CoreCivic, Inc. (NYSE:CXW) Q3 2019 Earnings Conference Call - Final Transcript
Nov 07, 2019 • 11:00 am ET
Damon T. Hininger
to approximately 33,000 people on a daily basis.
Finally, our Property segment is a portfolio of mission critical government lease properties that as of the end of the third quarter includes 27 properties representing nearly 2.3 million square feet of real estate with ongoing development of an additional 400,000 square feet to come online in the first quarter of 2020. This portfolio produces predictable reoccurring cash flows through leases backed by high credit quality government tenants with a weighted average lease term of 5.8 years.
We once again experienced strong year-over-year growth in the third quarter due to a combination of increase in federal and state demand for our real estate solutions and the contribution from our recent acquisitions in our Community and Property segments. Our total revenue of $509 million in the third quarter represents a 10% increase from the prior year and for the second quarter in a row, since the high water mark in the company's history for quarterly revenue. Our rapid growth is a direct result of positive growth trends in CoreCivic Safety and our diversification into CoreCivic Community and CoreCivic Properties whose year-over-year revenue growth for the quarter were 23% and 30% respectively.
Our largest segment CoreCivic Safety reported revenue of $458 million, an 8% increase over the prior year due to the impact of a wide range of new state and federal contract we've been awarded and have commenced over the past year. It is clear that our strong financial performance in the third quarter and throughout 2019 has been the result of each of our business segments, performing well.
Our third quarter normalized FFO at $0.70 per share represents a 21% increase versus the third quarter of 2018 and exceeded the high end of our guidance by $0.08 per share. Our AFFO of $0.70 per share represents a 30% increase over the prior year and a 9% share above the high end of our guidance. Our adjusted EBITDA in the third quarter of $115.4 million represent a 16% increase from the prior year quarter, which exceeded the high end of our Q3 guidance by nearly $10 million.
Our third quarter financial performance and improved outlook for the full year has been reflected in our updated full-year 2019 financial guidance. We are now forecasting normalized FFO first year in the range of $2.64 to $2.68, an increase to our previous guidance by $0.06 per share at the midpoint. At the midpoint, this represents a 15% increase over our 2018 normalized FFO per share of $2.31.
The growth we've experienced in CoreCivic Safety is a result of increasing demand for both state and federal partners. In fact, since the start of 2018, we have been awarded or activated 11 new contracts totaling up to 12,000 beds across 8 of our safety facilities. This includes new federal contracts with United States Marshals Service and Immigration and Customs Enforcement at our 2,232-bed Adams County Correctional Center in Mississippi awarded in August of 2019 and our 1,422-bed Eden