Iron Mountain Reports Second Quarter 2025 Results

Business Wire

06-08-2025

PORTSMOUTH, N.H.--(BUSINESS WIRE)--Iron Mountain Incorporated (NYSE: IRM), a global leader in information management services, announces financial results for the second quarter of 2025.
'We are pleased to report outstanding performance in the second quarter, resulting in record financial performance across all key metrics and above our expectations. Our team's successful execution of our strategy and commitment to delivering value for our customers, whilst leveraging our synergistic business model continues to drive industry leading growth and record results across each of our business segments,' said William L. Meaney, President and CEO of Iron Mountain. 'The collective strength in our growth businesses and the sustained growth in our physical records storage business creates strong momentum which is expected to continue to deliver meaningful overall revenue and profit growth at these levels for the foreseeable future. Based on our strong Q2 outperformance and positive outlook, we are increasing our full year guidance.'
Total reported revenues for the second quarter were $1.7 billion, compared with $1.5 billion in the second quarter of 2024, an increase of 11.6%. Excluding the impact of foreign currency exchange ("Fx"), total reported revenues increased 11.0% compared to the prior year, driven by a 9.2% increase in storage rental revenue and a 13.7% increase in service revenue. Year to date, total reported revenues increased 9.7%, or 10.2% excluding the impact of Fx.
Net (Loss) Income for the second quarter was $(43.3) million, compared with $34.6 million in the second quarter of 2024, driven by the impact of changes in the exchange rates on our intercompany balances. Year to date, Net (Loss) Income was $(27.1) million, compared with $111.6 million in 2024.
Adjusted EBITDA for the second quarter was $628.4 million, compared with $544.4 million in the second quarter of 2024, an increase of 15.4%. On a constant currency basis, Adjusted EBITDA increased by 15.1% in the second quarter, compared to the second quarter of 2024, driven by increased revenue in our Global RIM, ALM, and Data Center businesses and improved operating leverage coming from our continued improvement activities. Year to date, Adjusted EBITDA increased 13.6%, or 14.3% excluding the impact of Fx.
FFO (Normalized) per share was $0.87 for the second quarter, compared with $0.78 in the second quarter of 2024, an increase of 11.5%. Year to date, FFO (Normalized) per share was $1.64, compared with $1.53 in 2024, or an increase of 7.2%.
AFFO was $369.7 million for the second quarter, compared with $320.9 million in the second quarter of 2024, an increase of 15.2% driven by improved Adjusted EBITDA. Year to date, AFFO was $718.1 million compared with $644.6 million, or an increase of 11.4%.
AFFO per share was $1.24 for the second quarter, compared with $1.08 in the second quarter of 2024, an increase of 14.8%. Year to date, AFFO per share was $2.41, compared to $2.18 in 2024, or an increase of 10.6%.
Dividend
On August 6, 2025, Iron Mountain's Board of Directors declared a quarterly cash dividend of $0.785 per share of common stock for the third quarter. The third quarter 2025 dividend is payable on October 3, 2025, to shareholders of record at the close of business on September 15, 2025.
Guidance
Iron Mountain increased full year 2025 guidance; details are summarized in the table below.
Q2 2025 Earnings Conference Call and Related Materials
The conference call / webcast details, earnings presentation and supplemental financial information, which includes definitions of certain capitalized terms used in this release, are available on Iron Mountain's Investor Relations website.
About Iron Mountain
Iron Mountain Incorporated (NYSE: IRM) is trusted by more than 240,000 customers in 61 countries, including approximately 95% of the Fortune 1000, to help unlock value and intelligence from their assets through services that transcend the physical and digital worlds. Our broad range of solutions address their information management, digital transformation, information security, data center and asset lifecycle management needs. Our longstanding commitment to safety, security, sustainability and innovation in support of our customers underpins everything we do.
To learn more about Iron Mountain, please visit www.IronMountain.com.
Forward Looking Statements
We have made statements in this press release that constitute "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements concern our current expectations regarding our future results from operations, economic performance, financial condition, goals, strategies, investment objectives, plans and achievements.
These forward-looking statements are subject to various known and unknown risks, uncertainties and other factors, and you should not rely upon them except as statements of our present intentions and of our present expectations, which may or may not occur. When we use words such as 'believes', 'expects', 'anticipates', 'estimates', 'plans', 'intends', 'projects', 'pursue', 'will', 'commits' or similar expressions, we are making forward-looking statements. Although we believe that our forward-looking statements are based on reasonable assumptions, our expected results may not be achieved, and actual results may differ materially from our expectations. In addition, important factors that could cause actual results to differ from expectations include, among others: (i) our ability or inability to execute our strategic growth plan, including our ability to invest according to plan, grow our businesses (including through joint ventures or other co-investment vehicles), incorporate alternative technologies (including artificial intelligence) into our offerings, achieve satisfactory returns on new product offerings, continue our revenue management, expand and manage our global operations, complete acquisitions on satisfactory terms, integrate acquired companies efficiently and transition to more sustainable sources of energy; (ii) changes in customer preferences and demand for our storage and information management services, including as a result of the shift from paper and tape storage to alternative technologies that require less physical space or services activity; (iii) the costs of complying with and our ability to comply with laws, regulations and customer requirements, including those relating to data privacy and cybersecurity issues, as well as fire and safety and environmental standards; (iv) the impact of attacks on our internal information technology ('IT') systems, including the impact of such incidents on our reputation and ability to compete and any litigation or disputes that may arise in connection with such incidents; (v) our ability to fund capital expenditures; (vi) the impact of our distribution requirements on our ability to execute our business plan; (vii) our ability to remain qualified for taxation as a real estate investment trust for United States federal income tax purposes; (viii) changes in the political and economic environments in the countries in which we operate and changes in the global political climate; (ix) our ability to raise debt or equity capital and changes in the cost of our debt; (x) our ability to comply with our existing debt obligations and restrictions in our debt instruments; (xi) the impact of service interruptions or equipment damage and the cost of power on our data center operations; (xii) the cost or potential liabilities associated with real estate necessary for our business; (xiii) unexpected events, including those resulting from climate change or geopolitical events, could disrupt our operations and adversely affect our reputation and results of operations; (xiv) failures to implement and manage new IT systems; (xv) other trends in competitive or economic conditions affecting our financial condition or results of operations not presently contemplated; and (xvi) the other risks described in our periodic reports filed with the SEC, including under the caption 'Risk Factors' in Part I, Item 1A of our Annual Report. Except as required by law, we undertake no obligation to update any forward-looking statements appearing in this press release.
Reconciliation of Non-GAAP Measures
Throughout this press release, Iron Mountain discusses (1) Adjusted EBITDA, (2) Adjusted EPS, (3) FFO (Nareit), (4) FFO (Normalized), (5) AFFO and (6) AFFO per share. These measures do not conform to accounting principles generally accepted in the United States ('GAAP'). These non-GAAP measures are supplemental metrics designed to enhance our disclosure and to provide additional information that we believe to be important for investors to consider in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP, such as operating income, net income (loss) attributable to Iron Mountain Incorporated or cash flows from operating activities (as determined in accordance with GAAP). The reconciliation of these measures to the appropriate GAAP measure, as required by Regulation G under the Securities Exchange Act of 1934, as amended, and their definitions are included later in this release.
Quarterly Condensed Consolidated Statements of Operations
(Unaudited; dollars in thousands, except per-share data)
Q2 2025
Q1 2025
Q/Q % Change
Q2 2024
Y/Y % Change
Revenues:
Storage Rental
$1,009,989
$948,376
6.5 %
$919,746
9.8 %
Service
701,959
644,153
9.0 %
614,663
14.2 %
Total Revenues
$1,711,948
$1,592,529
7.5 %
$1,534,409
11.6 %
Operating Expenses:
Cost of Sales (excluding Depreciation and Amortization)
$754,837
$710,204
6.3 %
$675,971
11.7 %
Selling, General and Administrative
390,456
329,737
18.4 %
344,838
13.2 %
Depreciation and Amortization
252,566
232,154
8.8 %
224,501
12.5 %
Acquisition and Integration Costs
4,815
5,823
(17.3) %
9,502
(49.3) %
Restructuring and Other Transformation
50,340
54,746
(8.0) %
46,513
8.2 %
(Gain) Loss on Disposal/Write-Down of PP&E, Net
(962)
5,571
(117.3) %
2,790
(134.5) %
Total Operating Expenses
$1,452,052
$1,338,235
8.5 %
$1,304,115
11.3 %
Operating Income (Loss)
$259,896
$254,294
2.2 %
$230,294
12.9 %
Interest Expense, Net
205,063
194,738
5.3 %
176,521
16.2 %
Other Expense (Income), Net
81,877
28,488
187.4 %
5,833
n/a
Net (Loss) Income Before Provision (Benefit) for Income Taxes
$(27,044)
$31,068
(187.0) %
$47,940
(156.4) %
Provision (Benefit) for Income Taxes
16,296
14,835
9.8 %
13,319
22.4 %
Net (Loss) Income
$(43,340)
$16,233
n/a
$34,621
n/a
Less: Net Income (Loss) Attributable to Noncontrolling Interests
1,581
281
n/a
(1,162)
n/a
Net (Loss) Income Attributable to Iron Mountain Incorporated
$(44,921)
$15,952
n/a
$35,783
n/a
Net (Loss) Income Per Share Attributable to Iron Mountain Incorporated:
Basic
$(0.15)
$0.05
n/a
$0.12
n/a
Diluted
$(0.15)
$0.05
n/a
$0.12
n/a
Weighted Average Common Shares Outstanding - Basic
295,364
294,507
0.3 %
293,340
0.7 %
Weighted Average Common Shares Outstanding - Diluted
295,364
297,260
(0.6) %
295,838
(0.2) %
Expand
Year to Date Condensed Consolidated Statements of Operations
(Unaudited; dollars in thousands, except per-share data)
YTD 2025
YTD 2024
% Change
Revenues:
Storage Rental
$1,958,365
$1,804,588
8.5 %
Service
1,346,112
1,206,684
11.6 %
Total Revenues
$3,304,477
$3,011,272
9.7 %
Operating Expenses:
Cost of Sales (excluding Depreciation and Amortization)
$1,465,041
$1,329,226
10.2 %
Selling, General and Administrative
720,193
664,303
8.4 %
Depreciation and Amortization
484,720
434,056
11.7 %
Acquisition and Integration Costs
10,638
17,311
(38.5) %
Restructuring and Other Transformation
105,086
87,280
20.4 %
Loss (Gain) on Disposal/Write-Down of PP&E, Net
4,609
3,179
45.0 %
Total Operating Expenses
$2,790,287
$2,535,355
10.1 %
Operating Income (Loss)
$514,190
$475,917
8.0 %
Interest Expense, Net
399,801
341,040
17.2 %
Other Expense (Income), Net
110,365
(6,697)
n/a
Net Income (Loss) Before Provision (Benefit) for Income Taxes
$4,024
$141,574
(97.2) %
Provision (Benefit) for Income Taxes
31,131
29,928
4.0 %
Net (Loss) Income
$(27,107)
$111,646
(124.3) %
Less: Net Income (Loss) Attributable to Noncontrolling Interests
1,862
1,802
3.3 %
Net (Loss) Income Attributable to Iron Mountain Incorporated
$(28,969)
$109,844
(126.4) %
Net (Loss) Income Per Share Attributable to Iron Mountain Incorporated:
Basic
$(0.10)
$0.37
(127.0) %
Diluted
$(0.10)
$0.37
(127.0) %
Weighted Average Common Shares Outstanding - Basic
294,935
293,043
0.6 %
Weighted Average Common Shares Outstanding - Diluted
294,935
295,529
(0.2) %
Expand
Quarterly Reconciliation of Net (Loss) Income to Adjusted EBITDA
(Dollars in thousands)
Q2 2025
Q1 2025
Q/Q % Change
Q2 2024
Y/Y % Change
Net (Loss) Income
$(43,340)
$16,233
n/a
$34,621
n/a
Add / (Deduct):
Interest Expense, Net
205,063
194,738
5.3 %
176,521
16.2 %
Provision (Benefit) for Income Taxes
16,296
14,835
9.8 %
13,319
22.4 %
Depreciation and Amortization
252,566
232,154
8.8 %
224,501
12.5 %
Acquisition and Integration Costs
4,815
5,823
(17.3) %
9,502
(49.3) %
Restructuring and Other Transformation
50,340
54,746
(8.0) %
46,513
8.2 %
(Gain) Loss on Disposal/Write-Down of PP&E, Net (Including Real Estate)
(962)
5,571
(117.3) %
2,790
(134.5) %
Other Expense (Income), Net, Excluding our Share of Losses (Gains) from our Unconsolidated Joint Ventures
80,698
27,382
194.7 %
4,532
n/a
Stock-Based Compensation Expense
60,354
26,094
131.3 %
29,889
101.9 %
Our Share of Adjusted EBITDA Reconciling Items from our Unconsolidated Joint Ventures
2,558
2,330
9.8 %
2,173
17.7 %
Adjusted EBITDA
$628,388
$579,906
8.4 %
$544,361
15.4 %
Expand
Expand
Adjusted EBITDA
We define Adjusted EBITDA as net (loss) income before interest expense, net, provision (benefit) for income taxes, depreciation and amortization (inclusive of our share of Adjusted EBITDA from our unconsolidated joint ventures), and excluding certain items we do not believe to be indicative of our core operating results, specifically: (i) Acquisition and Integration Costs; (ii) Restructuring and other transformation; (iii) (Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate); (iv) Other expense (income), net; (v) Stock-based compensation expense; and (vi) Intangible impairments. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenues. We use multiples of current or projected Adjusted EBITDA in conjunction with our discounted cash flow models to determine our estimated overall enterprise valuation and to evaluate acquisition targets. We believe Adjusted EBITDA and Adjusted EBITDA Margin provide our current and potential investors with relevant and useful information regarding our ability to generate cash flows to support business investment. These measures are an integral part of the internal reporting system we use to assess and evaluate the operating performance of our business.
Quarterly Reconciliation of Reported Earnings per Share to Adjusted Earnings per Share
Q2 2025
Q1 2025
Q/Q % Change
Q2 2024
Y/Y % Change
Reported EPS - Fully Diluted from Net (Loss) Income Attributable to Iron Mountain Incorporated
$(0.15)
$0.05
n/a
$0.12
n/a
Add / (Deduct):
Acquisition and Integration Costs
0.02
0.02
—
0.03
(33.3) %
Restructuring and Other Transformation
0.17
0.18
(5.6) %
0.16
6.3 %
Loss (Gain) on Disposal/Write-Down of PP&E, Net
—
0.02
n/a
0.01
n/a
Other Expense (Income), Net, Excluding our Share of Losses (Gains) from our Unconsolidated Joint Ventures
0.27
0.09
n/a
0.02
n/a
Stock-Based Compensation Expense
0.20
0.09
122.2 %
0.10
100.0 %
Non-Cash Amortization Related to Derivative Instruments
0.01
0.01
—
0.01
—
Tax Impact of Reconciling Items and Discrete Tax Items (1)
(0.04)
(0.04)
—
(0.03)
33.3 %
Income (Loss) Attributable to Noncontrolling Interests
0.01
—
n/a
—
n/a
Impact of Weighted Average Dilutive Shares (2)
—
—
n/a
—
n/a
Adjusted EPS - Fully Diluted from Net (Loss) Income Attributable to Iron Mountain Incorporated
$0.48
$0.43
11.6 %
$0.42
14.3 %
(1) The difference between our effective tax rates and our structural tax rate (or adjusted effective tax rates) for the three months ended June 30, 2025 and 2024 is primarily due to (i) the reconciling items above, which impact our reported net (loss) income before provision (benefit) for income taxes but have an insignificant impact on our reported provision (benefit) for income taxes and (ii) other discrete tax items. Our structural tax rate for purposes of the calculation of Adjusted EPS for the quarters ended June 30, 2025 and 2024 was 16.7% and 14.5% respectively, and quarter ended March 31, 2025 was 17.0%.
(2) Reflects the impact of dilutive shares of 2,278 for the three months ended June 30, 2025, not included in Reported EPS-Fully Diluted due to our net loss position during the period.
Expand
Expand
Adjusted Earnings Per Share, or Adjusted EPS
We define Adjusted EPS as reported earnings per share fully diluted from net (loss) income attributable to Iron Mountain Incorporated (inclusive of our share of adjusted losses (gains) from our unconsolidated joint ventures) and excluding certain items, specifically: (i) Acquisition and Integration Costs; (ii) Restructuring and other transformation; (iii) (Gain) Loss on disposal/write-down of property, plant and equipment, net (including real estate); (iv) Other expense (income), net; (v) Stock-based compensation expense; (vi) Non-cash amortization related to derivative instruments; (vii) Tax impact of reconciling items and discrete tax items; and (viii) Amortization related to the write-off of certain customer relationship intangible assets. We do not believe these excluded items to be indicative of our ongoing operating results, and they are not considered when we are forecasting our future results. We believe Adjusted EPS is of value to our current and potential investors when comparing our results from past, present and future periods. Figures may not foot due to rounding. The Tax Impact of reconciling items and discrete tax items is calculated using the current quarter's estimate of the annual structural tax rate. This may result in the current period adjustment plus prior reported quarterly adjustments not summing to the full year adjustment.
YTD 2025
YTD 2024
% Change
Reported EPS - Fully Diluted from Net (Loss) Income Attributable to Iron Mountain Incorporated
$(0.10)
$0.37
(127.0) %
Add / (Deduct):
Acquisition and Integration Costs
0.04
0.06
(33.3) %
Restructuring and Other Transformation
0.36
0.30
20.0 %
Loss (Gain) on Disposal/Write-Down of PP&E, Net
0.02
0.01
100.0 %
Other Expense (Income), Net, Excluding our Share of Losses (Gains) from our Unconsolidated Joint Ventures
0.37
(0.03)
n/a
Stock-Based Compensation Expense
0.29
0.15
93.3 %
Non-Cash Amortization Related to Derivative Instruments
0.03
0.03
—
Tax Impact of Reconciling Items and Discrete Tax Items (1)
(0.08)
(0.04)
100.0 %
Income (Loss) Attributable to Noncontrolling Interests
0.01
0.01
—
Impact of Weighted Average Dilutive Shares (2)
(0.01)
—
n/a
Adjusted EPS - Fully Diluted from Net (Loss) Income Attributable to Iron Mountain Incorporated
$0.92
$0.85
8.2 %
(1) The difference between our effective tax rates and our structural tax rate (or adjusted effective tax rates) for the six months ended June 30, 2025 and 2024 is primarily due to (i) the reconciling items above, which impact our reported net (loss) income before provision (benefit) for income taxes but have an insignificant impact on our reported provision (benefit) for income taxes and (ii) other discrete tax items. Our structural tax rate for purposes of the calculation of Adjusted EPS for the year to date periods ending June 30, 2025 and 2024 was 16.7% and 14.5%, respectively. The Tax Impact of Reconciling Items and Discrete Tax Items was calculated using the current year to date's estimate of the annual structural tax rate. This may result in the current period adjustment plus prior reported quarterly adjustments not summing to the year to date adjustment.
(2) Reflects the impact of dilutive shares of 2,516 for the six months ended June 30, 2025, not included in Reported EPS-Fully Diluted due to our net loss position during the period.
Expand
Quarterly Reconciliation of Net (Loss) Income to FFO and AFFO
(Dollars in thousands, except per-share data)
Q2 2025
Q1 2025
Q/Q % Change
Q2 2024
Y/Y % Change
Net (Loss) Income
$(43,340)
$16,233
n/a
$34,621
n/a
Add / (Deduct):
Real Estate Depreciation (1)
107,186
94,147
13.8 %
97,771
9.6 %
(Gain) Loss on Sale of Real Estate, Net of Tax
(4,981)
312
n/a
579
n/a
Data Center Lease-Based Intangible Assets Amortization (2)
1,683
2,019
(16.6) %
5,571
(69.8) %
Our Share of FFO (Nareit) Reconciling Items from our Unconsolidated Joint Ventures
1,567
1,496
4.7 %
1,112
40.9 %
FFO (Nareit)
$62,115
$114,207
(45.6) %
$139,654
(55.5) %
Add / (Deduct):
Acquisition and Integration Costs
4,815
5,823
(17.3) %
9,502
(49.3) %
Restructuring and Other Transformation
50,340
54,746
(8.0) %
46,513
8.2 %
Loss (Gain) on Disposal/Write-Down of PP&E, Net (Excluding Real Estate)
3,809
5,292
(28.0) %
2,211
72.3 %
Other Expense (Income), Net, Excluding our Share of Losses (Gains) from our Unconsolidated Joint Ventures
80,698
27,382
194.7 %
4,532
n/a
Stock-Based Compensation Expense
60,354
26,094
131.3 %
29,889
101.9 %
Non-Cash Amortization Related to Derivative Instruments
4,177
4,176
—
4,177
—
Real Estate Financing Lease Depreciation
3,426
3,148
8.8 %
3,236
5.9 %
Tax Impact of Reconciling Items and Discrete Tax Items (3)
(11,671)
(11,673)
—
(8,643)
35.0 %
Our Share of FFO (Normalized) Reconciling Items from our Unconsolidated Joint Ventures
(58)
(125)
(53.6) %
(50)
16.0 %
FFO (Normalized)
$258,005
$229,070
12.6 %
$231,021
11.7 %
Per Share Amounts (Fully Diluted Shares):
FFO (Nareit)
$0.21
$0.38
(44.7) %
$0.47
(55.3) %
FFO (Normalized)
$0.87
$0.77
13.0 %
$0.78
11.5 %
Weighted Average Common Shares Outstanding - Basic
295,364
294,507
0.3 %
293,340
0.7 %
Weighted Average Common Shares Outstanding - Diluted (4)
297,642
297,260
0.1 %
295,838
0.6 %
(1) Includes depreciation expense related to owned real estate assets (land improvements, buildings, building and leasehold improvements, data center infrastructure and racking structures), excluding depreciation related to real estate financing leases.
(2) Includes amortization expense for Data Center In-Place Lease Intangible Assets and Data Center Tenant Relationship Intangible Assets.
(3) Represents the tax impact of (i) the reconciling items above, which impact our reported net (loss) income before provision (benefit) for income taxes but have an insignificant impact on our reported provision (benefit) from income taxes and (ii) other discrete tax items.
(4) Reflects the impact of dilutive shares of 2,278 for the three months ended June 30, 2025, not included in Reported EPS-Fully Diluted due to our net loss position during the period.
Expand
Expand
Funds From Operations, or FFO (Nareit), and FFO (Normalized)
Funds from operations ("FFO") is defined by the National Association of Real Estate Investment Trusts as net income (loss) excluding depreciation on real estate assets, losses and gains on sale of real estate, net of tax, and amortization of data center leased-based intangibles ('FFO (Nareit)'). We calculate our FFO measure, including FFO (Nareit), adjusting for our share of reconciling items from our unconsolidated joint ventures. FFO (Nareit) does not give effect to real estate depreciation because these amounts are computed, under GAAP, to allocate the cost of a property over its useful life. Because values for well-maintained real estate assets have historically increased or decreased based upon prevailing market conditions, we believe that FFO (Nareit) provides investors with a clearer view of our operating performance. Our most directly comparable GAAP measure to FFO (Nareit) is net income (loss).
We modify FFO (Nareit), as is common among REITs seeking to provide financial measures that most meaningfully reflect their particular business ("FFO (Normalized)"). Our definition of FFO (Normalized) excludes certain items included in FFO (Nareit) that we believe are not indicative of our core operating results, specifically: (i) Acquisition and Integration Costs; (ii) Restructuring and other transformation; (iii) Loss (gain) on disposal/write-down of property, plant and equipment, net (excluding real estate); (iv) Other expense (income) net; (v) Stock-based compensation expense; (vi) Non-cash amortization related to derivative instruments; (vii) Real estate financing lease depreciation; (viii) Tax impact of reconciling items and discrete tax items; (ix) Intangible impairments; and (x) (Income) loss from discontinued operations, net of tax.
FFO (Normalized) per share
FFO (Normalized) divided by weighted average fully-diluted shares outstanding.
Expand
Adjusted Funds From Operations, or AFFO
We define adjusted funds from operations ('AFFO') as FFO (Normalized) (1) excluding (i) Non-cash rent expense (income), (ii) Depreciation on non-real estate assets, (iii) Amortization expense associated with customer and supplier relationship value, intake costs, acquisitions of customer and supplier relationships, capitalized commissions and other intangibles, (iv) Amortization of deferred financing costs and debt discount/premium, (v) Revenue reduction associated with amortization of customer inducements and above- and below-market data center leases and (vi) The impact of reconciling to normalized cash taxes and (2) including Recurring capital expenditures. We also adjust for these items to the extent attributable to our portion of unconsolidated ventures. We believe that AFFO, as a widely recognized measure of operations of REITs, is helpful to investors as a meaningful supplemental comparative performance measure to other REITs, including on a per share basis. AFFO should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP, such as operating income, net (loss) income or cash flows from operating activities (as determined in accordance with GAAP).
AFFO per share
AFFO divided by weighted average fully-diluted shares outstanding.
Year to Date Reconciliation of Net (Loss) Income to FFO and AFFO (continued)
(Dollars in thousands, except per-share data)
FFO (Normalized)
$487,075
$450,798
8.0 %
Add / (Deduct):
Non-Real Estate Depreciation
135,106
114,996
17.5 %
Amortization Expense (1)
138,005
120,347
14.7 %
Amortization of Deferred Financing Costs
15,659
12,243
27.9 %
Revenue Reduction Associated with Amortization of Customer Inducements and Above- and Below-Market Leases
2,976
2,797
6.4 %
Non-Cash Rent Expense (Income)
4,008
9,317
(57.0) %
Reconciliation to Normalized Cash Taxes
(2,173)
(593)
n/a
Our Share of AFFO Reconciling Items from our Unconsolidated Joint Ventures
365
362
0.8 %
Less:
Recurring Capital Expenditures
62,877
65,713
(4.3) %
AFFO
$718,144
$644,554
11.4 %
Per Share Amounts (Fully Diluted Shares):
AFFO Per Share
$2.41
$2.18
10.6 %
Weighted Average Common Shares Outstanding - Basic
294,935
293,043
0.6 %
Weighted Average Common Shares Outstanding - Diluted (2)
297,451
295,529
0.7 %
(1) Includes customer and supplier relationship value, intake costs, acquisition of customer relationships, capitalized commissions and other intangibles.
(2) Reflects the impact of dilutive shares of 2,516 for the six months ended June 30, 2025, not included in Reported EPS-Fully Diluted due to our net loss position during the period.
Expand