Movers and SHAKERS
CoreCivic, Inc. (CXW)
Completes Sale of Non-Core Assets for $326 Million
CoreCivic is a diversified government solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through corrections and detention management, a growing network of residential reentry centers to help address America’s recidivism crisis, and government real estate solutions. We are a publicly traded real estate investment trust and the nation’s largest owner of partnership correctional, detention and residential reentry facilities. We also believe we are the largest private owner of real estate used by U.S. government agencies. The Company has been a flexible and dependable partner for government for more than 35 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Asset Sale. CoreCivic completed the sale of the remaining three non-core real estate assets: the 541,000 sq. ft. Social Security Administration building, the 277,000 sq. ft. Capital Commerce Center, and the 217,000 sq. ft. NARA Property. The aggregate sales price was $326 million. The Company had purchased the three buildings in 2018 for an aggregate gross purchase price of $293.6 million.
Net Proceeds. CoreCivic used $194.4 million of the sales proceeds to fully repay non-recourse mortgage notes associated with the SSA and Capital Commerce Center. The amount includes $32.5 million of prepayment premiums. Combining the net proceeds of $130 million with the nearly $30 million of net proceeds from earlier non-core sales, the Company exceeded its $150 net proceeds goal. The net proceeds ...
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.