Thursday, April 08, 2021

The GEO Group, Inc. (GEO)
Suspends Dividend; Evaluating Corporate Structure

With over 94,000 beds owned, leased or managed across its business lines and serving over 260,000 people daily, GEO is a leading provider of mission critical real estate to its governmental partners. The Company is the first fully integrated equity REIT specializing in the design, financing, development, and operation of secure facilities, processing centers, and community reentry centers in the U.S., Australia, South Africa, and the U.K.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Dividend Suspension. In a not so surprising move, GEO Group announced it is immediately suspending the quarterly dividend. The suspension eliminates approximately $30 million in quarterly dividend payments. Management expects to use the dividend savings and lowered capital expenditure plans to repay a minimum of $125-$150 million of net debt in 2021.


Evaluating Corporate Structure.  The Company also announced it is undertaking an evaluation of the current REIT structure. The evaluation is expected to be completed in the fourth quarter of 2021. Obviously, uncertainty swirling around the current operating and the prosed increase in the corporate tax rate will both be important considerations …

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.