REIT Conversion Risks Not Just for Iron Mountain
Apparently changing your corporate status to a real estate investment trust (REIT) does not always come easy, nor is there such thing as a free lunch. Iron Mountain Inc. (NYSE: IRM) is seeing it shares get pounded after the Internal Revenue Service may delay the document storage company’s conversion to a REIT. The company also disclosed that before it formed the working group, the IRS had indicated that it was adverse to giving it a ruling letter. To make matters worse, this is not just an Iron Mountain issue, as the IRS working group could pose delays (or refusals) to many companies that are trying to convert or are considering converting to a REIT.
To show just how bad this is, Iron Mountain is down 17% at $28.50, and shares hit a 52-week low of $27.75 on the day. Volume is already 10 times normal as well at…
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