GEO Inks Lease Deal With New Mexico State For Guadalupe County Correctional Facility

(RTTNews) - The GEO Group Inc. (GEO), a real estate investment trust, on Thursday said it signed a new two-year lease agreement with the State of New Mexico for the company-owned 600-bed Guadalupe County Correctional Facility.

The latest deal has successive two-year renewal option periods through October 31, 2041, the Florida-headquartered firm said. GEO Group has operated the Guadalupe County Correctional Facility under a management contract with New Mexico. The new lease agreement is scheduled to commence on November 1.

GEO is expected to retain responsibility for facility maintenance throughout the term of the lease. The average annual rent for the initial two-year lease term is $4 million, with escalators thereafter.

For the first six months ended June 30, 2021, the Guadalupe County Correctional Facility generated operating revenue of approximately $4 million.