence in future performance [14][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving consolidated growth in excess of 10% for the foreseeable future, supported by strong demand and operational efficiencies [13][14] - The company anticipates another record year in 2025, with revenue projected between $6.65 billion and $6.8 billion, representing year-on-year growth of 9% at the midpoint [56][57] Other Important Information - The company has a strong balance sheet with net lease adjusted leverage at 5.0 times, the lowest level since its REIT conversion in 2014 [54] - The company is focused on improving profitability in its Consumer Storage business, which has been deemphasized in favor of more profitable segments [102][105] Q&A Session Summary Question: Can you elaborate on how organic growth in the ALM business in 4Q was split between volumes and component prices? - Management indicated that organic growth was largely volume-driven, with component prices remaining generally flat [63][66] Question: What's your expectation for RIM volumes in Q1 and the balance of 2025? - Management expects RIM volumes to be flat to slightly up, with mid-single-digit overall revenue growth anticipated [71][72] Question: Can you discuss the implications of the DeepSeek announcement on the Data Center business? - Management noted strong pipeline activity and did not foresee any reduction in CapEx expenditure from large customers despite market noise [78][82] Question: What drove the churn in Q4 and what are your expectations for 2025? - Management explained that churn was due to a couple of long-term clients moving to cloud solutions, but overall churn is expected to be below historical levels in 2025 [94][95] Question: Can you provide insights on cash renewal spreads and capital recycling in your data center portfolio? - Management expects cash renewal spreads to continue rising due to demand outpacing supply, and noted no specific plans for capital recycling at this time [120][121]