By Connor Hart
CoreCivic will resume operations at its South Texas Family Residential Center in Dilley, Texas, following an agreement between the city and U.S. Immigration and Customs Enforcement.
The private prison operator's amended intergovernmental services agreement, set to expire in March 2030 unless further extended, provides for a fixed monthly payment that will gradually increase as additional sections of the facility become operational.
Once fully activated, the facility is expected to post total annual revenue of about $180 million. Pre-activiation activities began earlier this year, and the monthly award is expected to be accretive to earnings beginning in the second quarter, the Brentwood, Tenn., company said Wednesday.
The company additionally entered a new lease agreement with the facility's owner, Target Hospitality. Terms of the lease weren't disclosed, though it did say that food services at the facility will be provided by Target.
CoreCivic will care for up to 2,400 people at the facility. The company will provide residential services with both indoor and outdoor recreational activities, life skills, counseling, group interaction and access to religious and legal services, it said.
The facility was purpose-built for ICE in 2014, and CoreCivic managed the site through last August, when funding was terminated and the facility was idled, according to CoreCivic.
Shares rise 3.4%, to $19.03, in after-hours trading.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
March 05, 2025 16:55 ET (21:55 GMT)
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