Barry A. Hytinen
Executive Vice President and Chief Financial Officer at Iron Mountain
Thanks, Bill, and thank you all for joining us to discuss our results.
In the first quarter, our team continued our track record of strong performance, exceeding the expectations we've provided on our last call, we achieved record quarterly revenue of $1.48 billion, up 12% on a recorded basis driven by 9% storage growth and 17% service growth.
On an organic basis, revenue grew 8%. Revenue was nearly $30 million ahead of the expectations we shared on our last call, driven by stronger performance in both our Global RIM and our asset lifecycle management businesses. Total storage revenue of $885 million, up $75 million year-on-year was driven by solid performance from both Global RIM and Data Center. Total service revenue of $592 million was up $88 million from last year, reflecting strength in Global RIM and digital as well as strong contribution from our recently closed acquisition of Regency Technologies.
For me, two key highlights in the quarter are: first, data center storage revenue exceeded 30% growth year-on-year; and second, our organic service revenue growth accelerated to 10% year-on-year, primarily driven by improved performance in our Asset Lifecycle Management business.
Adjusted EBITDA was $519 million, an increase of $58 million from last year. This constitutes growth of 13%, both on a reported and constant-currency basis year-on-year, driven by strong contributions across all business units. Adjusted EBITDA margin was 35.1%, consistent year-on-year driven by revenue management and cost productivity, offset by mix. AFFO was $324 million or $1.10 on a per share basis, up $29 million and $0.09, respectively from the first quarter of last year. This was ahead of the expectations we shared on our last call as a result of the upside in adjusted EBITDA as well as phasing of both recurring capital investments and cash taxes, which is incorporated into our guidance for the second quarter.
Now turning to Segment Performance. In the first quarter, our Global RIM business delivered revenue of $1.21 billion, an increase of $84 million from last year. On a reported and organic basis, revenue grew 7%. Storage rental revenue growth of 6% reflects our focus on revenue management and consistent volume trends. We delivered service revenue growth of 10% driven by traditional services and digital solutions. Global RIM adjusted EBITDA was $526 million, an increase of $48 million year-on-year.
Turning to our Global Data Center business, we achieved revenue of $144 million, an increase of $32 million and 28% year-on-year. Data Center adjusted EBITDA was $62 million or 22% growth from the first quarter of 2023.
Turning to New and Expansion Leasing. We had a successful quarter with the team signing 30 megawatts with strong cross-selling activity. Our data center pipeline is robust across the markets we serve. In Phoenix, where we are fully leased in our first two sites, we have now commenced construction on our third site and have a considerable pipeline of opportunities to fill it. In support of our data center strategy and consistent with our sustainability commitments, we were pleased to execute our first green loan in April. This $300 million financing was well-received and considerably oversubscribed. Proceeds will be used to support the construction of energy-efficient data centers in Northern Virginia.
Turning to Asset Lifecycle Management. In the first quarter, we delivered improved performance for both revenue and EBITDA. Total ALM revenue in the quarter was $84 million, an increase of 103% year-on-year. Regency Technologies performed ahead of our expectations in the quarter with revenue of $32 million. While we are only one quarter into the integration, we are very pleased with the acquisition and are already seeing more benefit than planned in terms of cross-selling, increased capabilities, and improved operational efficiencies. On an organic basis, ALM revenue increased 25% year-on-year, driven by both improved component pricing and increased volume from our strong cross-selling activity.
Turning to capital. In the first quarter, we invested $366 million, of which $337 million was growth and $29 million was recurring. Our full year capital expenditure target remains $1.35 billion of growth and $150 million of recurring.
Turning to the balance sheet. With strong EBITDA performance, we ended the quarter with net lease-adjusted leverage of 5.1 times. As a reminder, this remains at the lowest level in the past decade. We expect to operate within our target leverage range, which is 4.5 times to 5.5 times. Our Board of Directors declared our quarterly dividend of $0.65 per share to be paid in early July. On a trailing four-quarter basis, our payout ratio is now 61% at the lower end of our long-term target range of low-to-mid 60s percent.
And now turning to our forecast. With our positive outlook, we are pleased to reiterate our full-year guidance despite the impact of the strengthening U.S. dollar. Our forecast today includes current FX rates, which results in an incremental headwind of approximately $25 million to revenue and approximately $10 million to adjusted EBITDA through the remainder of the year as compared to our initial guidance. For the second quarter, we expect revenue of approximately $1.5 billion, adjusted EBITDA of approximately $535 million, AFFO of approximately $310 million and AFFO per share of approximately $1.05.
In summary, we are pleased to have delivered strong first quarter results and we expect continued growth in 2024 as a result of our focus on Project Matterhorn objectives. I would like to take this opportunity to once again thank our entire team for their continued dedication and commitment to Iron Mountain and our clients.
And with that, operator, will you please open the line for Q&A?