By Svea Herbst-Bayliss

(Reuters) -CyrusOne Inc, a U.S. data center operator with a market capitalization of about $9 billion, is exploring strategic alternatives that include a potential sale of the company, according to people familiar with the matter.

The real estate investment trust is working with investment bank Morgan Stanley (NYSE:) to review its options after coming under renewed pressure from some investors to address its sluggish financial performance and heavy management turnover, the sources said. The company shares have declined modestly over the past year, while its share price rose 16% in the.

Sources say there is not certainty that CyrusOne’s (NASDAQ:) current discussions will lead to any deal. They requested anonymity as the matter is confidential.

CyrusOne’s spokesperson didn’t immediately reply to my request for comment. Morgan Stanley spokeswoman declined to comment.

On a day when the wider market was in decline, the stock price of the company jumped by as high as 7%.

CyrusOne is a Dallas-based company that manages over 50 data centers around the world. This business seeks to capitalize on cloud computing trends where companies outsource some or all of their data management.

CyrusOne is not an operator of major internet exchanges. According to Morningstar, CyrusOne could see its data centers becoming more commodity as the growth outlook for companies slows.

CyrusOne’s total shareholder return has averaged 26.2% in the last three years, underperforming each of its data center peers and lagging the broader S&P 500 Index, which returned 61.1%.

For example, the private equity firm Blackstone (NYSE 🙂 Inc purchased Rival QTS Realty Trust (NYSE 🙂 Trust this year for $10 billion. It returned 98% during that same time period. QTS had Morgan Stanley as its financial advisor, and Jefferies LLC (NYSE:) LLC was the same.

Analysts stated that infrastructure funds and realty funds are interested in data center assets which could be worth more in the private sector than in public.

On an earnings call held in the latter part of 2019, Gary Wojtaszek, former CEO stated that no sale is being discussed. Wojtaszek resigned in 2020. He was succeeded by Tesh Durvasula who became interim CEO. Bruce Duncan was then appointed in June 2020.

On July 20, 2021, Duncan’s departure was announced by the company and David Ferdman appointed interim CEO. Ferdman, who cofounded the company and was its CEO from 2000 to 2011, is also the founder.

According to shareholders data, Jana Partners, an activist hedge fund owned 1.4% in CyrusOne as of the close of the second quarter.

Jana, founded by Barry Rosenstein has a track record of quietly advocating for change. Many of Jana’s portfolio companies including Whole Foods Market (NYSE:) Inc and Pinnacle Foods were purchased. A request for comment was not received by the firm.