Q2 2022 Iron Mountain Inc Earnings Call
Percent total organic revenue growth and an all time record for EBITDA of $455 million in spite of significant FX headwinds. These results are further proof of why we continue to be so encouraged by the increased demand for our services across key markets.
Reising and positive volume trends continue to benefit us in this quarter as we reflected in our organic storage rental revenue growth of eight 2%.
As we have been sharing with you over the past few quarters, we have been growing quickly even faster than our own expectations. A major driver of this growth is a direct benefit from our continued innovation, which has increased the size of the total addressable market for our products and services by 12 times to $120 billion most of which.
As in faster growing sectors.
Accordingly, we are forecasting revenue growth to continue to accelerate in the back half of the year driven by strong revenue management and our global rim business unit growth in our data center business digital information management solutions and improving trends in downstream demand for our Hyperscale asset lifecycle manage.
<unk>, our <unk> business, which we acquired through the acquisition of renew in January of this year.
I now would like to take this opportunity to share a few highlights of our customer wins.
To begin with our records management business, we have had a longstanding relationship with a major global accounting organization for more than 20 years. They were in the midst of reviewing their records management program when they learned of our smart source solution.
We calculated the smart sort could help them classify and destroyed co mingled records that have various retention schedules and a much faster and more cost efficient way than if they were to do so in house.
This led to a proof of concept to demonstrate the power of our tools and techniques, which resulted in a deal that closed months sooner and expanded the records management program, we perform for them across not only the outsourced records, but they are in house records as well Mauro.
Moreover, this win has already led to other exciting conversations with the customer about digital transformation opportunities.
The deal is also up and more opportunities with the customer in Europe , and the Asia Pacific region.
On the digital solution side, we recently won a contract with a large insurance and financial services company in the United States. They had previously only use us for shredding services aligned with the acceleration of the Digitization initiatives <unk> solutions to help them create greater business efficiencies, whilst maintaining data security.
The sensitive information there company handles every day, we provided a cloud based solution to further support their work from anywhere initiatives by delivering information to their associates wherever they are in a secure and easy to access manner.
Our team listened to the customers' needs and tailored a near site digital mailroom solution to effectively meet their needs by leveraging an iron mountain owned and operated record center located near the customers headquarters as a result, we will digitize and distribute 10 million pieces in the <unk>.
Annually as part of a special handling process. We will also leverage our insight solution for checks and other items deemed to be sensitive over time, we expect to leverage the full suite of insight solutions to process all of their mail leveraging workflow automation through the use of our embedded artificial intelligence and machine learning.
<unk> this.
This innovative solution will dramatically improve mail processing times through automated routing as well as classification and governance.
These wins demonstrate the merits of strong customer loyalty, coupled with our solution oriented approach in serving our customers.
We are sharply focused on understanding their job to be done in delivering solutions, which are both innovative and impactful.
Now to switch gears I'd like to share recent data restoration and migration win that led to an ILM win thanks to a deep and trusted relationship with one of our customers a large Australian bank.
They have been growing through acquisition and as part of their integration plans have been decommissioning their datacenters to move to a large cloud provider.
To help enable this transition we recognize that they would benefit from better access to their data on tape leading to one of our biggest data restoration and migration services contracts.
This is in and of itself a great win but it led us to an even larger opportunity to assist this longstanding customer based on our strong partnership we were able to help the customer manage their decommission datacenter assets by offering an introduction to our <unk> services.
This win is an important entry point and shows our ability to help our customers solve multiple business challenges. It also reinforces the cross sell opportunity in SLM.
In our <unk> segment. In addition to the Australian Bank. This quarter, we closed the deal with another large global bank, whereby iron Mountain will provide onsite media destruction and datacenter equipment recycling to 42 data center campus locations and branch offices.
The program will also expand to corporate end user assets in multiple global locations.
This customer contacted Iron Mountain in January of 2022 to inquire about our secure it asset disposition services due to core performance from their incumbent vendor.
Our team engaged with the bank's key stakeholders to discuss their service requirements data security policy and pain points in order to best position our solution.
Our best in class logistics asset processing capabilities data security practices transparent reporting and strong client relationships were critical to securing the wind.
Moreover, our acquisition earlier this year of renew and the resulting ability to in source all asset processing capabilities in the U S. Convinced this customer that we had the strongest capability set to service them.
We are also pleased to report another ILM win with a large cloud customer, whereas we were awarded part of a $60 million global RFP.
The customer currently uses a multi vendor approach with a vendor assigned per region.
It renew was the largest provided to them in North America for value recovery and onsite drive destruction.
Now that Iron Mountain has completed the acquisition the customer has additionally awarded us their Irish business, along with expansion of the North American business to include shredding and recycling hard disk drives we.
We won this business in part due to our track record of achieving the highest value for the resale of decommission components, our global footprint and our excellence and asset tracking.
We are very encouraged by the continued growth of IP assets contracted to us for disposal as well as the wins with new and existing clients. However, like all global businesses exposed to computing equipment. The latest COVID-19 shutdowns in China have had a negative short term impact.
This impact has been most practice, particularly pronounced in May and June .
There is a higher than normal backlog of material, which we hold on consignment that cannot be sold until we can deliver it to the manufacturers in China, who are using the recycled components in their goods.
Whilst China's zero Covid policy makes it hard to predict when manufacturing rhythms will return to normal we do expect to see an acceleration of our sell through once the situation does indeed normalized.
In summary, the continued growth we have seen in the upstream supply of equipment needing to be securely and safely recycled further increases our excitement about this sector once downstream demand for recycled components reverts back to its usual levels.
Finally, our data center business has been extremely active this quarter and we successfully completed 83 megawatts of leasing. This included a 70 to 72 megawatt lease for two buildings on our Northern Virginia campus. Both of these facilities are effectively stabilized as we are pre leased 100% of the capacity to a fortune 100.
Company.
Today, we are happy to announce a joint venture for these assets with a subsidiary of Honda financial a global real estate firm.
Full build out of these two sites is expected in the third quarter of 2025, and Iron Mountain will be responsible for managing the design and development of the data center shell as well as administrating leap the leases.
Also in this quarter, we signed a hyperscale tenant on our Phoenix, Arizona campus.
With this new leaf the customer has existing capacity in three of our locations. This win increases their geographic presence with us as well as introducing the client to the Phoenix market for the first time.
We have also been active on co location this quarter in our data center business, we had a new customer win with one of the largest managed service providers, which has existing data centers in North America, and Europe , and we're looking to gain entry into strategic emerging markets, such as India to that end, we were able to accommodate.
This customer through our web works JV in Mumbai for data center capacity. When we originally entered India through this JV. We operated in three markets. We have spent much of the last year focused on securing land to expand our footprint in our existing markets as well has two additional new markets now.
We believe as we work through planning and permission permission ing on these parcels we will have over 100 megawatts of sellable capacity in the Indian market over the next couple of years.
Having personally visited India already twice this year and we remain very excited about the opportunities. We are seeing in this exciting market both for data center as well as our business more broadly.
These wins show, how our focus towards building an extraordinary set of synergistic and customer centric solutions combined with our global reach and footprint, both differentiates and propels our growth forward.
As we have discussed before we are focused on driving commercial activity, including cross selling our solutions to our customers and this quarter nearly all of our datacenter bookings were signed with existing customers of Iron Mountain.
To conclude I am incredibly proud of how our teams has can tell our team has continued to build on our growth momentum expand our portfolio and not only meet but exceed our customers' evolving needs.
This is evidenced by our outstanding and record results. This morning, including our highest ever revenue, an all time record EBITDA as well as the highest rate of organic revenue growth in the last 25 years.
We expect to continue to build on these results as we further the growth of our business based upon a strong global footprint, a powerful portfolio of products and services.
And our deep customer relationships.
We have a very exciting future and I can't wait to see all we continued to accomplish together with that I'll turn the call over to Barry.
Thanks, Bill and thank you all for joining us to discuss our results.
In the second quarter, our team delivered strong performance across all metrics meeting topline projections, while exceeding projections on EBITDA and <unk>.
On a reported basis revenue of $1 $9 billion grew 15% year on year or 18%, excluding the effects of the stronger U S. Dollar.
Incidentally the dollar strengthened significantly since the time of our call in April and resulted in about $15 million of incremental revenue headwind versus our prior projections for the second quarter.
A key highlight in the quarter is our organic storage revenue, which grew eight 2%, reflecting strong revenue management and datacenter commencements.
Total service revenue increased 34% to $536 million with 21% organic growth in.
In total this was driven by strength in our core service offerings, including digital solutions in our acquisition of renew.
Adjusted EBITDA was $455 million up 12% 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.
Higher level of EBITDA was despite the significant impact of the stronger U S dollar and the disposition of our software escrow business last June .
Combined those two items are about $17 billion of year on year headwind.
The deconsolidation last quarter of the former OSD Records business in Russia, offset the benefit from it renew.
With solid flow through second quarter EBITDA exceeded the expectations, we shared on our last call by $5 million on a reported basis and by $10 million using the same FX rates included in our April projections.
Adjusted EBITDA margin was better than we projected and improved 80 basis points sequentially versus the first quarter of 2022, driven by price and mix.
<unk> was $271 million or <unk> 93 on a per share basis up $25 million eight respectively from the second quarter of last year.
In both cases, we exceeded our expectations.
Now turning to segment performance.
In the second quarter, our global rim business delivered revenue of $1 1 billion, an increase of $74 million from last year or 7% on a reported basis.
On an organic constant currency basis revenue increased 11%.
Constant currency storage rental revenue growth of six 4% exceeded our expectations for the quarter. These.
These results reflect the strong performance of our commercial team and their focus on selling the full suite of products across our portfolio.
Global rim, adjusted EBITDA was $469 million, an increase of $45 million year on year.
Adjusted EBITDA margin was up 120 basis points year on year, reflecting pricing strength and productivity.
Turning to our global data center business, our team delivered another successful quarter of executing our strategy.
On a revenue basis, we delivered 30% year on year growth in a particular highlight for me is the 24% organic storage revenue growth.
As we noted on our last call we signed a 72 megawatt lease on our Virginia campus with a long standing hyperscale customer for a near build to suit as Bill noted we have recently established a joint venture for this asset whereby we will retain a 55% interest and generate a strong return.
We completed an additional 11 megawatts of leasing in the quarter for a total of 83 megawatts. We are confident in our 130 megawatt projection for new and expansion leasing this year. Thanks to the momentum from the first half of the year combined with our strong bookings pipeline.
Turning to our corporate and other business revenue increased 156% year on year, driven by our <unk> business, including the renewable acquisition and organic growth in our fine Arts business.
For modeling purposes, let me call out a couple of minor changes, we made to our reporting to be consistent with how we are managing the company for.
First all of our <unk> business is now included in corporate and other whereas previously our legacy it asset disposal business was in global rim.
Secondly, our entertainment services business and certain costs that support our commercial organization have been moved from corporate into global rim.
We have updated our historical financials to allow for comparability and those will be made available on our Investor Relations website later today.
In our asset lifecycle management business as Bill mentioned, we are very optimistic with regard to the underlying trends in this category and importantly, our committed backlog remains strong and growing and currently sits at a record level as we speak to you today.
Turning to capital recycling in the second quarter, we generated approximately $91 million total.
Total capital expenditures were $188 million of which $156 million was growth and $32 million was recurring we continue to expect total capital expenditures for the full year to be approximately $950 million, which includes $625 million for data center development and 155.
For recurring Capex.
Turning to the balance sheet.
With strong EBITDA performance, we ended the quarter with net lease adjusted leverage of five three times, which reflects a sequential improvement from the first quarter.
As we have said before we are committed to our long term range of four five to five five times, we continue to expect to exit the year at levels within our target range.
And with our strong financial position our board of directors declared a quarterly dividend of <unk> 62 per share to be paid in early October .
On a trailing four quarter basis, our payout ratio is now 68% approaching our long term target range of low to mid sixties now turning to our outlook.
For the full year, reflecting our performance in the first half and strong outlook, we expect to deliver revenue at the midpoint of our guidance range. Despite an additional $60 million of foreign exchange headwind in the second half.
And for EBITDA in <unk> with continued pricing and productivity, we expect to achieve the midpoint or beyond of our full year guidance ranges.
Now, let me share our expectations for the third quarter, we expect total revenue to be approximately $1 3 billion, which represents 15% growth year on year.
I would like to note that we have considerable FX headwinds both year on year and sequentially.
We expect adjusted EBITDA to be approximately $465 million in the third quarter, which represents 11% year on year growth.
And we expect <unk> to be approximately $280 million.
To conclude the performance of our business is strong our team continues to drive higher levels of growth and we thank them for their collective efforts and dedication.
Our core is strong with margin is increasing thanks to pricing and productivity and our investments are driving considerable growth across our business.
We look forward to seeing many of you at our upcoming Investor event on September 20th at which time, we will have the opportunity to discuss our strategy to drive considerable future growth.
The event will take place in Northern Virginia and include a tour of our data Center campus.
For those of you who cannot join in person a live webcast of the presentation will be available.
And with that operator, please open the line for Q&A.
Thank you we will now begin the question and answer session.
Ask a question you May press Star then one on your telephone keypad.
You are using a speakerphone please pick up your handset before pressing the keys.
If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
We will limit analysts to one question and you can rejoin the queue.
At this time, we will pause momentarily to assemble our roster.
And the first question will be from George Tong from Goldman Sachs. Please go ahead.
Hi, Thanks, good morning.
Your revenue management strategy continues to be tracking well in the storage business can you provide an update on <unk>.
How much in pricing increases are flowing through in response with the current inflationary environment and how much flexibility.
Sure.
Change revenue management conditions as the year progresses.
Oh, Hi, George it's Barry Thanks for the question.
The team is doing very very well with respect to revenue management, you would have seen that our organic storage rental revenue growth on an organic basis was up over 8% in the quarter that mark to nice acceleration even from the higher levels in the first quarter earnings in our global rim business that was over 6% on that metric.
So.
Volume as you would have seen on organic basis.
In total is up about 2%, but organic basis is very consistent with our expectations of being just slightly up so about 50 basis points. So what youre seeing is with very strong contribution from revenue management coming through and I'll just add on to the second part of your question and note that we are continuing to see incremental.
Opportunities for pricing and in fact, we will be seeing us.
Move forward with additional pricing actions later in the third quarter that will fully benefit us as we move through the year and then give us a little bit of an incremental lift next year. So those are.
Just in light of what's going on in the economic activity and the fact that our existing revenue management program has been so well received we see the opportunity to continue to move move higher. So you will see that going forward. Thanks for the question.
And the next question is from Shlomo Rosenbaum with Stifel. Please go ahead.
Hi, Good morning, and thank you for taking my question.
Can you talk a little bit more just about the I T.
Renewable revenue contribution to the quarter. You noted it was wide can you give us the exact amount it seemed at least my calculations somewhere around $65 million and then maybe.
Bill you can talk a little bit as you talked about IQ renewable in terms of what were you expecting in the quarter initially.
In.
When you had earnings in the first quarter, how is that different in how do you expect that to play out over the course of this year or in other words, what's your target for renewable given what we're seeing from China are you expecting to catch up or are you expecting some of this to kind of flow into 2023.
Hey, Thanks, I'll start Shlomo and then I think Barry give you a bit more specifics in terms of how to think about it from a modeling standpoint. So I appreciate the question.
To what when you and I were chatting at your conference here I guess, a couple of months almost two months back of summer is almost gone is that it's pretty much as we.
We're speaking about is that it's really a tale of two cities. So.
As I said in my remarks talking about a number of the customer wins that we've had around it asset destruction and asset lifecycle management, it's been a really strong quarter and that's really where we're getting the volume of material that we then sell that gets recycled into new completely new equipment going forward. So the what I would call the.
Dream in terms of the amount that's coming to us because of our customer reach the logistics that we have our know how to be able to do that in a safe and secure way is that we're sitting on very strong.
Inventories, it's on and on consignment to us. So this is stuff that we hold on consignment and then sell on behalf of our customers and ourselves are the suppliers of the components and ourselves to the downstream manufacturers that reuse that in new components. So the upstream bit is really performing to our expectations and we feel.
Really good about that the downstream bit right now is primarily in China and as we've seen the lockdowns even were stronger in May and June than we expected and they continue with the rolling Lockdowns because of their zero Covid policy. So we're it's hard to.
To predict exactly when that will open the good news is we have the inventory to sell the minute. It does open and every indication is that will normalize in the foreseeable future, but the timing of that is it's difficult to predict so long way of saying is we're really pleased with the performance on how its resonated with our customer.
<unk> to actually exceed our expectations and then how many customers have come to us to give us their volume of components to be disposed of either to be destroyed completely or recycled downstream in terms of selling those components downstream, which is where we recognize most of the revenue it's been hung up mainly because of the entire.
Because of the Covid zero Covid policy in China, and the rolling the Rolling shutdowns and Barry maybe you want to talk a little bit about how we see the rest of the year shaping up insurance. Thanks Shlomo for the question Hugh a couple of things you asked on the actual contribution you've calculated to correct. It was about $65 million. So that was just a touch up from the first quarter.
And.
As we as bill referenced.
As we said in early June in light of what we were seeing in the second half of May as well as the continued to see in June in light of the Covid shutdowns that bill referenced.
We certainly that was below our expectations that said in terms of going forward.
Two things one is we are planning in the guidance that I gave you for the third quarter and the target for the full year, we have just assumed that our.
At renewable contribution would be consistent going forward at that level or even maybe even a touch below that and I think thats, a conservative way to position it because as bill mentioned, we in so many other technology oriented companies don't know when China will reopen but I think.
Once it does to his point, we have a very strong committed backlog and we have a good amount of consigned inventory that can sell through I just didn't want to plan for it to get better. So I view that as that's why I described that as I think conservative because as it opens up we will be selling through so we feel very good about the committed backlog in the leg.
<unk> of activity, we're seeing from our upstream clients and as that market Reopens I think we will see very good sell through thank you.
And once again, if you have a question. Please press Star then one.
The next question is from Sheila Mcgrath from Evercore. Please go ahead.
I guess good morning.
Service revenue growth was up meaningfully I was wondering if you could help us drill down on that.
What were the major drivers of the growth is it new businesses or a rebound of some business.
Slowed down with Covid.
Good morning, Sheila I appreciate the question. So it's really mainly new businesses right I mean, the the business has rebounded from COVID-19, but we kind of saw most of that rebound to be honest with you. It towards the tail end of last year and there are still.
Certain countries that are kind of going through.
Periodic shutdowns, we talked about China.
About China in terms of <unk>, but we see the same thing on the records management side in terms of the rolling Covid shutdown shutdowns in China. So the growth that we printed in terms of services is mainly the new areas and I highlighted some of the wins that we're driving that on a digital transformation services. So.
This is really a direct result of taking ourselves from a $10 billion total addressable market for our products and services to the 120, so thats, where youre seeing the growth is in those new products and services that are part of that 12 times expansion of our total addressable market.
Sheila it's Barry the only thing I would add on to that is.
Specifically to build on Bill's point around digital solutions, we grew high teens in the quarter, which was the best comp we've had on that specific line and so in several quarters and in fact, it's against our hardest comp last year. So it really speaks to the fact that our digital business is taking hold and going from strength to strength I'll note.
That we had a very strong contribution from our legacy <unk> business as well that's in the asset lifecycle management business. As you know in that business is growing at very high rates and we see considerable incremental opportunity for that to grow in fact, just to be clear, it's accelerating in terms of it.
Level of growth. So we feel great about that business and then.
It's notable to say that our pricing continues to be up across the business that includes services. So thanks for the question Sheila.
Thank you and the next question is from Brendan Lynch from Barclays. Please go ahead.
Hi, good morning, Thanks for taking the question.
I wanted to just touch on kind of financial and the JV for some of your assets.
Obviously, you've been trying to grow data center revenue for past couple of years. So it was a little bit surprising to see a joint venture structure, maybe you could just comment on what your considerations were there.
Good morning, Brendan it's great to have you on the call I'll, Let me talk about the strategic rationale of why we decided to put that into a joint venture and then.
Or to do that deal that way and then I'll ask Barry He can give you a little bit more of the financial details. So first of all we don't do.
First we don't do a lot of build to suit powered shell and this was for a customer that is a is one of our largest customers globally in a number of our sites and they had a specific requirement for northern Virginia the.
The other aspect about this particular.
Client is it allowed us to materially expand almost 100, roughly around 130 to 135 megawatts of load that we can actually support on that Northern Virginia campus by doing this partnership with this client because we were able to use that to bring in a substation onto our site.
And we've we've completely secured the power for now for the entire Northern Virginia campus. So even net of the 72 megawatts that we are actually leasing as a powered shell is that we've actually increased the capacity of that site by another 70 megawatts. Another 70 megawatts. So that was really.
Really important to us and so the and it's a great return.
On the powered shell so that was really our motivation first of all for doing that kind of contract in terms of why we joint ventured joint ventured. It. It really was very compelling from a financial standpoint, I'll, let Barry talk a little bit about.
The.
The financial aspects of the deal are bringing in a joint venture partner because I should I should also add this is 100% stabilized asset right. So we always look at fully stabilized assets and say is that something.
We are focusing most of our capital on development opportunities.
Not stabilized assets. So we saw that as an opportunity, but then, especially when we looked at the opportunity the financial aspects. We are just very compelling, yes, hi, hi, Brendan and thanks for joining the call.
In terms of the JV just to be clear, we will operate it will of course be responsible for the construction management et cetera, we saw it as an opportunity to leverage third party capital, which allows us to essentially use someone else's balance sheet and then use ours to go.
Further our development pipeline as you know we've got a lot of capacity to continue to build out and as Bill mentioned this is effectively a fully stabilized asset before we even break ground and in light of the.
Still very significant investor interest in data center assets, we saw it as a compelling incremental opportunity to even further improve the return that much more is.
As the pre lease is very attractive to the capital markets. So we will maintain a 55% interest in it.
We have traditional benefits from the joint venture structure that you would appreciate as the data center analyst and I will just note that we were able to sell that at a sub four and a half cap and again, it's fully stabilized. So we view it as a compelling capital allocation opportunity. Thanks for the question.
Thank you and the next question is from Eric <unk> from Wells Fargo. Please go ahead.
Great. Thank you I'll stick with the data center topic, so kind of interested in how your sales funnel looks after such a strong start to the year, particularly with Hyperscale, but also on enterprise and then on the pricing side. It seems like datacenter pricing has been lifting even for the larger hyperscale deals. So I'm wondering.
Where are you seeing pricing today, particularly to supply appears to be getting tighter and tighter and a lot of markets and then bill.
Bill you're interested in.
In terms of like which markets you might need additional land capacity.
Or are there opportunities to do some select tuck in M&A for select assets that maybe you get.
Get some capacity in new market. Thank you.
No. Thanks, Thanks, Sara I'll I'll start.
The I think first of all yes, it's a great problem to have we have been so successful. This year in terms of leasing you are right to point out that we are making sure that we have capacity to continue to grow at these kind of rates. So the funnel that we have in front of US right. Now if you think about we have 108 18 megawatts leased to date this year.
Year with it and we said we gave you guidance that we'll do at least 130.
Megawatts. This year. So we feel obviously very comfortable about that and going into next year. We don't see any slowdown in terms of the rate of growth I mean, the 72 megawatts that we did in northern Virginia.
I'd say thats, a one off because we continue to see in the pipeline similar types of opportunities whether or not we will pursue all those.
As we are constantly make decisions based on the specifics around that that requirement, but we are lucky that we are in a situation where as I said, we don't necessarily.
Bite at everything that comes by so we can actually be a bit more selective.
We feel really good about the funnel will give you obviously guidance for next year as we get closer to the end of this year, but we.
We feel really good in terms of having similar kinds of growth rates going into going into next year and beyond in terms of where we need more capacity, obviously in Arizona, we need more capacity and we're well on track to be able to do that we talked about expanding our footprint in India. We just think that's a really high growth and interesting market.
You can imagine that we're.
Actually we still have a little bit more capacity left in Frankfurt II, but Frankfurt is another market that we are.
We're regularly looking at.
We are well situated in expanding our campus in Amsterdam, So thats good.
<unk> believe it or not we're probably going to be back into the market in London again, so there's a number of markets, but as you can imagine is that we're constantly.
Out too to expand it but right now I would say that our real estate plan and what we have currently.
Under our control is we feel really good to be able to maintain these growth rates I mean never say never in terms of acquisitions.
We don't see anything on the horizon.
Do we look at.
Kind of what I call brownfield opportunities like we did with Frankfurt, two or even when we entered the Amsterdam market. We constantly look at whether it's better to buy a piece of greenfield land or brownfield asset that can be rapidly expanded but I think you can probably think of your mind. It mostly we're looking at is expanding our land bank.
In terms of Greenfield.
Eric just to add on the Sperry I would say as it relates to pricing it's been quite good and we see that continuing to lift it across our data center portfolio, you would see that in our mark to market has been improving and continuing to run a little bit ahead of our expectations and that's a little bit of a lag lagging indicators, so youll see more lift there.
You've seen our new and expansion leases signing at higher levels on a per kilowatt.
Basis, both in the quarter and versus last year, and our renewed leases are coming in better so.
That together with the fact that churn is running kind of at or below expectations. We feel very good about what the team is doing in our data center business. Thanks.
Thank you and the next question is a follow up question from Sheila Mcgrath from Evercore. Please go ahead.
Yes, I mean, it looks like you may have done some sale leaseback in the quarter I saw fewer building just wondering how much proceeds did you raise and if pricing has changed dramatically.
Interest rates.
Hi, Sheila it's Barry Thanks for the question you're right. We did do a few transactions, we had about $91 million of proceeds in the quarter year to date, that's about $96 million I continue to expect will probably due for the full year something like 115, maybe a touch more than that in terms of total.
<unk>.
And notwithstanding your point about the market we continue to find there is.
Tremendous appetite for industrial assets out there and we were able to transact in both in terms of on cap rates as well as on lease terms that are very favorable to us and as you know thats been part of our capital allocation strategy for some time. So we will continue to do that is my expectation.
For the question Sheila.
Thank you and ladies and gentlemen, this concludes our question and answer session and the Iron Mountain <unk> second quarter 2022 earnings Conference call. We thank you for attending today's presentation and you may now disconnect take care.
Everyone else has left.
Yeah.