What Makes Iron Mountain Incorporated (IRM) an Attractive Long-Term Bet?

Baron Funds, an investment management company, released its “Baron Real Estate Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund delivered strong results in the quarter. The fund appreciated 10.25% (Institutional Shares) compared to the MSCI US REIT Index’s (the REIT Index) 4.49% and the MSCI USA IMI Extended Real Estate Index’s 5.65%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Baron Real Estate Fund highlighted stocks such as Iron Mountain Incorporated (NYSE:IRM). Iron Mountain Incorporated (NYSE:IRM) is a REIT that provides storage and information management solutions. The one-month return of Iron Mountain Incorporated (NYSE:IRM) was -4.36%, and its shares lost 12.79% of their value over the last 52 weeks. On November 11, 2025, Iron Mountain Incorporated (NYSE:IRM) stock closed at $101.15 per share, with a market capitalization of $29.899 billion.

Baron Real Estate Fund stated the following regarding Iron Mountain Incorporated (NYSE:IRM) in its third quarter 2025 investor letter:

“In the third quarter, we initiated a new REIT position in Iron Mountain Incorporated (NYSE:IRM), as its shares offered a compelling valuation level combined with attractive long-term growth prospects. Iron Mountain offers record storage management along with an evolving fast-growing data center segment.

We have continued to meet with CEO Bill Meany and CFO Barry Hytinen and remain encouraged by the company’s prospects to increase overall cash flow per share by approximately 10% over the next several years, far more than our growth expectations for most other REITs. The company’s strong growth outlook is underpinned by predictable and stable growth in its core records management business, while outsized growth is driven by its data center business which has visibility to more than the triple operational capacity from today’s in-place base. Further, the company’s asset life cycle management business continues to grow at more than 20% year-over-year with opportunities to further consolidate the fragmented market.”

Iron Mountain Incorporated (NYSE:IRM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 47 hedge fund portfolios held Iron Mountain Incorporated (NYSE:IRM) at the end of the second quarter, up from 40 in the previous quarter.  In the third quarter of 2025, Iron Mountain Incorporated’s (NYSE:IRM) revenue increased 13% to $1.8 billion. While we acknowledge the risk and potential of Iron Mountain Incorporated (NYSE:IRM) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Iron Mountain Incorporated (NYSE:IRM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Iron Mountain Incorporated (NYSE:IRM) and shared the list of best real estate stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.