Core Viewpoint - The Federal Reserve's interest rate policies are impacting interest rate-sensitive sectors, particularly real estate, which has shown weak performance in 2025, with a gain of only 1.57% [1][2] Real Estate Sector Performance - Real estate's performance in 2025 is the fourth-worst among the S&P 500 sectors, only outperforming energy, consumer discretionary, and healthcare [1] - Housing starts are at a five-year low due to declining buyer demand, and office occupancy rates are struggling with a national vacancy rate nearing 20% [2] Iron Mountain Overview - Iron Mountain, a REIT founded in 1951, has transitioned from records management to colocation data center operations and is currently considered undervalued based on its fundamentals and long-term prospects [3][4] - The company serves 240,000 customers across 61 countries, including nearly 95% of Fortune 1000 companies, and has a customer retention rate of 98% [4][5] Financial Performance - In Q1, Iron Mountain reported a revenue increase of 20.58% from $5.10 billion to $6.15 billion and a net income increase of 18.55% from $2.91 billion to $3.45 billion [6] - Free cash flow decreased from $44.11 million in 2022 to negative $594.86 million in 2024 due to capital expenditures, while total assets grew by 15.98% from $16.14 billion to $18.72 billion [6][7] Data Center Market Growth - The global data center market is projected to grow at a CAGR of 11.2% from 2025 to 2030, increasing from $347.60 billion to $652.01 billion, primarily driven by AI and machine learning [8] - Iron Mountain has a significant presence in both North America and Asia Pacific, accommodating major clients like Microsoft, IBM, and Deloitte [9] Investment Sentiment - Institutional investors hold 83.89% of Iron Mountain's 295 million shares, with significant purchases noted in recent filings [10] - Analysts have assigned a Buy rating to Iron Mountain, with a 12-month price target of $121.71, indicating a potential upside of 22.12% from the current price of $99.67 [11] Stock Performance - Iron Mountain's shares are currently trading 23% lower than their one-year high but have increased by 27% from their one-year low [12] - The company has increased its dividend payout for nine consecutive years, currently yielding 3.20% [12]