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  • newMK newMK May 11, 1999 9:43 PM Flag

    The last time I posted .......

    Reity, you've been around here a while; I would
    have thought you knew the answers to your questions,
    as it's all been posted before. Nonetheless, it IS
    confusing, so here's my understanding of the 1999 dividend

    Quarterly dividends: figure on .60/share each quarter
    (includes .05/sh/qtr of special dividend; as post 1186
    explained, about .04 of the "operating" dividend further
    reduces the amount of special dividend that has to be
    paid at the end of the year), or 2.40 for the year.
    Based on Yahoo detailed research consensus estimates,
    this could be 2.50. It might be higher or lower, as I
    don't know how many shares they were figuring. 1st
    quarter pmt was based on 103.6 million shares. There are
    currently 117 million shares, with no more dilution
    expected through the end of the year. Interest expense
    from new debt offering (instead of stock issuance)
    will decrease FFO. Anyway, .60/sh/qtr should be

    The first quarter dividend was paid on March 31 to
    SHs of record on March 19. Subsequent quarters should
    have comparable dates.

    The remaining special
    dividend will be $1.54 per share (assuming no more shares
    issued this year) payable as late as possible, probably
    on or near 12/31/99, to shareholders of record as of
    a date about two weeks prior to the payment

    As Flipper has pointed out (and experience with the
    first quarter proved), the stock will open the day
    after a dividend record date at the previous days close
    less the dividend.

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    • The S-3 for the Dividend Reinvestment Plan was
      filed last week. You can read about it at Yahoo/Edgar,

      10,000,000 shares in shelf. Not just for div reinvest. Both
      S/Hs and non-S/Hs can buy up to $5,000 of stock direct
      from company, probably at a discount, or more if
      Company agrees.

    • As I understand it, substantially all of a REIT's
      income-producint activities must be passive in nature (i.e.
      leasing out real estate) in order to qualify as a REIT.
      The 10K for PZN states that the management contracts
      (to manage the prisons) have been transferred to
      several new entities, of which PZN retains some ownership

      Does anyone know whether this is an issue for
      maintaining PZN's REIT status? Does substantially all of
      PZN's cash flow result purely from leasing out its
      prisons? The reason I ask is that I like owning PZN for
      its prison constructing and leasing business but
      don't want to buy into the prison management business
      (too risky, volatile, legal problems, breakouts, etc).

      Any responses appreciated. Many thanks.

      • 2 Replies to crosswindlandings
      • PZN 1998 annual report is available at;

        Once any company is selected, click on the
        industry or
        state of that company. All companies within
        the same industry or
        state will appear. Additional
        annual report selections may be
        made at that time.

      • We have deabted the REIT status issue a lot of
        this message board as past post will explain. IN a
        nutshell as I understand.

        *As the letter of the law
        goes the structure fits in the rules of income
        test(only 75% of the income to a REIT need be pure lease),
        asset tests, etc. to quailfy as a REIT.

        s/H's only owns less then 10% of CCA private opco. Thus
        not legal control.

        *This structure as many of
        present day REIT's, with their private service Corps.,
        could be under the IRS fire anytime.

34.72Jun 29 4:02 PMEDT