Barry Hytinen
Executive Vice President and Chief Financial Officer at Iron Mountain
Thanks, Bill, and thank you for joining us to discuss our results. In the fourth quarter, our team delivered strong performance, exceeding the expectations we provided on our last call. Before I dive into our results, I would like to take a moment to thank our dedicated Mountaineers for their outstanding performance and continued commitment to Iron Mountain. On a reported basis, revenue of $1.16 billion grew 9.4% year-on-year with total organic revenue up 8.5%. Revenue was $10 million ahead of the high end of the expectations we shared previously despite the U.S. dollar strengthening and being more of a headwind in the quarter. As an example of the momentum we are building, on a 2-year basis, our total organic revenue growth continued to accelerate in the quarter.
Organic storage revenue grew 3.6% in the quarter, reflecting our strong pricing and data center commencements. Organic service revenue increased $65 million or 17.6% driven by continued strong growth in digital solutions and asset life cycle management. As revenue associated with our traditional transportation services were still down nearly 10% from pre-pandemic levels, we are even more pleased with this performance. Adjusted EBITDA was $431 million, an increase of $56 million from last year. As a result of strong flow-through driven by pricing and productivity, fourth quarter EBITDA exceeded the high end of our expectations by $6 million despite additional FX headwind. AFFO was $267 million or $0.92 on a per share basis, up $76 million and $0.26, respectively, from the fourth quarter of last year. In both cases, we significantly exceeded the high end of our expectations. Now let me briefly summarize the full year. Revenue of $4.5 billion increased 8% on a reported basis and over 6% on an organic constant currency basis.
Adjusted EBITDA increased 11% year-on-year to $1.635 billion, an increase of $159 million year-on-year. We achieved the high end of our full year guidance. AFFO increased 14% to $1.01 billion or $3.48 on a per share basis, in both cases, exceeding our full year guidance ranges. Now let's turn to segment performance. In the fourth quarter, our Global RIM business delivered revenue of $1.02 billion, an increase of $76 million from last year or 8% on a reported basis from last year. On an organic basis, revenue increased 7%. Constant currency storage rental revenue growth of 4.2% or 2.5% on an organic basis reflects our focus on revenue management and solid volume trends. With positive volume trends and growth in our adjacent and consumer businesses, total physical volume was in line with our expectations for the quarter and the year. Global RIM adjusted EBITDA was $453 million, an increase of $49 million year-on-year. Adjusted EBITDA margin was up 160 basis points year-on-year, reflecting continued pricing strength and productivity.
Turning to our global data center business. Our team booked 27 megawatts in the quarter. For the full year, bookings came in at 49 megawatts, significantly exceeding our full year guidance of 30 megawatts. We are very pleased with the team's leasing performance. To give some historical context, we leased 10 megawatts in 2018, 17 megawatts in 2019 and excluding our joint venture in Frankfurt, 31 megawatts in 2020. In terms of revenue, as we projected, fourth quarter growth accelerated to 25% year-over-year. Storage revenue grew 18% year-on-year, and service revenue was up sharply and in line with our projections. As a reminder, service revenue in the second half includes fit-out services we are providing to our Frankfurt joint venture. We expect that activity will be completed early in 2022. Even with the large service component, EBITDA margin increased sequentially with strong commencements. We are pleased with our data center performance, and our pipeline has continued to strengthen, both in terms of hyperscale and retail colocation.
In 2022, we expect to lease 50 megawatts, which would represent 28% annual bookings growth. We project full year data center revenue growth in a range of high teens percent year-on-year with even higher growth rates on storage. With our strong prior year bookings and recent commencements, we have very good visibility to revenue. With pricing and improved mix, we expect data center margin for the full year to be up modestly compared to 2021. Turning to Project Summit. This quarter, the team delivered $30 million of incremental year-on-year adjusted EBITDA benefit. For the full year, as compared to 2020, Summit delivered $160 million of benefits. We continue to expect another $50 million of year-on-year benefit in 2022. Total capital expenditures were $219 million, of which $173 million was growth and $46 million was recurring.
For the full year, total capital expenditures were $606 million, of which $309 million was growth capital related to data center development. In 2022, we expect total capital expenditures to be approximately $850 million. We are projecting approximately $700 million of growth capex, with data center development representing about 3/4 of that. We expect recurring capex to approach $155 million. Turning to capital recycling. As we have said before, we view the market for industrial assets as highly attractive as a means to supplement our growth capital. With that backdrop, in the fourth quarter, we upsized our recycling program and generated approximately $63 million of proceeds, bringing the full year to $278 million. Turning to the balance sheet. We ended the quarter with net lease adjusted leverage of 5.3 times, in line with our projection and modestly improved compared to last quarter. As we have said before, we are committed to our long-term leverage range of 4.5 to 5.5 times. For 2022, with the closing of the ITRenew transaction, we expect leverage to tick up modestly in the first quarter.
We expect to exit the year at levels within our target range. In December, thanks to strong support from the fixed income community, our team successfully issued 10-year notes to support the ITRenew transaction. From a cash perspective, I would like to recognize our team for driving strong collections, improving our days sales outstanding and resulting in year-on-year improvement in our cash cycle. The collective performance has resulted in a 5-day improvement from pre-pandemic levels. With our strong financial position, our Board of Directors declared our quarterly dividend of $0.62 per share to be paid in early April. Also, as you may have seen, we are pleased to announce an important strategic milestone related to our unconsolidated joint venture focused on the fast-growing valet consumer storage market. MakeSpace recently completed a merger with Clutter, a similarly sized business also focused on valet storage. We expect the combination will result in considerable benefits, including a focus on a single brand, Clutter, broader reach and natural synergies.
Iron Mountain will continue to provide storage services to the business, and our ownership interest will be nearly 25% of the combined entity. We are excited about the opportunities that lie ahead and expect continued benefit to our total physical volume. Now turning to our outlook. For the full year 2022, we currently expect revenue of $5.125 billion to $5.275 billion. We expect adjusted EBITDA to be in a range of $1.8 billion to $1.85 billion. At the midpoint, our guidance represents revenue growth of 16% and EBITDA growth of 12%. We expect AFFO to be in the range of $1.085 billion to $1.12 billion, which represents 9% year-on-year growth at the midpoint point. We expect AFFO per share to be in a range of $3.70 to $3.82. Our guidance assumes organic global physical volume will be consistent to slightly positive year-on-year. We expect revenue management will be a significant benefit, and I will note that the majority of those actions have already been taken as we speak to you today. And nearly all of them will be in place by the end of the quarter. As Bill mentioned, we are planning for a continuation in the strong trends we are seeing in digital solutions and our organic ALM business, combined with a slight recovery in our service activity across the year.
Our guidance also assumes the contribution from our acquisition of ITRenew. As we closed the deal at the end of January, we are including 11 months of the results in our guidance. Our guidance includes approximately $450 million of revenue from ITRenew. We estimate the stronger U.S. dollar will result in foreign exchange headwinds to revenue of approximately $60 million year-on-year with the vast majority of that in the first half. In terms of EBITDA, our expectations include the benefit from revenue management and top line growth, the contribution from ITRenew as well as Project Summit benefits. Our EBITDA guidance also assumes a prudent outlook for inflation, rent from our recent sale leaseback transactions, increased innovation spend, the stronger U.S. dollar and the divestiture of the software escrow business, which we sold in late second quarter.
With the ongoing volatilities in the market associated with the pandemic as well as the closing of the ITRenew transaction during the quarter, we felt it would be helpful to share our expectations for the first quarter. We expect total revenue to be in excess of $1.2 billion. We expect EBITDA to be approximately $425 million. We expect AFFO to be in excess of $250 million. In summary, our team is executing well. Our pipeline continues to expand, and momentum continues to build across our business. Our addressable market has grown significantly over the last several years, and we expect this to continue to expand. We feel confident in our ability to deliver higher levels of growth. Thanks to our team's collective efforts, together with our strong customer relationships, brand position and investments in innovation, we feel very well positioned as we enter 2022.
And with that, operator, please open the line for Q&A.