CCA declares special REIT conversion dividend

Payout falls in middle of revised range

The board of Corrections Corp. of America late on Monday declared the special dividend that will clear the company's accumulated earnings and profits from its books as part of its conversion to a real estate investment trust.

The payout will total $675 million, or about $6.63 per share, which is at the midpoint of the range company executives gave investors two months ago but below their original ballpark range of $700 million to $750 million. Shareholders of record as of April 19 should expect their payouts, which will be up to 20 percent in cash, to be made on May 20.

"The special dividend is an important step in completing our conversion to a REIT," said President and CEO Damon Hininger. "We believe that operating as a REIT will provide additional opportunities to create shareholder value through increases in cash flow and dividends while continuing to provide significant earnings growth capacity."

Shares of CCA (Ticker: CXW) popped more than 4 percent after hours Monday to almost $40, their highest level since September of 1999.