Prison REITs Rise After Analysts Call U.S. Plan a Minor Blow
- Corrections Corp., GEO Group climb after plunging Thursday
- U.S. government decision affects only small part of business
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Companies that operate private prisons began to recover from Thursday’s historic plunge as analysts said the U.S. Justice Department’s plan to phase out federal contracts with the operators would affect only a small part of their business.
Corrections Corp. of America, a real estate investment trust that is the nation’s largest operator of private prisons, rose 13 percent to $19.78 at 2:16 p.m. New York time, after tumbling 35 percent in its biggest drop since its 1997 initial public offering. GEO Group Inc., a REIT that operates prisons, halfway houses and related facilities, gained 21 percent to $23.69, after falling 40 percent in the biggest decline in its 22 years as a publicly traded company.