The GEO Group Enters Into New Lease Agreement With the State of New Mexico at the Guadalupe County Correctional Facility
October 21 2021 - 6:55AM
Business Wire
The GEO Group (NYSE: GEO)
(“GEO”) announced today that it has entered into a new two-year
lease agreement, with successive two-year renewal option periods
through October 31, 2041, with the State of New Mexico at the
company-owned, 600-bed Guadalupe County Correctional Facility. GEO
has operated the Guadalupe County Correctional Facility under a
management contract with New Mexico and will transition facility
operations to the New Mexico Corrections Department when the new
lease agreement commences on November 1, 2021. GEO will retain
responsibility for facility maintenance throughout the term of the
lease.
The average annual rent for the initial two-year lease term is
$4 million, with escalators thereafter. For the first six months
ended June 30, 2021, the Guadalupe County Correctional Facility
generated operating revenue of approximately $4 million.
About The GEO Group
The GEO Group (NYSE: GEO) is a fully integrated equity real
estate investment trust specializing in the design, financing,
development, and operation of secure facilities, processing
centers, and community reentry centers in the United States,
Australia, South Africa, and the United Kingdom. GEO is a leading
provider of enhanced in-custody rehabilitation, post-release
support, electronic monitoring, and community-based programs. GEO’s
worldwide operations include the ownership and/or management of 114
facilities totaling approximately 90,000 beds, including idle
facilities and projects under development, with a workforce of up
to approximately 20,000 professionals.
Safe-Harbor Statement
This press release contains forward-looking statements regarding
future events and future performance of GEO that involve risks and
uncertainties that could materially affect actual results,
including statements regarding GEO’s new two-year lease agreement,
with successive two-year renewal options through October 31, 2041,
with the State of New Mexico at the 600-bed Guadalupe County
Correctional Facility. Risks and uncertainties that could cause
actual results to vary from current expectations and
forward-looking statements contained in this press release include,
but are not limited to: (1) GEO’s ability to meet its financial
guidance for 2021 given the various risks to which its business is
exposed; (2) GEO’s ability to deleverage and repay, refinance or
otherwise address its debt maturities in an amount or on the
timeline it expects, or at all; (3) changes in federal and state
government policy, orders, directives, legislation and regulations
that affect public-private partnerships with respect to secure
correctional and detention facilities, processing centers, and
reentry centers, including the timing and scope of implementation
of the January 2021 Presidential Executive Order to not renew U.S.
Department of Justice contracts with privately-operated criminal
detention facilities; (4) changes in federal immigration policy;
(5) public and political opposition to the use of public-private
partnerships with respect to secure correctional and detention
facilities, processing centers and reentry centers; (6) the
magnitude, severity, and duration of the current COVID-19 global
pandemic, its impact on GEO, GEO's ability to mitigate the risks
associated with COVID-19, and the efficacy and distribution of
COVID-19 vaccines; (7) GEO’s ability to sustain or improve
company-wide occupancy rates at its facilities in light of the
COVID-19 global pandemic and policy and contract announcements
impacting GEO’s federal facilities in the United States; (8)
fluctuations in our operating results, including as a result of
contract terminations, contract renegotiations, changes in
occupancy levels and increases in our operating costs; (9) general
economic and market conditions, including changes to governmental
budgets and its impact on new contract terms, contract renewals,
renegotiations, per diem rates, fixed payment provisions, and
occupancy levels; (10) GEO’s ability to timely open facilities as
planned, profitably manage such facilities and successfully
integrate such facilities into GEO’s operations without substantial
costs; (11) GEO’s ability to win management contracts for which it
has submitted proposals and to retain existing management
contracts; (12) risks associated with GEO’s ability to control
operating costs associated with contract start-ups; (13) GEO’s
ability to successfully pursue growth and continue to create
shareholder value; (14) GEO’s ability to obtain financing or access
the capital markets in the future on acceptable terms or at all;
(15) other factors contained in GEO’s Securities and Exchange
Commission periodic filings, including its Form 10-K, 10-Q and 8-K
reports.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211021005162/en/
Pablo E. Paez (866) 301 4436 Executive Vice President, Corporate
Relations
Geo (NYSE:GEO)
Historical Stock Chart
From Aug 2024 to Sep 2024
Geo (NYSE:GEO)
Historical Stock Chart
From Sep 2023 to Sep 2024