Vince Martin
Long/short equity, value, gambling

Iron Mountain' REIT Issues Irrelevant To Penn National Gaming

Shares of Penn National Gaming (NASDAQ:PENN) fell 1.5 percent in after-hours trading Thursday, in what appears to be a response to Iron Mountain's issues with the Internal Revenue Service. In an 8-K filed with the SEC, Iron Mountain wrote the agency was "tentatively adverse" toward its plan to re-constitute itself as a real estate investment trust [REIT].

The move to REIT status by Iron Mountain (NYSE:IRM) -- a document storage firm -- was done solely to improve the tax position of the company and its shareholders. As long as a REIT passes along 90 percent of its profits as dividends, it is exempt from corporate income tax, boosting the net returns to shareholders.

Penn's sympathy move...

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