Market Updates & Recent Developments slide image

Market Updates & Recent Developments

Potential Growth Channels & Opportunities Multiple opportunities in the market to drive future growth, some of which can be realized due to our decision to convert to a taxable C-Corp in 2021, allowing CoreCivic to fund future growth initiatives with internally generated cash flows Properties Segment Design, construct, build, finance criminal justice properties for lease to government entities - Low-cost alternative for federal, state and municipal governments to modernize outdated infrastructure - Favorable financing readily available for a wide range of development opportunities · • CoreCivic estimates $15 - $20 billion infrastructure pipeline throughout the US prison system Potential to lease existing facilities to government agencies in need of additional or newer capacity • B CoreCivic • Community Segment Meet increasing partner needs for healthcare services critical to the well-being of residents and inmates, including chronic care management and mental health and substance abuse services Expand services using electronic monitoring and other technologies that partners view as an incarceration alternative for low-risk populations and as a tool to reduce overcrowding Currently have 450 beds available in idle Community facilities to respond to emerging partner needs Opportunity to increase occupancy at operating facilities Safety Segment Transition of contract at 3,060-bed La Palma Correctional Center from ICE to Arizona has created significant earnings disruption in 2022, expected to recover in 2023 The termination of Title 42 is expected to result in an increase in the number of people apprehended and detained by ICE Currently have 8,459 beds available in idle Safety prison facilities to respond to emerging partner needs Opportunity to increase occupancy at operating facilities 18
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