CoreCivic and the Commonwealth of Kentucky Department of Corrections entered into a management contract, pursuant to which the former will provide housing for medium and close-security offenders at Lee Adjustment Center in Beattyville, KY.
The contract began on Nov 19, 2017 and CoreCivic will utilize the next 120 days for staffing and preparing the facility to accommodate the offender population. Offenders are likely to arrive at the facility toward the end of first-quarter 2018. The contact ending on Jun 30, 2019 has two additional one-year extension options.
Per an article, the state anticipates to relocate around 800 inmates from the 80-year-old Kentucky State Reformatory to Lee Adjustment Center. Managed by CoreCivic — Lee Adjustment Center — having 816 beds, is a private prison facility.
Kentucky had three CoreCivic’s private prisons. However, in 2013, the state stopped using prisons owned and managed by the company due to allegations of inmate mistreatment and other issues. In fact in 2004, inmates set fire to an administrative building and the state levied a $10,000 fine against CoreCivic for failing to address the unrest competently.
However, amid a surge in offender population, state prisons and county jails that accommodate offenders are currently full or at overcapacity. Hence the state has resorted to use private facilities. Moreover, due to increased number of inmates, additional staff had to be hired resulting in an increase in maintenance and staffing costs. Per an article, Justice Secretary John Tilley observes relocating prisoners from the state reformatory will result in savings in fiscal 2019. CoreCivic will receive $57.98 a day for each inmate at the center.
CoreCivic anticipates to incur 3-4 cents of operating loss in first-quarter 2018 due to higher staffing and other related expenses. The company expects to achieve stabilized occupancy in second-quarter 2018, subsequent to which the contract will likely generate annual revenues of $15-$17 million.
Formerly known as Corrections Corporation of America, CoreCivic is a real estate investment trust (REIT) which provides correctional, detention and residential reentry facilities. It designs, constructs, owns, manages and renovates jails, prisons, government agencies and inmate transportation companies.
CoreCivic currently carries a Zacks Rank #3 (Hold). Year to date, shares of the company have lost 5.1% underperforming the 6.7% growth recorded by its industry.
Stocks to Consider
Some better-ranked stocks in the REIT space are Cedar Realty Trust , Urstadt Biddle Properties and DCT Industrial Trust . All three stocks carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cedar Realty’s funds from operations (FFO) per share estimates for 2017 remained unchanged at 54 cents over a month.
Urstadt Biddle Properties’ 2017 FFO per share estimates have remained unchanged at $1.25 over the past 60 days.
DCT Industrial Trust’s current-year FFO per share estimates have been revised upward by a cent to $2.44 in a month’s time.
Note: All EPS numbers presented in this write up represent funds from operations (FFO) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
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Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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CoreCivic Facility to House Kentucky's Offender Population
CoreCivic and the Commonwealth of Kentucky Department of Corrections entered into a management contract, pursuant to which the former will provide housing for medium and close-security offenders at Lee Adjustment Center in Beattyville, KY.
The contract began on Nov 19, 2017 and CoreCivic will utilize the next 120 days for staffing and preparing the facility to accommodate the offender population. Offenders are likely to arrive at the facility toward the end of first-quarter 2018. The contact ending on Jun 30, 2019 has two additional one-year extension options.
Per an article, the state anticipates to relocate around 800 inmates from the 80-year-old Kentucky State Reformatory to Lee Adjustment Center. Managed by CoreCivic — Lee Adjustment Center — having 816 beds, is a private prison facility.
Kentucky had three CoreCivic’s private prisons. However, in 2013, the state stopped using prisons owned and managed by the company due to allegations of inmate mistreatment and other issues. In fact in 2004, inmates set fire to an administrative building and the state levied a $10,000 fine against CoreCivic for failing to address the unrest competently.
However, amid a surge in offender population, state prisons and county jails that accommodate offenders are currently full or at overcapacity. Hence the state has resorted to use private facilities. Moreover, due to increased number of inmates, additional staff had to be hired resulting in an increase in maintenance and staffing costs. Per an article, Justice Secretary John Tilley observes relocating prisoners from the state reformatory will result in savings in fiscal 2019. CoreCivic will receive $57.98 a day for each inmate at the center.
CoreCivic anticipates to incur 3-4 cents of operating loss in first-quarter 2018 due to higher staffing and other related expenses. The company expects to achieve stabilized occupancy in second-quarter 2018, subsequent to which the contract will likely generate annual revenues of $15-$17 million.
Formerly known as Corrections Corporation of America, CoreCivic is a real estate investment trust (REIT) which provides correctional, detention and residential reentry facilities. It designs, constructs, owns, manages and renovates jails, prisons, government agencies and inmate transportation companies.
CoreCivic currently carries a Zacks Rank #3 (Hold). Year to date, shares of the company have lost 5.1% underperforming the 6.7% growth recorded by its industry.
Stocks to Consider
Some better-ranked stocks in the REIT space are Cedar Realty Trust , Urstadt Biddle Properties and DCT Industrial Trust . All three stocks carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cedar Realty’s funds from operations (FFO) per share estimates for 2017 remained unchanged at 54 cents over a month.
Urstadt Biddle Properties’ 2017 FFO per share estimates have remained unchanged at $1.25 over the past 60 days.
DCT Industrial Trust’s current-year FFO per share estimates have been revised upward by a cent to $2.44 in a month’s time.
Note: All EPS numbers presented in this write up represent funds from operations (FFO) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>