CoreCivic Inc. acquired 28 properties across the U.S. mid-south region for a total of $83.2 million, excluding transaction-related expenses.
The federal government, through the General Services Administration, leases the assets, 24 of which were contributed to CoreCivic's newly formed partnership, according to a release.
The portfolio spans 445,000 square feet of build-to-suit facilities for its tenant, and its weighted average remaining lease term is 5.6 years.
The company paid $7.7 million in cash, assumed debt of $52.2 million and issued 1.3 million limited partnership units to finance the acquisition. The limited partnership units are convertible after two years into cash or shares of CoreCivic common stock. The debt carries a fixed interest rate of 4.9%, with fixed monthly payments extending through November 2025, along with a balloon payment of $46.2 million due at maturity.
The acquisition is expected to contribute 1 cent to 2 cents of funds from operations per share on an annualized basis.