BOSTON -- Iron Mountain Inc. on Thursday declared a special dividend of $700 million as part of its planned conversion into a real estate investment trust.
Iron Mountain said shareholders will get about $4.07 for each share they own. The dividend will be paid Nov. 21 to shareholders of record on Oct. 22, and shareholders can choose to receive payment in the form of stock or cash. However the company will pay no more than $140 million in cash.
The company plans to become a REIT by the start of its taxable year beginning Jan. 1. Iron Mountain expects to distribute between $1 billion and $1.5 billion to shareholders as part of that change, and said it plans to make the rest of the distribution after the conversion is complete.
Iron Mountain helps customers manage paper records and store other information, including patient data. It said in June that it would become a REIT because the biggest portion of its income comes from renting out storage space in its real estate holdings. The company said the new structure would increase stockholder payouts and would not affect customers. REITs get special tax considerations and their securities sell like stocks on major exchanges.
Shares of Iron Mountain rose $1.61, or 4.7 percent, to $35.96 on Thursday and were unchanged in aftermarket trading.