Much of the debate these days has to do with Democratic Presidential candidate, Elizabeth Warren, who has made private prisons part of her campaign position. Since Warren made her prison policy pitch, shares in two prison REITs have lost around one-third of their value since June. However, the value proposition for these REITs is based upon the fact that most states don’t want to operate prisons. And that’s why outsourcing to prison REITs serves a valuable place setting. Overcrowding has led many states to issue solicitations to finance and/or build new facilities (with REITs) as cost savings measures.

Source: Forbes November 30, 2019 12:00 UTC