National Health Investors says it has funded a second mortgage to help build a 120-bed assisted-living facility in Central Florida. The $2.5 million investment accounts for about 12 percent of the project's cost and will pay Murfreesboro-based NHI 13 percent interest. Shares of NHI (Ticker: NHI) are flat year to date.
Florida officials have turned down the request by Haven Behavioral Healthcare to build a 26-bed inpatient facility on the grounds of an Orlando-area hospital. The $1.9 million plan would have taken five-year-old Haven into the Sunshine State for the first time. The company is backed by venture capital players Thoma Cressey, Ascension Health Ventures and Clayton Associates.
Altadis U.S.A., a cigar maker owned by global player Imperial Tobacco Group, has decided against moving its headquarters and up to 140 jobs to Middle Tennessee from Fort Lauderdale. Altadis executives had been looking for incentives to help them add 55 jobs their HQ and got the cash they wanted from Florida officials.
SEE ALSO: How another global cigar player's moves stripped Nashville of CAO's home base
Officials at the Immigration and Customs Enforcement division of the Department of Homeland Security have tentatively chosen a Corrections Corp. of America plan to build a 1,800-bed prison northwest of Miami. The site on the edge of the Everglades is planned to house immigrants awaiting hearings and is set to cost more than $100 million to build.
Southwest Ranches' filing with the county describes the facility as "non-penal in nature" and would promote a relaxed atmosphere -- whatever that's supposed to mean.
Local analyst Kevin Campbell of Avondale Partners estimates the contract, if finalized, could add between 5 and 10 cents to CCA's annual profits per share when it comes online, likely in late 2013. The Nashville-based company is expected to earn $1.49 this year. Its shares (Ticker: CXW) are up about 1.3 percent this afternoon to $21.10.
For most businesses, dealing with the Department of Revenue of any state is rarely fun. Add into that mix the fact that the department is trying to collect back taxes from nearly 20 years ago and the CEO from that time — who left amid a scandal that cost your company $1.7 billion — now also happens to be the governor of the state in question. Now you know how HCA feels.
According to the Miami Herald, the hospital giant has filed a lawsuit against the Florida Department of Revenue over $750,000 in interest payments the state is trying to collect dating from 1994. HCA filed a corporate return that year but the Florida DoR claims that more taxes were owed. And now it wants 17 years' worth of interest.
Nashville's Covenant Capital Group has snapped up a 208-unit St. Petersburg apartment complex, paying national player Equity Residential more than $13 million. The 10-year-old company, which focuses on smaller deals that don't interest major institutions, manages a portfolio of more than 18,000 units.
Locally based Avondale Partners analyst Kevin Campbell has been tracking Florida legislative initiatives — spurred on by Gov. Rick Scott, the former Columbia/HCA chief — to privatize the state’s prison system. He says a proposal floated recently by the state senate there would privatize more than 17,000 beds and amount to a $363 million revenue opportunity for Nashville-based Corrections Corp. of America or its main competitor, The GEO Group. Margins for both companies generally run about 10 percent, so the bottom-line impact could be significant, too.
One factor that could limit CCA’s chances, Campbell says, is that the Senate plan — which is likely to be contested and then downsized — calls for a system of care that integrates various kinds of care, including mental health services. GEO is better equipped to offer those services itself, according to Campbell, whereas CCA would have to find a partner for some offerings.
More broadly, Campbell is upbeat about the chances of CCA and GEO picking up more state contracts as cash-strapped legislatures look for breathing room. He has ‘outperform’ ratings on the shares of both companies and sees them rising more than 20 percent in the coming quarters. CCA (Ticker: CXW) is down about 3 percent year to date.
- BRASWELL, ROBERT
- GARRETT, JOHNNY C EXECUTOR; GARRETT, JOHNNY C IV EXECUTOR; GARRETT, ANN BIGGER ESTATE; GARRETT, TIMOTHY M EXECUTOR
- GARRETT, TIMOTHY M EXECUTOR; GARRETT, ANN BIGGER ESTATE; GARRETT, JOHNNY C EXECUTOR; GARRETT, JOHNNY C IV EXECUTOR
- GARRETT, JOHNNY C IV EXECUTOR; GARRETT, JOHNNY C EXECUTOR; GARRETT, ANN BIGGER ESTATE; GARRETT, TIMOTHY M EXECUTOR