$10 Million Exit: Why a Fund Would Walk Away From CoreCivic Despite a $604 Million Quarter

Core Insights - Turiya Advisors Asia Ltd sold its entire position in CoreCivic, amounting to 479,000 shares, with an estimated transaction value of $9.75 million during the fourth quarter [1][2] - As of February 11, CoreCivic shares were priced at $18.50, reflecting a 2.5% increase over the past year, but underperforming the S&P 500 by 11.8 percentage points [3] Company Overview - CoreCivic, Inc. is a leading provider of partnership correctional and detention management services in the U.S., with a diversified portfolio that includes safety, community reentry, and real estate segments [6] - The company generates revenue primarily through long-term contracts with government agencies for facility management, rehabilitation programs, and property leasing [8] - CoreCivic reported a market capitalization of $1.98 billion, with a revenue of $2.09 billion and a net income of $109.24 million for the trailing twelve months [4] Financial Performance - For the full year 2025, CoreCivic achieved revenue of $2.2 billion and net income of $116.5 million, with normalized funds from operations per diluted share of $2.05 [9] - Management projects 2026 net income to be between $147.5 million and $157.5 million, with EBITDA potentially reaching $445.0 million [9] Market Position and Strategy - CoreCivic operates correctional, detention, and residential reentry facilities, providing government real estate solutions across the U.S. [8] - The company leverages its scale and experience to deliver secure facility operations and rehabilitation programs for government partners, supporting stable cash flows [6] - The company has a leverage ratio of 2.8 times net debt to adjusted EBITDA, along with an expanding credit facility, which provides financial flexibility [10]