Asset Sale. CoreCivic completed the sale of the remaining three non-core real estate assets: the 541,000 sq. ft. Social Security Administration building, the 277,000 sq. ft. Capital Commerce Center, and the 217,000 sq. ft. NARA Property. The aggregate sales price was $326 million. The Company had purchased the three buildings in 2018 for an aggregate gross purchase price of $293.6 million.Net Proceeds. CoreCivic used $194.4 million of the sales proceeds to fully repay non-recourse mortgage notes associated with the SSA and Capital Commerce Center. The amount includes $32.5 million of prepayment premiums. Combining the net proceeds of $130 million with the nearly $30 million of net proceeds from earlier non-core sales, the Company exceeded its $150 net proceeds goal. The net proceeds could be used to further reduce outstanding debt or, potentially, be used towards other opportunities, such as Alabama.BOP. The BOP is reportedly facing labor shortages, with budgetary constraints moving any near-term solution to the right. The BOP currently serves 153,389 inmates (as of June 24th), up from 152,097 on March 25th. Of the inmates, 129,249 are held in BOP facilities, 9,342 in private facilities, and 14,798 in other. Total capacity of the BOP facilities is 134,404, a figure which includes significant double bunking across the facilities. Reports indicate the labor shortage is being exacerbated by the transfer of inmates from private prisons to BOP operated facilities. The Biden Administration already altered course at the USMS. Could it be forced to do the same at the BOP? Time will tell.ICE. Encounters and ADP continue to rise. In May, there were 180,034 border encounters, highest level in the fiscal year. YTD, border encounters totaled 929,868, compared to 977,509 for all of 2019 when ADP at ICE often exceeded 50,000. June ADP was 25,513, up from 20,956 in May. And, with no solution apparent from the Federal level, we anticipate these figures to continue to rise.Maintaining Outperform and $15 PT. We continue to believe CXW shares present a compelling risk/reward opportunity. We believe the services offered by CoreCivic are needed by its government partners to solve the complex issues they face. We are maintaining our Outperform rating and $15.00 12-month price target. Read More >>