Market Updates & Recent Developments

1 Core Value is in the Real Estate, But Our Business Model is Flexible We have been responsive to the needs of our government partners and those needs have evolved over our 40-year history • . Early Stages Operational Cost Efficiencies → Private sector operating existing government owned facilities (Emergence of Managed- Only Model) Rapid Population Growth → New government owned facility construction with the private sector providing the operations (Expansion of Managed-Only Model) Emerging Federal Needs → Federal law enforcement agencies had emerging capacity needs (Emergence of Owned/Managed Model) • ● Rapid Growth Phase Rapid Population Growth & Lack of Appropriations for New Capacity → Our federal and state partners increasingly found it difficult to receive sufficient funding to meet their capacity needs, which led to the private sector delivering a real estate solution (Growth of Owned/Managed Model) Continuing Federal Needs → Federal law enforcement agencies continued to have expanded capacity needs, and they did not have a desire to operate detention facilities (Growth of Owned/Managed Model) Current Market • Inmate Population Growth Slows → Reduction in the need for new facility construction to expand capacity & increasingly competitive market in the Managed- Only business compresses margins (Exit Managed-Only Model) • • Aging Correctional Infrastructure → Existing stock of government owned correctional facilities have reached the end of their useful life. Appropriations for replacement capacity remains limited, but our partners have a desire to maintain government operations (Emergence of Lease-Only Model) Existing Capacity → Privately owned correctional infrastructure provides mission-critical capacity to our government partners (Continuation of Owned/Managed Model) Continuing Federal Needs → Federal law enforcement agencies continue to depend on the real estate provided by the private sector and are not interested in changing their law enforcement mission (Continuation of Owned/Managed Model) Real Estate continues to be the biggest challenge to our government partners due to the high cost of construction, but some partners are interested in government control of the day-to-day facility operations. This led to the creation of the lease-only model provided in our CoreCivic Properties segment. We have successfully converted multiple facilities from an owned/operated model in our Safety segment to the lease-only model provided in our Properties segment.1 CoreCivic currently leases to states our California City Correctional Center, Southeast Correctional Complex, Northwest New Mexico Correctional Center, and North Fork Correctional Facility, each of which was previously Company operated. 15

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