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UPDATE 1-Iron Mountain to convert to REIT
June 5, 2012 / 9:17 PM / 6 years ago

UPDATE 1-Iron Mountain to convert to REIT

June 5 (Reuters) - Document storage company Iron Mountain Inc said it would convert to a real estate investment trust, almost a year after hedge fund group Elliott Management nudged the company’s management for the conversion.

Iron Mountain expects to take a charge of about $325 million to $425 million in one-time costs to support the conversion process.

The company, which rents out storage space to customers, said the conversion would have virtually no impact on its customers.

Elliott last year cited the management’s practice of reinvesting a bulk of the profits for expansion with “minimal-to-negative returns” as one of the reasons for the action.

Iron Mountain also increased its quarterly dividend payments. The next dividend of 27 cents per share is payable on July 13, 2012 to stockholders of record on June 22, 2012.

Shares of Iron Mountain rose to $32.69 in after-market trading. They closed at $28.40 on the New York Stock Exchange on Tuesday. (Reporting by Chandni Doulatramani in Bangalore; Editing by Joyjeet Das)

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