Earnings call transcript Q2 2023

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Operator

Good morning, and welcome to the Iron Mountain Second Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

I'd now like to turn the conference over to Gillian Tiltman, Senior Vice President and Head of Investor Relations. ahead. go Please

Gillian Tiltman

We're Good Hytinen, XXXX Andrea. lines we'll will Q&A. welcome our Chief Executive After Relations to to Meaney, Officer. by Thank and Financial Executive President conference morning, up Vice call. open for quarter Chief website. Investor our earnings available and we remarks, here On second the today materials Bill Barry you, Officer; on and joined our today's prepared refer and call, President

statements, statements to and and harbor from our cause regarding risk forward-looking materials, All contain XX-Q statements are to risks Slide results expectations. our actual safe materials to forward-looking on major Form factors forward-looking uncertainties. for earnings Today's that X in including report language those differ our on the today's a could our quarterly the statements. subject discussion refer Please earnings of

In addition, financial our we results. use presenting several when measures non-GAAP

these financial reconciliations supplemental measures the our included have to We in information.

call to With that, over Bill. I'll the turn

William Meaney

Gillian, you, today record for results. and to of quarter second time Thank our all discussion for join our us thank you taking

again to expectations as evolve has and once focus their dedication execution, our innovative service, our exceeded of customers team with laser on of performance our finding to strong serve Our our legacy solutions reflective customer businesses. they

to we expectations across range of as enhanced the record of Mountain the $XXX to EBITDA share quarter commercial and empowered Project has solutions we performance team revenue sell The Matterhorn continued and to billion quarter. model our our ahead prove achieved last the successful we operation of through created excited entire portfolio. products is that I'm second quarterly million. in $X.XX our highest of ever provided is This

wide to high our today customers' We quality our partner to us needs. range pleased offerings are serve be a nimble the of with positions which and

center and some in delivered businesses. and digital XX% storage data highlight organic both revenue drove growth high-teens in we the quarter, organic our second growth our of results To rental of services

share or our increased pleased per to $X.XX third annualized, to in share of We are October. dividend dividend Directors that our to has announce $X.XX quarter also paid be with Board per our quarterly commencing

we percentage, XXs increase our when would ratio the to a As as before, AFFO reached the we low dividend. mid said have payout

the ratio at just quarter the was payout Our end of XX%. second under

I would the some broader record second led wins, results. our begin to like our discussion of of to customer quarter which

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will and space their will the with transfer facility secure needs providing before Our and our future for management. storage Smart problems records they their address Sort customer over optimize cost next win tailored years. three commitment solution them to deliver customers' an exemplifies efficiency our solutions. It solving the to for Mountain This Iron

in order to led accommodate and the real portfolios to work. their pandemic organizations has COVID-XX world current The remote estate around hybrid reassess

our IT years. than sustainably. securely assets offices is IT our to portfolio our the Lifecycle Thanks that optimizing office next these more records, to relocate America Mountain Clean breadth the partnering our with remove and two demonstrate to are Asset example or closed the practices, from we of equipment, to their across solution customer Iron from accommodate XX assets solutions a decommissioned and estate who and that able Management Start customers products customer are Our are to real of North One services. and solutions, being this we changing value also and offer are working across chose over helping offices decommission

momentum our sector, growing end-to-end for industry see process customers to solutions, focused solutions management. as such business and We public business to digital with in continue turning areas us for

proud Greece worth under million. the Helinick two real supporting the are a year we held in example, to $XX digitization For be of estate contract Registry records Land mortgage by

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acquired in services industry records we us were partnership. through enabled makes We tech storage Clutter, North demand self-storage on storage XXth consumer investor This and services commercial provided conclude company. controlling leader a June on in with acquisition in operational a a the the and interest previously minority To management, valet in Clutter America.

year. an used muted see business, continue to memory, from hyperscalers. pricing drives improvement to ALM receive we business or next is highly we ITAD see In traction. manufacturers recall part being That hard enterprise decommissioning, and stabilized, for we as pricing; head which are management, and CPUs three has reselling Moreover, lifecycle into or the we component and relies components: hyperscale growth asset asset IT dependent original later categories, of said, do pricing you this that on and equipment largest on these is to Turning OEMs. marked will disposition; our seeing expect we which

last segment, cross our example, For bookings range products the Mountain a quarter enterprise has up on selling the second of focus XXX% year. versus driven in

Services this area segment, have will in another last signed OEM OEM we the or and MSA we our quarter. quarter that you recall For Master a added second first with MSA Agreement this

comes racks and strength Also relationship the area, and an Iron locations nonessential the our technology servers us ALM specific years. the A health a has manage in decommission contract The leading with has help to the software and our for their our trust the a five renewal center. Turning industry. in next has benefited and/or customers over from inherent our contract many IT to from in of company to in recovery, IT of ALM, them of Mountain's assets Iron services team Mountain secured ALM care recycling years and selling equipment existing customer appeal resulted in United wins for good States. decommissioning, of asked our cross disposal which of records solutions example from X,XXX management a at data

of Opportunities enhanced, integration have part to customs security, our knowledge like the the area. a and this the significantly remain IT acquisition for ALM, a excited through extend in about business, services where of value and differentiator industry to reliability we we of are shows achieving we to whilst has Iron very We component around strength are gained able provide the this we how remains brand are fast been the thanks expertise Mountain's and growing the growth drag pricing business side in renew.

the to year first our business, through which includes quarter. of this data the Moving XX megawatts, half X.X leased megawatts we center

first particularly exceed As our projection our Due some confidence from megawatts is earlier said our add now the deals This May growth than XXXX. XX some late-stage original we feel pipeline customers the they confident the of quarter as of signed teams record half as in well we to largest our with new the of AI. sales we our pipeline capacity as was size strong will of we new expected. thanks in to as delivering strong in first

note For campus Nova that are up megawatts nearly to well XXX is with pricing our with this very our example, In we capacity moving positioned we appreciably. of pleased are on secured. important market, fully unleased

the country. of Staying business, I our with and with the the customers demonstrates a with exciting our and opportunities for win venture that to services a India value like in expand would to Werks joint Web footprint in solutions highlight our

company progress As is with major a key provide processing company's media data facility X and and extra a we've growth capacity there deal potential discussed storage almost to the Mumbai center other a our at megawatt at closed the multinational before, in to for we a In win our megawatts capacity X this add further India business. at for focus locations is with second of India. a our quarter, our

understanding are plans in needs partner of to their experience convince capacity helped handling their Mountain's Iron Mumbai customer long-term that racks, centers our data best of media Our we industry wider high-density our team's expansion and us as the grow.

This planning Crozier of art transports example and Fine to we storage, the in are sculptures major Recently, business support and we gallery like top-quality as a Kingdom out would the from with partnered by US, pack of businesses we services in to I detailed artists. in the and preparations involves one Continental Arts globally world. Finally, the Europe. United exhibition enjoying our XX an build success an fragile integrated logistics, to well-known few Mexico, mention art and the

important this We for proud Crozier of unique like teams the and our provide that with associated our exhibitions to expertise are be customers one.

are we we as this is our results delivered conclude, proud working. quarter that evidence is the this record strategy To of

storage continue and mountaineers. customers, we the range, of Mountain more leverage each of for of not deliver hard our potential our solutions to As for expand of footprint our our innovative be grateful could work tailored services, the and I entire

Our and AFFO strong is sales Matterhorn consistently growth, showing whilst our fueling the program way and dividend. delivering growth

We excited future bright energized peaks. continue And to are for the new ever I’m more ahead. reaching than

the I that, With will over call to turn Barry.

Barry Hytinen

X% up the In businesses. year-on-year you to projections the solid record and we results. performance data basis call an discuss Global in our second was provided last Bill, above our and the billion, center both RIM driven joining we a on across to on metrics, currency in Revenue quarter, a organic X% by and all and thank our exceeding May. outperformance all achieved constant reported Thanks, on shared $X.XX Revenue expectations team basis. our us grew for

which and revenue, revenue stronger rental key a this data and XX%. reflects strong our top grew the me, growth. For highlight storage represents of quarter rate in of positive management, year-on-year on center in from acceleration commences, contributions a was trends. I'll is volume comp note, organic This performance an

Total down service the constant with previously discussed currency million, This our revenue price projections, X% on which consistent factored year-on-year in component was was a declines. $XXX basis.

Importantly, component on sequential pricing second basis. a quarter the in consistent was

represents has this While year-on-year, a are that stabilized. we pricing pleased headwind significant

As prominently. most a that reminder, affects our renew business IT

service on was business, ALM constant growth of total a company in our resulted basis. Excluding would currency X%. X% This up revenue have revenue

or $X.XX $XXX revenue Adjusted call. AFFO a ahead revenue last million respectively with center share second $X.XX well in management up on EBITDA our Adjusted data and by with key quarter EBITDA strong our mix. of X% expectations, driven of being last million, commencements up XX%, year-on-year and This the and million the per line expectations shared was we record, year. $X $XXX on from was was margin basis, was drivers. the new management

an business X%. In of billion, revenue volume Now segment $X.XX the were Revenue and to strength rental increase XX% continued organic of service in $XX RIM We turning of offerings. $XX RIM increase by of Global $XXX revenue of was million of year-on-year, storage year-on-year quarter, to positive and management million an growth achieved organic trends our contribute reflecting year-on-year. revenue adjusted performance. second core EBITDA organic strong X.X%. growth Digital revenue up growth which million, Global delivered Solutions, X.X%, driven

strong revenue our XX%, organic improved perspective to total data pricing. growth was XX% a particularly business, achieved the by an global center team rental and growth on revenue [Technical commencements Turning deliver Organic we storage basis. at driven Difficulty] From

in we the were down fit work of As last given performing we the year-on-year, services data half center were projected, out first year.

quarter the out of As a last reminder, XXXX quarter specific represented of services. the second fit these

We million, will normalized center more was on forward. line $XX EBITDA representing have growth. a comp adjusted XX% Data this going

signed we XX to total leasing, megawatts new the to year-to-date Turning expansion X.X bookings and in quarter, bringing megawatts.

to full sight for this we fact, in leasing our of track projection Bill pipeline, the our with megawatts. we the are of As to And building year strength have XX exceed of mentioned, on achieve line well projection.

asset life basis, the gave revenue on our on slightly cycle second of call. the Turning grew to ahead quarter, X% last in a management, we projections sequential

all We ITAD, are verticals across hyperscale our three decommissioning; seeing which positive business, ALM momentum enterprise and OEM. include: of

mostly last tight but that lockdowns first year, free second You of returned in half was China the to of will in recall it the half. restrictions

a as much forward the we As more going anniversary result, be favorable. quarter comparisons second will

away it sell into market largest China, components from the While we which is are we diversifying today.

To quarter factored even XXXX. lockdowns outlook prudent volumes Industry this not as low for analysts pricing component eased, while into be pricing March the and pricing in fourth At XXXX. levels. improvement of project any improvement significantly have the more beginning record year, in to increased, we declined by our

capital. to given pipeline increase million growth an we XXXX, our now million building year-to-date recurring. invested $XXX In up our million $X.X expectations. total billion, our be development from to quarter center This second reflects $XX data $XXX expect strong expenditures we plans In $XXX and to approximately I of prior leasing which Turning million, the mentioned. was that was capital and

the lease times, performance with adjusted year. quarter EBITDA from With we meaningful the strong Turning to ended leverage net X.X improvement reflecting of balance last a sheet.

at quarters lowest We since level have for this the at level three remained March our past XXXX. and leverage leverage

our at increased to data in we with Importantly, XXXX level this even center. investment exit expect

Turning dividend. our improvement a year. this and now approximately to payout XXX was XX.X% basis four last from our trailing basis quarter ratio point On time

as of to payout is in we term are share should returns. This shareholder of ratio an increase paid long has be our our to to the to settles meaningful to commentary rise. our our a you into As we objectives, consistent board you October. pleased percentage as per directors drive remain dedicated saw are it low earlier as dividend $X.XX announce while bringing our We mid today, XXs to the authorized dividend approach disciplined of to quarterly that allocation AFFO, to our that early expect funding to continuing with X%, capital growth

And now, our turning to projections.

reiterate For the our our half reflecting and year outlook, the guidance. year, pleased performance full strong first in full are we to

AFFO EBITDA $XXX $X.X share quarter, approaching approximately per we million approximately of in and third For excess revenue the expect $X.XX. of AFFO of billion, adjusted million, $XXX of

would to guidance. I provide for a context like bit our more

that, as In terms of to revenue, To our third quarter projection equates to investors prior points. growth of frame compared following consider X% recommend would I the year.

the First, the half. year third in much ALM compared fourth and to prior is year of the comparable this easier in business first as quarters our

a quarters, actions, Second, go third will we have provide in which incremental into fourth and management effect the and will nice revenue tailwind.

consider Lastly, several of accelerating growth you in are trends driving rest for if performance. the been has the quarters underlying our the efforts Matterhorn now business,

business's the rate is the our quarter, the fourth second the is first XX% quarter reminder, And projection third a the X% in as For and just of for was growth rest the example, growth of year. excluding easiest our quarter XXXX comparable in business, in this ALM quarter. our X%

conclude, team and growth remains on driving to continues To well agenda. our execute focused our

team We and for our have this entire opportunity I our well and pipeline achieve their like objectives. would we to growing thank are positioned contributions. and a to take diversified to efforts

the And with line that, please for would you open operator, Q&A.

Operator

from session We’ll Goldman our now Tong question And begin [Operator ahead. will the Please Sachs. go question-and-answer first Instructions] George of come

George Tong

on component and deconstruct What pricing you on declines. see was little the impacted ALM Good business, prices. component noted volumes? did saw specifically elaborate Hi. you you stabilization price a that? And would Can signs you and bit trend you component morning. in how by between that prices, In more performance ALM of Thanks. growth

Barry Hytinen

has this for George. me Hi, Thank the standpoint Okay. price with help From Yes, component decommissioning you been This is the business a that. let unfolding and question. Barry. of way year. the you

across impact been essentially year, of the also it CPUs, component a from the And, this appreciably. components that for record early pricing the frame, time lows. dropping year As we're And all really year, various early February about players reached significant many you pricing this was quite over And late the know, time had in into for and Iron both by other that's that gambit memory obviously to technology but Mountain, all selling. component has industry. last

follow of the used I think And components, and in many the to this, significantly would marketplace. importantly production of have reduced what directly course, OEMs I'm is their you've seen, component and of correlate limiting now following sure been with which pricing you new tends have new. supply

we've seen lows of the been hit in is, timeframe the what so, the consistent. very And has pricing component February pricing since here kind importantly,

fact, memory pricing. elements of have In some components seen up. We've in certain among that other ticking component been

that, outlook pricing in that's at our this what look there's we've prudent our at available very supply estimates publicly in then that plan. of into way process move light So, our is, you and low in worked there we component through is level a have increases outlook thought levels. though, analysts, year are component is as George, expectations. fact XXXX And we record for -- to sharp this for are many industry next in and to pricing When project of to the pricing demand year data, component most lift this very, keeping begin remainder

As baking outlook into we're I that not XXXX our prudent reasons. said, for

a be example, bookings the a a business year-on-year. the And in million for second up ITAD our total that, speaks quarter the quarter, in prepared fourth up will our business, that points tremendous made that quarter. amount that in to on sequential are in in the ALM then remarks his but Bill anticipating enterprise will again few are just up third dollars We be basis

decommissioning And that teams OEM for intermediate wins our more been which the important and business think winning us set very up for have winning the are in broader decommissioning across of space. lifecycle well We management us, very asset term vertical. course, I longer

a which in the mentioned would say us. essentially good forward we on just I was George, equivalent, relates of sequential favorable for is I've as felt Volume volume about. light what And basis it pipeline to

we that comps we So getting hardest the through the feel year. are of now

$XX we of $XX million the with know, appreciably million, and third the quarter. $XX so second $XX last quarter the $XX were were ALM, year, $XX million to million you the or million, in in As million we dropped revenue That in quite fourth. -- first in

goes comps the point that to So flat up, to Thanks, about my we feel well being George. easier get pricing with positioned.

Operator

The Crossett of Nate ahead. next go question comes Paribas. BNP from Please

Nate Crossett

you. Thank

still it guess, your service from this revenue the maybe fair say, speak to quarter should the storage it So And here? remains ability to very XQ? to is And we that year-over-year, expect strong. I growth then conversations comment low that just just you maybe trend recent in like, on customer price? growth to Can maybe rental push out is that and

Barry Hytinen

Nate. there. Barry. Couple This is things Thanks, Okay.

yes, revenue And services, for which the essentially service give that if $XX the on service you look example, big prior right, X%. about line. it that's growth, the was revenue as a because on Global at fact was our service up you the that year. in because, at half total the is you you know, that that there service really And all I'll revenue drag look essentially impacted some RIM, of that total on you it the at point million the company's in over revenue, of was ALM ALM are So, business when by thinking was completely a

revenue in on improving. total is furthermore company's drag ALM positive then fourth of service be by quarter, quarter longer a will should frankly, and the And third because, revenue. in no our the so, be the service course, It

fourth may think it fact, -- it I may there's the In to be rate even accretive growth a service chance by in quarter.

received. alludes and management revenue growth, strong -- have In well our performance to, there rental revenue your storage terms been question of actions as had very have we

of value of such that course, customers understand they and -- enterprise around focused and all Mountain for as core asset on offerings that our We things are, can the center records provides, IT our value significant both also sell that among other. of services, driving but sure in cross the Iron data terms very disposition, offerings other making we

into actions consistent particularly and management because of last quite revenue terms fourth third in the and the quarter, the from continue in Nate, has where I standpoint, should in were well. so, continue And incremental third outlook. revenue it's actions a year modestly more remarks, expectations. should trending helps you out. it quarter to growth, this that And spread timing to our to some in year. of rate, may a positive expect we fourth positive total growth our It's revenue And a as comping we the you with shifted just do standpoint, what expect doing revenue of storage little revenue have management the quarter rental prepared you And expect year, been last the And quarter. been we were that as remember, very from bit be mentioned volume

So be, on rate. a that prior alluded to call, nice these the as and to said, I new growth incremental to tailwind management revenue I actions that's will our plans today

the question, you thank Nate. So for

William Meaney

add Nate from storage some space sort That's out we the companies for both increased facilities that volume, of of our you just to more as as trend I visit is or they that, highlighted depoed would they that And as of the than remote as at hybrid. an or people office it much volume in use decide have don't all thing for shifting is the want or rather their anymore. storage yielding on clean picked Yes. are up wins one probably workforce

as, on a companies ITAD of are this both cleaning the [indiscernible] in both behind tailwind increase bookings, out, ITAD as XXX% storage as pointed in it's out, year-over-year kind well business. Barry the As because

Operator

go Please The next JP Steinerman question comes from ahead. Morgan. of Andrew

Alex Hess

storage then for percent to -- us are for you is with linked remind in Global Hi. RIM second. Alex Yes. This just on price revenues a manner Steinerman. look of maybe CPI the Clutter, Andrew on what Maybe standalone in floor a what on some Can into dig Hess and your on and like cash company we that And some flow Thanks guys. around had just outlook that as own. thoughts maybe lease understand quickly its factor business, some terms which issues nowadays? how does

Barry Hytinen

Alex. Okay. for It's Thanks those questions. Barry. Hi,

with number customers, confidential and don't proprietary I reasons, you our For XXX,XXX I to linked before, have -- large say are But we indices. too of very plus for our will, our such of is we choosing long would describe those the more characterize as essentially actions. paper a very contracts any that it, generally but as of specifically. of agreements around you XXX on a total is is our call value.at with not, which of know, to certainly are -- of There revenue sort is, follow some time, that number bespoke client allows relationships. aligned if said a as company I'll And we contracts. contracts The and largest us and are what driving you some, times affect you vast the the that will, small if like, majority may management escalators clients, standard, have specific what

Clutter, appreciate that to respect With question.

We minority valet as transaction that own about and Clutter And morning. a had help while who this XX% was have it joint just mentioned to the venture. that company with in now the is prior of a we be we business not a a to for form of familiar As others may a self-storage. that's on the stake Clutter.

services what been a we'll been bit a mentioned, a brand in So manner. the business from providing, of will and had principally some million On building it basis, over is some our demand, on volume been said Clutter too a in, when $XX little as that pay is all Bill to buy contribute in back aggregating and end that will, done, had of various focus have net assets. consumer the is for business bringing also a tech if enabled time And fair consumers. we Clutter's you storing

see you'll our on So expense P&L. through and income that other line the

your we on New revenue a and maybe this for to seen we be of course, our for likely revenue a were prior standpoint, million standpoint will It'll as we recognizing on over services from were in incremental Mountain minority of being And what you a our interest recognize from because, the of P&L. We'll now Clutter basis, recognize a move $XX an were an from revenue And bit Year. filings through would purposes, Iron to modeling that the EBITDA because, have be doing $XX previously. million. quarterly this growing absorbing we our into excess quarterly basis, course, from Clutter

As they've I said, brand time. been building some for their

ultimately of let's it itself So of modest and a been something vicinity operating EBITDA be businesses thinks positive say, absorbing we to by, quarterly out of to together. combining by synergies a the has Clutter generating that drive Clutter Enterprise -- basis, is the $X a perhaps breakeven quarter couple EBITDA two XXXX, as we able to on to in loss million a drive over and expect the time

of positive had I'll relationship just Iron the been previously. on course, note, generating EBITDA Mountain

from clutter just referenced absorbing building course, the the is very about feel we note it, the is I that there elements we in of brand itself. despite guidance Clutter of drag drag last negative incremental Alex off -- enterprise that reiterated here second will I'll thing little the purely that So half. is, absorb our good of The and

questions. the appreciate So

Operator

The Shlomo next Please go comes Stifel. of ahead. Rosenbaum question from

Shlomo Rosenbaum

to the gross about that you have margin Could with They from very the --look were year-over-year. little like the trends? almost about basis up down just particularly comment. bit I the do labor saw ALM talk trends the much. a you always Hi. you else? something in points Does And, services, they were Thank down costs were XXX like thought wind Bill, or underlying the something could maybe also, talking I business. I about you add in volumes XX% in year-over-year.

just could comment historical seen you getting the than you trends If in markets we've mature on what are before. that, more positive

in more trends going hospital area something been like, a that bit that an to little Is lead trends. that contract. was mentions, weaker a volume positive to of You that historically more

William Meaney

Okay.

start and labor me volume. in terms with trends of costs Let the the the

think, to question that, as Nate the is, slightly I flat, see, So to is on volume first, starting up. Nate's overall, -- I off is was volume, trends as saying you can the

fueling is of them Clean type that office anywhere are. the that that on ALM in direction. it's on, more XXX% trending uncovering, change. is it they say, some a in image back the see as in large a we in then that we back, provide think side of They it's storage, lot that and business a people going I aspect. so we a the actually or bookings getting a -- services And cubic XXX new Smart be also being other as wouldn't really hybrid lot you for operating uncover our of as we and see we depoed. very what both And But we right physically is employees traction see, well we trends going to the can don't remote we In base demand. see which million that it's driving solutions, the massive enterprise Sort this we what is we're see. about it's a also to but or the say have words, come information give working So into to to feet, more can It their areas, to Start serve whether growth if increased the the storage get

call million feel So that are, the we imagine, can trends that I is a up. -- quite cubic the definitely good what trends you right, on feet but hand is, before about even really where world, that around tailwind I the on described XXX for macro overall I to massively, it labor And costs back but --don't Barry business. labor you're is costs, are it like change trajectory is overall,

to And we in we labor Some is mountaineers terms making as as globally We're the projects our is well bringing they us. And company. mountaineers, or of a -- colleagues. it customers our other impression sure to are number want and a that is into part business -- around of inflation of we of And services go the sure after. ramp, world do our on, first in the we environment challenging ahead new families after, that and core ramp see that we well their really been has have are make areas we're looked time. obviously that because looked it's the our the for then the some the

Barry Hytinen

up point Yeah. when sequential up increase a [Technical would Bill was Difficulty] And X%, would on while was labor revenue on the out made quarter reflecting up Shlomo, was relates actions on year-on-year. I service pick first is just we Barry. basis, [Technical have there in improved seen the similar this then, as sequential just to X% that about referring to. you down basis, a wages I'll a it the Maybe Difficulty]

lower our processing has that recognizing alluded are think As to your amount a of still because considerable are yet question price. do component renew, all to, we with pricing, you when a about we much IT volume, it,

impact to the were of up ongoing frankly speaks the the nicely, management. excluded margins so, the and the quite if lifecycle component that team of to trend the you in driving gross pricing, which productivity in asset rest is actually core And service

So we've a as when you got recovers, that think leverage happen pricing could with in margins gross business. lot our about operating of what

projections accurate next think feel nice for the year, be forward anywhere to pricing good lift will about we're I So where look see the really going I close if industry are there. a to

So thanks, Shlomo.

Operator

comes of from Jon RBC. Please ahead. The next question go Atkin

Jonathan Atkin

of Thank you. Couple questions.

in the There route your and of other frame capital established bringing data to lease ahead of standpoint? in center development thoughts co-invest. transaction to First, recent just maybe a business the where on and about kind pursuing was where Phoenix. kind then, obviously interested of a data the thoughts And capital in is some capital and in in and India from the countries just pipeline your the in players opportunities development in projects of there's third-party center third-party a Thanks. [indiscernible] interested [indiscernible] that in your to in how exposure

William Meaney

I’ll Thanks, Barry. -- horizon Okay. to we the turn on the it start over and Jon. I'll what data see with the center

of XX% as net up center I grow basis closely that, And pleased extremely continue as is see all, we we cover the in with triple Virginia and up continues business pricing is know, our like I know some returns the keep to markedly, hyperscale the to you first like also, markets a so you on as look industry around Northern pace. pricing really think how grow. we're segment, data

we're I capital strength think top investment -- I Based on management our right fuels cash conscious dividend, that of and that of success in the pretty lot we XXXX. in being we're financial beast. our data size it having, billion other on that our terms amount we're mean, always records is and That a that globe across for I mean, also kind development our fuels of that fund million of it into tremendous at the we had the in much business, $X of that a just we not terms a have of that but said, services business of -- the which actually projects. like you're only how pipeline Difficulty] looking the pipeline, centers. mentioned is the already fortunate generates Barry capital the the of [Technical of

profitability have terms mature that big drive So amount operating the scaled a into itself a business kind has where solely have to terms to date use situation funds from put funds say very in people we because for the space a business we of it’s of lot look we're part consider fund itself that that to the is center company We in growing, and how will high to going but able only I in that in development. of that a wouldn't it forward a to of of development. a are actually capital some our a to of leverage and

duration way or assets maturity know, the for But capital that September that at long as already, can type times I presents tap that plan people out a we're center we but seeing in if into you low bit do feel funded the have term assets. a the relatively now. or in looking if as terms half when we're that it of do generally portfolio and stabilizes. that and capital, pipeline. just some data year Day, stabilized we terms where laid what we And pretty said, assets, see good that our fully returns itself. we'll in first of are But because will our yielding, being taken imagine we of that. of That in that there's third-party opportunities, ahead as third-party we've doing little on probably this Investor would that typically especially capital look of you do plan overall, the stabilized continue the that we last a and of recycle we've and boost to that But the we say, in about we I we near opportunity of take been -- done around to long couple funds growth stabilized have our

Barry Hytinen

very noted, But comment one Hey, Thanks of we there there individual to the back of in ours clients. and obviously for filings on would client obvious as We of That's natural public purchased ownership are we out Jon. well you It’s reasons question. long-standing centers they to their goes to the as there. in domain that are Arizona. in things prior a as perhaps that confirm for some our Barry. relationship that data that tend don't the

we're me it's -- sort pricing type [Technical course, goes for our ways are where In -- phase essentially X terms a X facility, X, it long on of back [Technical XXX% not we're and, situation a XXX% that of it mentioned contract a and and XXX% in as a are would suit of I Scottsdale X, build is prelease. now to them leased let way. what in under almost lease we a second we quite be this in Difficulty] that Difficulty] well Arizona, intently with were XXX% put construction because, of frankly, standing for

not -- we that, Jon. just amount and just want very between pricing, triple a on but comment, today, entities. large of, And it's should seeing see wouldn't this. you that particularly confident filings feel hyperscale client, the about we the have pricing And in say, that a I'll would I of see up relative I in beyond we're XX%. in maybe I credit where basis revenue pricing let's That light the So add to two net on general,

trending are. center where And on so, a macro data we feel very basis good about and is where we

megawatts. hard unique Difficulty] And XXX build thing to Difficulty] building facilities a phenomenal figure on And prelease continues job, we're the have look was that. you a story our, leased Bill And not out on and nearly one last and think fully to to about megawatts. pipeline everything we're part appreciably. We're think our is, to about construction that mentioning. And quite construction as anything, point, just other the is, when we're on at data which another on XX% [Technical of I we're XXX under start center build that [Technical there's we working operating on we're doing thing about to

business our Thank center So Jon. about you. data we where is trending, feel really good

Operator

McVeigh of ahead. Please comes Credit The Suisse. Kevin go question from next

Kevin McVeigh

unpack sure reiterated Barry, CapEx the Great. you I puts the bit? lot. Hey, just comes looks takes, about little it pricing Thanks like make disclosures. not revenue understand, if because like so it It much, for the and and that want I can year. to seems a But in. the we thanks going full a think a that again, sounds lot up is is And, be bit The the ALM conservatism? better. given may we or is put but together, just that not the a about of you the particularly what think just, in step-up as the full like cash incremental year, the Is how be, should is should little Clutter the for QX operating, flow And all modestly. looks revenue It have the offset that like some business, just is better. of little to it the a going cash CapEx. guidance use

Barry Hytinen

Appreciate that. Kevin. Thanks Okay.

well growing. as because one as our both well. has our Global commencements growth been to is teams, very accelerating teams, our that's management those. I And actually has revenue that our thanks And of very, rental right revenue doing You're growth data very And strong. storage as program our of RIM rates been mentioned, are some that center obviously, being

to out already that's You as I going CapEx preleased. our build data mentioned, portfolio center is that referenced up, that's

are continues which meet demand, we ramp. all So endeavoring customer to to

relatively year it's now the of of stabilized right, in was -- because, beginning still ALM adds down. of back was a We are Clutter at revenue. the a the Kevin, we course, year are half, we've of -- where small more recognized conservative the pricing stable amount the pricing. that coming than beginning And In of of terms levels still were you those component with at probably touch

are As move prove as we I we through. may conservative year, but that the halfway through only be said, to

to Kevin. So we ourselves, ahead to try get of not tend

In the of incremental cash generation and of compilation the CapEx. terms

Here’s what I'd underscore.

that with We have reiterated a be we X.X times which consistent multiyear our and low. will leverage level where is we year expectations end, today, at are at at

seven, hyperscale have we levered more feel moved on We're good generation cash that investment. also center generating to quite business. returns are eight and the like eight, from really of So level firm. incrementally nine, of Returns on returns the the retail data in about higher CapEx on cash kind

basis. where are feel combined things good about so questions. appreciate your low into And really digit so, on that We vicinity blending Kevin, double trending, we're a

Operator

The go Eric of from Fargo. Please Wells Luebchow ahead. next comes question

Eric Luebchow

Hi. Thanks Two, I the for questions. could. if

see about for help types to to your that you demand just been requirements we're some does change there higher hyperscale And you. AI design kind any the you how of center Thank to that at industry? in that So, there? talked end densities resale Any beyond shutdowns China on this reduce are required business. hearing wanted again the then these business. China to secondly, tied touch I Has that of move concentration diversify to know wave the generative about COVID think deployments? data center are markets the pipeline. all you of you your impacting on And data for the of ALM

William Meaney

Thanks, Eric.

and [EON's] trends the this on we're that seeing, I industry for yes, been So, mean, (ph). following you've

you these to run there's trying maybe conservative. lot to think a AI right? the growth wave bit with little probably more but we still power very did mean, now the I of I scale, ago -- pace amount we high another keep language And in of really I is growth programs. required large thing really year with -- a they're associated see the models saw they're same high because accelerated have, a of compute

have we we capacity. see confidence expect. seen looking our of And with the amount were -- of such activity speaking all for -- just actually that guidance exceed terms we'll more very, It's And us year in type, we not of full we virtually hyperscale a very it's so, that's our why largest customers but coming to leasing original it just strong. is

of that the customers terms think much to us in to of the you're and racks didn't that requirements. support large to is customer densities. of of I'm And some of us the our deployments water doing that Luckily, right also we in coming kind are looking of And be the mean, built actually deployments, I specific half cool seeing number to design. design actually have we asking flexible. deployment, Now very ago type requiring these and to designs a density meet a that for year to now are for they're these any probably customer, I higher. right say we're year, we higher course, And

requirements. at looking of the quite some to able and density rack that in cooling easily. and they rack, using to water density are are we're some I different amount a accommodate specifically higher you're the we support right. want cooling But in So methods with the mean, put to power folks the

Barry Hytinen

it's, Eric, And Barry.

relates that the certainly it about is talked team. as we've of focus before, China, from away diversifying a to As

for to specifically us We we the main and channels, we've is are steady China organization progress, we have of course, in as around making before, But are because, ALM the but regard. our is added said that slow diversifying it downstream market in as into there selling we certainly Asia the that's components term Mid-East. at Southeast are and branching We have been a focus, looking well think as the intermediate India. U.S. as key over the well, Europe and opportunities more and in into throughout

other on is are is, two years you building were the and five decommissioning, centers and link prior. -- build thing there, hyperscale are let's -- service, when questions we about opportunities So are decommissioning those data into say, that generally that channels just The there we there think I'll put

AI this decommissioning data we'll how well, lost that years in this I've leg -- in space, the even about as questions we on in five decommissioning that us of were some ramp have of the the Historically platform does of ago. future. drive center that hyperscale to shouldn't the four it be future. leg substantial things much ramp things year development on so the And And now be significant us years for in it over grown, as we'll that put thing future. hyperscale this AI And are right decommissioning leader very had next And time? continue center larger that to decommission those feel growth decommissioning about years data that the in in And decommissioning I quite the provide be on. a provides is year, to about in opportunity going up in components another good the platforms our to And for course, put growth ago. it is, place think And place about hyperscale terms business of were five average. will another like,

Operator

ahead. Please come [Operator of go Instructions] will from question And our Barclays. Brendan Lynch next

Brendan Lynch

storage few ask driven RIM retention looks Thanks some points the my in the basis really of business, strong growth, like as in could I past storage morning. there business year-over-year the at, me, lowest contracted kind to those rate the maybe taking about and dynamics has but generated understand wanted square Good it's well. for -- XXX I you probably Global Hi. years. level of price, it that questions. the by you excuse on the

Barry Hytinen

Okay. question. basis. a that it that remind look on -- metric, Brendan. just a the for It’s thanks trailing at is I'll Hi, When you quarter you four

fell disruption, got you, of during what because period we is there felt is all bit there and/or less little and were after going So on over, like we on got have period what element the COVID COVID in switching the was -- going will. COVID naturally even seeing you've activity of if what client an you've you still

I we're are would say very customers relationships drive revenue we're educate you tell out. And in on management on look a continuing them that our the our revenue with are think, I how data that can We so, is on as up. for historic that day give day linked is that if value to very should the normal customers. say, to XX indicator outside the trend our bit of good. good catching available our But and that's our fact pre we and the metric years a not we that disclosure, find you'd in I you a of back over, let’s little a you tight question. COVID our there appreciate band -- we very and continues to management, -- volume focus in significant I we feel you And customer it -- very positively, standpoint. feel doing from will our levels last

Operator

the session and XXXX Quarter Call. This you Iron concludes presentation disconnect. Thank our Mountain Second attending today's Conference question-and-answer and may now for Earnings you

Iron Mountain (IRM) 3 Aug 232023 Q2 Earnings call transcript