CoreCivic (CXW) Noble Capital Markets Emerging Growth Virtual Equity Conference summary

Business overview and segment performance

• Operates in three segments: safety (correctional/detention facilities), property (facility leasing), and community (residential reentry/halfway houses).

• Safety segment generates 92% of NOI, with 43 facilities and 65,000 beds; property and community segments contribute 3.1% and 5.2% of NOI, respectively.

• Largest non-government owner of correctional/detention real estate in the U.S., with 55% of private capacity ownership.

• Federal partners account for 50% of revenue, state partners 41%, and the remainder from local partners.

• Long track record of stable cash flows, with a dip during the pandemic but recovery underway.

Market trends and growth opportunities

• Occupancy averaged 77% in Q1 2025, below pre-pandemic levels but rising as populations recover.

• Policy shifts, such as a potential Trump administration, could drive mass deportations and higher detention demand.

• Nine idle facilities (13,419 beds) present significant EBITDA growth potential if reactivated, especially with ICE contracts.

• Conservative estimates show 70% utilization of idle beds could add $83 million in EBITDA; 90% could add $131 million.

• Additional 1,000 beds under existing contracts could generate $4.8–$8.7 million in EBITDA with minimal incremental cost.

Recent contracts and regulatory environment

• Two new six-month letter contracts with ICE for facilities in Leavenworth, KS and California City, CA, both being ramped up for activation.

• California City facility previously generated $25 million in annual EBITDA; similar economics expected under new ICE contract.

• DOGE review may delay some new contracts but is expected to favor low-cost providers; no current contracts in guidance subject to review.

• Substantial federal funding for border security and detention capacity anticipated post-reconciliation.