Iron Mountain's Q3 AFFO Beats, Revenues Improve Y/Y, Dividend Raised

Iron Mountain Incorporated IRM reported third-quarter adjusted funds from operations (AFFO) per share of $1.32, beating the Zacks Consensus Estimate of $1.29. This figure jumped 16.8% year over year.

Iron Mountain’s results reflect solid performances across all segments, including the storage, service, global RIM and data center business. However, higher interest expenses in the quarter undermined the performance to an extent. IRM raised its dividend.

Total quarterly revenues of $1.75 billion missed the Zacks Consensus Estimate of $1.76 billion. However, the figure improved 12.6% year over year.

IRM’s Q3 in Detail

Storage rental revenues were $1.03 billion in the third quarter, up 10.4% year over year. We had estimated quarterly storage rental revenues of $1.04 billion.

Service revenues increased 16% from the prior-year quarter to $721.2 million. Our estimate was pegged at $709.6 million.

The Global RIM business’s revenues grew 6.2% year over year to $1.34 billion. Our estimate was pegged at $1.36 billion.

The Global Data Center business reported revenues of $204.1 million in the third quarter, rising 33.2% year over year. The figure exceeded our estimate pegged at $192.1 million.

Adjusted EBITDA rose 16.2% year over year to $660.4 million. The adjusted EBITDA margin expanded 110 basis points to 37.6%.

However, interest expenses increased 12.7% year over year to $209.7 million in the quarter.

IRM’s Balance Sheet Position

IRM exited the third quarter with $195.2 million of cash and cash equivalents, down from $218 million as of June 30, 2025.

As of Sept. 30, 2025, the company has net debt of $16.11 billion, up from $15.48 billion as of June 30, 2025, with a weighted average years to maturity of 4.6 years and a weighted average interest rate of 5.6%.

IRM’s Dividend

Concurrently with the third-quarter earnings release, IRM announced a cash dividend of 86.4 cents per share for the fourth quarter of 2025, representing an increase of 10% over the prior paid dividend. The dividend will be paid out on Jan. 6, 2026 to its shareholders on record as of Dec. 15, 2025.

IRM’s Zacks Rank

Iron Mountain currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Iron Mountain Incorporated Price, Consensus and EPS Surprise

Iron Mountain Incorporated price-consensus-eps-surprise-chart | Iron Mountain Incorporated Quote

Performance of Other REITs

Cousins Properties CUZ reported third-quarter 2025 FFO per share of 69 cents, in line with the Zacks Consensus Estimate. The figure increased 3% on a year-over-year basis.

CUZ experienced healthy leasing activity in the quarter. However, the weighted average occupancy decreased, while interest expenses increased and marred the growth tempo. CUZ also raised its 2025 outlook for FFO per share.

Crown Castle Inc. CCI reported third-quarter 2025 adjusted FFO per share of $1.12, which topped the Zacks Consensus Estimate of $1.04. However, the figure declined nearly 7% year over year.

Results reflected a rise in services and other revenues year over year. However, a decrease in site rental revenues affected the results to some extent. CCI increased its outlook for 2025.

Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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