Barry Hytinen
Chief Financial Officer at Iron Mountain
Thanks, Bill, and thank you all for joining us to discuss our results. In the third-quarter, our team delivered strong performance across all of our key financial metrics, including revenue, EBITDA and AFFO. Results for each of those were ahead of the projections we provided on our last call. Our team drove solid performance across all of our business segments, each of which I will discuss in more detail before turning to our outlook for the 4th-quarter. During the third-quarter, we achieved record revenue of $1.56 billion, up 12% on a reported basis, driven by 9% storage growth and 17% service growth.
We delivered strong organic growth in the quarter, up 10%. Total storage revenue in the quarter was $936 million, up $77 million year-on-year. We drove 9% organic storage growth, two-thirds of which was driven by revenue management trends in our global RIM business and one-third from our data center business. Total service revenue was $622 million, up $92 million from last year. Organic service revenue growth accelerated to 10% year-on-year. I will note this represents our best quarterly growth rate for organic service revenue in the last two years. Revenue was driven by strong performance in our ALM and Global RIM businesses.
Reported service revenue growth at 17.4% reflects the inclusion of our Regency Technologies acquisition. Adjusted EBITDA was $568 million, a new record, up 14% year-on-year, driven by strong growth in our Global RIM, ALM and data center businesses. Adjusted EBITDA margin was 36.5%, up 50 basis-points year-on-year, which reflects improved margins across all of our businesses. AFFO was $332 million, up $31 million, which represents growth in excess of 10% for the third-quarter of last year -- from the third-quarter of last year. Reported AFFO on a per share basis was $1.13, up $0.11 from last year.
AFFO per share included a $0.01 benefit due to our GAAP share count in the quarter. Normalizing for that, AFFO per share was up 10% to $1.12, which is comparable to the projection we provided on our last call of $1.10. The outperformance to our guidance was driven by higher adjusted EBITDA. As expected, the strength of the US dollar continued to be a headwind, increasingly so towards the end of the quarter. On a constant-currency basis, revenue was up 13% and AFFO was up 11%. Now turning to segment performance. I'll start with our Global RIM business, which achieved revenue of $1.26 billion, an increase of $78 million year-on-year.
Organic storage was up in excess of 7%, driven by revenue management and consistent volume. Organic service revenue was also up 7% with contributions from digital and core services. A key highlight is the performance of our digital business. The team launched the digital experience platform that Bill mentioned, while also delivering their best bookings quarter yet, consistent with our Matterhorn plan, the vast majority of the digital wins were the result of cross-selling. Global RIM adjusted EBITDA was $569 million, an increase of $52 million year-on-year. Global RIM adjusted EBITDA margin was up 120 basis-points sequentially and 140 basis-points from last year.
Margin expansion was driven by operating leverage and revenue management. Turning to our Global data center business, the team delivered revenue of $153 million, an increase of $26 million year-on-year. From a total revenue perspective, we achieved 20% organic growth. We delivered storage rental revenue growth of 22% from the third-quarter of last year. As expected, service revenue was down slightly this quarter due to the customer-specific installation work we had last year. As a reminder, installation revenue tends to be at low to breakeven margins. Data center adjusted EBITDA was $67 million, representing strong growth of 26%.
Adjusted EBITDA margin was 43.6%, an increase of 190 basis-points from the third-quarter of last year and up 40 basis-points sequentially. Margin expansion was driven by pricing, leasing[Phonetic] commencements, and operating leverage. Turning to new and expansion leasing, we signed nine megawatts in the quarter, bringing total bookings year-to-date to 106 megawatts and we expect to finish the year with 130 megawatts of new leases signed in 2024. Consistent with the strength and expanding nature of our hyperscale customer relationships, together with the outlook for long-term secular growth in the data center industry, we are pleased to announce that we have acquired a development site in Richmond, Virginia. When fully built-out, the campus will operate with greater than 200 megawatts of capacity.
As this transaction closed in the fourth-quarter, it is not included in our supplemental. With this new market, our total data center capacity rises to in excess of 1.1 gigawatts, an increase of over 20%. Turning to asset lifecycle management, total ALM revenue in the quarter was $102 million, an increase of $61 million or 145% year-on-year. On an organic basis, our ALM team delivered strong double-digit growth, which was driven by data center decommissioning and expansion in our enterprise business. Regency Technologies performed very well this quarter with revenue of $36 million, leveraging Regency's capabilities, capturing synergies related to the deal and improved efficiencies in our data center decommissioning resulted in considerable improvement in ALM profitability.
Our focus on cross-selling is delivering great results. For example, over 95% of our ALM bookings this quarter were cross-sell wins. Regarding the ALM acquisitions that Bill referenced, we closed APCD in August and it contributed $3 million to revenue. We closed Wisetek in late September, so we had no income statement contribution in the quarter from that acquisition. Turning to capital allocation, we remain committed to our strategy that is balanced between funding our growth initiatives while delivering meaningful returns to our shareholders and maintaining a strong balance sheet.
Capital expenditures in the third-quarter were $415 million with $373 million of growth and $41 million of recurring. Turning to the balance sheet. With strong EBITDA performance, we ended the quarter with net lease-adjusted leverage of 5.0 times, which is again the lowest level we have achieved since prior to the company's REIT conversion in 2014. For me, a highlight in the quarter was the significant improvement in our cash cycle with the third-quarter having the best performance in that metric in over a decade. Our team drove days sales outstanding down by over five days from the third-quarter of last year. Also, we improved days payable by two days.
Turning to our dividend, our Board of Directors declared our quarterly dividend of $0.715 per share to be paid in early January. And now turning to our projections. For the full year, we are on track to achieve the high end of our guidance. For the fourth quarter, we expect revenue of approximately $1.6 billion, adjusted EBITDA of approximately $595 million, AFFO of approximately $358 million and AFFO per share of approximately $1.21.
In conclusion, our third quarter results represent another milestone on our growth plan. We operate in very large categories, with a total addressable market in excess of $150 billion annually and growing. Iron Mountain has long-standing relationships with nearly 250,000 clients, many measured in decades of duration and in the vast majority of those relationships, we are only penetrated with a small fraction of our total product offering. We are driving value for our customers, and we are highly focused on cross-selling and expanding market share across our businesses. I would like to thank all of my fellow Mountaineers for their efforts to serve our clients and grow our company. And with that, operator, would you please open the line for Q&A.
