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 delivered strong performance, exceeding the expectations we provided on our last call. On a reported basis, revenue of $1.25 billion grew 15% year-on-year with total organic revenue up 10%. Revenue was over $20 million ahead of the expectations we shared on our last call. To me, a key highlight in the quarter is our organic storage revenue, which grew 6.8% in the quarter, reflecting our strong pricing and data center commencements. Total service revenue increased 33% to $497 million, driven equally by the ITRenew acquisition and our core service offerings. In fact, organic service revenue increased $59 million or 16%, driven by strong growth across our service lines, including digital solutions.
As revenue associated with our traditional transportation services was still down 10% from pre-pandemic levels, we are even more pleased with this performance. Adjusted EBITDA was $431 million, up 13% on a reported basis and up 15% year-on-year on a constant currency basis. We had strong contributions from revenue growth driven by pricing and data center storage along with ongoing productivity improvements, resulting in EBITDA growth of $50 million. The higher level of EBITDA was despite the impact of the stronger U.S. dollar and the disposition of the software Escrow business last June. Combined, those two items are about $14 million of year-on-year headwind. Partially offsetting those is the recent ITRenew acquisition. With solid flow through, first quarter EBITDA exceeded the expectations we shared on our last call by $6 million. Adjusted EBITDA margin was better than we projected.
And while it was lower year-on-year driven by the inclusion of ITRenew, our core Iron Mountain business continued to deliver improved profitability year-on-year, even with investments to fund further growth. AFFO was $264 million or $0.91 on a per share basis, up $29 million and $0.10, respectively, from the first quarter of last year. In both cases, we exceeded our expectations. Now let me spend a moment discussing the impact of the war in Ukraine. In late March, we determined it was appropriate to deconsolidate the majority of the OSG Records business, which is principally doing business in Russia. As a result, we wrote down our investments to a fair value of 0 and accordingly recognized a charge through the other expense line. Going forward, we will no longer be including these entities in our financial statements. Also in our other expense line this quarter, we have a gain on a MakeSpace clutter merger, as I mentioned on our last call.
The deconsolidation does not impact our business in Ukraine, which continues to be included in our results. With reduced revenue and a conservative position on accounts receivable, we recognized a loss in our Ukrainian business during the first quarter. I want to echo Bill's comments. We continue to keep all of our mountaineers and their families in our thoughts during this ongoing human tragedy. Now turning to segment performance. In the first quarter, our global RIM business delivered revenue of $1.04 billion, an increase of $76 million from last year or 8% on a reported basis. On a constant currency basis, revenue increased 10%. Constant currency storage rental revenue growth of 6.4% or 4.6% on an organic basis reflects our focus on revenue management and solid volume trends, which exceeded our expectations for the quarter. I will note that in our supplemental financial information, we have shared a reconciliation of our volume with and without the deconsolidated entities to allow for comparability going forward. Global RIM adjusted EBITDA was $451 million, an increase of $43 million year-on-year. Adjusted EBITDA margin was up 100 basis points year-on-year, reflecting continued pricing strength and productivity. Turning to our global data center business, we are very pleased with our results. On a revenue basis, we delivered 36% year-on-year growth or 33% organic growth.
A particular highlight for me is the 26% organic storage revenue growth we delivered in the quarter. As Bill discussed, the team has done exceptionally well with new bookings. And with that, we are raising our full year outlook on new and expansion leasing to 130 megawatts, up from our prior expectation of 50 megawatts. Now to provide some historical context to that, we leased 10 megawatts in 2018, 17 megawatts in 2019, 31 megawatts in 2020, excluding our joint venture in Frankfurt and 49 megawatts last year. With the strength of our performance in the first quarter, we now project full year data center revenue growth of at least 20% year-on-year with even higher rates of growth for storage. With our strong prior year bookings and recent commencements, we have very good visibility to revenue. Turning to our Corporate and Other business.
Revenue increased 146% year-on-year, driven by the ITRenew acquisition and organic growth in our Crozier business. For modeling purposes, please note that our legacy IT asset disposal business continues to be presented in the global RIM segment. Total capital expenditures were $150 million, of which $115 million with growth and $35 million was recurring. In 2022, we now expect total capital expenditures to be approximately $950 million, up $100 million from our prior expectations. This reflects an increase to our data center development capex plans given our strong leasing year-to-date and our very positive outlook. Turning to the balance sheet. With strong EBITDA performance, we ended the quarter with net lease adjusted leverage of 5.4 times. This is an improvement from last year and better than the projection we shared on our last call.
As we have said before, we are committed to our long-term range of 4.5 to 5.5 times. We continue to expect to exit the year at levels within our target range. As you may have seen in March, aligned with our growth plans, our team successfully refinanced our credit agreement, which includes a $2.25 billion revolving credit facility and a $250 million term loan A facility. The amendment provides for nearly $550 million of additional borrowing, includes favorable terms and extends the maturity to March 2027. We want to thank our commercial lending group for their continued support. And with our strong financial position, our Board of Directors declared our quarterly dividend of $0.62 per share to be paid in early July. On a trailing four-quarter basis, our payout ratio is now 69%, approaching our long-term target range of low to mid-60s percent. And now turning to our outlook. We are pleased to reiterate our full year 2022 guidance. I should note that this is despite the impact of the deconsolidation and the stronger U.S. dollar.
With the closing of the ITRenew transaction, I thought it would be helpful to share our preliminary view on purchase accounting. We currently anticipate amortization of intangibles to be approximately $60 million annually. And with only two months of results in the first quarter, we amortized $10 million. Naturally, these charges are included in our adjusted EPS and FFO. Now let me share our expectations for the second quarter. We expect total revenue to be approximately $1.3 billion. We estimate organic growth to be high single digits to approaching 10% in the second quarter. We expect adjusted EBITDA to be approximately $450 million, and we expect AFFO to be approximately $260 million.
The war in Ukraine and the deconsolidation is nearly $5 million headwind versus the second quarter of 2021 and sequentially versus the first quarter of 2022. In summary, our investments are accelerating our growth trajectory. Our customer relationships are strong, our core is performing well, and we continue to realize incremental pricing opportunities across our business. Our focus on higher growth segments, including data center, asset life cycle management and digital solutions are positioning us for continued success. I would like to thank our entire team for their strong contributions. We look forward to updating you on our progress following the second quarter.
And with that, operator, please open the line for Q&A.
