2024-02-25 10:30:00 ET
Summary
- IRM continues to benefit from the growing demand for cloud computing post COVID-19, further aided by the generative AI boom as NVDA offers smashing forward guidance.
- The same has been observed in the REIT's sold out data center capacity and robust pricing power in FY2023, with intensified data center capex plans ahead.
- IRM also funds its growth plans strategically, with it still reporting healthy debt-to-EBITDA ratio thanks to the expanded EBITDA generation and minimal share dilution.
- With the REIT offering dual-pronged (prospective) returns through capital appreciation and dividends, IRM remains a Buy.
We previously covered Iron Mountain Incorporated (IRM) in November 2023, discussing its mixed near-term prospects, as the management aggressively expanded its data center capacity to capitalize on the generative AI boom at a time of elevated interest rate environment.
Despite the REIT's increased reliance on debt and moderately impacted bottom lines, we had maintained our Buy rating, since its dividend income investment thesis remained robust....
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For further details see:
Iron Mountain: The Generative AI Hype Is Unstoppable