Centracore (NYSE:CPV)
Historical Stock Chart
From Jul 2019 to Jul 2024
![Click Here for more Centracore Charts. Click Here for more Centracore Charts.](/p.php?pid=staticchart&s=NY%5ECPV&p=8&t=15)
Correctional Properties Trust Reports Financing Resolution
Adopted By State of North Carolina
PALM BEACH GARDENS, Fla., July 7 /PRNewswire-FirstCall/ -- Correctional
Properties Trust (NYSE:CPV), a real estate investment trust (REIT), has
announced that at a meeting held on July 6, 2004, elected officials of the
State of North Carolina (the "State") approved a resolution providing
preliminary approval for issuing State debt, the proceeds of which would be
used to acquire the Mountain View Correctional Facility and the Pamlico
Correctional Facility (the "Facilities"), owned by a subsidiary of Correctional
Properties Trust, and leased to the State.
These Facilities were purchased in 2001 from an unrelated third party, subject
to existing leases on each property. As previously disclosed, each of the
leases contained an option under which the State may acquire the Facilities for
a predetermined purchase price, which declines each year. The options may be
exercised annually beginning in 2004. The options provide for the acquisition
of the Pamlico Correctional Facility beginning in August 2004 for approximately
$25.2 million, and the Mountain View Correctional Facility beginning in
December 2004, for approximately $26.2 million. The State is required to
notify the Company in writing of its intent to exercise the option to acquire
the respective Facility. While such notice has not been received for either
Facility, the State has indicated their intent to provide this notice.
On an annualized basis, each of the Facilities currently contributes
approximately 3.5 cents in net income per diluted share. If the State
exercises both options in 2004, depending on timing and other variables, the
Company would expect to recognize a combined gain on the sale of the Facilities
of approximately $5 million for financial reporting purposes. The net proceeds
of a sale of one or both of the Facilities are required to be used to redeem
the taxable mortgage revenue bonds (the "Bonds") at par, which were issued in
2001 to finance the Facilities. If the State acquires both Facilities in 2004,
the Company expects to have excess sales proceeds of approximately $2 million,
following the redemption of all the Bonds.
Correctional Properties Trust, based in Palm Beach Gardens, Florida, was formed
in February 1998, to capitalize on the growing trend toward privatization in
the corrections industry. Correctional Properties Trust is dedicated to
ownership of correctional facilities under long-term, triple-net leases, which
minimizes occupancy risk and development risk.
Correctional Properties Trust currently owns 14 correctional facilities in ten
states, all of which are leased, with an aggregate initial design capacity of
8,008 beds.
This press release contains forward-looking statements regarding future events
and future performance of the Company that involve risks and uncertainties that
could materially affect actual results. This information is qualified in its
entirety by cautionary statements and risk factors disclosure contained in
certain of the Company's Securities and Exchange Commission filings. For a
description of certain factors that could cause actual results to vary from
current expectations and forward-looking statements contained in this press
release, refer to documents that the Company files from time to time with the
Securities and Exchange Commission. Such filings include, without limitation,
the Company's Form 10-K, Forms 10-Q, Registration Statements on Form S-11 and
S-3, and Form 8-K.
CONTACT: Correctional Properties Trust Shareholder Services
(561) 630-6336, or access Company information at
http://www.correctionalpropertiestrust.com/
DATASOURCE: Correctional Properties Trust
CONTACT: Correctional Properties Trust Shareholder Services,
+1-561-630-6336