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. 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.

About Iron Mountain

Iron Mountain Incorporated (NYSE:IRM) is a leading provider of storage and information management services. The company’s real estate network of more than 67 million square feet across more than 1,000 facilities in 36 countries allows it to serve customers with speed and accuracy. And its solutions for records management, data management, document management, and secure shredding help organizations to lower storage costs, comply with regulations, recover from disaster, and better use their information for business advantage. Founded in 1951, Iron Mountain stores and protects billions of information assets, including business documents, backup tapes, electronic files and medical data. Visit www.ironmountain.com for more information.

Forward Looking Statements

This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. The forward looking statements are subject to various known and unknown risks, uncertainties and other factors. When the Company uses words such as “believes,” “expects,” “anticipates,” “estimates,” “plans” or similar expressions, the Company is making forward looking statements. Although the Company believes that its forward looking statements are based on reasonable assumptions, its expected results may not be achieved, and actual results may differ materially from its expectations. For example:

  • This press release states that the Company anticipates paying the Fourth Quarter Distribution and the “catch-up” distribution prior to the end of 2014. The timing of these distributions, which may or may not occur, may be affected factors beyond the Company’s control.

The Company’s forward looking statements should not be relied upon except as statements of the Company’s present intentions and of the Company’s present expectations, which may or may not occur. Cautionary statements should be read as being applicable to all forward looking statements wherever they appear. Except as required by law, the Company undertakes no obligation to release publicly the result of any revision to these forward looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Readers are also urged to carefully review and consider the various disclosures the Company has made in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including the sections “Risk Factors” and “Cautionary Note Regarding Forward Looking Statements,” as applicable, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on February 28, 2014, the Company’s Current Report on Form 8-K filed with the SEC on May 5, 2014, and the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 filed with the SEC on July 31, 2014.