8:45 AM ET, 09/15/2014 - IRM
(for my records)
Iron Mountain Declares First Quarterly Distribution as a REIT and Remaining Special Distribution
BOSTON--(BUSINESS WIRE)--Sep. 15, 2014-- The Board of Directors (the “Board”) of Iron Mountain Incorporated (NYSE: IRM), the storage and information management company, today declared its first quarterly distribution as a Real Estate Investment Trust (“REIT”) of $0.475 per share, payable on October 15, 2014 to stockholders of record on September 25, 2014 (the “Third Quarter Distribution”).
The company also declared the remaining special distribution to stockholders of $700.0 million, or approximately $3.62 per share based on the number of shares currently outstanding (the “Special Distribution”), required in connection with the company’s conversion to a REIT.
The Special Distribution is payable on November 4, 2014 to stockholders of record as of the close of business on September 30, 2014.
In addition, subject to Board approval, the company expects to distribute its second quarterly distribution as a REIT in December (the “Fourth Quarter Distribution”), following the issuance of shares associated with the Special Distribution as described below.
The company anticipates that the per share amount of the Fourth Quarter Distribution will be approximately the same as the Third Quarter Distribution.
Also, the company expects to distribute prior to December 31, 2014 a “catch-up” distribution because the company’s distributions through July 2014 were declared before the Board had determined if the company could convert to a REIT effective January 1, 2014 and were lower than they otherwise would have been if the company had been operating a REIT.[/b]
The company expects total distributions in 2014, excluding the Special Distribution, to be approximately $400 million of cash, in line with its previous range of $400 million to $420 million.
“These distribution declarations represent a significant milestone in our conversion to a REIT; we are now paying out roughly twice the total dollar amount we distributed prior to the conversion.
Moreover, including the distributions announced today, we will have returned roughly $3.5 billion to Iron Mountain stockholders since 2010 through repurchases, stock distributions and cash dividends,” said William L. Meaney, president and chief executive officer.
“We generate strong cash flow through our durable storage rental business, which is supported by our expansive global real estate platform, defensible market leadership and consistent financial performance – all of which we believe will continue to drive attractive stockholder returns.”
The Special Distribution represents the remaining amount to satisfy the requirement that the company pay to stockholders its undistributed accumulated earnings and profits (“E&P”) attributable to all taxable periods ending on or prior to December 31, 2013.
The Special Distribution also will include some other items of taxable income that the company expects to recognize in 2014, such as depreciation recapture in respect of accounting method changes commenced in its pre-REIT period as well as foreign earnings and profits repatriated as dividend income.
An initial $700.0 million of E&P was paid to stockholders in November 2012, bringing the total special distributions to $1.4 billion, at the high end of the company’s range of $1.3 billion to $1.4 billion.
Stockholders can elect to receive payment of the Special Distribution in the form of stock or cash, with the total cash payment to all stockholders limited to no more than $140 million, or 20 percent of the total distribution.
The amount of shares to be distributed will be determined based upon stockholder elections and the average closing price on the three trading days following October 24, 2014.
Election forms will be mailed to all stockholders promptly following the record date.
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