According to an article by Maria Armental for MarketWatch, storage and information management company Iron Mountain Inc.'s board has approved its conversion to a real-estate investment trust, following a ruling from the U.S. IRS. The move will be effective for the taxable year that began January 1st.
Last year the IRS stepped up its scrutiny of some companies that were looking to avoid some corporate taxes by converting their operations into real-estate investment trusts. Iron Mountain and a number of other companies received notice from the agency that they were subject to the review.
Under the new corporate structure, Iron Mountain expects per-share earnings for the year to increase to $1.52, from its earlier view of $1.03 to $1.14, and annual dividends of $400 million to $420 million, up from $207 million.