bmichaud Posted March 10, 2011 Share Posted March 10, 2011 The Company disclosed today that it received a latter from a hedge fund nominating a slate of four independent directors. The HF has a 5% stake, and is pushing for IRM to convert into a REIT and cut back on low-return growth CAPEX. A quick back-of-the-envelope calculation shows adjusted net income at ~$300mm, but that includes depreciation of ~$350mm. Given the low capex requirements of a service company such as IRM, maintenance CAPEX could presumably be in the range of $150mm, which I assume is what the HF is looking at. The market cap is $5.6 billion, and assuming $150mm of maint CAPEX the PE is ~11x. I am thinking of it from a special situations perspective where it's moderately undervalued but has a catalyst in the form of the HF. So from a SS perspective, it depends on the likelihood of these 4 directors getting nominated. All that to say, my question is what is the likelihood of a slate of directors being nominated when the proposing shareholder has only a 5% stake? Or does the size of the stake not matter so much as the validity of the proposed plan (i.e. the REIT structure) and whether fellow shareholders agree? Curious what others interested in special situations think. Link to comment Share on other sites More sharing options...
magno111 Posted June 26, 2014 Share Posted June 26, 2014 they have been approved to convert into a REIT , today is up 20%. http://investors.ironmountain.com/company/for-investors/investor-news/investor-news-details/2014/Iron-Mountain-REIT-Conversion-to-Enhance-Stockholder-Returns/default.aspx The new dividend will be around 2$, AFFO 570M, and 930M EBITDA. Comparable store reit's trade at 16x EBITDA, 3-4% yield and 17-21x P/AFFO. that implies a prices for IRM of around 50-55$ ( assuming share count goes to 205M from 193M by especial dividend effect). At today's price of 35$ you will receive by year end around 1$ regular dividend plus 3$ in especial dividend. At 31$ net price you could see a 60% potential upside. Business is very stable, 80% revenue is recurring, growing at GDP rate, it did very well in the crisis( ebitda increased ). Link to comment Share on other sites More sharing options...
LC Posted January 18, 2019 Share Posted January 18, 2019 Bought a little bit of IRM today. Frankly I am still torn - the business appears to be a good, stable business. However I am not quite happy with management. Debt has grown to aprox $8B from $6B over the past year or two (although to be fair debt to ebitda is relatively constant) Shares outstanding has grown from 200MM to 265MM over the past 5 or so years. Again to be fair, EPS has been seemingly constant (or constantly fluctuating). So some good, some bad. Like I said I am not convinced but open to being. A 7% yield is pretty good while i figure it out. Link to comment Share on other sites More sharing options...
glorysk87 Posted July 11, 2019 Share Posted July 11, 2019 What is the positive case to be made for these guys? The storage business would seem to be a secular decliner with destructions outpacing new storage volumes. Recycled paper prices are at 25 year lows, hitting service revenues. Dividend barely covered and likely going to be cut unless they can somehow stimulate organic growth. Seems like a case where the debt load is going to slowly crush them. Am I missing something? Link to comment Share on other sites More sharing options...
LC Posted July 11, 2019 Share Posted July 11, 2019 I was actually just going to post given the downgrade today. Not much positive that I can imagine. The only area where new storage > destructions is the other int'l segments, which only make up 15% of the business and only growing at ~5%. This is either dead money to me or I sell at about an 8% net loss. Probably wind up selling...glad I didn't sink more into it. Link to comment Share on other sites More sharing options...
LC Posted May 7, 2020 Share Posted May 7, 2020 Results out today https://investors.ironmountain.com/news-and-events/press-releases/press-release-details/2020/Iron-Mountain-Reports-First-Quarter-2020-Results/default.aspx Bumping this as I am inexplicably still invested here Link to comment Share on other sites More sharing options...
LC Posted August 6, 2020 Share Posted August 6, 2020 https://investors.ironmountain.com/news-and-events/press-releases/press-release-details/2020/Iron-Mountain-Reports-Second-Quarter-2020-Results/default.aspx Q2 2020 results Storage revenue 1% increase Service revenue 21% decrease Link to comment Share on other sites More sharing options...
montizzle Posted December 21, 2020 Share Posted December 21, 2020 https://seekingalpha.com/article/4395600-8_4-yielding-iron-mountain-ranks-one-of-top-growth-picks-in-2021 Interesting read. I'm still not convinced on the long case here but I have a lot of respect for Brad's REIT analysis and always keep an ear out for what he says Link to comment Share on other sites More sharing options...
Gregmal Posted December 21, 2020 Share Posted December 21, 2020 I follow Brad a bit, and own some of the stocks he's covered. Generally speaking, I like him. But my 2c is that he does an incredible job of giving an overall surface review of the companies he writes about, but he sometimes misses some very important fundamental details that somebody writing about a stock shouldn't miss. Its probably the byproduct of writing 5 articles a day. Link to comment Share on other sites More sharing options...
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