Benzinga | Oct 21, 2021 12:11PM EDT

The Geo Group Enters Into New Lease Agreement With The State Of New Mexico At The Guadalupe County Correctional Facility

The GEO Group (NYSE:GEO) ("GEO") announced today that it has entered into a new two-year lease agreement, with successive two-year renewal option periods through October 31, 2041, with the State of New Mexico at the company-owned, 600-bed Guadalupe County Correctional Facility. GEO has operated the Guadalupe County Correctional Facility under a management contract with New Mexico and will transition facility operations to the New Mexico Corrections Department when the new lease agreement commences on November 1, 2021. GEO will 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.