CoreCivic Reports Second Quarter 2026 Financial Results
Rhea-AI Summary
CoreCivic (NYSE: CXW) reported second quarter 2026 revenue of $684.9 million, up 27.3% year over year, with net income of $37.1 million and diluted EPS of $0.37. Adjusted diluted EPS was $0.38, Adjusted EBITDA $109.4 million and Normalized FFO per share $0.64.
According to CoreCivic, growth was driven by activations of previously idle facilities, higher federal and state populations, and the CSP and Farmville acquisitions, partly offset by prior-year Employee Retention Credits. Subsequent to quarter-end, the company sold four detention facilities to the U.S. government for $2.2 billion, expecting an aggregate gain of about $1.8 billion and net proceeds of roughly $1.6 billion.
CoreCivic used approximately $1.1 billion of proceeds to repay bank debt and plans to redeem its 4.75% 2027 notes, expecting total debt of about $739.1 million. The board increased the share repurchase authorization by $500 million to $1.2 billion, leaving $755.8 million available.
Positive
- Total revenue up 27.3% YoY to $684.9 million
- Adjusted EBITDA increased to $109.4 million, up 5.9% YoY
- Diluted EPS rose 5.7% to $0.37; adjusted EPS $0.38
- Four facility sales for $2.2 billion; expected $1.8 billion gain
- Net sale proceeds about $1.6 billion; debt expected near $739.1 million
- Share repurchase authorization expanded by $500 million to $1.2 billion, $755.8 million remaining
Negative
- Net income decreased 3.6% YoY to $37.1 million
- Residential segment margin fell from 26.1% to 22.4%
- FFO slipped to $62.9 million from $63.5 million YoY
- Normalized FFO declined to $63.5 million from $64.6 million YoY
- Prairie Facility activation expected to pressure margins in second half 2026
- ICE contracts can be terminated for convenience or non-appropriation, including sold facilities
News Explained
Ownership of four facilities has transferred, while buybacks remain authorized but discretionary and debt redemption is scheduled for August 12, 2026.
CoreCivic has completed the sale of four detention facilities, transferring ownership to the United States and its assigns while retaining management only under contracts that may be terminated or changed; the proceeds are being used partly for debt reduction.
The expanded share-repurchase program is an authorization, not a purchase commitment: management may buy shares under the board’s parameters, but the program has no deadline and can be changed or ended. Any completed repurchases would reduce shares outstanding, but the release does not establish that the new authorization has yet changed ownership.
The company delivered an irrevocable notice to redeem the remaining
A separate five-year ICE management contract for the Prairie Facility begins
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 06 | Q1 earnings results | Positive | +3.1% | Revenue, earnings and EBITDA increased while management raised full-year guidance. |
| Feb 11 | Q4 earnings results | Positive | -3.5% | Strong quarterly and annual results accompanied by 2026 financial guidance. |
| Nov 05 | Q3 earnings results | Negative | -9.9% | Guidance was revised lower amid facility activation startup impacts. |
| Aug 06 | Q2 earnings results | Positive | +2.0% | Revenue, net income and EPS increased alongside higher occupancy and raised guidance. |
| May 07 | Q1 earnings results | Positive | -2.6% | Revenue, net income, occupancy and EBITDA increased with raised annual guidance. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings reactions were mixed, with three aligned events and two divergences; the average move was -2.17%.
Key Terms
ebitda financial
normalized ffo financial
gaap financial
per diem payment financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Strong Financial Performance Driven by Facility Activations
Facility Sales Demonstrate Underlying Value in Portfolio
Board of Directors expands share repurchase authorization by
BRENTWOOD, Tenn., Aug. 05, 2026 (GLOBE NEWSWIRE) -- CoreCivic, Inc. (NYSE: CXW) (CoreCivic or the Company) announced today its second quarter 2026 financial results.
Financial Highlights – Second Quarter 2026
| For the Three Months Ended June 30, 2026 | % Increase (Decrease) from Prior Year Quarter | ||
| • Total revenue | |||
| • Net Income | ( | ||
| • Diluted EPS | |||
| • Adjusted Diluted EPS | |||
| • Normalized FFO per diluted share | |||
| • Adjusted EBITDA | |||
Patrick Swindle, CoreCivic's President and Chief Executive Officer, commented, "Building upon the strength of a successful start to 2026, the second quarter financial results exceeded our expectations, driven by lower operating costs and slightly higher populations from U.S. Immigration and Customs Enforcement (ICE). While we are pleased with our financial performance compared with the prior year quarter, recall that the prior year quarter included the benefit of
Swindle continued, "We ended the quarter with leverage, measured as net debt to Adjusted EBITDA, at 2.9x for the trailing twelve months. Subsequent to quarter-end, we sold four of our detention facilities to our federal government partner for total gross proceeds of
Second Quarter 2026 Financial Results Compared With Second Quarter 2025
Net income in the second quarter of 2026 was
The increases in Diluted EPS and Adjusted Diluted EPS compared with the prior year quarter resulted from activations of previously idle facilities resulting from new contract awards at the 2,400-bed Dilley Immigration Processing Center (Dilley Facility), our 600-bed West Tennessee Detention Facility (West Tennessee Facility), the 2,560-bed California City Detention Facility (California City Facility), our 2,160-bed Diamondback Correctional Facility (Diamondback Facility), and the 1,033-bed Midwest Regional Reception Center (Midwest Facility). Increases in Diluted EPS and Adjusted Diluted EPS also resulted from higher federal and state populations, the acquisition of the Farmville Detention Center on July 1, 2025, the acquisition of Clinical Solutions Pharmacy (CSP) on April 1, 2026, and an
The solutions we provide to our federal customers, including primarily ICE and the U.S Marshals Service (USMS) continue to be a significant component of our business. The federal customers in our Residential segment generated approximately
Operating margins in the CoreCivic Residential segment decreased to
Earnings before interest, taxes, depreciation and amortization (EBITDA) was
Funds From Operations (FFO) for the second quarter of 2026 was
Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO, and, where appropriate, their corresponding per share amounts, are measures calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles (GAAP). Please refer to the Supplemental Financial Information and the note following the financial statements herein for further discussion and reconciliations of these measures to net income, the most directly comparable GAAP measure.
Facility Sales & Continuing Management
Subsequent to quarter-end, we completed the sales on July 2, 2026 of our California City Facility and our 1,994-bed Otay Mesa Detention Center (Otay Mesa Facility), both located in California. On August 4, 2026, after announcing a new management contract with ICE to activate the Prairie Facility as further described hereafter, we completed the sales of our Prairie Facility and our Midwest Facility. The gross sales price for these four facility sales totals
We currently expect to continue to manage these four facilities under existing management contracts with ICE, although the terms of the management contracts may be modified to reflect the change in ownership. However, since all of our contracts with ICE provide it with the ability to terminate our contracts for non-appropriation of funds or for convenience, we can provide no assurance that we will continue to manage these facilities in the future, or that the terms of the management agreements will remain the same. The management contract for the California City Facility expires in August 2027, the management contract for the Otay Mesa Facility expires in December 2029 and contains a five-year extension option, the management contract for the Midwest Facility expires in September 2027, and the management contract for the Prairie Facility expires in August 2031.
In addition to the facility sales completed to-date, we have recently begun discussions with ICE about the potential acquisition of additional detention facilities from us. These discussions are in preliminary stages, and we can provide no assurance that any additional sales will occur.
Capital Strategy
Share Repurchases. On August 4, 2026 the board of directors (BOD) authorized an increase to our existing share repurchase program pursuant to which CoreCivic may purchase up to an additional
Including the increased authorization, we have
Debt Repayments. A portion of the net proceeds from the sales of our California City Facility and our Otay Mesa Facility amounting to
Other Business Developments
Activation of the Prairie Facility. On August 3, 2026, we were awarded a new management contract with ICE to utilize the Prairie Facility, a facility that has been idle since 2010. The new contract commences on August 11, 2026, for a term of five years. The agreement provides for a fixed monthly payment plus an incremental per diem payment based on detainee populations. Taking into account start-up activities and the phased commencement of intake operations, we currently expect an immaterial impact to earnings for the remainder of 2026. Once the facility is fully activated, we expect this facility to generate total annual revenue of approximately
Acquisition of Clinical Solutions Pharmacy. As we disclosed last quarter, on April 1, 2026, we completed the acquisition of CSP, one of the largest providers of mail order pharmacy services to correctional facilities in the United States, serving over 600 correctional facilities, including correctional facilities owned or operated by CoreCivic, across 32 states. The aggregate purchase price of
Redefining Operating & Reportable Segments. As a result of the acquisition of CSP and to better reflect our operational strategy, beginning in the second quarter of 2026, we changed our reporting segments to align our financial reporting with the manner in which we manage our businesses. As a result, we redefined our operating and reportable segments as follows:
- CoreCivic Residential segment, consisting of the 64 correctional, detention, and reentry facilities we manage, 60 of which we owned or controlled via a long-term lease as of June 30, 2026, and four of which were owned by third parties, with a design capacity of 72,000 beds. As previously mentioned, subsequent to quarter-end, we sold four detention facilities we owned, although we continue to manage these facilities.
- CoreCivic Services segment, representing the delivery of complementary services to the corrections industry through our wholly-owned subsidiaries, including CSP, TransCor America, LLC (TransCor), and Recovery Monitoring Solutions (RMS). TransCor provides transportation services to governmental agencies and CoreCivic, while RMS provides electronic monitoring and case management services as alternatives to incarceration; and
- CoreCivic Properties segment, consisting of the five correctional real estate properties held for lease to government agencies, with a total design capacity of approximately 8,000 beds.
2026 Financial Guidance
Based on current business conditions, we are providing the following updated financial guidance for the full year 2026:
| Updated Guidance Full Year 2026 | Prior Guidance Full Year 2026 | |
| • Net income | ||
| • Adjusted Net Income | ||
| • Diluted EPS | ||
| • Adjusted Diluted EPS | ||
| • FFO per diluted share | ||
| • Normalized FFO per diluted share | ||
| • EBITDA | ||
| • Adjusted EBITDA | ||
The updated guidance reflects our best estimate of the financial impact of the four facility sales, and our expected continued management of these facilities. Although we and ICE have not yet modified the management contracts for these facilities to reflect the change in ownership, the range of our guidance incorporates our best estimate of the financial impact of the change in ownership.
The updated guidance for Net income and Diluted EPS were most notably impacted by the gain on sale of the four facilities sold, which will be reported in the third quarter of 2026, and by the repayment of
Our updated guidance does not include the impact of any share repurchases we may execute during the second half of 2026, which could negatively impact Net Income, FFO, and EBITDA for a reduction in interest income associated with any cash used to repurchase shares, but could favorably impact their corresponding per share measures for the reduction in our weighted average shares outstanding.
In addition to the financial impact associated with the facility sales, our updated guidance reflects modestly higher residential populations compared with our previous forecast based on recent trends, and includes an increase in general and administrative expenses for higher incentive compensation associated with the facility sales. Although the updated guidance includes the new management contract at the Prairie Facility, taking into account start-up activities and a phased commencement of intake operations at the facility, the updated guidance reflects an immaterial impact to earnings for the remainder of 2026.
In addition to the facility sales completed to-date, we have recently begun discussions with ICE about the potential acquisition of additional detention facilities from us. These discussions are in preliminary stages, and we can provide no assurance that any additional facility sales will occur. Our updated guidance does not include the impact of any potential additional facility sales.
During 2026, we expect to invest
Supplemental Financial Information and Investor Presentations
We have made available on our website supplemental financial information and other data for the second quarter of 2026. Interested parties may access this information through our website at http://ir.corecivic.com/ under “Financial Information” of the Investors section. We do not undertake any obligation and disclaim any duties to update any of the information disclosed in this report.
Management may meet with investors from time to time during the second quarter of 2026. Written materials used in the investor presentations will also be available on our website beginning on or about August 24, 2026. Interested parties may access this information through our website at http://ir.corecivic.com/ under “Events & Presentations” of the Investors section.
Conference Call, Webcast and Replay Information
We will host a webcast conference call at 10:00 a.m. central time (11:00 a.m. eastern time) on Thursday, August 6, 2026, which will be accessible through the Company's website at www.corecivic.com under the “Events & Presentations” section of the "Investors" page.
To participate via telephone and join the call live, please register in advance here https://register-conf.media-server.com/register/BI99959d3b30da46f3a101e52cd0e2654d. Upon registration, telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number and a unique passcode.
About CoreCivic
CoreCivic is a diversified, government-solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that help build safer, healthier, and more productive communities one person at a time through residential corrections, detention, and reentry management, complementary service offerings to the corrections industry that include pharmaceutical, transportation, and alternatives to incarceration, and government real estate solutions. We are the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and one of the largest operators of such facilities in the United States. We have been a flexible and dependable partner for government for more than 40 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. Learn more at www.corecivic.com.
Forward-Looking Statements
This press release contains statements as to our beliefs and expectations of the outcome of future events that are "forward-looking" statements as defined within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include, but are not limited to, the risks and uncertainties associated with: (i) changes in government policy, legislation and regulations that affect utilization of the private sector for corrections, detention, and residential reentry services, in general, or our business, in particular, including, but not limited to, the continued utilization of our correctional and detention facilities by the federal government as a consequence of presidential executive orders, changes in how the federal government, including ICE, elects to use our detention capacity or otherwise procures alternative detention capacity, and the impact of any changes to immigration reform and sentencing laws (we do not, under longstanding policy, lobby for or against policies or legislation that would determine the basis for, or duration of, an individual’s incarceration or detention); (ii) our ability to obtain and maintain correctional, detention, and residential reentry facility management contracts because of reasons including, but not limited to, sufficient governmental appropriations, contract compliance, negative publicity and effects of inmate disturbances; (iii) changes in the privatization of the corrections and detention industry, the acceptance of our services, the timing of the opening of new facilities and the commencement of new management contracts (including the extent and pace at which new contracts are utilized), as well as our ability to utilize available beds; (iv) our ability to successfully activate idle facilities in a timely manner in order to meet the growth in demand for our facilities and services from the federal government that has occurred as a result of changes in policies and actions of the current presidential administration, and to realize projected returns resulting therefrom; (v) general economic and market conditions, including, but not limited to, the impact governmental budgets can have on our contract renewals and renegotiations, per diem rates, and occupancy; (vi) fluctuations in our operating results because of, among other things, changes in occupancy levels; competition; contract renegotiations or terminations including as a result of a change in facility ownership; inflation and other increases in costs of operations, including a rise in labor costs; fluctuations in interest rates and risks of operations; (vii) government budget uncertainty, the impact of debt ceilings and government shutdowns, including partial shutdowns, and changing budget priorities; (viii) our ability to successfully identify and consummate future development and acquisition opportunities, integrate their operations, and realize projected returns resulting therefrom; (ix) the availability of debt and equity financing on terms that are favorable to us, or at all; and (x) our ability to successfully consummate the sales of additional company-owned assets, including the potential sale of additional facilities to ICE, on a timely basis and on commercially favorable terms. Other factors that could cause operating and financial results to differ are described in the filings we make from time to time with the Securities and Exchange Commission.
We take no responsibility for updating the information contained in this press release following the date hereof to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events or for any changes or modifications made to this press release or the information contained herein by any third-parties, including, but not limited to, any wire or internet services, except as may be required by law.
| CORECIVIC, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||
| ASSETS | June 30, 2026 | December 31, 2025 | ||||||
| Cash and cash equivalents | $ | 108,934 | $ | 97,929 | ||||
| Restricted cash | 13,869 | 14,517 | ||||||
| Accounts receivable, net of credit loss reserve of | 463,089 | 446,224 | ||||||
| Prepaid expenses and other current assets | 78,475 | 49,904 | ||||||
| Assets held for sale | 2,513 | 2,513 | ||||||
| Total current assets | 666,880 | 611,087 | ||||||
| Real estate and related assets: | ||||||||
| Property and equipment, net of accumulated depreciation of | 2,148,959 | 2,132,206 | ||||||
| Other real estate assets | 177,295 | 182,479 | ||||||
| Goodwill | 59,115 | 8,551 | ||||||
| Other assets | 403,390 | 322,420 | ||||||
| Total assets | $ | 3,455,639 | $ | 3,256,743 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Accounts payable and accrued expenses | $ | 390,443 | $ | 353,173 | ||||
| Current portion of long-term debt | 115,250 | 15,701 | ||||||
| Total current liabilities | 505,693 | 368,874 | ||||||
| Long-term debt, net | 1,231,770 | 1,205,037 | ||||||
| Deferred revenue | 6,905 | 8,719 | ||||||
| Non-current deferred tax liabilities | 110,115 | 98,364 | ||||||
| Other liabilities | 162,679 | 170,500 | ||||||
| Total liabilities | 2,017,162 | 1,851,494 | ||||||
| Commitments and contingencies | ||||||||
| Preferred stock – | — | — | ||||||
| Common stock – | 989 | 1,001 | ||||||
| Additional paid-in capital | 1,485,910 | 1,527,724 | ||||||
| Accumulated deficit | (48,422 | ) | (123,476 | ) | ||||
| Total stockholders' equity | 1,438,477 | 1,405,249 | ||||||
| Total liabilities and stockholders' equity | $ | 3,455,639 | $ | 3,256,743 | ||||
| CORECIVIC, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| REVENUE: | $ | 684,917 | $ | 538,165 | $ | 1,299,646 | $ | 1,026,792 | ||||||||
| EXPENSES: | ||||||||||||||||
| Operating | 535,983 | 398,342 | 1,003,702 | 773,079 | ||||||||||||
| General and administrative | 44,126 | 43,882 | 87,802 | 79,898 | ||||||||||||
| Depreciation and amortization | 35,814 | 31,108 | 69,149 | 61,626 | ||||||||||||
| 615,923 | 473,332 | 1,160,653 | 914,603 | |||||||||||||
| OTHER INCOME (EXPENSE): | ||||||||||||||||
| Interest expense, net | (22,279 | ) | (12,539 | ) | (39,960 | ) | (27,770 | ) | ||||||||
| Other income (expense) | 797 | (35 | ) | 789 | (70 | ) | ||||||||||
| INCOME BEFORE INCOME TAXES | 47,512 | 52,259 | 99,822 | 84,349 | ||||||||||||
| Income tax expense | (10,374 | ) | (13,716 | ) | (24,768 | ) | (20,693 | ) | ||||||||
| NET INCOME | $ | 37,138 | $ | 38,543 | $ | 75,054 | $ | 63,656 | ||||||||
| BASIC EARNINGS PER SHARE | $ | 0.38 | $ | 0.35 | $ | 0.76 | $ | 0.58 | ||||||||
| DILUTED EARNINGS PER SHARE | $ | 0.37 | $ | 0.35 | $ | 0.76 | $ | 0.58 | ||||||||
| CORECIVIC, INC. AND SUBSIDIARIES | ||||||||||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION | ||||||||||||||||
| (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||||||||||
| CALCULATION OF ADJUSTED NET INCOME AND ADJUSTED DILUTED EPS | ||||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net income | $ | 37,138 | $ | 38,543 | $ | 75,054 | $ | 63,656 | ||||||||
| Special items: | ||||||||||||||||
| Expenses associated with mergers and acquisitions | 724 | 1,538 | 3,148 | 1,538 | ||||||||||||
| Income tax benefit for special items | (182 | ) | (427 | ) | (861 | ) | (427 | ) | ||||||||
| Adjusted net income | $ | 37,680 | $ | 39,654 | $ | 77,341 | $ | 64,767 | ||||||||
| Weighted average common shares outstanding - basic | ||||||||||||||||
| Effect of dilutive securities: | 98,891 | 108,627 | 98,806 | 109,056 | ||||||||||||
| Restricted stock-based awards | 545 | 542 | 576 | 756 | ||||||||||||
| Weighted average shares and assumed conversions - diluted | 99,436 | 109,169 | 99,382 | 109,812 | ||||||||||||
| Adjusted Diluted EPS | $ | 0.38 | $ | 0.36 | $ | 0.78 | $ | 0.59 | ||||||||
| CORECIVIC, INC. AND SUBSIDIARIES | ||||||||||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION | ||||||||||||||||
| (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||||||||||
| CALCULATION OF FUNDS FROM OPERATIONS AND NORMALIZED FUNDS FROM OPERATIONS | ||||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net income | $ | 37,138 | $ | 38,543 | $ | 75,054 | $ | 63,656 | ||||||||
| Depreciation and amortization of real estate assets | 25,785 | 24,920 | 51,179 | 49,518 | ||||||||||||
| Funds From Operations | $ | 62,923 | $ | 63,463 | $ | 126,233 | $ | 113,174 | ||||||||
| Expenses associated with mergers and acquisitions | 724 | 1,538 | 3,148 | 1,538 | ||||||||||||
| Income tax benefit for special items | (182 | ) | (427 | ) | (861 | ) | (427 | ) | ||||||||
| Normalized Funds From Operations | $ | 63,465 | $ | 64,574 | $ | 128,520 | $ | 114,285 | ||||||||
| Funds from Operations Per Diluted Share | $ | 0.63 | $ | 0.58 | $ | 1.27 | $ | 1.03 | ||||||||
| Normalized Funds From Operations Per Diluted Share | $ | 0.64 | $ | 0.59 | $ | 1.29 | $ | 1.04 | ||||||||
CALCULATION OF EBITDA AND ADJUSTED EBITDA
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net income | $ | 37,138 | $ | 38,543 | $ | 75,054 | $ | 63,656 | ||||||||
| Interest expense | 25,394 | 18,428 | 47,436 | 36,809 | ||||||||||||
| Depreciation and amortization | 35,814 | 31,108 | 69,149 | 61,626 | ||||||||||||
| Income tax expense | 10,374 | 13,716 | 24,768 | 20,693 | ||||||||||||
| EBITDA | $ | 108,720 | $ | 101,795 | $ | 216,407 | $ | 182,784 | ||||||||
| Expenses associated with mergers and acquisitions | 724 | 1,538 | 3,148 | 1,538 | ||||||||||||
| Adjusted EBITDA | $ | 109,444 | $ | 103,333 | $ | 219,555 | $ | 184,322 | ||||||||
| CORECIVIC, INC. AND SUBSIDIARIES | |||||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION | |||||||||||
| (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | |||||||||||
| GUIDANCE -- CALCULATION OF ADJUSTED NET INCOME, FUNDS FROM OPERATIONS, NORMALIZED FUNDS FROM OPERATIONS, EBITDA, AND NORMALIZED EBITDA | |||||||||||
| Guidance Range | |||||||||||
| For the Year Ending | |||||||||||
| December 31, 2026 | |||||||||||
| Low End of | High End of | ||||||||||
| Guidance | Guidance | ||||||||||
| Net income | $ | 1,496,535 | $ | 1,515,773 | |||||||
| Expenses associated with mergers and acquisitions | 3,124 | 3,174 | |||||||||
| Gain on sale of real estate assets, net | (1,785,000 | ) | (1,800,000 | ) | |||||||
| Income tax expense for special items | 446,841 | 450,553 | |||||||||
| Adjusted net income | $ | 161,500 | $ | 169,500 | |||||||
| Net income | $ | 1,496,535 | $ | 1,515,773 | |||||||
| Depreciation and amortization of real estate assets | 99,000 | 100,000 | |||||||||
| Gain on sale of real estate assets, net | (1,785,000 | ) | (1,800,000 | ) | |||||||
| Income tax expense for special items | 447,678 | 451,440 | |||||||||
| Funds From Operations | $ | 258,213 | $ | 267,213 | |||||||
| Expenses associated with mergers and acquisitions | 3,124 | 3,174 | |||||||||
| Income tax benefit for special items | (837 | ) | (887 | ) | |||||||
| Normalized Funds From Operations | $ | 260,500 | $ | 269,500 | |||||||
| Diluted EPS | $ | 15.00 | $ | 15.20 | |||||||
| Adjusted Diluted EPS | $ | 1.62 | $ | 1.70 | |||||||
| FFO per diluted share | $ | 2.59 | $ | 2.68 | |||||||
| Normalized FFO per diluted share | $ | 2.61 | $ | 2.70 | |||||||
| Net income | $ | 1,496,535 | $ | 1,515,773 | |||||||
| Interest expense | 80,000 | 79,000 | |||||||||
| Depreciation and amortization | 142,500 | 141,500 | |||||||||
| Income tax expense | 503,317 | 506,079 | |||||||||
| EBITDA | $ | 2,222,352 | $ | 2,242,352 | |||||||
| Expenses associated with mergers and acquisitions | 3,124 | 3,174 | |||||||||
| Gain on sale of real estate assets, net | (1,785,000 | ) | (1,800,000 | ) | |||||||
| Adjusted EBITDA | $ | 440,476 | $ | 445,526 | |||||||
NOTE TO SUPPLEMENTAL FINANCIAL INFORMATION
Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO, and, where appropriate, their corresponding per share metrics are non-GAAP financial measures. The Company believes that these measures are important operating measures that supplement discussion and analysis of the Company's results of operations and are used to review and assess operating performance of the Company and its properties and their management teams. The Company believes that it is useful to provide investors, security analysts, and other interested parties disclosures of its results of operations on the same basis that is used by management.
FFO, in particular, is a widely accepted non-GAAP supplemental measure of performance of real estate companies, grounded in the standards for FFO established by the National Association of Real Estate Investment Trusts (NAREIT). NAREIT defines FFO as net income computed in accordance with GAAP, excluding gains (or losses) from sales of property and extraordinary items, plus depreciation and amortization of real estate and impairment of depreciable real estate and after adjustments for unconsolidated partnerships and joint ventures calculated to reflect funds from operations on the same basis. As a company with extensive real estate holdings, we believe FFO and FFO per share are important supplemental measures of our operating performance and believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of REITs and other real estate operating companies, many of which present FFO and FFO per share when reporting results. EBITDA, Adjusted EBITDA, and FFO are useful as supplemental measures of performance of the Company's properties because such measures do not take into account depreciation and amortization, or with respect to EBITDA, the impact of the Company's tax provisions and financing strategies. Because the historical cost accounting convention used for real estate assets requires depreciation (except on land), this accounting presentation assumes that the value of real estate assets diminishes at a level rate over time. Because of the unique structure, design and use of the Company's properties, management believes that assessing performance of the Company's properties without the impact of depreciation or amortization is useful. The Company may make adjustments to FFO from time to time for certain other income and expenses that it considers non-recurring, infrequent or unusual, even though such items may require cash settlement, because such items do not reflect a necessary or ordinary component of the ongoing operations of the Company. Normalized FFO excludes the effects of such items. The Company calculates Adjusted Net Income by adding to GAAP Net Income expenses associated with the Company’s debt repayments and refinancing transactions, and certain impairments and other charges that the Company believes are unusual or non-recurring to provide an alternative measure of comparing operating performance for the periods presented.
Other companies may calculate Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO differently than the Company does, or adjust for other items, and therefore comparability may be limited. Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO and, where appropriate, their corresponding per share measures are not measures of performance under GAAP, and should not be considered as an alternative to cash flows from operating activities, a measure of liquidity or an alternative to net income as indicators of the Company's operating performance or any other measure of performance derived in accordance with GAAP. This data should be read in conjunction with the Company's consolidated financial statements and related notes included in its filings with the Securities and Exchange Commission.
| Contact: | Investors: Jeb Bachmann - Managing Director, Investor Relations - (615) 263-3024 Financial Media: David Gutierrez, Dresner Corporate Services - (312) 780-7204 |
