Movers and SHAKERS
Thursday, June 18, 2020
Suspends Dividend; Evaluating Corporate Structure and Capital Allocation
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.
Business Evaluation. Yesterday, CoreCivic announced that it is evaluating corporate structure and capital allocation alternatives. We interpret this to mean a potential move away from the REIT structure to a regular "C" corporate structure. The Company expects to finalize its evaluation by the end of the third quarter.
Suspending Dividend. In addition, CoreCivic suspended its quarterly dividend. According to management, the Company does expect to maintain its REIT status for 2020 given reduced required distributions under the CARES Act. Suspension of the dividend frees up roughly $53 million quarterly. Depending on the outcome of...
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.