Recent headlines appear to outline a new detention initiative from ICE, geared toward owning bedspace at industrial-type assets across the country, with the total cost estimated to be about $38 billion, using funds from the reconciliation bill (OBBA). ICE has said it aims to acquire around 34 facilities with an aggregate of 92,000 beds. Currently, we estimate that six facilities have been purchased. Although the federal government would own the assets, we see a high likelihood that it would contract with the private sector to operate the facilities, giving GEO an opportunity for additional managed-only contracts. In our view, the purchase, retrofit, and operation of industrial assets is a significant undertaking for ICE, requiring infrastructure buildout and large scale hiring across targeted locations. The purchase/sale process has proved to be challenging thus far, with about five warehouse owners across multiple states (including in Oklahoma City, OK) backing out amid widespread community opposition and other concerns. Our analysis indicates broad public opposition at the municipal level, affecting at least eight facilities comprising nearly 20,000 beds. In addition, we see labor supply and necessary infrastructure (such as water/sewage capacity in Social Circle, GA) as key challenges for this initiative. With private sector capacity in place totaling about 80,000 detention beds, mostly between GEO and CoreCivic (NYSE: CXW, NC), we maintain our outlook, which includes the federal government's contribution of 20,000-30,000 beds to achieve ICE's objective of operating 100,000 total ICE detention beds over time. ICE's new detention initiative includes the acquisition of 10 existing “turnkey” facilities where ICE already operates; GEO has sold assets to the government, including the Lawton facility in Oklahoma last year, which yielded a fair value of about $130,000 per bed. We would not be surprised if GEO executed on further secure facility asset sales. We maintain our $27 price target, based on 18x our 2027 EPS estimate of $1.46. Our moderate risk rating balances GEO's stable revenue profile with occupancy trends and contract risk.