CoreCivic Enters Into New Lease Agreement With the State of Oklahoma for the Davis Correctional Facility
June 14 2023 - 8:00AM
CoreCivic, Inc. (NYSE: CXW) (CoreCivic or the
Company) announced today it has entered into a lease agreement with
the Oklahoma Department of Corrections (ODOC) for the
company-owned, 1,670-bed Davis Correctional Facility (DCF), which
the Company currently operates under a management contract with
ODOC that is currently scheduled to expire on June 30, 2023.
CoreCivic expects to enter into a 90-day contract extension for the
current management contract, after which time operations will
transfer from CoreCivic to ODOC in accordance with the new lease
agreement. The new lease agreement includes a base term commencing
October 1, 2023, with a scheduled expiration date of June 30, 2029,
and unlimited two-year renewal options.
Terms of the 90-day contract extension are expected
to remain consistent with the existing management contract at the
DCF. Annual rental revenue generated from the ODOC at the DCF under
the new lease agreement will be $7.5 million during the base term
and will be reported in the CoreCivic Properties business segment
upon lease commencement.
About CoreCivic
CoreCivic is a diversified, government-solutions company with
the scale and experience needed to solve tough government
challenges in flexible, cost-effective ways. CoreCivic provides a
broad range of solutions to government partners that serve the
public good through high-quality corrections and detention
management, a network of residential and non-residential
alternatives to incarceration to help address America’s recidivism
crisis, and government real estate solutions. CoreCivic is the
nation’s largest owner of partnership correctional, detention and
residential reentry facilities, and one of the largest prison
operators in the United States. CoreCivic has been a flexible and
dependable partner for government for 40 years. CoreCivic's
employees are driven by a deep sense of service, high standards of
professionalism and a responsibility to help government better the
public good. Learn more at www.corecivic.com.
Forward-Looking Statements
This press release contains statements as to CoreCivic's beliefs
and expectations of the outcome of future events that are
"forward-looking" statements within the meaning of Section 21E of
the Securities Exchange Act of 1934, as amended, and the Private
Securities Litigation Reform Act of 1995, as amended. These
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from the
statements made. These include, but are not limited to, the risks
and uncertainties associated with executing a contract extension of
the current management contract under substantially the same terms
as the existing management contract, the successful transition of
operations from CoreCivic to ODOC, and the financial impact of the
new lease agreement.
CoreCivic takes no responsibility for updating the information
contained in this press release following the date hereof to
reflect events or circumstances occurring after the date hereof or
the occurrence of unanticipated events or for any changes or
modifications made to this press release or the information
contained herein by any third-parties, including, but not limited
to, any wire or internet services.
Contact: |
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Investors:
Cameron Hopewell - Managing Director, Investor Relations - (615)
263-3024 |
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Financial Media: David Gutierrez, Dresner Corporate Services -
(312) 780-7204 |
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