NEW YORK (TheStreet) -- Shares of Iron Mountain Inc. (IRM) are surging 16.22% to $34.60 in after-hours trading on Wednesday after its board unanimously approved the company's conversion to a REIT, or real estate investment trust, for the taxable year beginning January 1, following the receipt of favorable private letter rulings from the IRS.
Additionally, Iron Mountain expects its full-year 2014 annual distribution as a REIT to be $400 to $420 million, excluding the 2014 special distribution, compared with the current projected annual dividend of approximately $207 million.
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Separately, TheStreet Ratings team rates IRON MOUNTAIN INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate IRON MOUNTAIN INC (IRM) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, increase in stock price during the past year, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."