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Gotham City Research and General Industrial Partners recently revealed that they have taken a short position in Iron Mountain, questioning the REIT's growing investments in data centres. They stated that the company's level of leverage does not align with its long-term spending capacity. Iron Mountain did not issue a comment when approached. Following the announcement, the REIT's share price fell by around 5% by mid-afternoon GMT. Gotham City Research and GIP have previously carried out high-profile investigations into firms such as SES Imagotag, now known as Vusion Group, and the Spanish healthcare company Grifols.
Gotham City Research and General Industrial Partners disclosed during the week that they have taken a short position in Iron Mountain, the real estate investment trust known for its storage, information management and expanding data centre operations. The firm did not respond to enquiries seeking its reaction to the move. Advertisement
The short-selling team, led by Daniel Yu and Cyrus de Weck, stated that Iron Mountain's increased reliance on leveraged spending for its data centre expansion does not align with what they believe the company can sustainably commit over the long term. Their view suggests that the REIT's investment strategy may be stretching its balance sheet beyond comfortable limits.
Following the disclosure, Iron Mountain's share price dropped by around 5% by mid-afternoon GMT. Market watchers noted that this reaction was consistent with investor caution typically seen when notable short sellers target a company.
Gotham City Research and GIP are known for past investigations that drew significant attention, including their work on SES Imagotag, now operating as Vusion Group, and the Spanish medical company Grifols. Both cases previously led to heightened market scrutiny and extended debate around corporate practices, adding weight to their current position on Iron Mountain.
Source Reuters
5th Jun, 2025
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