Geo Group (NYSE:GEO) is a prison REIT that manages correctional facilities and leases them to local and federal governments. It has been doing everything right but is in a tough business with an uncertain future. We will begin by looking at Geo Group's operations and follow with a discussion of the prison REIT industry's potential going forward. Finally, we will conclude that GEO is the strongest company in the sector, but that the sector itself has questionable fundamentals.
Geo Group's operations
For its incarceration services, GEO is paid a contracted daily rate for each detainee. This rate has been fairly steady with slight increases over time.
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In addition to greater revenue per prisoner, it has...
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