Thu, Mar 5, 2015, 12:17 AM EST - U.S. Markets open in 9 hrs 13 mins


% | $
Quotes you view appear here for quick access.

Corrections Corporation of America Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • flipper_58 flipper_58 Jul 5, 2000 1:08 PM Flag

    bloomberg link

    NewMK could answer but I thought I'd make a quick
    comment on the lease rates between CCA and PZN, as many
    of us hashed over this a LOT.

    When a State or
    county contracts CCA's services they contract for
    everything, guards, food, housing, etc.. The lease cost of
    the facility to the Gov't entity might represent a
    10-12% rate, roughly. The thing is when CCA leases from
    PZN they pay ALL the monies to PZN in the form of a
    lease payment. In reality much of the lease payment is
    actually management services, that's how you got a 40%
    rate. It's the crazy stuff that went on to make PZN a
    REIT. PZN took the stance they were leasing the service
    too as you would get garbage pick-up, heat, etc. when
    reanting an apartment. This is my understanding.

    what happens between CCA and PZN makes no difference
    to the contracting Gov't entity. It's CCA "washing"
    management income into a passive lease to fit IRS rules of
    75%-25% passive to active receipts.

39.96-0.32(-0.79%)Mar 4 4:02 PMEST

Trending Tickers

Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.