Corrections Corp Of America (NYSE:CXW) 4Q Income Heralds Record 12th Year Of EPS Growth


Dallas, Texas 02/18/2014 (FINANCIALSTRENDS) – The $3.75 billion market capped real estate investment trust Corrections Corp Of America (NYSE:CXW) got upgraded by CRT Capital from previous rating of fair value to buy on 14th February, on the back of strong results announced by the firm on 13th February. Barclays reiterated its overweight rating on the stock and pegged the price target of the stock at $37 per share on the same day.

Corrections Corp Of America (NYSE:CXW) Chief Executive Officer, President, Director and Member of Executive Committee Damon T. Hininger has been quoted to said that, “We own and control 60% of the privately owned beds in the U.S. marketplace. And with that, 90% of our NOI is generated from our own beds, and we enjoy modest real estate maintenance CapEx of 5% of NOI. And with less than 10% penetration by the private sector, we have meaningful opportunities in the U.S. marketplace that are starting to materialize in a meaningful way.”

The management team also disclosed that the fiscal 2013 results was the 12th straight year in which its share holders experienced growth in the Earnings per share and on the back of strong order book and the inventory of assets which are contracted to be leased in the next two years, the firm has forecasted that its EPS will continue to grow over the next couple of years from current vantage point. One of the major reasons being touted for this steady demand for its properties is the fact that spending on developing new infrastructure by the public sector has been negligible over the past few quarters.

FFO for 4Q13, came in at $73 million which translates into a 30% upward growth in comparison to 4Q12. From full year operations, FFO had stabilized at $295 million which translates into a 24% growth over full year numbers from 2012.  Quarter dividend per share was 48 cents and adds up to $1.92 per share dividend payout for the full year.