Recent Buy: GEO Group

Corona is hitting everything and REITs especially. Sure, temporary suspension of dividends is likely but that’s somewhat irrelevant short term noise. Private prison REITs appear to be very cheap as they were first hit by the political risks due to the presidential elections and then with the corona disaster which may very well spread in prisons in uncontrollable manner. This is unfortunate of course but for the long term not much has been changed. I doubt US government will scale down the usage of private prisons who ever may be sitting in white house in any given year. Considering the current economic situation and US way of living, it’s difficult to see any path in which there would be meaningful decrease in crime and punishments that follow. In worst case scenario these REITs could sell their portfolio to the government and I would be perfectly fine with that as well. With this in mind I bought additional 80 shares of GEO Group for 11.57 USD per share.