Iron Mountain (IRM) Soars After Board Approves Conversion to REIT
Shares of Iron Mountain Inc. (IRM) were trading up +6.94 or +23.31 percent to $36.71 per share in pre-market trading Thursday morning, after the company announced yesterday that its board had unanimously approved the companyâ s conversion into a real estate investment trust or REIT. The conversion is for the companyâ s fiscal 2014 year, which began January 1st, 2014.
Iron Mountain stock closed at $29.77, down -0.10 or -0.33 percent in Wednesdayâ s regular trading session.
Boston, MA based Iron Mountain Inc. started as a storage facility for documents in an abandoned iron mine in 1951 in the event of a nuclear war. The company provides data backup, records management and document storage services to over 120,000 customers in Asia, North America, Latin America and Europe. Iron Mountain stores information in 64 million square feet of real estate all over the world. The company safeguards records for corporations worldwide and is divided into five operating segments: Europe, Latin America, Asia Pacific, North American Physical Business and Worldwide Digital Business. The conversion of the company to an REIT has been developing for some time and was not until Iron Mountain obtained a favorable ruling from the U.S. Internal Revenue Service that the board could approve the conversion. The company received a favorable letter from the IRS that included a ruling over Iron Mountainâ s steel racking structures as real estate for the purposes of the REIT under IRS code. Following the tax rules that apply to REIT conversions, in order for the company to qualify for REIT status beginning January 1st, 2014, Iron Mountain is planning on making a special distribution in 2014â s second half of the companyâ s previously undistributed accumulated profits and earnings. The company refers to this as the â
Published on Jun 26, 2014
By Jay Hawk